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Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2018
Provision for Loan and Lease Losses [Abstract]  
Allowance for Credit Losses on Financing Receivables [Table Text Block]
The following tables summarize the rollforward of the allowance for loan losses by portfolio segment for the three and nine month periods ending September 30, 2018 and 2017 (in thousands).
 
 
 
Three months ended
 September 30, 2018
 
 
 
Balance at
June 30,
2018
 
 
Charge-
Offs
 
 
Recoveries
 
 
Provision
(Credit)
 
 
Balance at
September 30,
2018
Commercial
 
 
$
3,566
 
 
 
$
—
 
 
 
$
17
 
 
 
$
175
 
 
 
$
3,758
 
Commercial loans secured by non-owner occupied real estate
 
 
 
3,686
 
 
 
 
—
 
 
 
 
12
 
 
 
 
(310
)
 
 
 
3,388
 
Real estate – residential mortgage
 
 
 
1,253
 
 
 
 
(123
)
 
 
 
34
 
 
 
 
75
 
 
 
 
1,239
 
Consumer
 
 
 
125
 
 
 
 
(29
)
 
 
 
7
 
 
 
 
25
 
 
 
 
128
 
Allocation for general risk
 
 
 
891
 
 
 
 
—
 
 
 
 
—
 
 
 
 
35
 
 
 
 
926
 
Total
 
 
$
9,521
 
 
 
$
(152
)
 
 
$
70
 
 
 
$
—
 
 
 
$
9,439
 
 
 
 
 
Three months ended September 30, 2017
 
 
 
Balance at
June 30,
2017
 
 
Charge-
Offs
 
 
Recoveries
 
 
Provision
(Credit)
 
 
Balance at
September 30,
2017
Commercial
 
 
$
3,824
 
 
 
$
(228
)
 
 
$
9
 
 
 
$
562
 
 
 
$
4,167
 
Commercial loans secured by non-owner occupied real estate
 
 
 
4,488
 
 
 
 
—
 
 
 
 
20
 
 
 
 
(662
)
 
 
 
3,846
 
Real estate – residential mortgage
 
 
 
1,150
 
 
 
 
(109
)
 
 
 
53
 
 
 
 
70
 
 
 
 
1,164
 
Consumer
 
 
 
139
 
 
 
 
(42
)
 
 
 
52
 
 
 
 
(10
)
 
 
 
139
 
Allocation for general risk
 
 
 
790
 
 
 
 
—
 
 
 
 
—
 
 
 
 
240
 
 
 
 
1,030
 
Total
 
 
$
10,391
 
 
 
$
(379
)
 
 
$
134
 
 
 
$
200
 
 
 
$
10,346
 
 
 
 
 
Nine months ended September 30, 2018
 
 
 
Balance at
December 31,
2017
 
 
Charge-
Offs
 
 
Recoveries
 
 
Provision
(Credit)
 
 
Balance at
September 30,
2018
Commercial
 
 
$
4,298
 
 
 
$
(574
)
 
 
$
29
 
 
 
$
5
 
 
 
$
3,758
 
Commercial loans secured by non-owner occupied real estate
 
 
 
3,666
 
 
 
 
—
 
 
 
 
38
 
 
 
 
(316
)
 
 
 
3,388
 
Real estate – residential mortgage
 
 
 
1,102
 
 
 
 
(340
)
 
 
 
111
 
 
 
 
366
 
 
 
 
1,239
 
Consumer
 
 
 
128
 
 
 
 
(181
)
 
 
 
42
 
 
 
 
139
 
 
 
 
128
 
Allocation for general risk
 
 
 
1,020
 
 
 
 
—
 
 
 
 
—
 
 
 
 
(94
)
 
 
 
926
 
Total
 
 
$
10,214
 
 
 
$
(1,095
)
 
 
$
220
 
 
 
$
100
 
 
 
$
9,439
 
 
 
 
 
Nine months ended September 30, 2017
 
 
 
Balance at
December 31,
2016
 
 
Charge-
Offs
 
 
Recoveries
 
 
Provision
(Credit)
 
 
Balance at
September 30,
2017
Commercial
 
 
$
4,041
 
 
 
$
(228
)
 
 
$
22
 
 
 
$
332
 
 
 
$
4,167
 
Commercial loans secured by non-owner occupied real estate
 
 
 
3,584
 
 
 
 
(14
)
 
 
 
44
 
 
 
 
232
 
 
 
 
3,846
 
Real estate – residential mortgage
 
 
 
1,169
 
 
 
 
(263
)
 
 
 
128
 
 
 
 
130
 
 
 
 
1,164
 
Consumer
 
 
 
151
 
 
 
 
(138
)
 
 
 
113
 
 
 
 
13
 
 
 
 
139
 
Allocation for general risk
 
 
 
987
 
 
 
 
—
 
 
 
 
—
 
 
 
 
43
 
 
 
 
1,030
 
Total
 
 
$
9,932
 
 
 
$
(643
)
 
 
$
307
 
 
 
$
750
 
 
 
$
10,346
 
Schedule of Primary Segments of Loan Portfolio [Table Text Block]
The following tables summarize the loan portfolio and allowance for loan loss by the primary segments of the loan portfolio (in thousands).
 
 
 
At September 30, 2018
 
 
 
Commercial
 
 
Commercial Loans
Secured by Non-Owner
Occupied Real Estate
 
 
Real Estate-
Residential
Mortgage
 
 
Consumer
 
 
Allocation for
General Risk
 
 
Total
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
 
$
—
 
 
 
$
11
 
 
 
$
—
 
 
 
$
—
 
 
 
 
 
 
 
 
$
11
 
Collectively evaluated for impairment
 
 
 
261,116
 
 
 
 
363,521
 
 
 
 
240,591
 
 
 
 
18,094
 
 
 
 
 
 
 
 
 
883,322
 
Total loans
 
 
$
261,116
 
 
 
$
363,532
 
 
 
$
240,591
 
 
 
$
18,094
 
 
 
 
 
 
 
 
$
883,333
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Specific reserve allocation
 
 
$
—
 
 
 
$
—
 
 
 
$
—
 
 
 
$
—
 
 
 
$
—
 
 
 
$
—
 
General reserve allocation
 
 
 
3,758
 
 
 
 
3,388
 
 
 
 
1,239
 
 
 
 
128
 
 
 
 
926
 
 
 
 
9,439
 
Total allowance for loan losses
 
 
$
3,758
 
 
 
$
3,388
 
 
 
$
1,239
 
 
 
$
128
 
 
 
$
926
 
 
 
$
9,439
 
 
 
 
 
At December 31, 2017
 
 
 
Commercial
 
 
Commercial Loans
Secured by Non-Owner
Occupied Real Estate
 
 
Real Estate-
Residential
Mortgage
 
 
Consumer
 
 
Allocation for
General Risk
 
 
Total
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
 
$
1,213
 
 
 
$
547
 
 
 
$
—
 
 
 
$
—
 
 
 
 
 
 
 
 
$
1,760
 
Collectively evaluated for impairment
 
 
 
247,914
 
 
 
 
373,298
 
 
 
 
247,278
 
 
 
 
19,383
 
 
 
 
 
 
 
 
 
887,873
 
Total loans
 
 
$
249,127
 
 
 
$
373,845
 
 
 
$
247,278
 
 
 
$
19,383
 
 
 
 
 
 
 
 
$
889,633
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Specific reserve allocation
 
 
$
909
 
 
 
$
—
 
 
 
$
—
 
 
 
$
—
 
 
 
$
—
 
 
 
$
909
 
General reserve allocation
 
 
 
3,389
 
 
 
 
3,666
 
 
 
 
1,102
 
 
 
 
128
 
 
 
 
1,020
 
 
 
 
9,305
 
Total allowance for loan losses
 
 
$
4,298
 
 
 
$
3,666
 
 
 
$
1,102
 
 
 
$
128
 
 
 
$
1,020
 
 
 
$
10,214
 
Impaired Financing Receivables [Table Text Block]
The following tables present impaired loans by portfolio segment, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary (in thousands).
 
 
 
September 30, 2018
 
 
 
Impaired Loans with
Specific Allowance
 
 
Impaired
Loans with no
Specific
Allowance
 
 
Total Impaired Loans
 
 
 
Recorded
I
nvestment
 
 
Related
Allowance
 
 
Recorded
Investment
 
 
Recorded
Investment
 
 
Unpaid
Principal
Balance
Commercial
 
 
$
—
 
 
 
$
—
 
 
 
$
—
 
 
 
$
—
 
 
 
$
—
 
Commercial loans secured by non-owner occupied real estate
 
 
 
—
 
 
 
 
—
 
 
 
 
11
 
 
 
 
11
 
 
 
 
33
 
Total impaired loans
 
 
$
—
 
 
 
$
—
 
 
 
$
11
 
 
 
$
11
 
 
 
$
33
 
 
 
 
 
December 31, 2017
 
 
 
Impaired Loans with
Specific Allowance
 
 
Impaired
Loans with no
Specific
Allowance
 
 
Total Impaired Loans
 
 
 
Recorded
Investment
 
 
Related
Allowance
 
 
Recorded
Investment
 
 
Recorded
Investment
 
 
Unpaid
Principal
Balance
Commercial
 
 
$
1,202
 
 
 
$
909
 
 
 
$
11
 
 
 
$
1,213
 
 
 
$
1,215
 
Commercial loans secured by non-owner occupied real estate
 
 
 
—
 
 
 
 
—
 
 
 
 
547
 
 
 
 
547
 
 
 
 
600
 
Total impaired loans
 
 
$
1,202
 
 
 
$
909
 
 
 
$
558
 
 
 
$
1,760
 
 
 
$
1,815
 
Schedule of Average Recorded Investment in Impaired Loans and Related Interest Income Recognized [Table Text Block]
The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands).
 
 
 
Three months ended
September 30,
 
 
Nine months ended
September 30,
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
Average loan balance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
$
—
 
 
 
$
1,302
 
 
 
$
532
 
 
 
$
896
 
Commercial loans secured by non-owner occupied real estate
 
 
 
12
 
 
 
 
1,316
 
 
 
 
146
 
 
 
 
745
 
Average investment in impaired loans
 
 
$
12
 
 
 
$
2,618
 
 
 
$
678
 
 
 
$
1,641
 
Interest income recognized:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
$
—
 
 
 
$
7
 
 
 
$
—
 
 
 
$
10
 
Commercial loans secured by non-owner occupied real estate
 
 
 
—
 
 
 
 
—
 
 
 
 
—
 
 
 
 
—
 
Interest income recognized on a cash basis on impaired loans
 
 
$
—
 
 
 
$
7
 
 
 
$
—
 
 
 
$
10
 
Financing Receivable Credit Quality Indicators [Table Text Block]
The following table presents the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system (in thousands).
 
 
 
September 30, 2018
 
 
 
Pass
 
 
Special
Mention
 
 
Substandard
 
 
Doubtful
 
 
Total
Commercial and industrial
 
 
$
155,787
 
 
 
$
7,985
 
 
 
$
1,750
 
 
 
$
—
 
 
 
$
165,522
 
Commercial loans secured by owner occupied real estate
 
 
 
90,629
 
 
 
 
3,836
 
 
 
 
1,129
 
 
 
 
—
 
 
 
 
95,594
 
Commercial loans secured by non-owner occupied real estate
 
 
 
356,880
 
 
 
 
6,373
 
 
 
 
268
 
 
 
 
11
 
 
 
 
363,532
 
Total
 
 
$
603,296
 
 
 
$
18,194
 
 
 
$
3,147
 
 
 
$
11
 
 
 
$
624,648
 
 
 
 
 
December 31, 2017
 
 
 
Pass
 
 
Special
Mention
 
 
Substandard
 
 
Doubtful
 
 
Total
Commercial and industrial
 
 
$
156,448
 
 
 
$
500
 
 
 
$
2,000
 
 
 
$
244
 
 
 
$
159,192
 
Commercial loans secured by owner occupied real estate
 
 
 
87,215
 
 
 
 
1,675
 
 
 
 
759
 
 
 
 
286
 
 
 
 
89,935
 
Commercial loans secured by non-owner occupied real estate
 
 
 
362,805
 
 
 
 
10,153
 
 
 
 
874
 
 
 
 
13
 
 
 
 
373,845
 
Total
 
 
$
606,468
 
 
 
$
12,328
 
 
 
$
3,633
 
 
 
$
543
 
 
 
$
622,972
 
Schedule of Financing Receivable Performing and Nonperforming [Table Text Block]
It is generally the policy of the Bank that the outstanding balance of any residential mortgage loan that exceeds 90-days past due as to principal and/or interest is transferred to non-accrual status and an evaluation is completed to determine the fair value of the collateral less selling costs, unless the balance is minor. A charge down is recorded for any deficiency balance determined from the collateral evaluation. The remaining non-accrual balance is reported as impaired with no specific allowance. It is generally the policy of the bank that the outstanding balance of any consumer loan that exceeds 90-days past due as to principal and/or interest is charged off. The following tables present the performing and non-performing outstanding balances of the residential and consumer portfolio classes (in thousands).
 
 
 
September 30, 2018
 
 
 
Performing
 
 
Non-Performing
Real estate – residential mortgage
 
 
$
239,698
 
 
 
$
893
 
Consumer
 
 
 
18,094
 
 
 
 
—
 
Total
 
 
$
257,792
 
 
 
$
893
 
 
 
 
 
December 31, 2017
 
 
 
Performing
 
 
Non-Performing
Real estate – residential mortgage
 
 
$
246,021
 
 
 
$
1,257
 
Consumer
 
 
 
19,383
 
 
 
 
—
 
Total
 
 
$
265,404
 
 
 
$
1,257
 
Past Due Financing Receivables [Table Text Block]
 
Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans (in thousands).
 
 
 
 
September 30, 2018
 
 
 
Current
 
 
30 – 59
Days
Past Due
 
 
60 – 89
Days Past
Due
 
 
90 Days
Past Due
 
 
Total
Past Due
 
 
Total
Loans
 
 
90 Days
Past Due
and Still
Accruing
Commercial and industrial
 
 
$
159,451
 
 
 
$
6,071
 
 
 
$
—
 
 
 
$
—
 
 
 
$
6,071
 
 
 
$
165,522
 
 
 
$
—
 
Commercial loans secured by owner occupied real estate
 
 
 
95,594
 
 
 
 
—
 
 
 
 
—
 
 
 
 
—
 
 
 
 
—
 
 
 
 
95,594
 
 
 
 
—
 
Commercial loans secured by non-owner occupied real estate
 
 
 
363,532
 
 
 
 
—
 
 
 
 
—
 
 
 
 
—
 
 
 
 
—
 
 
 
 
363,532
 
 
 
 
—
 
Real estate – residential mortgage
 
 
 
236,331
 
 
 
 
2,505
 
 
 
 
1,061
 
 
 
 
694
 
 
 
 
4,260
 
 
 
 
240,591
 
 
 
 
—
 
Consumer
 
 
 
18,011
 
 
 
 
56
 
 
 
 
27
 
 
 
 
—
 
 
 
 
83
 
 
 
 
18,094
 
 
 
 
—
 
Total
 
 
$
872,919
 
 
 
$
8,632
 
 
 
$
1,088
 
 
 
$
694
 
 
 
$
10,414
 
 
 
$
883,333
 
 
 
$
—
 
 
 
 
 
December 31, 2017
 
 
 
Current
 
 
30 – 59
Days
Past Due
 
 
60 – 89
Days
Past Due
 
 
90 Days
Past Due
 
 
Total
Past Due
 
 
Total
Loans
 
 
90 Days
Past Due
and Still
Accruing
Commercial and industrial
 
 
$
159,181
 
 
 
$
—
 
 
 
$
—
 
 
 
$
11
 
 
 
$
11
 
 
 
$
159,192
 
 
 
$
—
 
Commercial loans secured by owner occupied real estate
 
 
 
89,649
 
 
 
 
—
 
 
 
 
—
 
 
 
 
286
 
 
 
 
286
 
 
 
 
89,935
 
 
 
 
—
 
Commercial loans secured by non-owner occupied real estate
 
 
 
368,073
 
 
 
 
5,238
 
 
 
 
534
 
 
 
 
—
 
 
 
 
5,772
 
 
 
 
373,845
 
 
 
 
—
 
Real estate – residential mortgage
 
 
 
243,393
 
 
 
 
2,373
 
 
 
 
671
 
 
 
 
841
 
 
 
 
3,885
 
 
 
 
247,278
 
 
 
 
—
 
Consumer
 
 
 
19,262
 
 
 
 
76
 
 
 
 
45
 
 
 
 
—
 
 
 
 
121
 
 
 
 
19,383
 
 
 
 
—
 
Total
 
 
$
879,558
 
 
 
$
7,687
 
 
 
$
1,250
 
 
 
$
1,138
 
 
 
$
10,075
 
 
 
$
889,633
 
 
 
$
—