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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Components of Loans in Consolidated Balance Sheet
The components of loans in the Consolidated Balance Sheet at December 31, were as follows:
(Dollars in thousands)
 
2017
 
2016
Commercial and Non-Residential Real Estate
 
$
783,909

 
$
756,619

Residential Real Estate
 
246,214

 
215,452

Home Equity
 
62,400

 
65,386

Consumer
 
12,783

 
14,511

Total Loans
 
1,105,306

 
1,051,968

Deferred loan origination fees and costs, net
 
635

 
897

Loans receivable
 
$
1,105,941

 
$
1,052,865
Primary Segments of the Loan Portfolio
The following table summarizes the primary segments of the loan portfolio as of December 31, 2017 and 2016:
(Dollars in thousands)
 
Commercial
 
Residential
 
Home Equity
 
Consumer
 
Total
December 31, 2017
 
 
 
 
 
 
 
 
 
 
     Individually evaluated for impairment
 
$
13,796

 
$
1,569

 
$
13

 
$
178

 
$
15,556

     Collectively evaluated for impairment
 
770,113

 
244,645

 
62,387

 
12,605

 
1,089,750

Total Loans
 
$
783,909

 
$
246,214

 
$
62,400

 
$
12,783

 
$
1,105,306

December 31, 2016
 
 
 
 
 
 
 
 
 
 
     Individually evaluated for impairment
 
$
10,781

 
$
1,161

 
$
132

 
$
78

 
$
12,152

     Collectively evaluated for impairment
 
745,838

 
214,291

 
65,254

 
14,433

 
1,039,816

Total Loans
 
$
756,619

 
$
215,452

 
$
65,386

 
$
14,511

 
$
1,051,968
Impaired Loans by Class
The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2017 and 2016:
 
 
Impaired Loans with Specific Allowance
 
Impaired Loans with No Specific Allowance
 
Total Impaired Loans
(Dollars in thousands)
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Recorded Investment
 
Unpaid Principal Balance
December 31, 2017
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
     Commercial Business
 
$
3,283

 
$
22

 
$
979

 
$
4,262

 
$
4,275

     Commercial Real Estate
 
4,603

 
1,150

 
2,814

 
7,417

 
7,921

     Acquisition & Development
 
—

 
—

 
2,117

 
2,117

 
4,090

          Total Commercial
 
7,886

 
1,172

 
5,910

 
13,796

 
16,286

Residential
 
—

 
—

 
1,569

 
1,569

 
1,601

Home Equity
 
—

 
—

 
13

 
13

 
13

Consumer
 
69

 
16

 
109

 
178

 
475

          Total Impaired Loans
 
$
7,955

 
$
1,188

 
$
7,601

 
$
15,556

 
$
18,375

 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
     Commercial Business
 
$
—

 
$
—

 
$
3,342

 
$
3,342

 
$
4,102

     Commercial Real Estate
 
2,757

 
302

 
892

 
3,649

 
3,676

     Acquisition & Development
 
264

 
74

 
3,526

 
3,790

 
6,059

          Total Commercial
 
3,021

 
376

 
7,760

 
10,781

 
13,837

Residential
 
783

 
122

 
378

 
1,161

 
1,166

Home Equity
 
62

 
36

 
70

 
132

 
135

Consumer
 
16

 
9

 
62

 
78

 
285

          Total Impaired Loans
 
$
3,882

 
$
543

 
$
8,270

 
$
12,152

 
$
15,423
Average Recorded Investment in Impaired Loans and Related Interest Income Recognized
The following table presents the average recorded investment in impaired loans and related interest income recognized for the years ended:

 
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
(Dollars in thousands)
 
Average Investment in Impaired Loans
 
Interest Income Recognized on Accrual Basis
 
Interest Income Recognized on Cash Basis
 
Average Investment in Impaired Loans
 
Interest Income Recognized on Accrual Basis
 
Interest Income Recognized on Cash Basis
 
Average Investment in Impaired Loans
 
Interest Income Recognized on Accrual Basis
 
Interest Income Recognized on Cash Basis
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Commercial Business
 
$
3,718

 
$
155

 
$
113

 
$
4,027

 
$
155

 
$
104

 
$
3,153

 
$
156

 
$
114

  Commercial Real Estate
 
3,199

 
100

 
98

 
3,590

 
100

 
75

 
6,618

 
63

 
61

  Acquisition & Development
 
3,429

 
9

 
13

 
3,983

 
9

 
112

 
2,408

 
9

 
10

    Total Commercial
 
10,346

 
264

 
224

 
11,600

 
264

 
291

 
12,179

 
228

 
185

Residential
 
1,424

 
13

 
53

 
928

 
20

 
28

 
920

 
12

 
13

Home Equity
 
538

 
1

 
1

 
50

 
1

 
1

 
28

 
1

 
1

Consumer
 
187

 
—

 
—

 
245

 
—

 
—

 
1

 
—

 
—

Total
 
$
12,495

 
$
278

 
$
278

 
$
12,823

 
$
285

 
$
320

 
$
13,128

 
$
241

 
$
199
Classes of the Loan Portfolio Summarized by the Aggregate Pass and the Criticized Categories
The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of December 31, 2017 and 2016:
(Dollars in thousands)
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
December 31, 2017
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
     Commercial Business
 
$
371,041

 
$
4,816

 
$
4,506

 
$
—

 
$
380,363

     Commercial Real Estate
 
271,751

 
22,995

 
5,961

 
1,149

 
301,856

     Acquisition & Development
 
96,712

 
931

 
2,230

 
1,817

 
101,690

          Total Commercial
 
739,504

 
28,742

 
12,697

 
2,966

 
783,909

Residential
 
242,823

 
3,036

 
223

 
132

 
246,214

Home Equity
 
61,037

 
1,311

 
52

 
—

 
62,400

Consumer
 
12,453

 
174

 
25

 
131

 
12,783

          Total Loans
 
$
1,055,817

 
$
33,263

 
$
12,997

 
$
3,229

 
$
1,105,306

 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
     Commercial Business
 
$
376,734

 
$
2,933

 
$
6,833

 
$
69

 
$
386,569

     Commercial Real Estate
 
240,851

 
26,340

 
3,532

 
737

 
271,460

     Acquisition & Development
 
90,875

 
1,905

 
2,584

 
3,226

 
98,590

          Total Commercial
 
708,460

 
31,178

 
12,949

 
4,032

 
756,619

Residential
 
212,869

 
1,664

 
787

 
132

 
215,452

Home Equity
 
64,706

 
582

 
98

 
—

 
65,386

Consumer
 
14,134

 
302

 
13

 
62

 
14,511

          Total Loans
 
$
1,000,169

 
$
33,726

 
$
13,847

 
$
4,226

 
$
1,051,968
Classes of the Loan Portfolio Summarized by Aging Categories
The following table presents the classes of the loan portfolio summarized by aging categories of performing loans and nonaccrual loans as of December 31, 2017 and 2016:
(Dollars in thousands)
 
Current
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90+ Days Past Due
 
Total Past Due
 
Total Loans
 
Non-Accrual
 
90+ Days Still Accruing
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial Business
 
$
377,901

 
$
512

 
$
1,368

 
$
582

 
$
2,462

 
$
380,363

 
$
1,027

 
$
—

     Commercial Real Estate
 
300,282

 
45

 
1,149

 
380

 
1,574

 
301,856

 
5,206

 
—

     Acquisition & Development
 
99,573

 
—

 
874

 
1,243

 
2,117

 
101,690

 
2,117

 
—

          Total Commercial
 
777,756

 
557

 
3,391

 
2,205

 
6,153

 
783,909

 
8,350

 
—

Residential
 
243,177

 
1,879

 
707

 
451

 
3,037

 
246,214

 
1,157

 
—

Home Equity
 
61,907

 
240

 
240

 
13

 
493

 
62,400

 
13

 
—

Consumer
 
12,634

 
11

 
—

 
138

 
149

 
12,783

 
179

 
—

          Total Loans
 
$
1,095,474

 
$
2,687

 
$
4,338

 
$
2,807

 
$
9,832

 
$
1,105,306

 
$
9,699

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial Business
 
$
386,311

 
$
15

 
$
169

 
$
74

 
$
258

 
$
386,569

 
$
74

 
$
—

     Commercial Real Estate
 
270,339

 
229

 
—

 
892

 
1,121

 
271,460

 
1,375

 
—

     Acquisition & Development
 
96,014

 
—

 
—

 
2,576

 
2,576

 
98,590

 
3,526

 
—

          Total Commercial
 
752,664

 
244

 
169

 
3,542

 
3,955

 
756,619

 
4,975

 
—

Residential
 
212,502

 
2,067

 
419

 
464

 
2,950

 
215,452

 
1,072

 
—

Home Equity
 
64,791

 
525

 
—

 
70

 
595

 
65,386

 
104

 
—

Consumer
 
14,354

 
55

 
34

 
68

 
157

 
14,511

 
78

 
—

          Total Loans
 
$
1,044,311

 
$
2,891

 
$
622

 
$
4,144

 
$
7,657

 
$
1,051,968

 
$
6,229

 
$
—
Allowance Activity
Activity in the allowance is presented for the periods indicated:
(Dollars in thousands)
 
Commercial
 
Residential
 
Home Equity
 
Consumer
 
Total
ALL balance at December 31, 2016
 
$
7,181

 
$
990

 
$
728

 
$
202

 
$
9,101

     Charge-offs
 
(1,138
)
 
(141
)
 
(109
)
 
(109
)
 
(1,497
)
     Recoveries
 
39

 
40

 
4

 
18

 
101

     Provision
 
1,722

 
230

 
82

 
139

 
2,173

ALL balance at December 31, 2017
 
$
7,804

 
$
1,119

 
$
705

 
$
250

 
$
9,878

Individually evaluated for impairment
 
$
1,172

 
$
—

 
$
—

 
$
16

 
$
1,188

Collectively evaluated for impairment
 
$
6,632

 
$
1,119

 
$
705

 
$
234

 
$
8,690

(Dollars in thousands)
 
Commercial
 
Residential
 
Home Equity
 
Consumer
 
Total
ALL balance at December 31, 2015
 
$
6,066

 
$
1,095

 
$
715

 
$
130

 
$
8,006

     Charge-offs
 
(1,995
)
 
(124
)
 
(100
)
 
(338
)
 
(2,557
)
     Recoveries
 
8

 
2

 
9

 
1

 
20

     Provision
 
3,102

 
17

 
104

 
409

 
3,632

ALL balance at December 31, 2016
 
$
7,181

 
$
990

 
$
728

 
$
202

 
$
9,101

Individually evaluated for impairment
 
$
376

 
$
122

 
$
36

 
$
9

 
$
543

Collectively evaluated for impairment
 
$
6,805

 
$
868

 
$
692

 
$
193

 
$
8,558


(Dollars in thousands)
 
Commercial
 
Residential
 
Home Equity
 
Consumer
 
Total
ALL balance at December 31, 2014
 
$
4,363

 
$
962

 
$
691

 
$
207

 
$
6,223

     Charge-offs
 
(708
)
 
(28
)
 
(5
)
 
(6
)
 
(747
)
     Recoveries
 
20

 
2

 
4

 
11

 
37

     Provision
 
2,391

 
159

 
25

 
(82
)
 
2,493

ALL balance at December 31, 2015
 
$
6,066

 
$
1,095

 
$
715

 
$
130

 
$
8,006

Individually evaluated for impairment
 
$
708

 
$
276

 
$
28

 
$
1

 
$
1,013

Collectively evaluated for impairment
 
$
5,358

 
$
819

 
$
687

 
$
129

 
$
6,993
Loans Identified as Troubled Debt Restructuring
The following table presents details related to loans identified as Troubled Debt Restructurings during the years ended December 31, 2017 and 2016.
 
 
New TDR's 1
 
 
December 31, 2017
 
December 31, 2016
(Dollars in thousands)
 
Number of Contracts
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
 
Number of Contracts
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial Business
 
1

 
$
147

 
$
147

 
—

 
$
—

 
$
—

     Commercial Real Estate
 
—

 
—

 
—

 
—

 
—

 
—

     Acquisition & Development
 
—

 
—

 
—

 
—

 
—

 
—

          Total Commercial
 
1

 
147

 
147

 
—

 
—

 
—

Residential
 
—

 
—

 
—

 
—

 
—

 
—

Home Equity
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
—

 
—

 
—

 
—

 
—

 
—

          Total
 
1

 
$
147

 
$
147

 
—

 
$
—

 
$
—


1 The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan.