LOANS (Tables)
|
9 Months Ended |
Sep. 30, 2017 |
|---|
| LOANS [Abstract] |
|
| Portfolio Loans |
Portfolio loans were as follows (dollars in thousands):
| |
|
September 30, |
|
|
December 31, |
|
| |
|
2017 |
|
|
2016 |
|
Commercial and industrial |
|
$ |
418,838 |
|
|
$ |
449,342 |
|
| |
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
Residential developed |
|
|
9,077 |
|
|
|
11,970 |
|
Unsecured to residential developers |
|
|
2,410 |
|
|
|
4,734 |
|
Vacant and unimproved |
|
|
38,677 |
|
|
|
40,286 |
|
Commercial development |
|
|
486 |
|
|
|
378 |
|
Residential improved |
|
|
83,441 |
|
|
|
75,348 |
|
Commercial improved |
|
|
295,924 |
|
|
|
289,478 |
|
Manufacturing and industrial |
|
|
100,347 |
|
|
|
95,787 |
|
Total commercial real estate |
|
|
530,362 |
|
|
|
517,981 |
|
| |
|
|
|
|
|
|
|
|
Consumer |
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
221,829 |
|
|
|
217,614 |
|
Unsecured |
|
|
254 |
|
|
|
396 |
|
Home equity |
|
|
82,296 |
|
|
|
88,113 |
|
Other secured |
|
|
6,458 |
|
|
|
7,366 |
|
Total consumer |
|
|
310,837 |
|
|
|
313,489 |
|
| |
|
|
|
|
|
|
|
|
Total loans |
|
|
1,260,037 |
|
|
|
1,280,812 |
|
Allowance for loan losses |
|
|
(16,434 |
) |
|
|
(16,962 |
) |
| |
|
$ |
1,243,603 |
|
|
$ |
1,263,850 |
|
|
| 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):
| |
Commercial and |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2017 |
Industrial |
|
Real Estate |
|
Consumer |
|
Unallocated |
|
Total |
|
Beginning balance |
|
$ |
6,336 |
|
|
$ |
6,583 |
|
|
$ |
3,621 |
|
|
$ |
30 |
|
|
$ |
16,570 |
|
Charge-offs |
|
|
--- |
|
|
|
--- |
|
|
|
(55 |
) |
|
|
--- |
|
|
|
(55 |
) |
Recoveries |
|
|
32 |
|
|
|
199 |
|
|
|
38 |
|
|
|
--- |
|
|
|
269 |
|
Provision for loan losses |
|
|
(212 |
) |
|
|
(94 |
) |
|
|
(43 |
) |
|
|
(1 |
) |
|
|
(350 |
) |
Ending Balance |
|
$ |
6,156 |
|
|
$ |
6,688 |
|
|
$ |
3,561 |
|
|
$ |
29 |
|
|
$ |
16,434 |
|
| |
Commercial and |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2016 |
Industrial |
|
Real Estate |
|
Consumer |
|
Unallocated |
|
Total |
|
Beginning balance |
|
$ |
4,960 |
|
|
$ |
8,065 |
|
|
$ |
3,894 |
|
|
$ |
40 |
|
|
$ |
16,959 |
|
Charge-offs |
|
|
--- |
|
|
|
--- |
|
|
|
(46 |
) |
|
|
--- |
|
|
|
(46 |
) |
Recoveries |
|
|
50 |
|
|
|
95 |
|
|
|
39 |
|
|
|
--- |
|
|
|
184 |
|
Provision for loan losses |
|
|
515 |
|
|
|
(548 |
) |
|
|
(190 |
) |
|
|
(27 |
) |
|
|
(250 |
) |
Ending Balance |
|
$ |
5,525 |
|
|
$ |
7,612 |
|
|
$ |
3,697 |
|
|
$ |
13 |
|
|
$ |
16,847 |
|
| |
Commercial and |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2017 |
Industrial |
|
Real Estate |
|
Consumer |
|
Unallocated |
|
Total |
|
Beginning balance |
|
$ |
6,345 |
|
|
$ |
6,703 |
|
|
$ |
3,871 |
|
|
$ |
43 |
|
|
$ |
16,962 |
|
Charge-offs |
|
|
(108 |
) |
|
|
--- |
|
|
|
(113 |
) |
|
|
--- |
|
|
|
(221 |
) |
Recoveries |
|
|
96 |
|
|
|
818 |
|
|
|
129 |
|
|
|
--- |
|
|
|
1,043 |
|
Provision for loan losses |
|
|
(177 |
) |
|
|
(833 |
) |
|
|
(326 |
) |
|
|
(14 |
) |
|
|
(1,350 |
) |
Ending Balance |
|
$ |
6,156 |
|
|
$ |
6,688 |
|
|
$ |
3,561 |
|
|
$ |
29 |
|
|
$ |
16,434 |
|
| |
Commercial and |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, 2016 |
Industrial |
|
Real Estate |
|
Consumer |
|
Unallocated |
|
Total |
|
Beginning balance |
|
$ |
4,826 |
|
|
$ |
8,457 |
|
|
$ |
3,761 |
|
|
$ |
37 |
|
|
$ |
17,081 |
|
Charge-offs |
|
|
--- |
|
|
|
--- |
|
|
|
(158 |
) |
|
|
--- |
|
|
|
(158 |
) |
Recoveries |
|
|
123 |
|
|
|
772 |
|
|
|
129 |
|
|
|
--- |
|
|
|
1,024 |
|
Provision for loan losses |
|
|
576 |
|
|
|
(1,617 |
) |
|
|
(35 |
) |
|
|
(24 |
) |
|
|
(1,100 |
) |
Ending Balance |
|
$ |
5,525 |
|
|
$ |
7,612 |
|
|
$ |
3,697 |
|
|
$ |
13 |
|
|
$ |
16,847 |
|
|
| 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):
| |
Commercial and |
|
Commercial |
|
|
|
|
|
|
|
September 30, 2017 |
Industrial |
|
Real Estate |
|
Consumer |
|
Unallocated |
|
Total |
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
Ending allowance attributable to loans: |
|
|
|
|
|
|
|
|
|
|
Individually reviewed for impairment |
|
$ |
568 |
|
|
$ |
244 |
|
|
$ |
534 |
|
|
$ |
--- |
|
|
$ |
1,346 |
|
Collectively evaluated for impairment |
|
|
5,588 |
|
|
|
6,444 |
|
|
|
3,027 |
|
|
|
29 |
|
|
|
15,088 |
|
Total ending allowance balance |
|
$ |
6,156 |
|
|
$ |
6,688 |
|
|
$ |
3,561 |
|
|
$ |
29 |
|
|
$ |
16,434 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually reviewed for impairment |
|
$ |
4,555 |
|
|
$ |
8,742 |
|
|
$ |
8,663 |
|
|
$ |
--- |
|
|
$ |
21,960 |
|
Collectively evaluated for impairment |
|
|
414,283 |
|
|
|
521,620 |
|
|
|
302,174 |
|
|
|
--- |
|
|
|
1,238,077 |
|
Total ending loans balance |
|
$ |
418,838 |
|
|
$ |
530,362 |
|
|
$ |
310,837 |
|
|
$ |
--- |
|
|
$ |
1,260,037 |
|
| |
|
Commercial and |
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
Industrial |
|
|
Real Estate |
|
|
Consumer |
|
|
Unallocated |
|
|
Total |
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending allowance attributable to loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually reviewed for impairment |
|
$ |
605 |
|
|
$ |
368 |
|
|
$ |
723 |
|
|
$ |
--- |
|
|
$ |
1,696 |
|
Collectively evaluated for impairment |
|
|
5,740 |
|
|
|
6,335 |
|
|
|
3,148 |
|
|
|
43 |
|
|
|
15,266 |
|
Total ending allowance balance |
|
$ |
6,345 |
|
|
$ |
6,703 |
|
|
$ |
3,871 |
|
|
$ |
43 |
|
|
$ |
16,962 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually reviewed for impairment |
|
$ |
5,994 |
|
|
$ |
11,934 |
|
|
$ |
11,726 |
|
|
$ |
--- |
|
|
$ |
29,654 |
|
Collectively evaluated for impairment |
|
|
443,348 |
|
|
|
506,047 |
|
|
|
301,763 |
|
|
|
--- |
|
|
|
1,251,158 |
|
Total ending loans balance |
|
$ |
449,342 |
|
|
$ |
517,981 |
|
|
$ |
313,489 |
|
|
$ |
--- |
|
|
$ |
1,280,812 |
|
|
| Loans Individually Evaluated for Impairment by Class of Loans |
The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2017 (dollars in thousands):
| |
|
Unpaid |
|
|
|
|
|
|
|
| |
|
Principal |
|
|
Recorded |
|
|
Allowance |
|
September 30, 2017 |
|
Balance |
|
|
Investment |
|
|
Allocated |
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
1,414 |
|
|
$ |
1,414 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Commercial development |
|
|
190 |
|
|
|
190 |
|
|
|
--- |
|
Residential improved |
|
|
5 |
|
|
|
5 |
|
|
|
--- |
|
Commercial improved |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Manufacturing and industrial |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
| |
|
|
195 |
|
|
|
195 |
|
|
|
--- |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Unsecured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Home equity |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Other secured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
| |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Total with no related allowance recorded |
|
$ |
1,609 |
|
|
$ |
1,609 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
3,141 |
|
|
$ |
3,141 |
|
|
$ |
568 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
181 |
|
|
|
181 |
|
|
|
4 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
361 |
|
|
|
361 |
|
|
|
12 |
|
Commercial development |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Residential improved |
|
|
2,212 |
|
|
|
2,212 |
|
|
|
88 |
|
Commercial improved |
|
|
5,609 |
|
|
|
5,609 |
|
|
|
139 |
|
Manufacturing and industrial |
|
|
184 |
|
|
|
184 |
|
|
|
1 |
|
| |
|
|
8,547 |
|
|
|
8,547 |
|
|
|
244 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
6,865 |
|
|
|
6,846 |
|
|
|
422 |
|
Unsecured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Home equity |
|
|
1,817 |
|
|
|
1,817 |
|
|
|
112 |
|
Other secured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
| |
|
|
8,682 |
|
|
|
8,663 |
|
|
|
534 |
|
Total with an allowance recorded |
|
$ |
20,370 |
|
|
$ |
20,351 |
|
|
$ |
1,346 |
|
Total |
|
$ |
21,979 |
|
|
$ |
21,960 |
|
|
$ |
1,346 |
|
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2016 (dollars in thousands):
| |
|
Unpaid |
|
|
|
|
|
|
|
| |
|
Principal |
|
|
Recorded |
|
|
Allowance |
|
December 31, 2016 |
|
Balance |
|
|
Investment |
|
|
Allocated |
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
2,298 |
|
|
$ |
2,298 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Commercial development |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Residential improved |
|
|
27 |
|
|
|
27 |
|
|
|
--- |
|
Commercial improved |
|
|
350 |
|
|
|
350 |
|
|
|
--- |
|
Manufacturing and industrial |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
| |
|
|
377 |
|
|
|
377 |
|
|
|
--- |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Unsecured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Home equity |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Other secured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
| |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Total with no related allowance recorded |
|
$ |
2,675 |
|
|
$ |
2,675 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
3,696 |
|
|
$ |
3,696 |
|
|
$ |
605 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
187 |
|
|
|
187 |
|
|
|
4 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
387 |
|
|
|
387 |
|
|
|
9 |
|
Commercial development |
|
|
189 |
|
|
|
189 |
|
|
|
6 |
|
Residential improved |
|
|
4,687 |
|
|
|
4,687 |
|
|
|
216 |
|
Commercial improved |
|
|
5,879 |
|
|
|
5,879 |
|
|
|
128 |
|
Manufacturing and industrial |
|
|
228 |
|
|
|
228 |
|
|
|
5 |
|
| |
|
|
11,557 |
|
|
|
11,557 |
|
|
|
368 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
7,523 |
|
|
|
7,523 |
|
|
|
464 |
|
Unsecured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Home equity |
|
|
4,203 |
|
|
|
4,203 |
|
|
|
259 |
|
Other secured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
| |
|
|
11,726 |
|
|
|
11,726 |
|
|
|
723 |
|
Total with an allowance recorded |
|
$ |
26,979 |
|
|
$ |
26,979 |
|
|
$ |
1,696 |
|
Total |
|
$ |
29,654 |
|
|
$ |
29,654 |
|
|
$ |
1,696 |
|
|
| 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 nine month periods ended September 30, 2017 and 2016 (dollars in thousands):
| |
|
Three |
|
|
Three |
|
|
Nine |
|
|
Nine |
|
| |
|
Months |
|
|
Months |
|
|
Months |
|
|
Months |
|
| |
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
| |
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
| |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Average of impaired loans during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
4,047 |
|
|
$ |
5,093 |
|
|
$ |
5,410 |
|
|
$ |
6,489 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
181 |
|
|
|
126 |
|
|
|
183 |
|
|
|
42 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
372 |
|
|
|
418 |
|
|
|
338 |
|
|
|
433 |
|
Commercial development |
|
|
189 |
|
|
|
190 |
|
|
|
189 |
|
|
|
191 |
|
Residential improved |
|
|
2,255 |
|
|
|
5,156 |
|
|
|
3,002 |
|
|
|
5,396 |
|
Commercial improved |
|
|
5,925 |
|
|
|
6,627 |
|
|
|
6,026 |
|
|
|
7,660 |
|
Manufacturing and industrial |
|
|
185 |
|
|
|
235 |
|
|
|
246 |
|
|
|
237 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
8,793 |
|
|
|
12,501 |
|
|
|
10,366 |
|
|
|
12,828 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income recognized during impairment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
179 |
|
|
|
203 |
|
|
|
697 |
|
|
|
740 |
|
Commercial real estate |
|
|
108 |
|
|
|
172 |
|
|
|
360 |
|
|
|
516 |
|
Consumer |
|
|
80 |
|
|
|
112 |
|
|
|
306 |
|
|
|
350 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash-basis interest income recognized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
177 |
|
|
|
195 |
|
|
|
708 |
|
|
|
746 |
|
Commercial real estate |
|
|
114 |
|
|
|
169 |
|
|
|
363 |
|
|
|
513 |
|
Consumer |
|
|
79 |
|
|
|
111 |
|
|
|
306 |
|
|
|
346 |
|
|
| 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 September 30, 2017 and December 31, 2016 (dollars in thousands):
| |
|
|
|
|
Over 90 |
|
| |
|
|
|
|
days |
|
September 30, 2017 |
|
Nonaccrual |
|
|
Accruing |
|
| |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
4 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
Residential developed |
|
|
--- |
|
|
|
--- |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
--- |
|
|
|
--- |
|
Commercial development |
|
|
239 |
|
|
|
--- |
|
Residential improved |
|
|
91 |
|
|
|
--- |
|
Commercial improved |
|
|
110 |
|
|
|
--- |
|
Manufacturing and industrial |
|
|
--- |
|
|
|
--- |
|
| |
|
|
440 |
|
|
|
--- |
|
Consumer: |
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
58 |
|
|
|
--- |
|
Unsecured |
|
|
7 |
|
|
|
--- |
|
Home equity |
|
|
--- |
|
|
|
--- |
|
Other secured |
|
|
12 |
|
|
|
--- |
|
| |
|
|
77 |
|
|
|
--- |
|
Total |
|
$ |
521 |
|
|
$ |
--- |
|
| |
|
|
|
|
Over 90 |
|
| |
|
|
|
|
days |
|
December 31, 2016 |
|
Nonaccrual |
|
|
Accruing |
|
| |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
36 |
|
|
$ |
--- |
|
| |
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
Residential developed |
|
|
--- |
|
|
|
--- |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
Vacant and unimproved |
|
|
--- |
|
|
|
--- |
|
Commercial development |
|
|
49 |
|
|
|
--- |
|
Residential improved |
|
|
6 |
|
|
|
--- |
|
Commercial improved |
|
|
128 |
|
|
|
--- |
|
Manufacturing and industrial |
|
|
--- |
|
|
|
--- |
|
| |
|
|
183 |
|
|
|
--- |
|
Consumer: |
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
58 |
|
|
|
--- |
|
Unsecured |
|
|
16 |
|
|
|
--- |
|
Home equity |
|
|
7 |
|
|
|
--- |
|
Other secured |
|
|
--- |
|
|
|
--- |
|
| |
|
|
81 |
|
|
|
--- |
|
Total |
|
$ |
300 |
|
|
$ |
--- |
|
|
| 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 September 30, 2017 and December 31, 2016 by class of loans (dollars in thousands):
| |
|
|
30-90 |
|
|
Greater Than |
|
|
Total |
|
|
Loans Not |
|
|
|
|
September 30, 2017 |
|
Days |
|
|
90 Days |
|
|
Past Due |
|
|
Past Due |
|
|
Total |
|
Commercial and industrial |
|
$ |
22 |
|
|
$ |
--- |
|
|
$ |
22 |
|
|
$ |
418,816 |
|
|
$ |
418,838 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
9,077 |
|
|
|
9,077 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
2,410 |
|
|
|
2,410 |
|
Vacant and unimproved |
|
|
308 |
|
|
|
--- |
|
|
|
308 |
|
|
|
38,369 |
|
|
|
38,677 |
|
Commercial development |
|
|
--- |
|
|
|
239 |
|
|
|
239 |
|
|
|
247 |
|
|
|
486 |
|
Residential improved |
|
|
--- |
|
|
|
91 |
|
|
|
91 |
|
|
|
83,350 |
|
|
|
83,441 |
|
Commercial improved |
|
|
107 |
|
|
|
--- |
|
|
|
107 |
|
|
|
295,817 |
|
|
|
295,924 |
|
Manufacturing and industrial |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
100,347 |
|
|
|
100,347 |
|
| |
|
|
415 |
|
|
|
330 |
|
|
|
745 |
|
|
|
529,617 |
|
|
|
530,362 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
--- |
|
|
|
56 |
|
|
|
56 |
|
|
|
221,773 |
|
|
|
221,829 |
|
Unsecured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
254 |
|
|
|
254 |
|
Home equity |
|
|
33 |
|
|
|
--- |
|
|
|
33 |
|
|
|
82,263 |
|
|
|
82,296 |
|
Other secured |
|
|
5 |
|
|
|
11 |
|
|
|
16 |
|
|
|
6,442 |
|
|
|
6,458 |
|
| |
|
|
38 |
|
|
|
67 |
|
|
|
105 |
|
|
|
310,732 |
|
|
|
310,837 |
|
Total |
|
$ |
475 |
|
|
$ |
397 |
|
|
$ |
872 |
|
|
$ |
1,259,165 |
|
|
$ |
1,260,037 |
|
| |
|
|
30-90 |
|
|
Greater Than |
|
|
Total |
|
|
Loans Not |
|
|
|
|
December 31, 2016 |
|
Days |
|
|
90 Days |
|
|
Past Due |
|
|
Past Due |
|
|
Total |
|
Commercial and industrial |
|
$ |
425 |
|
|
$ |
28 |
|
|
$ |
453 |
|
|
$ |
448,889 |
|
|
$ |
449,342 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
11,970 |
|
|
|
11,970 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
4,734 |
|
|
|
4,734 |
|
Vacant and unimproved |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
40,286 |
|
|
|
40,286 |
|
Commercial development |
|
|
--- |
|
|
|
49 |
|
|
|
49 |
|
|
|
329 |
|
|
|
378 |
|
Residential improved |
|
|
74 |
|
|
|
5 |
|
|
|
79 |
|
|
|
75,269 |
|
|
|
75,348 |
|
Commercial improved |
|
|
478 |
|
|
|
--- |
|
|
|
478 |
|
|
|
289,000 |
|
|
|
289,478 |
|
Manufacturing and industrial |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
95,787 |
|
|
|
95,787 |
|
| |
|
|
552 |
|
|
|
54 |
|
|
|
606 |
|
|
|
517,375 |
|
|
|
517,981 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
64 |
|
|
|
56 |
|
|
|
120 |
|
|
|
217,494 |
|
|
|
217,614 |
|
Unsecured |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
396 |
|
|
|
396 |
|
Home equity |
|
|
187 |
|
|
|
--- |
|
|
|
187 |
|
|
|
87,926 |
|
|
|
88,113 |
|
Other secured |
|
|
81 |
|
|
|
--- |
|
|
|
81 |
|
|
|
7,285 |
|
|
|
7,366 |
|
| |
|
|
332 |
|
|
|
56 |
|
|
|
388 |
|
|
|
313,101 |
|
|
|
313,489 |
|
Total |
|
$ |
1,309 |
|
|
$ |
138 |
|
|
$ |
1,447 |
|
|
$ |
1,279,365 |
|
|
$ |
1,280,812 |
|
|
| Troubled Debt Restructurings |
The following table presents information regarding troubled debt restructurings as of September 30, 2017 and December 31, 2016 (dollars in thousands):
| |
|
September 30, 2017 |
|
|
December 31, 2016 |
|
| |
|
Number of Loans |
|
|
Outstanding Recorded Balance |
|
|
Number of Loans |
|
|
Outstanding Recorded Balance |
|
Commercial and industrial |
|
|
20 |
|
|
$ |
4,555 |
|
|
|
25 |
|
|
$ |
5,994 |
|
Commercial real estate |
|
|
38 |
|
|
|
8,742 |
|
|
|
49 |
|
|
|
11,933 |
|
Consumer |
|
|
103 |
|
|
|
8,663 |
|
|
|
116 |
|
|
|
12,059 |
|
| |
|
|
161 |
|
|
$ |
21,960 |
|
|
|
190 |
|
|
$ |
29,986 |
|
The following table presents information related to accruing troubled debt restructurings as of September 30, 2017 and December 31, 2016. 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):
| |
|
September 30, |
|
|
December 31, |
|
| |
|
2017 |
|
|
2016 |
|
Accruing TDR - nonaccrual at restructuring |
|
$ |
--- |
|
|
$ |
--- |
|
Accruing TDR - accruing at restructuring |
|
|
18,526 |
|
|
|
25,665 |
|
Accruing TDR - upgraded to accruing after six consecutive payments |
|
|
3,057 |
|
|
|
4,172 |
|
| |
|
$ |
21,583 |
|
|
$ |
29,837 |
|
The following tables present information regarding troubled debt restructurings executed during the three month periods ended September 30, 2017 and 2016 (dollars in thousands):
| |
|
Three Months Ended September 30, |
|
|
Three Months Ended September 30, |
|
| |
|
2017 |
|
|
2016 |
|
| |
|
|
|
|
|
Writedown |
|
|
|
|
|
|
Writedown |
|
| |
|
# of |
|
Pre-TDR |
|
Upon |
|
|
# of |
|
Pre-TDR |
|
Upon |
|
| |
|
Loans |
|
Balance |
|
TDR |
|
|
Loans |
|
Balance |
|
TDR |
|
Commercial and industrial |
|
|
--- |
|
|
$ |
--- |
|
|
$ |
--- |
|
|
|
--- |
|
|
$ |
--- |
|
|
$ |
--- |
|
Commercial real estate |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
1 |
|
|
|
59 |
|
|
|
--- |
|
Consumer |
|
|
2 |
|
|
|
222 |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
| |
|
|
2 |
|
|
|
222 |
|
|
$ |
--- |
|
|
|
1 |
|
|
$ |
59 |
|
|
$ |
--- |
|
The following tables present information regarding troubled debt restructurings executed during the nine month periods ended September 30, 2017 and 2016 (dollars in thousands):
| |
|
Nine Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2017 |
|
|
2016 |
|
| |
|
|
|
|
|
Writedown |
|
|
|
|
|
|
Writedown |
|
| |
|
# of |
|
Pre-TDR |
|
Upon |
|
|
# of |
|
Pre-TDR |
|
Upon |
|
| |
|
Loans |
|
Balance |
|
TDR |
|
|
Loans |
|
Balance |
|
TDR |
|
Commercial and industrial |
|
|
--- |
|
|
$ |
--- |
|
|
$ |
--- |
|
|
|
--- |
|
|
$ |
--- |
|
|
$ |
--- |
|
Commercial real estate |
|
|
1 |
|
|
|
1,018 |
|
|
|
--- |
|
|
|
1 |
|
|
|
59 |
|
|
|
--- |
|
Consumer |
|
|
4 |
|
|
|
396 |
|
|
|
--- |
|
|
|
6 |
|
|
|
277 |
|
|
|
--- |
|
| |
|
|
5 |
|
|
|
1,414 |
|
|
$ |
--- |
|
|
|
7 |
|
|
$ |
336 |
|
|
$ |
--- |
|
|
| Risk Grade Category of Loans by Class of Loans |
As of September 30, 2017 and December 31, 2016, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands):
September 30, 2017 |
|
|
1 |
|
|
|
2 |
|
|
|
3 |
|
|
|
4 |
|
|
|
5 |
|
|
|
6 |
|
|
|
7 |
|
|
|
8 |
|
|
Total |
|
Commercial and industrial |
|
$ |
--- |
|
|
$ |
15,104 |
|
|
$ |
103,220 |
|
|
$ |
281,082 |
|
|
$ |
15,603 |
|
|
$ |
3,825 |
|
|
$ |
4 |
|
|
$ |
--- |
|
|
$ |
418,838 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
--- |
|
|
|
--- |
|
|
|
1,173 |
|
|
|
7,119 |
|
|
|
785 |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
9,077 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
2,410 |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
2,410 |
|
Vacant and unimproved |
|
|
--- |
|
|
|
--- |
|
|
|
16,252 |
|
|
|
18,975 |
|
|
|
3,450 |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
38,677 |
|
Commercial development |
|
|
--- |
|
|
|
--- |
|
|
|
110 |
|
|
|
137 |
|
|
|
--- |
|
|
|
--- |
|
|
|
239 |
|
|
|
--- |
|
|
|
486 |
|
Residential improved |
|
|
--- |
|
|
|
--- |
|
|
|
5,218 |
|
|
|
75,297 |
|
|
|
1,579 |
|
|
|
1,256 |
|
|
|
91 |
|
|
|
--- |
|
|
|
83,441 |
|
Commercial improved |
|
|
--- |
|
|
|
1,287 |
|
|
|
63,600 |
|
|
|
226,190 |
|
|
|
3,798 |
|
|
|
939 |
|
|
|
110 |
|
|
|
--- |
|
|
|
295,924 |
|
Manufacturing & industrial |
|
|
--- |
|
|
|
961 |
|
|
|
44,416 |
|
|
|
52,150 |
|
|
|
2,301 |
|
|
|
519 |
|
|
|
--- |
|
|
|
--- |
|
|
|
100,347 |
|
| |
|
$ |
--- |
|
|
$ |
17,352 |
|
|
$ |
233,989 |
|
|
$ |
663,360 |
|
|
$ |
27,516 |
|
|
$ |
6,539 |
|
|
$ |
444 |
|
|
$ |
--- |
|
|
$ |
949,200 |
|
December 31, 2016 |
|
|
1 |
|
|
|
2 |
|
|
|
3 |
|
|
|
4 |
|
|
|
5 |
|
|
|
6 |
|
|
|
7 |
|
|
|
8 |
|
|
Total |
|
Commercial and industrial |
|
$ |
--- |
|
|
$ |
27,619 |
|
|
$ |
118,243 |
|
|
$ |
282,527 |
|
|
$ |
14,610 |
|
|
$ |
6,307 |
|
|
$ |
36 |
|
|
$ |
--- |
|
|
$ |
449,342 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential developed |
|
|
--- |
|
|
|
--- |
|
|
|
2,328 |
|
|
|
8,786 |
|
|
|
856 |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
11,970 |
|
Unsecured to residential developers |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
4,734 |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
4,734 |
|
Vacant and unimproved |
|
|
--- |
|
|
|
--- |
|
|
|
17,672 |
|
|
|
19,028 |
|
|
|
3,586 |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
40,286 |
|
Commercial development |
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
|
|
140 |
|
|
|
--- |
|
|
|
189 |
|
|
|
49 |
|
|
|
--- |
|
|
|
378 |
|
Residential improved |
|
|
--- |
|
|
|
--- |
|
|
|
7,100 |
|
|
|
63,957 |
|
|
|
2,628 |
|
|
|
1,657 |
|
|
|
6 |
|
|
|
--- |
|
|
|
75,348 |
|
Commercial improved |
|
|
--- |
|
|
|
2,433 |
|
|
|
66,259 |
|
|
|
210,449 |
|
|
|
9,084 |
|
|
|
1,125 |
|
|
|
128 |
|
|
|
--- |
|
|
|
289,478 |
|
Manufacturing & industrial |
|
|
--- |
|
|
|
1,665 |
|
|
|
38,719 |
|
|
|
51,718 |
|
|
|
3,076 |
|
|
|
609 |
|
|
|
--- |
|
|
|
--- |
|
|
|
95,787 |
|
| |
|
$ |
--- |
|
|
$ |
31,717 |
|
|
$ |
250,321 |
|
|
$ |
641,339 |
|
|
$ |
33,840 |
|
|
$ |
9,887 |
|
|
$ |
219 |
|
|
$ |
--- |
|
|
$ |
967,323 |
|
|
| Commercial Loans Classified as Substandard or Worse |
Commercial loans rated a 6 or worse per the Company's internal risk rating system are considered substandard, doubtful or loss. Commercial loans classified as substandard or worse were as follows at period-end (dollars in thousands):
| |
September 30, |
|
December 31, |
|
| |
2017 |
|
2016 |
|
Not classified as impaired |
|
$ |
1,247 |
|
|
$ |
2,608 |
|
Classified as impaired |
|
|
5,736 |
|
|
|
7,498 |
|
Total commercial loans classified substandard or worse |
|
$ |
6,983 |
|
|
$ |
10,106 |
|
|
| 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):
| |
Residential |
|
Consumer |
|
Home |
|
Consumer |
|
September 30, 2017 |
Mortgage |
|
Unsecured |
|
Equity |
|
Other |
|
Performing |
|
$ |
221,773 |
|
|
$ |
254 |
|
|
$ |
82,296 |
|
|
$ |
6,447 |
|
Nonperforming |
|
|
56 |
|
|
|
--- |
|
|
|
--- |
|
|
|
11 |
|
Total |
|
$ |
221,829 |
|
|
$ |
254 |
|
|
$ |
82,296 |
|
|
$ |
6,458 |
|
| |
Residential |
|
Consumer |
|
Home |
|
Consumer |
|
December 31, 2016 |
Mortgage |
|
Unsecured |
|
Equity |
|
Other |
|
Performing |
|
$ |
217,558 |
|
|
$ |
396 |
|
|
$ |
88,113 |
|
|
$ |
7,366 |
|
Nonperforming |
|
|
56 |
|
|
|
--- |
|
|
|
--- |
|
|
|
--- |
|
Total |
|
$ |
217,614 |
|
|
$ |
396 |
|
|
$ |
88,113 |
|
|
$ |
7,366 |
|
|