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

9 Months Ended

Sep. 30, 2019

Loans, Allowance for Credit Losses and Impaired Loans

Schedule of major categories of loans

(Dollars in thousands)	At September 30, 2019		At December 31, 2018
Originated Loans
Other real estate secured	$	369,039	$	356,141
1 - 4 Family residential secured		120,160		116,771
Other		51,643		48,960
		540,842		521,872
Acquired Loans
Other real estate secured	$	56,698	$	70,080
1 - 4 Family residential secured		23,120		29,532
Other		13,669		12,420
		93,487		112,032
Total Loans
Other real estate secured	$	425,737	$	426,221
1 - 4 Family residential secured		143,280		146,303
Other		65,312		61,379
		634,329		633,903
Less: Unamortized discounts on acquired loans		(668)		(1,327)
Less: Allowance for loan losses		(7,054)		(7,063)
	$	626,607	$	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
September 30, 2019
Individually evaluated for impairment:
Balance in allowance	$	47	$	251	$	639	$	—	$	937
Related loan balance		14,114		4,102		1,218		—		19,434
Collectively evaluated for impairment:
Balance in allowance	$	4,346	$	1,210	$	102	$	459	$	6,117
Related loan balance		411,215		139,084		63,928		—		614,227

	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

	September 30, 2019
	Other		1 - 4 Family
	Real Estate		Residential
Dollars in Thousands	Secured		Secured		Other		Unallocated		Total
Quarter Ended
Beginning Balance	$	4,359	$	1,343	$	634	$	730	$	7,066
Charge-offs		—		—		(454)		—		(454)
Recoveries		84		24		34		—		142
Provision		(50)		94		527		(271)		300
Ending Balance		4,393		1,461		741		459		7,054
Nine Months Ended
Beginning Balance		4,276		1,643		654		490		7,063
Charge-offs		(421)		(198)		(632)		—		(1,251)
Recoveries		97		165		80		—		342
Provision		441		(149)		639		(31)		900
Ending Balance		4,393		1,461		741		459		7,054

	September 30, 2018
	Other		1 - 4 Family
	Real Estate		Residential
Dollars in Thousands	Secured		Secured		Other		Unallocated		Total
Quarter Ended
Beginning Balance	$	4,434	$	1,887	$	444	$	331	$	7,096
Charge-offs		(143)		—		(84)		—		(227)
Recoveries		9		19		28		—		56
Provision		142		29		29		100		300
Ending Balance		4,442		1,935		417		431		7,225
Nine Months Ended
Beginning Balance		3,858		1,744		536		565		6,703
Charge-offs		(347)		(52)		(202)		—		(601)
Recoveries		77		143		78		—		298
Provision		854		100		5		(134)		825
Ending Balance		4,442		1,935		417		431		7,225

Schedule of loans by risk rating

			1 - 4 Family
	Other Real		Residential
September 30, 2019	Estate Secured		Secured		Other		Total
	Dollars in Thousands
Excellent	$	1,098	$	—	$	6,357	$	7,455
Superior		3,851		254		1,874		5,979
Good		404,785		136,693		53,530		595,008
Fair		7,968		2,977		1,619		12,564
Marginal		—		—		—		—
Substandard		7,628		3,261		1,766		12,655
TOTAL	$	425,330	$	143,185	$	65,146	$	633,661
Non-Accrual	$	2,806	$	2,107	$	214	$	5,127
Troubled debt restructures	$	8,178	$	2,443	$	166	$	10,787
Breakdown of TDRs
TDRs on Non-accrual	$	1,120	$	918	$	166	$	2,204
TDRs Past Due 30-89		—		213		—		213
Performing TDRs		7,058		1,312		—		8,370
TOTAL	$	8,178	$	2,443	$	166	$	10,787
Total Non-performing TDR accounts	$	1,120	$	1,131	$	166	$	2,417

			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 September 30, 2019	Past Due*		Past Due**		Past Due***		Past Due		Balance		Receivables		and Accruing
	Dollars in Thousands
Other Real Estate Secured	$	569	$	—	$	2,005	$	2,574	$	423,163	$	425,737	$	—
1 - 4 Family Residential		1,696		619		616		2,931		140,349		143,280		—
Other		158		20		—		178		65,134		65,312		—
TOTAL	$	2,423	$	639	$	2,621	$	5,683	$	628,646	$	634,329	$	—

*      Includes $1.2 million of non‑accrual loans.

**    Includes $117,000 of non-accrual loans.

***  Includes $2.6 million of nonacrual 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
September 30, 2019	Investment		Balance		Recognized		Reserve		Investment
	Dollars in Thousands
Impaired loans with specific reserves:
Other Real Estate Secured	$	2,278	$	2,278	$	188	$	47	$	2,777
1 - 4 Family Residential Secured		738		738		—		251		2,343
Other		214		214		11		639		129
Total impaired loans with specific reserves	$	3,230	$	3,230	$	199	$	937	$	5,249
Impaired loans with no specific reserve:
Other Real Estate Secured	$	12,339	$	12,815	$	768	$	—	$	12,594
1 - 4 Family Residential Secured		4,261		5,041		158		—		5,011
Other		2,325		2,325		110		—		2,065
Total impaired loans with no specific reserve	$	18,925	$	20,181	$	1,036	—	—	$	19,670
TOTAL	$	22,155	$	23,411	$	1,235	$	937	$	24,919

			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	September 30, 2019		December 31, 2018
Accountable for under ASC 310-30 (PCI loans)
Outstanding balance	$	1,067	$	1,692
Carrying amount		810		1,110
Accountable for under ASC 310-20 (non-PCI loans)
Outstanding balance	$	92,420	$	110,340
Carrying amount		92,009		109,595
Total acquired loans
Outstanding balance	$	93,487	$	112,032
Carrying amount		92,819		110,705

Schedule of changes in accretable yield of acquired loans

Dollars in Thousands	September 30, 2019		December 31, 2018
Balance at beginning of period	$	745	$	—
Acquisitions		—		1,703
Accretion		(335)		(958)
Balance at end of period	$	410	$	745