XML 37 R26.htm IDEA: XBRL DOCUMENT

Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2019

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

	(Amounts in thousands)
	March 31, 2019				December 31, 2018
	Balance		%		Balance		%
Commercial	$	71,462		14.8	$	112,440		21.9
Commercial real estate		313,229		65.0		303,804		59.0
Residential real estate		69,650		14.4		69,845		13.6
Consumer - home equity		24,761		5.1		25,076		4.9
Consumer - other		3,211		0.7		3,227		0.6
Total loans	$	482,313			$	514,392

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		Stable
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 credit risk 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		Stable
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)
March 31, 2019	Commercial		Commercial real estate			Residential real estate			Consumer - home equity			Consumer - other			Total
Balance at beginning of period	$	1,232	$	2,414		$	314		$	115		$	123		$	4,198
Loan charge-offs		—		—			(29	)		—			(58	)		(87	)
Recoveries		28		—			—			—			26			54
Net loan recoveries (charge-offs)		28		—			(29	)		—			(32	)		(33	)
Provision charged to operations		318		(213	)		35			(1	)		36			175
Balance at end of period	$	1,578	$	2,201		$	320		$	114		$	127		$	4,340

	(Amounts in thousands)
March 31, 2018	Commercial			Commercial real estate			Residential real estate			Consumer - home equity			Consumer - other			Total
Balance at beginning of period	$	1,591		$	2,702		$	117		$	70		$	98		$	4,578
Loan charge-offs		(1,163	)		—			—			—			(50	)		(1,213	)
Recoveries		—			—			—			3			16			19
Net loan recoveries (charge-offs)		(1,163	)		—			—			3			(34	)		(1,194	)
Provision charged to operations		906			(412	)		(24	)		(6	)		36			500
Balance at end of period	$	1,334		$	2,290		$	93		$	67		$	100		$	3,884

Allowance for Loan Losses and the Recorded Investment in Loans

The following tables present a full breakdown by portfolio classification of the allowance for loan losses and the recorded investment in loans at March 31, 2019 and December 31, 2018:

	(Amounts in thousands)
March 31, 2019	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	$	579	$	—	$	—	$	—	$	—	$	579
Collectively evaluated for impairment		999		2,201		320		114		127		3,761
Total ending allowance balance	$	1,578	$	2,201	$	320	$	114	$	127	$	4,340
Loan Portfolio:
Individually evaluated for impairment	$	5,225	$	3,220	$	—	$	—	$	—	$	8,445
Collectively evaluated for impairment		66,237		310,009		69,650		24,761		3,211		473,868
Total ending loans balance	$	71,462	$	313,229	$	69,650	$	24,761	$	3,211	$	482,313

	(Amounts in thousands)
December 31, 2018	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	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		1,232		2,414		314		115		123		4,198
Total ending allowance balance	$	1,232	$	2,414	$	314	$	115	$	123	$	4,198
Loan Portfolio:
Individually evaluated for impairment	$	5,364	$	4,340	$	—	$	—	$	—	$	9,704
Collectively evaluated for impairment		107,076		299,464		69,845		25,076		3,227		504,688
Total ending loans balance	$	112,440	$	303,804	$	69,845	$	25,076	$	3,227	$	514,392

Summary of Credit Quality Indicators by Internally Assigned Grades

The following table is a summary of credit quality indicators by internally assigned grades as of March 31, 2019 and December 31, 2018:

	(Amounts in thousands)
	Commercial		Commercial real estate
March 31, 2019
Pass	$	53,379	$	283,801
Special Mention		7,445		25,211
Substandard		10,638		4,217
Doubtful		—		—
Ending Balance	$	71,462	$	313,229

	(Amounts in thousands)
	Commercial		Commercial real estate
December 31, 2018
Pass	$	94,316	$	271,370
Special Mention		6,914		25,199
Substandard		11,210		7,235
Doubtful		—		—
Ending Balance	$	112,440	$	303,804

Summary of Consumer Credit Exposure

The following table is a summary of consumer credit exposure as of March 31, 2019 and December 31, 2018:

	(Amounts in thousands)
	Residential real estate		Consumer - home equity		Consumer - other
March 31, 2019
Performing	$	69,442	$	24,634	$	3,211
Nonperforming		208		127		—
Total	$	69,650	$	24,761	$	3,211

	(Amounts in thousands)
	Residential real estate		Consumer - home equity		Consumer - other
December 31, 2018
Performing	$	69,535	$	24,956	$	3,227
Nonperforming		310		120		—
Total	$	69,845	$	25,076	$	3,227

Summary of Classes of Loans on Non-Accrual Status

The following table is a summary of classes of loans on non-accrual status as of March 31, 2019 and December 31, 2018:

	(Amounts in thousands)
	March 31, 2019		December 31, 2018
Commercial	$	1,222	$	1,291
Commercial real estate		501		512
Residential real estate		208		310
Consumer:
Consumer - home equity		127		120
Consumer - other		—		—
Total	$	2,058	$	2,233

The following presents, by class, information related to loans modified in a TDR during the period ending March 31, 2018.

	(Dollar amounts in thousands)
	Three Months Ended
	March 31, 2018
	Number of contracts		Pre-modification recorded investment		Post-modification recorded investment		Increase in the allowance
Commercial		7	$	5,373	$	4,210	$	—
Commercial real estate		—		—		—		—
Total restructured loans		7	$	5,373	$	4,210	$	—
Subsequently defaulted		—		—

Aging Analysis of the Recorded Investment of Past Due Loans

The following table is an aging analysis of the recorded investment of past due loans as of March 31, 2019 and December 31, 2018:

	(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
March 31, 2019
Commercial	$	—	$	485	$	223	$	708	$	70,754	$	71,462	$	—
Commercial real estate		—		158		164		322		312,907		313,229		—
Residential real estate		477		—		192		669		68,981		69,650		—
Consumer:
Consumer - home equity		—		—		127		127		24,634		24,761		—
Consumer - other		11		—		—		11		3,200		3,211		—
Total	$	488	$	643	$	706	$	1,837	$	480,476	$	482,313	$	—

	(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, 2018
Commercial	$	14	$	—	$	1,291	$	1,305	$	111,135	$	112,440	$	—
Commercial real estate		—		—		167		167		303,637		303,804		—
Residential real estate		36		182		257		475		69,370		69,845		—
Consumer:
Consumer - home equity		—		141		25		166		24,910		25,076		—
Consumer - other		17		—		—		17		3,210		3,227		—
Total	$	67	$	323	$	1,740	$	2,130	$	512,262	$	514,392	$	—

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 March 31, 2019 and December 31, 2018. Also presented are the average recorded investments in the impaired balances and interest income recognized after impairment for the three months ended March 31, 2019 and 2018.

	(Amounts in thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance
March 31, 2019
With no related allowance recorded:
Commercial	$	4,226	$	5,239	$	—
Commercial real estate		3,220		3,220		—
With an allowance recorded:
Commercial		999		999		579
Commercial real estate		—		—		—
Total:
Commercial	$	5,225	$	6,238	$	579
Commercial real estate	$	3,220	$	3,220	$	—

	(Amounts in thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance
December 31, 2018
With no related allowance recorded:
Commercial	$	5,364	$	6,411	$	—
Commercial real estate		4,340		4,340		—
With an allowance recorded:
Commercial		—		—		—
Commercial real estate		—		—		—
Total:
Commercial	$	5,364	$	6,411	$	—
Commercial real estate	$	4,340	$	4,340	$	—

	(Amounts in thousands)
	Three Months Ended
	Average Recorded Investment		Interest Income Recognized
March 31, 2019
With no related allowance recorded:
Commercial	$	4,952	$	148
Commercial real estate		3,203		63
With an allowance recorded:
Commercial		333		—
Commercial real estate		—		—
Total:
Commercial	$	5,285	$	148
Commercial real estate	$	3,203	$	63

	(Amounts in thousands)
	Three Months Ended
	Average Recorded Investment		Interest Income Recognized
March 31, 2018
With no related allowance recorded:
Commercial	$	1,467	$	3
Commercial real estate		4,540		108
With an allowance recorded:
Commercial		3,643		46
Commercial real estate		—		—
Total:
Commercial	$	5,110	$	49
Commercial real estate	$	4,540	$	108