LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2020

LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract]

Portfolio Loans

Loans are comprised of the following:

	September 30, 2020			December 31, 2019
Residential real estate	$	313,090		$	310,253
Commercial real estate:
Owner-occupied		52,214			55,825
Nonowner-occupied		161,934			131,398
Construction		35,247			34,913
Commercial and industrial		158,833			100,023
Consumer:
Automobile		56,370			63,770
Home equity		19,531			22,882
Other		55,819			53,710
		853,038			772,774
Less:  Allowance for loan losses		(7,730	)		(6,272	)
Loans, net	$	845,308		$	766,502

Activity in Allowance for Loan Losses by Portfolio Segment

The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2020 and 2019:

September 30, 2020	Residential Real Estate			Commercial Real Estate			Commercial and Industrial			Consumer			Total
Allowance for loan losses:
Beginning balance	$	2,024		$	2,700		$	1,649		$	1,608		$	7,981
Provision for loan losses		(275	)		(98	)		230			141			(2	)
Loans charged off		(90	)		—			(96	)		(398	)		(584	)
Recoveries		110			15			44			166			335
Total ending allowance balance	$	1,769		$	2,617		$	1,827		$	1,517		$	7,730

September 30, 2019	Residential Real Estate			Commercial Real Estate			Commercial and Industrial			Consumer			Total
Allowance for loan losses:
Beginning balance	$	1,973		$	2,222		$	1,095		$	2,111		$	7,401
Provision for loan losses		(165	)		(536	)		1,193			(48	)		444
Loans charged-off		(465	)		—			(1,168	)		(419	)		(2,052	)
Recoveries		80			92			11			177			360
Total ending allowance balance	$	1,423		$	1,778		$	1,131		$	1,821		$	6,153

The following table presents the activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2020 and 2019:

September 30, 2020	Residential Real Estate			Commercial Real Estate			Commercial and Industrial			Consumer			Total
Allowance for loan losses:
Beginning balance	$	1,250		$	1,928		$	1,447		$	1,647		$	6,272
Provision for loan losses		715			1,131			505			1,100			3,451
Loans charged-off		(340	)		(516	)		(185	)		(1,677	)		(2,718	)
Recoveries		144			74			60			447			725
Total ending allowance balance	$	1,769		$	2,617		$	1,827		$	1,517		$	7,730

September 30, 2019	Residential Real Estate			Commercial Real Estate			Commercial and Industrial			Consumer			Total
Allowance for loan losses:
Beginning balance	$	1,583		$	2,186		$	1,063		$	1,896		$	6,728
Provision for loan losses		96			(403	)		1,497			825			2,015
Loans charged-off		(872	)		(579	)		(1,512	)		(1,612	)		(4,575	)
Recoveries		616			574			83			712			1,985
Total ending allowance balance	$	1,423		$	1,778		$	1,131		$	1,821		$	6,153

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 of loans by portfolio segment and based on impairment method as of September 30, 2020 and December 31, 2019:

September 30, 2020	Residential Real Estate		Commercial Real Estate		Commercial and Industrial		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	43	$	—	$	—	$	43
Collectively evaluated for impairment		1,769		2,574		1,827		1,517		7,687
Total ending allowance balance	$	1,769	$	2,617	$	1,827	$	1,517	$	7,730
Loans:
Loans individually evaluated for impairment	$	417	$	4,130	$	2,536	$	485	$	7,568
Loans collectively evaluated for impairment		312,673		245,265		156,297		131,235		845,470
Total ending loans balance	$	313,090	$	249,395	$	158,833	$	131,720	$	853,038

December 31, 2019	Residential Real Estate		Commercial Real Estate		Commercial and Industrial		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	385	$	303	$	119	$	807
Collectively evaluated for impairment		1,250		1,543		1,144		1,528		5,465
Total ending allowance balance	$	1,250	$	1,928	$	1,447	$	1,647	$	6,272
Loans:
Loans individually evaluated for impairment	$	438	$	11,300	$	4,910	$	487	$	17,135
Loans collectively evaluated for impairment		309,815		210,836		95,113		139,875		755,639
Total ending loans balance	$	310,253	$	222,136	$	100,023	$	140,362	$	772,774

Loans Individually Evaluated for Impairment by Class of Loans

The following tables present information related to loans individually evaluated for impairment by class of loans as of September 30, 2020 and December 31, 2019:

September 30, 2020	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial real estate:
Nonowner-occupied	$	242	$	242	$	43
With no related allowance recorded:
Residential real estate		421		417		—
Commercial real estate:
Owner-occupied		3,157		3,157		—
Nonowner-occupied		731		731		—
Commercial and industrial		2,536		2,536		—
Consumer:
Home equity		485		485		—
Total	$	7,572	$	7,568	$	43

December 31, 2019	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial real estate:
Owner-occupied	$	2,030	$	2,030	$	385
Commercial and industrial		4,861		4,861		303
Consumer:
Automobile		8		8		8
Other		111		111		111
With no related allowance recorded:
Residential real estate		438		438		—
Commercial real estate:
Owner-occupied		1,778		1,778		—
Nonowner-occupied		7,492		7,492		—
Commercial and industrial		49		49		—
Consumer:
Home equity		368		368		—
Total	$	17,135	$	17,135	$	807

The following tables present information related to loans individually evaluated for impairment by class of loans for the three and  nine months ended September 30, 2020 and 2019:

	Three months ended September 30, 2020						Nine months ended September 30, 2020
	Average Impaired Loans		Interest Income Recognized		Cash Basis Interest Recognized		Average Impaired Loans		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial real estate:
Nonowner-occupied	$	242	$	—	$	—	$	242	$	—	$	—
With no related allowance recorded:
Residential real estate		420		7		7		426		15		15
Commercial real estate:
Owner-occupied		3,161		23		23		2,957		124		124
Nonowner-occupied		753		15		15		772		39		39
Commercial and industrial		2,807		20		20		3,543		149		149
Consumer:
Home equity		444		3		3		415		12		12
Total	$	7,827	$	68	$	68	$	8,355	$	339	$	339

	Three months ended September 30, 2019						Nine months ended September 30, 2019
	Average Impaired Loans		Interest Income Recognized		Cash Basis Interest Recognized		Average Impaired Loans		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
With no related allowance recorded:
Residential real estate	$	446	$	4	$	4	$	469	$	20	$	20
Commercial real estate:
Owner-occupied		3,349		53		53		3,144		167		167
Nonowner-occupied		7,949		142		142		6,243		370		370
Commercial and industrial		6,089		110		110		6,110		352		352
Consumer:
Home equity		175		15		15		87		15		15
Other		6		—		—		5		—		—
Total	$	18,014	$	324	$	324	$	16,058	$	924	$	924

Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days Still on Accrual by Class of Loans

The following table presents the recorded investment of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of September 30, 2020 and December 31, 2019:

September 30, 2020	Loans Past Due 90 Days And Still Accruing		Nonaccrual
Residential real estate	$	58	$	4,648
Commercial real estate:
Owner-occupied		—		208
Nonowner-occupied		—		597
Construction		—		167
Commercial and industrial		30		150
Consumer:
Automobile		56		155
Home equity		—		211
Other		46		31
Total	$	190	$	6,167

December 31, 2019	Loans Past Due 90 Days And Still Accruing		Nonaccrual
Residential real estate	$	255	$	6,119
Commercial real estate:
Owner-occupied		—		863
Nonowner-occupied		—		804
Construction		—		229
Commercial and industrial		—		590
Consumer:
Automobile		239		61
Home equity		—		392
Other		395		91
Total	$	889	$	9,149

Aging of Recorded Investment in Past Due Loans by Class of Loans

The following table presents the aging of the recorded investment of past due loans by class of loans as of September 30, 2020 and December 31, 2019:

September 30, 2020	30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Loans Not Past Due		Total
Residential real estate	$	2,515	$	1,134	$	1,337	$	4,986	$	308,104	$	313,090
Commercial real estate:
Owner-occupied		2,814		923		195		3,932		48,282		52,214
Nonowner-occupied		157		—		597		754		161,180		161,934
Construction		161		—		—		161		35,086		35,247
Commercial and industrial		104		21		180		305		158,528		158,833
Consumer:
Automobile		705		133		183		1,021		55,349		56,370
Home equity		145		84		112		341		19,190		19,531
Other		365		226		76		667		55,152		55,819
Total	$	6,966	$	2,521	$	2,680	$	12,167	$	840,871	$	853,038

December 31, 2019	30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Loans Not Past Due		Total
Residential real estate	$	4,015	$	1,314	$	1,782	$	7,111	$	303,142	$	310,253
Commercial real estate:
Owner-occupied		383		59		144		586		55,239		55,825
Nonowner-occupied		12		—		697		709		130,689		131,398
Construction		186		19		49		254		34,659		34,913
Commercial and industrial		1,320		312		241		1,873		98,150		100,023
Consumer:
Automobile		986		329		246		1,561		62,209		63,770
Home equity		106		18		279		403		22,479		22,882
Other		559		139		443		1,141		52,569		53,710
Total	$	7,567	$	2,190	$	3,881	$	13,638	$	759,136	$	772,774

Troubled Debt Restructuring Loan Modifications

The following table presents the types of TDR loan modifications by class of loans as of September 30, 2020 and December 31, 2019:

September 30, 2020	TDRs Performing to Modified Terms		TDRs Not Performing to Modified Terms		Total TDRs
Residential real estate:
Interest only payments	$	203	$	—	$	203
Commercial real estate:
Owner-occupied
Interest only payments		—		—		—
Reduction of principal and interest payments		1,494		—		1,494
Maturity extension at lower stated rate than market rate		354		—		354
Credit extension at lower stated rate than market rate		386		—		386
Nonowner-occupied
Credit extension at lower stated rate than market rate		391		—		391
Commercial and industrial:
Interest only payments		2,536		—		2,536
Total TDRs	$	5,364	$	—	$	5,364

December 31, 2019	TDRs Performing to Modified Terms		TDRs Not Performing to Modified Terms		Total TDRs
Residential real estate:
Interest only payments	$	209	$	—	$	209
Commercial real estate:
Owner-occupied
Interest only payments		882		—		882
Reduction of principal and interest payments		1,521		—		1,521
Maturity extension at lower stated rate than market rate		393		—		393
Credit extension at lower stated rate than market rate		393		—		393
Nonowner-occupied
Credit extension at lower stated rate than market rate		395		—		395
Commercial and industrial:
Interest only payments		4,574		—		4,574
Reduction of principal and interest payments		185		—		185
Total TDRs	$	8,552	$	—	$	8,552

Troubled Debt Restructurings on Financing Receivables Pre And Post Modification

There were no TDR loan modifications that occurred during the three and nine months ended September 30, 2020. Furthermore, there were no TDR loan modifications that occurred during the three months ended September 30, 2019. The following table presents the pre- and post-modification balances of TDR loan modifications by class of loans that occurred during the  nine months ended September 30, 2019:

			TDRs Performing to Modified Terms				TDRs Not Performing to Modified Terms
Nine months ended September 30, 2019	Number of Loans		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Pre-Modification Recorded Investment		Post-Modification Recorded Investment
Residential real estate:
Interest only payments		1	$	292	$	292	$	—	$	—
Commercial and Industrial:
Interest only payments		1		282		282
Total TDRs		2	$	574	$	574	$	—	$	—

Financing Receivable Credit Quality Indicators

Criticized and classified loans will mostly consist of commercial and industrial and commercial real estate loans. The Company considers its loans that do not meet the criteria for a criticized and classified asset rating as pass rated loans, which will include loans graded from 1 (Prime) to 7 (Watch). All commercial loans are categorized into a risk category either at the time of origination or reevaluation date. As of September 30, 2020 and December 31, 2019, and based on the most recent analysis performed, the risk category of commercial loans by class of loans was as follows:

September 30, 2020	Pass		Criticized		Classified		Total
Commercial real estate:
Owner-occupied	$	46,934	$	682	$	4,598	$	52,214
Nonowner-occupied		154,757		6,031		1,146		161,934
Construction		35,247		—		—		35,247
Commercial and industrial		154,048		1,773		3,012		158,833
Total	$	390,986	$	8,486	$	8,756	$	408,228

December 31, 2019	Pass		Criticized		Classified		Total
Commercial real estate:
Owner-occupied	$	49,486	$	2,889	$	3,450	$	55,825
Nonowner-occupied		123,847		—		7,551		131,398
Construction		34,864		—		49		34,913
Commercial and industrial		89,749		298		9,976		100,023
Total	$	297,946	$	3,187	$	21,026	$	322,159

Recorded Investment of Residential and Consumer Loans

For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment of residential and consumer loans by class of loans based on repayment activity as of September 30, 2020 and December 31, 2019:

September 30, 2020	Consumer						Residential
	Automobile		Home Equity		Other		Real Estate		Total
Performing	$	56,159	$	19,320	$	55,742	$	308,384	$	439,605
Nonperforming		211		211		77		4,706		5,205
Total	$	56,370	$	19,531	$	55,819	$	313,090	$	444,810

December 31, 2019	Consumer						Residential
	Automobile		Home Equity		Other		Real Estate		Total
Performing	$	63,470	$	22,490	$	53,224	$	303,879	$	443,063
Nonperforming		300		392		486		6,374		7,552
Total	$	63,770	$	22,882	$	53,710	$	310,253	$	450,615