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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 12 Months Ended
Dec. 31, 2019
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)20192018
Commercial and Non-Residential Real Estate$1,063,828  $941,033  
Residential271,604  294,929  
Home Equity35,106  59,015  
Consumer3,697  9,605  
Total Loans1,374,235  1,304,582  
Deferred loan origination costs and (fees), net306  (216) 
Loans receivable$1,374,541  $1,304,366  
Primary Segments of the Loan Portfolio
The following table summarizes the primary segments of the loan portfolio as of December 31, 2019 and 2018:
(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
December 31, 2019
     Individually evaluated for impairment$7,401  $1,953  $95  $34  $9,483  
     Collectively evaluated for impairment1,056,427  269,651  35,011  3,663  1,364,752  
Total Loans$1,063,828  $271,604  $35,106  $3,697  $1,374,235  
December 31, 2018
     Individually evaluated for impairment$9,734  $2,831  $123  $90  $12,778  
     Collectively evaluated for impairment931,299  292,098  58,892  9,515  1,291,804  
Total Loans$941,033  $294,929  $59,015  $9,605  $1,304,582  
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, 2019 and 2018:
 Impaired Loans with Specific AllowanceImpaired Loans with No Specific AllowanceTotal Impaired Loans
(Dollars in thousands)Recorded InvestmentRelated AllowanceRecorded InvestmentRecorded InvestmentUnpaid Principal Balance
December 31, 2019
Commercial
     Commercial Business$2,606  $249  $644  $3,250  $4,308  
     Commercial Real Estate1,786  325  295  2,081  2,171  
     Acquisition & Development—  —  2,070  2,070  3,467  
          Total Commercial4,392  574  3,009  7,401  9,946  
Residential—  —  1,953  1,953  2,045  
Home Equity—  —  95  95  100  
Consumer—  —  34  34  35  
          Total Impaired Loans$4,392  $574  $5,091  $9,483  $12,126  
December 31, 2018
Commercial
     Commercial Business$4,885  $668  $387  $5,272  $5,292  
     Commercial Real Estate1,842  375  396  2,238  2,300  
     Acquisition & Development—  —  2,224  2,224  3,601  
          Total Commercial6,727  1,043  3,007  9,734  11,193  
Residential—  —  2,831  2,831  2,882  
Home Equity—  —  123  123  123  
Consumer—  —  90  90  316  
          Total Impaired Loans$6,727  $1,043  $6,051  $12,778  $14,514  
Average Recorded Investment in Impaired Loans and Related Interest Income Recognized
December 31, 2019December 31, 2018December 31, 2017
(Dollars in thousands)Average Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash BasisAverage Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash BasisAverage Investment in Impaired LoansInterest Income Recognized on Accrual BasisInterest Income Recognized on Cash Basis
Commercial
  Commercial Business$3,202  $—  $—  $4,052  $51  $106  $3,718  $155  $113  
  Commercial Real Estate3,220  162  140  6,416  159  94  3,199  100  98  
  Acquisition & Development2,151  123  131  1,367  106  8  3,429  9  13  
    Total Commercial8,573  285  271  11,835  316  208  10,346  264  224  
Residential2,719  16  16  2,569  20  14  1,424  13  53  
Home Equity154  2  2  100  2  1  538  1  1  
Consumer45  —  —  149  —  —  187  —  —  
Total$11,491  $303  $289  $14,653  $338  $223  $12,495  $278  $278  
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, 2019 and 2018:
(Dollars in thousands)PassSpecial MentionSubstandardDoubtfulTotal
December 31, 2019
Commercial
     Commercial Business$511,590  $17,398  $11,894  $—  $540,882  
     Commercial Real Estate406,712  3,564  1,494  —  411,770  
     Acquisition & Development106,428  1,869  2,879  —  111,176  
          Total Commercial1,024,730  22,831  16,267  —  1,063,828  
Residential267,367  1,946  2,177  114  271,604  
Home Equity34,641  383  82  —  35,106  
Consumer3,613  56  28  —  3,697  
          Total Loans$1,330,351  $25,216  $18,554  $114  $1,374,235  
December 31, 2018
Commercial
     Commercial Business$432,589  $5,290  $5,652  $—  $443,531  
     Commercial Real Estate371,309  2,071  2,181  —  375,561  
     Acquisition & Development118,754  179  2,879  129  121,941  
          Total Commercial922,652  7,540  10,712  129  941,033  
Residential290,602  2,608  1,600  119  294,929  
Home Equity58,100  876  39  —  59,015  
Consumer9,359  164  19  63  9,605  
          Total Loans$1,280,713  $11,188  $12,370  $311  $1,304,582  
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, 2019 and 2018:
(Dollars in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past DueTotal Past DueTotal LoansNon-Accrual90+ Days Still Accruing
December 31, 2019
Commercial
     Commercial Business$537,602  $3,189  $47  $44  $3,280  $540,882  $2,848  $—  
     Commercial Real Estate411,070  522  178  —  700  411,770  295  —  
     Acquisition & Development110,717  180  —  279  459  111,176  390  —  
          Total Commercial1,059,389  3,891  225  323  4,439  1,063,828  3,533  —  
Residential267,515  3,003  549  537  4,089  271,604  1,461  —  
Home Equity34,382  545  84  95  724  35,106  95  —  
Consumer3,610  1  58  28  87  3,697  34  —  
          Total Loans$1,364,896  $7,440  $916  $983  $9,339  $1,374,235  $5,123  $—  
December 31, 2018
Commercial
     Commercial Business$432,097  $6,380  $1,746  $3,308  $11,434  $443,531  $3,684  $—  
     Commercial Real Estate374,880  681  —  —  681  375,561  385  —  
     Acquisition & Development121,644  —  —  297  297  121,941  426  —  
          Total Commercial928,621  7,061  1,746  3,605  12,412  941,033  4,495  —  
Residential291,665  1,000  760  1,504  3,264  294,929  2,442  —  
Home Equity58,575  400  40  —  440  59,015  84  —  
Consumer9,485  28  10  82  120  9,605  82  —  
          Total Loans$1,288,346  $8,489  $2,556  $5,191  $16,236  $1,304,582  $7,103  $—  
Allowance Activity Activity in the allowance is presented for the periods indicated:
(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
ALL balance at December 31, 2018$8,605  $1,405  $684  $245  $10,939  
     Charge-offs(998) —  —  (10) (1,008) 
     Recoveries1  1  4  49  55  
     Provision2,490  (134) (361) (206) 1,789  
ALL balance at December 31, 2019$10,098  $1,272  $327  $78  $11,775  
Individually evaluated for impairment$574  $—  $—  $—  $574  
Collectively evaluated for impairment$9,524  $1,272  $327  $78  $11,201  
(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
ALL balance at December 31, 2017$7,804  $1,119  $705  $250  $9,878  
     Charge-offs(1,024) (166) —  (290) (1,480) 
     Recoveries15  22  59  5  101  
     Provision1,810  430  (80) 280  2,440  
ALL balance at December 31, 2018$8,605  $1,405  $684  $245  $10,939  
Individually evaluated for impairment$1,043  $—  $—  $—  $1,043  
Collectively evaluated for impairment$7,562  $1,405  $684  $245  $9,896  

(Dollars in thousands)CommercialResidentialHome EquityConsumerTotal
ALL balance at December 31, 2016$7,181  $990  $728  $202  $9,101  
     Charge-offs(1,138) (141) (109) (109) (1,497) 
     Recoveries39  40  4  18  101  
     Provision1,722  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  
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, 2019 and 2018.
New TDR’s 1
December 31, 2019December 31, 2018
(Dollars in thousands)Number of ContractsPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentNumber of ContractsPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
Commercial
     Commercial Business2  $336  $333  2  $272  $210  
     Commercial Real Estate—  —  —  1  11  11  
     Acquisition & Development—  —  —  1  1,798  1,798  
          Total Commercial2  336  333  4  2,081  2,019  
Residential3  246  323  —  —  —  
Home Equity—  —  —  1  39  39  
Consumer—  —  —  1  10  8  
          Total5  $582  $656  6  $2,130  $2,066  
1 The pre-modification and post-modification balances represent the balances outstanding immediately before and after modification of the loan.