XML 56 R41.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and Allowance for Loan and Lease Losses (Tables)
 12 Months Ended
Dec. 31, 2017
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]  
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating

The classes of the loan portfolio, summarized by the aggregate pass rating, net of deferred fees and costs of $464,000 and $196,000 as of December 31, 2017 and 2016, respectively, and the classified ratings of special mention, substandard, and doubtful within Mid Penn’s internal risk rating system as of December 31, 2017  and 2016, are noted below:

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

Pass

 

 

Special Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

Commercial and industrial

 

$

182,168

 

 

$

453

 

 

$

5,412

 

 

$

—

 

 

$

188,033

 

Commercial real estate

 

 

505,397

 

 

 

1,435

 

 

 

8,180

 

 

 

—

 

 

 

515,012

 

Commercial real estate - construction

 

 

61,667

 

 

 

182

 

 

 

487

 

 

 

—

 

 

 

62,336

 

Lease financing

 

 

229

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

229

 

Residential mortgage

 

 

97,814

 

 

 

157

 

 

 

1,062

 

 

 

—

 

 

 

99,033

 

Home equity

 

 

41,479

 

 

 

105

 

 

 

309

 

 

 

—

 

 

 

41,893

 

Consumer

 

 

3,868

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,868

 

 

 

$

892,622

 

 

$

2,332

 

 

$

15,450

 

 

$

—

 

 

$

910,404

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

Pass

 

 

Special Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

Commercial and industrial

 

$

170,780

 

 

$

937

 

 

$

801

 

 

$

—

 

 

$

172,518

 

Commercial real estate

 

 

437,592

 

 

 

1,683

 

 

 

7,249

 

 

 

—

 

 

 

446,524

 

Commercial real estate - construction

 

 

52,888

 

 

 

202

 

 

 

1,286

 

 

 

—

 

 

 

54,376

 

Lease financing

 

 

425

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

425

 

Residential mortgage

 

 

97,994

 

 

 

107

 

 

 

1,356

 

 

 

—

 

 

 

99,457

 

Home equity

 

 

37,242

 

 

 

142

 

 

 

224

 

 

 

—

 

 

 

37,608

 

Consumer

 

 

3,016

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,016

 

 

 

$

799,937

 

 

$

3,071

 

 

$

10,916

 

 

$

—

 

 

$

813,924

 

 
Impaired Loans by Loan Portfolio Class

Impaired loans by loan portfolio class as of December 31, 2017 and 2016 are summarized as follows:

 

 

 

December 31, 2017

 

 

December 31, 2016

 

(Dollars in thousands)

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

 

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

—

 

 

$

13

 

 

$

—

 

 

$

4

 

 

$

9

 

 

$

—

 

Commercial real estate

 

 

3,424

 

 

 

4,056

 

 

 

—

 

 

 

726

 

 

 

1,792

 

 

 

—

 

Commercial real estate - construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

618

 

 

 

618

 

 

 

—

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

760

 

 

 

877

 

 

 

—

 

 

 

848

 

 

 

882

 

 

 

—

 

Home equity

 

 

260

 

 

 

295

 

 

 

—

 

 

 

111

 

 

 

129

 

 

 

—

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded and acquired with credit deterioration:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate

 

 

555

 

 

 

555

 

 

 

—

 

 

 

842

 

 

 

842

 

 

 

—

 

Commercial real estate - construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

306

 

 

 

306

 

 

 

—

 

 

 

389

 

 

 

389

 

 

 

—

 

Home equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

4,434

 

 

$

4,460

 

 

$

136

 

 

$

56

 

 

$

62

 

 

$

6

 

Commercial real estate

 

 

1,423

 

 

 

1,589

 

 

 

293

 

 

 

2,520

 

 

 

2,646

 

 

 

711

 

Commercial real estate - construction

 

 

487

 

 

 

492

 

 

 

100

 

 

 

242

 

 

 

242

 

 

 

72

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

—

 

 

 

—

 

 

 

—

 

 

 

68

 

 

 

68

 

 

 

68

 

Home equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

29

 

 

 

49

 

 

 

1

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

4,434

 

 

$

4,473

 

 

$

136

 

 

$

60

 

 

$

71

 

 

$

6

 

Commercial real estate

 

 

5,402

 

 

 

6,200

 

 

 

293

 

 

 

4,088

 

 

 

5,280

 

 

 

711

 

Commercial real estate - construction

 

 

487

 

 

 

492

 

 

 

100

 

 

 

860

 

 

 

860

 

 

 

72

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

1,066

 

 

 

1,183

 

 

 

—

 

 

 

1,305

 

 

 

1,339

 

 

 

68

 

Home equity

 

 

260

 

 

 

295

 

 

 

—

 

 

 

140

 

 

 

178

 

 

 

1

 

 
Average Recorded Investment Of Impaired Loans And Related Interest Income By Loan Portfolio Class

The average recorded investment of impaired loans and related interest income recognized for the years ended December 31, 2017, 2016, and 2015 are summarized as follows:

 

 

 

December 31, 2017

 

 

December 31, 2016

 

 

December 31, 2015

 

(Dollars in thousands)

 

Average Recorded Investment

 

 

Interest Income Recognized

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

15

 

 

$

—

 

 

$

9

 

 

$

—

 

 

$

19

 

 

$

—

 

Commercial real estate

 

 

1,915

 

 

 

279

 

 

 

820

 

 

 

—

 

 

 

1,051

 

 

 

14

 

Commercial real estate - construction

 

 

164

 

 

 

—

 

 

 

124

 

 

 

—

 

 

 

—

 

 

 

—

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

890

 

 

 

18

 

 

 

821

 

 

 

21

 

 

 

816

 

 

 

8

 

Home equity

 

 

218

 

 

 

6

 

 

 

75

 

 

 

—

 

 

 

107

 

 

 

—

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded and acquired with credit deterioration:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

205

 

Commercial real estate

 

 

651

 

 

 

110

 

 

 

810

 

 

 

164

 

 

 

926

 

 

 

350

 

Commercial real estate - construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

332

 

 

 

—

 

 

 

378

 

 

 

4

 

 

 

400

 

 

 

—

 

Home equity

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

1,779

 

 

$

—

 

 

$

59

 

 

$

—

 

 

$

123

 

 

$

—

 

Commercial real estate

 

 

1,446

 

 

 

—

 

 

 

2,177

 

 

 

—

 

 

 

1,721

 

 

 

—

 

Commercial real estate - construction

 

 

488

 

 

 

—

 

 

 

48

 

 

 

—

 

 

 

—

 

 

 

—

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

—

 

 

 

—

 

 

 

14

 

 

 

—

 

 

 

25

 

 

 

—

 

Home equity

 

 

—

 

 

 

—

 

 

 

32

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

1,794

 

 

$

—

 

 

$

68

 

 

$

—

 

 

$

142

 

 

$

205

 

Commercial real estate

 

 

4,012

 

 

 

389

 

 

 

3,807

 

 

 

164

 

 

 

3,698

 

 

 

364

 

Commercial real estate - construction

 

 

652

 

 

 

—

 

 

 

172

 

 

 

—

 

 

 

—

 

 

 

—

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

1,222

 

 

 

18

 

 

 

1,213

 

 

 

25

 

 

 

1,241

 

 

 

8

 

Home equity

 

 

218

 

 

 

6

 

 

 

107

 

 

 

—

 

 

 

107

 

 

 

3

 

 
Non-accrual Loans by Classes of the Loan Portfolio

Nonaccrual loans by loan portfolio class as of December 31, 2017 and 2016 are summarized as follows:

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

2017

 

 

2016

 

Commercial and industrial

 

$

4,434

 

 

$

4

 

Commercial real estate

 

 

4,902

 

 

 

2,939

 

Commercial real estate - construction

 

 

487

 

 

 

860

 

Residential mortgage

 

 

492

 

 

 

715

 

Home equity

 

 

260

 

 

 

140

 

 

 

$

10,575

 

 

$

4,658

 

 
Loan Portfolio Summarized by the Past Due Status

The classes of the loan portfolio summarized by the past due status as of December 31, 2017 and 2016 are summarized as follows:

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

30-59 Days Past Due

 

 

60-89 Days Past Due

 

 

Greater than 90 Days

 

 

Total Past Due

 

 

Current

 

 

Total Loans

 

 

Loans Receivable > 90 Days and Accruing

 

Commercial and industrial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

4,439

 

 

$

16

 

 

$

—

 

 

$

4,455

 

 

$

183,578

 

 

$

188,033

 

 

$

—

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

—

 

 

 

—

 

 

 

3,669

 

 

 

3,669

 

 

 

510,788

 

 

 

514,457

 

 

 

—

 

Acquired with credit deterioration

 

 

500

 

 

 

—

 

 

 

55

 

 

 

555

 

 

 

-

 

 

 

555

 

 

 

—

 

Commercial real

   estate - construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - construction

 

 

—

 

 

 

—

 

 

 

487

 

 

 

487

 

 

 

61,849

 

 

 

62,336

 

 

 

—

 

Lease financing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

229

 

 

 

229

 

 

 

—

 

Residential mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

310

 

 

 

467

 

 

 

177

 

 

 

954

 

 

 

97,773

 

 

 

98,727

 

 

 

—

 

Acquired with credit deterioration

 

 

—

 

 

 

31

 

 

 

193

 

 

 

224

 

 

 

82

 

 

 

306

 

 

 

—

 

Home equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 

54

 

 

 

98

 

 

 

250

 

 

 

402

 

 

 

41,491

 

 

 

41,893

 

 

 

—

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

3

 

 

 

—

 

 

 

—

 

 

 

3

 

 

 

3,865

 

 

 

3,868

 

 

 

—

 

Total

 

$

5,306

 

 

$

612

 

 

$

4,831

 

 

$

10,749

 

 

$

899,655

 

 

$

910,404

 

 

$

—

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

30-59 Days Past Due

 

 

60-89 Days Past Due

 

 

Greater than 90 Days

 

 

Total Past Due

 

 

Current

 

 

Total Loans

 

 

Loans Receivable > 90 Days and Accruing

 

Commercial and industrial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

164

 

 

$

12

 

 

$

4

 

 

$

180

 

 

$

172,338

 

 

$

172,518

 

 

$

—

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

475

 

 

 

—

 

 

 

1,004

 

 

 

1,479

 

 

 

444,203

 

 

 

445,682

 

 

 

—

 

Acquired with credit deterioration

 

 

—

 

 

 

—

 

 

 

59

 

 

 

59

 

 

 

783

 

 

 

842

 

 

 

59

 

Commercial real

   estate - construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - construction

 

 

—

 

 

 

404

 

 

 

84

 

 

 

488

 

 

 

53,888

 

 

 

54,376

 

 

 

—

 

Lease financing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

425

 

 

 

425

 

 

 

—

 

Residential mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

548

 

 

 

124

 

 

 

237

 

 

 

909

 

 

 

98,159

 

 

 

99,068

 

 

 

—

 

Acquired with credit deterioration

 

 

—

 

 

 

—

 

 

 

238

 

 

 

238

 

 

 

151

 

 

 

389

 

 

 

—

 

Home equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity

 

 

33

 

 

 

13

 

 

 

125

 

 

 

171

 

 

 

37,437

 

 

 

37,608

 

 

 

—

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,016

 

 

 

3,016

 

 

 

—

 

Total

 

$

1,220

 

 

$

553

 

 

$

1,751

 

 

$

3,524

 

 

$

810,400

 

 

$

813,924

 

 

$

59

 

 
Allowance for Loan Losses and Recorded Investment in Financing Receivables

Activity in the allowance for loan and lease losses for the years ended December 31, 2017, 2016, and 2015, and the recorded investment in loans receivable as of December 31, 2017, 2016, and 2015 are as follows:

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

Commercial

and

industrial

 

 

Commercial

real

estate

 

 

Commercial

real estate -

construction

 

 

Lease

financing

 

 

Residential

mortgage

 

 

Home

equity

 

 

Consumer

 

 

Unallocated

 

 

Total

 

Allowance for

   loan and lease

   losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,580

 

 

$

4,323

 

 

$

144

 

 

$

1

 

 

$

541

 

 

$

379

 

 

$

3

 

 

$

212

 

 

$

7,183

 

Charge-offs

 

 

(25

)

 

 

(322

)

 

 

—

 

 

 

—

 

 

 

(102

)

 

 

(20

)

 

 

(28

)

 

 

—

 

 

 

(497

)

Recoveries

 

 

26

 

 

 

553

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

5

 

 

 

7

 

 

 

—

 

 

 

595

 

Provisions

 

 

214

 

 

 

(119

)

 

 

34

 

 

 

(1

)

 

 

(15

)

 

 

59

 

 

 

21

 

 

 

132

 

 

 

325

 

Ending balance

 

 

1,795

 

 

 

4,435

 

 

 

178

 

 

 

—

 

 

 

428

 

 

 

423

 

 

 

3

 

 

 

344

 

 

 

7,606

 

Ending balance:

   individually

   evaluated for

   impairment

 

 

136

 

 

 

293

 

 

 

100

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

529

 

Ending balance:

   collectively

   evaluated for

   impairment

 

$

1,659

 

 

$

4,142

 

 

$

78

 

 

$

-

 

 

$

428

 

 

$

423

 

 

$

3

 

 

$

344

 

 

$

7,077

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

188,033

 

 

$

515,012

 

 

$

62,336

 

 

$

229

 

 

$

99,033

 

 

$

41,893

 

 

$

3,868

 

 

$

—

 

 

$

910,404

 

Ending balance:

   individually

   evaluated for

   impairment

 

 

4,434

 

 

 

4,847

 

 

 

487

 

 

 

—

 

 

 

760

 

 

 

260

 

 

 

—

 

 

 

—

 

 

 

10,788

 

Ending balance:

   acquired with

   credit

   deterioration

 

 

—

 

 

 

555

 

 

 

—

 

 

 

—

 

 

 

306

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

861

 

Ending balance:

   collectively

   evaluated for

   impairment

 

$

183,599

 

 

$

509,610

 

 

$

61,849

 

 

$

229

 

 

$

97,967

 

 

$

41,633

 

 

$

3,868

 

 

$

—

 

 

$

898,755

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

Commercial and industrial

 

 

Commercial real estate

 

 

Commercial real estate - construction

 

 

Lease financing

 

 

Residential mortgage

 

 

Home equity

 

 

Consumer

 

 

Unallocated

 

 

Total

 

Allowance for

   loan and lease

   losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

1,393

 

 

$

3,552

 

 

$

153

 

 

$

1

 

 

$

534

 

 

$

317

 

 

$

12

 

 

$

206

 

 

$

6,168

 

Charge-offs

 

 

(820

)

 

 

(216

)

 

 

—

 

 

 

—

 

 

 

(4

)

 

 

(25

)

 

 

(42

)

 

 

—

 

 

 

(1,107

)

Recoveries

 

 

4

 

 

 

211

 

 

 

—

 

 

 

—

 

 

 

26

 

 

 

-

 

 

 

11

 

 

 

—

 

 

 

252

 

Provisions

 

 

1,003

 

 

 

776

 

 

 

(9

)

 

 

-

 

 

 

(15

)

 

 

87

 

 

 

22

 

 

 

6

 

 

 

1,870

 

Ending balance

 

 

1,580

 

 

 

4,323

 

 

 

144

 

 

 

1

 

 

 

541

 

 

 

379

 

 

 

3

 

 

 

212

 

 

 

7,183

 

Ending balance:

   individually

   evaluated for

   impairment

 

 

6

 

 

 

711

 

 

 

72

 

 

 

—

 

 

 

68

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

858

 

Ending balance:

   collectively

   evaluated for

   impairment

 

$

1,574

 

 

$

3,612

 

 

$

72

 

 

$

1

 

 

$

473

 

 

$

378

 

 

$

3

 

 

$

212

 

 

$

6,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

172,518

 

 

$

446,524

 

 

$

54,376

 

 

$

425

 

 

$

99,457

 

 

$

37,608

 

 

$

3,016

 

 

$

—

 

 

$

813,924

 

Ending balance:

   individually

   evaluated for

   impairment

 

 

60

 

 

 

3,246

 

 

 

860

 

 

 

—

 

 

 

916

 

 

 

140

 

 

 

—

 

 

 

—

 

 

 

5,222

 

Ending balance:

   acquired with

   credit

   deterioration

 

 

—

 

 

 

842

 

 

 

—

 

 

 

—

 

 

 

389

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,231

 

Ending balance:

   collectively

   evaluated for

   impairment

 

$

172,458

 

 

$

442,436

 

 

$

53,516

 

 

$

425

 

 

$

98,152

 

 

 

37,468

 

 

$

3,016

 

 

$

—

 

 

$

807,471

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

Commercial

and

industrial

 

 

Commercial

real

estate

 

 

Commercial

real estate -

construction

 

 

Lease

financing

 

 

Residential

mortgage

 

 

Home

equity

 

 

Consumer

 

 

Unallocated

 

 

Total

 

Allowance for

   loan and lease

   losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

1,393

 

 

$

3,925

 

 

$

33

 

 

$

2

 

 

$

450

 

 

$

653

 

 

$

35

 

 

$

225

 

 

$

6,716

 

Charge-offs

 

 

(130

)

 

 

(1,569

)

 

 

—

 

 

 

—

 

 

 

(35

)

 

 

(36

)

 

 

(14

)

 

 

—

 

 

 

(1,784

)

Recoveries

 

 

12

 

 

 

75

 

 

 

—

 

 

 

—

 

 

 

44

 

 

 

29

 

 

 

11

 

 

 

—

 

 

 

171

 

Provisions

 

 

118

 

 

 

1,121

 

 

 

120

 

 

 

(1

)

 

 

75

 

 

 

(329

)

 

 

(20

)

 

 

(19

)

 

 

1,065

 

Ending balance

 

 

1,393

 

 

 

3,552

 

 

 

153

 

 

 

1

 

 

 

534

 

 

 

317

 

 

 

12

 

 

 

206

 

 

 

6,168

 

Ending balance:

   individually

   evaluated for

   impairment

 

 

51

 

 

 

429

 

 

 

—

 

 

 

—

 

 

 

23

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

503

 

Ending balance:

   collectively

   evaluated for

   impairment

 

$

1,342

 

 

$

3,123

 

 

$

153

 

 

$

1

 

 

$

511

 

 

$

317

 

 

$

12

 

 

$

206

 

 

$

5,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

 

$

160,261

 

 

$

369,464

 

 

$

68,068

 

 

$

727

 

 

$

100,665

 

 

$

33,411

 

 

$

3,917

 

 

$

—

 

 

$

736,513

 

Ending balance:

   individually

   evaluated for

   impairment

 

 

127

 

 

 

2,970

 

 

 

—

 

 

 

—

 

 

 

1,361

 

 

 

115

 

 

 

—

 

 

 

—

 

 

 

4,573

 

Ending balance:

   acquired with

   credit

   deterioration

 

 

—

 

 

 

931

 

 

 

—

 

 

 

—

 

 

 

400

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,331

 

Ending balance:

   collectively

   evaluated for

   impairment

 

$

160,134

 

 

$

365,563

 

 

$

68,068

 

 

$

727

 

 

$

98,904

 

 

 

33,296

 

 

$

3,917

 

 

$

—

 

 

$

730,609

 

 
Troubled Debt Restructurings

The recorded investments in troubled debt restructured loans at December 31, 2017 and 2016 are as follows:

 

(Dollars in thousands)

Pre-Modification

 

 

Post-Modification

 

 

 

 

December 31, 2017

Outstanding Recorded

Investment

 

 

Outstanding Recorded

Investment

 

 

Recorded Investment

 

Commercial and industrial

$

4,110

 

 

$

4,460

 

 

$

4,434

 

Commercial real estate

 

5,735

 

 

 

5,581

 

 

 

4,593

 

Residential mortgage

 

691

 

 

 

689

 

 

 

544

 

 

$

10,536

 

 

$

10,730

 

 

$

9,571

 

 

(Dollars in thousands)

Pre-Modification

 

 

Post-Modification

 

 

 

 

December 31, 2016

Outstanding Recorded

Investment

 

 

Outstanding Recorded

Investment

 

 

Recorded Investment

 

Commercial and industrial

$

40

 

 

$

35

 

 

$

5

 

Commercial real estate

 

4,569

 

 

 

4,031

 

 

 

2,871

 

Residential mortgage

 

759

 

 

 

757

 

 

 

639

 

 

$

5,368

 

 

$

4,823

 

 

$

3,515

 

 
Schedule of Troubled Debt Restructurings Modified in the Period

The following table summarizes the loans whose terms have been modified resulting in troubled debt restructurings during the year ended December 31, 2017.

 

(Dollars in thousands)

 

 

 

Pre-Modification

 

 

Post-Modification

 

 

 

 

December 31, 2017

 

Number of Contracts

 

Outstanding Recorded Investment

 

 

Outstanding Recorded Investment

 

 

Recorded Investment

 

Commercial and industrial

 

1

 

$

4,110

 

 

$

4,460

 

 

$

4,434

 

Commercial real estate

 

9

 

 

3,212

 

 

 

3,150

 

 

 

3,140

 

 

 

10

 

$

7,322

 

 

$

7,610

 

 

$

7,574

 

 
Schedule of Accretion of Purchased Impaired Loan

The following table provides activity for the accretable yield of purchased impaired loans for the year ended December 31, 2017.

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

Accretable yield, January 1, 2017

 

$

67

 

Accretable yield amortized to interest income

 

 

(23

)

Reclassification from nonaccretable difference (a)

 

 

23

 

Accretable yield, December 31, 2017

 

$

67

 

 

 

(a)

Reclassification from non-accretable difference represents an increase to the estimated cash flows to be collected on the underlying portfolio.