LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)

6 Months Ended

Jun. 30, 2019

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES


	June 30,			December 31,
	2019			2018
(dollars in thousands)	Amount		%	Amount		%
Consumer	$	12,259	4	$	13,071	4
Residential real estate		81,213	28		82,637	28
Indirect		110,716	38		116,698	39
Commercial		12,065	4		14,284	5
Construction		2,886	1		2,317	1
Commercial real estate		72,098	25		70,113	23
Loans, net of deferred fees and costs		291,237	100		299,120	100
Less: Allowance for loan losses		(2,459)			(2,541)
Loans, net	$	288,778		$	296,579

Schedule of total allowance by loan segment



June 30, 2019			Residential								Commercial
(dollars in thousands)	Consumer		Real Estate		Indirect		Commercial		Construction		Real Estate		Total

Balance, beginning of year	$	161	$	864	$	988	$	241	$	4	$	283	$	2,541
Charge-offs		(69)		(16)		(323)		(27)		—		—		(435)
Recoveries		12		—		127		10		—		—		149
Provision for loan losses		49		(177)		220		16		1		95		204

Balance, end of quarter	$	153	$	671	$	1,012	$	240	$	5	$	378	$	2,459

Individually evaluated for impairment:
Balance in allowance	$	16	$	—	$	—	$	200	$	—	$	—	$	216
Related loan balance		154		784		—		284		—		1,202		2,424

Collectively evaluated for impairment:
Balance in allowance	$	137	$	671	$	1,012	$	40	$	5	$	378	$	2,243
Related loan balance		12,105		80,429		110,716		11,781		2,886		70,896		288,813



December 31, 2018			Residential								Commercial
(dollars in thousands)	Consumer		Real Estate		Indirect		Commercial		Construction		Real Estate		Total

Balance, beginning of year	$	214	$	1,061	$	774	$	237	$	12	$	291	$	2,589
Charge-offs		(208)		(589)		(341)		—		—		(13)		(1,151)
Recoveries		48		2		183		14		—		—		247
Provision for loan losses		107		390		372		(10)		(8)		5		856

Balance, end of year	$	161	$	864	$	988	$	241	$	4	$	283	$	2,541

Individually evaluated for impairment:
Balance in allowance	$	22	$	—	$	—	$	204	$	—	$	—	$	226
Related loan balance		138		854		—		204		—		1,054		2,250

Collectively evaluated for impairment:
Balance in allowance	$	139	$	864	$	988	$	37	$	4	$	283	$	2,315
Related loan balance		12,933		81,783		116,698		14,080		2,317		69,059		296,870

Schedule of allowances for credit losses


	June 30,			June 30,
(dollars in thousands)	2019			2018
Average loans	$	295,425		$	281,104
Net charge offs to average loans (annualized)		0.24	%		0.48	%

Schedule of reserve for unfunded commitments


	Six Months Ended
	Ended June 30,
(dollars in thousands)	2019		2018
Beginning balance	$	35	$	24
Reduction of unfunded reserve		(23)		(18)
Provisions charged to operations		—		37

Ending balance	$	12	$	43

Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans


At June 30, 2019					90 Days or
(dollars in thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total

Consumer	$	11,988	$	55	$	—	$	216	$	12,259
Residential Real Estate		80,305		2		23		883		81,213
Indirect		110,166		520		—		30		110,716
Commercial		11,979		—		—		86		12,065
Construction		2,886		—		—		—		2,886
Commercial Real Estate		68,795		—		—		3,303		72,098

	$	286,119	$	577	$	23	$	4,518	$	291,237


At December 31, 2018					90 Days or
(dollars in thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total

Consumer	$	12,669	$	216	$	—	$	186	$	13,071
Residential Real Estate		80,923		732		26		956		82,637
Indirect		115,890		692		—		116		116,698
Commercial		14,171		86		—		27		14,284
Construction		2,317		—		—		—		2,317
Commercial Real Estate		69,451		—		—		662		70,113

	$	295,421	$	1,726	$	26	$	1,947	$	299,120

Schedule of impaired financing receivables


June 30, 2019			Unpaid		Interest				Average
(dollars in thousands)	Recorded		Principal		Income		Specific		Recorded
	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Consumer	$	83	$	83	$	1	$	16	$	134
Commercial		284		284		7		200		288
Total impaired loans with specific reserves		367		367		8		216		422


Impaired loans with no specific reserve:
Consumer	$	132	$	132	$	2	$	n/a	$	75
Residential Real Estate		821		1,589		4		n/a		1,921
Indirect		30		30		—		n/a		—
Commercial Real Estate		3,881		3,881		21		n/a		1,294
Total impaired loans with no specific reserve	$	4,864	$	5,632	$	27		—	$	3,290


December 31, 2018			Unpaid		Interest				Average
(dollars in thousands)	Recorded		Principal		Income		Specific		Recorded
	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Consumer	$	89	$	89	$	3	$	22	$	136
Commercial		204		204		12		204		211
Total impaired loans with specific reserves		294		294		15		226		347

Impaired loans with no specific reserve:
Consumer	$	96	$	300	$	2		n/a	$	50
Residential Real Estate		956		1,545		4		n/a		1,981
Indirect		116		457		—		n/a		—
Commercial Real Estate		1,267		1,267		39		n/a		1,148
Total impaired loans with no specific reserve	$	2,435	$	3,569	$	45		—	$	3,179

Schedule of allowance for loan loss and the unearned income on loans


	June 30,			December 31,
(dollars in thousands)	2019			2018

Troubled debt restructured loans	$	241		$	248
Non-accrual and 90+ days past due and still accruing loans to average loans		1.61	%		0.73	%
Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans		54.0	%		128.7	%

Schedule of non accrual loans



		Residential				Commercial
(dollars in thousands)	Consumer	Real Estate	Indirect	Commercial	Construction	Real Estate	Totals

December 31, 2017	185	2,124	88	48	318	507	3,270
Transfers into nonaccrual	44	183	305	—	—	2,000	2,532
Loans paid down/payoffs	(15)	(41)	(51)	(48)	(8)	(136)	(299)
Loans returned to accrual status	—	—	(50)	—	—	—	(50)
Loans charged off	(92)	(513)	(163)	—	—	—	(768)

June 30, 2018	122	1,753	129	—	310	2,371	4,685


December 31, 2018	186	956	116	27	—	662	1,947
Transfers into nonaccrual	134	571	334	86	—	2,746	3,871
Loans paid down/payoffs	(16)	(628)	(21)	—	—	(105)	(770)
Loans returned to accrual status	(48)	—	(102)	—	—	—	(150)
Loans charged off	(40)	(16)	(297)	(27)	—	—	(380)

June 30, 2019	216	883	30	86	—	3,303	4,518

Schedule of risk ratings of loans by categories of loans

The following tables provides information with respect to the Company's credit quality indicators by loan portfolio segment at June 30, 2019 and December 31, 2018:



June 30, 2019			Residential								Commercial
(dollars in thousands)	Consumer		Real Estate		Indirect		Commercial		Construction		Real Estate		Total

Pass	$	12,044	$	80,392	$	110,686	$	11,781	$	2,886	$	68,217	$	286,006
Special mention		—		—		—		—		—		—		—
Substandard		215		821		5		284		—		3,881		5,206
Doubtful		—		—		25		—		—		—		25
Loss		—		—		—		—		—		—		—

	$	12,259	$	81,213	$	110,716	$	12,065	$	2,886	$	72,098	$	291,237

Nonaccrual	$	216	$	883	$	30	$	86	$	—	$	3,303	$	4,518
Troubled debt restructures	$	42	$	—	$	—	$	199	$	—	$	—	$	241
Number of TDRs accounts		1		—		—		1		—		—		2
Non-performing TDRs	$	42	$	—	$	—	$	—	$	—	$	—	$	42
Number of non-performing TDR accounts		1		—		—		—		—		—		1



December 31, 2018			Residential								Commercial
(dollars in thousands)	Consumer		Real Estate		Indirect		Commercial		Construction		Real Estate		Total

Pass	$	12,888	$	82,111	$	115,724	$	14,284	$	2,317	$	69,900	$	297,224
Special mention		—		424		645		—		—		—		1,069
Substandard		183		102		244		—		—		213		742
Doubtful		—		—		85		—		—		—		85
Loss		—		—		—		—		—		—		—

	$	13,071	$	82,637	$	116,698	$	14,284	$	2,317	$	70,113	$	299,120

Nonaccrual	$	186	$	956	$	116	$	27	$	—	$	662	$	1,947
Troubled debt restructures	$	44	$	—	$	—	$	204	$	—	$	—	$	248
Number of TDRs accounts		1		—		—		1		—		—		2
Non-performing TDRs	$	44	$	—	$	—	$	—	$	—	$	—	$	44
Number of non-performing TDR accounts		1		—		—		—		—		—		1