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Allowance For Loan Losses | 12 Months Ended
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Dec. 31, 2020
Receivables [Abstract] |
Allowance For Loan Losses | ALLOWANCE FOR CREDIT LOSSES The following table summarizes the activity in the allowance for credit losses, by portfolio loan classification, for the years ended December 31, 2020, 2019 and 2018 (in thousands). The allocation of a portion of the allowance in one portfolio segment does not preclude its availability to absorb losses in other portfolio segments.
| Commercial and industrial | Commercial real estate | Residential real estate | Home equity | Consumer | DDA overdrafts | Total
December 31, 2020 |  |  |  |  |  |  |
Allowance for loan loss |  |  |  |  |  |  |
Beginning balance | $ | 2,059 |  | $ | 2,606 |  | $ | 3,448 |  | $ | 1,187 |  | $ | 975 |  | $ | 1,314 |  | $ | 11,589 |
Impact of adopting CECL | 1,715 |  | 3,254 |  | 2,139 |  | (598) |  | (810) |  | 60 |  | 5,760 |
Charge-offs | (843) |  | (1,113) |  | (1,250) |  | (420) |  | (192) |  | (2,345) |  | (6,163) |
Recoveries | 91 |  | 525 |  | 184 |  | 136 |  | 238 |  | 1,467 |  | 2,641 |
Provision for (recovery of) credit losses | 622 |  | 5,725 |  | 3,572 |  | 325 |  | (48) |  | 526 |  | 10,722 |
Ending balance | $ | 3,644 |  | $ | 10,997 |  | $ | 8,093 |  | $ | 630 |  | $ | 163 |  | $ | 1,022 |  | $ | 24,549 |
December 31, 2019 |  |  |  |  |  |  |
Allowance for loan loss |  |  |  |  |  |  |
Beginning balance | $ | 4,060 |  | $ | 4,495 |  | $ | 4,116 |  | $ | 1,268 |  | $ | 319 |  | $ | 1,708 |  | $ | 15,966 |
Charge-offs | (261) |  | (1,358) |  | (787) |  | (294) |  | (1,177) |  | (2,777) |  | (6,654) |
Recoveries | 764 |  | 624 |  | 369 |  | — |  | 265 |  | 1,505 |  | 3,527 |
(Recovery of) provision for credit losses | (2,504) |  | (1,155) |  | (250) |  | 213 |  | 1,568 |  | 878 |  | (1,250) |
Ending balance | $ | 2,059 |  | $ | 2,606 |  | $ | 3,448 |  | $ | 1,187 |  | $ | 975 |  | $ | 1,314 |  | $ | 11,589 |
December 31, 2018 |  |  |  |  |  |  |
Allowance for loan loss |  |  |  |  |  |  |
Beginning balance | $ | 4,571 |  | $ | 6,183 |  | $ | 5,212 |  | $ | 1,138 |  | $ | 62 |  | $ | 1,670 |  | $ | 18,836 |
Charge-offs | (733) |  | (369) |  | (682) |  | (219) |  | (769) |  | (2,701) |  | (5,473) |
Recoveries | 2,152 |  | 732 |  | 367 |  | — |  | 166 |  | 1,496 |  | 4,913 |
(Recovery of) provision for credit losses | (1,930) |  | (2,051) |  | (781) |  | 349 |  | 860 |  | 1,243 |  | (2,310) |
Ending balance | $ | 4,060 |  | $ | 4,495 |  | $ | 4,116 |  | $ | 1,268 |  | $ | 319 |  | $ | 1,708 |  | $ | 15,966 |
Management systematically monitors the loan portfolio and the appropriateness of the allowance for credit losses on a quarterly basis to provide for expected losses inherent in the portfolio. Management assesses the risk in each loan type based on historical trends, the general economic environment of its local markets, individual loan performance and other relevant factors. The provision for credit losses recorded during the year ended December 31, 2020 largely reflects the expected economic impact from the COVID-19 pandemic. The Company's estimate of future economic conditions utilized in its provision estimate is primarily dependent on expected unemployment ranges over a two-year period. Beyond two years, a straight line reversion to historical average loss rates is applied over the life of the loan pool in the migration methodology. The vintage methodology applies future average loss rates based on net losses in historical periods where the unemployment rate was within the forecasted range. As a result of COVID-19, expected unemployment ranges have significantly increased and resulted in an increase in the Company's provision for credit losses. Individual credits in excess of $1 million are selected at least annually for detailed loan reviews, which are utilized by management to assess the risk in the portfolio and the appropriateness of the allowance. Non-Performing Loans The following tables present the amortized cost basis of loans on non-accrual status and loans past due over 90 days still accruing as of December 31, 2020 (in thousands):
| Non-accrual With No | Non-accrual With | Loans Past Due
| Allowance for | Allowance for | Over 90 Days
| Credit Losses | Credit Losses | Still Accruing
Commercial & Industrial | $ | 172 |  | $ | 596 |  | $ | — |
1-4 Family | — |  | 2,056 |  | — |
Hotels | — |  | 2,951 |  | — |
Multi-family | — |  | — |  | — |
Non Residential Non-Owner Occupied | — |  | 508 |  | — |
Non Residential Owner Occupied | 2,297 |  | 589 |  | — |
Commercial Real Estate | 2,297 |  | 6,104 |  | — |
Residential Real Estate | 21 |  | 2,947 |  | — |
Home Equity | — |  | 95 |  | — |
Consumer | — |  | — |  | — |
Total | $ | 2,490 |  | $ | 9,742 |  | $ | — |
The following table presents the Company's loans on non-accrual status and loans past due over 90 days still accruing as of December 31, 2019 (in thousands):
|  | Loans Past Due
|  | Over 90 Days
| Non-accrual | Still Accruing
Commercial and industrial | $ | 1,182 |  | $ | 184 |
Commercial real estate | 6,384 |  | — |
Residential real estate | 3,393 |  | 83 |
Home equity | 531 |  | — |
Consumer | — |  | — |
Total | $ | 11,490 |  | $ | 267 |
The Company recognized less than $0.1 million of interest income on nonaccrual loans during each of the years ended December 31, 2020 and 2019, respectively. The following presents the aging of the amortized cost basis in past-due loans as of December 31, 2020 and 2019 by class of loan (in thousands):
| December 31, 2020
| 30-59 Past Due | 60-89 Past Due | 90+ Past Due | Total Past Due | Current Loans | Non-accrual | Total Loans
Commercial and industrial | $ | 1,213 |  | $ | 27 |  | $ | — |  | $ | 1,240 |  | $ | 370,981 |  | $ | 768 |  | $ | 372,989 |
1-4 Family | 484 |  | — |  | — |  | 484 |  | 107,272 |  | 2,056 |  | 109,812 |
Hotels | — |  | — |  | — |  | — |  | 291,513 |  | 2,951 |  | 294,464 |
Multi-family | — |  | — |  | — |  | — |  | 215,671 |  | — |  | 215,671 |
Non Residential Non-Owner Occupied | 119 |  | — |  | — |  | 119 |  | 640,724 |  | 508 |  | 641,351 |
Non Residential Owner Occupied | 22 |  | — |  | — |  | 22 |  | 210,576 |  | 2,886 |  | 213,484 |
Commercial real estate | 625 |  | — |  | — |  | 625 |  | 1,465,756 |  | 8,401 |  | 1,474,782 |
Residential real estate | 5,177 |  | 816 |  | — |  | 5,993 |  | 1,578,733 |  | 2,968 |  | 1,587,694 |
Home equity | 575 |  | — |  | — |  | 575 |  | 135,799 |  | 95 |  | 136,469 |
Consumer | 63 |  | 50 |  | — |  | 113 |  | 47,575 |  | — |  | 47,688 |
Overdrafts | 334 |  | 7 |  | — |  | 341 |  | 2,156 |  | — |  | 2,497 |
Total | $ | 7,987 |  | $ | 900 |  | $ | — |  | $ | 8,887 |  | $ | 3,601,000 |  | $ | 12,232 |  | $ | 3,622,119 |
| December 31, 2019
| 30-59 Past Due | 60-89 Past Due | 90+ Past Due | Total Past Due | Current Loans | Non-accrual | Total Loans
Commercial and industrial | $ | 243 |  | $ | 31 |  | $ | 184 |  | $ | 458 |  | $ | 306,375 |  | $ | 1,182 |  | $ | 308,015 |
Commercial real estate | 1,514 |  | 66 |  | — |  | 1,580 |  | 1,451,773 |  | 6,384 |  | 1,459,737 |
Residential real estate | 5,758 |  | 1,643 |  | 83 |  | 7,484 |  | 1,629,519 |  | 3,393 |  | 1,640,396 |
Home equity | 840 |  | 116 |  | — |  | 956 |  | 147,441 |  | 531 |  | 148,928 |
Consumer | 156 |  | 32 |  | — |  | 188 |  | 54,075 |  | — |  | 54,263 |
Overdrafts | 644 |  | 86 |  | — |  | 730 |  | 4,030 |  | — |  | 4,760 |
Total | $ | 9,155 |  | $ | 1,974 |  | $ | 267 |  | $ | 11,396 |  | $ | 3,593,213 |  | $ | 11,490 |  | $ | 3,616,099 |
The following table presents the amortized cost basis of individually evaluated impaired collateral-dependent loans as of December 31, 2020 (in thousands). Changes in the fair value of the collateral for collateral-dependent loans are reported as credit loss expense or a reversal of credit loss expense in the period of change.
| Secured by
| Real Estate | Equipment
Commercial and industrial | $ | 173 |  | $ | — |
1-4 Family | — |  | N/A
Hotels | 2,837 |  | N/A
Multi-family | — |  | N/A
Non Residential Non-Owner Occupied | — |  | N/A
Non Residential Owner Occupied | 2,296 |  | N/A
Commercial real estate | 5,133 |  | N/A
Total | $ | 5,306 |  | N/A
The following table presents the Company’s individually evaluated impaired loans, by class (in thousands) as of December 31, 2019.
| December 31, 2019
|  | Unpaid |
| Recorded | Principal | Related
| Investment | Balance | Allowance
With no related allowance recorded: |  |  |
Commercial and industrial | $ | 501 |  | $ | 501 |  | $ | — |
Commercial real estate | 3,546 |  | 3,572 |  | — |
Total | $ | 4,047 |  | $ | 4,073 |  | $ | — |
With an allowance recorded: |  |  |
Commercial and industrial | $ | — |  | $ | — |  | $ | — |
Commercial real estate | 2,644 |  | 2,644 |  | 87 |
Total | $ | 2,644 |  | $ | 2,644 |  | $ | 87 |
The following table presents information related to the average recorded investment and interest income recognized on the Company's impaired loans, by class (in thousands), for the years ended December 31, 2019 and 2018.
| December 31, 2019 | December 31, 2018
| Average | Interest | Average | Interest
| Recorded | Income | Recorded | Income
| Investment | Recognized | Investment | Recognized
With no related allowance recorded: |  |  |  |
Commercial and industrial | $ | 578 |  | $ | — |  | $ | 845 |  | $ | — |
Commercial real estate | 4,388 |  | 41 |  | 4,623 |  | 39 |
Total | $ | 4,966 |  | $ | 41 |  | $ | 5,468 |  | $ | 39 |
With an allowance recorded: |  |  |  |
Commercial and industrial | $ | — |  | $ | — |  | $ | — |  | $ | — |
Commercial real estate | 4,261 |  | 162 |  | 5,043 |  | 220 |
Total | $ | 4,261 |  | $ | 162 |  | $ | 5,043 |  | $ | 220 |
If the Company's non-accrual and impaired loans had been current in accordance with their original terms, less than $0.2 million of interest income would have been recognized during the years ended December 31, 2019 and 2018. There were no commitments to provide additional funds on non-accrual or impaired loans at December 31, 2020. Troubled Debt Restructurings ("TDRs") The following tables set forth the Company’s TDRs (in thousands):
| December 31, 2020 | December 31, 2019
Commercial and industrial | $ | — |  | $ | — |
1-4 Family | 121 |  | N/R
Hotels | 2,634 |  | N/R
Multi-family | 1,883 |  | N/R
Non Residential Non-Owner Occupied | — |  | N/R
Non Residential Owner Occupied | — |  | N/R
Commercial real estate | 4,638 |  | 4,973 |
Residential real estate | 19,226 |  | 21,029 |
Home equity | 2,001 |  | 3,628 |
Consumer | 277 |  | — |
Total TDRs | $ | 26,142 |  | $ | 29,630 |
N/R = Not reported. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP.
The Company has allocated $1.6 million and $0.8 million of the allowance for credit losses for these loans as of December 31, 2020 and December 31, 2019, respectively. As of December 31, 2020, the Company has not committed to lend any additional in relation to these loans. The Company had one TDR that subsequently defaulted in 2019. The loan balance was approximately $3.0 million and the subsequent default resulted in a charge-off of $0.7 million and the remaining balance was transferred to OREO during 2019. The Company has had no significant TDRs that subsequently defaulted in 2020. The following table presents loans by class, modified as TDRs, that occurred during the years ended December 31, 2020, 2019 and 2018, respectively (dollars in thousands):
| New TDRs | New TDRs | New TDRs
| For the year ended | For the year ended | For the year ended
| December 31, 2020 | December 31, 2019 | December 31, 2018
| Pre | Post |  | Pre | Post |  | Pre | Post
| Modification | Modification |  | Modification | Modification |  | Modification | Modification
| Outstanding | Outstanding |  | Outstanding | Outstanding |  | Outstanding | Outstanding
Number of | Recorded | Recorded | Number of | Recorded | Recorded | Number of | Recorded | Recorded
Contracts | Investment | Investment | Contracts | Investment | Investment | Contracts | Investment | Investment
Commercial and industrial | — |  | $ | — |  | $ | — |  | — |  | $ | — |  | $ | — |  | — |  | $ | — |  | $ | — |
1-4 Family | — |  | — |  | — |  | N/R | N/R | N/R | N/R | N/R | N/R
Hotels | — |  | — |  | — |  | N/R | N/R | N/R | N/R | N/R | N/R
Multi-family | — |  | — |  | — |  | N/R | N/R | N/R | N/R | N/R | N/R
Non Owner Non-Owner Occupied | — |  | — |  | — |  | N/R | N/R | N/R | N/R | N/R | N/R
Non Owner Owner Occupied | — |  | — |  | — |  | N/R | N/R | N/R | N/R | N/R | N/R
Commercial real estate | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Residential real estate | 29 |  | 2,724 |  | 2,720 |  | 31 |  | 2,531 |  | 2,531 |  | 33 |  | 2,326 |  | 2,326 |
Home equity | 3 |  | 94 |  | 94 |  | 10 |  | 967 |  | 967 |  | 10 |  | 274 |  | 274 |
Consumer | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total | 32 |  | $ | 2,818 |  | $ | 2,814 |  | 41 |  | $ | 3,498 |  | $ | 3,498 |  | 43 |  | $ | 2,600 |  | $ | 2,600 |
N/R = Not reported. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP.
The TDRs above increased the allowance for credit losses by less than $0.1 million for each of the years ended of December 31, 2020, 2019 and 2018 and resulted in charge-offs of less than $0.2 million during those same time periods. Most TDRs above are reported due to filing Chapter 7 banktruptcy. Regulatory guidance requires that loans be accounted for as collateral-dependent loans when borrowers have filed Chapter 7 bankruptcy, the debt has been discharged by the bankruptcy court and the borrower has not reaffirmed the debt. The filing of bankruptcy is deemed to be evidence that the borrower is in financial difficulty and the discharge of debt by the bankruptcy court is deemed to be a concession granted to the borrower. COVID-19 Pandemic In March of 2020, in response to the COVID-19 pandemic, regulatory guidance was issued that clarified the accounting for loan modifications. Modifications of loan terms do not automatically result in a TDR. Short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extension of repayment terms, or other delays that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time the modification program was implemented. In addition, modifications or deferrals pursuant to the CARES Act do not represent TDRs. However, these deferrals do not absolve the company from performing its normal risk rating and therefore a loan could be current and have a less than satisfactory risk rating. During the year ended December 31, 2020, the Company granted deferrals of approximately $135 million to its mortgage customers. These deferral arrangements ranged from 30 days to 90 days. As of December 31, 2020, approximately $9 million of these loans were still deferring, while approximately $126 million have resumed making their normal loan payment. As of December 30, 2020, approximately $4 million of these deferrals were previously and currently considered TDRs due to Chapter 7 bankruptcies. During the year ended December 31, 2020, the Company granted deferrals of approximately $455 million to its commercial customers. These deferral arrangements ranged from one month to six months. As of December 31, 2020, approximately $99 million of these loans were still deferring (including $88 million for hotel and lodging related loans), while approximately $356 million have resumed making their normal loan payment.

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