Loans Receivable and Related Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2018

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, 2018		December 31, 2017
Mortgage loans on real estate:
Residential first mortgages	$	230,504	$	221,823
Home equity loans and lines of credit	100,454		99,940
Commercial real estate	198,602		193,068
	529,560		514,831
Other loans:
Commercial business	54,693		58,941
Consumer	9,123		9,589
	63,816		68,530
Total loans, gross	593,376		583,361
Less allowance for loan losses	6,118		6,127
Total loans, net	$	587,258	$	577,234

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, 2018:
Allowance for loan losses:
Beginning Balance	$	1,919		$	651		$	2,751		$	560		$	54		$	5,935
Charge-offs	—			(63		)	(33		)	—			(51		)	(147		)
Recoveries	—			10			16			1			3			30
Provision	114			52			148			(62		)	48			300
Ending Balance	$	2,033		$	650		$	2,882		$	499		$	54		$	6,118
Six months ended June 30, 2018:
Allowance for loan losses:
Beginning Balance	$	2,090		$	646		$	2,753		$	585		$	53		$	6,127
Charge-offs	(61		)	(83		)	(418		)	—			(170		)	(732		)
Recoveries	3			11			18			2			9			43
Provision	1			76			529			(88		)	162			680
Ending Balance	$	2,033		$	650		$	2,882		$	499		$	54		$	6,118
At June 30, 2018:
Ending ALL balance attributable to loans:
Individually evaluated for impairment	$	7		$	—		$	—		$	—		$	—		$	7
Acquired loans collectively evaluated for impairment	—			—			—			—			—			—
Originated loans collectively evaluated for impairment	2,026			650			2,882			499			54			6,111
Total	$	2,033		$	650		$	2,882		$	499		$	54		$	6,118
Total loans:
Individually evaluated for impairment	$	408		$	7		$	43		$	39		$	—		$	497
Acquired loans collectively evaluated for impairment	18,501			10,203			24,247			2,173			1,307			56,431
Originated loans collectively evaluated for impairment	211,595			90,244			174,312			52,481			7,816			536,448
Total	$	230,504		$	100,454		$	198,602		$	54,693		$	9,123		$	593,376
At December 31, 2017:
Ending ALL balance attributable to loans:
Individually evaluated for impairment	$	7		$	—		$	—		$	—		$	—		$	7
Acquired loans collectively evaluated for impairment	—			—			—			—			—			—
Originated 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 collectively evaluated for impairment	20,300			10,873			27,404			1,451			2,893			62,921
Originated loans 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
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

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, 2018:

(Dollar amounts in thousands)
	Impaired Loans with Specific Allowance
	As of June 30, 2018						For the three months ended June 30, 2018
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	74	$	74	$	7	$	75	$	1	$	1
Home equity and lines of credit	7		7		—		8		—		—
Commercial real estate	—		—		—		—		—		—
Commercial business	—		—		—		—		—		—
Consumer	—		—		—		—		—		—
Total	$	81	$	81	$	7	$	83	$	1	$	1
							For the six months ended June 30, 2018
							Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages							$	75	$	2	$	2
Home equity and lines of credit							7		—		—
Commercial real estate							—		—		—
Commercial business							—		—		—
Consumer							—		—		—
Total							$	82	$	2	$	2

	Impaired Loans with No Specific Allowance
	As of June 30, 2018				For the three months ended June 30, 2018
	Unpaid Principal Balance		Recorded Investment		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	446	$	334	$	339	$	2	$	2
Home equity and lines of credit	—		—		—		—		—
Commercial real estate	43		43		190		73		73
Commercial business	39		39		297		41		41
Consumer	—		—		—		—		—
Total	$	528	$	416	$	826	$	116	$	116
					For the six months ended June 30, 2018
					Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages					$	343	$	2	$	2
Home equity and lines of credit					—		—		—
Commercial real estate					431		73		73
Commercial business					387		42		42
Consumer					—		—		—
Total					$	1,161	$	117	$	117

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, 2017:

(Dollar amounts in thousands)
	Impaired Loans with Specific Allowance
	As of December 31, 2017						For the year ended 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

	Impaired Loans with No Specific Allowance
	As of December 31, 2017				For the year ended 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

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, 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

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, 2018 and December 31, 2017:

(Dollar amounts in thousands)
	Not Rated		Pass		Special Mention		Substandard		Doubtful		Total
June 30, 2018:
Residential first mortgages	$	229,401	$	—	$	—	$	1,103	$	—	$	230,504
Home equity and lines of credit	99,474		—		—		980		—		100,454
Commercial real estate	—		187,762		3,831		7,009		—		198,602
Commercial business	—		53,355		234		1,104		—		54,693
Consumer	9,037		—		—		86		—		9,123
Total	$	337,912	$	241,117	$	4,065	$	10,282	$	—	$	593,376
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

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, 2018 and December 31, 2017:

(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, 2018:
Residential first mortgages	$	227,774	$	1,264	$	440	$	59	$	967	$	230,504
Home equity and lines of credit	98,592		753		244		323		542		100,454
Commercial real estate	196,655		1,111		343		184		309		198,602
Commercial business	54,654		—		—		—		39		54,693
Consumer	8,660		354		46		—		63		9,123
Total loans	$	586,335	$	3,482	$	1,073	$	566	$	1,920	$	593,376
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

Schedule of Financing Receivables, Non Accrual Status

The following table presents the Corporation’s nonaccrual loans by aging category as of June 30, 2018 and December 31, 2017:

(Dollar amounts in thousands)
	Not Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days + Past Due		Total
June 30, 2018:
Residential first mortgages	$	353	$	—	$	74	$	540	$	967
Home equity and lines of credit	7		—		9		526		542
Commercial real estate	205		—		—		104		309
Commercial business	39		—		—		—		39
Consumer	—		—		—		63		63
Total loans	$	604	$	—	$	83	$	1,233	$	1,920
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