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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale
The composition of the Company’s loan portfolio, excluding residential loans held for sale, at December 31, 2017 and 2016 was as follows:
 
December 31,
  
2017
 
2016
Residential real estate loans
$
858,369

 
$
802,494

Commercial real estate loans
1,164,023

 
1,050,780

Commercial loans
373,400

 
333,639

Home equity loans
323,378

 
329,907

Consumer loans
18,149

 
17,332

HPFC
45,120

 
60,412

Total loans
$
2,782,439

 
$
2,594,564
Schedule of Loan Balances for Each Portfolio Segment
The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs totaling:
 
 
December 31,
 
 
2017
 
2016
Net unamortized fair value mark discount on acquired loans
 
$
6,207

 
$
8,810

Net unamortized loan origination costs
 
(963
)
 
(66
)
Total
 
$
5,244

 
$
8,744
Schedule of Loans Made to Related Parties
Loans, including any unused lines of credit, to related parties were as follows:
 
December 31,
  
2017
 
2016
Balance at beginning of year
$
15,942

 
$
16,628

Loans made/advanced and additions
230

 
434

Repayments and reductions
(3,032
)
 
(1,120
)
Balance at end of year
$
13,140

 
$
15,942
Activity in Allowance for Loan Losses by Portfolio Segment
The following table presents the activity in the ALL and select loan information by portfolio segment for the year ended December 31, 2017, 2016, and 2015:
 
Residential Real Estate
 
Commercial Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
HPFC
 
Unallocated
 
Total
For The Year Ended
  December 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Beginning balance
$
4,160

 
$
12,154

 
$
3,755

 
$
2,194

 
$
181

 
$
672

 
$
—

 
$
23,116

Loans charged off
(482
)
 
(124
)
 
(1,014
)
 
(434
)
 
(124
)
 
(290
)
 
—

 
(2,468
)
Recoveries
30

 
141

 
301

 
2

 
17

 
6

 
—

 
497

Provision (credit)(1)
1,378

 
(308
)
 
1,129

 
605

 
159

 
63

 
—

 
3,026

Ending balance
$
5,086

 
$
11,863

 
$
4,171

 
$
2,367

 
$
233

 
$
451

 
$
—

 
$
24,171

ALL balance attributable loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
568

 
$
1,441

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
2,009

Collectively evaluated for impairment
4,518

 
10,422

 
4,171

 
2,367

 
233

 
451

 
—

 
22,162

Total ending ALL
$
5,086

 
$
11,863

 
$
4,171

 
$
2,367

 
$
233

 
$
451

 
$
—

 
$
24,171

Loans:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Individually evaluated for impairment
$
5,171

 
$
6,199

 
$
1,791

 
$
429

 
$
—

 
$
—

 
$
—

 
$
13,590

Collectively evaluated for impairment
853,198

 
1,157,824

 
371,609

 
322,949

 
18,149

 
45,120

 
—

 
2,768,849

Total loan balances
$
858,369

 
$
1,164,023

 
$
373,400

 
$
323,378

 
$
18,149

 
$
45,120

 
$
—

 
$
2,782,439

For The Year Ended
  December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Beginning balance
$
4,545

 
$
10,432

 
$
3,241

 
$
2,731

 
$
193

 
$
24

 
$
—

 
$
21,166

Loans charged off
(356
)
 
(315
)
 
(2,218
)
 
(308
)
 
(101
)
 
(507
)
 
—

 
(3,805
)
Recoveries
95

 
50

 
332

 
2

 
7

 
—

 
—

 
486

Provision (credit)(1)
(124
)
 
1,987

 
2,400

 
(231
)
 
82

 
1,155

 
—

 
5,269

Ending balance
$
4,160

 
$
12,154

 
$
3,755

 
$
2,194

 
$
181

 
$
672

 
$
—

 
$
23,116

ALL balance attributable loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
483

 
$
1,373

 
$
—

 
$
86

 
$
—

 
$
65

 
$
—

 
$
2,007

Collectively evaluated for impairment
3,677

 
10,781

 
3,755

 
2,108

 
181

 
607

 
—

 
21,109

Total ending ALL
$
4,160

 
$
12,154

 
$
3,755

 
$
2,194

 
$
181

 
$
672

 
$
—

 
$
23,116

Loans:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Individually evaluated for impairment
$
4,348

 
$
13,317

 
$
2,028

 
$
457

 
$
7

 
$
97

 
$
—

 
$
20,254

Collectively evaluated for impairment
798,146

 
1,037,463

 
331,611

 
329,450

 
17,325

 
60,315

 
—

 
2,574,310

Total loan balances
$
802,494

 
$
1,050,780

 
$
333,639

 
$
329,907

 
$
17,332

 
$
60,412

 
$
—

 
$
2,594,564

 
Residential Real Estate
 
Commercial Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
HPFC
 
Unallocated
 
Total
For The Year Ended December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Beginning balance
$
4,899

 
$
7,951

 
$
3,354

 
$
2,247

 
$
281

 
$
—

 
$
2,384

 
$
21,116

Loans charged off
(801
)
 
(481
)
 
(655
)
 
(525
)
 
(154
)
 
—

 
—

 
(2,616
)
Recoveries
55

 
74

 
389

 
188

 
22

 
—

 
—

 
728

Provision (credit)(1)
392

 
2,888

 
153

 
821

 
44

 
24

 
(2,384
)
 
1,938

Ending balance
$
4,545

 
$
10,432

 
$
3,241

 
$
2,731

 
$
193

 
$
24

 
$
—

 
$
21,166

ALL balance attributable loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
544

 
$
644

 
$
92

 
$
89

 
$
—

 
$
—

 
$
—

 
$
1,369

Collectively evaluated for impairment
4,001

 
9,788

 
3,149

 
2,642

 
193

 
24

 
—

 
19,797

Total ending ALL
$
4,545

 
$
10,432

 
$
3,241

 
$
2,731

 
$
193

 
$
24

 
$
—

 
$
21,166

Loans:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Individually evaluated for impairment
$
6,026

 
$
4,610

 
$
3,937

 
$
588

 
$
74

 
$
—

 
$
—

 
$
15,235

Collectively evaluated for impairment
814,591

 
923,341

 
293,784

 
348,046

 
17,879

 
77,330

 
—

 
2,474,971

Total loan balances
$
820,617

 
$
927,951

 
$
297,721

 
$
348,634

 
$
17,953

 
$
77,330

 
$
—

 
$
2,490,206


(1)
The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At December 31, 2017, 2016, and 2015, the reserve for unfunded commitments was $20,000, $11,000 and $22,000, respectively.
Schedule of Provision for Credit Losses
The following table reconciles the year ended December 31, 2017, 2016, and 2015 provision for loan losses to the provision for credit losses as presented on the consolidated statement of income:
 
 
 
For the Year Ended
December 31,
 
 
 
2017
 
2016
 
2015
Provision for loan losses
 
 
$
3,026

 
$
5,269

 
$
1,938

Change in reserve for unfunded commitments
 
 
9

 
(11
)
 
(2
)
Provision for credit losses
 
 
$
3,035

 
$
5,258

 
$
1,936
Credit Risk Exposure Indicators by Portfolio Segment
The following table summarizes credit risk exposure indicators by portfolio segment as of the following dates:
 
 
Residential Real Estate
 
Commercial Real Estate
 
Commercial
 
Home Equity
 
Consumer
 
HPFC
 
Total
December 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass (Grades 1 – 6)
 
$
846,394

 
$
1,130,235

 
$
354,904

 
$
—

 
$
—

 
$
43,049

 
$
2,374,582

Performing
 
—

 
—

 
—

 
321,727

 
18,149

 
—

 
339,876

Special Mention (Grade 7)
 
922

 
9,154

 
12,517

 
—

 
—

 
191

 
22,784

Substandard (Grade 8)
 
11,053

 
24,634

 
5,979

 
—

 
—

 
1,880

 
43,546

Non-performing
 
—

 
—

 
—

 
1,651

 
—

 
—

 
1,651

Total
 
$
858,369

 
$
1,164,023

 
$
373,400

 
$
323,378

 
$
18,149

 
$
45,120

 
$
2,782,439

December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass (Grades 1 – 6)
 
$
789,554

 
$
1,003,386

 
$
321,148

 
$
—

 
$
—

 
$
58,943

 
$
2,173,031

Performing
 
—

 
—

 
—

 
328,287

 
17,328

 
—

 
345,615

Special Mention (Grade 7)
 
2,387

 
5,724

 
5,598

 
—

 
—

 
257

 
13,966

Substandard (Grade 8)
 
10,553

 
41,670

 
5,437

 
—

 
—

 
1,212

 
58,872

Doubtful (Grade 9)
 
—

 
—

 
1,456

 
—

 
—

 
—

 
1,456

Non-performing
 
—

 
—

 
—

 
1,620

 
4

 
—

 
1,624

Total
 
$
802,494

 
$
1,050,780

 
$
333,639

 
$
329,907

 
$
17,332

 
$
60,412

 
$
2,594,564
Loan Aging Analysis by Portfolio Segment (Including Loans Past Due Over Ninety Days and Non Accrual Loans) and Summary of Non Accrual Loans, Which Include Troubled Debt Restructured Loans, and Loans Past Due Over Ninety Days and Accruing
The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include TDRs, and loans past due over 90 days and accruing as of the following dates:
 
30 –  59 Days Past Due
 
60 – 89 Days Past Due
 
Greater Than 90 Days
 
Total Past Due
 
Current
 
Total Loans Outstanding
 
Loans > 90 Days Past Due and Accruing
 
Non-Accrual Loans
December 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
3,871

 
$
1,585

 
$
4,021

 
$
9,477

 
$
848,892

 
$
858,369

 
$
—

 
$
4,979

Commercial real estate
849

 
323

 
5,528

 
6,700

 
1,157,323

 
1,164,023

 
—

 
5,642

Commercial
329

 
359

 
1,535

 
2,223

 
371,177

 
373,400

 
—

 
2,000

Home equity
1,046

 
173

 
1,329

 
2,548

 
320,830

 
323,378

 
—

 
1,650

Consumer
57

 
10

 
—

 
67

 
18,082

 
18,149

 
—

 
—

HPFC
139

 
1,372

 
419

 
1,930

 
43,190

 
45,120

 
—

 
1,043

Total
$
6,291

 
$
3,822

 
$
12,832

 
$
22,945

 
$
2,759,494

 
$
2,782,439

 
$
—

 
$
15,314

December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,783

 
$
924

 
$
2,904

 
$
5,611

 
$
796,883

 
$
802,494

 
$
—

 
$
3,945

Commercial real estate
855

 
223

 
12,625

 
13,703

 
1,037,077

 
1,050,780

 
—

 
12,849

Commercial
633

 
218

 
1,675

 
2,526

 
331,113

 
333,639

 
—

 
2,088

Home equity
892

 
134

 
1,321

 
2,347

 
327,560

 
329,907

 
—

 
1,620

Consumer
38

 
—

 
4

 
42

 
17,290

 
17,332

 
—

 
4

HPFC
438

 
688

 
110

 
1,236

 
59,176

 
60,412

 
—

 
207

Total
$
4,639

 
$
2,187

 
$
18,639

 
$
25,465

 
$
2,569,099

 
$
2,594,564

 
$
—

 
$
20,713
Troubled Debt Restructuring and Specific Reserve Related to TDRs
The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ALL as of December 31:
 
 
Number of Contracts
 
Recorded Investment
 
Specific Reserve
 
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Residential real estate
 
24

 
21

 
$
3,604

 
$
3,221

 
$
452

 
$
483

Commercial real estate
 
3

 
3

 
976

 
1,008

 
16

 
—

Commercial
 
7

 
10

 
1,345

 
1,502

 
—

 
—

Consumer and home equity
 
2

 
1

 
307

 
16

 
—

 
—

Total
 
36

 
35

 
$
6,232

 
$
5,747

 
$
468

 
$
483
Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment
The following represents loan modifications that occurred for the year ended December 31, 2017, 2016 and 2015 that qualify as TDRs and the type of loan modification made by portfolio segment at December 31:
 
 
Number of Contracts
 
Pre-Modification
Outstanding
Recorded Investment
 
Post-Modification
Outstanding
Recorded Investment
 
Specific Reserve
 
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Residential real estate:
 


 


 
 
 


 


 
 
 


 


 
 
 


 


 
 
Maturity concession
 
2

 
—

 
—

 
$
298

 
$
—

 
$
—

 
$
298

 
$
—

 
$
—

 
$
15

 
$
—

 
$
—

Court ordered
 
—

 
—

 
1

 
—

 
—

 
74

 
—

 
—

 
78

 
—

 
—

 
27

Interest rate concession
 
1

 
—

 
—

 
134

 
—

 
—

 
145

 
—

 
—

 
—

 
—

 
—

Interest rate and maturity concession
 
1

 
—

 
—

 
148

 
—

 
—

 
156

 
—

 
—

 
30

 
—

 
—

Commercial:
 


 


 
 
 


 


 
 
 


 


 
 
 


 


 
 
Maturity concession
 
—

 
6

 
—

 
—

 
2,973

 
—

 
—

 
2,973

 
—

 
—

 
1,400

 
—

Home equity:
 


 


 
 
 


 


 
 
 


 


 
 
 


 


 
 
Interest rate and maturity concession
 
1

 
—

 
—

 
315

 
—

 
—

 
315

 
—

 
—

 
—

 
—

 
—

Total
 
5

 
6

 
1

 
$
895

 
$
2,973

 
$
74

 
$
914

 
$
2,973


$
78

 
$
45

 
$
1,400

 
$
27
Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment
The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for the year ended December 31, 2017, 2016 and 2015:
 
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
Average Recorded Investment
 
Interest Income Recognized
December 31, 2017:
 
 
 
 
 
 
 
 
 
 
With related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
$
3,858

 
$
3,858

 
$
568

 
$
3,177

 
$
131

Commercial real estate
 
5,422

 
5,422

 
1,441

 
8,900

 
22

Commercial
 
—

 
—

 
—

 
31

 
—

Home equity
 
—

 
—

 
—

 
125

 
—

Consumer
 
—

 
—

 
—

 
—

 
—

HPFC
 
—

 
—

 
—

 
24

 
—

Ending balance
 
9,280

 
9,280

 
2,009

 
12,257

 
153

Without related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
1,313

 
1,673

 
—

 
1,345

 
15

Commercial real estate
 
777

 
1,084

 
—

 
1,132

 
29

Commercial
 
1,791

 
2,964

 
—

 
1,920

 
10

Home equity
 
429

 
495

 
—

 
310

 
8

Consumer
 
—

 
—

 
—

 
2

 
—

HPFC
 
—

 
—

 
—

 
—

 
—

Ending balance
 
4,310

 
6,216

 
—

 
4,709

 
62

Total impaired loans
 
$
13,590

 
$
15,496

 
$
2,009

 
$
16,966

 
$
215

December 31, 2016:
 
 
 
 
 
 
 
 
 
 
With related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
$
3,019

 
$
3,019

 
$
483

 
$
3,088

 
$
106

Commercial real estate
 
11,443

 
11,443

 
1,373

 
5,165

 
—

Commercial
 
—

 
—

 
—

 
762

 
—

Home equity
 
299

 
299

 
86

 
305

 
—

Consumer
 
—

 
—

 
—

 
—

 
—

HPFC
 
97

 
97

 
65

 
98

 
—

Ending balance
 
14,858

 
14,858

 
2,007

 
9,418

 
106

Without related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
1,329

 
1,800

 
—

 
2,057

 
9

Commercial real estate
 
1,874

 
2,369

 
—

 
2,214

 
51

Commercial
 
2,028

 
3,209

 
—

 
2,507

 
16

Home equity
 
158

 
368

 
—

 
180

 
—

Consumer
 
7

 
10

 
—

 
12

 
—

HPFC
 
—

 
—

 
—

 
—

 
—

Ending balance
 
5,396

 
7,756

 
—

 
6,970

 
76

Total impaired loans
 
$
20,254

 
$
22,614

 
$
2,007

 
$
16,388

 
$
182

 
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
Average Recorded Investment
 
Interest Income Recognized
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
With related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
$
3,191

 
$
3,191

 
$
544

 
$
6,064

 
$
112

Commercial real estate
 
1,825

 
1,857

 
644

 
1,753

 
—

Commercial
 
156

 
156

 
92

 
945

 
2

Home equity
 
303

 
303

 
89

 
900

 
—

Consumer
 
—

 
—

 
—

 
195

 
—

HPFC
 
—

 
—

 
—

 
—

 
—

Ending balance
 
5,475

 
5,507

 
1,369

 
9,857

 
114

Without related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
2,835

 
4,353

 
—

 
2,175

 
8

Commercial real estate
 
2,785

 
3,426

 
—

 
2,719

 
65

Commercial
 
3,781

 
4,325

 
—

 
1,412

 
17

Home equity
 
285

 
688

 
—

 
369

 
—

Consumer
 
74

 
150

 
—

 
20

 
—

HPFC
 
—

 
—

 
—

 
—

 
—

Ending balance
 
9,760

 
12,942

 
—

 
6,695

 
90

Total impaired loans
 
$
15,235

 
$
18,449

 
$
1,369

 
$
16,552

 
$
204