ALLOWANCE FOR LOAN LOSSES (Tables)

6 Months Ended

Jun. 30, 2019

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, 2019 and 2018 are, as follows:

Business Activities Loans	At or for the Three Months Ended June 30, 2019
(in thousands)	Commercial real estate			Commercial and industrial			Residential real estate			Consumer			Total
Balance at beginning of period	$	6,575		$	2,778		$	3,953		$	396		$	13,702
Charged-off loans	—			(13		)	—			(22		)	(35		)
Recoveries on charged-off loans	114			1			—			2			117
(Releases) provision for loan losses	517			(18		)	(11		)	18			506
Balance at end of period	$	7,206		$	2,748		$	3,942		$	394		$	14,290
Individually evaluated for impairment	449			39			75			1			564
Collectively evaluated	6,757			2,709			3,867			393			13,726
Total	$	7,206		$	2,748		$	3,942		$	394		$	14,290
Business Activities Loans	At or for the Six Months Ended June 30, 2019
(in thousands)	Commercial real estate			Commercial and industrial			Residential real estate			Consumer			Total
Balance at beginning of period	$	6,811		$	2,380		$	3,982		$	408		$	13,581
Charged-off loans	(57		)	(13		)	—			(75		)	(145		)
Recoveries on charged-off loans	130			1			18			6			155
(Releases) provision for loan losses	322			380			(58		)	55			699
Balance at end of period	$	7,206		$	2,748		$	3,942		$	394		$	14,290
Individually evaluated for impairment	449			39			75			1			564
Collectively evaluated	6,757			2,709			3,867			393			13,726
Total	$	7,206		$	2,748		$	3,942		$	394		$	14,290

Acquired Loans	At or for the Three Months Ended June 30, 2019
(in thousands)	Commercial real estate			Commercial and industrial			Residential real estate			Consumer			Total
Balance at beginning of period	$	161		$	29		$	105		$	—		$	295
Charged-off loans	—			—			(65		)	(4		)	(69		)
Recoveries on charged-off loans	—			—			—			—			—
(Releases) provision for loan losses	(2		)	(7		)	61			4			56
Balance at end of period	$	159		$	22		$	101		$	—		$	282
Individually evaluated for impairment	12			—			35			—			47
Collectively evaluated	147			22			66			—			235
Total	$	159		$	22		$	101		$	—		$	282
Acquired Loans	At or for the Six Months Ended June 30, 2019
(in thousands)	Commercial real estate			Commercial and industrial			Residential real estate			Consumer			Total
Balance at beginning of period	$	173		$	35		$	77		$	—		$	285
Charged-off loans	—			(15		)	(170		)	(5		)	(190		)
Recoveries on charged-off loans	—			—			—			—			—
(Releases) provision for loan losses	(14		)	2			194			5			187
Balance at end of period	$	159		$	22		$	101		$	—		$	282
Individually evaluated for impairment	12			—			35			—			47
Collectively evaluated	147			22			66			—			235
Total	$	159		$	22		$	101		$	—		$	282

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 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

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

Schedule of Loans by Risk Rating

The following tables present the Company’s loans by risk rating at June 30, 2019 and December 31, 2018:

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, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
Grade:
Pass	$	33,450	$	23,680	$	589,926	$	532,386	$	623,376	$	556,066
Special mention	73		73		11,959		8,319		12,032		8,392
Substandard	—		—		12,337		13,914		12,337		13,914
Doubtful	1		1		1,521		1,361		1,522		1,362
Total	$	33,524	$	23,754	$	615,743	$	555,980	$	649,267	$	579,734

Commercial and Industrial

Credit Risk Profile by Creditworthiness Category

	Commercial				Agricultural				Tax exempt loans				Total commercial and industrial
(in thousands)	Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
Grade:
Pass	$	225,251	$	226,353	$	20,905	$	21,680	$	67,374	$	56,588	$	313,530	$	304,621
Special mention	13,512		6,730		358		215		—		—		13,870		6,945
Substandard	5,037		924		384		422		—		—		5,421		1,346
Doubtful	715		750		—		—		—		—		715		750
Total	$	244,515	$	234,757	$	21,647	$	22,317	$	67,374	$	56,588	$	333,536	$	313,662

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, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
Performing	$	727,420	$	665,976	$	59,738	$	57,652	$	10,596	$	9,324	$	797,754	$	732,952
Nonperforming	4,023		4,213		585		246		82		90		4,690		4,549
Total	$	731,443	$	670,189	$	60,323	$	57,898	$	10,678	$	9,414	$	802,444	$	737,501

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, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
Grade:
Pass	$	2,579	$	2,626	$	220,959	$	236,393	$	223,538	$	239,019
Special mention	—		—		1,964		1,574		1,964		1,574
Substandard	279		264		6,263		6,009		6,542		6,273
Doubtful	—		—		168		99		168		99
Total	$	2,858	$	2,890	$	229,354	$	244,075	$	232,212	$	246,965

Commercial and Industrial

Credit Risk Profile by Creditworthiness Category

	Commercial				Agricultural				Tax exempt loans				Total commercial and industrial
(in thousands)	Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
Grade:
Pass	$	38,554	$	46,120	$	—	$	—	$	37,322	$	38,738	$	75,876	$	84,858
Special mention	5,819		4,825		—		—		—		—		5,819		4,825
Substandard	1,153		1,222		—		—		—		—		1,153		1,222
Doubtful	341		303		—		—		—		—		341		303
Total	$	45,867	$	52,470	$	—	$	—	$	37,322	$	38,738	$	83,189	$	91,208

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, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018		Jun 30, 2019		Dec 31, 2018
Performing	$	433,244	$	470,497	$	39,941	$	45,090	$	1,139	$	1,356	$	474,324	$	516,943
Nonperforming	3,072		4,012		194		201		—		1		3,266		4,214
Total	$	436,316	$	474,509	$	40,135	$	45,291	$	1,139	$	1,357	$	477,590	$	521,157

Summary of Information About Total Loans Rated Special Mention or Lower

The following table summarizes total classified and criticized loans as of June 30, 2019 and December 31, 2018:

	June 30, 2019						December 31, 2018
(in thousands)	Business Activities Loans		Acquired  Loans		Total		Business Activities Loans		Acquired  Loans		Total
Non-accrual	$	12,886	$	3,069	$	15,955	$	14,111	$	4,124	$	18,235
Substandard accruing	11,799		8,401		20,200		7,810		7,987		15,797
Doubtful accruing	—		—		—		—		—		—
Total classified	24,685		11,470		36,155		21,921		12,111		34,032
Special mention	25,902		7,783		33,685		15,337		6,399		21,736
Total Criticized	$	50,587	$	19,253	$	69,840	$	37,258	$	18,510	$	55,768