Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2018

Financing Receivable, Allowance for Credit Losses [Line Items]

Summary of composition of loan portfolio

	September 30, 2018					December 31, 2017
(dollars in thousands)		Amount		% of Total		Amount			% of Total
Commercial
Owner occupied RE	$	372,120		23.0	%	$	316,818		22.8	%
Non-owner occupied RE		399,166		24.6	%		312,798		22.6	%
Construction		68,415		4.2	%		51,179		3.7	%
Business		244,348		15.1	%		226,158		16.3	%
Total commercial loans		1,084,049		66.9	%		906,953		65.4	%
Consumer
Real estate		311,271		19.2	%		273,050		19.7	%
Home equity		163,654		10.1	%		156,141		11.3	%
Construction		38,015		2.4	%		28,351		2.0	%
Other		23,212		1.4	%		22,575		1.6	%
Total consumer loans		536,152		33.1	%		480,117		34.6	%
Total gross loans, net of deferred fees		1,620,201		100.0	%		1,387,070		100.0	%
Less—allowance for loan losses		(16,140	)				(15,523	)
Total loans, net	$	1,604,061				$	1,371,547

Summary of loan maturity distribution by type and related interest rate

	September 30, 2018
			After one
	One year		but within	After five
(dollars in thousands)	or less		five years	years	Total
Commercial
Owner occupied RE	$	25,962	164,564	181,594		372,120
Non-owner occupied RE		35,003	213,384	150,779		399,166
Construction		19,455	26,137	22,823		68,415
Business		74,091	124,489	45,768		244,348
Total commercial loans		154,511	528,574	400,964		1,084,049
Consumer
Real estate		37,128	67,254	206,889		311,271
Home equity		11,097	25,556	127,001		163,654
Construction		20,006	887	17,122		38,015
Other		7,961	10,714	4,537		23,212
Total consumer loans		76,192	104,411	355,549		536,152
Total gross loans, net of deferred fees	$	230,703	632,985	756,513		1,620,201
Loans maturing after one year with:
Fixed interest rates					$	1,056,262
Floating interest rates						333,236

	December 31, 2017
			After one
	One year		but within	After five
(dollars in thousands)	or less		five years	years	Total
Commercial
Owner occupied RE	$	24,171	167,425	125,222		316,818
Non-owner occupied RE		39,519	165,764	107,515		312,798
Construction		13,086	12,796	25,297		51,179
Business		73,588	107,584	44,986		226,158
Total commercial loans		150,364	453,569	303,020		906,953
Consumer
Real estate		30,172	61,809	181,069		273,050
Home equity		13,331	25,807	117,003		156,141
Construction		14,943	1,737	11,671		28,351
Other		7,203	11,371	4,001		22,575
Total consumer		65,649	100,724	313,744		480,117
Total gross loan, net of deferred fees	$	216,013	554,293	616,764		1,387,070
Loans maturing after one year with:
Fixed interest rates					$	875,991
Floating interest rates						295,066

Summary of nonperforming assets, including nonaccruing TDRs

(dollars in thousands)	September 30, 2018		December 31, 2017
Commercial
Owner occupied RE	$	-	-
Non-owner occupied RE		1,680	1,581
Construction		-	-
Business		89	910
Consumer
Real estate		1,153	992
Home equity		850	1,144
Construction		-	-
Other		-	1
Nonaccruing troubled debt restructurings		2,194	2,673
Total nonaccrual loans, including nonaccruing TDRs		5,966	7,301
Other real estate owned		117	242
Total nonperforming assets	$	6,083	7,543
Nonperforming assets as a percentage of:
Total assets		0.33%	0.46%
Gross loans		0.38%	0.54%
Total loans over 90 days past due		282	2,027
Loans over 90 days past due and still accruing		-	-
Accruing troubled debt restructurings	$	6,699	5,145

Summary of key information for impaired loans

			September 30, 2018
			Recorded investment
				Impaired loans
	Unpaid			with related	Related
	Principal		Impaired	allowance for	allowance for
(dollars in thousands)	Balance		loans	loan losses	loan losses
Commercial
Owner occupied RE	$	2,843	2,779	452	75
Non-owner occupied RE		6,341	3,046	2,245	742
Construction		-	-	-	-
Business		3,791	2,583	1,924	843
Total commercial		12,975	8,408	4,621	1,660
Consumer
Real estate		2,930	2,831	2,172	1,214
Home equity		1,753	1,265	116	42
Construction		-	-	-	-
Other		161	161	161	19
Total consumer		4,844	4,257	2,449	1,275
Total	$	17,819	12,665	7,070	2,935

			December 31, 2017
			Recorded investment
				Impaired loans
	Unpaid			with related	Related
	Principal		Impaired	allowance for	allowance for
(dollars in thousands)	Balance		loans	loan losses	loan losses
Commercial
Owner occupied RE	$	2,281	2,235	464	179
Non-owner occupied RE		6,827	3,665	2,646	750
Construction		-	-	-	-
Business		3,735	2,764	1,993	1,061
Total commercial		12,843	8,664	5,103	1,990
Consumer
Real estate		2,062	2,037	2,037	1,379
Home equity		2,010	1,575	680	286
Construction		-	-	-	-
Other		171	170	170	22
Total consumer		4,243	3,782	2,887	1,687
Total	$	17,086	12,446	7,990	3,677

Summary of average recorded investment and interest income recognized on impaired loans

	Three months ended			Three months ended
	September 30, 2018			September 30, 2017
	Average		Recognized	Average		Recognized
	recorded		interest	recorded		interest
(dollars in thousands)	investment		income	investment		income
Commercial
Owner occupied RE	$	2,786	41	$	2,182	25
Non-owner occupied RE		3,048	29		4,322	57
Construction		-	-		-	-
Business		2,965	44		3,498	58
Total commercial		8,799	114		10,002	140
Consumer
Real estate		2,850	34		2,361	40
Home equity		1,273	17		196	2
Construction		-	-		-	-
Other		162	1		176	1
Total consumer		4,285	52		2,733	43
Total	$	13,084	166	$	12,735	183

	Nine months ended			Nine months ended				Year ended
	September 30, 2018			September 30, 2017			December 31, 2017
	Average		Recognized	Average		Recognized	Average	Recognized
	recorded		interest	recorded		interest	recorded	interest
(dollars in thousands)	investment		income	investment		income	investment	income
Commercial
Owner occupied RE	$	2,792	103	$	2,198	78	2,255	104
Non-owner occupied RE		3,070	127		4,503	154	4,144	199
Construction		-	-		-	-	-	-
Business		3,031	123		3,585	165	2,823	162
Total commercial		8,893	353		10,286	397	9,222	465
Consumer
Real estate		2,871	114		2,370	73	2,047	69
Home equity		1,283	61		196	4	1,576	97
Construction		-	-		-	-	-	-
Other		164	4		178	4	174	6
Total consumer		4,318	179		2,744	81	3,797	172
Total	$	13,211	532	$	13,030	478	13,019	637

Summary of allowance for loan losses by commercial and consumer portfolio segments

	Three months ended September 30, 2018
	Commercial							Consumer
	Owner		Non-owner
	occupied		occupied					Real	Home
(dollars in thousands)	RE		RE	Construction		Business		Estate	equity		Construction		Other		Total
Balance, beginning of period	$	2,699	3,581	544		3,849		3,446	1,431		282		268		16,100
Provision for loan losses		71	379	(44	)	(17	)	89	(93	)	(7	)	22		400
Loan charge-offs		-	-	-		(536	)	-	-		-		(20	)	(556	)
Loan recoveries		-	25	-		89		1	80		-		1		196
Net loan charge-offs		-	25	-		(447	)	1	80		-		(19	)	(360	)
Balance, end of period	$	2,770	3,985	500		3,385		3,536	1,418		275		271		16,140
Net charge-offs to average loans (annualized)															0.09%
Allowance for loan losses to gross loans															1.00%
Allowance for loan losses to nonperforming loans															270.53%

	Three months ended September 30, 2017
	Commercial								Consumer
	Owner			Non-owner
	occupied			occupied					Real	Home
(dollars in thousands)	RE			RE	Construction		Business		Estate	equity		Construction		Other		Total
Balance, beginning of period	$	2,964		2,981	350		3,857		3,061	1,608		328		295		15,444
Provision for loan losses		(141	)	634	(122	)	213		160	(196	)	(47	)	(1	)	500
Loan charge-offs		-		-	-		(388	)	-	-		-		(11	)	(399	)
Loan recoveries		-		1	-		31		1	-		-		1		34
Net loan charge-offs		-		1	-		(357	)	1	-		-		(10	)	(365	)
Balance, end of period	$	2,823		3,616	228		3,713		3,222	1,412		281		284		15,579
Net charge-offs to average loans (annualized)																0.11%
Allowance for loan losses to gross loans																1.17%
Allowance for loan losses to nonperforming loans																278.05%

	Nine months ended September 30, 2018
	Commercial									Consumer
	Owner			Non-owner
	occupied			occupied						Real		Home
(dollars in thousands)	RE			RE		Construction		Business		Estate		equity		Construction	Other		Total
Balance, beginning of period	$	2,534		3,230		325		3,848		3,495		1,600		210	281		15,523
Provision for loan losses		236		857		175		(31	)	114		(157	)	65	41		1,300
Loan charge-offs		-		(234	)	-		(655	)	(76	)	(140	)	-	(54	)	(1,159	)
Loan recoveries		-		132		-		223		3		115		-	3		476
Net loan charge-offs		-		(102	)	-		(432	)	(73	)	(25	)	-	(51	)	(683	)
Balance, end of period	$	2,770		3,985		500		3,385		3,536		1,418		275	271		16,140
Net charge-offs to average loans (annualized)																	0.06%
	Nine months ended September 30, 2017
	Commercial									Consumer
	Owner			Non-owner
	occupied			occupied						Real		Home
	RE			RE		Construction		Business		Estate		equity		Construction	Other		Total
Balance, beginning of period	$	2,843		2,778		295		4,123		2,780		1,475		252	309		14,855
Provision for loan losses		(20	)	1,257		(67	)	31		359		(75	)	29	(14	)	1,500
Loan charge-offs		-		(433	)	-		(518	)	-		-		-	(11	)	(962	)
Loan recoveries		-		14		-		77		83		12		-	-		186
Net loan charge-offs		-		(419	)	-		(441	)	83		12		-	(11	)	(776	)
Balance, end of period	$	2,823		3,616		228		3,713		3,222		1,412		281	284		15,579
Net charge-offs to average loans (annualized)																	0.08%

Summary of allowance for loan losses and recorded investment in loans by impairment methodology

	September 30, 2018
	Allowance for loan losses				Recorded investment in loans
(dollars in thousands)	Commercial		Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$	1,660	1,275	2,935	8,408	4,257	12,665
Collectively evaluated		8,990	4,225	13,205	1,075,641	531,895	1,607,536
Total	$	10,640	5,500	16,140	1,084,049	536,152	1,620,201
	December 31, 2017
	Allowance for loan losses				Recorded investment in loans
	Commercial		Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$	1,990	1,687	3,677	8,664	3,782	12,446
Collectively evaluated		7,947	3,899	11,846	898,289	476,335	1,374,624
Total	$	9,937	5,586	15,523	906,953	480,117	1,387,070

Commercial [Member]

Financing Receivable, Allowance for Credit Losses [Line Items]

Summary of breakdown of outstanding loans by risk category

		September 30, 2018
		Owner		Non-owner
(dollars in thousands)		occupied RE		occupied RE	Construction	Business	Total
Pass		$	368,266	394,880	68,415	238,167	1,069,728
Special mention			725	121	-	3,033	3,879
Substandard			3,129	4,165	-	3,148	10,442
Doubtful			-	-	-	-	-
		$	372,120	399,166	68,415	244,348	1,084,049
	December 31, 2017
		Owner		Non-owner
		occupied RE		occupied RE	Construction	Business	Total
Pass		$	312,628	306,965	51,179	215,729	886,501
Special mention			1,770	2,082	-	5,540	9,392
Substandard			2,420	3,751	-	4,889	11,060
Doubtful			-	-	-	-	-
		$	316,818	312,798	51,179	226,158	906,953

Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status

		September 30, 2018
		Owner		Non-owner
(dollars in thousands)		occupied RE		occupied RE	Construction	Business	Total
Current		$	372,120	398,973	68,415	244,246	1,083,754
30-59 days past due			-	-	-	13	13
60-89 days past due			-	-	-	-	-
Greater than 90 Days			-	193	-	89	282
		$	372,120	399,166	68,415	244,348	1,084,049
	December 31, 2017
		Owner		Non-owner
		occupied RE		occupied RE	Construction	Business	Total
Current		$	316,818	312,477	51,179	224,861	905,335
30-59 days past due			-	129	-	416	545
60-89 days past due			-	-	-	-	-
Greater than 90 Days			-	192	-	881	1,073
		$	316,818	312,798	51,179	226,158	906,953

Consumer [Member]

Financing Receivable, Allowance for Credit Losses [Line Items]

Summary of breakdown of outstanding loans by risk category

	September 30, 2018
(dollars in thousands)	Real estate		Home equity	Construction	Other	Total
Pass	$	305,496	160,544	38,015	22,999	527,054
Special mention		1,886	526	-	156	2,568
Substandard		3,889	2,584	-	57	6,530
Doubtful		-	-	-	-	-
	$	311,271	163,654	38,015	23,212	536,152
	December 31, 2017
	Real estate		Home equity	Construction	Other	Total
Pass	$	269,422	152,545	28,351	22,367	472,685
Special mention		715	1,025	-	88	1,828
Substandard		2,913	2,571	-	120	5,604
Doubtful		-	-	-	-	-
	$	273,050	156,141	28,351	22,575	480,117

Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status

	September 30, 2018
(dollars in thousands)	Real estate		Home equity	Construction	Other	Total
Current	$	310,665	163,309	38,015	23,082	535,071
30-59 days past due		249	345	-	55	649
60-89 days past due		357	-	-	75	432
Greater than 90 Days		-	-	-	-	-
	$	311,271	163,654	38,015	23,212	536,152
	December 31, 2017
	Real estate		Home equity	Construction	Other	Total
Current	$	271,284	154,821	28,351	22,506	476,962
30-59 days past due		681	325	-	69	1,075
60-89 days past due		131	995	-	-	1,126
Greater than 90 Days		954	-	-	-	954
	$	273,050	156,141	28,351	22,575	480,117