XML 45 R32.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Composition of the Loan Portfolio

The following represents the composition of the loan portfolio for the period ending:

 

 

(Amounts in thousands)

 

 

December 31,

 

 

2017

 

 

2016

 

 

Balance

 

 

%

 

 

Balance

 

 

%

 

Commercial

$

113,341

 

 

 

23.3

 

 

$

96,281

 

 

 

22.9

 

Commercial real estate

 

283,135

 

 

 

58.1

 

 

 

238,692

 

 

 

56.9

 

Residential real estate

 

62,071

 

 

 

12.7

 

 

 

57,008

 

 

 

13.6

 

Consumer - home equity

 

26,018

 

 

 

5.3

 

 

 

25,061

 

 

 

6.0

 

Consumer - other

 

2,925

 

 

 

0.6

 

 

 

2,726

 

 

 

0.6

 

Total loans

$

487,490

 

 

 

 

 

 

$

419,768

 

 

 

 

 

 
Certain Qualitative Factors Considered in Measuring Risk Trends

These factors include, but are not limited to, the following:

 

Factor Considered:

  

Risk Trend:

Levels of and trends in charge-offs, classifications and non-accruals

  

Stable

Trends in volume and terms

  

Increasing

Changes in lending policies and procedures

  

Stable

Experience, depth and ability of management, including loan review function

  

Stable

Economic trends, including valuation of underlying collateral

  

Stable

Concentrations of credit

  

Decreasing

 
Factors Analyzed and Applied to Loans Internally Graded with Higher Credit Risk

 

The following factors are analyzed and applied to loans internally graded with higher risk credit in addition to the above factors for non-classified loans:

 

Factor Considered:

  

Risk Trend:

Levels and trends in classification

  

Stable

Declining trends in financial performance

  

Stable

Structure and lack of performance measures

  

Increasing

Migration between risk categories

 

Stable

 
Analysis of Changes in the Allowance for Loan Losses

The following is an analysis of changes in the allowance for loan losses for the periods ended:

 

 

(Amounts in thousands)

 

December 31, 2017

Commercial

 

 

Commercial real estate

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer - other

 

 

Total

 

Balance at beginning of period

$

1,394

 

 

$

3,072

 

 

$

163

 

 

$

150

 

 

$

89

 

 

$

4,868

 

Loan charge-offs

 

—

 

 

 

(654

)

 

 

(14

)

 

 

(26

)

 

 

(146

)

 

 

(840

)

Recoveries

 

388

 

 

 

—

 

 

 

5

 

 

 

10

 

 

 

47

 

 

 

450

 

Net loan recoveries (charge-offs)

 

388

 

 

 

(654

)

 

 

(9

)

 

 

(16

)

 

 

(99

)

 

 

(390

)

Provision charged to operations

 

(191

)

 

 

284

 

 

 

(37

)

 

 

(64

)

 

 

108

 

 

 

100

 

Balance at end of period

$

1,591

 

 

$

2,702

 

 

$

117

 

 

$

70

 

 

$

98

 

 

$

4,578

 

 

 

(Amounts in thousands)

 

December 31, 2016

Commercial

 

 

Commercial real estate

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer - other

 

 

Total

 

Balance at beginning of period

$

1,977

 

 

$

2,926

 

 

$

153

 

 

$

52

 

 

$

86

 

 

$

5,194

 

Loan charge-offs

 

—

 

 

 

(287

)

 

 

(35

)

 

 

(144

)

 

 

(148

)

 

 

(614

)

Recoveries

 

117

 

 

 

35

 

 

 

2

 

 

 

23

 

 

 

61

 

 

 

238

 

Net loan recoveries (charge-offs)

 

117

 

 

 

(252

)

 

 

(33

)

 

 

(121

)

 

 

(87

)

 

 

(376

)

Provision charged to operations

 

(700

)

 

 

398

 

 

 

43

 

 

 

219

 

 

 

90

 

 

 

50

 

Balance at end of period

$

1,394

 

 

$

3,072

 

 

$

163

 

 

$

150

 

 

$

89

 

 

$

4,868

 

 

 

(Amounts in thousands)

 

December 31, 2015

Commercial

 

 

Commercial real estate

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer - other

 

 

Total

 

Balance at beginning of period

$

2,064

 

 

$

2,754

 

 

$

229

 

 

$

60

 

 

$

95

 

 

$

5,202

 

Loan charge-offs

 

(470

)

 

 

(84

)

 

 

(45

)

 

 

—

 

 

 

(124

)

 

 

(723

)

Recoveries

 

134

 

 

 

10

 

 

 

37

 

 

 

17

 

 

 

62

 

 

 

260

 

Net loan recoveries (charge-offs)

 

(336

)

 

 

(74

)

 

 

(8

)

 

 

17

 

 

 

(62

)

 

 

(463

)

Provision charged to operations

 

249

 

 

 

246

 

 

 

(68

)

 

 

(25

)

 

 

53

 

 

 

455

 

Balance at end of period

$

1,977

 

 

$

2,926

 

 

$

153

 

 

$

52

 

 

$

86

 

 

$

5,194

 

 
Allowance for Loan Losses and the Recorded Investment in Loans

The following tables present a full breakdown by portfolio classification, the changes in the allowance for loan losses and the recorded investment in loans for the periods ended December 31, 2017 and 2016:

 

 

(Amounts in thousands)

 

December 31, 2017

Commercial

 

 

Commercial real estate

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer - other

 

 

Total

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending allowance balance attributable to loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

625

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

625

 

Collectively evaluated for impairment

 

966

 

 

 

2,702

 

 

 

117

 

 

 

70

 

 

 

98

 

 

 

3,953

 

Total ending allowance balance

$

1,591

 

 

$

2,702

 

 

$

117

 

 

$

70

 

 

$

98

 

 

$

4,578

 

Loan Portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

5,581

 

 

$

4,664

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

10,245

 

Collectively evaluated for impairment

 

107,760

 

 

 

278,471

 

 

 

62,071

 

 

 

26,018

 

 

 

2,925

 

 

 

477,245

 

Total ending loan balance

$

113,341

 

 

$

283,135

 

 

$

62,071

 

 

$

26,018

 

 

$

2,925

 

 

$

487,490

 

 

 

(Amounts in thousands)

 

December 31, 2016

Commercial

 

 

Commercial real estate

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer - other

 

 

Total

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending allowance balance attributable to loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

—

 

 

$

178

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

178

 

Collectively evaluated for impairment

 

1,394

 

 

 

2,894

 

 

 

163

 

 

 

150

 

 

 

89

 

 

 

4,690

 

Total ending allowance balance

$

1,394

 

 

$

3,072

 

 

$

163

 

 

$

150

 

 

$

89

 

 

$

4,868

 

Loan Portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

106

 

 

$

6,860

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

6,966

 

Collectively evaluated for impairment

 

96,175

 

 

 

231,832

 

 

 

57,008

 

 

 

25,061

 

 

 

2,726

 

 

 

412,802

 

Total ending loan balance

$

96,281

 

 

$

238,692

 

 

$

57,008

 

 

$

25,061

 

 

$

2,726

 

 

$

419,768

 

 
Summary of Credit Quality Indicators by Internally Assigned Grade

The following is a summary of credit quality indicators by internally assigned grade as of December 31, 2017 and 2016.

 

 

(Amounts in thousands)

 

 

Commercial

 

 

Commercial real estate

 

December 31, 2017

 

 

 

 

 

 

 

Pass

$

100,436

 

 

$

252,960

 

Special Mention

 

4,836

 

 

 

24,307

 

Substandard

 

8,069

 

 

 

5,868

 

Doubtful

 

—

 

 

 

—

 

Ending Balance

$

113,341

 

 

$

283,135

 

 

 

(Amounts in thousands)

 

 

Commercial

 

 

Commercial real estate

 

December 31, 2016

 

 

 

 

 

 

 

Pass

$

80,644

 

 

$

208,337

 

Special Mention

 

12,836

 

 

 

22,633

 

Substandard

 

2,801

 

 

 

7,722

 

Doubtful

 

—

 

 

 

—

 

Ending Balance

$

96,281

 

 

$

238,692

 

 
Summary of Consumer Credit Exposure

The following is a summary of consumer credit exposure as of December 31, 2017 and 2016.

 

 

(Amounts in thousands)

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer- other

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

Performing

$

61,824

 

 

$

25,889

 

 

$

2,925

 

Nonperforming

 

247

 

 

 

129

 

 

 

—

 

Total

$

62,071

 

 

$

26,018

 

 

$

2,925

 

 

 

(Amounts in thousands)

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer- other

 

December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

Performing

$

55,743

 

 

$

25,006

 

 

$

2,726

 

Nonperforming

 

1,265

 

 

 

55

 

 

 

—

 

Total

$

57,008

 

 

$

25,061

 

 

$

2,726

 

 
Summary of Classes of Loans on Non-Accrual Status

The following is a summary of classes of loans on non-accrual status as of:

 

 

(Amounts in thousands)

 

 

December 31,

 

 

2017

 

 

2016

 

Commercial

$

—

 

 

$

—

 

Commercial real estate

 

506

 

 

 

1,458

 

Residential real estate

 

247

 

 

 

1,265

 

Consumer:

 

 

 

 

 

 

 

Consumer - home equity

 

129

 

 

 

55

 

Consumer - other

 

—

 

 

 

—

 

Total

$

882

 

 

$

2,778

 

 
Information Related to Loans Modified in a TDR

There were no loans modified as TDRs during the years ended December 31, 2017 and 2016. The following presents, by class, information related to loans modified in a TDR during the periods ended December 31, 2015.

 

 

(Dollar amounts in thousands)

 

 

December 31, 2015

 

 

Number of contracts

 

 

Pre-modification recorded investment

 

 

Post-modification recorded investment

 

 

Increase in the allowance

 

Commercial real estate

 

2

 

 

$

3,154

 

 

$

3,154

 

 

$

—

 

Subsequently defaulted

 

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 
Aging Analysis of the Recorded Investment of Past Due Loans

The following is an aging analysis of the recorded investment of past due loans as of the periods ended December 31, 2017 and 2016:

 

 

(Amounts in thousands)

 

 

30-59 Days Past Due

 

 

60-89 Days Past Due

 

 

90 Days Or Greater

 

 

Total Past Due

 

 

Current

 

 

Total Loans

 

 

Recorded Investment > 90 Days and Accruing

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

113,341

 

 

$

113,341

 

 

$

—

 

Commercial real estate

 

173

 

 

 

12

 

 

 

390

 

 

 

575

 

 

 

282,560

 

 

 

283,135

 

 

 

—

 

Residential real estate

 

240

 

 

 

29

 

 

 

216

 

 

 

485

 

 

 

61,586

 

 

 

62,071

 

 

 

—

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer - home equity

 

—

 

 

 

82

 

 

 

28

 

 

 

110

 

 

 

25,908

 

 

 

26,018

 

 

 

—

 

Consumer - other

 

15

 

 

 

—

 

 

 

—

 

 

 

15

 

 

 

2,910

 

 

 

2,925

 

 

 

—

 

Total

$

428

 

 

$

123

 

 

$

634

 

 

$

1,185

 

 

$

486,305

 

 

$

487,490

 

 

$

—

 

 

 

(Amounts in thousands)

 

 

30-59 Days Past Due

 

 

60-89 Days Past Due

 

 

90 Days Or Greater

 

 

Total Past Due

 

 

Current

 

 

Total Loans

 

 

Recorded Investment > 90 Days and Accruing

 

December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

377

 

 

$

—

 

 

$

—

 

 

$

377

 

 

$

95,904

 

 

$

96,281

 

 

$

—

 

Commercial real estate

 

1,189

 

 

 

83

 

 

 

1,347

 

 

 

2,619

 

 

 

236,073

 

 

 

238,692

 

 

 

—

 

Residential real estate

 

58

 

 

 

9

 

 

 

1,184

 

 

 

1,251

 

 

 

55,757

 

 

 

57,008

 

 

 

—

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer - home equity

 

—

 

 

 

46

 

 

 

55

 

 

 

101

 

 

 

24,960

 

 

 

25,061

 

 

 

—

 

Consumer - other

 

13

 

 

 

—

 

 

 

—

 

 

 

13

 

 

 

2,713

 

 

 

2,726

 

 

 

—

 

Total

$

1,637

 

 

$

138

 

 

$

2,586

 

 

$

4,361

 

 

$

415,407

 

 

$

419,768

 

 

$

—

 

 
Recorded Investment, Unpaid Principal Balances, Average Recorded Investments and Interest Recognized on Impaired Loans, Excluding Homogenous Loans for Which Impaired Analyses are Not Necessarily Performed

The following table presents the recorded investment and unpaid principal balances for impaired loans, excluding homogenous loans for which impaired analyses are not necessarily performed, with the associated allowance amount, if applicable, at December 31, 2017 and 2016. Also presented are the average recorded investments in the impaired balances and interest income recognized after impairment for the years ended December 31, 2017, 2016 and 2015.

 

 

(Amounts in thousands)

 

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

65

 

 

$

65

 

 

$

—

 

Commercial real estate

 

4,664

 

 

 

4,742

 

 

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

5,516

 

 

 

5,516

 

 

 

625

 

Commercial real estate

 

—

 

 

 

—

 

 

 

—

 

Total:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

5,581

 

 

$

5,581

 

 

$

625

 

Commercial real estate

$

4,664

 

 

$

4,742

 

 

$

—

 

 

 

(Amounts in thousands)

 

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

 

December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

106

 

 

$

106

 

 

$

—

 

Commercial real estate

 

5,681

 

 

 

5,789

 

 

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

—

 

 

 

—

 

 

 

—

 

Commercial real estate

 

1,179

 

 

 

1,179

 

 

 

178

 

Total:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

106

 

 

$

106

 

 

$

—

 

Commercial real estate

$

6,860

 

 

$

6,968

 

 

$

178

 

 

 

(Amounts in thousands)

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

December 31, 2017

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

Commercial

$

85

 

 

$

6

 

Commercial real estate

 

5,062

 

 

 

291

 

With an allowance recorded:

 

 

 

 

 

 

 

Commercial

 

460

 

 

 

—

 

Commercial real estate

 

527

 

 

 

—

 

Total:

 

 

 

 

 

 

 

Commercial

$

545

 

 

$

6

 

Commercial real estate

$

5,589

 

 

$

291

 

 

 

(Amounts in thousands)

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

December 31, 2016

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

Commercial

$

146

 

 

$

8

 

Commercial real estate

 

6,072

 

 

 

335

 

With an allowance recorded:

 

 

 

 

 

 

 

Commercial

 

279

 

 

 

—

 

Commercial real estate

 

1,209

 

 

 

85

 

Total:

 

 

 

 

 

 

 

Commercial

$

425

 

 

$

8

 

Commercial real estate

$

7,281

 

 

$

420

 

 

 

(Amounts in thousands)

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

December 31, 2015

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

Commercial

$

322

 

 

$

13

 

Commercial real estate

 

4,842

 

 

 

181

 

With an allowance recorded:

 

 

 

 

 

 

 

Commercial

 

1,341

 

 

 

—

 

Commercial real estate

 

1,160

 

 

 

84

 

Total:

 

 

 

 

 

 

 

Commercial

$

1,663

 

 

$

13

 

Commercial real estate

$

6,002

 

 

$

265