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Loans (Tables)
 9 Months Ended
Sep. 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 September 30, follows:

  
Commercial
  
Mortgage
  
Installment
  
Subjective
Allocation
  
Total
 
  
(In thousands)
 
2018
               
Balance at beginning of period
 
$
6,073
  
$
8,296
  
$
848
  
$
8,287
  
$
23,504
 
Additions (deductions)
                    
Provision for loan losses
  
(907
)
  
415
   
(25
)
  
464
   
(53
)
Recoveries credited to the allowance
  
1,418
   
192
   
298
   
-
   
1,908
 
Loans charged against the allowance
  
(225
)
  
(448
)
  
(285
)
  
-
   
(958
)
Balance at end of period
 
$
6,359
  
$
8,455
  
$
836
  
$
8,751
  
$
24,401
 
                     
2017
                    
Balance at beginning of period
 
$
5,100
  
$
8,145
  
$
900
  
$
6,441
  
$
20,586
 
Additions (deductions)
                    
Provision for loan losses
  
(97
)
  
68
   
(33
)
  
644
   
582
 
Recoveries credited to the allowance
  
340
   
587
   
285
   
-
   
1,212
 
Loans charged against the allowance
  
(92
)
  
(471
)
  
(339
)
  
-
   
(902
)
Balance at end of period
 
$
5,251
  
$
8,329
  
$
813
  
$
7,085
  
$
21,478
 

An analysis of the allowance for loan losses by portfolio segment for the nine months ended September 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
  
(1,404
)
  
778
   
182
   
1,356
   
912
 
Recoveries credited to the allowance
  
2,458
   
549
   
761
   
-
   
3,768
 
Loans charged against the allowance
  
(290
)
  
(1,605
)
  
(971
)
  
-
   
(2,866
)
Balance at end of period
 
$
6,359
  
$
8,455
  
$
836
  
$
8,751
  
$
24,401
 
                     
2017
                    
Balance at beginning of period
 
$
4,880
  
$
8,681
  
$
1,011
  
$
5,662
  
$
20,234
 
Additions (deductions)
                    
Provision for loan losses
  
(197
)
  
(593
)
  
173
   
1,423
   
806
 
Recoveries credited to the allowance
  
946
   
1,264
   
788
   
-
   
2,998
 
Loans charged against the allowance
  
(378
)
  
(1,023
)
  
(1,159
)
  
-
   
(2,560
)
Balance at end of period
 
$
5,251
  
$
8,329
  
$
813
  
$
7,085
  
$
21,478
 
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)
 
September 30, 2018
               
Allowance for loan losses
               
Individually evaluated for impairment
 
$
727
  
$
5,155
  
$
220
  
$
-
  
$
6,102
 
Collectively evaluated for impairment
  
5,632
   
3,300
   
616
   
8,751
   
18,299
 
Loans acquired with deteriorated credit quality
  
-
   
-
   
-
   
-
   
-
 
Total ending allowance balance
 
$
6,359
  
$
8,455
  
$
836
  
$
8,751
  
$
24,401
 
                     
Loans
                    
Individually evaluated for impairment
 
$
9,714
  
$
48,815
  
$
3,630
      
$
62,159
 
Collectively evaluated for impairment
  
1,103,860
   
1,011,276
   
391,093
       
2,506,229
 
Loans acquired with deteriorated credit quality
  
1,653
   
557
   
355
       
2,565
 
Total loans recorded investment
  
1,115,227
   
1,060,648
   
395,078
       
2,570,953
 
Accrued interest included in recorded investment
  
3,126
   
4,166
   
1,083
       
8,375
 
Total loans
 
$
1,112,101
  
$
1,056,482
  
$
393,995
      
$
2,562,578
 
                     
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)
 
September 30, 2018
         
Commercial
         
Income producing - real estate
 
$
-
  
$
-
  
$
-
 
Land, land development and construction - real estate
  
-
   
2,402
   
2,402
 
Commercial and industrial
  
-
   
380
   
380
 
Mortgage
            
1-4 family
  
-
   
4,159
   
4,159
 
Resort lending
  
-
   
969
   
969
 
Home equity - 1st lien
  
-
   
324
   
324
 
Home equity - 2nd lien
  
-
   
353
   
353
 
Installment
            
Home equity - 1st lien
  
-
   
225
   
225
 
Home equity - 2nd lien
  
-
   
246
   
246
 
Boat lending
  
-
   
64
   
64
 
Recreational vehicle lending
  
-
   
8
   
8
 
Other
  
-
   
213
   
213
 
Total recorded investment
 
$
-
  
$
9,343
  
$
9,343
 
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)
 
September 30, 2018
                  
Commercial
                  
Income producing - real estate
 
$
-
  
$
32
  
$
-
  
$
32
  
$
378,201
  
$
378,233
 
Land, land development and construction - real estate
  
-
   
-
   
2,402
   
2,402
   
61,760
   
64,162
 
Commercial and industrial
  
881
   
25
   
51
   
957
   
671,875
   
672,832
 
Mortgage
                        
1-4 family
  
2,146
   
687
   
4,344
   
7,177
   
844,584
   
851,761
 
Resort lending
  
418
   
-
   
969
   
1,387
   
83,420
   
84,807
 
Home equity - 1st lien
  
81
   
15
   
324
   
420
   
40,312
   
40,732
 
Home equity - 2nd lien
  
364
   
209
   
353
   
926
   
82,422
   
83,348
 
Installment
                        
Home equity - 1st lien
  
285
   
44
   
225
   
554
   
7,738
   
8,292
 
Home equity - 2nd lien
  
190
   
45
   
246
   
481
   
7,099
   
7,580
 
Boat lending
  
153
   
16
   
64
   
233
   
169,925
   
170,158
 
Recreational vehicle lending
  
46
   
30
   
8
   
84
   
123,199
   
123,283
 
Other
  
145
   
140
   
213
   
498
   
85,267
   
85,765
 
Total recorded investment
 
$
4,709
  
$
1,243
  
$
9,199
  
$
15,151
  
$
2,555,802
  
$
2,570,953
 
Accrued interest included in recorded investment
 
$
53
  
$
21
  
$
-
  
$
74
  
$
8,301
  
$
8,375
 
                         
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:

  
September 30,
2018
  
December 31,
2017
 
Impaired loans with no allocated allowance for loan losses
 
(In thousands)
 
TDR
 
$
347
  
$
349
 
Non - TDR
  
2,402
   
175
 
Impaired loans with an allocated allowance for loan losses
        
TDR - allowance based on collateral
  
2,366
   
2,482
 
TDR - allowance based on present value cash flow
  
56,599
   
62,113
 
Non - TDR - allowance based on collateral
  
168
   
148
 
Total impaired loans
 
$
61,882
  
$
65,267
 
         
Amount of allowance for loan losses allocated
        
TDR - allowance based on collateral
 
$
692
  
$
684
 
TDR - allowance based on present value cash flow
  
5,335
   
6,089
 
Non - TDR - allowance based on collateral
  
75
   
66
 
Total amount of allowance for loan losses allocated
 
$
6,102
  
$
6,839
 

Impaired loans by class  are as follows:

  
September 30, 2018
  
December 31, 2017
 
  
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
 
With no related allowance for loan losses recorded:
 
(In thousands)
 
Commercial
                  
Income producing - real estate
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 
Land, land development & construction-real estate
  
2,402
   
2,402
   
-
   
-
   
-
   
-
 
Commercial and industrial
  
347
   
347
   
-
   
524
   
549
   
-
 
Mortgage
                        
1-4 family
  
2
   
447
   
-
   
2
   
469
   
-
 
Resort lending
  
-
   
-
   
-
   
-
   
-
   
-
 
Home equity - 1st lien
  
-
   
-
   
-
   
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
34
   
-
   
-
   
-
   
-
 
Installment
                        
Home equity - 1st lien
  
1
   
90
   
-
   
1
   
69
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
   
-
   
-
   
-
 
Boat lending
  
-
   
5
   
-
   
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
   
-
   
-
   
-
 
Other
  
-
   
16
   
-
   
-
   
-
   
-
 
   
2,752
   
3,341
   
-
   
527
   
1,087
   
-
 
With an allowance for loan losses recorded:
                        
Commercial
                        
Income producing - real estate
  
4,829
   
4,808
   
307
   
5,195
   
5,347
   
347
 
Land, land development & construction-real estate
  
152
   
152
   
4
   
166
   
194
   
9
 
Commercial and industrial
  
1,984
   
2,133
   
416
   
2,535
   
2,651
   
481
 
Mortgage
                        
1-4 family
  
34,656
   
36,169
   
3,126
   
36,848
   
38,480
   
3,454
 
Resort lending
  
13,934
   
13,972
   
2,017
   
15,978
   
16,046
   
2,210
 
Home equity - 1st lien
  
66
   
65
   
3
   
173
   
236
   
43
 
Home equity - 2nd lien
  
157
   
156
   
9
   
178
   
213
   
18
 
Installment
                        
Home equity - 1st lien
  
1,520
   
1,640
   
97
   
1,667
   
1,804
   
108
 
Home equity - 2nd lien
  
1,626
   
1,644
   
93
   
1,793
   
1,805
   
140
 
Boat lending
  
-
   
-
   
-
   
1
   
5
   
1
 
Recreational vehicle lending
  
81
   
81
   
4
   
90
   
90
   
5
 
Other
  
402
   
428
   
26
   
393
   
418
   
23
 
   
59,407
   
61,248
   
6,102
   
65,017
   
67,289
   
6,839
 
Total
                        
Commercial
                        
Income producing - real estate
  
4,829
   
4,808
   
307
   
5,195
   
5,347
   
347
 
Land, land development & construction-real estate
  
2,554
   
2,554
   
4
   
166
   
194
   
9
 
Commercial and industrial
  
2,331
   
2,480
   
416
   
3,059
   
3,200
   
481
 
Mortgage
                        
1-4 family
  
34,658
   
36,616
   
3,126
   
36,850
   
38,949
   
3,454
 
Resort lending
  
13,934
   
13,972
   
2,017
   
15,978
   
16,046
   
2,210
 
Home equity - 1st lien
  
66
   
65
   
3
   
173
   
236
   
43
 
Home equity - 2nd lien
  
157
   
190
   
9
   
178
   
213
   
18
 
Installment
                        
Home equity - 1st lien
  
1,521
   
1,730
   
97
   
1,668
   
1,873
   
108
 
Home equity - 2nd lien
  
1,626
   
1,644
   
93
   
1,793
   
1,805
   
140
 
Boat lending
  
-
   
5
   
-
   
1
   
5
   
1
 
Recreational vehicle lending
  
81
   
81
   
4
   
90
   
90
   
5
 
Other
  
402
   
444
   
26
   
393
   
418
   
23
 
Total
 
$
62,159
  
$
64,589
  
$
6,102
  
$
65,544
  
$
68,376
  
$
6,839
 
                         
Accrued interest included in recorded investment
 
$
277
          
$
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 September 30, follows:

  
2018
  
2017
 
  
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance for loan losses recorded:
 
(In thousands)
 
Commercial
            
Income producing - real estate
 
$
-
  
$
-
  
$
-
  
$
-
 
Land, land development & construction-real estate
  
2,402
   
-
   
-
   
-
 
Commercial and industrial
  
425
   
7
   
445
   
8
 
Mortgage
                
1-4 family
  
121
   
9
   
127
   
7
 
Resort lending
  
-
   
-
   
-
   
-
 
Home equity - 1st lien
  
-
   
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
   
-
 
Installment
                
Home equity - 1st lien
  
1
   
1
   
1
   
1
 
Home equity - 2nd lien
  
-
   
-
   
-
   
-
 
Boat lending
  
-
   
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
   
-
 
Other
  
-
   
-
   
-
   
1
 
   
2,949
   
17
   
573
   
17
 
With an allowance for loan losses recorded:
                
Commercial
                
Income producing - real estate
  
4,968
   
64
   
7,311
   
91
 
Land, land development & construction-real estate
  
153
   
3
   
171
   
2
 
Commercial and industrial
  
2,264
   
24
   
2,878
   
26
 
Mortgage
                
1-4 family
  
34,731
   
458
   
38,533
   
462
 
Resort lending
  
14,276
   
161
   
16,175
   
153
 
Home equity - 1st lien
  
67
   
1
   
201
   
1
 
Home equity - 2nd lien
  
157
   
2
   
180
   
2
 
Installment
                
Home equity - 1st lien
  
1,545
   
27
   
1,808
   
40
 
Home equity - 2nd lien
  
1,679
   
24
   
2,058
   
26
 
Boat lending
  
1
   
-
   
1
   
-
 
Recreational vehicle lending
  
83
   
1
   
98
   
1
 
Other
  
406
   
5
   
361
   
6
 
   
60,330
   
770
   
69,775
   
810
 
Total
                
Commercial
                
Income producing - real estate
  
4,968
   
64
   
7,311
   
91
 
Land, land development & construction-real estate
  
2,555
   
3
   
171
   
2
 
Commercial and industrial
  
2,689
   
31
   
3,323
   
34
 
Mortgage
                
1-4 family
  
34,852
   
467
   
38,660
   
469
 
Resort lending
  
14,276
   
161
   
16,175
   
153
 
Home equity - 1st lien
  
67
   
1
   
201
   
1
 
Home equity - 2nd lien
  
157
   
2
   
180
   
2
 
Installment
                
Home equity - 1st lien
  
1,546
   
28
   
1,809
   
41
 
Home equity - 2nd lien
  
1,679
   
24
   
2,058
   
26
 
Boat lending
  
1
   
-
   
1
   
-
 
Recreational vehicle lending
  
83
   
1
   
98
   
1
 
Other
  
406
   
5
   
361
   
7
 
Total
 
$
63,279
  
$
787
  
$
70,348
  
$
827
 

Average recorded investment in and interest income earned on impaired loans by class for the nine month periods ending September 30, follows:

  
2018
  
2017
 
  
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance for loan losses recorded:
 
(In thousands)
 
Commercial
            
Income producing - real estate
 
$
-
  
$
-
  
$
222
  
$
-
 
Land, land development & construction-real estate
  
1,201
   
-
   
8
   
-
 
Commercial and industrial
  
472
   
20
   
808
   
16
 
Mortgage
                
1-4 family
  
70
   
18
   
64
   
16
 
Resort lending
  
-
   
-
   
-
   
-
 
Home equity - 1st lien
  
-
   
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
   
-
 
Installment
                
Home equity - 1st lien
  
1
   
5
   
1
   
4
 
Home equity - 2nd lien
  
-
   
-
   
-
   
-
 
Boat lending
  
-
   
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
   
-
 
Other
  
-
   
1
   
-
   
1
 
   
1,744
   
44
   
1,103
   
37
 
With an allowance for loan losses recorded:
                
Commercial
                
Income producing - real estate
  
5,077
   
202
   
7,525
   
300
 
Land, land development & construction-real estate
  
157
   
7
   
187
   
6
 
Commercial and industrial
  
2,391
   
90
   
3,488
   
98
 
Mortgage
                
1-4 family
  
35,549
   
1,347
   
39,716
   
1,420
 
Resort lending
  
15,027
   
475
   
16,485
   
464
 
Home equity - 1st lien
  
115
   
4
   
218
   
5
 
Home equity - 2nd lien
  
167
   
5
   
217
   
5
 
Installment
                
Home equity - 1st lien
  
1,595
   
81
   
1,874
   
107
 
Home equity - 2nd lien
  
1,728
   
76
   
2,210
   
96
 
Boat lending
  
1
   
-
   
1
   
-
 
Recreational vehicle lending
  
86
   
3
   
103
   
4
 
Other
  
406
   
18
   
373
   
19
 
   
62,299
   
2,308
   
72,397
   
2,524
 
Total
                
Commercial
                
Income producing - real estate
  
5,077
   
202
   
7,747
   
300
 
Land, land development & construction-real estate
  
1,358
   
7
   
195
   
6
 
Commercial and industrial
  
2,863
   
110
   
4,296
   
114
 
Mortgage
                
1-4 family
  
35,619
   
1,365
   
39,780
   
1,436
 
Resort lending
  
15,027
   
475
   
16,485
   
464
 
Home equity - 1st lien
  
115
   
4
   
218
   
5
 
Home equity - 2nd lien
  
167
   
5
   
217
   
5
 
Installment
                
Home equity - 1st lien
  
1,596
   
86
   
1,875
   
111
 
Home equity - 2nd lien
  
1,728
   
76
   
2,210
   
96
 
Boat lending
  
1
   
-
   
1
   
-
 
Recreational vehicle lending
  
86
   
3
   
103
   
4
 
Other
  
406
   
19
   
373
   
20
 
Total
 
$
64,043
  
$
2,352
  
$
73,500
  
$
2,561
 
Troubled Debt Restructurings
Troubled debt restructurings follow:

  
September 30, 2018
 
  
Commercial
  
Retail (1)
  
Total
 
  
(In thousands)
 
Performing TDRs
 
$
6,904
  
$
49,397
  
$
56,301
 
Non-performing TDRs(2)
  
212
   
2,799
 
(3) 
 
3,011
 
Total
 
$
7,116
  
$
52,196
  
$
59,312
 

  
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 September 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
  
1
   
24
   
24
 
Mortgage
            
1-4 family
  
3
   
609
   
609
 
Resort lending
  
1
   
115
   
114
 
Home equity - 1st lien
  
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
 
Installment
            
Home equity - 1st lien
  
1
   
15
   
15
 
Home equity - 2nd lien
  
1
   
20
   
21
 
Boat lending
  
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
 
Other
  
-
   
-
   
-
 
Total
  
7
  
$
783
  
$
783
 
             
2017
            
Commercial
            
Income producing - real estate
  
-
  
$
-
  
$
-
 
Land, land development & construction-real estate
  
-
   
-
   
-
 
Commercial and industrial
  
-
   
-
   
-
 
Mortgage
            
1-4 family
  
1
   
93
   
95
 
Resort lending
  
-
   
-
   
-
 
Home equity - 1st lien
  
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
 
Installment
            
Home equity - 1st lien
  
-
   
-
   
-
 
Home equity - 2nd lien
  
2
   
51
   
50
 
Boat lending
  
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
 
Other
  
1
   
10
   
10
 
Total
  
4
  
$
154
  
$
155
 

Loans that have been classified as troubled debt restructurings during the nine-month periods ended September 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
  
6
   
611
   
611
 
Mortgage
            
1-4 family
  
7
   
903
   
889
 
Resort lending
  
1
   
115
   
114
 
Home equity - 1st lien
  
-
   
-
   
-
 
Home equity - 2nd lien
  
-
   
-
   
-
 
Installment
            
Home equity - 1st lien
  
6
   
203
   
205
 
Home equity - 2nd lien
  
3
   
113
   
114
 
Boat lending
  
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
 
Other
  
2
   
76
   
73
 
Total
  
26
  
$
2,088
  
$
2,073
 
             
2017
            
Commercial
            
Income producing - real estate
  
-
  
$
-
  
$
-
 
Land, land development & construction-real estate
  
-
   
-
   
-
 
Commercial and industrial
  
12
   
786
   
786
 
Mortgage
            
1-4 family
  
3
   
142
   
144
 
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
  
7
   
300
   
301
 
Boat lending
  
-
   
-
   
-
 
Recreational vehicle lending
  
-
   
-
   
-
 
Other
  
1
   
10
   
10
 
Total
  
26
  
$
1,461
  
$
1,467
 
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)
 
September 30, 2018
               
Income producing - real estate
 
$
374,965
  
$
3,060
  
$
208
  
$
-
  
$
378,233
 
Land, land development and construction - real estate
  
55,126
   
6,623
   
11
   
2,402
   
64,162
 
Commercial and industrial
  
634,763
   
27,174
   
10,515
   
380
   
672,832
 
Total
 
$
1,064,854
  
$
36,857
  
$
10,734
  
$
2,782
  
$
1,115,227
 
Accrued interest included in total
 
$
2,869
  
$
146
  
$
111
  
$
-
  
$
3,126
 
                     
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)
 
September 30, 2018
                
800 and above
  
$
110,400
  
$
12,423
  
$
7,872
  
$
12,318
  
$
143,013
 
750-799
   
358,072
   
32,498
   
15,037
   
30,573
   
436,180
 
700-749
   
211,575
   
21,239
   
9,562
   
21,561
   
263,937
 
650-699
   
104,395
   
9,271
   
3,222
   
9,539
   
126,427
 
600-649
   
30,578
   
4,142
   
569
   
2,884
   
38,173
 
550-599
   
13,491
   
1,220
   
503
   
1,261
   
16,475
 
500-549
   
7,641
   
822
   
228
   
1,205
   
9,896
 
Under 500
   
1,702
   
84
   
86
   
190
   
2,062
 
Unknown
   
13,907
   
3,108
   
3,653
   
3,817
   
24,485
 
Total
  
$
851,761
  
$
84,807
  
$
40,732
  
$
83,348
  
$
1,060,648
 
Accrued interest included in total
  
$
3,161
  
$
360
  
$
206
  
$
439
  
$
4,166
 
                      
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)
 
September 30, 2018
                   
800 and above
  
$
651
  
$
264
  
$
25,231
  
$
22,621
  
$
6,223
  
$
54,990
 
750-799
   
1,899
   
1,519
   
95,664
   
72,298
   
32,094
   
203,474
 
700-749
   
1,471
   
1,806
   
36,743
   
22,996
   
23,917
   
86,933
 
650-699
   
1,608
   
1,627
   
8,760
   
4,093
   
10,002
   
26,090
 
600-649
   
1,174
   
1,065
   
2,064
   
778
   
2,504
   
7,585
 
550-599
   
1,065
   
850
   
410
   
334
   
961
   
3,620
 
500-549
   
305
   
132
   
340
   
76
   
433
   
1,286
 
Under 500
   
87
   
172
   
43
   
21
   
152
   
475
 
Unknown
   
32
   
145
   
903
   
66
   
9,479
   
10,625
 
Total
  
$
8,292
  
$
7,580
  
$
170,158
  
$
123,283
  
$
85,765
  
$
395,078
 
Accrued interest included in total
  
$
33
  
$
27
  
$
431
  
$
319
  
$
273
  
$
1,083
 
                          
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:

  
September 30,
2018
  
December 31,
2017
 
  
(In thousands)
 
Commercial
 
$
1,653
  
$
-
 
Mortgage
  
557
   
-
 
Installment
  
355
   
-
 
Total carrying amount
  
2,565
   
-
 
Allowance for loan losses
  
-
   
-
 
Carrying amount, net of allowance for loan losses
 
$
2,565
  
$
-
 

Accretable yield of PCI loans, or income expected to be collected follows:

  
Three months ended
September 30,
  
Nine months ended
September 30,
 
  
2018
  
2017
  
2018
  
2017
 
  
(unaudited)
  
(unaudited)
 
  
(In thousands)
  
(In thousands)
 
             
Balance at beginning of period
 
$
533
  
$
-
  
$
-
  
$
-
 
New loans purchased
  
-
   
-
   
568
   
-
 
Accretion of income
  
(32
)
  
-
   
(67
)
  
-
 
Reclassification from (to) nonaccretable difference
  
-
   
-
   
-
   
-
 
Displosals/other adjustments
  
-
   
-
   
-
   
-
 
Balance at end of period
 
$
501
  
$
-
  
$
501
  
$
-
 

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