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Loans (Tables)
 6 Months Ended
Jun. 30, 2018
Loans [Abstract]  
Analysis of Allowance for Loan Losses by Portfolio Segment
An analysis of the allowance for loan losses by portfolio segment for the three months ended June 30, follows:

 
Commercial
 
Mortgage
 
Installment
 
Subjective
Allocation
 
Total
 
 
(In thousands)
 
2018
          
Balance at beginning of period
 
$
6,026
  
$
8,621
  
$
795
  
$
7,629
  
$
23,071
 
Additions (deductions)
                    
Provision for loan losses
  
(362
)
  
216
   
138
   
658
   
650
 
Recoveries credited to the allowance
  
434
   
177
   
235
   
-
   
846
 
Loans charged against the allowance
  
(25
)
  
(718
)
  
(320
)
  
-
   
(1,063
)
Balance at end of period
 
$
6,073
  
$
8,296
  
$
848
  
$
8,287
  
$
23,504
 
                     
2017
                    
Balance at beginning of period
 
$
5,088
  
$
8,109
  
$
911
  
$
5,930
  
$
20,038
 
Additions (deductions)
                    
Provision for loan losses
  
(39
)
  
38
   
73
   
511
   
583
 
Recoveries credited to the allowance
  
202
   
191
   
264
   
-
   
657
 
Loans charged against the allowance
  
(151
)
  
(193
)
  
(348
)
  
-
   
(692
)
Balance at end of period
 
$
5,100
  
$
8,145
  
$
900
  
$
6,441
  
$
20,586
 
 
An analysis of the allowance for loan losses by portfolio segment for the six months ended June 30, follows:
 
 
Commercial
 
Mortgage
 
Installment
 
Subjective
Allocation
 
Total
 
 
(In thousands)
 
2018
                    
Balance at beginning of period
 
$
5,595
  
$
8,733
  
$
864
  
$
7,395
  
$
22,587
 
Additions (deductions)
                    
Provision for loan losses
  
(497
)
  
363
   
207
   
892
   
965
 
Recoveries credited to the allowance
  
1,040
   
357
   
463
   
-
   
1,860
 
Loans charged against the allowance
  
(65
)
  
(1,157
)
  
(686
)
  
-
   
(1,908
)
Balance at end of period
 
$
6,073
  
$
8,296
  
$
848
  
$
8,287
  
$
23,504
 
                     
2017
                    
Balance at beginning of period
 
$
4,880
  
$
8,681
  
$
1,011
  
$
5,662
  
$
20,234
 
Additions (deductions)
                    
Provision for loan losses
  
(100
)
  
(661
)
  
206
   
779
   
224
 
Recoveries credited to the allowance
  
606
   
677
   
503
   
-
   
1,786
 
Loans charged against the allowance
  
(286
)
  
(552
)
  
(820
)
  
-
   
(1,658
)
Balance at end of period
 
$
5,100
  
$
8,145
  
$
900
  
$
6,441
  
$
20,586
 
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment
Allowance for loan losses and recorded investment in loans by portfolio segment follows:

  
Commercial
  
Mortgage
  
Installment
  
Subjective
Allocation
  
Total
 
  
(In thousands)
 
June 30, 2018
               
Allowance for loan losses
               
Individually evaluated for impairment
 
$
772
  
$
5,302
  
$
233
  
$
-
  
$
6,307
 
Collectively evaluated for impairment
  
5,301
   
2,994
   
615
   
8,287
   
17,197
 
Loans acquired with deteriorated credit quality
  
-
   
-
   
-
   
-
   
-
 
Total ending allowance balance
 
$
6,073
  
$
8,296
  
$
848
  
$
8,287
  
$
23,504
 
                     
Loans
                    
Individually evaluated for impairment
 
$
10,708
  
$
49,886
  
$
3,796
      
$
64,390
 
Collectively evaluated for impairment
  
1,097,576
   
942,074
   
368,558
       
2,408,208
 
Loans acquired with deteriorated credit quality
  
1,823
   
651
   
362
       
2,836
 
Total loans recorded investment
  
1,110,107
   
992,611
   
372,716
       
2,475,434
 
Accrued interest included in recorded investment
  
3,120
   
3,989
   
1,008
       
8,117
 
Total loans
 
$
1,106,987
  
$
988,622
  
$
371,708
      
$
2,467,317
 
                     
December 31, 2017
                    
Allowance for loan losses
                    
Individually evaluated for impairment
 
$
837
  
$
5,725
  
$
277
  
$
-
  
$
6,839
 
Collectively evaluated for impairment
  
4,758
   
3,008
   
587
   
7,395
   
15,748
 
Total ending allowance balance
 
$
5,595
  
$
8,733
  
$
864
  
$
7,395
  
$
22,587
 
                     
Loans
                    
Individually evaluated for impairment
 
$
8,420
  
$
53,179
  
$
3,945
      
$
65,544
 
Collectively evaluated for impairment
  
847,140
   
799,629
   
313,005
       
1,959,774
 
Total loans recorded investment
  
855,560
   
852,808
   
316,950
       
2,025,318
 
Accrued interest included in recorded investment
  
2,300
   
3,278
   
923
       
6,501
 
Total loans
 
$
853,260
  
$
849,530
  
$
316,027
      
$
2,018,817
 
Loans on Non-Accrual Status and Past Due More than 90 Days
Loans on non-accrual status and past due more than 90 days (“Non-performing Loans”) follow:

  
90+ and
Still
Accruing
  
Non-
Accrual
  
Total Non-
Performing
Loans
 
  
(In thousands)
 
June 30, 2018
         
Commercial
         
Income producing - real estate
 
$
-
  
$
-
  
$
-
 
Land, land development and construction - real estate
  
-
   
2,402
   
2,402
 
Commercial and industrial
  
-
   
487
   
487
 
Mortgage
            
1-4 family
  
-
   
3,737
   
3,737
 
Resort lending
  
-
   
1,098
   
1,098
 
Home equity - 1st lien
  
-
   
409
   
409
 
Home equity - 2nd lien
  
-
   
278
   
278
 
Installment
            
Home equity - 1st lien
  
-
   
150
   
150
 
Home equity - 2nd lien
  
-
   
297
   
297
 
Boat lending
  
-
   
107
   
107
 
Recreational vehicle lending
  
-
   
14
   
14
 
Other
  
-
   
103
   
103
 
Total recorded investment
 
$
-
  
$
9,082
  
$
9,082
 
Accrued interest included in recorded investment
 
$
-
  
$
-
  
$
-
 
December 31, 2017
            
Commercial
            
Income producing - real estate
 
$
-
  
$
30
  
$
30
 
Land, land development and construction - real estate
  
-
   
9
   
9
 
Commercial and industrial
  
-
   
607
   
607
 
Mortgage
            
1-4 family
  
-
   
5,130
   
5,130
 
Resort lending
  
-
   
1,223
   
1,223
 
Home equity - 1st lien
  
-
   
326
   
326
 
Home equity - 2nd lien
  
-
   
316
   
316
 
Installment
            
Home equity - 1st lien
  
-
   
141
   
141
 
Home equity - 2nd lien
  
-
   
159
   
159
 
Boat lending
  
-
   
100
   
100
 
Recreational vehicle lending
  
-
   
25
   
25
 
Other
  
-
   
118
   
118
 
Total recorded investment
 
$
-
  
$
8,184
  
$
8,184
 
Accrued interest included in recorded investment
 
$
-
  
$
-
  
$
-
 
Aging Analysis of Loans by Class
An aging analysis of loans by class follows:
 
  
Loans Past Due
  
Loans not
Past Due
  
Total
Loans
  
  
30-59 days
  
60-89 days
  
90+ days
  
Total
  
(In thousands)
 
June 30, 2018
                  
Commercial
                  
Income producing - real estate
 
$
-
  
$
234
  
$
59
  
$
293
  
$
365,473
  
$
365,766
 
Land, land development and construction - real estate
  
2,402
   
-
   
-
   
2,402
   
59,353
   
61,755
 
Commercial and industrial
  
266
   
149
   
-
   
415
   
682,171
   
682,586
 
Mortgage
                        
1-4 family
  
2,583
   
792
   
3,737
   
7,112
   
776,934
   
784,046
 
Resort lending
  
512
   
-
   
1,098
   
1,610
   
82,706
   
84,316
 
Home equity - 1st lien
  
435
   
-
   
409
   
844
   
44,440
   
45,284
 
Home equity - 2nd lien
  
440
   
72
   
278
   
790
   
78,175
   
78,965
 
Installment
                        
Home equity - 1st lien
  
435
   
51
   
150
   
636
   
8,486
   
9,122
 
Home equity - 2nd lien
  
134
   
30
   
297
   
461
   
7,942
   
8,403
 
Boat lending
  
19
   
2
   
107
   
128
   
159,158
   
159,286
 
Recreational vehicle lending
  
45
   
42
   
14
   
101
   
113,097
   
113,198
 
Other
  
162
   
36
   
103
   
301
   
82,406
   
82,707
 
Total recorded investment
 
$
7,433
  
$
1,408
  
$
6,252
  
$
15,093
  
$
2,460,341
  
$
2,475,434
 
Accrued interest included in recorded investment
 
$
62
  
$
20
  
$
-
  
$
82
  
$
8,035
  
$
8,117
 
                         
December 31, 2017
                        
Commercial
                        
Income producing - real estate
 
$
-
  
$
-
  
$
30
  
$
30
  
$
290,466
  
$
290,496
 
Land, land development and construction - real estate
  
9
   
-
   
-
   
9
   
70,182
   
70,191
 
Commercial and industrial
  
60
   
-
   
44
   
104
   
494,769
   
494,873
 
Mortgage
                        
1-4 family
  
1,559
   
802
   
5,130
   
7,491
   
659,742
   
667,233
 
Resort lending
  
713
   
-
   
1,223
   
1,936
   
88,620
   
90,556
 
Home equity - 1st lien
  
308
   
38
   
326
   
672
   
34,689
   
35,361
 
Home equity - 2nd lien
  
353
   
155
   
316
   
824
   
58,834
   
59,658
 
Installment
                        
Home equity - 1st lien
  
90
   
11
   
141
   
242
   
9,213
   
9,455
 
Home equity - 2nd lien
  
217
   
94
   
159
   
470
   
9,001
   
9,471
 
Boat lending
  
59
   
36
   
100
   
195
   
129,777
   
129,972
 
Recreational vehicle lending
  
28
   
20
   
25
   
73
   
92,737
   
92,810
 
Other
  
275
   
115
   
118
   
508
   
74,734
   
75,242
 
Total recorded investment
 
$
3,671
  
$
1,271
  
$
7,612
  
$
12,554
  
$
2,012,764
  
$
2,025,318
 
Accrued interest included in recorded investment
 
$
43
  
$
22
  
$
-
  
$
65
  
$
6,436
  
$
6,501
 
Impaired Loans
Impaired loans are as follows:

 
June 30,
2018
  
December 31,
2017
 
Impaired loans with no allocated allowance
 
(In thousands)
 
TDR
 
$
587
  
$
349
 
Non - TDR
  
2,555
   
175
 
Impaired loans with an allocated allowance
        
TDR - allowance based on collateral
  
2,638
   
2,482
 
TDR - allowance based on present value cash flow
  
58,237
   
62,113
 
Non - TDR - allowance based on collateral
  
90
   
148
 
Total impaired loans
 
$
64,107
  
$
65,267
 
         
Amount of allowance for loan losses allocated
        
TDR - allowance based on collateral
 
$
884
  
$
684
 
TDR - allowance based on present value cash flow
  
5,383
   
6,089
 
Non - TDR - allowance based on collateral
  
40
   
66
 
Total amount of allowance for loan losses allocated
 
$
6,307
  
$
6,839
 
 
Impaired loans by class  are as follows:

  
June 30, 2018
  
December 31, 2017
 
  
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
 
With no related allowance recorded:
 
(In thousands)
    
Commercial
                  
Income producing - real estate
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 
Land, land development & construction-real estate
  
2,402
   
2,402
   
-
   
-
   
-
   
-
 
Commercial and industrial
  
502
   
533
   
-
   
524
   
549
   
-
 
Mortgage
                        
1-4 family
  
240
   
871
   
-
   
2
   
469
   
-
 
Resort lending
  
-
   
-
   
-
   
-
   
-
   
-
 
Home equity - 1st lien
  
-
   
-
   
-
   
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
34
   
-
   
-
   
-
   
-
 
Installment
                        
Home equity - 1st lien
  
1
   
92
   
-
   
1
   
69
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
   
-
   
-
   
-
 
Boat lending
  
-
   
-
   
-
   
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
   
-
   
-
   
-
 
Other
  
-
   
16
   
-
   
-
   
-
   
-
 
   
3,145
   
3,948
   
-
   
527
   
1,087
   
-
 
With an allowance recorded:
                        
Commercial
                        
Income producing - real estate
  
5,106
   
5,087
   
335
   
5,195
   
5,347
   
347
 
Land, land development & construction-real estate
  
154
   
153
   
5
   
166
   
194
   
9
 
Commercial and industrial
  
2,544
   
2,629
   
432
   
2,535
   
2,651
   
481
 
Mortgage
                        
1-4 family
  
34,805
   
36,076
   
3,103
   
36,848
   
38,480
   
3,454
 
Resort lending
  
14,617
   
14,649
   
2,186
   
15,978
   
16,046
   
2,210
 
Home equity - 1st lien
  
67
   
66
   
4
   
173
   
236
   
43
 
Home equity - 2nd lien
  
157
   
156
   
9
   
178
   
213
   
18
 
Installment
                        
Home equity - 1st lien
  
1,569
   
1,687
   
94
   
1,667
   
1,804
   
108
 
Home equity - 2nd lien
  
1,731
   
1,750
   
112
   
1,793
   
1,805
   
140
 
Boat lending
  
1
   
5
   
1
   
1
   
5
   
1
 
Recreational vehicle lending
  
85
   
85
   
4
   
90
   
90
   
5
 
Other
  
409
   
435
   
22
   
393
   
418
   
23
 
   
61,245
   
62,778
   
6,307
   
65,017
   
67,289
   
6,839
 
Total
                        
Commercial
                        
Income producing - real estate
  
5,106
   
5,087
   
335
   
5,195
   
5,347
   
347
 
Land, land development & construction-real estate
  
2,556
   
2,555
   
5
   
166
   
194
   
9
 
Commercial and industrial
  
3,046
   
3,162
   
432
   
3,059
   
3,200
   
481
 
Mortgage
                        
1-4 family
  
35,045
   
36,947
   
3,103
   
36,850
   
38,949
   
3,454
 
Resort lending
  
14,617
   
14,649
   
2,186
   
15,978
   
16,046
   
2,210
 
Home equity - 1st lien
  
67
   
66
   
4
   
173
   
236
   
43
 
Home equity - 2nd lien
  
157
   
190
   
9
   
178
   
213
   
18
 
Installment
                        
Home equity - 1st lien
  
1,570
   
1,779
   
94
   
1,668
   
1,873
   
108
 
Home equity - 2nd lien
  
1,731
   
1,750
   
112
   
1,793
   
1,805
   
140
 
Boat lending
  
1
   
5
   
1
   
1
   
5
   
1
 
Recreational vehicle lending
  
85
   
85
   
4
   
90
   
90
   
5
 
Other
  
409
   
451
   
22
   
393
   
418
   
23
 
Total
 
$
64,390
  
$
66,726
  
$
6,307
  
$
65,544
  
$
68,376
  
$
6,839
 
                         
Accrued interest included in recorded investment
 
$
283
          
$
277
         
Average Recorded Investment in and Interest Income Earned on Impaired Loans by Class
Average recorded investment in and interest income earned on impaired loans by class for the three month periods ending June 30, follows:
 
  
2018
  
2017
 
   
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded
 
(In thousands)
 
Commercial
            
Income producing - real estate
 
$
-
  
$
-
  
$
185
  
$
-
 
Land, land development & construction-real estate
  
1,201
   
-
   
-
   
-
 
Commercial and industrial
  
509
   
9
   
177
   
8
 
Mortgage
                
1-4 family
  
138
   
3
   
126
   
5
 
Resort lending
  
-
   
-
   
-
   
-
 
Home equity - 1st lien
  
-
   
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
   
-
 
Installment
                
Home equity - 1st lien
  
1
   
2
   
1
   
2
 
Home equity - 2nd lien
  
-
   
-
   
-
   
-
 
Boat lending
  
-
   
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
   
-
 
Other
  
-
   
1
   
-
   
-
 
   
1,849
   
15
   
489
   
15
 
With an allowance recorded
                
Commercial
                
Income producing - real estate
  
5,142
   
70
   
7,694
   
104
 
Land, land development & construction-real estate
  
155
   
2
   
170
   
2
 
Commercial and industrial
  
2,522
   
34
   
3,237
   
37
 
Mortgage
      
-
         
1-4 family
  
35,345
   
431
   
39,646
   
494
 
Resort lending
  
15,098
   
150
   
16,471
   
150
 
Home equity - 1st lien
  
111
   
1
   
232
   
2
 
Home equity - 2nd lien
  
167
   
1
   
186
   
1
 
Installment
                
Home equity - 1st lien
  
1,596
   
25
   
1,855
   
33
 
Home equity - 2nd lien
  
1,746
   
25
   
2,228
   
35
 
Boat lending
  
1
   
-
   
1
   
-
 
Recreational vehicle lending
  
86
   
1
   
104
   
2
 
Other
  
414
   
7
   
369
   
6
 
   
62,383
   
747
   
72,193
   
866
 
Total
                
Commercial
                
Income producing - real estate
  
5,142
   
70
   
7,879
   
104
 
Land, land development & construction-real estate
  
1,356
   
2
   
170
   
2
 
Commercial and industrial
  
3,031
   
43
   
3,414
   
45
 
Mortgage
                
1-4 family
  
35,483
   
434
   
39,772
   
499
 
Resort lending
  
15,098
   
150
   
16,471
   
150
 
Home equity - 1st lien
  
111
   
1
   
232
   
2
 
Home equity - 2nd lien
  
167
   
1
   
186
   
1
 
Installment
                
Home equity - 1st lien
  
1,597
   
27
   
1,856
   
35
 
Home equity - 2nd lien
  
1,746
   
25
   
2,228
   
35
 
Boat lending
  
1
   
-
   
1
   
-
 
Recreational vehicle lending
  
86
   
1
   
104
   
2
 
Other
  
414
   
8
   
369
   
6
 
Total
 
$
64,232
  
$
762
  
$
72,682
  
$
881
 
 
Average recorded investment in and interest income earned on impaired loans by class for the six month periods ending June 30, follows:

  
2018
  
2017
 
  
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
 
(In thousands)
 
Commercial
            
Income producing - real estate
 
$
-
  
$
-
  
$
296
  
$
-
 
Land, land development & construction-real estate
  
801
   
-
   
10
   
-
 
Commercial and industrial
  
514
   
13
   
898
   
8
 
Mortgage
                
1-4 family
  
92
   
9
   
85
   
9
 
Resort lending
  
-
   
-
   
-
   
-
 
Home equity - 1st lien
  
-
   
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
   
-
 
Installment
                
Home equity - 1st lien
  
1
   
4
   
-
   
3
 
Home equity - 2nd lien
  
-
   
-
   
-
   
-
 
Boat lending
  
-
   
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
   
-
 
Other
  
-
   
1
   
-
   
-
 
   
1,408
   
27
   
1,289
   
20
 
With an allowance recorded:
                
Commercial
                
Income producing - real estate
  
5,160
   
138
   
7,708
   
209
 
Land, land development & construction-real estate
  
159
   
4
   
193
   
4
 
Commercial and industrial
  
2,526
   
66
   
3,792
   
72
 
Mortgage
                
1-4 family
  
35,846
   
889
   
40,331
   
958
 
Resort lending
  
15,391
   
314
   
16,613
   
311
 
Home equity - 1st lien
  
131
   
3
   
233
   
4
 
Home equity - 2nd lien
  
171
   
3
   
229
   
3
 
Installment
                
Home equity - 1st lien
  
1,619
   
54
   
1,901
   
67
 
Home equity - 2nd lien
  
1,762
   
52
   
2,290
   
70
 
Boat lending
  
1
   
-
   
1
   
-
 
Recreational vehicle lending
  
87
   
2
   
106
   
3
 
Other
  
407
   
13
   
377
   
13
 
   
63,260
   
1,538
   
73,774
   
1,714
 
Total
                
Commercial
                
Income producing - real estate
  
5,160
   
138
   
8,004
   
209
 
Land, land development & construction-real estate
  
960
   
4
   
203
   
4
 
Commercial and industrial
  
3,040
   
79
   
4,690
   
80
 
Mortgage
                
1-4 family
  
35,938
   
898
   
40,416
   
967
 
Resort lending
  
15,391
   
314
   
16,613
   
311
 
Home equity - 1st lien
  
131
   
3
   
233
   
4
 
Home equity - 2nd lien
  
171
   
3
   
229
   
3
 
Installment
                
Home equity - 1st lien
  
1,620
   
58
   
1,901
   
70
 
Home equity - 2nd lien
  
1,762
   
52
   
2,290
   
70
 
Boat lending
  
1
   
-
   
1
   
-
 
Recreational vehicle lending
  
87
   
2
   
106
   
3
 
Other
  
407
   
14
   
377
   
13
 
Total
 
$
64,668
  
$
1,565
  
$
75,063
  
$
1,734
 
Troubled Debt Restructurings
Troubled debt restructurings follow:

  
June 30, 2018
 
  
Commercial
  
Retail (1)
  
Total
 
  
(In thousands)
 
Performing TDRs
 
$
7,792
  
$
50,313
  
$
58,105
 
Non-performing TDRs(2)
  
245
   
3,112
 
(3) 
 
3,357
 
Total
 
$
8,037
  
$
53,425
  
$
61,462
 
 
  
December 31, 2017
 
  
Commercial
  
Retail (1)
  
Total
 
  
(In thousands)
 
Performing TDRs
 
$
7,748
  
$
52,367
  
$
60,115
 
Non-performing TDRs(2)
  
323
   
4,506
 
(3) 
 
4,829
 
Total
 
$
8,071
  
$
56,873
  
$
64,944
 
 
(1)
Retail loans include mortgage and installment portfolio segments.
(2)
Included in non-performing loans table above.
(3)
Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.
Troubled Debt Restructuring During the Period
Loans that have been classified as troubled debt restructurings during the three-month periods ended June 30 follow:
 
  
Number of
Contracts
  
Pre-modification
Recorded
Balance
  
Post-modification
Recorded
Balance
 
  
(Dollars in thousands)
 
2018
         
Commercial
         
Income producing - real estate
  
-
  
$
-
  
$
-
 
Land, land development & construction-real estate
  
-
   
-
   
-
 
Commercial and industrial
  
2
   
153
   
153
 
Mortgage
            
1-4 family
  
1
   
66
   
69
 
Resort lending
  
-
   
-
   
-
 
Home equity - 1st lien
  
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
 
Installment
            
Home equity - 1st lien
  
2
   
90
   
91
 
Home equity - 2nd lien
  
1
   
32
   
32
 
Boat lending
  
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
 
Other
  
1
   
41
   
41
 
Total
  
7
  
$
382
  
$
386
 
             
2017
            
Commercial
            
Income producing - real estate
  
-
  
$
-
  
$
-
 
Land, land development & construction-real estate
  
-
   
-
   
-
 
Commercial and industrial
  
9
   
653
   
653
 
Mortgage
            
1-4 family
  
1
   
32
   
32
 
Resort lending
  
-
   
-
   
-
 
Home equity - 1st lien
  
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
 
Installment
            
Home equity - 1st lien
  
-
   
-
   
-
 
Home equity - 2nd lien
  
3
   
204
   
205
 
Boat lending
  
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
 
Other
  
-
   
-
   
-
 
Total
  
13
  
$
889
  
$
890
 
 
Loans that have been classified as troubled debt restructurings during the six-month periods ended June 30 follow:

  
Number of
Contracts
  
Pre-modification
Recorded
Balance
  
Post-modification
Recorded
Balance
 
  
(Dollars in thousands)
 
2018
         
Commercial
         
Income producing - real estate
  
1
  
$
67
  
$
67
 
Land, land development & construction-real estate
  
-
   
-
   
-
 
Commercial and industrial
  
5
   
587
   
587
 
Mortgage
            
1-4 family
  
4
   
294
   
280
 
Resort lending
  
-
   
-
   
-
 
Home equity - 1st lien
  
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
 
Installment
            
Home equity - 1st lien
  
5
   
188
   
190
 
Home equity - 2nd lien
  
2
   
93
   
93
 
Boat lending
  
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
 
Other
  
2
   
76
   
73
 
Total
  
19
  
$
1,305
  
$
1,290
 
             
2017
            
Commercial
            
Income producing - real estate
  
-
  
$
-
  
$
-
 
Land, land development & construction-real estate
  
-
   
-
   
-
 
Commercial and industrial
  
12
   
786
   
786
 
Mortgage
            
1-4 family
  
2
   
49
   
49
 
Resort lending
  
1
   
189
   
189
 
Home equity - 1st lien
  
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
 
Installment
            
Home equity - 1st lien
  
2
   
34
   
37
 
Home equity - 2nd lien
  
5
   
249
   
251
 
Boat lending
  
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
 
Other
  
-
   
-
   
-
 
Total
  
22
  
$
1,307
  
$
1,312
 
Loan Ratings by Loan Class
The following table summarizes loan ratings by loan class for our commercial loan segment:

  
Commercial
 
  
Non-watch
1-6
  
Watch
7-8
  
Substandard
Accrual
9
  
Non-
Accrual
10-11
  
Total
 
       
(In thousands)
       
June 30, 2018
               
Income producing - real estate
 
$
362,860
  
$
2,452
  
$
454
  
$
-
  
$
365,766
 
Land, land development and construction - real estate
  
52,832
   
6,509
   
12
   
2,402
   
61,755
 
Commercial and industrial
  
645,647
   
26,936
   
9,516
   
487
   
682,586
 
Total
 
$
1,061,339
  
$
35,897
  
$
9,982
  
$
2,889
  
$
1,110,107
 
Accrued interest included in total
 
$
2,899
  
$
144
  
$
77
  
$
-
  
$
3,120
 
                     
December 31, 2017
                    
Income producing - real estate
 
$
288,869
  
$
1,293
  
$
304
  
$
30
  
$
290,496
 
Land, land development and construction - real estate
  
70,122
   
60
   
-
   
9
   
70,191
 
Commercial and industrial
  
463,570
   
28,351
   
2,345
   
607
   
494,873
 
Total
 
$
822,561
  
$
29,704
  
$
2,649
  
$
646
  
$
855,560
 
Accrued interest included in total
 
$
2,198
  
$
94
  
$
8
  
$
-
  
$
2,300
 
 
The following tables summarize credit scores by loan class for our mortgage and installment loan segments:
 
   
Mortgage (1)
 
   
1-4 Family
  
Resort
Lending
  
Home
Equity
1st Lien
  
Home
Equity
2nd Lien
  
Total
 
   
(In thousands)
 
June 30, 2018
                
800 and above
  
$
105,921
  
$
12,496
  
$
7,184
  
$
8,580
  
$
134,181
 
750-799
   
327,242
   
32,448
   
17,542
   
28,804
   
406,036
 
700-749
   
192,813
   
21,108
   
8,625
   
19,308
   
241,854
 
650-699
   
95,852
   
9,246
   
3,055
   
7,851
   
116,004
 
600-649
   
29,042
   
4,490
   
530
   
2,546
   
36,608
 
550-599
   
13,706
   
1,232
   
778
   
1,316
   
17,032
 
500-549
   
7,788
   
949
   
230
   
1,198
   
10,165
 
Under 500
   
1,729
   
85
   
89
   
190
   
2,093
 
Unknown
   
9,953
   
2,262
   
7,251
   
9,172
   
28,638
 
Total
  
$
784,046
  
$
84,316
  
$
45,284
  
$
78,965
  
$
992,611
 
Accrued interest included in total
  
$
2,889
  
$
364
  
$
262
  
$
474
  
$
3,989
 
                       
December 31, 2017
                     
800 and above
  
$
78,523
  
$
11,625
  
$
6,169
  
$
7,842
  
$
104,159
 
750-799
   
283,558
   
36,015
   
16,561
   
24,126
   
360,260
 
700-749
   
154,239
   
22,099
   
7,317
   
15,012
   
198,667
 
650-699
   
84,121
   
12,145
   
2,793
   
7,420
   
106,479
 
600-649
   
25,087
   
3,025
   
1,189
   
2,512
   
31,813
 
550-599
   
15,136
   
2,710
   
518
   
1,118
   
19,482
 
500-549
   
9,548
   
1,009
   
397
   
1,156
   
12,110
 
Under 500
   
2,549
   
269
   
260
   
385
   
3,463
 
Unknown
   
14,472
   
1,659
   
157
   
87
   
16,375
 
Total
  
$
667,233
  
$
90,556
  
$
35,361
  
$
59,658
  
$
852,808
 
Accrued interest included in total
  
$
2,456
  
$
371
  
$
157
  
$
294
  
$
3,278
 
 
(1) Other than for the TCSB Bancorp, Inc. ("TCSB") acquired loans, credit scores have been updated within the last twelve months.
 
   
Installment(1)
 
   
Home
Equity
1st Lien
  
Home
Equity
2nd Lien
  
Boat Lending
  
Recreational
Vehicle
Lending
  
Other
  
Total
 
   
(In thousands)
 
June 30, 2018
                   
800 and above
  
$
607
  
$
330
  
$
23,002
  
$
20,133
  
$
5,962
  
$
50,034
 
750-799
   
2,005
   
1,718
   
88,646
   
66,538
   
30,513
   
189,420
 
700-749
   
1,286
   
2,059
   
34,972
   
21,023
   
22,898
   
82,238
 
650-699
   
1,597
   
1,743
   
8,387
   
4,126
   
9,696
   
25,549
 
600-649
   
1,181
   
1,103
   
2,015
   
835
   
2,319
   
7,453
 
550-599
   
945
   
890
   
422
   
368
   
1,025
   
3,650
 
500-549
   
225
   
137
   
448
   
79
   
461
   
1,350
 
Under 500
   
58
   
143
   
45
   
22
   
174
   
442
 
Unknown
   
1,218
   
280
   
1,349
   
74
   
9,659
   
12,580
 
Total
  
$
9,122
  
$
8,403
  
$
159,286
  
$
113,198
  
$
82,707
  
$
372,716
 
Accrued interest included in total
  
$
37
  
$
36
  
$
394
  
$
288
  
$
253
  
$
1,008
 
                          
December 31, 2017
                         
800 and above
  
$
815
  
$
825
  
$
15,531
  
$
16,754
  
$
7,060
  
$
40,985
 
750-799
   
1,912
   
1,952
   
73,251
   
52,610
   
28,422
   
158,147
 
700-749
   
1,825
   
2,142
   
28,922
   
17,993
   
20,059
   
70,941
 
650-699
   
1,840
   
2,036
   
9,179
   
4,270
   
9,258
   
26,583
 
600-649
   
1,567
   
1,065
   
2,052
   
754
   
2,402
   
7,840
 
550-599
   
950
   
1,028
   
640
   
305
   
871
   
3,794
 
500-549
   
499
   
303
   
281
   
83
   
475
   
1,641
 
Under 500
   
32
   
88
   
57
   
6
   
194
   
377
 
Unknown
   
15
   
32
   
59
   
35
   
6,501
   
6,642
 
Total
  
$
9,455
  
$
9,471
  
$
129,972
  
$
92,810
  
$
75,242
  
$
316,950
 
Accrued interest included in total
  
$
39
  
$
43
  
$
346
  
$
254
  
$
241
  
$
923
 

(1)
Other than for the TCSB acquired loans, credit scores have been updated within the last twelve months.
Purchase Credit Impaired (PCI) Loans
For these loans that meet the criteria of ASC 310-30 treatment, the carrying amount was as follows:
 
  
June 30,
2018
  
December 31,
2017
 
  
(In thousands)
 
Commercial
 
$
1,823
  
$
-
 
Mortgage
  
651
   
-
 
Installment
  
362
   
-
 
Total carrying amount
  
2,836
   
-
 
Allowance for loan losses
  
-
   
-
 
Carrying amount, net of allowance for loan losses
 
$
2,836
  
$
-
 
 
Accretable yield of PCI loans, or income expected to be collected follows:
 
  
Six months ended
June 30,
 
  
2018
  
2017
 
  
(unaudited)
 
  
(In thousands)
 
       
Balance at beginning of period
 
$
-
  
$
-
 
New loans purchased
  
568
   
-
 
Accretion of income
  
(35
)
  
-
 
Reclassification from (to) nonaccretable difference
  
-
   
-
 
Displosals/other adjustments
  
-
   
-
 
Balance at end of period
 
$
533
  
$
-
 
 
PCI loans purchased during 2018 (all relating to the TCSB acquisition) for which it was probable at acquisition that all contractually required payments would not be collected follows:
 
  
(In thousands)
 
    
Contractually required payments
 
$
4,213
 
Non accretable difference
  
(742
)
Cash flows expected to be collected at acquisition
  
3,471
 
Accretable yield
  
(568
)
Fair value of acquired loans at acquisition
 
$
2,903