LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Tables)

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Loans and Leases Receivable Disclosure [Abstract]

Composition of Loan Portfolio, Excluding Residential Loans Held for Sale

The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated:

(In thousands)	June 30, 2021		December 31, 2020
Commercial Loans:
Commercial real estate - non owner-occupied	$	1,127,200	$	1,097,975
Commercial real estate - owner-occupied	296,697		271,495
Commercial	367,093		381,494
SBA PPP	126,064		135,095
Total commercial loans	1,917,054		1,886,059
Retail Loans:
Residential real estate	1,120,917		1,054,798
Home equity	228,690		258,573
Consumer	19,255		20,392
Total retail loans	1,368,862		1,333,763
Total loans	$	3,285,916	$	3,219,822

Schedule of Loan Balances by Portfolio Segment

The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs for the dates indicated:

(In thousands)	June 30, 2021		December 31, 2020
Net unamortized fair value mark discount on acquired loans	$	(857)	$	(1,291)
Net unamortized loan (fees) origination costs(1)	(2,012)		856
Total	$	(2,869)	$	(435)

(1)    The change in net unamortized loan (fees) origination costs from December 31, 2020 to June 30, 2021, was primarily driven by SBA PPP loan origination fees capitalized during the six months ended June 30, 2021. As of June 30, 2021 and December 31, 2020, unamortized loan fees on originated SBA PPP loans were $5.4 million and $2.2 million, respectively.

Summary of Activity in Allowance for Loan Losses

The following table presents the activity in the ACL on loans, as reported under CECL, for the periods indicated:

	Commercial Real Estate
(In thousands)	Non Owner-Occupied		Owner- Occupied		Commercial		SBA PPP		Residential Real Estate		Home Equity		Consumer		Total
At or For The Three Months Ended June 30, 2021
Beginning balance, March 31, 2021	$	22,473	$	2,548	$	5,170	$	87	$	3,093	$	2,176	$	228	$	35,775
Loans charged off	—		—		(259)		—		(35)		(107)		(19)		(420)
Recoveries	—		3		67		—		70		—		17		157
(Credit) provision for loan losses	(2,896)		(35)		(636)		(21)		77		(4)		63		(3,452)
Ending balance, June 30, 2021	$	19,577	$	2,516	$	4,342	$	66	$	3,205	$	2,065	$	289	$	32,060
At or For The Six Months Ended June 30, 2021
Beginning balance, December 31, 2020	$	21,778	$	2,832	$	6,703	$	69	$	3,474	$	2,616	$	393	$	37,865
Loans charged off	—		—		(406)		—		(88)		(145)		(68)		(707)
Recoveries	—		5		110		—		70		—		23		208
(Credit) provision for loan losses	(2,201)		(321)		(2,065)		(3)		(251)		(406)		(59)		(5,306)
Ending balance, June 30, 2021	$	19,577	$	2,516	$	4,342	$	66	$	3,205	$	2,065	$	289	$	32,060
At or For The Year Ended December 31, 2020
Beginning balance, December 31, 2019	$	10,924	$	1,490	$	3,985	$	—	$	5,842	$	2,423	$	507	$	25,171
Impact of adopting CECL(1)	(668)		(90)		1,548		—		(1,129)		792		(220)		233
Loans charged off	(82)		(21)		(1,130)		—		(121)		(317)		(167)		(1,838)
Recoveries	107		13		572		—		292		33		67		1,084
Provision (credit) for loan losses	11,497		1,440		1,728		69		(1,410)		(315)		206		13,215
Ending balance, December 31, 2020	$	21,778	$	2,832	$	6,703	$	69	$	3,474	$	2,616	$	393	$	37,865

(1)    The Company adopted ASU 2016-13, "CECL," effective January 1, 2020 but applied to reporting periods on or after October 1, 2020.

The following table presents activity in the ACL on loans and select loan information by portfolio segment, under the incurred loss methodology, for the periods indicated:

(In thousands)	Commercial Real Estate(1)		Commercial		SBA PPP		Residential Real Estate		Home Equity		Consumer		Total
At or For The Three and Six Months Ended June 30, 2020
Allowance for the three months ended:
Beginning balance	$	13,374	$	4,297	$	—	$	5,897	$	2,480	$	473	$	26,521
Loans charged off	(21)		(420)		—		—		(17)		(26)		(484)
Recoveries	3		63		—		21		—		15		102
Provision	5,030		909		113		2,685		621		42		9,400
Ending balance	$	18,386	$	4,849	$	113	$	8,603	$	3,084	$	504	$	35,539
Allowance for the six months ended:
Beginning balance	$	12,414	$	3,985	$	—	$	5,842	$	2,423	$	507	$	25,171
Loans charged off	(71)		(673)		—		(96)		(51)		(83)		(974)
Recoveries	7		116		—		23		4		20		170
Provision(1)	6,036		1,421		113		2,834		708		60		11,172
Ending balance	$	18,386	$	4,849	$	113	$	8,603	$	3,084	$	504	$	35,539
Allowance balance attributable to loans:
Individually evaluated for impairment	$	35	$	—	$	—	$	338	$	89	$	—	$	462
Collectively evaluated for impairment	18,351		4,849		113		8,265		2,995		504		35,077
Total ending allowance	$	18,386	$	4,849	$	113	$	8,603	$	3,084	$	504	$	35,539
Loans:
Individually evaluated for impairment	$	461	$	179	$	—	$	3,153	$	370	$	—	$	4,163
Collectively evaluated for impairment	1,310,524		428,007		218,803		1,051,180		290,445		22,919		3,321,878
Total ending loans balance	$	1,310,985	$	428,186	$	218,803	$	1,054,333	$	290,815	$	22,919	$	3,326,041

(1)    Includes both commercial real estate - non owner-occupied and owner-occupied loan segments.

Credit Risk Exposure Indicators by Portfolio Segment

Based on the most recent analysis performed, the risk category of loans by portfolio segment by vintage, reported under the CECL methodology, was as follows as of the dates indicated:

(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of June 30, 2021
Commercial real estate - non owner-occupied
Risk rating
Pass (Grades 1-6)	$	97,672	$	195,046	$	208,784	$	126,420	$	104,904	$	337,990	$	—	$	—	$	1,070,816
Special mention (Grade 7)	97		7,337		1,490		—		4,342		3,924		—		—		17,190
Substandard (Grade 8)	216		1,693		224		10,112		397		26,552		—		—		39,194
Doubtful (Grade 9)	—		—		—		—		—		—		—		—		—
Total commercial real estate - non owner-occupied	97,985		204,076		210,498		136,532		109,643		368,466		—		—		1,127,200
Commercial real estate - owner-occupied
Risk rating
Pass (Grades 1-6)	44,361		34,774		32,982		46,093		49,000		81,397		—		—		288,607
Special mention (Grade 7)	—		—		—		3,458		—		1,444		—		—		4,902
Substandard (Grade 8)	—		—		71		—		1,829		1,288		—		—		3,188
Doubtful (Grade 9)	—		—		—		—		—		—		—		—		—
Total commercial real estate - owner occupied	44,361		34,774		33,053		49,551		50,829		84,129		—		—		296,697
Commercial
Risk rating
Pass (Grades 1-6)	49,954		51,324		57,039		34,303		17,277		37,592		83,722		31,487		362,698
Special mention (Grade 7)	—		—		26		21		192		469		—		23		731
Substandard (Grade 8)	—		323		966		325		121		1,342		24		563		3,664
Doubtful (Grade 9)	—		—		—		—		—		—		—		—		—
Total commercial	49,954		51,647		58,031		34,649		17,590		39,403		83,746		32,073		367,093
SBA PPP
Risk rating
Pass (Grades 1-6)	96,794		29,270		—		—		—		—		—		—		126,064
Special mention (Grade 7)	—		—		—		—		—		—		—		—		—
Substandard (Grade 8)	—		—		—		—		—		—		—		—		—
Doubtful (Grade 9)	—		—		—		—		—		—		—		—		—
Total SBA PPP	96,794		29,270		—		—		—		—		—		—		126,064
Residential Real Estate
Risk rating
Pass (Grades 1-6)	261,642		316,822		136,803		83,561		59,003		257,481		882		—		1,116,194
Special mention (Grade 7)	—		—		—				—		236		—		—		236
Substandard (Grade 8)	—		—		—		144		—		4,343		—		—		4,487
Doubtful (Grade 9)	—		—		—		—		—		—		—		—		—
Total residential real estate	261,642		316,822		136,803		83,705		59,003		262,060		882		—		1,120,917
Home equity
Risk rating
Performing	339		639		7,838		13,805		2,967		14,278		174,564		12,864		227,294
Non-performing	—		—		—		42		—		196		818		340		1,396
Total home equity	339		639		7,838		13,847		2,967		14,474		175,382		13,204		228,690
Consumer
Risk rating
Performing	4,364		4,873		4,664		1,859		890		1,998		579		—		19,227
Non-performing	—		9		16		—		—		3		—		—		28
Total consumer	4,364		4,882		4,680		1,859		890		2,001		579		—		19,255
Total Loans	$	555,439	$	642,110	$	450,903	$	320,143	$	240,922	$	770,533	$	260,589	$	45,277	$	3,285,916

(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2020
Commercial real estate - non owner-occupied
Risk rating
Pass (Grades 1-6)	$	138,010	$	224,148	$	144,552	$	119,409	$	157,588	$	264,253	$	—	$	—	$	1,047,960
Special mention (Grade 7)	5,739		—		—		4,256		3,497		847		—		—		14,339
Substandard (Grade 8)	24		125		2,070		405		1,522		31,530		—		—		35,676
Doubtful (Grade 9)	—		—		—		—		—		—		—		—		—
Total commercial real estate - non owner-occupied	143,773		224,273		146,622		124,070		162,607		296,630		—		—		1,097,975
Commercial real estate - owner-occupied
Risk rating
Pass (Grades 1-6)	35,948		29,217		48,312		47,065		25,507		76,098		—		—		262,147
Special mention (Grade 7)	—		—		4,584		—		—		1,513		—		—		6,097
Substandard (Grade 8)	—		—		891		462		—		1,898		—		—		3,251
Doubtful (Grade 9)	—		—		—		—		—		—		—		—		—
Total commercial real estate - owner occupied	35,948		29,217		53,787		47,527		25,507		79,509		—		—		271,495
Commercial
Risk rating
Pass (Grades 1-6)	53,966		72,863		40,688		25,478		15,788		51,869		72,425		37,026		370,103
Special mention (Grade 7)	—		22		313		4,924		117		400		—		867		6,643
Substandard (Grade 8)	187		1,012		211		51		42		2,081		65		1,099		4,748
Doubtful (Grade 9)	—		—		—		—		—		—		—		—		—
Total commercial	54,153		73,897		41,212		30,453		15,947		54,350		72,490		38,992		381,494
SBA PPP
Risk rating
Pass (Grades 1-6)	135,095		—		—		—		—		—		—		—		135,095
Special mention (Grade 7)	—		—		—		—		—		—		—		—		—
Substandard (Grade 8)	—		—		—		—		—		—		—		—		—
Doubtful (Grade 9)	—		—		—		—		—		—		—		—		—
Total SBA PPP	135,095		—		—		—		—		—		—		—		135,095
Residential Real Estate
Risk rating
Pass (Grades 1-6)	339,834		183,877		119,426		79,159		57,269		266,324		3,028		—		1,048,917
Special mention (Grade 7)	—		—		—		—		—		398		—		—		398
Substandard (Grade 8)	—		—		176		487		—		4,820		—		—		5,483
Doubtful (Grade 9)	—		—		—		—		—		—		—		—		—
Total residential real estate	339,834		183,877		119,602		79,646		57,269		271,542		3,028		—		1,054,798
Home equity
Risk rating
Performing	855		9,415		17,281		3,478		1,339		17,664		194,065		12,480		256,577
Non-performing	—		—		—		—		—		207		1,241		548		1,996
Total home equity	855		9,415		17,281		3,478		1,339		17,871		195,306		13,028		258,573
Consumer
Risk rating
Performing	6,572		6,525		3,096		1,359		378		1,780		678		—		20,388
Non-performing	—		—		—		—		4		—		—		—		4
Total consumer	6,572		6,525		3,096		1,359		382		1,780		678		—		20,392
Total Loans	$	716,230	$	527,204	$	381,600	$	286,533	$	263,051	$	721,682	$	271,502	$	52,020	$	3,219,822

Loan Aging Analysis by Portfolio Segment

The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and loans past due over 90 days and accruing as of the following dates:

(In thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans Outstanding		Loans > 90 Days Past Due and Accruing
June 30, 2021
Commercial real estate - non owner-occupied	$	99	$	—	$	63	$	162	$	1,127,038	$	1,127,200	$	—
Commercial real estate - owner-occupied	—		—		47		47		296,650		296,697
Commercial	183		—		836		1,019		366,074		367,093		—
SBA PPP	—		—		—		—		126,064		126,064		—
Residential real estate	489		155		1,570		2,214		1,118,703		1,120,917		—
Home equity	236		—		919		1,155		227,535		228,690		—
Consumer	35		9		28		72		19,183		19,255		—
Total	$	1,042	$	164	$	3,463	$	4,669	$	3,281,247	$	3,285,916	$	—
December 31, 2020
Commercial real estate - non owner-occupied	$	—	$	50	$	173	$	223	$	1,097,752	$	1,097,975	$	—
Commercial real estate - owner-occupied	99		—		47		146		271,349		271,495		—
Commercial	430		—		857		1,287		380,207		381,494		—
SBA PPP	—		—		—		—		135,095		135,095		—
Residential real estate	1,406		1,103		2,535		5,044		1,049,754		1,054,798		—
Home equity	335		173		1,416		1,924		256,649		258,573		—
Consumer	92		67		4		163		20,229		20,392		—
Total	$	2,362	$	1,393	$	5,032	$	8,787	$	3,211,035	$	3,219,822	$	—

Financing Receivable, Nonaccrual

The following table presents the amortized cost basis of loans on non-accrual status (including non-accruing TDRs) by portfolio segment as of the dates indicated:

	June 30, 2021						December 31, 2020
(In thousands)	Non-Accrual Loans With an Allowance		Non-Accrual Loans Without an Allowance		Total Non-Accrual Loans		Non-Accrual Loans With an Allowance		Non-Accrual Loans Without an Allowance		Total Non-Accrual Loans
Commercial real estate - non owner-occupied	$	71	$	15	$	86	$	351	$	15	$	366
Commercial real estate - owner-occupied	89		47		136		99		47		146
Commercial	1,459		52		1,511		1,549		58		1,607
Residential real estate	2,432		293		2,725		3,136		341		3,477
Home equity	1,396		—		1,396		1,961		35		1,996
Consumer	28		—		28		4		—		4
Total	$	5,475	$	407	$	5,882	$	7,100	$	496	$	7,596

The following table presents the amortized cost basis of collateral-dependent non-accrual loans (including non-accruing TDRs) by portfolio segment and collateral type, as of the dates indicated:

	June 30, 2021						December 31, 2020
	Collateral Type				Total Collateral -Dependent Non-Accrual Loans		Collateral Type				Total Collateral -Dependent Non-Accrual Loans
(In thousands)	Real Estate		General Business Assets				Real Estate		General Business Assets
Commercial	$	—	$	623	$	623	$	—	$	689	$	689
Residential real estate	218		—		218		248		—		248
Home equity	88		—		88		—		—		—
Total	$	306	$	623	$	929	$	248	$	689	$	937

Troubled Debt Restructuring and Specific Reserve Related to TDRs

The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ACL for the dates indicated:

	Number of Contracts		Recorded Investment				Specific Reserve
(In thousands, except number of contracts)	June 30, 2021	December 31, 2020	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Commercial real estate - owner-occupied	1	2	$	123	$	328	$	41	$	37
Commercial	2	2	89		100		—		—
Residential real estate	19	21	2,383		2,638		364		364
Consumer and home equity	2	—	231		—		23		—
Total	24	25	$	2,826	$	3,066	$	428	$	401

Troubled Debt Restructuring

The following represents loan modifications that qualify as TDRs that occurred during the periods indicated:

	Number of Contracts		Pre-Modification Outstanding Recorded Investment				Post-Modification Outstanding Recorded Investment				Specific Reserve
(In thousands, except number of contracts)	2021	2020	2021		2020		2021		2020		2021		2020
For the Three Months Ended June 30,:
Home equity:
Maturity concession	1	—	$	144	$	—	$	143	$	—	$	6	$	—
Total	1	—	$	144	$	—	$	143	$	—	$	6	$	—
For the Six Months Ended June 30,:
Home equity:
Interest rate concession and payment deferral	1	—	$	159	$	—	$	170	$	—	$	56	$	—
Maturity concession	1	—	144		—		143		—		6		—
Total	2	—	$	303	$	—	$	313	$	—	$	62	$	—

Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment

The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for the periods indicated:

							For the Three Months Ended				For the Six Months Ended
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized(1)		Average Recorded Investment		Interest Income Recognized
June 30, 2020:
With an allowance recorded:
Commercial real estate	$	127	$	127	$	35	$	128	$	3	$	128	$	4
Commercial	—		—		—		—		—		—		—
SBA PPP	—		—		—		—		—		—		—
Residential real estate	2,304		2,304		338		2,262		22		2,306		46
Home equity	318		318		89		318		—		318		—
Consumer	—		—		—		—		—		—		—
Ending balance	2,749		2,749		462		2,708		25		2,752		50
Without an allowance recorded:
Commercial real estate	334		514		—		303		3		293		6
Commercial	179		242		—		239		1		266		3
SBA PPP	—		—		—		—		—		—		—
Residential real estate	849		972		—		957		(1)		968		2
Home equity	52		189		—		52		—		53		—
Consumer	—		—		—		—		—		—		—
Ending balance	1,414		1,917		—		1,551		3		1,580		11
Total impaired loans	$	4,163	$	4,666	$	462	$	4,259	$	28	$	4,332	$	61

(1)    Negative interest income represents the re-allocation of income between "with an allowance recorded" and "without an allowance recorded" (or vice versa) during the period.