Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2021

Loans and Allowance for Loan Losses

Schedule of total loans outstanding by portfolio segment

	March 31,		December 31,
(dollars in thousands)	2021		2020
Commercial
Commercial and industrial (1)	$	678,029	$	691,858
Real estate construction		40,473		44,451
Commercial real estate		569,451		563,007
Total commercial		1,287,953		1,299,316
Consumer
Residential real estate first mortgage		454,958		463,370
Residential real estate junior lien		130,299		143,416
Other revolving and installment		64,135		73,273
Total consumer		649,392		680,059
Total loans	$	1,937,345	$	1,979,375

(1) Included Paycheck Protection Program, or PPP, loans of $256.8 million at March 31, 2021 and $268.4 million at December 31, 2020.

Schedule of past due aging analysis of the loan portfolio

	March 31, 2021
					90 Days
	Accruing		30 - 89 Days		or More				Total
(dollars in thousands)	Current		Past Due		Past Due		Nonaccrual		Loans
Commercial
Commercial and industrial	$	675,755	$	75	$	—	$	2,199	$	678,029
Real estate construction		40,473		—		—		—		40,473
Commercial real estate		564,959		2,602		—		1,890		569,451
Total commercial		1,281,187		2,677		—		4,089		1,287,953
Consumer
Residential real estate first mortgage		453,574		952		—		432		454,958
Residential real estate junior lien		129,917		184		—		198		130,299
Other revolving and installment		63,980		118		—		37		64,135
Total consumer		647,471		1,254		—		667		649,392
Total loans	$	1,928,658	$	3,931	$	—	$	4,756	$	1,937,345

	December 31, 2020
					90 Days
	Accruing		30 - 89 Days		or More				Total
(dollars in thousands)	Current		Past Due		Past Due		Nonaccrual		Loans
Commercial
Commercial and industrial	$	689,340	$	500	$	30	$	1,988	$	691,858
Real estate construction		44,451		—		—		—		44,451
Commercial real estate		558,127		2,449		—		2,431		563,007
Total commercial		1,291,918		2,949		30		4,419		1,299,316
Consumer
Residential real estate first mortgage		461,179		1,752		—		439		463,370
Residential real estate junior lien		143,060		191		—		165		143,416
Other revolving and installment		73,128		118		—		27		73,273
Total consumer		677,367		2,061		—		631		680,059
Total loans	$	1,969,285	$	5,010	$	30	$	5,050	$	1,979,375

Schedule of loans outstanding, by portfolio segment and risk category

	March 31, 2021
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	658,607	$	2,725	$	16,516	$	181	$	678,029
Real estate construction		40,473		—		—		—		40,473
Commercial real estate		540,906		3,615		24,930		—		569,451
Total commercial		1,239,986		6,340		41,446		181		1,287,953
Consumer
Residential real estate first mortgage		448,919		3,928		2,111		—		454,958
Residential real estate junior lien		128,788		407		1,104		—		130,299
Other revolving and installment		64,098		—		37		—		64,135
Total consumer		641,805		4,335		3,252		—		649,392
Total loans	$	1,881,791	$	10,675	$	44,698	$	181	$	1,937,345

	December 31, 2020
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	669,602	$	5,415	$	16,841	$	—	$	691,858
Real estate construction		44,451		—		—		—		44,451
Commercial real estate		533,733		6,686		22,588		—		563,007
Total commercial		1,247,786		12,101		39,429		—		1,299,316
Consumer
Residential real estate first mortgage		461,221		1,406		743		—		463,370
Residential real estate junior lien		140,461		1,819		1,136		—		143,416
Other revolving and installment		73,236		—		37		—		73,273
Total consumer		674,918		3,225		1,916		—		680,059
Total loans	$	1,922,704	$	15,326	$	41,345	$	—	$	1,979,375

Summary of changes in allowances

	Three months ended March 31, 2021
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	10,205	$	316	$	(204)	$	170	$	10,487
Real estate construction		658		(60)		—		—		598
Commercial real estate		14,105		277		(536)		3		13,849
Total commercial		24,968		533		(740)		173		24,934
Consumer
Residential real estate first mortgage		5,774		273		—		—		6,047
Residential real estate junior lien		1,373		(168)		—		83		1,288
Other revolving and installment		753		(83)		(44)		40		666
Total consumer		7,900		22		(44)		123		8,001
Unallocated		1,378		(555)		—		—		823
Total	$	34,246	$	—	$	(784)	$	296	$	33,758

	Three months ended March 31, 2020
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	12,270	$	70	$	(32)	$	593	$	12,901
Real estate construction		303		31		—		—		334
Commercial real estate		6,688		1,588		—		—		8,276
Total commercial		19,261		1,689		(32)		593		21,511
Consumer
Residential real estate first mortgage		1,448		761		—		—		2,209
Residential real estate junior lien		671		317		—		37		1,025
Other revolving and installment		352		92		(67)		64		441
Total consumer		2,471		1,170		(67)		101		3,675
Unallocated		2,192		(359)		—		—		1,833
Total	$	23,924	$	2,500	$	(99)	$	694	$	27,019

Schedule of loans distributed by portfolio segment and impairment methodology

	March 31, 2021
	Recorded Investment						Allowance for Loan Losses
	Individually		Collectively				Individually		Collectively
(dollars in thousands)	Evaluated		Evaluated		Total		Evaluated		Evaluated		Total
Commercial
Commercial and industrial	$	2,794	$	675,235	$	678,029	$	691	$	9,796	$	10,487
Real estate construction		—		40,473		40,473		—		598		598
Commercial real estate		4,676		564,775		569,451		268		13,581		13,849
Total commercial		7,470		1,280,483		1,287,953		959		23,975		24,934
Consumer
Residential real estate first mortgage		432		454,526		454,958		—		6,047		6,047
Residential real estate junior lien		202		130,097		130,299		27		1,261		1,288
Other revolving and installment		37		64,098		64,135		16		650		666
Total consumer		671		648,721		649,392		43		7,958		8,001
Unallocated		—		—		—		—		—		823
Total loans	$	8,141	$	1,929,204	$	1,937,345	$	1,002	$	31,933	$	33,758

	December 31, 2020
	Recorded Investment						Allowance for Loan Losses
	Individually		Collectively				Individually		Collectively
(dollars in thousands)	Evaluated		Evaluated		Total		Evaluated		Evaluated		Total
Commercial
Commercial and industrial	$	2,616	$	689,242	$	691,858	$	336	$	9,869	$	10,205
Real estate construction		—		44,451		44,451		—		658		658
Commercial real estate		5,224		557,783		563,007		837		13,268		14,105
Total commercial		7,840		1,291,476		1,299,316		1,173		23,795		24,968
Consumer
Residential real estate first mortgage		439		462,931		463,370		—		5,774		5,774
Residential real estate junior lien		224		143,192		143,416		19		1,354		1,373
Other revolving and installment		27		73,246		73,273		13		740		753
Total consumer		690		679,369		680,059		32		7,868		7,900
Unallocated		—		—		—		—		—		1,378
Total loans	$	8,530	$	1,970,845	$	1,979,375	$	1,205	$	31,663	$	34,246

Schedule of impaired loans

	March 31, 2021						December 31, 2020
	Recorded		Unpaid		Related		Recorded		Unpaid		Related
(dollars in thousands)	Investment		Principal		Allowance		Investment		Principal		Allowance
Impaired loans with a valuation allowance
Commercial and industrial	$	1,606	$	1,689	$	691	$	723	$	725	$	336
Commercial real estate		2,791		2,816		268		3,948		3,974		837
Residential real estate junior lien		27		29		27		19		20		19
Other revolving and installment		37		38		16		27		27		13
Total impaired loans with a valuation allowance		4,461		4,572		1,002		4,717		4,746		1,205
Impaired loans without a valuation allowance
Commercial and industrial		1,188		1,341		—		1,893		2,173		—
Commercial real estate		1,885		2,029		—		1,276		1,415		—
Residential real estate first mortgage		432		461		—		439		464		—
Residential real estate junior lien		175		199		—		205		306		—
Total impaired loans without a valuation allowance		3,680		4,030		—		3,813		4,358		—
Total impaired loans
Commercial and industrial		2,794		3,030		691		2,616		2,898		336
Commercial real estate		4,676		4,845		268		5,224		5,389		837
Residential real estate first mortgage		432		461		—		439		464		—
Residential real estate junior lien		202		228		27		224		326		19
Other revolving and installment		37		38		16		27		27		13
Total impaired loans	$	8,141	$	8,602	$	1,002	$	8,530	$	9,104	$	1,205

The table below presents the average recorded investment in impaired loans and interest income for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
	2021				2020
	Average				Average
	Recorded		Interest		Recorded		Interest
(dollars in thousands)	Investment		Income		Investment		Income
Impaired loans with a valuation allowance
Commercial and industrial	$	1,816	$	13	$	4,979	$	15
Commercial real estate		2,793		138		1,536		8
Residential real estate junior lien		33		—		20		—
Other revolving and installment		38		—		17		—
Total impaired loans with a valuation allowance		4,680		151		6,552		23
Impaired loans without a valuation allowance
Commercial and industrial		1,258		22		545		27
Commercial real estate		2,158		—		—		—
Residential real estate first mortgage		435		—		835		—
Residential real estate junior lien		176		—		224		3
Other revolving and installment		—		—		8		—
Total impaired loans without a valuation allowance		4,027		22		1,612		30
Total impaired loans
Commercial and industrial		3,074		35		5,524		42
Real estate construction		—		—		—		—
Commercial real estate		4,951		138		1,536		8
Residential real estate first mortgage		435		—		835		—
Residential real estate junior lien		209		—		244		3
Other revolving and installment		38		—		25		—
Total impaired loans	$	8,707	$	173	$	8,164	$	53