Schedule of commercial and consumer credit exposure

COMMERCIAL CREDIT EXPOSURE

CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE

(DOLLARS IN THOUSANDS)

June 30, 2018	Commercial Mortgages		Agriculture Mortgages		Construction		Commercial and Industrial		Tax-free Loans		Agriculture Loans		Total
	$		$		$		$		$		$		$
Grade:
Pass		88,902		142,476		16,682		45,616		21,566		17,193		332,435
Special Mention		271		4,027		535		567		204		361		5,965
Substandard		2,383		6,531		1,000		1,334		—		655		11,903
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—

Total		91,556		153,034		18,217		47,517		21,770		18,209		350,303

December 31, 2017	Commercial Mortgages		Agriculture Mortgages		Construction		Commercial and Industrial		Tax-free Loans		Agriculture Loans		Total
	$		$		$		$		$		$		$
Grade:
Pass		86,259		143,037		17,670		37,947		20,514		17,798		323,225
Special Mention		160		3,873		—		1,015		208		270		5,526
Substandard		3,653		5,140		1,000		2,464		—		726		12,983
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—

Total		90,072		152,050		18,670		41,426		20,722		18,794		341,734

The following tables present the balances of consumer loans by classes of the loan portfolio based on payment performance as of June 30, 2018 and December 31, 2017:

CONSUMER CREDIT EXPOSURE

CREDIT RISK PROFILE BY PAYMENT PERFORMANCE

(DOLLARS IN THOUSANDS)

June 30, 2018	1-4 Family Residential Mortgages		Home Equity Loans		Home Equity Lines of Credit		Consumer		Total
Payment performance:	$		$		$		$		$

Performing		192,321		10,184		62,769		10,193		275,467
Non-performing		833		—		167		22		1,022

Total		193,154		10,184		62,936		10,215		276,489

December 31, 2017	1-4 Family Residential Mortgages		Home Equity Loans		Home Equity Lines of Credit		Consumer		Total
Payment performance:	$		$		$		$		$

Performing		176,576		11,181		61,074		5,305		254,136
Non-performing		395		—		30		15		440

Total		176,971		11,181		61,104		5,320		254,576

Schedule of nonaccrual loans by class

The following table presents nonaccrual loans by classes of the loan portfolio as of June 30, 2018 and December 31, 2017:

NONACCRUAL LOANS BY LOAN CLASS

(DOLLARS IN THOUSANDS)

	June 30,		December 31,
	2018		2017
	$		$

Commercial real estate
Commercial mortgages		391		393
Agriculture mortgages		—		—
Construction		—		—
Consumer real estate
1-4 family residential mortgages		515		—
Home equity loans		138		—
Home equity lines of credit		—		—
Commercial and industrial
Commercial and industrial		—		—
Tax-free loans		—		—
Agriculture loans		—		—
Consumer		20		—
Total		1,064		393

Schedule of allowance for credit losses

The following table details activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2018:

ALLOWANCE FOR CREDIT LOSSES

(DOLLARS IN THOUSANDS)

	Commercial Real Estate			Consumer Real Estate			Commercial and Industrial			Consumer			Unallocated		Total
	$			$			$			$			$		$
Allowance for credit losses:
Beginning balance - December 31, 2017		3,863			2,052			1,829			98			398		8,240

Charge-offs		(224	)		—			(110	)		(18	)		—		(352	)
Recoveries		—			—			4			1			—		5
Provision		408			137			(422	)		(9	)		76		190

Balance - March 31, 2018		4,047			2,189			1,301			72			474		8,083

Charge-offs		—			—			—			(8	)		—		(8	)
Recoveries		—			—			2			4			—		6
Provision		(43	)		(7	)		(21	)		63			98		90

Ending Balance - June 30, 2018		4,004			2,182			1,282			131			572		8,171

The following table details activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2017:

ALLOWANCE FOR CREDIT LOSSES

(DOLLARS IN THOUSANDS)

	Commercial Real Estate			Consumer Real Estate		Commercial and Industrial			Consumer			Unallocated			Total
	$			$		$			$			$			$
Allowance for credit losses:
Beginning balance - December 31, 2016		3,795			1,652		1,552			82			481			7,562

Charge-offs		—			—		(7	)		(4	)		—			(11	)
Recoveries		—			20		9			2			—			31
Provision		(275	)		163		95			3			104			90

Balance - March 31, 2017		3,520			1,835		1,649			83			585			7,672

Charge-offs		—			—		—			(3	)		—			(3	)
Recoveries		—			—		10			3			—			13
Provision		208			83		(42	)		36			(165	)		120

Balance - June 30, 2017		3,728			1,918		1,617			119			420			7,802

The following tables present the balance in the allowance for credit losses and the recorded investment in loans receivable by portfolio segment based on impairment method as of June 30, 2018 and December 31, 2017:

ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE

(DOLLARS IN THOUSANDS)

As of June 30, 2018:	Commercial Real Estate		Consumer Real Estate		Commercial and Industrial		Consumer		Unallocated		Total
	$		$		$		$		$		$
Allowance for credit losses:
Ending balance: individually evaluated
for impairment		71		—		8		—		—		79
Ending balance: collectively evaluated
for impairment		3,933		2,182		1,274		131		572		8,092

Loans receivable:
Ending balance		262,807		266,274		87,496		10,215				626,792
Ending balance: individually evaluated
for impairment		1,956		—		209		—				2,165
Ending balance: collectively evaluated
for impairment		260,851		266,274		87,287		10,215				624,627

As of December 31, 2017:	Commercial Real Estate		Consumer Real Estate		Commercial and Industrial		Consumer		Unallocated		Total
	$		$		$		$		$		$
Allowance for credit losses:
Ending balance: individually evaluated
for impairment		—		—		—		—		—		—
Ending balance: collectively evaluated
for impairment		3,863		2,052		1,829		98		398		8,240

Loans receivable:
Ending balance		260,792		249,256		80,942		5,320				596,310
Ending balance: individually evaluated
for impairment		1,567		—		245		—				1,812
Ending balance: collectively evaluated
for impairment		259,225		249,256		80,697		5,320				594,498