Loans Receivable and Related Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Schedule of Classification of Loans Receivable

The Corporation’s loans receivable as of the respective dates are summarized as follows:

(Dollar amounts in thousands)	June 30, 2017		December 31, 2016
Mortgage loans on real estate:
Residential first mortgages	$	214,905	$	198,167
Home equity loans and lines of credit	90,736		91,359
Commercial real estate	179,891		166,994
	485,532		456,520
Other loans:
Commercial business	58,797		57,788
Consumer	7,204		6,672
	66,001		64,460
Total loans, gross	551,533		520,980
Less allowance for loan losses	5,767		5,545
Total loans, net	$	545,766	$	515,435

Allowance for Credit Losses on Financing Receivables

The following table details activity in the ALL and the recorded investment by portfolio segment based on impairment method:

(Dollar amounts in thousands)	Residential Mortgages			Home Equity & Lines of Credit			Commercial Real Estate			Commercial Business			Consumer			Total
Three months ended June 30, 2017:
Allowance for loan losses:
Beginning Balance	$	1,956		$	648		$	2,449		$	583		$	52		$	5,688
Charge-offs	(10		)	(10		)	(90		)	(10		)	(8		)	(128		)
Recoveries	—			1			2			—			3			6
Provision	48			—			99			48			6			201
Ending Balance	$	1,994		$	639		$	2,460		$	621		$	53		$	5,767
Six months ended June 30, 2017:
Allowance for loan losses:
Beginning Balance	$	1,846		$	633		$	2,314		$	700		$	52		$	5,545
Charge-offs	(36		)	(11		)	(90		)	(10		)	(27		)	(174		)
Recoveries	—			20			4			—			9			33
Provision	184			(3		)	232			(69		)	19			363
Ending Balance	$	1,994		$	639		$	2,460		$	621		$	53		$	5,767
At June 30, 2017:
Ending ALL balance attributable to loans:
Individually evaluated for impairment	$	8		$	—		$	—		$	—		$	—		$	8
Acquired loans collectively evaluated for impairment	—			—			—			—			—			—
Originated loans collectively evaluated for impairment	1,986			639			2,460			621			53			5,759
Total	$	1,994		$	639		$	2,460		$	621		$	53		$	5,767
Total loans:
Individually evaluated for impairment	$	442		$	—		$	975		$	600		$	—		$	2,017
Acquired loans collectively evaluated for impairment	21,849			4,324			24,486			1,038			—			51,697
Originated loans collectively evaluated for impairment	192,614			86,412			154,430			57,159			7,204			497,819
Total	$	214,905		$	90,736		$	179,891		$	58,797		$	7,204		$	551,533
At December 31, 2016:
Ending ALL balance attributable to loans:
Individually evaluated for impairment	$	19		$	—		$	95		$	6		$	—		$	120
Acquired loans collectively evaluated for impairment	—			—			—			—			—			—
Originated loans collectively evaluated for impairment	1,827			633			2,219			694			52			5,425
Total	$	1,846		$	633		$	2,314		$	700		$	52		$	5,545
Total loans:
Individually evaluated for impairment	$	135		$	—		$	1,014		$	684		$	—		$	1,833
Acquired loans collectively evaluated for impairment	25,024			5,225			27,492			1,182			13			58,936
Originated loans collectively evaluated for impairment	173,008			86,134			138,488			55,922			6,659			460,211
Total	$	198,167		$	91,359		$	166,994		$	57,788		$	6,672		$	520,980
Three months ended June 30, 2016:
Allowance for loan losses:
Beginning Balance	$	1,577		$	636		$	1,926		$	1,162		$	51		$	5,352
Charge-offs	(8		)	(33		)	—			—			(6		)	(47		)
Recoveries	—			1			3			—			1			5
Provision	127			41			189			(242		)	6			121
Ending Balance	$	1,696		$	645		$	2,118		$	920		$	52		$	5,431
Six months ended June 30, 2016:
Allowance for loan losses:
Beginning Balance	$	1,429		$	586		$	2,185		$	960		$	45		$	5,205
Charge-offs	(40		)	(33		)	—			—			(15		)	(88		)
Recoveries	—			1			7			—			4			12
Provision	307			91			(74		)	(40		)	18			302
Ending Balance	$	1,696		$	645		$	2,118		$	920		$	52		$	5,431

Schedule of Impaired Loans with and without a Specific Allowance

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2017:

(Dollar amounts in thousands)
	Impaired Loans with Specific Allowance
	As of June 30, 2017						For the three months ended June 30, 2017
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	76	$	76	$	8	$	76	$	1	$	1
Home equity and lines of credit	—		—		—		—		—		—
Commercial real estate	—		—		—		—		—		—
Commercial business	—		—		—		—		—		—
Consumer	—		—		—		—		—		—
Total	$	76	$	76	$	8	$	76	$	1	$	1
							For the six months ended June 30, 2017
							Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages							$	96	$	2	$	2
Home equity and lines of credit							—		—		—
Commercial real estate							186		—		—
Commercial business							196		—		—
Consumer							—		—		—
Total							$	478	$	2	$	2

	Impaired Loans with No Specific Allowance
	As of June 30, 2017				For the three months ended June 30, 2017
	Unpaid Principal Balance		Recorded Investment		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	478	$	366	$	369	$	3	$	3
Home equity and lines of credit	—		—		—		—		—
Commercial real estate	1,149		975		983		—		—
Commercial business	600		600		620		—		—
Consumer	—		—		—		—		—
Total	$	2,227	$	1,941	$	1,972	$	3	$	3
					For the six months ended June 30, 2017
					Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages					$	246	$	4	$	4
Home equity and lines of credit					—		—		—
Commercial real estate					807		1		1
Commercial business					446		1		1
Consumer					—		—		—
Total					$	1,499	$	6	$	6

5. Loans Receivable and Related Allowance for Loan Losses (continued)

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2016:

(Dollar amounts in thousands)
	Impaired Loans with Specific Allowance
	As of December 31, 2016						For the year ended December 31, 2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	168	$	135	$	19	$	119	$	6	$	6
Home equity and lines of credit	—		—		—		—		—		—
Commercial real estate	557		557		95		130		23		—
Commercial business	588		588		6		428		—		—
Consumer	—		—		—		—		—		—
Total	$	1,313	$	1,280	$	120	$	677	$	29	$	6

	Impaired Loans with No Specific Allowance
	As of December 31, 2016		For the year ended December 31, 2016
	Unpaid Principal Balance	Recorded Investment	Average Recorded Investment	Interest Income Recognized in Period	Cash Basis Interest Recognized in Period
Residential first mortgages	—	—	23	—	—
Home equity and lines of credit	—	—	—	—	—
Commercial real estate	631	457	735	3	3
Commercial business	96	96	322	2	2
Consumer	—	—	—	—	—
Total	727	553	1,080	5	5

5. Loans Receivable and Related Allowance for Loan Losses (continued)

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2016:

(Dollar amounts in thousands)
	Impaired Loans with Specific Allowance
	As of June 30, 2016						For the three months ended June 30, 2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	78	$	78	$	19	$	78	$	1	$	1
Home equity and lines of credit	—		—		—		—		—		—
Commercial real estate	—		—		—		—		—		—
Commercial business	—		—		—		315		—		—
Consumer	—		—		—		—		—		—
Total	$	78	$	78	$	19	$	393	$	1	$	1
							For the six months ended June 30, 2016
							Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages							$	109	$	2	$	2
Home equity and lines of credit							—		—		—
Commercial real estate							31		—		—
Commercial business							517		—		—
Consumer							—		—		—
Total							$	657	$	2	$	2

	Impaired Loans with No Specific Allowance
	As of June 30, 2016				For the three months ended June 30, 2016
	Unpaid Principal Balance		Recorded Investment		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	91	$	58	$	58	$	—	$	—
Home equity and lines of credit	—		—		—		—		—
Commercial real estate	1,222		823		840		—		—
Commercial business	690		690		382		1		1
Consumer	—		—		—		—		—
Total	$	2,003	$	1,571	$	1,280	$	1	$	1
					For the six months ended June 30, 2016
					Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages					$	38	$	2	$	2
Home equity and lines of credit					—		—		—
Commercial real estate					809		1		1
Commercial business					280		1		1
Consumer					—		—		—
Total					$	1,127	$	4	$	4

Financing Receivable Credit Quality Indicators

The following table presents the classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the Corporation’s internal risk rating system as of June 30, 2017 and December 31, 2016:

(Dollar amounts in thousands)
	Not Rated		Pass		Special Mention		Substandard		Doubtful		Total
June 30, 2017:
Residential first mortgages	$	213,966	$	—	$	—	$	939	$	—	$	214,905
Home equity and lines of credit	90,231		—		—		505		—		90,736
Commercial real estate	—		173,291		1,199		5,401		—		179,891
Commercial business	—		57,130		537		1,130		—		58,797
Consumer	7,204		—		—		—		—		7,204
Total	$	311,401	$	230,421	$	1,736	$	7,975	$	—	$	551,533
December 31, 2016:
Residential first mortgages	$	197,041	$	—	$	—	$	1,126	$	—	$	198,167
Home equity and lines of credit	91,017		—		—		342		—		91,359
Commercial real estate	—		161,312		1,077		4,605		—		166,994
Commercial business	—		52,125		4,926		737		—		57,788
Consumer	6,659		—		—		13		—		6,672
Total	$	294,717	$	213,437	$	6,003	$	6,823	$	—	$	520,980

Past Due Financing Receivables

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonperforming loans as of June 30, 2017 and December 31, 2016:

(Dollar amounts in thousands)
	Performing						Nonperforming
	Accruing Loans Not Past Due		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing 90+ Days Past Due		Nonaccrual		Total
June 30, 2017:
Residential first mortgages	$	211,336	$	1,814	$	816	$	180	$	759	$	214,905
Home equity and lines of credit	89,865		353		13		54		451		90,736
Commercial real estate	178,089		790		11		—		1,001		179,891
Commercial business	57,837		323		37		—		600		58,797
Consumer	7,167		28		9		—		—		7,204
Total loans	$	544,294	$	3,308	$	886	$	234	$	2,811	$	551,533
December 31, 2016:
Residential first mortgages	$	194,830	$	1,916	$	295	$	—	$	1,126	$	198,167
Home equity and lines of credit	90,557		460		—		2		340		91,359
Commercial real estate	165,318		561		—		42		1,073		166,994
Commercial business	56,972		56		34		—		726		57,788
Consumer	6,602		28		29		—		13		6,672
Total loans	$	514,279	$	3,021	$	358	$	44	$	3,278	$	520,980

Schedule of Financing Receivables, Non Accrual Status

The following table presents the Corporation’s nonaccrual loans by aging category as of June 30, 2017 and December 31, 2016:

(Dollar amounts in thousands)
	Not Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days + Past Due		Total
June 30, 2017:
Residential first mortgages	$	71	$	388	$	—	$	300	$	759
Home equity and lines of credit	—		—		17		434		451
Commercial real estate	369		—		—		632		1,001
Commercial business	600		—		—		—		600
Consumer	—		—		—		—		—
Total loans	$	1,040	$	388	$	17	$	1,366	$	2,811
December 31, 2016:
Residential first mortgages	72		77		—		977		1,126
Home equity and lines of credit	—		—		—		340		340
Commercial real estate	397		—		557		119		1,073
Commercial business	631		—		—		95		726
Consumer	—		—		—		13		13
Total loans	$	1,100	$	77	$	557	$	1,544	$	3,278