Loans and Allowance (Tables)

9 Months Ended

Sep. 30, 2019

Loans and Allowance [Abstract]

Schedule of Classes of Loans

Classes of loans at September 30, 2019 and December 31, 2018 include:

	September 30,		December 31,
	2019		2018
Real estate
Commercial	$	500,152	$	485,808
Commercial construction and development		57,780		53,310
Consumer closed end first mortgage		415,714		464,539
Consumer open end and junior liens		75,566		77,072
Total real estate loans		1,049,212		1,080,729
Other loans
Consumer loans
Auto		57,861		43,667
Boat/RVs		217,412		216,608
Other consumer loans		7,114		6,893
Commercial and industrial		159,069		149,359
Total other loans		441,456		416,527
Total loans		1,490,668		1,497,256
Undisbursed loans in process		(2,681)		(10,096)
Unamortized deferred loan costs, net		9,035		8,783
Allowance for loan losses		(13,411)		(13,281)
Net loans	$	1,483,611	$	1,482,662

Non-Accrual Loans Segregated by Class of Loans

Nonaccrual loans, segregated by class of loans, as of September 30, 2019 and December 31, 2018 are as follows:

	September 30,		December 31,
	2019		2018
Real estate
Commercial	$	881	$	4,782
Commercial construction and development		-		62
Consumer closed end first mortgage		3,574		2,777
Consumer open end and junior liens		184		273
Consumer loans
Auto		185		88
Boat/RVs		531		470
Other consumer loans		16		46
Commercial and industrial		323		91
Total nonaccrual loans	$	5,694	$	8,589

Age Analysis of Past Due Loans Segregated by Class of Loans

An age analysis of the Company’s past due loans, segregated by class of loans, as of September 30, 2019 and December 31, 2018 are as follows:

	September 30, 2019
													Total Loans
													90 Days
	30‑59		60‑89		90 Days		Total				Total		Past Due
	Days Past		Days Past		or More		Past				Loans		and
	Due		Due		Past Due		Due		Current		Receivable		Accruing
Real estate
Commercial	$	2,798	$	3,662	$	531	$	6,991	$	493,161	$	500,152	$	-
Commercial construction and development		—		-		-		—		57,780		57,780		-
Consumer closed end first mortgage		6,164		1,465		3,046		10,675		405,039		415,714		148
Consumer open end and junior liens		557		116		92		765		74,801		75,566		-
Consumer loans
Auto		447		102		107		656		57,205		57,861		-
Boat/RVs		2,119		567		421		3,107		214,305		217,412		-
Other consumer loans		88		43		13		144		6,970		7,114		-
Commercial and industrial		1,577		220		311		2,108		156,961		159,069		-
Total	$	13,750	$	6,175	$	4,521	$	24,446	$	1,466,222	$	1,490,668	$	148

	December 31, 2018
													Total Loans
													90 Days
	30‑59		60‑89		90 Days		Total				Total		Past Due
	Days Past		Days Past		or More		Past				Loans		and
	Due		Due		Past Due		Due		Current		Receivable		Accruing
Real estate
Commercial	$	1,145	$	536	$	4,377	$	6,058	$	479,750	$	485,808	$	-
Commercial construction and development		4,633		-		61		4,694		48,616		53,310		-
Consumer closed end first mortgage		7,847		1,662		2,696		12,205		452,334		464,539		517
Consumer open end and junior liens		353		114		220		687		76,385		77,072		-
Consumer loans
Auto		257		16		72		345		43,322		43,667		-
Boat/RVs		2,174		594		350		3,118		213,490		216,608		-
Other consumer loans		65		8		41		114		6,779		6,893		-
Commercial and industrial		617		93		91		801		148,558		149,359		-
Total	$	17,091	$	3,023	$	7,908	$	28,022	$	1,469,234	$	1,497,256	$	517

Impaired Loans

The following tables present impaired loans as of and for the three and nine month periods ended September 30, 2019 and 2018 and as of and for the year ended December 31, 2018.

	September 30, 2019
							Average		Average		Interest
			Unpaid				Investment in		Investment		Income		Interest
	Recorded		Principal		Specific		Impaired		in Impaired		Recognized –		Income
	Balance		Balance		Allowance		Loans - QTD		Loans - YTD		QTD		Recognized - YTD
Loans without a specific valuation allowance
Real estate
Commercial	$	5,607	$	5,607	$	-	$	5,609	$	5,962	$	70	$	312
Commercial construction and development		371		371		-		373		459		4		13
Consumer closed end first mortgage		844		844		-		844		918		-		-
Commercial and industrial		48		48		-		49		97		-		2
Loans with a specific valuation allowance
Real estate
Consumer closed end first mortgage		336		336		40		336		252		-		-
Other consumer
Boat and RV		254		254		87		127		64		-		-
Total
Real estate
Commercial	$	5,607	$	5,607	$	-	$	5,609	$	5,962	$	70	$	312
Commercial construction and development	$	371	$	371	$	-	$	373	$	459	$	4	$	13
Consumer closed end first mortgage	$	1,180	$	1,180	$	40	$	1,180	$	1,170	$	-	$	-
Commercial and industrial	$	48	$	48	$	-	$	49	$	97	$	-	$	2
Other consumer
Boat and RV	$	254	$	254	$	87	$	127	$	64	$	-	$	-
Total	$	7,460	$	7,460	$	127	$	7,338	$	7,752	$	74	$	327

	September 30, 2018
							Average		Average		Interest
			Unpaid				Investment in		Investment		Income		Interest
	Recorded		Principal		Specific		Impaired		in Impaired		Recognized –		Income
	Balance		Balance		Allowance		Loans - QTD		Loans - YTD		QTD		Recognized - YTD
Loans without a specific valuation allowance
Real estate
Commercial	$	703	$	703	$	-	$	704	$	772	$	-	$	-
Commercial construction and development		607		607		-		623		653		7		21
Consumer closed end first mortgage		1,140		1,140		-		1,105		1,291		-		-
Commercial and industrial		138		138		-		141		177		1		4
Loans with a specific valuation allowance
Real estate
Commercial		214		214		100		214		214		-		-
Total
Real estate
Commercial	$	917	$	917	$	100	$	918	$	986	$	-	$	-
Commercial construction and development	$	607	$	607	$	-	$	623	$	653	$	7	$	21
Consumer closed end first mortgage	$	1,140	$	1,140	$	-	$	1,105	$	1,291	$	-	$	-
Commercial and industrial	$	138	$	138	$	-	$	141	$	177	$	1	$	4
Total	$	2,802	$	2,802	$	100	$	2,787	$	3,107	$	8	$	25

	December 31, 2018
							Average
			Unpaid				Investment		Interest
	Recorded		Principal		Specific		in Impaired		Income
	Balance		Balance		Allowance		Loans		Recognized
Loans without a specific valuation allowance
Real estate
Commercial	$	6,324	$	6,377	$	-	$	1,882	$	-
Commercial construction and development		549		549		-		633		27
Consumer closed end first mortgage		1,137		1,137		-		1,260		-
Commercial and industrial		131		131		-		167		5
Loans with a specific valuation allowance
Real estate
Commercial		174		214		100		206		-
Total
Real estate
Commercial	$	6,498	$	6,591	$	100	$	2,088	$	-
Commercial construction and development	$	549	$	549	$	-	$	633	$	27
Consumer closed end first mortgage	$	1,137	$	1,137	$	-	$	1,260	$	-
Commercial and industrial	$	131	$	131	$	-	$	167	$	5
Total	$	8,315	$	8,408	$	100	$	4,148	$	32

Commercial and Retail Credit Exposure Credit Risk Profile by Internal Rating

	September 30, 2019
	Commercial								Consumer
			Special
	Pass		Mention		Substandard		Doubtful		Pass		Substandard		Total
Real estate
Commercial	$	473,342	$	17,722	$	9,088	$	-					$	500,152
Commercial construction and development		49,082		8,328		370		-						57,780
Consumer closed end first mortgage									$	411,029	$	4,685		415,714
Consumer open end and junior liens										75,324		242		75,566
Other loans
Consumer loans
Auto										57,658		203		57,861
Boat/RVs										216,616		796		217,412
Other consumer loans										7,097		17		7,114
Commercial and industrial		152,406		2,178		4,485		-						159,069
	$	674,830	$	28,228	$	13,943	$	-	$	767,724	$	5,943	$	1,490,668

	December 31, 2018
	Commercial								Consumer
			Special
	Pass		Mention		Substandard		Doubtful		Pass		Substandard		Total
Real estate
Commercial	$	465,888	$	9,501	$	10,419	$	-					$	485,808
Commercial construction and development		46,649		6,112		549		-						53,310
Consumer closed end first mortgage									$	459,771	$	4,768		464,539
Consumer open end and junior liens										76,752		320		77,072
Other loans
Consumer loans
Auto										43,559		108		43,667
Boat/RVs										215,830		778		216,608
Other consumer loans										6,835		58		6,893
Commercial and industrial		141,705		4,009		3,645		-						149,359
	$	654,242	$	19,622	$	14,613	$	-	$	802,747	$	6,032	$	1,497,256

Activity in Allowance for Loan Losses by Portfolio Segment

The following tables detail activity in the allowance for loan losses by portfolio segment for the three and nine month periods ended September 30, 2019 and 2018, respectively. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other segments.

	Three Months Ended September 30, 2019
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of period	$	8,540	$	1,363	$	3,532	$	13,435
Provision charged (credited) to expense		134		36		255		425
Losses charged off		(69)		(42)		(388)		(499)
Recoveries		4		1		45		50
Balance, end of period	$	8,609	$	1,358	$	3,444	$	13,411

	Three Months Ended September 30, 2018
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of period	$	8,043	$	1,606	$	3,080	$	12,729
Provision charged (credited) to expense		133		59		378		570
Losses charged off		(25)		(67)		(248)		(340)
Recoveries		-		1		49		50
Balance, end of period	$	8,151	$	1,599	$	3,259	$	13,009

	Nine Months Ended September 30, 2019
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	8,426	$	1,548	$	3,307	$	13,281
Provision charged (credited) to expense		332		(78)		1,121		1,375
Losses charged off		(167)		(115)		(1,134)		(1,416)
Recoveries		18		3		150		171
Balance, end of period	$	8,609	$	1,358	$	3,444	$	13,411

	Nine Months Ended September 30, 2018
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	7,704	$	1,761	$	2,922	$	12,387
Provision charged (credited) to expense		600		(28)		948		1,520
Losses charged off		(165)		(144)		(771)		(1,080)
Recoveries		12		10		160		182
Balance, end of period	$	8,151	$	1,599	$	3,259	$	13,009

The following tables provide a breakdown of the allowance for loan losses and loan portfolio balances by segment as of September 30, 2019 and 2018, and December 31, 2018.

	September 30, 2019
	Commercial		Mortgage		Consumer		Total
Allowance balances
Individually evaluated for impairment	$	-	$	40	$	87	$	127
Collectively evaluated for impairment		8,609		1,318		3,357		13,284
Total allowance for loan losses	$	8,609	$	1,358	$	3,444	$	13,411
Loan balances
Individually evaluated for impairment	$	6,026	$	1,180	$	254	$	7,460
Collectively evaluated for impairment		710,975		414,534		357,699		1,483,208
Gross loans	$	717,001	$	415,714	$	357,953	$	1,490,668

	September 30, 2018
	Commercial		Mortgage		Consumer		Total
Allowance balances
Individually evaluated for impairment	$	100	$	-	$	-	$	100
Collectively evaluated for impairment		8,051		1,599		3,259		12,909
Loans acquired with deteriorated credit quality		-		-		-		-
Total allowance for loan losses	$	8,151	$	1,599	$	3,259	$	13,009
Loan balances
Individually evaluated for impairment	$	1,662	$	1,140	$	-	$	2,802
Collectively evaluated for impairment		676,767		469,278		329,275		1,475,320
Loans acquired with deteriorated credit quality		-		-		-		-
Gross loans	$	678,429	$	470,418	$	329,275	$	1,478,122

	December 31, 2018
	Commercial		Mortgage		Consumer		Total
Allowance balances
Individually evaluated for impairment	$	100	$	-	$	-	$	100
Collectively evaluated for impairment		8,326		1,548		3,307		13,181
Loans acquired with deteriorated credit quality		-		-		-		-
Total allowance for loan losses	$	8,426	$	1,548	$	3,307	$	13,281
Loan balances
Individually evaluated for impairment	$	7,178	$	1,137	$	-	$	8,315
Collectively evaluated for impairment		681,299		463,402		344,240		1,488,941
Loans acquired with deteriorated credit quality		-		-		-		-
Gross loans	$	688,477	$	464,539	$	344,240	$	1,497,256

Troubled Debts Restructured

The following tables describe troubled debts restructured during the three and nine month periods ended September 30, 2019 and 2018:

	Three Months Ended
	September 30, 2019					September 30, 2018
	No. of	Pre-Modification		Post-Modification		No. of	Pre-Modification		Post-Modification
	Loans	Recorded Balance		Recorded Balance		Loans	Recorded Balance		Recorded Balance
Real estate
Consumer closed end first mortgage	1	$	80	$	81	3	$	99	$	101
Consumer open end and junior liens	1		26		26	-		-		-
Other loans
Consumer Loans
Boat/RVs	2		271		271	2		39		36
Other	-		-		-	1		4		4
Commercial and industrial	1		49		49	-		-		-

	Nine Months Ended
	September 30, 2019					September 30, 2018
	No. of	Pre-Modification		Post-Modification		No. of	Pre-Modification		Post-Modification
	Loans	Recorded Balance		Recorded Balance		Loans	Recorded Balance		Recorded Balance
Real estate
Consumer closed end first mortgage	5		131		134	7		286		288
Consumer open end and junior liens	2		33		33	4		82		94
Other loans
Consumer loans
Auto	1		17		17	1		10		10
Boat/RVs	4		316		316	3		58		55
Other	-		-		-	1		4		4
Commercial and industrial	1		49		49	1		61		61

Newly Restructured Loans by Types

Newly restructured loans by type for the three and nine months ended September 30, 2019 and 2018 are as follows:

	Three Months Ended September 30, 2019
							Total
	Rate		Term		Combination		Modification
Real estate
Consumer closed end first mortgage	$	-	$	-	$	81	$	81
Consumer open end and junior liens		-		-		26		26
Other loans
Consumer loans
Boat/RVs		-		8		263		271
Commercial and industrial		-		49		-		49

	Three Months Ended September 30, 2018
							Total
	Rate		Term		Combination		Modification
Real estate
Consumer closed end first mortgage	$	-	$	38	$	63	$	101
Other loans
Consumer loans
Boat/RVs		-		15		21		36
Other		-		4		-		4

	Nine Months Ended September 30, 2019
							Total
	Rate		Term		Combination		Modification
Real estate
Consumer closed end first mortgage	$	-	$	-	$	134	$	134
Consumer open end and junior liens		-		7		26		33
Other loans
Consumer loans
Auto		-		-		17		17
Boat/RVs		-		16		300		316
Commercial and industrial		-		49		-		49

	Nine Months Ended September 30, 2018
							Total
	Rate		Term		Combination		Modification
Real Estate
Consumer closed end first mortgage	$	-	$	38	$	250	$	288
Consumer open end and junior liens		-		35		59		94
Other loans
Consumer loans
Auto		-		10		-		10
Boat/RVs		-		34		21		55
Other		-		4		-		4
Commercial and industrial		-		61		-		61

Troubled Debts Restructured Defaulted

The following table describes troubled debt restructurings that have subsequently defaulted during the three and nine months ended September 30, 2019 and 2018. There were no defaults on loans modified as troubled debt restructurings made in the three months ended September 30, 2019 and 2018.  A default is defined as any loans that become 90 days past due.

	Three Months Ended
	September 30, 2019			September 30, 2018
		Post-Modification Outstanding			Post-Modification Outstanding
	No. of Loans	Recorded Balance		No. of Loans	Recorded Balance
Real Estate
Consumer closed end first mortgage	-	$	-	1	$	48
Consumer open end and junior liens	-		-	1		5
Other loans
Consumer loans
Boat/RV	1		36	-		-

	Nine Months Ended
	September 30, 2019			September 30, 2018
		Post-Modification Outstanding			Post-Modification Outstanding
	No. of Loans	Recorded Balance		No. of Loans	Recorded Balance
Real Estate
Consumer closed end first mortgage	-	$	-	1	$	48
Consumer open end and junior liens	-		-	1		5
Other Loans
Consumer Loans
Boat/RV	2		299	-		-