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Loans and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Schedule of Loans by Class
The following table presents the amortized cost of loans by class as of December 31, 2020 and 2019.
December 31,
(in thousands)20202019
Commercial and industrial$498,408 $246,687 
Real estate:
  Commercial owner-occupied304,963 308,824 
  Commercial investor-owned961,208 946,317 
  Construction73,046 61,095 
  Home equity104,813 116,024 
  Other residential123,395 136,657 
Installment and other consumer loans22,723 27,682 
Total loans, at amortized cost 1
2,088,556 1,843,286 
Allowance for credit losses on loans(22,874)(16,677)
Total loans, net$2,065,682 $1,826,609 
1 Amortized cost includes net deferred loan origination (fees) costs of $(4.9) million and $983 thousand at December 31, 2020 and 2019, respectively. Amounts are also net of unrecognized purchase discounts of $815 thousand and $958 thousand at December 31, 2020 and 2019, respectively. Amortized cost excludes accrued interest, which totaled $8.8 million and $7.7 million at December 31, 2020 and 2019, respectively, and is included in interest receivable and other assets in the consolidated statements of condition.
Schedule of Financing Receivable Credit Quality Indicators The following table presents the loan portfolio by loan class, origination year and internal risk rating as of December 31, 2020. Generally, existing term loans that were re-underwritten are reflected in the table in the year of renewal. Lines of credit that have a conversion feature at the time of origination, such as construction to perm loans, are presented by year of origination.
Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized Cost
(in thousands)20202019201820172016PriorTotal
Commercial and industrial:
Pass$308,237 $22,589 $12,596 $4,508 $5,915 $34,282 $85,889 $474,016 
Special Mention— 2,034 1,318 141 11 49 19,092 22,645 
Substandard1,747 — — — — — — 1,747 
Total commercial and industrial$309,984 $24,623 $13,914 $4,649 $5,926 $34,331 $104,981 $498,408 
Commercial real estate, owner-occupied:
Pass$31,029 $27,581 $32,603 $43,843 $12,768 $101,014 $— $248,838 
Special Mention— — 11,764 17,062 7,343 6,601 — 42,770 
Substandard7,147 — — — 6,208 — — 13,355 
Total commercial real estate, owner-occupied$38,176 $27,581 $44,367 $60,905 $26,319 $107,615 $— $304,963 
Commercial real estate, investor-owned:
Pass$162,300 $144,751 $173,955 $100,842 $94,862 $253,611 $117 $930,438 
Special Mention— 10,695 — 1,819 — 8,124 — 20,638 
Substandard— 2,716 4,435 — 1,553 1,428 — 10,132 
Total commercial real estate, investor-owned$162,300 $158,162 $178,390 $102,661 $96,415 $263,163 $117 $961,208 
Construction:
Pass$31,654 $30,150 $11,242 $— $— $— $— $73,046 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Total construction$31,654 $30,150 $11,242 $— $— $— $— $73,046 
Home equity:
Pass$— $— $— $— $128 $694 $102,614 $103,436 
Special Mention— — — — — — 799 799 
Substandard— — — — — 391 187 578 
Total home equity$— $— $— $— $128 $1,085 $103,600 $104,813 
Other residential:
Pass$34,447 $31,079 $23,673 $10,574 $6,035 $17,587 $— $123,395 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Total other residential$34,447 $31,079 $23,673 $10,574 $6,035 $17,587 $— $123,395 
Installment and other consumer:
Pass$2,361 $4,382 $3,483 $1,543 $3,423 $4,921 $2,593 $22,706 
Special Mention— — — — — — — — 
Substandard— — — 17 — — — 17 
Total installment and other consumer$2,361 $4,382 $3,483 $1,560 $3,423 $4,921 $2,593 $22,723 
Total loans:
Pass$570,028 $260,532 $257,552 $161,310 $123,131 $412,109 $191,213 $1,975,875 
Total Special Mention$— $12,729 $13,082 $19,022 $7,354 $14,774 $19,891 $86,852 
Total Substandard$8,894 $2,716 $4,435 $17 $7,761 $1,819 $187 $25,829 
Totals$578,922 $275,977 $275,069 $180,349 $138,246 $428,702 $211,291 $2,088,556 

The following table summarizes the amortized cost of loans by internally assigned risk grades and loan class at December 31, 2019.
(in thousands)Commercial and industrialCommercial real estate, owner-occupiedCommercial real estate, investor-ownedConstructionHome equityOther residentialInstallment and other consumerTotal
December 31, 2019       
Pass$209,213 $264,766 $945,757 $61,095 $114,935 $136,657 $27,538 $1,759,961 
Special Mention37,065 35,016 560 — 750 — — 73,391 
Substandard409 9,042 — — 339 — 144 9,934 
Total loans$246,687 $308,824 $946,317 $61,095 $116,024 $136,657 $27,682 $1,843,286 
Schedule of Past Due Financing Receivables
The following table shows the amortized cost of loans by class, payment aging and non-accrual status as of December 31, 2020 and 2019.
Loan Aging Analysis by Class
(in thousands)Commercial and industrialCommercial real estate, owner-occupiedCommercial real estate, investor-ownedConstructionHome equityOther residentialInstallment and other consumerTotal
December 31, 2020        
30-59 days past due$— $— $1,673 $— $274 $— $136 $2,083 
60-89 days past due— — — — — — 622 622 
90 days or more past due— — — — — — — — 
Total past due— — 1,673 — 274 — 758 2,705 
Current498,408 304,963 959,535 73,046 104,539 123,395 21,965 2,085,851 
Total loans 1
$498,408 $304,963 $961,208 $73,046 $104,813 $123,395 $22,723 $2,088,556 
Non-accrual loans 2
$— $7,147 $1,610 $— $459 $— $17 $9,233 
Non-accrual loans with no allowance$— $7,147 $1,610 $— $459 $— $17 $9,233 
December 31, 2019        
30-59 days past due$1 $— $1,001 $— $279 $— $7 $1,288 
60-89 days past due— — — — 98 — 95 193 
90 days or more past due— — — — 167 — — 167 
Total past due1 — 1,001 — 544 — 102 1,648 
Current246,686 308,824 945,316 61,095 115,480 136,657 27,580 1,841,638 
Total loans 1
$246,687 $308,824 $946,317 $61,095 $116,024 $136,657 $27,682 $1,843,286 
Non-accrual loans 2
$— $— $— $— $168 $— $58 $226 
Non-accrual loans with no allowance$— $— $— $— $168 $— $58 $226 
1 There were no loans past due more than ninety days accruing interest at December 31, 2020 or 2019.
2 None of the non-accrual loans as of December 31, 2020 or 2019 were earning interest on a cash basis. We recognized no interest income on non-accrual loans for the years ended December 31, 2020, 2019 or 2018. Accrued interest of $36 thousand was reversed from interest income for loans that were placed on non-accrual status during the year ended December 31, 2020.
Schedule of Collateral Dependent Loans
The following table presents the amortized cost basis of individually analyzed collateral-dependent non-accrual loans by class at December 31, 2020.
Amortized Cost by Collateral Type
(in thousands)Commercial Real EstateResidential Real EstateOtherTotalAllowance for Credit Losses
Commercial real estate, owner-occupied$7,147 $— $— $7,147 $— 
Commercial real estate, investor-owned1,610 — — 1,610 — 
Home equity— 459 — 459 — 
Installment and other consumer— — 17 17 — 
Total$8,757 $459 $17 $9,233 $— 
Schedule of Troubled Debt Restructurings on Financing Receivables
The following table summarizes the amortized cost of TDR loans by loan class as of December 31, 2020 and 2019.
December 31,
(in thousands)20202019
Commercial and industrial$1,021 $1,223 
Commercial real estate, owner-occupied7,147 6,998 
Commercial real estate, investor-owned3,305 1,770 
Home equity281 251 
Other residential— 452 
Installment and other consumer752 639 
Total 1
$12,506 $11,333 
1 TDR loans on non-accrual status totaled $7.4 million at December 31, 2020 and $58 thousand at December 31, 2019. Unfunded commitments for TDR loans totaled $704 thousand as of December 31, 2020.
The following table presents information for loans modified in a TDR during the presented periods, including the number of modified contracts, the amortized cost of the loans prior to modification, and the amortized cost of the loans at period end after being restructured. The table excludes fully charged-off TDR loans and loans modified in a TDR and subsequently paid-off during the years presented, if applicable.
(dollars in thousands)Number of Contracts ModifiedPre-Modification Amortized CostPost-Modification Amortized CostPost-Modification Amortized Cost at Period End
TDRs modified during 2020:
   
Commercial and industrial1 $170 $162 $96 
Commercial real estate, investor-owned1 1,553 1,553 1,553 
Home equity1 276 276 271 
Installment and other consumer2 204 204 201 
Total5 $2,203 $2,195 $2,121 
TDRs modified during 2019:
   
Commercial and industrial1 $298 $298 $150 
TDRs modified during 2018:
Commercial and industrial2 $254 $245 $172 
Schedule of Allowance for Credit Losses on Financing Receivables
The following tables disclose activity in the allowance for credit losses.
Allowance for Credit Losses Rollforward
(in thousands)Commercial and industrialCommercial real estate, owner-occupiedCommercial real estate, investor-ownedConstructionHome equityOther residentialInstallment and other consumerUnallocatedTotal
Year ended December 31, 2020
Beginning balance$2,334 $2,462 $8,483 $638 $850 $973 $284 $653 $16,677 
Provision - incurred loss method208 673 3,141 219 188 287 122 612 5,450 
(Charge-offs)(30)— — — — — — — (30)
Recoveries13 — — 3 — — — — 16 
Balance at September 30, 20202,525 3,135 11,624 860 1,038 1,260 406 1,265 22,113 
Impact of CECL adoption(278)138 1,755 201 (361)(212)(125)486 1,604 
Post adoption balance at October 1, 20202,247 3,273 13,379 1,061 677 1,048 281 1,751 23,717 
Provision (reversal) - CECL method269 (495)(697)496 61 (50)11 (451)(856)
(Charge-offs)— — — — — — (1)— (1)
Recoveries14 — — — — — — — 14 
Ending balance$2,530 $2,778 $12,682 $1,557 $738 $998 $291 $1,300 $22,874 
Year ended December 31, 2019
Beginning balance$2,436 $2,407 $7,703 $756 $915 $800 $310 $494 $15,821 
Provision (reversal) - incurred loss method(49)55 768 (118)(65)173 (23)159 900 
(Charge-offs)(75)— — — — — (3)— (78)
Recoveries22 — 12 — — — — — 34 
Ending balance$2,334 $2,462 $8,483 $638 $850 $973 $284 $653 $16,677 
Year ended December 31, 2018
Beginning balance$3,654 $2,294 $6,475 $681 $1,031 $536 $378 $718 $15,767 
Provision (reversal) - incurred loss method(1,232)113 1,228 75 (116)264 (108)(224)— 
(Charge-offs)(3)— — — — — (2)— (5)
Recoveries17 — — — — — 42 — 59 
Ending balance$2,436 $2,407 $7,703 $756 $915 $800 $310 $494 $15,821 
Schedule of Related Party Transactions
The following table shows changes in net loans to related parties for each of the three years ended December 31, 2020, 2019 and 2018.
(in thousands)202020192018
Balance at beginning of year$8,333 $10,635 $11,852 
Additions— — 863 
Repayments(1,910)(2,320)(2,080)
Reclassified due to a change in borrower status— 18 — 
Balance at end of year$6,423 $8,333 $10,635