XML 37 R27.htm IDEA: XBRL DOCUMENT v3.22.2
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Tables)
 6 Months Ended
Jun. 30, 2022
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,
2022		December 31,
2021
Commercial Loans:
Commercial real estate - non-owner-occupied$1,208,700 $1,178,185 
Commercial real estate - owner-occupied324,214 317,275 
Commercial421,220 363,695 
SBA PPP2,509 35,953 
Total commercial loans1,956,643 1,895,108 
Retail Loans:
Residential real estate1,517,239 1,306,447 
Home equity230,865 210,403 
Consumer19,480 19,516 
Total retail loans1,767,584 1,536,366 
Total loans$3,724,227 $3,431,474 
Schedule of Loan Balances by Portfolio Segment
The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs for the dates indicated:
(In thousands)June 30,
2022		December 31,
2021
Net unamortized fair value mark discount on acquired loans$(467)$(593)
Net unamortized loan origination costs(1)
5,633 3,110 
Total$5,166 $2,517 
(1)    Net unamortized loan origination costs includes unrecognized origination fees for SBA PPP loans of $67,000 and $1.2 million as of June 30, 2022 and December 31, 2021, 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-OccupiedOwner- OccupiedCommercialSBA PPPResidential Real EstateHome EquityConsumerTotal
At or For The Three Months Ended June 30, 2022
Beginning balance, March 31, 2022$16,572 $2,339 $4,838 $4 $6,476 $1,435 $106 $31,770 
Loans charged off— — (316)— (16)— (17)(349)
Recoveries— — 223 — — 86 3 312 
(Credit) provision for loan losses(362)162 400 (3)1,978 275 61 2,511 
Ending balance, June 30, 2022$16,210 $2,501 $5,145 $1 $8,438 $1,796 $153 $34,244 
At or For The Six Months Ended June 30, 2022
Beginning balance, December 31, 2021$18,834 $2,539 $4,183 $19 $6,133 $1,469 $79 $33,256 
Loans charged off— — (561)— (16)— (84)(661)
Recoveries1 2 280 — — 86 5 374 
(Credit) provision for loan losses(2,625)(40)1,243 (18)2,321 241 153 1,275 
Ending balance, June 30, 2022$16,210 $2,501 $5,145 $1 $8,438 $1,796 $153 $34,244 
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, 2021
Beginning balance, December 31, 2020$21,778 $2,832 $6,703 $69 $3,474 $2,616 $393 $37,865 
Loans charged off— — (799)— (92)(162)(111)(1,164)
Recoveries— 9 220 — 107 4 32 372 
(Credit) provision for loan losses(2,944)(302)(1,941)(50)2,644 (989)(235)(3,817)
Ending balance, December 31, 2021$18,834 $2,539 $4,183 $19 $6,133 $1,469 $79 $33,256 
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)20222021202020192018PriorRevolving Loans
Amortized Cost Basis		Revolving Loans
Converted to Term		Total
As of June 30, 2022
Commercial real estate - non-owner-occupied      
Risk rating
Pass (Grades 1-6)$211,579 $277,547 $160,694 $131,091 $112,844 $276,717 $— $— $1,170,472 
Special mention (Grade 7)— 169 7,551 273 81 480 — — 8,554 
Substandard (Grade 8)— 134 1,408 210 8,156 19,766 — — 29,674 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - non-owner-occupied211,579 277,850 169,653 131,574 121,081 296,963 — — 1,208,700 
Commercial real estate - owner-occupied      
Risk rating
Pass (Grades 1-6)36,024 83,960 29,603 45,510 41,167 81,192 — — 317,456 
Special mention (Grade 7)— — — — — 428 — — 428 
Substandard (Grade 8)35 — — — 3,332 2,963 — — 6,330 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - owner occupied36,059 83,960 29,603 45,510 44,499 84,583 — — 324,214 
Commercial
      
Risk rating
Pass (Grades 1-6)47,525 77,885 37,550 38,395 25,149 34,260 125,442 29,534 415,740 
Special mention (Grade 7)— — 105 171 96 212 1,668 16 2,268 
Substandard (Grade 8)23 20 145 265 188 1,845 468 258 3,212 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial47,548 77,905 37,800 38,831 25,433 36,317 127,578 29,808 421,220 
SBA PPP
Risk rating
Pass (Grades 1-6)— 2,507 2 — — — — — 2,509 
Special mention (Grade 7)— — — — — — — — — 
Substandard (Grade 8)— — — — — — — — — 
Doubtful (Grade 9)— — — — — — — — — 
Total SBA PPP— 2,507 2 — — — — — 2,509 
Residential Real Estate      
Risk rating
Pass (Grades 1-6)294,790 591,023 256,977 83,952 54,798 231,980 383 — 1,513,903 
Special mention (Grade 7)— — — — — 224 — — 224 
Substandard (Grade 8)— — — — 61 3,051 — — 3,112 
Doubtful (Grade 9)— — — — — — — — — 
Total residential real estate294,790 591,023 256,977 83,952 54,859 235,255 383 — 1,517,239 
Home equity
      
Risk rating
Performing18,517 706 349 5,217 8,719 10,437 174,348 11,831 230,124 
Non-performing— — — — — 187 367 187 741 
Total home equity
18,517 706 349 5,217 8,719 10,624 174,715 12,018 230,865 
Consumer
      
Risk rating
Performing4,158 5,169 2,457 1,934 573 2,414 2,747 — 19,452 
Non-performing— — 9 18 — 1 — — 28 
Total consumer
4,158 5,169 2,466 1,952 573 2,415 2,747 — 19,480 
Total Loans$612,651 $1,039,120 $496,850 $307,036 $255,164 $666,157 $305,423 $41,826 $3,724,227 
(In thousands)20212020201920182017PriorRevolving Loans
Amortized Cost Basis		Revolving Loans
Converted to Term		Total
As of December 31, 2021
Commercial real estate - non-owner-occupied
Risk rating
Pass (Grades 1-6)$286,428 $179,565 $161,695 $118,196 $96,169 $274,731 $— $— $1,116,784 
Special mention (Grade 7)171 7,266 286 119 4,294 10,590 — — 22,726 
Substandard (Grade 8)350 1,518 217 9,942 391 26,257 — — 38,675 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - non-owner-occupied286,949 188,349 162,198 128,257 100,854 311,578 — — 1,178,185 
Commercial real estate - owner-occupied
Risk rating
Pass (Grades 1-6)91,328 39,082 31,409 43,786 46,466 56,682 — — 308,753 
Special mention (Grade 7)— — — 3,396 362 1,708 — — 5,466 
Substandard (Grade 8)— — 54 — 1,785 1,217 — — 3,056 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial real estate - owner occupied91,328 39,082 31,463 47,182 48,613 59,607 — — 317,275 
Commercial
Risk rating
Pass (Grades 1-6)91,102 43,757 44,925 23,895 13,818 27,743 80,775 31,586 357,601 
Special mention (Grade 7)145 117 590 115 383 222 967 244 2,783 
Substandard (Grade 8)— 339 320 492 293 1,209 360 298 3,311 
Doubtful (Grade 9)— — — — — — — — — 
Total commercial91,247 44,213 45,835 24,502 14,494 29,174 82,102 32,128 363,695 
SBA PPP
Risk rating
Pass (Grades 1-6)35,164 319 — — — — — — 35,483 
Special mention (Grade 7)470 — — — — — — — 470 
Substandard (Grade 8)— — — — — — — — — 
Doubtful (Grade 9)— — — — — — — — — 
Total SBA PPP35,634 319 — — — — — — 35,953 
Residential Real Estate
Risk rating
Pass (Grades 1-6)586,637 281,804 103,228 63,403 46,696 219,983 903 — 1,302,654 
Special mention (Grade 7)— — — — — 230 — — 230 
Substandard (Grade 8)— — — — — 3,563 — — 3,563 
Doubtful (Grade 9)— — — — — — — — — 
Total residential real estate586,637 281,804 103,228 63,403 46,696 223,776 903 — 1,306,447 
Home equity
Risk rating
Performing760 554 6,179 10,995 2,464 10,792 165,189 12,295 209,228 
Non-performing— — — 41 — 174 847 113 1,175 
Total home equity
760 554 6,179 11,036 2,464 10,966 166,036 12,408 210,403 
Consumer
Risk rating
Performing6,860 3,523 3,089 1,051 548 2,014 2,399 — 19,484 
Non-performing— 9 21 — — 2 — — 32 
Total consumer
6,860 3,532 3,110 1,051 548 2,016 2,399 — 19,516 
Total Loans$1,099,415 $557,853 $352,013 $275,431 $213,669 $637,117 $251,440 $44,536 $3,431,474 
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		CurrentTotal Loans
Outstanding		Loans > 90
Days Past
Due and
Accruing
June 30, 2022       
Commercial real estate - non-owner-occupied$92 $— $49 $141 $1,208,559 $1,208,700 $— 
Commercial real estate - owner-occupied— 166 133 299 323,915 324,214 
Commercial325 20 643 988 420,232 421,220 — 
SBA PPP— 46 — 46 2,463 2,509 — 
Residential real estate1,123 61 945 2,129 1,515,110 1,517,239 — 
Home equity466 116 410 992 229,873 230,865 — 
Consumer51 13 27 91 19,389 19,480 — 
Total$2,057 $422 $2,207 $4,686 $3,719,541 $3,724,227 $— 
December 31, 2021       
Commercial real estate - non-owner-occupied$— $— $51 $51 $1,178,134 $1,178,185 $— 
Commercial real estate - owner-occupied47 — 133 180 317,095 317,275 — 
Commercial282 174 787 1,243 362,452 363,695 — 
SBA PPP— 68 — 68 35,885 35,953 — 
Residential real estate379 475 1,210 2,064 1,304,383 1,306,447 — 
Home equity456 50 445 951 209,452 210,403 — 
Consumer95 1 32 128 19,388 19,516 — 
Total$1,259 $768 $2,658 $4,685 $3,426,789 $3,431,474 $— 
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,
2022		December 31,
2021
(In thousands)Non-Accrual Loans With an AllowanceNon-Accrual Loans Without an AllowanceTotal Non-Accrual LoansNon-Accrual Loans With an AllowanceNon-Accrual Loans Without an AllowanceTotal Non-Accrual Loans
Commercial real estate - non-owner-occupied$38 $12 $50 $38 $13 $51 
Commercial real estate - owner-occupied85 47 132 86 47 133 
Commercial371 352 723 785 44 829 
Residential real estate1,463 368 1,831 1,780 327 2,107 
Home equity675 66 741 1,064 111 1,175 
Consumer28 — 28 32 — 32 
Total$2,660 $845 $3,505 $3,785 $542 $4,327 
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,
2022		December 31,
2021
Collateral TypeTotal Collateral -Dependent
Non-Accrual Loans		Collateral TypeTotal Collateral -Dependent
Non-Accrual Loans
(In thousands)Real EstateGeneral Business AssetsReal Estate General Business Assets
Residential real estate$325 $— $325 $268 $— $268 
Home equity— — — 111 — 111 
Total$325 $— $325 $379 $— $379 
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 ContractsRecorded InvestmentSpecific Reserve
(In thousands, except number of contracts)
June 30,
2022		December 31,
2021		June 30,
2022		December 31,
2021		June 30,
2022		December 31,
2021
Commercial real estate - owner-occupied1 1 $116 $118 $46 $43 
Commercial
2 2 66 74 — — 
Residential real estate
19 19 2,276 2,341 325 $348 
Consumer and home equity
3 3 251 253 6 6 
Total25 25 $2,709 $2,786 $377 $397 
Troubled Debt Restructuring
The following represents loan modifications that qualify as TDRs that occurred during the periods indicated:
Number of ContractsPre-Modification
Outstanding
Recorded Investment		Post-Modification
Outstanding
Recorded Investment		Specific Reserve
(In thousands, except number of contracts)20222021202220212022202120222021
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