Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2020

Allowance for Loan Losses

Schedule of Loan losses by portfolio segment

The following tables summarize the rollforward of the allowance for loan losses by portfolio segment for the three month periods ending March 31, 2020 and 2019 (in thousands).

	Three months ended March 31, 2020
	Balance at								Balance at
	December 31,		Charge-				Provision		March 31,
	2019		Offs		Recoveries		(Credit)		2020
Commercial	$	3,951	$	—	$	—	$	(91)	$	3,860
Commercial loans secured by non-owner occupied real estate		3,119		—		14		155		3,288
Real estate-residential mortgage		1,159		(92)		6		68		1,141
Consumer		126		(62)		14		42		120
Allocation for general risk		924		—		—		1		925
Total	$	9,279	$	(154)	$	34	$	175	$	9,334

	Three months ended March 31, 2019
	Balance at								Balance at
	December 31,		Charge-				Provision		March 31,
	2018		Offs		Recoveries		(Credit)		2019
Commercial	$	3,057	$	—	$	5	$	(448)	$	2,614
Commercial loans secured by non-owner occupied real estate		3,389		(63)		11		36		3,373
Real estate-residential mortgage		1,235		(61)		8		31		1,213
Consumer		127		(82)		18		62		125
Allocation for general risk		863		—		—		(81)		782
Total	$	8,671	$	(206)	$	42	$	(400)	$	8,107

Schedule of Loan loss by the primary segments

The following tables summarize the loan portfolio and allowance for loan loss by the primary segments of the loan portfolio (in thousands).

	At March 31, 2020
			Commercial Loans		Real
			Secured by Non-		Estate-
			Owner		Residential				Allocation for
	Commercial		Occupied Real Estate		Mortgage		Consumer		General Risk		Total
Loans:
Individually evaluated for impairment	$	833	$	8	$	—	$	—			$	841
Collectively evaluated for impairment		253,388		370,258		230,207		17,955				871,808
Total loans	$	254,221	$	370,266	$	230,207	$	17,955			$	872,649
Allowance for loan losses:
Specific reserve allocation	$	79	$	8	$	—	$	—	$	—	$	87
General reserve allocation		3,781		3,280		1,141		120		925		9,247
Total allowance for loan losses	$	3,860	$	3,288	$	1,141	$	120	$	925	$	9,334

	At December 31, 2019
			Commercial Loans		Real
			Secured by Non-		Estate-
			Owner		Residential				Allocation for
	Commercial		Occupied Real Estate		Mortgage		Consumer		General Risk		Total
Loans:
Individually evaluated for impairment	$	816	$	8	$	—	$	—			$	824
Collectively evaluated for impairment		264,761		363,627		235,239		18,255				881,882
Total loans	$	265,577	$	363,635	$	235,239	$	18,255			$	882,706
Allowance for loan losses:
Specific reserve allocation	$	84	$	8	$	—	$	—	$	—	$	92
General reserve allocation		3,867		3,111		1,159		126		924		9,187
Total allowance for loan losses	$	3,951	$	3,119	$	1,159	$	126	$	924	$	9,279

Schedule of Present impaired loans by portfolio segment

The following tables present impaired loans by portfolio segment, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary (in thousands).

	March 31, 2020
					Impaired
					Loans
					with
	Impaired Loans with				no Specific
	Specific Allowance				Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
	Investment		Allowance		Investment		Investment		Balance
Commercial	$	833	$	79	$	—	$	833	$	833
Commercial loans secured by non-owner occupied real estate		8		8		—		8		30
Total impaired loans	$	841	$	87	$	—	$	841	$	863

	December 31, 2019
					Impaired
					Loans
					with
	Impaired Loans with				no Specific
	Specific Allowance				Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
	Investment		Allowance		Investment		Investment		Balance
Commercial	$	816	$	84	$	—	$	816	$	816
Commercial loans secured by non-owner occupied real estate		8		8		—		8		30
Total impaired loans	$	824	$	92	$	—	$	824	$	846

Schedule of Investment in impaired loans and related interest income

The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands).

	Three months ended
	March 31,
	2020		2019
Average loan balance:
Commercial	$	825	$	—
Commercial loans secured by non-owner occupied real estate		8		11
Average investment in impaired loans	$	833	$	11
Interest income recognized:
Commercial	$	12	$	—
Commercial loans secured by non-owner occupied real estate		—		—
Interest income recognized on a cash basis on impaired loans	$	12	$	—

Schedule of Commercial and commercial real estate loan portfolios

The following table presents the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system (in thousands).

	March 31, 2020
			Special
	Pass		Mention		Substandard		Doubtful		Total
Commercial and industrial	$	154,456	$	790	$	11,665	$	—	$	166,911
Commercial loans secured by owner occupied real estate		84,661		1,345		1,304		—		87,310
Commercial loans secured by non-owner occupied real estate		368,681		—		1,577		8		370,266
Total	$	607,798	$	2,135	$	14,546	$	8	$	624,487

	December 31, 2019
			Special
	Pass		Mention		Substandard		Doubtful		Total
Commercial and industrial	$	161,147	$	853	$	11,922	$	—	$	173,922
Commercial loans secured by owner occupied real estate		88,942		1,384		1,329		—		91,655
Commercial loans secured by non-owner occupied real estate		362,027		—		1,600		8		363,635
Total	$	612,116	$	2,237	$	14,851	$	8	$	629,212

Schedule of Residential and consumer portfolio

The following tables present the performing and non-performing outstanding balances of the residential and consumer portfolio classes (in thousands).

	March 31, 2020
	Performing		Non-Performing		Total
Real estate - residential mortgage	$	228,803	$	1,404	$	230,207
Consumer		17,955		—		17,955
Total	$	246,758	$	1,404	$	248,162

	December 31, 2019
	Performing		Non-Performing		Total
Real estate - residential mortgage	$	233,760	$	1,479	$	235,239
Consumer		18,255		—		18,255
Total	$	252,015	$	1,479	$	253,494

Schedule of Credit quality of the loan portfolio

The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans (in thousands).

	March 31, 2020
													90 Days
			30 – 59		60 – 89								Past Due
			Days		Days		90 Days		Total		Total		and Still
	Current		Past Due		Past Due		Past Due		Past Due		Loans		Accruing
Commercial and industrial	$	160,550	$	6,361	$	—	$	—	$	6,361	$	166,911	$	—
Commercial loans secured by owner occupied real estate		87,197		113		—		—		113		87,310		—
Commercial loans secured by non-owner occupied real estate		370,266		—		—		—		—		370,266		—
Real estate - residential mortgage		226,532		1,445		1,259		971		3,675		230,207		—
Consumer		17,901		42		12		—		54		17,955		—
Total	$	862,446	$	7,961	$	1,271	$	971	$	10,203	$	872,649	$	—

	December 31, 2019
													90 Days
			30 – 59		60 – 89								Past Due
			Days		Days		90 Days		Total		Total		and Still
	Current		Past Due		Past Due		Past Due		Past Due		Loans		Accruing
Commercial and industrial	$	173,922	$	—	$	—	$	—	$	—	$	173,922	$	—
Commercial loans secured by owner occupied real estate		91,538		117		—		—		117		91,655		—
Commercial loans secured by non-owner occupied real estate		363,635		—		—		—		—		363,635		—
Real estate - residential mortgage		231,022		2,331		864		1,022		4,217		235,239		—
Consumer		18,190		42		23		—		65		18,255		—
Total	$	878,307	$	2,490	$	887	$	1,022	$	4,399	$	882,706	$	—