Loans Receivable and Related Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Schedule of Classification of Loans Receivable

The following table summarizes the Corporation’s loans receivable as of December 31:

(Dollar amounts in thousands)	2017		2016
Mortgage loans on real estate:
Residential first mortgages	$	221,823	$	198,167
Home equity loans and lines of credit	99,940		91,359
Commercial real estate	193,068		166,994
	514,831		456,520
Other loans:
Commercial business	58,941		57,788
Consumer	9,589		6,672
	68,530		64,460
Total loans, gross	583,361		520,980
Less allowance for loan losses	6,127		5,545
Total loans, net	$	577,234	$	515,435

Allowance for Credit Losses on Financing Receivables

Following is an analysis of the changes in the ALL for the years ended December 31:

(Dollar amounts in thousands)	2017			2016
Balance at the beginning of the year	$	5,545		$	5,205
Provision for loan losses	903			464
Charge-offs	(366		)	(296		)
Recoveries	45			172
Balance at the end of the year	$	6,127		$	5,545

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

The following table details activity in the ALL and the recorded investment by portfolio segment based on impairment method at December 31, 2017 and 2016:

	Residential			Home Equity & Lines			Commercial			Commercial
(Dollar amounts in thousands)	Mortgages			of Credit			Real Estate			Business			Consumer			Total
December 31, 2017:
Beginning Balance	$	1,846		$	633		$	2,314		$	700		$	52		$	5,545
Charge-offs	(40		)	(114		)	(127		)	(14		)	(71		)	(366		)
Recoveries	—			23			8			2			12			45
Provision	284			104			558			(103		)	60			903
Ending Balance	$	2,090		$	646		$	2,753		$	585		$	53		$	6,127
Ending ALL balance attributable to loans:
Individually evaluated for impairment	$	7		$	—		$	—		$	—		$	—		$	7
Acquired loans	—			—			—			—			—			—
Collectively evaluated for impairment	2,083			646			2,753			585			53			6,120
Total	$	2,090		$	646		$	2,753		$	585		$	53		$	6,127
Total loans:
Individually evaluated for impairment	$	425		$	8		$	914		$	569		$	—		$	1,916
Acquired loans	20,300			10,873			27,404			1,451			2,893			62,921
Collectively evaluated for impairment	201,098			89,059			164,750			56,921			6,696			518,524
Total	$	221,823		$	99,940		$	193,068		$	58,941		$	9,589		$	583,361
December 31, 2016:
Beginning Balance	$	1,429		$	586		$	2,185		$	960		$	45		$	5,205
Charge-offs	(101		)	(118		)	(18		)	(11		)	(48		)	(296		)
Recoveries	—			3			158			—			11			172
Provision	518			162			(11		)	(249		)	44			464
Ending Balance	$	1,846		$	633		$	2,314		$	700		$	52		$	5,545
Ending ALL balance attributable to loans:
Individually evaluated for impairment	$	19		$	—		$	95		$	6		$	—		$	120
Acquired 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	25,024			5,225			27,492			1,182			13			58,936
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

Schedule of Impaired Loans with and without a Specific Allowance

The following tables present 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: 

	Impaired Loans with
(Dollar amounts in thousands)	Specific Allowance
							For the year ended
	As of December 31, 2017						December 31, 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	$	75	$	75	$	7	$	88	$	3	$	3
Home equity and lines of credit	8		8		—		2		—		—
Commercial real estate	—		—		—		111		—		—
Commercial business	—		—		—		118		—		—
Consumer	—		—		—		—		—		—
Total	$	83	$	83	$	7	$	319	$	3	$	3

(Dollar amounts in thousands)	Impaired Loans with No Specific Allowance
					For the year ended
	As of December 31, 2017				December 31, 2017
	Unpaid Principal Balance		Recorded Investment		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	461	$	350	$	289	$	8	$	8
Home equity and lines of credit	—		—		—		—		—
Commercial real estate	1,089		914		855		3		3
Commercial business	569		569		498		3		3
Consumer	—		—		—		—		—
Total	$	2,119	$	1,833	$	1,642	$	14	$	14

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

(Dollar amounts in thousands)	Impaired Loans with Specific Allowance
							For the year ended
	As of December 31, 2016						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

(Dollar amounts in thousands)	Impaired Loans with No Specific Allowance
					For the year ended
	As of December 31, 2016				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

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 December 31, 2017 and 2016:

					Special
(Dollar amounts in thousands)	Not Rated		Pass		Mention		Substandard		Doubtful		Total
December 31, 2017:
Residential first mortgages	$	220,730	$	—	$	—	$	1,093	$	—	$	221,823
Home equity and lines of credit	98,946		—		—		994		—		99,940
Commercial real estate	—		182,460		2,744		7,864		—		193,068
Commercial business	—		56,960		477		1,504		—		58,941
Consumer	9,443		—		—		146		—		9,589
Total	$	329,119	$	239,420	$	3,221	$	11,601	$	—	$	583,361
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 December 31, 2017 and 2016:

	Performing						Nonperforming
	Accruing Loans Not		Accruing 30-59 Days		Accruing 60-89 Days		Accruing 90 Days +				Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Nonaccrual		Loans
December 31, 2017:
Residential first mortgages	$	218,515	$	1,936	$	357	$	159	$	856	$	221,823
Home equity and lines of credit	98,112		598		370		334		526		99,940
Commercial real estate	190,451		1,026		430		197		964		193,068
Commercial business	58,058		74		225		—		584		58,941
Consumer	9,162		273		81		—		73		9,589
Total loans	$	574,298	$	3,907	$	1,463	$	690	$	3,003	$	583,361
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 December 31, 2017 and 2016:

	Not		30-59 Days		60-89 Days		90 Days +		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Loans
December 31, 2017:
Residential first mortgages	$	366	$	—	$	75	$	415	$	856
Home equity and lines of credit	8		—		—		518		526
Commercial real estate	341		—		—		623		964
Commercial business	569		—		—		15		584
Consumer	—		—		—		73		73
Total loans	$	1,284	$	—	$	75	$	1,644	$	3,003
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