XML 28 R13.htm IDEA: XBRL DOCUMENT v3.7.0.1
Allowance For Credit Losses
 12 Months Ended
Dec. 31, 2016
Allowance For Credit Losses [Abstract]  
Allowance For Credit Losses

(5)  ALLOWANCE FOR CREDIT LOSSES

The performance and credit quality of the loan portfolio is monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the past due status as of December 31, 2016 and December 31, 2015:

Age Analysis of Past Due Loans Receivables





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



December 31, 2016



 

 

 

 

 

 

 

 

 

 

 

 

Loans



 

 

 

 

 

 

 

 

 

 

 

 

Receivable



30-59

60-89

Greater

 

 

 

Total

> 90



Days Past

Days Past

than

Total

 

 

Loans

Days and

(Dollars in thousands)

Due

Due

90 Days

Past Due

Current

Receivables

Accruing

Residential mortgage (less acquired with credit deterioration)

$

 728 

$

 374 

$

 491 

$

 1,593 

$

 85,977 

$

 87,570 

$

 -

Acquired residential mortgage with credit deterioration

 

 -

 

 -

 

 11 

 

 11 

 

 -

 

 11 

 

 -

Commercial mortgage (less acquired with credit deterioration)

 

 1,202 

 

 762 

 

 2,169 

 

 4,133 

 

 459,679 

 

 463,812 

 

 -

Acquired commercial mortgage with credit deterioration

 

 389 

 

 83 

 

 673 

 

 1,145 

 

 529 

 

 1,674 

 

 -

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 747 

 

 377 

 

 23 

 

 1,147 

 

 122,028 

 

 123,175 

 

 -

Commercial construction

 

 112 

 

 -

 

 1,242 

 

 1,354 

 

 71,401 

 

 72,755 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 263 

 

 -

 

 300 

 

 563 

 

 61,997 

 

 62,560 

 

 -

Other

 

 27 

 

 65 

 

 151 

 

 243 

 

 5,729 

 

 5,972 

 

 -

Total

$

 3,468 

$

 1,661 

$

 5,060 

$

 10,189 

$

 807,340 

$

 817,529 

$

 -







 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



December 31, 2015



 

 

 

 

 

 

 

 

 

 

 

 

Loans



 

 

 

 

 

 

 

 

 

 

 

 

Receivable



30-59

60-89

Greater

 

 

 

Total

> 90



Days Past

Days Past

than

Total

 

 

Loans

Days and

(Dollars in thousands)

Due

Due

90 Days

Past Due

Current

Receivables

Accruing

Residential mortgage

$

 502 

$

 552 

$

 2,076 

$

 3,130 

$

 25,521 

$

 28,651 

$

 457 

Commercial mortgage

 

 36 

 

 86 

 

 96 

 

 218 

 

 273,914 

 

 274,132 

 

 -

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 -

 

 -

 

 -

 

 -

 

 102,178 

 

 102,178 

 

 -

Commercial construction

 

 -

 

 581 

 

 447 

 

 1,028 

 

 19,336 

 

 20,364 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 7 

 

 310 

 

 153 

 

 470 

 

 50,800 

 

 51,270 

 

 -

Other

 

 100 

 

 -

 

 148 

 

 248 

 

 4,915 

 

 5,163 

 

 -

Total

$

 645 

$

 1,529 

$

 2,920 

$

 5,094 

$

 476,664 

$

 481,758 

$

 457 



DNB had no residential mortgage loans in the process of foreclosure and $170,000 in residential mortgage loans in other real estate owned as of December 31, 2016. DNB had $1.0 million in residential mortgage loans in the process of foreclosure and $437,000 in residential mortgage loans in other real estate owned as of December 31, 2015.

The following table sets forth those assets that are: (i) placed on non-accrual status, (ii) contractually delinquent by 90 days or more and still accruing, and (iii) OREO as a result of foreclosure or voluntary transfer to DNB as well as other repossessed assets.



Interest that would have been recognized on nonaccrual loans had they been current in accordance with their original terms was $590,000 and $473,000 for the years ended December 31, 2016 and December 31, 2015, respectively.



Non-Performing Assets





 

 

 

 



 

 

 

 



December 31

(Dollars in thousands)

2016

2015

Non-accrual loans:

 

 

 

 

Residential mortgage

$

 1,770 

$

 1,619 

Commercial mortgage

 

 4,593 

 

 1,048 

Commercial:

 

 

 

 

Commercial term

 

 198 

 

 188 

Commercial construction

 

 1,242 

 

 1,028 

Consumer:

 

 

 

 

Home equity

 

 442 

 

 563 

Other

 

 256 

 

 189 

Total non-accrual loans

 

 8,501 

 

 4,635 

Loans 90 days past due and still accruing

 

 -

 

 457 

Total non-performing loans

 

 8,501 

 

 5,092 

Other real estate owned & other repossessed property

 

 2,767 

 

 2,581 

Total non-performing assets

$

 11,268 

$

 7,673 

The following tables summarize information in regards to impaired loans by loan portfolio class as of December 31, 2016 and December 31, 2015 and for the years then ended.

Impaired Loans





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



December 31, 2016



 

 

Unpaid

 

 

Average

Interest



Recorded

Principal

Related

Recorded

Income

(Dollars in thousands)

Investment

Balance

Allowance

Investment

Recognized

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

 653 

$

 680 

$

 -

$

 1,134 

$

 -

Acquired residential mortgage with credit deterioration

 

 11 

 

 11 

 

 -

 

 2 

 

 

Commercial mortgage

 

 2,919 

 

 3,330 

 

 -

 

 2,265 

 

 -

Acquired commercial mortgage with credit deterioration

 

 1,674 

 

 1,680 

 

 -

 

 335 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 22 

 

 24 

 

 -

 

 19 

 

 -

Commercial construction

 

 795 

 

 795 

 

 -

 

 914 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 544 

 

 595 

 

 -

 

 634 

 

 4 

Other

 

 114 

 

 122 

 

 -

 

 104 

 

 -

Total

$

 6,732 

$

 7,237 

$

 -

$

 5,407 

$

 4 

With allowance recorded:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

 1,107 

$

 1,368 

$

 143 

$

 605 

$

 -

Acquired residential mortgage with credit deterioration

 

 -

 

 -

 

 -

 

 -

 

 

Commercial mortgage

 

 -

 

 -

 

 -

 

 -

 

 -

Acquired commercial mortgage with credit deterioration

 

 -

 

 -

 

 -

 

 -

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 176 

 

 196 

 

 97 

 

 185 

 

 -

Commercial construction

 

 447 

 

 2,833 

 

 89 

 

 358 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 -

 

 -

 

 -

 

 -

 

 -

Other

 

 142 

 

 142 

 

 5 

 

 114 

 

 -

Total

$

 1,872 

$

 4,539 

$

 334 

$

 1,262 

$

 -

Total:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

 1,760 

$

 2,048 

$

 143 

$

 1,739 

$

 -

Acquired residential mortgage with credit deterioration

 

 11 

 

 11 

 

 -

 

 2 

 

 -

Commercial mortgage

 

 2,919 

 

 3,330 

 

 -

 

 2,265 

 

 -

Acquired commercial mortgage with credit deterioration

 

 1,674 

 

 1,680 

 

 -

 

 335 

 

 -

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 198 

 

 220 

 

 97 

 

 204 

 

 -

Commercial construction

 

 1,242 

 

 3,628 

 

 89 

 

 1,272 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 544 

 

 595 

 

 -

 

 634 

 

 4 

Other

 

 256 

 

 264 

 

 5 

 

 218 

 

 -

Total

$

 8,604 

$

 11,776 

$

 334 

$

 6,669 

$

 4 







 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



December 31, 2015



 

 

Unpaid

 

 

Average

Interest



Recorded

Principal

Related

Recorded

Income

(Dollars in thousands)

Investment

Balance

Allowance

Investment

Recognized

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

 1,620 

$

 1,919 

$

 -

$

 1,883 

$

 5 

Commercial mortgage

 

 1,181 

 

 1,461 

 

 -

 

 2,501 

 

 85 

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 -

 

 -

 

 -

 

 -

 

 -

Commercial construction

 

 1,140 

 

 3,526 

 

 -

 

 838 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 691 

 

 716 

 

 -

 

 535 

 

 4 

Other

 

 82 

 

 90 

 

 -

 

 124 

 

 2 

Total

$

 4,714 

$

 7,712 

$

 -

$

 5,881 

$

 96 

With allowance recorded:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

 -

$

 -

$

 -

$

 105 

$

 -

Commercial mortgage

 

 -

 

 -

 

 -

 

 121 

 

 -

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 200 

 

 211 

 

 110 

 

 200 

 

 -

Commercial construction

 

 -

 

 -

 

 -

 

 537 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 -

 

 -

 

 -

 

 18 

 

 -

Other

 

 107 

 

 107 

 

 4 

 

 29 

 

 -

Total

$

 307 

$

 318 

$

 114 

$

 1,010 

$

 -

Total:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

 1,620 

$

 1,919 

$

 -

$

 1,988 

$

 5 

Commercial mortgage

 

 1,181 

 

 1,461 

 

 -

 

 2,622 

 

 85 

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 200 

 

 211 

 

 110 

 

 200 

 

 -

Commercial construction

 

 1,140 

 

 3,526 

 

 -

 

 1,375 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 691 

 

 716 

 

 -

 

 553 

 

 4 

Other

 

 189 

 

 197 

 

 4 

 

 153 

 

 2 

Total

$

 5,021 

$

 8,030 

$

 114 

$

 6,891 

$

 96 

The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within DNB’s internal risk rating system as of December 31, 2016 and December 31, 2015.

Credit Quality Indicators





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



December 31, 2016



 

 

 

Special

 

 

 

 

 

 

(Dollars in thousands)

 

Pass

 

Mention

 

Substandard

 

Doubtful

 

Total

Residential mortgage

$

 85,259 

$

 -

$

 2,322 

$

 -

$

 87,581 

Commercial mortgage

 

 450,124 

 

 3,763 

 

 11,599 

 

 -

 

 465,486 

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 116,522 

 

 591 

 

 6,062 

 

 -

 

 123,175 

Commercial construction

 

 71,400 

 

 -

 

 1,355 

 

 -

 

 72,755 

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 61,782 

 

 -

 

 778 

 

 -

 

 62,560 

Other

 

 5,716 

 

 -

 

 256 

 

 -

 

 5,972 

Total

$

 790,803 

$

 4,354 

$

 22,372 

$

 -

$

 817,529 







 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



December 31, 2015



 

 

 

Special

 

 

 

 

 

 

(Dollars in thousands)

 

Pass

 

Mention

 

Substandard

 

Doubtful

 

Total

Residential mortgage

$

 26,762 

$

 -

$

 1,889 

$

 -

$

 28,651 

Commercial mortgage

 

 262,036 

 

 4,802 

 

 7,294 

 

 -

 

 274,132 

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 93,025 

 

 2,555 

 

 6,598 

 

 -

 

 102,178 

Commercial construction

 

 17,521 

 

 -

 

 2,843 

 

 -

 

 20,364 

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 50,551 

 

 -

 

 719 

 

 -

 

 51,270 

Other

 

 4,974 

 

 -

 

 189 

 

 -

 

 5,163 

Total

$

 454,869 

$

 7,357 

$

 19,532 

$

 -

$

 481,758 



Allowance for Credit Losses and Recorded Investment in Related Loans



The following tables set forth the activity and composition of DNB’s allowance for credit losses at the dates and periods indicated.





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



2016



Residential

Commercial

Commercial

Commercial

Lease

Consumer

Consumer

 

 

 

 

(Dollars in thousands)

Mortgage

Mortgage

Term

Construction

Financing

Home Equity

Other

Unallocated

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance - January 1, 2016

$

 216 

$

 2,375 

$

 989 

$

 569 

$

 -

$

 195 

$

 64 

$

 527 

$

 4,935 

Charge-offs

 

 (206)

 

 (39)

 

 (45)

 

 -

 

 -

 

 -

 

 (21)

 

 -

 

 (311)

Recoveries

 

 13 

 

 -

 

 1 

 

 1 

 

 3 

 

 -

 

 1 

 

 -

 

 19 

Provisions

 

 326 

 

 195 

 

 (236)

 

 399 

 

 (3)

 

 1 

 

 17 

 

 31 

 

 730 

Ending balance - December 31, 2016

$

 349 

$

 2,531 

$

 709 

$

 969 

$

 -

$

 196 

$

 61 

$

 558 

$

 5,373 

Ending balance: individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 143 

$

 -

$

 97 

$

 89 

$

 -

$

 -

$

 5 

$

 -

$

 334 

Ending balance: collectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 206 

$

 2,531 

$

 612 

$

 880 

$

 -

$

 196 

$

 56 

$

 558 

$

 5,039 

Ending balance: Loan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

receivables

$

 87,581 

$

 465,486 

$

 123,175 

$

 72,755 

$

 -

$

 62,560 

$

 5,972 

 

 

$

 817,529 

Ending balance: individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 1,760 

$

 2,919 

$

 198 

$

 1,242 

$

 -

$

 544 

$

 256 

 

 

$

 6,919 

Ending balance: acquired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

with credit deterioration

$

 11 

$

 1,674 

$

 -

$

 -

$

 -

$

 -

$

 -

 

 

$

 1,685 

Ending balance: collectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 85,810 

$

 460,893 

$

 122,977 

$

 71,513 

$

 -

$

 62,016 

$

 5,716 

 

 

$

 808,925 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



2015



Residential

Commercial

Commercial

Commercial

Lease

Consumer

Consumer

 

 

 

 

(Dollars in thousands)

Mortgage

Mortgage

Term

Construction

Financing

Home Equity

Other

Unallocated

Total

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance - January 1, 2015

$

 269 

$

 2,300 

$

 709 

$

 881 

$

 -

$

 189 

$

 70 

$

 488 

$

 4,906 

Charge-offs

 

 (194)

 

 (105)

 

 (200)

 

 (581)

 

 -

 

 (11)

 

 (63)

 

 -

 

 (1,154)

Recoveries

 

 4 

 

 -

 

 13 

 

 10 

 

 49 

 

 -

 

 2 

 

 -

 

 78 

Provisions

 

 137 

 

 180 

 

 467 

 

 259 

 

 (49)

 

 17 

 

 55 

 

 39 

 

 1,105 

Ending balance - December 31, 2015

$

 216 

$

 2,375 

$

 989 

$

 569 

$

 -

$

 195 

$

 64 

$

 527 

$

 4,935 

Ending balance: individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 -

$

 -

$

 110 

$

 -

$

 -

$

 -

$

 4 

$

 -

$

 114 

Ending balance: collectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 216 

$

 2,375 

$

 879 

$

 569 

$

 -

$

 195 

$

 60 

$

 527 

$

 4,821 

Ending balance: Loan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

receivables

$

 28,651 

$

 274,132 

$

 102,178 

$

 20,364 

$

 -

$

 51,270 

$

 5,163 

 

 

$

 481,758 

Ending balance: individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 1,620 

$

 1,181 

$

 200 

$

 1,140 

$

 -

$

 691 

$

 189 

 

 

$

 5,021 

Ending balance: collectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 27,031 

$

 272,951 

$

 101,978 

$

 19,224 

$

 -

$

 50,579 

$

 4,974 

 

 

$

 476,737 





The changes in the accretible yield of acquired loans accounted for under ASC 310-30 for the years ended December 31, 2016 and 2015 were as follows:







 

 

 

 

(Dollars in thousands)

2016

2015

Beginning balance, January 1

$

 -

$

 -

Accretible yield acquired

 

 348 

 

 -

Accretion

 

 (34)

 

 -

Payments

 

 -

 

 -

Ending balance, December 31

$

 314 

$

 -