XML 50 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
LOANS (Tables)
 12 Months Ended
Dec. 31, 2017
LOANS [Abstract]  
Major Classifications of Loans
Major classifications of loans at year-end are summarized as follows:

  
2017
  
2016
 
Residential real estate
 
$
338,829
  
$
342,294
 
Multifamily real estate
  
62,151
   
74,165
 
Commercial real estate:
        
Owner occupied
  
136,048
   
129,370
 
Non-owner occupied
  
230,702
   
220,836
 
Commercial and industrial
  
78,259
   
76,736
 
Consumer
  
28,293
   
30,916
 
Construction and land
  
139,012
   
117,828
 
All other
  
35,758
   
32,678
 
 Total
 
$
1,049,052
  
$
1,024,823
 
Analysis of Activity with Respect to all Director and Executive Officer Loans
An analysis of the 2017 activity with respect to all director and executive officer loans is as follows:

Balance, December 31, 2016
 
$
4,165
 
Additions, including loans now meeting disclosure requirements
  
469
 
Amounts collected and loans no longer meeting disclosure requirements
  
(1,217
)
Balance, December 31, 2017
 
$
3,417
 
Activity in the Allowance for Loan Losses by Portfolio Segment
Activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2017 was as follows:

Loan Class
 
Balance Dec 31, 2016
  
Provision (credit) for loan losses
  
Loans charged-off
  
Recoveries
  
Balance Dec 31, 2017
 
                
Residential real estate
 
$
2,948
  
$
439
  
$
(458
)
 
$
57
  
$
2,986
 
Multifamily real estate
  
785
   
693
   
(500
)
  
-
   
978
 
Commercial real estate:
                    
Owner occupied
  
1,543
   
(100
)
  
(32
)
  
242
   
1,653
 
Non-owner occupied
  
2,350
   
(27
)
  
(10
)
  
-
   
2,313
 
Commercial and industrial
  
1,140
   
51
   
(189
)
  
99
   
1,101
 
Consumer
  
347
   
132
   
(278
)
  
127
   
328
 
Construction and land
  
1,397
   
1,130
   
(129
)
  
10
   
2,408
 
All other
  
326
   
181
   
(307
)
  
137
   
337
 
Total
 
$
10,836
  
$
2,499
  
$
(1,903
)
 
$
672
  
$
12,104
 
 
Activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2016 was as follows:

Loan Class
 
Balance Dec 31, 2015
  
Provision (credit) for loan losses
  
Loans charged-off
  
Recoveries
  
Balance Dec 31, 2016
 
                
Residential real estate
 
$
2,501
  
$
608
  
$
(209
)
 
$
48
  
$
2,948
 
Multifamily real estate
  
821
   
(36
)
  
-
   
-
   
785
 
Commercial real estate:
                    
Owner occupied
  
1,509
   
46
   
(14
)
  
2
   
1,543
 
Non-owner occupied
  
2,070
   
380
   
(100
)
  
-
   
2,350
 
Commercial and industrial
  
1,033
   
136
   
(74
)
  
45
   
1,140
 
Consumer
  
307
   
294
   
(340
)
  
86
   
347
 
Construction and land
  
1,061
   
193
   
-
   
143
   
1,397
 
All other
  
345
   
127
 
  
(273
)
  
127
   
326
 
Total
 
$
9,647
  
$
1,748
  
$
(1,010
)
 
$
451
  
$
10,836
 

Activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2015 was as follows:

Loan Class
 
Balance Dec 31, 2014
  
Provision (credit) for loan losses
  
Loans charged-off
  
Recoveries
  
Balance Dec 31, 2015
 
                
Residential real estate
 
$
2,093
  
$
675
  
$
(359
)
 
$
92
  
$
2,501
 
Multifamily real estate
  
304
   
517
   
-
   
-
   
821
 
Commercial real estate:
                    
Owner occupied
  
1,501
   
23
   
(17
)
  
2
   
1,509
 
Non-owner occupied
  
2,316
   
(905
)
  
-
   
659
   
2,070
 
Commercial and industrial
  
1,444
   
(17
)
  
(403
)
  
9
   
1,033
 
Consumer
  
243
   
176
   
(209
)
  
97
   
307
 
Construction and land
  
1,744
   
118
   
(900
)
  
99
   
1,061
 
All other
  
702
   
(261
)
  
(208
)
  
112
   
345
 
Total
 
$
10,347
  
$
326
  
$
(2,096
)
 
$
1,070
  
$
9,647
 
Purchased Loans
The carrying amount of those loans is as follows at December 31, 2017 and December 31, 2016.

  
2017
  
2016
 
Residential real estate
 
$
1,321
  
$
1,619
 
Commercial real estate
        
Owner occupied
  
1,508
   
2,013
 
Non-owner occupied
  
-
   
5,396
 
Commercial and industrial
  
211
   
232
 
Construction and land
  
1,450
   
1,602
 
All other
  
286
   
459
 
Total carrying amount
 
$
4,776
  
$
11,321
 
Contractual principal balance
 
$
6,728
  
$
14,784
 
         
Carrying amount, net of allowance
 
$
4,676
  
$
11,311
 
Purchase Loans Accretable Yield, or Income Expected to be Collected
The accretable yield, or income expected to be collected, on the purchased loans above is as follows the three years ended December 31, 2017.

  
2017
  
2016
  
2015
 
Balance at January 1
 
$
1,208
  
$
185
  
$
204
 
New loans purchased
  
-
   
1,151
   
-
 
Accretion of income
  
(249
)
  
(128
)
  
(19
)
Income recognized upon full repayment
  
(205
)  
-
   
-
 
Reclassifications from non-accretable difference
  
-
   
-
   
-
 
Disposals
  
-
   
-
   
-
 
Balance at December 31
 
$
754
  
$
1,208
  
$
185
 
Past Due and Non-performing Loans
The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2017 and December 31, 2016.  The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition or interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.

December 31, 2017
 
Principal Owed on Non-accrual Loans
  
Recorded Investment in Non-accrual Loans
  
Loans Past Due Over 90 Days, still accruing
 
          
Residential real estate
 
$
2,944
  
$
2,422
  
$
869
 
Multifamily real estate
  
2,128
   
2,128
   
334
 
Commercial real estate
            
Owner occupied
  
2,623
   
2,483
   
134
 
Non-owner occupied
  
1,862
   
1,755
   
85
 
Commercial and industrial
  
1,313
   
544
   
1,139
 
Consumer
  
268
   
241
   
-
 
Construction and land
  
5,824
   
5,673
   
830
 
Total
 
$
16,962
  
$
15,246
  
$
3,391
 

December 31, 2016
 
Principal Owed on Non-accrual Loans
  
Recorded Investment in Non-accrual Loans
  
Loans Past Due Over 90 Days, still accruing
 
          
Residential real estate
 
$
3,467
  
$
2,794
  
$
606
 
Multifamily real estate
  
11,157
   
11,106
   
334
 
Commercial real estate
            
Owner occupied
  
1,769
   
1,704
   
15
 
Non-owner occupied
  
294
   
196
   
36
 
Commercial and industrial
  
2,537
   
1,209
   
1,008
 
Consumer
  
366
   
347
   
-
 
Construction and land
  
8,408
   
8,391
   
-
 
Total
 
$
27,998
  
$
25,747
  
$
1,999
 
Aging of Recorded Investment in Past Due Loans by Loan Class
The following table presents the aging of the recorded investment in past due loans as of December 31, 2017 by class of loans:
 
Loan Class
 
Total Loans
  
30-89 Days Past Due
  
Greater than 90 days past due
  
Total Past Due
  
Loans Not Past Due
 
                
Residential real estate
 
$
338,829
  
$
5,242
  
$
1,835
  
$
7,077
  
$
331,752
 
Multifamily real estate
  
62,151
   
-
   
334
   
334
   
61,817
 
Commercial real estate:
                    
Owner occupied
  
136,048
   
311
   
1,784
   
2,095
   
133,953
 
Non-owner occupied
  
230,702
   
12
   
225
   
237
   
230,465
 
Commercial and industrial
  
78,259
   
123
   
1,611
   
1,734
   
76,525
 
Consumer
  
28,293
   
492
   
87
   
579
   
27,714
 
Construction and land
  
139,012
   
144
   
2,508
   
2,652
   
136,360
 
All other
  
35,758
   
-
   
-
   
-
   
35,758
 
Total
 
$
1,049,052
  
$
6,324
  
$
8,384
  
$
14,708
  
$
1,034,344
 

The following table presents the aging of the recorded investment in past due loans as of December 31, 2016 by class of loans:
 
Loan Class
 
Total Loans
  
30-89 Days Past Due
  
Greater than 90 days past due
  
Total Past Due
  
Loans Not Past Due
 
                
Residential real estate
 
$
342,294
  
$
6,113
  
$
1,596
  
$
7,709
  
$
334,585
 
Multifamily real estate
  
74,165
   
-
   
11,440
   
11,440
   
62,725
 
Commercial real estate:
                    
Owner occupied
  
129,370
   
1,746
   
1,474
   
3,220
   
126,150
 
Non-owner occupied
  
220,836
   
1,803
   
159
   
1,962
   
218,874
 
Commercial and industrial
  
76,736
   
330
   
2,120
   
2,450
   
74,286
 
Consumer
  
30,916
   
403
   
223
   
626
   
30,290
 
Construction and land
  
117,828
   
259
   
8,187
   
8,446
   
109,382
 
All other
  
32,678
   
318
   
-
   
318
   
32,360
 
Total
 
$
1,024,823
  
$
10,972
  
$
25,199
  
$
36,171
  
$
988,652
 
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method
The following tables presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2017 and December 31, 2016:
 
December 31, 2017
 
Allowance for Loan Losses
  
Loan Balances
 
Loan Class
 
Individually Evaluated for Impairment
  
Collectively Evaluated for Impairment
  
Acquired with Deteriorated Credit Quality
  
Total
  
Individually Evaluated for Impairment
  
Collectively Evaluated for Impairment
  
Acquired with Deteriorated Credit Quality
  
Total
 
                         
Residential real estate
 
$
-
  
$
2,986
  
$
-
  
$
2,986
  
$
308
  
$
337,200
  
$
1,321
  
$
338,829
 
Multifamily real estate
  
218
   
760
   
-
   
978
   
2,462
   
59,689
   
-
   
62,151
 
Commercial real estate:
                                
Owner occupied
  
307
   
1,346
   
-
   
1,653
   
3,314
   
131,226
   
1,508
   
136,048
 
Non-owner occupied
  
88
   
2,225
   
-
   
2,313
   
11,578
   
219,124
   
-
   
230,702
 
Commercial and industrial
  
104
   
897
   
100
   
1,101
   
1,304
   
76,744
   
211
   
78,259
 
Consumer
  
-
   
328
   
-
   
328
   
-
   
28,293
   
-
   
28,293
 
Construction and land
  
685
   
1,723
   
-
   
2,408
   
5,672
   
131,890
   
1,450
   
139,012
 
All other
  
-
   
337
   
-
   
337
   
293
   
35,179
   
286
   
35,758
 
Total
 
$
1,402
  
$
10,602
  
$
100
  
$
12,104
  
$
24,931
  
$
1,019,345
  
$
4,776
  
$
1,049,052
 

December 31, 2016
 
Allowance for Loan Losses
  
Loan Balances
 
Loan Class
 
Individually Evaluated for Impairment
  
Collectively Evaluated for Impairment
  
Acquired with Deteriorated Credit Quality
  
Total
  
Individually Evaluated for Impairment
  
Collectively Evaluated for Impairment
  
Acquired with Deteriorated Credit Quality
  
Total
 
                         
Residential real estate
 
$
-
  
$
2,948
  
$
-
  
$
2,948
  
$
379
  
$
340,296
  
$
1,619
  
$
342,294
 
Multifamily real estate
  
-
   
785
   
-
   
785
   
13,641
   
60,524
   
-
   
74,165
 
Commercial real estate:
                                
Owner occupied
  
244
   
1,299
   
-
   
1,543
   
2,801
   
124,556
   
2,013
   
129,370
 
Non-owner occupied
  
-
   
2,350
   
-
   
2,350
   
2,373
   
213,067
   
5,396
   
220,836
 
Commercial and industrial
  
266
   
864
   
10
   
1,140
   
1,418
   
75,086
   
232
   
76,736
 
Consumer
  
-
   
347
   
-
   
347
   
-
   
30,916
   
-
   
30,916
 
Construction and land
  
86
   
1,311
   
-
   
1,397
   
12,665
   
103,561
   
1,602
   
117,828
 
All other
  
-
   
326
   
-
   
326
   
311
   
31,908
   
459
   
32,678
 
Total
 
$
596
  
$
10,230
  
$
10
  
$
10,836
  
$
33,588
  
$
979,914
  
$
11,321
  
$
1,024,823
 
Loans Individually Evaluated for Impairment by Class of Loans
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2017.  The table includes $199 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.

  
Unpaid Principal Balance
  
Recorded Investment
  
Allowance for Loan Losses Allocated
 
With no related allowance recorded:
         
Residential real estate
 
$
446
  
$
308
  
$
-
 
Multifamily real estate
  
334
   
334
   
-
 
Commercial real estate
            
Owner occupied
  
2,451
   
2,439
   
-
 
Non-owner occupied
  
9,602
   
9,506
   
-
 
Commercial and industrial
  
1,719
   
1,188
   
-
 
Construction and land
  
1,798
   
1,678
   
-
 
All other
  
293
   
293
   
-
 
   
16,643
   
15,746
   
-
 
With an allowance recorded:
            
Multifamily real estate
 
$
2,128
  
$
2,128
  
$
218
 
Commercial real estate
            
Owner occupied
  
895
   
875
   
307
 
Non-owner occupied
  
2,072
   
2,072
   
88
 
Commercial and industrial
  
466
   
315
   
204
 
Construction and land
  
4,024
   
3,994
   
685
 
   
9,585
   
9,384
   
1,502
 
Total
 
$
26,228
  
$
25,130
  
$
1,502
 
 
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2016.  The table includes $208 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.

  
Unpaid Principal Balance
  
Recorded Investment
  
Allowance for Loan Losses Allocated
 
With no related allowance recorded:
         
Residential real estate
 
$
743
  
$
379
  
$
-
 
Multifamily real estate
  
13,692
   
13,641
   
-
 
Commercial real estate
            
Owner occupied
  
1,803
   
1,766
   
-
 
Non-owner occupied
  
2,465
   
2,373
   
-
 
Commercial and industrial
  
2,429
   
1,338
   
-
 
Construction and land
  
9,557
   
9,542
   
-
 
All other
  
311
   
311
   
-
 
   
31,000
   
29,350
   
-
 
With an allowance recorded:
            
Commercial real estate
            
Owner occupied
 
$
1,055
  
$
1,035
  
$
244
 
Commercial and industrial
  
431
   
288
   
276
 
Construction and land
  
3,124
   
3,123
   
86
 
   
4,610
   
4,446
   
606
 
Total
 
$
35,610
  
$
33,796
  
$
606
 
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized
The following table presents by loan class, the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three years ended December 31, 2017.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

  
Year ended Dec 31, 2017
  
Year ended Dec 31, 2016
  
Year ended Dec 31, 2015
 
Loan Class
 
Average Recorded Investment
  
Interest Income Recognized
  
Cash Basis Interest Recognized
  
Average Recorded Investment
  
Interest Income Recognized
  
Cash Basis Interest Recognized
  
Average Recorded Investment
  
Interest Income Recognized
  
Cash Basis Interest Recognized
 
                            
Residential real estate
 
$
333
  
$
3
  
$
3
  
$
566
  
$
21
  
$
18
  
$
378
  
$
11
  
$
11
 
Multifamily real estate
  
11,376
   
262
   
246
   
3,993
   
198
   
181
   
855
   
685
   
685
 
Commercial real estate:
                                    
Owner occupied
  
3,335
   
74
   
74
   
1,475
   
19
   
16
   
1,015
   
28
   
27
 
Non-owner occupied
  
4,680
   
213
   
213
   
4,527
   
314
   
314
   
4,942
   
180
   
180
 
Commercial and industrial
  
1,480
   
123
   
123
   
1,249
   
36
   
35
   
810
   
26
   
26
 
Construction and land
  
7,804
   
314
   
309
   
5,010
   
211
   
19
   
3,989
   
56
   
56
 
All other
  
302
   
18
   
18
   
147
   
8
   
8
   
34
   
-
   
-
 
Total
 
$
29,310
  
$
1,007
  
$
986
  
$
16,967
  
$
807
  
$
591
  
$
12,023
  
$
986
  
$
985
 
Troubled Debt Restructurings
The following table presents TDR's as of December 31, 2017 and 2016:

December 31, 2017
 
TDR's on Non-accrual
  
Other TDR's
  
Total TDR's
 
          
Residential real estate
 
$
393
  
$
107
  
$
500
 
Multifamily real estate
  
2,128
   
-
   
2,128
 
Commercial real estate
            
Owner occupied
  
601
   
1,783
   
2,384
 
Non-owner occupied
  
-
   
9,904
   
9,904
 
Commercial and industrial
  
56
   
497
   
553
 
Construction and land
  
3,994
   
-
   
3,994
 
All other
  
-
   
293
   
293
 
Total
 
$
7,172
  
$
12,584
  
$
19,756
 

December 31, 2016
 
TDR's on Non-accrual
  
Other TDR's
  
Total TDR's
 
          
Residential real estate
 
$
129
  
$
464
  
$
593
 
Multifamily real estate
  
-
   
2,201
   
2,201
 
Commercial real estate
            
Owner occupied
  
-
   
856
   
856
 
Commercial and industrial
  
62
   
352
   
414
 
Construction and land
  
751
   
4,084
   
4,835
 
All other
  
-
   
311
   
311
 
Total
 
$
942
  
$
8,268
  
$
9,210
 
Troubled Debt Restructuring During the Period
The following table presents TDR's that occurred during the years ended December 31, 2017 and 2016.

  
Year ended December 31, 2017
  
Year ended December 31, 2016
 
Loan Class
 
Number of Loans
  
Pre-Modification Outstanding Recorded Investment
  
Post-Modification Outstanding Recorded Investment
  
Number of Loans
  
Pre-Modification Outstanding Recorded Investment
  
Post-Modification Outstanding Recorded Investment
 
                   
Residential real estate
  
1
  
$
82
  
$
82
   
8
  
$
483
  
$
483
 
Commercial real estate
                        
Owner occupied
  
2
   
1,525
   
1,525
   
3
   
865
   
865
 
Non-owner occupied
  
3
   
9,913
   
9,913
   
1
   
100
   
100
 
Commercial and industrial
  
1
   
191
   
191
   
1
   
20
   
20
 
Construction and land
  
-
   
-
   
-
   
1
   
4,106
   
4,106
 
Total
  
7
  
$
11,711
  
$
11,711
   
14
  
$
5,574
  
$
5,574
 
Risk Category of Loans by Class of Loans
As of December 31, 2017, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class
 
Pass
  
Special Mention
  
Substandard
  
Doubtful
  
Total Loans
 
                
Residential real estate
 
$
327,185
  
$
667
  
$
10,976
  
$
1
  
$
338,829
 
Multifamily real estate
  
55,084
   
4,605
   
2,462
   
-
   
62,151
 
Commercial real estate:
                    
Owner occupied
  
124,244
   
4,937
   
6,867
   
-
   
136,048
 
Non-owner occupied
  
216,079
   
2,428
   
12,195
   
-
   
230,702
 
Commercial and industrial
  
70,078
   
5,851
   
2,330
   
-
   
78,259
 
Consumer
  
27,889
   
-
   
404
   
-
   
28,293
 
Construction and land
  
126,323
   
5,460
   
7,229
   
-
   
139,012
 
All other
  
34,468
   
795
   
495
   
-
   
35,758
 
                     
Total
 
$
981,350
  
$
24,743
  
$
42,958
  
$
1
  
$
1,049,052
 

As of December 31, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class
 
Pass
  
Special Mention
  
Substandard
  
Doubtful
  
Total Loans
 
                
Residential real estate
 
$
328,905
  
$
4,880
  
$
8,507
  
$
2
  
$
342,294
 
Multifamily real estate
  
59,375
   
78
   
14,712
   
-
   
74,165
 
Commercial real estate:
                    
Owner occupied
  
118,134
   
6,720
   
4,516
   
-
   
129,370
 
Non-owner occupied
  
213,641
   
4,391
   
2,804
   
-
   
220,836
 
Commercial and industrial
  
72,094
   
2,337
   
2,275
   
30
   
76,736
 
Consumer
  
30,369
   
242
   
305
   
-
   
30,916
 
Construction and land
  
103,719
   
1,072
   
13,037
   
-
   
117,828
 
All other
  
31,226
   
886
   
566
   
-
   
32,678
 
                     
Total
 
$
957,463
  
$
20,606
  
$
46,722
  
$
32
  
$
1,024,823