XML 30 R20.htm IDEA: XBRL DOCUMENT v3.20.2
LOANS (Tables)
 9 Months Ended
Sep. 30, 2020
LOANS [Abstract]  
Major Classifications of Loans
Major classifications of loans at September 30, 2020 and December 31, 2019 are summarized as follows:

  
2020
    
2019
  
Residential real estate
  
$
386,540
    
$
389,985
  
Multifamily real estate
    
35,905
      
36,684
  
Commercial real estate:
                
Owner occupied
    
162,108
      
164,218
  
Non-owner occupied
    
308,478
      
304,316
  
Commercial and industrial
    
91,146
      
105,079
  
SBA PPP
    
113,478
      
–
  
Consumer
    
25,420
      
29,007
  
Construction and land
    
111,221
      
136,138
  
All other
    
34,185
      
29,868
  
   
$
1,268,481
    
$
1,195,295
  
Activity in the Allowance for Loan Losses by Portfolio Segment
Activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2020 was as follows:

Loan Class
  
Balance
December 31, 2019
    
Provision (credit)
for loan losses
    
Loans
charged-off
    
Recoveries
    
Balance
September 30, 2020
  
                               
Residential real estate
  
$
1,711
    
$
262
    
$
(95
)
  
$
11
    
$
1,889
  
Multifamily real estate
    
1,954
      
494
      
(2,183
)
    
–
      
265
  
Commercial real estate:
                                        
Owner occupied
    
2,441
      
637
      
(566
)
    
7
      
2,519
  
Non-owner occupied
    
3,184
      
1,562
      
(226
)
    
3
      
4,523
  
Commercial and industrial
    
1,767
      
(162
)
    
(5
)
    
45
      
1,645
  
Consumer
    
281
      
66
      
(155
)
    
47
      
239
  
Construction and land
    
1,724
      
(615
)
    
(4
)
    
55
      
1,160
  
All other
    
480
      
111
      
(135
)
    
77
      
533
  
Total
  
$
13,542
    
$
2,355
    
$
(3,369
)
  
$
245
    
$
12,773
  

Activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2019 was as follows:

Loan Class
  
Balance
December 31, 2018
    
Provision (credit)
for loan losses
    
Loans
charged-off
    
Recoveries
    
Balance
September 30, 2019
  
                               
Residential real estate
  
$
1,808
    
$
165
    
$
(121
)
  
$
34
    
$
1,886
  
Multifamily real estate
    
1,649
      
143
      
–
      
7
      
1,799
  
Commercial real estate:
                                        
Owner occupied
    
2,120
      
700
      
(533
)
    
5
      
2,292
  
Non-owner occupied
    
3,058
      
334
      
(57
)
    
2
      
3,337
  
Commercial and industrial
    
1,897
      
191
      
(393
)
    
48
      
1,743
  
Consumer
    
351
      
125
      
(175
)
    
34
      
335
  
Construction and land
    
2,255
      
(349
)
    
(14
)
    
–
      
1,892
  
All other
    
600
      
6
      
(171
)
    
92
      
527
  
Total
  
$
13,738
    
$
1,315
    
$
(1,464
)
  
$
222
    
$
13,811
  


Activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2020 was as follows:

Loan Class
  
Balance
June 30, 2020
    
Provision (credit)
for loan losses
    
Loans
charged-off
    
Recoveries
    
Balance
September 30, 2020
  
                               
Residential real estate
  
$
1,915
    
$
(26
)
  
$
(1
)
  
$
1
    
$
1,889
  
Multifamily real estate
    
2,115
      
333
      
(2,183
)
    
–
      
265
  
Commercial real estate:
                                        
Owner occupied
    
2,470
      
47
      
–
      
2
      
2,519
  
Non-owner occupied
    
4,310
      
362
      
(149
)
    
–
      
4,523
  
Commercial and industrial
    
1,554
      
85
      
–
      
6
      
1,645
  
Consumer
    
230
      
52
      
(56
)
    
13
      
239
  
Construction and land
    
1,233
      
(86
)
    
(4
)
    
17
      
1,160
  
All other
    
561
      
(2
)
    
(41
)
    
15
      
533
  
Total
  
$
14,388
    
$
765
    
$
(2,434
)
  
$
54
    
$
12,773
  

Activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2019 was as follows:

Loan Class
  
Balance
June 30, 2019
    
Provision (credit)
for loan losses
    
Loans
charged-off
    
Recoveries
    
Balance
September 30, 2019
  
                               
Residential real estate
  
$
1,880
    
$
61
    
$
(62
)
  
$
7
    
$
1,886
  
Multifamily real estate
    
1,716
      
78
      
–
      
5
      
1,799
  
Commercial real estate:
                                        
Owner occupied
    
1,790
      
500
      
–
      
2
      
2,292
  
Non-owner occupied
    
3,280
      
57
      
–
      
–
      
3,337
  
Commercial and industrial
    
2,000
      
13
      
(280
)
    
10
      
1,743
  
Consumer
    
368
      
(4
)
    
(35
)
    
6
      
335
  
Construction and land
    
2,140
      
(247
)
    
(1
)
    
–
      
1,892
  
All other
    
599
      
(33
)
    
(74
)
    
35
      
527
  
Total
  
$
13,773
    
$
425
    
$
(452
)
  
$
65
    
$
13,811
  
Purchased Impaired Loans
The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected.  The carrying amount of those loans is as follows at September 30, 2020 and December 31, 2019.
  
2020
    
2019
  
Residential real estate
  
$
2,348
    
$
2,565
  
Commercial real estate
                
Owner occupied
    
1,044
      
1,804
  
Non-owner occupied
    
2,428
      
2,628
  
Commercial and industrial
    
17
      
305
  
Consumer
    
13
      
22
  
Construction and land
    
409
      
483
  
All other
    
175
      
174
  
Total carrying amount
  
$
6,434
    
$
7,981
  
Contractual principal balance
  
$
9,633
    
$
11,681
  
                 
Carrying amount, net of allowance
  
$
6,434
    
$
7,981
  
Purchase Loans Accretable Yield, or Income Expected to be Collected
The accretable yield, or income expected to be collected, on the purchased loans above is as follows at September 30, 2020 and September 30, 2019.

  
2020
    
2019
  
Balance at January 1
  
$
619
    
$
642
  
New loans purchased
    
–
      
–
  
Accretion of income
    
(147
)
    
(149
)
Loans placed on non-accrual
    
–
      
–
  
Income recognized upon full repayment
    
(65
)
    
(74
)
Reclassifications to accretable difference
    
–
      
–
  
Disposals
    
(190
)
    
–
  
Balance at September 30
  
$
217
    
$
419
  
Past Due and Non-performing Loans
The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2020 and December 31, 2019.  The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition and interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.

September 30, 2020
  
Principal Owed
on Non-accrual
Loans
    
Recorded
Investment in
Non-accrual Loans
    
Loans Past Due
Over 90 Days,
still accruing
  
                   
Residential real estate
  
$
5,583
    
$
4,340
    
$
975
  
Commercial real estate
                        
Owner occupied
    
2,132
      
1,677
      
–
  
Non-owner occupied
    
3,357
      
2,315
      
–
  
Commercial and industrial
    
1,346
      
784
      
–
  
Consumer
    
194
      
125
      
–
  
Construction and land
    
394
      
341
      
149
  
All other
    
14
      
–
      
–
  
Total
  
$
13,020
    
$
9,582
    
$
1,124
  

December 31, 2019
  
Principal
Owed on Non-
accrual Loans
    
Recorded
Investment in
Non-accrual Loans
    
Loans Past Due
Over 90 Days,
still accruing
  
                   
Residential real estate
  
$
5,801
    
$
4,618
    
$
1,425
  
Multifamily real estate
    
4,113
      
3,726
      
–
  
Commercial real estate
                        
Owner occupied
    
3,399
      
2,995
      
–
  
Non-owner occupied
    
3,120
      
1,852
      
340
  
Commercial and industrial
    
1,026
      
420
      
451
  
Consumer
    
364
      
313
      
9
  
Construction and land
    
470
      
440
      
3
  
All other
    
75
      
73
      
–
  
Total
  
$
18,368
    
$
14,437
    
$
2,228
  
Aging of Recorded Investment in Past Due Loans by Loan Class
The following table presents the aging of the recorded investment in past due loans as of September 30, 2020 by class of loans:

Loan Class
  
Total
Loans
    
30-89 Days
Past Due
    
Greater than
90 Days
Past Due
    
Total
Past Due
    
Loans Not
Past Due
  
                               
Residential real estate
  
$
386,540
    
$
4,163
    
$
2,637
    
$
6,800
    
$
379,740
  
Multifamily real estate
    
35,905
      
–
      
–
      
–
      
35,905
  
Commercial real estate:
                                        
Owner occupied
    
162,108
      
590
      
316
      
906
      
161,202
  
Non-owner occupied
    
308,478
      
1,129
      
1,228
      
2,357
      
306,121
  
Commercial and industrial
    
91,146
      
157
      
651
      
808
      
90,338
  
SBA PPP
    
113,478
      
–
      
–
      
–
      
113,478
  
Consumer
    
25,420
      
125
      
42
      
167
      
25,253
  
Construction and land
    
111,221
      
–
      
213
      
213
      
111,008
  
All other
    
34,185
      
–
      
–
      
–
      
34,185
  
Total
  
$
1,268,481
    
$
6,164
    
$
5,087
    
$
11,251
    
$
1,257,230
  

The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 by class of loans:

Loan Class
  
Total
Loans
    
30-89 Days
Past Due
    
Greater than
90 Days
Past Due
    
Total
Past Due
    
Loans Not
Past Due
  
                               
Residential real estate
  
$
389,985
    
$
9,479
    
$
3,192
    
$
12,671
    
$
377,314
  
Multifamily real estate
    
36,684
      
–
      
3,726
      
3,726
      
32,958
  
Commercial real estate:
                                        
Owner occupied
    
164,218
      
337
      
1,199
      
1,536
      
162,682
  
Non-owner occupied
    
304,316
      
838
      
1,017
      
1,855
      
302,461
  
Commercial and industrial
    
105,079
      
245
      
708
      
953
      
104,126
  
Consumer
    
29,007
      
309
      
230
      
539
      
28,468
  
Construction and land
    
136,138
      
3,856
      
4
      
3,860
      
132,278
  
All other
    
29,868
      
–
      
73
      
73
      
29,795
  
Total
  
$
1,195,295
    
$
15,064
    
$
10,149
    
$
25,213
    
$
1,170,082
  
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2020:

  
Allowance for Loan Losses
    
Loan Balances
  
Loan Class
  
Individually
Evaluated for
Impairment
    
Collectively
Evaluated for
Impairment
    
Acquired with
Deteriorated
Credit Quality
    
Total
    
Individually
Evaluated for
Impairment
    
Collectively
Evaluated for
Impairment
    
Acquired with
Deteriorated
Credit Quality
    
Total
  
                                                 
Residential real estate
  
$
–
    
$
1,889
    
$
–
    
$
1,889
    
$
59
    
$
384,133
    
$
2,348
    
$
386,540
  
Multifamily real estate
    
–
      
265
      
–
      
265
      
–
      
35,905
      
–
      
35,905
  
Commercial real estate:
                                                                
Owner occupied
    
–
      
2,519
      
–
      
2,519
      
1,402
      
159,662
      
1,044
      
162,108
  
Non-owner occupied
    
303
      
4,220
      
–
      
4,523
      
1,917
      
304,133
      
2,428
      
308,478
  
Commercial and industrial
    
448
      
1,197
      
–
      
1,645
      
743
      
90,386
      
17
      
91,146
  
SBA PPP
    
–
      
–
      
–
      
–
      
–
      
113,478
      
–
      
113,478
  
Consumer
    
–
      
239
      
–
      
239
      
–
      
25,407
      
13
      
25,420
  
Construction and land
    
–
      
1,160
      
–
      
1,160
      
270
      
110,542
      
409
      
111,221
  
All other
    
–
      
533
      
–
      
533
      
–
      
34,010
      
175
      
34,185
  
Total
  
$
751
    
$
12,022
    
$
–
    
$
12,773
    
$
4,391
    
$
1,257,656
    
$
6,434
    
$
1,268,481
  

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019:

  
Allowance for Loan Losses
    
Loan Balances
  
Loan Class
  
Individually
Evaluated for
Impairment
    
Collectively
Evaluated for
Impairment
    
Acquired with
Deteriorated
Credit Quality
    
Total
    
Individually
Evaluated for
Impairment
    
Collectively
Evaluated for
Impairment
    
Acquired with
Deteriorated
Credit Quality
    
Total
  
                                                 
Residential real estate
  
$
–
    
$
1,711
    
$
–
    
$
1,711
    
$
63
    
$
387,357
    
$
2,565
    
$
389,985
  
Multifamily real estate
    
1,737
      
217
      
–
      
1,954
      
3,726
      
32,958
      
–
      
36,684
  
Commercial real estate:
                                                                
Owner occupied
    
653
      
1,788
      
–
      
2,441
      
2,685
      
159,729
      
1,804
      
164,218
  
Non-owner occupied
    
271
      
2,913
      
–
      
3,184
      
3,830
      
297,858
      
2,628
      
304,316
  
Commercial and industrial
    
390
      
1,377
      
–
      
1,767
      
678
      
104,096
      
305
      
105,079
  
Consumer
    
–
      
281
      
–
      
281
      
–
      
28,985
      
22
      
29,007
  
Construction and land
    
51
      
1,673
      
–
      
1,724
      
431
      
135,224
      
483
      
136,138
  
All other
    
–
      
480
      
–
      
480
      
–
      
29,694
      
174
      
29,868
  
Total
  
$
3,102
    
$
10,440
    
$
–
    
$
13,542
    
$
11,413
    
$
1,175,901
    
$
7,981
    
$
1,195,295
  
Loans Individually Evaluated for Impairment by Class of Loans
The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2020.  The table includes $689,000 of loans acquired with deteriorated credit quality for which the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.

  
Unpaid
Principal
Balance
    
Recorded
Investment
    
Allowance for
Loan Losses
Allocated
  
With no related allowance recorded:
                  
Residential real estate
  
$
179
    
$
59
    
$
-
  
Commercial real estate
                        
Owner occupied
    
2,149
      
1,718
      
-
  
Non-owner occupied
    
1,655
      
778
      
-
  
Commercial and industrial
    
509
      
–
      
-
  
Construction and land
    
321
      
270
      
-
  
     
4,813
      
2,825
      
-
  
With an allowance recorded:
                        
Commercial real estate
                        
Non-owner occupied
    
1,671
      
1,512
      
303
  
Commercial and industrial
    
769
      
743
      
448
  
     
2,440
      
2,255
      
751
  
Total
  
$
7,253
    
$
5,080
    
$
751
  


The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019.  The table includes $758,000 of loans acquired with deteriorated credit quality for which the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.

  
Unpaid
Principal
Balance
    
Recorded
Investment
    
Allowance for
Loan Losses
Allocated
  
With no related allowance recorded:
                  
Residential real estate
  
$
188
    
$
63
    
$
-
  
Multifamily real estate
    
96
      
89
      
-
  
Commercial real estate
                        
Owner occupied
    
2,201
      
1,842
      
-
  
Non-owner occupied
    
2,512
      
1,732
      
-
  
Commercial and industrial
    
509
      
–
      
-
  
     
5,506
      
3,726
      
-
  
With an allowance recorded:
                        
Multifamily real estate
  
$
4,017
    
$
3,637
    
$
1,737
  
Commercial real estate
                        
Owner occupied
    
1,189
      
1,162
      
653
  
Non-owner occupied
    
2,654
      
2,537
      
271
  
Commercial and industrial
    
689
      
678
      
390
  
Construction and land
    
460
      
431
      
51
  
     
9,009
      
8,445
      
3,102
  
Total
  
$
14,515
    
$
12,171
    
$
3,102
  
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized
The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the nine months ended September 30, 2020 and September 30, 2019.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

  
Nine Months Ended September 30, 2020
    
Nine Months Ended September 30, 2019
  
Loan Class
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Cash Basis
Interest
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Cash Basis
Interest
Recognized
  
                                     
Residential real estate
  
$
61
    
$
–
    
$
–
    
$
217
    
$
–
    
$
–
  
Multifamily real estate
    
2,808
      
–
      
–
      
3,823
      
–
      
–
  
Commercial real estate:
                                                
Owner occupied
    
2,073
      
8
      
8
      
3,779
      
10
      
10
  
Non-owner occupied
    
3,855
      
75
      
75
      
9,009
      
664
      
664
  
Commercial and industrial
    
739
      
3
      
3
      
517
      
3
      
3
  
Construction and land
    
332
      
–
      
–
      
910
      
123
      
123
  
Total
  
$
9,868
    
$
86
    
$
86
    
$
18,255
    
$
800
    
$
800
  

The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three months ended September 30, 2020 and September 30, 2019.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

  
Three months ended September 30, 2020
    
Three months ended September 30, 2019
  
Loan Class
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Cash Basis
Interest
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Cash Basis
Interest
Recognized
  
                                     
Residential real estate
  
$
60
    
$
–
    
$
–
    
$
170
    
$
–
    
$
–
  
Multifamily real estate
    
1,854
      
–
      
–
      
3,768
      
–
      
–
  
Commercial real estate:
                                                
Owner occupied
    
1,738
      
5
      
5
      
3,683
      
4
      
4
  
Non-owner occupied
    
3,347
      
39
      
39
      
7,439
      
478
      
478
  
Commercial and industrial
    
753
      
2
      
2
      
535
      
1
      
1
  
Construction and land
    
287
      
–
      
–
      
480
      
2
      
2
  
Total
  
$
8,039
    
$
46
    
$
46
    
$
16,075
    
$
485
    
$
485
  
Troubled Debt Restructurings
The following table presents TDR’s as of September 30, 2020 and December 31, 2019:

September 30, 2020
  
TDR’s on
Non-accrual
    
Other
TDR’s
    
Total
TDR’s
  
                   
Residential real estate
  
$
23
    
$
204
    
$
227
  
Commercial real estate
                        
Owner occupied
    
–
      
199
      
199
  
Non-owner occupied
    
856
      
–
      
856
  
Commercial and industrial
    
184
      
–
      
184
  
Total
  
$
1,063
    
$
403
    
$
1,466
  

December 31, 2019
  
TDR’s on
Non-accrual
    
Other
TDR’s
    
Total
TDR’s
  
                   
Residential real estate
  
$
32
    
$
157
    
$
189
  
Multifamily real estate
    
3,636
      
–
      
3,636
  
Commercial real estate
                        
Owner occupied
    
1,162
      
207
      
1,369
  
Non-owner occupied
    
–
      
2,656
      
2,656
  
Commercial and industrial
    
191
      
–
      
191
  
Total
  
$
5,021
    
$
3,020
    
$
8,041
  
Loans Modified under CARES Act
The following table presents the status of the remaining loans as of September 30, 2020 with some degree of payment modification under the CARES Act.

September 30, 2020
  
Modified to
Interest Only
Payment
    
Modified to Defer
Principal and
Interest Payment
    
Total
  
                   
Residential real estate
  
$
1,739
    
$
415
    
$
2,154
  
Multifamily real estate
    
-
      
671
      
671
  
Commercial real estate
                        
Owner occupied
    
4,732
      
6,580
      
11,312
  
Non-owner occupied
    
14,466
      
19,626
      
34,092
  
Commercial and industrial
    
974
      
99
      
1,073
  
Construction and land
    
4,219
      
14,550
      
18,769
  
Total
  
$
26,130
    
$
41,941
    
$
68,071
  
Risk Category of Loans by Class of Loans
As of September 30, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class
  
Pass
    
Special
Mention
    
Substandard
    
Doubtful
    
Total
Loans
  
                               
Residential real estate
  
$
372,551
    
$
2,973
    
$
11,016
    
$
–
    
$
386,540
  
Multifamily real estate
    
33,444
      
2,461
      
–
      
–
      
35,905
  
Commercial real estate:
                                        
Owner occupied
    
154,564
      
3,627
      
3,917
      
–
      
162,108
  
Non-owner occupied
    
296,137
      
9,487
      
2,854
      
–
      
308,478
  
Commercial and industrial
    
86,182
      
3,238
      
1,726
      
–
      
91,146
  
SBA PPP
    
113,478
      
–
      
–
      
–
      
113,478
  
Consumer
    
25,224
      
1
      
195
      
–
      
25,420
  
Construction and land
    
106,928
      
3,628
      
665
      
–
      
111,221
  
All other
    
34,125
      
–
      
60
      
–
      
34,185
  
Total
  
$
1,222,633
    
$
25,415
    
$
20,433
    
$
–
    
$
1,268,481
  

As of December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class
  
Pass
    
Special
Mention
    
Substandard
    
Doubtful
    
Total
Loans
  
                               
Residential real estate
  
$
374,835
    
$
3,477
    
$
11,673
    
$
-
    
$
389,985
  
Multifamily real estate
    
28,103
      
4,855
      
3,726
      
-
      
36,684
  
Commercial real estate:
                                        
Owner occupied
    
152,695
      
5,123
      
6,400
      
-
      
164,218
  
Non-owner occupied
    
290,096
      
8,617
      
5,603
      
-
      
304,316
  
Commercial and industrial
    
101,085
      
2,693
      
1,301
      
-
      
105,079
  
Consumer
    
28,618
      
5
      
384
      
-
      
29,007
  
Construction and land
    
123,473
      
11,868
      
797
      
-
      
136,138
  
All other
    
29,698
      
97
      
73
      
-
      
29,868
  
Total
  
$
1,128,603
    
$
36,735
    
$
29,957
    
$
-
    
$
1,195,295