| Loans | LOANS AND ALLOWANCE FOR CREDIT LOSSES FOR LOANS Loans are generally stated at the amount of unpaid principal, reduced by unearned discount and the ACLL. Interest on loans is accrued daily on the outstanding balances. Loan origination fees and certain direct loan origination costs are deferred and amortized as adjustments of the related loan yield over its contractual life. Generally, loans are placed on nonaccrual status when principal or interest is greater than 90 days past due based upon the loan's contractual terms. Interest on nonaccrual loans is recognized primarily using the cost-recovery method. Loans may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loans. Commercial-related loans or portions thereof are charged off to the ACLL when the loss has been confirmed. This determination is made on a case by case basis considering many factors, including the prioritization of our claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity. We deem a loss confirmed when a loan or a portion of a loan is classified “loss” in accordance with bank regulatory classification guidelines, which state, “Assets classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted”. Consumer-related loans are generally charged to the ACLL upon reaching specified stages of delinquency, in accordance with the Federal Financial Institutions Examination Council policy. For example, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier. Residential mortgage loans are generally charged off to net realizable value no later than when the account becomes 180 days past due. Other consumer loans, if collateralized, are generally charged down to net realizable value at 120 days past due. The following table presents the amortized cost of loans held for investment: Dollars in thousands June 30, December 31, Commercial $ 323,788 $ 220,452 Commercial real estate - owner occupied Professional & medical 100,370 81,973 Retail 119,794 100,993 Other 115,979 93,253 Commercial real estate - non-owner occupied Hotels & motels 119,204 128,665 Mini-storage 55,828 50,913 Multifamily 144,583 164,398 Retail 109,078 102,989 Other 164,474 182,242 Construction and development Land & land development 92,706 84,112 Construction 48,116 37,523 Residential 1-4 family real estate Personal residence 267,170 260,843 Rental - small loan 104,055 101,080 Rental - large loan 76,360 63,986 Home equity 88,929 76,568 Mortgage warehouse lines 252,472 126,237 Consumer 34,640 35,021 Other Credit cards 1,573 1,453 Overdrafts 588 798 Total loans, net of unearned fees 2,219,707 1,913,499 Less allowance for credit losses - loans 27,166 13,074 Loans, net $ 2,192,541 $ 1,900,425 Allowance for Credit Losses - Loans The ACLL is a valuation allowance, estimated at each balance sheet date in accordance with ASC 326, that is deducted from the amortized cost basis of loans to present the net amount expected to be collected. The amount of the ACLL represents our best estimate of current expected credit losses on loans considering available information, from internal and external sources, relevant to assessing collectability over the loans’ contractual terms, adjusted for expected prepayments when appropriate (the “life-of-loan” concept). The contractual term excludes expected extensions, renewals and modifications unless (i) management has a reasonable expectation that a troubled debt restructuring will be executed with an individual borrower or (ii) such extension or renewal options are not unconditionally cancellable by us and, in such cases, the borrower is likely to meet applicable conditions and likely to request extension or renewal. Relevant available information includes historical credit loss experience, current conditions and reasonable and supportable forecasts. While historical credit loss experience provides the basis for the estimation of expected credit losses, adjustments to historical loss information may be made for differences in current portfolio-specific risk characteristics, environmental conditions or other relevant factors. The ACLL losses is measured on a collective basis for portfolios of loans when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Expected credit losses for collateral dependent loans, including loans where the borrower is experiencing financial difficulty, but foreclosure is not probable, are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Expected credit losses are reflected in the ACLL through a charge to provision for credit losses. When we deem all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACLL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible; however, generally speaking, an asset will be considered uncollectible no later than when all efforts at collection have been exhausted. Subsequent recoveries, if any, are credited to the ACLL when received. Loan Pools. In calculating the ACLL, most loans are segmented into pools based upon similar characteristics and risk profiles. Common characteristics and risk profiles include the type/purpose of loan, underlying collateral, geographical similarity and historical/expected credit loss patterns. In developing these loan pools for the purposes of modeling expected credit losses, we also analyzed the degree of correlation in how loans within each portfolio respond when subjected to varying economic conditions and scenarios as well as other portfolio stress factors. We have identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: ▪ Commercial • Commercial real estate - owner occupied ▪ Professional & medical ▪ Retail ▪ Other • Commercial real estate - non-owner occupied ▪ Hotels & motels ▪ Mini-storage ▪ Multifamily ▪ Retail ▪ Other • Construction & development ▪ Land & land development ▪ Construction • Residential 1-4 family real estate ▪ Personal residence ▪ Rental - small loan ▪ Rental - large loan ▪ Home equity • Mortgage warehouse lines • Consumer • Other ▪ Credit cards ▪ Overdrafts Residential 1-4 family rentals are classified as small loan if the original loan amount is less than $600,000 and classified as large loan if the original loan amount equals or exceeds $600,000 . We periodically reassess each pool to ensure the loans within the pool continue to share similar characteristics and risk profiles and to determine whether further segmentation is necessary. The Company’s methodology for estimating the ACLL considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodology applies historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed. Our methodology reverts to historical loss information immediately when it can no longer develop reasonable and supportable forecasts. Loss-Rate Method. We use a loss-rate (“cohort”) method to estimate expected credit losses for all loan pools. The cohort method identifies and captures the balances of pooled loans with similar risk characteristics, as of a point in time to form a cohort, then tracks the respective losses generated by that cohort of loans over their remaining lives, or until the loans are “exhausted” (reached an acceptable stage at which a significant majority of all losses are expected to have been recognized). This method encompasses loan balances for as long as the loans are outstanding, so while significant history is required to represent the life-of-loan concept, this method does not require as much history due to its inclusion of loan balances in multiple cohort periods. Qualitative Factors. We qualitatively adjust our loan loss rates for risk factors that are not otherwise considered within our model but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factor (“Q-Factor”) adjustments may increase or decrease our estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. One Q-Factor adjustment to our loss rates is consideration of reasonable and supportable forecasts of economic conditions. In arriving at a reasonable and supportable economic forecast, we primarily consider the forecasted unemployment rates for the U.S., West Virginia and Virginia as loss drivers for each segmented loan pool. Secondarily, we consider the following forecasted economic data for one or more of our segmented loan pools depending on the nature of the underlying loan pool: housing price indices (U.S., West Virginia & Virginia), single-family housing starts (West Virginia & Virginia), multi-family housing starts (West Virginia & Virginia), personal income growth (U.S., West Virginia & Virginia), U.S. consumer confidence, rental vacancy rates (U.S.), and U.S. % change in gross domestic product. Other risks that we may consider in making Q-Factor adjustments include, among other things, the impact of (i) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (ii) changes in the nature and volume of the loan pools and in the terms of the underlying loans, (iii) changes in the experience, ability, and depth of our lending management and staff, (iv) changes in volume and severity of past due financial assets, the volume of non-accrual assets, and the volume and severity of adversely classified or graded assets, (v) changes in the quality of our credit review function, (vi) changes in the value of the underlying collateral for loans that are non-collateral dependent, (vii) the existence, growth, and effect of any concentrations of credit and (viii) other external factors such as the regulatory, legal and technological environments; competition; and events such as natural disasters or health pandemics. Collateral Dependent Loans. We may determine that an individual loan exhibits unique risk characteristics which differentiate it from other loans within our loan pools. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. We reevaluate the fair value of collateral supporting collateral dependent loans on a quarterly basis. The fair value of real estate collateral supporting collateral dependent loans is evaluated by appraisal services using a methodology that is consistent with the Uniform Standards of Professional Appraisal Practice. Troubled Debt Restructuring. A loan that has been modified or renewed is considered a troubled debt restructuring (“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 ACLL 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. TDRs that are considered material ( $500,000 and greater) are evaluated individually to determine the required ACLL. TDRs that are not considered material may be included in the Company’s existing pools based on the underlying risk characteristics of the loan to measure the ACLL. The following table presents the activity in the ACLL by portfolio segment during the first six months of 2020 : For the Six Months Ended June 30, 2020 Allowance for Credit Losses - Loans Dollars in thousands Beginning Balance Prior to Adoption of ASC 326 Impact of Adoption of ASC 326 Provision for Credit Losses - Loans Adjustment for PCD Acquired Loans Charge- offs Recoveries Ending Balance Commercial $ 1,221 $ 1,064 $ 1,053 $ — $ (99 ) $ 16 $ 3,255 Commercial real estate - owner occupied Professional & medical 1,058 (390 ) 784 — — — 1,452 Retail 820 (272 ) 540 153 — 116 1,357 Other 821 (137 ) 402 — — — 1,086 Commercial real estate - non-owner occupied Hotels & motels 1,235 (936 ) 1,654 — — — 1,953 Mini-storage 485 (311 ) 57 — — — 231 Multifamily 1,534 8 (838 ) — — 4 708 Retail 964 279 471 — (343 ) 2 1,373 Other 1,721 (1,394 ) (12 ) — — — 315 Construction and development Land & land development 600 2,136 1,213 111 (4 ) 6 4,062 Construction 242 996 606 — — — 1,844 Residential 1-4 family real estate Personal residence 1,275 1,282 356 146 (7 ) 37 3,089 Rental - small loan 532 1,453 81 — (27 ) 117 2,156 Rental - large loan 49 2,884 (98 ) — — — 2,835 Home equity 138 308 635 — (24 ) 9 1,066 Mortgage warehouse lines — — — — — — — Consumer 379 (238 ) 202 — (176 ) 68 235 Other Credit cards — 12 26 — (30 ) 6 14 Overdrafts — 182 74 — (206 ) 85 135 Total $ 13,074 $ 6,926 $ 7,206 $ 410 $ (916 ) $ 466 $ 27,166 The following table presents, as of June 30, 2020 segregated by loan portfolio segment, details of the loan portfolio and the ACLL calculated in accordance with our credit loss accounting methodology for loans described above. June 30, 2020 Loan Balances Allowance for Credit Losses - Loans Dollars in thousands Loans Individually Evaluated Loans Collectively Evaluated Total Loans Individually Evaluated Loans Collectively Evaluated Total Commercial $ 4,885 $ 318,903 $ 323,788 $ 23 $ 3,232 $ 3,255 Commercial real estate - owner occupied Professional & medical 3,819 96,551 100,370 1,117 335 1,452 Retail 6,557 113,237 119,794 — 1,357 1,357 Other — 115,979 115,979 — 1,086 1,086 Commercial real estate - non-owner occupied Hotels & motels — 119,204 119,204 — 1,953 1,953 Mini-storage — 55,828 55,828 — 231 231 Multifamily — 144,583 144,583 — 708 708 Retail 2,516 106,562 109,078 57 1,316 1,373 Other 5,282 159,192 164,474 — 315 315 Construction and development Land & land development 1,641 91,065 92,706 584 3,478 4,062 Construction — 48,116 48,116 — 1,844 1,844 Residential 1-4 family real estate Personal residence 611 266,559 267,170 — 3,089 3,089 Rental - small loan 781 103,274 104,055 50 2,106 2,156 Rental - large loan 4,448 71,912 76,360 — 2,835 2,835 Home equity 523 88,406 88,929 — 1,066 1,066 Consumer — 34,640 34,640 — 235 235 Other Credit cards — 1,573 1,573 — 14 14 Overdrafts — 588 588 — 135 135 Mortgage warehouse lines — 252,472 252,472 — — — Total $ 31,063 $ 2,188,644 $ 2,219,707 $ 1,831 $ 25,335 $ 27,166 The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACLL allocated to those loans: June 30, 2020 Dollars in thousands Real Estate Secured Loans Non-Real Estate Secured Loans Total Loans Allowance for Credit Losses - Loans Commercial $ — $ 4,885 $ 4,885 $ 23 Commercial real estate - owner occupied Professional & medical 1,599 — 1,599 881 Retail 2,268 — 2,268 — Other — — — — Commercial real estate - non-owner occupied Hotels & motels — — — — Mini-storage — — — — Multifamily — — — — Retail 651 — 651 50 Other 2,922 — 2,922 — Construction and development Land & land development 1,006 — 1,006 584 Construction — — — — Residential 1-4 family real estate Personal residence 611 — 611 — Rental - small loan 781 — 781 50 Rental - large loan 4,448 — 4,448 — Home equity — — — — Consumer — — — — Other Credit cards — — — — Overdrafts — — — — Total $ 14,286 $ 4,885 $ 19,171 $ 1,588 The following table presents the activity in the ACLL by portfolio segment for the year ended December 31, 2019, as determined in accordance with ASC 310 prior to the January 1, 2020 adoption of ASC 326: For the Year Ended December 31, 2019 Allowance for Credit Losses - Loans Dollars in thousands Beginning Balance Charge- offs Recoveries Provision Ending Balance Commercial $ 1,705 $ (281 ) $ 17 $ (295 ) $ 1,146 Commercial real estate Owner occupied 2,214 (2 ) 21 467 2,700 Non-owner occupied 5,742 (170 ) 1 366 5,939 Construction and development Land & land development 339 (2 ) 108 155 600 Construction 64 — — 178 242 Residential real estate Non-jumbo 2,090 (979 ) 125 576 1,812 Jumbo 379 — — (368 ) 11 Home equity 167 (24 ) 19 (24 ) 138 Mortgage warehouse lines — — — — — Consumer 79 (285 ) 168 173 135 Other 268 (360 ) 121 322 351 Total $ 13,047 $ (2,103 ) $ 580 $ 1,550 $ 13,074 The following table presents the contractual aging of the amortized cost basis of past due loans by class as of June 30, 2020 and December 31, 2019 . At June 30, 2020 Past Due 90 days or more and Accruing Dollars in thousands 30-59 days 60-89 days 90 days or more Total Current Commercial $ 141 $ 138 $ 418 $ 697 $ 323,091 $ — Commercial real estate - owner occupied Professional & medical — 318 1,737 2,055 98,315 — Retail 56 111 2,444 2,611 117,183 — Other 265 194 149 608 115,371 — Commercial real estate - non-owner occupied Hotels & motels — — — — 119,204 — Mini-storage — — — — 55,828 — Multifamily 165 — 213 378 144,205 — Retail — — 827 827 108,251 — Other — 234 52 286 164,188 — Construction and development Land & land development — 8 14 22 92,684 — Construction — — — — 48,116 — Residential 1-4 family real estate Personal residence 1,536 246 1,225 3,007 264,163 — Rental - small loan 309 259 1,274 1,842 102,213 — Rental - large loan — — 1,120 1,120 75,240 — Home equity 342 250 134 726 88,203 — Mortgage warehouse lines — — — — 252,472 — Consumer 126 38 24 188 34,452 — Other Credit cards 2 — 2 4 1,569 2 Overdrafts — — — — 588 — Total $ 2,942 $ 1,796 $ 9,633 $ 14,371 $ 2,205,336 $ 2 At December 31, 2019 Past Due 90 days or more and Accruing Dollars in thousands 30-59 days 60-89 days 90 days or more Total Current Commercial $ 216 $ — $ 483 $ 699 $ 219,753 $ — Commercial real estate - owner occupied Professional & medical — 137 1,602 1,739 80,234 — Retail 118 — 2,434 2,552 98,441 — Other — — — — 93,253 — Commercial real estate - non-owner occupied Hotels & motels — — — — 128,665 — Mini-storage — — — — 50,913 — Multifamily 809 — 7 816 163,582 — Retail 71 179 968 1,218 101,771 — Other — — 387 387 181,855 — Construction and development Land & land development 208 28 188 424 83,688 — Construction — — 138 138 37,385 — Residential 1-4 family real estate Personal residence 3,361 806 937 5,104 255,739 — Rental - small loan 810 21 940 1,771 99,309 — Rental - large loan — — — — 63,986 — Home equity 760 — 223 983 75,585 — Mortgage warehouse lines — — — — 126,237 — Consumer 190 79 70 339 34,682 — Other Credit cards 19 6 42 67 1,386 42 Overdrafts — — — — 798 — Total $ 6,562 $ 1,256 $ 8,419 $ 16,237 $ 1,897,262 $ 42 Nonaccrual loans: The following table presents the nonaccrual loans included in the net balance of loans at June 30, 2020 and December 31, 2019 . June 30, December 31, 2020 2019 Dollars in thousands Nonaccrual Nonaccrual with No Allowance for Credit Losses - Loans Nonaccrual Nonaccrual with No Allowance for Credit Losses - Loans Commercial $ 789 $ — $ 864 $ 76 Commercial real estate - owner occupied Professional & medical 1,737 — 1,602 — Retail 2,556 2,269 2,552 2,262 Other 384 — 43 — Commercial real estate - non-owner occupied Hotels & motels — — — — Mini-storage 54 — 57 — Multifamily 213 — 38 31 Retail 827 167 1,120 527 Other 52 — 388 40 Construction and development Land & land development 14 — 188 — Construction — — 138 — Residential 1-4 family real estate Personal residence 2,413 — 2,485 423 Rental - small loan 2,154 81 1,635 150 Rental - large loan 1,120 1,120 — — Home equity 186 — 284 — Mortgage warehouse lines — — — — Consumer 27 — 74 — Other Credit cards — — — — Overdrafts — — — — Total $ 12,526 $ 3,637 $ 11,468 $ 3,509 Credit Quality Indicators: We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. We internally grade all commercial loans at the time of loan origination. In addition, we perform an annual loan review on all non-homogenous commercial loan relationships with an aggregate exposure of $5.0 million , at which time these loans are re-graded. We use the following definitions for our risk grades: Pass: Loans graded as Pass are loans to borrowers of acceptable credit quality and risk. They are higher quality loans that do not fit any of the other categories described below. OLEM (Special Mention): Commercial loans categorized as OLEM are potentially weak. The credit risk may be relatively minor yet represent a risk given certain specific circumstances. If the potential weaknesses are not monitored or mitigated, the asset may weaken or inadequately protect our position in the future. Substandard: Commercial loans categorized as Substandard are inadequately protected by the borrower’s ability to repay, equity and/or the collateral pledged to secure the loan. These loans have identified weaknesses that could hinder normal repayment or collection of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the identified weaknesses are not mitigated. Doubtful: Commercial loans categorized as Doubtful have all the weaknesses inherent in those loans classified as Substandard, with the added elements that the full collection of the loan is improbable and the possibility of loss is high. Loss: Loans classified as loss are considered to be non-collectible and of such little value that their continuance as a bankable asset is not warranted. This does not mean that the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for purposes of the table below. As of June 30, 2020 , based on the most recent analysis performed, the risk category of loans based on year of origination is as follows: June 30, 2020 Dollars in thousands Risk Rating 2020 2019 2018 2017 2016 Prior Revolvi- ng Revolving- Term Total Commercial Pass $ 122,162 $ 42,472 $ 25,792 $ 23,244 $ 14,459 $ 13,816 $ 72,786 $ — $ 314,731 Special Mention 51 43 1,963 85 111 924 415 — 3,592 Substandard 1,018 204 228 9 77 105 3,824 — 5,465 Total Commercial 123,231 42,719 27,983 23,338 14,647 14,845 77,025 — 323,788 Commercial Real Estate - Owner Occupied Professional & medical Pass 5,887 14,501 2,617 27,485 3,869 35,706 3,005 — 93,070 Special Mention — 319 — — — 5,244 — — 5,563 Substandard — — — — 138 1,599 — — 1,737 Total Professional & Medical 5,887 14,820 2,617 27,485 4,007 42,549 3,005 — 100,370 Retail Pass 19,077 40,260 5,274 11,386 6,172 30,886 2,713 — 115,768 Special Mention — — — 589 7 874 — — 1,470 Substandard — — — — — 2,556 — — 2,556 Total Retail 19,077 40,260 5,274 11,975 6,179 34,316 2,713 — 119,794 Other Pass 13,854 15,167 17,207 9,665 13,522 35,497 9,457 — 114,369 Special Mention — — — — — 793 — — 793 Substandard — — — 360 — 415 42 — 817 Total Other 13,854 15,167 17,207 10,025 13,522 36,705 9,499 — 115,979 Total Commercial Real Estate - Owner Occupied 38,818 70,247 25,098 49,485 23,708 113,570 15,217 — 336,143 Commercial Real Estate - Non-Owner Occupied Hotels & motels Pass 3,457 61,307 18,043 9,921 10,483 14,836 1,157 — 119,204 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Hotels & Motels 3,457 61,307 18,043 9,921 10,483 14,836 1,157 — 119,204 Mini-storage Pass 3,983 19,825 15,114 4,066 7,325 5,283 178 — 55,774 Special Mention — — — — — 54 — — 54 Substandard — — — — — — — — — Total Mini-storage 3,983 19,825 15,114 4,066 7,325 5,337 178 — 55,828 Multifamily Pass 6,409 27,156 27,150 19,154 11,384 50,324 2,692 — 144,269 Special Mention — — — — — 101 — — 101 Substandard — — — — — 213 — — 213 Total Multifamily 6,409 27,156 27,150 19,154 11,384 50,638 2,692 — 144,583 June 30, 2020 Dollars in thousands Risk Rating 2020 2019 2018 2017 2016 Prior Revolvi- ng Revolving- Term Total Retail Pass 8,037 24,175 12,349 8,486 5,838 42,831 5,965 — 107,681 Special Mention — — — 176 — 570 — — 746 Substandard — — — — — 651 — — 651 Total Retail 8,037 24,175 12,349 8,662 5,838 44,052 5,965 — 109,078 Other Pass 16,462 21,089 52,054 11,150 27,806 30,271 2,280 — 161,112 Special Mention — — — — — 388 — — 388 Substandard — — — — — 2,974 — — 2,974 Total Other 16,462 21,089 52,054 11,150 27,806 33,633 2,280 — 164,474 Total Commercial Real Estate - Non-Owner Occupied 38,348 153,552 124,710 52,953 62,836 148,496 12,272 — 593,167 Construction and Development Land & land development Pass 4,997 30,603 9,448 4,896 6,844 24,147 9,750 — 90,685 Special Mention — — 21 — — 697 — — 718 Substandard — — — — 15 1,288 — — 1,303 Total Land & land development 4,997 30,603 9,469 4,896 6,859 26,132 9,750 — 92,706 Construction Pass 14,807 21,312 4,941 6,162 — — 894 — 48,116 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Construction 14,807 21,312 4,941 6,162 — — 894 — 48,116 Total Construction and Development 19,804 51,915 14,410 11,058 6,859 26,132 10,644 — 140,822 Residential 1-4 Family Real Estate Personal residence Pass 18,052 29,477 26,425 20,200 24,107 124,972 — — 243,233 Special Mention 109 188 63 355 76 12,784 — — 13,575 Substandard — 157 529 379 370 8,927 — — 10,362 Total Personal Residence 18,161 29,822 27,017 20,934 24,553 146,683 — — 267,170 Rental - small loan Pass 8,540 18,345 13,621 11,812 11,493 29,373 4,312 — 97,496 Special Mention 202 486 251 3 200 1,999 435 — 3,576 Substandard — — — — 71 2,903 9 — 2,983 Total Rental - Small Loan 8,742 18,831 13,872 11,815 11,764 34,275 4,756 — 104,055 Rental - large loan Pass 12,811 6,130 10,941 5,589 8,403 23,459 3,116 — 70,449 Special Mention — 1,430 — — — 33 — — 1,463 Substandard — — — — 1,120 3,328 — — 4,448 Total Rental - Large Loan 12,811 7,560 10,941 5,589 9,523 26,820 3,116 — 76,360 Home equity Pass 85 — 91 60 132 1,824 84,570 — 86,762 Special Mention — — — 40 — 152 1,335 — 1,527 Substandard — — — — — 336 304 — 640 Total Home Equity 85 — 91 100 132 2,312 86,209 — 88,929 June 30, 2020 Dollars in thousands Risk Rating 2020 2019 2018 2017 2016 Prior Revolvi- ng Revolving- Term Total Total Residential 1-4 Family Real Estate 39,799 56,213 51,921 38,438 45,972 210,090 94,081 — 536,514 Mortgage warehouse lines Pass — — — — — — 252,472 — 252,472 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Mortgage Warehouse Lines — — — — — — 252,472 — 252,472 Consumer Pass 7,173 12,350 6,153 2,466 1,700 1,914 711 — 32,467 Special Mention 410 636 318 209 93 69 17 — 1,752 Substandard 126 153 25 19 63 7 28 — 421 Total Consumer 7,709 13,139 6,496 2,694 1,856 1,990 756 — 34,640 Other Credit cards Pass 1,573 — — — — — — — 1,573 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Credit Cards 1,573 — — — — — — — 1,573 Overdrafts Pass 588 — — — — — — — 588 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Overdrafts 588 — — — — — — — 588 Total Other 2,161 — — — — — — — 2,161 Total $ 269,870 $ 387,785 $ 250,618 $ 177,966 $ 155,878 $ 515,123 $ 462,467 $ — $ 2,219,707 At June 30, 2020 , we had TDRs of $25.1 million , of which $22.1 million were current with respect to restructured contractual payments. At December 31, 2019 , our TDRs totaled $25.7 million , of which $22.9 million were current with respect to restructured contractual payments. There were no commitments to lend additional funds under these restructurings at either balance sheet date. The following table presents by class the TDRs that were restructured during the six months ended June 30, 2020 and June 30, 2019 . Generally, the modifications were extensions of term, modifying the payment terms from principal and interest to interest only for an extended period, or reduction in interest rate. TDRs are evaluated individually for allowance for credit loss purposes if the loan balance exceeds $500,000 , otherwise, smaller balance TDR loans are included in the pools to determine ACLL. There were no restructurings during second quarter of 2020 or 2019. For the Six Months Ended For the Six Months Ended Dollars in thousands Number of Modifications Pre-modification Recorded Investment Post-modification Recorded Investment Number of Modifications Pre-modification Recorded Investment Post-modification Recorded Investment Commercial real estate - owner occupied Other 1 $ 361 $ 361 1 $ 325 $ 325 Commercial real estate - non-owner occupied Multifamily — — — 1 35 35 Retail — — — 2 162 162 Other — — — 1 127 127 Residential 1-4 family real estate Personal residence — — — 3 151 151 Rental - small loan — — — 4 259 259 Consumer — — — 1 16 16 Total 1 $ 361 $ 361 13 $ 1,075 $ 1,075 The following tables present defaults during the stated period of TDRs that were restructured during the prior 12 months. For purposes of these tables, a default is considered as either the loan was past due 30 days or more at any time during the period, or the loan was fully or partially charged off during the period. For the Three Months Ended For the Three Months Ended Dollars in thousands Number of Defaults Recorded Investment at Default Date Number of Defaults Recorded Investment at Default Date Commercial real estate - owner occupied Other 1 $ 361 — $ — Commercial real estate - non-owner occupied Other — — 1 126 Residential 1-4 family real estate Personal residence — — 1 47 Rental - small loan — — 3 146 Total 1 $ 361 5 $ 319 For the Six Months Ended For the Six Months Ended Dollars in thousands Number of Defaults Recorded Investment at Default Date Number of Defaults Recorded Investment at Default Date Commercial real estate - owner occupied Other 1 $ 361 — $ — Commercial real estate - non-owner occupied Other — — 1 126 Residential 1-4 family real estate Personal residence — — 1 47 Rental - small loan — — 3 146 Total 1 $ 361 5 $ 319 As of June 30, 2020, we had executed 618 modifications to interest only or principal and interest deferrals on outstanding loan balances of $360 million in connection with the COVID-19 relief provided by the CARES Act. These modifications and deferrals were generally no more than 6 months in duration and were not considered troubled debt restructurings based on interagency guidance issued in March 2020. On January 1, 2020, we purchased loans, for which there was, at the time of acquisition, more than significant deterioration of credit quality since origination (PCD loans). The carrying amount of these loans at acquisition is as follows: Dollars in thousands January 1, 2020 Purchase price of PCD loans at acquisition $ 1,877 Allowanc |
