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LOANS | 12 Months Ended
--- | ---
Dec. 31, 2020
LOANS |
LOANS | 4. LOANS The Company’s loan portfolio at the dates indicated is summarized below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, |  | December 31,
​ | ​ | 2020 | ​ | 2019
Commercial and industrial | ​ | $ | 309,961 | ​ | $ | 169,291
Construction and land | ​ |  | 22,696 | ​ |  | 36,321
Commercial real estate | ​ |  | 1,144,560 | ​ |  | 1,093,142
Residential | ​ |  | 164,724 | ​ |  | 156,764
Consumer | ​ |  | 5,218 | ​ |  | 2,562
Total loans | ​ |  | 1,647,159 | ​ |  | 1,458,080
Net deferred loan fees | ​ |  | (3,847) | ​ |  | (451)
Allowance for loan losses | ​ |  | (17,500) | ​ |  | (7,400)
Net loans | ​ | $ | 1,625,812 | ​ | $ | 1,450,229
​ During the year ended December 31, 2020, the Bank participated in the PPP, a guaranteed unsecured loan program enacted under the CARES Act to provide near-term relief to help small businesses impacted by COVID-19 sustain operations. PPP loans included in commercial and industrial business loans totaled $136.5 million, all of which are fully guaranteed by the SBA. The Bank expects that the great majority of PPP borrowers will seek full or partial forgiveness of their loan obligations in accordance with the CARES Act. For the years ended December 31, 2020 and 2019, impaired loans on nonaccrual were $8.4 million and $6.8 million, respectively. Interest foregone on nonaccrual loans was approximately $118,000 and $238,000 for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the Company had floating or variable rate loans totaling $936.7 million and $920.9 million, respectively. As of December 31, 2020, a total of $634.1 million have interest rate floors, of which $558.9 million are at their floors. As of December 31, 2019, a total of $578.6 million have interest rate floors, of which $406.1 million are at their floors. The Company’s total impaired loans, including nonaccrual loans, accruing TDR loans and accreting PCI loans that have experienced post-acquisition declines in cash flows expected to be collected are summarized as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Commercial |  | Construction |  | Commercial |  | ​ |  | ​ |  | ​
​ | ​ | and industrial | ​ | and land | ​ | real estate | ​ | Residential | ​ | Consumer | ​ | Total
December 31, 2020 | ​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Recorded investment in impaired loans: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
With no specific allowance recorded | ​ | $ | 120 | ​ | $ | 36 | ​ | $ | 5,689 | ​ | $ | 2,040 | ​ | $ | — | ​ | $ | 7,885
With a specific allowance recorded | ​ |  | 728 | ​ |  | — | ​ |  | 451 | ​ |  | 155 | ​ |  | — | ​ |  | 1,334
Total recorded investment in impaired loans | ​ | $ | 848 | ​ | $ | 36 | ​ | $ | 6,140 | ​ | $ | 2,195 | ​ | $ | — | ​ | $ | 9,219
Specific allowance on impaired loans | ​ |  | 420 | ​ |  | — | ​ |  | 77 | ​ |  | 24 | ​ |  | — | ​ |  | 521
December 31, 2019 | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Recorded investment in impaired loans: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
With no specific allowance recorded | ​ | $ | 436 | ​ | $ | 2,737 | ​ | $ | 2,505 | ​ | $ | 1,488 | ​ | $ | 1 | ​ | $ | 7,167
With a specific allowance recorded | ​ |  | 182 | ​ |  | — | ​ |  | 270 | ​ |  | — | ​ |  | 12 | ​ |  | 464
Total recorded investment in impaired loans | ​ | $ | 618 | ​ | $ | 2,737 | ​ | $ | 2,775 | ​ | $ | 1,488 | ​ | $ | 13 | ​ | $ | 7,631
Specific allowance on impaired loans | ​ |  | 95 | ​ |  | — | ​ |  | 64 | ​ |  | — | ​ |  | 12 | ​ |  | 171
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year ended December 31, 2020 | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Average recorded investment in impaired loans | ​ |  | $ 844 | ​ |  | $ 2,095 | ​ |  | $ 3,468 | ​ |  | $ 1,731 | ​ |  | $ 2 | ​ |  | $ 8,140
Interest recognized | ​ |  | 4 | ​ |  | 151 | ​ |  | 46 | ​ |  | — | ​ |  | — | ​ |  | 201
Year ended December 31, 2019 | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Average recorded investment in impaired loans | ​ |  | 1,893 | ​ |  | 1,369 | ​ |  | 2,131 | ​ |  | 593 | ​ |  | 3 | ​ |  | 5,989
Interest recognized | ​ |  | 34 | ​ |  | — | ​ |  | 33 | ​ |  | 6 | ​ |  | — | ​ |  | 73
​ In 2020 and 2019, the Company recorded no charge-offs related to restructured loans. As of December 31, 2020 and 2019, TDR loans had a related allowance of $35,000 and $171,000, respectively. There are no commitments to lend additional amounts to borrowers with outstanding loans that are classified as TDRs at December 31, 2020. As of December 31, 2020 and 2019, $798,000 and $789,000 of TDR loans were performing in accordance with their modified terms, respectively. A summary of TDRs by type of concession and type of loan as of the years ended: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Number of |  | Rate |  | Term |  | Rate & term |  | ​
​ | ​ | loans | ​ | modification | ​ | modification | ​ | modification | ​ | Total
Year ended December 31, 2020 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commercial and industrial |  | 2 | ​ | $ | — | ​ | $ | 31 | ​ | $ | — | ​ | $ | 31
Construction and land |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
Commercial real estate |  | 2 | ​ |  | — | ​ |  | 1,180 | ​ |  | — | ​ |  | 1,180
Residential |  | 1 | ​ |  | — | ​ |  | 155 | ​ |  | — | ​ |  | 155
Consumer |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
Total |  | 5 | ​ | $ | — | ​ | $ | 1,366 | ​ | $ | — | ​ | $ | 1,366
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Number of |  | Rate |  | Term |  | Rate & term |  | ​
​ | ​ | loans | ​ | modification | ​ | modification | ​ | modification | ​ | Total
Year ended December 31, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commercial and industrial |  | 3 | ​ | $ | — | ​ | $ | 447 | ​ | $ | — | ​ | $ | 447
Construction and land |  | 1 | ​ |  | — | ​ |  | 2,737 | ​ |  | — | ​ |  | 2,737
Commercial real estate |  | 2 | ​ |  | — | ​ |  | 444 | ​ |  | — | ​ |  | 444
Residential |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
Consumer |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | —
Total |  | 6 | ​ | $ | — | ​ | $ | 3,628 | ​ | $ | — | ​ | $ | 3,628
​ The following tables present information for loans by class, modified as TDRs, during the years indicated:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ |  | Pre-Modification |  | Post-Modification |
​ | ​ | Number of | ​ | Outstanding Recorded | ​ | Outstanding Recorded | ​
​ | ​ | loans | ​ | Investment | ​ | Investment | ​
Year ended December 31, 2020 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commercial and industrial |  | 1 | ​ | $ | 24 | ​ | $ | 24 | ​
Construction and land |  | — | ​ |  | — | ​ |  | — | ​
Commercial real estate |  | — | ​ |  | — | ​ |  | — | ​
Residential |  | 1 | ​ |  | 160 | ​ |  | 160 | ​
Consumer |  | — | ​ |  | — | ​ |  | — | ​
Total |  | 2 | ​ | $ | 184 | ​ | $ | 184 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Pre-Modification |  | Post-Modification |
​ | ​ | Number of | ​ | Outstanding Recorded | ​ | Outstanding Recorded | ​
​ | ​ | loans | ​ | Investment | ​ | Investment | ​
Year ended December 31, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Commercial and industrial |  | 3 | ​ | $ | 507 | ​ | $ | 507 | ​
Construction and land |  | 1 | ​ |  | 2,737 | ​ |  | 2,737 | ​
Commercial real estate |  | 2 | ​ |  | 444 | ​ |  | 444 | ​
Residential |  | — | ​ |  | — | ​ |  | — | ​
Consumer |  | — | ​ |  | — | ​ |  | — | ​
Total |  | 6 | ​ | $ | 3,688 | ​ | $ | 3,688 | ​
​ The following tables represent the internally assigned risk grade by class of loans at the years indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | Special |  | ​ | ​ |  | ​ | ​ |  | ​ | ​
​ | ​ | Pass | ​ | Mention | ​ | Substandard | ​ | Doubtful | ​ | Total
December 31, 2020 |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Commercial and industrial | ​ | $ | 295,245 | ​ | $ | 10,466 | ​ | $ | 4,250 | ​ | $ | — | ​ | $ | 309,961
Construction and land | ​ |  | 22,346 | ​ |  | 313 | ​ |  | 37 | ​ |  | — | ​ |  | 22,696
Commercial real estate | ​ |  | 1,112,085 | ​ |  | 26,329 | ​ |  | 6,146 | ​ |  | — | ​ |  | 1,144,560
Residential | ​ |  | 161,161 | ​ |  | 1,333 | ​ |  | 2,230 | ​ |  | — | ​ |  | 164,724
Consumer | ​ |  | 5,216 | ​ |  | — | ​ |  | 2 | ​ |  | — | ​ |  | 5,218
Total | ​ | $ | 1,596,053 | ​ | $ | 38,441 | ​ | $ | 12,665 | ​ | $ | — | ​ | $ | 1,647,159
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | Special |  | ​ | ​ |  | ​ | ​ |  | ​ | ​
​ | ​ | Pass | ​ | mention | ​ | Substandard | ​ | Doubtful | ​ | Total
December 31, 2019 |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Commercial and industrial | ​ | $ | 166,613 | ​ | $ | 1,166 | ​ | $ | 1,512 | ​ | $ | — | ​ | $ | 169,291
Construction and land | ​ |  | 32,879 | ​ |  | 93 | ​ |  | 3,349 | ​ |  | — | ​ |  | 36,321
Commercial real estate | ​ |  | 1,071,771 | ​ |  | 16,021 | ​ |  | 5,350 | ​ |  | — | ​ |  | 1,093,142
Residential | ​ |  | 153,484 | ​ |  | 1,215 | ​ |  | 2,065 | ​ |  | — | ​ |  | 156,764
Consumer | ​ |  | 2,541 | ​ |  | — | ​ |  | 21 | ​ |  | — | ​ |  | 2,562
Total | ​ | $ | 1,427,288 | ​ | $ | 18,495 | ​ | $ | 12,297 | ​ | $ | — | ​ | $ | 1,458,080
​ All loans modified due to COVID-19 are separately monitored and any request for continuation of relief beyond the initial modification will be reassessed at that time to determine if a further modification should be granted and if a downgrade in risk rating is appropriate. ​ The following table provides an aging of the Company’s loans receivable as of the years indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | Recorded
​ |  | ​ | ​ |  | ​ | ​ |  | 90 Days |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | investment >
​ | ​ | 30–59 Days | ​ | 60–89 Days | ​ | or more | ​ | Total | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Total loans | ​ | 90 days and
​ | ​ | past due | ​ | past due | ​ | past due | ​ | past due | ​ | Current | ​ | PCI loans | ​ | receivable | ​ | accruing
December 31, 2020 |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Commercial and industrial | ​ | $ | 265 | ​ | $ | 128 | ​ | $ | 707 | ​ | $ | 1,100 | ​ | $ | 308,239 | ​ | $ | 622 | ​ | $ | 309,961 | ​ | $ | —
Construction and land | ​ |  | 65 | ​ |  | — | ​ |  | 269 | ​ |  | 334 | ​ |  | 22,311 | ​ |  | 51 | ​ |  | 22,696 | ​ |  | 233
Commercial real estate | ​ |  | 254 | ​ |  | 406 | ​ |  | 1,518 | ​ |  | 2,178 | ​ |  | 1,129,966 | ​ |  | 12,416 | ​ |  | 1,144,560 | ​ |  | —
Residential | ​ |  | 80 | ​ |  | 155 | ​ |  | 1,412 | ​ |  | 1,647 | ​ |  | 160,556 | ​ |  | 2,521 | ​ |  | 164,724 | ​ |  | —
Consumer | ​ |  | 1 | ​ |  | — | ​ |  | — | ​ |  | 1 | ​ |  | 5,217 | ​ |  | — | ​ |  | 5,218 | ​ |  | —
Total | ​ | $ | 665 | ​ | $ | 689 | ​ | $ | 3,906 | ​ | $ | 5,260 | ​ | $ | 1,626,289 | ​ | $ | 15,610 | ​ | $ | 1,647,159 | ​ | $ | 233
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​ | ​ |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | Recorded
​ |  | ​ | ​ |  | ​ | ​ |  | 90 Days |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | investment >
​ | ​ | 30–59 Days | ​ | 60–89 Days | ​ | or more | ​ | Total | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Total loans | ​ | 90 days and
​ | ​ | past due | ​ | past due | ​ | past due | ​ | past due | ​ | Current | ​ | PCI loans | ​ | receivable | ​ | accruing
December 31, 2019 |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Commercial and industrial | ​ | $ | 923 | ​ | $ | 1,480 | ​ | $ | 207 | ​ | $ | 2,610 | ​ | $ | 166,137 | ​ | $ | 544 | ​ | $ | 169,291 | ​ | $ | 26
Construction and land | ​ |  | 325 | ​ |  | 88 | ​ |  | 2,961 | ​ |  | 3,374 | ​ |  | 32,724 | ​ |  | 223 | ​ |  | 36,321 | ​ |  | 224
Commercial real estate | ​ |  | 4,668 | ​ |  | 4,698 | ​ |  | 1,460 | ​ |  | 10,826 | ​ |  | 1,068,211 | ​ |  | 14,105 | ​ |  | 1,093,142 | ​ |  | —
Residential | ​ |  | 531 | ​ |  | 122 | ​ |  | 1,392 | ​ |  | 2,045 | ​ |  | 152,261 | ​ |  | 2,458 | ​ |  | 156,764 | ​ |  | —
Consumer | ​ |  | 14 | ​ |  | — | ​ |  | 13 | ​ |  | 27 | ​ |  | 2,533 | ​ |  | 2 | ​ |  | 2,562 | ​ |  | —
Total | ​ | $ | 6,461 | ​ | $ | 6,388 | ​ | $ | 6,033 | ​ | $ | 18,882 | ​ | $ | 1,421,866 | ​ | $ | 17,332 | ​ | $ | 1,458,080 | ​ | $ | 250
​ PCI Loans The unpaid principal balance and carrying value of the Company’s PCI loans at the years indicated are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2020 | ​ | December 31, 2019
​ |  | Unpaid |  | ​ | ​ |  | Unpaid |  | ​ | ​
​ | ​ | principal | ​ | Carrying | ​ | principal | ​ | Carrying
​ | ​ | balance | ​ | value | ​ | balance | ​ | value
Commercial and industrial | ​ | $ | 1,000 | ​ | $ | 622 | ​ | $ | 1,225 | ​ | $ | 544
Construction and land | ​ |  | 100 | ​ |  | 51 | ​ |  | 338 | ​ |  | 223
Commercial real estate | ​ |  | 14,096 | ​ |  | 12,416 | ​ |  | 15,930 | ​ |  | 14,105
Residential | ​ |  | 3,127 | ​ |  | 2,521 | ​ |  | 3,238 | ​ |  | 2,458
Consumer | ​ |  | — | ​ |  | — | ​ |  | 8 | ​ |  | 2
Total | ​ | $ | 18,323 | ​ | $ | 15,610 | ​ | $ | 20,739 | ​ | $ | 17,332
​ In connection with the Company's acquisitions, the contractual amount and timing of undiscounted principal and interest payments and the estimated amount and timing of undiscounted expected principal and interest payments were used to estimate the fair value of PCI loans at the acquisition date. The difference between these two amounts represented the nonaccretable difference. On the acquisition date, the amount by which the undiscounted expected cash flows exceed the estimated fair value of the acquired loans is the “accretable yield”. The accretable yield is then measured at each financial reporting date and represented the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans. For PCI loans the accretable yield is accreted into interest income over the life of the estimated remaining cash flows. At each financial reporting date, the carrying value of each PCI loan is compared to an updated estimate of expected principal payment or recovery on each loan. To the extent that the loan carrying amount exceeds the updated expected principal payment or recovery, a provision of loan loss would be recorded as a charge to income and an allowance for loan loss established. At December 31, 2020, the accretable and nonaccretable differences were approximately $383,000 and $2.3 million, respectively. At December 31, 2019, the accretable and nonaccretable differences were approximately $554,000 and $2.9 million, respectively. The Company increased the allowance for loan losses for PCI loans by $107,000 during the year ended December 31, 2020, compared to no increase during the year ended December 31, 2019. The following table reflects the changes in the accretable yield of PCI loans for the years indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, |  | December 31,
​ | ​ | 2020 | ​ | 2019
Balance at beginning of period | ​ | $ | 554 | ​ | $ | 256
Additions | ​ |  | 291 | ​ |  | 492
Removals | ​ |  | (51) | ​ |  | 632
Transfers from nonaccretable yield | ​ | ​ | — | ​ | ​ | 94
Accretion | ​ |  | (411) | ​ |  | (920)
Balance at end of period | ​ | $ | 383 | ​ | $ | 554
​

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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