Loans | LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS Loans The following table presents the amortized cost of loans held for investment: Dollars in thousands June 30, December 31, Commercial $ 326,468 $ 306,885 Commercial real estate - owner occupied Professional & medical 122,403 107,151 Retail 141,703 126,451 Other 128,058 118,258 Commercial real estate - non-owner occupied Hotels & motels 116,745 121,502 Mini-storage 49,875 60,550 Multifamily 196,964 175,988 Retail 143,931 135,405 Other 276,900 192,120 Construction and development Land & land development 102,670 107,342 Construction 140,788 91,100 Residential 1-4 family real estate Personal residence 279,970 305,093 Rental - small loan 118,269 120,426 Rental - large loan 71,694 74,185 Home equity 72,956 81,588 Mortgage warehouse lines 105,288 251,810 Consumer 32,732 33,906 Other Credit cards 1,690 1,855 Overdrafts 666 538 Total loans, net of unearned fees 2,429,770 2,412,153 Less allowance for credit losses - loans 33,885 32,246 Loans, net $ 2,395,885 $ 2,379,907 Accrued interest and fees receivable on loans totaled $7.4 million and $9.1 million at June 30, 2021 and December 31, 2020, respectively and is included in accrued interest and fees receivable in the accompanying consolidated balance sheets. COVID-19 Loan Deferments. In December 2020, the Consolidated Appropriates Act of 2021 (“CAA”) was passed. Under Section 541 of the CAA, Congress extended or modified many of the relief programs first created by the CARES Act, including the PPP loan program and treatment of certain loan modifications related to the COVID-19 pandemic. Certain borrowers continue to be unable to meet their contractual payment obligations because of the adverse effects of COVID-19. To help mitigate these effects, loan customers may apply for a deferral of payments, or portions thereof, for up to 90 days. After 90 days, customers may apply for an additional deferral, and a small proportion of our customers have requested such an additional deferral. In the absence of other intervening factors, such short-term modifications made on a good faith basis are not categorized as troubled debt restructurings, nor are loans granted payment deferrals related to COVID-19 reported as past due or placed on non-accrual status (provided the loans were not past due or on non-accrual status prior to the deferral). At June 30, 2021, we had 3 loans in COVID-19 related deferment with an aggregate outstanding balance of approximately $8.7 million. The following table presents the contractual aging of the amortized cost basis of past due loans by class as of June 30, 2021 and December 31, 2020. At June 30, 2021 Past Due 90 days or more and Accruing Dollars in thousands 30-59 days 60-89 days 90 days or more Total Current Commercial $ 414 $ 32 $ 525 $ 971 $ 325,497 $ — Commercial real estate - owner occupied Professional & medical — — — — 122,403 — Retail — 432 336 768 140,935 — Other 301 — 336 637 127,421 — Commercial real estate - non-owner occupied Hotels & motels — — — — 116,745 — Mini-storage — — — — 49,875 — Multifamily — — — — 196,964 — Retail — — 336 336 143,595 — Other — — 317 317 276,583 — Construction and development Land & land development 1,874 37 621 2,532 100,138 — Construction — — — — 140,788 — Residential 1-4 family real estate Personal residence 2,531 1,030 899 4,460 275,510 — Rental - small loan 323 282 2,023 2,628 115,641 — Rental - large loan — — — — 71,694 — Home equity 312 51 170 533 72,423 — Mortgage warehouse lines — — — — 105,288 — Consumer 313 112 16 441 32,291 — Other Credit cards — — 2 2 1,688 2 Overdrafts — — — — 666 — Total $ 6,068 $ 1,976 $ 5,581 $ 13,625 $ 2,416,145 $ 2 At December 31, 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 $ 60 $ — $ 318 $ 378 $ 306,507 $ — Commercial real estate - owner occupied Professional & medical 220 — 457 677 106,474 — Retail 54 — 2,259 2,313 124,138 — Other — — 150 150 118,108 — Commercial real estate - non-owner occupied Hotels & motels — — — — 121,502 — Mini-storage — — — — 60,550 — Multifamily — — — — 175,988 — Retail — — 657 657 134,748 — Other — — 315 315 191,805 — Construction and development Land & land development 47 — 70 117 107,225 — Construction — — — — 91,100 — Residential 1-4 family real estate Personal residence 3,750 1,071 1,656 6,477 298,616 — Rental - small loan 1,129 487 719 2,335 118,091 — Rental - large loan 769 — — 769 73,416 — Home equity 758 — 197 955 80,633 — Mortgage warehouse lines — — — — 251,810 — Consumer 190 44 72 306 33,600 — Other Credit cards 5 — 2 7 1,848 2 Overdrafts — — — — 538 — Total $ 6,982 $ 1,602 $ 6,872 $ 15,456 $ 2,396,697 $ 2 The following table presents the nonaccrual loans included in the net balance of loans at June 30, 2021 and December 31, 2020. June 30, December 31, 2021 2020 Dollars in thousands Nonaccrual Nonaccrual Nonaccrual Nonaccrual Commercial $ 968 $ — $ 525 $ — Commercial real estate - owner occupied Professional & medical 73 — 536 — Retail 10,125 336 12,193 2,258 Other 377 — 384 — Commercial real estate - non-owner occupied Hotels & motels 3,202 — — — Mini-storage — — — — Multifamily — — — — Retail 336 336 809 657 Other 317 — 315 — Construction and development Land & land development 621 461 70 — Construction — — 165 — Residential 1-4 family real estate Personal residence 3,475 465 3,424 — Rental - small loan 2,930 495 1,603 108 Rental - large loan — — — — Home equity 395 210 236 — Mortgage warehouse lines — — — — Consumer 36 — 73 — Other Credit cards — — — — Overdrafts — — — — Total $ 22,855 $ 2,303 $ 20,333 $ 3,023 At June 30, 2021, we had troubled debt restructurings ("TDRs") of $22.0 million, of which $19.6 million were current with respect to restructured contractual payments. At December 31, 2020, our TDRs totaled $24.5 million, of which $20.5 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, 2021 and June 30, 2020. 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 the quarter ending June 30, 2021 or 2020. For the Six Months Ended For the Six Months Ended Dollars in thousands Number of Pre- Post- Number of Pre- Post- Commercial real estate - owner occupied Other — $ — $ — 1 $ 361 $ 361 Total — $ — $ — 1 $ 361 $ 361 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 Recorded Number Recorded Commercial real estate - owner occupied Other — $ — 1 $ 361 Residential 1-4 family real estate Personal residence 1 49 — — Total 1 $ 49 1 $ 361 For the Six Months Ended For the Six Months Ended Dollars in thousands Number Recorded Number Recorded Commercial real estate - owner occupied Other — $ — 1 $ 361 Residential 1-4 family real estate Personal residence 1 49 — — Rental - small loan 1 399 — — Total 2 $ 448 1 $ 361 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. Special Mention: Commercial loans categorized as Special Mention 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, 2021 and December 31, 2020, based on the most recent analysis performed, the risk category of loans based on year of origination is as follows: June 30, 2021 Dollars in thousands Risk Rating 2021 2020 2019 2018 2017 Prior Revolvi- Revolving- Term Total Commercial Pass $ 95,452 $ 46,957 $ 36,327 $ 7,150 $ 13,413 $ 17,786 $ 100,244 $ — $ 317,329 Special Mention 437 991 33 1,942 69 563 4,472 — 8,507 Substandard — — 119 86 20 42 365 — 632 Total Commercial 95,889 47,948 36,479 9,178 13,502 18,391 105,081 — 326,468 Commercial Real Estate Professional & medical Pass 27,222 18,606 15,985 1,839 23,410 26,112 2,975 — 116,149 Special Mention — 1,159 — — — 5,023 — — 6,182 Substandard — 72 — — — — — — 72 Total Professional & Medical 27,222 19,837 15,985 1,839 23,410 31,135 2,975 — 122,403 Retail Pass 26,398 27,002 26,503 5,653 9,468 31,316 2,168 — 128,508 Special Mention — — — — 432 758 — — 1,190 Substandard — — 10,443 — 149 429 984 — 12,005 Total Retail 26,398 27,002 36,946 5,653 10,049 32,503 3,152 — 141,703 Other Pass 12,854 30,968 14,189 16,906 9,410 40,626 2,043 — 126,996 Special Mention 61 — — — — 625 — — 686 Substandard — — — — — 337 39 — 376 Total Other 12,915 30,968 14,189 16,906 9,410 41,588 2,082 — 128,058 Total Commercial Real Estate - 66,535 77,807 67,120 24,398 42,869 105,226 8,209 — 392,164 Commercial Real Estate Hotels & motels Pass — 3,371 23,614 16,103 9,787 20,982 2,566 — 76,423 Special Mention — — 37,120 — — — — — 37,120 Substandard — 2,928 — — — 274 — — 3,202 Total Hotels & Motels — 6,299 60,734 16,103 9,787 21,256 2,566 — 116,745 Mini-storage Pass 246 7,587 10,968 14,727 4,597 10,403 222 — 48,750 Special Mention — — — — — 49 — — 49 Substandard — — — — — 1,076 — — 1,076 Total Mini-storage 246 7,587 10,968 14,727 4,597 11,528 222 — 49,875 Multifamily Pass 29,826 38,647 22,477 26,686 17,776 56,402 4,611 — 196,425 Special Mention — 494 — — — 45 — — 539 Substandard — — — — — — — — — Total Multifamily 29,826 39,141 22,477 26,686 17,776 56,447 4,611 — 196,964 Retail Pass 18,009 42,648 26,981 10,254 9,274 28,923 6,655 — 142,744 Special Mention — — — — — 787 — — 787 Substandard — — — — — 400 — — 400 June 30, 2021 Dollars in thousands Risk Rating 2021 2020 2019 2018 2017 Prior Revolvi- Revolving- Term Total Total Retail 18,009 42,648 26,981 10,254 9,274 30,110 6,655 — 143,931 Other Pass 88,640 75,569 20,247 24,000 9,089 53,302 2,264 — 273,111 Special Mention — — — — — — — — — Substandard — — — 576 — 3,213 — — 3,789 Total Other 88,640 75,569 20,247 24,576 9,089 56,515 2,264 — 276,900 Total Commercial Real Estate - 136,721 171,244 141,407 92,346 50,523 175,856 16,318 — 784,415 Construction and Development Land & land development Pass 10,278 19,190 23,099 7,345 3,714 23,426 12,918 — 99,970 Special Mention — 158 66 — — 640 — — 864 Substandard — — — — — 1,836 — — 1,836 Total Land & land development 10,278 19,348 23,165 7,345 3,714 25,902 12,918 — 102,670 Construction Pass 37,312 55,332 41,368 2,037 — — 4,238 — 140,287 Special Mention — — — — — — — — — Substandard — — — 331 — — 170 — 501 Total Construction 37,312 55,332 41,368 2,368 — — 4,408 — 140,788 Total Construction and 47,590 74,680 64,533 9,713 3,714 25,902 17,326 — 243,458 Residential 1-4 Family Real Estate Personal residence Pass 24,890 38,904 21,732 22,538 17,323 132,657 — — 258,044 Special Mention — — 505 129 400 11,259 — — 12,293 Substandard — — 713 813 459 7,648 — — 9,633 Total Personal Residence 24,890 38,904 22,950 23,480 18,182 151,564 — — 279,970 Rental - small loan Pass 17,275 16,210 15,794 12,205 8,053 36,960 4,427 — 110,924 Special Mention — 108 244 253 2 2,074 122 — 2,803 Substandard — 370 473 541 530 2,611 17 — 4,542 Total Rental - Small Loan 17,275 16,688 16,511 12,999 8,585 41,645 4,566 — 118,269 Rental - large loan Pass 15,289 15,858 5,101 7,008 3,487 17,427 3,130 — 67,300 Special Mention — — — — — 774 — — 774 Substandard — — — — — 3,620 — — 3,620 Total Rental - Large Loan 15,289 15,858 5,101 7,008 3,487 21,821 3,130 — 71,694 Home equity Pass 283 30 13 23 19 1,302 68,642 — 70,312 Special Mention — — — — 40 94 1,635 — 1,769 Substandard — — — — — 403 472 — 875 Total Home Equity 283 30 13 23 59 1,799 70,749 — 72,956 Total Residential 1-4 Family Real 57,737 71,480 44,575 43,510 30,313 216,829 78,445 — 542,889 June 30, 2021 Dollars in thousands Risk Rating 2021 2020 2019 2018 2017 Prior Revolvi- Revolving- Term Total Mortgage warehouse lines Pass — — — — — — 105,288 — 105,288 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Mortgage Warehouse Lines — — — — — — 105,288 — 105,288 Consumer Pass 7,933 9,227 6,578 2,901 973 2,023 1,016 — 30,651 Special Mention 464 670 291 128 120 63 11 — 1,747 Substandard 45 136 67 12 5 43 26 — 334 Total Consumer 8,442 10,033 6,936 3,041 1,098 2,129 1,053 — 32,732 Other Credit cards Pass 1,690 — — — — — — — 1,690 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Credit Cards 1,690 — — — — — — — 1,690 Overdrafts Pass 666 — — — — — — — 666 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Overdrafts 666 — — — — — — — 666 Total Other 2,356 — — — — — — — 2,356 Total $ 415,270 $ 453,192 $ 361,050 $ 182,186 $ 142,019 $ 544,333 $ 331,720 $ — $ 2,429,770 December 31, 2020 Dollars in thousands Risk Rating 2020 2019 2018 2017 2016 Prior Revolvi- Revolving- Term Total Commercial Pass $ 112,335 $ 46,323 $ 20,936 $ 16,723 $ 11,087 $ 12,336 $ 78,107 $ — $ 297,847 Special Mention 9 38 1,956 77 201 909 407 — 3,597 Substandard 1,039 177 215 29 40 56 3,885 — 5,441 Total Commercial 113,383 46,538 23,107 16,829 11,328 13,301 82,399 — 306,885 Commercial Real Estate Professional & medical Pass 19,454 16,414 2,540 26,578 3,322 28,905 3,079 — 100,292 Special Mention 1,171 — — — — 5,152 — — 6,323 Substandard 79 321 — — 136 — — — 536 Total Professional & Medical 20,704 16,735 2,540 26,578 3,458 34,057 3,079 — 107,151 Retail Pass 28,351 28,547 5,238 10,288 6,041 31,087 2,199 — 111,751 Special Mention — — — 432 3 824 — — 1,259 Substandard — 10,524 — 157 — 2,360 400 — 13,441 December 31, 2020 Dollars in thousands Risk Rating 2020 2019 2018 2017 2016 Prior Revolvi- Revolving- Term Total Total Retail 28,351 39,071 5,238 10,877 6,044 34,271 2,599 — 126,451 Other Pass 28,712 13,722 17,699 9,845 13,119 32,486 1,496 — 117,079 Special Mention — — — — — 694 — — 694 Substandard — — — — — 444 41 — 485 Total Other 28,712 13,722 17,699 9,845 13,119 33,624 1,537 — 118,258 Total Commercial Real Estate - 77,767 69,528 25,477 47,300 22,621 101,952 7,215 — 351,860 Commercial Real Estate Hotels & motels Pass 3,428 23,821 18,894 9,880 7,389 14,252 3,160 — 80,824 Special Mention 2,994 37,398 — — — 286 — — 40,678 Substandard — — — — — — — — — Total Hotels & Motels 6,422 61,219 18,894 9,880 7,389 14,538 3,160 — 121,502 Mini-storage Pass 10,159 19,022 15,046 3,986 6,228 4,780 170 — 59,391 Special Mention — — — — — 50 — — 50 Substandard — — — — — 1,109 — — 1,109 Total Mini-storage 10,159 19,022 15,046 3,986 6,228 5,939 170 — 60,550 Multifamily Pass 39,814 27,090 27,198 19,294 10,762 47,751 2,844 — 174,753 Special Mention — — — — — 48 — — 48 Substandard — 1,187 — — — — — — 1,187 Total Multifamily 39,814 28,277 27,198 19,294 10,762 47,799 2,844 — 175,988 Retail Pass 44,359 27,357 11,169 9,361 4,414 30,381 6,502 — 133,543 Special Mention — — — — 446 540 — — 986 Substandard — — — 152 — 724 — — 876 Total Retail 44,359 27,357 11,169 9,513 4,860 31,645 6,502 — 135,405 Other Pass 75,272 20,483 24,663 10,626 26,989 28,293 1,794 — 188,120 Special Mention — — — — — 142 — — 142 Substandard — — — — — — — — — Doubtful — — 576 — — 3,282 — — 3,858 Total Other 75,272 20,483 25,239 10,626 26,989 31,717 1,794 — 192,120 Total Commercial Real Estate - 176,026 156,358 97,546 53,299 56,228 131,638 14,470 — 685,565 Construction and Development Land & land development Pass 27,084 25,468 10,943 4,149 6,370 21,882 9,320 — 105,216 Special Mention — 70 12 — — 644 — — 726 Substandard — — 6 — 11 1,383 — — 1,400 Total Land & land development 27,084 25,538 10,961 4,149 6,381 23,909 9,320 — 107,342 December 31, 2020 Dollars in thousands Risk Rating 2020 2019 2018 2017 2016 Prior Revolvi- Revolving- Term Total Construction Pass 50,060 34,480 2,833 885 — — 1,325 — 89,583 Special Mention — — — — — — — — — Substandard — 1,352 — — — 165 — — 1,517 Total Construction 50,060 35,832 2,833 885 — 165 1,325 — 91,100 Total Construction and 77,144 61,370 13,794 5,034 6,381 24,074 10,645 — 198,442 Residential 1-4 Family Real Estate Personal residence Pass 51,120 31,415 27,052 23,069 23,759 126,293 — — 282,708 Special Mention — 242 131 267 254 12,020 — — 12,914 Substandard — 46 849 540 126 7,910 — — 9,471 Total Personal Residence 51,120 31,703 28,032 23,876 24,139 146,223 — — 305,093 Rental - small loan Pass 18,762 20,113 14,512 10,705 10,941 34,643 4,047 — 113,723 Special Mention 110 253 251 3 192 1,749 62 — 2,620 Substandard — 1,163 — — 46 2,874 — — 4,083 Total Rental - Small Loan 18,872 21,529 14,763 10,708 11,179 39,266 4,109 — 120,426 Rental - large loan Pass 16,926 5,484 9,456 5,323 9,133 20,515 2,188 — 69,025 Special Mention — 1,430 — — — 32 — — 1,462 Substandard — — — — — 3,698 — — 3,698 Total Rental - Large Loan 16,926 6,914 9,456 5,323 9,133 24,245 2,188 — 74,185 Home equity Pass 429 565 347 502 89 2,174 74,974 — 79,080 Special Mention — — — 40 — 96 1,596 — 1,732 Substandard — — 32 28 — 424 292 — 776 Total Home Equity 429 565 379 570 89 2,694 76,862 — 81,588 Total Residential 1-4 Family Real 87,347 60,711 52,630 40,477 44,540 212,428 83,159 — 581,292 Mortgage warehouse lines Pass — — — — — — 251,810 — 251,810 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Mortgage Warehouse Lines — — — — — — 251,810 — 251,810 Consumer Pass 12,785 9,257 4,239 1,609 1,237 1,516 822 — 31,465 Special Mention 991 454 214 155 70 49 18 — 1,951 Substandard 245 127 31 6 51 4 26 — 490 Total Consumer 14,021 9,838 4,484 1,770 1,358 1,569 866 — 33,906 Other Credit cards Pass 1,855 — — — — — — — 1,855 Special Mention — — — — — — — — — Substandard — — — — — — — — — December 31, 2020 Dollars in thousands Risk Rating 2020 2019 2018 2017 2016 Prior Revolvi- Revolving- Term Total Total Credit Cards 1,855 — — — — — — — 1,855 Overdrafts Pass 538 — — — — — — — 538 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Overdrafts 538 — — — — — — — 538 Total Other 2,393 — — — — — — — 2,393 Total $ 548,081 $ 404,343 $ 217,038 $ 164,709 $ 142,456 $ 484,962 $ 450,564 $ — $ 2,412,153 Allowance for Credit Losses - Loans The following tables presents the activity in the ACLL by portfolio segment during the three and six months ended June 30, 2021 and the twelve months ended December 31, 2020: For the Three Months Ended June 30, 2021 Allowance for Credit Losses - Loans Dollars in thousands Beginning Provision Adjustment Charge- Recoveries Ending Commercial $ 2,772 $ 20 $ — $ (97) $ 14 $ 2,709 Commercial real estate - owner occupied Professional & medical 742 244 — — — 986 Retail 4,001 (482) — — — 3,519 Other 538 18 — — — 556 Commercial real estate - non-owner occupied Hotels & motels 2,945 (376) — — — 2,569 Mini-storage 180 (23) — — — 157 Multifamily 1,533 101 — — 3 1,637 Retail 1,331 140 — — — 1,471 Other 1,168 257 — — — 1,425 Construction and development Land & land development 3,911 (208) — — 2 3,705 Construction 5,620 597 — — — 6,217 Residential 1-4 family real estate Personal residence 3,232 (197) — (35) 50 3,050 Rental - small loan 2,537 77 — (75) 7 2,546 Rental - large loan 2,495 (64) — — — 2,431 Home equity 579 (5) — (26) 3 551 Mortgage warehouse lines — — — — — — Consumer 242 (81) — (23) 34 172 Other Credit cards 15 8 — (9) 2 16 Overdrafts 201 19 — (78) 26 168 Total $ 34,042 $ 45 $ — $ (343) $ 141 $ 33,885 For the Six Months Ended June 30, 2021 Allowance for Credit Losses - Loans Dollars in thousands Beginning Provision Adjustment Charge- Recoveries Ending Commercial $ 2,304 $ 609 $ — $ (223) $ 19 $ 2,709 Commercial real estate - owner occupied Professional & medical 954 35 — (3) — 986 Retail 3,173 346 — — — 3,519 Other 610 (54) — — — 556 Commercial real estate - non-owner occupied Hotels & motels 2,135 434 — — — 2,569 Mini-storage 337 (180) — — — 157 Multifamily 1,547 87 — — 3 1,637 Retail 981 490 — — — 1,471 Other 1,104 321 — — — 1,425 Construction and development Land & land development 4,084 (386) — — 7 3,705 Construction 4,648 1,569 — — — 6,217 Residential 1-4 family real estate Personal residence 3,559 (484) — (109) 84 3,050 Rental - small loan 2,736 (130) — (89) 29 2,546 Rental - large loan 3,007 (576) — — — 2,431 Home equity 713 (146) — (26) 10 551 Mortgage warehouse lines — — — — — — Consumer 216 (35) — (75) 66 172 Other Credit cards 17 7 — (12) 4 16 Overdrafts 121 123 — (160) 84 168 Total $ 32,246 $ 2,030 $ — $ (697) $ 306 $ 33,885 For the Twelve Months Ended December 31, 2020 Allowance for Credit Losses - Loans Dollars in thousands Beginning Impact of Provision Adjustment Charge- Recoveries Ending Commercial $ 1,221 $ 1,064 $ 85 $ — $ (99) $ 33 $ 2,304 Commercial real estate - owner occupied Professional & medical 1,058 (390) 1,290 1 (1,005) — 954 Retail 820 (272) 2,311 152 — 162 3,173 Other 821 (137) (104) 1 — 29 610 Commercial real estate - non-owner occupied Hotels & motels 1,235 (936) 1,836 — — — 2,135 Mini-storage 485 (311) 48 115 — — 337 Multifamily 1,534 8 (155) 122 — 38 1,547 Retail 964 279 (22) 101 (343) 2 981 Other 1,721 (1,394) 700 58 — 19 1,104 Construction and development Land & land development 600 2,136 1,202 111 (7) 42 4,084 Construction 242 996 3,159 251 — — 4,648 Residential 1-4 family real estate Personal residence 1,275 1,282 980 182 (252) 92 3,559 Rental - small loan 532 1,453 657 96 (140) 138 2,736 Rental - large loan 49 2,884 58 16 — — 3,007 Home equity 138 308 246 — (24) 45 713 Mortgage warehouse lines — — — — — — — Consumer 379 (238) 166 — (239) 148 216 Other Credit cards — 12 35 — (40) 10 17 Overdrafts — 182 251 — (460) 148 121 Total $ 13,074 $ 6,926 $ 12,743 $ 1,206 $ (2,609) $ 906 $ 32,246 The following tables presents, as of June 30, 2021 and December 31, 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, 2021 Loan Balances Allowance for Credit Losses - Loans Dollars in thousands Loans Individually Evaluated Loans Collectively Evaluated (1) Total Loans Individually Evaluated Loans Collectively Evaluated Total Commercial $ 4,770 $ 321,698 $ 326,468 $ — $ 2,709 $ 2,709 Commercial real estate - owner occupied Professional & medical 2,125 120,278 122,403 213 773 986 Retail 16,003 125,700 141,703 2,129 1,390 3,519 Other — 128,058 128,058 — 556 556 Commercial real estate - non-owner occupied Hotels & motels 3,202 113,543 116,745 786 1,783 2,569 Mini-storage 1,076 48,799 49,875 — 157 157 Multifamily — 196,964 196,964 — 1,637 1,637 Retail 3,091 140,840 143,931 — 1,471 1,471 Other 5,737 271,163 276,900 129 1,296 1,425 Construction and development Land & land development 2,334 100,336 102,670 660 3,045 3,705 Construction — 140,788 140,788 — 6,217 6,217 Residential 1-4 family real estate Personal residence 465 279,505 279,970 — 3,050 3,050 Rental - small loan 1,634 116,635 118,269 135 2,411 2,546 Rental - large loan 3,222 68,472 71,694 — 2,431 2,431 Home equity 733 72,223 72,956 — 551 551 Mortgage warehouse lines — 105,288 105,288 — — — Consumer — 32,732 32,732 — 172 172 Other Credit cards — 1,690 1,690 — 16 16 Overdrafts — 666 666 — 168 168 Total $ 44,392 $ 2,385,378 $ 2,429,770 $ 4,052 $ 29,833 $ 33,885 (1) Included in the loans collectively evaluated are $47.8 million in fully guaranteed or cash secured loans, which are excluded from the pools collectively evaluated and carry no reserve. December 31, 2020 Loan Balances Allowance for Credit Losses - Loans Dollars in thousands Loans Individually Evaluated Loans Collectively Evaluated (1) Total Loans Individually Evaluated Loans Collectively Evaluated Total Commercial $ 4,851 $ 302,034 $ 306,885 $ 8 $ 2,296 $ 2,304 Commercial real estate - owner occupied Professional & medical 2,171 104,980 107,151 223 731 954 Retail 17,458 108,993 126,451 2,258 915 3,173 Other — 118,258 118,258 — 610 610 Commercial real estate - non-owner occupied Hotels & motels — 121,502 121,502 — 2,135 2,135 Mini-storage 1,109 59,441 60,550 111 226 337 Multifamily 1,187 174,801 175,988 135 1,412 1,547 Retail 3,473 131,932 135,405 — 981 981 Other 5,857 186,263 192,120 129 975 1,104 Construction and development Land & land development 1,891 105,451 107,342 623 3,461 4,084 Construction 1,352 89,748 91,100 135 4,513 4,648 Residential 1-4 family real estate Personal residence — 305,093 305,093 — 3,559 3,559 Rental - small loan 1,300 119,126 120,426 102 2,634 2,736 Rental - large loan 3,288 70,897 74,185 — 3,007 3,007 Home equity 523 81,065 81,588 — 713 713 Consumer — 33,906 33,906 — 216 216 Other Credit cards — 1,855 1,855 — 17 17 Overdrafts — 538 538 — 121 121 Mortgage warehouse lines — 251,810 251,810 — — — Total $ 44,460 $ 2,367,693 $ 2,412,153 $ 3,724 $ 28,522 $ 32,246 (1) Included in the loans collectively evaluated are $83.9 million in fully guaranteed or cash secured loans, which are excluded from the pools collectively evaluated and carry no reserve. 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, 2021 Dollars in thousands Real Estate Non-Real Estate Total Loans Allowance for Credit Losses Commercial $ — $ 4,770 $ 4,770 $ — Commercial real estate - owner occupied Professional & medical 2,125 — 2,125 213 Retail 16,003 — 16,003 2,129 Other — — — — Commercial real estate - non-owner occupied Hotels & motels 3,202 — 3,202 786 Mini-storage 1,076 — 1,076 — Multifamily — — — — Retail 3,091 — 3,091 — Other 5,737 — 5,737 129 Construction and development Land & land development 2,334 — 2,334 660 Construction — — — — Residential 1-4 family real estate Personal residence 465 — 465 — Rental - small loan 1,634 — 1,634 135 Rental - large loan 3,222 — 3,222 — Home equity 733 — 733 — Consumer — — — — Other Credit cards — — — — Overdrafts — — — — Total $ 39,622 $ 4,770 $ 44,392 $ 4,052 December 31, 2020 Dollars in thousands Real Estate Non-Real Estate Total Loans Allowance for Credit Losses Commercial $ — $ 4,851 $ 4,851 $ 8 Commercial real estate - owner occupied Professional & medical 2,171 — 2,171 223 Retail 17,458 — 17,458 2,258 Other — — — — Commercial real estate - non-owner occupied Hotels & motels — — — — Mini-storage 1,109 — 1,109 111 Multifamily 1,187 — 1,187 135 Retail 3,473 — 3,473 — Other 5,857 — 5,857 129 Construction and development Land & land development 1,891 — 1,891 623 Construction 1,352 — 1,352 135 Residential 1-4 family real estate Personal residence — — — — Rental - small loan 1,300 — 1,300 102 Rental - large loan 3,288 — 3,288 — Home equity 523 — 523 — Consumer — — — — Other Credit cards — — — — Overdrafts — — — — Total $ 39,609 $ 4,851 $ 44,460 $ 3,724 |