Loans and the Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Loans Outstanding by Category

Loans outstanding are detailed by category as follows:

	June 30, 2019			December 31, 2018
	(dollars in thousands)
Residential mortgage
Mortgages - fixed rate	$	409,706		$	293,267
Mortgages - adjustable rate		498,694			309,656
Construction		28,437			—
Deferred costs net of unearned fees		1,722			1,408
Total residential mortgages		938,559			604,331
Commercial mortgage
Mortgages - nonowner occupied		788,982			654,394
Mortgages - owner occupied		64,520			59,335
Construction		51,816			44,146
Deferred costs net of unearned fees		124			82
Total commercial mortgages		905,442			757,957
Home equity
Home equity - lines of credit		79,814			63,421
Home equity - term loans		5,763			5,665
Deferred costs net of unearned fees		237			250
Total home equity		85,814			69,336
Commercial & industrial
Commercial & industrial		134,338			93,728
Deferred costs (fees) net of unearned fees		(31	)		(16	)
Total commercial & industrial		134,307			93,712
Consumer
Secured		31,380			33,252
Unsecured		1,035			1,171
Deferred costs net of unearned fees		13			13
Total consumer		32,428			34,436
Total loans	$	2,096,550		$	1,559,772

Non-performing Loans Disaggregated by Loan Category

The following tables set forth information regarding non-performing loans disaggregated by loan category:

	June 30, 2019
	Residential Mortgages		Commercial Mortgages		Home Equity		Commercial & Industrial		Consumer		Total
	(dollars in thousands)
Non-performing loans:
Non-accrual loans	$	507	$	135	$	12	$	298	$	—	$	952
Loans past due >90 days, but still accruing		—		—		—		—		—		—
Troubled debt restructurings		105		—		—		—		—		105
Total	$	612	$	135	$	12	$	298	$	—	$	1,057

	December 31, 2018
	Residential Mortgages		Commercial Mortgages		Home Equity		Commercial & Industrial		Consumer		Total
	(dollars in thousands)
Non-performing loans:
Non-accrual loans	$	512	$	—	$	13	$	—	$	—	$	525
Loans past due >90 days, but still accruing		—		—		—		—		—		—
Troubled debt restructurings		111		—		—		6		—		117
Total	$	623	$	—	$	13	$	6	$	—	$	642

Loans Receivable Disaggregated by Credit Quality Indicator

.  The following tables contain period-end balances of loans receivable disaggregated by credit quality indicator:

	June 30, 2019
	Residential Mortgages		Home Equity		Consumer
	(dollars in thousands)
Credit risk profile based on payment activity:
Performing	$	937,947	$	85,802	$	32,428
Non-performing		612		12		—
Total	$	938,559	$	85,814	$	32,428
			Commercial Mortgages		Commercial & Industrial
Credit risk profile by internally assigned grade:
1-6 (Pass)			$	895,336	$	125,763
7 (Special Mention)				9,571		3,487
8 (Substandard)				535		5,057
9 (Doubtful)				—		—
10 (Loss)				—		—
Total			$	905,442	$	134,307

	December 31, 2018
	Residential Mortgages		Home Equity		Consumer
	(dollars in thousands)
Credit risk profile based on payment activity:
Performing	$	603,708	$	69,323	$	34,436
Non-performing		623		13		—
Total	$	604,331	$	69,336	$	34,436
			Commercial Mortgages		Commercial & Industrial
Credit risk profile by internally assigned grade:
1-6 (Pass)			$	753,338	$	85,821
7 (Special Mention)				4,619		4,186
8 (Substandard)				—		3,705
9 (Doubtful)				—		—
10 (Loss)				—		—
Total			$	757,957	$	93,712

Schedule of Loans Receivable Disaggregated by Past Due Status

The following tables contain period-end balances of loans receivable disaggregated by past due status:

	June 30, 2019
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current Loans		Total
	(dollars in thousands)
Residential Mortgages	$	2,093	$	721	$	385	$	3,199	$	935,360	$	938,559
Commercial Mortgages		1,943		—		—		1,943		903,499		905,442
Home Equity		—		12		—		12		85,802		85,814
Commercial & Industrial		425		—		159		584		133,723		134,307
Consumer loans		2		4		—		6		32,422		32,428
Total	$	4,463	$	737	$	544	$	5,744	$	2,090,806	$	2,096,550

	December 31, 2018
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current Loans		Total
	(dollars in thousands)
Residential Mortgages	$	1,034	$	121	$	351	$	1,506	$	602,825	$	604,331
Commercial Mortgages		—		—		—		—		757,957		757,957
Home Equity		—		—		—		—		69,336		69,336
Commercial & Industrial		—		—		—		—		93,712		93,712
Consumer loans		108		—		—		108		34,328		34,436
Total	$	1,142	$	121	$	351	$	1,614	$	1,558,158	$	1,559,772

Information Pertaining to Impaired Loans

The following tables present information pertaining to impaired loans:

	For the Three Months Ended June 30, 2019
	Carrying Value		Average Carrying Value		Unpaid Principal Balance		Related Allowance		Interest Income Recognized
	(dollars in thousands)
With no required reserve recorded:
Commercial and industrial	$	—	$	—	$	—	$	—	$	—
Commercial mortgage		—		—		—		—		—
Residential mortgage		616		620		778		—		1
Home equity		96		97		133		—		—
Total		712		717		911		—		1
With required reserve recorded:
Commercial and industrial		—		—		—		—		—
Commercial mortgage		—		—		—		—		—
Residential mortgage		—		—		—		—		—
Home equity		—		—		—		—		—
Total		—		—		—		—		—
Total:
Commercial and industrial		—		—		—		—		—
Commercial mortgage		—		—		—		—		—
Residential mortgage		616		620		778		—		1
Home equity		96		97		133		—		—
Total	$	712	$	717	$	911	$	—	$	1

	For the Six Months Ended June 30, 2019
	Carrying Value		Average Carrying Value		Unpaid Principal Balance		Related Allowance		Interest Income Recognized
	(dollars in thousands)
With no required reserve recorded:
Commercial and industrial	$	—	$	—	$	—	$	—	$	—
Commercial mortgage		—		—		—		—		—
Residential mortgage		616		625		778		—		2
Home equity		96		97		133		—		1
Total		712		722		911		—		3
With required reserve recorded:
Commercial and industrial		—		—		—		—		—
Commercial mortgage		—		—		—		—		—
Residential mortgage		—		—		—		—		—
Home equity		—		—		—		—		—
Total		—		—		—		—		—
Total:
Commercial and industrial		—		—		—		—		—
Commercial mortgage		—		—		—		—		—
Residential mortgage		616		625		778		—		2
Home equity		96		97		133		—		1
Total	$	712	$	722	$	911	$	—	$	3

	For the Three Months Ended June 30, 2018
	Carrying Value		Average Carrying Value		Unpaid Principal Balance		Related Allowance		Interest Income Recognized
	(dollars in thousands)
With no required reserve recorded:
Commercial and industrial	$	17	$	20	$	17	$	—	$	—
Commercial mortgage		213		213		227		—		—
Residential mortgage		845		848		1,051		—		—
Home equity		66		67		98		—		—
Total		1,141		1,148		1,393		—		—
With required reserve recorded:
Commercial and industrial		—		—		—		—		—
Commercial mortgage		—		—		—		—		—
Residential mortgage		—		—		—		—		—
Home equity		—		—		—		—		—
Total		—		—		—		—		—
Total:
Commercial and industrial		17		20		17		—		—
Commercial mortgage		213		213		227		—		—
Residential mortgage		845		848		1,051		—		—
Home equity		66		67		98		—		—
Total	$	1,141	$	1,148	$	1,393	$	—	$	—

	For the Six Months Ended June 30, 2018
	Carrying Value		Average Carrying Value		Unpaid Principal Balance		Related Allowance		Interest Income Recognized
	(dollars in thousands)
With no required reserve recorded:
Commercial and industrial	$	17	$	22	$	17	$	—	$	1
Commercial mortgage		213		213		227		—		—
Residential mortgage		845		851		1,051		—		—
Home equity		66		68		98		—		—
Total		1,141		1,154		1,393		—		1
With required reserve recorded:
Commercial and industrial		—		—		—		—		—
Commercial mortgage		—		—		—		—		—
Residential mortgage		—		—		—		—		—
Home equity		—		—		—		—		—
Total		—		—		—		—		—
Total:
Commercial and industrial		17		22		17		—		1
Commercial mortgage		213		213		227		—		—
Residential mortgage		845		851		1,051		—		—
Home equity		66		68		98		—		—
Total	$	1,141	$	1,154	$	1,393	$	—	$	1

Summary of Changes in Allowance for Loan Losses Disaggregated by Loan Type

The following tables contain changes in the allowance for loan losses disaggregated by loan category June 30, 2019:

	For the Three Months Ended June 30, 2019
	Residential Mortgages		Commercial Mortgages			Home Equity			Commercial & Industrial			Consumer			Impaired		Total
	(dollars in thousands)
Allowance for loan losses:
Balance at March 31, 2019	$	5,256	$	9,369		$	534		$	1,245		$	248		$	—	$	16,652
Charge-offs		—		(55	)		—			(100	)		(9	)		—		(164	)
Recoveries		—		—			—			12			4			—		16
Provision for (Release of)		207		115			(3	)		288			(12	)		—		595
Balance at June 30, 2019	$	5,463	$	9,429		$	531		$	1,445		$	231		$	—	$	17,099

	For the Six Months Ended June 30, 2019
	Residential Mortgages		Commercial Mortgages			Home Equity		Commercial & Industrial			Consumer			Impaired		Total
	(dollars in thousands)
Allowance for loan losses:
Balance at December 31, 2018	$	4,946	$	9,626		$	517	$	1,415		$	264		$	—	$	16,768
Charge-offs		—		(55	)		—		(130	)		(20	)		—		(205	)
Recoveries		—		—			—		25			8			—		33
Provision for (Release of)		517		(142	)		14		135			(21	)		—		503
Balance at June 30, 2019	$	5,463	$	9,429		$	531	$	1,445		$	231		$	—	$	17,099

	For the Three Months Ended June 30, 2018
	Residential Mortgages		Commercial Mortgages			Home Equity		Commercial & Industrial			Consumer			Impaired			Total
	(dollars in thousands)
Allowance for loan losses:
Balance at  March 31, 2018	$	4,692	$	8,937		$	570	$	1,145		$	298		$	90		$	15,732
Charge-offs		—		—			—		(6	)		(17	)		—			(23	)
Recoveries		—		—			—		12			3			—			15
Provision for (Release of)		187		(263	)		31		44			12			(90	)		(79	)
Balance at June 30, 2018	$	4,879	$	8,674		$	601	$	1,195		$	296		$	—		$	15,645

	For the Six Months Ended June 30, 2018
	Residential Mortgages			Commercial Mortgages		Home Equity			Commercial & Industrial			Consumer			Impaired			Total
	(dollars in thousands)
Allowance for loan losses:
Balance at December 31, 2017	$	5,047		$	8,289	$	630		$	946		$	315		$	93		$	15,320
Charge-offs		—			—		—			(11	)		(21	)		—			(32	)
Recoveries		—			—		—			22			5			—			27
Provision for (Release of)		(168	)		385		(29	)		238			(3	)		(93	)		330
Balance at June 30, 2018	$	4,879		$	8,674	$	601		$	1,195		$	296		$	—		$	15,645

Summary of Allowance for Loan Losses and Related Loans Receivable Disaggregated by Impairment Method

The following tables contain period-end balances of the allowance for loan losses and related loans receivable disaggregated by impairment method:

	June 30, 2019
	Residential Mortgages		Commercial Mortgages		Home Equity		Commercial & Industrial		Consumer		Total
	(dollars in thousands)
Allowance for loan losses
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		5,463		9,429		531		1,445		231		17,099
Total	$	5,463	$	9,429	$	531	$	1,445	$	231	$	17,099
Loans receivable
Individually evaluated for impairment	$	616	$	—	$	96	$	—	$	—	$	712
Collectively evaluated for impairment		937,943		905,442		85,718		134,307		32,428		2,095,838
Total	$	938,559	$	905,442	$	85,814	$	134,307	$	32,428	$	2,096,550

	December 31, 2018
	Residential Mortgages		Commercial Mortgages		Home Equity		Commercial & Industrial		Consumer		Total
	(dollars in thousands)
Allowance for loan losses
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		4,946		9,626		517		1,415		264		16,768
Total	$	4,946	$	9,626	$	517	$	1,415	$	264	$	16,768
Loans receivable
Individually evaluated for impairment	$	647	$	—	$	88	$	5	$	—	$	740
Collectively evaluated for impairment		603,684		757,957		69,248		93,707		34,436		1,559,032
Total	$	604,331	$	757,957	$	69,336	$	93,712	$	34,436	$	1,559,772