Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019, December 31, 2018, and September 30, 2018, by class of financing receivable and allowance element, is presented in the following tables:

As of September 30, 2019	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	$	258,000	$	792,000	$	2,745,000	$	—	$	3,795,000
Construction	—		79,000		274,000		—		353,000
Other	1,275,000		436,000		1,509,000		—		3,220,000
Municipal	—		—		26,000		—		26,000
Residential
Term	337,000		185,000		615,000		—		1,137,000
Construction	—		5,000		18,000		—		23,000
Home equity line of credit	184,000		155,000		485,000		—		824,000
Consumer	6,000		285,000		389,000		—		680,000
Unallocated	—		—		—		1,707,000		1,707,000
	$	2,060,000	$	1,937,000	$	6,061,000	$	1,707,000	$	11,765,000

As of December 31, 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	$	260,000	$	742,000	$	2,565,000	$	—	$	3,567,000
Construction	—		57,000		198,000		—		255,000
Other	1,696,000		414,000		1,431,000		—		3,541,000
Municipal	—		—		24,000		—		24,000
Residential
Term	335,000		326,000		574,000		—		1,235,000
Construction	—		12,000		22,000		—		34,000
Home equity line of credit	17,000		263,000		450,000		—		730,000
Consumer	—		271,000		359,000		—		630,000
Unallocated	—		—		—		1,216,000		1,216,000
	$	2,308,000	$	2,085,000	$	5,623,000	$	1,216,000	$	11,232,000

As of September 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	$	265,000	$	758,000	$	2,566,000	$	—	$	3,589,000
Construction	—		49,000		165,000		—		214,000
Other	1,890,000		388,000		1,313,000		—		3,591,000
Municipal	—		—		23,000		—		23,000
Residential
Term	238,000		313,000		541,000		—		1,092,000
Construction	—		13,000		23,000		—		36,000
Home equity line of credit	7,000		280,000		432,000		—		719,000
Consumer	2,000		397,000		341,000		—		740,000
Unallocated	—		—		—		1,678,000		1,678,000
	$	2,402,000	$	2,198,000	$	5,404,000	$	1,678,000	$	11,682,000

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, 2019:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	—	$	—	$	3,835,000	$	35,000	$	3,870,000
2 Above Average	12,595,000		34,000		5,836,000		33,768,000		52,233,000
3 Satisfactory	84,567,000		2,154,000		45,742,000		386,000		132,849,000
4 Average	186,605,000		20,931,000		85,485,000		2,333,000		295,354,000
5 Watch	67,674,000		13,867,000		48,498,000		—		130,039,000
6 OAEM	504,000		—		2,070,000		—		2,574,000
7 Substandard	16,220,000		256,000		10,393,000		—		26,869,000
8 Doubtful	—		—		—		—		—
Total	$	368,165,000	$	37,242,000	$	201,859,000	$	36,522,000	$	643,788,000

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, 2018:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	—	$	—	$	3,444,000	$	—	$	3,444,000
2 Above Average	10,484,000		37,000		4,564,000		48,800,000		63,885,000
3 Satisfactory	80,266,000		2,231,000		46,090,000		518,000		129,105,000
4 Average	172,597,000		18,780,000		82,081,000		1,810,000		275,268,000
5 Watch	66,325,000		5,970,000		45,546,000		—		117,841,000
6 OAEM	6,890,000		—		1,805,000		—		8,695,000
7 Substandard	16,558,000		286,000		12,861,000		—		29,705,000
8 Doubtful	123,000		—		—		—		123,000
Total	$	353,243,000	$	27,304,000	$	196,391,000	$	51,128,000	$	628,066,000

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, 2018:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	—	$	—	$	2,558,000	$	—	$	2,558,000
2 Above Average	10,710,000		38,000		4,845,000		55,553,000		71,146,000
3 Satisfactory	78,794,000		1,810,000		44,888,000		552,000		126,044,000
4 Average	196,883,000		16,331,000		80,171,000		599,000		293,984,000
5 Watch	62,036,000		5,424,000		39,176,000		—		106,636,000
6 OAEM	1,387,000		—		1,368,000		—		2,755,000
7 Substandard	16,457,000		286,000		15,122,000		—		31,865,000
8 Doubtful	123,000		—		—		—		123,000
Total	$	366,390,000	$	23,889,000	$	188,128,000	$	56,704,000	$	635,111,000

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, 2019, and allowance for loan loss balances by class and related loan balances by class as of September 30, 2019:

	Commercial							Municipal		Residential						Home Equity Line of Credit		Consumer		Unallocated			Total
	Real Estate		Construction		Other					Term			Construction
For the nine months ended September 30, 2019
Beginning balance	$	3,567,000	$	255,000	$	3,541,000		$	24,000	$	1,235,000		$	34,000		$	730,000	$	630,000	$	1,216,000		$	11,232,000
Charge offs	53,000		—		123,000			—		93,000			—			38,000		235,000		—			542,000
Recoveries	15,000		—		70,000			—		10,000			—			3,000		102,000		—			200,000
Provision (credit)	266,000		98,000		(268,000		)	2,000		(15,000		)	(11,000		)	129,000		183,000		491,000			875,000
Ending balance	$	3,795,000	$	353,000	$	3,220,000		$	26,000	$	1,137,000		$	23,000		$	824,000	$	680,000	$	1,707,000		$	11,765,000
For the three months ended September 30, 2019
Beginning balance	$	3,609,000	$	309,000	$	3,281,000		$	25,000	$	1,106,000		$	23,000		$	633,000	$	649,000	$	1,836,000		$	11,471,000
Charge offs	—		—		14,000			—		—			—			—		48,000		—			62,000
Recoveries	2,000		—		68,000			—		4,000			—			1,000		31,000		—			106,000
Provision (credit)	184,000		44,000		(115,000		)	1,000		27,000			—			190,000		48,000		(129,000		)	250,000
Ending balance	$	3,795,000	$	353,000	$	3,220,000		$	26,000	$	1,137,000		$	23,000		$	824,000	$	680,000	$	1,707,000		$	11,765,000
Allowance for loan losses as of September 30, 2019
Ending balance specifically evaluated for impairment	$	258,000	$	—	$	1,275,000		$	—	$	337,000		$	—		$	184,000	$	6,000	$	—		$	2,060,000
Ending balance collectively evaluated for impairment	$	3,537,000	$	353,000	$	1,945,000		$	26,000	$	800,000		$	23,000		$	640,000	$	674,000	$	1,707,000		$	9,705,000
Related loan balances as of September 30, 2019
Ending balance	$	368,165,000	$	37,242,000	$	201,859,000		$	36,522,000	$	485,490,000		$	14,118,000		$	94,144,000	$	25,919,000	$	—		$	1,263,459,000
Ending balance specifically evaluated for impairment	$	9,049,000	$	978,000	$	7,332,000		$	—	$	13,446,000		$	—		$	1,398,000	$	6,000	$	—		$	32,209,000
Ending balance collectively evaluated for impairment	$	359,116,000	$	36,264,000	$	194,527,000		$	36,522,000	$	472,044,000		$	14,118,000		$	92,746,000	$	25,913,000	$	—		$	1,231,250,000

The following table presents allowance for loan losses activity by class for the year ended December 31, 2018 and allowance for loan loss balances by class and related loan balances by class as of December 31, 2018:

	Commercial								Municipal		Residential					Home Equity Line of Credit		Consumer		Unallocated		Total
	Real Estate			Construction			Other				Term		Construction
For the year ended December 31, 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	168,000			—			423,000		—		213,000		—			121,000		348,000		—		1,273,000
Recoveries	52,000			—			40,000		—		64,000		—			24,000		96,000		—		276,000
Provision (credit)	(189,000		)	(179,000		)	566,000		4,000		254,000		(2,000		)	135,000		337,000		574,000		1,500,000
Ending balance	$	3,567,000		$	255,000		$	3,541,000	$	24,000	$	1,235,000	$	34,000		$	730,000	$	630,000	$	1,216,000	$	11,232,000
Allowance for loan losses as of December 31, 2018
Ending balance specifically evaluated for impairment	$	260,000		$	—		$	1,696,000	$	—	$	335,000	$	—		$	17,000	$	—	$	—	$	2,308,000
Ending balance collectively evaluated for impairment	$	3,307,000		$	255,000		$	1,845,000	$	24,000	$	900,000	$	34,000		$	713,000	$	630,000	$	1,216,000	$	8,924,000
Related loan balances as of December 31, 2018
Ending balance	$	353,243,000		$	27,304,000		$	196,391,000	$	51,128,000	$	469,145,000	$	17,743,000		$	98,469,000	$	24,860,000	$	—	$	1,238,283,000
Ending balance specifically evaluated for impairment	$	9,760,000		$	721,000		$	9,259,000	$	—	$	10,904,000	$	—		$	1,092,000	$	15,000	$	—	$	31,751,000
Ending balance collectively evaluated for impairment	$	343,483,000		$	26,583,000		$	187,132,000	$	51,128,000	$	458,241,000	$	17,743,000		$	97,377,000	$	24,845,000	$	—	$	1,206,532,000

The following table presents allowance for loan losses activity by class for the nine months and quarter ended September 30, 2018, and allowance for loan loss balances by class and related loan balances by class as of September 30, 2018:

	Commercial								Municipal		Residential				Home Equity Line of Credit		Consumer		Unallocated		Total
	Real Estate			Construction			Other				Term		Construction
For the nine months ended September 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	—			—			68,000		—		212,000		—		121,000		195,000		—		596,000
Recoveries	52,000			—			33,000		—		45,000		—		13,000		73,000		—		216,000
Provision (credit)	(335,000		)	(220,000		)	268,000		3,000		129,000		—		135,000		317,000		1,036,000		1,333,000
Ending balance	$	3,589,000		$	214,000		$	3,591,000	$	23,000	$	1,092,000	$	36,000	$	719,000	$	740,000	$	1,678,000	$	11,682,000
For the three months ended September 30, 2018
Beginning 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
Charge offs	—			—			51,000		—		116,000		—		6,000		50,000		—		223,000
Recoveries	52,000			—			23,000		—		3,000		—		—		22,000		—		100,000
Provision (credit)	(195,000		)	(185,000		)	144,000		2,000		67,000		7,000		47,000		193,000		253,000		333,000
Ending balance	$	3,589,000		$	214,000		$	3,591,000	$	23,000	$	1,092,000	$	36,000	$	719,000	$	740,000	$	1,678,000	$	11,682,000
Allowance for loan losses as of September 30, 2018
Ending balance specifically evaluated for impairment	$	265,000		$	—		$	1,890,000	$	—	$	238,000	$	—	$	7,000	$	2,000	$	—	$	2,402,000
Ending balance collectively evaluated for impairment	$	3,324,000		$	214,000		$	1,701,000	$	23,000	$	854,000	$	36,000	$	712,000	$	738,000	$	1,678,000	$	9,280,000
Related loan balances as of September 30, 2018
Ending balance	$	366,390,000		$	23,889,000		$	188,128,000	$	56,704,000	$	459,449,000	$	18,166,000	$	105,213,000	$	25,619,000	$	—	$	1,243,558,000
Ending balance specifically evaluated for impairment	$	9,410,000		$	741,000		$	9,849,000	$	—	$	10,928,000	$	—	$	1,168,000	$	2,000	$	—	$	32,098,000
Ending balance collectively evaluated for impairment	$	356,980,000		$	23,148,000		$	178,279,000	$	56,704,000	$	448,521,000	$	18,166,000	$	104,045,000	$	25,617,000	$	—	$	1,211,460,000