XML 23 R12.htm IDEA: XBRL DOCUMENT v3.19.2
Loans and Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2019
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]  
Loans and Allowance for Loan Losses

Note 3.  Loans and Allowance for Loan Losses

 

The Company’s allowance for loan losses has three basic components: the specific allowance, the general allowance, and the unallocated component. The specific allowance is used to individually allocate an allowance for larger balance, non-homogeneous loans identified as impaired. The general allowance is used for estimating the loss on pools of smaller balance, homogeneous loans, including 1-4 family mortgage loans and other consumer loans. Also, the general allowance is used for the remaining pool of larger balance, non-homogeneous loans which were not identified as impaired. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

 

The following tables present the total allowance for loan losses by portfolio segment for the periods presented.

 

 

 

June 30, 2019

 

(In thousands)

 

Commercial and Industrial

 

 

Commercial Real Estate

 

 

Construction and Land

 

 

Consumer

 

 

Student

 

 

Residential

Real Estate

 

 

Home Equity Lines of Credit

 

 

Unallocated

 

 

Total

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance, December 31, 2018

 

$

483

 

 

$

1,738

 

 

$

635

 

 

$

145

 

 

$

68

 

 

$

1,311

 

 

$

446

 

 

$

350

 

 

$

5,176

 

Charge-offs

 

 

(74

)

 

 

-

 

 

 

-

 

 

 

(23

)

 

 

(10

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(107

)

Recoveries

 

 

1

 

 

 

75

 

 

 

-

 

 

 

9

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

85

 

Provision (recovery)

 

 

162

 

 

 

(34

)

 

 

15

 

 

 

10

 

 

 

9

 

 

 

137

 

 

 

(44

)

 

 

-

 

 

 

255

 

Ending balance,

June 30, 2019

 

$

572

 

 

$

1,779

 

 

$

650

 

 

$

141

 

 

$

67

 

 

$

1,448

 

 

$

402

 

 

$

350

 

 

$

5,409

 

Ending balances individually evaluated for impairment

 

$

158

 

 

$

139

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

86

 

 

$

-

 

 

$

383

 

Ending balances collectively evaluated for impairment

 

$

414

 

 

$

1,640

 

 

$

650

 

 

$

141

 

 

$

67

 

 

$

1,448

 

 

$

316

 

 

$

350

 

 

$

5,026

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

575

 

 

$

2,895

 

 

$

726

 

 

$

-

 

 

$

-

 

 

$

690

 

 

$

751

 

 

 

 

 

 

$

5,637

 

Collectively evaluated for impairment

 

 

28,530

 

 

 

178,182

 

 

 

64,608

 

 

 

5,372

 

 

 

8,583

 

 

 

213,385

 

 

 

39,705

 

 

 

 

 

 

 

538,365

 

Ending balance,

June 30, 2019

 

$

29,105

 

 

$

181,077

 

 

$

65,334

 

 

$

5,372

 

 

$

8,583

 

 

$

214,075

 

 

$

40,456

 

 

 

 

 

 

$

544,002

 

 

 

 

June 30, 2018

 

(In thousands)

 

Commercial and Industrial

 

 

Commercial Real Estate

 

 

Construction and Land

 

 

Consumer

 

 

Student

 

 

Residential

Real Estate

 

 

Home Equity Lines of Credit

 

 

Unallocated

 

 

Total

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance, December 31, 2017

 

$

518

 

 

$

1,609

 

 

$

879

 

 

$

105

 

 

$

72

 

 

$

1,174

 

 

$

387

 

 

$

350

 

 

$

5,094

 

Charge-offs

 

 

(88

)

 

 

-

 

 

 

(312

)

 

 

(10

)

 

 

(15

)

 

 

-

 

 

 

(80

)

 

 

-

 

 

 

(505

)

Recoveries

 

 

14

 

 

 

10

 

 

 

-

 

 

 

4

 

 

 

-

 

 

 

48

 

 

 

1

 

 

 

-

 

 

 

77

 

Provision (recovery)

 

 

(15

)

 

 

217

 

 

 

(115

)

 

 

10

 

 

 

21

 

 

 

77

 

 

 

117

 

 

 

-

 

 

 

312

 

Ending balance, June 30, 2018

 

$

429

 

 

$

1,836

 

 

$

452

 

 

$

109

 

 

$

78

 

 

$

1,299

 

 

$

425

 

 

$

350

 

 

$

4,978

 

 

 

 

December 31, 2018

 

(In thousands)

 

Commercial and Industrial

 

 

Commercial Real Estate

 

 

Construction and Land

 

 

Consumer

 

 

Student

 

 

Residential

Real Estate

 

 

Home Equity Lines of Credit

 

 

Unallocated

 

 

Total

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance, December 31, 2017

 

$

518

 

 

$

1,609

 

 

$

879

 

 

$

105

 

 

$

72

 

 

$

1,174

 

 

$

387

 

 

$

350

 

 

$

5,094

 

Charge-offs

 

 

(106

)

 

 

(47

)

 

 

(312

)

 

 

(14

)

 

 

(24

)

 

 

(200

)

 

 

(80

)

 

 

-

 

 

 

(783

)

Recoveries

 

 

35

 

 

 

70

 

 

 

-

 

 

 

4

 

 

 

-

 

 

 

248

 

 

 

1

 

 

 

-

 

 

 

358

 

Provision

 

 

36

 

 

 

106

 

 

 

68

 

 

 

50

 

 

 

20

 

 

 

89

 

 

 

138

 

 

 

-

 

 

 

507

 

Ending balance, December 31, 2018

 

$

483

 

 

$

1,738

 

 

$

635

 

 

$

145

 

 

$

68

 

 

$

1,311

 

 

$

446

 

 

$

350

 

 

$

5,176

 

Ending balances individually evaluated for impairment

 

$

176

 

 

$

159

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

68

 

 

$

-

 

 

$

403

 

Ending balances collectively evaluated for impairment

 

$

307

 

 

$

1,579

 

 

$

635

 

 

$

145

 

 

$

68

 

 

$

1,311

 

 

$

378

 

 

$

350

 

 

$

4,773

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

 

$

522

 

 

$

3,191

 

 

$

2,679

 

 

$

-

 

 

$

-

 

 

$

707

 

 

$

567

 

 

 

 

 

 

$

7,666

 

Collectively evaluated for impairment

 

 

26,199

 

 

 

184,606

 

 

 

68,730

 

 

 

5,562

 

 

 

9,158

 

 

 

205,238

 

 

 

42,205

 

 

 

 

 

 

 

541,698

 

Ending balance, December 31, 2018

 

$

26,721

 

 

$

187,797

 

 

$

71,409

 

 

$

5,562

 

 

$

9,158

 

 

$

205,945

 

 

$

42,772

 

 

 

 

 

 

$

549,364

 

 

 


Loans by credit quality indicators were as follows at the dates presented:

 

 

 

June 30, 2019

 

(In thousands)

 

Commercial and Industrial

 

 

Commercial Real Estate

 

 

Construction and Land

 

 

Consumer

 

 

Student

 

 

Residential

Real Estate

 

 

Home Equity Lines of Credit

 

 

Total

 

Grade:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

26,643

 

 

$

172,074

 

 

$

61,774

 

 

$

5,372

 

 

$

8,583

 

 

$

206,686

 

 

$

37,697

 

 

$

518,829

 

Special mention

 

 

1,568

 

 

 

4,546

 

 

 

2,653

 

 

 

-

 

 

 

-

 

 

 

1,157

 

 

 

82

 

 

 

10,006

 

Substandard

 

 

894

 

 

 

4,457

 

 

 

907

 

 

 

-

 

 

 

-

 

 

 

6,232

 

 

 

2,677

 

 

 

15,167

 

Doubtful

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$

29,105

 

 

$

181,077

 

 

$

65,334

 

 

$

5,372

 

 

$

8,583

 

 

$

214,075

 

 

$

40,456

 

 

$

544,002

 

 

 

December 31, 2018

 

(In thousands)

Commercial and Industrial

 

 

Commercial Real Estate

 

 

Construction and Land

 

 

Consumer

 

 

Student

 

 

Residential

Real Estate

 

 

Home Equity Lines of Credit

 

 

Total

 

Grade:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

24,285

 

 

$

178,525

 

 

$

67,767

 

 

$

5,559

 

 

$

9,158

 

 

$

198,566

 

 

$

39,145

 

 

$

523,005

 

Special mention

 

1,540

 

 

 

4,643

 

 

 

2,282

 

 

 

3

 

 

 

-

 

 

 

1,496

 

 

 

424

 

 

 

10,388

 

Substandard

 

896

 

 

 

4,629

 

 

 

1,360

 

 

 

-

 

 

 

-

 

 

 

5,883

 

 

 

3,203

 

 

 

15,971

 

Doubtful

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

$

26,721

 

 

$

187,797

 

 

$

71,409

 

 

$

5,562

 

 

$

9,158

 

 

$

205,945

 

 

$

42,772

 

 

$

549,364

 

 

The past due status of loans at the dates presented were:

  

 

 

June 30, 2019

 

(In thousands)

 

30-59 Days

Past Due

 

 

60-89 Days

Past Due

 

 

90+ Days Past Due

 

 

Total Past Due

 

 

Current

 

 

Total Loans

 

 

90+ Days Past Due and Accruing

 

 

Nonaccruals

 

Commercial and industrial

 

$

66

 

 

$

188

 

 

$

-

 

 

$

254

 

 

$

28,851

 

 

$

29,105

 

 

$

-

 

 

$

231

 

Commercial real estate

 

 

-

 

 

 

-

 

 

 

989

 

 

 

989

 

 

 

180,088

 

 

 

181,077

 

 

 

-

 

 

 

989

 

Construction and land

 

 

78

 

 

 

-

 

 

 

-

 

 

 

78

 

 

 

65,256

 

 

 

65,334

 

 

 

-

 

 

 

-

 

Consumer

 

 

5

 

 

 

-

 

 

 

-

 

 

 

5

 

 

 

5,367

 

 

 

5,372

 

 

 

-

 

 

 

-

 

Student

 

 

556

 

 

 

242

 

 

 

484

 

 

 

1,282

 

 

 

7,301

 

 

 

8,583

 

 

 

484

 

 

 

-

 

Residential real estate

 

 

227

 

 

 

109

 

 

 

146

 

 

 

482

 

 

 

213,593

 

 

 

214,075

 

 

 

-

 

 

 

306

 

Home equity lines of credit

 

 

226

 

 

 

-

 

 

 

752

 

 

 

978

 

 

 

39,478

 

 

 

40,456

 

 

 

-

 

 

 

752

 

Total

 

$

1,158

 

 

$

539

 

 

$

2,371

 

 

$

4,068

 

 

$

539,934

 

 

$

544,002

 

 

$

484

 

 

$

2,278

 

 

 

 

December 31, 2018

 

(In thousands)

 

30-59 Days

Past Due

 

 

60-89 Days

Past Due

 

 

90+ Days Past Due

 

 

Total Past Due

 

 

Current

 

 

Total Loans

 

 

90+ Days Past Due and Accruing

 

 

Nonaccruals

 

Commercial and industrial

 

$

365

 

 

$

-

 

 

$

77

 

 

$

442

 

 

$

26,279

 

 

$

26,721

 

 

$

-

 

 

$

135

 

Commercial real estate

 

 

372

 

 

 

-

 

 

 

974

 

 

 

1,346

 

 

 

186,451

 

 

 

187,797

 

 

 

-

 

 

 

974

 

Construction and land

 

 

1,419

 

 

 

-

 

 

 

-

 

 

 

1,419

 

 

 

69,990

 

 

 

71,409

 

 

 

-

 

 

 

-

 

Consumer

 

 

7

 

 

 

18

 

 

 

-

 

 

 

25

 

 

 

5,537

 

 

 

5,562

 

 

 

-

 

 

 

-

 

Student

 

 

747

 

 

 

238

 

 

 

1,227

 

 

 

2,212

 

 

 

6,946

 

 

 

9,158

 

 

 

1,227

 

 

 

-

 

Residential real estate

 

 

278

 

 

 

131

 

 

 

-

 

 

 

409

 

 

 

205,536

 

 

 

205,945

 

 

 

-

 

 

 

317

 

Home equity lines of credit

 

 

403

 

 

 

-

 

 

 

567

 

 

 

970

 

 

 

41,802

 

 

 

42,772

 

 

 

-

 

 

 

567

 

Total

 

$

3,591

 

 

$

387

 

 

$

2,845

 

 

$

6,823

 

 

$

542,541

 

 

$

549,364

 

 

$

1,227

 

 

$

1,993

 

 

The following table presents information related to impaired loans, by portfolio segment, at the dates presented.

 

 

 

June 30, 2019

 

(In thousands)

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

With no specific allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

43

 

 

$

50

 

 

$

-

 

 

$

53

 

 

$

-

 

Commercial real estate

 

 

1,081

 

 

 

1,081

 

 

 

-

 

 

 

1,230

 

 

 

35

 

Construction and land

 

 

726

 

 

 

726

 

 

 

-

 

 

 

740

 

 

 

17

 

Residential real estate

 

 

690

 

 

 

720

 

 

 

-

 

 

 

699

 

 

 

8

 

Home equity lines of credit

 

 

200

 

 

 

200

 

 

 

-

 

 

 

200

 

 

 

3

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

532

 

 

$

532

 

 

$

158

 

 

$

557

 

 

$

15

 

Commercial real estate

 

 

1,814

 

 

 

1,828

 

 

 

139

 

 

 

1,813

 

 

 

19

 

Home equity lines of credit

 

 

551

 

 

 

600

 

 

 

86

 

 

 

559

 

 

 

-

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

575

 

 

$

582

 

 

$

158

 

 

$

610

 

 

$

15

 

Commercial real estate

 

 

2,895

 

 

 

2,909

 

 

 

139

 

 

 

3,043

 

 

 

54

 

Construction and land

 

 

726

 

 

 

726

 

 

 

-

 

 

 

740

 

 

 

17

 

Residential real estate

 

 

690

 

 

 

720

 

 

 

-

 

 

 

699

 

 

 

8

 

Home equity lines of credit

 

 

751

 

 

 

800

 

 

 

86

 

 

 

759

 

 

 

3

 

Total

 

$

5,637

 

 

$

5,737

 

 

$

383

 

 

$

5,851

 

 

$

97

 

 

 

 

December 31, 2018

 

(In thousands)

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

With no specific allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

61

 

 

$

66

 

 

$

-

 

 

$

84

 

 

$

2

 

Commercial real estate

 

 

1,378

 

 

 

1,378

 

 

 

-

 

 

 

1,413

 

 

 

74

 

Construction and land

 

 

2,679

 

 

 

2,679

 

 

 

-

 

 

 

3,289

 

 

 

145

 

Residential real estate

 

 

707

 

 

 

727

 

 

 

-

 

 

 

720

 

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

461

 

 

$

493

 

 

$

176

 

 

$

587

 

 

$

21

 

Commercial real estate

 

 

1,813

 

 

 

1,827

 

 

 

159

 

 

 

1,998

 

 

 

39

 

Home equity lines of credit

 

 

567

 

 

 

600

 

 

 

68

 

 

 

578

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

522

 

 

$

559

 

 

$

176

 

 

$

671

 

 

$

23

 

Commercial real estate

 

 

3,191

 

 

 

3,205

 

 

 

159

 

 

 

3,411

 

 

 

113

 

Construction and land

 

 

2,679

 

 

 

2,679

 

 

 

-

 

 

 

3,289

 

 

 

145

 

Residential real estate

 

 

707

 

 

 

727

 

 

 

-

 

 

 

720

 

 

 

18

 

Home equity lines of credit

 

 

567

 

 

 

600

 

 

 

68

 

 

 

578

 

 

 

-

 

Total

 

$

7,666

 

 

$

7,770

 

 

$

403

 

 

$

8,669

 

 

$

299

 

There were no loans modified as trouble debt restructures (“TDRs”) for the three and six months ended June 30, 2019 and 2018. At June 30, 2019, there were four loans in the portfolio, totaling $2.9 million, that have been identified as TDRs, which were current and performing in accordance with the modified terms.  At December 31, 2018, there were six loans in the portfolio, totaling $3.4 million, that have been identified as TDRs, of which five were current and performing in accordance with the modified terms.  There were no defaults on TDRs occurring within 12 months of modification during the three and six months ended June 30, 2019 and 2018.

 

At June 30, 2019 and 2018, the Company had no foreclosed residential real estate property in its possession or in the process of foreclosure.