The following table presents total loans outstanding, by portfolio segment, as of December 31, 2020 and 2019:

(1)	Includes PPP loans of $268.4 million at December 31, 2020.

Total loans include net deferred loan fees and costs of $4.7 million and $1.0 million at December 31, 2020 and 2019, respectively.

Management monitors the credit quality of its loan portfolio on an ongoing basis. Measurement of delinquency and past due status are based on the contractual terms of each loan. Past due loans are reviewed regularly to identify loans for nonaccrual status.

The following tables present past due aging analysis of total loans outstanding, by portfolio segment, as of December 31, 2020 and 2019, respectively:


	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


	December 31, 2019
					90 Days
	Accruing		30 - 89 Days		or More				Total
(dollars in thousands)	Current		Past Due		Past Due		Nonaccrual		Loans
Commercial
Commercial and industrial	$	473,900	$	382	$	—	$	4,862	$	479,144
Real estate construction		26,251		127		—		—		26,378
Commercial real estate		492,707		556		—		1,440		494,703
Total commercial		992,858		1,065		—		6,302		1,000,225
Consumer
Residential real estate first mortgage		455,244		666		448		797		457,155
Residential real estate junior lien		176,915		184		—		274		177,373
Other revolving and installment		86,172		348		—		6		86,526
Total consumer		718,331		1,198		448		1,077		721,054
Total loans	$	1,711,189	$	2,263	$	448	$	7,379	$	1,721,279

Interest income foregone on nonaccrual loans approximated $0.5 million, $0.4 million, and $0.3 million for the years ended December 31, 2020, 2019, and 2018, respectively.

The Company’s consumer loan portfolio is primarily comprised of both secured and unsecured loans that are relatively small and are evaluated at origination on a centralized basis against standardized underwriting criteria. The Company generally does not risk rate consumer loans unless a default event such as bankruptcy or extended nonperformance takes place. Credit quality for the consumer loan portfolio is measured by delinquency rates, nonaccrual amounts, and actual losses incurred.

The Company assigns a risk rating to all commercial loans, except pools of homogeneous loans, and periodically performs detailed internal and external reviews of risk rated loans over a certain threshold to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to examination by the Company’s regulators. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate, and the estimated fair values of collateral securing the loans. These credit quality indicators are used to assign a risk rating to each individual loan.

The Company’s ratings are aligned to pass and criticized categories. The criticized category includes special mention, substandard, and doubtful risk ratings. The risk ratings are defined as follows:

Pass: A pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention.

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, this potential weakness may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Substandard: Loans classified as substandard are not adequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. Well-defined weaknesses include a borrower’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time, or the failure to fulfill economic expectations. 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 repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss: Loans classified as loss are considered uncollectible and charged off immediately.

The tables below present total loans outstanding, by portfolio segment and risk category, as of December 31, 2020 and 2019:


	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


	December 31, 2019
			Criticized
			Special
(dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
Commercial
Commercial and industrial	$	448,306	$	9,585	$	21,253	$	—	$	479,144
Real estate construction		25,119		282		977		—		26,378
Commercial real estate		462,294		2,359		30,050		—		494,703
Total commercial		935,719		12,226		52,280		—		1,000,225
Consumer
Residential real estate first mortgage		456,358		—		797		—		457,155
Residential real estate junior lien		176,122		—		1,251		—		177,373
Other revolving and installment		86,520		—		6		—		86,526
Total consumer		719,000		—		2,054		—		721,054
Total loans	$	1,654,719	$	12,226	$	54,334	$	—	$	1,721,279

The adequacy of the allowance for loan losses is assessed at the end of each quarter. The allowance for loan losses includes a specific component related to loans that are individually evaluated for impairment and a general component related to loans that are segregated into homogeneous pool and collectively evaluated for impairment. The factors applied to these pools are an estimate of probable incurred losses based on management’s evaluation of historical

net losses from loans with similar characteristics, which are adjusted by management to reflect current events, trends, and conditions. The adjustments include consideration of the following: changes in lending policies and procedures, economic conditions, nature and volume of the portfolio, experience of lending management, volume and severity of past due loans, quality of the loan review system, value of underlying collateral for collateral dependent loans, concentrations, and other external factors.

The following tables present, by loan portfolio segment, a summary of the changes in the allowance for loan losses for the three years ending December 31, 2020, 2019, and 2018:


	Year ended December 31, 2020
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	12,270	$	(2,168)	$	(4,249)	$	4,352	$	10,205
Real estate construction		303		355		—		—		658
Commercial real estate		6,688		8,185		(865)		97		14,105
Total commercial		19,261		6,372		(5,114)		4,449		24,968
Consumer
Residential real estate first mortgage		1,448		4,321		—		5		5,774
Residential real estate junior lien		671		507		(12)		207		1,373
Other revolving and installment		352		514		(242)		129		753
Total consumer		2,471		5,342		(254)		341		7,900
Unallocated		2,192		(814)		—		—		1,378
Total	$	23,924	$	10,900	$	(5,368)	$	4,790	$	34,246


	Year ended December 31, 2019
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	12,127	$	5,213	$	(6,540)	$	1,470	$	12,270
Real estate construction		250		51		(1)		3		303
Commercial real estate		6,279		259		—		150		6,688
Total commercial		18,656		5,523		(6,541)		1,623		19,261
Consumer
Residential real estate first mortgage		1,156		292		—		—		1,448
Residential real estate junior lien		805		99		(465)		232		671
Other revolving and installment		380		383		(572)		161		352
Total consumer		2,341		774		(1,037)		393		2,471
Unallocated		1,177		1,015		—		—		2,192
Total	$	22,174	$	7,312	$	(7,578)	$	2,016	$	23,924


	Year ended December 31, 2018
	Beginning		Provision for		Loan		Loan		Ending
(dollars in thousands)	Balance		Loan Losses		Charge-offs		Recoveries		Balance
Commercial
Commercial and industrial	$	7,589	$	6,911	$	(3,123)	$	750	$	12,127
Real estate construction		343		(35)		(60)		2		250
Commercial real estate		4,909		1,889		(600)		81		6,279
Total commercial		12,841		8,765		(3,783)		833		18,656
Consumer
Residential real estate first mortgage		1,411		(226)		(29)		—		1,156
Residential real estate junior lien		902		(171)		(133)		207		805
Other revolving and installment		499		(24)		(308)		213		380
Total consumer		2,812		(421)		(470)		420		2,341
Unallocated		911		266		—		—		1,177
Total	$	16,564	$	8,610	$	(4,253)	$	1,253	$	22,174

The following tables present the recorded investment in loans and related allowance for the loan losses, by portfolio segment, disaggregated on the basis of the Company’s impairment methodology, as of December 31, 2020 and 2019:


	December 31, 2020
	Recorded Investment						Allowance for Loan Losses
	Individually		Collectively				Individually		Collectively
(dollars in thousands)	Evaluated		Evaluated		Total		Evaluated		Evaluated		Unallocated		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
Total loans	$	8,530	$	1,970,845	$	1,979,375	$	1,205	$	31,663	$	1,378	$	34,246


	December 31, 2019
	Recorded Investment						Allowance for Loan Losses
	Individually		Collectively				Individually		Collectively
(dollars in thousands)	Evaluated		Evaluated		Total		Evaluated		Evaluated		Unallocated		Total
Commercial
Commercial and industrial	$	976	$	478,168	$	479,144	$	189	$	12,081	$	—	$	12,270
Real estate construction		—		26,378		26,378		—		303		—		303
Commercial real estate		5,925		488,778		494,703		2,946		3,742		—		6,688
Total commercial		6,901		993,324		1,000,225		3,135		16,126		—		19,261
Consumer
Residential real estate first mortgage		782		456,373		457,155		—		1,448		—		1,448
Residential real estate junior lien		266		177,107		177,373		—		671		—		671
Other revolving and installment		5		86,521		86,526		3		349		—		352
Total consumer		1,053		720,001		721,054		3		2,468		—		2,471
Total loans	$	7,954	$	1,713,325	$	1,721,279	$	3,138	$	18,594	$	2,192	$	23,924

The tables below summarize key information on impaired loans. These impaired loans may have estimated losses which are included in the allowance for loan losses.


	December 31, 2020						December 31, 2019
	Recorded		Unpaid		Related		Recorded		Unpaid		Related
(dollars in thousands)	Investment		Principal		Allowance		Investment		Principal		Allowance
Impaired loans with a valuation allowance
Commercial and industrial	$	723	$	725	$	336	$	639	$	727	$	189
Commercial real estate		3,948		3,974		837		5,718		5,823		2,946
Residential real estate junior lien		19		20		19		—		—		—
Other revolving and installment		27		27		13		5		6		3
Total impaired loans with a valuation allowance		4,717		4,746		1,205		6,362		6,556		3,138
Impaired loans without a valuation allowance
Commercial and industrial		1,893		2,173		—		337		1,110		—
Commercial real estate		1,276		1,415		—		207		236		—
Residential real estate first mortgage		439		464		—		782		797		—
Residential real estate junior lien		205		306		—		266		372		—
Other revolving and installment		—		—		—		—		—		—
Total impaired loans without a valuation allowance		3,813		4,358		—		1,592		2,515		—
Total impaired loans
Commercial and industrial		2,616		2,898		336		976		1,837		189
Commercial real estate		5,224		5,389		837		5,925		6,059		2,946
Residential real estate first mortgage		439		464		—		782		797		—
Residential real estate junior lien		224		326		19		266		372		—
Other revolving and installment		27		27		13		5		6		3
Total impaired loans	$	8,530	$	9,104	$	1,205	$	7,954	$	9,071	$	3,138

The table below presents the average recorded investment in impaired loans and interest income for the three years ending December 31, 2020, 2019, and 2018:


	Year Ended December 31,
	2020				2019				2018
	Average				Average				Average
	Recorded		Interest		Recorded		Interest		Recorded		Interest
(dollars in thousands)	Investment		Income		Investment		Income		Investment		Income
Impaired loans with a valuation allowance
Commercial and industrial	$	765	$	14	$	839	$	16	$	3,163	$	—
Commercial real estate		3,972		138		5,891		—		1,558		—
Residential real estate junior lien		19		—		—		—		4		—
Other revolving and installment		28		—		20		—		28		—
Total impaired loans with a valuation allowance		4,784		152		6,750		16		4,753		—
Impaired loans without a valuation allowance
Commercial and industrial		4,151		25		2,434		30		1,595		35
Real estate construction		—		—		—		—		—		—
Commercial real estate		1,614		—		212		8		223		9
Residential real estate first mortgage		461		—		230		—		533		—
Residential real estate junior lien		234		3		338		4		718		6
Other revolving and installment		—		—		3		—		3		—
Total impaired loans without a valuation allowance		6,460		28		3,217		42		3,072		50
Total impaired loans
Commercial and industrial		4,916		39		3,273		46		4,758		35
Real estate construction		—		—		—		—		—		—
Commercial real estate		5,586		138		6,103		8		1,781		9
Residential real estate first mortgage		461		—		230		—		533		—
Residential real estate junior lien		253		3		338		4		722		6
Other revolving and installment		28		—		23		—		31		—
Total impaired loans	$	11,244	$	180	$	9,967	$	58	$	7,825	$	50

Loans with a carrying value of $1.2 billion and $1.2 billion were pledged at December 31, 2020 and 2019, respectively, to secure FHLB borrowings, public deposits, and for other purposes required or permitted by law.

Under certain circumstances, the Company will provide borrowers relief through loan restructurings. A restructuring of debt constitutes a troubled debt restructuring, or TDR, if the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. TDR concessions can include reduction of interest rates, extension of maturity dates, forgiveness of principal or interest due, or acceptance of other assets in full or partial satisfaction of the debt.

During the fourth quarter of 2020, there was one loan modified as a TDR as a result of changing the terms allowing for interest only payments and smaller extensions. As of December 31, 2020, the carrying value of the restructured loan was $2.6 million. This loan is currently performing in compliance with the modified terms and there was no specific reserve for loan losses allocated to the loan modified as a TDR.

As of December 31, 2020, the Company had entered into modifications on 577 loans representing $153.6 million in total principal balances, since the beginning of the COVID-19 pandemic. Of those loans, 18 loans with a total outstanding principal balance of $8.4 million, have been granted second deferrals, 21 loans with a total outstanding principal balance of $3.7 million remain on the first deferral and the remaining loans have been returned to a normal payment status. These deferrals were generally no more than 90 days in duration and were not considered TDRs in accordance with the Interagency Statement on Loan Modifications and Reporting for Financial Institutions as issued on April 7, 2020.

During the first quarter of 2019, there was one loan modified as a TDR as a result of extending the amortization period. As of December 31, 2019, the carrying value of the restructured loan was $0.2 million. The loan is currently performing according to the modified terms and there was a $24 thousand specific reserve for loan losses allocated to the loan modified as a TDR.

The Company does not have material commitments to lend additional funds to borrowers with loans whose terms have been modified in TDRs or whose loans are on nonaccrual.