Eagle Bancorp (EGBN) 10-Q/A 18 Nov 20 2020 Q3 Quarterly report (amended) Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2020	Oct. 31, 2020
Cover [Abstract]
Document Type	10-Q/A
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity Registrant Name	Eagle Bancorp, Inc.
Entity File Number	0-25923
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	52-2061461
Entity Address, Address Line One	7830 Old Georgetown Road
Entity Address, Address Line Two	Third Floor
Entity Address, City or Town	Bethesda
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20814
City Area Code	301
Local Phone Number	986-1800
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	EGBN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		32,234,966
Entity Central Index Key	0001050441
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 7,559	$ 7,539
Federal funds sold	30,830	38,987
Interest bearing deposits with banks and other short-term investments	818,719	195,447
Investment securities available for sale, at fair value (amortized cost of $956,803 and $839,192 and allowance for credit losses of $156 and $0 as of September 30, 2020 and December 31, 2019, respectively).	977,570	843,363
Federal Reserve and Federal Home Loan Bank stock	40,061	35,194
Loans held for sale	79,084	56,707
Loans	7,880,255	7,545,748
Less allowance for credit losses	(110,215)	(73,658)
Loans, net	7,770,040	7,472,090
Premises and equipment, net	12,204	14,622
Operating lease right-of-use assets	27,180	27,372
Deferred income taxes	36,363	29,804
Bank owned life insurance	76,326	75,724
Intangible assets, net	105,165	104,739
Other real estate owned	4,987	1,487
Other assets	120,206	85,644
Total Assets	10,106,294	8,988,719
Deposits:
Noninterest bearing demand	2,384,108	2,064,367
Interest bearing transaction	823,607	863,856
Savings and money market	3,956,553	3,013,129
Time, $100,000 or more	553,949	663,987
Other time	460,568	619,052
Total deposits	8,178,785	7,224,391
Customer repurchase agreements	24,293	30,980
Other short-term borrowings	300,000	250,000
Long-term borrowings	267,980	217,687
Operating lease liabilities	30,457	29,959
Reserve for unfunded commitments	5,092	0
Other liabilities	76,285	45,021
Total Liabilities	8,882,892	7,798,038
Shareholders’ Equity
Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 32,228,636 and 33,241,496, respectively	320	331
Additional paid in capital	442,592	482,286
Retained earnings	766,219	705,105
Accumulated other comprehensive income	14,271	2,959
Total Shareholders’ Equity	1,223,402	1,190,681
Total Liabilities and Shareholders’ Equity	$ 10,106,294	$ 8,988,719
Common Stock, Shares, Outstanding	32,228,636	33,241,496
Common Stock, Shares, Issued	32,228,636	33,241,496

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Investment securities available for sale, amortized cost	$ 956,803	$ 839,192
Investment securities available for sale, allowance for credit losses	156	0
Time deposits	$ 100	$ 100
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	32,228,636	33,241,496
Common stock, outstanding (in shares)	32,228,636	33,241,496

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest Income
Interest and fees on loans	$ 89,296	$ 102,297	$ 278,979	$ 302,007
Interest and dividends on investment securities	4,141	4,904	14,139	15,740
Interest on balances with other banks and short-term investments	384	1,762	2,104	4,533
Interest on federal funds sold	12	71	84	167
Total interest income	93,833	109,034	295,306	322,447
Interest Expense
Interest on deposits	10,995	24,576	44,055	67,937
Interest on customer repurchase agreements	84	82	257	255
Interest on short-term borrowings	505	408	1,363	1,983
Interest on long-term borrowings	3,211	2,979	9,486	8,937
Total interest expense	14,795	28,045	55,161	79,112
Net Interest Income	79,038	80,989	240,145	243,335
Provision for Credit Losses	6,607	3,186	40,654	10,146
Provision for Unfunded Commitments	(2,078)	0	974	0
Net Interest Income After Provision For Credit Losses	74,509	77,803	198,517	233,189
Noninterest Income
Service charges on deposits	1,061	1,494	3,428	4,794
Gain on sale of loans	12,226	2,563	16,249	5,874
Gain on sale of investment securities	115	153	1,650	1,628
Increase in the cash surrender value of bank owned life insurance	413	431	1,655	1,285
Other income	4,029	1,673	12,827	5,384
Total noninterest income	17,844	6,314	35,809	18,965
Noninterest Expense
Salaries and employee benefits	19,388	19,095	54,289	60,482
Premises and equipment expenses	5,125	3,503	12,414	11,007
Marketing and advertising	928	1,210	3,117	3,626
Data processing	2,700	2,183	7,955	7,161
Legal, accounting and professional fees	3,097	3,625	14,064	8,074
FDIC insurance	2,152	85	5,556	2,327
Other expenses	3,525	3,772	11,759	12,459
Total noninterest expense	36,915	33,473	109,154	105,136
Income Before Income Tax Expense	55,438	50,644	125,172	147,018
Income Tax Expense	14,092	14,149	31,847	39,531
Net Income	$ 41,346	$ 36,495	$ 93,325	$ 107,487
Earnings Per Common Share
Basic net income per common share (in dollars per share)	$ 1.28	$ 1.07	$ 2.88	$ 3.12
Diluted net income per common share (in dollars per share)	$ 1.28	$ 1.07	$ 2.88	$ 3.12

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net Income	$ 41,346	$ 36,495	$ 93,325	$ 107,487
Other comprehensive income, net of tax:
Unrealized (loss) gain on securities available for sale	(624)	1,174	13,354	13,140
Reclassification adjustment for net gains included in net income	(86)	(110)	(1,231)	(1,190)
Total unrealized (loss) gain on investment securities	(710)	1,064	12,123	11,950
Unrealized gain (loss) on derivatives	24	11	(1,324)	(1,664)
Reclassification adjustment for amounts included in net income	289	(205)	513	(1,374)
Total unrealized gain (loss) on derivatives	313	(194)	(811)	(3,038)
Net other comprehensive income (loss) during period	(397)	870	11,312	8,912
Comprehensive Income	$ 40,949	$ 37,365	$ 104,637	$ 116,399

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2018		34,387,919
Beginning balance at Dec. 31, 2018	$ 1,108,941	$ 342	$ 528,380	$ 584,494	$ (4,275)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	107,487			107,487
Other comprehensive income, net of tax	8,912				8,912
Stock-based compensation expense	6,648		6,648
Issuance of common stock related to options exercised, net of shares withheld for payroll taxes (in shares)		26,784
Issuance of common stock related to options exercised, net of shares withheld for payroll taxes	332		332
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes (in shares)		(13,995)
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes		$ 1	(1)
Vesting of performance based stock awards, net of shares withheld for payroll taxes (in shares)		17,655
Time based stock awards granted (in shares)		112,636
Issuance of common stock related to employee stock purchase plan (in shares)		11,723
Issuance of common stock related to employee stock purchase plan	585		585
Cash dividends declared	(14,926)			(14,926)
Common stock repurchased (in shares)		(822,200)
Common stock repurchased	(33,385)	$ (7)	(33,378)
Ending balance (in shares) at Sep. 30, 2019		33,720,522
Ending balance at Sep. 30, 2019	1,184,594	$ 336	502,566	677,055	4,637
Beginning balance (in shares) at Jun. 30, 2019		34,539,853
Beginning balance at Jun. 30, 2019	1,184,582	$ 343	532,585	647,887	3,767
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	36,495			36,495
Other comprehensive income, net of tax	870				870
Stock-based compensation expense	3,147		3,147
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes (in shares)		(1,251)
Issuance of common stock related to employee stock purchase plan (in shares)		4,120
Issuance of common stock related to employee stock purchase plan	213		213
Cash dividends declared	(7,327)			(7,327)
Common stock repurchased (in shares)		(822,200)
Common stock repurchased	(33,386)	$ (7)	(33,379)
Ending balance (in shares) at Sep. 30, 2019		33,720,522
Ending balance at Sep. 30, 2019	1,184,594	$ 336	502,566	677,055	4,637
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment due to the adoption of ASC 326, net of tax	$ 10,614
Beginning balance (in shares) at Dec. 31, 2019	33,241,496	33,241,496
Beginning balance at Dec. 31, 2019	$ 1,190,681	$ 331	482,286	705,105	2,959
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	93,325	$ 0	0	93,325	0
Other comprehensive income, net of tax	11,312				11,312
Stock-based compensation expense	3,874		3,874
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes (in shares)		(28,218)
Vesting of performance based stock awards, net of shares withheld for payroll taxes (in shares)		4,126
Time based stock awards granted (in shares)		176,252
Issuance of common stock related to employee stock purchase plan (in shares)		17,821
Issuance of common stock related to employee stock purchase plan	589		589
Cash dividends declared	(21,280)			(21,280)
Common stock repurchased (in shares)		(1,182,841)
Common stock repurchased	$ (44,168)	$ (11)	(44,157)
Ending balance (in shares) at Sep. 30, 2020	32,228,636	32,228,636
Ending balance at Sep. 30, 2020	$ 1,223,402	$ 320	442,592	766,219	14,271
Beginning balance (in shares) at Jun. 30, 2020		32,224,756
Beginning balance at Jun. 30, 2020	1,187,895	$ 320	440,934	731,973	14,668
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	41,346			41,346
Other comprehensive income, net of tax	(397)				(397)
Stock-based compensation expense	1,452		1,452
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes (in shares)		(3,297)
Issuance of common stock related to employee stock purchase plan (in shares)		7,177
Issuance of common stock related to employee stock purchase plan	206		206
Cash dividends declared	$ (7,100)			(7,100)
Ending balance (in shares) at Sep. 30, 2020	32,228,636	32,228,636
Ending balance at Sep. 30, 2020	$ 1,223,402	$ 320	$ 442,592	766,219	$ 14,271
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment due to the adoption of ASC 326, net of tax	$ (10,931)			$ (10,931)

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.22	$ 0.22	$ 0.66	$ 0.44

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows From Operating Activities:
Net Income	$ 93,325	$ 107,487
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	40,654	10,146
Provision for unfunded commitments	974	0
Depreciation and amortization	3,515	5,653
Amortization of operating lease right-of-use assets	5,276	3,022
Gains on sale of loans	(16,249)	(5,874)
Gains on sale of GNMA loans	(2,443)	0
Securities premium amortization (discount accretion), net	5,345	3,966
Origination of loans held for sale	(862,171)	(437,525)
Proceeds from sale of loans held for sale	856,043	410,454
Net increase in cash surrender value of BOLI	(1,655)	(1,285)
Deferred income tax (benefit) expense	(6,559)	3,305
Net gain on sale of other real estate owned	(1,180)	0
Net gain on sale of investment securities	(1,650)	(1,628)
Stock-based compensation expense	3,874	6,648
Net tax benefits from stock compensation	99	10
(Increase) decrease in other assets	(45,493)	7,274
Increase (decrease) in other liabilities	35,880	(19,314)
Net cash provided by operating activities	107,585	92,339
Cash Flows From Investing Activities:
Purchases of available-for-sale investment securities	(465,119)	(130,693)
Proceeds from maturities of available-for-sale securities	208,264	129,879
Proceeds from sale/call of available-for-sale securities	130,265	82,982
Purchases of Federal Reserve and Federal Home Loan Bank stock	(9,116)	(90,219)
Proceeds from redemption of Federal Reserve and Federal Home Loan Bank stock	4,250	85,000
Net increase in loans	(343,665)	(574,177)
Increase (decrease) in premises and equipment	(445)	(2,171)
Net cash used in investing activities	(475,566)	(499,399)
Cash Flows From Financing Activities:
Increase in deposits	954,394	428,228
Decrease in customer repurchase agreements	(6,687)	(116)
Increase in short-term borrowings	50,000	100,000
Increase in long-term borrowings	50,293	0
Proceeds from exercise of equity compensation plans	0	332
Proceeds from employee stock purchase plan	564	585
Common stock repurchased	(44,168)	(33,385)
Cash dividends paid	(21,280)	(14,926)
Net cash provided by financing activities	983,116	480,718
Net Increase In Cash and Cash Equivalents	615,135	73,658
Cash and Cash Equivalents at Beginning of Period	241,973	321,864
Cash and Cash Equivalents at End of Period	857,108	395,522
Supplemental Cash Flows Information:
Interest paid	59,011	81,834
Income taxes paid	29,850	43,250
Non-Cash Investing Activities
Initial recognition of operating lease right-of-use assets	998	29,574
Transfers from loans to other real estate owned	$ 3,500	$ 93

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements include the accounts of Eagle Bancorp, Inc. and its subsidiaries (the “Company”). Active subsidiaries include: EagleBank (the “Bank”), Eagle Insurance Services, LLC, Bethesda Leasing, LLC, and Landroval Municipal Finance, Inc., with all significant intercompany transactions eliminated. The Consolidated Financial Statements of the Company included herein are unaudited. The Consolidated Financial Statements reflect all adjustments, consisting of normal recurring accruals that in the opinion of management, are necessary to present fairly the results for the periods presented. The amounts as of and for the year ended December 31, 2019 were derived from audited Consolidated Financial Statements. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). In addition to the “Critical Accounting Policies” impacted by the new Current Expected Credit Loss (“CECL”) standard described below, the Company applies the accounting policies contained in Note 1 to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The Company believes that the disclosures are adequate to make the information presented not misleading. Certain reclassifications have been made to amounts previously reported to conform to the current period presentation. Nature of Operations The Company, through the Bank, conducts a full service community banking business, primarily in Northern Virginia, Suburban Maryland, and Washington, D.C. The primary financial services offered by the Bank include real estate, commercial and consumer lending, as well as traditional deposit and repurchase agreement products. The Bank is also active in the origination and sale of residential mortgage loans, the origination of small business loans, and the origination, securitization and sale of multifamily Federal Housing Administration (“FHA”) loans. The guaranteed portion of small business loans, guaranteed by the Small Business Administration (“SBA”), is typically sold to third party investors in a transaction apart from the loan’s origination. The Bank offers its products and services through twenty banking offices, five lending centers and various electronic capabilities, including remote deposit services and digital banking services. Eagle Insurance Services, LLC, a subsidiary of the Bank, offers access to insurance products and services through a referral program with a third party insurance broker. Landroval Municipal Finance, Inc., a subsidiary of the Bank, focuses on lending to municipalities by buying debt on the public market as well as direct purchase issuance. Bethesda Leasing, a subsidiary of the Bank, holds title to repossessed real estate. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for credit losses, the fair value of financial instruments and the status of contingencies are particularly susceptible to significant change. Risks and Uncertainties The outbreak of COVID-19 has adversely impacted a broad range of industries in which the Company’s customers operate and could impair their ability to fulfill their financial obligations to the Company. The World Health Organization has declared COVID-19 to be a global pandemic indicating that almost all public commerce and related business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The spread of the outbreak has caused significant disruptions in the U.S. economy and has disrupted banking and other financial activity in the areas in which the Company operates. While there has been no material adverse impact to the Company’s employees and operations to date, COVID-19 could still potentially create widespread business continuity or credit issues for the Company depending on how much longer the pandemic lasts. Congress, the President, and the Federal Reserve have taken several actions designed to cushion the economic fallout. Most notably, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was signed into law at the end of March 2020 as a $2 trillion legislative package. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The package also includes extensive emergency funding for hospitals and providers. In addition to the general impact of COVID-19, certain provisions of the CARES Act as well as other follow-up stimulus legislative and regulatory relief efforts have had and are expected to continue to have a material impact on the Company’s operations. The Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to control and manage COVID-19 escalates further or is unsuccessful, the Company could experience a material adverse effect on its business, financial condition, results of operations and cash flows. While it is not possible to know the full universe or extent that the impact of COVID-19, and resulting measures to curtail its spread, will have on the Company’s operations, the Company is disclosing potentially material items of which it is aware. Financial position and results of operations The Company’s fee income has been and could be further reduced due to COVID-19. In keeping with guidance from regulators, the Company is actively working with COVID-19 affected customers to waive fees from a variety of sources, such as, but not limited to, insufficient funds and overdraft fees, ATM fees, account maintenance fees, etc. These reductions in fees are thought, at this time, to be temporary in conjunction with the length of the expected COVID-19 related economic crisis. At this time, the Company is unable to project the full extent of the materiality of such an impact, but recognizes the breadth of the economic impact is likely to impact its fee income in future periods. The Company’s interest income could be reduced due to COVID-19. In keeping with guidance from regulators, the Company is actively working with COVID-19 affected borrowers to defer their payments, interest, and fees. While interest and fees will still accrue to income, through normal GAAP accounting, should eventual credit losses on these deferred payments emerge, interest income and fees accrued would need to be reversed. In such a scenario, interest income in future periods could be negatively impacted. At this time the Company is unable to project the full extent of the materiality of such an impact, but recognizes the breadth of the economic impact may affect its borrowers’ ability to repay in future periods. Capital and liquidity While the Company believes that it has sufficient capital to withstand an extended economic recession brought about by COVID-19, its reported and regulatory capital ratios could be adversely impacted by further credit losses. The Company maintains access to multiple sources of liquidity. Wholesale funding markets have remained open to us, and rates for short term funding have recently been very low. If funding costs were to become elevated for an extended period of time, it could have an adverse effect on the Company’s net interest margin. If an extended recession caused large numbers of the Company’s customers to withdraw their funds, the Company might become more reliant on volatile or more expensive sources of funding. Asset valuation Currently, the Company does not expect COVID-19 to affect its ability to account timely for the assets on its balance sheet; however, this could change in future periods. While certain valuation assumptions and judgments will change to account for pandemic-related circumstances such as widening credit spreads, the Company does not anticipate significant changes in methodology used to determine the fair value of assets measured in accordance with GAAP. COVID-19 could cause a further and sustained decline in the Company’s stock price. As of June 30, 2020, the Company performed a qualitative assessment to determine whether it was more likely than not that the fair value of the reporting unit was less than its carrying amount. As of June 30, 2020, a triggering event was deemed to have occurred as a result of COVID-19 and, accordingly, a step one assessment was performed by comparing the fair value of the reporting unit with its carrying amount (including goodwill). Determining the fair value of a reporting unit under the goodwill impairment test is subjective and often involves the use of significant estimates and assumptions. Estimates of fair value are primarily determined using discounted cash flows, market comparisons and recent transactions. These approaches use significant estimates and assumptions including projected future cash flows, discount rates reflecting the market rate of return, projected growth rates and determination and evaluation of appropriate market comparable factors. Based on the results of the assessment of all reporting units, the Company concluded that no impairment existed as of June 30, 2020. The Company determined that there were no triggering events and an impairment analysis was not performed as of September 30, 2020. An impairment analysis will next be performed during the fourth quarter as part of our regularly scheduled annual impairment testing. Future events could cause the Company to conclude that goodwill or other intangibles have become impaired, which would result in recording an impairment loss. Any resulting impairment loss could have a material adverse impact on the Company’s financial condition and results of operations. Business Continuity Plan The Company has implemented a remote working strategy for many of its employees. The Company does not anticipate incurring additional material cost related to its continued deployment of the remote working strategy. No material operational or internal control challenges or risks have been identified to date. The Company does not anticipate significant challenges to its ability to maintain its systems and controls in light of the measures the Company has taken to prevent the spread of COVID-19. We have established general guidelines for returning to the workplace that include having employees maintain safe distances, staggered work schedules to limit the number of employees in a single location, more frequent cleaning of our facilities and other practices encouraging a safe working environment during this challenging time, including required COVID-19 training programs. The Company does not currently face any material resource constraint through the implementation of its business continuity plans. Lending operations and accommodations to borrowers In response to the COVID-19 pandemic and consistent with regulatory guidance, we have also implemented a short-term loan modification program to provide temporary payment relief to certain borrowers who meet the program's qualifications. At September 30, 2020, the Company had no accruing loans 90 days or more past due. The deferred payments along with interest accrued during the deferral period are due and payable on the maturity date of the existing loan. As of September 30, 2020, we had ongoing temporary modifications on approximately 321 loans representing approximately $851 million (approximately 10.8% of total loans) in outstanding balances, as compared to 708 loans representing approximately $1.6 billion (approximately 20% of total loans) at June 30, 2020. Additionally, none of the deferrals are reflected in the Company's asset quality measures (i.e. non-performing loans) due to the provision of the CARES Act that permits U.S. financial institutions to temporarily suspend the U.S. GAAP requirements to treat such short-term loan modifications as troubled debt restructurings ("TDRs"). Similar provisions have also been confirmed by interagency guidance issued by the federal banking agencies and confirmed with staff members of the Financial Accounting Standards Board. The Company actively participates in the Paycheck Protection Program (“PPP”), administered by the Small Business Administration (“SBA”). The PPP loans originated by the Bank generally have a two-year term and earn interest at 1% plus fees. The Company believes that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program. As of September 30, 2020, PPP loans totaled $456.1 million to just over 1,400 businesses. The Company understands that loans funded through the PPP program are fully guaranteed by the U.S. government. Should those circumstances change, the Company could be required to establish additional allowance for credit loss through additional credit loss expense charges to earnings. Credit The Company is working with customers directly affected by COVID-19. The Company is prepared to offer short-term assistance in accordance with regulatory guidelines. As a result of the current economic environment caused by the COVID-19 virus, the Company is engaging in more frequent communication with borrowers to better understand their situation and the challenges faced, allowing it to respond proactively as needs and issues arise. Should economic conditions worsen, the Company could experience further increases in its required allowance for credit losses (“ACL”) and record additional provision for credit losses. It is possible that the Company’s asset quality measures could worsen at future measurement periods if the effects of COVID-19 are prolonged. Allowance for Credit Losses On January 1, 2020, we adopted ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which replaced the incurred loss methodology for determining our provision for credit losses and ACL with an expected loss methodology that is referred to as the current expected credit loss model. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans receivable and held-to-maturity (“HTM”) debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with ASU 2016-2 "Leases (Topic 842)" ("ASU 2016-2") . In addition, ASU 2016-13 made changes to the accounting for available-for-sale (“AFS”) debt securities. One such change is to require credit-related impairments to be recognized as an allowance for credit losses rather than as a write-down of the securities amortized cost basis when management does not intend to sell or believes that it is not more than likely that they will be required to sell the securities prior to recovery of the securities amortized cost basis. We adopted ASU 2016-13 using the modified retrospective method. Results for reporting periods beginning after January 1, 2020 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company does not own HTM investment debt securities. The following table presents a breakdown of the provision for credit losses included in our Consolidated Statements of Income for the applicable periods (in thousands): Three Months Ended Nine Months Ended (dollars in thousands) September 30, 2020 September 30, 2020 Provision for credit losses- loans $ 6,589 $ 40,498 Provision for credit losses- AFS debt securities 18 156 Total provision for credit losses $ 6,607 $ 40,654 Loans Loans held for investment are stated at the amount of unpaid principal reduced by deferred income (net of costs). Interest on loans is recognized using the simple-interest method on the daily balances of the principal amounts outstanding. Loan origination fees, net of direct loan origination costs, and commitment fees are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. A modification of a loan constitutes a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company offers various types of concessions when modifying a loan. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. The most common change in terms provided by the Company is an extension of an interest-only term. As of September 30, 2020, all performing TDRs were categorized as interest-only modifications. Refer to the subsection above "Lendi ng operations and accommodations to borrowers" for a discussion on the impact of the CARES Act on TDRs. A loan is considered past due when a contractually due payment has not been received by the contractual due date. We place a loan on non-accrual status when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed as a reduction of current period interest income. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. A loan is placed back on accrual status when both principal and interest are current and it is probable that we will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. Allowance for Credit Losses- Loans The allowance for credit losses is an estimate of the expected credit losses in the loans held for investment and available-for-sale debt securities portfolios. ASU 2016-13 replaced the incurred loss impairment model that recognizes losses when it becomes probable that a credit loss will be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged- off. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, loan concentrations, credit quality, or term, as well as for changes in environmental conditions, such as changes in unemployment rates, property values or other relevant factors. The allowance for credit losses is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Reserves on loans that do not share risk characteristics are evaluated on an individual basis (nonaccrual, TDR). Nonaccrual loans are specifically reviewed for loss potential and when deemed appropriate are assigned a reserve based on an individual evaluation. For purposes of determining the pool-basis reserve, the remainder of the portfolio, representing all loans not assigned an individual reserve, is segregated by call report codes. These historical loss rates are then modified to incorporate our reasonable and supportable forecast of future losses at the portfolio segment level, as well as any necessary qualitative adjustments. A similar process is employed to calculate a reserve assigned to off-balance sheet commitments, specifically unfunded loan commitments and letters of credit, and any needed reserve is recorded in reserve for unfunded commitments on the Consolidated Balance Sheets. For periods beyond which we are able to develop reasonable and supportable forecasts, we revert to the historical loss rate on a straight line basis over a twelve month period. See further detail regarding our forecasting methodology in the “Discounted Cash Flow Method” section below. Even though portions of the allowance may be allocated to specific loans, the entire allowance is available for any credit that, in management's judgment, should be charged off. Portfolio segments are used to pool loans with similar risk characteristics and align with our methodology for measuring expected credit losses. A summary of our primary portfolio segments is as follows: Commercial . The commercial loan portfolio is comprised of lines of credit and term loans for working capital, equipment, and other business assets across a variety of industries. These loans are used for general corporate purposes including financing working capital, internal growth, and acquisitions; and are generally secured by accounts receivable, inventory, equipment and other assets of our clients’ businesses. Income producing – commercial real estate . Income producing commercial real estate loans are comprised of permanent and bridge financing provided to professional real estate owners/managers of commercial and residential real estate projects and properties who have a demonstrated record of past success with similar properties. Collateral properties include apartment buildings, office buildings, hotels, mixed-use buildings, retail, data centers, warehouse, and shopping centers. The primary source of repayment on these loans is generally expected to come from lease or operation of the real property collateral. Income producing commercial real estate loans are impacted by fluctuation in collateral values, as well as rental demand and rates. Owner occupied – commercial real estate. The owner occupied commercial real estate portfolio is comprised of permanent financing provided to operating companies and their related entities for the purchase or refinance of real property wherein their business operates. Collateral properties include industrial property, office buildings, religious facilities, mixed-use property, health care and educational facilities. Real Estate Mortgage – Residential. Real estate mortgage residential loans are comprised of consumer mortgages for the purpose of purchasing or refinancing first lien real estate loans secured by primary-residence, second-home, and rental residential real property. Construction – commercial and residential . The construction commercial and residential loan portfolio is comprised of loans made to builders and developers of commercial and residential property, for both renovation, new construction, and development projects. Collateral properties include apartment buildings, mixed use property, residential condominiums, single and 1-4 residential property, and office buildings. The primary source of repayment on these loans is expected to come from the sale, permanent financing, or lease of the real property collateral. Construction loans are impacted by fluctuations in collateral values and the ability of the borrower or ultimate purchaser to obtain permanent financing. Construction – commerical and industrial ("C&I") (owner occupied) . The construction C&I (owner occupied) portfolio comprises loans to operating companies and their related entities for new construction or renovation of the real or leased property in which they operate. Generally these loans contain provisions for conversion to an owner occupied commercial real estate or to a commercial loan after completion of construction. Collateral properties include industrial, healthcare, religious facilities, restaurants, and office buildings. Home Equity . The home equity portfolio is comprised of consumer lines of credit and loans secured by subordinate liens on residential real property. Other Consumer . The other consumer portfolio is comprised of consumer purpose loans not secured by real property, including personal lines of credit and loans, overdraft lines, and vehicle loans. This category also includes other loan items such as overdrawn deposit accounts as well as loans and loan payments in process. We have several pass credit grades that are assigned to loans based on varying levels of risk, ranging from credits that are secured by cash or marketable securities, to watch credits which have all the characteristics of an acceptable credit risk but warrant more than the normal level of monitoring. Special mention loans are those that are currently protected by the sound worth and paying capacity of the borrower, but that are potentially weak and constitute an additional credit risk. These loans have the potential to deteriorate to a substandard grade due to the existence of financial or administrative deficiencies. Substandard loans have a well-defined weakness or weaknesses that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Some substandard loans are inadequately protected by the sound worth and paying capacity of the borrower and of the collateral pledged and may be considered impaired. Substandard loans can be accruing or can be on non-accrual depending on the circumstances of the individual loans. Loans classified as doubtful have all the weaknesses inherent in substandard loans with the added characteristics that the weaknesses make collection in full highly questionable and improbable. The possibility of loss is extremely high. All doubtful loans are on non-accrual. The methodology used in the estimation of the allowance, which is performed at least quarterly, is designed to be dynamic and responsive to changes in portfolio credit quality and forecasted economic conditions. Changes are reflected in the pool-basis allowance and in reserves assigned on an individual basis as the collectability of classified loans is evaluated with new information. As our portfolio has matured, historical loss ratios have been closely monitored. The review of the appropriateness of the allowance is performed by executive management and presented to management committees, Director’s Loan Committee, the Audit Committee, and the Board of Directors. The committees' reports to the Board are part of the Board's review on a quarterly basis of our consolidated financial statements. When management determines that foreclosure is probable, and for certain collateral-dependent loans where foreclosure is not considered probable, expected credit losses are based on the fair value of the collateral adjusted for selling costs, when appropriate. A loan is considered collateral- dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation that a loan will be in a trouble debt restructuring or the extension or renewal options are included in the borrower contract. We do not measure an allowance for credit losses on accrued interest receivable balances because these balances are written off in a timely manner as a reduction to interest income when loans are placed on non-accrual status. Discounted Cash Flow Method The Company uses the discounted cash flow (“DCF”) method to estimate expected credit losses for the commercial, income producing – commercial real estate, owner occupied – commercial real estate, real estate mortgage - residential, construction – commercial and residential, construction – C&I (owner occupied), home equity, and other consumer loan pools. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, probability of default, and loss given default. The modeling of expected prepayment speeds is based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes and forecasts regional unemployment as a loss driver. COVID-19 has negatively impacted unemployment projections, which inform our CECL economic forecast and increased our loss reserve as of September 30, 2020. For all DCF models, management has determined that eight quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over twelve months on a straight-line basis. Management leverages economic projections from reputable and independent third parties to inform its loss driver forecasts over the forecast period. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value ("NPV"). An ACL is established for the difference between the instrument’s NPV and amortized cost basis. Collateral Dependent Financial Assets Loans that do not share risk characteristics are evaluated on an individual basis. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. A loan that has been modified or renewed is considered a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. The Company’s ACL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the le

Cash and Due from Banks

Cash and Due from Banks	9 Months Ended
	Sep. 30, 2020
Cash and Cash Equivalents [Abstract]
Cash and Due from Banks	Note 2. Cash and Due from Banks Regulation D of the Federal Reserve Act requires that banks maintain noninterest reserve balances with the Federal Reserve Bank based principally on the type and amount of their deposits. During the first nine months of 2020, the Bank maintained balances at the Federal Reserve sufficient to meet reserve requirements, as well as significant excess reserves, on which interest is paid. Additionally, the Bank maintains interest bearing balances with the Federal Home Loan Bank of Atlanta and noninterest bearing balances with domestic correspondent banks as compensation for services they provide to the Bank.

Investment Securities Available

Investment Securities Available-for-Sale	9 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Investment Securities Available-for-Sale	Note 3. Investment Securities Available-for-Sale Amortized cost and estimated fair value of securities available-for-sale are summarized as follows: Gross Gross Allowance Estimated September 30, 2020 Amortized Unrealized Unrealized for Credit Fair (dollars in thousands) Cost Gains Losses Losses Value U.S. agency securities $ 130,313 $ 1,638 $ (665) $ — $ 131,286 Residential mortgage backed securities 702,655 14,578 (590) — 716,643 Municipal bonds 90,292 4,551 (114) (16) 94,713 Corporate bonds 33,345 1,596 (71) (140) 34,730 Other equity investments 198 — — — 198 $ 956,803 $ 22,363 $ (1,440) $ (156) $ 977,570 Gross Gross Estimated December 31, 2019 Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value U.S. agency securities $ 180,228 $ 621 $ (1,055) $ 179,794 Residential mortgage backed securities 541,490 4,337 (1,975) 543,852 Municipal bonds 71,902 2,034 (5) 73,931 Corporate bonds 10,530 203 — 10,733 U.S. Treasury 34,844 11 — 34,855 Other equity investments 198 — — 198 $ 839,192 $ 7,206 $ (3,035) $ 843,363 In addition, at September 30, 2020 and December 31, 2019 the Company held $40.1 million and $35.2 million, respectively, in equity securities in a combination of Federal Reserve Bank (“FRB”) and Federal Home Loan Bank (“FHLB”) stocks, which are required to be held for regulatory purposes and which are not marketable, and therefore are carried at cost. Accrued interest on available-for-sale securities totaled $3.1 million and $3.2 million at September 30, 2020 and December 31, 2019, respectively, and was included in other assets in the Consolidated Balance Sheets. Gross unrealized losses and fair value of available-for-sale securities for which an allowance for credit losses has not been recorded, by length of time that individual securities have been in a continuous unrealized loss position are as follows: Less than 12 Months 12 Months or Greater Total Estimated Estimated Estimated September 30, 2020 Number of Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Securities Value Losses Value Losses Value Losses U. S. agency securities 25 $ 20,762 $ 32 $ 43,607 $ 633 $ 64,369 $ 665 Residential mortgage backed securities 33 139,848 549 7,334 41 147,182 590 Municipal bonds 4 14,086 114 — — 14,086 114 Corporate bonds 1 2,954 71 — — 2,954 71 63 $ 177,650 $ 766 $ 50,941 $ 674 $ 228,591 $ 1,440 Less than 12 Months 12 Months or Greater Total Estimated Estimated Estimated December 31, 2019 Number of Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Securities Value Losses Value Losses Value Losses U. S. agency securities 36 $ 75,159 $ 439 $ 51,481 $ 616 $ 126,640 $ 1,055 Residential mortgage backed securities 111 197,794 1,148 90,742 827 288,536 1,975 Municipal bonds 1 1,994 5 — — 1,994 5 148 $ 274,947 $ 1,592 $ 142,223 $ 1,443 $ 417,170 $ 3,035 The majority of the AFS debt securities in an unrealized loss position as of September 30, 2020, consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. As of September 30, 2020, total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. However, as of September 30, 2020, the Company determined that part of the unrealized loss positions in AFS corporate and municipal securities could be the result of credit losses, and therefore, an allowance for credit losses of $156 thousand was recorded. The weighted average duration of debt securities, which comprise 99.9% of total investment securities, is relatively short at 3.1 years. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions and other factors such as credit loss assumptions. The Company does not intend to sell the investments and it is more likely than not that the Company will not have to sell the securities before recovery of its amortized cost basis, which may be at maturity. The amortized cost and estimated fair value of investments available-for-sale at September 30, 2020 and December 31, 2019 by contractual maturity are shown in the table below. Expected maturities for residential mortgage backed securities (“MBS”) will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2020 December 31, 2019 Amortized Estimated Amortized Estimated (dollars in thousands) Cost Fair Value Cost Fair Value U. S. agency securities maturing: One year or less $ 38,000 $ 38,111 $ 96,332 $ 96,226 After one year through five years 81,181 82,057 76,121 75,821 Five years through ten years 11,132 11,224 7,775 7,747 Residential mortgage backed securities 702,655 716,643 541,490 543,852 Municipal bonds maturing: One year or less 4,834 4,868 5,897 5,969 After one year through five years 26,677 27,912 21,416 21,953 Five years through ten years 56,781 59,771 42,589 44,015 After ten years 2,000 2,072 2,000 1,994 Corporate bonds maturing: One year or less 5,214 5,257 502 508 After one year through five years 21,156 22,124 8,528 8,725 After ten years 6,975 7,489 1,500 1,500 U.S. treasury — — 34,844 34,855 Other equity investments 198 198 198 198 Allowance for Credit Losses — (156) — — $ 956,803 $ 977,570 $ 839,192 $ 843,363 For the nine months ended September 30, 2020, gross realized gains on sales of investments securities were $1.7 million and there were no gross realized losses on sales of investment securities. For the nine months ended September 30, 2019, gross realized gains on sales of investments securities were $1.6 million, of which $829 thousand was recognized during March 2019 on interest rate swap terminations, and there were no gross realized losses on sales of investment securities. Proceeds from sales and calls of investment securities for the nine months ended September 30, 2020 were $130.3 million compared to $83.0 million for the same period in 2019. The carrying value of securities pledged as collateral for certain government deposits, securities sold under agreements to repurchase, and certain lines of credit with correspondent banks at September 30, 2020 and December 31, 2019 was $320 million and $378 million, respectively, which is well in excess of required amounts in order to operationally provide significant reserve amounts for new business. As of September 30, 2020 and December 31, 2019, there were no holdings of securities of any one issuer, other than the U.S. Government and U.S. agency securities, which exceeded ten percent of shareholders’ equity.

Mortgage Banking Derivatives

Mortgage Banking Derivatives	9 Months Ended
	Sep. 30, 2020
Mortgage Banking Derivatives
Mortgage Banking Derivatives	Mortgage Banking DerivativesAs part of its mortgage banking activities, the Bank enters into interest rate lock commitments, which are commitments to originate loans where the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. The Bank then locks in the loan and interest rate with an investor and commits to deliver the loan if settlement occurs (“best efforts”) or commits to deliver the locked loan in a binding (“mandatory”) delivery program with an investor. Certain loans under interest rate lock commitments are covered under forward sales contracts of mortgage backed securities. Forward sales contracts of MBS are recorded at fair value with changes in fair value recorded in noninterest income. Interest rate lock commitments and commitments to deliver loans to investors are considered derivatives. The market value of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because they are not actively traded in stand-alone markets. The Bank determines the fair value of interest rate lock commitments and delivery contracts by measuring the fair value of the underlying asset, which is impacted by current interest rates, taking into consideration the probability that the interest rate lock commitments will close or will be funded. Certain additional risks arise from these forward delivery contracts in that the counterparties to the contracts may not be able to meet the terms of the contracts. The Bank does not expect any counterparty to any MBS to fail to meet its obligation. Additional risks inherent in mandatory delivery programs include the risk that, if the Bank does not close the loans subject to interest rate risk lock commitments, it will still be obligated to deliver MBS to the counterparty under the forward sales agreement. Should this be required, the Bank could incur significant costs in acquiring replacement loans or MBS and such costs could have an adverse effect on mortgage banking operations. The fair value of the mortgage banking derivatives is recorded as a freestanding asset or liability with the change in value being recognized in current earnings during the period of change. During the second quarter of 2020, the Company suspended locking loans for sale on a mandatory basis as a result of elevated origination volumes and market dislocations associated with the current COVID-19 pandemic. In connection with this shift in pipeline strategy from mandatory to best efforts, beginning in the third quarter of 2020, the Company adjusted its accounting treatment of loans sold on a best efforts basis which accelerated revenue recognition associated with the pipeline to when the loans are committed, in accordance with GAAP. The change reflects the timely recognition of non-interest income associated with the gains and fees attributable to the best efforts sale and aligns the accounting treatment of best efforts with the accounting treatment of loans sold on a mandatory basis. Under the adjustment to the accounting for best efforts implemented in the third quarter of 2020, the Company recognized an additional $1.6 million in noninterest income associated with the residential mortgage operations. Had the company utilized the adjusted accounting method for best efforts in prior quarters, non-interest income would have been higher by an immaterial amount. At September 30, 2020, the Bank had mortgage banking derivative financial instruments totaling $6.0 million. At September 30, 2019 the Bank had mortgage banking derivative financial instruments of $134.3 million notional value. The fair value of these mortgage banking derivative instruments at December 31, 2019 was $280 thousand included in other assets and $66 thousand included in other liabilities. Included in other noninterest income for the three and nine months ended September 30, 2020 was a net loss of $145 thousand and a net loss of $309 thousand relating to mortgage banking derivative instruments as compared to a net gain of $30 thousand and a net gain of $249 thousand for the three and nine months ended September 30, 2019. The amount included in other noninterest income for the three and nine months ended September 30, 2020 pertaining to its mortgage banking hedging activities was a net realized gain of $34 thousand and a net gain of $27 thousand, respectively, as compared to a net gain of $277 thousand and a net gain of $228 thousand, respectively, for the three and nine months ended September 30, 2019.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Loans and Allowance for Credit Losses	Note 5. Loans and Allowance for Credit Losses The Bank makes loans to customers primarily in the Washington, D.C. metropolitan area and surrounding communities. A substantial portion of the Bank’s loan portfolio consists of loans to businesses secured by real estate and other business assets. Loans, net of unamortized net deferred fees, at September 30, 2020 (unaudited) and December 31, 2019 are summarized by type as follows: September 30, 2020 December 31, 2019 (dollars in thousands) Amount % Amount % Commercial $ 1,524,613 19 % $ 1,545,906 20 % PPP loans 456,115 6 % — — Income producing - commercial real estate 3,724,839 47 % 3,702,747 50 % Owner occupied - commercial real estate 997,645 13 % 985,409 13 % Real estate mortgage - residential 82,385 1 % 104,221 1 % Construction - commercial and residential 879,144 11 % 1,035,754 14 % Construction - C&I (owner occupied) 140,357 2 % 89,490 1 % Home equity 72,648 1 % 80,061 1 % Other consumer 2,509 — 2,160 — Total loans 7,880,255 100 % 7,545,748 100 % Less: allowance for credit losses (110,215) (73,658) Net loans (1) $ 7,770,040 $ 7,472,090 ________________________________________ (1) Excludes accrued interest receivable of $43.7 million and $21.3 million at September 30, 2020 and December 31, 2019, respectively, which is recorded in other assets. Unamortized net deferred fees amounted to $33.0 million and $25.2 million at September 30, 2020 and December 31, 2019, respectively. As of September 30, 2020 and December 31, 2019, the Bank serviced $94 million and $99 million, respectively, of multifamily FHA loans, SBA loans and other loan participations that are not reflected as loan balances on the Consolidated Balance Sheets. Loan Origination / Risk Management The Company’s goal is to mitigate risks in the event of unforeseen threats to the loan portfolio as a result of economic downturn or other negative influences. Plans for mitigating inherent risks in managing loan assets include: carefully enforcing loan policies and procedures, evaluating each borrower’s business plan during the underwriting process and throughout the loan term, identifying and monitoring primary and alternative sources for loan repayment, and obtaining collateral to mitigate economic loss in the event of liquidation. Specific loan reserves are established based upon credit and/or collateral risks on an individual loan basis. A risk rating system is employed to proactively estimate loss exposure and provide a measuring system for setting general and specific reserve allocations. The composition of the Company’s loan portfolio is heavily weighted toward commercial real estate, both owner occupied and income producing real estate. At September 30, 2020, owner occupied - commercial real estate and construction – C&I (owner occupied) represent approximately 14% of the loan portfolio. At September 30, 2020, non-owner occupied commercial real estate and real estate construction represented approximately 58% of the loan portfolio. The combined owner occupied and commercial real estate and construction loans represent approximately 73% of the loan portfolio. Real estate also serves as collateral for loans made for other purposes, resulting in 79% of all loans being secured by real estate. These loans are underwritten to mitigate lending risks typical of this type of loan such as declines in real estate values, changes in borrower cash flow and general economic conditions. The Bank typically requires a maximum loan to value of 80% and minimum cash flow debt service coverage of 1.15 to 1.0. Personal guarantees may be required, but may be limited. In making real estate commercial mortgage loans, the Bank generally requires that interest rates adjust not less frequently than five years. The Company is also an active traditional commercial lender providing loans for a variety of purposes, including working capital, equipment and account receivable financing. This loan category represents approximately 19% of the loan portfolio at September 30, 2020 and was generally variable or adjustable rate. Commercial loans meet reasonable underwriting standards, including appropriate collateral and cash flow necessary to support debt service. Personal guarantees are generally required, but may be limited. SBA loans represent approximately 1% of the commercial loan category. In originating SBA loans, the Company assumes the risk of non-payment on the unguaranteed portion of the credit as well as potential recourse to the SBA guarantees. The Company generally sells the guaranteed portion of the loan generating noninterest income from the gains on sale, as well as servicing income on the portion participated. SBA loans are subject to the same cash flow analyses as other commercial loans. SBA loans are subject to a maximum loan size established by the SBA as well as internal loan size guidelines. Approximately 6% of the loan portfolio at September 30, 2020 consists of PPP loans to eligible customers. PPP loans are expected to primarily be repaid via forgiveness provisions (under the CARES Act) from the SBA. These loans are fully guaranteed as to principal and interest by the SBA and ultimately by the full faith and credit of the U.S. Government; as a result, they were approved utilizing different underwriting standards than the Bank's other commercial loans. PPP loans are included in the CECL model but do not carry an allowance for credit loss due to the aforementioned government guarantees. Approximately 1% of the loan portfolio at September 30, 2020 consists of home equity loans and lines of credit and other consumer loans. These credits, while making up a small portion of the loan portfolio, demand the same emphasis on underwriting and credit evaluation as other types of loans advanced by the Bank. Approximately 1% of the loan portfolio consists of residential mortgage loans. The repricing duration of these loans was 17 months at September 30, 2020. These credits represent first liens on residential property loans originated by the Bank. While the Bank’s general practice is to originate and sell (servicing released) loans made by its Residential Lending department, from time to time certain loan characteristics do not meet the requirements of third party investors and these loans are instead maintained in the Bank’s portfolio until they are resold to another investor at a later date or mature. Loans are secured primarily by duly recorded first deeds of trust or mortgages. In some cases, the Bank may accept a recorded junior trust position. In general, borrowers will have a proven ability to build, lease, manage and/or sell a commercial or residential project and demonstrate satisfactory financial condition. Additionally, an equity contribution toward the project is customarily required. Construction loans require that the financial condition and experience of the general contractor and major subcontractors be satisfactory to the Bank. Guaranteed, fixed price contracts are required whenever appropriate, along with payment and performance bonds or completion bonds for larger scale projects. Loans intended for residential land acquisition, lot development and construction are made on the premise that the land: 1) is or will be developed for building sites for residential structures, and 2) will ultimately be utilized for construction or improvement of residential zoned real properties, including the creation of housing. Residential development and construction loans will finance projects such as single family subdivisions, planned unit developments, townhouses, and condominiums. Residential land acquisition, development and construction loans generally are underwritten with a maximum term of 36 months, including extensions approved at origination. Commercial land acquisition and construction loans are secured by real property where loan funds will be used to acquire land and to construct or improve appropriately zoned real property for the creation of income producing or owner user commercial properties. Borrowers are generally required to put equity into each project at levels determined by the appropriate Loan Committee. Commercial land acquisition and construction loans generally are underwritten with a maximum term of 24 months. Substantially all construction draw requests must be presented in writing on American Institute of Architects documents and certified either by the contractor, the borrower and/or the borrower’s architect. Each draw request shall also include the borrower’s soft cost breakdown certified by the borrower or their Chief Financial Officer. Prior to an advance, the Bank or its contractor inspects the project to determine that the work has been completed, to justify the draw requisition. Commercial permanent loans are generally secured by improved real property which is generating income in the normal course of operation. Debt service coverage, assuming stabilized occupancy, must be satisfactory to support a permanent loan. The debt service coverage ratio is ordinarily at least 1.15 to 1.0. As part of the underwriting process, debt service coverage ratios are stress tested assuming a 200 basis point increase in interest rates from their current levels. Commercial permanent loans generally are underwritten with a term not greater than 10 years or the remaining useful life of the property, whichever is lower. The preferred term is between 5 to 7 years, with amortization to a maximum of 25 years. The Company’s loan portfolio includes acquisition, development and construction (“ADC”) real estate loans including both investment and owner occupied projects. ADC loans amounted to $1.4 billion at September 30, 2020. A portion of the ADC portfolio, both speculative and non-speculative, includes loan funded interest reserves at origination. ADC loans that provide for the use of interest reserves represent approximately 58% of the outstanding ADC loan portfolio at September 30, 2020. The decision to establish a loan-funded interest reserve is made upon origination of the ADC loan and is based upon a number of factors considered during underwriting of the credit including: (1) the feasibility of the project; (2) the experience of the sponsor; (3) the creditworthiness of the borrower and guarantors; (4) the borrower equity contribution; and (5) the level of collateral protection. When appropriate, an interest reserve provides an effective means of addressing the cash flow characteristics of a properly underwritten ADC loan. The Company recognizes that one of the risks inherent in the use of interest reserves is the potential masking of underlying problems with the project and/or the borrower’s ability to repay the loan. In order to mitigate these inherent risks, the Company employs a series of reporting and monitoring mechanisms on all ADC loans, whether or not an interest reserve is provided, including: (1) construction and development timelines which are monitored on an ongoing basis which track the progress of a given project to the timeline projected at origination; (2) a construction loan administration department independent of the lending function; (3) third party independent construction loan inspection reports; (4) monthly interest reserve monitoring reports detailing the balance of the interest reserves approved at origination and the days of interest carry represented by the reserve balances as compared to the then current anticipated time to completion and/or sale of speculative projects; and (5) quarterly commercial real estate construction meetings among senior Company management, which includes monitoring of current and projected real estate market conditions. If a project has not performed as expected, it is not the customary practice of the Company to increase loan funded interest reserves. The following tables detail activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2020 and 2019. PPP loans are excluded from these tables since they do not carry an allowance for credit loss, as these loans are fully guaranteed as to principal and interest by the SBA, whose guarantee is backed by the full faith and credit of the U.S. Government. Allocation of a portion of the allowance to one category of loans does not restrict the use of the allowance to absorb losses in other categories. Income Producing - Owner Occupied - Real Estate Construction - Commercial Commercial Mortgage - Commercial and Home Other (dollars in thousands) Commercial Real Estate Real Estate Residential Residential Equity Consumer Total Three Months Ended September 30, 2020 Allowance for credit losses: Balance at beginning of period $ 28,078 $ 51,863 $ 12,341 $ 1,550 $ 13,808 $ 1,112 $ 44 $ 108,796 Loans charged-off (187) (3,750) (20) — (1,179) (92) — (5,228) Recoveries of loans previously charged-off 45 — — — — — 13 58 Net loans charged-off (142) (3,750) (20) — (1,179) (92) 13 (5,170) Provision for credit losses (712) 7,327 769 321 (1,088) (13) (15) 6,589 Ending balance $ 27,224 $ 55,440 $ 13,090 $ 1,871 $ 11,541 $ 1,007 $ 42 $ 110,215 Nine Months Ended September 30, 2020 Allowance for credit losses: Balance at beginning of period, prior to adoption of ASC 326 $ 18,832 $ 29,265 $ 5,838 $ 1,557 $ 17,485 $ 656 $ 25 $ 73,658 Impact of adopting ASC 326 892 11,230 4,674 (301) (6,143) 245 17 10,614 Loans charged-off (7,332) (4,300) (20) — (2,947) (92) — (14,691) Recoveries of loans previously charged-off 116 — — — — — 20 136 Net loans (charged-off) recoveries (7,216) (4,300) (20) — (2,947) (92) 20 (14,555) Provision for credit losses 14,716 19,245 2,598 615 3,146 198 (20) 40,498 Ending balance $ 27,224 $ 55,440 $ 13,090 $ 1,871 $ 11,541 $ 1,007 $ 42 $ 110,215 As of September 30, 2020 Allowance for credit losses: Individually evaluated for impairment $ 9,593 $ 5,999 $ 670 $ 1,148 $ 204 $ — $ 3 $ 17,617 Collectively evaluated for impairment 17,631 49,441 12,420 723 11,337 1,007 39 92,598 Ending balance $ 27,224 $ 55,440 $ 13,090 $ 1,871 $ 11,541 $ 1,007 $ 42 $ 110,215 Three Months Ended September 30, 2019 Allowance for credit losses: Balance at beginning of period $ 18,136 $ 27,010 $ 5,756 $ 1,355 $ 19,006 $ 581 $ 242 $ 72,086 Loans charged-off (1,794) — — — — — (1,794) Recoveries of loans previously charged-off 210 — — 15 — 17 242 Net loans charged-off (1,584) — — — 15 — 17 (1,552) Provision for credit losses 1,617 1,517 (158) (3) 251 (6) (32) 3,186 Ending balance $ 18,169 $ 28,527 $ 5,598 $ 1,352 $ 19,272 $ 575 $ 227 $ 73,720 Nine Months Ended September 30, 2019 Allowance for credit losses: Balance at beginning of period $ 15,857 $ 28,034 $ 6,242 $ 965 $ 18,175 $ 599 $ 72 $ 69,944 Loans charged-off (1,799) (5,343) — — — — (2) (7,144) Recoveries of loans previously charged-off 377 302 2 3 52 — 38 774 Net loans (charged-off) recoveries (1,422) (5,041) 2 3 52 — 36 (6,370) Provision for credit losses 3,734 5,534 (646) 384 1,045 (24) 119 10,146 Ending balance $ 18,169 $ 28,527 $ 5,598 $ 1,352 $ 19,272 $ 575 $ 227 $ 73,720 As of September 30, 2019 Allowance for credit losses: Individually evaluated for impairment $ 8,196 $ 1,200 $ 375 $ 650 $ — $ 13 $ — $ 10,434 Collectively evaluated for impairment 9,973 27,327 5,223 702 19,272 562 227 63,286 Ending balance $ 18,169 $ 28,527 $ 5,598 $ 1,352 $ 19,272 $ 575 $ 227 $ 73,720 During the first quarter of 2020, we adopted ASU 2016-13, which replaced the incurred loss methodology for determining our provision for credit losses and allowance for credit losses with an expected loss methodology that is referred to as the CECL model. Upon adoption, the allowance for credit losses was increased by $14.7 million, which included a $4.1 million increase to the allowance for unfunded commitments, with no impact to the consolidated Statement of Income, as the charges were recorded directly to Retained Earnings (net of taxes). We recorded a $6.6 million and $40.7 million provision for credit losses for the three and nine months ended September 30, 2020, respectively, under CECL. We recorded $5.2 million and $14.6 million in net charge-offs during the three and nine months ended September 30, 2020, respectively, compared to $1.6 million and $6.4 million during the three and nine months ended September 30, 2019, respectively. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2020: (dollars in thousands) Business/Other Assets Real Estate Commercial $ 14,075 $ 2,948 Income producing - commercial real estate 3,193 26,063 Owner occupied - commercial real estate — 14,215 Real estate mortgage - residential — 5,335 Construction - commercial and residential — 2,274 Home equity — 109 Other consumer 8 — Total $ 17,276 $ 50,944 Credit Quality Indicators The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company’s primary credit quality indicators are to use an internal credit risk rating system that categorizes loans into pass, watch, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk rated and monitored collectively. These are typically loans to individuals in the classes which comprise the consumer portfolio segment. The following are the definitions of the Company’s credit quality indicators: Pass: Loans in all classes that comprise the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. Management believes that there is a low likelihood of loss related to those loans that are considered pass. Watch: Loan paying as agreed with generally acceptable asset quality; however the obligor’s performance has not met expectations. Balance sheet and/or income statement has shown deterioration to the point that the obligor could not sustain any further setbacks. Credit is expected to be strengthened through improved obligor performance and/or additional collateral within a reasonable period of time. Special Mention: Loans in the classes that comprise the commercial portfolio segment that have potential weaknesses that deserve management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan. The special mention credit quality indicator is not used for classes of loans that comprise the consumer portfolio segment. Management believes that there is a moderate likelihood of some loss related to those loans that are considered special mention. Classified: Classified (a) Substandard – Loans inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the company will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans classified substandard. Classified (b) Doubtful – Loans that have all the weaknesses inherent in a loan classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the assets, its classification as an estimated loss is deferred until its more exact status may be determined. Based on the most recent analysis performed, the risk category of loans by class of loans and year of origination is as follows: September 30, 2020 (dollars in thousands) Prior 2016 2017 2018 2019 2020 Total Commercial Pass 375,848 124,678 306,487 249,287 193,594 155,505 1,405,399 Watch 32,430 3,125 32,399 9,478 3,674 — 81,106 Special Mention 1,302 — — 451 — — 1,753 Substandard 16,915 4,766 2,046 12,421 207 — 36,355 Total 426,495 132,569 340,932 271,637 197,475 155,505 1,524,613 PPP loans Pass — — — — — 456,115 456,115 Total — — — — — 456,115 456,115 Income producing - commercial real estate Pass 756,002 402,690 421,428 685,804 705,972 377,721 3,349,617 Watch 150,215 15,480 74,168 53,616 4,640 — 298,119 Special Mention 203 — — — 47,644 — 47,847 Substandard 13,375 800 4,656 4,883 5,542 — 29,256 Total 919,795 418,970 500,252 744,303 763,798 377,721 3,724,839 Owner occupied - commercial real estate Pass 344,863 105,381 115,144 139,991 74,286 29,169 808,834 Watch 50,018 2,038 2,645 95,171 24,761 — 174,633 Substandard 9,584 764 — 355 3,475 — 14,178 Total 404,465 108,183 117,789 235,517 102,522 29,169 997,645 Real estate mortgage - residential Pass 18,121 3,410 10,377 14,593 23,100 6,837 76,438 Watch 612 — — — — — 612 Substandard 1,181 4,154 — — — — 5,335 Total 19,914 7,564 10,377 14,593 23,100 6,837 82,385 Construction - commercial and residential Pass 32,535 65,703 286,922 314,061 104,335 46,832 850,388 Watch 853 — 25,629 — — — 26,482 Substandard — 1,866 408 — — — 2,274 Total 33,388 67,569 312,959 314,061 104,335 46,832 879,144 Construction - C&I (owner occupied) Pass 11,162 10,577 6,501 29,963 18,761 43,997 120,961 Watch 787 — 2,121 3,251 13,237 — 19,396 Total 11,949 10,577 8,622 33,214 31,998 43,997 140,357 Home Equity Pass 38,049 4,970 8,274 8,314 4,369 6,918 70,894 Watch 1,401 — — — — — 1,401 Substandard 304 — — — 49 — 353 Total 39,754 4,970 8,274 8,314 4,418 6,918 72,648 Other Consumer Pass 2,039 169 108 50 100 33 2,499 Substandard 10 — — — — — 10 Total 2,049 169 108 50 100 33 2,509 Total Recorded Investment $ 1,857,809 $ 750,571 $ 1,299,313 $ 1,621,689 $ 1,227,746 $ 1,123,127 $ 7,880,255 The Company’s credit quality indicators are generally updated annually; however, credits rated watch or below are reviewed more frequently. The following table presents by class and by credit quality indicator, the recorded investment in the Company’s loans and leases as of December 31, 2019: Total (dollars in thousands) Pass Watch Special Mention Substandard Doubtful Loans December 31, 2019 Commercial $ 1,470,636 $ 38,522 $ 11,460 $ 25,288 $ — $ 1,545,906 Income producing - commercial real estate 3,667,585 16,069 — 19,093 — 3,702,747 Owner occupied - commercial real estate 925,800 53,146 — 6,463 — 985,409 Real estate mortgage - residential 98,228 628 — 5,365 — 104,221 Construction - commercial and residential 1,113,734 — — 11,510 — 1,125,244 Home equity 78,626 948 — 487 — 80,061 Other consumer 2,160 — — — — 2,160 Total $ 7,356,769 $ 109,313 $ 11,460 $ 68,206 $ — $ 7,545,748 Nonaccrual and Past Due Loans As part of its comprehensive loan review process, the Loan Committee or Credit Review Committee carefully evaluate loans which are past-due 30 days or more. The Committees make a thorough assessment of the conditions and circumstances surrounding each delinquent loan. The Bank’s loan policy requires that loans be placed on nonaccrual if they are ninety days past-due, unless they are well secured and in the process of collection. Additionally, Credit Administration specifically analyzes the status of development and construction projects, sales activities and utilization of interest reserves in order to carefully and prudently assess potential increased levels of risk requiring additional reserves. The following table presents, by class of loan, an aging analysis and the recorded investments in loans past due as of September 30, 2020 (unaudited) and December 31, 2019: Loans Loans Loans Total Recorded Current 30-59 Days 60-89 Days 90 Days or Total Past Investment in (dollars in thousands) Loans Past Due Past Due More Past Due Due Loans Non-Accrual Loans September 30, 2020 Commercial $ 1,494,038 $ 4,585 $ 10,154 $ — $ 14,739 $ 15,836 $ 1,524,613 PPP loans 456,115 — — — — — 456,115 Income producing - commercial real estate 3,696,949 — 7,822 — 7,822 20,068 3,724,839 Owner occupied - commercial real estate 983,021 — 446 — 446 14,178 997,645 Real estate mortgage - residential 76,798 — — — — 5,587 82,385 Construction - commercial and residential 876,361 — 509 — 509 2,274 879,144 Construction - C&I (owner occupied) 138,837 1,520 — — 1,520 — 140,357 Home equity 71,837 656 46 — 702 109 72,648 Other consumer 2,492 9 — — 9 8 2,509 Total $ 7,796,448 $ 6,770 $ 18,977 $ — $ 25,747 $ 58,060 $ 7,880,255 December 31, 2019 Commercial $ 1,527,134 $ 3,063 $ 781 $ — $ 3,844 $ 14,928 $ 1,545,906 Income producing - commercial real estate 3,687,494 — 5,542 — 5,542 9,711 3,702,747 Owner occupied - commercial real estate 965,938 13,008 — — 13,008 6,463 985,409 Real estate mortgage – residential 95,057 3,533 — — 3,533 5,631 104,221 Construction - commercial and residential 1,113,735 — — — — 11,509 1,125,244 Home equity 79,246 136 192 — 328 487 80,061 Other consumer 2,151 — 9 — 9 — 2,160 Total $ 7,470,755 $ 19,740 $ 6,524 $ — $ 26,264 $ 48,729 $ 7,545,748 The following presents the nonaccrual loans as of September 30, 2020 (unaudited) and December 31, 2019: September 30, 2020 December 31, 2019 Nonaccrual with Nonaccrual with Total Total No Allowance an Allowance Nonaccrual Nonaccrual (dollars in thousands) for Credit Loss for Credit Loss Loans Loans Commercial 572 15,262 15,834 14,928 PPP loans — — — — Income producing - commercial real estate 6,690 13,379 20,069 9,711 Owner occupied - commercial real estate 12,627 1,551 14,178 6,463 Real estate mortgage - residential 1,434 4,154 5,588 5,631 Construction - commercial and residential 1,866 408 2,274 11,509 Home equity 109 — 109 487 Other consumer 5 3 8 — Total (1)(2) $ 23,303 $ 34,757 $ 58,060 $ 48,729 ________________________________________ (1) Excludes TDRs that were performing under their restructured terms totaling $10.1 at September 30, 2020 and $16.6 million at December 31, 2019. (2) Gross interest income of $2.6 million and $2.7 million would have been recorded for the nine months ended September 30, 2020 and 2019, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while the interest actually recorded on such loans was $282 thousand and $598 thousand for the nine months ended September 30, 2020 and 2019, respectively. See Note 1 to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status. Pre Adoption of CECL Loans were considered impaired when, based on current information and events, it was probable the Company would be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. If a loan was impaired, a specific valuation allowance was allocated, if necessary, so that the loan was reported at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment was expected solely from the collateral. The Bank’s loan policy requires that loans be placed on nonaccrual if they are ninety days past-due, unless they are well secured and in the process of collection. Impaired loans, or portions thereof, were charged-off when deemed uncollectible. The following table presents, by class of loan, information related to impaired loans at December 31, 2019: Unpaid Recorded Recorded Average Recorded Interest Income Contractual Investment Investment Total Investment Recognized Principal With No With Recorded Related Year Year (dollars in thousands) Balance Allowance Allowance Investment Allowance to Date To Date December 31, 2019 Commercial $ 15,814 $ 11,858 $ 3,956 $ 15,814 $ 5,714 $ 15,682 $ 270 Income producing - commercial real estate 14,093 2,713 11,380 14,093 2,145 18,133 382 Owner occupied - commercial real estate 7,349 6,388 961 7,349 415 6,107 197 Real estate mortgage - residential 5,631 3,175 2,456 5,631 650 5,638 — Construction - commercial and residential 11,509 11,101 408 11,509 100 8,211 92 Home equity 487 — 487 487 100 487 — Other consumer — — — — — — — Total $ 54,883 $ 35,235 $ 19,648 $ 54,883 $ 9,124 $ 54,258 $ 941 Modifications A modification of a loan constitutes a TDR when the borrower is experiencing financial difficulty and the modification constitutes a concession. The Company offers various types of concessions when modifying a loan. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. The most common change in terms provided by the Company is an extension of an interest-only term. As of September 30, 2020, all performing TDRs were categorized as interest-only modifications . Loans modified in a TDR for the Company may have the financial effect of increasing the specific allowance associated with the loan. An allowance for impaired consumer and commercial loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. In response to the COVID-19 pandemic and its economic impact to our customers, we implemented a short-term modification program that complies with the CARES Act and ASC 310-40 to provide temporary payment relief to those borrowers directly impacted by COVID-19 who were not more than 30 days past due as of December 31, 2019. This program allows for a deferral of payments for 90 days, which we extended for an additional 90 days, for a maximum of 180 days on a cumulative and successive basis. The deferred payments along with interest accrued during the deferral period are due and payable on the maturity date. As of September 30, 2020, we granted ongoing temporary modifications on approximately 321 loans representing approximately $851 million (10.8% of total loans) in outstanding exposure. Additionally, none of the deferrals are reflected in the Company's asset quality measures (i.e. non-performing loans) due to the provision of the CARES Act that permits U.S. financial institutions to temporarily suspend the GAAP requirements to treat such short-term loan modifications as TDR. Similar provisions have also been confirmed by interagency guidance issued by the federal banking agencies and confirmed with staff members of the Financial Accounting Standards Board. The following table presents by class, the recorded investment of loans modified in TDRs held by the Company for the periods ended September 30, 2020 and 2019. Nine Months Ended September 30, 2020 Income Owner Number Producing - Occupied - Construction - of Commercial Commercial Commercial (dollars in thousands) Contracts Commercial Real Estate Real Estate Real Estate Total Troubled debt restructurings Restructured accruing 7 $ 1,297 $ 9,188 $ 37 $ — $ 10,522 Restructured nonaccruing 4 138 6,342 2,370 — 8,850 Total 11 $ 1,435 $ 15,530 $ 2,407 $ — $ 19,372 Specific allowance $ 227 $ 629 $ — $ — $ 856 Restructured and subsequently defaulted $ 138 $ 11,161 $ 2,370 $ — $ 13,669 Nine Months Ended September 30, 2019 Income Owner Number Producing - Occupied - Construction - of Commercial Commercial Commercial (dollars in thousands) Contracts Commercial Real Estate Real Estate Real Estate Total Troubled debt restructurings Restructured accruing 7 $ 898 $ 4,387 $ 3,283 $ — $ 8,568 Restructured nonaccruing 3 1,521 — — — 1,521 Total 10 $ 2,419 $ 4,387 $ 3,283 $ — $ 10,089 Specific allowance $ — $ 1,000 $ — $ — $ 1,000 Restructured and subsequently defaulted $ — $ 2,300 $ — $ — $ 2,300 The Company had eleven TDRs at September 30, 2020 totaling approximately $19.4 million. Seven of these loans totaling approximately $10.5 million are performing under their modified terms. For the first nine months

Leases

Leases	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Leases	Note 6. Leases A lease is defined as a contract that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-2 “Leases” (Topic 842) and has adopted all subsequent ASUs that modified Topic 842. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branch offices, ATM locations, and corporate office space. Substantially all of our leases are classified as operating leases, and as such, were previously not recognized on the Company’s Consolidated Balance Sheets. With the adoption of Topic 842, operating lease agreements were required to be recognized on the Consolidated Balance Sheets as a right-of-use (“ROU”) asset and a corresponding lease liability. As of September 30, 2020, the Company had $27.2 million of operating lease ROU assets and $30.5 million of operating lease liabilities on the Company’s Consolidated Balance Sheets. As of December 31, 2019, the Company had $27.4 million of operating lease ROU assets and $30.0 million of operating lease liabilities on the Company’s Consolidated Balance Sheets. The Company elects not to recognize ROU assets and lease liabilities arising from short-term leases, leases with initial terms of twelve months or less, or equipment leases (deemed immaterial) on the Consolidated Balance Sheets. In accordance with ASC 842 on Leases, a $1.7 million one-time adjustment to rent expense was recorded during the third quarter as our internal review process identified a lease extension that was not originally recorded in the lease balances reflected in the Consolidated Balance Sheets upon implementation of the new lease accounting standard. Our leases contain terms and conditions of options to extend or terminate the lease which are recognized as part of the ROU assets and lease liabilities when an economic benefit to exercise the option exists and there is a 90% probability that the Company will exercise the option. If these criteria are not met, the options are not included in our ROU assets and lease liabilities. As of September 30, 2020, our leases do not contain material residual value guarantees or impose restrictions or covenants related to dividends or the Company’s ability to incur additional financial obligations. As of September 30, 2020, there were no leases that have been signed but did not yet commence as of the reporting date that create significant rights and obligations for the Company. The following table presents lease costs and other lease information. Nine Months Ended (dollars in thousands) September 30, 2020 September 30, 2019 Lease Cost Operating Lease Cost (Cost resulting from lease payments) $ 6,253 $ 5,857 Variable Lease Cost (Cost excluded from lease payments) 720 815 Sublease Income (261) (282) Net Lease Cost $ 6,712 $ 6,390 Operating Lease - Operating Cash Flows (Fixed Payments) $ 6,648 $ 6,382 Right-of-Use Assets - Operating Leases $ 27,180 $ 26,552 Weighted Average Lease Term - Operating Leases 5.27 yrs 5.11 yrs Weighted Average Discount Rate - Operating Leases 4.00 % 4.00 % Future minimum payments for operating leases with initial or remaining terms of more than one year as of September 30, 2020 were as follows: (dollars in thousands) Twelve Months Ended: September 30, 2021 $ 8,384 September 30, 2022 6,592 September 30, 2023 5,296 September 30, 2024 4,595 September 30, 2025 3,847 Thereafter 5,162 Total Future Minimum Lease Payments 33,876 Amounts Representing Interest (3,419) Present Value of Net Future Minimum Lease Payments $ 30,457

Other Derivatives

Other Derivatives	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Other Derivatives	Note 7. Other Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Cash Flow Hedges of Interest Rate Risk The Company uses interest rate swap agreements to assist in its interest rate risk management. The Company’s objective in using interest rate derivatives designated as cash flow hedges is to add stability to interest expense and to better manage its exposure to interest rate movements. To accomplish this objective, the Company utilizes interest rate swaps as part of its interest rate risk management strategy intended to mitigate the potential risk of rising interest rates on the Bank’s cost of funds. The notional amounts of the interest rate swaps designated as cash flow hedges do not represent amounts exchanged by the counterparties, but rather, the notional amount is used to determine, along with other terms of the derivative, the amounts to be exchanged between the counterparties. The interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from one counterparty in exchange for the Company making fixed payments. The Company’s intent is to hedge its exposure to the variability in potential future interest rate conditions on existing financial instruments. For derivatives designated as cash flow hedges, changes in the fair value of the derivative are initially reported in other comprehensive income (outside of earnings), net of tax, and subsequently reclassified to earnings when the hedged transaction affects earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. As of September 30, 2020 and December 31, 2019, the Company had one designated cash flow hedge notional interest rate swap transaction outstanding amounting to $100 million associated with the Company’s variable rate deposits. The Company recognized $829 thousand in noninterest income during March 2019 due to the termination of two of its interest rate swap transactions as part of the Company’s asset liability strategy as well as declines in market interest rates. Amounts reported in accumulated other comprehensive income related to designated cash flow hedge derivatives will be reclassified to interest income/expense as interest payments are made/received on the Company’s variable-rate assets/liabilities. During the next twelve months, the Company estimates (based on existing interest rates) that $842 thousand will be reclassified as an increase in interest expense. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate caps and swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. The Company entered into credit risk participation agreements ("RPAs") with institutional counterparties, under which the Company assumes its pro-rata share of the credit exposure associated with a borrower's performance related to interest rate derivative contracts. The fair value of RPAs is calculated by determining the total expected asset or liability exposure of the derivatives to the borrowers and applying the borrowers' credit spread to that exposure. Total expected exposure incorporates both the current and potential future exposure of the derivatives, derived from using observable inputs, such as yield curves and volatilities. Credit-risk-related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company is exposed to credit risk in the event of nonperformance by the interest rate derivative counterparty. The Company minimizes this risk by entering into derivative contracts with only large, stable financial institutions, and the Company has not experienced, and does not expect, any losses from counterparty nonperformance on the interest rate derivatives. The Company monitors counterparty risk in accordance with the provisions of ASC Topic 815, "Derivatives and Hedging." In addition, the interest rate derivative agreements contain language outlining collateral-pledging requirements for each counterparty. The interest rate derivative agreements detail: 1) that collateral be posted when the market value exceeds certain threshold limits associated with the secured party’s exposure; 2) if the Company defaults on any of its indebtedness (including default where repayment of the indebtedness has not been accelerated by the lender), then the Company could also be declared in default on its derivative obligations; 3) if the Company fails to maintain its status as a well-capitalized institution then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. As of September 30, 2020, the aggregate fair value of the derivative contract with credit risk contingent features (i.e., containing collateral posting or termination provisions based on our capital status) that was in a net liability position totaled $5.5 million. The Company has a minimum collateral posting threshold with its derivative counterparty. As of September 30, 2020, the Company was required to post collateral totalin g $2.2 million with its derivative counterparty against its obligations under this agreement. If the Company had breached any provisions under the agreement at September 30, 2020, it could have been required to settle its obligations under the agreement at the termination value. The table below identifies the balance sheet category and fair value of the Company’s designated cash flow hedge derivative instruments and non-designated hedges as of September 30, 2020 (unaudited) and December 31, 2019. September 30, 2020 December 31, 2019 Notional Balance Sheet Notional Balance Sheet Derivatives designated as hedging instruments (dollars in thousands) Amount Fair Value Category Amount Fair Value Category Interest rate product $ 100,000 $ 910 Other Liabilities $ 100,000 $ 206 Other Liabilities Derivatives not designated as hedging instruments (dollars in thousands Interest rate product $ 176,851 $ 4,306 Other Assets $ 56,806 $ 311 Other Assets Mortgage banking derivatives 409,988 6,015 Other Assets 49,869 280 Other Assets 586,839 10,321 586,839 10,321 106,675 591 Interest rate product $ 176,851 $ 4,561 Other Liabilities $ 56,806 $ 319 Other Liabilities Other Contracts 27,031 136 Other Liabilities 27,384 86 Other Liabilities Mortgage banking derivatives $ — $ — Other Liabilities $ 49,869 $ 66 Other Liabilities $ 203,882 $ 4,697 Other Liabilities $ 134,059 $ 471 Other Liabilities The table below presents the pre-tax net gains (losses) of the Company’s designated cash flow hedges for the three and nine months ended September 30, 2020 and 2019: The Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income Location of Gain or (Loss) Amount of Gain or (Loss) Amount of Gain (Loss) Recognized in Recognized from Reclassified from Accumulated OCI OCI on Derivative Accumulated Other into Income Derivatives in Subtopic 815-20 Hedging Three Months Ended September 30, Comprehensive Income into Three Months Ended September 30, Relationships (dollars in thousands) 2020 2019 Income 2020 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Products 31 (107) Interest Expense (389) 264 Total 31 (107) (389) 264 Location of Gain or (Loss) Recognized from Accumulated Other Amount of Gain or (Loss) Amount of (Loss) Recognized in Comprehensive Income into Reclassified from Accumulated OCI OCI on Derivative Income into Income Derivatives in Subtopic 815-20 Hedging Nine Months Ended September 30, Nine Months Ended September 30, Relationships (dollars in thousands) 2020 2019 2020 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Products (1,517) (1,974) Interest Expense (755) 1,039 Interest Rate Products — — Gain on sale of investment securities — 829 Total (1,517) (1,974) (755) 1,868 The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the three and nine months ended September 30, 2020 and 2019: The Effect of Fair Value and Cash Flow Hedge Accounting on the Statements of Income Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships (in 000's) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 2019 Interest Interest Interest Gain on sale of Expense Expense Expense investment securities Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of fair value or cash flow hedges are recorded $ 389 $ 264 $ 755 $ 1,039 $ 829 Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 389 $ 264 $ 755 $ 1,039 $ — Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring $ — $ — $ — $ — $ 829 Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component $ 389 $ 264 $ 755 $ 1,039 $ 829 Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component $ — $ — $ — $ — $ — Effect of Derivatives Not Designated as Hedging Instruments on the Statements of Income Amount of Income (Loss) Amount of Income (Loss) Recognized in Income on Recognized in Income on Location of Derivative Derivative Derivatives Not Designated as Hedging (Loss) Recognized in Three Months Ended September 30, Nine Months Ended September 30, Instruments under Subtopic 815-20 Income on Derivative 2020 2019 2020 2019 Interest Rate Products Other income / (expense) (40) (7) (326) (7) Mortgage banking derivatives Other income / (expense) 6,015 (380) 6,015 316 Other Contracts Other income / (expense) (13) (16) (77) (58) Total 5,962 (403) 5,612 251 Balance Sheet Offsetting : Our designated cash flow hedge interest rate derivatives are eligible for offset in the Consolidated Balance Sheets and are subject to master netting arrangements. Our derivative transactions with counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. The Company generally offsets such financial instruments for financial reporting purposes. The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s cash flow hedge derivatives as of September 30, 2020 (unaudited) and December 31, 2019. As of September 30, 2020 Gross Gross Amounts Not Offset in the Gross Amounts Net Amounts of Assets presented in the Balance Sheet Balance Sheet Amounts of Offset in Cash Offsetting of Derivative Assets (dollars in thousands) Recognized the Balance Financial Collateral Net Assets Sheet Instruments Posted Amount Derivatives $ 4,306 $ — $ 4,306 $ — $ — $ 4,306 Gross Gross Amounts Not Offset in the Gross Amounts Net Amounts of Liabilities presented in the Balance Sheet Balance Sheet Amounts of Offset in Cash Recognized the Balance Financial Collateral Net Offsetting of Derivative Liabilities (dollars in thousands) Liabilities Sheet Instruments Posted Amount Derivatives $ 5,216 $ — $ 5,216 $ — $ 230 $ 4,986 As of December 31, 2019 Gross Gross Amounts Not Offset in the Gross Amounts Net Amounts of Assets presented in the Balance Sheet Balance Sheet Amounts of Offset in Cash Offsetting of Derivative Assets (dollars in thousands) Recognized the Balance Financial Collateral Net Assets Sheet Instruments Posted Amount Derivatives $ 311 — $ 311 — — $ 311 Gross Gross Amounts Not Offset in the Gross Amounts Net Amounts of Liabilities presented in the Balance Sheet Balance Sheet Amounts of Offset in Cash Recognized the Balance Financial Collateral Net Offsetting of Derivative Liabilities (dollars in thousands) Liabilities Sheet Instruments Posted Amount Derivatives $ 611 — $ 611 — $ 500 $ 111

Other Real Estate Owned

Other Real Estate Owned	9 Months Ended
	Sep. 30, 2020
Real Estate [Abstract]
Other Real Estate Owned	Note 8. Other Real Estate Owned The activity within Other Real Estate Owned (“OREO”) for the three and nine months ended September 30, 2020 and 2019 (unaudited) is presented in the table below. There were no residential real estate loans in the process of foreclosure as of September 30, 2020. For the three and nine months ended September 30, 2020 there was one sale of an OREO property, while there were zero sales in the same periods in 2019. Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2020 2019 2020 2019 Beginning Balance $ 8,237 $ 1,394 $ 1,487 $ 1,394 Real estate acquired from borrowers — 93 6,750 93 Properties sold (3,250) — (3,250) — Ending Balance $ 4,987 $ 1,487 $ 4,987 $ 1,487

Long-Term Borrowings

Long-Term Borrowings	9 Months Ended
	Sep. 30, 2020
Long-term Debt, Unclassified [Abstract]
Long-Term Borrowings	Note 9. Long-Term Borrowings The following table presents information related to the Company’s long-term borrowings as of September 30, 2020 (unaudited) and December 31, 2019. (dollars in thousands) September 30, 2020 December 31, 2019 Subordinated Notes, 5.75% $ 70,000 $ 70,000 Subordinated Notes, 5.0% 150,000 150,000 FHLB Advance, 1.81% 50,000 — Less: unamortized debt issuance costs (2,020) (2,313) Long-term borrowings $ 267,980 $ 217,687 On August 5, 2014, the Company completed the sale of $70.0 million of its 5.75% subordinated notes, due September 1, 2024 (the “2024 Notes”). The 2024 Notes were offered to the public at par and qualify as Tier 2 capital for regulatory purposes to the fullest extent permitted under the Basel III Rule capital requirements. The net proceeds were approximately $68.8 million, which includes $1.2 million in deferred financing costs which are being amortized over the life of the 2024 Notes. On July 26, 2016, the Company completed the sale of $150.0 million of its 5.00% Fixed-to-Floating Rate Subordinated Notes, due August 1, 2026 (the “2026 Notes”). The 2026 Notes were offered to the public at par and qualify as Tier 2 capital for regulatory purposes to the fullest extent permitted under the Basel III Rule capital requirements. The net proceeds were approximately $147.4 million, which includes $2.6 million in deferred financing costs which are being amortized over the life of the 2026 Notes. On February 26, 2020, the Bank borrowed $50 million dollars under its borrowing arrangement with the Federal Home Loan Bank of Atlanta at a fixed rate of 1.81% with a maturity date of February 26, 2030 as part of the overall asset liability strategy and to support loan growth.

Net Income per Common Share

Net Income per Common Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Net Income per Common Share	Note 10. Net Income per Common Share The calculation of net income per common share for the three and nine months ended September 30, 2020 and 2019 (unaudited) was as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars and shares in thousands, except per share data) 2020 2019 2020 2019 Basic: Net income $ 41,346 $ 36,495 $ 93,325 $ 107,487 Average common shares outstanding 32,229 34,233 32,434 34,418 Basic net income per common share $ 1.28 $ 1.07 $ 2.88 $ 3.12 Diluted: Net income $ 41,346 $ 36,495 $ 93,325 $ 107,487 Average common shares outstanding 32,229 34,233 32,434 34,418 Adjustment for common share equivalents 22 23 24 33 Average common shares outstanding-diluted 32,251 34,256 32,458 34,451 Diluted net income per common share $ 1.28 $ 1.07 $ 2.88 $ 3.12 Anti-dilutive shares 26 2 26 20

Other Comprehensive Income

Other Comprehensive Income	9 Months Ended
	Sep. 30, 2020
Other Comprehensive Income
Other Comprehensive Income	Note 11. Other Comprehensive Income The following table presents the components of other comprehensive income (loss) for the three and nine months ended September 30, 2020 and 2019. (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended September 30, 2020 Net unrealized loss on securities available-for-sale $ (840) $ 216 $ (624) Less: Reclassification adjustment for net gains included in net income (115) 29 (86) Total unrealized loss (955) 245 (710) Net unrealized gain on derivatives 31 (7) 24 Less: Reclassification adjustment for loss included in net income 389 (100) 289 Total unrealized gain 420 (107) 313 Other Comprehensive Income $ (535) $ 138 $ (397) Three Months Ended September 30, 2019 Net unrealized gain on securities available-for-sale $ 1,585 $ 411 $ 1,174 Less: Reclassification adjustment for net gains included in net income (153) (43) (110) Total unrealized gain 1,432 368 1,064 Net unrealized gain on derivatives 24 (13) 11 Less: Reclassification adjustment for gain included in net income (285) (80) (205) Total unrealized loss (261) 67 (194) Other Comprehensive Income $ 1,171 $ 301 $ 870 Nine Months Ended September 30, 2020 Net unrealized gain on securities available-for-sale $ 18,402 $ (5,048) $ 13,354 Less: Reclassification adjustment for net gains included in net income (1,650) 419 (1,231) Total unrealized gain 16,752 (4,629) 12,123 Net unrealized loss on derivatives (1,986) 662 (1,324) Less: Reclassification adjustment for gain included in net income 688 (175) 513 Total unrealized loss (1,298) 487 (811) Other Comprehensive Income $ 15,454 $ (4,142) $ 11,312 Nine Months Ended September 30, 2019 Net unrealized gain on securities available-for-sale $ 17,712 $ (4,572) $ 13,140 Less: Reclassification adjustment for net gains included in net income (1,628) (438) (1,190) Total unrealized gain 16,084 (5,010) 11,950 Net unrealized loss on derivatives (2,210) 546 (1,664) Less: Reclassification adjustment for gain included in net income (1,879) (505) (1,374) Total unrealized loss (4,089) 41 (3,038) Other Comprehensive Income $ 11,995 $ (4,969) $ 8,912 The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2020 and 2019. Securities Accumulated Other Available Comprehensive Income (dollars in thousands) For Sale Derivatives (Loss) Three Months Ended September 30, 2020 Balance at Beginning of Period $ 15,942 $ (1,274) $ 14,668 Other comprehensive income (loss) before reclassifications (624) 24 (600) Amounts reclassified from accumulated other comprehensive income (loss) (86) 289 203 Net other comprehensive income (loss) during period (710) 313 (397) Balance at End of Period $ 15,232 $ (961) $ 14,271 Securities Accumulated Other Available Comprehensive Income (dollars in thousands) For Sale Derivatives (Loss) Three Months Ended September 30, 2019 Balance at Beginning of Period $ 3,842 $ (75) $ 3,767 Other comprehensive income (loss) before reclassifications 1,174 11 1,185 Amounts reclassified from accumulated other comprehensive loss (110) (205) (315) Net other comprehensive income (loss) during period 1,064 (194) 870 Balance at End of Period $ 4,906 $ (269) $ 4,637 Securities Accumulated Other Available Comprehensive Income (dollars in thousands) For Sale Derivatives (Loss) Nine Months Ended September 30, 2020 Balance at Beginning of Period $ 3,109 $ (150) $ 2,959 Other comprehensive income (loss) before reclassifications 13,354 (1,324) 12,030 Amounts reclassified from accumulated other comprehensive income (loss) (1,231) 513 (718) Net other comprehensive income (loss) during period 12,123 (811) 11,312 Balance at End of Period $ 15,232 $ (961) $ 14,271 Securities Accumulated Other Available Comprehensive Income (dollars in thousands) For Sale Derivatives (Loss) Nine Months Ended September 30, 2019 Balance at Beginning of Period $ (7,044) $ 2,769 $ (4,275) Other comprehensive income (loss) before reclassifications 13,140 (1,664) 11,476 Amounts reclassified from accumulated other comprehensive loss (1,190) (1,374) (2,564) Net other comprehensive income (loss) during period 11,950 (3,038) 8,912 Balance at End of Period $ 4,906 $ (269) $ 4,637 The following tables present the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2020 and 2019. Amount Reclassified from Accumulated Other Affected Line Item in Details about Accumulated Other Comprehensive (Loss) Income the Statement Where Comprehensive Income Components Three Months Ended September 30, Net Income is Presented (dollars in thousands) 2020 2019 Realized gain on sale of investment securities $ 115 $ 153 Gain on sale of investment securities Interest income derivative deposits (389) 285 Interest expense on deposits Income tax expense 71 (123) Income Tax Expense Total Reclassifications for the Period $ (203) $ 315 Net Income Amount Reclassified from Accumulated Other Affected Line Item in Details about Accumulated Other Comprehensive (Loss) Income the Statement Where Comprehensive Income Components Nine Months Ended September 30, Net Income is Presented (dollars in thousands) 2020 2019 Realized gain on sale of investment securities $ 1,650 $ 1,628 Gain on sale of investment securities Realized gain on swap termination — 829 Gain on sale of investment securities Interest income derivative deposits (688) 1,050 Interest expense on deposits Income tax expense (244) (943) Income Tax Expense Total Reclassifications for the Period $ 718 $ 2,564 Net Income

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 12. Fair Value Measurements The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC Topic 820, “Fair Value Measurements and Disclosures,” establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Quoted prices in active exchange markets for identical assets or liabilities; also includes certain U.S. Treasury and other U.S. Government and agency securities actively traded in over-the-counter markets. Level 2 Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data; also includes derivative contracts whose value is determined using a pricing model with observable market inputs or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency securities, corporate debt securities, derivative instruments, and residential mortgage loans held for sale. Level 3 Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for single dealer nonbinding quotes not corroborated by observable market data. This category generally includes certain private equity investments, retained interests from securitizations, and certain collateralized debt obligations. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 (unaudited) and December 31, 2019. Significant Significant Other Other Observable Unobservable Quoted Prices Inputs Inputs Total (dollars in thousands) (Level 1) (Level 2) (Level 3) (Fair Value) September 30, 2020 Assets: Investment securities available-for-sale: U. S. agency securities $ — $ 131,286 $ — $ 131,286 Residential mortgage backed securities — 716,643 — 716,643 Municipal bonds — 94,713 — 94,713 Corporate bonds — 33,230 1,500 34,730 Other equity investments — — 198 198 Loans held for sale — 79,084 — 79,084 Interest Rate Caps — 4,233 — 4,233 Mortgage banking derivatives — — 6,015 6,015 Total assets measured at fair value on a recurring basis as of September 30, 2020 $ — $ 1,059,189 $ 7,713 $ 1,066,902 Liabilities: Interest rate swap derivatives $ — $ 910 $ — $ 910 Derivative liability — 136 — 136 Interest Rate Caps — 4,487 — 4,487 Total liabilities measured at fair value on a recurring basis as of September 30, 2020 $ — $ 5,533 $ — $ 5,533 December 31, 2019 Assets: Investment securities available-for-sale: U. S. agency securities $ — $ 179,794 $ — $ 179,794 Residential mortgage backed securities — 543,852 — 543,852 Municipal bonds — 73,931 — 73,931 Corporate bonds — — 10,733 10,733 U.S. Treasury — 34,855 — 34,855 Other equity investments — — 198 198 Loans held for sale — 56,707 — 56,707 Interest Rate Caps — 317 — 317 Mortgage banking derivatives — — 280 280 Total assets measured at fair value on a recurring basis as of December 31, 2019 $ — $ 889,456 $ 11,211 $ 900,667 Liabilities: Interest rate swap derivatives $ — $ 203 $ — $ 203 Derivative liability — 86 — 86 Interest Rate Caps — 312 — 312 Mortgage banking derivatives — — 66 66 Total liabilities measured at fair value on a recurring basis as of December 31, 2019 $ — $ 601 $ 66 $ 667 Investment securities available-for-sale: Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange such as the New York Stock Exchange, Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include U.S. agency debt securities, mortgage backed securities issued by Government Sponsored Entities and municipal bonds. Securities classified as Level 3 include securities in less liquid markets, the carrying amounts approximate the fair value. Loans held for sale : The Company has elected to carry loans held for sale at fair value. This election reduces certain timing differences in the Consolidated Statement of Income and better aligns with the management of the portfolio from a business perspective. Fair value is derived from secondary market quotations for similar instruments. Gains and losses on sales of residential mortgage loans are recorded as a component of noninterest income in the Consolidated Statements of Income. Gains and losses on sales of multifamily FHA securities are recorded as a component of noninterest income in the Consolidated Statements of Income. As such, the Company classifies loans subjected to fair value adjustments as Level 2 valuation. The following tables summarize the difference between the aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value as of September 30, 2020 (unaudited) and December 31, 2019. September 30, 2020 Aggregate Unpaid Principal (dollars in thousands) Fair Value Balance Difference Loans held for sale $ 79,084 $ 77,572 $ 1,512 December 31, 2019 Aggregate Unpaid Principal (dollars in thousands) Fair Value Balance Difference Loans held for sale $ 56,707 $ 55,834 $ 873 There were no residential mortgage loans held for sale that were 90 or more days past due or on nonaccrual status as of September 30, 2020 or December 31, 2019. Interest rate swap derivatives: These derivative instruments consist of interest rate swap agreements, which are accounted for as cash flow hedges under ASC 815. The Company’s derivative position is classified within Level 2 of the fair value hierarchy and is valued using models generally accepted in the financial services industry and that use actively quoted or observable market input values from external market data providers and/or non-binding broker-dealer quotations. The fair value of the derivatives is determined using discounted cash flow models. These models’ key assumptions include the contractual terms of the respective contract along with significant observable inputs, including interest rates, yield curves, nonperformance risk and volatility. Derivative contracts are executed with a Credit Support Annex, which is a bilateral agreement that requires collateral postings when the market value exceeds certain threshold limits. These agreements protect the interests of the Company and its counterparties should either party suffer a credit rating deterioration. Credit risk participation agreements : The Company enters into credit risk participation agreements (“RPAs”) with institutional counterparties, under which the Company assumes its pro-rata share of the credit exposure associated with a borrower’s performance related to interest rate derivative contracts. The fair value of RPAs is calculated by determining the total expected asset or liability exposure of the derivatives to the borrowers and applying the borrowers’ credit spread to that exposure. Total expected exposure incorporates both the current and potential future exposure of the derivatives, derived from using observable inputs, such as yield curves and volatilities. Accordingly, RPAs fall within Level 2. Interest rate caps: The Company entered into an interest rate cap agreement ("cap") with an institutional counterparty, under which the Company will receive cash if and when market rates exceed the cap's strike rate. The fair value of the cap is calculated by determining the total expected asset or liability exposure of the derivatives. Total expected exposure incorporates both the current and potential future exposure of the derivative, derived from using observable inputs, such as yield curves and volatilities. Accordingly, the cap falls within Level 2. Mortgage banking derivatives for loans settled on a mandatory basis: The Company relied on a third-party pricing service to value its mortgage banking derivative financial assets and liabilities, which the Company classifies as a Level 3 valuation. The external valuation model to estimate the fair value of its interest rate lock commitments to originate residential mortgage loans held for sale includes grouping the interest rate lock commitments by interest rate and terms, applying an estimated pull-through rate based on historical experience, and then multiplying by quoted investor prices determined to be reasonably applicable to the loan commitment groups based on interest rate, terms, and rate lock expiration dates of the loan commitment groups. The Company also relies on an external valuation model to estimate the fair value of its forward commitments to sell residential mortgage loans (i.e., an estimate of what the Company would receive or pay to terminate the forward delivery contract based on market prices for similar financial instruments), which includes matching specific terms and maturities of the forward commitments against applicable investor pricing. Mortgage banking derivative for loans settled best efforts basis : The significant unobservable input (Level 3) used in the fair value measurement of the Company's interest rate lock commitments is the pull through ratio, which represents the percentage of loans currently in a lock position which management estimates will ultimately close. An increase in the pull through ratio (i.e. higher percentage of loans are estimated to close) will increase the gain or loss. The pull through ratio is largely dependent on the loan processing stage that a loan is currently in. The pull through rate is computed by the Company's secondary marketing consultant using historical data and the ratio is periodically reviewed by the Company for reasonableness. The following is a reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3): Investment Mortgage Balancing (dollars in thousands) Securities Derivatives Total Assets: Beginning balance at January 1, 2020 $ 10,931 $ 280 $ 11,211 Realized gain (loss) included in earnings — 5,735 5,735 Unrealized gain included in other comprehensive income — — — Purchases of available-for-sale securities — — — Principal redemption — — — Migrated to Level 2 valuation $ (9,233) $ — $ (9,233) Ending balance at September 30, 2020 $ 1,698 $ 6,015 $ 7,713 Liabilities: Beginning balance at January 1, 2020 $ — $ 66 $ 66 Realized loss included in earnings — (66) (66) Principal redemption — — — Ending balance at September 30, 2020 $ — $ — $ — Investment Mortgage Balancing (dollars in thousands) Securities Derivatives Total Assets: Beginning balance at January 1, 2019 $ 9,794 $ 229 $ 10,023 Realized (loss) gain included in earnings (20) 51 31 Unrealized gain included in other comprehensive income 131 — 131 Purchases of available-for-sale securities 4,030 — 4,030 Principal redemption (3,004) — (3,004) Ending balance at December 31, 2019 $ 10,931 $ 280 $ 11,211 Liabilities: Beginning balance at January 1, 2019 $ — $ 269 $ 269 Realized gain included in earnings — (203) (203) Principal redemption — — — Ending balance at December 31, 2019 $ — $ 66 $ 66 The other equity and debt securities classified as Level 3 consist of one corporate bond of a local banking company and equity investments in the form of common stock of two local banking companies which are not publicly traded, and for which the carrying amounts approximate fair value. Form Level 3 assets measured at fair value on a recurring or nonrecurring basis as of September 30, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: September 30, 2020 December 31, 2019 (dollars in thousands) Valuation Technique Description Range Weighted Average (1) Fair Value Weighted Average (1) Fair Value Mortgage banking derivatives Pricing Model Pull Through Rate 69.9% - 81.4% 78.44 % $ 6,015 0 76.25 % 76.25 $ 280 (1) Unobservable inputs for mortgage banking derivatives were weighted by loan amount. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company measures certain assets at fair value on a nonrecurring basis and the following is a general description of the methods used to value such assets. At September 30, 2020, substantially all of the Company’s individually evaluated loans were evaluated based upon the fair value of the collateral. In accordance with ASC Topic 820, individually evaluated loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the loan as nonrecurring Level 3. Pre Adoption of CECL : The Company did not record loans at fair value on a recurring basis; however, from time to time, a loan was considered impaired and an allowance for loan loss was established. The Company considered a loan impaired when it was probable that the Company would be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. Management had determined that nonaccrual loans and loans that had their terms restructured in a TDR met this impaired loan definition. Once a loan was identified as individually impaired, management measures impairment in accordance with ASC Topic 310, “Receivables.” The fair value of impaired loans was estimated using one of several methods, including the collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Those impaired loans not requiring a specific allowance represented loans for which the fair value of expected repayments or collateral exceeded the recorded investment in such loans. Other real estate owned : Other real estate owned is initially recorded at fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral, which the Company classifies as a Level 3 valuation. Assets measured at fair value on a nonrecurring basis are included in the table below: Significant Significant Other Other Observable Unobservable Quoted Prices Inputs Inputs Total (dollars in thousands) (Level 1) (Level 2) (Level 3) (Fair Value) September 30, 2020 Commercial $ — $ 824 $ 16,307 $ 17,131 Income producing - commercial real estate — 22,220 7,036 29,256 Owner occupied - commercial real estate — 11,535 2,680 14,215 Real estate mortgage - residential — 1,893 3,442 5,335 Construction - commercial and residential — — 2,274 2,274 Home equity — 109 — 109 Other consumer — — 8 8 Other real estate owned — — — — Total assets measured at fair value on a nonrecurring basis as of September 30, 2020 $ — $ 36,581 $ 31,747 $ 68,328 Significant Significant Other Other Observable Unobservable Quoted Prices Inputs Inputs Total (dollars in thousands) (Level 1) (Level 2) (Level 3) (Fair Value) December 31, 2019 Impaired loans: Commercial $ — $ — $ 10,100 $ 10,100 Income producing - commercial real estate — — 11,948 11,948 Owner occupied - commercial real estate — — 6,934 6,934 Real estate mortgage - residential — — 4,981 4,981 Construction - commercial and residential — — 11,409 11,409 Home equity — — 387 387 Other real estate owned — — 1,487 1,487 Total assets measured at fair value on a nonrecurring basis as of December 31, 2019 $ — $ — $ 47,246 $ 47,246 Fair Value of Financial Instruments The Company discloses fair value information about financial instruments for which it is practicable to estimate the value, whether or not such financial instruments are recognized on the balance sheet. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by quoted market price, if one exists. The estimated fair value of the Company’s financial instruments at September 30, 2020 (unaudited) and December 31, 2019 are as follows: Fair Value Measurements Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying (dollars in thousands) Value Fair Value September 30, 2020 Assets Cash and due from banks $ 7,559 $ 7,559 $ — $ 7,559 $ — Federal funds sold 30,830 30,830 — 30,830 — Interest bearing deposits with other banks 818,719 818,719 — 818,719 — Investment securities 977,570 977,570 — 976,070 1,500 Federal Reserve and Federal Home Loan Bank stock 40,061 40,061 — 40,061 — Loans held for sale 79,084 79,084 — 79,084 — Loans 7,770,040 7,733,020 — — 7,733,020 Bank owned life insurance 76,326 76,326 — 76,326 — Annuity investment 14,541 14,541 — 14,541 — Mortgage banking derivatives 6,015 6,015 — — 6,015 Interest Rate Caps 4,233 4,233 — 4,233 — Liabilities Noninterest bearing deposits 2,384,108 2,384,108 — 2,384,108 — Interest bearing deposits 4,780,160 4,780,160 — 4,780,160 — Certificates of deposit 1,014,517 1,033,703 — 1,033,703 — Customer repurchase agreements 24,293 24,293 — 24,293 — Borrowings 567,980 573,641 — 573,641 — Interest rate swap derivatives 910 910 — 910 — Derivative liability 136 136 — 136 — Interest Rate Caps 4,487 4,487 — 4,487 — December 31, 2019 Assets Cash and due from banks $ 7,539 $ 7,539 $ — $ 7,539 $ — Federal funds sold 38,987 38,987 — 38,987 — Interest bearing deposits with other banks 195,447 195,447 — 195,447 — Investment securities 843,363 843,363 — 832,432 10,931 Federal Reserve and Federal Home Loan Bank stock 35,194 35,194 — 35,194 — Loans held for sale 56,707 56,707 — 56,707 — Loans 7,472,090 7,550,249 — — 7,550,249 Bank owned life insurance 75,724 75,724 — 75,724 — Annuity investment 14,697 14,697 — 14,697 — Interest Rate Caps 280 280 — 280 — Liabilities Noninterest bearing deposits 2,064,367 2,064,367 — 2,064,367 — Interest bearing deposits 3,876,985 3,876,985 — 3,876,985 — Certificates of deposit 1,283,039 1,291,688 — 1,291,688 — Customer repurchase agreements 30,980 30,980 — 30,980 — Borrowings 467,687 328,330 — 328,330 — Interest rate swap derivatives 203 203 — 203 — Derivative liability 86 86 — 86 — Interest Rate Caps 312 312 — 312 — Mortgage banking derivatives 66 66 — — 66

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Consolidated Financial Statements include the accounts of Eagle Bancorp, Inc. and its subsidiaries (the “Company”). Active subsidiaries include: EagleBank (the “Bank”), Eagle Insurance Services, LLC, Bethesda Leasing, LLC, and Landroval Municipal Finance, Inc., with all significant intercompany transactions eliminated. The Consolidated Financial Statements of the Company included herein are unaudited. The Consolidated Financial Statements reflect all adjustments, consisting of normal recurring accruals that in the opinion of management, are necessary to present fairly the results for the periods presented. The amounts as of and for the year ended December 31, 2019 were derived from audited Consolidated Financial Statements. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). In addition to the “Critical Accounting Policies” impacted by the new Current Expected Credit Loss (“CECL”) standard described below, the Company applies the accounting policies contained in Note 1 to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The Company believes that the disclosures are adequate to make the information presented not misleading. Certain reclassifications have been made to amounts previously reported to conform to the current period presentation.
Nature of Operations	Nature of OperationsThe Company, through the Bank, conducts a full service community banking business, primarily in Northern Virginia, Suburban Maryland, and Washington, D.C. The primary financial services offered by the Bank include real estate, commercial and consumer lending, as well as traditional deposit and repurchase agreement products. The Bank is also active in the origination and sale of residential mortgage loans, the origination of small business loans, and the origination, securitization and sale of multifamily Federal Housing Administration (“FHA”) loans. The guaranteed portion of small business loans, guaranteed by the Small Business Administration (“SBA”), is typically sold to third party investors in a transaction apart from the loan’s origination. The Bank offers its products and services through twenty banking offices, five lending centers and various electronic capabilities, including remote deposit services and digital banking services. Eagle Insurance Services, LLC, a subsidiary of the Bank, offers access to insurance products and services through a referral program with a third party insurance broker. Landroval Municipal Finance, Inc., a subsidiary of the Bank, focuses on lending to municipalities by buying debt on the public market as well as direct purchase issuance. Bethesda Leasing, a subsidiary of the Bank, holds title to repossessed real estate.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for credit losses, the fair value of financial instruments and the status of contingencies are particularly susceptible to significant change.
Risks and Uncertainties	Risks and Uncertainties The outbreak of COVID-19 has adversely impacted a broad range of industries in which the Company’s customers operate and could impair their ability to fulfill their financial obligations to the Company. The World Health Organization has declared COVID-19 to be a global pandemic indicating that almost all public commerce and related business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The spread of the outbreak has caused significant disruptions in the U.S. economy and has disrupted banking and other financial activity in the areas in which the Company operates. While there has been no material adverse impact to the Company’s employees and operations to date, COVID-19 could still potentially create widespread business continuity or credit issues for the Company depending on how much longer the pandemic lasts. Congress, the President, and the Federal Reserve have taken several actions designed to cushion the economic fallout. Most notably, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was signed into law at the end of March 2020 as a $2 trillion legislative package. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The package also includes extensive emergency funding for hospitals and providers. In addition to the general impact of COVID-19, certain provisions of the CARES Act as well as other follow-up stimulus legislative and regulatory relief efforts have had and are expected to continue to have a material impact on the Company’s operations. The Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to control and manage COVID-19 escalates further or is unsuccessful, the Company could experience a material adverse effect on its business, financial condition, results of operations and cash flows. While it is not possible to know the full universe or extent that the impact of COVID-19, and resulting measures to curtail its spread, will have on the Company’s operations, the Company is disclosing potentially material items of which it is aware. Financial position and results of operations The Company’s fee income has been and could be further reduced due to COVID-19. In keeping with guidance from regulators, the Company is actively working with COVID-19 affected customers to waive fees from a variety of sources, such as, but not limited to, insufficient funds and overdraft fees, ATM fees, account maintenance fees, etc. These reductions in fees are thought, at this time, to be temporary in conjunction with the length of the expected COVID-19 related economic crisis. At this time, the Company is unable to project the full extent of the materiality of such an impact, but recognizes the breadth of the economic impact is likely to impact its fee income in future periods. The Company’s interest income could be reduced due to COVID-19. In keeping with guidance from regulators, the Company is actively working with COVID-19 affected borrowers to defer their payments, interest, and fees. While interest and fees will still accrue to income, through normal GAAP accounting, should eventual credit losses on these deferred payments emerge, interest income and fees accrued would need to be reversed. In such a scenario, interest income in future periods could be negatively impacted. At this time the Company is unable to project the full extent of the materiality of such an impact, but recognizes the breadth of the economic impact may affect its borrowers’ ability to repay in future periods. Capital and liquidity While the Company believes that it has sufficient capital to withstand an extended economic recession brought about by COVID-19, its reported and regulatory capital ratios could be adversely impacted by further credit losses. The Company maintains access to multiple sources of liquidity. Wholesale funding markets have remained open to us, and rates for short term funding have recently been very low. If funding costs were to become elevated for an extended period of time, it could have an adverse effect on the Company’s net interest margin. If an extended recession caused large numbers of the Company’s customers to withdraw their funds, the Company might become more reliant on volatile or more expensive sources of funding. Asset valuation Currently, the Company does not expect COVID-19 to affect its ability to account timely for the assets on its balance sheet; however, this could change in future periods. While certain valuation assumptions and judgments will change to account for pandemic-related circumstances such as widening credit spreads, the Company does not anticipate significant changes in methodology used to determine the fair value of assets measured in accordance with GAAP. COVID-19 could cause a further and sustained decline in the Company’s stock price. As of June 30, 2020, the Company performed a qualitative assessment to determine whether it was more likely than not that the fair value of the reporting unit was less than its carrying amount. As of June 30, 2020, a triggering event was deemed to have occurred as a result of COVID-19 and, accordingly, a step one assessment was performed by comparing the fair value of the reporting unit with its carrying amount (including goodwill). Determining the fair value of a reporting unit under the goodwill impairment test is subjective and often involves the use of significant estimates and assumptions. Estimates of fair value are primarily determined using discounted cash flows, market comparisons and recent transactions. These approaches use significant estimates and assumptions including projected future cash flows, discount rates reflecting the market rate of return, projected growth rates and determination and evaluation of appropriate market comparable factors. Based on the results of the assessment of all reporting units, the Company concluded that no impairment existed as of June 30, 2020. The Company determined that there were no triggering events and an impairment analysis was not performed as of September 30, 2020. An impairment analysis will next be performed during the fourth quarter as part of our regularly scheduled annual impairment testing. Future events could cause the Company to conclude that goodwill or other intangibles have become impaired, which would result in recording an impairment loss. Any resulting impairment loss could have a material adverse impact on the Company’s financial condition and results of operations. Business Continuity Plan The Company has implemented a remote working strategy for many of its employees. The Company does not anticipate incurring additional material cost related to its continued deployment of the remote working strategy. No material operational or internal control challenges or risks have been identified to date. The Company does not anticipate significant challenges to its ability to maintain its systems and controls in light of the measures the Company has taken to prevent the spread of COVID-19. We have established general guidelines for returning to the workplace that include having employees maintain safe distances, staggered work schedules to limit the number of employees in a single location, more frequent cleaning of our facilities and other practices encouraging a safe working environment during this challenging time, including required COVID-19 training programs. The Company does not currently face any material resource constraint through the implementation of its business continuity plans. Lending operations and accommodations to borrowers In response to the COVID-19 pandemic and consistent with regulatory guidance, we have also implemented a short-term loan modification program to provide temporary payment relief to certain borrowers who meet the program's qualifications. At September 30, 2020, the Company had no accruing loans 90 days or more past due. The deferred payments along with interest accrued during the deferral period are due and payable on the maturity date of the existing loan. As of September 30, 2020, we had ongoing temporary modifications on approximately 321 loans representing approximately $851 million (approximately 10.8% of total loans) in outstanding balances, as compared to 708 loans representing approximately $1.6 billion (approximately 20% of total loans) at June 30, 2020. Additionally, none of the deferrals are reflected in the Company's asset quality measures (i.e. non-performing loans) due to the provision of the CARES Act that permits U.S. financial institutions to temporarily suspend the U.S. GAAP requirements to treat such short-term loan modifications as troubled debt restructurings ("TDRs"). Similar provisions have also been confirmed by interagency guidance issued by the federal banking agencies and confirmed with staff members of the Financial Accounting Standards Board. The Company actively participates in the Paycheck Protection Program (“PPP”), administered by the Small Business Administration (“SBA”). The PPP loans originated by the Bank generally have a two-year term and earn interest at 1% plus fees. The Company believes that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program. As of September 30, 2020, PPP loans totaled $456.1 million to just over 1,400 businesses. The Company understands that loans funded through the PPP program are fully guaranteed by the U.S. government. Should those circumstances change, the Company could be required to establish additional allowance for credit loss through additional credit loss expense charges to earnings. Credit The Company is working with customers directly affected by COVID-19. The Company is prepared to offer short-term assistance in accordance with regulatory guidelines. As a result of the current economic environment caused by the COVID-19 virus, the Company is engaging in more frequent communication with borrowers to better understand their situation and the challenges faced, allowing it to respond proactively as needs and issues arise. Should economic conditions worsen, the Company could experience further increases in its required allowance for credit losses (“ACL”) and record additional provision for credit losses. It is possible that the Company’s asset quality measures could worsen at future measurement periods if the effects of COVID-19 are prolonged.
Allowance for Credit Losses	Allowance for Credit Losses On January 1, 2020, we adopted ASU 2016-13 “Financial Instruments - Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which replaced the incurred loss methodology for determining our provision for credit losses and ACL with an expected loss methodology that is referred to as the current expected credit loss model. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans receivable and held-to-maturity (“HTM”) debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with ASU 2016-2 "Leases (Topic 842)" ("ASU 2016-2") . In addition, ASU 2016-13 made changes to the accounting for available-for-sale (“AFS”) debt securities. One such change is to require credit-related impairments to be recognized as an allowance for credit losses rather than as a write-down of the securities amortized cost basis when management does not intend to sell or believes that it is not more than likely that they will be required to sell the securities prior to recovery of the securities amortized cost basis. We adopted ASU 2016-13 using the modified retrospective method. Results for reporting periods beginning after January 1, 2020 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company does not own HTM investment debt securities. The following table presents a breakdown of the provision for credit losses included in our Consolidated Statements of Income for the applicable periods (in thousands): Three Months Ended Nine Months Ended (dollars in thousands) September 30, 2020 September 30, 2020 Provision for credit losses- loans $ 6,589 $ 40,498 Provision for credit losses- AFS debt securities 18 156 Total provision for credit losses $ 6,607 $ 40,654
Loans	Loans Loans held for investment are stated at the amount of unpaid principal reduced by deferred income (net of costs). Interest on loans is recognized using the simple-interest method on the daily balances of the principal amounts outstanding. Loan origination fees, net of direct loan origination costs, and commitment fees are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. A modification of a loan constitutes a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company offers various types of concessions when modifying a loan. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. The most common change in terms provided by the Company is an extension of an interest-only term. As of September 30, 2020, all performing TDRs were categorized as interest-only modifications. Refer to the subsection above "Lendi ng operations and accommodations to borrowers" for a discussion on the impact of the CARES Act on TDRs. A loan is considered past due when a contractually due payment has not been received by the contractual due date. We place a loan on non-accrual status when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed as a reduction of current period interest income. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. A loan is placed back on accrual status when both principal and interest are current and it is probable that we will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement.
Allowance for Credit Losses- Loans	Allowance for Credit Losses- Loans The allowance for credit losses is an estimate of the expected credit losses in the loans held for investment and available-for-sale debt securities portfolios. ASU 2016-13 replaced the incurred loss impairment model that recognizes losses when it becomes probable that a credit loss will be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged- off. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, loan concentrations, credit quality, or term, as well as for changes in environmental conditions, such as changes in unemployment rates, property values or other relevant factors. The allowance for credit losses is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Reserves on loans that do not share risk characteristics are evaluated on an individual basis (nonaccrual, TDR). Nonaccrual loans are specifically reviewed for loss potential and when deemed appropriate are assigned a reserve based on an individual evaluation. For purposes of determining the pool-basis reserve, the remainder of the portfolio, representing all loans not assigned an individual reserve, is segregated by call report codes. These historical loss rates are then modified to incorporate our reasonable and supportable forecast of future losses at the portfolio segment level, as well as any necessary qualitative adjustments. A similar process is employed to calculate a reserve assigned to off-balance sheet commitments, specifically unfunded loan commitments and letters of credit, and any needed reserve is recorded in reserve for unfunded commitments on the Consolidated Balance Sheets. For periods beyond which we are able to develop reasonable and supportable forecasts, we revert to the historical loss rate on a straight line basis over a twelve month period. See further detail regarding our forecasting methodology in the “Discounted Cash Flow Method” section below. Even though portions of the allowance may be allocated to specific loans, the entire allowance is available for any credit that, in management's judgment, should be charged off. Portfolio segments are used to pool loans with similar risk characteristics and align with our methodology for measuring expected credit losses. A summary of our primary portfolio segments is as follows: Commercial . The commercial loan portfolio is comprised of lines of credit and term loans for working capital, equipment, and other business assets across a variety of industries. These loans are used for general corporate purposes including financing working capital, internal growth, and acquisitions; and are generally secured by accounts receivable, inventory, equipment and other assets of our clients’ businesses. Income producing – commercial real estate . Income producing commercial real estate loans are comprised of permanent and bridge financing provided to professional real estate owners/managers of commercial and residential real estate projects and properties who have a demonstrated record of past success with similar properties. Collateral properties include apartment buildings, office buildings, hotels, mixed-use buildings, retail, data centers, warehouse, and shopping centers. The primary source of repayment on these loans is generally expected to come from lease or operation of the real property collateral. Income producing commercial real estate loans are impacted by fluctuation in collateral values, as well as rental demand and rates. Owner occupied – commercial real estate. The owner occupied commercial real estate portfolio is comprised of permanent financing provided to operating companies and their related entities for the purchase or refinance of real property wherein their business operates. Collateral properties include industrial property, office buildings, religious facilities, mixed-use property, health care and educational facilities. Real Estate Mortgage – Residential. Real estate mortgage residential loans are comprised of consumer mortgages for the purpose of purchasing or refinancing first lien real estate loans secured by primary-residence, second-home, and rental residential real property. Construction – commercial and residential . The construction commercial and residential loan portfolio is comprised of loans made to builders and developers of commercial and residential property, for both renovation, new construction, and development projects. Collateral properties include apartment buildings, mixed use property, residential condominiums, single and 1-4 residential property, and office buildings. The primary source of repayment on these loans is expected to come from the sale, permanent financing, or lease of the real property collateral. Construction loans are impacted by fluctuations in collateral values and the ability of the borrower or ultimate purchaser to obtain permanent financing. Construction – commerical and industrial ("C&I") (owner occupied) . The construction C&I (owner occupied) portfolio comprises loans to operating companies and their related entities for new construction or renovation of the real or leased property in which they operate. Generally these loans contain provisions for conversion to an owner occupied commercial real estate or to a commercial loan after completion of construction. Collateral properties include industrial, healthcare, religious facilities, restaurants, and office buildings. Home Equity . The home equity portfolio is comprised of consumer lines of credit and loans secured by subordinate liens on residential real property. Other Consumer . The other consumer portfolio is comprised of consumer purpose loans not secured by real property, including personal lines of credit and loans, overdraft lines, and vehicle loans. This category also includes other loan items such as overdrawn deposit accounts as well as loans and loan payments in process. We have several pass credit grades that are assigned to loans based on varying levels of risk, ranging from credits that are secured by cash or marketable securities, to watch credits which have all the characteristics of an acceptable credit risk but warrant more than the normal level of monitoring. Special mention loans are those that are currently protected by the sound worth and paying capacity of the borrower, but that are potentially weak and constitute an additional credit risk. These loans have the potential to deteriorate to a substandard grade due to the existence of financial or administrative deficiencies. Substandard loans have a well-defined weakness or weaknesses that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Some substandard loans are inadequately protected by the sound worth and paying capacity of the borrower and of the collateral pledged and may be considered impaired. Substandard loans can be accruing or can be on non-accrual depending on the circumstances of the individual loans. Loans classified as doubtful have all the weaknesses inherent in substandard loans with the added characteristics that the weaknesses make collection in full highly questionable and improbable. The possibility of loss is extremely high. All doubtful loans are on non-accrual. The methodology used in the estimation of the allowance, which is performed at least quarterly, is designed to be dynamic and responsive to changes in portfolio credit quality and forecasted economic conditions. Changes are reflected in the pool-basis allowance and in reserves assigned on an individual basis as the collectability of classified loans is evaluated with new information. As our portfolio has matured, historical loss ratios have been closely monitored. The review of the appropriateness of the allowance is performed by executive management and presented to management committees, Director’s Loan Committee, the Audit Committee, and the Board of Directors. The committees' reports to the Board are part of the Board's review on a quarterly basis of our consolidated financial statements. When management determines that foreclosure is probable, and for certain collateral-dependent loans where foreclosure is not considered probable, expected credit losses are based on the fair value of the collateral adjusted for selling costs, when appropriate. A loan is considered collateral- dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation that a loan will be in a trouble debt restructuring or the extension or renewal options are included in the borrower contract. We do not measure an allowance for credit losses on accrued interest receivable balances because these balances are written off in a timely manner as a reduction to interest income when loans are placed on non-accrual status.
Discounted Cash Flow Method	Discounted Cash Flow Method The Company uses the discounted cash flow (“DCF”) method to estimate expected credit losses for the commercial, income producing – commercial real estate, owner occupied – commercial real estate, real estate mortgage - residential, construction – commercial and residential, construction – C&I (owner occupied), home equity, and other consumer loan pools. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, probability of default, and loss given default. The modeling of expected prepayment speeds is based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes and forecasts regional unemployment as a loss driver. COVID-19 has negatively impacted unemployment projections, which inform our CECL economic forecast and increased our loss reserve as of September 30, 2020. For all DCF models, management has determined that eight quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over twelve months on a straight-line basis. Management leverages economic projections from reputable and independent third parties to inform its loss driver forecasts over the forecast period. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value ("NPV"). An ACL is established for the difference between the instrument’s NPV and amortized cost basis.
Collateral Dependent Financial Assets	Collateral Dependent Financial Assets Loans that do not share risk characteristics are evaluated on an individual basis. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. A loan that has been modified or renewed is considered a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. The Company’s ACL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed non-performing TDRs are evaluated individually to determine the required ACL. Refer to the subsection above "Lendi ng operations and accommodations to borrowers" for a discussion on the impact of the CARES Act on TDRs.
Allowance for Credit Losses - Available-for-Sale Debt Securities	Allowance for Credit Losses - Available-for-Sale Debt Securities Although ASU No. 2016-13 replaced the legacy other-than-temporary impairment (“OTTI”) model with a credit loss model, it retained the fundamental nature of the legacy OTTI model. One notable change from the legacy OTTI model is when evaluating whether credit loss exists, an entity may no longer consider the length of time fair value has been less than amortized cost. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either criterion is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment not recorded through an allowance for credit loss is recognized in other comprehensive income as a non-credit-related impairment. The majority of available-for-sale debt securities as of September 30, 2020 and December 31, 2019 were issued by US agencies. However, as of September 30, 2020, the Company determined that part of the unrealized loss positions in AFS corporate and municipal securities could be the result of credit losses, and therefore, an allowance for credit losses of $156 thousand was recorded. See Note 3 Investment Securities for more information. We have made a policy election to exclude accrued interest from the amortized cost basis of available-for-sale debt securities and report accrued interest separately in accrued interest and other assets in the Consolidated Balance Sheets. Available-for-sale debt securities are placed on non- accrual status when we no longer expect to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income when a security is placed on non-accrual status. Accordingly, we do not recognize an allowance for credit loss against accrued interest receivable.
Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures	Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures Financial instruments include off-balance sheet credit instruments such as commitments to make loans and commercial letters of credit issued to meet customer financing needs. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records a reserve for unfunded commitments (“RUC”) on off-balance sheet credit exposures through a charge to provision for credit loss expense in the Company’s consolidated Statement of Income. The RUC on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur, and is included in the RUC on the Company’s Consolidated Balance Sheets. These statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Other New Authoritative Accounting Guidance	Other New Authoritative Accounting Guidance Accounting Standards Adopted in 2020 In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the Agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. Under Accounting Standards Codification 310-40, “ Receivables – Troubled Debt Restructurings by Creditors, ” (“ASC 310-40”), a restructuring of debt constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The Agencies confirmed with the staff of the Financial Accounting Standards Board (“FASB”) that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. This interagency guidance has had, and is expected to continue to have, a material impact on the Company’s financial statements; however, the full extent of such impact cannot be quantified at this time. See Note 5 to the Consolidated Financial Statements for further detail. ASU 2016-13, “Measurement of Credit Losses on Financial Instruments (Topic 326).” Under the CECL standard and based on the January 1, 2020 effective date, the Company made an initial adjustment to the allowance for credit losses of $10.6 million along with $4.1 million to the reserve for unfunded commitments. In accordance with adoption of CECL, the initial January 1, 2020 cumulative-effect adjustment was to retained earnings (net of taxes) under the modified retrospective approach. Results for reporting periods beginning after January 1, 2020 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Refer to the “Allowance for Credit Losses- Loans” section above for additional detail. ASU 2020-2 "Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842) " ("ASU 2020-2") incorporates SEC SAB 119 (updated from SAB 102) into the Accounting Standards Codification (the "Codification") by aligning SEC recommended policies and procedures with ASC 326. ASU 2020-2 was effective on January 1, 2020 and had no significant impact on our documentation requirements, financial statement or disclosures. ASU 2020-3 "Codification Improvements to Financial Instruments" ("ASU 2020-3") revised a wide variety of topics in the Codification with the intent to make the Codification easier to understand and apply by eliminating inconsistencies and providing clarifications. ASU 2020-3 was effective immediately upon its release in March 2020 and did not have a material impact on our consolidated financial statements. Accounting Standards Pending Adoption ASU 2019-12 "Income Taxes (Topic 740)" ("ASU 2019-12") simplifies the accounting for income taxes by removing certain exceptions and improves the consistent application of GAAP by clarifying and amending other existing guidance. ASU 2019-12 will be effective for us on January 1, 2021 and is not expected to have a material impact on our consolidated financial statements. ASU 2020-4, " Reference Rate Ref orm (Topic 848)" ("ASU 2020-4") provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered "minor" so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-4 also provides numerous optional expedients for derivative accounting. ASU 2020-4 is effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-4 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within the Codification, the amendments in this ASU must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. We anticipate this ASU will simplify any modifications we execute between the selected start date (yet to be determined) and December 31, 2022 that are directly related to LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees/costs. We are evaluating the impacts of this ASU and have not yet determined whether LIBOR transition and this ASU will have material effects on our business operations and consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Schedule of breakdown of the provision for credit losses	The following table presents a breakdown of the provision for credit losses included in our Consolidated Statements of Income for the applicable periods (in thousands): Three Months Ended Nine Months Ended (dollars in thousands) September 30, 2020 September 30, 2020 Provision for credit losses- loans $ 6,589 $ 40,498 Provision for credit losses- AFS debt securities 18 156 Total provision for credit losses $ 6,607 $ 40,654

Investment Securities Availab_2

Investment Securities Available-for-Sale (Tables)	9 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Schedule of amortized cost and estimated fair value of securities available-for-sale	Amortized cost and estimated fair value of securities available-for-sale are summarized as follows: Gross Gross Allowance Estimated September 30, 2020 Amortized Unrealized Unrealized for Credit Fair (dollars in thousands) Cost Gains Losses Losses Value U.S. agency securities $ 130,313 $ 1,638 $ (665) $ — $ 131,286 Residential mortgage backed securities 702,655 14,578 (590) — 716,643 Municipal bonds 90,292 4,551 (114) (16) 94,713 Corporate bonds 33,345 1,596 (71) (140) 34,730 Other equity investments 198 — — — 198 $ 956,803 $ 22,363 $ (1,440) $ (156) $ 977,570 Gross Gross Estimated December 31, 2019 Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value U.S. agency securities $ 180,228 $ 621 $ (1,055) $ 179,794 Residential mortgage backed securities 541,490 4,337 (1,975) 543,852 Municipal bonds 71,902 2,034 (5) 73,931 Corporate bonds 10,530 203 — 10,733 U.S. Treasury 34,844 11 — 34,855 Other equity investments 198 — — 198 $ 839,192 $ 7,206 $ (3,035) $ 843,363
Schedule of gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss	Gross unrealized losses and fair value of available-for-sale securities for which an allowance for credit losses has not been recorded, by length of time that individual securities have been in a continuous unrealized loss position are as follows: Less than 12 Months 12 Months or Greater Total Estimated Estimated Estimated September 30, 2020 Number of Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Securities Value Losses Value Losses Value Losses U. S. agency securities 25 $ 20,762 $ 32 $ 43,607 $ 633 $ 64,369 $ 665 Residential mortgage backed securities 33 139,848 549 7,334 41 147,182 590 Municipal bonds 4 14,086 114 — — 14,086 114 Corporate bonds 1 2,954 71 — — 2,954 71 63 $ 177,650 $ 766 $ 50,941 $ 674 $ 228,591 $ 1,440 Less than 12 Months 12 Months or Greater Total Estimated Estimated Estimated December 31, 2019 Number of Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Securities Value Losses Value Losses Value Losses U. S. agency securities 36 $ 75,159 $ 439 $ 51,481 $ 616 $ 126,640 $ 1,055 Residential mortgage backed securities 111 197,794 1,148 90,742 827 288,536 1,975 Municipal bonds 1 1,994 5 — — 1,994 5 148 $ 274,947 $ 1,592 $ 142,223 $ 1,443 $ 417,170 $ 3,035
Schedule of amortized cost and estimated fair value of investments available-for-sale by contractual maturity	September 30, 2020 December 31, 2019 Amortized Estimated Amortized Estimated (dollars in thousands) Cost Fair Value Cost Fair Value U. S. agency securities maturing: One year or less $ 38,000 $ 38,111 $ 96,332 $ 96,226 After one year through five years 81,181 82,057 76,121 75,821 Five years through ten years 11,132 11,224 7,775 7,747 Residential mortgage backed securities 702,655 716,643 541,490 543,852 Municipal bonds maturing: One year or less 4,834 4,868 5,897 5,969 After one year through five years 26,677 27,912 21,416 21,953 Five years through ten years 56,781 59,771 42,589 44,015 After ten years 2,000 2,072 2,000 1,994 Corporate bonds maturing: One year or less 5,214 5,257 502 508 After one year through five years 21,156 22,124 8,528 8,725 After ten years 6,975 7,489 1,500 1,500 U.S. treasury — — 34,844 34,855 Other equity investments 198 198 198 198 Allowance for Credit Losses — (156) — — $ 956,803 $ 977,570 $ 839,192 $ 843,363

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Schedule of loans, net of unamortized net deferred fees	Loans, net of unamortized net deferred fees, at September 30, 2020 (unaudited) and December 31, 2019 are summarized by type as follows: September 30, 2020 December 31, 2019 (dollars in thousands) Amount % Amount % Commercial $ 1,524,613 19 % $ 1,545,906 20 % PPP loans 456,115 6 % — — Income producing - commercial real estate 3,724,839 47 % 3,702,747 50 % Owner occupied - commercial real estate 997,645 13 % 985,409 13 % Real estate mortgage - residential 82,385 1 % 104,221 1 % Construction - commercial and residential 879,144 11 % 1,035,754 14 % Construction - C&I (owner occupied) 140,357 2 % 89,490 1 % Home equity 72,648 1 % 80,061 1 % Other consumer 2,509 — 2,160 — Total loans 7,880,255 100 % 7,545,748 100 % Less: allowance for credit losses (110,215) (73,658) Net loans (1) $ 7,770,040 $ 7,472,090 ________________________________________
Schedule of detail activity in the allowance for credit losses by portfolio segment	The following tables detail activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2020 and 2019. PPP loans are excluded from these tables since they do not carry an allowance for credit loss, as these loans are fully guaranteed as to principal and interest by the SBA, whose guarantee is backed by the full faith and credit of the U.S. Government. Allocation of a portion of the allowance to one category of loans does not restrict the use of the allowance to absorb losses in other categories. Income Producing - Owner Occupied - Real Estate Construction - Commercial Commercial Mortgage - Commercial and Home Other (dollars in thousands) Commercial Real Estate Real Estate Residential Residential Equity Consumer Total Three Months Ended September 30, 2020 Allowance for credit losses: Balance at beginning of period $ 28,078 $ 51,863 $ 12,341 $ 1,550 $ 13,808 $ 1,112 $ 44 $ 108,796 Loans charged-off (187) (3,750) (20) — (1,179) (92) — (5,228) Recoveries of loans previously charged-off 45 — — — — — 13 58 Net loans charged-off (142) (3,750) (20) — (1,179) (92) 13 (5,170) Provision for credit losses (712) 7,327 769 321 (1,088) (13) (15) 6,589 Ending balance $ 27,224 $ 55,440 $ 13,090 $ 1,871 $ 11,541 $ 1,007 $ 42 $ 110,215 Nine Months Ended September 30, 2020 Allowance for credit losses: Balance at beginning of period, prior to adoption of ASC 326 $ 18,832 $ 29,265 $ 5,838 $ 1,557 $ 17,485 $ 656 $ 25 $ 73,658 Impact of adopting ASC 326 892 11,230 4,674 (301) (6,143) 245 17 10,614 Loans charged-off (7,332) (4,300) (20) — (2,947) (92) — (14,691) Recoveries of loans previously charged-off 116 — — — — — 20 136 Net loans (charged-off) recoveries (7,216) (4,300) (20) — (2,947) (92) 20 (14,555) Provision for credit losses 14,716 19,245 2,598 615 3,146 198 (20) 40,498 Ending balance $ 27,224 $ 55,440 $ 13,090 $ 1,871 $ 11,541 $ 1,007 $ 42 $ 110,215 As of September 30, 2020 Allowance for credit losses: Individually evaluated for impairment $ 9,593 $ 5,999 $ 670 $ 1,148 $ 204 $ — $ 3 $ 17,617 Collectively evaluated for impairment 17,631 49,441 12,420 723 11,337 1,007 39 92,598 Ending balance $ 27,224 $ 55,440 $ 13,090 $ 1,871 $ 11,541 $ 1,007 $ 42 $ 110,215 Three Months Ended September 30, 2019 Allowance for credit losses: Balance at beginning of period $ 18,136 $ 27,010 $ 5,756 $ 1,355 $ 19,006 $ 581 $ 242 $ 72,086 Loans charged-off (1,794) — — — — — (1,794) Recoveries of loans previously charged-off 210 — — 15 — 17 242 Net loans charged-off (1,584) — — — 15 — 17 (1,552) Provision for credit losses 1,617 1,517 (158) (3) 251 (6) (32) 3,186 Ending balance $ 18,169 $ 28,527 $ 5,598 $ 1,352 $ 19,272 $ 575 $ 227 $ 73,720 Nine Months Ended September 30, 2019 Allowance for credit losses: Balance at beginning of period $ 15,857 $ 28,034 $ 6,242 $ 965 $ 18,175 $ 599 $ 72 $ 69,944 Loans charged-off (1,799) (5,343) — — — — (2) (7,144) Recoveries of loans previously charged-off 377 302 2 3 52 — 38 774 Net loans (charged-off) recoveries (1,422) (5,041) 2 3 52 — 36 (6,370) Provision for credit losses 3,734 5,534 (646) 384 1,045 (24) 119 10,146 Ending balance $ 18,169 $ 28,527 $ 5,598 $ 1,352 $ 19,272 $ 575 $ 227 $ 73,720 As of September 30, 2019 Allowance for credit losses: Individually evaluated for impairment $ 8,196 $ 1,200 $ 375 $ 650 $ — $ 13 $ — $ 10,434 Collectively evaluated for impairment 9,973 27,327 5,223 702 19,272 562 227 63,286 Ending balance $ 18,169 $ 28,527 $ 5,598 $ 1,352 $ 19,272 $ 575 $ 227 $ 73,720
Schedule of amortized cost basis of collateral-dependent loans by class of loans	The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2020: (dollars in thousands) Business/Other Assets Real Estate Commercial $ 14,075 $ 2,948 Income producing - commercial real estate 3,193 26,063 Owner occupied - commercial real estate — 14,215 Real estate mortgage - residential — 5,335 Construction - commercial and residential — 2,274 Home equity — 109 Other consumer 8 — Total $ 17,276 $ 50,944
Schedule of the risk category of loans by class of loans	September 30, 2020 (dollars in thousands) Prior 2016 2017 2018 2019 2020 Total Commercial Pass 375,848 124,678 306,487 249,287 193,594 155,505 1,405,399 Watch 32,430 3,125 32,399 9,478 3,674 — 81,106 Special Mention 1,302 — — 451 — — 1,753 Substandard 16,915 4,766 2,046 12,421 207 — 36,355 Total 426,495 132,569 340,932 271,637 197,475 155,505 1,524,613 PPP loans Pass — — — — — 456,115 456,115 Total — — — — — 456,115 456,115 Income producing - commercial real estate Pass 756,002 402,690 421,428 685,804 705,972 377,721 3,349,617 Watch 150,215 15,480 74,168 53,616 4,640 — 298,119 Special Mention 203 — — — 47,644 — 47,847 Substandard 13,375 800 4,656 4,883 5,542 — 29,256 Total 919,795 418,970 500,252 744,303 763,798 377,721 3,724,839 Owner occupied - commercial real estate Pass 344,863 105,381 115,144 139,991 74,286 29,169 808,834 Watch 50,018 2,038 2,645 95,171 24,761 — 174,633 Substandard 9,584 764 — 355 3,475 — 14,178 Total 404,465 108,183 117,789 235,517 102,522 29,169 997,645 Real estate mortgage - residential Pass 18,121 3,410 10,377 14,593 23,100 6,837 76,438 Watch 612 — — — — — 612 Substandard 1,181 4,154 — — — — 5,335 Total 19,914 7,564 10,377 14,593 23,100 6,837 82,385 Construction - commercial and residential Pass 32,535 65,703 286,922 314,061 104,335 46,832 850,388 Watch 853 — 25,629 — — — 26,482 Substandard — 1,866 408 — — — 2,274 Total 33,388 67,569 312,959 314,061 104,335 46,832 879,144 Construction - C&I (owner occupied) Pass 11,162 10,577 6,501 29,963 18,761 43,997 120,961 Watch 787 — 2,121 3,251 13,237 — 19,396 Total 11,949 10,577 8,622 33,214 31,998 43,997 140,357 Home Equity Pass 38,049 4,970 8,274 8,314 4,369 6,918 70,894 Watch 1,401 — — — — — 1,401 Substandard 304 — — — 49 — 353 Total 39,754 4,970 8,274 8,314 4,418 6,918 72,648 Other Consumer Pass 2,039 169 108 50 100 33 2,499 Substandard 10 — — — — — 10 Total 2,049 169 108 50 100 33 2,509 Total Recorded Investment $ 1,857,809 $ 750,571 $ 1,299,313 $ 1,621,689 $ 1,227,746 $ 1,123,127 $ 7,880,255
Schedule of loans by class and credit quality indicators	The Company’s credit quality indicators are generally updated annually; however, credits rated watch or below are reviewed more frequently. The following table presents by class and by credit quality indicator, the recorded investment in the Company’s loans and leases as of December 31, 2019: Total (dollars in thousands) Pass Watch Special Mention Substandard Doubtful Loans December 31, 2019 Commercial $ 1,470,636 $ 38,522 $ 11,460 $ 25,288 $ — $ 1,545,906 Income producing - commercial real estate 3,667,585 16,069 — 19,093 — 3,702,747 Owner occupied - commercial real estate 925,800 53,146 — 6,463 — 985,409 Real estate mortgage - residential 98,228 628 — 5,365 — 104,221 Construction - commercial and residential 1,113,734 — — 11,510 — 1,125,244 Home equity 78,626 948 — 487 — 80,061 Other consumer 2,160 — — — — 2,160 Total $ 7,356,769 $ 109,313 $ 11,460 $ 68,206 $ — $ 7,545,748
Schedule by class of loan, an aging analysis and the recorded investments in loans past due	The following table presents, by class of loan, an aging analysis and the recorded investments in loans past due as of September 30, 2020 (unaudited) and December 31, 2019: Loans Loans Loans Total Recorded Current 30-59 Days 60-89 Days 90 Days or Total Past Investment in (dollars in thousands) Loans Past Due Past Due More Past Due Due Loans Non-Accrual Loans September 30, 2020 Commercial $ 1,494,038 $ 4,585 $ 10,154 $ — $ 14,739 $ 15,836 $ 1,524,613 PPP loans 456,115 — — — — — 456,115 Income producing - commercial real estate 3,696,949 — 7,822 — 7,822 20,068 3,724,839 Owner occupied - commercial real estate 983,021 — 446 — 446 14,178 997,645 Real estate mortgage - residential 76,798 — — — — 5,587 82,385 Construction - commercial and residential 876,361 — 509 — 509 2,274 879,144 Construction - C&I (owner occupied) 138,837 1,520 — — 1,520 — 140,357 Home equity 71,837 656 46 — 702 109 72,648 Other consumer 2,492 9 — — 9 8 2,509 Total $ 7,796,448 $ 6,770 $ 18,977 $ — $ 25,747 $ 58,060 $ 7,880,255 December 31, 2019 Commercial $ 1,527,134 $ 3,063 $ 781 $ — $ 3,844 $ 14,928 $ 1,545,906 Income producing - commercial real estate 3,687,494 — 5,542 — 5,542 9,711 3,702,747 Owner occupied - commercial real estate 965,938 13,008 — — 13,008 6,463 985,409 Real estate mortgage – residential 95,057 3,533 — — 3,533 5,631 104,221 Construction - commercial and residential 1,113,735 — — — — 11,509 1,125,244 Home equity 79,246 136 192 — 328 487 80,061 Other consumer 2,151 — 9 — 9 — 2,160 Total $ 7,470,755 $ 19,740 $ 6,524 $ — $ 26,264 $ 48,729 $ 7,545,748
Schedule of information related to nonaccrual loans by class	The following presents the nonaccrual loans as of September 30, 2020 (unaudited) and December 31, 2019: September 30, 2020 December 31, 2019 Nonaccrual with Nonaccrual with Total Total No Allowance an Allowance Nonaccrual Nonaccrual (dollars in thousands) for Credit Loss for Credit Loss Loans Loans Commercial 572 15,262 15,834 14,928 PPP loans — — — — Income producing - commercial real estate 6,690 13,379 20,069 9,711 Owner occupied - commercial real estate 12,627 1,551 14,178 6,463 Real estate mortgage - residential 1,434 4,154 5,588 5,631 Construction - commercial and residential 1,866 408 2,274 11,509 Home equity 109 — 109 487 Other consumer 5 3 8 — Total (1)(2) $ 23,303 $ 34,757 $ 58,060 $ 48,729 ________________________________________ (1) Excludes TDRs that were performing under their restructured terms totaling $10.1 at September 30, 2020 and $16.6 million at December 31, 2019. (2) Gross interest income of $2.6 million and $2.7 million would have been recorded for the nine months ended September 30, 2020 and 2019, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while the interest actually recorded on such loans was $282 thousand and $598 thousand for the nine months ended September 30, 2020 and 2019, respectively. See Note 1 to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status.
Schedule of impaired loans, by class of loan	The following table presents, by class of loan, information related to impaired loans at December 31, 2019: Unpaid Recorded Recorded Average Recorded Interest Income Contractual Investment Investment Total Investment Recognized Principal With No With Recorded Related Year Year (dollars in thousands) Balance Allowance Allowance Investment Allowance to Date To Date December 31, 2019 Commercial $ 15,814 $ 11,858 $ 3,956 $ 15,814 $ 5,714 $ 15,682 $ 270 Income producing - commercial real estate 14,093 2,713 11,380 14,093 2,145 18,133 382 Owner occupied - commercial real estate 7,349 6,388 961 7,349 415 6,107 197 Real estate mortgage - residential 5,631 3,175 2,456 5,631 650 5,638 — Construction - commercial and residential 11,509 11,101 408 11,509 100 8,211 92 Home equity 487 — 487 487 100 487 — Other consumer — — — — — — — Total $ 54,883 $ 35,235 $ 19,648 $ 54,883 $ 9,124 $ 54,258 $ 941
Schedule of loans modified in troubled debt restructurings	The following table presents by class, the recorded investment of loans modified in TDRs held by the Company for the periods ended September 30, 2020 and 2019. Nine Months Ended September 30, 2020 Income Owner Number Producing - Occupied - Construction - of Commercial Commercial Commercial (dollars in thousands) Contracts Commercial Real Estate Real Estate Real Estate Total Troubled debt restructurings Restructured accruing 7 $ 1,297 $ 9,188 $ 37 $ — $ 10,522 Restructured nonaccruing 4 138 6,342 2,370 — 8,850 Total 11 $ 1,435 $ 15,530 $ 2,407 $ — $ 19,372 Specific allowance $ 227 $ 629 $ — $ — $ 856 Restructured and subsequently defaulted $ 138 $ 11,161 $ 2,370 $ — $ 13,669 Nine Months Ended September 30, 2019 Income Owner Number Producing - Occupied - Construction - of Commercial Commercial Commercial (dollars in thousands) Contracts Commercial Real Estate Real Estate Real Estate Total Troubled debt restructurings Restructured accruing 7 $ 898 $ 4,387 $ 3,283 $ — $ 8,568 Restructured nonaccruing 3 1,521 — — — 1,521 Total 10 $ 2,419 $ 4,387 $ 3,283 $ — $ 10,089 Specific allowance $ — $ 1,000 $ — $ — $ 1,000 Restructured and subsequently defaulted $ — $ 2,300 $ — $ — $ 2,300

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Schedule of lease costs and other lease information	The following table presents lease costs and other lease information. Nine Months Ended (dollars in thousands) September 30, 2020 September 30, 2019 Lease Cost Operating Lease Cost (Cost resulting from lease payments) $ 6,253 $ 5,857 Variable Lease Cost (Cost excluded from lease payments) 720 815 Sublease Income (261) (282) Net Lease Cost $ 6,712 $ 6,390 Operating Lease - Operating Cash Flows (Fixed Payments) $ 6,648 $ 6,382 Right-of-Use Assets - Operating Leases $ 27,180 $ 26,552 Weighted Average Lease Term - Operating Leases 5.27 yrs 5.11 yrs Weighted Average Discount Rate - Operating Leases 4.00 % 4.00 %
Schedule of future minimum payments for operating leases	Future minimum payments for operating leases with initial or remaining terms of more than one year as of September 30, 2020 were as follows: (dollars in thousands) Twelve Months Ended: September 30, 2021 $ 8,384 September 30, 2022 6,592 September 30, 2023 5,296 September 30, 2024 4,595 September 30, 2025 3,847 Thereafter 5,162 Total Future Minimum Lease Payments 33,876 Amounts Representing Interest (3,419) Present Value of Net Future Minimum Lease Payments $ 30,457

Other Derivatives (Tables)

Other Derivatives (Tables)	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of balance sheet category and fair values of the derivative instruments	The table below identifies the balance sheet category and fair value of the Company’s designated cash flow hedge derivative instruments and non-designated hedges as of September 30, 2020 (unaudited) and December 31, 2019. September 30, 2020 December 31, 2019 Notional Balance Sheet Notional Balance Sheet Derivatives designated as hedging instruments (dollars in thousands) Amount Fair Value Category Amount Fair Value Category Interest rate product $ 100,000 $ 910 Other Liabilities $ 100,000 $ 206 Other Liabilities Derivatives not designated as hedging instruments (dollars in thousands Interest rate product $ 176,851 $ 4,306 Other Assets $ 56,806 $ 311 Other Assets Mortgage banking derivatives 409,988 6,015 Other Assets 49,869 280 Other Assets 586,839 10,321 586,839 10,321 106,675 591 Interest rate product $ 176,851 $ 4,561 Other Liabilities $ 56,806 $ 319 Other Liabilities Other Contracts 27,031 136 Other Liabilities 27,384 86 Other Liabilities Mortgage banking derivatives $ — $ — Other Liabilities $ 49,869 $ 66 Other Liabilities $ 203,882 $ 4,697 Other Liabilities $ 134,059 $ 471 Other Liabilities
Schedule of pretax net gains (losses) of designated cash flow hedges	The table below presents the pre-tax net gains (losses) of the Company’s designated cash flow hedges for the three and nine months ended September 30, 2020 and 2019: The Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income Location of Gain or (Loss) Amount of Gain or (Loss) Amount of Gain (Loss) Recognized in Recognized from Reclassified from Accumulated OCI OCI on Derivative Accumulated Other into Income Derivatives in Subtopic 815-20 Hedging Three Months Ended September 30, Comprehensive Income into Three Months Ended September 30, Relationships (dollars in thousands) 2020 2019 Income 2020 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Products 31 (107) Interest Expense (389) 264 Total 31 (107) (389) 264 Location of Gain or (Loss) Recognized from Accumulated Other Amount of Gain or (Loss) Amount of (Loss) Recognized in Comprehensive Income into Reclassified from Accumulated OCI OCI on Derivative Income into Income Derivatives in Subtopic 815-20 Hedging Nine Months Ended September 30, Nine Months Ended September 30, Relationships (dollars in thousands) 2020 2019 2020 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Products (1,517) (1,974) Interest Expense (755) 1,039 Interest Rate Products — — Gain on sale of investment securities — 829 Total (1,517) (1,974) (755) 1,868
Schedule of the effect of derivative financial instruments on the Consolidated Statements of Operations	The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the three and nine months ended September 30, 2020 and 2019: The Effect of Fair Value and Cash Flow Hedge Accounting on the Statements of Income Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships (in 000's) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 2019 Interest Interest Interest Gain on sale of Expense Expense Expense investment securities Total amounts of income and expense line items presented in the consolidated statement of income in which the effects of fair value or cash flow hedges are recorded $ 389 $ 264 $ 755 $ 1,039 $ 829 Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 389 $ 264 $ 755 $ 1,039 $ — Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring $ — $ — $ — $ — $ 829 Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component $ 389 $ 264 $ 755 $ 1,039 $ 829 Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component $ — $ — $ — $ — $ — Effect of Derivatives Not Designated as Hedging Instruments on the Statements of Income Amount of Income (Loss) Amount of Income (Loss) Recognized in Income on Recognized in Income on Location of Derivative Derivative Derivatives Not Designated as Hedging (Loss) Recognized in Three Months Ended September 30, Nine Months Ended September 30, Instruments under Subtopic 815-20 Income on Derivative 2020 2019 2020 2019 Interest Rate Products Other income / (expense) (40) (7) (326) (7) Mortgage banking derivatives Other income / (expense) 6,015 (380) 6,015 316 Other Contracts Other income / (expense) (13) (16) (77) (58) Total 5,962 (403) 5,612 251
Schedule of the effects of offsetting, and a net presentation of cash flow hedge derivatives	The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s cash flow hedge derivatives as of September 30, 2020 (unaudited) and December 31, 2019. As of September 30, 2020 Gross Gross Amounts Not Offset in the Gross Amounts Net Amounts of Assets presented in the Balance Sheet Balance Sheet Amounts of Offset in Cash Offsetting of Derivative Assets (dollars in thousands) Recognized the Balance Financial Collateral Net Assets Sheet Instruments Posted Amount Derivatives $ 4,306 $ — $ 4,306 $ — $ — $ 4,306 Gross Gross Amounts Not Offset in the Gross Amounts Net Amounts of Liabilities presented in the Balance Sheet Balance Sheet Amounts of Offset in Cash Recognized the Balance Financial Collateral Net Offsetting of Derivative Liabilities (dollars in thousands) Liabilities Sheet Instruments Posted Amount Derivatives $ 5,216 $ — $ 5,216 $ — $ 230 $ 4,986 As of December 31, 2019 Gross Gross Amounts Not Offset in the Gross Amounts Net Amounts of Assets presented in the Balance Sheet Balance Sheet Amounts of Offset in Cash Offsetting of Derivative Assets (dollars in thousands) Recognized the Balance Financial Collateral Net Assets Sheet Instruments Posted Amount Derivatives $ 311 — $ 311 — — $ 311 Gross Gross Amounts Not Offset in the Gross Amounts Net Amounts of Liabilities presented in the Balance Sheet Balance Sheet Amounts of Offset in Cash Recognized the Balance Financial Collateral Net Offsetting of Derivative Liabilities (dollars in thousands) Liabilities Sheet Instruments Posted Amount Derivatives $ 611 — $ 611 — $ 500 $ 111

Other Real Estate Owned (Tables

Other Real Estate Owned (Tables)	9 Months Ended
	Sep. 30, 2020
Real Estate [Abstract]
Schedule of activity of other real estate owned	Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2020 2019 2020 2019 Beginning Balance $ 8,237 $ 1,394 $ 1,487 $ 1,394 Real estate acquired from borrowers — 93 6,750 93 Properties sold (3,250) — (3,250) — Ending Balance $ 4,987 $ 1,487 $ 4,987 $ 1,487

Long-Term Borrowings (Tables)

Long-Term Borrowings (Tables)	9 Months Ended
	Sep. 30, 2020
Long-term Debt, Unclassified [Abstract]
Schedule of long-term borrowings	(dollars in thousands) September 30, 2020 December 31, 2019 Subordinated Notes, 5.75% $ 70,000 $ 70,000 Subordinated Notes, 5.0% 150,000 150,000 FHLB Advance, 1.81% 50,000 — Less: unamortized debt issuance costs (2,020) (2,313) Long-term borrowings $ 267,980 $ 217,687

Net Income per Common Share (Ta

Net Income per Common Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Schedule of calculation of net income per common share	The calculation of net income per common share for the three and nine months ended September 30, 2020 and 2019 (unaudited) was as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars and shares in thousands, except per share data) 2020 2019 2020 2019 Basic: Net income $ 41,346 $ 36,495 $ 93,325 $ 107,487 Average common shares outstanding 32,229 34,233 32,434 34,418 Basic net income per common share $ 1.28 $ 1.07 $ 2.88 $ 3.12 Diluted: Net income $ 41,346 $ 36,495 $ 93,325 $ 107,487 Average common shares outstanding 32,229 34,233 32,434 34,418 Adjustment for common share equivalents 22 23 24 33 Average common shares outstanding-diluted 32,251 34,256 32,458 34,451 Diluted net income per common share $ 1.28 $ 1.07 $ 2.88 $ 3.12 Anti-dilutive shares 26 2 26 20

Other Comprehensive Income (Tab

Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2020
Other Comprehensive Income
Schedule of components of other comprehensive income (loss)	The following table presents the components of other comprehensive income (loss) for the three and nine months ended September 30, 2020 and 2019. (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended September 30, 2020 Net unrealized loss on securities available-for-sale $ (840) $ 216 $ (624) Less: Reclassification adjustment for net gains included in net income (115) 29 (86) Total unrealized loss (955) 245 (710) Net unrealized gain on derivatives 31 (7) 24 Less: Reclassification adjustment for loss included in net income 389 (100) 289 Total unrealized gain 420 (107) 313 Other Comprehensive Income $ (535) $ 138 $ (397) Three Months Ended September 30, 2019 Net unrealized gain on securities available-for-sale $ 1,585 $ 411 $ 1,174 Less: Reclassification adjustment for net gains included in net income (153) (43) (110) Total unrealized gain 1,432 368 1,064 Net unrealized gain on derivatives 24 (13) 11 Less: Reclassification adjustment for gain included in net income (285) (80) (205) Total unrealized loss (261) 67 (194) Other Comprehensive Income $ 1,171 $ 301 $ 870 Nine Months Ended September 30, 2020 Net unrealized gain on securities available-for-sale $ 18,402 $ (5,048) $ 13,354 Less: Reclassification adjustment for net gains included in net income (1,650) 419 (1,231) Total unrealized gain 16,752 (4,629) 12,123 Net unrealized loss on derivatives (1,986) 662 (1,324) Less: Reclassification adjustment for gain included in net income 688 (175) 513 Total unrealized loss (1,298) 487 (811) Other Comprehensive Income $ 15,454 $ (4,142) $ 11,312 Nine Months Ended September 30, 2019 Net unrealized gain on securities available-for-sale $ 17,712 $ (4,572) $ 13,140 Less: Reclassification adjustment for net gains included in net income (1,628) (438) (1,190) Total unrealized gain 16,084 (5,010) 11,950 Net unrealized loss on derivatives (2,210) 546 (1,664) Less: Reclassification adjustment for gain included in net income (1,879) (505) (1,374) Total unrealized loss (4,089) 41 (3,038) Other Comprehensive Income $ 11,995 $ (4,969) $ 8,912
Schedule of changes in each component of accumulated other comprehensive income (loss), net of tax	The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2020 and 2019. Securities Accumulated Other Available Comprehensive Income (dollars in thousands) For Sale Derivatives (Loss) Three Months Ended September 30, 2020 Balance at Beginning of Period $ 15,942 $ (1,274) $ 14,668 Other comprehensive income (loss) before reclassifications (624) 24 (600) Amounts reclassified from accumulated other comprehensive income (loss) (86) 289 203 Net other comprehensive income (loss) during period (710) 313 (397) Balance at End of Period $ 15,232 $ (961) $ 14,271 Securities Accumulated Other Available Comprehensive Income (dollars in thousands) For Sale Derivatives (Loss) Three Months Ended September 30, 2019 Balance at Beginning of Period $ 3,842 $ (75) $ 3,767 Other comprehensive income (loss) before reclassifications 1,174 11 1,185 Amounts reclassified from accumulated other comprehensive loss (110) (205) (315) Net other comprehensive income (loss) during period 1,064 (194) 870 Balance at End of Period $ 4,906 $ (269) $ 4,637 Securities Accumulated Other Available Comprehensive Income (dollars in thousands) For Sale Derivatives (Loss) Nine Months Ended September 30, 2020 Balance at Beginning of Period $ 3,109 $ (150) $ 2,959 Other comprehensive income (loss) before reclassifications 13,354 (1,324) 12,030 Amounts reclassified from accumulated other comprehensive income (loss) (1,231) 513 (718) Net other comprehensive income (loss) during period 12,123 (811) 11,312 Balance at End of Period $ 15,232 $ (961) $ 14,271 Securities Accumulated Other Available Comprehensive Income (dollars in thousands) For Sale Derivatives (Loss) Nine Months Ended September 30, 2019 Balance at Beginning of Period $ (7,044) $ 2,769 $ (4,275) Other comprehensive income (loss) before reclassifications 13,140 (1,664) 11,476 Amounts reclassified from accumulated other comprehensive loss (1,190) (1,374) (2,564) Net other comprehensive income (loss) during period 11,950 (3,038) 8,912 Balance at End of Period $ 4,906 $ (269) $ 4,637
Schedule of amounts reclassified out of accumulated other comprehensive (loss) income	The following tables present the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2020 and 2019. Amount Reclassified from Accumulated Other Affected Line Item in Details about Accumulated Other Comprehensive (Loss) Income the Statement Where Comprehensive Income Components Three Months Ended September 30, Net Income is Presented (dollars in thousands) 2020 2019 Realized gain on sale of investment securities $ 115 $ 153 Gain on sale of investment securities Interest income derivative deposits (389) 285 Interest expense on deposits Income tax expense 71 (123) Income Tax Expense Total Reclassifications for the Period $ (203) $ 315 Net Income Amount Reclassified from Accumulated Other Affected Line Item in Details about Accumulated Other Comprehensive (Loss) Income the Statement Where Comprehensive Income Components Nine Months Ended September 30, Net Income is Presented (dollars in thousands) 2020 2019 Realized gain on sale of investment securities $ 1,650 $ 1,628 Gain on sale of investment securities Realized gain on swap termination — 829 Gain on sale of investment securities Interest income derivative deposits (688) 1,050 Interest expense on deposits Income tax expense (244) (943) Income Tax Expense Total Reclassifications for the Period $ 718 $ 2,564 Net Income

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis	The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 (unaudited) and December 31, 2019. Significant Significant Other Other Observable Unobservable Quoted Prices Inputs Inputs Total (dollars in thousands) (Level 1) (Level 2) (Level 3) (Fair Value) September 30, 2020 Assets: Investment securities available-for-sale: U. S. agency securities $ — $ 131,286 $ — $ 131,286 Residential mortgage backed securities — 716,643 — 716,643 Municipal bonds — 94,713 — 94,713 Corporate bonds — 33,230 1,500 34,730 Other equity investments — — 198 198 Loans held for sale — 79,084 — 79,084 Interest Rate Caps — 4,233 — 4,233 Mortgage banking derivatives — — 6,015 6,015 Total assets measured at fair value on a recurring basis as of September 30, 2020 $ — $ 1,059,189 $ 7,713 $ 1,066,902 Liabilities: Interest rate swap derivatives $ — $ 910 $ — $ 910 Derivative liability — 136 — 136 Interest Rate Caps — 4,487 — 4,487 Total liabilities measured at fair value on a recurring basis as of September 30, 2020 $ — $ 5,533 $ — $ 5,533 December 31, 2019 Assets: Investment securities available-for-sale: U. S. agency securities $ — $ 179,794 $ — $ 179,794 Residential mortgage backed securities — 543,852 — 543,852 Municipal bonds — 73,931 — 73,931 Corporate bonds — — 10,733 10,733 U.S. Treasury — 34,855 — 34,855 Other equity investments — — 198 198 Loans held for sale — 56,707 — 56,707 Interest Rate Caps — 317 — 317 Mortgage banking derivatives — — 280 280 Total assets measured at fair value on a recurring basis as of December 31, 2019 $ — $ 889,456 $ 11,211 $ 900,667 Liabilities: Interest rate swap derivatives $ — $ 203 $ — $ 203 Derivative liability — 86 — 86 Interest Rate Caps — 312 — 312 Mortgage banking derivatives — — 66 66 Total liabilities measured at fair value on a recurring basis as of December 31, 2019 $ — $ 601 $ 66 $ 667
Schedule of aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value	The following tables summarize the difference between the aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value as of September 30, 2020 (unaudited) and December 31, 2019. September 30, 2020 Aggregate Unpaid Principal (dollars in thousands) Fair Value Balance Difference Loans held for sale $ 79,084 $ 77,572 $ 1,512 December 31, 2019 Aggregate Unpaid Principal (dollars in thousands) Fair Value Balance Difference Loans held for sale $ 56,707 $ 55,834 $ 873
Schedule of the reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3)	The following is a reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3): Investment Mortgage Balancing (dollars in thousands) Securities Derivatives Total Assets: Beginning balance at January 1, 2020 $ 10,931 $ 280 $ 11,211 Realized gain (loss) included in earnings — 5,735 5,735 Unrealized gain included in other comprehensive income — — — Purchases of available-for-sale securities — — — Principal redemption — — — Migrated to Level 2 valuation $ (9,233) $ — $ (9,233) Ending balance at September 30, 2020 $ 1,698 $ 6,015 $ 7,713 Liabilities: Beginning balance at January 1, 2020 $ — $ 66 $ 66 Realized loss included in earnings — (66) (66) Principal redemption — — — Ending balance at September 30, 2020 $ — $ — $ — Investment Mortgage Balancing (dollars in thousands) Securities Derivatives Total Assets: Beginning balance at January 1, 2019 $ 9,794 $ 229 $ 10,023 Realized (loss) gain included in earnings (20) 51 31 Unrealized gain included in other comprehensive income 131 — 131 Purchases of available-for-sale securities 4,030 — 4,030 Principal redemption (3,004) — (3,004) Ending balance at December 31, 2019 $ 10,931 $ 280 $ 11,211 Liabilities: Beginning balance at January 1, 2019 $ — $ 269 $ 269 Realized gain included in earnings — (203) (203) Principal redemption — — — Ending balance at December 31, 2019 $ — $ 66 $ 66
Schedule of assets measured at fair value on nonrecurring basis	Significant Significant Other Other Observable Unobservable Quoted Prices Inputs Inputs Total (dollars in thousands) (Level 1) (Level 2) (Level 3) (Fair Value) September 30, 2020 Commercial $ — $ 824 $ 16,307 $ 17,131 Income producing - commercial real estate — 22,220 7,036 29,256 Owner occupied - commercial real estate — 11,535 2,680 14,215 Real estate mortgage - residential — 1,893 3,442 5,335 Construction - commercial and residential — — 2,274 2,274 Home equity — 109 — 109 Other consumer — — 8 8 Other real estate owned — — — — Total assets measured at fair value on a nonrecurring basis as of September 30, 2020 $ — $ 36,581 $ 31,747 $ 68,328 Significant Significant Other Other Observable Unobservable Quoted Prices Inputs Inputs Total (dollars in thousands) (Level 1) (Level 2) (Level 3) (Fair Value) December 31, 2019 Impaired loans: Commercial $ — $ — $ 10,100 $ 10,100 Income producing - commercial real estate — — 11,948 11,948 Owner occupied - commercial real estate — — 6,934 6,934 Real estate mortgage - residential — — 4,981 4,981 Construction - commercial and residential — — 11,409 11,409 Home equity — — 387 387 Other real estate owned — — 1,487 1,487 Total assets measured at fair value on a nonrecurring basis as of December 31, 2019 $ — $ — $ 47,246 $ 47,246
Schedule of estimated fair values of financial instruments	The estimated fair value of the Company’s financial instruments at September 30, 2020 (unaudited) and December 31, 2019 are as follows: Fair Value Measurements Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying (dollars in thousands) Value Fair Value September 30, 2020 Assets Cash and due from banks $ 7,559 $ 7,559 $ — $ 7,559 $ — Federal funds sold 30,830 30,830 — 30,830 — Interest bearing deposits with other banks 818,719 818,719 — 818,719 — Investment securities 977,570 977,570 — 976,070 1,500 Federal Reserve and Federal Home Loan Bank stock 40,061 40,061 — 40,061 — Loans held for sale 79,084 79,084 — 79,084 — Loans 7,770,040 7,733,020 — — 7,733,020 Bank owned life insurance 76,326 76,326 — 76,326 — Annuity investment 14,541 14,541 — 14,541 — Mortgage banking derivatives 6,015 6,015 — — 6,015 Interest Rate Caps 4,233 4,233 — 4,233 — Liabilities Noninterest bearing deposits 2,384,108 2,384,108 — 2,384,108 — Interest bearing deposits 4,780,160 4,780,160 — 4,780,160 — Certificates of deposit 1,014,517 1,033,703 — 1,033,703 — Customer repurchase agreements 24,293 24,293 — 24,293 — Borrowings 567,980 573,641 — 573,641 — Interest rate swap derivatives 910 910 — 910 — Derivative liability 136 136 — 136 — Interest Rate Caps 4,487 4,487 — 4,487 — December 31, 2019 Assets Cash and due from banks $ 7,539 $ 7,539 $ — $ 7,539 $ — Federal funds sold 38,987 38,987 — 38,987 — Interest bearing deposits with other banks 195,447 195,447 — 195,447 — Investment securities 843,363 843,363 — 832,432 10,931 Federal Reserve and Federal Home Loan Bank stock 35,194 35,194 — 35,194 — Loans held for sale 56,707 56,707 — 56,707 — Loans 7,472,090 7,550,249 — — 7,550,249 Bank owned life insurance 75,724 75,724 — 75,724 — Annuity investment 14,697 14,697 — 14,697 — Interest Rate Caps 280 280 — 280 — Liabilities Noninterest bearing deposits 2,064,367 2,064,367 — 2,064,367 — Interest bearing deposits 3,876,985 3,876,985 — 3,876,985 — Certificates of deposit 1,283,039 1,291,688 — 1,291,688 — Customer repurchase agreements 30,980 30,980 — 30,980 — Borrowings 467,687 328,330 — 328,330 — Interest rate swap derivatives 203 203 — 203 — Derivative liability 86 86 — 86 — Interest Rate Caps 312 312 — 312 — Mortgage banking derivatives 66 66 — — 66
Fair value measurement inputs and valuation techniques	Form Level 3 assets measured at fair value on a recurring or nonrecurring basis as of September 30, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: September 30, 2020 December 31, 2019 (dollars in thousands) Valuation Technique Description Range Weighted Average (1) Fair Value Weighted Average (1) Fair Value Mortgage banking derivatives Pricing Model Pull Through Rate 69.9% - 81.4% 78.44 % $ 6,015 0 76.25 % 76.25 $ 280 (1) Unobservable inputs for mortgage banking derivatives were weighted by loan amount.

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020USD ($)storeborrowerloan	Sep. 30, 2020USD ($)fiscalQuarterstoreloanborrower	Jun. 30, 2020USD ($)loan	Mar. 31, 2020USD ($)	Jan. 01, 2020USD ($)	Dec. 31, 2019USD ($)
Number of temporary loan modifications | loan	321	321	708
Historical rate application, period		12 months
Number of quarters representing reasonable and supportable forecast period | fiscalQuarter		8
Allowance for credit losses	$ 156	$ 156
Reserve for unfunded commitments	5,092	5,092				$ 0
Outstanding exposure	$ 851,000	$ 851,000	$ 1,600,000
Outstanding exposure percentage	10.80%	10.80%	20.00%
Allowance for credit losses	$ 156	$ 156				$ 0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Modifications, Number of Contracts | loan		0
PPP loans
Term of the loans granted		2 years
Interest rate (as a percent)		1.00%
Principal outstanding amount	$ 456,100	$ 456,100
Number of borrowers | borrower	1,400	1,400
Banking Services
Number of locations | store	20	20
Lending Services
Number of locations | store	5	5
Lending Services | Residential Mortgage
Noninterest income	$ 1,600
ASU 2016-13
Reserve for unfunded commitments				$ 4,100
ASU 2016-13 | Impact of ASC 326 Adoption
Allowance for credit losses					$ 10,600
Reserve for unfunded commitments					$ 4,100

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Provision for credit losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accounting Policies [Abstract]
Provision for credit losses- loans	$ 6,589		$ 40,498
Provision for credit losses- AFS debt securities	18		156
Total provision for credit losses	$ 6,607	$ 3,186	$ 40,654	$ 10,146

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Impact of ASC 326 (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans	$ 7,880,255				$ 7,545,748
Allowance for credit losses on loans	(110,215)	$ (108,796)			(73,658)	$ (73,720)	$ (72,086)	$ (69,944)
Liabilities: Reserve for Unfunded Commitments	(5,092)				0
Commercial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans	1,524,613				1,545,906
Allowance for credit losses on loans	(27,224)	(28,078)			(18,832)	(18,169)	(18,136)	(15,857)
Income producing - commercial real estate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans	3,724,839				3,702,747
Allowance for credit losses on loans	(55,440)	(51,863)			(29,265)	(28,527)	(27,010)	(28,034)
Owner occupied - Commercial real estate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans	997,645				985,409
Allowance for credit losses on loans	(13,090)	(12,341)			(5,838)	(5,598)	(5,756)	(6,242)
Real estate mortgage residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans	82,385				104,221
Allowance for credit losses on loans	(1,871)	(1,550)			(1,557)	(1,352)	(1,355)	(965)
Construction - commercial and residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans	879,144				1,125,244
Allowance for credit losses on loans	(11,541)	(13,808)			(17,485)	(19,272)	(19,006)	(18,175)
Construction - commercial and residential | C & I Owner Occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans	140,357				89,490
Home equity
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans	72,648				80,061
Allowance for credit losses on loans	(1,007)	(1,112)			(656)	(575)	(581)	(599)
Other consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans	2,509				2,160
Allowance for credit losses on loans	$ (42)	$ (44)			$ (25)	$ (227)	$ (242)	$ (72)
ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Liabilities: Reserve for Unfunded Commitments			$ (4,100)
ASU 2016-13 | Impact of ASC 326 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Liabilities: Reserve for Unfunded Commitments				$ (4,100)

Investment Securities Availab_3

Investment Securities Available-for-Sale - Amortized cost and estimated fair value of securities available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Amortized Cost	$ 956,803	$ 839,192
Gross Unrealized Gains	22,363	7,206
Gross Unrealized Losses	(1,440)	(3,035)
Allowance for Credit Losses	(156)	0
Investment securities	977,570	843,363
U. S. agency securities
Amortized Cost	130,313	180,228
Gross Unrealized Gains	1,638	621
Gross Unrealized Losses	(665)	(1,055)
Investment securities	131,286	179,794
Residential mortgage backed securities
Amortized Cost	702,655	541,490
Gross Unrealized Gains	14,578	4,337
Gross Unrealized Losses	(590)	(1,975)
Investment securities	716,643	543,852
Municipal bonds
Amortized Cost	90,292	71,902
Gross Unrealized Gains	4,551	2,034
Gross Unrealized Losses	(114)	(5)
Allowance for Credit Losses	(16)
Investment securities	94,713	73,931
Corporate bonds
Amortized Cost	33,345	10,530
Gross Unrealized Gains	1,596	203
Gross Unrealized Losses	(71)
Allowance for Credit Losses	(140)
Investment securities	34,730	10,733
U.S. Treasury
Amortized Cost		34,844
Gross Unrealized Gains		11
Investment securities		34,855
Other equity investments
Amortized Cost	198	198
Investment securities	$ 198	$ 198

Investment Securities Availab_4

Investment Securities Available-for-Sale - Gross unrealized losses and fair value (Details) $ in Thousands	Sep. 30, 2020USD ($)security	Dec. 31, 2019USD ($)security
Debt securities as percentage of total investment securities	99.90%
Number of securities | security	63	148
Less than 12 months, estimated fair value	$ 177,650	$ 274,947
Less than 12 months, unrealized losses	766	1,592
12 months or greater, estimated fair value	50,941	142,223
12 months or greater, unrealized losses	674	1,443
Estimated fair value	228,591	417,170
Unrealized losses	$ 1,440	$ 3,035
U. S. agency securities
Number of securities | security	25	36
Less than 12 months, estimated fair value	$ 20,762	$ 75,159
Less than 12 months, unrealized losses	32	439
12 months or greater, estimated fair value	43,607	51,481
12 months or greater, unrealized losses	633	616
Estimated fair value	64,369	126,640
Unrealized losses	$ 665	$ 1,055
Residential mortgage backed securities
Number of securities | security	33	111
Less than 12 months, estimated fair value	$ 139,848	$ 197,794
Less than 12 months, unrealized losses	549	1,148
12 months or greater, estimated fair value	7,334	90,742
12 months or greater, unrealized losses	41	827
Estimated fair value	147,182	288,536
Unrealized losses	$ 590	$ 1,975
Municipal Bonds
Number of securities | security	4	1
Less than 12 months, estimated fair value	$ 14,086	$ 1,994
Less than 12 months, unrealized losses	114	5
12 months or greater, estimated fair value	0	0
12 months or greater, unrealized losses	0	0
Estimated fair value	14,086	1,994
Unrealized losses	$ 114	$ 5
Corporate bonds
Number of securities | security	1
Less than 12 months, estimated fair value	$ 2,954
Less than 12 months, unrealized losses	71
12 months or greater, estimated fair value	0
12 months or greater, unrealized losses	0
Estimated fair value	2,954
Unrealized losses	$ 71

Investment Securities Availab_5

Investment Securities Available-for-Sale - Expected maturities for residential mortgage backed securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Amortized Cost [Abstract]
Allowance for Credit Losses	$ (156)	$ 0
Amortized Cost	956,803	839,192
Estimated Fair Value [Abstract]
Estimated Fair Value	977,570
U. S. agency securities
Amortized Cost [Abstract]
One year or less	38,000	96,332
After one year through five years	81,181	76,121
Five years through ten years	11,132	7,775
Amortized Cost	130,313	180,228
Estimated Fair Value [Abstract]
One year or less	38,111	96,226
After one year through five years	82,057	75,821
Five years through ten years	11,224	7,747
Residential mortgage backed securities
Amortized Cost [Abstract]
Residential mortgage backed securities	702,655	541,490
Amortized Cost	702,655	541,490
Estimated Fair Value [Abstract]
Residential mortgage backed securities	716,643	543,852
Municipal bonds
Amortized Cost [Abstract]
One year or less	4,834	5,897
After one year through five years	26,677	21,416
Five years through ten years	56,781	42,589
After ten years	2,000	2,000
Amortized Cost	90,292	71,902
Estimated Fair Value [Abstract]
One year or less	4,868	5,969
After one year through five years	27,912	21,953
Five years through ten years	59,771	44,015
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value	2,072	1,994
Corporate bonds
Amortized Cost [Abstract]
One year or less	5,214	502
After one year through five years	21,156	8,528
After ten years	6,975	1,500
Amortized Cost	33,345	10,530
Estimated Fair Value [Abstract]
One year or less	5,257	508
After one year through five years	22,124	8,725
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value	7,489	1,500
U.S. Treasury
Amortized Cost [Abstract]
Residential mortgage backed securities		34,844
Amortized Cost		34,844
Estimated Fair Value [Abstract]
Residential mortgage backed securities		34,855
Other equity investments
Amortized Cost [Abstract]
Residential mortgage backed securities	198	198
Amortized Cost	198	198
Estimated Fair Value [Abstract]
Residential mortgage backed securities	$ 198	198
Estimated Fair Value		$ 843,363

Investment Securities Availab_6

Investment Securities Available-for-Sale - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Federal Reserve and Federal Home Loan Bank stock	$ 40,061,000		$ 40,061,000		$ 35,194,000
Allowance for credit losses	$ 156,000		$ 156,000		0
Debt securities as percentage of total investment securities	99.90%		99.90%
Debt securities weighted average duration			3 years 1 month 6 days
Proceeds from sale/call of available-for-sale securities			$ 130,265,000	$ 82,982,000
Holdings of securities of any one issuer	10.00%		10.00%
Gross realized gains on sales of investment securities			$ 1,700,000	1,600,000
Noninterest Income	$ 17,844,000	$ 6,314,000	35,809,000	18,965,000
Gross realized losses on sales of investment			0	$ 0
Other Assets
Accrued interest on available for sale securities	3,100,000		3,100,000		3,200,000
Interest Rate Swap
Noninterest Income			829,000
Collateral Pledged
Debt Securities, Available-for-sale, Restricted	$ 320,000,000		$ 320,000,000		$ 378,000,000

Mortgage Banking Derivatives (D

Mortgage Banking Derivatives (Details) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Derivative asset	$ 4,306,000			$ 4,306,000		$ 311,000
Derivative liability	5,216,000			5,216,000		611,000
Designated Cash Flow Hedge
Noninterest Income, Other	34,000	$ 277,000		27,000	$ 228,000
Mortgage Banking Derivative
Derivative Asset, Notional Amount	6,000,000	134,300,000	$ 134,300,000	6,000,000	$ 134,300,000
Noninterest Income, Other	$ 145,000	$ 30,000	$ 249,000	$ 309,000
Mortgage Banking Derivative | Other Assets
Derivative asset						280,000
Mortgage Banking Derivative | Other Liabilities
Derivative liability						$ 66,000

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Loans and leases receivable, net of deferred income	$ 7,880,255		$ 7,545,748
Loans, percent	100.00%		100.00%
Less allowance for credit losses	$ (110,215)	$ (108,796)	$ (73,658)	$ (73,720)	$ (72,086)	$ (69,944)
Loans, net	7,770,040		7,472,090
Accrued interest receivable and other assets
Accrued interest on available for sale securities	43,700		21,300
Commercial
Loans and leases receivable, net of deferred income	$ 1,524,613		$ 1,545,906
Loans, percent	19.00%		20.00%
Less allowance for credit losses	$ (27,224)	(28,078)	$ (18,832)	(18,169)	(18,136)	(15,857)
PPP loans
Loans and leases receivable, net of deferred income	$ 456,115		$ 0
Loans, percent	6.00%		0.00%
Income producing - commercial real estate
Loans and leases receivable, net of deferred income	$ 3,724,839		$ 3,702,747
Loans, percent	47.00%		50.00%
Less allowance for credit losses	$ (55,440)	(51,863)	$ (29,265)	(28,527)	(27,010)	(28,034)
Owner occupied - Commercial real estate
Loans and leases receivable, net of deferred income	$ 997,645		$ 985,409
Loans, percent	13.00%		13.00%
Less allowance for credit losses	$ (13,090)	(12,341)	$ (5,838)	(5,598)	(5,756)	(6,242)
Real estate mortgage residential
Loans and leases receivable, net of deferred income	$ 82,385		$ 104,221
Loans, percent	1.00%		1.00%
Less allowance for credit losses	$ (1,871)	(1,550)	$ (1,557)	(1,352)	(1,355)	(965)
Construction - commercial and residential
Loans and leases receivable, net of deferred income	879,144		1,125,244
Less allowance for credit losses	(11,541)	(13,808)	(17,485)	(19,272)	(19,006)	(18,175)
Construction - commercial and residential | Commercial And Residential
Loans and leases receivable, net of deferred income	$ 879,144		$ 1,035,754
Loans, percent	11.00%		14.00%
Construction - commercial and residential | C & I Owner Occupied
Loans and leases receivable, net of deferred income	$ 140,357		$ 89,490
Loans, percent	2.00%		1.00%
Home equity
Loans and leases receivable, net of deferred income	$ 72,648		$ 80,061
Loans, percent	1.00%		1.00%
Less allowance for credit losses	$ (1,007)	(1,112)	$ (656)	(575)	(581)	(599)
Other consumer
Loans and leases receivable, net of deferred income	$ 2,509		$ 2,160
Loans, percent	0.00%		0.00%
Less allowance for credit losses	$ (42)	$ (44)	$ (25)	$ (227)	$ (242)	$ (72)

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses - Detail activity in the allowance for credit losses by portfolio segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Allowance for Credit Losses, beginning balance	$ 108,796	$ 72,086	$ 73,658	$ 69,944
Impact of adopting ASC 326	(10,931)		(10,931)		$ 10,614
Loans charged-off	(5,228)	(1,794)	(14,691)	(7,144)
Allowance for Loan and Lease Loss, Recovery of Bad Debts	58	242	136	774
Net loans (charged-off) recoveries	(5,170)	(1,552)	(14,555)	(6,370)
Provision for Loan and Lease Losses	6,589	3,186	40,498	10,146
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	17,617	10,434	17,617	10,434
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	92,598	63,286	92,598	63,286
Allowance for Credit Losses, ending balance	110,215	73,720	110,215	73,720
Commercial
Allowance for Credit Losses, beginning balance	28,078	18,136	18,832	15,857
Impact of adopting ASC 326					892
Loans charged-off	(187)	(1,794)	(7,332)	(1,799)
Allowance for Loan and Lease Loss, Recovery of Bad Debts	45	210	116	377
Net loans (charged-off) recoveries	(142)	(1,584)	(7,216)	(1,422)
Provision for Loan and Lease Losses	(712)	1,617	14,716	3,734
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	9,593	8,196	9,593	8,196
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	17,631	9,973	17,631	9,973
Allowance for Credit Losses, ending balance	27,224	18,169	27,224	18,169
Income producing - commercial real estate
Allowance for Credit Losses, beginning balance	51,863	27,010	29,265	28,034
Impact of adopting ASC 326					11,230
Loans charged-off	(3,750)		(4,300)	(5,343)
Allowance for Loan and Lease Loss, Recovery of Bad Debts				302
Net loans (charged-off) recoveries	(3,750)	0	(4,300)	(5,041)
Provision for Loan and Lease Losses	7,327	1,517	19,245	5,534
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	5,999	1,200	5,999	1,200
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	49,441	27,327	49,441	27,327
Allowance for Credit Losses, ending balance	55,440	28,527	55,440	28,527
Owner occupied - Commercial real estate
Allowance for Credit Losses, beginning balance	12,341	5,756	5,838	6,242
Impact of adopting ASC 326					4,674
Loans charged-off	(20)		(20)
Allowance for Loan and Lease Loss, Recovery of Bad Debts				2
Net loans (charged-off) recoveries	(20)	0	(20)	2
Provision for Loan and Lease Losses	769	(158)	2,598	(646)
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	670	375	670	375
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	12,420	5,223	12,420	5,223
Allowance for Credit Losses, ending balance	13,090	5,598	13,090	5,598
Real estate mortgage residential
Allowance for Credit Losses, beginning balance	1,550	1,355	1,557	965
Impact of adopting ASC 326					(301)
Allowance for Loan and Lease Loss, Recovery of Bad Debts				3
Net loans (charged-off) recoveries		0		3
Provision for Loan and Lease Losses	321	(3)	615	384
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	1,148	650	1,148	650
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	723	702	723	702
Allowance for Credit Losses, ending balance	1,871	1,352	1,871	1,352
Construction - commercial and residential
Allowance for Credit Losses, beginning balance	13,808	19,006	17,485	18,175
Impact of adopting ASC 326					(6,143)
Loans charged-off	(1,179)		(2,947)
Allowance for Loan and Lease Loss, Recovery of Bad Debts		15		52
Net loans (charged-off) recoveries	1,179	15	(2,947)	52
Provision for Loan and Lease Losses	(1,088)	251	3,146	1,045
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	204	0	204	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	11,337	19,272	11,337	19,272
Allowance for Credit Losses, ending balance	11,541	19,272	11,541	19,272
Home equity
Allowance for Credit Losses, beginning balance	1,112	581	656	599
Impact of adopting ASC 326					245
Loans charged-off	(92)		(92)
Net loans (charged-off) recoveries	(92)		(92)
Provision for Loan and Lease Losses	(13)	(6)	198	(24)
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		13		13
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,007	562	1,007	562
Allowance for Credit Losses, ending balance	1,007	575	1,007	575
Other consumer
Allowance for Credit Losses, beginning balance	44	242	25	72
Impact of adopting ASC 326					$ 17
Loans charged-off				(2)
Allowance for Loan and Lease Loss, Recovery of Bad Debts	13	17	20	38
Net loans (charged-off) recoveries	13	17	20	36
Provision for Loan and Lease Losses	(15)	(32)	(20)	119
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	3	0	3	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	39	227	39	227
Allowance for Credit Losses, ending balance	$ 42	$ 227	$ 42	$ 227

Loans and Allowance for Credi_5

Loans and Allowance for Credit Losses - Amortized cost basis of collateral-dependent loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Loans and leases receivable, net of deferred income	$ 7,880,255	$ 7,545,748
Commercial
Loans and leases receivable, net of deferred income	1,524,613	1,545,906
Income producing - commercial real estate
Loans and leases receivable, net of deferred income	3,724,839	3,702,747
Owner occupied - Commercial real estate
Loans and leases receivable, net of deferred income	997,645	985,409
Real estate mortgage residential
Loans and leases receivable, net of deferred income	82,385	104,221
Construction - commercial and residential
Loans and leases receivable, net of deferred income	879,144	1,125,244
Home equity
Loans and leases receivable, net of deferred income	72,648	80,061
Other consumer
Loans and leases receivable, net of deferred income	2,509	$ 2,160
Business or Other Assets
Loans and leases receivable, net of deferred income	17,276
Business or Other Assets | Commercial
Loans and leases receivable, net of deferred income	14,075
Business or Other Assets | Income producing - commercial real estate
Loans and leases receivable, net of deferred income	3,193
Business or Other Assets | Other consumer
Loans and leases receivable, net of deferred income	8
Real Estate
Loans and leases receivable, net of deferred income	50,944
Real Estate | Commercial
Loans and leases receivable, net of deferred income	2,948
Real Estate | Income producing - commercial real estate
Loans and leases receivable, net of deferred income	26,063
Real Estate | Owner occupied - Commercial real estate
Loans and leases receivable, net of deferred income	14,215
Real Estate | Real estate mortgage residential
Loans and leases receivable, net of deferred income	5,335
Real Estate | Construction - commercial and residential
Loans and leases receivable, net of deferred income	2,274
Real Estate | Home equity
Loans and leases receivable, net of deferred income	$ 109

Loans and Allowance for Credi_6

Loans and Allowance for Credit Losses - Risk category of loans by class of loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Prior	$ 1,857,809
2016	750,571
2017	1,299,313
2018	1,621,689
2019	1,227,746
2020	1,123,127
Loans	7,880,255	$ 7,545,748
Pass
Loans		7,356,769
Watch
Loans		109,313
Special Mention
Loans		11,460
Substandard
Loans		68,206
Commercial
Prior	426,495
2016	132,569
2017	340,932
2018	271,637
2019	197,475
2020	155,505
Loans	1,524,613	1,545,906
Commercial | Pass
Prior	375,848
2016	124,678
2017	306,487
2018	249,287
2019	193,594
2020	155,505
Loans	1,405,399	1,470,636
Commercial | Watch
Prior	32,430
2018	9,478
Loans	81,106	38,522
Commercial | Special Mention
Prior	1,302
2016	0
2017	0
2018	451
2019	0
Loans	1,753	11,460
Commercial | Substandard
Prior	16,915
2016	4,766
2017	2,046
2018	12,421
2019	207
Loans	36,355	25,288
PPP loans
2020	456,115
Loans	456,115	0
PPP loans | Pass
2020	456,115
Loans	456,115
Income producing - commercial real estate
Prior	919,795
2016	418,970
2017	500,252
2018	744,303
2019	763,798
2020	377,721
Loans	3,724,839	3,702,747
Income producing - commercial real estate | Pass
Prior	756,002
2016	402,690
2017	421,428
2018	685,804
2019	705,972
2020	377,721
Loans	3,349,617	3,667,585
Income producing - commercial real estate | Watch
Prior	150,215
2019	4,640
Loans	298,119	16,069
Income producing - commercial real estate | Special Mention
Prior	203
2016	0
2017	0
2018	0
2019	47,644
Loans	47,847
Income producing - commercial real estate | Substandard
Prior	13,375
2016	800
2017	4,656
2018	4,883
2019	5,542
Loans	29,256	19,093
Owner occupied - Commercial real estate
Prior	404,465
2016	108,183
2017	117,789
2018	235,517
2019	102,522
2020	29,169
Loans	997,645	985,409
Owner occupied - Commercial real estate | Pass
Prior	344,863
2016	105,381
2017	115,144
2018	139,991
2019	74,286
2020	29,169
Loans	808,834	925,800
Owner occupied - Commercial real estate | Watch
Prior	50,018
2016	2,038
2018	95,171
2019	24,761
Loans	174,633	53,146
Owner occupied - Commercial real estate | Substandard
Prior	9,584
2016	764
2017	0
2018	355
2019	3,475
Loans	14,178	6,463
Real estate mortgage residential
Prior	19,914
2016	7,564
2017	10,377
2018	14,593
2019	23,100
2020	6,837
Loans	82,385	104,221
Real estate mortgage residential | Pass
Prior	18,121
2016	3,410
2017	10,377
2018	14,593
2019	23,100
2020	6,837
Loans	76,438	98,228
Real estate mortgage residential | Watch
Prior	612
2016	0
Loans	612	628
Real estate mortgage residential | Substandard
Prior	1,181
Loans	5,335	5,365
Construction - commercial and residential
Prior	33,388
2016	67,569
2017	312,959
2018	314,061
2019	104,335
2020	46,832
Loans	879,144	1,125,244
Construction - commercial and residential | Pass
Prior	32,535
2016	65,703
2017	286,922
2018	314,061
2019	104,335
2020	46,832
Loans	850,388	1,113,734
Construction - commercial and residential | Watch
Prior	853
2017	25,629
Loans	26,482
Construction - commercial and residential | Substandard
2016	1,866
2017	408
Loans	2,274	11,510
C & I Owner Occupied
Prior	11,949
2016	10,577
2017	8,622
2018	33,214
2019	31,998
2020	43,997
Loans	140,357
C & I Owner Occupied | Pass
Prior	11,162
2016	10,577
2017	6,501
2018	29,963
2019	18,761
2020	43,997
Loans	120,961
C & I Owner Occupied | Watch
Prior	787
2017	2,121
2018	3,251
2019	13,237
Loans	19,396
Home equity
Prior	39,754
2016	4,970
2017	8,274
2018	8,314
2019	4,418
2020	6,918
Loans	72,648	80,061
Home equity | Pass
Prior	38,049
2016	4,970
2017	8,274
2018	8,314
2019	4,369
2020	6,918
Loans	70,894	78,626
Home equity | Watch
Prior	1,401
Loans	1,401	948
Home equity | Substandard
Prior	304
Loans	353	487
Other consumer
Prior	2,049
2016	169
2017	108
2018	50
2019	100
2020	33
Loans	2,509	2,160
Other consumer | Pass
Prior	2,039
2016	169
2017	108
2018	50
2019	100
2020	33
Loans	2,499	$ 2,160
Other consumer | Substandard
Prior	10
Loans	$ 10

Loans and Allowance for Credi_7

Loans and Allowance for Credit Losses - Loans by class and credit quality indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Loans	$ 7,880,255	$ 7,545,748
Pass
Loans		7,356,769
Watch
Loans		109,313
Special Mention
Loans		11,460
Substandard
Loans		68,206
Commercial
Loans	1,524,613	1,545,906
Commercial | Pass
Loans	1,405,399	1,470,636
Commercial | Watch
Loans	81,106	38,522
Commercial | Special Mention
Loans	1,753	11,460
Commercial | Substandard
Loans	36,355	25,288
Income producing - commercial real estate
Loans	3,724,839	3,702,747
Income producing - commercial real estate | Pass
Loans	3,349,617	3,667,585
Income producing - commercial real estate | Watch
Loans	298,119	16,069
Income producing - commercial real estate | Special Mention
Loans	47,847
Income producing - commercial real estate | Substandard
Loans	29,256	19,093
Owner occupied - Commercial real estate
Loans	997,645	985,409
Owner occupied - Commercial real estate | Pass
Loans	808,834	925,800
Owner occupied - Commercial real estate | Watch
Loans	174,633	53,146
Owner occupied - Commercial real estate | Substandard
Loans	14,178	6,463
Real estate mortgage residential
Loans	82,385	104,221
Real estate mortgage residential | Pass
Loans	76,438	98,228
Real estate mortgage residential | Watch
Loans	612	628
Real estate mortgage residential | Substandard
Loans	5,335	5,365
Construction - commercial and residential
Loans	879,144	1,125,244
Construction - commercial and residential | C & I Owner Occupied
Loans	140,357	89,490
Construction - commercial and residential | Pass
Loans	850,388	1,113,734
Construction - commercial and residential | Watch
Loans	26,482
Construction - commercial and residential | Substandard
Loans	2,274	11,510
Home equity
Loans	72,648	80,061
Home equity | Pass
Loans	70,894	78,626
Home equity | Watch
Loans	1,401	948
Home equity | Substandard
Loans	353	487
Other consumer
Loans	2,509	2,160
Other consumer | Pass
Loans	2,499	$ 2,160
Other consumer | Substandard
Loans	$ 10

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses - Class of loan, an aging analysis and the recorded investments in loans past due (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current Loans	$ 7,796,448	$ 7,470,755
Loans Past Due	25,747	26,264
Non-Accrual	58,060	48,729
Financing Receivable, after Allowance for Credit Loss	7,880,255	7,545,748
C & I Owner Occupied
Current Loans	138,837
Loans Past Due	1,520
Non-Accrual	0
Financing Receivable, after Allowance for Credit Loss	140,357
Commercial
Current Loans	1,494,038	1,527,134
Loans Past Due	14,739	3,844
Non-Accrual	15,836	14,928
Financing Receivable, after Allowance for Credit Loss	1,524,613	1,545,906
PPP loans
Current Loans	456,115
Non-Accrual	0	0
Financing Receivable, after Allowance for Credit Loss	456,115
Income producing - commercial real estate
Current Loans	3,696,949	3,687,494
Loans Past Due	7,822	5,542
Non-Accrual	20,068	9,711
Financing Receivable, after Allowance for Credit Loss	3,724,839	3,702,747
Owner occupied - Commercial real estate
Current Loans	983,021	965,938
Loans Past Due	446	13,008
Non-Accrual	14,178	6,463
Financing Receivable, after Allowance for Credit Loss	997,645	985,409
Real estate mortgage residential
Current Loans	76,798	95,057
Loans Past Due		3,533
Non-Accrual	5,587	5,631
Financing Receivable, after Allowance for Credit Loss	82,385	104,221
Construction - commercial and residential
Current Loans	876,361	1,113,735
Loans Past Due	509
Non-Accrual	2,274	11,509
Financing Receivable, after Allowance for Credit Loss	879,144	1,125,244
Home equity
Current Loans	71,837	79,246
Loans Past Due	702	328
Non-Accrual	109	487
Financing Receivable, after Allowance for Credit Loss	72,648	80,061
Other consumer
Current Loans	2,492	2,151
Loans Past Due	9	9
Non-Accrual	8	0
Financing Receivable, after Allowance for Credit Loss	2,509	2,160
30 to 59 days past due
Loans Past Due	6,770	19,740
30 to 59 days past due | C & I Owner Occupied
Loans Past Due	1,520
30 to 59 days past due | Commercial
Loans Past Due	4,585	3,063
30 to 59 days past due | Owner occupied - Commercial real estate
Loans Past Due	0	13,008
30 to 59 days past due | Real estate mortgage residential
Loans Past Due		3,533
30 to 59 days past due | Home equity
Loans Past Due	656	136
60-89 days past due
Loans Past Due	18,977	6,524
60-89 days past due | Commercial
Loans Past Due	10,154	781
60-89 days past due | Income producing - commercial real estate
Loans Past Due	7,822	5,542
60-89 days past due | Owner occupied - Commercial real estate
Loans Past Due	446
60-89 days past due | Construction - commercial and residential
Loans Past Due	509
60-89 days past due | Home equity
Loans Past Due	46	192
60-89 days past due | Other consumer
Loans Past Due	$ 0	$ 9

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses - Information related to nonaccrual loans by class (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Non accrual with no allowance for credit Loss	$ 23,303
Nonaccrual with an allowance for credit loss	34,757
Nonaccrual loan, recorded investment	58,060
Financing Receivable, Nonaccrual	58,060		$ 48,729
TDR's performing under restructured terms	10,100		16,600
Interest on nonaccrual loans	2,600	$ 2,700
Interest income, accrual method	282	$ 598	941
Commercial
Non accrual with no allowance for credit Loss	572
Nonaccrual with an allowance for credit loss	15,262
Nonaccrual loan, recorded investment	15,834
Financing Receivable, Nonaccrual	15,836		14,928
Interest income, accrual method			270
PPP loans
Non accrual with no allowance for credit Loss	0
Nonaccrual with an allowance for credit loss	0
Nonaccrual loan, recorded investment	0
Financing Receivable, Nonaccrual	0		0
Income producing - commercial real estate
Non accrual with no allowance for credit Loss	6,690
Nonaccrual with an allowance for credit loss	13,379
Nonaccrual loan, recorded investment	20,069
Financing Receivable, Nonaccrual	20,068		9,711
Interest income, accrual method			382
Owner occupied - Commercial real estate
Non accrual with no allowance for credit Loss	12,627
Nonaccrual with an allowance for credit loss	1,551
Nonaccrual loan, recorded investment	14,178
Financing Receivable, Nonaccrual	14,178		6,463
Interest income, accrual method			197
Real estate mortgage residential
Non accrual with no allowance for credit Loss	1,434
Nonaccrual with an allowance for credit loss	4,154
Nonaccrual loan, recorded investment	5,588
Financing Receivable, Nonaccrual	5,587		5,631
Construction - commercial and residential
Non accrual with no allowance for credit Loss	1,866
Nonaccrual with an allowance for credit loss	408
Nonaccrual loan, recorded investment	2,274
Financing Receivable, Nonaccrual	2,274		11,509
Interest income, accrual method			92
Home equity
Non accrual with no allowance for credit Loss	109
Nonaccrual with an allowance for credit loss	0
Nonaccrual loan, recorded investment	109
Financing Receivable, Nonaccrual	109		487
Other consumer
Non accrual with no allowance for credit Loss	5
Nonaccrual with an allowance for credit loss	3
Nonaccrual loan, recorded investment	8
Financing Receivable, Nonaccrual	$ 8		$ 0

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses - Impaired loans, by class of loan (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Impaired Financing Receivable, Unpaid Principal Balance			$ 54,883
Impaired Financing Receivable, with No Related Allowance, Recorded Investment			35,235
Impaired Financing Receivable, with Related Allowance, Recorded Investment			19,648
Impaired Financing Receivable, Recorded Investment			54,883
Impaired Financing Receivable, Related Allowance			9,124
Impaired Financing Receivable, Average Recorded Investment			54,258
Interest income, accrual method	$ 282	$ 598	941
Commercial
Impaired Financing Receivable, Unpaid Principal Balance			15,814
Impaired Financing Receivable, with No Related Allowance, Recorded Investment			11,858
Impaired Financing Receivable, with Related Allowance, Recorded Investment			3,956
Impaired Financing Receivable, Recorded Investment			15,814
Impaired Financing Receivable, Related Allowance			5,714
Impaired Financing Receivable, Average Recorded Investment			15,682
Interest income, accrual method			270
Income producing - commercial real estate
Impaired Financing Receivable, Unpaid Principal Balance			14,093
Impaired Financing Receivable, with No Related Allowance, Recorded Investment			2,713
Impaired Financing Receivable, with Related Allowance, Recorded Investment			11,380
Impaired Financing Receivable, Recorded Investment			14,093
Impaired Financing Receivable, Related Allowance			2,145
Impaired Financing Receivable, Average Recorded Investment			18,133
Interest income, accrual method			382
Owner occupied - Commercial real estate
Impaired Financing Receivable, Unpaid Principal Balance			7,349
Impaired Financing Receivable, with No Related Allowance, Recorded Investment			6,388
Impaired Financing Receivable, with Related Allowance, Recorded Investment			961
Impaired Financing Receivable, Recorded Investment			7,349
Impaired Financing Receivable, Related Allowance			415
Impaired Financing Receivable, Average Recorded Investment			6,107
Interest income, accrual method			197
Real estate mortgage residential
Impaired Financing Receivable, Unpaid Principal Balance			5,631
Impaired Financing Receivable, with No Related Allowance, Recorded Investment			3,175
Impaired Financing Receivable, with Related Allowance, Recorded Investment			2,456
Impaired Financing Receivable, Recorded Investment			5,631
Impaired Financing Receivable, Related Allowance			650
Impaired Financing Receivable, Average Recorded Investment			5,638
Construction - commercial and residential
Impaired Financing Receivable, Unpaid Principal Balance			11,509
Impaired Financing Receivable, with No Related Allowance, Recorded Investment			11,101
Impaired Financing Receivable, with Related Allowance, Recorded Investment			408
Impaired Financing Receivable, Recorded Investment			11,509
Impaired Financing Receivable, Related Allowance			100
Impaired Financing Receivable, Average Recorded Investment			8,211
Interest income, accrual method			92
Home equity
Impaired Financing Receivable, Unpaid Principal Balance			487
Impaired Financing Receivable, with Related Allowance, Recorded Investment			487
Impaired Financing Receivable, Recorded Investment			487
Impaired Financing Receivable, Related Allowance			100
Impaired Financing Receivable, Average Recorded Investment			$ 487

Loans and Allowance for Cred_11

Loans and Allowance for Credit Losses - Loans modified in troubled debt restructurings (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020loan	Sep. 30, 2019USD ($)loan	Sep. 30, 2020USD ($)	Sep. 30, 2020contract	Sep. 30, 2020loan	Sep. 30, 2019USD ($)contract
Restructured accruing		$ 309	$ 10,522			$ 8,568
Restructured nonaccruing			8,850			1,521
Troubled Debt Restructured			19,372			10,089
Specific allowance			856			1,000
Financing Receivable, Troubled Debt Restructuring, Subsequent Default			13,669			$ 2,300
Number of loans - restructured accruing	0	1		7	7	7
Number of loans - restructured nonaccruing | contract				4		3
Number of TDR loans | contract				11		10
Commercial
Restructured accruing			1,297			$ 898
Restructured nonaccruing			138			1,521
Troubled Debt Restructured			1,435			2,419
Specific allowance			227			0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default			138			0
Income producing - commercial real estate
Restructured accruing			9,188			4,387
Restructured nonaccruing			6,342			0
Troubled Debt Restructured			15,530			4,387
Specific allowance			629			1,000
Financing Receivable, Troubled Debt Restructuring, Subsequent Default			11,161			2,300
Owner occupied - Commercial real estate
Restructured accruing			37			3,283
Restructured nonaccruing			2,370			0
Troubled Debt Restructured			2,407			3,283
Specific allowance			0			0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default			2,370			0
Construction Commercial Real Estate
Restructured accruing			0			0
Restructured nonaccruing			0			0
Troubled Debt Restructured			0			0
Specific allowance			0			0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default			$ 0			$ 0

Loans and Allowance for Cred_12

Loans and Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Unamortized net deferred fees	$ 33,000			$ 33,000		$ 25,200
Serving assets not reflected as loan balances	94,000			94,000		99,000
Credit modification exposure				$ 851,000
Credit modification exposure percentage				10.80%
Financing receivable, net	$ 7,880,255			$ 7,880,255		7,545,748
Interest on nonaccrual loans				$ 2,600	$ 2,700
Loans secured by real estate (percent)	79.00%			79.00%
Increase in allowance for credit losses	$ 6,589		$ 3,186	$ 40,498	10,146
Reserve for unfunded commitments	5,092			5,092		0
Provision for credit losses utilizing the newly adopted methodology				856	1,000
Net charge-offs	(5,170)		(1,552)	(14,555)	(6,370)
Loans and leases receivable, net of deferred income	7,880,255			7,880,255		7,545,748
ASU 2016-13
Increase in allowance for credit losses		$ 14,700
Reserve for unfunded commitments		$ 4,100
Criticized | ASU 2016-13
Provision for credit losses utilizing the newly adopted methodology	$ 6,600			$ 40,700
ADC Loans
Percent of ADC loan portfolio using interest reserves	58.00%			58.00%
Financing receivable, net	$ 1,400,000			$ 1,400,000
Home equity
Financing receivable, net	72,648			72,648		80,061
Increase in allowance for credit losses	(13)		(6)	198	(24)
Net charge-offs	(92)			(92)
Loans and leases receivable, net of deferred income	$ 72,648			$ 72,648		80,061
Owner Occupied Commercial Real Estate and Construction
Percent of loan portfolio	14.00%			14.00%
Income Producing Commercial Real Estate and Real Estate Construction
Percent of loan portfolio	58.00%			58.00%
Maximum loan to value (percent)	80.00%			80.00%
Income Producing Commercial Real Estate and Real Estate Construction | Minimum
Minimum cash flow debt service coverage ratio	1.15			1.15
Income Producing Commercial Real Estate and Real Estate Construction | Maximum
Minimum cash flow debt service coverage ratio	1			1
Commercial Real Estate and Real Estate Construction Loans
Percent of loan portfolio	73.00%			73.00%
Commercial
Percent of loan portfolio	19.00%			19.00%
Financing receivable, net	$ 1,524,613			$ 1,524,613		1,545,906
Increase in allowance for credit losses	(712)		1,617	14,716	3,734
Provision for credit losses utilizing the newly adopted methodology				227	0
Net charge-offs	(142)		(1,584)	(7,216)	(1,422)
Loans and leases receivable, net of deferred income	$ 1,524,613			$ 1,524,613		1,545,906
Commercial | Minimum
Loan period, preferred term				5 years
Commercial | Maximum
Loan period				10 years
Loan period, preferred term				7 years
Amortization term				25 years
Commercial | SBA Loans
Percent of loan portfolio	1.00%			1.00%
Consumer Portfolio Segment
Percent of loan portfolio	1.00%			1.00%
Consumer Portfolio Segment | Land Acquisition Development and Construction Loans | Maximum
Loan period				24 months
PPP loans
Financing receivable, net	$ 456,115			$ 456,115
Loans and leases receivable, net of deferred income	$ 456,115			$ 456,115		0
PPP loans | SBA Loans
Percent of loan portfolio	6.00%			6.00%
Real estate mortgage residential
Financing receivable, net	$ 82,385			$ 82,385		104,221
Increase in allowance for credit losses	321		(3)	615	384
Net charge-offs			0		3
Loans and leases receivable, net of deferred income	$ 82,385			$ 82,385		$ 104,221
Real estate mortgage residential | Real Estate Loan
Percent of loan portfolio	1.00%			1.00%
Repricing duration				17 months
Real estate mortgage residential | Land Acquisition Development and Construction Loans | Maximum
Loan period				36 months
Non-Performing Loans
TDRs	$ 6,300		$ 900	$ 6,300	$ 900

Loans and Allowance for Cred_13

Loans and Allowance for Credit Losses - Additional Information II (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)loan	Sep. 30, 2019USD ($)loan	Sep. 30, 2020USD ($)	Sep. 30, 2020USD ($)contract	Sep. 30, 2020USD ($)loan	Sep. 30, 2019USD ($)contract
Interest on nonaccrual loans			$ 2,600			$ 2,700
Number of TDR loans | contract				11		10
Troubled Debt Restructurings			19,372			$ 10,089
Number of loans - restructured accruing	0	1		7	7	7
Restructured accruing		$ 309	10,522			$ 8,568
Number of defaulted loans charged-off | contract				2
Number of loans paydowns | loan	0
Non-Performing Loans
TDRs	$ 6,300	$ 900	$ 6,300	$ 6,300	$ 6,300	$ 900

Leases - Additional Information

Leases - Additional Information (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2020USD ($)lease	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 27,180	$ 27,180	$ 26,552	$ 27,372
Operating lease liabilities	$ 30,457	30,457		29,959
Operating Lease Cost (Cost resulting from lease payments)		$ 6,253	$ 5,857
Existence of option to extend leases		true
Existence of option to terminate leases		true
Probability that lease options will be exercised	90.00%	90.00%
Number of operating leases signed but not yet commenced | lease		0
Impact of ASC 326 Adoption | ASU 2016-02 Leases (Topic 842)
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 27,200	$ 27,200		27,400
Operating lease liabilities	30,500	$ 30,500		$ 30,000
One-time Adjustment | ASU 2016-02 Leases (Topic 842)
Lessee, Lease, Description [Line Items]
Operating Lease Cost (Cost resulting from lease payments)	$ 1,700

Leases - Lease Costs (Details)

Leases - Lease Costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Leases [Abstract]
Operating Lease Cost (Cost resulting from lease payments)	$ 6,253	$ 5,857
Variable Lease Cost (Cost excluded from lease payments)	720	815
Sublease Income	(261)	(282)
Net Lease Cost	6,712	6,390
Operating Lease - Operating Cash Flows (Fixed Payments)	6,648	6,382
Right-of-Use Assets - Operating Leases	$ 27,180	$ 26,552	$ 27,372
Weighted Average Lease Term - Operating Leases	5 years 3 months 7 days	5 years 1 month 9 days
Weighted Average Discount Rate - Operating Leases	4.00%	4.00%

Leases - Future minimum payment

Leases - Future minimum payments for operating leases (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Twelve Months Ended:
September 30, 2021	$ 8,384
September 30, 2022	6,592
September 30, 2023	5,296
September 30, 2024	4,595
September 30, 2025	3,847
Thereafter	5,162
Total Future Minimum Lease Payments	33,876
Amounts Representing Interest	(3,419)
Present Value of Net Future Minimum Lease Payments	$ 30,457	$ 29,959

Other Derivatives - Balance She

Other Derivatives - Balance Sheet Category and Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair value	$ 4,306	$ 311
Other Liabilities
Notional amount	203,882	134,059
Fair value	4,697	471
Other Liabilities | Interest Rate Product
Notional amount	176,851	56,806
Fair value	4,561	319
Other Liabilities | Mortgage Banking
Notional amount	0	49,869
Fair value	0	66
Other Liabilities | Other Contracts
Notional amount	27,031	27,384
Fair value	136	86
Designated Cash Flow Hedge | Other Liabilities | Interest Rate Product
Notional amount	100,000	100,000
Fair value	910	206
Not Designated as Hedging Instrument
Notional amount	586,839	106,675
Fair value	10,321	591
Not Designated as Hedging Instrument | Other Assets | Interest Rate Product
Notional amount	176,851	56,806
Fair value	4,306	311
Not Designated as Hedging Instrument | Other Assets | Mortgage Banking
Notional amount	409,988	49,869
Fair value	$ 6,015	$ 280

Other Derivatives - Cash flow h

Other Derivatives - Cash flow hedges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Amount of Gain or (Loss) recognized in OCI	$ 31	$ 24	$ (1,986)	$ (2,210)
Designated Cash Flow Hedge
Amount of Gain or (Loss) recognized in OCI	31	(107)	(1,517)	(1,974)
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	(389)	264	(755)	1,868
Designated Cash Flow Hedge | Interest Expense
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	(389)	264	(755)	1,039
Designated Cash Flow Hedge | Interest Rate Product | Gain on sale of investment securities
Amount of Gain or (Loss) recognized in OCI				0
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income				829
Designated Cash Flow Hedge | Interest Rate Products
Amount of Gain or (Loss) recognized in OCI	$ 31	$ (107)
Designated Cash Flow Hedge | Interest Rate Products | Interest Expense
Amount of Gain or (Loss) recognized in OCI			$ (1,517)	$ (1,974)

Other Derivatives - Designated

Other Derivatives - Designated cash flow hedges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Designated Cash Flow Hedge
Reclassification of Cash Flow Hedge Gain (Loss) [Abstract]
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	$ (389)	$ 264	$ (755)	$ 1,868
Interest Expenses
Reclassification of Cash Flow Hedge Gain (Loss) [Abstract]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded	389	264	755	1,039
Interest Expenses | Designated Cash Flow Hedge
Reclassification of Cash Flow Hedge Gain (Loss) [Abstract]
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	389	264	755	1,039
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring				0
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component	389	264	755	1,039
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component	$ 0	$ 0	$ 0	0
Gain on sale of investment securities
Reclassification of Cash Flow Hedge Gain (Loss) [Abstract]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded				829
Gain on sale of investment securities | Designated Cash Flow Hedge
Reclassification of Cash Flow Hedge Gain (Loss) [Abstract]
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income				0
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring				829
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component				829
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component				$ 0

Other Derivatives - Hedging ins

Other Derivatives - Hedging instruments on statements of operations (Details) - Nonoperating Income (Expense) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest Rate Products
Derivatives not designated as cash flow hedging instruments under Subtopic 815-20
Derivative, Gain (Loss) on Derivative, Net	$ (40)	$ (7)	$ (326)	$ (7)
Other Contracts
Derivatives not designated as cash flow hedging instruments under Subtopic 815-20
Derivative, Gain (Loss) on Derivative, Net	(13)	(16)	(77)	(58)
Mortgage Banking
Derivatives not designated as cash flow hedging instruments under Subtopic 815-20
Derivative, Gain (Loss) on Derivative, Net	6,015	(380)	6,015	316
Not Designated as Hedging Instrument
Derivatives not designated as cash flow hedging instruments under Subtopic 815-20
Derivative, Gain (Loss) on Derivative, Net	$ 5,962	$ (403)	$ 5,612	$ 251

Other Derivatives - Liabilities

Other Derivatives - Liabilities subject to master netting arrangement (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair value	$ 4,306	$ 311
Gross amount of derivative liability	5,216	611
Net amounts of assets presented in the balance sheet	4,306	311
Net amounts of liabilities presented in the balance sheet	5,216	611
Gross amounts not offset in the balance sheet cash collateral	230	500
Derivative Asset, Fair Value, Amount Not Offset Against Collateral	4,306	311
Gross amounts not offset in the balance sheet net amount	$ 4,986	$ 111

Other Derivatives - Additional

Other Derivatives - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Mar. 31, 2019
Gross amount of derivative liability	$ 5,216		$ 5,216		$ 611
Net liability position	5,500		5,500
Collateral against Obligation	2,200		2,200
Designated Cash Flow Hedge
Gain (loss) on derivatives reclassified, related to cash flow hedge	(389)	$ 264	(755)	$ 1,868
Designated Cash Flow Hedge | Interest Rate Swap
Notional amount					100,000
To be classified in the next twelve months	842		842
Designated Cash Flow Hedge | Interest Rate Swap | Non-interest income
Gross amount of derivative liability						$ 829
Not Designated as Hedging Instrument
Notional amount	$ 586,839		$ 586,839		$ 106,675

Other Real Estate Owned (Detail

Other Real Estate Owned (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)propertiesSold	Sep. 30, 2019USD ($)propertiesSold	Sep. 30, 2020USD ($)propertiesSold	Sep. 30, 2019USD ($)propertiesSold
Real Estate [Abstract]
Number of properties sold | propertiesSold	1,000	1,000	1,000	1,000
Other Real Estate [Roll Forward]
Beginning Balance	$ 8,237	$ 1,394	$ 1,487	$ 1,394
Other Real Estate, Additions	0	93	6,750	93
Properties sold	(3,250)	0	(3,250)	0
Ending Balance	$ 4,987	$ 1,487	$ 4,987	$ 1,487

Long-Term Borrowings - Schedule

Long-Term Borrowings - Schedules of long-term Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Feb. 26, 2020	Dec. 31, 2019
Long-Term Borrowings
Less: unamortized debt issuance costs	$ (2,020)		$ (2,313)
Long-term borrowings	267,980		217,687
Subordinated Notes, 5.75%
Long-Term Borrowings
Long-term borrowings, gross	$ 70,000		70,000
Interest rate (as a percent)	5.00%
Subordinated Notes, 5.0%
Long-Term Borrowings
Long-term borrowings, gross	$ 150,000		150,000
Interest rate (as a percent)	5.75%
FHLB Advance, 1.81%
Long-Term Borrowings
Long-term borrowings, gross	$ 50,000	$ 50,000	$ 0
Interest rate (as a percent)		1.81%

Long Term Borrowings - Addition

Long Term Borrowings - Additional Information (Details) - USD ($)	Jul. 26, 2016	Aug. 05, 2014	Sep. 30, 2020	Feb. 26, 2020	Dec. 31, 2019
Net proceeds from issuance of subordinated long-term debt	$ 147,400,000	$ 68,800,000
Subordinated Debt
Debt instrument, interest rate, stated percentage	5.00%	5.75%
Debt instrument, face amount	$ 150,000,000	$ 70,000,000
Payments of debt issuance costs	$ 2,600,000	$ 1,200,000
FHLB Advance, 1.81%
Long-term borrowings			$ 50,000,000	$ 50,000,000	$ 0
Debt instrument, interest rate, stated percentage				1.81%

Net Income per Common Share (De

Net Income per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share, Basic [Abstract]
Net income	$ 41,346	$ 36,495	$ 93,325	$ 107,487
Average common shares outstanding (in shares)	32,229	34,233	32,434	34,418
Basic net income per common share (in dollars per share)	$ 1.28	$ 1.07	$ 2.88	$ 3.12
Earnings Per Share, Diluted [Abstract]
Net income	$ 41,346	$ 36,495	$ 93,325	$ 107,487
Average common shares outstanding (in shares)	32,229	34,233	32,434	34,418
Adjustment for common share equivalents (in shares)	22	23	24	33
Average common shares outstanding-diluted (in shares)	32,251	34,256	32,458	34,451
Diluted net income per common share (in dollars per share)	$ 1.28	$ 1.07	$ 2.88	$ 3.12
Anti-dilutive shares	26	2	26	20

Other Comprehensive Income (Det

Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Other Comprehensive Income
Net unrealized gain on securities available for sale, before Tax	$ (840)	$ 1,585	$ 18,402	$ 17,712
Less: Reclassification adjustment for net gains/loss included in net income, before tax	(115)	(153)	(1,650)	(1,628)
Total unrealized gain (loss), before tax	(955)	1,432	16,752	16,084
Net unrealized gain (loss) on derivatives, before tax	31	24	(1,986)	(2,210)
Less: Reclassification adjustment for gains/loss included in net income, before tax	389	(285)	688	(1,879)
Total unrealized gain (loss) on derivatives, before tax	420	(261)	(1,298)	(4,089)
Other Comprehensive Income (Loss), before tax	(535)	1,171	15,454	11,995
Net unrealized gain on securities available for sale, tax effect	216	411	(5,048)	(4,572)
Less: Reclassification adjustment for net gains/loss included in net income, tax	29	(43)	419	(438)
Total unrealized gain (loss), tax effect	245	368	(4,629)	(5,010)
Net unrealized gain (loss) on derivatives, tax effect	7	(13)	(662)	(546)
Less: Reclassification adjustment for gains/loss included in net income, tax effect	(100)	(80)	(175)	(505)
Total unrealized gain (loss) on derivatives, tax effect	107	67	(487)	(41)
Other Comprehensive Income (Loss), tax effect	138	301	(4,142)	(4,969)
Net unrealized gain (loss) on securities available-for-sale, net of tax	(624)	1,174	13,354	13,140
Less: Reclassification adjustment for net gains/loss included in net income, net of tax	(86)	(110)	(1,231)	(1,190)
Total unrealized (loss) gain on investment securities	(710)	1,064	12,123	11,950
Net unrealized gain (loss) on derivatives, net of tax	24	11	(1,324)	(1,664)
Less: Reclassification adjustment for gains/loss included in net income, net of tax	289	(205)	513	(1,374)
Total unrealized gain (loss) on derivatives	313	(194)	(811)	(3,038)
Other comprehensive (loss) income	$ (397)	$ 870	$ 11,312	$ 8,912

Other Comprehensive Income - Ch

Other Comprehensive Income - Changes in accumulated other comprehensive income (loss), net of tax (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Debt Securities, Available-for-sale [Abstract]
Beginning balance	$ 15,942	$ 3,842	$ 3,109	$ (7,044)
Other comprehensive income (loss) before reclassifications	(624)	1,174	13,354	13,140
Amounts reclassified from accumulated other comprehensive income (loss)	(86)	(110)	(1,231)	(1,190)
Net other comprehensive income (loss) during the period	(710)	1,064	12,123	11,950
Ending balance	15,232	4,906	15,232	4,906
Derivatives
Beginning balance	(1,274)	(75)	(150)	2,769
Other comprehensive income (loss) before reclassifications	24	11	(1,324)	(1,664)
Amounts reclassified from accumulated other comprehensive income (loss)	289	(205)	513	(1,374)
Net other comprehensive income (loss) during period	313	(194)	(811)	(3,038)
Ending balance	(961)	(269)	(961)	(269)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Beginning balance	14,668	3,767	2,959	(4,275)
Other comprehensive income (loss) before reclassifications	(600)	1,185	12,030	11,476
Amounts reclassified from accumulated other comprehensive income (loss)	203	(315)	(718)	(2,564)
Net other comprehensive income (loss) during period	(397)	870	11,312	8,912
Ending balance	$ 14,271	$ 4,637	$ 14,271	$ 4,637

Other Comprehensive Income - Am

Other Comprehensive Income - Amounts reclassified from accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Realized gain on sale of investment securities	$ 115	$ 153	$ 1,650	$ 1,628
Interest income (expense) derivative deposits	(10,995)	(24,576)	(44,055)	(67,937)
Income tax (expense) benefit	(14,092)	(14,149)	(31,847)	(39,531)
Amounts reclassified from accumulated other comprehensive income (loss)	203	(315)	(718)	(2,564)
Reclassification out of Accumulated Other Comprehensive Income (Loss)
Realized gain on sale of investment securities	115	153	1,650	1,628
Realized gain on swap termination			0	829
Interest income (expense) derivative deposits	(389)	285	(688)	1,050
Income tax (expense) benefit	71	(123)	(244)	(943)
Amounts reclassified from accumulated other comprehensive income (loss)	$ (203)	$ 315	$ 718	$ 2,564

Fair Value Measurements - Asset

Fair Value Measurements - Assets and liabilities recorded at fair value on recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Investment securities	$ 977,570	$ 843,363
Derivative asset	4,306	311
Derivative liability	5,216	611
U. S. agency securities
Investment securities	131,286	179,794
Residential mortgage backed securities
Investment securities	716,643	543,852
Loans held for sale	79,084	56,707
Municipal bonds
Investment securities	94,713	73,931
Corporate bonds
Investment securities	34,730	10,733
U.S. Treasury
Investment securities		34,855
Other equity investments
Investment securities	198	198
Recurring
Other equity investments		198
Loans held for sale	79,084	56,707
Assets, Fair Value Disclosure	1,066,902	900,667
Derivative liability	136	86
Total liabilities measured at fair value on a recurring basis	5,533	667
Recurring | Interest Rate Swap
Derivative liability	910	203
Recurring | Interest Rate Caps
Derivative asset	4,233	317
Derivative liability	4,487	312
Recurring | U. S. agency securities
Investment securities	131,286	179,794
Recurring | Residential mortgage backed securities
Investment securities	716,643	543,852
Recurring | Municipal bonds
Investment securities	94,713	73,931
Recurring | Corporate bonds
Investment securities	34,730	10,733
Recurring | U.S. Treasury
Investment securities		34,855
Recurring | Other equity investments
Other equity investments	198
Recurring | Mortgage Banking Derivative | Derivative Financial Instruments, Liability
Derivative liability		66
Recurring | Mortgage Banking Derivative | Derivative Financial Instruments, Assets
Derivative asset		280
Recurring | Mortgage Banking Derivative | Interest Rate Swap
Derivative asset	6,015
Recurring | Fair Value, Inputs, Level 1
Other equity investments		0
Loans held for sale	0	0
Assets, Fair Value Disclosure	0	0
Derivative liability	0	0
Total liabilities measured at fair value on a recurring basis	0	0
Recurring | Fair Value, Inputs, Level 1 | Interest Rate Swap
Derivative liability	0	0
Recurring | Fair Value, Inputs, Level 1 | Interest Rate Caps
Derivative asset	0	0
Derivative liability	0	0
Recurring | Fair Value, Inputs, Level 1 | U. S. agency securities
Investment securities	0	0
Recurring | Fair Value, Inputs, Level 1 | Residential mortgage backed securities
Investment securities	0	0
Recurring | Fair Value, Inputs, Level 1 | Municipal bonds
Investment securities	0	0
Recurring | Fair Value, Inputs, Level 1 | Corporate bonds
Investment securities	0	0
Recurring | Fair Value, Inputs, Level 1 | U.S. Treasury
Investment securities		0
Recurring | Fair Value, Inputs, Level 1 | Other equity investments
Other equity investments	0
Recurring | Fair Value, Inputs, Level 1 | Mortgage Banking Derivative | Derivative Financial Instruments, Liability
Derivative liability		0
Recurring | Fair Value, Inputs, Level 1 | Mortgage Banking Derivative | Derivative Financial Instruments, Assets
Derivative asset		0
Recurring | Fair Value, Inputs, Level 2
Loans held for sale	79,084	56,707
Assets, Fair Value Disclosure	1,059,189	889,456
Derivative liability	136	86
Total liabilities measured at fair value on a recurring basis	5,533	601
Recurring | Fair Value, Inputs, Level 2 | Interest Rate Swap
Derivative liability	910	203
Recurring | Fair Value, Inputs, Level 2 | Interest Rate Caps
Derivative asset	4,233	317
Derivative liability	4,487	312
Recurring | Fair Value, Inputs, Level 2 | U. S. agency securities
Investment securities	131,286	179,794
Recurring | Fair Value, Inputs, Level 2 | Residential mortgage backed securities
Investment securities	716,643	543,852
Recurring | Fair Value, Inputs, Level 2 | Municipal bonds
Investment securities	94,713	73,931
Recurring | Fair Value, Inputs, Level 2 | Corporate bonds
Investment securities	33,230
Recurring | Fair Value, Inputs, Level 2 | U.S. Treasury
Investment securities		34,855
Recurring | Fair Value, Inputs, Level 2 | Other equity investments
Other equity investments	0
Recurring | Fair Value, Inputs, Level 3
Other equity investments		198
Assets, Fair Value Disclosure	7,713	11,211
Derivative liability	0
Total liabilities measured at fair value on a recurring basis	0	66
Recurring | Fair Value, Inputs, Level 3 | Interest Rate Swap
Derivative liability	0
Recurring | Fair Value, Inputs, Level 3 | Interest Rate Caps
Derivative liability	0
Recurring | Fair Value, Inputs, Level 3 | Corporate bonds
Investment securities	1,500	10,733
Recurring | Fair Value, Inputs, Level 3 | Other equity investments
Other equity investments	198
Recurring | Fair Value, Inputs, Level 3 | Mortgage Banking Derivative | Derivative Financial Instruments, Liability
Derivative liability		66
Recurring | Fair Value, Inputs, Level 3 | Mortgage Banking Derivative | Derivative Financial Instruments, Assets
Derivative asset		$ 280
Recurring | Fair Value, Inputs, Level 3 | Mortgage Banking Derivative | Interest Rate Swap
Derivative asset	$ 6,015

Fair Value Measurements - Summa

Fair Value Measurements - Summary of difference between aggregate fair value and aggregate unpaid principal balance (Details) - Residential mortgage backed securities - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value	$ 79,084	$ 56,707
Aggregate Unpaid Principal Balance	77,572	55,834
Difference	1,512	873
Loans 90 or more days past due	0	0
Loans in nonaccrual status	$ 0	$ 0

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of activity for assets and liabilities measured at fair value (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Assets:
Assets - Beginning balance	$ 11,211	$ 10,023
Realized (loss) gain included in earnings	5,735	31
Unrealized gain included in other comprehensive income	0	131
Purchases of available -for-sale securities	0	4,030
Principal redemption	0	3,004
Migrated to Level 2 valuation	(9,233)
Assets - Ending balance	7,713	11,211
Liabilities:
Liabilities - Beginning balance	66	269
Realized loss (gain) included in earnings	(66)	203
Principal redemption	0	0
Liabilities - Ending balance	0	66
Other equity investments
Assets:
Assets - Beginning balance	10,931	9,794
Realized (loss) gain included in earnings	0	(20)
Unrealized gain included in other comprehensive income	0	131
Purchases of available -for-sale securities	0	4,030
Principal redemption	0	3,004
Migrated to Level 2 valuation	(9,233)
Assets - Ending balance	1,698	10,931
Liabilities:
Liabilities - Beginning balance	0	0
Realized loss (gain) included in earnings		0
Principal redemption	0	0
Liabilities - Ending balance	0	0
Mortgage Banking Derivatives
Assets:
Assets - Beginning balance	280	229
Realized (loss) gain included in earnings	5,735	51
Assets - Ending balance	6,015	280
Liabilities:
Liabilities - Beginning balance	66	269
Realized loss (gain) included in earnings	(66)	203
Principal redemption	0	0
Liabilities - Ending balance	$ 0	$ 66

Fair Value Measurements - Ass_2

Fair Value Measurements - Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis (Details) - Non Recurring - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Other real estate owned	$ 0	$ 1,487
Assets, Fair Value Disclosure	68,328	47,246
Commercial
Impaired loans	17,131	10,100
Income producing - commercial real estate
Impaired loans	29,256	11,948
Owner occupied - Commercial real estate
Impaired loans	14,215	6,934
Real estate mortgage residential
Impaired loans	5,335	4,981
Construction - commercial and residential
Impaired loans	2,274	11,409
Home equity
Impaired loans	109	387
Other consumer
Impaired loans	8
Fair Value, Inputs, Level 1
Other real estate owned	0	0
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 1 | Commercial
Impaired loans	0	0
Fair Value, Inputs, Level 1 | Income producing - commercial real estate
Impaired loans	0	0
Fair Value, Inputs, Level 1 | Owner occupied - Commercial real estate
Impaired loans	0	0
Fair Value, Inputs, Level 1 | Real estate mortgage residential
Impaired loans	0	0
Fair Value, Inputs, Level 1 | Construction - commercial and residential
Impaired loans	0	0
Fair Value, Inputs, Level 1 | Home equity
Impaired loans	0	0
Fair Value, Inputs, Level 1 | Other consumer
Impaired loans	0
Fair Value, Inputs, Level 2
Other real estate owned	0	0
Assets, Fair Value Disclosure	36,581	0
Fair Value, Inputs, Level 2 | Commercial
Impaired loans	824	0
Fair Value, Inputs, Level 2 | Income producing - commercial real estate
Impaired loans	22,220	0
Fair Value, Inputs, Level 2 | Owner occupied - Commercial real estate
Impaired loans	11,535	0
Fair Value, Inputs, Level 2 | Real estate mortgage residential
Impaired loans	1,893	0
Fair Value, Inputs, Level 2 | Construction - commercial and residential
Impaired loans	0	0
Fair Value, Inputs, Level 2 | Home equity
Impaired loans	109	0
Fair Value, Inputs, Level 2 | Other consumer
Impaired loans	0
Fair Value, Inputs, Level 3
Other real estate owned	0	1,487
Assets, Fair Value Disclosure	31,747	47,246
Fair Value, Inputs, Level 3 | Commercial
Impaired loans	16,307	10,100
Fair Value, Inputs, Level 3 | Income producing - commercial real estate
Impaired loans	7,036	11,948
Fair Value, Inputs, Level 3 | Owner occupied - Commercial real estate
Impaired loans	2,680	6,934
Fair Value, Inputs, Level 3 | Real estate mortgage residential
Impaired loans	3,442	4,981
Fair Value, Inputs, Level 3 | Construction - commercial and residential
Impaired loans	2,274	11,409
Fair Value, Inputs, Level 3 | Home equity
Impaired loans	0	$ 387
Fair Value, Inputs, Level 3 | Other consumer
Impaired loans	$ 8

Fair Value Measurements - Estim

Fair Value Measurements - Estimated fair value of company's financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Federal funds sold	$ 30,830	$ 38,987
Interest bearing deposits with other banks	818,719	195,447
Investment securities	977,570	843,363
Bank owned life insurance	76,326	75,724
Derivative asset	4,306	311
Interest bearing deposits	823,607	863,856
Customer repurchase agreements	24,293	30,980
Derivative liability	5,216	611
Other equity investments
Investment securities	198	198
Carrying Value
Cash and due from banks	7,559	7,539
Federal funds sold	30,830	38,987
Interest bearing deposits with other banks	818,719	195,447
Investment securities	977,570	843,363
Federal Reserve and Federal Home Loan Bank stock	40,061	35,194
Loans held for sale	79,084	56,707
Loans	7,770,040	7,472,090
Bank owned life insurance	76,326	75,724
Cash Surrender Value, Fair Value Disclosure	14,541	14,697
Noninterest bearing deposits	2,384,108	2,064,367
Interest bearing deposits	4,780,160	3,876,985
Certificates of deposit	1,014,517	1,283,039
Customer repurchase agreements	24,293	30,980
Borrowings	567,980	467,687
Derivative liability	136	86
Carrying Value | Interest Rate Swap
Derivative liability	910	203
Carrying Value | Mortgage Banking Derivative
Derivative asset	6,015
Derivative liability		66
Carrying Value | Interest Rate Caps
Derivative asset	4,233	280
Derivative liability	4,487	312
Fair Value
Cash and due from banks	7,559	7,539
Federal funds sold	30,830	38,987
Interest bearing deposits with other banks	818,719	195,447
Investment securities	977,570	843,363
Federal Reserve and Federal Home Loan Bank stock	40,061	35,194
Loans held for sale	79,084	56,707
Loans	7,733,020	7,550,249
Bank owned life insurance	76,326	75,724
Cash Surrender Value, Fair Value Disclosure	14,541	14,697
Noninterest bearing deposits	2,384,108	2,064,367
Interest bearing deposits	4,780,160	3,876,985
Certificates of deposit	1,033,703	1,291,688
Customer repurchase agreements	24,293	30,980
Borrowings	573,641	328,330
Derivative liability	136	86
Fair Value | Interest Rate Swap
Derivative liability	910	203
Fair Value | Mortgage Banking Derivative
Derivative asset	6,015
Derivative liability		66
Fair Value | Interest Rate Caps
Derivative asset	4,233	280
Derivative liability	4,487	312
Fair Value | Fair Value, Inputs, Level 1
Cash and due from banks	0	0
Federal funds sold	0	0
Interest bearing deposits with other banks	0	0
Investment securities	0	0
Federal Reserve and Federal Home Loan Bank stock	0	0
Loans held for sale	0	0
Loans		0
Bank owned life insurance	0	0
Cash Surrender Value, Fair Value Disclosure	0	0
Noninterest bearing deposits	0	0
Interest bearing deposits	0	0
Certificates of deposit	0	0
Customer repurchase agreements	0	0
Borrowings	0	0
Derivative liability	0	0
Fair Value | Fair Value, Inputs, Level 1 | Interest Rate Swap
Derivative liability	0	0
Fair Value | Fair Value, Inputs, Level 1 | Mortgage Banking Derivative
Derivative asset	0
Derivative liability		0
Fair Value | Fair Value, Inputs, Level 1 | Interest Rate Caps
Derivative asset	0	0
Derivative liability	0	0
Fair Value | Fair Value, Inputs, Level 2
Cash and due from banks	7,559	7,539
Federal funds sold	30,830	38,987
Interest bearing deposits with other banks	818,719	195,447
Investment securities	976,070	832,432
Federal Reserve and Federal Home Loan Bank stock	40,061	35,194
Loans held for sale	79,084	56,707
Loans		0
Bank owned life insurance	76,326	75,724
Cash Surrender Value, Fair Value Disclosure	14,541	14,697
Noninterest bearing deposits	2,384,108	2,064,367
Interest bearing deposits	4,780,160	3,876,985
Certificates of deposit	1,033,703	1,291,688
Customer repurchase agreements	24,293	30,980
Borrowings	573,641	328,330
Derivative liability	136	86
Fair Value | Fair Value, Inputs, Level 2 | Interest Rate Swap
Derivative liability	910	203
Fair Value | Fair Value, Inputs, Level 2 | Mortgage Banking Derivative
Derivative asset	0
Derivative liability		0
Fair Value | Fair Value, Inputs, Level 2 | Interest Rate Caps
Derivative asset	4,233	280
Derivative liability	4,487	312
Fair Value | Fair Value, Inputs, Level 3
Cash and due from banks	0	0
Federal funds sold	0	0
Interest bearing deposits with other banks	0	0
Investment securities	1,500	10,931
Federal Reserve and Federal Home Loan Bank stock	0	0
Loans held for sale	0	0
Loans	7,733,020	7,550,249
Bank owned life insurance	0	0
Cash Surrender Value, Fair Value Disclosure	0	0
Noninterest bearing deposits	0	0
Interest bearing deposits	0	0
Certificates of deposit	0	0
Customer repurchase agreements	0	0
Borrowings	0	0
Derivative liability	0	0
Fair Value | Fair Value, Inputs, Level 3 | Interest Rate Swap
Derivative liability	0	0
Fair Value | Fair Value, Inputs, Level 3 | Mortgage Banking Derivative
Derivative asset	6,015
Derivative liability		66
Fair Value | Fair Value, Inputs, Level 3 | Interest Rate Caps
Derivative asset	0	0
Derivative liability	$ 0	$ 0

Fair Value Measurements - Debt

Fair Value Measurements - Debt Securities (Details) - Mortgage banking derivatives - Pricing Model - Fair Value, Inputs, Level 3 - Measurement Input, Pull Through Rate $ in Thousands	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value	$ 6,015	$ 280
Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.7844	0.7625
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.699
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.814