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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2020 and December 31, 2019:
June 30, 2020December 31, 2019
Commercial real estate:
Owner occupied$164,442  $170,884  
Non-owner occupied390,980  361,050  
Multi-family111,016  106,893  
Non-owner occupied residential116,531  120,038  
Acquisition and development:
1-4 family residential construction7,966  15,865  
Commercial and land development50,220  41,538  
Commercial and industrial (1)
665,312  214,554  
Municipal34,276  47,057  
Residential mortgage:
First lien295,736  336,372  
Home equity - term11,944  14,030  
Home equity - lines of credit160,842  165,314  
Installment and other loans32,052  50,735  
Total loans $2,041,317  $1,644,330  

(1) This balance includes $447.2 million and $0 of SBA PPP loans, net of deferred fees and costs, at June 30, 2020 and December 31, 2019, respectively.
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 June 30, 2020 and December 31, 2019:
PassSpecial MentionNon-Impaired SubstandardImpaired - SubstandardDoubtfulPCI LoansTotal
June 30, 2020
Commercial real estate:
Owner occupied$144,332  $7,223  $4,666  $3,371  $—  $4,850  $164,442  
Non-owner occupied345,176  45,468  —  —  —  336  390,980  
Multi-family95,478  14,796  662  80  —  —  111,016  
Non-owner occupied residential108,985  4,404  1,357  283  —  1,502  116,531  
Acquisition and development:
1-4 family residential construction7,844  122  —  —  —  —  7,966  
Commercial and land development38,947  9,895  541  837  —  —  50,220  
Commercial and industrial636,604  15,372  9,222  708  —  3,406  665,312  
Municipal30,025  4,251  —  —  —  —  34,276  
Residential mortgage:
First lien287,633  —  —  2,461  —  5,642  295,736  
Home equity - term11,841  —  72  11  —  20  11,944  
Home equity - lines of credit160,036  175  35  596  —  —  160,842  
Installment and other loans31,950  —  —  17  —  85  32,052  
$1,898,851  $101,706  $16,555  $8,364  $—  $15,841  $2,041,317  
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 June 30, 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)
June 30, 2020
Commercial real estate:
Owner-occupied$—  $—  $—  $3,371  $4,124  
Non-owner occupied—  —  —  —  313  
Multi-family—  —  —  80  —  
Non-owner occupied residential—  —  —  283  399  
Acquisition and development:
Commercial and land development—  —  —  837  875  
Commercial and industrial—  —  —  708  1,858  
Residential mortgage:
First lien688  688  35  1,773  3,083  
Home equity—term—  —  —  11  14  
Home equity—lines of credit—  —  —  596  830  
Installment and other loans—  —  —  17  28  
$688  $688  $35  $7,676  $11,524  
December 31, 2019
Commercial real estate:
Owner-occupied$—  $—  $—  $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 accruing PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the three and six months ended June 30, 2020 and 2019:
20202019
Average
Impaired
Balance		Interest
Income
Recognized		Average
Impaired
Balance		Interest
Income
Recognized
Three Months Ended June 30,
Commercial real estate:
Owner-occupied$4,639  $—  $1,770  $1  
Non-owner occupied169  —  —  —  
Multi-family270  —  118  —  
Non-owner occupied residential521  —  282  —  
Acquisition and development:
Commercial and land development837  —  —  —  
Commercial and industrial1,320  —  260  —  
Residential mortgage:
First lien3,177  12  2,512  14  
Home equity – term12  —  13  —  
Home equity - lines of credit704  1  709  1  
Installment and other loans18  —  9  —  
$11,667  $13  $5,673  $16  
Six Months Ended June 30,
Commercial real estate:
Owner occupied$5,143  $1  $1,819  $1  
Non-owner occupied96  —  —  —  
Multi-family301  —  122  —  
Non-owner occupied residential396  —  291  —  
Acquisition and development:
Commercial and land development478  —  —  —  
Commercial and industrial1,384  —  269  —  
Residential mortgage:
First lien2,874  24  2,652  29  
Home equity - term12  —  14  —  
Home equity - lines of credit715  1  736  1  
Installment and other loans34  —  8  —  
$11,433  $26  $5,911  $31  
Troubled Debt Restructurings
The following table presents impaired loans that are TDRs, with the recorded investment at June 30, 2020 and December 31, 2019:

June 30, 2020December 31, 2019
Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Accruing:
Commercial real estate:
Owner occupied1  $28  1  $30  
Residential mortgage:
First lien9  916  9  931  
Home equity - lines of credit1  16  1  18  
11  960  11  979  
Nonaccruing:
Commercial real estate:
Owner occupied1  215  4  1,909  
Residential mortgage:
First lien5  337  5  359  
6  552  9  2,268  
17  $1,512  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 June 30, 2020 and December 31, 2019:
Days Past Due
Current30-5960-8990+
(still accruing)		Total
Past Due		Non-
Accrual		Total
Loans
June 30, 2020
Commercial real estate:
Owner occupied$155,868  $113  $268  $—  $381  $3,343  $159,592  
Non-owner occupied390,644  —  —  —  —  —  390,644  
Multi-family110,936  —  —  —  —  80  111,016  
Non-owner occupied residential114,303  106  286  51  443  283  115,029  
Acquisition and development:
1-4 family residential construction7,966  —  —  —  —  —  7,966  
Commercial and land development49,356  27  —  —  27  837  50,220  
Commercial and industrial661,099  99  —  —  99  708  661,906  
Municipal34,276  —  —  —  —  —  34,276  
Residential mortgage:
First lien284,370  2,038  1,877  264  4,179  1,545  290,094  
Home equity - term11,826  87  —  —  87  11  11,924  
Home equity - lines of credit159,724  273  265  —  538  580  160,842  
Installment and other loans31,889  42  13  6  61  17  31,967  
Subtotal2,012,257  2,785  2,709  321  5,815  7,404  2,025,476  
Loans acquired with credit deterioration:
Commercial real estate:
Owner occupied4,850  —  —  —  —  —  4,850  
Non-owner occupied336  —  —  —  —  —  336  
Non-owner occupied residential1,270  —  66  166  232  —  1,502  
Commercial and industrial3,382  —  —  24  24  —  3,406  
Residential mortgage:
First lien3,922  1,304  18  398  1,720  —  5,642  
Home equity - term20  —  —  —  —  —  20  
Installment and other loans66  1  18  —  19  —  85  
Subtotal13,846  1,305  102  588  1,995  —  15,841  
$2,026,103  $4,090  $2,811  $909  $7,810  $7,404  $2,041,317  
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  
Summary of Ending Loan Balances Individually Evaluated for Impairment Based on Loan Segment
The following table presents the activity in the ALL for the three and six months ended June 30, 2020 and 2019:
CommercialConsumer
Commercial
Real Estate		Acquisition
and
Development		Commercial
and
Industrial		MunicipalTotalResidential
Mortgage		Installment
and Other		TotalUnallocatedTotal
Three Months Ended
June 30, 2020
Balance, beginning of period$8,420  $1,033  $2,647  $99  $12,199  $3,139  $294  $3,433  $171  $15,803  
Provision for loan losses877  31  590  (24) 1,474  323  102  425  1  1,900  
Charge-offs—  —  (421) —  (421) (18) (14) (32) —  (453) 
Recoveries50  5  100  —  155  108  4  112  —  267  
Balance, end of period$9,347  $1,069  $2,916  $75  $13,407  $3,552  $386  $3,938  $172  $17,517  
June 30, 2019
Balance, beginning of period$7,025  $969  $1,814  $98  $9,906  $3,765  $217  $3,982  $395  $14,283  
Provision for loan losses(221) 39  325  (4) 139  (32) 40  8  53  200  
Charge-offs—  —  (47) —  (47) (25) (51) (76) —  (123) 
Recoveries43  —  28  —  71  26  3  29  —  100  
Balance, end of period$6,847  $1,008  $2,120  $94  $10,069  $3,734  $209  $3,943  $448  $14,460  
Six Months Ended
June 30, 2020
Balance, beginning of period$7,634  $959  $2,356  $100  $11,049  $3,147  $319  $3,466  $140  $14,655  
Provision for loan losses1,260  102  912  (25) 2,249  400  144  544  32  2,825  
Charge-offs—  —  (496) —  (496) (109) (86) (195) —  (691) 
Recoveries453  8  144  —  605  114  9  123  —  728  
Balance, end of period$9,347  $1,069  $2,916  $75  $13,407  $3,552  $386  $3,938  $172  $17,517  
June 30, 2019
Balance, beginning of period$6,876  $817  $1,656  $98  $9,447  $3,753  $244  $3,997  $570  $14,014  
Provision for loan losses(118) 189  484  (4) 551  157  14  171  (122) 600  
Charge-offs(25) —  (90) —  (115) (271) (71) (342) —  (457) 
Recoveries114  2  70  —  186  95  22  117  —  303  
Balance, end of period$6,847  $1,008  $2,120  $94  $10,069  $3,734  $209  $3,943  $448  $14,460  
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 June 30, 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
June 30, 2020
Loans allocated by:
Individually evaluated for impairment
$3,734  $837  $708  $—  $5,279  $3,068  $17  $3,085  $—  $8,364  
Collectively evaluated for impairment
779,235  57,349  664,604  34,276  1,535,464  465,454  32,035  497,489  —  2,032,953  
$782,969  $58,186  $665,312  $34,276  $1,540,743  $468,522  $32,052  $500,574  $—  $2,041,317  
ALL allocated by:
Individually evaluated for impairment
$—  $—  $—  $—  $—  $35  $—  $35  $—  $35  
Collectively evaluated for impairment
9,347  1,069  2,916  75  13,407  3,517  386  3,903  172  17,482  
$9,347  $1,069  $2,916  $75  $13,407  $3,552  $386  $3,938  $172  $17,517  
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 and six months ended June 30, 2020 and 2019:
Three Months EndedSix Months Ended
June 30, 2020June 30, 2019June 30, 2020June 30, 2019
Accretable yield, beginning of period$4,414  $1,894  $6,950  $2,065  
Additions (1)
—  3,497  570  3,497  
Accretion of income(1,315) (1,221) (1,913) (1,392) 
Reclassifications from nonaccretable difference due to improvement in expected cash flows1,104  617  1,121  617  
Other changes, net (2)
(21) 201  (2,546) 201  
Accretable yield, end of period$4,182  $4,988  $4,182  $4,988  
(1) This amount reflects a measurement period adjustment during the six months ended June 30, 2020 for Hamilton loans that should have been in the PCI pool at the acquisition date.
(2) This balance represents the impact of purchased credit impaired loans sold during the six months ended June 30, 2020.