Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2018

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, 2018, December 31, 2017, and June 30, 2017, by class of financing receivable and allowance element, is presented in the following tables:

As of June 30, 2018	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	$	270,000	$	1,067,000	$	2,395,000	$	—	$	3,732,000
Construction	—		123,000		276,000		—		399,000
Other	1,647,000		563,000		1,265,000		—		3,475,000
Municipal	—		—		21,000		—		21,000
Residential
Term	286,000		311,000		541,000		—		1,138,000
Construction	—		10,000		19,000		—		29,000
Home equity line of credit	2,000		287,000		389,000		—		678,000
Consumer	—		269,000		306,000		—		575,000
Unallocated	—		—		—		1,425,000		1,425,000
	$	2,205,000	$	2,630,000	$	5,212,000	$	1,425,000	$	11,472,000

As of December 31, 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	$	224,000	$	1,285,000	$	2,363,000	$	—	$	3,872,000
Construction	—		153,000		281,000		—		434,000
Other	1,309,000		723,000		1,326,000		—		3,358,000
Municipal	—		—		20,000		—		20,000
Residential
Term	255,000		311,000		564,000		—		1,130,000
Construction	—		13,000		23,000		—		36,000
Home equity line of credit	24,000		297,000		371,000		—		692,000
Consumer	—		251,000		294,000		—		545,000
Unallocated	—		—		—		642,000		642,000
	$	1,812,000	$	3,033,000	$	5,242,000	$	642,000	$	10,729,000

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

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, 2018:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	—	$	—	$	1,404,000	$	—	$	1,404,000
2 Above Average	12,404,000		39,000		5,500,000		44,997,000		62,940,000
3 Satisfactory	73,164,000		3,027,000		40,950,000		603,000		117,744,000
4 Average	195,119,000		18,081,000		81,255,000		3,117,000		297,572,000
5 Watch	50,088,000		18,875,000		38,705,000		—		107,668,000
6 OAEM	1,410,000		—		1,373,000		—		2,783,000
7 Substandard	17,806,000		286,000		15,531,000		—		33,623,000
8 Doubtful	123,000		—		—		—		123,000
Total	$	350,114,000	$	40,308,000	$	184,718,000	$	48,717,000	$	623,857,000

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, 2017:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	—	$	—	$	1,586,000	$	—	$	1,586,000
2 Above Average	12,534,000		40,000		5,776,000		32,673,000		51,023,000
3 Satisfactory	73,899,000		2,856,000		38,151,000		718,000		115,624,000
4 Average	173,956,000		22,446,000		84,360,000		—		280,762,000
5 Watch	41,652,000		12,714,000		33,934,000		—		88,300,000
6 OAEM	3,442,000		—		2,765,000		—		6,207,000
7 Substandard	18,203,000		—		14,956,000		—		33,159,000
8 Doubtful	123,000		—		—		—		123,000
Total	$	323,809,000	$	38,056,000	$	181,528,000	$	33,391,000	$	576,784,000

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, 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

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, 2018, and allowance for loan loss balances by class and related loan balances by class as of June 30, 2018:

	Commercial									Municipal		Residential						Home Equity Line of Credit			Consumer		Unallocated		Total
	Real Estate			Construction			Other					Term			Construction
For the six months ended June 30, 2018
Beginning balance	$	3,872,000		$	434,000		$	3,358,000		$	20,000	$	1,130,000		$	36,000		$	692,000		$	545,000	$	642,000	$	10,729,000
Charge offs	—			—			17,000			—		96,000			—			115,000			145,000		—		373,000
Recoveries	—			—			10,000			—		42,000			—			13,000			51,000		—		116,000
Provision (credit)	(140,000		)	(35,000		)	124,000			1,000		62,000			(7,000		)	88,000			124,000		783,000		1,000,000
Ending balance	$	3,732,000		$	399,000		$	3,475,000		$	21,000	$	1,138,000		$	29,000		$	678,000		$	575,000	$	1,425,000	$	11,472,000
For the three months ended June 30, 2018
Beginning balance	$	3,732,000		$	396,000		$	3,540,000		$	21,000	$	1,129,000		$	31,000		$	716,000		$	581,000	$	811,000	$	10,957,000
Charge offs	—			—			—			—		15,000			—			—			40,000		—		55,000
Recoveries	—			—			4,000			—		38,000			—			2,000			26,000		—		70,000
Provision (credit)	—			3,000			(69,000		)	—		(14,000		)	(2,000		)	(40,000		)	8,000		614,000		500,000
Ending balance	$	3,732,000		$	399,000		$	3,475,000		$	21,000	$	1,138,000		$	29,000		$	678,000		$	575,000	$	1,425,000	$	11,472,000
Allowance for loan losses as of June 30, 2018
Ending balance specifically evaluated for impairment	$	270,000		$	—		$	1,647,000		$	—	$	286,000		$	—		$	2,000		$	—	$	—	$	2,205,000
Ending balance collectively evaluated for impairment	$	3,462,000		$	399,000		$	1,828,000		$	21,000	$	852,000		$	29,000		$	676,000		$	575,000	$	1,425,000	$	9,267,000
Related loan balances as of June 30, 2018
Ending balance	$	350,114,000		$	40,308,000		$	184,718,000		$	48,717,000	$	453,588,000		$	14,583,000		$	107,666,000		$	24,746,000	$	—	$	1,224,440,000
Ending balance specifically evaluated for impairment	$	8,908,000		$	1,027,000		$	9,439,000		$	—	$	11,774,000		$	—		$	1,028,000		$	16,000	$	—	$	32,192,000
Ending balance collectively evaluated for impairment	$	341,206,000		$	39,281,000		$	175,279,000		$	48,717,000	$	441,814,000		$	14,583,000		$	106,638,000		$	24,730,000	$	—	$	1,192,248,000

The following table presents allowance for loan losses activity by class for the year ended December 31, 2017 and allowance for loan loss balances by class and related loan balances by class as of December 31, 2017:

	Commercial						Municipal		Residential					Home Equity Line of Credit			Consumer		Unallocated			Total
	Real Estate		Construction		Other				Term		Construction
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	587,000		—		212,000		—		456,000		—			28,000			335,000		—			1,618,000
Recoveries	—		—		49,000		—		40,000		—			11,000			109,000		—			209,000
Provision (credit)	471,000		38,000		1,741,000		2,000		258,000		(8,000		)	(98,000		)	212,000		(616,000		)	2,000,000
Ending balance	$	3,872,000	$	434,000	$	3,358,000	$	20,000	$	1,130,000	$	36,000		$	692,000		$	545,000	$	642,000		$	10,729,000
Ending balance specifically evaluated for impairment	$	224,000	$	—	$	1,309,000	$	—	$	255,000	$	—		$	24,000		$	—	$	—		$	1,812,000
Ending balance collectively evaluated for impairment	$	3,648,000	$	434,000	$	2,049,000	$	20,000	$	875,000	$	36,000		$	668,000		$	545,000	$	642,000		$	8,917,000
Ending balance	$	323,809,000	$	38,056,000	$	181,528,000	$	33,391,000	$	432,661,000	$	17,868,000		$	111,302,000		$	25,524,000	$	—		$	1,164,139,000
Ending balance specifically evaluated for impairment	$	7,790,000	$	741,000	$	9,918,000	$	—	$	11,748,000	$	—		$	1,179,000		$	16,000	$	—		$	31,392,000
Ending balance collectively evaluated for impairment	$	316,019,000	$	37,315,000	$	171,610,000	$	33,391,000	$	420,913,000	$	17,868,000		$	110,123,000		$	25,508,000	$	—		$	1,132,747,000

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