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Allowance for loan losses and credit quality (Tables)
 9 Months Ended
Sep. 30, 2020
Credit Loss [Abstract]  
Financing Receivable, Allowance for Credit Loss
Changes in the ALL, by class of loans, for the three and nine months ended September 30, 2020 and 2019 were as follows:
For The Three Months Ended September 30, 2020Residential Real EstateConstruction Real EstateCommercial Real EstateCommercialConsumerMunicipalUnallocatedTotal
(Dollars in thousands)
Balance, June 30, 2020$1,590 $594 $3,832 $491 $23 $79 $279 $6,888 
Provision (credit) for loan losses5 75 313 1 (4)133 277 800 
Recoveries of amounts charged off5 — — — 1 — — 6 
1,600 669 4,145 492 20 212 556 7,694 
Amounts charged off— — — — (3)— — (3)
Balance, September 30, 2020$1,600 $669 $4,145 $492 $17 $212 $556 $7,691 
For The Three Months Ended September 30, 2019Residential Real EstateConstruction Real EstateCommercial Real EstateCommercialConsumerMunicipalUnallocatedTotal
(Dollars in thousands)
Balance, June 30, 2019$1,396 $646 $3,011 $313 $23 $33 $254 $5,676 
Provision (credit) for loan losses31 43 156 13 2 45 (140)150 
Recoveries of amounts charged off— — — — — — — — 
1,427 689 3,167 326 25 78 114 5,826 
Amounts charged off(18)— — — — — — (18)
Balance, September 30, 2019$1,409 $689 $3,167 $326 $25 $78 $114 $5,808 
For The Nine Months Ended September 30, 2020Residential Real EstateConstruction Real EstateCommercial Real EstateCommercialConsumerMunicipalUnallocatedTotal
(Dollars in thousands)
Balance, December 31, 2019$1,392 $774 $3,178 $394 $23 $76 $285 $6,122 
Provision (credit) for loan
losses		180 (105)1,021 98 (1)136 271 1,600 
Recoveries of amounts
charged off		28 — — — 1 — — 29 
1,600 669 4,199 492 23 212 556 7,751 
Amounts charged off— — (54)— (6)— — (60)
Balance, September 30, 2020$1,600 $669 $4,145 $492 $17 $212 $556 $7,691 

For The Nine Months Ended September 30, 2019Residential Real EstateConstruction Real EstateCommercial Real EstateCommercialConsumerMunicipalUnallocatedTotal
(Dollars in thousands)
Balance, December 31, 2018$1,368 $617 $2,933 $354 $23 $82 $362 $5,739 
Provision (credit) for loan
losses		116 72 234 171 9 (4)(248)350 
Recoveries of amounts
charged off		5 — — 1 4 — — 10 
1,489 689 3,167 526 36 78 114 6,099 
Amounts charged off(80)— — (200)(11)— — (291)
Balance, September 30, 2019$1,409 $689 $3,167 $326 $25 $78 $114 $5,808 
Allocation of Allowance for Loan Losses by Impairment Methodology
The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows:
September 30, 2020Residential Real EstateConstruction Real EstateCommercial Real EstateCommercialConsumerMunicipalUnallocatedTotal
(Dollars in thousands)
Individually evaluated
for impairment		$33 $— $36 $7 $— $— $— $76 
Collectively evaluated
for impairment		1,567 669 4,109 485 17 212 556 7,615 
Total allocated$1,600 $669 $4,145 $492 $17 $212 $556 $7,691 
December 31, 2019Residential Real EstateConstruction Real EstateCommercial Real EstateCommercialConsumerMunicipalUnallocatedTotal
(Dollars in thousands)
Individually evaluated
for impairment		$39 $— $149 $8 $— $— $— $196 
Collectively evaluated
for impairment		1,353 774 3,029 386 23 76 285 5,926 
Total allocated$1,392 $774 $3,178 $394 $23 $76 $285 $6,122 
Allocation of Investment in Loans by Impairment Methodology
The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows:
September 30, 2020Residential Real EstateConstruction Real EstateCommercial Real EstateCommercialConsumerMunicipalTotal
(Dollars in thousands)
Individually evaluated
for impairment		$1,805 $212 $3,018 $229 $— $— $5,264 
Collectively evaluated
for impairment		181,130 49,456 314,967 114,639 2,833 97,761 760,786 
Total$182,935 $49,668 $317,985 $114,868 $2,833 $97,761 $766,050 
December 31, 2019Residential Real EstateConstruction Real EstateCommercial Real EstateCommercialConsumerMunicipalTotal
(Dollars in thousands)
Individually evaluated
for impairment		$1,515 $223 $3,204 $299 $— $— $5,241 
Collectively evaluated
for impairment		190,610 69,394 286,679 47,400 3,562 67,358 665,003 
Total$192,125 $69,617 $289,883 $47,699 $3,562 $67,358 $670,244 
Financing Receivable Credit Quality Indicators
The following tables summarize the loan ratings applied by management to the Company's loans by class as of the balance sheet dates:
September 30, 2020Residential Real EstateConstruction Real EstateCommercial Real EstateCommercialConsumerMunicipalTotal
(Dollars in thousands)
Pass$164,691 $36,439 $173,011 $102,144 $2,820 $97,761 $576,866 
Satisfactory/Monitor15,003 12,696 141,017 12,251 12 — 180,979 
Substandard3,241 533 3,957 473 1 — 8,205 
Total$182,935 $49,668 $317,985 $114,868 $2,833 $97,761 $766,050 
December 31, 2019Residential Real EstateConstruction Real EstateCommercial Real EstateCommercialConsumerMunicipalTotal
(Dollars in thousands)
Pass$174,798 $47,326 $168,654 $35,625 $3,499 $67,358 $497,260 
Satisfactory/Monitor14,520 21,819 117,004 10,974 57 — 164,374 
Substandard2,807 472 4,225 1,100 6 — 8,610 
Total$192,125 $69,617 $289,883 $47,699 $3,562 $67,358 $670,244 
Impaired Financing Receivables
The following tables provide information with respect to impaired loans by class of loan as of and for the three and nine months ended September 30, 2020 and September 30, 2019:
As of September 30, 2020For The Three Months Ended September 30, 2020For The Nine Months Ended September 30, 2020
Recorded Investment
(1)		Principal Balance
(1)		Related AllowanceAverage Recorded InvestmentInterest Income RecognizedAverage Recorded InvestmentInterest Income Recognized
(Dollars in thousands)
Residential real estate$211 $221 $33 
Commercial real estate1,650 1,776 36 
Commercial9 11 7 
With an allowance recorded1,870 2,008 76 
Residential real estate1,594 2,192 — 
Construction real estate212 233 — 
Commercial real estate1,368 1,469 — 
Commercial220 222 — 
With no allowance recorded3,394 4,116 — 
Residential real estate1,805 2,413 33 $1,882 $19 $1,692 $47 
Construction real estate212 233 — 215 1 218 3 
Commercial real estate3,018 3,245 36 3,051 26 3,116 64 
Commercial229 233 7 240 4 264 16 
Total$5,264 $6,124 $76 $5,388 $50 $5,290 $130 
____________________
(1)Does not reflect government guaranties on impaired loans as of September 30, 2020 totaling $535 thousand.
As of September 30, 2019For The Three Months Ended September 30, 2019For The Nine Months Ended September 30, 2019
Recorded Investment
(1)		Principal Balance
(1)		Related AllowanceAverage Recorded InvestmentInterest Income RecognizedAverage Recorded InvestmentInterest Income Recognized
(Dollars in thousands)
Residential real estate$1,595 $2,168 $41 $1,606 $17 $1,653 $55 
Construction real estate229 247 — 170 1 143 3 
Commercial real estate3,264 3,359 176 2,380 24 2,176 89 
Commercial297 300 8 309 8 327 19 
Total$5,385 $6,074 $225 $4,465 $50 $4,299 $166 
____________________
(1)Does not reflect government guaranties on impaired loans as of September 30, 2019 totaling $592 thousand.
The following table provides information with respect to impaired loans by class of loan as of December 31, 2019:
December 31, 2019
Recorded Investment
(1)		Principal Balance
(1)		Related Allowance
(Dollars in thousands)
Residential real estate$218 $228 $39 
Commercial real estate1,762 1,783 149 
Commercial11 12 8 
With an allowance recorded1,991 2,023 196 
Residential real estate1,297 1,832 — 
Construction real estate223 241 — 
Commercial real estate1,442 1,539 — 
Commercial288 290 — 
With no allowance recorded3,250 3,902 — 
Residential real estate1,515 2,060 39 
Construction real estate223 241 — 
Commercial real estate3,204 3,322 149 
Commercial299 302 8 
Total$5,241 $5,925 $196 
____________________
(1)Does not reflect government guaranties on impaired loans as of December 31, 2019 totaling $587 thousand.
Financing Receivable, Troubled Debt Restructuring
The following is a summary of TDR loans by class of loan as of the balance sheet dates:
September 30, 2020December 31, 2019
Number of LoansPrincipal BalanceNumber of LoansPrincipal Balance
(Dollars in thousands)
Residential real estate32 $1,805 25 $1,515 
Construction real estate2 89 2 100 
Commercial real estate8 930 8 966 
Commercial5 229 5 290 
Total47 $3,053 40 $2,871 
New Troubled Debt Restructurings on Financing Receivables
The following tables provide new TDR activity for the three and nine months ended September 30, 2020 and 2019:
New TDRs During theNew TDRs During the
Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
Number of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentNumber of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
(Dollars in thousands)
Residential real estate2 $54 $56 8 $547 $549 
New TDRs During theNew TDRs During the
Three Months Ended September 30, 2019Nine Months Ended September 30, 2019
Number of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentNumber of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded Investment
(Dollars in thousands)
Residential real estate— $— $— 1 $77 $79