Loans and Allowance (Tables)

6 Months Ended

Jun. 30, 2019

Loans and Allowance [Abstract]

Schedule of Classes of Loans

Classes of loans at June 30, 2019 and December 31, 2018 include:

	June 30,		December 31,
	2019		2018
Real estate
Commercial	$	498,992	$	485,808
Commercial construction and development		59,072		53,310
Consumer closed end first mortgage		421,559		464,539
Consumer open end and junior liens		75,218		77,072
Total real estate loans		1,054,841		1,080,729
Other loans
Consumer loans
Auto		56,855		43,667
Boat/RVs		220,470		216,608
Other consumer loans		7,091		6,893
Commercial and industrial		156,950		149,359
Total other loans		441,366		416,527
Total loans		1,496,207		1,497,256
Undisbursed loans in process		(6,169)		(10,096)
Unamortized deferred loan costs, net		9,100		8,783
Allowance for loan losses		(13,435)		(13,281)
Net loans	$	1,485,703	$	1,482,662

Non-Accrual Loans Segregated by Class of Loans

Nonaccrual loans, segregated by class of loans, as of June 30, 2019 and December 31, 2018 are as follows:

	June 30,		December 31,
	2019		2018
Real estate
Commercial	$	848	$	4,782
Commercial construction and development		-		62
Consumer closed end first mortgage		3,984		2,777
Consumer open end and junior liens		170		273
Consumer loans
Auto		50		88
Boat/RVs		616		470
Other consumer loans		27		46
Commercial and industrial		250		91
Total nonaccrual loans	$	5,945	$	8,589

Age Analysis of Past Due Loans Segregated by Class of Loans

An age analysis of the Company’s past due loans, segregated by class of loans, as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019
													Total Loans
													90 Days
	30‑59		60‑89		90 Days		Total				Total		Past Due
	Days Past		Days Past		or More		Past				Loans		and
	Due		Due		Past Due		Due		Current		Receivable		Accruing
Real estate
Commercial	$	2,906	$	21	$	481	$	3,408	$	495,584	$	498,992	$	-
Commercial construction and development		136		-		-		136		58,936		59,072		-
Consumer closed end first mortgage		2,076		1,069		3,304		6,449		415,110		421,559		-
Consumer open end and junior liens		358		157		110		625		74,593		75,218		-
Consumer loans
Auto		289		120		41		450		56,405		56,855		-
Boat/RVs		1,429		483		521		2,433		218,037		220,470		-
Other consumer loans		60		11		20		91		7,000		7,091		-
Commercial and industrial		1,000		199		250		1,449		155,501		156,950		-
Total	$	8,254	$	2,060	$	4,727	$	15,041	$	1,481,166	$	1,496,207	$	-

	December 31, 2018
													Total Loans
													90 Days
	30‑59		60‑89		90 Days		Total				Total		Past Due
	Days Past		Days Past		or More		Past				Loans		and
	Due		Due		Past Due		Due		Current		Receivable		Accruing
Real estate
Commercial	$	1,145	$	536	$	4,377	$	6,058	$	479,750	$	485,808	$	-
Commercial construction and development		4,633		-		61		4,694		48,616		53,310		-
Consumer closed end first mortgage		7,847		1,662		2,696		12,205		452,334		464,539		517
Consumer open end and junior liens		353		114		220		687		76,385		77,072		-
Consumer loans
Auto		257		16		72		345		43,322		43,667		-
Boat/RVs		2,174		594		350		3,118		213,490		216,608		-
Other consumer loans		65		8		41		114		6,779		6,893		-
Commercial and industrial		617		93		91		801		148,558		149,359		-
Total	$	17,091	$	3,023	$	7,908	$	28,022	$	1,469,234	$	1,497,256	$	517

Impaired Loans

The following tables present impaired loans as of and for the three and six month periods ended June 30, 2019 and 2018 and as of and for the year ended December 31, 2018.

	June 30, 2019
							Average		Average		Interest
			Unpaid				Investment in		Investment		Income		Interest
	Recorded		Principal		Specific		Impaired		in Impaired		Recognized –		Income
	Balance		Balance		Allowance		Loans - QTD		Loans - YTD		QTD		Recognized - YTD
Loans without a specific valuation allowance
Real estate
Commercial	$	5,610	$	5,610	$	-	$	5,871	$	6,080	$	73	$	242
Commercial construction and development		376		376		-		458		489		4		9
Consumer closed end first mortgage		844		844		-		844		942		-		-
Commercial and industrial		50		50		-		104		113		1		2
Loans with a specific valuation allowance
Real estate
Consumer closed end first mortgage		335		335		40		335		223		-		-
Total
Real estate
Commercial	$	5,610	$	5,610	$	-	$	5,871	$	6,080	$	73	$	242
Commercial construction and development	$	376	$	376	$	-	$	458	$	489	$	4	$	9
Consumer closed end first mortgage	$	1,179	$	1,179	$	40	$	1,179	$	1,165	$	-	$	-
Commercial and industrial	$	50	$	50	$	-	$	104	$	113	$	1	$	2
Total	$	7,215	$	7,215	$	40	$	7,612	$	7,847	$	78	$	253

	June 30, 2018
							Average		Average		Interest
			Unpaid				Investment in		Investment		Income		Interest
	Recorded		Principal		Specific		Impaired		in Impaired		Recognized –		Income
	Balance		Balance		Allowance		Loans - QTD		Loans - YTD		QTD		Recognized - YTD
Loans without a specific valuation allowance
Real estate
Commercial	$	705	$	705	$	-	$	753	$	794	$	-	$	-
Commercial construction and development		639		639		-		653		669		7		14
Consumer closed end first mortgage		1,071		1,071		-		1,241		1,341		-		1
Commercial and industrial		144		144		-		148		190		2		2
Loans with a specific valuation allowance
Real estate
Commercial		214		214		100		214		214		-		-
Total
Real estate
Commercial	$	919	$	919	$	100	$	967	$	1,008	$	-	$	-
Commercial construction and development	$	639	$	639	$	-	$	653	$	669	$	7	$	14
Consumer closed end first mortgage	$	1,071	$	1,071	$	-	$	1,241	$	1,341	$	-	$	1
Commercial and industrial	$	144	$	144	$	-	$	148	$	190	$	2	$	2
Total	$	2,773	$	2,773	$	100	$	3,009	$	3,208	$	9	$	17

	December 31, 2018
							Average
			Unpaid				Investment		Interest
	Recorded		Principal		Specific		in Impaired		Income
	Balance		Balance		Allowance		Loans		Recognized
Loans without a specific valuation allowance
Real estate
Commercial	$	6,324	$	6,377	$	-	$	1,882	$	-
Commercial construction and development		549		549		-		633		27
Consumer closed end first mortgage		1,137		1,137		-		1,260		-
Commercial and industrial		131		131		-		167		5
Loans with a specific valuation allowance
Real estate
Commercial		174		214		100		206		-
Total
Real estate
Commercial	$	6,498	$	6,591	$	100	$	2,088	$	-
Commercial construction and development	$	549	$	549	$	-	$	633	$	27
Consumer closed end first mortgage	$	1,137	$	1,137	$	-	$	1,260	$	-
Commercial and industrial	$	131	$	131	$	-	$	167	$	5
Total	$	8,315	$	8,408	$	100	$	4,148	$	32

Commercial and Retail Credit Exposure Credit Risk Profile by Internal Rating

	June 30, 2019
	Commercial								Consumer
			Special
	Pass		Mention		Substandard		Doubtful		Pass		Substandard		Total
Real estate
Commercial	$	476,281	$	13,624	$	9,087	$	-					$	498,992
Commercial construction and development		51,567		7,130		375		-						59,072
Consumer closed end first mortgage									$	416,735	$	4,824		421,559
Consumer open end and junior liens										75,006		212		75,218
Other loans
Consumer loans
Auto										56,788		67		56,855
Boat/RVs										219,805		665		220,470
Other consumer loans										7,064		27		7,091
Commercial and industrial		151,182		1,054		4,714		-						156,950
	$	679,030	$	21,808	$	14,176	$	-	$	775,398	$	5,795	$	1,496,207

	December 31, 2018
	Commercial								Consumer
			Special
	Pass		Mention		Substandard		Doubtful		Pass		Substandard		Total
Real estate
Commercial	$	465,888	$	9,501	$	10,419	$	-					$	485,808
Commercial construction and development		46,649		6,112		549		-						53,310
Consumer closed end first mortgage									$	459,771	$	4,768		464,539
Consumer open end and junior liens										76,752		320		77,072
Other loans
Consumer loans
Auto										43,559		108		43,667
Boat/RVs										215,830		778		216,608
Other consumer loans										6,835		58		6,893
Commercial and industrial		141,705		4,009		3,645		-						149,359
	$	654,242	$	19,622	$	14,613	$	-	$	802,747	$	6,032	$	1,497,256

Activity in Allowance for Loan Losses by Portfolio Segment

The following tables detail activity in the allowance for loan losses by portfolio segment for the three and six month periods ended June 30, 2019 and 2018, respectively. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other segments.

	Three Months Ended June 30, 2019
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of period	$	8,401	$	1,545	$	3,418	$	13,364
Provision charged (credited) to expense		172		(151)		454		475
Losses charged off		(43)		(32)		(399)		(474)
Recoveries		10		1		59		70
Balance, end of period	$	8,540	$	1,363	$	3,532	$	13,435

	Three Months Ended June 30, 2018
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of period	$	7,974	$	1,700	$	2,863	$	12,537
Provision charged (credited) to expense		59		(38)		479		500
Losses charged off		(2)		(57)		(309)		(368)
Recoveries		12		1		47		60
Balance, end of period	$	8,043	$	1,606	$	3,080	$	12,729

	Six Months Ended June 30, 2019
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	8,426	$	1,548	$	3,307	$	13,281
Provision charged (credited) to expense		198		(114)		866		950
Losses charged off		(98)		(73)		(746)		(917)
Recoveries		14		2		105		121
Balance, end of period	$	8,540	$	1,363	$	3,532	$	13,435

	Six Months Ended June 30, 2018
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	7,704	$	1,761	$	2,922	$	12,387
Provision charged (credited) to expense		467		(87)		570		950
Losses charged off		(140)		(77)		(523)		(740)
Recoveries		12		9		111		132
Balance, end of period	$	8,043	$	1,606	$	3,080	$	12,729

The following tables provide a breakdown of the allowance for loan losses and loan portfolio balances by segment as of June 30, 2019 and 2018, and December 31, 2018.

	June 30, 2019
	Commercial		Mortgage		Consumer		Total
Allowance balances
Individually evaluated for impairment	$	-	$	40	$	-	$	40
Collectively evaluated for impairment		8,540		1,323		3,532		13,395
Total allowance for loan losses	$	8,540	$	1,363	$	3,532	$	13,435
Loan balances
Individually evaluated for impairment	$	6,036	$	1,179	$	-	$	7,215
Collectively evaluated for impairment		708,978		420,380		359,634		1,488,992
Gross loans	$	715,014	$	421,559	$	359,634	$	1,496,207

	June 30, 2018
	Commercial		Mortgage		Consumer		Total
Allowance balances
Individually evaluated for impairment	$	100	$	-	$	-	$	100
Collectively evaluated for impairment		7,943		1,606		3,080		12,629
Loans acquired with deteriorated credit quality		-		-		-		-
Total allowance for loan losses	$	8,043	$	1,606	$	3,080	$	12,729
Loan balances
Individually evaluated for impairment	$	1,702	$	1,071	$	-	$	2,773
Collectively evaluated for impairment		683,847		473,906		307,220		1,464,973
Loans acquired with deteriorated credit quality		-		-		-		-
Gross loans	$	685,549	$	474,977	$	307,220	$	1,467,746

	December 31, 2018
	Commercial		Mortgage		Consumer		Total
Allowance balances
Individually evaluated for impairment	$	100	$	-	$	-	$	100
Collectively evaluated for impairment		8,326		1,548		3,307		13,181
Loans acquired with deteriorated credit quality		-		-		-		-
Total allowance for loan losses	$	8,426	$	1,548	$	3,307	$	13,281
Loan balances
Individually evaluated for impairment	$	7,178	$	1,137	$	-	$	8,315
Collectively evaluated for impairment		681,299		463,402		344,240		1,488,941
Loans acquired with deteriorated credit quality		-		-		-		-
Gross loans	$	688,477	$	464,539	$	344,240	$	1,497,256

Troubled Debts Restructured

The following tables describe troubled debts restructured during the three and six month periods ended June 30, 2019 and 2018:

	Three Months Ended
	June 30, 2019					June 30, 2018
	No. of	Pre-Modification		Post-Modification		No. of	Pre-Modification		Post-Modification
	Loans	Recorded Balance		Recorded Balance		Loans	Recorded Balance		Recorded Balance
Real estate
Consumer closed end first mortgage	3	$	41	$	43	1	$	49	$	47
Other loans
Consumer Loans
Auto	-		-		-	1		10		10
Boat/RVs	1		37		37	1		19		19

	Six Months Ended
	June 30, 2019					June 30, 2018
	No. of	Pre-Modification		Post-Modification		No. of	Pre-Modification		Post-Modification
	Loans	Recorded Balance		Recorded Balance		Loans	Recorded Balance		Recorded Balance
Real estate
Consumer closed end first mortgage	4		51		53	4		187		187
Consumer open end and junior liens	1		7		7	4		82		94
Other loans
Consumer loans
Auto	1		17		17	1		10		10
Boat/RVs	2		45		45	1		19		19
Commercial and industrial	-		-		-	1		61		61

Newly Restructured Loans by Types

Newly restructured loans by type for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30, 2019
							Total
	Rate		Term		Combination		Modification
Real estate
Consumer closed end first mortgage	$	-	$	-	$	43	$	43
Other loans
Consumer loans
Boat/RVs		-		-		37		37

	Three Months Ended June 30, 2018
							Total
	Rate		Term		Combination		Modification
Real estate
Consumer closed end first mortgage	$	-	$	-	$	47	$	47
Other loans
Consumer loans
Auto		-		10		-		10
Boat/RVs		-		19		-		19

	Six Months Ended June 30, 2019
							Total
	Rate		Term		Combination		Modification
Real estate
Consumer closed end first mortgage	$	-	$	-	$	53	$	53
Consumer open end and junior liens		-		7		-		7
Other loans
Consumer loans
Auto		-		-		17		17
Boat/RVs		-		8		37		45

	Six Months Ended June 30, 2018
							Total
	Rate		Term		Combination		Modification
Real Estate
Consumer closed end first mortgage	$	-	$	-	$	187	$	187
Consumer open end and junior liens		-		35		59		94
Other loans
Consumer loans
Auto		-		10		-		10
Boat/RVs		-		19		-		19
Commercial and industrial		-		61		-		61

Troubled Debts Restructured Defaulted

The following table describes troubled debt restructurings that have subsequently defaulted during the six months ended June 30, 2019 and 2018. There were no defaults on loans modified as troubled debt restructurings made in the three months ended June 30, 2019 and 2018.  A default is defined as any loans that become 90 days past due.

	Six Months Ended
	June 30, 2019			June 30, 2018
		Post-Modification Outstanding			Post-Modification Outstanding
	No. of Loans	Recorded Balance		No. of Loans	Recorded Balance
Other Loans
Consumer Loans
Boat/RV	1	$	263	-	$	-