XML 55 R31.htm IDEA: XBRL DOCUMENT v3.20.1
Loans (Tables)
 3 Months Ended
Mar. 31, 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 March 31, 2020, and December 31, 2019:
 
In thousands
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
MARCH 31, 2020
 
 

 
 

 
 

 
 

 
 

Originated Loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
143,190

 
$
11,004

 
$
685

 
$
—

 
$
154,879

Commercial real estate
 
425,265

 
29,706

 
10,539

 
—

 
465,510

Commercial real estate construction
 
24,094

 
1,191

 
—

 
—

 
25,285

Residential mortgage
 
364,937

 
4,930

 
180

 
—

 
370,047

Home equity lines of credit
 
90,737

 
619

 
68

 
—

 
91,424

Consumer
 
12,726

 
—

 
—

 
—

 
12,726

Total Originated Loans
 
1,060,949

 
47,450

 
11,472

 
—

 
1,119,871

Acquired Loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
50,296

 
2,166

 
1,518

 
—

 
53,980

Commercial real estate
 
273,838

 
19,206

 
4,861

 
—

 
297,905

Commercial real estate construction
 
17,216

 
1,697

 
—

 
—

 
18,913

Residential mortgage
 
80,513

 
3,603

 
2,273

 
—

 
86,389

Home equity lines of credit
 
26,729

 
87

 
363

 
—

 
27,179

Consumer
 
1,769

 
—

 
33

 
—

 
1,802

Total Acquired Loans
 
450,361

 
26,759

 
9,048

 
—

 
486,168

Total Loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
193,486

 
13,170

 
2,203

 
—

 
208,859

Commercial real estate
 
699,103

 
48,912

 
15,400

 
—

 
763,415

Commercial real estate construction
 
41,310

 
2,888

 
—

 
—

 
44,198

Residential mortgage
 
445,450

 
8,533

 
2,453

 
—

 
456,436

Home equity lines of credit
 
117,466

 
706

 
431

 
—

 
118,603

Consumer
 
14,495

 
—

 
33

 
—

 
14,528

Total Loans
 
$
1,511,310

 
$
74,209

 
$
20,520

 
$
—

 
$
1,606,039


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
 
Three Months Ended March 31, 2020
 
Three Months Ended March 31, 2019
Balance at beginning of period
 
$
642

 
$
891

Acquisitions of impaired loans
 
354

 
—

Reclassification from non-accretable differences
 
—

 
—

Accretion to loan interest income
 
(128
)
 
(137
)
Balance at end of period
 
$
868

 
$
754
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 March 31, 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
MARCH 31, 2020
 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
58

 
$
58

 
$
36

 
$
—

 
$
—

Commercial real estate
 
1,061

 
1,061

 
42

 
7,296

 
7,296

Commercial real estate construction
 
—

 
—

 
—

 
—

 
—

Residential mortgage
 
—

 
—

 
—

 
101

 
101

Home equity lines of credit
 
—

 
—

 
—

 
68

 
68

 
 
$
1,119

 
$
1,119

 
$
78

 
$
7,465

 
$
7,465

 
 
 
 
 
 
 
 
 
 
 
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 March 31, 2020 and 2019:
 
 
 
Impaired Loans with
Allowance
 
Impaired Loans with
No Allowance
In thousands
 
Average
Recorded
Investment
 
Interest
Income
 
Average
Recorded
Investment
 
Interest
Income
MARCH 31, 2020
 
 

 
 

 
 

 
 

Commercial and industrial
 
$
62

 
$
—

 
$
—

 
$
—

Commercial real estate
 
530

 
—

 
7,340

 
70

Commercial real estate construction
 
—

 
—

 
—

 
—

Residential mortgage
 
—

 
—

 
136

 
7

Home equity lines of credit
 
—

 
—

 
76

 
—

 
 
$
592

 
$
—

 
$
7,552

 
$
77

 
 
 
 
 
 
 
 
 
March 31, 2019
 
 

 
 

 
 

 
 

Commercial and industrial
 
$
—

 
$
—

 
$
—

 
$
—

Commercial real estate
 
—

 
—

 
6,708

 
57

Commercial real estate construction
 
—

 
—

 
—

 
—

Residential mortgage
 
—

 
—

 
537

 
—

Home equity lines of credit
 
—

 
—

 
—

 
—

 
 
$
—

 
$
—

 
$
7,245

 
$
57
Schedule of nonaccrual loans by loan portfolio class
The following table presents nonaccrual loans by loan portfolio class as of March 31, 2020, and December 31, 2019, the table below excludes $8.1 million in purchase credit impaired loans, net of unamortized fair value adjustments: 

In thousands
 
March 31, 2020
 
December 31, 2019
Commercial and industrial
 
$
58

 
$
65

Commercial real estate
 
4,599

 
3,600

Commercial real estate construction
 
—

 
—

Residential mortgage
 
101

 
171

Home equity lines of credit
 
68

 
83

 
 
$
4,826

 
$
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 March 31, 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
MARCH 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Originated Loans
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
11

 
$
—

 
$
4

 
$
15

 
$
154,864

 
$
154,879

 
$
4

Commercial real estate
 
454

 
325

 
467

 
1,246

 
464,264

 
465,510

 
—

Commercial real estate construction
 
400

 
78

 
—

 
478

 
24,807

 
25,285

 
—

Residential mortgage
 
2,137

 
4

 
1,554

 
3,695

 
366,352

 
370,047

 
1,453

Home equity lines of credit
 
670

 
55

 
33

 
758

 
90,666

 
91,424

 
33

Consumer
 
215

 
42

 
—

 
257

 
12,469

 
12,726

 
—

Total originated loans
 
3,887

 
504

 
2,058

 
6,449

 
1,113,422

 
1,119,871

 
1,490

Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
44

 
67

 
95

 
206

 
53,774

 
53,980

 
95

Commercial real estate
 
1,692

 
364

 
4,155

 
6,211

 
291,694

 
297,905

 
642

Commercial real estate construction
 
—

 
41

 
—

 
41

 
18,872

 
18,913

 
—

Residential mortgage
 
446

 
202

 
720

 
1,368

 
85,021

 
86,389

 
720

Home equity lines of credit
 
52

 
—

 
90

 
142

 
27,037

 
27,179

 
90

Consumer
 
53

 
—

 
—

 
53

 
1,749

 
1,802

 
—

Total acquired loans
 
2,287

 
674

 
5,060

 
8,021

 
478,147

 
486,168

 
1,547

Total Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
55

 
67

 
99

 
221

 
208,638

 
208,859

 
99

Commercial real estate
 
2,146

 
689

 
4,622

 
7,457

 
755,958

 
763,415

 
642

Commercial real estate construction
 
400

 
119

 
—

 
519

 
43,679

 
44,198

 
—

Residential mortgage
 
2,583

 
206

 
2,274

 
5,063

 
451,373

 
456,436

 
2,173

Home equity lines of credit
 
722

 
55

 
123

 
900

 
117,703

 
118,603

 
123

Consumer
 
268

 
42

 
—

 
310

 
14,218

 
14,528

 
—

Total Loans
 
$
6,174

 
$
1,178

 
$
7,118

 
$
14,470

 
$
1,591,569

 
$
1,606,039

 
$
3,037

    
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 MARCH 31, 2020
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for Loan Losses
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance - January 1, 2020
 
$
2,400

 
$
6,693

 
$
298

 
$
2,555

 
$
619

 
$
650

 
$
620

 
$
13,835

Charge-offs
 
(2,017
)
 
—

 
—

 
—

 
—

 
(51
)
 
—

 
(2,068
)
Recoveries
 
70

 
6

 
—

 
—

 
—

 
9

 
—

 
85

Provisions
 
2,193

 
812

 
(67
)
 
146

 
(14
)
 
15

 
915

 
4,000

Ending balance - March 31, 2020
 
$
2,646

 
$
7,511

 
$
231

 
$
2,701

 
$
605

 
$
623

 
$
1,535

 
$
15,852

Ending balance: individually evaluated for impairment
 
$
36

 
$
42

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
78

Ending balance: collectively evaluated for impairment
 
$
2,610

 
$
7,469

 
$
231

 
$
2,701

 
$
605

 
$
623

 
$
1,535

 
$
15,774

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans Receivable
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
208,859

 
$
763,415

 
$
44,198

 
$
456,436

 
$
118,603

 
$
14,528

 
$
—

 
$
1,606,039

Ending balance: individually evaluated for impairment
 
$
58

 
$
8,357

 
$
—

 
$
101

 
$
68

 
$
—

 
$
—

 
$
8,584

Ending balance: collectively evaluated for impairment
 
$
208,801

 
$
755,058

 
$
44,198

 
$
456,335

 
$
118,535

 
$
14,528

 
$
—

 
$
1,597,455

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AS OF AND FOR THE PERIOD ENDED MARCH 31, 2019
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Allowance for Loan Losses
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance - January 1, 2019
 
$
2,597

 
$
6,208

 
$
203

 
$
2,814

 
$
611

 
$
692

 
$
839

 
$
13,964

Charge-offs
 
(31
)
 
—

 
—

 
(6
)
 
(51
)
 
(44
)
 
—

 
(132
)
Recoveries
 
14

 
—

 
—

 
1

 
—

 
23

 
—

 
38

Provisions
 
40

 
70

 
38

 
(72
)
 
56

 
26

 
(8
)
 
150

Ending balance - March 31, 2019
 
$
2,620

 
$
6,278

 
$
241

 
$
2,737

 
$
616

 
$
697

 
$
831

 
$
14,020

Ending balance: individually evaluated for impairment
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Ending balance: collectively evaluated for impairment
 
$
2,620

 
$
6,278

 
$
241

 
$
2,737

 
$
616

 
$
697

 
$
831

 
$
14,020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans Receivable
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
175,309

 
$
544,273

 
$
29,726

 
$
426,426

 
$
111,333

 
$
14,268

 
$
—

 
$
1,301,335

Ending balance: individually evaluated for impairment
 
$
—

 
$
6,654

 
$
—

 
$
537

 
$
—

 
$
—

 
$
—

 
$
7,191

Ending balance: collectively evaluated for impairment
 
$
175,309

 
$
537,619

 
$
29,726

 
$
425,889

 
$
111,333

 
$
14,268

 
$
—

 
$
1,294,144

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
 
216

 
3 months
 
$
132,898,838

 
53.80
%
Consumer Purpose
 
71

 
1-3 months
 
1,498,218

 
0.61

 
 
287

 
 
 
$
134,397,056

 
 
The following table provides information with respect to the Corporation’s Commercial loans by industry at March 31, 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
 
36

 
$
26,538,223

 
1.65
%
 
10.74
%
Hospitality Industry (Hotels/Bed & Breakfast)
 
20

 
35,882,974

 
2.23

 
14.53

Food Services Industry
 
34

 
15,517,902

 
0.97

 
6.28

Other
 
126

 
54,959,739

 
3.42

 
22.25

 
 
216

 
$
132,898,838

 
8.27
%
 
53.80
%