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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Summary of Loan Portfolio, Excluding Residential Loans Held for Sale
The following table presents the loan portfolio by segment and class, excluding residential LHFS, at December 31, 2020 and December 31, 2019.
20202019
Commercial real estate:
Owner-occupied$174,908 $170,884 
Non-owner occupied409,567 361,050 
Multi-family113,635 106,893 
Non-owner occupied residential114,505 120,038 
Acquisition and development:
1-4 family residential construction9,486 15,865 
Commercial and land development51,826 41,538 
Commercial and industrial (1)
647,368 214,554 
Municipal20,523 47,057 
Residential mortgage:
First lien244,321 336,372 
Home equity – term10,169 14,030 
Home equity – lines of credit157,021 165,314 
Installment and other loans26,361 50,735 
Total loans$1,979,690 $1,644,330 
(1) This balance includes $403.3 million and $0 of SBA PPP loans, net of deferred fees and costs, at December 31, 2020 and December 31, 2019, respectively.
Summary of Ratings Based On Internal Risk Rating System
The following summarizes the Company’s loan portfolio ratings based on its internal risk rating system at December 31, 2020 and 2019: 
Pass
Special
Mention
Non-Impaired
Substandard
Impaired -
Substandard
DoubtfulPCI LoansTotal
December 31, 2020
Commercial real estate:
Owner-occupied$148,846 $12,491 $7,855 $3,260 $ $2,456 $174,908 
Non-owner occupied351,860 57,378    329 409,567 
Multi-family92,769 20,224 642    113,635 
Non-owner occupied residential107,557 3,948 1,422 268  1,310 114,505 
Acquisition and development:
1-4 family residential construction9,101 385     9,486 
Commercial and land development49,832 655 525 814   51,826 
Commercial and industrial617,213 17,561 6,118 3,639  2,837 647,368 
Municipal20,523      20,523 
Residential mortgage:
First lien236,381   2,628  5,312 244,321 
Home equity – term10,076  64 10  19 10,169 
Home equity – lines of credit156,264 95 54 608   157,021 
Installment and other loans26,283   17  61 26,361 
$1,826,705 $112,737 $16,680 $11,244 $ $12,324 $1,979,690 
December 31, 2019
Commercial real estate:
Owner-occupied$151,161 $4,513 $3,163 $5,872 $— $6,175 $170,884 
Non-owner occupied342,753 17,152 — — — 1,145 361,050 
Multi-family100,361 4,822 682 345 — 683 106,893 
Non-owner occupied residential111,697 4,534 1,115 235 — 2,457 120,038 
Acquisition and development:
1-4 family residential construction
15,865 — — — — — 15,865 
Commercial and land development39,939 206 1,393 — — — 41,538 
Commercial and industrial198,951 1,133 8,899 1,763 — 3,808 214,554 
Municipal42,649 4,408 — — — — 47,057 
Residential mortgage:
First lien323,040 978 — 2,590 — 9,764 336,372 
Home equity – term13,774 74 149 13 — 20 14,030 
Home equity – lines of credit164,469 74 38 733 — — 165,314 
Installment and other loans50,497 — — 85 — 153 50,735 
$1,555,156 $37,894 $15,439 $11,636 $— $24,205 $1,644,330 
Summary of Impaired Loans by Class
The following table, which excludes PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at December 31, 2020 and 2019. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending and any partial charge-off will be recorded when final information is received.
 
 Impaired Loans with a Specific AllowanceImpaired Loans with No Specific Allowance
Recorded
Investment
(Book Balance)
Unpaid
Principal Balance
(Legal Balance)
Related
Allowance
Recorded
Investment
(Book Balance)
Unpaid
Principal Balance
(Legal Balance)
December 31, 2020
Commercial real estate:
Owner-occupied$ $ $ $3,260 $4,091 
Non-owner occupied residential   268 393 
Acquisition and development:
Commercial and land development   814 875 
Commercial and industrial   3,639 4,269 
Residential mortgage:
First lien424 508 33 2,204 3,264 
Home equity—term   10 13 
Home equity—lines of credit   608 832 
Installment and other loans   17 18 
$424 $508 $33 $10,820 $13,755 
December 31, 2019
Commercial real estate:
Owner-occupied$— $— $— $5,872 $8,086 
Multi-family— — — 345 569 
Non-owner occupied residential— — — 235 422 
Commercial and industrial— — — 1,763 3,361 
Residential mortgage:
First lien425 425 36 2,165 3,164 
Home equity—term— — — 13 15 
Home equity—lines of credit— — — 733 1,077 
Installment and other loans— — — 85 97 
$425 $425 $36 $11,211 $16,791 
Summary of Average Recorded Investment in Impaired Loans and Related Interest Income
The following table, which excludes PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the years ended December 31, 2020, 2019 and 2018.
 202020192018
Average
Impaired
Balance
Interest
Income
Recognized
Average
Impaired
Balance
Interest
Income
Recognized
Average
Impaired
Balance
Interest
Income
Recognized
Commercial real estate:
Owner-occupied$4,636 $1 $2,455 $$1,495 $
Non-owner occupied83  46 — 1,842 — 
Multi-family205  152 — 148 — 
Non-owner occupied residential388  217 — 346 — 
Acquisition and development:
1-4 family residential construction  — — 181 — 
Commercial and land development641  21 — — 
Commercial and industrial1,196  683 — 322 — 
Residential mortgage:
First lien2,995 48 2,582 50 3,234 59 
Home equity – term11  13 — 19 — 
Home equity – lines of credit692 1 750 657 
Installment and other loans25  13 — — 
$10,872 $50 $6,932 $54 $8,249 $63 
Schedule of Impaired Loans That Are TDRs
The following table presents impaired loans that are TDRs, with the recorded investment at December 31, 2020 and 2019.
 
 20202019
Number of
Contracts
Recorded
Investment
Number of
Contracts
Recorded
Investment
Accruing:
Commercial real estate:
Owner-occupied1 $28 $30 
Residential mortgage:
First lien9 898 931 
Home equity - lines of credit1 8 18 
11 934 11 979 
Nonaccruing:
Commercial real estate:
Owner-occupied  1,909 
Residential mortgage:
First lien5 320 359 
5 320 2,268 
16 $1,254 20 $3,247 
Schedule of Number of Loans Modified
The following table presents the number of loans modified as TDRs, and their pre-modification and post-modification investment balances for the year ended December 31, 2019. There were no loans modified as TDRs during 2020 and 2018.
Number of
Contracts
Pre-
Modification
Investment
Balance
Post-
Modification
Investment
Balance
December 31, 2019
Commercial real estate:
Owner occupied$1,866 $1,881 
Schedule of Classes of Loan Portfolio Summarized by Aging Categories The following table presents the classes of the loan portfolio summarized by aging categories of performing loans and nonaccrual loans at December 31, 2020 and 2019.
  Days Past Due   
Current30-5960-89
90+
(still accruing)
Total
Past Due
Non-
Accrual
Total
Loans
December 31, 2020
Commercial real estate:
Owner-occupied$168,262 $958 $ $ $958 $3,232 $172,452 
Non-owner occupied409,130 108   108  409,238 
Multi-family113,635      113,635 
Non-owner occupied residential112,443 484   484 268 113,195 
Acquisition and development:
1-4 family residential construction9,486      9,486 
Commercial and land development50,922 32 58  90 814 51,826 
Commercial and industrial640,573 9 310  319 3,639 644,531 
Municipal19,677 846   846  20,523 
Residential mortgage:
First lien230,903 5,758 535 83 6,376 1,730 239,009 
Home equity – term10,099 40  1 41 10 10,150 
Home equity – lines of credit156,153 268   268 600 157,021 
Installment and other loans26,052 168 49 14 231 17 26,300 
Subtotal1,947,335 8,671 952 98 9,721 10,310 1,967,366 
Loans acquired with credit deterioration:
Commercial real estate:
Owner-occupied2,456      2,456 
Non-owner occupied329      329 
Non-owner occupied residential
1,161   149 149  1,310 
Commercial and industrial2,837      2,837 
Residential mortgage:
First lien4,341 655 9 307 971  5,312 
Home equity – term19      19 
Installment and other loans57 4   4  61 
Subtotal11,200 659 9 456 1,124  12,324 
$1,958,535 $9,330 $961 $554 $10,845 $10,310 $1,979,690 
Days Past Due
Current30-5960-89
90+
(still accruing)
Total
Past Due
Non-
Accrual
Total
Loans
December 31, 2019
Commercial real estate:
Owner-occupied$158,723 $144 $— $— $144 $5,842 $164,709 
Non-owner occupied359,425 480 — — 480 — 359,905 
Multi-family105,865 — — — — 345 106,210 
Non-owner occupied residential116,370 841 66 69 976 235 117,581 
Acquisition and development:
1-4 family residential construction15,587 278 — — 278 — 15,865 
Commercial and land development40,403 1,135 — — 1,135 — 41,538 
Commercial and industrial208,668 315 — — 315 1,763 210,746 
Municipal47,057 — — — — — 47,057 
Residential mortgage:
First lien314,473 9,092 1,234 150 10,476 1,659 326,608 
Home equity – term13,993 — — 13 14,010 
Home equity – lines of credit163,907 417 275 — 692 715 165,314 
Installment and other loans50,224 236 37 — 273 85 50,582 
Subtotal1,594,695 12,938 1,616 219 14,773 10,657 1,620,125 
Loans acquired with credit deterioration:
Commercial real estate:
Owner-occupied6,015 — 129 31 160 — 6,175 
Non-owner occupied564 — — 581 581 — 1,145 
Multi-family683 — — — — — 683 
Non-owner occupied residential1,710 105 111 531 747 — 2,457 
Commercial and industrial3,792 — — 16 16 — 3,808 
Residential mortgage:
First lien6,308 1,857 745 854 3,456 — 9,764 
Home equity – term16 — — — 20 
Installment and other loans131 22 — — 22 — 153 
Subtotal19,219 1,988 985 2,013 4,986 — 24,205 
$1,613,914 $14,926 $2,601 $2,232 $19,759 $10,657 $1,644,330 
Schedule of Activity in Allowance for Loan Losses
The following table presents activity in the ALL for the years ended December 31, 2020, 2019 and 2018.
 
 CommercialConsumer  
Commercial
Real Estate
Acquisition
and
Development
Commercial
and
Industrial
MunicipalTotal
Residential
Mortgage
Installment
and Other
TotalUnallocatedTotal
December 31, 2020
Balance, beginning of year
$7,634 $959 $2,356 $100 $11,049 $3,147 $319 $3,466 $140 $14,655 
Provision for loan losses2,745 146 2,096 (60)4,927 203 117 320 78 5,325 
Charge-offs(3) (748) (751)(114)(146)(260) (1,011)
Recoveries775 9 238  1,022 126 34 160  1,182 
Balance, end of year
$11,151 $1,114 $3,942 $40 $16,247 $3,362 $324 $3,686 $218 $20,151 
December 31, 2019
Balance, beginning of year
$6,876 $817 $1,656 $98 $9,447 $3,753 $244 $3,997 $570 $14,014 
Provision for loan losses515 139 841 1,497 (347)180 (167)(430)900 
Charge-offs(25)— (299)— (324)(386)(155)(541)— (865)
Recoveries268 158 — 429 127 50 177 — 606 
Balance, end of year
$7,634 $959 $2,356 $100 $11,049 $3,147 $319 $3,466 $140 $14,655 
December 31, 2018
Balance, beginning of year
$6,763 $417 $1,446 $84 $8,710 $3,400 $211 $3,611 $475 $12,796 
Provision for loan losses(442)396 209 14 177 363 165 528 95 800 
Charge-offs(17)(7)— — (24)(148)(292)(440)— (464)
Recoveries572 11 — 584 138 160 298 — 882 
Balance, end of year
$6,876 $817 $1,656 $98 $9,447 $3,753 $244 $3,997 $570 $14,014 
Summary of Ending Loan Balance Individually Evaluated for Impairment
The following table summarizes the ending loan balances individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at December 31, 2020 and 2019. PCI loans are excluded from loans individually evaluated for impairment.
 CommercialConsumer  
Commercial
Real Estate
Acquisition
and
Development
Commercial
and
Industrial
MunicipalTotal
Residential
Mortgage
Installment
and Other
TotalUnallocatedTotal
December 31, 2020
Loans allocated by:
Individually evaluated for impairment
$3,528 $814 $3,639 $ $7,981 $3,246 $17 $3,263 $ $11,244 
Collectively evaluated for impairment
809,087 60,498 643,729 20,523 1,533,837 408,265 26,344 434,609  1,968,446 
$812,615 $61,312 $647,368 $20,523 $1,541,818 $411,511 $26,361 $437,872 $ $1,979,690 
Allowance for loan losses allocated by:
Individually evaluated for impairment
$ $ $1 $ $1 $33 $ $33 $ $34 
Collectively evaluated for impairment
11,151 1,114 3,941 40 16,246 3,329 324 3,653 218 20,117 
$11,151 $1,114 $3,942 $40 $16,247 $3,362 $324 $3,686 $218 $20,151 
December 31, 2019
Loans allocated by:
Individually evaluated for impairment
$6,452 $— $1,763 $— $8,215 $3,336 $85 $3,421 $— $11,636 
Collectively evaluated for impairment
752,413 57,403 212,791 47,057 1,069,664 512,380 50,650 563,030 — 1,632,694 
$758,865 $57,403 $214,554 $47,057 $1,077,879 $515,716 $50,735 $566,451 $— $1,644,330 
Allowance for loan losses allocated by:
Individually evaluated for impairment
$— $— $— $— $— $36 $— $36 $— $36 
Collectively evaluated for impairment
7,634 959 2,356 100 11,049 3,111 319 3,430 140 14,619 
$7,634 $959 $2,356 $100 $11,049 $3,147 $319 $3,466 $140 $14,655 
Schedule of Activity for the Accretable Yield of Purchased Impaired Loans
The following table provides activity for the accretable yield of purchased impaired loans for the years ended December 31, 2020 and 2019.
20202019
Accretable yield, beginning of period$6,950 $2,065 
Additions (1)
570 3,497 
Accretion of income(3,457)(2,336)
Reclassifications from nonaccretable difference due to improvement in expected cash flows1,871 2,444 
Other changes, net (2)
(2,496)1,280 
Accretable yield, end of period$3,438 $6,950 

(1) The amount for the year ended December 31, 2020 reflects a measurement period adjustment for Hamilton loans that should have been in the PCI pool at the acquisition date. The amount for the year ended December 31, 2019 reflects loans acquired from Hamilton.
(2) The amount for the year ended December 31, 2020 represents the impact of purchased credit impaired loans sold during that year.