LOANS (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Schedule of Loans

The following is a summary of total loans as of December 31, 2017 and December 31, 2016:

	December 31, 2017						December 31, 2016
(in thousands)	Business Activities  Loans		Acquired Loans		Total		Business Activities  Loans		Acquired Loans		Total
Commercial Real Estate:
Construction and land development	$	28,892	$	16,781	$	45,673	$	14,695	$	—	$	14,695
Other commercial real estate	505,119		275,954		781,073		403,424		—		403,424
Total Commercial Real Estate	534,011		292,735		826,746		418,119		—		418,119
Commercial and Industrial:
Other Commercial	198,051		68,069		266,120		103,586		—		103,586
Agricultural and other loans to farmers	27,588		—		27,588		31,808		—		31,808
Tax exempt	42,365		43,350		85,715		15,846		—		15,846
Total Commercial and Industrial	268,004		111,419		379,423		151,240		—		151,240
Total Commercial Loans	802,015		404,154		1,206,169		569,359		—		569,359
Residential Real Estate:
Residential mortgages	591,411		564,271		1,155,682		506,612		—		506,612
Total Residential Real Estate	591,411		564,271		1,155,682		506,612		—		506,612
Consumer:
Home equity	51,376		62,217		113,593		46,921		—		46,921
Other consumer	7,828		2,341		10,169		6,172		—		6,172
Total Consumer	59,204		64,558		123,762		53,093		—		53,093
Total Loans	$	1,452,630	$	1,032,983	$	2,485,613	$	1,129,064	$	—	$	1,129,064

Total unamortized net premiums included in the year-end total for business activity loans were the following at December 31, 2017 and December 31, 2016:

(in thousands)	2017			2016
Unamortized net loan origination costs	$	2,445		$	1,518
Unamortized net premium on purchased loans	(123		)	(129		)
Total unamortized net costs and premiums	$	2,322		$	1,389

Loan to related parties at December 31, 2017 and December 31, 2016 are summarized below.

(in thousands)	2017			2016
Beginning balance	$	10,620		$	4,100
Changes in composition (1)	249			7,017
New Loans	1,124			1,127
Less: repayments	(1,506		)	(1,624		)
Ending balance	$	10,487		$	10,620

______________________________________

(1) Adjustments to reflect changes in status of directors and officers for each year presented.

Schedule of Activity in the Accretable Yield for the Acquired Loan Portfolio that Falls Under the Review of ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer

The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer:

	Twelve Months Ended December 31,
(in thousands)	2017			2016
Balance at beginning of period	$	—		$	—
Acquisitions	3,398			—
Reclassification from nonaccretable difference for loans with improved cash flows	1,925			—
Changes in expected cash flows that do not affect the nonaccretable difference	—			—
Reclassification to TDR	—			—
Accretion	(1,814		)	—
Balance at end of period	$	3,509		$	—

Summary of Past Due Loans

The following is a summary of past due loans at December 31, 2017 and December 31, 2016:

Business Activities Loans

(in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total  Loans		Past Due > 90 days and Accruing
December 31, 2017
Commercial Real Estate:
Construction and land development	$	—	$	—	$	637	$	637	$	28,255	$	28,892	$	—
Other commercial real estate	965		1,659		5,065		7,689		497,430		505,119		119
Total Commercial Real Estate	965		1,659		5,702		8,326		525,685		534,011		119
Commercial and Industrial:
Other Commercial	186		329		702		1,217		196,834		198,051		21
Agricultural and other loans to farmers	42		159		198		399		27,189		27,588		155
Tax exempt	—		—		—		—		42,365		42,365		—
Total Commercial and Industrial	228		488		900		1,616		266,388		268,004		176
Total Commercial Loans	1,193		2,147		6,602		9,942		792,073		802,015		295
Residential Real Estate:
Residential mortgages	3,096		711		975		4,782		586,629		591,411		—
Total Residential Real Estate	3,096		711		975		4,782		586,629		591,411		—
Consumer:
Home equity	515		—		199		714		50,662		51,376		199
Other consumer	36		24		—		60		7,768		7,828		—
Total Consumer	551		24		199		774		58,430		59,204		199
Total Loans	$	4,840	$	2,882	$	7,776	$	15,498	$	1,437,132	$	1,452,630	$	494

Business Activities Loans

(in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans		Past Due > 90 days and Accruing
December 31, 2016
Commercial Real Estate:
Construction and land development	$	—	$	—	$	—	$	—	$	14,695	$	14,695	$	—
Other commercial real estate	195		554		1,665		2,414		401,010		403,424		—
Total Commercial Real Estate	195		554		1,665		2,414		415,705		418,119		—
Commercial and Industrial:
Other Commercial	61		45		201		307		103,279		103,586		—
Agricultural and other loans to farmers	231		—		—		231		31,577		31,808		—
Tax exempt	—		—		—		—		15,846		15,846		—
Total Commercial and Industrial	292		45		201		538		150,702		151,240		—
Total Commercial Loans	487		599		1,866		2,952		566,407		569,359		—
Residential Real Estate:
Residential mortgages	4,484		429		938		5,851		500,761		506,612		—
Total Residential Real Estate	4,484		429		938		5,851		500,761		506,612		—
Consumer:
Home equity	—		—		15		15		46,906		46,921		—
Other consumer	103		1		6		110		6,062		6,172		—
Total Consumer	103		1		21		125		52,968		53,093		—
													—
Total Loans	$	5,074	$	1,029	$	2,825	$	8,928	$	1,120,136	$	1,129,064	$	—

Acquired Loans

(in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Acquired Credit Impaired		Total Loans		Past Due > 90 days and Accruing
December 31, 2017
Commercial Real Estate:
Construction and land development	$	124	$	9	$	—	$	133	$	258	$	16,781	$	—
Other commercial real estate	278		—		411		689		8,397		275,954		—
Total Commercial Real Estate	402		9		411		822		8,655		292,735		—
Commercial and Industrial:
Other Commercial	125		14		49		188		632		68,069		—
Agricultural and other loans to farmers	—		—		—		—		—		—		—
Tax exempt	—		—		—		—		—		43,350		—
Total Commercial and Industrial	125		14		49		188		632		111,419		—
Total Commercial Loans	527		23		460		1,010		9,287		404,154		—
Residential Real Estate:
Residential mortgages	752		388		614		1,754		3,259		564,271		—
Total Residential Real Estate	752		388		614		1,754		3,259		564,271		—
Consumer:
Home equity	125		117		80		322		38		62,217		16
Other consumer	2		—		—		2		3		2,341		—
Total Consumer	127		117		80		324		41		64,558		16
													—
Total Loans	$	1,406	$	528	$	1,154	$	3,088	$	12,587	$	1,032,983	$	16

Summary of Information Pertaining to Non-Accrual Loans

The following is summary information pertaining to non-accrual loans at December 31, 2017 and December 31, 2016:

	December 31, 2017						December 31, 2016
(in thousands)	Business Activities  Loans		Acquired Loans		Total		Business Activities  Loans		Acquired Loans		Total
Commercial Real Estate:
Construction and land development	$	637	$	—	$	637	$	—	$	—	$	—
Other commercial real estate	7,146		560		7,706		2,564		—		2,564
Total Commercial Real Estate	7,783		560		8,343		2,564		—		2,564
Commercial and Industrial:
Other Commercial	703		463		1,166		284		—		284
Agricultural and other loans to farmers	43		—		43		31		—		31
Tax exempt	—		—		—		—		—		—
Total Commercial and Industrial	746		463		1,209		315		—		315
Total Commercial Loans	8,529		1,023		9,552		2,879		—		2,879
Residential Real Estate:
Residential mortgages	3,408		858		4,266		3,419		—		3,419
Total Residential Real Estate	3,408		858		4,266		3,419		—		3,419
Consumer:
Home equity	130		217		347		90		—		90
Other consumer	95		58		153		108		—		108
Total Consumer	225		275		500		198		—		198
Total Loans	$	12,162	$	2,156	$	14,318	$	6,496	$	—	$	6,496

Schedule of Loans Evaluated for Impairment

Loans evaluated for impairment as of December 31, 2017 and December 31, 2016 were as follows:

Business Activities Loans

(in thousands)	Commercial real estate		Commercial  and industrial		Residential real estate		Consumer		Total
December 31, 2017
Loans receivable:
Balance at end of period
Individually evaluated for impairment	$	7,604	$	626	$	1,404	$	13	$	9,647
Collectively evaluated	526,407		267,378		590,007		59,191		1,442,983
Total	$	534,011	$	268,004	$	591,411	$	59,204	$	1,452,630

Business Activities Loans

(in thousands)	Commercial real estate		Commercial  and industrial		Residential real estate		Consumer		Total
December 31, 2016
Loans receivable:
Balance at end of period
Individually evaluated for impairment	$	4,481	$	486	$	1,709	$	33	$	6,709
Collectively evaluated	413,638		150,754		504,903		53,060		1,122,355
Total	$	418,119	$	151,240	$	506,612	$	53,093	$	1,129,064

Acquired Loans

(in thousands)	Commercial real estate		Commercial  and industrial		Residential real estate		Consumer		Total
December 31, 2017
Loans receivable:
Balance at end of period
Individually evaluated for impairment	$	241	$	571	$	271	$	63	$	1,146
Purchased credit impaired	8,655		632		3,259		41		12,587
Collectively evaluated	283,839		110,216		560,741		64,454		1,019,250
Total	$	292,735	$	111,419	$	564,271	$	64,558	$	1,032,983

Summary of Impaired Loans

The following is a summary of impaired loans at December 31, 2017 and December 31, 2016:

Business Activities Loans

	December 31, 2017
(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance:
Construction and land development	$	—	$	—	$	—
Other commercial real estate	5,896		5,903		—
Other commercial	218		217		—
Agricultural and other loans to farmers	—		—		—
Tax exempt	—		—		—
Residential mortgages	1,247		1,260		—
Home equity	13		13		—
Other consumer	—		—		—
With an allowance recorded:
Construction and land development	$	637	$	2,563	$	59
Other commercial real estate	1,071		1,132		388
Other commercial	408		408		3
Agricultural and other loans to farmers	—		—		—
Tax exempt	—		—		—
Residential mortgages	157		157		9
Home equity	—		—		—
Other consumer	—		—		—
Total
Commercial real estate	$	7,604	$	9,598	$	447
Commercial and industrial	626		625		3
Residential real estate	1,404		1,417		9
Consumer	13		13		—
Total impaired loans	$	9,647	$	11,653	$	459

Business Activities Loans

	December 31, 2016
(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance:
Construction and land development	$	—	$	—	$	—
Other commercial real estate	2,831		2,919		—
Other commercial	130		130		—
Agricultural and other loans to farmers	139		139		—
Tax exempt	—		—		—
Residential mortgages	1,387		1,504		—
Home equity	16		16		—
Other consumer	2		2		—
With an allowance recorded:
Construction and land development	$	—	$	—	$	—
Other commercial real estate	1,650		3,575		193
Other commercial	217		367		173
Agricultural and other loans to farmers	—		—		—
Tax exempt	—		—		—
Residential mortgages	322		322		49
Home equity	—		—		—
Other consumer	15		15		9
Total
Commercial real estate	$	4,481	$	6,494	$	193
Commercial and industrial	486		636		173
Residential real estate	1,709		1,826		49
Consumer	33		33		9
Total impaired loans	$	6,709	$	8,989	$	424

Acquired Loans

	December 31, 2017
(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance:
Construction and land development	$	—	$	—	$	—
Other commercial real estate	241		352		—
Other commercial	571		584		—
Agricultural and other loans to farmers	—		—		—
Tax exempt	—		—		—
Residential mortgages	271		278		—
Home equity	63		156		—
Other consumer	—		—		—
With an allowance recorded:
Construction and land development	$	—	$	—	$	—
Other commercial real estate	—		—		—
Other commercial	—		—		—
Agricultural and other loans to farmers	—		—		—
Tax exempt	—		—		—
Residential mortgages	—		—		—
Home equity	—		—		—
Other consumer	—		—		—
Total
Commercial real estate	$	241	$	352	$	—
Commercial and industrial	571		584		—
Residential real estate	271		278		—
Consumer	63		156		—
Total impaired loans	$	1,146	$	1,370	$	—

Summary of the Average Recorded Investment and Interest Income Recognized on Impaired Loans

The following is a summary of the average recorded investment and interest income recognized on impaired loans as of December 31, 2017 and December 31, 2016:

Business Activities Loan

	Twelve Months Ended December 31, 2017				Twelve Months Ended December 31, 2016
(in thousands)	Average Recorded Investment		Cash Basis Interest Income Recognized		Average Recorded Investment		Cash Basis Interest Income Recognized
With no related allowance:
Construction and land development	$	—	$	—	$	—	$	—
Other commercial real estate	2,541		66		2,768		157
Other commercial	382		6		239		4
Agricultural and other loans to farmers	113		1		156		9
Tax exempt	—		—		—		—
Residential mortgages	2,174		39		1,514		73
Home equity	27		—		17		1
Other consumer	53		3		2		2
With an allowance recorded:
Construction and land development	$	637	$	—	$	—	$	—
Other commercial real estate	735		—		1,619		—
Other commercial	105		1		118		—
Agricultural and other loans to farmers	—		—		—		—
Tax exempt	—		—		—		—
Residential mortgages	157		5		325		—
Home equity	—		—		—		—
Other consumer	—		—		16		—
Total
Commercial real estate	$	3,913	$	66	$	4,387	$	157
Commercial and industrial	600		8		513		13
Residential real estate	2,331		44		1,839		73
Consumer	80		3		35		3
Total impaired loans	$	6,924	$	121	$	6,774	$	246

Acquired Loans

	Twelve Months Ended December 31, 2017				Twelve Months Ended December 31, 2016
(in thousands)	Average Recorded Investment		Cash Basis Interest Income Recognized		Average Recorded Investment		Cash Basis Interest Income Recognized
With no related allowance:
Construction and land development	$	—	$	—	$	—	$	—
Other commercial real estate	136		—		—		—
Other commercial	264		1		—		—
Agricultural and other loans to farmers	—		—		—		—
Tax exempt	—		—		—		—
Residential mortgages	140		1		—		—
Home equity	58		—		—		—
Other consumer	—		—		—		—
With an allowance recorded:
Construction and land development	$	—	$	—	$	—	$	—
Other commercial real estate	—		—		—		—
Other commercial	—		—		—		—
Agricultural and other loans to farmers	—		—		—		—
Tax exempt	—		—		—		—
Residential mortgages	—		—		—		—
Home equity	—		—		—		—
Other consumer	—		—		—		—
Total
Commercial real estate	$	136	$	—	$	—	$	—
Commercial and industrial	264		1		—		—
Residential real estate	140		1		—		—
Consumer	58		—		—		—
Total impaired loans	$	598	$	2	$	—	$	—

Schedule of Recorded Investment and Number of Modifications for TDRs Identified During the Period

The following tables include the recorded investment and number of modifications identified during the twelve months ended December 31, 2017 and for the twelve months ended December 31, 2016, respectively. The table includes the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured. The modifications for the twelve months ended December 31, 2017 were attributable to maturity date extensions, adjusted interest rates and payments, or a combination of two or more concessions. The modifications for the twelve months ending December 31, 2016 were attributable to interest rate concessions, maturity date extensions, court ordered concessions, or a combination of two or more concessions.

	Twelve Months Ended December 31, 2017
(in thousands, except modifications)	Number of Modifications	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Other commercial real estate	6	$	388	$	222
Other commercial	6	563		545
Agricultural and other loans to farmers	1	19		18
Residential mortgages	3	692		670
Home equity	1	13		13
Other consumer	1	38		36
Total	18	$	1,713	$	1,504

	Twelve Months Ended December 31, 2016
(in thousands, except modifications)	Number of Modifications	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Other commercial real estate	6	$	1,459	$	1,354
Other commercial	2	38		48
Agricultural and other loans to farmers	3	29		44
Residential mortgages	—	—		—
Home equity	—	—		—
Other consumer	2	11		11
Total	13	$	1,537	$	1,457

	Twelve Months Ended December 31, 2015
(in thousands, except modifications)	Number of Modifications	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Other commercial real estate	4	$	342	$	352
Other commercial	—	—		—
Agricultural and other loans to farmers	1	18		15
Residential mortgages	—	—		—
Home equity	—	—		—
Other consumer	5	1,435		1,433
Total	10	$	1,795	$	1,800

Servicing Rights Activity

Servicing rights activity during 2017 and 2016 was as follows:

	At or for the Twelve Months Ended December 31,
(in thousands)	2017			2016
Balance at beginning of year	$	5		$	8
Acquired from Lake Sunapee Bank Group	3,417			—
Additions	134			—
Amortization	(324		)	(3		)
Balance at end of year	$	3,232		$	5