Loans (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of major classifications of loans


	December 31, 2018		December 31, 2017
Commercial	$	314,323	$	272,851
Leases		78,806		68,325
Real estate - commercial		820,941		750,991
Real estate - construction		108,390		85,162
Real estate - residential		407,068		313,397
HELOC		140,442		112,833
Other 1		14,439		13,383
Total loans, excluding deferred loan costs and PCI loans		1,884,409		1,616,942
Net deferred loan costs		1,653		680
Total loans, excluding PCI loans		1,886,062		1,617,622
PCI loans, net of purchase accounting adjustments		10,965		-
Total loans	$	1,897,027	$	1,617,622

Schedule of aged analysis of past due loans by class of loans

Aged analysis of past due loans by class of loans as of December 31, 2018, and December 31, 2017, were as follows:


															Recorded
															Investment
															90 days or
					90 Days or										Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past								Due and
December 31, 2018	Past Due		Past Due		Due		Due		Current		Nonaccrual		Total Loans		Accruing
Commercial	$	58	$	-	$	352	$	410	$	313,913	$	-	$	314,323	$	361
Leases		-		-		-		-		78,806		-		78,806		-
Real estate - commercial
Owner occupied general purpose		1,768		-		33		1,801		160,892		1,579		164,272		36
Owner occupied special purpose		826		135		-		961		192,426		395		193,782		-
Non-owner occupied general purpose		2,832		203		-		3,035		286,115		4,236		293,386		-
Non-owner occupied special purpose		-		-		-		-		106,036		3,099		109,135		-
Retail properties		-		620		-		620		45,968		-		46,588		-
Farm		-		-		-		-		13,778		-		13,778		-
Real estate - construction
Homebuilder		-		-		-		-		5,102		-		5,102		-
Land		266		-		-		266		2,478		-		2,744		-
Commercial speculative		-		-		350		350		55,060		-		55,410		355
All other		-		-		-		-		45,028		106		45,134		-
Real estate - residential
Investor		801		156		-		957		69,148		353		70,458		-
Multi-family		545		-		179		724		195,504		-		196,228		180
Owner occupied		1,241		705		-		1,946		135,360		3,076		140,382		-
HELOC		775		-		-		775		138,801		866		140,442		-
Other 1		53		5		3		61		16,000		31		16,092		3
Total, excluding PCI loans	$	9,165	$	1,824	$	917	$	11,906	$	1,860,415	$	13,741	$	1,886,062	$	935
PCI loans, net of purchase accounting adjustments		1,452		-		-		1,452		7,248		2,265		10,965		-
Total	$	10,617	$	1,824	$	917	$	13,358	$	1,867,663	$	16,006	$	1,897,027	$	935


															Recorded
															Investment
															90 days or
					90 Days or										Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past								Due and
December 31, 2017	Past Due		Past Due		Due		Due		Current		Nonaccrual		Total Loans		Accruing
Commercial	$	995	$	275	$	-	$	1,270	$	271,581	$	-	$	272,851	$	-
Leases		-		-		-		-		68,147		178		68,325		-
Real estate - commercial
Owner occupied general purpose		1,136		-		-		1,136		144,267		455		145,858		-
Owner occupied special purpose		226		-		-		226		170,546		342		171,114		-
Non-owner occupied general purpose		-		593		-		593		273,203		1,163		274,959		-
Non-owner occupied special purpose		-		-		248		248		92,923		-		93,171		254
Retail properties		-		-		-		-		49,538		1,081		50,619		-
Farm		-		-		-		-		15,270		-		15,270		-
Real estate - construction
Homebuilder		129		-		-		129		2,221		-		2,350		-
Land		1,124		-		-		1,124		1,319		-		2,443		-
Commercial speculative		-		-		-		-		32,028		-		32,028		-
All other		-		-		-		-		48,140		201		48,341		-
Real estate - residential
Investor		-		-		-		-		55,248		372		55,620		-
Multi-family		-		-		-		-		125,049		4,723		129,772		-
Owner occupied		74		-		-		74		123,257		4,674		128,005		-
HELOC		491		278		-		769		110,872		1,192		112,833		-
Other 1		37		-		-		37		14,019		7		14,063		-
Total	$	4,212	$	1,146	$	248	$	5,606	$	1,597,628	$	14,388	$	1,617,622	$	254

1 The “Other” class includes consumer loans, overdrafts and net deferred costs.

Schedule of credit quality indicators by class of loans


December 31, 2018			Special
	Pass		Mention		Substandard 2		Doubtful		Total
Commercial	$	305,993	$	8,193	$	137	$	-	$	314,323
Leases		78,806		-		-		-		78,806
Real estate - commercial
Owner occupied general purpose		157,334		1,660		5,278		-		164,272
Owner occupied special purpose		186,218		3,429		4,135		-		193,782
Non-owner occupied general purpose		284,818		202		8,366		-		293,386
Non-owner occupied special purpose		104,526		1,510		3,099		-		109,135
Retail Properties		44,805		-		1,783		-		46,588
Farm		11,307		1,249		1,222		-		13,778
Real estate - construction
Homebuilder		5,102		-		-		-		5,102
Land		2,744		-		-		-		2,744
Commercial speculative		55,410		-		-		-		55,410
All other		42,524		-		2,610		-		45,134
Real estate - residential
Investor		69,242		-		1,216		-		70,458
Multi-family		195,249		-		979		-		196,228
Owner occupied		135,858		-		4,524		-		140,382
HELOC		138,553		-		1,889		-		140,442
Other 1		16,061		-		31		-		16,092
Total, excluding PCI loans	$	1,834,550	$	16,243	$	35,269	$	-	$	1,886,062
PCI loans, net of purchase accounting adjustments		907		2,906		7,152		-		10,965
Total	$	1,835,457	$	19,149	$	42,421	$	-	$	1,897,027


December 31, 2017			Special
	Pass		Mention		Substandard 2		Doubtful		Total
Commercial	$	270,889	$	1,962	$	-	$	-	$	272,851
Leases		67,500		-		825		-		68,325
Real estate - commercial
Owner occupied general purpose		142,843		1,927		1,088		-		145,858
Owner occupied special purpose		169,621		1,152		341		-		171,114
Non-owner occupied general purpose		271,731		2,065		1,163		-		274,959
Non-owner occupied special purpose		89,582		-		3,589		-		93,171
Retail Properties		48,321		1,217		1,081		-		50,619
Farm		11,755		1,029		2,486		-		15,270
Real estate - construction
Homebuilder		2,350		-		-		-		2,350
Land		2,443		-		-		-		2,443
Commercial speculative		32,028		-		-		-		32,028
All other		46,913		1,052		376		-		48,341
Real estate - residential
Investor		55,172		-		448		-		55,620
Multi-family		125,049		-		4,723		-		129,772
Owner occupied		122,178		561		5,266		-		128,005
HELOC		110,934		-		1,899		-		112,833
Other 1		14,043		-		20		-		14,063
Total	$	1,583,352	$	10,965	$	23,305	$	-	$	1,617,622

1 The “Other” class includes consumer, overdrafts and net deferred costs.

2 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans.

Schedule of impaired loans by class of loan


	December 31, 2018						December 31, 2017
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded
Commercial	$	-	$	-	$	-	$	-	$	-	$	-
Leases		-		-		-		178		213		-
Commercial real estate
Owner occupied general purpose		1,659		1,782		-		455		495		-
Owner occupied special purpose		395		530		-		342		498		-
Non-owner occupied general purpose		1,138		1,159		-		1,163		1,538		-
Non-owner occupied special purpose		-		-		-		-		-		-
Retail properties		-		-		-		1,081		1,177		-
Farm		-		-		-		-		-		-
Construction
Homebuilder		-		-		-		-		-		-
Land		-		-		-		-		-		-
Commercial speculative		-		-		-		-		-		-
All other		49		73		-		201		229		-
Residential
Investor		353		459		-		372		676		-
Multi-family		-		-		-		4,723		4,965		-
Owner occupied		3,359		4,882		-		5,208		6,680		-
HELOC		884		1,003		-		1,125		1,313		-
Other 1		7		7		-		7		8		-
Total impaired loans with no recorded allowance		7,844		9,895		-		14,855		17,792		-


With an allowance recorded
Commercial		-		-		-		-		-		-
Leases		-		-		-		-		-		-
Commercial real estate
Owner occupied general purpose		396		396		3		-		-		-
Owner occupied special purpose		-		-		-		-		-		-
Non-owner occupied general purpose		3,098		4,038		97		-		-		-
Non-owner occupied special purpose		3,099		3,575		139		-		-		-
Retail properties		-		-		-		-		-		-
Farm		-		-		-		-		-		-
Construction
Homebuilder		-		-		-		-		-		-
Land		-		-		-		-		-		-
Commercial speculative		-		-		-		-		-		-
All other		57		58		1		-		-		-
Residential
Investor		808		808		4		829		829		10
Multi-family		-		-		-		-		-		-
Owner occupied		3,676		3,679		46		3,443		3,443		43
HELOC		1,357		1,357		49		985		985		91
Other 1		24		25		13		-		-		-
Total impaired loans with a recorded allowance		12,515		13,936		352		5,257		5,257		144
Total impaired loans	$	20,359	$	23,831	$	352	$	20,112	$	23,049	$	144

1 The “Other” class includes consumer loans and overdraft.

Average recorded investment and interest income recognized on impaired loans by class of loan for the years ending December 31 were as follows:


	Years Ended				Years Ended				Years Ended
	December 31, 2018				December 31, 2017				December 31, 2016
	Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized		Investment		Recognized
With no related allowance recorded
Commercial	$	-	$	-	$	120	$	-	$	155	$	-
Lease		89		-		272		-		183		-
Commercial real estate
Owner occupied general purpose		1,057		8		1,168		-		2,098		87
Owner occupied special purpose		369		-		364		-		574		-
Non-owner occupied general purpose		1,150		-		1,453		-		1,395		2
Non-owner occupied special purpose		-		-		507		-		507		-
Retail properties		541		-		1,130		-		589		-
Farm		-		-		-		-		636		-
Construction
Homebuilder		-		-		-		-		-		-
Land		-		-		-		-		-		-
Commercial speculative		-		-		37		-		79		-
All other		125		-		204		-		103		-
Residential
Investor		362		-		1,106		-		1,874		47
Multi-family		2,362		-		2,362		-		-		-
Owner occupied		4,283		39		7,516		44		10,181		158
HELOC		1,005		1		1,804		1		2,608		29
Other 1		7		-		4		-		-		-
Total impaired loans with no recorded allowance		11,350		48		18,047		45		20,982		323


With an allowance recorded
Commercial		-		-		-		-		2		-
Leases		-		-		-		-		-		-
Commercial real estate
Owner occupied general purpose		198		29		-		-		-		-
Owner occupied special purpose		-		-		-		-		-		-
Non-owner occupied general purpose		1,549		-		123		-		123		-
Non-owner occupied special purpose		1,549		-		-		-		-		-
Retail properties		-		-		-		-		-		-
Farm		-		-		-		-		-		-
Construction
Homebuilder		-		-		-		-		-		-
Land		-		-		-		-		-		-
Commercial speculative		-		-		-		-		-		-
All other		29		-		-		-		-		-
Residential
Investor		818		43		414		43		-		-
Multi-family		-		-		-		-		-		-
Owner occupied		3,560		150		2,123		123		457		-
HELOC		1,171		56		493		35		23		-
Other 1		12		-		-		-		-		-
Total impaired loans with a recorded allowance		8,886		278		3,153		201		605		-
Total impaired loans	$	20,236	$	326	$	21,200	$	246	$	21,587	$	323

Schedule of TDRs modified during the period by type of modification

Loans that were modified during the period are summarized as follows:


	TDR Modifications
	Years Ended December 31, 2018
	# of	Pre-modification		Post-modification
	contracts	recorded investment		recorded investment
Troubled debt restructurings
Real estate - commercial
Owner occupied general purpose
Other1	1	$	427	$	396
Owner occupied special purpose
Other1	1		110		46
Real estate - construction
All other
Hamp2	1		58		56
Real estate - residential
Owner occupied
HAMP2	4		502		443
Other1	1		34		29
HELOC
HAMP2	3		117		115
Rate3	1		24		24
Other1	9		622		600
Total	21	$	1,894	$	1,709


	TDR Modifications
	Years Ended December 31, 2017
	# of	Pre-modification		Post-modification
	contracts	recorded investment		recorded investment
Troubled debt restructurings
Real estate - commercial
Other1	1	$	97	$	131
Real estate - residential
Owner occupied
HAMP2	2		184		189
Other1	1		41		42
Revolving and junior liens
HAMP2	1		49		49
Other1	6		319		350
Total	11	$	690	$	761

1 Other: Change of terms from bankruptcy court

2 HAMP: Home Affordable Modification Program

Schedule of accretable discount on purchased loans


	Accretable Discount - Non-PCI Loans		Accretable Discount - PCI Loans		Non-Accretable Discount - PCI Loans		Total
Beginning balance, January 1, 2018	$	835	$	-	$	-	$	835
Purchases		3,182		1,551		6,536		11,269
Accretion		(1,777)		(424)		(434)		(2,635)
Transfer1		(373)		(28)		(133)		(534)
Ending balance, December 31, 2018	$	1,867	$	1,099	$	5,969	$	8,935

Schedule of loans to principal officers, directors, and their affiliates, made in the ordinary course of business


	2018		2017
Beginning balance	$	1,524	$	1,703
New loans		89		20
Repayments and other reductions		(196)		(199)
Change in related party status		-		-
Ending balance	$	1,417	$	1,524