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Loans and Related Allowance for Loan Losses | 6 Months Ended
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Jun. 30, 2020
Loans and Related Allowance for Loan Losses [Abstract] |
Loans and Related Allowance for Loan Losses | Note 6 – Loans and Related Allowance for Loan Losses The following table summarizes the primary segments of the loan portfolio at June 30, 2020 and December 31, 2019:
(in thousands) |  | Commercial ‎Real Estate |  | Acquisition ‎and ‎Development |  | Commercial ‎and ‎Industrial |  | Residential ‎Mortgage |  | Consumer |  | Total
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 3,429 |  | $ | 8,934 |  | $ | 18 |  | $ | 2,908 |  | $ | 34 |  | $ | 15,323
Collectively evaluated for impairment |  | $ | 336,885 |  | $ | 117,404 |  | $ | 272,168 |  | $ | 409,570 |  | $ | 35,590 |  | $ | 1,171,617
Total loans |  | $ | 340,314 |  | $ | 126,338 |  | $ | 272,186 |  | $ | 412,478 |  | $ | 35,624 |  | $ | 1,186,940
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 3,179 |  | $ | 8,570 |  | $ | 30 |  | $ | 3,391 |  | $ | 4 |  | $ | 15,174
Collectively evaluated for impairment |  | $ | 332,325 |  | $ | 109,320 |  | $ | 122,322 |  | $ | 435,033 |  | $ | 36,195 |  | $ | 1,035,195
Total loans |  | $ | 335,504 |  | $ | 117,890 |  | $ | 122,352 |  | $ | 438,424 |  | $ | 36,199 |  | $ | 1,050,369
The increase in the commercial and industrial portfolio in the table above includes $144.4 million of PPP loans which are 100% guaranteed by the SBA and no allowance for loan loss (“ALL”) has been assigned to them. The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention and Substandard within the internal risk rating system at June 30, 2020 and December 31, 2019:
(in thousands) |  | Pass |  | Special ‎Mention |  | Substandard |  | Total
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |
Non owner-occupied |  | $ | 166,113 |  | $ | 2,729 |  | $ | 1,795 |  | $ | 170,637
All other CRE |  |  | 160,551 |  |  | 3,390 |  |  | 5,736 |  |  | 169,677
Acquisition and development |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential construction |  |  | 19,618 |  |  | — |  |  | — |  |  | 19,618
All other A&D |  |  | 98,178 |  |  | 18 |  |  | 8,524 |  |  | 106,720
Commercial and industrial |  |  | 257,472 |  |  | 1,867 |  |  | 12,847 |  |  | 272,186
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage - term |  |  | 340,392 |  |  | 154 |  |  | 7,296 |  |  | 347,842
Residential mortgage - home equity |  |  | 63,657 |  |  | 136 |  |  | 843 |  |  | 64,636
Consumer |  |  | 35,472 |  |  | 3 |  |  | 149 |  |  | 35,624
Total |  | $ | 1,141,453 |  | $ | 8,297 |  | $ | 37,190 |  | $ | 1,186,940
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |
Non owner-occupied |  | $ | 164,584 |  | $ | 2,765 |  | $ | 1,864 |  | $ | 169,213
All other CRE |  |  | 157,407 |  |  | 6,556 |  |  | 2,328 |  |  | 166,291
Acquisition and development |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential construction |  |  | 10,781 |  |  | — |  |  | — |  |  | 10,781
All other A&D |  |  | 98,823 |  |  | 18 |  |  | 8,268 |  |  | 107,109
Commercial and industrial |  |  | 116,221 |  |  | 2,896 |  |  | 3,235 |  |  | 122,352
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage - term |  |  | 364,150 |  |  | 59 |  |  | 5,597 |  |  | 369,806
Residential mortgage - home equity |  |  | 67,143 |  |  | 139 |  |  | 1,336 |  |  | 68,618
Consumer |  |  | 36,047 |  |  | 4 |  |  | 148 |  |  | 36,199
Total |  | $ | 1,015,156 |  | $ | 12,437 |  | $ | 22,776 |  | $ | 1,050,369
The increase of $14.4 million in the substandard category from December 31, 2019 to June 30, 2020 was primarily due to two large relationships in the “All other CRE” and “Commercial and Industrial” categories. These loans are current and well collateralized and are not considered impaired. They were classified as substandard due to a reduction in cash flows and a slight deterioration in the borrower’s balance sheet. The increase in the residential mortgage term is related to one large credit in this amount of $1.5 million. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at June 30, 2020 and December 31, 2019:
(in thousands) |  | Current |  | 30-59 Days ‎Past Due |  | 60-89 Days ‎Past Due |  | 90 Days+ ‎Past Due |  | Total Past ‎Due and ‎Accruing |  | Non- ‎Accrual |  | Total Loans
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non owner-occupied |  | $ | 170,620 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 17 |  | $ | 170,637
All other CRE |  |  | 168,721 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 956 |  |  | 169,677
Acquisition and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential construction |  |  | 19,618 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 19,618
All other A&D |  |  | 98,270 |  |  | — |  |  | 11 |  |  | — |  |  | 11 |  |  | 8,439 |  |  | 106,720
Commercial and industrial |  |  | 272,118 |  |  | — |  |  | 50 |  |  | — |  |  | 50 |  |  | 18 |  |  | 272,186
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage - term |  |  | 345,117 |  |  | 5 |  |  | 1,236 |  |  | 294 |  |  | 1,535 |  |  | 1,190 |  |  | 347,842
Residential mortgage - home equity |  |  | 63,939 |  |  | 245 |  |  | 25 |  |  | — |  |  | 270 |  |  | 427 |  |  | 64,636
Consumer |  |  | 35,450 |  |  | 92 |  |  | 45 |  |  | 3 |  |  | 140 |  |  | 34 |  |  | 35,624
Total |  | $ | 1,173,853 |  | $ | 342 |  | $ | 1,367 |  | $ | 297 |  | $ | 2,006 |  | $ | 11,081 |  | $ | 1,186,940
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non owner-occupied |  | $ | 169,180 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 33 |  | $ | 169,213
All other CRE |  |  | 165,289 |  |  | — |  |  | 355 |  |  | — |  |  | 355 |  |  | 647 |  |  | 166,291
Acquisition and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential construction |  |  | 10,781 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 10,781
All other A&D |  |  | 98,916 |  |  | — |  |  | — |  |  | 135 |  |  | 135 |  |  | 8,058 |  |  | 107,109
Commercial and industrial |  |  | 122,050 |  |  | 272 |  |  | — |  |  | — |  |  | 272 |  |  | 30 |  |  | 122,352
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage - term |  |  | 366,882 |  |  | 267 |  |  | 967 |  |  | 471 |  |  | 1,705 |  |  | 1,219 |  |  | 369,806
Residential mortgage - home equity |  |  | 67,121 |  |  | 288 |  |  | 286 |  |  | 65 |  |  | 639 |  |  | 858 |  |  | 68,618
Consumer |  |  | 35,834 |  |  | 261 |  |  | 46 |  |  | 54 |  |  | 361 |  |  | 4 |  |  | 36,199
Total |  | $ | 1,036,053 |  | $ | 1,088 |  | $ | 1,654 |  | $ | 725 |  | $ | 3,467 |  | $ | 10,849 |  | $ | 1,050,369
The current status of commercial and industrial loans at June 30, 2020 includes $144.4 million of PPP loans. Non-accrual loans totaled $11.1 million at June 30, 2020, compared to $10.8 million at December 31, 2019. The increase in non-accrual balances at June 30, 2020 was primarily related to one new commercial real estate (“CRE”) loan of $0.2 million. Management continues to monitor the $8.2 million acquisition and development participation loan that was added to non-accrual loans in the first quarter of 2019. This loan is serviced by another lender and is now in the foreclosure process and progress has been delayed due to COVID-19. The anticipated foreclosure date has been tentatively set for September 2020. Management believes that the specific allocation for this loan of $2.3 million at June 30, 2020 is adequate based upon an appraisal obtained in the second quarter of 2019. Discussions are currently underway for the sale of a parcel of acreage within the development. Obtaining a new appraisal is planned to be concurrent with the transfer of the collateral to Other Real Estate Owned (“OREO”). Non-accrual loans that have been subject to partial charge-offs totaled $0.2 million at June 30, 2020 and at December 31, 2019. Loans secured by 1-4 family residential real estate properties in the process of foreclosure were $0.2 million and $0.1 million at June 30, 2020 and December 31, 2019, respectively. All foreclosure and repossession activity has been temporarily suspended by the State as a result of COVID-19. As a percentage of the loan portfolio, accruing loans past due 30 days or more decreased to 0.17%, including PPP loans, or 0.19% excluding PPP compared to 0.46% at June 30, 2019. The following table summarizes the primary segments of the ALL at June 30, 2020 and December 31, 2019, segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment:
(in thousands) |  | Commercial ‎Real Estate |  | Acquisition ‎and ‎Development |  | Commercial ‎and ‎Industrial |  | Residential ‎Mortgage |  | Consumer |  | Unallocated |  | Total
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated ‎for impairment |  | $ | 6 |  | $ | 2,321 |  | $ | 1 |  | $ | 29 |  | $ | 2 |  | $ | — |  | $ | 2,359
Collectively evaluated ‎for impairment |  | $ | 4,521 |  | $ | 2,177 |  | $ | 1,996 |  | $ | 5,077 |  | $ | 384 |  | $ | 500 |  | $ | 14,655
Total ALL |  | $ | 4,527 |  | $ | 4,498 |  | $ | 1,997 |  | $ | 5,106 |  | $ | 386 |  | $ | 500 |  | $ | 17,014
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated ‎for impairment |  | $ | 9 |  | $ | 2,142 |  | $ | — |  | $ | 22 |  | $ | — |  | $ | — |  | $ | 2,173
Collectively evaluated ‎for impairment |  | $ | 2,873 |  | $ | 1,532 |  | $ | 1,341 |  | $ | 3,806 |  | $ | 312 |  | $ | 500 |  | $ | 10,364
Total ALL |  | $ | 2,882 |  | $ | 3,674 |  | $ | 1,341 |  | $ | 3,828 |  | $ | 312 |  | $ | 500 |  | $ | 12,537
The evaluation of the need and amount of a specific allocation of the ALL and whether a loan can be removed from impairment status is made on a quarterly basis. The following table presents impaired loans by 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:
|  | Impaired Loans with ‎Specific Allowance |  | Impaired ‎Loans with ‎No Specific ‎Allowance |  | Total Impaired Loans
(in thousands) |  | Recorded ‎Investment |  | Related ‎Allowances |  | Recorded ‎Investment |  | Recorded ‎Investment |  | Unpaid ‎Principal ‎Balance
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non owner-occupied |  | $ | 114 |  | $ | 6 |  | $ | 17 |  | $ | 131 |  | $ | 8,140
All other CRE |  |  | — |  |  | — |  |  | 3,298 |  |  | 3,298 |  |  | 3,298
Acquisition and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential construction |  |  | — |  |  | — |  |  | 279 |  |  | 279 |  |  | 279
All other A&D |  |  | 8,455 |  |  | 2,321 |  |  | 200 |  |  | 8,655 |  |  | 8,739
Commercial and industrial |  |  | 18 |  |  | 1 |  |  | — |  |  | 18 |  |  | 2,246
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage – term |  |  | 846 |  |  | 29 |  |  | 1,592 |  |  | 2,438 |  |  | 2,614
Residential mortgage – home equity |  |  | — |  |  | — |  |  | 470 |  |  | 470 |  |  | 484
Consumer |  |  | 33 |  |  | 2 |  |  | 1 |  |  | 34 |  |  | 59
Total impaired loans |  | $ | 9,466 |  | $ | 2,359 |  | $ | 5,857 |  | $ | 15,323 |  | $ | 25,859
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non owner-occupied |  | $ | 116 |  | $ | 9 |  | $ | 33 |  | $ | 149 |  | $ | 8,224
All other CRE |  |  | — |  |  | — |  |  | 3,030 |  |  | 3,030 |  |  | 3,030
Acquisition and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential construction |  |  | — |  |  | — |  |  | 291 |  |  | 291 |  |  | 291
All other A&D |  |  | 8,219 |  |  | 2,142 |  |  | 60 |  |  | 8,279 |  |  | 8,340
Commercial and industrial |  |  | — |  |  | — |  |  | 30 |  |  | 30 |  |  | 2,266
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage – term |  |  | 865 |  |  | 22 |  |  | 1,668 |  |  | 2,533 |  |  | 2,724
Residential mortgage – home equity |  |  | — |  |  | — |  |  | 858 |  |  | 858 |  |  | 986
Consumer |  |  | — |  |  | — |  |  | 4 |  |  | 4 |  |  | 4
Total impaired loans |  | $ | 9,200 |  | $ | 2,173 |  | $ | 5,974 |  | $ | 15,174 |  | $ | 25,865
The following tables present the activity in the ALL for the six and three month periods ended June 30, 2020 and 2019:
(in thousands) |  | Commercial ‎Real Estate |  | Acquisition ‎and ‎Development |  | Commercial ‎and ‎Industrial |  | Residential ‎Mortgage |  | Consumer |  | Unallocated |  | Total
ALL balance at January 1, 2020 |  | $ | 2,882 |  | $ | 3,674 |  | $ | 1,341 |  | $ | 3,828 |  | $ | 312 |  | $ | 500 |  | $ | 12,537
Charge-offs |  |  | — |  |  | (31) |  |  | (232) |  |  | (98) |  |  | (223) |  |  | — |  |  | (584)
Recoveries |  |  | 66 |  |  | 22 |  |  | 16 |  |  | 48 |  |  | 88 |  |  | — |  |  | 240
Provision |  |  | 1,579 |  |  | 833 |  |  | 872 |  |  | 1,328 |  |  | 209 |  |  | — |  |  | 4,821
ALL balance at June 30, 2020 |  | $ | 4,527 |  | $ | 4,498 |  | $ | 1,997 |  | $ | 5,106 |  | $ | 386 |  | $ | 500 |  | $ | 17,014
ALL balance at January 1, 2019 |  | $ | 2,780 |  | $ | 1,721 |  | $ | 1,187 |  | $ | 4,544 |  | $ | 315 |  | $ | 500 |  | $ | 11,047
Charge-offs |  |  | — |  |  | (29) |  |  | (5) |  |  | (86) |  |  | (136) |  |  | — |  |  | (256)
Recoveries |  |  | 30 |  |  | 111 |  |  | 76 |  |  | 195 |  |  | 91 |  |  | — |  |  | 503
Provision |  |  | (75) |  |  | 1,491 |  |  | (111) |  |  | (672) |  |  | 49 |  |  | — |  |  | 682
ALL balance at June 30, 2019 |  | $ | 2,735 |  | $ | 3,294 |  | $ | 1,147 |  | $ | 3,981 |  | $ | 319 |  | $ | 500 |  | $ | 11,976
(in thousands) |  | Commercial ‎Real Estate |  | Acquisition ‎and ‎Development |  | Commercial ‎and ‎Industrial |  | Residential ‎Mortgage |  | Consumer |  | Unallocated |  | Total
ALL balance at April 1, 2020 |  | $ | 3,816 |  | $ | 4,063 |  | $ | 1,682 |  | $ | 4,586 |  | $ | 365 |  | $ | 500 |  | $ | 15,012
Charge-offs |  |  | — |  |  | (16) |  |  | (131) |  |  | — |  |  | (91) |  |  | — |  |  | (238)
Recoveries |  |  | — |  |  | 8 |  |  | 1 |  |  | 22 |  |  | 42 |  |  | — |  |  | 73
Provision |  |  | 711 |  |  | 443 |  |  | 445 |  |  | 498 |  |  | 70 |  |  | — |  |  | 2,167
ALL balance at June 30, 2020 |  | $ | 4,527 |  | $ | 4,498 |  | $ | 1,997 |  | $ | 5,106 |  | $ | 386 |  | $ | 500 |  | $ | 17,014
ALL balance at April 1, 2019 |  | $ | 2,775 |  | $ | 2,338 |  | $ | 1,125 |  | $ | 4,497 |  | $ | 313 |  | $ | 500 |  | $ | 11,548
Charge-offs |  |  | — |  |  | — |  |  | (5) |  |  | (74) |  |  | (68) |  |  | — |  |  | (147)
Recoveries |  |  | 1 |  |  | 99 |  |  | 25 |  |  | 87 |  |  | 30 |  |  | — |  |  | 242
Provision |  |  | (41) |  |  | 857 |  |  | 2 |  |  | (529) |  |  | 44 |  |  | — |  |  | 333
ALL balance at June 30, 2019 |  | $ | 2,735 |  | $ | 3,294 |  | $ | 1,147 |  | $ | 3,981 |  | $ | 319 |  | $ | 500 |  | $ | 11,976
The ALL is based on estimates, and actual losses may vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. ‎ The following table presents the average recorded investment in impaired loans by class and related interest income recognized for the periods indicated:
|  | Six months ended |  | Six months ended
|  | June 30, 2020 |  | June 30, 2019
(in thousands) |  | Average ‎investment |  | Interest income ‎recognized on ‎an accrual basis |  | Interest income ‎recognized on ‎a cash basis |  | Average ‎investment |  | Interest income ‎recognized on ‎an accrual basis |  | Interest income ‎recognized on ‎a cash basis
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non owner-occupied |  | $ | 138 |  | $ | 3 |  | $ | — |  | $ | 270 |  | $ | 6 |  | $ | —
All other CRE |  |  | 3,182 |  |  | 73 |  |  | — |  |  | 4,853 |  |  | 76 |  |  | —
Acquisition and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential construction |  |  | 285 |  |  | 6 |  |  | — |  |  | 310 |  |  | 9 |  |  | —
All other A&D |  |  | 8,436 |  |  | 6 |  |  | 1 |  |  | 5,306 |  |  | 6 |  |  | —
Commercial and industrial |  |  | 16 |  |  | — |  |  | — |  |  | 24 |  |  | — |  |  | —
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage – term |  |  | 2,477 |  |  | 43 |  |  | — |  |  | 3,261 |  |  | 53 |  |  | 10
Residential mortgage – home equity |  |  | 709 |  |  | — |  |  | 3 |  |  | 854 |  |  | — |  |  | 2
Consumer |  |  | 14 |  |  | — |  |  | — |  |  | 14 |  |  | — |  |  | —
Total |  | $ | 15,257 |  | $ | 131 |  | $ | 4 |  | $ | 14,892 |  | $ | 150 |  | $ | 12
|  | Three months ended |  | Three months ended
|  | June 30, 2020 |  | June 30, 2019
(in thousands) |  | Average ‎investment |  | Interest income ‎recognized on ‎an accrual basis |  | Interest income ‎recognized on ‎a cash basis |  | Average ‎investment |  | Interest income ‎recognized on ‎an accrual basis |  | Interest income ‎recognized on ‎a cash basis
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non owner-occupied |  | $ | 132 |  | $ | 1 |  | $ | — |  | $ | 258 |  | $ | 3 |  | $ | —
All other CRE |  |  | 3,258 |  |  | 36 |  |  | — |  |  | 4,807 |  |  | 38 |  |  | —
Acquisition and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential construction |  |  | 282 |  |  | 3 |  |  | — |  |  | 307 |  |  | 4 |  |  | —
All other A&D |  |  | 8,515 |  |  | 3 |  |  | — |  |  | 7,772 |  |  | 3 |  |  | —
Commercial and industrial |  |  | 9 |  |  | — |  |  | — |  |  | 27 |  |  | — |  |  | —
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage – term |  |  | 2,450 |  |  | 21 |  |  | — |  |  | 2,941 |  |  | 25 |  |  | 2
Residential mortgage – home equity |  |  | 634 |  |  | — |  |  | 3 |  |  | 925 |  |  | — |  |  | 2
Consumer |  |  | 19 |  |  | — |  |  | — |  |  | 16 |  |  | — |  |  | —
Total |  | $ | 15,299 |  | $ | 64 |  | $ | 3 |  | $ | 17,053 |  | $ | 73 |  | $ | 4
The Bank modifies loan terms in the normal course of business. Among other reasons, modifications might be made in an effort to retain the loan relationship, to remain competitive in the current interest rate environment and/or to re-amortize or extend the loan’s term to better match the loan’s payment stream with the borrower’s cash flow. A modified loan is considered to be a TDR when the Bank has determined that the borrower is troubled (i.e., experiencing financial difficulties). The Bank evaluates the probability that the borrower will be in payment default on any of its debt obligations in the foreseeable future without modification. To make this determination, the Bank performs a global financial review of the borrower and loan guarantors to assess their current ability to meet their financial obligations. Section 4013 of the CARES Act allows financial institutions to suspend application of certain current TDRs accounting guidance under ASC 310-40 for loan modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. This relief can be applied to loan modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan modifications that defer or delay the payment of principal or interest, or change the interest rate on the loan. In April 2020, federal and state banking regulators issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus to provide further interpretation of when a borrower is experiencing financial difficulty, specifically indicating that if the modification is either short-term (e.g., six months) or mandated by a federal or state government in response to the COVID-19 pandemic, the borrower is not experiencing financial difficulty under ASC 310-40. The Corporation continues to prudently work with borrowers negatively impacted by the COVID-19 pandemic while managing credit risks and recognizing appropriate allowance for credit losses on its loan portfolio. See Note 2 to the financial statements included elsewhere in this report for additional information. There were 14 and 15 loans totaling $4.0 million and $4.2 million, respectively, that were classified as TDRs at June 30, 2020 and December 31, 2019, respectively. The following tables present the volume and recorded investment in TDRs at the times they were modified, by class and type of modification that occurred during the periods indicated:
|  | Temporary Rate ‎Modification |  | Extension of Maturity |  | Modification of Payment ‎and Other Terms
(in thousands) |  | Number of ‎Contracts |  | Recorded ‎Investment |  | Number of ‎Contracts |  | Recorded ‎Investment |  | Number of ‎Contracts |  | Recorded ‎Investment
Six months ended June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non owner-occupied |  | — |  | $ | — |  | — |  | $ | — |  | — |  | $ | —
All other CRE |  | — |  |  | — |  | — |  |  | — |  | 1 |  |  | 2,226
Acquisition and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential construction |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
All other A&D |  | — |  |  | — |  | 1 |  |  | 217 |  | — |  |  | —
Commercial and industrial |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage – term |  | 1 |  |  | 46 |  | 1 |  |  | 230 |  | 2 |  |  | 245
Residential mortgage – home equity |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
Consumer |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
Total |  | 1 |  | $ | 46 |  | 2 |  | $ | 447 |  | 3 |  | $ | 2,471
|  | Temporary Rate ‎Modification |  | Extension of Maturity |  | Modification of Payment ‎and Other Terms
(in thousands) |  | Number of ‎Contracts |  | Recorded ‎Investment |  | Number of ‎Contracts |  | Recorded ‎Investment |  | Number of ‎Contracts |  | Recorded ‎Investment
Six months ended June 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non owner-occupied |  | — |  | $ | — |  | — |  | $ | — |  | — |  | $ | —
All other CRE |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
Acquisition and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential construction |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
All other A&D |  | — |  |  | — |  | — |  |  | — |  | 1 |  |  | 227
Commercial and industrial |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage – term |  | — |  |  | — |  | — |  |  | — |  | 1 |  |  | 243
Residential mortgage – home equity |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
Consumer |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
Total |  | — |  | $ | — |  | — |  | $ | — |  | 2 |  | $ | 470
During the six months ended June 30, 2020, there were no new TDRs but six existing TDRs that had reached their modification maturity dates were re-modified. These re-modifications did not impact the ALL. During the six months ended June 30, 2020, there were no payment defaults. ‎ During the six months ended June 30, 2019, there were no new TDRs but two existing TDRs that had reached their modification maturity dates were re-modified. These re-modifications did not impact the ALL. During the six months ended June 30, 2019, there were no payment defaults.
|  | Temporary Rate ‎Modification |  | Extension of Maturity |  | Modification of Payment ‎and Other Terms
(in thousands) |  | Number of ‎Contracts |  | Recorded ‎Investment |  | Number of ‎Contracts |  | Recorded ‎Investment |  | Number of ‎Contracts |  | Recorded ‎Investment
Three months ended June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non owner-occupied |  | — |  | $ | — |  | — |  | $ | — |  | — |  | $ | —
All other CRE |  | — |  |  | — |  | — |  |  | — |  | 1 |  |  | 2,226
Acquisition and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential construction |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
All other A&D |  | — |  |  | — |  | 1 |  |  | 217 |  | — |  |  | —
Commercial and industrial |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage – term |  | 1 |  |  | 46 |  | 1 |  |  | 230 |  | 2 |  |  | 245
Residential mortgage – home equity |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
Consumer |  | — |  |  | — |  | — |  |  | — |  | — |  |  | —
Total |  | 1 |  | $ | 46 |  | 2 |  | $ | 447 |  | 3 |  | $ | 2,471
During the three months ended June 30, 2020, there were no new TDRs but six existing TDRs that had reached their modification maturity dates were re-modified. These re-modifications did not impact the ALL. During the three months ended June 30, 2020, there were no payment defaults under TDRs. During the three months ended June 30, 2019, there were no new TDRs, no modifications on existing TDRs and no payment defaults.

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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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