XML 28 R12.htm IDEA: XBRL DOCUMENT v3.19.1
Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2018
Allowance for Credit Losses [Abstract]  
Allowance for Credit Losses

(4)  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, 2018 and December 31, 2017:

Age Analysis of Past Due Loans Receivables





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



December 31, 2018



 

 

 

 

 

 

 

 

 

 

 

 

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

$

 666 

$

 1,742 

$

 845 

$

 3,253 

$

 96,679 

$

 99,932 

$

 130 

Commercial mortgage (less acquired with credit deterioration)

 

 -

 

 -

 

 840 

 

 840 

 

 534,739 

 

 535,579 

 

 103 

Acquired commercial mortgage with credit deterioration

 

 -

 

 -

 

 -

 

 -

 

 156 

 

 156 

 

 -

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 20 

 

 37 

 

 957 

 

 1,014 

 

 165,321 

 

 166,335 

 

 -

Commercial construction

 

 -

 

 -

 

 -

 

 -

 

 76,302 

 

 76,302 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 398 

 

 144 

 

 247 

 

 789 

 

 50,747 

 

 51,536 

 

 -

Other

 

 26 

 

 -

 

 108 

 

 134 

 

 4,997 

 

 5,131 

 

 -

Total

$

 1,110 

$

 1,923 

$

 2,997 

$

 6,030 

$

 928,941 

$

 934,971 

$

 233 







 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



December 31, 2017



 

 

 

 

 

 

 

 

 

 

 

 

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)

$

 887 

$

 349 

$

 1,148 

$

 2,384 

$

 91,568 

$

 93,952 

$

 -

Acquired residential mortgage with credit deterioration

 

 -

 

 -

 

 7 

 

 7 

 

 -

 

 7 

 

 -

Commercial mortgage (less acquired with credit deterioration)

 

 221 

 

 -

 

 1,126 

 

 1,347 

 

 483,105 

 

 484,452 

 

 -

Acquired commercial mortgage with credit deterioration

 

 -

 

 -

 

 416 

 

 416 

 

 -

 

 416 

 

 -

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 381 

 

 13 

 

 1,654 

 

 2,048 

 

 127,487 

 

 129,535 

 

 -

Commercial construction

 

 514 

 

 -

 

 -

 

 514 

 

 74,500 

 

 75,014 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 15 

 

 -

 

 386 

 

 401 

 

 56,443 

 

 56,844 

 

 -

Other

 

 13 

 

 139 

 

 156 

 

 308 

 

 5,369 

 

 5,677 

 

 54 

Total

$

 2,031 

$

 501 

$

 4,893 

$

 7,425 

$

 838,472 

$

 845,897 

$

 54 



DNB had no residential mortgage loans in the process of foreclosure and $97,000 in residential real estate in other real estate owned as of December 31, 2018. DNB had $638,000 residential mortgage loans in the process of foreclosure and $149,000 in residential real estate in other real estate owned as of December 31, 2017.

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 $402,000 and $589,000 for the years ended December 31, 2018 and December 31, 2017, respectively.



Non-Performing Assets





 

 

 

 



 

 

 

 



December 31

(Dollars in thousands)

2018

2017

Non-accrual loans:

 

 

 

 

Residential mortgage

$

 905 

$

 1,915 

Commercial mortgage

 

 1,307 

 

 2,259 

Commercial:

 

 

 

 

Commercial term

 

 2,300 

 

 2,100 

Commercial construction

 

 476 

 

 514 

Consumer:

 

 

 

 

Home equity

 

 391 

 

 466 

Other

 

 167 

 

 245 

Total non-accrual loans

 

 5,546 

 

 7,499 

Loans 90 days past due and still accruing

 

 233 

 

 54 

Total non-performing loans

 

 5,779 

 

 7,553 

Other real estate owned & other repossessed property

 

 5,051 

 

 5,012 

Total non-performing assets

$

 10,830 

$

 12,565 

The following tables summarize information in regards to impaired loans by loan portfolio class as of December 31, 2018 and December 31, 2017 and for the years then ended.

Impaired Loans





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



December 31, 2018



 

 

Unpaid

 

 

Average

Interest



Recorded

Principal

Related

Recorded

Income

(Dollars in thousands)

Investment

Balance

Allowance

Investment

Recognized

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

 1,462 

$

 1,804 

$

 -

$

 1,832 

$

 18 

Acquired residential mortgage with credit deterioration

 

 -

 

 -

 

 -

 

 1 

 

 -

Commercial mortgage

 

 1,532 

 

 1,780 

 

 -

 

 2,388 

 

 49 

Acquired commercial mortgage with credit deterioration

 

 514 

 

 527 

 

 -

 

 656 

 

 34 

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 1,343 

 

 1,845 

 

 -

 

 1,701 

 

 -

Commercial construction

 

 476 

 

 514 

 

 -

 

 491 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 531 

 

 535 

 

 -

 

 633 

 

 7 

Other

 

 156 

 

 205 

 

 -

 

 169 

 

 1 

Total

$

 6,014 

$

 7,210 

$

 -

$

 7,871 

$

 109 

With allowance recorded:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

 73 

$

 73 

$

 1 

$

 44 

$

 2 

Acquired residential mortgage with credit deterioration

 

 -

 

 -

 

 -

 

 -

 

 -

Commercial mortgage

 

 737 

 

 802 

 

 78 

 

 208 

 

 -

Acquired commercial mortgage with credit deterioration

 

 -

 

 -

 

 -

 

 -

 

 -

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 957 

 

 1,015 

 

 203 

 

 820 

 

 -

Commercial construction

 

 -

 

 -

 

 -

 

 -

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 -

 

 -

 

 -

 

 -

 

 -

Other

 

 41 

 

 42 

 

 3 

 

 71 

 

 -

Total

$

 1,808 

$

 1,932 

$

 285 

$

 1,143 

$

 2 

Total:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

 1,535 

$

 1,877 

$

 1 

$

 1,876 

$

 20 

Acquired residential mortgage with credit deterioration

 

 -

 

 -

 

 -

 

 1 

 

 -

Commercial mortgage

 

 2,269 

 

 2,582 

 

 78 

 

 2,596 

 

 49 

Acquired commercial mortgage with credit deterioration

 

 514 

 

 527 

 

 -

 

 656 

 

 34 

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 2,300 

 

 2,860 

 

 203 

 

 2,521 

 

 -

Commercial construction

 

 476 

 

 514 

 

 -

 

 491 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 531 

 

 535 

 

 -

 

 633 

 

 7 

Other

 

 197 

 

 247 

 

 3 

 

 240 

 

 1 

Total

$

 7,822 

$

 9,142 

$

 285 

$

 9,014 

$

 111 







 

 

 

 

 

 

 

 

 

 







 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



December 31, 2017



 

 

Unpaid

 

 

Average

Interest



Recorded

Principal

Related

Recorded

Income

(Dollars in thousands)

Investment

Balance

Allowance

Investment

Recognized

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

 1,908 

$

 2,210 

$

 -

$

 1,540 

$

 -

Acquired residential mortgage with credit deterioration

 

 -

 

 -

 

 -

 

 7 

 

 -

Commercial mortgage

 

 2,809 

 

 3,207 

 

 -

 

 2,180 

 

 15 

Acquired commercial mortgage with credit deterioration

 

 936 

 

 950 

 

 -

 

 1,205 

 

 -

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 1,743 

 

 2,253 

 

 -

 

 1,131 

 

 -

Commercial construction

 

 514 

 

 514 

 

 -

 

 690 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 612 

 

 632 

 

 -

 

 586 

 

 9 

Other

 

 117 

 

 117 

 

 -

 

 106 

 

 -

Total

$

 8,639 

$

 9,883 

$

 -

$

 7,445 

$

 24 

With allowance recorded:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

 -

$

 -

$

 -

$

 333 

$

 -

Acquired residential mortgage with credit deterioration

 

 7 

 

 26 

 

 3 

 

 4 

 

 -

Commercial mortgage

 

 19 

 

 93 

 

 19 

 

 8 

 

 -

Acquired commercial mortgage with credit deterioration

 

 -

 

 -

 

 -

 

 -

 

 -

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 337 

 

 343 

 

 123 

 

 325 

 

 -

Commercial construction

 

 -

 

 -

 

 -

 

 89 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 -

 

 -

 

 -

 

 -

 

 -

Other

 

 128 

 

 129 

 

 12 

 

 169 

 

 -

Total

$

 491 

$

 591 

$

 157 

$

 928 

$

 -

Total:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

$

 1,908 

$

 2,210 

$

 -

$

 1,873 

$

 -

Acquired residential mortgage with credit deterioration

 

 7 

 

 26 

 

 3 

 

 11 

 

 -

Commercial mortgage

 

 2,828 

 

 3,300 

 

 19 

 

 2,188 

 

 15 

Acquired commercial mortgage with credit deterioration

 

 936 

 

 950 

 

 -

 

 1,205 

 

 -

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 2,080 

 

 2,596 

 

 123 

 

 1,456 

 

 -

Commercial construction

 

 514 

 

 514 

 

 -

 

 779 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 612 

 

 632 

 

 -

 

 586 

 

 9 

Other

 

 245 

 

 246 

 

 12 

 

 275 

 

 -

Total

$

 9,130 

$

 10,474 

$

 157 

$

 8,373 

$

 24 



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, 2018 and December 31, 2017.

Credit Quality Indicators





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



December 31, 2018



 

 

 

Special

 

 

 

 

 

 

(Dollars in thousands)

 

Pass

 

Mention

 

Substandard

 

Doubtful

 

Total

Residential mortgage

$

 97,577 

$

 -

$

 2,355 

$

 -

$

 99,932 

Commercial mortgage

 

 528,692 

 

 2,367 

 

 4,676 

 

 -

 

 535,735 

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 161,051 

 

 1,178 

 

 4,106 

 

 -

 

 166,335 

Commercial construction

 

 72,077 

 

 3,603 

 

 622 

 

 -

 

 76,302 

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 50,988 

 

 143 

 

 405 

 

 -

 

 51,536 

Other

 

 4,924 

 

 -

 

 207 

 

 -

 

 5,131 

Total

$

 915,309 

$

 7,291 

$

 12,371 

$

 -

$

 934,971 







 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



December 31, 2017



 

 

 

Special

 

 

 

 

 

 

(Dollars in thousands)

 

Pass

 

Mention

 

Substandard

 

Doubtful

 

Total

Residential mortgage

$

 91,993 

$

 -

$

 1,966 

$

 -

$

 93,959 

Commercial mortgage

 

 479,308 

 

 125 

 

 5,435 

 

 -

 

 484,868 

Commercial:

 

 

 

 

 

 

 

 

 

 

Commercial term

 

 125,926 

 

 115 

 

 3,494 

 

 -

 

 129,535 

Commercial construction

 

 73,902 

 

 -

 

 1,112 

 

 -

 

 75,014 

Consumer:

 

 

 

 

 

 

 

 

 

 

Home equity

 

 56,085 

 

 -

 

 759 

 

 -

 

 56,844 

Other

 

 5,432 

 

 -

 

 245 

 

 -

 

 5,677 

Total

$

 832,646 

$

 240 

$

 13,011 

$

 -

$

 845,897 





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.









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



2018



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, 2018

$

 221 

$

 2,856 

$

 845 

$

 1,128 

$

 -

$

 183 

$

 63 

$

 547 

$

 5,843 

Charge-offs

 

 (178)

 

 (249)

 

 (243)

 

 -

 

 -

 

 -

 

 (72)

 

 -

 

 (742)

Recoveries

 

 341 

 

 22 

 

 4 

 

 5 

 

 -

 

 -

 

 2 

 

 -

 

 374 

Provisions

 

 (223)

 

 1,018 

 

 456 

 

 (101)

 

 -

 

 7 

 

 53 

 

 (10)

 

 1,200 

Ending balance - December 31, 2018

$

 161 

$

 3,647 

$

 1,062 

$

 1,032 

$

 -

$

 190 

$

 46 

$

 537 

$

 6,675 

Ending balance: individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 1 

$

 78 

$

 203 

$

 -

$

 -

$

 -

$

 3 

$

 -

$

 285 

Ending balance: collectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 160 

$

 3,569 

$

 859 

$

 1,032 

$

 -

$

 190 

$

 43 

$

 537 

$

 6,390 

Ending balance: Loan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

receivables

$

 99,932 

$

 535,735 

$

 166,335 

$

 76,302 

$

 -

$

 51,536 

$

 5,131 

 

 

$

 934,971 

Ending balance: individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 1,535 

$

 2,269 

$

 2,300 

$

 476 

$

 -

$

 531 

$

 197 

 

 

$

 7,308 

Ending balance: acquired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

with credit deterioration

$

 -

$

 514 

$

 -

$

 -

$

 -

$

 -

$

 -

 

 

$

 514 

Ending balance: collectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 98,397 

$

 532,952 

$

 164,035 

$

 75,826 

$

 -

$

 51,005 

$

 4,934 

 

 

$

 927,149 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



2017



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, 2017

$

 349 

$

 2,531 

$

 709 

$

 969 

$

 -

$

 196 

$

 61 

$

 558 

$

 5,373 

Charge-offs

 

 (85)

 

 (519)

 

 (683)

 

 -

 

 -

 

 -

 

 (38)

 

 -

 

 (1,325)

Recoveries

 

 16 

 

 51 

 

 23 

 

 42 

 

 1 

 

 -

 

 2 

 

 -

 

 135 

Provisions

 

 (59)

 

 793 

 

 796 

 

 117 

 

 (1)

 

 (13)

 

 38 

 

 (11)

 

 1,660 

Ending balance - December 31, 2017

$

 221 

$

 2,856 

$

 845 

$

 1,128 

$

 -

$

 183 

$

 63 

$

 547 

$

 5,843 

Ending balance: individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 3 

$

 19 

$

 123 

$

 -

$

 -

$

 -

$

 12 

$

 -

$

 157 

Ending balance: collectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 218 

$

 2,837 

$

 722 

$

 1,128 

$

 -

$

 183 

$

 51 

$

 547 

$

 5,686 

Ending balance: Loan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

receivables

$

 93,959 

$

 484,868 

$

 129,535 

$

 75,014 

$

 -

$

 56,844 

$

 5,677 

 

 

$

 845,897 

Ending balance: individually

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 1,908 

$

 2,828 

$

 2,080 

$

 514 

$

 -

$

 612 

$

 245 

 

 

$

 8,187 

Ending balance: acquired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

with credit deterioration

$

 7 

$

 936 

$

 -

$

 -

$

 -

$

 -

$

 -

 

 

$

 943 

Ending balance: collectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

evaluated for impairment

$

 92,044 

$

 481,104 

$

 127,455 

$

 74,500 

$

 -

$

 56,232 

$

 5,432 

 

 

$

 836,767 







The changes in the accretable yield of acquired loans accounted for under ASC 310-30 for the years ended December 31, 2018 and 2017 were as follows:







 

 

 

 

(Dollars in thousands)

2018

2017

Beginning balance, January 1

$

 196 

$

 314 

Reclassification of non-accretable discount

 

 -

 

 92 

Accretion

 

 (51)

 

 (97)

Payments

 

 -

 

 (113)

Ending balance, December 31

$

 145 

$

 196