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Loans and The Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
A summary of the balances of loans follows: 
 
March 31,
 
December 31,
 
2018
 
2017
 
(In thousands)
Real estate:
 
 
 
1-4 family residential
$
934,595

 
$
922,627

Home equity
75,013

 
80,662

Commercial real estate
849,178

 
834,264

Construction
73,354

 
91,050

 
1,932,140

 
1,928,603

Commercial business
249,285

 
253,509

Consumer
19,911

 
21,698

Total loans
2,201,336

 
2,203,810

Allowance for loan losses
(20,185
)
 
(20,877
)
Discount and fair value adjustments on purchased loans
(1,314
)
 
(1,477
)
Deferred loan costs and fees, net
4,453

 
4,691

Loans, net
$
2,184,290

 
$
2,186,147
Activity in Allowance for Loan Losses
Activity in the allowance for loan losses for the three months ended March 31, 2018 and 2017, by loan segment, follows: 

1-4 Family
Residential

Home
Equity

Commercial
Real Estate

Construction

Commercial
Business

Consumer

Total
 
(In thousands)
Three Months Ended March 31, 2018













Allowance at December 31, 2017
$
5,076

 
$
699

 
$
9,584


$
1,708


$
3,473


$
337


$
20,877

Provision (credit) for loan losses
23

 
(68
)
 
121


(427
)
 
(95
)
 
(14
)
 
(460
)
Loans charged-off
—

 
—

 
(194
)

—


(25
)

(21
)

(240
)
Recoveries
—

 
—

 
—


—


—


8

 
8

Allowance at March 31, 2018
$
5,099

 
$
631

 
$
9,511


$
1,281


$
3,353


$
310


$
20,185

Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance at December 31, 2016
$
4,846

 
$
537

 
$
8,374

 
$
1,353

 
$
3,206

 
$
434

 
$
18,750

Provision (credit) for loan losses
80

 
21

 
(41
)
 
104

 
(89
)
 
(18
)
 
57

Loans charged-off
—

 
—

 
—

 
—

 
—

 
(15
)
 
(15
)
Recoveries
74

 
—

 
—

 
—

 
9

 
—

 
83

Allowance at March 31, 2017
$
5,000

 
$
558

 
$
8,333

 
$
1,457

 
$
3,126

 
$
401

 
$
18,875
Allowance for Credit Losses on Financing Receivables
Additional information pertaining to the allowance for loan losses at March 31, 2018 and December 31, 2017 is as follows:
 
1-4 Family
Residential
 
Home
Equity
 
Commercial
Real Estate
 
Construction
 
Commercial
Business
 
Consumer
 
Total
 
(In thousands)
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance related to impaired loans
$
51

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1

 
$
52

Allowance related to non-impaired loans
5,048

 
631

 
9,511

 
1,281

 
3,353

 
309

 
20,133

Total allowance for loan losses
$
5,099

 
$
631

 
$
9,511

 
$
1,281

 
$
3,353

 
$
310

 
$
20,185

Impaired loans
$
6,027

 
$
1,327

 
$
2,397

 
$
—

 
$
305

 
$
92

 
$
10,148

Non-impaired loans
928,568

 
73,686

 
846,781

 
73,354

 
248,980

 
19,819

 
2,191,188

Total loans
$
934,595

 
$
75,013

 
$
849,178

 
$
73,354

 
$
249,285

 
$
19,911

 
$
2,201,336

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance related to impaired loans
$
80

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1

 
$
81

Allowance related to non-impaired loans
4,996

 
699

 
9,584

 
1,708

 
3,473

 
336

 
20,796

Total allowance for loan losses
$
5,076

 
$
699

 
$
9,584

 
$
1,708

 
$
3,473

 
$
337

 
$
20,877

Impaired loans
$
5,949

 
$
1,387

 
$
4,744

 
$
—

 
$
—

 
$
202

 
$
12,282

Non-impaired loans
916,678

 
79,275

 
829,520

 
91,050

 
253,509

 
21,496

 
2,191,528

Total loans
$
922,627

 
$
80,662

 
$
834,264

 
$
91,050

 
$
253,509

 
$
21,698

 
$
2,203,810
Past Due Financing Receivables
The following is a summary of past due and non-accrual loans, by loan class, at March 31, 2018 and December 31, 2017:
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Past Due 90
Days or More
 
Total
Past Due
 
Loans on
Non-accrual
 
(In thousands)
March 31, 2018
 
 
 
 
 
 
 
 
 
Real estate:
 
 
 
 
 
 
 
 
 
1-4 family residential
$
658

 
$
275

 
$
1,337

 
$
2,270


$
5,549

Home equity
692

 
222

 
908

 
1,822


1,327

Commercial real estate
—

 
—

 
—

 
—

 
2,397

Commercial business
—

 
—

 
—

 
—

 
305

Consumer
127

 
19

 
7

 
153


92

Total
$
1,477


$
516


$
2,252


$
4,245


$
9,670

 
December 31, 2017
 
 
 
 
 
 
 
 
 
Real estate:
 
 
 
 
 
 
 
 
 
1-4 family residential
$
381

 
$
348

 
$
2,184

 
$
2,913

 
$
5,190

Home equity
509

 
13

 
656

 
1,178

 
1,387

Commercial real estate
—

 
—

 
3,893

 
3,893

 
4,744

Consumer
107

 
7

 
92

 
206

 
202

Total
$
997

 
$
368

 
$
6,825

 
$
8,190

 
$
11,523
Impaired Financing Receivables
The following tables set forth information regarding average balances and interest income recognized (the majority of which is on a cash basis) on impaired loans by class, for the periods indicated: 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Three Months Ended March 31, 2018
(In thousands)
Real estate:
 
 
 
1-4 family residential
$
5,988

 
$
78

Home equity
1,357

 
9

Commercial real estate
3,571

 
24

Commercial business
153

 
4

Consumer
147

 
2

Total
$
11,216

 
$
117

 
 
 
 
Three Months Ended March 31, 2017
 
 
 
Real estate:
 
 
 
1-4 family residential
$
6,620

 
$
78

Home equity
1,087

 
14

Commercial real estate
3,007

 
8

Commercial business
232

 
3

Consumer
167

 
1

Total
$
11,113

 
$
104



The following is a summary of information pertaining to impaired loans by loan class at the dates indicated: 
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
March 31, 2018
(In thousands)
Impaired loans without a valuation allowance:
 
 
 
 
 
Real estate:
 
 
 
 
 
1-4 family residential
$
4,490

 
$
4,886

 
$
—

Home equity
1,327

 
1,469

 
—

Commercial real estate
2,397

 
2,500

 
—

Commercial business
305

 
341

 
—

Consumer
91

 
105

 
—

Total
8,610

 
9,301

 
—

 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 
 
 
 
1-4 family residential
1,537

 
1,537

 
51

Consumer
1

 
1

 
1

Total
1,538

 
1,538

 
52

Total impaired loans
$
10,148

 
$
10,839

 
$
52

 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
Impaired loans without a valuation allowance:
 
 
 
 
 
Real estate:
 
 
 
 
 
1-4 family residential
$
4,501

 
$
4,897

 
$
—

Home equity
1,387

 
1,523

 
—

Commercial real estate
4,744

 
5,206

 
—

Commercial business
—

 
11

 
—

Consumer
191

 
243

 
—

Total
10,823

 
11,880

 
—

 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 
 
 
 
Real estate:
 
 
 
 
 
1-4 family residential
1,448

 
1,448

 
80

Consumer
11

 
11

 
1

Total
1,459

 
1,459

 
81

 
 
 
 
 
 
Total impaired loans
$
12,282

 
$
13,339

 
$
81
Troubled Debt Restructurings
Troubled debt restructurings entered into during the three months ended March 31, 2018 are as follows:

 
Number of contracts
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Real estate:
(In thousands)
1-4 family residential
3

 
$
469

 
$
475

Commercial real estate
1

 
$
1,563

 
$
1,563

Total
4

 
$
2,032

 
$
2,038
Financing Receivable Credit Quality Indicators
The following tables present the Company’s loans by risk rating at March 31, 2018 and December 31, 2017: 
 
1-4 Family
Residential
 
Home
Equity
 
Commercial
Real Estate
 
Construction
 
Commercial
Business
 
Consumer
 
Total
Loans
 
(In thousands)
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans rated 1 - 6
$
1,014

 
$
265

 
$
840,962

 
$
73,354

 
$
244,949

 
$
—

 
$
1,160,544

Loans rated 7
2,948

 
1,469

 
4,635

 
—

 
4,030

 
123

 
13,205

Loans rated 8
2,549

 
—

 
3,581

 
—

 
306

 
—

 
6,436

Loans rated 9
247

 
—

 
—

 
—

 
—

 
—

 
247

Loans rated 10
—

 
—

 
—

 
—

 
—

 
—

 
—

Loans not rated
927,837

 
73,279

 
—

 
—

 
—

 
19,788

 
1,020,904

 
$
934,595

 
$
75,013

 
$
849,178

 
$
73,354

 
$
249,285

 
$
19,911

 
$
2,201,336

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans rated 1 - 6
$
1,022

 
$
270

 
$
821,815

 
$
91,050

 
$
252,765

 
$
3

 
$
1,166,925

Loans rated 7
2,848

 
1,523

 
4,660

 
—

 
744

 
121

 
9,896

Loans rated 8
2,566

 
—

 
7,789

 
—

 
—

 
—

 
10,355

Loans rated 9
250

 
—

 
—

 
—

 
—

 
—

 
250

Loans rated 10
—

 
—

 
—

 
—

 
—

 
—

 
—

Loans not rated
915,941

 
78,869

 
—

 
—

 
—

 
21,574

 
1,016,384

 
$
922,627

 
$
80,662

 
$
834,264

 
$
91,050

 
$
253,509

 
$
21,698

 
$
2,203,810