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Allowance for Loan Losses (the Allowance) (Tables)

12 Months Ended

Dec. 31, 2020

Allowance for Loan Losses (the Allowance)

Roll-forward of allowance for loan and lease losses by portfolio segment


	Balance,					Balance,
(dollars in thousands)	December 31, 2019		Charge-offs	Recoveries	Provision	December 31, 2020
Commercial mortgage	$	3,426	—	—	4,025	7,451
Home equity lines and loans		342	(90)	14	168	434
Residential mortgage		179	—	7	199	385
Construction		2,362	—	—	59	2,421
Commercial and industrial		2,684	(31)	58	2,720	5,431
Small business loans		509	—	—	750	1,259
Consumer		6	(10)	4	4	4
Leases		5	—	—	377	382
Total	$	9,513	(131)	83	8,302	17,767


	Balance,					Balance,
(dollars in thousands)	December 31, 2018		Charge-offs	Recoveries	Provision	December 31, 2019
Commercial mortgage	$	3,209	—	237	(20)	3,426
Home equity lines and loans		323	—	10	9	342
Residential mortgage		191	—	5	(17)	179
Construction		1,627	—	—	735	2,362
Commercial and industrial		2,612	(30)	333	(231)	2,684
Small business loans		78	—	—	431	509
Consumer		3	—	4	(1)	6
Leases		10	—	—	(5)	5
Total	$	8,053	(30)	589	901	9,513

Schedule of allocation of the allowance for loan and lease losses

The following table details the allocation of the Allowance and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of December 31, 2020 respectively:


	Allowance on loans and leases				Carrying value of loans and leases
	Individually		Collectively		Individually		Collectively
December 31, 2020	evaluated		evaluated		evaluated		evaluated
(dollars in thousands)	for impairment		for impairment	Total	for impairment		for impairment	Total
Commercial mortgage	$	—	7,451	7,451	$	1,606	483,497	485,103
Home equity lines and loans		9	425	434		921	64,066	64,987
Residential mortgage		73	312	385		1,817	38,455	40,272
Construction		—	2,421	2,421		1,206	139,040	140,246
Commercial and industrial		1,563	3,868	5,431		4,645	257,105	261,750
Small business loans		—	1,259	1,259		185	49,357	49,542
Paycheck Protection Program loans		—	—	—		—	203,543	203,543
Main Street Lending Program		—	—	—		—	580	580
Consumer		—	4	4		—	511	511
Leases		—	382	382		—	31,040	31,040
Total	$	1,645	16,122	17,767	$	10,380	1,267,194	1,277,574	(1)

(1)	Excludes deferred fees and loans carried at fair value.




	Allowance on loans and leases				Carrying value of loans and leases
	Individually		Collectively		Individually		Collectively
December 31, 2019	evaluated		evaluated		evaluated		evaluated
(dollars in thousands)	for impairment		for impairment	Total	for impairment		for impairment	Total
Commercial mortgage	$	—	3,426	3,426	$	2,138	360,452	362,590
Home equity lines and loans		46	296	342		536	81,047	81,583
Residential mortgage		—	179	179		854	42,265	43,119
Construction		—	2,362	2,362		1,247	170,797	172,044
Commercial and industrial		27	2,657	2,684		1,288	272,013	273,301
Small business loans		63	446	509		1,244	20,372	21,616
Consumer		—	6	6		—	1,003	1,003
Leases		—	5	5		—	697	697
Total	$	136	9,377	9,513	$	7,307	948,646	955,953	(1)

(1)

Excludes deferred fees and loans carried at fair value.

Schedule of carrying value of loans and leases by portfolio segment based on the credit quality indicators


December 31, 2020			Special
(dollars in thousands)	Pass		mention	Substandard	Doubtful	Total
Commercial mortgage	$	449,545	32,059	3,499	—	485,103
Home equity lines and loans		63,923	—	1,064	—	64,987
Construction		132,286	7,960	—	—	140,246
Commercial and industrial		227,349	21,721	9,000	3,680	261,750
Small business loans		46,789	—	2,753	—	49,542
Paycheck Protection Program loans		203,543	—	—	—	203,543
Main Street Lending Program loans		580	—	—	—	580
Total	$	1,124,015	61,740	16,316	3,680	1,205,751


December 31, 2019			Special
(dollars in thousands)	Pass		mention	Substandard	Doubtful	Total
Commercial mortgage	$	353,724	5,821	3,045	—	362,590
Home equity lines and loans		81,046	—	537	—	81,583
Construction		170,823	1,221	—	—	172,044
Commercial and industrial		251,320	9,648	12,333	—	273,301
Small business loans		20,351	—	1,265	—	21,616
Total	$	877,264	16,690	17,180	—	911,134

Schedule of allocations based on the credit quality indicators


	December 31, 2020				December 31, 2019
(dollars in thousands)	Performing		Nonperforming	Total	Performing		Nonperforming	Total
Residential mortgage	$	38,457	1,815	40,272	$	42,265	854	43,119
Consumer		511	—	511		1,003	—	1,003
Leases		31,040	—	31,040		697	—	697
Total	$	70,008	1,815	71,823	$	43,965	854	44,819

Schedule of recorded investment and principal balance of impaired loans




	As of December 31, 2020				As of December 31, 2019
	Recorded		Principal	Related	Recorded	Principal	Related
(dollars in thousands)	investment		balance	allowance	investment	balance	allowance
Impaired loans with related allowance:
Commercial and industrial		3,860	3,902	1,563	617	617	27
Small business loans		—	—	—	1,002	1,002	63
Home equity lines and loans		95	105	9	461	461	46
Residential mortgage		689	689	73	—	—	—
Total		4,644	4,696	1,645	2,080	2,080	136
Impaired loans without related allowance:
Commercial mortgage	$	1,606	1,642	—	2,138	2,173	—
Commercial and industrial		785	862	—	671	718	—
Small business loans		185	185	—	242	242	—
Home equity lines and loans		826	839	—	75	75	—
Residential mortgage		1,128	1,128	—	854	854	—
Construction		1,206	1,206	—	1,247	1,248	—
Total		5,736	5,862	—	5,227	5,310	—
Grand Total	$	10,380	10,558	1,645	7,307	7,390	136

Schedule of TDRs


	December 31,		December 31,
(dollars in thousands)	2020		2019
TDRs included in nonperforming loans and leases	$	244	319
TDRs in compliance with modified terms		3,362	3,599
Total TDRs	$	3,606	3,918

Schedule of loan modifications provided to loan customers


		December 31, 2020
		Portfolio		Total		Active
Loan Portfolio		Balance		Modifications		Modifications
Commercial mortgage	$	485,103	$	96,712	$	19,836
Commercial and industrial, including leases		292,790		22,727		—
Construction & land development		140,246		24,847		4,343
Home equity lines and loans		64,987		1,488		—
Residential mortgage		52,454		4,563		—
Small business loans		49,542		5,958		2,726
Consumer		511		—		—
Total	$	1,085,633	$	156,295	$	26,905