ALLOWANCE FOR LOAN LOSSES (Tables)

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Schedule of Activity in the Allowance for Loan Losses

Activity in the allowance for loan losses for the three and six months ended June 30, 2018 and 2017 was as follows:

Business Activities Loans	At or for the Three Months Ended June 30, 2018
(in thousands)	Commercial real estate			Commercial and industrial			Residential real estate		Consumer			Total
Balance at beginning of period	$	5,998		$	2,612		$	3,304	$	500		$	12,414
Charged-off loans	(156		)	(27		)	—		(216		)	(399		)
Recoveries on charged-off loans	46			4			—		2			52
Provision (releases) for loan losses	479			(80		)	150		107			656
Balance at end of period	$	6,367		$	2,509		$	3,454	$	393		$	12,723
Individually evaluated for impairment	682			34			80		—			796
Collectively evaluated	5,685			2,475			3,374		393			11,927
Total	$	6,367		$	2,509		$	3,454	$	393		$	12,723

Business Activities Loans	At or for the Six Months Ended June 30, 2018
(in thousands)	Commercial real estate			Commercial and industrial			Residential real estate		Consumer			Total
Balance at beginning of period	$	6,037		$	2,373		$	3,357	$	386		$	12,153
Charged-off loans	(156		)	(111		)	—		(386		)	(653		)
Recoveries on charged-off loans	61			6			1		4			72
Provision (releases) for loan losses	425			241			96		389			1,151
Balance at end of period	$	6,367		$	2,509		$	3,454	$	393		$	12,723
Individually evaluated for impairment	682			34			80		—			796
Collectively evaluated	5,685			2,475			3,374		393			11,927
Total	$	6,367		$	2,509		$	3,454	$	393		$	12,723

Business Activities Loans	At or for the Three Months Ended June 30, 2017
(in thousands)	Commercial real estate			Commercial and industrial			Residential real estate			Consumer			Total
Balance at beginning of period	$	5,307		$	2,143		$	2,806		$	628		$	10,884
Charged-off loans	(7		)	(170		)	(13		)	(23		)	(213		)
Recoveries on charged-off loans	1			32			—			2			35
Provision (releases) for loan losses	202			105			326			(6		)	627
Balance at end of period	$	5,503		$	2,110		$	3,119		$	601		$	11,333
Individually evaluated for impairment	380			4			10			—			394
Collectively evaluated	5,123			2,106			3,109			601			10,939
Total	$	5,503		$	2,110		$	3,119		$	601		$	11,333

Business Activities Loans	At or for the Six Months Ended June 30, 2017
(in thousands)	Commercial real estate			Commercial and industrial			Residential real estate			Consumer			Total
Balance at beginning of period	$	5,145		$	1,952		$	2,721		$	601		$	10,419
Charged-off loans	(112		)	(187		)	(212		)	(46		)	(557		)
Recoveries on charged-off loans	3			32			1			13			49
Provision (releases) for loan losses	467			313			609			33			1,422
Balance at end of period	$	5,503		$	2,110		$	3,119		$	601		$	11,333
Individually evaluated for impairment	380			4			10			—			394
Collectively evaluated	5,123			2,106			3,109			601			10,939
Total	$	5,503		$	2,110		$	3,119		$	601		$	11,333

Acquired Loans	At or for the Three Months Ended June 30, 2018
(in thousands)	Commercial real estate		Commercial and industrial			Residential real estate			Consumer			Total
Balance at beginning of period	$	83	$	124		$	58		$	—		$	265
Charged-off loans	—		(37		)	(64		)	(17		)	(118		)
Recoveries on charged-off loans	18		6			—			82			106
Provision (releases) for loan losses	99		(11		)	91			(65		)	114
Balance at end of period	$	200	$	82		$	85		$	—		$	367
Individually evaluated for impairment	—		77			—			—			77
Collectively evaluated	200		5			85			—			290
Total	$	200	$	82		$	85		$	—		$	367

Acquired Loans	At or for the Six Months Ended June 30, 2018
(in thousands)	Commercial real estate			Commercial and industrial			Residential real estate			Consumer			Total
Balance at beginning of period	$	97		$	16		$	59		$	—		$	172
Charged-off loans	(106		)	(95		)	(64		)	(60		)	(325		)
Recoveries on charged-off loans	18			6			—			82			106
Provision (releases) for loan losses	191			155			90			(22		)	414
Balance at end of period	$	200		$	82		$	85		$	—		$	367
Individually evaluated for impairment	—			77			—			—			77
Collectively evaluated	200			5			85			—			290
Total	$	200		$	82		$	85		$	—		$	367

Acquired Loans	At or for the Three Months Ended June 30, 2017
(in thousands)	Commercial real estate		Commercial and industrial		Residential real estate		Consumer		Total
Balance at beginning of period	$	—	$	—	$	—	$	—	$	—
Charged-off loans	—		—		—		—		—
Recoveries on charged-off loans	—		—		—		—		—
Provision (releases) for loan losses	51		24		34		—		109
Balance at end of period	$	51	$	24	$	34	$	—	$	109
Individually evaluated for impairment	51		24		34		—		109
Collectively evaluated	—		—		—		—		—
Total	$	51	$	24	$	34	$	—	$	109

Acquired Loans	At or for the Six Months Ended June 30, 2017
(in thousands)	Commercial real estate		Commercial and industrial		Residential real estate		Consumer		Total
Balance at beginning of period	$	—	$	—	$	—	$	—	$	—
Charged-off loans	—		—		—		—		—
Recoveries on charged-off loans	—		—		—		—		—
Provision (releases) for loan losses	51		24		34		—		109
Balance at end of period	$	51	$	24	$	34	$	—	$	109
Individually evaluated for impairment	51		24		34		—		109
Collectively evaluated	—		—		—		—		—
Total	$	51	$	24	$	34	$	—	$	109

Schedule of Loans by Risk Rating

The following tables present the Company’s loans by risk rating at June 30, 2018 and December 31, 2017:

Business Activities Loans

Commercial Real Estate

Credit Risk Profile by Creditworthiness Category

	Construction and land development				Commercial real estate other				Total commercial real estate
(in thousands)	Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017
Grade:
Pass	$	27,647	$	28,180	$	517,753	$	483,711	$	545,400	$	511,891
Special mention	73		73		7,139		5,706		7,212		5,779
Substandard	2		639		15,688		15,702		15,690		16,341
Total	$	27,722	$	28,892	$	540,580	$	505,119	$	568,302	$	534,011

Commercial and Industrial

Credit Risk Profile by Creditworthiness Category

	Other Commercial				Agricultural				Tax exempt loans				Total commercial and industrial
(in thousands)	Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017
Grade:
Pass	$	222,898	$	194,147	$	24,684	$	27,046	$	45,243	$	42,208	$	292,825	$	263,401
Special mention	1,355		1,933		68		63		157		157		1,580		2,153
Substandard	1,890		1,971		532		479		—		—		2,422		2,450
Total	$	226,143	$	198,051	$	25,284	$	27,588	$	45,400	$	42,365	$	296,827	$	268,004

Residential Real Estate and Consumer Loans

Credit Risk Profile Based on Payment Activity

	Residential real estate				Home equity				Other consumer				Total Residential real estate and consumer
(in thousands)	Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017
Performing	$	598,904	$	588,003	$	53,413	$	51,246	$	8,127	$	7,733	$	660,444	$	646,982
Nonperforming	7,224		3,408		440		130		88		95		7,752		3,633
Total	$	606,128	$	591,411	$	53,853	$	51,376	$	8,215	$	7,828	$	668,196	$	650,615

Acquired Loans

Commercial Real Estate

Credit Risk Profile by Creditworthiness Category

	Commercial construction and land development				Commercial real estate other				Total commercial real estate
(in thousands)	Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017
Grade:
Pass	$	9,289	$	16,523	$	251,388	$	266,477	$	260,677	$	283,000
Special mention	—		235		1,596		2,440		1,596		2,675
Substandard	253		23		7,718		7,037		7,971		7,060
Total	$	9,542	$	16,781	$	260,702	$	275,954	$	270,244	$	292,735

Commercial and Industrial

Credit Risk Profile by Creditworthiness Category

	Other Commercial				Agricultural				Tax exempt loans				Total commercial and industrial
(in thousands)	Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017
Grade:
Pass	$	54,605	$	60,300	$	—	$	—	$	41,213	$	43,350	$	95,818	$	103,650
Special mention	5,934		5,753		—		—		—		—		5,934		5,753
Substandard	1,714		2,016		—		—		—		—		1,714		2,016
Total	$	62,253	$	68,069	$	—	$	—	$	41,213	$	43,350	$	103,466	$	111,419

Residential Real Estate and Consumer Loans

Credit Risk Profile Based on Payment Activity

	Residential real estate				Home equity				Other consumer				Total Residential real estate and consumer
(in thousands)	Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017		Jun 30, 2018		Dec 31, 2017
Performing	$	518,067	$	562,516	$	54,291	$	62,000	$	1,794	$	2,283	$	574,152	$	626,799
Nonperforming	3,700		1,755		166		217		13		58		3,879		2,030
Total	$	521,767	$	564,271	$	54,457	$	62,217	$	1,807	$	2,341	$	578,031	$	628,829

Summary of Information About Total Loans Rated Special Mention or Lower

The following table summarizes information about total classified and criticized loans loans as of June 30, 2018 and December 31, 2017:

	June 30, 2018						December 31, 2017
(in thousands)	Business Activities Loans		Acquired  Loans		Total		Business Activities Loans		Acquired  Loans		Total
Non-accrual	$	17,965	$	3,981	$	21,946	$	12,140	$	2,156	$	14,296
Substandard accruing	7,901		9,583		17,484		10,284		7,833		18,117
Total classified	25,866		13,564		39,430		22,424		9,989		32,413
Special mention	8,792		7,530		16,322		7,932		8,428		16,360
Total Criticized	$	34,658	$	21,094	$	55,752	$	30,356	$	18,417	$	48,773