Quarterly report pursuant to Section 13 or 15(d)

LOANS (Tables)

v3.20.1
LOANS (Tables)
3 Months Ended
Mar. 31, 2020
LOANS [Abstract]  
Portfolio Loans
Portfolio loans were as follows (dollars in thousands):

   
March 31,
2020
   
December 31,
2019
 
Commercial and industrial
 
$
527,590
   
$
499,572
 
Commercial real estate:
               
Residential developed
   
12,795
     
14,705
 
Unsecured to residential developers
   
5,000
     
 
Vacant and unimproved
   
42,761
     
41,796
 
Commercial development
   
623
     
665
 
Residential improved
   
131,954
     
130,861
 
Commercial improved
   
284,565
     
292,799
 
Manufacturing and industrial
   
114,953
     
117,632
 
Total commercial real estate
   
592,651
     
598,458
 
Consumer
               
Residential mortgage
   
198,585
     
211,049
 
Unsecured
   
247
     
274
 
Home equity
   
71,462
     
70,936
 
Other secured
   
4,806
     
5,338
 
Total consumer
   
275,100
     
287,597
 
Total loans
   
1,395,341
     
1,385,627
 
Allowance for loan losses
   
(18,889
)
   
(17,200
)
   
$
1,376,452
   
$
1,368,427
 
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 March 31, 2020
 
Commercial
and
Industrial
   
Commercial
Real Estate
   
Consumer
   
Unallocated
   
Total
 
Beginning balance
 
$
7,658
   
$
6,521
   
$
3,009
   
$
12
   
$
17,200
 
Charge-offs
   
     
     
(39
)
   
     
(39
)
Recoveries
   
19
     
974
     
35
     
     
1,028
 
Provision for loan losses
   
1,130
     
(582
)
   
125
     
27
     
700
 
Ending Balance
 
$
8,807
   
$
6,913
   
$
3,130
   
$
39
   
$
18,889
 

Three months ended March 31, 2019
 
Commercial
and
Industrial
   
Commercial
Real Estate
   
Consumer
   
Unallocated
   
Total
 
Beginning balance
 
$
6,856
   
$
6,544
   
$
3,449
   
$
27
   
$
16,876
 
Charge-offs
   
     
(132
)
   
(25
)
   
     
(157
)
Recoveries
   
136
     
224
     
63
     
     
423
 
Provision for loan losses
   
(3
)
   
(189
)
   
(61
)
   
3
     
(250
)
Ending Balance
 
$
6,989
   
$
6,447
   
$
3,426
   
$
30
   
$
16,892
 
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):

March 31, 2020
 
Commercial
and
Industrial
   
Commercial
Real Estate
   
Consumer
   
Unallocated
   
Total
 
Allowance for loan losses:
                             
Ending allowance attributable to loans:
                             
Individually reviewed for impairment
 
$
1,720
   
$
36
   
$
359
   
$
   
$
2,115
 
Collectively evaluated for impairment
   
7,087
     
6,877
     
2,771
     
39
     
16,774
 
Total ending allowance balance
 
$
8,807
   
$
6,913
   
$
3,130
   
$
39
   
$
18,889
 
Loans:
                                       
Individually reviewed for impairment
 
$
7,164
   
$
8,356
   
$
4,820
   
$
   
$
20,340
 
Collectively evaluated for impairment
   
520,426
     
584,295
     
270,280
     
     
1,375,001
 
Total ending loans balance
 
$
527,590
   
$
592,651
   
$
275,100
   
$
   
$
1,395,341
 

December 31, 2019
 
Commercial
and
Industrial
   
Commercial
Real Estate
   
Consumer
   
Unallocated
   
Total
 
Allowance for loan losses:
                             
Ending allowance attributable to loans:
                             
Individually reviewed for impairment
 
$
1,213
   
$
32
   
$
379
   
$
   
$
1,624
 
Collectively evaluated for impairment
   
6,445
     
6,489
     
2,630
     
12
     
15,576
 
Total ending allowance balance
 
$
7,658
   
$
6,521
   
$
3,009
   
$
12
   
$
17,200
 
Loans:
                                       
Individually reviewed for impairment
 
$
5,797
   
$
2,928
   
$
5,140
   
$
   
$
13,865
 
Collectively evaluated for impairment
   
493,775
     
595,530
     
282,457
     
     
1,371,762
 
Total ending loans balance
 
$
499,572
   
$
598,458
   
$
287,597
   
$
   
$
1,385,627
 
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, 2020 (dollars in thousands):

March 31, 2020
 
Unpaid
Principal
Balance
   
Recorded
Investment
   
Allowance
Allocated
 
With no related allowance recorded:
                 
Commercial and industrial
 
$
168
   
$
168
   
$
 
Commercial real estate:
                       
Residential developed
   
     
     
 
Unsecured to residential developers
   
     
     
 
Vacant and unimproved
   
     
     
 
Commercial development
   
     
     
 
Residential improved
   
200
     
200
     
 
Commercial improved
   
7,157
     
7,157
     
 
Manufacturing and industrial
   
     
     
 
     
7,357
     
7,357
     
 
Consumer:
                       
Residential mortgage
   
     
     
 
Unsecured
   
     
     
 
Home equity
   
     
     
 
Other secured
   
     
     
 
     
     
     
 
Total with no related allowance recorded
 
$
7,525
   
$
7,525
   
$
 
With an allowance recorded:
                       
Commercial and industrial
 
$
6,996
   
$
6,996
   
$
1,720
 
Commercial real estate:
                       
Residential developed
   
73
     
73
     
3
 
Unsecured to residential developers
   
     
     
 
Vacant and unimproved
   
     
     
 
Commercial development
   
     
     
 
Residential improved
   
     
     
 
Commercial improved
   
571
     
571
     
19
 
Manufacturing and industrial
   
355
     
355
     
14
 
     
999
     
999
     
36
 
Consumer:
                       
Residential mortgage
   
4,116
     
4,116
     
307
 
Unsecured
   
179
     
179
     
13
 
Home equity
   
499
     
499
     
37
 
Other secured
   
26
     
26
     
2
 
     
4,820
     
4,820
     
359
 
Total with an allowance recorded
 
$
12,815
   
$
12,815
   
$
2,115
 
Total
 
$
20,340
   
$
20,340
   
$
2,115
 

 
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019 (dollars in thousands):

December 31, 2019
 
Unpaid
Principal
Balance
   
Recorded
Investment
   
Allowance
Allocated
 
With no related allowance recorded:
                 
Commercial and industrial
 
$
180
   
$
180
   
$
 
Commercial real estate:
                       
Residential developed
   
     
     
 
Unsecured to residential developers
   
     
     
 
Vacant and unimproved
   
130
     
130
     
 
Commercial development
   
     
     
 
Residential improved
   
377
     
377
     
 
Commercial improved
   
1,380
     
1,380
     
 
Manufacturing and industrial
   
     
     
 
 
   
1,887
     
1,887
     
 
Consumer:
                       
Residential mortgage
   
     
     
 
Unsecured
   
     
     
 
Home equity
   
     
     
 
Other secured
   
     
     
 
     
     
     
 
Total with no related allowance recorded
 
$
2,067
   
$
2,067
   
$
 
With an allowance recorded:
                       
Commercial and industrial
 
$
5,617
   
$
5,617
   
$
1,213
 
Commercial real estate:
                       
Residential developed
   
76
     
76
     
3
 
Unsecured to residential developers
   
     
     
 
Vacant and unimproved
   
     
     
 
Commercial development
   
     
     
 
Residential improved
   
28
     
28
     
2
 
Commercial improved
   
578
     
578
     
16
 
Manufacturing and industrial
   
359
     
359
     
11
 
 
   
1,041
     
1,041
     
32
 
Consumer:
                       
Residential mortgage
   
4,242
     
4,242
     
313
 
Unsecured
   
198
     
198
     
14
 
Home equity
   
677
     
677
     
50
 
Other secured
   
23
     
23
     
2
 
     
5,140
     
5,140
     
379
 
Total with an allowance recorded
 
$
11,798
   
$
11,798
   
$
1,624
 
Total
 
$
13,865
   
$
13,865
   
$
1,624
 
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 month periods ended March 31, 2020 and 2019 (dollars in thousands):

   
Three
Months
Ended
March 31,
2020
   
Three
Months
Ended
March 31,
2019
 
Average of impaired loans during the period:
           
Commercial and industrial
 
$
6,615
   
$
6,825
 
Commercial real estate:
               
Residential developed
   
74
     
172
 
Unsecured to residential developers
   
     
 
Vacant and unimproved
   
     
138
 
Commercial development
   
     
 
Residential improved
   
267
     
308
 
Commercial improved
   
5,822
     
2,340
 
Manufacturing and industrial
   
356
     
379
 
Consumer
   
4,914
     
6,197
 
Interest income recognized during impairment:
               
Commercial and industrial
   
273
     
288
 
Commercial real estate
   
99
     
44
 
Consumer
   
57
     
75
 
Cash-basis interest income recognized
               
Commercial and industrial
   
275
     
282
 
Commercial real estate
   
128
     
49
 
Consumer
   
60
     
76
 
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 March 31, 2020 and 2019:

March 31, 2020
 
Nonaccrual
   
Over 90
days
Accruing
 
Commercial and industrial
 
$
1,211
   
$
 
Commercial real estate:
               
Residential developed
   
     
 
Unsecured to residential developers
   
     
 
Vacant and unimproved
   
     
 
Commercial development
   
     
 
Residential improved
   
97
     
 
Commercial improved
   
5,811
     
 
Manufacturing and industrial
   
     
 
 
   
5,908
     
 
Consumer:
               
Residential mortgage
   
103
     
 
Unsecured
   
     
 
Home equity
   
8
     
 
Other secured
   
     
 
     
111
     
 
Total
 
$
7,230
   
$
 


December 31, 2019
 
Nonaccrual
   
Over 90 days
Accruing
 
Commercial and industrial
 
$
   
$
 
Commercial real estate:
               
Residential developed
   
     
 
Unsecured to residential developers
   
     
 
Vacant and unimproved
   
     
 
Commercial development
   
     
 
Residential improved
   
98
     
 
Commercial improved
   
     
 
Manufacturing and industrial
   
     
 
 
   
98
     
 
Consumer:
               
Residential mortgage
   
105
     
 
Unsecured
   
     
 
Home equity
   
     
 
Other secured
   
     
 
     
105
     
 
Total
 
$
203
   
$
 
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 March 31, 2020 and December 31, 2019 by class of loans (dollars in thousands):

March 31, 2020
 
30-90
Days
   
Greater Than
90 Days
   
Total
Past Due
   
Loans Not
Past Due
   
Total
 
Commercial and industrial
 
$
98
     
   
$
98
   
$
527,492
   
$
527,590
 
Commercial real estate:
                                       
Residential developed
   
     
     
     
12,795
     
12,795
 
Unsecured to residential developers
   
     
     
     
5,000
     
5,000
 
Vacant and unimproved
   
     
     
     
42,761
     
42,761
 
Commercial development
   
     
     
     
623
     
623
 
Residential improved
   
82
     
15
     
97
     
131,857
     
131,954
 
Commercial improved
   
     
     
     
284,565
     
284,565
 
Manufacturing and industrial
   
     
     
     
114,953
     
114,953
 
 
   
82
     
15
     
97
     
592,554
     
592,651
 
Consumer:
                                       
Residential mortgage
   
191
     
101
     
292
     
198,293
     
198,585
 
Unsecured
   
3
     
     
3
     
244
     
247
 
Home equity
   
15
     
8
     
23
     
71,439
     
71,462
 
Other secured
   
     
     
     
4,806
     
4,806
 
 
   
209
     
109
     
318
     
274,782
     
275,100
 
Total
 
$
389
   
$
124
   
$
513
   
$
1,394,828
   
$
1,395,341
 


December 31, 2019
 
30-90
Days
   
Greater Than
90 Days
   
Total
Past Due
   
Loans Not
Past Due
   
Total
 
Commercial and industrial
 
$
   
$
   
$
   
$
499,572
   
$
499,572
 
Commercial real estate:
                                       
Residential developed
   
     
     
     
14,705
     
14,705
 
Unsecured to residential developers
   
     
     
     
     
 
Vacant and unimproved
   
     
     
     
41,796
     
41,796
 
Commercial development
   
     
     
     
665
     
665
 
Residential improved
   
171
     
15
     
186
     
130,675
     
130,861
 
Commercial improved
   
103
     
     
103
     
292,696
     
292,799
 
Manufacturing and industrial
   
     
     
     
117,632
     
117,632
 
 
   
274
     
15
     
289
     
598,169
     
598,458
 
Consumer:
                                       
Residential mortgage
   
2
     
103
     
105
     
210,944
     
211,049
 
Unsecured
   
     
     
     
274
     
274
 
Home equity
   
8
     
     
8
     
70,928
     
70,936
 
Other secured
   
3
     
     
3
     
5,335
     
5,338
 
 
   
13
     
103
     
116
     
287,481
     
287,597
 
Total
 
$
287
   
$
118
   
$
405
   
$
1,385,222
   
$
1,385,627
 
Troubled Debt Restructurings
The following table presents information regarding troubled debt restructurings as of March 31, 2020 and December 31, 2019 (dollars in thousands):

   
March 31, 2020
   
December 31, 2019
 
   
Number of
Loans
   
Outstanding
Recorded
Balance
   
Number of
Loans
   
Outstanding
Recorded
Balance
 
Commercial and industrial
   
8
   
$
5,952
     
7
   
$
5,797
 
Commercial real estate
   
14
     
2,545
     
15
     
2,770
 
Consumer
   
65
     
4,820
     
69
     
5,140
 
     
87
   
$
13,317
     
91
   
$
13,707
 

The following table presents information related to accruing troubled debt restructurings as of March 31, 2020 and December 31, 2019.  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):

   
March 31,
2020
   
December 31,
2019
 
Accruing TDR - nonaccrual at restructuring
 
$
   
$
 
Accruing TDR - accruing at restructuring
   
7,722
     
8,295
 
Accruing TDR - upgraded to accruing after six consecutive payments
   
5,490
     
5,314
 
   
$
13,212
   
$
13,609
 

The following tables present information regarding troubled debt restructurings executed during the three month periods ended March 31, 2020 and 2019 (dollars in thousands):

   
Three Months Ended March 31, 2020
   
Three Months Ended March 31, 2019
 
   
# of
Loans
   
Pre-TDR
Balance
   
Writedown
Upon
TDR
   
# of
Loans
   
Pre-TDR
Balance
   
Writedown
Upon
TDR
 
Commercial and industrial
   
   
$
   
$
     
   
$
   
$
 
Commercial real estate
   
     
     
     
     
     
 
Consumer
   
1
     
3
     
     
     
     
 
   
$
1
   
$
3
   
$
   
$
   
$
   
$
 
Risk Grade Category of Loans by Class of Loans
As of March 31, 2020 and December 31, 2019, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands):

March 31, 2020
   
1
     
2
     
3
     
4
     
5
     
6
     
7
     
8
   
Total
 
Commercial and industrial
 
$
15,000
   
$
31,871
   
$
143,651
   
$
312,993
   
$
16,677
   
$
6,187
   
$
1,211
   
$
   
$
527,590
 
Commercial real estate:
                                                                       
Residential developed
   
     
     
252
     
12,543
     
     
     
     
     
12,795
 
Unsecured to residential developers
   
     
     
     
5,000
     
     
     
     
     
5,000
 
Vacant and unimproved
   
     
9,173
     
3,721
     
28,230
     
1,637
     
     
     
     
42,761
 
Commercial development
   
     
     
78
     
545
     
     
     
     
     
623
 
Residential improved
   
     
     
19,822
     
111,524
     
511
     
     
97
     
     
131,954
 
Commercial improved
   
     
7,300
     
63,132
     
203,377
     
4,594
     
350
     
5,812
     
     
284,565
 
Manufacturing & industrial
   
     
2,418
     
34,812
     
74,458
     
3,265
     
     
     
     
114,953
 
 
 
$
15,000
   
$
50,762
   
$
265,468
   
$
748,670
   
$
26,684
   
$
6,537
   
$
7,120
   
$
   
$
1,120,241
 

December 31, 2019
   
1
     
2
     
3
     
4
     
5
     
6
     
7
     
8
   
Total
 
Commercial and industrial
 
$
15,000
   
$
11,768
   
$
158,851
   
$
290,267
   
$
17,664
   
$
6,022
   
$
   
$
   
$
499,572
 
Commercial real estate:
                                                                       
Residential developed
   
     
     
312
     
14,393
     
     
     
     
     
14,705
 
Unsecured to residential developers
   
     
     
     
     
     
     
     
     
 
Vacant and unimproved
   
     
9,201
     
8,085
     
22,819
     
1,691
     
     
     
     
41,796
 
Commercial development
   
     
     
79
     
586
     
     
     
     
     
665
 
Residential improved
   
     
     
20,142
     
109,932
     
518
     
171
     
98
     
     
130,861
 
Commercial improved
   
     
6,893
     
67,915
     
213,790
     
3,847
     
354
     
     
     
292,799
 
Manufacturing & industrial
   
     
2,404
     
36,401
     
77,435
     
1,392
     
     
     
     
117,632
 
 
 
$
15,000
   
$
30,266
   
$
291,785
   
$
729,222
   
$
25,112
   
$
6,547
   
$
98
   
$
   
$
1,098,030
 
Commercial Loans Classified as Substandard or Worse
Commercial loans classified as substandard or worse were as follows at period-end (dollars in thousands):

   
March 31,
2020
   
December 31,
2019
 
Not classified as impaired
 
$
591
   
$
591
 
Classified as impaired
   
13,066
     
6,054
 
Total commercial loans classified substandard or worse
 
$
13,657
   
$
6,645
 
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):

March 31, 2020
 
Residential
Mortgage
   
Consumer
Unsecured
   
Home
Equity
   
Consumer
Other
 
Performing
 
$
198,484
   
$
247
   
$
71,454
   
$
4,806
 
Nonperforming
   
101
     
     
8
     
 
Total
 
$
198,585
   
$
247
   
$
71,462
   
$
4,806
 

December 31, 2019
 
Residential
Mortgage
   
Consumer
Unsecured
   
Home
Equity
   
Consumer
Other
 
Performing
 
$
210,946
   
$
274
   
$
70,936
   
$
5,338
 
Nonperforming
   
103
     
     
     
 
Total
 
$
211,049
   
$
274
   
$
70,936
   
$
5,338