Loans, Allowance for Credit Losses and Impaired Loans (Tables)

6 Months Ended

Jun. 30, 2019

Loans, Allowance for Credit Losses and Impaired Loans

Schedule of major categories of loans

(Dollars in thousands)	AtJune30,2019		At December 31, 2018
Originated Loans
Other real estate secured	$	373,082	$	356,141
1 - 4 Family residential secured		119,036		116,771
Other		52,612		48,960
		544,730		521,872
Acquired Loans
Other real estate secured	$	63,310	$	70,080
1 - 4 Family residential secured		27,493		29,532
Other		12,075		12,420
		102,878		112,032
Total Loans
Other real estate secured	$	436,392	$	426,221
1 - 4 Family residential secured		146,529		146,303
Other		64,687		61,379
		647,608		633,903
Less: Unamortized discounts on acquired loans		(893)		(1,327)
Less: Allowance for loan losses		(7,066)		(7,063)
	$	639,649	$	625,513

Schedule of allowance for credit losses by loan category

	Other		1 - 4 Family
	Real Estate		Residential
Dollars in Thousands	Secured		Secured		Other		Unallocated		Total
June 30, 2019
Individually evaluated for impairment:
Balance in allowance	$	164	$	265	$	169	$	—	$	598
Related loan balance		13,851		4,574		431		—		18,856
Collectively evaluated for impairment:
Balance in allowance	$	4,195	$	1,078	$	465	$	730	$	6,468
Related loan balance		422,082		141,703		64,074		—		627,859

	Other		1 - 4 Family
	Real Estate		Residential
Dollars in Thousands	Secured		Secured		Other		Unallocated		Total
December 31, 2018
Individually evaluated for impairment:
Balance in allowance	$	278	$	586	$	178	$	—	$	1,042
Related loan balance		14,947		8,775		1,732		—		25,454
Collectively evaluated for impairment:
Balance in allowance	$	3,998	$	1,057	$	476	$	490	$	6,021
Related loan balance		410,527		137,192		59,403		—		607,122

	June 30, 2019
	Other		1 - 4 Family
	Real Estate		Residential
Dollars in Thousands	Secured		Secured		Other		Unallocated		Total
Quarter Ended:
Beginning Balance	$	4,295	$	1,644	$	667	$	457	$	7,063
Charge-offs		(220)		(193)		(43)		—		(456)
Recoveries		8		139		12		—		159
Provision		276		(247)		(2)		273		300
Ending Balance		4,359		1,343		634		730		7,066
Six Months Ended:
Beginning Balance		4,276		1,643		654		490		7,063
Charge-offs		(421)		(198)		(178)		—		(797)
Recoveries		13		141		46		—		200
Provision		491		(243)		112		240		600
Ending Balance		4,359		1,343		634		730		7,066

	June 30, 2018
	Other		1 - 4 Family
	Real Estate		Residential
Dollars in Thousands	Secured		Secured		Other		Unallocated		Total
Quarter Ended:
Beginning Balance	$	4,249	$	1,802	$	514	$	459	$	7,024
Charge-offs		(204)		(8)		(71)		—		(283)
Recoveries		3		55		22		—		80
Provision		386		38		(21)		(128)		275
Ending Balance		4,434		1,887		444		331		7,096
Six Months Ended:
Beginning Balance		3,858		1,744		536		565		6,703
Charge-offs		(204)		(52)		(118)		—		(374)
Recoveries		68		124		50		—		242
Provision		712		71		(24)		(234)		525
Ending Balance		4,434		1,887		444		331		7,096

Schedule of loans by risk rating

			1 - 4 Family
	Other Real		Residential
June 30, 2019	Estate Secured		Secured		Other		Total
	Dollars in Thousands
Excellent	$	1,114	$	—	$	11,187	$	12,301
Superior		3,844		255		1,923		6,022
Good		418,145		139,073		48,436		605,654
Fair		5,381		3,503		1,206		10,090
Marginal		—		117		—		117
Substandard		7,449		3,329		1,753		12,531
TOTAL	$	435,933	$	146,277	$	64,505	$	646,715
Non-Accrual	$	2,713	$	2,100	$	169	$	4,982
Troubled debt restructures	$	7,460	$	2,468	$	1,194	$	11,122
Breakdown of TDRs
TDRs on Non-accrual	$	1,123	$	932	$	169	$	2,224
TDRs Past Due 30-89		—		404		—		404
Performing TDRs		6,337		1,132		1,025		8,494
TOTAL	$	7,460	$	2,468	$	1,194	$	11,122
Total Non-performing TDR accounts	$	1,123	$	1,336	$	169	$	2,628

			1 - 4 Family
	Other Real		Residential
December 31, 2018	Estate Secured		Secured		Other		Total
	Dollars in Thousands
Excellent	$	1,143	$	—	$	9,756	$	10,899
Superior		7,523		267		2,015		9,805
Good		402,092		133,401		45,802		581,295
Fair		8,084		4,598		2,106		14,788
Marginal		407		112		268		787
Substandard		7,071		7,589		343		15,003
TOTAL	$	426,319	$	145,967	$	60,290	$	632,576
Non-Accrual	$	4,423	$	4,547	$	178	$	9,148
Troubled debt restructures	$	10,341	$	7,269	$	206	$	17,816
Breakdown of TDRs
TDRs on Non-accrual	$	2,546	$	3,290	$	175	$	6,012
TDRs Past Due 30-89		640		—		31		671
Performing TDRs		7,155		3,979		—		11,134
TOTAL	$	10,341	$	7,269	$	206	$	17,816
Total Non-performing TDR accounts	$	3,186	$	3,290	$	206	$	6,682

Schedule of aging analysis of the recorded investment of past due financing receivables

													Recorded
													Investment
					Greater than						Total		>90 Days
	30 - 59 Days		60 - 89 Days		90 Days		Total		Current		Financing		Past Due
At June 30, 2019	Past Due*		Past Due		Past Due**		Past Due		Balance		Receivables		and Accruing
	Dollars in Thousands
Other Real Estate Secured	$	777	$	1,195	$	1,718	$	3,690	$	432,702	$	436,392	$	—
1 - 4 Family Residential		1,708		517		1,006		3,231		143,298		146,529		156
Other		105		485		—		590		64,097		64,687		—
TOTAL	$	2,590	$	2,197	$	2,724	$	7,511	$	640,097	$	647,608	$	156

*      Includes $817,000 of non‑accrual loans.

**    Includes $2.5 million of non-accrual loans.

													Recorded
													Investment
					Greater than						Total		>90 Days
	30 - 59 Days		60 - 89 Days		90 Days		Total		Current		Financing		Past Due
At December 31, 2018	Past Due		Past Due		Past Due*		Past Due		Balance		Receivables		and Accruing
	Dollars in Thousands
Other Real Estate Secured	$	876	$	1,742	$	3,129	$	5,747	$	420,474	$	426,221	$	338
1 - 4 Family Residential		1,292		383		1,722		3,397		142,906		146,303		—
Other		1,035		33		268		1,336		60,043		61,379		268
TOTAL	$	3,203	$	2,158	$	5,119	$	10,480	$	623,423	$	633,903	$	606

*      Includes $4.5 million of non‑accrual loans.

Schedule of impaired loans

			Unpaid		Interest				Average
	Recorded		Principal		Income		Specific		Recorded
June 30, 2019	Investment		Balance		Recognized		Reserve		Investment
	Dollars in Thousands
Impaired loans with specific reserves:
Other Real Estate Secured	$	2,528	$	2,528	$	118	$	164	$	2,902
1 - 4 Family Residential Secured		749		749		—		265		2,348
Other		169		169		—		169		107
Total impaired loans with specific reserves	$	3,446	$	3,446	$	118	$	598	$	5,357
Impaired loans with no specific reserve:
Other Real Estate Secured	$	12,121	$	12,605	$	493	$	—	$	12,485
1 - 4 Family Residential Secured		4,209		5,443		113		—		4,985
Other		1,583		1,583		59		—		1,694
Total impaired loans with no specific reserve	$	17,913	$	19,631	$	665	—	—	$	19,164
TOTAL	$	21,359	$	23,077	$	783	$	598	$	24,521

			Unpaid		Interest				Average
	Recorded		Principal		Income		Specific		Recorded
December 31, 2018	Investment		Balance		Recognized		Reserve		Investment
	Dollars in Thousands
Impaired loans with specific reserves:
Other Real Estate Secured	$	3,276	$	3,276	$	246	$	412	$	3,690
1 - 4 Family Residential Secured		3,947		4,075		174		586		4,989
Other		44		44		2		44		22
Total impaired loans with specific reserves	$	7,267	$	7,395	$	422	$	1,042	$	8,701
Impaired loans with no specific reserve:
Other Real Estate Secured	$	12,849	$	13,905	$	1,016	$	—	$	10,691
1 - 4 Family Residential Secured		5,761		7,011		256		—		3,902
Other		1,805		1,805		112		—		1,080
Total impaired loans with no specific reserve	$	20,415	$	22,721	$	1,384	$	—	$	15,672
TOTAL	$	27,682	$	30,116	$	1,806	$	1,042	$	24,374

Schedule of outstanding balance and carrying amount of acquired loans

Dollars in Thousands	June 30, 2019		December 31, 2018
Accountable for under ASC 310-30 (PCI loans)
Outstanding balance	$	1,424	$	1,692
Carrying amount		1,045		1,110
Accountable for under ASC 310-20 (non-PCI loans)
Outstanding balance	$	101,454	$	110,340
Carrying amount		100,940		109,595
Total acquired loans
Outstanding balance	$	102,878	$	112,032
Carrying amount		101,985		110,705

Schedule of changes in accretable yield of acquired loans

Dollars in Thousands	June 30, 2019		December 31, 2018
Balance at beginning of period	$	745	$	—
Acquisitions		—		1,703
Accretion		(231)		(958)
Balance at end of period	$	514	$	745