Loans Receivable and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2019

Loans Receivable and Allowance for Loan Losses [Abstract]

Loans receivable are summarized as follows:


	September 30, 2019		December 31, 2018
	(dollars in thousands)
Residential mortgage	$	271,336	$	276,389
Commercial		44,774		35,884
Commercial real estate		240,764		244,088
Construction, land acquisition, and development		93,350		114,540
Home equity/2nds		11,930		13,386
Consumer		1,545		1,087
Total loans receivable		663,699		685,374
Unearned loan fees		(2,820)		(3,025)
Loans receivable	$	660,879	$	682,349

Changes in allowance for loan losses and recorded investment

The following tables present, by portfolio segment, the changes in the Allowance and the recorded investment in loans:


	Three Months Ended September 30, 2019
	Residential				Commercial				Home Equity/
	Mortgage		Commercial		Real Estate		ADC		2nds		Consumer		Unallocated		Total
	(dollars in thousands)
Beginning Balance	$	2,566	$	1,566	$	792	$	2,683	$	223	$	—	$	263	$	8,093
Charge-offs		—		—		(199)		—		—		(2)		—		(201)
Recoveries		3		—		30		—		3		3		—		39
Net (charge-offs) recoveries		3		—		(169)		—		3		1		—		(162)
Provision for (reversal of) loan losses		(182)		(54)		346		(370)		—		(1)		(239)		(500)
Ending Balance	$	2,387	$	1,512	$	969	$	2,313	$	226	$	—	$	24	$	7,431


	Nine Months Ended September 30, 2019
	Residential				Commercial				Home Equity/
	Mortgage		Commercial		Real Estate		ADC		2nds		Consumer		Unallocated		Total
	(dollars in thousands)
Beginning Balance	$	2,224	$	2,736	$	457	$	2,239	$	222	$	1	$	165	$	8,044
Charge-offs		(20)		—		(199)		—		—		(14)		—		(233)
Recoveries		11		—		97		—		9		3		—		120
Net (charge-offs) recoveries		(9)		—		(102)		—		9		(11)		—		(113)
Provision for (reversal of) loan losses		172		(1,224)		614		74		(5)		10		(141)		(500)
Ending Balance	$	2,387	$	1,512	$	969	$	2,313	$	226	$	—	$	24	$	7,431

Ending balance - individually evaluated for impairment	$	799	$	—	$	65	$	32	$	2	$	—	$	—	$	898
Ending balance - collectively evaluated for impairment		1,588		1,512		904		2,281		224		—		24		6,533
	$	2,387	$	1,512	$	969	$	2,313	$	226	$	—	$	24	$	7,431

Ending loan balance -individually evaluated for impairment	$	11,272	$	—	$	1,685	$	729	$	579	$	71			$	14,336
Ending loan balance -collectively evaluated for impairment		258,518		44,774		237,805		92,621		11,351		1,474				646,543
	$	269,790	$	44,774	$	239,490	$	93,350	$	11,930	$	1,545			$	660,879


	December 31, 2018
	Residential				Commercial					Home Equity/
	Mortgage		Commercial		Real Estate		ADC		2nds		Consumer		Unallocated		Total
	(dollars in thousands)
Ending balance - individually evaluated for impairment	$	927	$	430	$	142	$	32	$	2	$	—	$	—	$	1,533
Ending balance - collectively evaluated for impairment		1,297		2,306		315		2,207		220		1		165		6,511
	$	2,224	$	2,736	$	457	$	2,239	$	222	$	1	$	165	$	8,044

Ending loan balance - individually evaluated for impairment	$	12,579	$	430	$	1,992	$	1,278	$	871	$	76			$	17,226
Ending loan balance - collectively evaluated for impairment		262,180		35,454		240,701		113,262		12,515		1,011				665,123
	$	274,759	$	35,884	$	242,693	$	114,540	$	13,386	$	1,087			$	682,349


	Three Months Ended September 30, 2018
	Residential				Commercial				Home Equity/
	Mortgage		Commercial		Real Estate		ADC		2nds		Consumer		Unallocated		Total
	(dollars in thousands)
Beginning Balance	$	2,962	$	414	$	2,591	$	2,060	$	229	$	1	$	—	$	8,257
Charge-offs		(148)		—		—		(6)		—		—		—		(154)
Recoveries		3		—		31		—		219		—		—		253
Net (charge-offs) recoveries		(145)		—		31		(6)		219		—		—		99
Provision for (reversal of) loan losses		204		219		10		(494)		(267)		—		28		(300)
Ending Balance	$	3,021	$	633	$	2,632	$	1,560	$	181	$	1	$	28	$	8,056


	Nine Months Ended September 30, 2018
	Residential				Commercial				Home Equity/
	Mortgage		Commercial		Real Estate		ADC		2nds		Consumer		Unallocated		Total
	(dollars in thousands)
Beginning Balance	$	3,099	$	527	$	2,805	$	1,236	$	386	$	2	$	—	$	8,055
Charge-offs		(508)		—		—		(19)		—		—		—		(527)
Recoveries		225		—		364		—		239		—		—		828
Net (charge-offs) recoveries		(283)		—		364		(19)		239		—		—		301
Provision for (reversal of) loan losses		205		106		(537)		343		(444)		(1)		28		(300)
Ending Balance	$	3,021	$	633	$	2,632	$	1,560	$	181	$	1	$	28	$	8,056

Ending balance - individually evaluated for impairment	$	1,090	$	—	$	166	$	900	$	2	$	1	$	—	$	2,159
Ending balance - collectively evaluated for impairment		1,931		633		2,466		660		179		—		28		5,897
	$	3,021	$	633	$	2,632	$	1,560	$	181	$	1	$	28	$	8,056

Ending loan balance - individually evaluated for impairment	$	15,038	$	—	$	2,053	$	1,582	$	772	$	78			$	19,523
Ending loan balance - collectively evaluated for impairment		270,432		43,180		232,777		111,412		11,401		987				670,189
	$	285,470	$	43,180	$	234,830	$	112,994	$	12,173	$	1,065			$	689,712

Credit quality breakdown of loan portfolio by class

The following tables present the credit quality breakdown of our loan portfolio by class:


	September 30, 2019
			Special
	Pass		Mention		Substandard		Total
	(dollars in thousands)
Residential mortgage	$	266,224	$	—	$	3,566	$	269,790
Commercial		43,571		1,203		—		44,774
Commercial real estate		235,048		2,965		1,477		239,490
ADC		92,914		—		436		93,350
Home equity/2nds		11,375		410		145		11,930
Consumer		1,545		—		—		1,545
	$	650,677	$	4,578	$	5,624	$	660,879


	December 31, 2018
			Special
	Pass		Mention		Substandard		Total
	(dollars in thousands)
Residential mortgage	$	270,727	$	827	$	3,205	$	274,759
Commercial		35,435		19		430		35,884
Commercial real estate		237,387		3,523		1,783		242,693
ADC		113,072		—		1,468		114,540
Home equity/2nds		12,536		434		416		13,386
Consumer		1,087		—		—		1,087
	$	670,244	$	4,803	$	7,302	$	682,349

Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans

The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans:


	September 30, 2019
	Past Due
	30-59		60-89		90+								Non-
	Days		Days		Days		Total		Current		Total		Accrual
	(dollars in thousands)
Residential mortgage	$	1,382	$	293	$	3,326	$	5,001	$	264,789	$	269,790	$	3,386
Commercial		—		—		—		—		44,774		44,774		—
Commercial real estate		—		—		578		578		238,912		239,490		692
ADC		76		391		—		467		92,883		93,350		99
Home equity/2nds		—		—		145		145		11,785		11,930		156
Consumer		—		16		—		16		1,529		1,545		—
	$	1,458	$	700	$	4,049	$	6,207	$	654,672	$	660,879	$	4,333


	December 31, 2018
	Past Due
	30-59		60-89		90+								Non-
	Days		Days		Days		Total		Current		Total		Accrual
	(dollars in thousands)
Residential mortgage	$	1,060	$	—	$	1,794	$	2,854	$	271,905	$	274,759	$	2,580
Commercial		—		—		430		430		35,454		35,884		430
Commercial real estate		137		—		660		797		241,896		242,693		660
ADC		255		—		387		642		113,898		114,540		558
Home equity/2nds		96		—		428		524		12,862		13,386		428
Consumer		13		—		—		13		1,074		1,087		—
	$	1,561	$	—	$	3,699	$	5,260	$	677,089	$	682,349	$	4,656

Summary of Impaired loans

The following tables summarize impaired loans:


	September 30, 2019						December 31, 2018
	Unpaid						Unpaid
	Principal		Recorded		Related		Principal		Recorded		Related
	Balance		Investment		Allowance		Balance		Investment		Allowance
With no related Allowance:	(dollars in thousands)
Residential mortgage	$	6,534	$	6,339	$	—	$	7,054	$	6,808	$	—
Commercial		—		—		—		—		—		—
Commercial real estate		1,363		1,126		—		1,244		1,206		—
ADC		599		599		—		1,142		1,143		—
Home equity/2nds		1,010		566		—		1,290		859		—
Consumer		68		68		—		76		76		—
With a related Allowance:
Residential mortgage		5,053		4,933		799		5,888		5,771		927
Commercial		—		—		—		476		430		430
Commercial real estate		559		559		65		795		786		142
ADC		130		130		32		135		135		32
Home equity/2nds		13		13		2		13		12		2
Consumer		3		3		—		—		—		—
Totals:
Residential mortgage		11,587		11,272		799		12,942		12,579		927
Commercial		—		—		—		476		430		430
Commercial real estate		1,922		1,685		65		2,039		1,992		142
ADC		729		729		32		1,277		1,278		32
Home equity/2nds		1,023		579		2		1,303		871		2
Consumer		71		71		—		76		76		—


	Three Months Ended September 30,								Nine Months Ended September 30,
	2019				2018				2019				2018
	Average		Interest		Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized		Investment		Recognized		Investment		Recognized
With no related Allowance:	(dollars in thousands)
Residential mortgage	$	6,355	$	57	$	6,718	$	75	$	6,797	$	198	$	9,618	$	229
Commercial		—		—		6		—		—		—		59		—
Commercial real estate		1,259		15		1,572		21		1,215		52		1,240		56
ADC		599		8		674		7		925		22		547		20
Home equity/2nds		574		11		371		10		775		32		552		34
Consumer		68		1		—		—		52		4		—		—
With a related Allowance:
Residential mortgage		4,943		66		6,020		79		5,532		206		6,899		219
Commercial		—		—		—		—		108		—		—		—
Commercial real estate		561		6		774		4		660		25		1,243		19
ADC		130		2		176		2		133		6		1,103		9
Home equity/2nds		11		—		400		4		17		1		6		11
Consumer		3		—		79		1		22		—		81		2
Totals:
Residential mortgage		11,298		123		12,738		154		12,329		404		16,517		448
Commercial		—		—		6		—		108		—		59		—
Commercial real estate		1,820		21		2,346		25		1,875		77		2,483		75
ADC		729		10		850		9		1,058		28		1,650		29
Home equity/2nds		585		11		771		14		792		33		558		45
Consumer		71		1		79		1		74		4		81		2

Schedule of Troubled Debt Restructure Loans


	September 30, 2019
							Total	Total
	Number of	Accrual		Number of	Nonaccrual		Number of	Balance of
	Modifications	Status		Modifications	Status		Modifications	Modifications
	(dollars in thousands)
Residential mortgage	32	$	7,828	2	$	292	34	$	8,120
Commercial real estate	2		993	—		—	2		993
ADC	1		131	—		—	1		131
Consumer	3		71	—		—	3		71
	38	$	9,023	2	$	292	40	$	9,315


	December 31, 2018
							Total	Total
	Number of	Accrual		Number of	Nonaccrual		Number of	Balance of
	Modifications	Status		Modifications	Status		Modifications	Modifications
	(dollars in thousands)
Residential mortgage	36	$	9,469	3	$	446	39	$	9,915
Commercial real estate	2		1,019	—		—	2		1,019
ADC	1		134	—		—	1		134
Consumer	3		76	—		—	3		76
	42	$	10,698	3	$	446	45	$	11,144