XML 36 R26.htm IDEA: XBRL DOCUMENT v3.19.2
Allowance for Loan Losses (Tables)
6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
Changes in Allowance for Loss Losses

The following table shows the change in the allowance for loss losses by loan segment for the three and six months ended June 30, 2019 and 2018, respectively:

 

Commercial

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

1,281

 

 

$

1,461

 

 

$

1,334

 

 

$

1,401

 

Provision for (recovery of) loan losses

 

 

(350

)

 

 

21

 

 

 

(414

)

 

 

66

 

Charge-offs

 

 

 

 

 

(31

)

 

 

(5

)

 

 

(31

)

Recoveries

 

 

341

 

 

 

9

 

 

 

357

 

 

 

24

 

Net (charge-offs) / Recoveries

 

 

341

 

 

 

(22

)

 

 

352

 

 

 

(7

)

Reclassification of reserve for off balance sheet commitments

 

 

(32

)

 

 

 

 

 

(32

)

 

 

 

Balance at end of period

 

$

1,240

 

 

$

1,460

 

 

$

1,240

 

 

$

1,460

 

 

Non-Commercial

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

952

 

 

$

1,086

 

 

$

1,040

 

 

$

1,057

 

Provision for (recovery of) loan losses

 

 

35

 

 

 

17

 

 

 

(14

)

 

 

50

 

Charge-offs

 

 

(12

)

 

 

(40

)

 

 

(65

)

 

 

(57

)

Recoveries

 

 

18

 

 

 

60

 

 

 

32

 

 

 

73

 

Net (charge-offs) / Recoveries

 

 

6

 

 

 

20

 

 

 

(33

)

 

 

16

 

Reclassification of reserve for off balance sheet commitments

 

 

(54

)

 

 

 

 

 

(54

)

 

 

 

Balance at end of period

 

$

939

 

 

$

1,123

 

 

$

939

 

 

$

1,123

 

 

Total

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

2,233

 

 

$

2,547

 

 

$

2,374

 

 

$

2,458

 

Provision for (recovery of) loan losses

 

 

(315

)

 

 

38

 

 

 

(428

)

 

 

116

 

Charge-offs

 

 

(12

)

 

 

(71

)

 

 

(70

)

 

 

(88

)

Recoveries

 

 

359

 

 

 

69

 

 

 

389

 

 

 

97

 

Net (charge-offs) / Recoveries

 

 

347

 

 

 

(2

)

 

 

319

 

 

 

9

 

Reclassification of reserve for off balance sheet commitments

 

 

(86

)

 

 

 

 

 

(86

)

 

 

 

Balance at end of period

 

$

2,179

 

 

$

2,583

 

 

$

2,179

 

 

$

2,583

 

 

Schedule of Loans and Reserve Balances by Loan Segment Both Individually and Collectively Evaluated for Impairment

The following table shows period-end loans and reserve balances by loan segment both individually and collectively evaluated for impairment at June 30, 2019 and December 31, 2018:

 

June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually Evaluated

 

 

Collectively Evaluated

 

 

Total

 

 

 

Reserve

 

 

Loans

 

 

Reserve

 

 

Loans

 

 

Reserve

 

 

Loans

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

29

 

 

$

1,774

 

 

$

1,211

 

 

$

224,782

 

 

$

1,240

 

 

$

226,556

 

Non-Commercial

 

 

126

 

 

 

3,218

 

 

 

813

 

 

 

144,792

 

 

 

939

 

 

 

148,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

155

 

 

$

4,992

 

 

$

2,024

 

 

$

369,574

 

 

$

2,179

 

 

$

374,566

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually Evaluated

 

 

Collectively Evaluated

 

 

Total

 

 

 

Reserve

 

 

Loans

 

 

Reserve

 

 

Loans

 

 

Reserve

 

 

Loans

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

42

 

 

$

1,359

 

 

$

1,292

 

 

$

217,592

 

 

$

1,334

 

 

$

218,951

 

Non-Commercial

 

 

112

 

 

 

3,119

 

 

 

928

 

 

 

147,900

 

 

 

1,040

 

 

 

151,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

154

 

 

$

4,478

 

 

$

2,220

 

 

$

365,492

 

 

$

2,374

 

 

$

369,970

 

Past Due Information of Loan Portfolio by Class

Past due loan information is used by management when assessing the adequacy of the allowance for loan losses. The following table summarizes the past due information of the loan portfolio by class:

 

June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

30-89 Days

Past Due

 

 

Loans

90 Days

or More

Past due

and Non -

Accrual

 

 

Total Past

Due Loans

 

 

Current

Loans

 

 

Total

Loans

 

 

Accruing

Loans 90 or

More Days

Past Due

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

46

 

 

$

 

 

$

46

 

 

$

61,406

 

 

$

61,452

 

 

$

 

Real estate - commercial

 

 

 

 

 

173

 

 

 

173

 

 

 

143,547

 

 

 

143,720

 

 

 

 

Other real estate construction

 

 

 

 

 

 

 

 

 

 

 

21,384

 

 

 

21,384

 

 

 

 

Real estate 1-4 family construction

 

 

 

 

 

 

 

 

 

 

 

6,906

 

 

 

6,906

 

 

 

 

Real estate - residential

 

 

767

 

 

 

760

 

 

 

1,527

 

 

 

73,765

 

 

 

75,292

 

 

 

 

Home equity

 

 

211

 

 

 

168

 

 

 

379

 

 

 

50,715

 

 

 

51,094

 

 

 

 

Consumer loans

 

 

32

 

 

 

 

 

 

32

 

 

 

12,674

 

 

 

12,706

 

 

 

 

Other loans

 

 

 

 

 

 

 

 

 

 

 

2,012

 

 

 

2,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,056

 

 

$

1,101

 

 

$

2,157

 

 

$

372,409

 

 

$

374,566

 

 

$

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

30-89 Days

Past Due

 

 

Loans

90 Days

or More

Past due

and Non -

Accrual

 

 

Total Past

Due Loans

 

 

Current

Loans

 

 

Total

Loans

 

 

Accruing

Loans 90 or

More Days

Past Due

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

54

 

 

$

 

 

$

54

 

 

$

57,122

 

 

$

57,176

 

 

$

 

Real estate - commercial

 

 

 

 

 

273

 

 

$

273

 

 

 

130,361

 

 

 

130,634

 

 

 

 

Other real estate construction

 

 

 

 

 

47

 

 

$

47

 

 

 

31,094

 

 

 

31,141

 

 

 

 

Real estate 1-4 family construction

 

 

 

 

 

 

 

 

 

 

 

7,805

 

 

 

7,805

 

 

 

 

Real estate - residential

 

 

890

 

 

 

606

 

 

 

1,496

 

 

 

74,908

 

 

 

76,404

 

 

 

 

Home equity

 

 

100

 

 

 

118

 

 

 

218

 

 

 

52,323

 

 

 

52,541

 

 

 

 

Consumer loan

 

 

86

 

 

 

 

 

 

86

 

 

 

12,073

 

 

 

12,159

 

 

 

 

Other loans

 

 

 

 

 

 

 

 

 

 

 

2,110

 

 

 

2,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,130

 

 

$

1,044

 

 

$

2,174

 

 

$

367,796

 

 

$

369,970

 

 

$

 

Composition of Nonaccrual Loans by Class

The composition of nonaccrual loans by class as of June 30, 2019 and December 31, 2018 is as follows:

 

 

 

June 30, 2019

 

 

December 31, 2018

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

 

 

$

 

Real estate - commercial

 

 

173

 

 

 

273

 

Other real estate construction

 

 

 

 

 

47

 

Real estate 1 – 4 family construction

 

 

 

 

 

 

Real estate – residential

 

 

760

 

 

 

606

 

Home equity

 

 

168

 

 

 

118

 

Consumer loans

 

 

 

 

 

 

Other loans

 

 

 

 

 

 

 

 

$

1,101

 

 

$

1,044

 

Summary of Risk Grades of Portfolio by Class

The tables below summarize risk grades of the loan portfolio by class at June 30, 2019 and December 31, 2018:

 

June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

Watch

 

 

Sub-

standard

 

 

Doubtful

 

 

Total

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

59,495

 

 

$

1,950

 

 

$

7

 

 

$

 

 

$

61,452

 

Real estate - commercial

 

 

137,847

 

 

 

4,426

 

 

 

1,447

 

 

 

 

 

 

143,720

 

Other real estate construction

 

 

19,205

 

 

 

1,866

 

 

 

313

 

 

 

 

 

 

21,384

 

Real estate 1 - 4 family construction

 

 

6,906

 

 

 

 

 

 

 

 

 

 

 

 

6,906

 

Real estate - residential

 

 

69,949

 

 

 

4,315

 

 

 

1,028

 

 

 

 

 

 

75,292

 

Home equity

 

 

49,986

 

 

 

940

 

 

 

168

 

 

 

 

 

 

51,094

 

Consumer loans

 

 

12,615

 

 

 

85

 

 

 

6

 

 

 

 

 

 

12,706

 

Other loans

 

 

2,012

 

 

 

 

 

 

 

 

 

 

 

 

2,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

358,015

 

 

$

13,582

 

 

$

2,969

 

 

$

 

 

$

374,566

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

Watch

 

 

Sub-

standard

 

 

Doubtful

 

 

Total

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

55,883

 

 

$

1,284

 

 

$

9

 

 

$

 

 

$

57,176

 

Real estate - commercial

 

 

127,592

 

 

 

1,518

 

 

 

1,524

 

 

 

 

 

 

130,634

 

Other real estate construction

 

 

28,711

 

 

 

2,070

 

 

 

360

 

 

 

 

 

 

31,141

 

Real estate 1 - 4 family construction

 

 

7,805

 

 

 

 

 

 

 

 

 

 

 

 

7,805

 

Real estate - residential

 

 

69,900

 

 

 

5,470

 

 

 

1,034

 

 

 

 

 

 

76,404

 

Home equity

 

 

52,028

 

 

 

395

 

 

 

118

 

 

 

 

 

 

52,541

 

Consumer loans

 

 

12,085

 

 

 

73

 

 

 

1

 

 

 

 

 

 

12,159

 

Other loans

 

 

2,110

 

 

 

 

 

 

 

 

 

 

 

 

2,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

356,114

 

 

$

10,810

 

 

$

3,046

 

 

$

 

 

$

369,970

 

Summary of Performing and Nonperforming Loans by Class The following tables show the breakdown between performing and nonperforming loans by class at June 30, 2019 and December 31, 2018:

 

June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

Non-

Performing

 

 

Total

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

61,452

 

 

$

 

 

$

61,452

 

Real estate - commercial

 

 

143,547

 

 

 

173

 

 

 

143,720

 

Other real estate construction

 

 

21,384

 

 

 

 

 

 

21,384

 

Real estate 1 – 4 family construction

 

 

6,906

 

 

 

 

 

 

6,906

 

Real estate – residential

 

 

74,532

 

 

 

760

 

 

 

75,292

 

Home equity

 

 

50,926

 

 

 

168

 

 

 

51,094

 

Consumer loans

 

 

12,706

 

 

 

 

 

 

12,706

 

Other loans

 

 

2,012

 

 

 

 

 

 

2,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

373,465

 

 

$

1,101

 

 

$

374,566

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

Non-

Performing

 

 

Total

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

57,176

 

 

$

 

 

$

57,176

 

Real estate - commercial

 

 

130,361

 

 

 

273

 

 

 

130,634

 

Other real estate construction

 

 

31,094

 

 

 

47

 

 

 

31,141

 

Real estate 1 – 4 family construction

 

 

7,805

 

 

 

 

 

 

7,805

 

Real estate – residential

 

 

75,798

 

 

 

606

 

 

 

76,404

 

Home equity

 

 

52,423

 

 

 

118

 

 

 

52,541

 

Consumer loans

 

 

12,159

 

 

 

 

 

 

12,159

 

Other loans

 

 

2,110

 

 

 

 

 

 

2,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

368,926

 

 

$

1,044

 

 

$

369,970

 

Summary of Loans Deemed Impaired and Specific Reserves Allocated by Class The tables below summarize the loans deemed impaired and the amount of specific reserves allocated by class at June 30, 2019 and December 31, 2018.

 

June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unpaid

Principal

Balance

 

 

Recorded

Investment

With No

Allowance

 

 

Recorded

Investment

With

Allowance

 

 

Related

Allowance

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

5

 

 

$

 

 

$

5

 

 

$

 

Real estate - commercial

 

 

1,724

 

 

 

536

 

 

 

1,188

 

 

 

26

 

Other real estate construction

 

 

45

 

 

 

 

 

 

45

 

 

 

3

 

Real estate 1 - 4 family construction

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - residential

 

 

3,023

 

 

 

1,023

 

 

 

2,000

 

 

 

97

 

Home equity

 

 

168

 

 

 

50

 

 

 

118

 

 

 

29

 

Consumer loans

 

 

27

 

 

 

 

 

 

27

 

 

 

 

Other loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

4,992

 

 

$

1,609

 

 

$

3,383

 

 

$

155

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unpaid

Principal

Balance

 

 

Recorded

Investment

With No

Allowance

 

 

Recorded

Investment

With

Allowance

 

 

Related

Allowance

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

7

 

 

$

 

 

$

7

 

 

$

 

Real estate - commercial

 

 

1,258

 

 

 

93

 

 

 

1,165

 

 

 

38

 

Other real estate construction

 

 

632

 

 

 

47

 

 

 

47

 

 

 

4

 

Real estate 1 - 4 family construction

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - residential

 

 

3,005

 

 

 

901

 

 

 

2,104

 

 

 

110

 

Home equity

 

 

83

 

 

 

51

 

 

 

32

 

 

 

1

 

Consumer loans

 

 

31

 

 

 

 

 

 

31

 

 

 

1

 

Other loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

5,016

 

 

$

1,092

 

 

$

3,386

 

 

$

154

 

 

 

 

Three Months ended June 30, 2019

 

 

Three Months ended June 30, 2018

 

 

 

Average

Recorded

Investment

 

 

Interest

Income

 

 

Average

Recorded

Investment

 

 

Interest

Income

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

6

 

 

$

 

 

$

25

 

 

$

 

Real estate - commercial

 

 

1,434

 

 

 

15

 

 

 

1,541

 

 

 

15

 

Other real estate construction

 

 

69

 

 

 

 

 

 

123

 

 

 

 

Real estate 1- 4 family construction

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - residential

 

 

2,975

 

 

 

33

 

 

 

3,540

 

 

 

41

 

Home equity

 

 

124

 

 

 

3

 

 

 

66

 

 

 

2

 

Consumer loans

 

 

28

 

 

 

 

 

 

38

 

 

 

 

Other loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

4,636

 

 

$

51

 

 

$

5,333

 

 

$

58

 

 

 

 

Six Months Ended June 30, 2019

 

 

Six Months Ended June 30, 2018

 

 

 

Average

Recorded

Investment

 

 

Interest

Income

 

 

Average

Recorded

Investment

 

 

Interest

Income

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

6

 

 

$

 

 

$

32

 

 

$

 

Real estate - commercial

 

 

1,375

 

 

 

35

 

 

 

1,566

 

 

 

30

 

Other real estate construction

 

 

77

 

 

 

1

 

 

 

132

 

 

 

2

 

Real estate 1- 4 family construction

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - residential

 

 

2,985

 

 

 

72

 

 

 

3,598

 

 

 

82

 

Home equity

 

 

110

 

 

 

4

 

 

 

55

 

 

 

2

 

Consumer loans

 

 

29

 

 

 

1

 

 

 

41

 

 

 

1

 

Other loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

4,582

 

 

$

113

 

 

$

5,424

 

 

$

117