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Loans Receivable, Net | 12 Months Ended
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Dec. 31, 2020
Receivables [Abstract] |
Loans Receivable, Net | Loans Receivable, Net Loans receivable, net, at December 31, 2020 and 2019 consisted of the following (in thousands):
|  | December 31,
|  | 2020 |  | 2019
Commercial: |  |  |  |
Commercial and industrial (1) |  | $ | 470,656 |  |  | $ | 396,434 |
Commercial real estate - owner occupied |  | 1,145,065 |  |  | 792,653 |
Commercial real estate - investor |  | 3,491,464 |  |  | 2,296,410 |
Total commercial |  | 5,107,185 |  |  | 3,485,497 |
Consumer: |  |  |  |
Residential real estate |  | 2,309,459 |  |  | 2,321,157 |
Home equity loans and lines |  | 285,016 |  |  | 318,576 |
Other consumer |  | 54,446 |  |  | 89,422 |
Total consumer |  | 2,648,921 |  |  | 2,729,155 |
Total loans receivable |  | 7,756,106 |  |  | 6,214,652 |
Deferred origination costs, net of fees |  | 9,486 |  |  | 9,880 |
Allowance for credit losses |  | (60,735) |  |  | (16,852) |
Total loans receivable, net |  | $ | 7,704,857 |  |  | $ | 6,207,680 |
(1)The commercial and industrial loans balance at December 31, 2020 includes Paycheck Protection Program (“PPP”) loans of $95.4 million. The Company categorizes all loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, and current economic trends, among other factors. Generally, risk ratings for loans on forbearance pursuant to the CARES Act are not re-evaluated until the initial 90-day forbearance period ends. At that time, risk ratings are updated with an emphasis on industries that were heavily impacted by the pandemic, as well as individual borrower liquidity, and other measures of resiliency as described below. The Company evaluates risk ratings on an ongoing basis and as such, adversely rated loans will be re-evaluated as government restrictions end and businesses resume normal operations. The Company uses the following definitions for risk ratings: Pass: Loans classified as Pass are well protected by the paying capacity and net worth of the borrower. Special Mention: Loans classified as Special Mention have a potential weakness that deserves management’s close attention. This includes borrowers that have been negatively affected by the pandemic but demonstrate some degree of liquidity. This liquidity may or may not be adequate to resume operations. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date. Substandard: Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. This includes borrowers whose operations were negatively affected by the pandemic and whom, in the Bank’s assessment, do not have adequate liquidity available to resume operations at levels sufficient to service their current debt levels. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following table summarizes total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands):
|  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | 2015 and prior |  | Revolving lines of credit |  | Total
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 137,262 |  |  | $ | 40,737 |  |  | $ | 27,967 |  |  | $ | 18,845 |  |  | $ | 33,568 |  |  | $ | 59,339 |  |  | $ | 134,140 |  |  | $ | 451,858 |
Special Mention |  | 150 |  |  | 583 |  |  | 826 |  |  | 1,422 |  |  | 907 |  |  | 118 |  |  | 1,429 |  |  | 5,435 |
Substandard |  | 581 |  |  | 1,284 |  |  | 1,243 |  |  | 809 |  |  | 439 |  |  | 1,706 |  |  | 7,301 |  |  | 13,363 |
Total commercial and industrial |  | 137,993 |  |  | 42,604 |  |  | 30,036 |  |  | 21,076 |  |  | 34,914 |  |  | 61,163 |  |  | 142,870 |  |  | 470,656 |
Commercial real estate - owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 96,888 |  |  | 114,506 |  |  | 122,962 |  |  | 124,050 |  |  | 104,264 |  |  | 428,423 |  |  | 18,932 |  |  | 1,010,025 |
Special Mention |  | — |  |  | 3,512 |  |  | 8,240 |  |  | 1,023 |  |  | 17,115 |  |  | 17,811 |  |  | 439 |  |  | 48,140 |
Substandard |  | — |  |  | 34,670 |  |  | 9,001 |  |  | 3,404 |  |  | 3,677 |  |  | 35,509 |  |  | 639 |  |  | 86,900 |
Total commercial real estate - owner occupied |  | 96,888 |  |  | 152,688 |  |  | 140,203 |  |  | 128,477 |  |  | 125,056 |  |  | 481,743 |  |  | 20,010 |  |  | 1,145,065 |
Commercial real estate - investor |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 635,930 |  |  | $ | 628,435 |  |  | $ | 317,104 |  |  | $ | 426,268 |  |  | $ | 281,876 |  |  | $ | 812,062 |  |  | $ | 194,913 |  |  | $ | 3,296,588 |
Special Mention |  | — |  |  | 15,979 |  |  | 17,113 |  |  | 15,225 |  |  | 4,234 |  |  | 55,872 |  |  | 149 |  |  | 108,572 |
Substandard |  | 4,311 |  |  | 9,217 |  |  | 1,931 |  |  | 17,222 |  |  | 11,474 |  |  | 36,326 |  |  | 5,823 |  |  | 86,304 |
Total commercial real estate - investor |  | 640,241 |  |  | 653,631 |  |  | 336,148 |  |  | 458,715 |  |  | 297,584 |  |  | 904,260 |  |  | 200,885 |  |  | 3,491,464 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 595,982 |  |  | $ | 437,593 |  |  | $ | 226,435 |  |  | $ | 166,773 |  |  | $ | 146,237 |  |  | $ | 729,037 |  |  | $ | — |  |  | $ | 2,302,057 |
Special Mention |  | — |  |  | 532 |  |  | — |  |  | — |  |  | 446 |  |  | 2,186 |  |  | — |  |  | 3,164 |
Substandard |  | 570 |  |  | — |  |  | 1,489 |  |  | 221 |  |  | — |  |  | 1,958 |  |  | — |  |  | 4,238 |
Total residential real estate |  | 596,552 |  |  | 438,125 |  |  | 227,924 |  |  | 166,994 |  |  | 146,683 |  |  | 733,181 |  |  | — |  |  | 2,309,459 |
Consumer (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 24,954 |  |  | 26,659 |  |  | 83,296 |  |  | 25,469 |  |  | 16,565 |  |  | 156,276 |  |  | 2,145 |  |  | 335,364 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | 150 |  |  | 382 |  |  | — |  |  | 532 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,566 |  |  | — |  |  | 3,566 |
Total consumer |  | 24,954 |  |  | 26,659 |  |  | 83,296 |  |  | 25,469 |  |  | 16,715 |  |  | 160,224 |  |  | 2,145 |  |  | 339,462 |
Total loans receivable |  | $ | 1,496,628 |  |  | $ | 1,313,707 |  |  | $ | 817,607 |  |  | $ | 800,731 |  |  | $ | 620,952 |  |  | $ | 2,340,571 |  |  | $ | 365,910 |  |  | $ | 7,756,106 |
(1)For residential real estate and consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. An analysis of the allowance for credit losses on loans for the years ended December 31, 2020 and 2019 is as follows (in thousands):
|  | Commercial and Industrial |  | Commercial Real Estate - Owner Occupied |  | Commercial Real Estate - Investor |  | Residential Real Estate |  | Consumer |  | Unallocated |  | Total
For the Year Ended December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses on loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of year |  | $ | 1,458 |  |  | $ | 2,893 |  |  | $ | 9,883 |  |  | $ | 2,002 |  |  | $ | 591 |  |  | $ | 25 |  |  | $ | 16,852 |
Impact of CECL adoption |  | 2,416 |  |  | (1,109) |  |  | (5,395) |  |  | 3,833 |  |  | 2,981 |  |  | (25) |  |  | 2,701 |
Initial allowance for credit losses on PCD loans |  | 1,221 |  |  | 26 |  |  | 260 |  |  | 109 |  |  | 1,023 |  |  | — |  |  | 2,639 |
Credit loss expense (benefit) (1) |  | 1,039 |  |  | 15,007 |  |  | 34,935 |  |  | 8,191 |  |  | (1,770) |  |  | — |  |  | 57,402 |
Charge-offs (1) |  | (890) |  |  | (1,769) |  |  | (13,081) |  |  | (3,200) |  |  | (1,244) |  |  | — |  |  | (20,184) |
Recoveries |  | 146 |  |  | 6 |  |  | 101 |  |  | 883 |  |  | 189 |  |  | — |  |  | 1,325 |
Balance at end of year |  | $ | 5,390 |  |  | $ | 15,054 |  |  | $ | 26,703 |  |  | $ | 11,818 |  |  | $ | 1,770 |  |  | $ | — |  |  | $ | 60,735 |
For the Year Ended December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses on loans |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of year |  | $ | 1,609 |  |  | $ | 2,277 |  |  | $ | 8,770 |  |  | $ | 2,413 |  |  | $ | 486 |  |  | $ | 1,022 |  |  | $ | 16,577 |
Credit loss (benefit) expense |  | (311) |  |  | 947 |  |  | 638 |  |  | 792 |  |  | 567 |  |  | (997) |  |  | 1,636 |
Charge-offs |  | — |  |  | (663) |  |  | (236) |  |  | (1,299) |  |  | (606) |  |  | — |  |  | (2,804) |
Recoveries |  | 160 |  |  | 332 |  |  | 711 |  |  | 96 |  |  | 144 |  |  | — |  |  | 1,443 |
Balance at end of year |  | $ | 1,458 |  |  | $ | 2,893 |  |  | $ | 9,883 |  |  | $ | 2,002 |  |  | $ | 591 |  |  | $ | 25 |  |  | $ | 16,852 |
(1) The year ended December 31, 2020 was impacted by the shift in current and forward-looking economic conditions, credit migration and borrower vulnerability related to COVID-19. The Company recorded $14.6 million of charge-offs related to the sale of higher-risk commercial loans and $3.3 million of charge-offs related to the sale of under-performing residential and consumer loans. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. At December 31, 2020, the Company had collateral dependent loans with an amortized cost balance as follows: commercial and industrial of $1.9 million, commercial real estate - owner occupied of $13.8 million, and commercial real estate - investor of $18.3 million. In addition, the Company had residential and consumer loans collateralized by residential real estate, which are in the process of foreclosure, with an amortized cost balance of $1.4 million and $1.8 million at December 31, 2020 and December 31, 2019, respectively. The amount of foreclosed residential real estate property held by the Company was $106,000 and $51,000 at December 31, 2020 and December 31, 2019, respectively. In accordance with ASC 310, prior to the adoption of ASU 2016-13, the following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019, excluding PCI loans (in thousands):
|  | Commercial and Industrial |  | Commercial Real Estate - Owner Occupied |  | Commercial Real Estate - Investor |  | Residential Real Estate |  | Consumer |  | Unallocated |  | Total
At December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributed to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | — |  |  | $ | 474 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | 476 |
Collectively evaluated for impairment |  | 1,458 |  |  | 2,419 |  |  | 9,883 |  |  | 2,002 |  |  | 589 |  |  | 25 |  |  | 16,376 |
Total ending allowance balance |  | $ | 1,458 |  |  | $ | 2,893 |  |  | $ | 9,883 |  |  | $ | 2,002 |  |  | $ | 591 |  |  | $ | 25 |  |  | $ | 16,852 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 243 |  |  | $ | 6,163 |  |  | $ | 5,584 |  |  | $ | 11,009 |  |  | $ | 3,511 |  |  | $ | — |  |  | $ | 26,510 |
Loans collectively evaluated for impairment |  | 395,848 |  |  | 785,778 |  |  | 2,279,114 |  |  | 2,309,812 |  |  | 404,325 |  |  | — |  |  | 6,174,877 |
Total ending loan balance |  | $ | 396,091 |  |  | $ | 791,941 |  |  | $ | 2,284,698 |  |  | $ | 2,320,821 |  |  | $ | 407,836 |  |  | $ | — |  |  | $ | 6,201,387 |
As of December 31, 2019, the Company defined an impaired loan as non-accrual commercial real estate, multi-family, land, construction and commercial loans in excess of $250,000. Impaired loans also included all loans modified as troubled debt restructurings. At December 31, 2019, the impaired loan portfolio totaled $26.5 million for which there was a $476,000 specific allocation in the allowance for loan losses. The average balance of impaired loans for the year ended December 31, 2019 was $29.4 million. If interest income on non-accrual loans and impaired loans had been current in accordance with their original terms, approximately $372,000 and $419,000 of interest income for the years ended December 31, 2019 and 2018, respectively, would have been recorded. At December 31, 2019, impaired loans include TDR loans of $24.6 million, of which $18.0 million were performing in accordance with their restructured terms for a minimum of six months and were accruing interest. The summary of loans individually evaluated for impairment by loan portfolio segment as of December 31, 2019 was as follows, excluding PCI loans (in thousands):
|  | Unpaid Principal Balance |  | Recorded Investment |  | Allowance for Loan Losses Allocated
At December 31, 2019 |  |  |  |  |  |
With no related allowance recorded: |  |  |  |  |  |
Commercial and industrial |  | $ | 265 |  |  | $ | 243 |  |  | $ | — |
Commercial real estate – owner occupied |  | 4,062 |  |  | 3,968 |  |  | — |
Commercial real estate – investor |  | 6,665 |  |  | 5,584 |  |  | — |
Residential real estate |  | 11,009 |  |  | 11,009 |  |  | — |
Consumer |  | 3,734 |  |  | 3,509 |  |  | — |
Total with no related allowance recorded |  | $ | 25,735 |  |  | $ | 24,313 |  |  | $ | — |
With an allowance recorded: |  |  |  |  |  |
Commercial and industrial |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate – owner occupied |  | 2,376 |  |  | 2,195 |  |  | 474 |
Commercial real estate – investor |  | — |  |  | — |  |  | — |
Residential real estate |  | — |  |  | — |  |  | — |
Consumer |  | 2 |  |  | 2 |  |  | 2 |
Total with an allowance recorded |  | $ | 2,378 |  |  | $ | 2,197 |  |  | $ | 476 |
|  |  |  |  |  | For the Year Ended December 31, 2019
|  |  |  |  |  | Average Recorded Investment |  | Interest Income Recognized
With no related allowance recorded: |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | 523 |  |  | $ | 5 |
Commercial real estate – owner occupied |  |  |  |  |  | 4,171 |  |  | 179 |
Commercial real estate – investor |  |  |  |  |  | 9,012 |  |  | 222 |
Residential real estate |  |  |  |  |  | 10,275 |  |  | 548 |
Consumer |  |  |  |  |  | 3,275 |  |  | 178 |
Total with no related allowance recorded |  |  |  |  |  | $ | 27,256 |  |  | $ | 1,132 |
With an allowance recorded: |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | — |  |  | $ | — |
Commercial real estate – owner occupied |  |  |  |  |  | 2,173 |  |  | 138 |
Commercial real estate – investor |  |  |  |  |  | — |  |  | — |
Residential real estate |  |  |  |  |  | — |  |  | — |
Consumer |  |  |  |  |  | — |  |  | — |
Total with an allowance recorded |  |  |  |  |  | $ | 2,173 |  |  | $ | 138 |
The following table presents the recorded investment in non-accrual loans by loan portfolio segment as of December 31, 2020 and 2019 (in thousands). The December 31, 2020 balances include PCD loans while the December 31, 2019 balances exclude PCI loans (in accordance with ASC 310, prior to the adoption of ASU 2016-13 on January 1, 2020).
|  | December 31,
|  | 2020 |  | 2019
Commercial and industrial |  | $ | 1,908 |  |  | $ | 207 |
Commercial real estate – owner occupied |  | 13,751 |  |  | 4,811 |
Commercial real estate – investor |  | 18,287 |  |  | 2,917 |
Residential real estate |  | 8,671 |  |  | 7,181 |
Consumer |  | 4,246 |  |  | 2,733 |
Total non-accrual loans |  | $ | 46,863 |  |  | $ | 17,849 |
At December 31, 2020, the non-accrual loans were included in the allowance for credit loss calculation and the Company did not recognize or accrue interest income on these loans. At December 31, 2020 and December 31, 2019, there were no loans that were 90 days or greater past due and still accruing interest. The following table presents the aging of the recorded investment in past due loans as of December 31, 2020 and 2019 by loan portfolio segment (in thousands). The December 31, 2020 balances include PCD loans while the December 31, 2019 balances exclude PCI loans (in accordance with ASC 310, prior to the adoption of ASU 2016-13 on January 1, 2020).
|  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or Greater Past Due |  | Total Past Due |  | Loans Not Past Due |  | Total
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 3,050 |  |  | $ | 628 |  |  | $ | 327 |  |  | $ | 4,005 |  |  | $ | 466,651 |  |  | $ | 470,656 |
Commercial real estate – owner occupied |  | 1,015 |  |  | — |  |  | 7,871 |  |  | 8,886 |  |  | 1,136,179 |  |  | 1,145,065 |
Commercial real estate – investor |  | 8,897 |  |  | 3,233 |  |  | 11,122 |  |  | 23,252 |  |  | 3,468,212 |  |  | 3,491,464 |
Residential real estate |  | 15,156 |  |  | 3,164 |  |  | 4,238 |  |  | 22,558 |  |  | 2,286,901 |  |  | 2,309,459 |
Consumer |  | 978 |  |  | 533 |  |  | 3,568 |  |  | 5,079 |  |  | 334,383 |  |  | 339,462 |
Total loans receivable |  | $ | 29,096 |  |  | $ | 7,558 |  |  | $ | 27,126 |  |  | $ | 63,780 |  |  | $ | 7,692,326 |  |  | $ | 7,756,106 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 100 |  |  | $ | — |  |  | $ | 207 |  |  | $ | 307 |  |  | $ | 395,784 |  |  | $ | 396,091 |
Commercial real estate – owner occupied |  | 1,541 |  |  | 1,203 |  |  | 1,040 |  |  | 3,784 |  |  | 788,157 |  |  | 791,941 |
Commercial real estate – investor |  | 381 |  |  | 938 |  |  | 2,792 |  |  | 4,111 |  |  | 2,280,587 |  |  | 2,284,698 |
Residential real estate |  | 8,161 |  |  | 3,487 |  |  | 2,859 |  |  | 14,507 |  |  | 2,306,314 |  |  | 2,320,821 |
Consumer |  | 1,048 |  |  | 491 |  |  | 2,388 |  |  | 3,927 |  |  | 403,909 |  |  | 407,836 |
Total loans receivable |  | $ | 11,231 |  |  | $ | 6,119 |  |  | $ | 9,286 |  |  | $ | 26,636 |  |  | $ | 6,174,751 |  |  | $ | 6,201,387 |
The Company classifies certain loans as TDRs when credit terms to a borrower in financial difficulty are modified. The modifications may include a reduction in rate, an extension in term, the capitalization of past due amounts and/or the restructuring of scheduled principal payments. Residential real estate and consumer loans where the borrower’s debt is discharged in a bankruptcy filing are also considered TDRs. For these loans, the Bank retains its security interest in the real estate collateral. At December 31, 2020 and 2019, TDR loans totaled $17.5 million and $24.6 million, respectively. Included in the non-accrual loan total at December 31, 2020 and 2019 were $5.5 million and $6.6 million, respectively, of TDRs. At December 31, 2020 and 2019, the Company had $0 and $476,000, respectively, of specific reserves allocated to loans that are classified as TDRs. Non-accrual loans which become TDRs are generally returned to accrual status after six months of performance. In addition to the TDRs included in non-accrual loans, the Company also has loans classified as accruing TDRs at December 31, 2020 and 2019 which totaled $12.0 million and $18.0 million, respectively. The following table presents information about TDRs which occurred during the years ended December 31, 2020 and 2019, and TDRs modified within the previous year and which defaulted during the years ended December 31, 2020 and 2019 (dollars in thousands):
|  | Number of Loans |  | Pre-modification Recorded Investment |  | Post-modification Recorded Investment
For the Year Ended December 31, 2020 |  |  |  |  |  |
Troubled debt restructurings: |  |  |  |  |  |
Commercial real estate – owner occupied |  | 1 |  | $ | 1,112 |  |  | $ | 1,143 |
Commercial real estate – investor |  | 2 |  | 1,035 |  |  | 1,116 |
Residential real estate |  | 6 |  | 1,018 |  |  | 1,065 |
Consumer |  | 6 |  | 1,035 |  |  | 668 |
|  |  |  | Number of Loans |  | Recorded Investment
Troubled debt restructurings |  |  |  |  |  |
Which subsequently defaulted: |  |  |  | None |  | None
|  | Number of Loans |  | Pre-modification Recorded Investment |  | Post-modification Recorded Investment
For the Year Ended December 31, 2019 |  |  |  |  |  |
Troubled debt restructurings: |  |  |  |  |  |
Commercial real estate – owner occupied |  | 1 |  | $ | 154 |  |  | $ | 198 |
Commercial real estate – investor |  | 1 |  | 272 |  |  | 393 |
Residential real estate |  | 6 |  | 1,036 |  |  | 1,091 |
Consumer |  | 7 |  | 663 |  |  | 683 |
|  |  |  | Number of Loans |  | Recorded Investment
Troubled debt restructurings |  |  |  |  |  |
Which subsequently defaulted: |  |  |  |  |  |
Consumer |  |  |  | 1 |  | $ | 115 |
In response to the COVID-19 pandemic and its economic impact on customers, short-term modification programs that comply with the CARES Act were implemented to provide temporary payment relief to those borrowers directly impacted by COVID-19. The Commercial Borrower Relief Program allowed for the deferral of principal and interest or principal only. For principal and interest deferrals as well as principal only deferrals, all payments received are first applied to all accrued and unpaid interest and the balance, if any, on account of unpaid principal, is then applied to fees, expenses and other amounts due to the Bank. Monthly payments will continue until the maturity date when all then unpaid principal, interest, fees, and all other charges are due and payable to the Bank. The Consumer Borrower Relief Program allowed for the deferral of principal and interest. The deferred payments along with interest accrued during the deferral period are due and payable on the maturity date. Provided these loans were current as of either year end or the date of the modification, these loans were not considered TDR loans at December 31, 2020 and will not be reported as past due during the deferral period. As part of the Two River and Country Bank acquisitions, the Company purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of the PCD loans is as follows (in thousands):
| Two River |  | Country Bank |  |  |  |
| January 1, 2020 |  | January 1, 2020 |  |  |  |
Purchase price of loans at acquisition | $ | 26,354 |  |  | $ | 24,667 |  |  |  |  |
Allowance for credit losses at acquisition | 1,343 |  |  | 1,296 |  |  |  |  |
Non-credit discount at acquisition | 3,589 |  |  | 5,334 |  |  |  |  |
Par value of acquired loans at acquisition | $ | 31,286 |  |  | $ | 31,297 |  |  |  |  |
The following table summarizes the changes in accretable yield for PCI loans during the year ended December 31, 2019 (in thousands):
|  | For the Year Ended December 31,
|  | 2019
Beginning balance |  | $ | 3,630 |
Acquisition |  | 691 |
Accretion |  | (2,613) |
Reclassification from non-accretable difference |  | 1,317 |
Ending balance |  | $ | 3,025 |

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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