XML 46 R33.htm IDEA: XBRL DOCUMENT

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of classes of the loan portfolio summarized by risk rating

The following table presents the classes of the loan portfolio summarized by risk rating as of December 31, 2020 and 2019:


	Commercial and
(Dollars in thousands)	Industrial				Commercial Real Estate
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
Grade:
1-6 Pass	$	90,906	$	84,999	$	444,119	$	382,510
7 Special Mention		—		2		814		944
8 Substandard		919		1,068		20,975		11,590
9 Doubtful		—		—		—		—
Add (deduct): Unearned discount and		—		—		—		—
Net deferred loan fees and costs		50		643		820		757
Total loans	$	91,875	$	86,712	$	466,728	$	395,801


	Residential Real Estate
	Including Home Equity				Consumer
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
Grade:
1-6 Pass	$	155,698	$	158,301	$	4,934	$	5,662
7 Special Mention		225		117		—		83
8 Substandard		1,186		1,048		18		35
9 Doubtful		—		—		—		—
Add (deduct): Unearned discount and		—		—		—		—
Net deferred loan fees and costs		(126)		(116)		72		89
Total loans	$	156,983	$	159,350	$	5,024	$	5,869


	Total Loans
	December 31,		December 31,
	2020		2019
Grade:
1-6 Pass	$	695,657	$	631,472
7 Special Mention		1,039		1,146
8 Substandard		23,098		13,741
9 Doubtful		—		—
Add (deduct): Unearned discount and		—		—
Net deferred loan fees and costs		816		1,373
Total loans	$	720,610	$	647,732

Schedule of the allowance for loan losses, by loan class

The activity in the allowance for loan losses, by loan class, is summarized below for the years indicated.


(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the year ended December 31, 2020:
Allowance for Loan Losses:
Beginning balance	$	634	$	4,116	$	1,665	$	114	$	476	$	7,005
Charge-offs		(90)		(141)		(33)		(37)		—		(301)
Recoveries		14		—		8		7		—		29
Provision		229		787		3		10		171		1,200
Ending Balance	$	787	$	4,762	$	1,643	$	94	$	647	$	7,933
Ending balance: individually
evaluated for impairment	$	—	$	8	$	—	$	—	$	—	$	8
Ending balance: collectively
evaluated for impairment	$	787	$	4,754	$	1,643	$	94	$	647	$	7,925

Loans Receivable:
Ending Balance	$	91,875	$	466,728	$	156,983	$	5,024	$	—	$	720,610
Ending balance: individually
evaluated for impairment	$	1,095	$	12,923	$	1,036	$	—	$	—	$	15,054
Ending balance: collectively
evaluated for impairment	$	90,780	$	453,805	$	155,947	$	5,024	$	—	$	705,556


(Dollars in thousands)	Commercial		Commercial		Residential
	and Industrial		Real Estate		Real Estate		Consumer		Unallocated		Total
As of and for the year ended December 31, 2019:
Allowance for Loan Losses:
Beginning balance	$	724	$	3,700	$	1,650	$	117	$	554	$	6,745
Charge-offs		—		(64)		(69)		(71)		—		(204)
Recoveries		6		—		2		6		—		14
Provision (credit)		(96)		480		82		62		(78)		450
Ending Balance	$	634	$	4,116	$	1,665	$	114	$	476	$	7,005
Ending balance: individually
evaluated for impairment	$	—	$	1	$	—	$	—	$	—	$	1
Ending balance: collectively
evaluated for impairment	$	634	$	4,115	$	1,665	$	114	$	476	$	7,004

Loans Receivable:
Ending Balance	$	86,712	$	395,801	$	159,350	$	5,869	$	—	$	647,732
Ending balance: individually
evaluated for impairment	$	1,084	$	11,158	$	712	$	—	$	—	$	12,954
Ending balance: collectively
evaluated for impairment	$	85,628	$	384,643	$	158,638	$	5,869	$	—	$	634,778

Schedule of the outstanding recorded investment of TDRs

The following table presents the outstanding recorded investment of TDRs at the dates indicated:


(Dollars in thousands)	December 31,		December 31,
	2020		2019
Non-accrual TDRs	$	1,587	$	112
Accruing TDRs		7,976		8,566
Total	$	9,563	$	8,678

Schedule of the loan modifications categorized as TDRs

The following table presents information regarding the loan modifications categorized as TDRs during the year ended December 31, 2020. No loans were modified as TDRs during the year ended December 31, 2019.


(Dollars in thousands)	Year Ended December 31, 2020
		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded		Recorded
	Contracts	Investment		Investment		Investment
Commercial and Industrial	2	$	42	$	42	$	40
Commercial Real Estate	6		1,494		1,494		1,486
Total	8	$	1,536	$	1,536	$	1,526

Schedule of loan modifications made for loans categorized as TDRs

The following table provides detail regarding the types of loan modifications made for loans categorized as TDRs during the year ended December 31, 2020 with the total number of each type of modification performed. No loans were modified as TDRs during the year ended December 31, 2019.


	Year Ended December 31, 2020
	Rate	Term	Payment	Number
	Modification	Modification	Modification	Modified
Commercial and Industrial	—	1	1	2
Commercial Real Estate	—	1	5	6
Total	—	2	6	8

Schedule of information related to loan modifications


(Dollars in thousands)	Commercial and			Commercial			Residential
	Industrial			Real Estate			Real Estate			Consumer			Total
		Recorded			Recorded			Recorded			Recorded			Recorded
	Count	Investment		Count	Investment		Count	Investment		Count	Investment		Count	Investment
Balance at June 30, 2020	66	$	11,540	325	$	143,886	81	$	8,143	18	$	126	490	$	163,695
Additional modifications granted for the three months ended September 30,2020	3		654	9		2,130	2		641	-		-	14		3,425
Section 4013 CARES Act modifications returned to normal payment status during the three months ended September 30, 2020 (a)	(28)		(4,943)	(192)		(79,525)	(77)		(7,291)	(18)		(126)	(315)		(91,885)
Principal payments net of draws on active deferred loans for the three months ended September 30, 2020 (b)	N/A		-	N/A		(299)	N/A		(1)	N/A		-	N/A		(300)
Balance at September 30, 2020	41	$	7,251	142	$	66,192	6	$	1,492	—	$	—	189	$	74,935
Additional modifications granted for the three months ended December 31,2020	—		—	5		1,246	4		537	—		—	9		1,783
Section 4013 CARES Act modifications returned to normal payment status during the three months ended December 31, 2020 (a)	(34)		(6,239)	(112)		(52,178)	(8)		(1,760)	—		—	(154)		(60,177)
Principal payments net of draws on active deferred loans for the three months ended December 31, 2020 (b)	N/A		-	N/A		—	N/A		—	N/A		-	N/A		—
Balance at December 31, 2020	7	$	1,012	35	$	15,260	2	$	269	—	$	—	44	$	16,541

Percent of Total Section 4013 CARES Act Modifications as of December 31, 2020			6.12%			92.25%			1.63%			0.00%			100.00%
Percent of Total Section 4013 CARES Act Modifications to Total Loans as of December 31, 2020			0.14%			2.12%			0.04%			0.00%			2.30%

Subsequent modifications granted for active deferred loans as of December 31, 2020	5	$	400	9	$	6,360	-	$	-	-	$	-	14	$	6,760
(a) Includes payments made prior to return to normal payment status during the quarters ended September 30 and December 31, 2020 (b) Draws include those made on lines of credit and other loans contractually allowing draws of principal. No construction loans have experienced a Section 4013 CARES Act Modification as of the dates indicated.

Schedule of recorded investment, unpaid principal balance, related allowance, average recorded investment, and interest income recognized with respect to the Corporation's impaired loans

The recorded investment, unpaid principal balance, and the related allowance of the Corporation’s impaired loans are summarized below at December 31, 2020 and 2019.


(Dollars in thousands)	December 31, 2020						December 31, 2019
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded:
Commercial and Industrial	$	1,095	$	1,095	$	—	$	1,084	$	1,084	$	—
Commercial Real Estate		12,438		15,400		—		11,130		14,147		—
Residential Real Estate		1,036		1,120		—		712		822		—

With an allowance recorded:
Commercial and Industrial		—		—		—		—		—		—
Commercial Real Estate		485		485		8		28		28		1
Residential Real Estate		—		—		—		—		—		—
Total	$	15,054	$	18,100	$	8	$	12,954	$	16,081	$	1
Total consists of:
Commercial and Industrial	$	1,095	$	1,095	$	—	$	1,084	$	1,084	$	—
Commercial Real Estate	$	12,923	$	15,885	$	8	$	11,158	$	14,175	$	1
Residential Real Estate	$	1,036	$	1,120	$	—	$	712	$	822	$	—

At December 31, 2020 and 2019, $9,563,000 and $8,678,000 of loans classified as TDRs were included in impaired loans with a total allocated allowance of $0 and $1,000, respectively. The recorded investment represents the loan balance reflected on the consolidated balance sheets net of any charge-offs. The unpaid balance is equal to the gross amount due on the loan.

The average recorded investment and interest income recognized for the Corporation’s impaired loans are summarized below for the years ended December 31, 2020 and 2019.


(Dollars in thousands)	For the Year Ended				For the Year Ended
	December 31, 2020				December 31, 2019
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Commercial and Industrial	$	1,082	$	14	$	1,106	$	53
Commercial Real Estate		11,463		371		12,426		435
Residential Real Estate		1,026		1		614		7

With an allowance recorded:
Commercial and Industrial		—		—		—		—
Commercial Real Estate		118		5		69		3
Residential Real Estate		13		1		13		—
Total	$	13,702	$	392	$	14,228	$	498

Total consists of:
Commercial and Industrial	$	1,082	$	14	$	1,106	$	53
Commercial Real Estate	$	11,581	$	376	$	12,495	$	438
Residential Real Estate	$	1,039	$	2	$	627	$	7

Of the $392,000 and $498,000 in interest income recognized on impaired loans for the years ended December 31, 2020 and 2019, respectively, $5,000 in interest income was recognized with respect to non-accrual loans for each respective period.

Schedule of total non-performing assets

Total non-performing assets (which includes loans receivable on non-accrual status, foreclosed assets held for resale and loans past-due 90 days or more and still accruing interest) as of December 31, 2020 and 2019 were as follows:


(Dollars in thousands)	December 31,		December 31,
	2020		2019
Commercial and Industrial	$	745	$	—
Commercial Real Estate		5,315		3,697
Residential Real Estate		1,018		691
Total non-accrual loans		7,078		4,388
Foreclosed assets held for resale		28		119
Loans past-due 90 days or more and still accruing interest		13		100
Total non-performing assets	$	7,119	$	4,607

Schedule of classes of the loan portfolio by past-due status

The following tables present the classes of the loan portfolio summarized by the past-due status at December 31, 2020 and 2019:

(Dollars in thousands)

90 Days

Or Greater

Past Due

90 Days

Current-

and Still

30-59 Days

60-89 Days

or Greater

Total

29 Days

Total

Accruing

Past Due

Loans

Interest

December 31, 2020:

Commercial and Industrial

—

745

91,130

91,875

—

Commercial Real Estate

1,879

968

4,552

7,399

459,329

466,728

—

Residential Real Estate

628

1,031

1,733

155,250

156,983

Consumer

—

4,999

5,024

—

Total

2,526

1,048

6,328

9,902

710,708

720,610


(Dollars in thousands)													90 Days
													Or Greater
													Past Due
					90 Days					Current-			and Still
	30-59 Days		60-89 Days		or Greater		Total			29 Days	Total		Accruing
	Past Due		Past Due		Past Due		Past Due		Past Due		Loans		Interest
December 31, 2019:
Commercial and Industrial	$	—	$	26	$	—	$	26	$	86,686	$	86,712	$	—
Commercial Real Estate		880		957		3,502		5,339		390,462		395,801		—
Residential Real Estate		1,118		506		613		2,237		157,113		159,350		100
Consumer		24		5		—		29		5,840		5,869		—
Total	$	2,022	$	1,494	$	4,115	$	7,631	$	640,101	$	647,732	$	100