Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Allowance for Loan Losses by Class of Financing Receivable and Allowance

A breakdown of the allowance for loan losses as of June 30, 2017, December 31, 2016, and June 30, 2016, by class of financing receivable and allowance element, is presented in the following tables:

As of June 30, 2017	Specific Reserves on Loans Evaluated Individually for Impairment		General Reserves on Loans Based on Historical Loss Experience		Reserves for Qualitative Factors		Unallocated Reserves		Total Reserves
Commercial
Real estate	$	221,000	$	1,467,000	$	2,308,000	$	—	$	3,996,000
Construction	103,000		161,000		253,000		—		517,000
Other	36,000		829,000		1,306,000		—		2,171,000
Municipal	—		—		19,000		—		19,000
Residential
Term	209,000		249,000		541,000		—		999,000
Construction	—		8,000		18,000		—		26,000
Home equity line of credit	25,000		300,000		359,000		—		684,000
Consumer	—		245,000		284,000		—		529,000
Unallocated	—		—		—		1,670,000		1,670,000
	$	594,000	$	3,259,000	$	5,088,000	$	1,670,000	$	10,611,000

As of December 31, 2016	Specific Reserves on Loans Evaluated Individually for Impairment		General Reserves on Loans Based on Historical Loss Experience		Reserves for Qualitative Factors		Unallocated Reserves		Total Reserves
Commercial
Real estate	$	505,000	$	1,471,000	$	2,012,000	$	—	$	3,988,000
Construction	100,000		125,000		171,000		—		396,000
Other	39,000		735,000		1,006,000		—		1,780,000
Municipal	—		—		18,000		—		18,000
Residential
Term	304,000		563,000		421,000		—		1,288,000
Construction	—		25,000		19,000		—		44,000
Home equity line of credit	26,000		444,000		337,000		—		807,000
Consumer	—		328,000		231,000		—		559,000
Unallocated	—		—		—		1,258,000		1,258,000
	$	974,000	$	3,691,000	$	4,215,000	$	1,258,000	$	10,138,000

As of June 30, 2016	Specific Reserves on Loans Evaluated Individually for Impairment		General Reserves on Loans Based on Historical Loss Experience		Reserves for Qualitative Factors		Unallocated Reserves		Total Reserves
Commercial
Real estate	$	369,000	$	1,296,000	$	2,290,000	$	—	$	3,955,000
Construction	97,000		80,000		141,000		—		318,000
Other	158,000		585,000		1,035,000		—		1,778,000
Municipal	—		—		17,000		—		17,000
Residential
Term	326,000		577,000		462,000		—		1,365,000
Construction	—		19,000		15,000		—		34,000
Home equity line of credit	28,000		475,000		377,000		—		880,000
Consumer	51,000		341,000		243,000		—		635,000
Unallocated	—		—		—		1,216,000		1,216,000
	$	1,029,000	$	3,373,000	$	4,580,000	$	1,216,000	$	10,198,000

Summary of Risk Ratings for Loans

The following table summarizes the risk ratings for the Company's commercial real estate, commercial construction, commercial other, and municipal loans as of June 30, 2017:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	2,000	$	—	$	1,004,000	$	—	$	1,006,000
2 Above Average	13,737,000		45,000		7,700,000		27,895,000		49,377,000
3 Satisfactory	84,550,000		2,827,000		52,024,000		800,000		140,201,000
4 Average	140,826,000		20,849,000		80,537,000		—		242,212,000
5 Watch	46,158,000		9,884,000		16,402,000		—		72,444,000
6 OAEM	3,283,000		—		3,920,000		—		7,203,000
7 Substandard	17,811,000		—		12,104,000		—		29,915,000
8 Doubtful	123,000		—		—		—		123,000
Total	$	306,490,000	$	33,605,000	$	173,691,000	$	28,695,000	$	542,481,000

The following table summarizes the risk ratings for the Company's commercial real estate, commercial construction, commercial other, and municipal loans as of December 31, 2016:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	2,000	$	—	$	850,000	$	—	$	852,000
2 Above Average	13,981,000		49,000		8,934,000		25,527,000		48,491,000
3 Satisfactory	81,286,000		1,345,000		48,212,000		1,529,000		132,372,000
4 Average	139,421,000		16,506,000		65,146,000		—		221,073,000
5 Watch	43,181,000		7,349,000		16,864,000		—		67,394,000
6 OAEM	4,569,000		—		1,587,000		—		6,156,000
7 Substandard	20,066,000		157,000		9,176,000		—		29,399,000
8 Doubtful	—		—		—		—		—
Total	$	302,506,000	$	25,406,000	$	150,769,000	$	27,056,000	$	505,737,000

The following table summarizes the risk ratings for the Company's commercial real estate, commercial construction, commercial other, and municipal loans as of June 30, 2016:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	3,000	$	—	$	897,000	$	—	$	900,000
2 Above Average	27,602,000		54,000		7,567,000		23,898,000		59,121,000
3 Satisfactory	71,595,000		995,000		25,038,000		1,633,000		99,261,000
4 Average	136,010,000		11,769,000		72,919,000		—		220,698,000
5 Watch	41,328,000		5,621,000		24,702,000		—		71,651,000
6 OAEM	9,443,000		—		2,587,000		—		12,030,000
7 Substandard	17,331,000		—		2,941,000		—		20,272,000
8 Doubtful	—		—		—		—		—
Total	$	303,312,000	$	18,439,000	$	136,651,000	$	25,531,000	$	483,933,000

Allowance for Loan Losses Transactions

The following table presents allowance for loan losses activity by class for the six months and quarter ended June 30, 2017, and allowance for loan loss balances by class and related loan balances by class as of June 30, 2017:

	Commercial						Municipal		Residential						Home Equity Line of Credit			Consumer			Unallocated		Total
	Real Estate		Construction		Other				Term			Construction
For the six months ended June 30, 2017
Beginning balance	$	3,988,000	$	396,000	$	1,780,000	$	18,000	$	1,288,000		$	44,000		$	807,000		$	559,000		$	1,258,000	$	10,138,000
Charge offs	305,000		—		58,000		—		70,000			—			28,000			156,000			—		617,000
Recoveries	—		—		18,000		—		19,000			—			3,000			50,000			—		90,000
Provision (credit)	313,000		121,000		431,000		1,000		(238,000		)	(18,000		)	(98,000		)	76,000			412,000		1,000,000
Ending balance	$	3,996,000	$	517,000	$	2,171,000	$	19,000	$	999,000		$	26,000		$	684,000		$	529,000		$	1,670,000	$	10,611,000
For the three months ended June 30, 2017
Beginning balance	$	4,015,000	$	441,000	$	1,925,000	$	18,000	$	969,000		$	24,000		$	811,000		$	573,000		$	1,591,000	$	10,367,000
Charge offs	141,000		—		58,000		—		17,000			—			21,000			53,000			—		290,000
Recoveries	—		—		7,000		—		5,000			—			3,000			19,000			—		34,000
Provision (credit)	122,000		76,000		297,000		1,000		42,000			2,000			(109,000		)	(10,000		)	79,000		500,000
Ending balance	$	3,996,000	$	517,000	$	2,171,000	$	19,000	$	999,000		$	26,000		$	684,000		$	529,000		$	1,670,000	$	10,611,000
Allowance for loan losses as of June 30, 2017
Ending balance specifically evaluated for impairment	$	221,000	$	103,000	$	36,000	$	—	$	209,000		$	—		$	25,000		$	—		$	—	$	594,000
Ending balance collectively evaluated for impairment	$	3,775,000	$	414,000	$	2,135,000	$	19,000	$	790,000		$	26,000		$	659,000		$	529,000		$	1,670,000	$	10,017,000
Related loan balances as of June 30, 2017
Ending balance	$	306,490,000	$	33,605,000	$	173,691,000	$	28,695,000	$	427,171,000		$	15,056,000		$	110,328,000		$	25,629,000		$	—	$	1,120,665,000
Ending balance specifically evaluated for impairment	$	9,853,000	$	763,000	$	1,633,000	$	—	$	12,990,000		$	—		$	1,405,000		$	—		$	—	$	26,644,000
Ending balance collectively evaluated for impairment	$	296,637,000	$	32,842,000	$	172,058,000	$	28,695,000	$	414,181,000		$	15,056,000		$	108,923,000		$	25,629,000		$	—	$	1,094,021,000

The following table presents allowance for loan losses activity by class for the yearended December 31, 2016 and allowance for loan loss balances by class and related loan balances by class as of December 31, 2016:

								Municipal		Residential				Home Equity Line of Credit		Consumer		Unallocated			Total
	Real Estate		Construction			Other				Term		Construction
Beginning balance	$	3,120,000	$	580,000		$	1,452,000	$	17,000	$	1,391,000	$	24,000	$	893,000	$	566,000	$	1,873,000		$	9,916,000
Charge offs	294,000		75,000			376,000		—		379,000		—		147,000		450,000		—			1,721,000
Recoveries	—		8,000			129,000		—		93,000		—		5,000		108,000		—			343,000
Provision (credit)	1,162,000		(117,000		)	575,000		1,000		183,000		20,000		56,000		335,000		(615,000		)	1,600,000
Ending balance	$	3,988,000	$	396,000		$	1,780,000	$	18,000	$	1,288,000	$	44,000	$	807,000	$	559,000	$	1,258,000		$	10,138,000
Ending balance specifically evaluated for impairment	$	505,000	$	100,000		$	39,000	$	—	$	304,000	$	—	$	26,000	$	—	$	—		$	974,000
Ending balance collectively evaluated for impairment	$	3,483,000	$	296,000		$	1,741,000	$	18,000	$	984,000	$	44,000	$	781,000	$	559,000	$	1,258,000		$	9,164,000
Ending balance	$	302,506,000	$	25,406,000		$	150,769,000	$	27,056,000	$	411,469,000	$	18,303,000	$	110,907,000	$	25,110,000	$	—		$	1,071,526,000
Ending balance specifically evaluated for impairment	$	10,021,000	$	763,000		$	1,743,000	$	—	$	13,669,000	$	—	$	1,387,000	$	—	$	—		$	27,583,000
Ending balance collectively evaluated for impairment	$	292,485,000	$	24,643,000		$	149,026,000	$	27,056,000	$	397,800,000	$	18,303,000	$	109,520,000	$	25,110,000	$	—		$	1,043,943,000

The following table presents allowance for loan losses activity by class for the six months and quarter ended June 30, 2016, and allowance for loan loss balances by class and related loan balances by class as of June 30, 2016:

	Commercial							Municipal		Residential				Home Equity Line of Credit		Consumer		Unallocated			Total
	Real Estate		Construction			Other				Term		Construction
For the six months ended June 30, 2016
Beginning balance	$	3,120,000	$	580,000		$	1,452,000	$	17,000	$	1,391,000	$	24,000	$	893,000	$	566,000	$	1,873,000		$	9,916,000
Charge offs	33,000		58,000			30,000		—		266,000		—		122,000		157,000		—			666,000
Recoveries	—		—			56,000		—		74,000		—		2,000		66,000		—			198,000
Provision (credit)	868,000		(204,000		)	300,000		—		166,000		10,000		107,000		160,000		(657,000		)	750,000
Ending balance	$	3,955,000	$	318,000		$	1,778,000	$	17,000	$	1,365,000	$	34,000	$	880,000	$	635,000	$	1,216,000		$	10,198,000
For the three months ended June 30, 2016
Beginning balance	$	3,524,000	$	345,000		$	1,676,000	$	17,000	$	1,474,000	$	33,000	$	905,000	$	654,000	$	1,591,000		$	10,219,000
Charge offs	33,000		—			30,000		—		246,000		—		73,000		94,000		—			476,000
Recoveries	—		—			36,000		—		9,000		—		1,000		34,000		—			80,000
Provision (credit)	464,000		(27,000		)	96,000		—		128,000		1,000		47,000		41,000		(375,000		)	375,000
Ending balance	$	3,955,000	$	318,000		$	1,778,000	$	17,000	$	1,365,000	$	34,000	$	880,000	$	635,000	$	1,216,000		$	10,198,000
Allowance for loan losses as of June 30, 2016
Ending balance specifically evaluated for impairment	$	369,000	$	97,000		$	158,000	$	—	$	326,000	$	—	$	28,000	$	51,000	$	—		$	1,029,000
Ending balance collectively evaluated for impairment	$	3,586,000	$	221,000		$	1,620,000	$	17,000	$	1,039,000	$	34,000	$	852,000	$	584,000	$	1,216,000		$	9,169,000
Related loan balances as of June 30, 2016
Ending balance	$	303,312,000	$	18,439,000		$	136,651,000	$	25,531,000	$	403,461,000	$	13,403,000	$	112,536,000	$	24,880,000	$	—		$	1,038,213,000
Ending balance specifically evaluated for impairment	$	10,685,000	$	834,000		$	1,479,000	$	—	$	14,105,000	$	—	$	975,000	$	115,000	$	—		$	28,193,000
Ending balance collectively evaluated for impairment	$	292,627,000	$	17,605,000		$	135,172,000	$	25,531,000	$	389,356,000	$	13,403,000	$	111,561,000	$	24,765,000	$	—		$	1,010,020,000