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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Summary of Loan Portfolio, Excluding Residential Loans Held for Sale, Broken Out by Classes
The following table presents the loan portfolio by segment and class, excluding residential mortgage LHFS, at March 31, 2020 and December 31, 2019:
March 31, 2020December 31, 2019
Commercial real estate:
Owner occupied$168,586  $170,884  
Non-owner occupied377,933  361,050  
Multi-family107,797  106,893  
Non-owner occupied residential118,773  120,038  
Acquisition and development:
1-4 family residential construction13,037  15,865  
Commercial and land development49,348  41,538  
Commercial and industrial235,791  214,554  
Municipal46,551  47,057  
Residential mortgage:
First lien324,766  336,372  
Home equity - term13,337  14,030  
Home equity - lines of credit165,375  165,314  
Installment and other loans35,654  50,735  
Total Loans $1,656,948  $1,644,330  
Loan Portfolio Ratings Based on Internal Risk Rating System
The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at March 31, 2020 and December 31, 2019:
PassSpecial MentionNon-Impaired SubstandardImpaired - SubstandardDoubtfulPCI LoansTotal
March 31, 2020
Commercial real estate:
Owner occupied$152,679  $4,538  $3,013  $3,487  $—  $4,869  $168,586  
Non-owner occupied361,029  15,996  —  —  —  908  377,933  
Multi-family102,838  3,951  672  336  —  —  107,797  
Non-owner occupied residential111,102  4,374  1,380  340  —  1,577  118,773  
Acquisition and development:
1-4 family residential construction12,523  514  —  —  —  —  13,037  
Commercial and land development47,762  200  549  837  —  —  49,348  
Commercial and industrial222,152  967  8,108  840  —  3,724  235,791  
Municipal42,221  4,330  —  —  —  —  46,551  
Residential mortgage:
First lien316,296  —  —  2,188  —  6,282  324,766  
Home equity - term13,233  72  —  12  —  20  13,337  
Home equity - lines of credit164,549  73  36  717  —  —  165,375  
Installment and other loans35,540  —  —  20  —  94  35,654  
$1,581,924  $35,015  $13,758  $8,777  $—  $17,474  $1,656,948  
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 construction15,865  —  —  —  —  —  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  
Impaired Loans by Segment and 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 March 31, 2020 and December 31, 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 AllowanceRecorded Investment (Book Balance)Unpaid Principal Balance (Legal Balance)
March 31, 2020
Commercial real estate:
Owner-occupied$—  $—  $—  $3,487  $4,246  
Multi-family—  —  —  336  565  
Non-owner occupied residential—  —  —  340  537  
Acquisition and development:
Commercial and land development—  —  —  837  875  
Commercial and industrial—  —  —  840  2,159  
Residential mortgage:
First lien724  724  37  1,464  2,777  
Home equity—term—  —  —  12  14  
Home equity—lines of credit—  —  —  717  1,028  
Installment and other loans—  —  —  20  30  
$724  $724  $37  $8,053  $12,231  
December 31, 2019
Commercial real estate:
Owner-occupied$—  $—  $—  $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  
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 three months ended March 31, 2020 and 2019:
20202019
Average
Impaired
Balance		Interest
Income
Recognized		Average
Impaired
Balance		Interest
Income
Recognized
Three Months Ended March 31,
Commercial real estate:
Owner occupied$5,234  $1  $1,863  $—  
Non-owner occupied—  —  —  —  
Multi-family341  —  127  —  
Non-owner occupied residential257  —  301  —  
Acquisition and development:
1-4 family residential construction—  —  —  —  
Commercial and land development209  —  —  —  
Commercial and industrial1,313  —  277  —  
Residential mortgage:
First lien2,400  12  2,788  15  
Home equity - term12  —  15  —  
Home equity - lines of credit726  —  758  —  
Installment and other loans46  —  7  —  
$10,538  $13  $6,136  $15  
Troubled Debt Restructurings
The following table presents impaired loans that are TDRs, with the recorded investment at March 31, 2020 and December 31, 2019:

March 31, 2020December 31, 2019
Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Accruing:
Commercial real estate:
Owner occupied1  $29  1  $30  
Residential mortgage:
First lien9  925  9  931  
Home equity - lines of credit1  17  1  18  
11  971  11  979  
Nonaccruing:
Commercial real estate:
Owner occupied2  218  4  1,909  
Residential mortgage:
First lien5  350  5  359  
7  568  9  2,268  
18  $1,539  20  $3,247  
Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at March 31, 2020 and December 31, 2019:
Days Past Due
Current30-5960-8990+
(still accruing)		Total
Past Due		Non-
Accrual		Total
Loans
March 31, 2020
Commercial real estate:
Owner occupied$156,194  $4,065  $—  $—  $4,065  $3,458  $163,717  
Non-owner occupied377,025  —  —  —  —  —  377,025  
Multi-family107,180  281  —  —  281  336  107,797  
Non-owner occupied residential116,222  634  —  —  634  340  117,196  
Acquisition and development:
1-4 family residential construction12,780  257  —  —  257  —  13,037  
Commercial and land development48,495  16  —  —  16  837  49,348  
Commercial and industrial230,859  367  —  1  368  840  232,067  
Municipal46,551  —  —  —  —  —  46,551  
Residential mortgage:
First lien305,689  10,705  621  206  11,532  1,263  318,484  
Home equity - term13,302  3  —  —  3  12  13,317  
Home equity - lines of credit164,049  475  151  —  626  700  165,375  
Installment and other loans35,235  260  45  —  305  20  35,560  
Subtotal1,613,581  17,063  817  207  18,087  7,806  1,639,474  
Loans acquired with credit deterioration:
Commercial real estate:
Owner occupied3,199  1,545  —  125  1,670  —  4,869  
Non-owner occupied338  —  —  570  570  —  908  
Non-owner occupied residential1,296  1  —  280  281  —  1,577  
Commercial and industrial3,708  —  —  16  16  —  3,724  
Residential mortgage:
First lien3,551  1,814  —  917  2,731  —  6,282  
Home equity - term16  4  —  —  4  —  20  
Installment and other loans67  10  17  —  27  —  94  
Subtotal12,175  3,374  17  1,908  5,299  —  17,474  
$1,625,756  $20,437  $834  $2,115  $23,386  $7,806  $1,656,948  
Days Past Due
Current30-5960-8990+
(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  —  4  —  4  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  4  —  —  4  —  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  
Activity in Allowance for Loan Losses
The following table presents the activity in the ALL for the three months ended March 31, 2020 and 2019:
CommercialConsumer
Commercial
Real Estate		Acquisition
and
Development		Commercial
and
Industrial		MunicipalTotalResidential
Mortgage		Installment
and Other		TotalUnallocatedTotal
March 31, 2020
Balance, beginning of period$7,634  $959  $2,356  $100  $11,049  $3,147  $319  $3,466  $140  $14,655  
Provision for loan losses383  71  322  (1) 775  77  42  119  31  925  
Charge-offs—  —  (75) —  (75) (91) (72) (163) —  (238) 
Recoveries403  3  44  —  450  6  5  11  —  461  
Balance, end of period$8,420  $1,033  $2,647  $99  $12,199  $3,139  $294  $3,433  $171  $15,803  
March 31, 2019
Balance, beginning of period$6,876  $817  $1,656  $98  $9,447  $3,753  $244  $3,997  $570  $14,014  
Provision for loan losses103  150  159  —  412  189  (26) 163  (175) 400  
Charge-offs(25) —  (43) —  (68) (246) (20) (266) —  (334) 
Recoveries71  2  42  —  115  69  19  88  —  203  
Balance, end of period$7,025  $969  $1,814  $98  $9,906  $3,765  $217  $3,982  $395  $14,283  
Summary of Ending Loan Balances Individually Evaluated for Impairment Based on Loan Segment
The following table summarizes the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at March 31, 2020 and December 31, 2019. PCI loans are excluded from loans individually evaluated for impairment.
 CommercialConsumer  
Commercial
Real Estate		Acquisition
and
Development		Commercial
and
Industrial		MunicipalTotalResidential
Mortgage		Installment
and Other		TotalUnallocatedTotal
March 31, 2020
Loans allocated by:
Individually evaluated for impairment
$4,163  $837  $840  $—  $5,840  $2,917  $20  $2,937  $—  $8,777  
Collectively evaluated for impairment
768,926  61,548  234,951  46,551  1,111,976  500,561  35,634  536,195  —  1,648,171  
$773,089  $62,385  $235,791  $46,551  $1,117,816  $503,478  $35,654  $539,132  $—  $1,656,948  
ALL allocated by:
Individually evaluated for impairment
$—  $—  $—  $—  $—  $37  $—  $37  $—  $37  
Collectively evaluated for impairment
8,420  1,033  2,647  99  12,199  3,102  294  3,396  171  15,766  
$8,420  $1,033  $2,647  $99  $12,199  $3,139  $294  $3,433  $171  $15,803  
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  
ALL 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 PCI loans for the three months ended March 31, 2020 and 2019:
Three Months Ended
March 31, 2020March 31, 2019
Accretable yield, beginning of period$6,950  $2,065  
Additions (1)570  —  
Accretion of income(598) (171) 
Reclassifications from nonaccretable difference due to improvement in expected cash flows17  —  
Other changes, net (2)(2,525) —  
Accretable yield, end of period$4,414  $1,894  
(1) This amount reflects a measurement period adjustment during three months ended March 31, 2020 for Hamilton loans that should have been in the PCI pool at the acquisition date.
(2) This balance represents the impact of purchase credit impaired loans sold during the three months ended March 31, 2020.