Loans (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Recorded Investment in Loans

The following table presents the recorded investment in loans at December 31, 2021 and December 31, 2020. The recorded investment in loans excludes accrued interest receivable.


(Dollars in thousands)	Originated		Acquired		Total
December 31, 2021
Commercial real estate	$	644,337	$	106,427	$	750,764
Commercial and industrial	420,635		39,895		460,530
Residential real estate	421,226		19,414		440,640
Consumer	771		66		837
Total	$	1,486,969	$	165,802	$	1,652,771
December 31, 2020
Commercial real estate	$	587,631	$	133,201	$	720,832
Commercial and industrial	629,434		56,070		685,504
Residential real estate	280,645		34,831		315,476
Consumer	748		977		1,725
Total	$	1,498,458	$	225,079	$	1,723,537

Information as to Nonperforming Assets

Information as to nonperforming assets was as follows:


(Dollars in thousands)	December 31, 2021		December 31, 2020
Nonaccrual loans:
Commercial real estate	$	4,246	$	7,320
Commercial and industrial	4,208		7,490
Residential real estate	2,819		3,991
Consumer	16		15
Total nonaccrual loans	11,289		18,816
Other real estate owned	201		—
Total nonperforming assets	$	11,490	$	18,816
Loans 90 days or more past due and still accruing	$	162	$	269

Summary of Loan Delinquency

Loan delinquency as of the dates presented below was as follows:


(Dollars in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90+ Days Past Due		Total
December 31, 2021
Commercial real estate	$	750,666	$	98	$	—	$	—	$	750,764
Commercial and industrial	460,419		107		4		—		460,530
Residential real estate	436,009		2,443		851		1,337		440,640
Consumer	821		—		7		9		837
Total	$	1,647,915	$	2,648	$	862	$	1,346	$	1,652,771
December 31, 2020
Commercial real estate	$	714,196	$	4,863	$	1,773	$	—	$	720,832
Commercial and industrial	681,106		893		3,505		—		685,504
Residential real estate	305,800		5,420		1,110		3,146		315,476
Consumer	1,723		—		—		2		1,725
Total	$	1,702,825	$	11,176	$	6,388	$	3,148	$	1,723,537

Information as to Impaired Loans

Information as to impaired loans, excluding PCI loans, was as follows:


(Dollars in thousands)	December 31, 2021		December 31, 2020
Nonaccrual loans	$	11,289	$	18,816
Performing troubled debt restructurings:

Commercial and industrial	334		546
Residential real estate	365		432
Total performing troubled debt restructurings	699		978
Total impaired loans, excluding purchase credit impaired loans	$	11,988	$	19,794

The total balance of all PCI loans from these acquisitions was as follows:


(Dollars in thousand)	Unpaid Principal Balance		Recorded Investment
December 31, 2021
Commercial real estate	$	4,353	$	1,597
Commercial and industrial	235		1
Residential real estate	3,416		2,577

Total PCI loans	$	8,004	$	4,175
December 31, 2020
Commercial real estate	$	5,109	$	1,773
Commercial and industrial	643		274
Residential real estate	4,017		2,949
Total PCI loans	$	9,769	$	4,996

Loans individually evaluated for impairment are presented below.


(Dollars in thousands)	Recorded investment with no related allowance		Recorded investment with related allowance		Total recorded investment		Contractual principal balance		Related allowance
December 31, 2021
Individually evaluated impaired loans:
Commercial real estate	$	4,246	$	—	$	4,246	$	4,636	$	—
Commercial and industrial	3,854		688		4,542		5,223		292
Residential real estate	802		136		938		1,264		29
Total	$	8,902	$	824	$	9,726	$	11,123	$	321
December 31, 2020
Individually evaluated impaired loans:
Commercial real estate	$	7,320	$	—	$	7,320	$	7,720	$	—
Commercial and industrial	7,964		630		8,594		9,208		307
Residential real estate	2,153		192		2,345		2,447		25
Total	$	17,437	$	822	$	18,259	$	19,375	$	332


(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized







For the year ended December 31, 2021
Individually evaluated impaired loans:
Commercial real estate	$	5,018	$	—	$	345
Commercial and industrial	6,008		27		237
Residential real estate	1,287		22		10

Total	$	12,313	$	49	$	592







For the year ended December 31, 2020
Individually evaluated impaired loans:
Commercial real estate	$	7,981	$	—	$	10
Commercial and industrial	14,008		46		87
Residential real estate	3,304		36		55

Total	$	25,293	$	82	$	152
For the year ended December 31, 2019
Individually evaluated impaired loans:
Commercial real estate	$	4,233	$	2	$	209
Commercial and industrial	8,514		43		573
Residential real estate	1,904		29		9

Total	$	14,651	$	74	$	791

Summary of Recorded Investment of Loans Modified in TDRs

The following table presents the recorded investment of loans modified as TDRs during the years ended December 31, 2020, and 2019 by type of concession granted. There were three loans modified as TDRs during the year ended December 31, 2021 which were subsequently paid off during the third quarter of 2021. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession.


	Concession type									Financial effects of modification
(Dollars in thousands)	Principal deferral		Interest rate		Forbearance agreement		Total number of loans	Total recorded investment		Net charge-offs		Provision for loan losses






For the year ended December 31, 2021
Commercial real estate	$	—	$	—	$	—	1	$	—	$	—	$	—
Commercial and industrial	—		—		—		2	—		—		—


Total	$	—	$	—	$	—	3	$	—	$	—	$	—





For the year Ended December 31, 2020
Commercial real estate	$	1,654	$	—	$	—	2	$	1,654	$	—	$	—

Residential real estate	—		74		—		1	74		—		—
Total	$	1,654	$	74	$	—	3	$	1,728	$	—	$	—
For the year ended December 31, 2019

Commercial and industrial	—		—		332		2	332		—		174

Total	$	—	$	—	$	332	2	$	332	$	—	$	174

There were no loans modified as TDRs during the twelve months ended December 31, 2021 for which there was a subsequent payment default. A payment on a TDR is considered to be in default once it is greater than 30 days past due.










	For the year ended December 31, 2020
(Dollars in thousands)	Total number of loans	Total recorded investment		Provision for loan losses following a subsequent default
Commercial real estate	1	$	203	$	—



Total	1	$	203	$	—

	For the year ended December 31, 2019
(Dollars in thousands)	Total number of loans	Total recorded investment		Provision for loan losses following a subsequent default

Commercial and industrial	1	$	42	$	12


Total	1	$	42	$	12

Risk Category of Loans by Class of Loans

Based on the most recent analysis performed, the risk category of loans by class of loans was as follows:


(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
December 31, 2021
Commercial real estate	$	714,487	$	25,282	$	10,518	$	477	$	750,764
Commercial and industrial	396,210		48,972		14,348		1,000		460,530
Total	$	1,110,697	$	74,254	$	24,866	$	1,477	$	1,211,294
December 31, 2020
Commercial real estate	$	685,690	$	21,570	$	13,045	$	527	$	720,832
Commercial and industrial	637,285		25,727		21,876		616		685,504
Total	$	1,322,975	$	47,297	$	34,921	$	1,143	$	1,406,336

The following presents residential real estate and consumer loans by credit quality:


(Dollars in thousands)	Performing		Nonperforming		Total
December 31, 2021
Residential real estate	$	437,821	$	2,819	$	440,640
Consumer	821		16		837
Total	$	438,642	$	2,835	$	441,477
December 31, 2020
Residential real estate	$	311,485	$	3,991	$	315,476
Consumer	1,710		15		1,725
Total	$	313,195	$	4,006	$	317,201

Total Balance of PCI Loans and Activity in Accretable Yield

The following table reflects the activity in the accretable yield of PCI loans from past acquisitions, which includes total expected cash flows, including interest, in excess of the recorded investment.


	For the year ended December 31,
(Dollars in thousands)		2021		2020		2019
Accretable yield at beginning of period		$	7,097	$	9,141	$	10,947
Additions due to acquisitions		—		35		—
Accretion of income		(1,454)		(1,760)		(2,313)
Adjustments to accretable yield		29		(319)		507

Accretable yield at end of period		$	5,672	$	7,097	$	9,141

Level One Bancorp Inc 10-K