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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Components of Loans in the Consolidated Balance Sheet
The components of loans in the Consolidated Balance Sheet at September 30, 2018 and December 31, 2017, were as follows:
(Dollars in thousands)
 
September 30, 2018
 
December 31, 2017
Commercial and Non-Residential Real Estate
 
$
929,284

 
$
783,909

Residential Real Estate
 
298,749

 
246,214

Home Equity
 
57,629

 
62,400

Consumer
 
10,463

 
12,783

Total Loans
 
$
1,296,125

 
$
1,105,306

Deferred loan origination fees and costs, net
 
335

 
635

Loans receivable
 
$
1,296,460

 
$
1,105,941
Allowance Activity
The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2018:
(Dollars in thousands)
 
Commercial
 
Residential
 
Home Equity
 
Consumer
 
Total
ALL balance at December 31, 2017
 
$
7,804

 
$
1,119

 
$
705

 
$
250

 
$
9,878

     Charge-offs
 
(616
)
 
(11
)
 
—

 
(52
)
 
(679
)
     Recoveries
 
10

 
19

 
58

 
5

 
92

     Provision (recovery)
 
1,827

 
242

 
(139
)
 
218

 
2,148

ALL balance at September 30, 2018
 
$
9,025

 
$
1,369

 
$
624

 
$
421

 
$
11,439

Individually evaluated for impairment
 
$
1,262

 
$
88

 
$
—

 
$
226

 
$
1,576

Collectively evaluated for impairment
 
$
7,763

 
$
1,281

 
$
624

 
$
195

 
$
9,863


(Dollars in thousands)
 
Commercial
 
Residential
 
Home Equity
 
Consumer
 
Total
ALL balance at June 30, 2018
 
$
8,664

 
$
1,172

 
$
602

 
$
213

 
$
10,651

     Charge-offs
 
(292
)
 
—

 
—

 
(2
)
 
(294
)
     Recoveries
 
—

 
10

 
2

 
1

 
13

     Provision (recovery)
 
653

 
187

 
20

 
209

 
1,069

ALL balance at September 30, 2018
 
$
9,025

 
$
1,369

 
$
624

 
$
421

 
$
11,439

The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2017:
(Dollars in thousands)
 
Commercial
 
Residential
 
Home Equity
 
Consumer
 
Total
ALL balance at December 31, 2016
 
$
7,181

 
$
990

 
$
728

 
$
202

 
$
9,101

     Charge-offs
 
(645
)
 
(141
)
 
(33
)
 
(106
)
 
(925
)
     Recoveries
 
22

 
40

 
3

 
18

 
83

     Provision
 
746

 
155

 
91

 
145

 
1,137

ALL balance at September 30, 2017
 
$
7,304

 
$
1,044

 
$
789

 
$
259

 
$
9,396

Individually evaluated for impairment
 
$
420

 
$
—

 
$
1

 
$
—

 
$
421

Collectively evaluated for impairment
 
$
6,884

 
$
1,044

 
$
788

 
$
259

 
$
8,975


(Dollars in thousands)
 
Commercial
 
Residential
 
Home Equity
 
Consumer
 
Total
ALL balance at June 30, 2017
 
$
7,723

 
$
992

 
$
777

 
$
256

 
$
9,748

     Charge-offs
 
(382
)
 
—

 
—

 
(90
)
 
(472
)
     Recoveries
 
1

 
6

 
1

 
16

 
24

     Provision (recovery)
 
(38
)
 
46

 
11

 
77

 
96

ALL balance at September 30, 2017
 
$
7,304

 
$
1,044

 
$
789

 
$
259

 
$
9,396
Primary Segments of the Loan Portfolio
The following table summarizes the primary segments of the Company loan portfolio as of September 30, 2018:
(Dollars in thousands)
 
Commercial
 
Residential
 
Home Equity
 
Consumer
 
Total
     Individually evaluated for impairment
 
$
11,704

 
$
3,287

 
$
111

 
$
334

 
$
15,436

     Collectively evaluated for impairment
 
917,580

 
295,462

 
57,518

 
10,129

 
1,280,689

Total Loans
 
$
929,284

 
$
298,749

 
$
57,629

 
$
10,463

 
$
1,296,125


The following table summarizes the primary segments of the Company loan portfolio as of September 30, 2017:
(Dollars in thousands)
 
Commercial
 
Residential
 
Home Equity
 
Consumer
 
Total
     Individually evaluated for impairment
 
$
10,457

 
$
1,166

 
$
581

 
$
183

 
$
12,387

     Collectively evaluated for impairment
 
771,739

 
233,070

 
63,692

 
12,912

 
1,081,413

Total Loans
 
$
782,196

 
$
234,236

 
$
64,273

 
$
13,095

 
$
1,093,800
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 September 30, 2018 and December 31, 2017:
 
 
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
September 30, 2018
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
     Commercial Business
 
$
262

 
$
103

 
$
3,615

 
$
3,877

 
$
3,899

     Commercial Real Estate
 
5,090

 
1,159

 
1,580

 
6,670

 
7,490

     Acquisition & Development
 
—

 
—

 
1,157

 
1,157

 
3,437

          Total Commercial
 
5,352

 
1,262

 
6,352

 
11,704

 
14,826

Residential
 
455

 
88

 
2,832

 
3,287

 
3,335

Home Equity
 
—

 
—

 
111

 
111

 
111

Consumer
 
289

 
226

 
45

 
334

 
336

          Total Impaired Loans
 
$
6,096

 
$
1,576

 
$
9,340

 
$
15,436

 
$
18,608

 
 
 
 
 
 
 
 
 
 
 
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
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 periods indicated:
 
 
Nine Months Ended September 30, 2018
 
Three Months Ended September 30, 2018
(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
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
  Commercial Business
 
$
4,192

 
$
119

 
$
106

 
$
3,917

 
$
38

 
$
2

  Commercial Real Estate
 
7,060

 
71

 
63

 
6,836

 
24

 
21

  Acquisition & Development
 
1,399

 
—

 
—

 
1,158

 
—

 
—

    Total Commercial
 
12,651

 
190

 
169

 
11,911

 
62

 
23

Residential
 
2,404

 
15

 
11

 
3,265

 
5

 
3

Home Equity
 
90

 
1

 
1

 
113

 
—

 
—

Consumer
 
139

 
—

 
—

 
233

 
—

 


Total
 
$
15,284

 
$
206

 
$
181

 
$
15,522

 
$
67

 
$
26


 
 
Nine Months Ended September 30, 2017
 
Three Months Ended September 30, 2017
(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
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
  Commercial Business
 
$
3,479

 
$
116

 
$
87

 
$
3,720

 
$
39

 
$
27

  Commercial Real Estate
 
2,783

 
75

 
74

 
2,915

 
25

 
24

  Acquisition & Development
 
3,661

 
7

 
10

 
3,637

 
2

 
3

    Total Commercial
 
9,923

 
198

 
171

 
10,272

 
66

 
54

Residential
 
1,402

 
8

 
44

 
1,256

 
2

 
20

Home Equity
 
641

 
1

 
1

 
644

 
—

 
—

Consumer
 
189

 
—

 
—

 
184

 
—

 
—

Total
 
$
12,155

 
$
207

 
$
216

 
$
12,356

 
$
68

 
$
74
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 September 30, 2018 and December 31, 2017:
(Dollars in thousands)
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
September 30, 2018
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
     Commercial Business
 
$
420,898

 
$
5,197

 
$
4,669

 
$
—

 
$
430,764

     Commercial Real Estate
 
347,789

 
15,839

 
2,342

 
4,184

 
370,154

     Acquisition & Development
 
124,395

 
181

 
2,933

 
857

 
128,366

          Total Commercial
 
893,082

 
21,217

 
9,944

 
5,041

 
929,284

Residential
 
293,946

 
2,628

 
1,600

 
575

 
298,749

Home Equity
 
56,726

 
864

 
39

 
—

 
57,629

Consumer
 
9,965

 
478

 
20

 
—

 
10,463

          Total Loans
 
$
1,253,719

 
$
25,187

 
$
11,603

 
$
5,616

 
$
1,296,125

 
 
 
 
 
 
 
 
 
 
 
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
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 September 30, 2018 and December 31, 2017:
(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
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial Business
 
$
426,207

 
$
1,005

 
$
218

 
$
3,334

 
$
4,557

 
$
430,764

 
$
3,817

 
$
—

     Commercial Real Estate
 
365,633

 
—

 
—

 
4,521

 
4,521

 
370,154

 
4,581

 
—

     Acquisition & Development
 
127,209

 
—

 
—

 
1,157

 
1,157

 
128,366

 
1,157

 
—

          Total Commercial
 
919,049

 
1,005

 
218

 
9,012

 
10,235

 
929,284

 
9,555

 
—

Residential
 
296,324

 
24

 
443

 
1,958

 
2,425

 
298,749

 
2,894

 
—

Home Equity
 
57,450

 
165

 
14

 
—

 
179

 
57,629

 
72

 
—

Consumer
 
10,123

 
23

 
—

 
317

 
340

 
10,463

 
325

 
—

          Total Loans
 
$
1,282,946

 
$
1,217

 
$
675

 
$
11,287

 
$
13,179

 
$
1,296,125

 
$
12,846

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
$
—
Troubled Debt Restructurings on Financing Receivables
 
 
New TDR's 1
 
 
Nine Months Ended September 30, 2018
 
Three Months Ended September 30, 2018
(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
 
2

 
$
272

 
$
272

 
—

 
$
—

 
$
—

     Commercial Real Estate
 
—

 
—

 
—

 
—

 
—

 
—

     Acquisition & Development
 
—

 
—

 
—

 
—

 
—

 
—

          Total Commercial
 
2

 
272

 
272

 
—

 
—

 
—

Residential
 
—

 
—

 
—

 
—

 
—

 
—

Home Equity
 
1

 
39

 
39

 
—

 
—

 
—

Consumer
 
1

 
10

 
10

 
—

 
—

 
—

          Total
 
4

 
$
321

 
$
321

 
—

 
$
—

 
$
—


 
 
New TDR's 1
 
 
Nine Months Ended September 30, 2017
 
Three Months Ended September 30, 2017
(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

 
1

 
$
147

 
$
147

     Commercial Real Estate
 
—

 
—

 
—

 
—

 
—

 
—

     Acquisition & Development
 
—

 
—

 
—

 
—

 
—

 
—

          Total Commercial
 
1

 
147

 
147

 
1

 
147

 
147

Residential
 
—

 
—

 
—

 
—

 
—

 
—

Home Equity
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
—

 
—

 
—

 
—

 
—

 
—

          Total
 
1

 
$
147

 
$
147

 
1

 
$
147

 
$
147



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