Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 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 September 30, 2017, December 31, 2016, and September 30, 2016, by class of financing receivable and allowance element, is presented in the following tables:

As of September 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	$	347,000	$	1,315,000	$	2,342,000	$	—	$	4,004,000
Construction	108,000		142,000		253,000		—		503,000
Other	1,130,000		752,000		1,341,000		—		3,223,000
Municipal	—		—		20,000		—		20,000
Residential
Term	307,000		300,000		550,000		—		1,157,000
Construction	—		11,000		20,000		—		31,000
Home equity line of credit	24,000		297,000		366,000		—		687,000
Consumer	—		247,000		288,000		—		535,000
Unallocated	—		—		—		852,000		852,000
	$	1,916,000	$	3,064,000	$	5,180,000	$	852,000	$	11,012,000

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 September 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	$	381,000	$	1,303,000	$	2,355,000	$	—	$	4,039,000
Construction	99,000		81,000		147,000		—		327,000
Other	68,000		577,000		1,043,000		—		1,688,000
Municipal	—		—		18,000		—		18,000
Residential
Term	318,000		571,000		470,000		—		1,359,000
Construction	—		20,000		17,000		—		37,000
Home equity line of credit	32,000		457,000		385,000		—		874,000
Consumer	51,000		318,000		249,000		—		618,000
Unallocated	—		—		—		1,338,000		1,338,000
	$	949,000	$	3,327,000	$	4,684,000	$	1,338,000	$	10,298,000

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 September 30, 2017:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	—	$	—	$	868,000	$	—	$	868,000
2 Above Average	13,051,000		43,000		7,501,000		32,560,000		53,155,000
3 Satisfactory	76,533,000		3,763,000		49,886,000		751,000		130,933,000
4 Average	146,424,000		18,685,000		79,410,000		—		244,519,000
5 Watch	44,773,000		10,402,000		18,190,000		—		73,365,000
6 OAEM	2,738,000		—		4,625,000		—		7,363,000
7 Substandard	17,585,000		—		12,506,000		—		30,091,000
8 Doubtful	123,000		—		—		—		123,000
Total	$	301,227,000	$	32,893,000	$	172,986,000	$	33,311,000	$	540,417,000

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 September 30, 2016:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	2,000	$	—	$	721,000	$	—	$	723,000
2 Above Average	24,225,000		53,000		9,546,000		24,592,000		58,416,000
3 Satisfactory	72,082,000		824,000		24,032,000		1,561,000		98,499,000
4 Average	133,835,000		12,764,000		67,811,000		—		214,410,000
5 Watch	41,120,000		5,187,000		24,189,000		—		70,496,000
6 OAEM	9,360,000		—		1,957,000		—		11,317,000
7 Substandard	17,184,000		—		2,942,000		—		20,126,000
8 Doubtful	—		—		—		—		—
Total	$	297,808,000	$	18,828,000	$	131,198,000	$	26,153,000	$	473,987,000

Allowance for Loan Losses Transactions

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

	Commercial							Municipal		Residential					Home Equity Line of Credit			Consumer		Unallocated			Total
	Real Estate		Construction			Other				Term		Construction
For the nine months ended September 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		—		351,000		—			28,000			276,000		—			1,018,000
Recoveries	—		—			25,000		—		29,000		—			4,000			84,000		—			142,000
Provision (credit)	321,000		107,000			1,476,000		2,000		191,000		(13,000		)	(96,000		)	168,000		(406,000		)	1,750,000
Ending balance	$	4,004,000	$	503,000		$	3,223,000	$	20,000	$	1,157,000	$	31,000		$	687,000		$	535,000	$	852,000		$	11,012,000
For the three months ended September 30, 2017
Beginning 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
Charge offs	—		—			—		—		281,000		—			—			120,000		—			401,000
Recoveries	—		—			7,000		—		10,000		—			1,000			34,000		—			52,000
Provision (credit)	8,000		(14,000		)	1,045,000		1,000		429,000		5,000			2,000			92,000		(818,000		)	750,000
Ending balance	$	4,004,000	$	503,000		$	3,223,000	$	20,000	$	1,157,000	$	31,000		$	687,000		$	535,000	$	852,000		$	11,012,000
Allowance for loan losses as of September 30, 2017
Ending balance specifically evaluated for impairment	$	347,000	$	108,000		$	1,130,000	$	—	$	307,000	$	—		$	24,000		$	—	$	—		$	1,916,000
Ending balance collectively evaluated for impairment	$	3,657,000	$	395,000		$	2,093,000	$	20,000	$	850,000	$	31,000		$	663,000		$	535,000	$	852,000		$	9,096,000
Related loan balances as of September 30, 2017
Ending balance	$	301,227,000	$	32,893,000		$	172,986,000	$	33,311,000	$	429,572,000	$	15,495,000		$	110,178,000		$	25,424,000	$	—		$	1,121,086,000
Ending balance specifically evaluated for impairment	$	9,836,000	$	763,000		$	10,250,000	$	—	$	12,641,000	$	—		$	1,519,000		$	51,000	$	—		$	35,060,000
Ending balance collectively evaluated for impairment	$	291,391,000	$	32,130,000		$	162,736,000	$	33,311,000	$	416,931,000	$	15,495,000		$	108,659,000		$	25,373,000	$	—		$	1,086,026,000

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 nine months and quarter ended September 30, 2016, and allowance for loan loss balances by class and related loan balances by class as of September 30, 2016:

	Commercial							Municipal		Residential				Home Equity Line of Credit		Consumer		Unallocated			Total
	Real Estate		Construction			Other				Term		Construction
For the nine months ended September 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		75,000			167,000		—		338,000		—		147,000		246,000		—			1,006,000
Recoveries	—		4,000			80,000		—		88,000		—		3,000		88,000		—			263,000
Provision (credit)	952,000		(182,000		)	323,000		1,000		218,000		13,000		125,000		210,000		(535,000		)	1,125,000
Ending balance	$	4,039,000	$	327,000		$	1,688,000	$	18,000	$	1,359,000	$	37,000	$	874,000	$	618,000	$	1,338,000		$	10,298,000
For the three months ended September 30, 2016
Beginning 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
Charge offs	—		17,000			137,000		—		72,000		—		25,000		89,000		—			340,000
Recoveries	—		4,000			24,000		—		14,000		—		1,000		22,000		—			65,000
Provision	84,000		22,000			23,000		1,000		52,000		3,000		18,000		50,000		122,000			375,000
Ending balance	$	4,039,000	$	327,000		$	1,688,000	$	18,000	$	1,359,000	$	37,000	$	874,000	$	618,000	$	1,338,000		$	10,298,000
Allowance for loan losses as of September 30, 2016
Ending balance specifically evaluated for impairment	$	381,000	$	99,000		$	68,000	$	—	$	318,000	$	—	$	32,000	$	51,000	$	—		$	949,000
Ending balance collectively evaluated for impairment	$	3,658,000	$	228,000		$	1,620,000	$	18,000	$	1,041,000	$	37,000	$	842,000	$	567,000	$	1,338,000		$	9,349,000
Related loan balances as of September 30, 2016
Ending balance	$	297,808,000	$	18,828,000		$	131,198,000	$	26,153,000	$	403,159,000	$	14,269,000	$	111,994,000	$	25,583,000	$	—		$	1,028,992,000
Ending balance specifically evaluated for impairment	$	10,442,000	$	788,000		$	1,254,000	$	—	$	14,131,000	$	—	$	1,400,000	$	170,000	$	—		$	28,185,000
Ending balance collectively evaluated for impairment	$	287,366,000	$	18,040,000		$	129,944,000	$	26,153,000	$	389,028,000	$	14,269,000	$	110,594,000	$	25,413,000	$	—		$	1,000,807,000