XML 16 R26.htm IDEA: XBRL DOCUMENT v3.20.1
Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Composition of the Loan Portfolio

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

 

 

(Amounts in thousands)

 

 

March 31, 2020

 

 

December 31, 2019

 

 

Balance

 

 

%

 

 

Balance

 

 

%

 

Commercial

$

71,969

 

 

 

14.9

 

 

$

99,864

 

 

 

19.3

 

Commercial real estate

 

299,098

 

 

 

62.0

 

 

 

302,084

 

 

 

58.2

 

Residential real estate

 

82,870

 

 

 

17.2

 

 

 

87,172

 

 

 

16.8

 

Consumer - home equity

 

24,779

 

 

 

5.2

 

 

 

25,856

 

 

 

5.0

 

Consumer - other

 

3,523

 

 

 

0.7

 

 

 

3,740

 

 

 

0.7

 

Total loans

$

482,239

 

 

 

 

 

 

$

518,716

 

 

 

 

 

 
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

 

Increasing

Concentrations of credit

Effect of COVID-19 pandemic

 

Increasing

Increasing
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

 

Increasing

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, 2020

Commercial

 

 

Commercial

real estate

 

 

Residential

real estate

 

 

Consumer -

home equity

 

 

Consumer -

other

 

 

Total

 

Balance at beginning of period

$

1,756

 

 

$

2,130

 

 

$

334

 

 

$

104

 

 

$

141

 

 

$

4,465

 

Loan charge-offs

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(36

)

 

 

(37

)

Recoveries

 

19

 

 

 

—

 

 

 

25

 

 

 

—

 

 

 

15

 

 

 

59

 

Net loan recoveries (charge-offs)

 

18

 

 

 

—

 

 

 

25

 

 

 

—

 

 

 

(21

)

 

 

22

 

Provision charged to operations

 

77

 

 

 

464

 

 

 

42

 

 

 

(1

)

 

 

18

 

 

 

600

 

Balance at end of period

$

1,851

 

 

$

2,594

 

 

$

401

 

 

$

103

 

 

$

138

 

 

$

5,087

 

 

 

(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

 

 
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, 2020 and December 31, 2019:

 

 

(Amounts in thousands)

 

March 31, 2020

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

 

1,272

 

 

 

2,594

 

 

 

401

 

 

 

103

 

 

 

138

 

 

 

4,508

 

Total ending allowance balance

$

1,851

 

 

$

2,594

 

 

$

401

 

 

$

103

 

 

$

138

 

 

$

5,087

 

Loan Portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

4,680

 

 

$

2,896

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

7,576

 

Collectively evaluated for impairment

 

67,289

 

 

 

296,202

 

 

 

82,870

 

 

 

24,779

 

 

 

3,523

 

 

 

474,663

 

Total ending loans balance

$

71,969

 

 

$

299,098

 

 

$

82,870

 

 

$

24,779

 

 

$

3,523

 

 

$

482,239

 

 

 

(Amounts in thousands)

 

December 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

 

1,177

 

 

 

2,130

 

 

 

334

 

 

 

104

 

 

 

141

 

 

 

3,886

 

Total ending allowance balance

$

1,756

 

 

$

2,130

 

 

$

334

 

 

$

104

 

 

$

141

 

 

$

4,465

 

Loan Portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

4,909

 

 

$

2,940

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

7,849

 

Collectively evaluated for impairment

 

94,955

 

 

 

299,144

 

 

 

87,172

 

 

 

25,856

 

 

 

3,740

 

 

 

510,867

 

Total ending loans balance

$

99,864

 

 

$

302,084

 

 

$

87,172

 

 

$

25,856

 

 

$

3,740

 

 

$

518,716

 

 
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, 2020 and December 31, 2019:

 

 

(Amounts in thousands)

 

 

Commercial

 

 

Commercial real estate

 

March 31, 2020

 

 

 

 

 

 

 

Pass

$

55,642

 

 

$

274,672

 

Special Mention

 

6,168

 

 

 

20,186

 

Substandard

 

10,159

 

 

 

4,240

 

Ending Balance

$

71,969

 

 

$

299,098

 

 

 

(Amounts in thousands)

 

 

Commercial

 

 

Commercial real estate

 

December 31, 2019

 

 

 

 

 

 

 

Pass

$

83,114

 

 

$

275,763

 

Special Mention

 

6,273

 

 

 

21,995

 

Substandard

 

10,477

 

 

 

4,326

 

Ending Balance

$

99,864

 

 

$

302,084

 

 
Summary of Consumer Credit Exposure

The following table is a summary of consumer credit exposure as of March 31, 2020 and December 31, 2019:

 

 

(Amounts in thousands)

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer - other

 

March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

Performing

$

82,443

 

 

$

24,634

 

 

$

3,521

 

Nonperforming

 

427

 

 

 

145

 

 

 

2

 

Total

$

82,870

 

 

$

24,779

 

 

$

3,523

 

 

 

(Amounts in thousands)

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer - other

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

Performing

$

86,703

 

 

$

25,709

 

 

$

3,740

 

Nonperforming

 

469

 

 

 

147

 

 

 

—

 

Total

$

87,172

 

 

$

25,856

 

 

$

3,740

 

 
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, 2020 and December 31, 2019:

 

 

(Amounts in thousands)

 

 

March 31,

2020

 

 

December 31,

2019

 

Commercial

$

981

 

 

$

1,152

 

Commercial real estate

 

555

 

 

 

566

 

Residential real estate

 

427

 

 

 

469

 

Consumer:

 

 

 

 

 

 

 

Consumer - home equity

 

145

 

 

 

147

 

Consumer - other

 

2

 

 

 

—

 

Total

$

2,110

 

 

$

2,334

 

 
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, 2020 and December 31, 2019:

 

 

(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, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

—

 

 

$

—

 

 

$

981

 

 

$

981

 

 

$

70,988

 

 

$

71,969

 

 

$

—

 

Commercial real estate

 

1,008

 

 

 

—

 

 

 

250

 

 

 

1,258

 

 

 

297,840

 

 

 

299,098

 

 

 

—

 

Residential real estate

 

82

 

 

 

7

 

 

 

384

 

 

 

473

 

 

 

82,397

 

 

 

82,870

 

 

 

—

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer - home equity

 

23

 

 

 

—

 

 

 

122

 

 

 

145

 

 

 

24,634

 

 

 

24,779

 

 

 

—

 

Consumer - other

 

12

 

 

 

—

 

 

 

—

 

 

 

12

 

 

 

3,511

 

 

 

3,523

 

 

 

—

 

Total

$

1,125

 

 

$

7

 

 

$

1,737

 

 

$

2,869

 

 

$

479,370

 

 

$

482,239

 

 

$

—

 

 

 

(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, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

1

 

 

$

—

 

 

$

1,152

 

 

$

1,153

 

 

$

98,711

 

 

$

99,864

 

 

$

—

 

Commercial real estate

 

—

 

 

 

—

 

 

 

253

 

 

 

253

 

 

 

301,831

 

 

 

302,084

 

 

 

—

 

Residential real estate

 

5

 

 

 

214

 

 

 

454

 

 

 

673

 

 

 

86,499

 

 

 

87,172

 

 

 

—

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer - home equity

 

24

 

 

 

25

 

 

 

123

 

 

 

172

 

 

 

25,684

 

 

 

25,856

 

 

 

—

 

Consumer - other

 

14

 

 

 

—

 

 

 

—

 

 

 

14

 

 

 

3,726

 

 

 

3,740

 

 

 

—

 

Total

$

44

 

 

$

239

 

 

$

1,982

 

 

$

2,265

 

 

$

516,451

 

 

$

518,716

 

 

$

—

 
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, 2020 and December 31, 2019. Also presented are the average recorded investments in the impaired balances and interest income recognized after impairment for the three months ended March 31, 2020 and 2019.

 

 

(Amounts in thousands)

 

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

 

March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

3,868

 

 

$

4,857

 

 

$

—

 

Commercial real estate

 

2,896

 

 

 

2,896

 

 

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

812

 

 

 

812

 

 

 

579

 

Commercial real estate

 

—

 

 

 

—

 

 

 

—

 

Total:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

4,680

 

 

$

5,669

 

 

$

579

 

Commercial real estate

$

2,896

 

 

$

2,896

 

 

$

—

 

 

 

(Amounts in thousands)

 

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

3,925

 

 

$

4,946

 

 

$

—

 

Commercial real estate

 

2,940

 

 

 

2,940

 

 

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

984

 

 

 

984

 

 

 

579

 

Commercial real estate

 

—

 

 

 

—

 

 

 

—

 

Total:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

4,909

 

 

$

5,930

 

 

$

579

 

Commercial real estate

$

2,940

 

 

$

2,940

 

 

$

—

 

 

 

 

(Amounts in thousands)

 

 

Three Months Ended

 

 

Average Recorded

Investment

 

 

Interest Income

Recognized

 

March 31, 2020

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

Commercial

$

3,888

 

 

$

38

 

Commercial real estate

 

2,911

 

 

 

42

 

With an allowance recorded:

 

 

 

 

 

 

 

Commercial

 

927

 

 

 

—

 

Commercial real estate

 

—

 

 

 

—

 

Total:

 

 

 

 

 

 

 

Commercial

$

4,815

 

 

$

38

 

Commercial real estate

$

2,911

 

 

$

42

 

 

 

 

(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