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LOANS (Tables)
 3 Months Ended
Mar. 31, 2019
LOANS [Abstract]  
Major Classifications of Loans
Major classifications of loans at March 31, 2019 and December 31, 2018 are summarized as follows:

  
2019
  
2018
 
Residential real estate
 
$
375,905
  
$
381,027
 
Multifamily real estate
  
52,929
   
54,016
 
Commercial real estate:
        
Owner occupied
  
138,366
   
138,209
 
Non-owner occupied
  
291,124
   
282,608
 
Commercial and industrial
  
106,383
   
103,624
 
Consumer
  
26,004
   
27,688
 
Construction and land
  
131,680
   
128,926
 
All other
  
33,483
   
33,203
 
  
$
1,155,874
  
$
1,149,301
 
Activity in the Allowance for Loan Losses by Portfolio Segment
Activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2019 was as follows:

Loan Class
 
Balance
Dec 31, 2018
  
Provision (credit) for loan losses
  
Loans charged-off
  
Recoveries
  
Balance
March 31, 2019
 
                
Residential real estate
 
$
1,808
  
$
42
  
$
(32
)
 
$
5
  
$
1,823
 
Multifamily real estate
  
1,649
   
(61
)
  
-
   
2
   
1,590
 
Commercial real estate:
                    
Owner occupied
  
2,120
   
236
   
(533
)
  
1
   
1,824
 
Non-owner occupied
  
3,058
   
400
   
(57
)
  
-
   
3,401
 
Commercial and industrial
  
1,897
   
(97
)
  
(110
)
  
31
   
1,721
 
Consumer
  
351
   
110
   
(107
)
  
11
   
365
 
Construction and land
  
2,255
   
(93
)
  
(13
)
  
-
   
2,149
 
All other
  
600
   
23
   
(51
)
  
34
   
606
 
Total
 
$
13,738
  
$
560
  
$
(903
)
 
$
84
  
$
13,479
 

Activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2018 was as follows:

Loan Class
 
Balance
Dec 31, 2017
  
Provision (credit) for loan losses
  
Loans charged-off
  
Recoveries
  
Balance
March 31, 2018
 
                
Residential real estate
 
$
2,986
  
$
(691
)
 
$
(49
)
 
$
16
  
$
2,262
 
Multifamily real estate
  
978
   
(320
)
  
(11
)
  
-
   
647
 
Commercial real estate:
                    
Owner occupied
  
1,653
   
164
   
(2
)
  
1
   
1,816
 
Non-owner occupied
  
2,313
   
(110
)
  
(16
)
  
-
   
2,187
 
Commercial and industrial
  
1,101
   
813
   
(267
)
  
4
   
1,651
 
Consumer
  
328
   
49
   
(33
)
  
25
   
369
 
Construction and land
  
2,408
   
913
   
(19
)
  
-
   
3,302
 
All other
  
337
   
297
   
(67
)
  
39
   
606
 
Total
 
$
12,104
  
$
1,115
  
$
(464
)
 
$
85
  
$
12,840
 
Purchased Impaired Loans
The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected.  The carrying amount of those loans is as follows at March 31, 2019 and December 31, 2018.

  
2019
  
2018
 
Residential real estate
 
$
2,655
  
$
2,665
 
Commercial real estate
        
Owner occupied
  
1,979
   
2,040
 
Non-owner occupied
  
3,142
   
3,434
 
Commercial and industrial
  
358
   
1,720
 
Construction and land
  
629
   
1,212
 
All other
  
229
   
225
 
Total carrying amount
 
$
8,992
  
$
11,296
 
Contractual principal balance
 
$
12,859
  
$
15,436
 
         
Carrying amount, net of allowance
 
$
8,992
  
$
11,296
 
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 at March 31, 2019 and March 31, 2018.

  
2019
  
2018
 
Balance at January 1
 
$
642
  
$
754
 
New loans purchased
  
-
   
-
 
Accretion of income
  
(53
)
  
(69
)
Loans placed on non-accrual
  
(14
)
  
(41
)
Income recognized upon full repayment
  
(42
)
  
-
 
Reclassifications from non-accretable difference
  
-
   
-
 
Disposals
  
-
   
-
 
Balance at March 31
 
$
533
  
$
644
 
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 March 31, 2019 and December 31, 2018.  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 and interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.

March 31, 2019
 
Principal Owed on Non-accrual Loans
  
Recorded Investment in Non-accrual Loans
  
Loans Past Due Over 90 Days, still accruing
 
          
Residential real estate
 
$
4,568
  
$
3,311
  
$
692
 
Multifamily real estate
  
4,127
   
3,849
   
-
 
Commercial real estate
            
Owner occupied
  
4,332
   
4,050
   
118
 
Non-owner occupied
  
5,890
   
4,726
   
362
 
Commercial and industrial
  
1,128
   
524
   
24
 
Consumer
  
225
   
187
   
-
 
Construction and land
  
1,346
   
1,345
   
13
 
All other
  
75
   
73
   
-
 
Total
 
$
21,691
  
$
18,065
  
$
1,209
 

December 31, 2018
 
Principal Owed on Non-accrual Loans
  
Recorded Investment in Non-accrual Loans
  
Loans Past Due Over 90 Days, still accruing
 
          
Residential real estate
 
$
4,966
  
$
3,708
  
$
954
 
Multifamily real estate
  
4,127
   
3,905
   
-
 
Commercial real estate
            
Owner occupied
  
3,692
   
3,436
   
56
 
Non-owner occupied
  
5,761
   
4,592
   
76
 
Commercial and industrial
  
1,303
   
625
   
-
 
Consumer
  
292
   
253
   
-
 
Construction and land
  
857
   
856
   
-
 
All other
  
75
   
73
   
-
 
Total
 
$
21,073
  
$
17,448
  
$
1,086
 
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 March 31, 2019 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
 
$
375,905
  
$
7,503
  
$
1,719
  
$
9,222
  
$
366,683
 
Multifamily real estate
  
52,929
   
-
   
111
   
111
   
52,818
 
Commercial real estate:
                    
Owner occupied
  
138,366
   
1,609
   
1,747
   
3,356
   
135,010
 
Non-owner occupied
  
291,124
   
461
   
3,674
   
4,135
   
286,989
 
Commercial and industrial
  
106,383
   
142
   
361
   
503
   
105,880
 
Consumer
  
26,004
   
149
   
52
   
201
   
25,803
 
Construction and land
  
131,680
   
288
   
833
   
1,121
   
130,559
 
All other
  
33,483
   
2
   
73
   
75
   
33,408
 
Total
 
$
1,155,874
  
$
10,154
  
$
8,570
  
$
18,724
  
$
1,137,150
 

The following table presents the aging of the recorded investment in past due loans as of December 31, 2018 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
 
$
381,027
  
$
7,078
  
$
2,594
  
$
9,672
  
$
371,355
 
Multifamily real estate
  
54,016
   
-
   
110
   
110
   
53,906
 
Commercial real estate:
                    
Owner occupied
  
138,209
   
124
   
2,601
   
2,725
   
135,484
 
Non-owner occupied
  
282,608
   
172
   
3,301
   
3,473
   
279,135
 
Commercial and industrial
  
103,624
   
2,235
   
262
   
2,497
   
101,127
 
Consumer
  
27,688
   
247
   
112
   
359
   
27,329
 
Construction and land
  
128,926
   
388
   
810
   
1,198
   
127,728
 
All other
  
33,203
   
546
   
73
   
619
   
32,584
 
Total
 
$
1,149,301
  
$
10,790
  
$
9,863
  
$
20,653
  
$
1,128,648
 
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method
The following table 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 March 31, 2019:

  
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
 
$
-
  
$
1,823
  
$
-
  
$
1,823
  
$
68
  
$
373,182
  
$
2,655
  
$
375,905
 
Multifamily real estate
  
1,231
   
359
   
-
   
1,590
   
3,849
   
49,080
   
-
   
52,929
 
Commercial real estate:
                                
Owner occupied
  
140
   
1,684
   
-
   
1,824
   
3,274
   
133,113
   
1,979
   
138,366
 
Non-owner occupied
  
299
   
3,102
   
-
   
3,401
   
10,174
   
277,808
   
3,142
   
291,124
 
Commercial and industrial
  
203
   
1,518
   
-
   
1,721
   
440
   
105,585
   
358
   
106,383
 
Consumer
  
-
   
365
   
-
   
365
   
-
   
26,004
   
-
   
26,004
 
Construction and land
  
106
   
2,043
       
2,149
   
1,332
   
129,719
   
629
   
131,680
 
All other
  
-
   
606
   
-
   
606
   
-
   
33,254
   
229
   
33,483
 
Total
 
$
1,979
  
$
11,500
  
$
-
  
$
13,479
  
$
19,137
  
$
1,127,745
  
$
8,992
  
$
1,155,874
 

The following table 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, 2018:

  
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
 
$
-
  
$
1,808
  
$
-
  
$
1,808
  
$
298
  
$
378,064
  
$
2,665
  
$
381,027
 
Multifamily real estate
  
1,281
   
368
   
-
   
1,649
   
3,905
   
50,111
   
-
   
54,016
 
Commercial real estate:
                                
Owner occupied
  
692
   
1,428
   
-
   
2,120
   
2,820
   
133,349
   
2,040
   
138,209
 
Non-owner occupied
  
267
   
2,791
   
-
   
3,058
   
10,111
   
269,063
   
3,434
   
282,608
 
Commercial and industrial
  
414
   
1,483
   
-
   
1,897
   
558
   
101,346
   
1,720
   
103,624
 
Consumer
  
-
   
351
   
-
   
351
   
-
   
27,688
   
-
   
27,688
 
Construction and land
  
142
   
2,113
   
-
   
2,255
   
1,351
   
126,363
   
1,212
   
128,926
 
All other
  
-
   
600
   
-
   
600
   
-
   
32,978
   
225
   
33,203
 
Total
 
$
2,796
  
$
10,942
  
$
-
  
$
13,738
  
$
19,043
  
$
1,118,962
  
$
11,296
  
$
1,149,301
 
Loans Individually Evaluated for Impairment by Class of Loans
The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2019.  The table includes $1,531,000 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
 
$
442
  
$
230
  
$
-
 
Multifamily real estate
  
110
   
110
   
-
 
Commercial real estate
            
Owner occupied
  
2,916
   
2,639
   
-
 
Non-owner occupied
  
8,552
   
7,830
   
-
 
Commercial and industrial
  
552
   
42
   
-
 
Construction and Land
  
821
   
821
   
-
 
   
13,393
   
11,672
   
-
 
With an allowance recorded:
            
Multifamily real estate
  
4,017
   
3,739
   
1,231
 
Commercial real estate
            
Owner occupied
  
1,548
   
1,540
   
140
 
Non-owner occupied
  
2,886
   
2,808
   
299
 
Commercial and industrial
  
403
   
398
   
203
 
Construction and land
  
511
   
511
   
106
 
   
9,365
   
8,996
   
1,979
 
Total
 
$
22,758
  
$
20,668
  
$
1,979
 

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2018.  The table includes $1,160,000 of loans acquired with deteriorated credit quality for which 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
 
$
426
  
$
298
  
$
-
 
Multifamily real estate
  
110
   
110
   
-
 
Commercial real estate
            
Owner occupied
  
1,305
   
1,092
   
-
 
Non-owner occupied
  
8,458
   
7,740
   
-
 
Commercial and industrial
  
531
   
-
   
-
 
Construction and land
  
786
   
786
   
-
 
   
11,616
   
10,026
   
-
 
With an allowance recorded:
            
Multifamily real estate
 
$
4,016
  
$
3,795
  
$
1,281
 
Commercial real estate
            
Owner occupied
  
2,523
   
2,478
   
692
 
Non-owner occupied
  
2,852
   
2,781
   
267
 
Commercial and industrial
  
562
   
558
   
414
 
Construction and land
  
565
   
565
   
142
 
   
10,518
   
10,177
   
2,796
 
Total
 
$
22,134
  
$
20,203
  
$
2,796
 
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized
The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three months ended March 31, 2019 and March 31, 2018.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

  
Three months ended March 31, 2019
  
Three months ended March 31, 2018
 
Loan Class
 
Average Recorded Investment
  
Interest Income Recognized
  
Cash Basis Interest Recognized
  
Average Recorded Investment
  
Interest Income Recognized
  
Cash Basis Interest Recognized
 
                   
Residential real estate
 
$
264
  
$
-
  
$
-
  
$
303
  
$
-
  
$
-
 
Multifamily real estate
  
3,877
   
-
   
-
   
2,444
   
9
   
-
 
Commercial real estate:
                        
Owner occupied
  
3,874
   
3
   
3
   
3,284
   
25
   
25
 
Non-owner occupied
  
10,580
   
94
   
91
   
10,521
   
136
   
136
 
Commercial and industrial
  
500
   
1
   
1
   
1,448
   
8
   
8
 
Construction and land
  
1,341
   
8
   
8
   
4,799
   
-
   
-
 
All other
  
-
   
-
   
-
   
291
   
4
   
4
 
Total
 
$
20,436
  
$
106
  
$
103
  
$
23,090
  
$
182
  
$
173
 
Troubled Debt Restructurings
The following table presents TDR’s as of March 31, 2019 and December 31, 2018:

March 31, 2019
 
TDR’s on
Non-accrual
  
Other TDR’s
  
Total TDR’s
 
          
Residential real estate
 
$
126
  
$
93
  
$
219
 
Multifamily real estate
  
3,739
   
-
   
3,739
 
Commercial real estate
            
Owner occupied
  
1,540
   
218
   
1,758
 
Non-owner occupied
  
-
   
5,946
   
5,946
 
Commercial and industrial
  
191
   
-
   
191
 
Total
 
$
5,596
  
$
6,257
  
$
11,853
 

December 31, 2018
 
TDR’s on
Non-accrual
  
Other TDR’s
  
Total TDR’s
 
          
Residential real estate
 
$
347
  
$
97
  
$
444
 
Multifamily real estate
  
3,795
   
-
   
3,795
 
Commercial real estate
            
Owner occupied
  
1,647
   
222
   
1,869
 
Non-owner occupied
  
-
   
5,964
   
5,964
 
Commercial and industrial
  
191
   
-
   
191
 
Total
 
$
5,980
  
$
6,283
  
$
12,263
 
Risk Category of Loans by Class of Loans
As of March 31, 2019, 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
 
$
364,956
  
$
1,624
  
$
9,163
  
$
162
  
$
375,905
 
Multifamily real estate
  
44,251
   
4,829
   
3,849
   
-
   
52,929
 
Commercial real estate:
                    
Owner occupied
  
126,681
   
4,391
   
7,294
   
-
   
138,366
 
Non-owner occupied
  
274,620
   
3,567
   
12,937
   
-
   
291,124
 
Commercial and industrial
  
102,187
   
3,111
   
1,085
   
-
   
106,383
 
Consumer
  
25,693
   
37
   
274
   
-
   
26,004
 
Construction and land
  
114,764
   
14,996
   
1,920
   
-
   
131,680
 
All other
  
33,163
   
247
   
73
   
-
   
33,483
 
Total
 
$
1,086,315
  
$
32,802
  
$
36,595
  
$
162
  
$
1,155,874
 

As of December 31, 2018, 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
 
$
369,808
  
$
1,376
  
$
9,681
  
$
162
  
$
381,027
 
Multifamily real estate
  
45,187
   
4,924
   
3,905
   
-
   
54,016
 
Commercial real estate:
                    
Owner occupied
  
126,422
   
4,840
   
6,947
   
-
   
138,209
 
Non-owner occupied
  
262,149
   
7,647
   
12,812
   
-
   
282,608
 
Commercial and industrial
  
96,066
   
5,280
   
2,278
   
-
   
103,624
 
Consumer
  
27,344
   
31
   
313
   
-
   
27,688
 
Construction and land
  
107,196
   
19,728
   
2,002
       
128,926
 
All other
  
32,749
   
381
   
73
   
-
   
33,203
 
Total
 
$
1,066,921
  
$
44,207
  
$
38,011
  
$
162
  
$
1,149,301