XML 32 R22.htm IDEA: XBRL DOCUMENT v3.5.0.2
Allowance For Loan Losses And Credit Quality Of Financing Receivables (Tables)
 9 Months Ended
Sep. 30, 2016
Receivables [Abstract]  
Changes in the Allowance for Loan Losses
The following table presents changes in the allowance for loan losses disaggregated by the class of loans receivable for the three and nine months ended September 30, 2016 and 2015:  
໿
໿
(Dollars in thousands)
Commercial
and
Industrial
 
Construction
 
Commercial
Real
Estate
 
Residential
Real
Estate
 
Consumer
and
Other
 
Unallocated
 
Total
Three Months Ended:
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
199

 
$
208

 
$
4,020

 
$
914

 
$
17

 
$
630

 
$
5,988

Charge-offs
—

 
—

 
(91
)
 
(25
)
 
(11
)
 
—

 
(127
)
Recoveries
5

 
—

 
2

 
1

 
4

 
—

 
12

Provision
5

 
106

 
(24
)
 
(48
)
 
8

 
411

 
458

Ending balance
$
209

 
$
314

 
$
3,907

 
$
842

 
$
18

 
$
1,041

 
$
6,331

 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
86

 
277

 
$
3,613

 
$
898

 
$
86

 
$
792

 
$
5,752

Charge-offs
—

 
—

 
(119
)
 
—

 
(6
)
 
—

 
(125
)
Recoveries
5

 
—

 
3

 
4

 
1

 
—

 
13

Provision
(8
)
 
(57
)
 
134

 
26

 
5

 
(99
)
 
1

Ending balance
$
83

 
$
220

 
$
3,631

 
$
928

 
$
86

 
$
693

 
$
5,641

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended:
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
85

 
220

 
$
3,646

 
$
784

 
$
87

 
$
768

 
$
5,590

Charge-offs
(138
)
 
—

 
(156
)
 
(59
)
 
(30
)
 
—

 
(383
)
Recoveries
21

 
—

 
36

 
7

 
6

 
—

 
70

Provision
241

 
94

 
381

 
110

 
(45
)
 
273

 
1,054

Ending balance
$
209

 
$
314

 
$
3,907

 
$
842

 
$
18

 
$
1,041

 
$
6,331

 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
231

 
383

 
$
3,491

 
$
903

 
$
19

 
$
614

 
$
5,641

Charge-offs
(19
)
 
—

 
(542
)
 
—

 
(17
)
 
—

 
(578
)
Recoveries
10

 
—

 
39

 
17

 
6

 
—

 
72

Provision
(139
)
 
(163
)
 
643

 
8

 
78

 
79

 
506

Ending balance
$
83

 
$
220

 
$
3,631

 
$
928

 
$
86

 
$
693

 
$
5,641
Allowances of Loan Losses and Loans Receivable by Class Disaggregated
The following table presents the balance of the allowance of loan losses and loans receivable by class at September 30, 2016 and December 31, 2015 disaggregated on the basis of our impairment methodology.
໿
໿

Allowance for Loan Losses
 
Loans Receivable
(Dollars in thousands)
Balance
 
Balance
Loans
Individually
Evaluated for
Impairment
 
Balance
Related to
Loans
Collectively
Evaluated for
Impairment
 
Balance
 
Individually
Evaluated for
Impairment
 
Collectively
Evaluated for
Impairment
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
209

 
$
—

 
$
209

 
$
34,152

 
$
20

 
$
34,132

Construction
314

 
—

 
314

 
21,912

 
—

 
21,912

Commercial real estate
3,907

 
90

 
3,817

 
465,600

 
4,293

 
461,307

Residential real estate
842

 
2

 
840

 
141,466

 
1,608

 
139,858

Consumer and other loans
18

 
—

 
18

 
1,060

 
—

 
1,060

Unallocated
1,041

 
—

 
—

 
—

 
—

 
—

Total
$
6,331

 
$
92

 
$
5,198

 
$
664,190

 
$
5,921

 
$
658,269

December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
85

 
$
—

 
$
85

 
$
20,023

 
$
20

 
$
20,003

Construction
220

 
—

 
220

 
13,348

 
—

 
13,348

Commercial real estate
3,646

 
112

 
3,534

 
382,262

 
5,160

 
377,102

Residential real estate
784

 
79

 
705

 
127,204

 
1,546

 
125,658

Consumer and other loans
87

 
73

 
14

 
1,253

 
138

 
1,115

Unallocated
768

 
—

 
—

 
—

 
—

 
—

Total
$
5,590

 
$
264

 
$
4,558

 
$
544,090

 
$
6,864

 
$
537,226
An Age Analysis of Loans Receivable
An age analysis of loans receivable, which were past due as of September 30, 2016 and December 31, 2015, is as follows:
໿
(Dollars in thousands)
30-59 Days
Past Due
 
60-89 days
Past Due
 
Greater
Than
90 Days (a)
 
Total Past
Due
 
Current
 
Total
Financing
Receivables
 
Recorded
Investment
> 90 Days
and
Accruing
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
306

 
$
16

 
$
202

 
$
524

 
$
33,628

 
$
34,152

 
$
182

Construction
216

 
—

 
—

 
216

 
21,696

 
21,912

 
—

Commercial real estate
3,881

 
1,908

 
3,282

 
9,071

 
456,529

 
465,600

 
111

Residential real estate
882

 
367

 
1,485

 
2,734

 
138,732

 
141,466

 
93

Consumer and other
3

 
1

 
—

 
4

 
1,056

 
1,060

 
—

Total
$
5,288

 
$
2,292

 
$
4,969

 
$
12,549

 
$
651,641

 
$
664,190

 
$
386

December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
5

 
$
—

 
$
20

 
$
25

 
$
19,998

 
$
20,023

 
$
—

Construction
—

 
—

 
—

 
—

 
13,348

 
13,348

 
—

Commercial real estate
758

 
1,461

 
4,016

 
6,235

 
376,027

 
382,262

 
—

Residential real estate
335

 
247

 
1,138

 
1,720

 
125,484

 
127,204

 
—

Consumer and other
16

 
1

 
138

 
155

 
1,098

 
1,253

 
—

Total
$
1,114

 
$
1,709

 
$
5,312

 
$
8,135

 
$
535,955

 
$
544,090

 
$
—

(a) includes loans greater than 90 days past due and still accruing and non-accrual loans.
Loans Which the Accrual of Interest has been Discontinued
Loans for which the accrual of interest has been discontinued at September 30, 2016 and December 31, 2015 were: 
໿
(Dollars in thousands)
September 30, 2016
 
December 31, 2015
Commercial and industrial
$
20

 
$
20

Commercial real estate
3,171

 
4,016

Residential real estate
1,392

 
1,138

Consumer and other
—

 
138

Total
$
4,583

 
$
5,312
Credit Risk Profile by Creditworthiness
The following tables illustrate our corporate credit risk profile by creditworthiness category as of September 30, 2016 and December 31, 2015: ໿
໿
(Dollars in thousands)
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
September 30, 2016
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
34,023

 
$
95

 
$
34

 
$
—

 
$
34,152

Construction
21,912

 
—

 
—

 
—

 
21,912

Commercial real estate
451,289

 
8,717

 
5,594

 
—

 
465,600

Residential real estate
139,133

 
563

 
1,770

 
—

 
141,466

Consumer and other
1,060

 
—

 
—

 
—

 
1,060


$
647,417

 
$
9,375

 
$
7,398

 
$
—

 
$
664,190

December 31, 2015
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
19,983

 
$
5

 
$
35

 
$
—

 
$
20,023

Construction
13,348

 
—

 
—

 
—

 
13,348

Commercial real estate
367,305

 
8,957

 
6,000

 
—

 
382,262

Residential real estate
124,915

 
743

 
1,546

 
—

 
127,204

Consumer and other
1,115

 
—

 
138

 
—

 
1,253


$
526,666

 
$
9,705

 
$
7,719

 
$
—

 
$
544,090
Impaired Loans
The following table reflects information about our impaired loans by class as of September 30, 2016 and December 31, 2015:

September 30, 2016
 
December 31, 2015
(Dollars in thousands)
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance

 
 
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
20

 
$
20

 
$
—

 
$
20

 
$
20

 
$
—

Commercial real estate
1,985

 
1,985

 
—

 
2,684

 
2,684

 
—

Residential real estate
1,383

 
1,409

 
—

 
1,123

 
1,152

 
—

With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
2,308

 
2,399

 
90

 
2,476

 
2,476

 
112

Residential real estate
225

 
225

 
2

 
423

 
423

 
79

Consumer and other
—

 
—

 
—

 
138

 
138

 
73

Total:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
20

 
20

 
—

 
20

 
20

 
—

Commercial real estate
4,293

 
4,384

 
90

 
5,160

 
5,160

 
112

Residential real estate
1,608

 
1,634

 
2

 
1,546

 
1,575

 
79

Consumer and other
—

 
—

 
—

 
138

 
138

 
73


$
5,921

 
$
6,038

 
$
92

 
$
6,864

 
$
6,893

 
$
264


໿
The following table presents the average recorded investment and income recognized for the three and nine months ended September 30, 2016 and 2015:

For the Three Months Ended September 30, 2016
 
For the Three Months Ended September 30, 2015
(Dollars in thousands)
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial and industrial
$
20

 
$
—

 
$
20

 
$
—

Commercial real estate
2,002

 
4

 
2,119

 
10

Residential real estate
1,316

 
3

 
904

 
1

Total impaired loans without a related allowance
3,338

 
7

 
3,043

 
11


 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
2,394

 
8

 
2,762

 
8

Residential real estate
184

 
—

 
992

 
3

Consumer and other
—

 
—

 
104

 
—

Total impaired loans with an allowance
2,578

 
8

 
3,858

 
11

Total impaired loans
$
5,916

 
$
15

 
$
6,901

 
$
22




For the Nine Months Ended September 30, 2016
 
For the Nine Months Ended September 30, 2015
(Dollars in thousands)
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial and industrial
$
20

 
$
—

 
$
15

 
$
—

Commercial real estate
2,224

 
16

 
2,439

 
24

Residential real estate
1,188

 
6

 
1,267

 
5

Total impaired loans without a related allowance
3,432

 
22

 
3,721

 
29


 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
Commercial and industrial
—

 
—

 
24

 
—

Commercial real estate
2,546

 
25

 
2,764

 
25

Residential real estate
281

 
—

 
753

 
8

Consumer and other
69

 
—

 
104

 
—

Total impaired loans with an allowance
2,896

 
25

 
3,645

 
33

Total impaired loans
$
6,328

 
$
47

 
$
7,366

 
$
62
Troubled Debt Restructured on Recorded Investment
The following table presents the recorded investment in troubled debt restructured loans, based on payment performance status:
(Dollars in thousands)
Commercial Real Estate
 
Residential Real Estate
 
Total

 
 
 
 
 
September 30, 2016
 
 
 
 
 
Performing
$
1,012

 
$
130

 
$
1,142

Non-performing
1,931

 
—

 
1,931

Total
$
2,943

 
$
130

 
$
3,073

December 31, 2015
 
 
 
 
 
Performing
$
1,144

 
$
409

 
$
1,553

Non-performing
1,831

 
194

 
2,025

Total
$
2,975

 
$
603

 
$
3,578