Quarterly report pursuant to Section 13 or 15(d)

LOANS (Tables)

v3.10.0.1
LOANS (Tables)
6 Months Ended
Jun. 30, 2018
LOANS [Abstract]  
Portfolio Loans
Portfolio loans were as follows (dollars in thousands):
 
   
June 30,
2018
   
December 31,
2017
 
Commercial and industrial
 
$
458,468
   
$
465,208
 
                 
Commercial real estate:
               
Residential developed
   
13,901
     
11,888
 
Unsecured to residential developers
   
2,517
     
2,332
 
Vacant and unimproved
   
36,268
     
39,752
 
Commercial development
   
738
     
1,103
 
Residential improved
   
83,223
     
90,467
 
Commercial improved
   
299,766
     
298,714
 
Manufacturing and industrial
   
110,588
     
97,679
 
Total commercial real estate
   
547,001
     
541,935
 
                 
Consumer
               
Residential mortgage
   
238,419
     
224,452
 
Unsecured
   
190
     
226
 
Home equity
   
76,787
     
82,234
 
Other secured
   
6,821
     
6,254
 
Total consumer
   
322,217
     
313,166
 
                 
Total loans
   
1,327,686
     
1,320,309
 
Allowance for loan losses
   
(16,695
)
   
(16,600
)
   
$
1,310,991
   
$
1,303,709
 
Activity in Allowance for Loan Losses by Portfolio Segment
Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands):

Three months ended June 30, 2018
 
Commercial
and
Industrial
   
Commercial
Real Estate
   
Consumer
   
Unallocated
   
Total
 
Beginning balance
 
$
6,506
   
$
6,532
   
$
3,603
   
$
34
   
$
16,675
 
Charge-offs
   
---
     
---
     
(30
)
   
---
     
(30
)
Recoveries
   
55
     
257
     
38
     
---
     
350
 
Provision for loan losses
   
(412
)
   
87
     
40
     
(15
)
   
(300
)
Ending Balance
 
$
6,149
   
$
6,876
   
$
3,651
   
$
19
   
$
16,695
 
 
Three months ended June 30, 2017
 
Commercial
and
Industrial
   
Commercial
Real Estate
   
Consumer
   
Unallocated
   
Total
 
Beginning balance
 
$
6,469
   
$
6,598
   
$
3,591
   
$
38
   
$
16,696
 
Charge-offs
   
(108
)
   
---
     
(31
)
   
---
     
(139
)
Recoveries
   
41
     
456
     
16
     
---
     
513
 
Provision for loan losses
   
(66
)
   
(471
)
   
45
     
(8
)
   
(500
)
Ending Balance
 
$
6,336
   
$
6,583
   
$
3,621
   
$
30
   
$
16,570
 
 
Six months ended June 30, 2018
 
Commercial
and
Industrial
   
Commercial
Real Estate
   
Consumer
   
Unallocated
   
Total
 
Beginning balance
 
$
6,478
   
$
6,590
   
$
3,494
   
$
38
   
$
16,600
 
Charge-offs
   
(66
)
   
---
     
(60
)
   
---
     
(126
)
Recoveries
   
89
     
460
     
72
     
---
     
621
 
Provision for loan losses
   
(352
)
   
(174
)
   
145
     
(19
)
   
(400
)
Ending Balance
 
$
6,149
   
$
6,876
   
$
3,651
   
$
19
   
$
16,695
 
 
Six months ended June 30, 2017
 
Commercial
and
Industrial
   
Commercial
Real Estate
   
Consumer
   
Unallocated
   
Total
 
Beginning balance
 
$
6,345
   
$
6,703
   
$
3,871
   
$
43
   
$
16,962
 
Charge-offs
   
(108
)
   
---
     
(57
)
   
---
     
(165
)
Recoveries
   
64
     
618
     
91
     
---
     
773
 
Provision for loan losses
   
35
     
(738
)
   
(284
)
   
(13
)
   
(1,000
)
Ending Balance
 
$
6,336
   
$
6,583
   
$
3,621
   
$
30
   
$
16,570
 
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 (dollars in thousands):

 
June 30, 2018
 
Commercial
and
Industrial
   
Commercial
Real Estate
   
Consumer
   
Unallocated
   
Total
 
Allowance for loan losses:
                             
Ending allowance attributable to loans:
                             
Individually reviewed for impairment
 
$
306
   
$
325
   
$
524
   
$
---
   
$
1,155
 
Collectively evaluated for impairment
   
5,843
     
6,551
     
3,127
     
19
     
15,540
 
Total ending allowance balance
 
$
6,149
   
$
6,876
   
$
3,651
   
$
19
   
$
16,695
 
Loans:
                                       
Individually reviewed for impairment
 
$
2,558
   
$
5,235
   
$
7,025
   
$
---
   
$
14,818
 
Collectively evaluated for impairment
   
455,910
     
541,766
     
315,192
     
---
     
1,312,868
 
Total ending loans balance
 
$
458,468
   
$
547,001
   
$
322,217
   
$
---
   
$
1,327,686
 
 
 
December 31, 2017
 
Commercial
and
Industrial
   
Commercial
Real Estate
   
Consumer
   
Unallocated
   
Total
 
Allowance for loan losses:
                             
Ending allowance attributable to loans:
                             
Individually reviewed for impairment
 
$
497
   
$
197
   
$
514
   
$
---
   
$
1,208
 
Collectively evaluated for impairment
   
5,981
     
6,393
     
2,980
     
38
     
15,392
 
Total ending allowance balance
 
$
6,478
   
$
6,590
   
$
3,494
   
$
38
   
$
16,600
 
Loans:
                                       
Individually reviewed for impairment
 
$
6,402
   
$
7,332
   
$
8,345
   
$
---
   
$
22,079
 
Collectively evaluated for impairment
   
458,806
     
534,603
     
304,821
     
---
     
1,298,230
 
Total ending loans balance
 
$
465,208
   
$
541,935
   
$
313,166
   
$
---
   
$
1,320,309
 
Loans Individually Evaluated for Impairment by Class of Loans
The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2018 (dollars in thousands):
 
 
June 30, 2018
 
Unpaid
Principal
Balance
   
Recorded
Investment
   
Allowance
Allocated
 
With no related allowance recorded:
                 
Commercial and industrial
 
$
954
   
$
954
   
$
---
 
                         
Commercial real estate:
                       
Residential developed
   
---
     
---
     
---
 
Unsecured to residential developers
   
---
     
---
     
---
 
Vacant and unimproved
   
136
     
136
     
---
 
Commercial development
   
---
     
---
     
---
 
Residential improved
   
894
     
894
     
---
 
Commercial improved
   
1,730
     
1,730
     
---
 
Manufacturing and industrial
   
---
     
---
     
---
 
     
2,760
     
2,760
     
---
 
Consumer:
                       
Residential mortgage
   
---
     
---
     
---
 
Unsecured
   
---
     
---
     
---
 
Home equity
   
---
     
---
     
---
 
Other secured
   
---
     
---
     
---
 
     
---
     
---
     
---
 
Total with no related allowance recorded
 
$
3,714
   
$
3,714
   
$
---
 
                         
With an allowance recorded:
                       
Commercial and industrial
 
$
1,604
   
$
1,604
   
$
306
 
                         
Commercial real estate:
                       
Residential developed
   
175
     
175
     
2
 
Unsecured to residential developers
   
---
     
---
     
---
 
Vacant and unimproved
   
116
     
116
     
3
 
Commercial development
   
---
     
---
     
---
 
Residential improved
   
208
     
208
     
14
 
Commercial improved
   
1,580
     
1,580
     
296
 
Manufacturing and industrial
   
396
     
396
     
10
 
 
   
2,475
     
2,475
     
325
 
Consumer:
                       
Residential mortgage
   
5,753
     
5,753
     
429
 
Unsecured
   
---
     
---
     
---
 
Home equity
   
1,272
     
1,272
     
95
 
Other secured
   
---
     
---
     
---
 
     
7,025
     
7,025
     
524
 
Total with an allowance recorded
 
$
11,104
   
$
11,104
   
$
1,155
 
Total
 
$
14,818
   
$
14,818
   
$
1,155
 

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2017 (dollars in thousands):
 
 
December 31, 2017
 
Unpaid
Principal
Balance
   
Recorded
Investment
   
Allowance
Allocated
 
With no related allowance recorded:
                 
Commercial and industrial
 
$
3,438
   
$
3,438
   
$
---
 
                         
Commercial real estate:
                       
Residential developed
   
---
     
---
     
---
 
Unsecured to residential developers
   
---
     
---
     
---
 
Vacant and unimproved
   
---
     
---
     
---
 
Commercial development
   
190
     
190
     
---
 
Residential improved
   
15
     
15
     
---
 
Commercial improved
   
---
     
---
     
---
 
Manufacturing and industrial
   
---
     
---
     
---
 
     
205
     
205
     
---
 
Consumer:
                       
Residential mortgage
   
---
     
---
     
---
 
Unsecured
   
---
     
---
     
---
 
Home equity
   
---
     
---
     
---
 
Other secured
   
---
     
---
     
---
 
     
---
     
---
     
---
 
Total with no related allowance recorded
 
$
3,643
   
$
3,643
   
$
---
 
                         
With an allowance recorded:
                       
Commercial and industrial
 
$
2,964
   
$
2,964
   
$
497
 
                         
Commercial real estate:
                       
Residential developed
   
179
     
179
     
4
 
Unsecured to residential developers
   
---
     
---
     
---
 
Vacant and unimproved
   
126
     
126
     
3
 
Commercial development
   
---
     
---
     
---
 
Residential improved
   
1,715
     
1,715
     
69
 
Commercial improved
   
4,928
     
4,928
     
119
 
Manufacturing and industrial
   
179
     
179
     
2
 
     
7,127
     
7,127
     
197
 
Consumer:
                       
Residential mortgage
   
6,638
     
6,638
     
409
 
Unsecured
   
---
     
---
     
---
 
Home equity
   
1,707
     
1,707
     
105
 
Other secured
   
---
     
---
     
---
 
     
8,345
     
8,345
     
514
 
Total with an allowance recorded
 
$
18,436
   
$
18,436
   
$
1,208
 
Total
 
$
22,079
   
$
22,079
   
$
1,208
 
Average Balances of Impaired Loans and Interest Recognized on Impaired Loans
The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the three and six month periods ended June 30, 2018 and 2017 (dollars in thousands):
 
   
Three
Months
Ended
June 30,
2018
   
Three
Months
Ended
June 30,
2017
   
Six
Months
Ended
June 30,
2018
   
Six
Months
Ended
June 30,
2017
 
Average of impaired loans during the period:
                       
Commercial and industrial
 
$
3,959
   
$
5,342
   
$
5,872
   
$
6,093
 
                                 
Commercial real estate:
                               
Residential developed
   
176
     
183
     
177
     
184
 
Unsecured to residential developers
   
---
     
---
     
---
     
---
 
Vacant and unimproved
   
254
     
262
     
211
     
320
 
Commercial development
   
---
     
189
     
63
     
189
 
Residential improved
   
1,175
     
2,665
     
1,315
     
3,376
 
Commercial improved
   
3,327
     
5,995
     
3,529
     
6,077
 
Manufacturing and industrial
   
399
     
327
     
326
     
276
 
                                 
Consumer
   
7,487
     
10,812
     
7,777
     
11,153
 
                                 
                                 
Interest income recognized during impairment:
                               
Commercial and industrial
   
215
     
239
     
517
     
517
 
Commercial real estate
   
61
     
125
     
135
     
252
 
Consumer
   
70
     
118
     
155
     
226
 
                                 
Cash-basis interest income recognized
                               
Commercial and industrial
   
230
     
266
     
524
     
531
 
Commercial real estate
   
50
     
126
     
129
     
249
 
Consumer
   
65
     
120
     
152
     
227
 
Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days Still on Accrual by Class of 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 June 30, 2018 and December 31, 2017 (dollars in thousands):

June 30, 2018
 
Nonaccrual
   
Over 90
days
Accruing
 
             
Commercial and industrial
 
$
2
   
$
---
 
                 
Commercial real estate:
               
Residential developed
   
---
     
---
 
Unsecured to residential developers
   
---
     
---
 
Vacant and unimproved
   
---
     
---
 
Commercial development
   
---
     
---
 
Residential improved
   
15
     
---
 
Commercial improved
   
106
     
---
 
Manufacturing and industrial
   
---
     
---
 
     
121
     
---
 
Consumer:
               
Residential mortgage
   
2
     
---
 
Unsecured
   
---
     
---
 
Home equity
   
---
     
---
 
Other secured
   
---
     
---
 
     
2
     
---
 
Total
 
$
125
   
$
---
 
 
 
December 31, 2017
 
Nonaccrual
   
Over 90
days
Accruing
 
             
Commercial and industrial
 
$
4
   
$
---
 
                 
Commercial real estate:
               
Residential developed
   
---
     
---
 
Unsecured to residential developers
   
---
     
---
 
Vacant and unimproved
   
---
     
---
 
Commercial development
   
190
     
---
 
Residential improved
   
89
     
---
 
Commercial improved
   
106
     
---
 
Manufacturing and industrial
   
---
     
---
 
     
385
     
---
 
Consumer:
               
Residential mortgage
   
2
     
---
 
Unsecured
   
4
     
---
 
Home equity
   
---
     
---
 
Other secured
   
---
     
---
 
     
6
     
---
 
Total
 
$
395
   
$
---
 
Aging of Recorded Investment in Past Due Loans by Class of Loans
The following table presents the aging of the recorded investment in past due loans as of June 30, 2018 and December 31, 2017 by class of loans (dollars in thousands):
 
 
June 30, 2018
 
30-90
Days
   
Greater Than
90 Days
   
Total
Past Due
   
Loans Not
Past Due
   
Total
 
Commercial and industrial
 
$
70
   
$
---
   
$
70
   
$
458,398
   
$
458,468
 
                                         
Commercial real estate:
                                       
Residential developed
   
---
     
---
     
---
     
13,901
     
13,901
 
Unsecured to residential developers
   
---
     
---
     
---
     
2,517
     
2,517
 
Vacant and unimproved
   
---
     
---
     
---
     
36,268
     
36,268
 
Commercial development
   
---
     
---
     
---
     
738
     
738
 
Residential improved
   
---
     
15
     
15
     
83,208
     
83,223
 
Commercial improved
   
10
     
106
     
116
     
299,650
     
299,766
 
Manufacturing and industrial
   
---
     
---
     
---
     
110,588
     
110,588
 
     
10
     
121
     
131
     
546,870
     
547,001
 
Consumer:
                                       
Residential mortgage
   
174
     
---
     
174
     
238,245
     
238,419
 
Unsecured
   
---
     
---
     
---
     
190
     
190
 
Home equity
   
150
     
---
     
150
     
76,637
     
76,787
 
Other secured
   
---
     
---
     
---
     
6,821
     
6,821
 
     
324
     
---
     
324
     
321,893
     
322,217
 
Total
 
$
404
   
$
121
   
$
525
   
$
1,327,161
   
$
1,327,686
 
 
 
December 31, 2017
 
30-90
Days
   
Greater Than
90 Days
   
Total
Past Due
   
Loans Not
Past Due
   
Total
 
Commercial and industrial
 
$
290
   
$
---
   
$
290
   
$
464,918
   
$
465,208
 
                                         
Commercial real estate:
                                       
Residential developed
   
---
     
---
     
---
     
11,888
     
11,888
 
Unsecured to residential developers
   
---
     
---
     
---
     
2,332
     
2,332
 
Vacant and unimproved
   
---
     
---
     
---
     
39,752
     
39,752
 
Commercial development
   
---
     
190
     
190
     
913
     
1,103
 
Residential improved
   
---
     
89
     
89
     
90,378
     
90,467
 
Commercial improved
   
125
     
---
     
125
     
298,589
     
298,714
 
Manufacturing and industrial
   
---
     
---
     
---
     
97,679
     
97,679
 
     
125
     
279
     
404
     
541,531
     
541,935
 
Consumer:
                                       
Residential mortgage
   
215
     
---
     
215
     
224,237
     
224,452
 
Unsecured
   
10
     
---
     
10
     
216
     
226
 
Home equity
   
76
     
---
     
76
     
82,158
     
82,234
 
Other secured
   
---
     
---
     
---
     
6,254
     
6,254
 
     
301
     
---
     
301
     
312,865
     
313,166
 
Total
 
$
716
   
$
279
   
$
995
   
$
1,319,314
   
$
1,320,309
 
Troubled Debt Restructurings
The following table presents information regarding troubled debt restructurings as of June 30, 2018 and December 31, 2017 (dollars in thousands):
 
   
June 30, 2018
   
December 31, 2017
 
   
Number of
Loans
   
Outstanding
Recorded
Balance
   
Number of
Loans
   
Outstanding
Recorded
Balance
 
Commercial and industrial
   
18
   
$
2,559
     
19
   
$
6,402
 
Commercial real estate
   
30
     
5,235
     
33
     
7,332
 
Consumer
   
88
     
7,024
     
99
     
8,345
 
     
136
   
$
14,818
     
151
   
$
22,079
 

The following table presents information related to accruing troubled debt restructurings as of June 30, 2018 and December 31, 2017.  The table presents the amount of accruing troubled debt restructurings that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of each period reported (dollars in thousands):

   
June 30,
2018
   
December 31,
2017
 
Accruing TDR - nonaccrual at restructuring
 
$
---
   
$
---
 
Accruing TDR - accruing at restructuring
   
13,434
     
16,809
 
Accruing TDR - upgraded to accruing after six consecutive payments
   
1,261
     
4,955
 
   
$
14,695
   
$
21,764
 

The following tables present information regarding troubled debt restructurings executed during the three month periods ended June 30, 2018 and 2017 (dollars in thousands):

 
Three Months Ended June 30,
2018
   
Three Months Ended June 30,
2017
 
   
# of
Loans
   
Pre-TDR
Balance
   
Writedown
Upon
TDR
   
# of
Loans
   
Pre-TDR
Balance
   
Writedown
Upon
TDR
 
Commercial and industrial
   
---
   
$
---
   
$
---
     
---
   
$
---
   
$
---
 
Commercial real estate
   
---
     
---
     
---
     
1
     
1,018
     
---
 
Consumer
   
2
     
24
     
---
     
2
     
174
     
---
 
     
2
     
24
   
$
---
     
3
   
$
1,192
   
$
---
 

The following tables present information regarding troubled debt restructurings executed during the six month periods ended June 30, 2018 and 2017 (dollars in thousands):

   
Six Months Ended June 30,
2018
   
Six Months Ended June 30,
2017
 
   
# of
Loans
   
Pre-TDR
Balance
   
Writedown
Upon
TDR
   
# of
Loans
   
Pre-TDR
Balance
   
Writedown
Upon
TDR
 
Commercial and industrial
   
---
   
$
---
   
$
---
     
---
   
$
---
   
$
---
 
Commercial real estate
   
3
     
492
     
---
     
1
     
1,018
     
---
 
Consumer
   
4
     
92
     
---
     
2
     
174
     
---
 
     
7
     
584
   
$
---
     
3
   
$
1,192
   
$
---
 
Risk Grade Category of Loans by Class of Loans
As of June 30, 2018 and December 31, 2017, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands):
 
June 30, 2018
   
1
     
2
     
3
     
4
     
5
     
6
     
7
     
8
   
Total
 
Commercial and industrial
 
$
---
   
$
10,121
   
$
147,480
   
$
285,164
   
$
14,328
   
$
1,373
   
$
2
   
$
---
   
$
458,468
 
                                                                         
Commercial real estate:
                                                                       
Residential developed
   
---
     
---
     
---
     
13,280
     
621
     
---
     
---
     
---
     
13,901
 
Unsecured to residential developers
   
---
     
---
     
---
     
2,517
     
---
     
---
     
---
     
---
     
2,517
 
Vacant and unimproved
   
---
     
---
     
9,192
     
24,060
     
3,016
     
---
     
---
     
---
     
36,268
 
Commercial development
   
---
     
---
     
93
     
645
     
---
     
---
     
---
     
---
     
738
 
Residential improved
   
---
     
---
     
7,098
     
74,723
     
1,133
     
253
     
16
     
---
     
83,223
 
Commercial improved
   
---
     
2,698
     
72,439
     
220,695
     
2,800
     
1,029
     
105
     
---
     
299,766
 
Manufacturing & industrial
   
---
     
2,319
     
26,340
     
76,869
     
5,060
     
---
     
---
     
---
     
110,588
 
   
$
---
   
$
15,138
   
$
262,642
   
$
697,953
   
$
26,958
   
$
2,655
   
$
123
   
$
---
   
$
1,005,469
 
 
December 31, 2017
   
1
     
2
     
3
     
4
     
5
     
6
     
7
     
8
   
Total
 
Commercial and industrial
 
$
---
   
$
15,002
   
$
137,774
   
$
291,373
   
$
15,170
   
$
5,885
   
$
4
   
$
---
   
$
465,208
 
                                                                         
Commercial real estate:
                                                                       
Residential developed
   
---
     
---
     
48
     
11,068
     
772
     
---
     
---
     
---
     
11,888
 
Unsecured to residential developers
   
---
     
---
     
---
     
2,332
     
---
     
---
     
---
     
---
     
2,332
 
Vacant and unimproved
   
---
     
---
     
19,244
     
17,332
     
3,176
     
---
     
---
     
---
     
39,752
 
Commercial development
   
---
     
---
     
104
     
809
     
---
     
---
     
190
     
---
     
1,103
 
Residential improved
   
---
     
---
     
7,275
     
80,818
     
1,533
     
752
     
89
     
---
     
90,467
 
Commercial improved
   
---
     
1,398
     
64,043
     
228,888
     
3,353
     
926
     
106
     
---
     
298,714
 
Manufacturing & industrial
   
---
     
927
     
44,714
     
49,238
     
2,311
     
489
     
---
     
---
     
97,679
 
   
$
---
   
$
17,327
   
$
273,202
   
$
681,858
   
$
26,315
   
$
8,052
   
$
389
   
$
---
   
$
1,007,143
 
Commercial Loans Classified as Substandard or Worse
Commercial loans classified as substandard or worse were as follows at period-end (dollars in thousands):
 
   
June 30,
2018
   
December 31,
2017
 
Not classified as impaired
 
$
442
   
$
2,010
 
Classified as impaired
   
2,336
     
6,431
 
Total commercial loans classified substandard or worse
 
$
2,778
   
$
8,441
 
Recorded Investment in Consumer Loans Based on Payment Activity
The following table presents the recorded investment in consumer loans based on payment activity (dollars in thousands):
 
June 30, 2018
 
Residential
Mortgage
   
Consumer
Unsecured
   
Home
Equity
   
Consumer
Other
 
Performing
 
$
238,419
   
$
190
   
$
76,787
   
$
6,821
 
Nonperforming
   
---
     
---
     
---
     
---
 
Total
 
$
238,419
   
$
190
   
$
76,787
   
$
6,821
 
 
December 31, 2017
 
Residential
Mortgage
   
Consumer
Unsecured
   
Home
Equity
   
Consumer
Other
 
Performing
 
$
224,452
   
$
226
   
$
82,234
   
$
6,254
 
Nonperforming
   
---
     
---
     
---
     
---
 
Total
 
$
224,452
   
$
226
   
$
82,234
   
$
6,254