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Loans (Tables)
6 Months Ended
Jun. 30, 2020
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Schedule of classes of loan portfolio summarized by the aggregate risk rating
The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard, and doubtful within the Corporation’s internal risk rating system as of June 30, 2020, and December 31, 2019:
 
In thousands
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
JUNE 30, 2020
 
 

 
 

 
 

 
 

 
 

Originated Loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
286,900

 
$
11,060

 
$
727

 
$

 
$
298,687

Commercial real estate
 
428,746

 
31,330

 
10,480

 

 
470,556

Commercial real estate construction
 
26,712

 
1,686

 

 

 
28,398

Residential mortgage
 
361,315

 
4,699

 
180

 

 
366,194

Home equity lines of credit
 
86,972

 
449

 
44

 

 
87,465

Consumer
 
12,131

 

 

 

 
12,131

Total Originated Loans
 
1,202,776

 
49,224

 
11,431

 

 
1,263,431

Acquired Loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
47,951

 
2,208

 
1,405

 

 
51,564

Commercial real estate
 
279,651

 
13,359

 
4,131

 

 
297,141

Commercial real estate construction
 
12,191

 
760

 

 

 
12,951

Residential mortgage
 
74,147

 
3,632

 
2,172

 

 
79,951

Home equity lines of credit
 
26,468

 
62

 
407

 

 
26,937

Consumer
 
1,588

 

 

 

 
1,588

Total Acquired Loans
 
441,996

 
20,021

 
8,115

 

 
470,132

Total Loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
334,851

 
13,268

 
2,132

 

 
350,251

Commercial real estate
 
708,397

 
44,689

 
14,611

 

 
767,697

Commercial real estate construction
 
38,903

 
2,446

 

 

 
41,349

Residential mortgage
 
435,462

 
8,331

 
2,352

 

 
446,145

Home equity lines of credit
 
113,440

 
511

 
451

 

 
114,402

Consumer
 
13,719

 

 

 

 
13,719

Total Loans
 
$
1,644,772

 
$
69,245

 
$
19,546

 
$

 
$
1,733,563


In thousands
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
DECEMBER 31, 2019
 
 

 
 

 
 

 
 

 
 

Originated Loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
132,791

 
$
12,249

 
$
716

 
$

 
$
145,756

Commercial real estate
 
414,077

 
28,264

 
9,595

 

 
451,936

Commercial real estate construction
 
22,905

 
1,272

 

 

 
24,177

Residential mortgage
 
364,814

 
6,279

 
251

 

 
371,344

Home equity lines of credit
 
92,372

 
627

 
83

 

 
93,082

Consumer
 
13,331

 

 

 

 
13,331

Total Originated Loans
 
1,040,290

 
48,691

 
10,645

 

 
1,099,626

Acquired Loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
3,007

 
374

 
178

 

 
3,559

Commercial real estate
 
100,199

 
11,537

 
3,376

 

 
115,112

Commercial real estate construction
 
1,542

 
697

 

 

 
2,239

Residential mortgage
 
33,349

 
2,089

 
1,555

 

 
36,993

Home equity lines of credit
 
14,603

 
45

 
317

 

 
14,965

Consumer
 
107

 

 

 

 
107

Total Acquired Loans
 
152,807

 
14,742

 
5,426

 

 
172,975

Total Loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
135,798

 
12,623

 
894

 

 
149,315

Commercial real estate
 
514,276

 
39,801

 
12,971

 

 
567,048

Commercial real estate construction
 
24,447

 
1,969

 

 

 
26,416

Residential mortgage
 
398,163

 
8,368

 
1,806

 

 
408,337

Home equity lines of credit
 
106,975

 
672

 
400

 

 
108,047

Consumer
 
13,438

 

 

 

 
13,438

Total Loans
 
$
1,193,097

 
$
63,433

 
$
16,071

 
$

 
$
1,272,601


Schedule of changes In accretable yields of acquired loans
The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table.
In thousands
 
Six Months Ended June 30, 2020
 
Six Months Ended June 30, 2019
Balance at beginning of period
 
$
642

 
$
891

Acquisitions of impaired loans
 
354

 

Reclassification from non-accretable differences
 

 
393

Accretion to loan interest income
 
(287
)
 
(355
)
Balance at end of period
 
$
709

 
$
929


Summary of information relative to impaired loans by loan portfolio class
The following table summarizes information relative to impaired loans by loan portfolio class as of June 30, 2020, and December 31, 2019:
 
 
 
Impaired Loans with  Allowance
 
Impaired Loans with
No Allowance
In thousands
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Recorded
Investment
 
Unpaid
Principal
Balance
JUNE 30, 2020
 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
52

 
$
52

 
$
29

 
$

 
$

Commercial real estate
 
1,673

 
1,673

 
113

 
6,798

 
6,798

Commercial real estate construction
 

 

 

 

 

Residential mortgage
 

 

 

 
101

 
101

Home equity lines of credit
 

 

 

 
44

 
44

 
 
$
1,725

 
$
1,725

 
$
142

 
$
6,943

 
$
6,943

 
 
 
 
 
 
 
 
 
 
 
DECEMBER 31, 2019
 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
65

 
$
65

 
$
42

 
$

 
$

Commercial real estate
 

 

 

 
7,383

 
7,383

Commercial real estate construction
 

 

 

 

 

Residential mortgage
 

 

 

 
171

 
171

Home equity lines of credit
 

 

 

 
83

 
83

 
 
$
65

 
$
65

 
$
42

 
$
7,637

 
$
7,637


Summary of information in regards to the average of impaired loans and related income by loan portfolio class
The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the three months ended June 30, 2020 and 2019:
 
 
 
Impaired Loans with
Allowance
 
Impaired Loans with
No Allowance
In thousands
 
Average
Recorded
Investment
 
Interest
Income
 
Average
Recorded
Investment
 
Interest
Income
June 30, 2020
 
 

 
 

 
 

 
 

Commercial and industrial
 
$
55

 
$

 
$

 
$

Commercial real estate
 
1,367

 

 
7,047

 
45

Commercial real estate construction
 

 

 

 

Residential mortgage
 

 

 
101

 

Home equity lines of credit
 

 

 
56

 

 
 
$
1,422

 
$

 
$
7,204

 
$
45

 
 
 
 
 
 
 
 
 
June 30, 2019
 
 

 
 

 
 

 
 

Commercial and industrial
 
$

 
$

 
$

 
$

Commercial real estate
 

 

 
6,201

 
261

Commercial real estate construction
 

 

 

 

Residential mortgage
 

 

 
594

 

Home equity lines of credit
 
74

 

 

 

 
 
$
74

 
$

 
$
6,795

 
$
261


    
The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the six months ended June 30, 2020 and 2019:
 
 
 
Impaired Loans with
Allowance
 
Impaired Loans with
No Allowance
In thousands
 
Average
Recorded
Investment
 
Interest
Income
 
Average
Recorded
Investment
 
Interest
Income
June 30, 2020
 
 

 
 

 
 

 
 

Commercial and industrial
 
$
59

 
$

 
$

 
$

Commercial real estate
 
911

 

 
7,159

 
115

Commercial real estate construction
 

 

 

 

Residential mortgage
 

 

 
124

 
7

Home equity lines of credit
 

 

 
65

 

 
 
$
970

 
$

 
$
7,348

 
$
122

 
 
 
 
 
 
 
 
 
June 30, 2019
 
 

 
 

 
 

 
 

Commercial and industrial
 
$

 
$

 
$

 
$

Commercial real estate
 

 

 
6,388

 
318

Commercial real estate construction
 

 

 

 

Residential mortgage
 

 

 
575

 

Home equity lines of credit
 

 

 

 

 
 
$

 
$

 
$
6,963

 
$
318


Schedule of nonaccrual loans by loan portfolio class
The following table presents nonaccrual loans by loan portfolio class as of June 30, 2020, and December 31, 2019, the table below excludes $7.5 million in purchase credit impaired loans, net of unamortized fair value adjustments: 

In thousands
 
June 30, 2020
 
December 31, 2019
Commercial and industrial
 
$
52

 
$
65

Commercial real estate
 
4,738

 
3,600

Commercial real estate construction
 

 

Residential mortgage
 
101

 
171

Home equity lines of credit
 
44

 
83

 
 
$
4,935

 
$
3,919


Schedule of classes of loan portfolio summarized by the past due status
The following table presents the classes of the loan portfolio summarized by the past due status as of June 30, 2020, and December 31, 2019:

In thousands
 
30-59 Days Past Due
 
60-89 Days
Past Due
 
>90 Days
Past Due
 
Total Past
Due
 
Current
 
Total Loans
Receivable
 
Loans
Receivable
>90 Days
and
Accruing
JUNE 30, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Originated Loans
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
15

 
$
40

 
$
4

 
$
59

 
$
298,628

 
$
298,687

 
$
4

Commercial real estate
 
569

 
518

 
4,107

 
5,194

 
465,362

 
470,556

 
149

Commercial real estate construction
 

 
77

 

 
77

 
28,321

 
28,398

 

Residential mortgage
 
122

 
380

 
1,543

 
2,045

 
364,149

 
366,194

 
1,442

Home equity lines of credit
 
236

 
25

 
33

 
294

 
87,171

 
87,465

 
33

Consumer
 
30

 
47

 

 
77

 
12,054

 
12,131

 

Total originated loans
 
972

 
1,087

 
5,687

 
7,746

 
1,255,685

 
1,263,431

 
1,628

Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
249

 
19

 
23

 
291

 
51,273

 
51,564

 
23

Commercial real estate
 
48

 
299

 
549

 
896

 
296,245

 
297,141

 
549

Commercial real estate construction
 

 

 
82

 
82

 
12,869

 
12,951

 
82

Residential mortgage
 
300

 
196

 
575

 
1,071

 
78,880

 
79,951

 
575

Home equity lines of credit
 

 

 
66

 
66

 
26,871

 
26,937

 
66

Consumer
 
5

 

 

 
5

 
1,583

 
1,588

 

Total acquired loans
 
602

 
514

 
1,295

 
2,411

 
467,721

 
470,132

 
1,295

Total Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
264

 
59

 
27

 
350

 
349,901

 
350,251

 
27

Commercial real estate
 
617

 
817

 
4,656

 
6,090

 
761,607

 
767,697

 
698

Commercial real estate construction
 

 
77

 
82

 
159

 
41,190

 
41,349

 
82

Residential mortgage
 
422

 
576

 
2,118

 
3,116

 
443,029

 
446,145

 
2,017

Home equity lines of credit
 
236

 
25

 
99

 
360

 
114,042

 
114,402

 
99

Consumer
 
35

 
47

 

 
82

 
13,637

 
13,719

 

Total Loans
 
$
1,574

 
$
1,601

 
$
6,982

 
$
10,157

 
$
1,723,406

 
$
1,733,563

 
$
2,923

    
In thousands
 
30-59 Days Past Due
 
60-89 Days
Past Due
 
>90 Days
Past Due
 
Total Past
Due
 
Current
 
Total Loans
Receivable
 
Loans
Receivable
>90 Days
and
Accruing
DECEMBER 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Originated Loans
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
16

 
$

 
$
4

 
$
20

 
$
145,736

 
$
145,756

 
$
4

Commercial real estate
 
325

 
2,247

 
1,286

 
3,858

 
448,078

 
451,936

 

Commercial real estate construction
 
78

 

 

 
78

 
24,099

 
24,177

 

Residential mortgage
 
1,625

 
949

 
1,232

 
3,806

 
367,538

 
371,344

 
1,061

Home equity lines of credit
 
141

 
77

 

 
218

 
92,864

 
93,082

 

Consumer
 
38

 
8

 
19

 
65

 
13,266

 
13,331

 
19

Total originated loans
 
2,223

 
3,281

 
2,541

 
8,045

 
1,091,581

 
1,099,626

 
1,084

Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 

 
23

 

 
23

 
3,536

 
3,559

 

Commercial real estate
 
1,063

 

 

 
1,063

 
114,049

 
115,112

 

Commercial real estate construction
 

 

 

 

 
2,239

 
2,239

 

Residential mortgage
 
293

 
257

 
120

 
670

 
36,323

 
36,993

 
120

Home equity lines of credit
 
236

 
93

 
15

 
344

 
14,621

 
14,965

 
15

Consumer
 

 

 

 

 
107

 
107

 

Total acquired loans
 
1,592

 
373

 
135

 
2,100

 
170,875

 
172,975

 
135

Total Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
16

 
23

 
4

 
43

 
149,272

 
149,315

 
4

Commercial real estate
 
1,388

 
2,247

 
1,286

 
4,921

 
562,127

 
567,048

 

Commercial real estate construction
 
78

 

 

 
78

 
26,338

 
26,416

 

Residential mortgage
 
1,918

 
1,206

 
1,352

 
4,476

 
403,861

 
408,337

 
1,181

Home equity lines of credit
 
377

 
170

 
15

 
562

 
107,485

 
108,047

 
15

Consumer
 
38

 
8

 
19

 
65

 
13,373

 
13,438

 
19

Total Loans
 
$
3,815

 
$
3,654

 
$
2,676

 
$
10,145

 
$
1,262,456

 
$
1,272,601

 
$
1,219




Summary of allowance for loan losses and recorded investment in loans receivable
The following tables summarize the allowance for loan losses and recorded investment in loans receivable:
In thousands
 
Commercial
and
Industrial
 
Commercial
Real Estate
 
Commercial
Real Estate
Construction
 
Residential
Mortgage
 
Home Equity
Lines of
Credit
 
Consumer
 
Unallocated
 
Total
AS OF AND FOR THE PERIOD ENDED JUNE 30, 2020
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for Loan Losses
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance - April 1, 2020
 
$
2,646

 
$
7,511

 
$
231

 
$
2,701

 
$
605

 
$
623

 
$
1,535

 
$
15,852

Charge-offs
 
(17
)
 

 

 

 

 
(39
)
 

 
(56
)
Recoveries
 
5

 

 

 

 
1

 
1

 

 
7

Provisions
 
22

 
624

 
20

 
373

 
55

 
76

 
1,380

 
2,550

Ending balance - June 30, 2020
 
$
2,656

 
$
8,135

 
$
251

 
$
3,074

 
$
661

 
$
661

 
$
2,915

 
$
18,353

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance - January 1, 2020
 
$
2,400

 
$
6,693

 
$
298

 
$
2,555

 
$
619

 
$
650

 
$
620

 
$
13,835

Charge-offs
 
(2,034
)
 

 

 

 

 
(90
)
 

 
(2,124
)
Recoveries
 
75

 
6

 

 

 
1

 
10

 

 
92

Provisions
 
2,215

 
1,436

 
(47
)
 
519

 
41

 
91

 
2,295

 
6,550

Ending balance - June 30, 2020
 
$
2,656

 
$
8,135

 
$
251

 
$
3,074

 
$
661

 
$
661

 
$
2,915

 
$
18,353

Ending balance: individually evaluated for impairment
 
$
29

 
$
113

 
$

 
$

 
$

 
$

 
$

 
$
142

Ending balance: collectively evaluated for impairment
 
$
2,627

 
$
8,022

 
$
251

 
$
3,074

 
$
661

 
$
661

 
$
2,915

 
$
18,211

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans Receivable
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
350,251

 
$
767,697

 
$
41,349

 
$
446,145

 
$
114,402

 
$
13,719

 
$

 
$
1,733,563

Ending balance: individually evaluated for impairment
 
$
52

 
$
8,471

 
$

 
$
101

 
$
44

 
$

 
$

 
$
8,668

Ending balance: collectively evaluated for impairment
 
$
350,199

 
$
759,226

 
$
41,349

 
$
446,044

 
$
114,358

 
$
13,719

 
$

 
$
1,724,895

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AS OF AND FOR THE PERIOD ENDED JUNE 30, 2019
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for Loan Losses
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance - April 1, 2019
 
$
2,620

 
$
6,278

 
$
241

 
$
2,737

 
$
616

 
$
697

 
$
831

 
$
14,020

Charge-offs
 
(71
)
 

 

 

 

 
(63
)
 

 
(134
)
Recoveries
 
7

 

 

 

 
8

 
31

 

 
46

Provisions
 
(94
)
 
134

 
21

 
9

 
1

 
23

 
31

 
125

Ending balance - June 30, 2019
 
$
2,462

 
$
6,412

 
$
262

 
$
2,746

 
$
625

 
$
688

 
$
862

 
$
14,057

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance - January 1, 2019
 
$
2,597

 
$
6,208

 
$
203

 
$
2,814

 
$
611

 
$
692

 
$
839

 
$
13,964

Charge-offs
 
(102
)
 

 

 
(6
)
 
(51
)
 
(107
)
 

 
(266
)
Recoveries
 
21

 

 

 
1

 
8

 
54

 

 
84

Provisions
 
(54
)
 
204

 
59

 
(63
)
 
57

 
49

 
23

 
275

Ending balance - June 30, 2019
 
$
2,462

 
$
6,412

 
$
262

 
$
2,746

 
$
625

 
$
688

 
$
862

 
$
14,057

Ending balance: individually evaluated for impairment
 
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$

Ending balance: collectively evaluated for impairment
 
$
2,462

 
$
6,412

 
$
262

 
$
2,746

 
$
625

 
$
688

 
$
862

 
$
14,057

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans Receivable
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
161,379

 
$
552,731

 
$
20,428

 
$
419,940

 
$
110,585

 
$
14,201

 
$

 
$
1,279,264

Ending balance: individually evaluated for impairment
 
$

 
$
5,747

 
$

 
$
650

 
$

 
$

 
$

 
$
6,397

Ending balance: collectively evaluated for impairment
 
$
161,379

 
$
546,984

 
$
20,428

 
$
419,290

 
$
110,585

 
$
14,201

 
$

 
$
1,272,867

In thousands
 
Commercial
and
Industrial
 
Commercial
Real Estate
 
Commercial
Real Estate
Construction
 
Residential
Mortgage
 
Home Equity
Lines of
Credit
 
Consumer
 
Unallocated
 
Total
AS OF DECEMBER 31, 2019
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for Loan Losses
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
2,400

 
$
6,693

 
$
298

 
$
2,555

 
$
619

 
$
650

 
$
620

 
$
13,835

Ending balance: individually evaluated for impairment
 
$
42

 
$

 
$

 
$

 
$

 
$

 
$

 
$
42

Ending balance: collectively evaluated for impairment
 
$
2,358

 
$
6,693

 
$
298

 
$
2,555

 
$
619

 
$
650

 
$
620

 
$
13,793

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans Receivable
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
149,315

 
$
567,048

 
$
26,416

 
$
408,337

 
$
108,047

 
$
13,438

 
$

 
$
1,272,601

Ending balance: individually evaluated for impairment
 
$
65

 
$
7,383

 
$

 
$
171

 
$
83

 
$

 
$

 
$
7,702

Ending balance: collectively evaluated for impairment
 
$
149,250

 
$
559,665

 
$
26,416

 
$
408,166

 
$
107,964

 
$
13,438

 
$

 
$
1,264,899


Schedule of expected commercial loan modifications
Details with respect to actual loan modifications are as follows:    
Type of Loans
 
Number of Loans
 
Deferral Period
 
Balance
 
Percentage of Tier 1 Capital
Commercial Purpose
 
347

 
Up to 6 months
 
$
222,030,594

 
88.04
%
Consumer Purpose
 
119

 
Up to 6 months
 
12,605,748

 
5.00

 
 
466

 
 
 
$
234,636,342

 
 

The following table provides information with respect to the Corporation’s Commercial loans by industry at June 30, 2020 that may have suffered, or are expected to suffer, greater losses as a result of COVID-19.
            
Type of Loans
 
Number of Loans
 
Balance
 
Percentage of Total Loan Portfolio
 
Percentage of Tier 1 Capital
Lessors of Commercial Real Estate
 
95

 
$
83,958,412

 
4.84
%
 
33.29
%
Lessors of Residential Real Estate
 
42

 
13,364,374

 
0.77

 
5.30

Hospitality Industry (Hotels/Bed & Breakfast)
 
28

 
47,809,096

 
2.76

 
18.96

Food Services Industry
 
31

 
18,038,550

 
1.04

 
7.15

Other
 
151

 
58,860,162

 
3.40

 
23.34

 
 
347

 
$
222,030,594

 
12.81
%
 
88.04
%