Loans and Leases (Tables)

12 Months Ended

Dec. 31, 2019



(dollars in thousands)	2019		2018
Commercial and industrial	$	122,594	$	126,884
Commercial real estate:
Non-owner occupied		99,801		95,515
Owner occupied		130,558		124,092
Construction		4,654		6,761
Consumer:
Home equity installment		36,631		32,729
Home equity line of credit		47,282		52,517
Auto loans		105,870		105,576
Direct finance leases		16,355		17,004
Other		5,634		6,314
Residential:
Real estate		167,164		145,951
Construction		17,770		15,749
Total		754,313		729,092
Less:
Allowance for loan losses		(9,747)		(9,747)
Unearned lease revenue		(903)		(1,028)
Loans and leases, net	$	743,663	$	718,317

Non-Accrual Loans, Segregated by Class



(dollars in thousands)	2019		2018
Commercial and industrial	$	336	$	156
Commercial real estate:
Non-owner occupied		510		472
Owner occupied		1,447		1,634
Consumer:
Home equity installment		65		463
Home equity line of credit		294		34
Auto loans		16		25
Residential:
Real estate		1,006		1,514
Total	$	3,674	$	4,298


	Loans modified as TDRs for the twelve months ended:
(dollars in thousands)	December 31, 2019						December 31, 2018

			Recorded		Increase in			Recorded		Increase in
		Number	investment		allowance		Number	investment		allowance
		of	(as of		(as of		of	(as of		(as of
		contracts	period end)		period end)		contracts	period end)		period end)
Consumer home equity installment		-	$	-	$	-	1	$	413	$	356
Residential real estate		-		-		-	1		316		-
Total		-	$	-	$	-	2	$	729	$	356

In the above table, the period end balance is inclusive of all partial pay downs and charge-offs since the modification date. For all loans modified in a TDR, the pre-modification recorded investment was the same as the post-modification recorded investment.

Loans Modified as TDR that Subsequently Defaulted


Loans modified as a TDR within the previous twelve months that subsequently defaulted during the twelve months ended:
(dollars in thousands)	December 31, 2019				December 31, 2018

		Number of		Recorded		Number of		Recorded
		contracts		investment		contracts		investment
Consumer home equity installment		-	$	-		1	$	413
Residential real estate		-		-		1		316
Total		-	$	-		2	$	729

In the above table, the period end balances are inclusive of all partial pay downs and charge-offs since the modification date.

Past Due Loans



														Recorded
					Past due									investment past
	30 - 59 Days		60 - 89 Days		90 days		Total				Total			due ≥ 90 days
December 31, 2019	past due		past due		or more (1)		past due		Current		loans (3)			and accruing

Commercial and industrial	$	33	$	171	$	336	$	540	$	122,054	$	122,594		$	-
Commercial real estate:
Non-owner occupied		-		70		510		580		99,221		99,801			-
Owner occupied		180		89		1,447		1,716		128,842		130,558			-
Construction		-		-		-		-		4,654		4,654			-
Consumer:
Home equity installment		-		5		65		70		36,561		36,631			-
Home equity line of credit		49		-		294		343		46,939		47,282			-
Auto loans		316		46		16		378		105,492		105,870			-
Direct finance leases		59		79		-		138		15,314		15,452	(2)		-
Other		15		1		-		16		5,618		5,634			-
Residential:
Real estate		29		224		1,006		1,259		165,905		167,164			-
Construction		-		-		-		-		17,770		17,770			-
Total	$	681	$	685	$	3,674	$	5,040	$	748,370	$	753,410		$	-

(1) Includes non-accrual loans. (2) Net of unearned lease revenue of $0.9 million. (3) Includes net deferred loan costs of $3.0 million.



														Recorded
					Past due									investment past
	30 - 59 Days		60 - 89 Days		90 days		Total				Total			due ≥ 90 days
December 31, 2018	past due		past due		or more (1)		past due		Current		loans (3)			and accruing

Commercial and industrial	$	1,711	$	135	$	156	$	2,002	$	124,882	$	126,884		$	-
Commercial real estate:
Non-owner occupied		388		113		472		973		94,542		95,515			-
Owner occupied		263		513		1,634		2,410		121,682		124,092			-
Construction		-		-		-		-		6,761		6,761			-
Consumer:
Home equity installment		50		182		463		695		32,034		32,729			-
Home equity line of credit		725		175		34		934		51,583		52,517			-
Auto loans		262		86		25		373		105,203		105,576			-
Direct finance leases		116		-		-		116		15,860		15,976	(2)		-
Other		79		10		1		90		6,224		6,314			1
Residential:
Real estate		557		573		1,514		2,644		143,307		145,951			-
Construction		-		-		-		-		15,749		15,749			-
Total	$	4,151	$	1,787	$	4,299	$	10,237	$	717,827	$	728,064		$	1

(1) Includes non-accrual loans. (2) Net of unearned lease revenue of $1.0 million. (3) Includes net deferred loan costs of $2.6 million.

Impaired Loans

Impaired loans, segregated by class, as of the period indicated are detailed below:



			Recorded		Recorded
	Unpaid		investment		investment		Total
	principal		with		with no		recorded		Related
(dollars in thousands)	balance		allowance		allowance		investment		allowance
December 31, 2019
Commercial and industrial	$	336	$	336	$	-	$	336	$	221
Commercial real estate:
Non-owner occupied		1,047		333		591		924		232
Owner occupied		2,336		1,052		972		2,024		194
Consumer:
Home equity installment		106		-		65		65		-
Home equity line of credit		362		88		206		294		87
Auto loans		32		-		16		16		-
Residential:										-
Real estate		1,053		678		328		1,006		174
Total	$	5,272	$	2,487	$	2,178	$	4,665	$	908



			Recorded		Recorded
	Unpaid		investment		investment		Total
	principal		with		with no		recorded		Related
(dollars in thousands)	balance		allowance		allowance		investment		allowance
December 31, 2018
Commercial and industrial	$	251	$	156	$	24	$	180	$	41
Commercial real estate:
Non-owner occupied		1,176		715		269		984		36
Owner occupied		3,266		1,473		1,455		2,928		559
Consumer:
Home equity installment		496		414		49		463		356
Home equity line of credit		74		33		1		34		16
Auto loans		31		17		8		25		10
Residential:
Real estate		2,091		29		1,485		1,514		2
Total	$	7,385	$	2,837	$	3,291	$	6,128	$	1,020

The following table presents the average recorded investments in impaired loans and related amount of interest income recognized during the periods indicated below. The average balances are calculated based on the quarter-end balances of impaired loans. Payments received from non-accruing impaired loans are first applied against the outstanding principal balance, then to the recovery of any charged-off amounts. Any excess is treated as a recovery of interest income. Payments received from accruing impaired loans are applied to principal and interest, as contractually agreed upon.



	December 31, 2019						December 31, 2018
					Cash basis						Cash basis
	Average		Interest		interest		Average		Interest		interest
	recorded		income		income		recorded		income		income
(dollars in thousands)	investment		recognized		recognized		investment		recognized		recognized

Commercial and industrial	$	226	$	1	$	-	$	192	$	2	$	-
Commercial real estate:
Non-owner occupied		914		185		-		1,976		98		-
Owner occupied		2,504		40		-		2,578		77		-
Construction		-		-		-		107		205		-
Consumer:
Home equity installment		129		2		-		373		5		-
Home equity line of credit		184		-		-		140		10		-
Auto Loans		39		-		-		31		3		-
Other		-		-		-		4		-		-
Residential:
Real estate		1,212		19		-		1,322		37		-
Total	$	5,208	$	247	$	-	$	6,723	$	437	$	-

Credit Quality Indicator Loan Categories

Commercial credit exposure

Credit risk profile by creditworthiness category




	December 31, 2019
(dollars in thousands)	Pass		Special mention		Substandard		Doubtful		Total

Commercial and industrial	$	115,585	$	2,061	$	4,948	$	-	$	122,594
Commercial real estate - non-owner occupied		92,016		1,360		6,425		-		99,801
Commercial real estate - owner occupied		121,887		2,065		6,606		-		130,558
Commercial real estate - construction		3,687		17		950		-		4,654
Total commercial	$	333,175	$	5,503	$	18,929	$	-	$	357,607

Consumer & Mortgage lending credit exposure

Credit risk profile based on payment activity



	December 31, 2019
(dollars in thousands)	Performing		Non-performing		Total

Consumer
Home equity installment	$	36,566	$	65	$	36,631
Home equity line of credit		46,988		294		47,282
Auto loans		105,854		16		105,870
Direct finance leases (1)		15,452		-		15,452
Other		5,634		-		5,634
Total consumer		210,494		375		210,869
Residential
Real estate		166,158		1,006		167,164
Construction		17,770		-		17,770
Total residential		183,928		1,006		184,934
Total consumer & residential	$	394,422	$	1,381	$	395,803

(1)Net of unearned lease revenue of $0.9 million.

Commercial credit exposure

Credit risk profile by creditworthiness category


	December 31, 2018
(dollars in thousands)	Pass		Special mention		Substandard		Doubtful		Total

Commercial and industrial	$	125,272	$	334	$	1,278	$	-	$	126,884
Commercial real estate - non-owner occupied		90,373		938		4,204		-		95,515
Commercial real estate - owner occupied		116,577		1,685		5,830		-		124,092
Commercial real estate - construction		6,761		-		-		-		6,761
Total commercial	$	338,983	$	2,957	$	11,312	$	-	$	353,252

Consumer & Mortgage lending credit exposure

Credit risk profile based on payment activity


	December 31, 2018
(dollars in thousands)	Performing		Non-performing		Total

Consumer
Home equity installment	$	32,266	$	463	$	32,729
Home equity line of credit		52,483		34		52,517
Auto loans		105,551		25		105,576
Direct finance leases (2)		15,976		-		15,976
Other		6,313		1		6,314
Total consumer		212,589		523		213,112
Residential
Real estate		144,437		1,514		145,951
Construction		15,749		-		15,749
Total residential		160,186		1,514		161,700
Total consumer & residential	$	372,775	$	2,037	$	374,812

(2) Net of unearned lease revenue of $1.0 million.

Schedule of Change in Allowance for Loan Losses and the Recorded Investment in Loans



As of and for the year ended December 31, 2019
	Commercial &		Commercial					Residential
(dollars in thousands)	industrial		real estate		Consumer			real estate		Unallocated		Total
Allowance for Loan Losses:
Beginning balance	$	1,432	$	3,901	$	2,548		$	1,844	$	22	$	9,747
Charge-offs		(184)		(597)		(398)			(330)		-		(1,509)
Recoveries		32		317		67			8		-		424
Provision		204		312		(204)			756		17		1,085
Ending balance	$	1,484	$	3,933	$	2,013		$	2,278	$	39	$	9,747
Ending balance: individually evaluated for impairment	$	221	$	426	$	87		$	174	$	-	$	908
Ending balance: collectively evaluated for impairment	$	1,263	$	3,507	$	1,926		$	2,104	$	39	$	8,839
Loans Receivables:
Ending balance (2)	$	122,594	$	235,013	$	210,869	(1)	$	184,934	$	-	$	753,410
Ending balance: individually evaluated for impairment	$	336	$	2,948	$	375		$	1,006	$	-	$	4,665
Ending balance: collectively evaluated for impairment	$	122,258	$	232,065	$	210,494		$	183,928	$	-	$	748,745

(1) Net of unearned lease revenue of $0.9 million. (2) Includes $3.0 million of net deferred loan costs.



As of and for the year ended December 31, 2018
	Commercial &		Commercial					Residential
(dollars in thousands)	industrial		real estate		Consumer			real estate		Unallocated		Total
Allowance for Loan Losses:
Beginning balance	$	1,374	$	4,060	$	2,063		$	1,608	$	88	$	9,193
Charge-offs		(196)		(268)		(391)			(371)		-		(1,226)
Recoveries		77		42		211			-		-		330
Provision		177		67		665			607		(66)		1,450
Ending balance	$	1,432	$	3,901	$	2,548		$	1,844	$	22	$	9,747
Ending balance: individually evaluated for impairment	$	41	$	595	$	382		$	2	$	-	$	1,020
Ending balance: collectively evaluated for impairment	$	1,391	$	3,306	$	2,166		$	1,842	$	22	$	8,727
Loans Receivables:
Ending balance (2)	$	126,884	$	226,368	$	213,112	(1)	$	161,700	$	-	$	728,064
Ending balance: individually evaluated for impairment	$	180	$	3,912	$	522		$	1,514	$	-	$	6,128
Ending balance: collectively evaluated for impairment	$	126,704	$	222,456	$	212,590		$	160,186	$	-	$	721,936

(1) Net of unearned lease revenue of $1.0 million. (2) Includes $2.6 million of net deferred loan costs.


As of and for the year ended December 31, 2017
	Commercial &		Commercial				Residential
(dollars in thousands)	industrial		real estate		Consumer		real estate		Unallocated		Total
Allowance for Loan Losses:
Beginning balance	$	1,075	$	4,706	$	1,834	$	1,622	$	127	$	9,364
Charge-offs		(143)		(635)		(658)		(309)		-		(1,745)
Recoveries		10		47		67		-		-		124
Provision		432		(58)		820		295		(39)		1,450
Ending balance	$	1,374	$	4,060	$	2,063	$	1,608	$	88	$	9,193

Undiscounted Cash Flows to be Received on Annual Basis for Direct Finance Leases



(dollars in thousands)	Amount

2020	$	6,505
2021		5,072
2022		3,379
2023		1,299
2024		100
2025 and thereafter		-
Total future minimum lease payments receivable		16,355
Less: Unearned income		(903)
Undiscounted cash flows to be received	$	15,452