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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Components of Loans in Consolidated Balance Sheet
The components of loans in the Consolidated Balance Sheet at December 31, were as follows:
(Dollars in thousands)20212020
Commercial and non-residential real estate$1,480,527 $1,141,114 
Residential306,140 240,264 
Home equity22,186 30,828 
Consumer43,919 3,156 
PCI loans:
Commercial and non-residential real estate13,904 21,008 
Residential4,358 16,943 
Consumer413 1,488 
Total loans1,871,447 1,454,801 
Deferred loan origination costs and (fees), net(1,609)(1,057)
Loans receivable$1,869,838 $1,453,744 
Primary Segments of the Loan Portfolio The following table summarizes the primary segments of the loan portfolio, excluding PCI loans, as of December 31, 2021 and 2020:
(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
December 31, 2021
     Individually evaluated for impairment$13,800 $8,179 $217 $259 $22,455 
     Collectively evaluated for impairment1,466,727 297,961 21,969 43,660 1,830,317 
Total loans$1,480,527 $306,140 $22,186 $43,919 $1,852,772 
December 31, 2020
     Individually evaluated for impairment$13,334 $1,960 $95 $5 $15,394 
     Collectively evaluated for impairment1,127,780 238,304 30,733 3,151 1,399,968 
Total loans$1,141,114 $240,264 $30,828 $3,156 $1,415,362 
Impaired Loans by Class
The following table presents impaired loans by class, excluding PCI loans, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2021 and 2020:
 Impaired Loans with Specific AllowanceImpaired Loans with No Specific AllowanceTotal Impaired Loans
(Dollars in thousands)Recorded InvestmentRelated AllowanceRecorded InvestmentRecorded InvestmentUnpaid Principal Balance
December 31, 2021
Commercial:
Commercial business$2,401 $232 $8,796 $11,197 $13,010 
Commercial real estate668 243 543 1,211 1,329 
Acquisition and development— — 1,392 1,392 2,807 
          Total commercial3,069 475 10,731 13,800 17,146 
Residential— — 8,179 8,179 8,219 
Home equity— — 217 217 221 
Consumer— — 259 259 259 
          Total impaired loans$3,069 $475 $19,386 $22,455 $25,845 
December 31, 2020
Commercial:
Commercial business$3,431 $1,032 $5,653 $9,084 $10,440 
Commercial real estate772 264 944 1,716 1,864 
Acquisition and development— — 2,534 2,534 3,939 
          Total commercial4,203 1,296 9,131 13,334 16,243 
Residential— — 1,960 1,960 2,232 
Home equity— — 95 95 95 
Consumer— — 5 5 5 
          Total impaired loans$4,203 $1,296 $11,191 $15,394 $18,575 
The carrying amount of the PCI loan portfolio is as follows:
(Dollars in thousands)As of December 31, 2021As of December 31, 2020
Commercial$13,904 $21,008 
Residential4,358 16,943 
Consumer413 1,488 
Outstanding balance$18,675 $39,439 
Carrying amount, net of allowance$18,012 $39,355 
Average Recorded Investment in Impaired Loans and Related Interest Income Recognized
The following table presents the average recorded investment in impaired loans, excluding PCI loans, and related interest income recognized for the years ended:
December 31, 2021December 31, 2020December 31, 2019
(Dollars in thousands)Average Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash BasisAverage Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash BasisAverage Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash Basis
Commercial:
Commercial business$7,701 $— $— $6,066 $— $— $3,202 $— $— 
Commercial real estate2,051 60 43 3,057 97 104 3,220 162 140 
Acquisition and development344 — — 1,207 67 73 2,151 123 131 
    Total commercial10,096 60 43 10,330 164 177 8,573 285 271 
Residential5,992 15 14 2,541 19 19 2,719 16 16 
Home equity81 — — 87 — — 154 2 2 
Consumer41 — — 7 — — 45 — — 
Total$16,210 $75 $57 $12,965 $183 $196 $11,491 $303 $289 
Classes of the Loan Portfolio Summarized by the Aggregate Pass and the Criticized Categories
The following table represents the classes of the loan portfolio, excluding PCI loans, summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of December 31, 2021 and 2020:
(Dollars in thousands)PassSpecial MentionSubstandardDoubtfulTotal
December 31, 2021
Commercial:
Commercial business$657,733 $11,964 $17,581 $28 $687,306 
Commercial real estate520,446 12,065 29,134 73 561,718 
Acquisition and development89,768 4,960 4,031 1,064 99,823 
     SBA PPP131,680 — — — 131,680 
          Total commercial1,399,627 28,989 50,746 1,165 1,480,527 
Residential294,933 899 9,815 493 306,140 
Home equity21,582 387 191 26 22,186 
Consumer43,645 15 259 — 43,919 
          Total Loans$1,759,787 $30,290 $61,011 $1,684 $1,852,772 
December 31, 2020
Commercial:
Commercial business$496,222 $9,529 $17,045 $1,095 $523,891 
Commercial real estate356,544 32,044 34,001 533 423,122 
Acquisition and development80,771 25,001 4,184 2,170 112,126 
SBA PPP81,975 — — — 81,975 
          Total commercial1,015,512 66,574 55,230 3,798 1,141,114 
Residential236,250 948 2,896 170 240,264 
Home equity30,277 381 144 26 30,828 
Consumer3,124 32 — — 3,156 
          Total Loans$1,285,163 $67,935 $58,270 $3,994 $1,415,362 
The following tables represent the classes of the PCI loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of December 31, 2021 and December 31, 2020, respectively:
(Dollars in thousands)PassSpecial MentionSubstandardDoubtfulTotal
December 31, 2021
Commercial:
Commercial Business$2,257 $159 $207 $6 $2,629 
Commercial Real Estate7,499 1,571 1,948 — 11,018 
Acquisition & Development178 79 — — 257 
Total Commercial9,934 1,809 2,155 6 13,904 
Residential3,406 — 952 — 4,358 
Consumer36 — 377 — 413 
Total Loans$13,376 $1,809 $3,484 $6 $18,675 

(Dollars in thousands)PassSpecial MentionSubstandardDoubtfulTotal
December 31, 2020
Commercial:
Commercial Business$12,263 $136 $345 $4,860 $17,604 
Commercial Real Estate982 3 263 21 1,269 
Acquisition & Development1,900 — — 235 2,135 
Total Commercial15,145 139 608 5,116 21,008 
Residential15,157 — 1,665 121 16,943 
Consumer1,256 — — 232 1,488 
Total Loans$31,558 $139 $2,273 $5,469 $39,439 
Classes of the Loan Portfolio Summarized by Aging Categories
The following table presents the classes of the loan portfolio, excluding PCI loans, summarized by aging categories of performing loans and nonaccrual loans as of December 31, 2021 and 2020:
(Dollars in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past DueTotal Past DueTotal LoansNon-Accrual90+ Days Still Accruing
December 31, 2021
Commercial:
Commercial business$684,086 $1,718 $11 $1,491 $3,220 $687,306 $8,261 $— 
Commercial real estate561,519 126 — 73 199 561,718 192 — 
Acquisition and development98,524 67 412 820 1,299 99,823 1,392 — 
     SBA PPP131,680 — — — — 131,680 — — 
          Total commercial1,475,809 1,911 423 2,384 4,718 1,480,527 9,845 — 
Residential300,988 3,343 285 1,524 5,152 306,140 7,636 — 
Home equity21,974 — 119 93 212 22,186 217 — 
Consumer41,991 1,211 461 256 1,928 43,919 259 — 
          Total Loans$1,840,762 $6,465 $1,288 $4,257 $12,010 $1,852,772 $17,957 $— 
December 31, 2020
Commercial:
Commercial business$521,799 $1,040 $33 $1,019 $2,092 $523,891 $8,601 $— 
Commercial real estate422,343 34 212 533 779 423,122 944 — 
Acquisition and development109,686 — — 2,440 2,440 112,126 2,534 — 
SBA PPP81,975 — — — — 81,975 — — 
          Total commercial1,135,803 1,074 245 3,992 5,311 1,141,114 12,079 — 
Residential235,420 2,058 1,969 817 4,844 240,264 1,534 — 
Home equity30,369 289 75 95 459 30,828 95 — 
Consumer3,156 — — — — 3,156 5 — 
          Total Loans$1,404,748 $3,421 $2,289 $4,904 $10,614 $1,415,362 $13,713 $— 
The following tables present the classes of the PCI loan portfolio summarized by aging categories of performing loans and non-
accrual loans as of December 31, 2021 and December 31, 2020, respectively:
(Dollars in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past DueTotal Past DueTotal LoansNon-Accrual
December 31, 2021
Commercial:
Commercial Business$2,416 $— $— $213 $213 $2,629 $— 
Commercial Real Estate7,680 649 — 2689 3338 11,018 — 
Acquisition & Development243 — — 14 14 257 — 
Total Commercial10,339 649 — 2,916 3,565 13,904 — 
Residential3,081 325 — 952 1,277 4,358 — 
Consumer36 — — 377 377 413 — 
Total Loans$13,456 $974 $— $4,245 $5,219 $18,675 $— 

(Dollars in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past DueTotal Past DueTotal LoansNon-Accrual
December 31, 2020
Commercial:
Commercial Business$16,264 $71 $65 $1,204 $1,340 $17,604 $— 
Commercial Real Estate1,157 — — 112 112 1,269 — 
Acquisition & Development2,135 — — — — 2,135 — 
Total Commercial19,556 71 65 1,316 1,452 21,008 — 
Residential13,714 710 145 2,374 3,229 16,943 — 
Consumer1,245 3 1 239 243 1,488 — 
Total Loans$34,515 $784 $211 $3,929 $4,924 $39,439 $— 
Allowance Activity
The following tables summarize the activity of primary segments of the ALL, excluding the ALL related to PCI loans, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment for the years ending December 31, 2021, 2020 and 2019:

(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
ALL balance at December 31, 2020$24,033 $1,378 $298 $51 $25,760 
     Charge-offs(1,367)(2)— (247)(1,616)
     Recoveries231 — 24 61 316 
     Provision (release)(8,797)(428)(194)2,562 (6,857)
ALL balance at December 31, 2021$14,100 $948 $128 $2,427 $17,603 
Individually evaluated for impairment$475 $— $— $— $475 
Collectively evaluated for impairment$13,625 $948 $128 $2,427 $17,128 
(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
ALL balance at December 31, 2019$10,098 $1,272 $327 $78 $11,775 
     Charge-offs(1,932)(224)(23)— (2,179)
     Recoveries22 — 9 3 34 
     Provision (release)15,845 684 (15)(30)16,484 
Allowance contributed with mortgage combination transaction— (354)— — (354)
ALL balance at December 31, 2020$24,033 $1,378 $298 $51 $25,760 
Individually evaluated for impairment$1,296 $— $— $— $1,296 
Collectively evaluated for impairment$22,737 $1,378 $298 $51 $24,464 
(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
ALL balance at December 31, 2018$8,605 $1,405 $684 $245 $10,939 
     Charge-offs(998)— — (10)(1,008)
     Recoveries1 1 4 49 55 
     Provision (release)2,490 (134)(361)(206)1,789 
ALL balance at December 31, 2019$10,098 $1,272 $327 $78 $11,775 
Individually evaluated for impairment$574 $— $— $— $574 
Collectively evaluated for impairment$9,524 $1,272 $327 $78 $11,201 
The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of December 31, 2021 and December 31, 2020, respectively, for the PCI loan portfolio:
(Dollars in thousands)ResidentialConsumerTotal
ALL balance as of December 31, 2020$84 $— $84 
Charge-offs(3)— (3)
Provision463 119 582 
ALL balance at December 31, 2021$544 $119 $663 
Collectively evaluated for impairment$544 $119 663 

(Dollars in thousands)ResidentialConsumerTotal
ALL balance as of December 31, 2019$— $— $— 
Charge-offs(11)— (11)
Provision95 — 95 
ALL balance at December 31, 2020$84 $— $84 
Collectively evaluated for impairment$84 $— $84 
Loans Identified as Troubled Debt Restructuring
The following table presents details related to loans identified as TDRs during the years ended December 31, 2021 and 2020:
New TDRs 1
December 31, 2021December 31, 2020
(Dollars in thousands)Number of ContractsPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentNumber of ContractsPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Commercial:
Commercial business2 $5,200 $4,836 6 $6,294 $5,326 
Commercial real estate— — — 2 159 150 
          Total commercial2 5,200 4,836 8 6,453 5,476 
Residential— — — 1 87 86 
          Total2 $5,200 $4,836 9 $6,540 $5,562 
1 The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan.
Financing Receivable, Accretiable Yield
Accretable yield, or income expected to be collected, is as follows:
(Dollars in thousands)As of December 31, 2021As of December 31, 2020
Beginning balance$8,313 $— 
New loans purchased— 11,746 
Accretion of income(3,947)(2,945)
Reclassification from non-accretable difference2,139 (488)
Ending balance$6,505 $8,313 
Summary of Loans Acquired
PCI loans purchased during 2020, for which it was probable at acquisition that all contractually required payments would not be collected are as follows:
(Dollars in thousands)As of December 31, 2020
Contractually required payments receivable of loans purchased during the period:
Commercial$36,046 
Residential47,787 
Consumer2,990 
Cash flows expected to be collected at acquisition$86,823 
Fair value of loans acquired at acquisition$50,235