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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Summary of Loan Portfolio, Excluding Residential Loans Held for Sale, Broken Out by Classes

The following table presents the loan portfolio by segment and class, excluding residential LHFS, at March 31, 2019 and December 31, 2018.

(Dollars in thousands)			March 31, 2019						December 31, 2018
Commercial real estate:
Owner occupied			$	123,100					$	129,650
Non-owner occupied			264,869						252,794
Multi-family			83,009						78,933
Non-owner occupied residential			101,312						100,367
Acquisition and development:
1-4 family residential construction			6,361						7,385
Commercial and land development			49,784						42,051
Commercial and industrial			169,651						160,964
Municipal			50,599						50,982
Residential mortgage:
First lien			231,243						235,296
Home equity - term			11,828						12,208
Home equity - lines of credit			143,308						143,616
Installment and other loans			30,475						33,411
Total Loans (1)			$	1,265,539					$	1,247,657

⁽¹⁾ Includes $127,049,000 and $135,009,000 of acquired loans at March 31, 2019 and December 31, 2018.

Bank's Ratings Based on its Internal Risk Rating System

The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at March 31, 2019 and December 31, 2018.

(Dollars in thousands)			Pass						Special Mention						Non-Impaired Substandard						Impaired - Substandard						Doubtful						PCI Loans						Total
March 31, 2019
Commercial real estate:
Owner occupied			$	117,176					$	1,379					$	899					$	1,802					$	0					$	1,844					$	123,100
Non-owner occupied			253,207						11,034						0						0						0						628						264,869
Multi-family			74,935						6,535						709						123						0						707						83,009
Non-owner occupied residential			97,201						2,113						1,176						294						0						528						101,312
Acquisition and development:
1-4 family residential construction			5,711						650						0						0						0						0						6,361
Commercial and land development			48,983						49						577						0						0						175						49,784
Commercial and industrial			149,895						11,700						2,744						266						0						5,046						169,651
Municipal			50,599						0						0						0						0						0						50,599
Residential mortgage:
First lien			226,174						0						0						2,636						0						2,433						231,243
Home equity - term			11,793						0						0						13						0						22						11,828
Home equity - lines of credit			142,451						132						10						715						0						0						143,308
Installment and other loans			30,320						0						0						10						0						145						30,475
			$	1,208,445					$	33,592					$	6,115					$	5,859					$	0					$	11,528					$	1,265,539
December 31, 2018
Commercial real estate:
Owner occupied			$	121,903					$	3,024					$	987					$	1,880					$	0					$	1,856					$	129,650
Non-owner occupied			242,136						10,008						0						0						0						650						252,794
Multi-family			71,482						5,886						717						131						0						717						78,933
Non-owner occupied residential			97,590						736						1,197						309						0						535						100,367
Acquisition and development:
1-4 family residential construction			7,385						0						0						0						0						0						7,385
Commercial and land development			41,251						25						583						0						0						192						42,051
Commercial and industrial			150,286						2,278						2,940						286						0						5,174						160,964
Municipal			50,982						0						0						0						0						0						50,982
Residential mortgage:
First lien			229,971						0						0						2,877						0						2,448						235,296
Home equity - term			12,170						0						0						16						0						22						12,208
Home equity - lines of credit			142,638						165						15						798						0						0						143,616
Installment and other loans			33,229						15						1						0						0						166						33,411
			$	1,201,023					$	22,137					$	6,440					$	6,297					$	0					$	11,760					$	1,247,657

Impaired Loans by Class

The following table, which excludes PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at March 31, 2019 and December 31, 2018. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and any partial charge-off will be recorded when final information is received.

			Impaired Loans with a Specific Allowance																														Impaired Loans with No Specific Allowance
(Dollars in thousands)			Recorded Investment (Book Balance)						Unpaid Principal Balance (Legal Balance)						Related Allowance						Recorded Investment (Book Balance)						Unpaid Principal Balance (Legal Balance)
March 31, 2019
Commercial real estate:
Owner occupied			$	0					$	0					$	0					$	1,802					$	2,535
Multi-family			0						0						0						123						332
Non-owner occupied residential			0						0						0						294						624
Commercial and industrial			0						0						0						266						445
Residential mortgage:
First lien			455						460						35						2,181						2,801
Home equity - term			0						0						0						13						20
Home equity - lines of credit			0						0						0						715						994
Installment and other loans			0						0						0						10						18
			$	455					$	460					$	35					$	5,404					$	7,769
December 31, 2018
Commercial real estate:
Owner occupied			$	0					$	0					$	0					$	1,880					$	2,576
Multi-family			0						0						0						131						336
Non-owner occupied residential			0						0						0						309						632
Commercial and industrial			0						0						0						286						457
Residential mortgage:
First lien			743						743						38						2,134						2,727
Home equity - term			0						0						0						16						23
Home equity - lines of credit			0						0						0						798						1,081
			$	743					$	743					$	38					$	5,554					$	7,832

Average Recorded Investment in Impaired Loans and Related Interest Income

The following table, which excludes PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the three months ended March 31, 2019 and 2018.

			2019																		2018
(Dollars in thousands)			Average Impaired Balance						Interest Income Recognized						Average Impaired Balance						Interest Income Recognized
Commercial real estate:
Owner occupied			$	1,863					$	0					$	1,245					$	1
Non-owner occupied			0						0						4,021						0
Multi-family			127						0						161						0
Non-owner occupied residential			301						0						374						0
Acquisition and development:
1-4 family residential construction			0						0						286						0
Commercial and industrial			277						0						343						0
Residential mortgage:
First lien			2,788						15						3,741						15
Home equity - term			15						0						21						0
Home equity - lines of credit			758						0						496						0
Installment and other loans			7						0						11						0
			$	6,136					$	15					$	10,699					$	16

Troubled Debt Restructurings

The following table presents impaired loans that are TDRs, with the recorded investment at March 31, 2019 and December 31, 2018.

			March 31, 2019																		December 31, 2018
(Dollars in thousands)			Number of Contracts						Recorded Investment						Number of Contracts						Recorded Investment
Accruing:
Commercial real estate:
Owner occupied			1						$	34					1						$	39
Residential mortgage:
First lien			11						1,060						11						1,069
Home equity - lines of credit			1						22						1						24
			13						1,116						13						1,132
Nonaccruing:
Commercial real estate:
Owner occupied			1						36						1						37
Residential mortgage:
First lien			8						641						8						658
			9						677						9						695
			22						$	1,793					22						$	1,827

Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans

The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at March 31, 2019 and December 31, 2018.

									Days Past Due
(Dollars in thousands)			Current						30-59						60-89						90+ (still accruing)						Total Past Due						Non- Accrual						Total Loans
March 31, 2019
Commercial real estate:
Owner occupied			$	119,488					$	0					$	0					$	0					$	0					$	1,768					$	121,256
Non-owner occupied			264,241						0						0						0						0						0						264,241
Multi-family			82,179						0						0						0						0						123						82,302
Non-owner occupied residential			100,353						137						0						0						137						294						100,784
Acquisition and development:
1-4 family residential construction			6,361						0						0						0						0						0						6,361
Commercial and land development			49,609						0						0						0						0						0						49,609
Commercial and industrial			163,983						356						0						0						356						266						164,605
Municipal			50,599						0						0						0						0						0						50,599
Residential mortgage:
First lien			224,022						3,046						166						0						3,212						1,576						228,810
Home equity - term			11,782						0						11						0						11						13						11,806
Home equity - lines of credit			141,788						460						367						0						827						693						143,308
Installment and other loans			30,260						57						3						0						60						10						30,330
Subtotal			1,244,665						4,056						547						0						4,603						4,743						1,254,011
Loans acquired with credit deterioration:
Commercial real estate:
Owner occupied			1,771						0						0						73						73						0						1,844
Non-owner occupied			628						0						0						0						0						0						628
Multi-family			707						0						0						0						0						0						707
Non-owner occupied residential			528						0						0						0						0						0						528
Acquisition and development:
Commercial and land development			175						0						0						0						0						0						175
Commercial and industrial			4,821						225						0						0						225						0						5,046
Residential mortgage:
First lien			1,717						29						465						222						716						0						2,433
Home equity - term			17						0						5						0						5						0						22
Installment and other loans			128						17						0						0						17						0						145
Subtotal			10,492						271						470						295						1,036						0						11,528
			$	1,255,157					$	4,327					$	1,017					$	295					$	5,639					$	4,743					$	1,265,539

									Days Past Due
(Dollars in thousands)			Current						30-59						60-89						90+ (still accruing)						Total Past Due						Non- Accrual						Total Loans
December 31, 2018
Commercial real estate:
Owner occupied			$	125,887					$	66					$	0					$	0					$	66					$	1,841					$	127,794
Non-owner occupied			252,144						0						0						0						0						0						252,144
Multi-family			78,085						0						0						0						0						131						78,216
Non-owner occupied residential			99,268						226						29						0						255						309						99,832
Acquisition and development:
1-4 family residential construction			7,385						0						0						0						0						0						7,385
Commercial and land development			41,822						37						0						0						37						0						41,859
Commercial and industrial			154,988						411						105						0						516						286						155,790
Municipal			50,982						0						0						0						0						0						50,982
Residential mortgage:
First lien			228,714						1,592						734						0						2,326						1,808						232,848
Home equity - term			11,487						678						5						0						683						16						12,186
Home equity - lines of credit			142,394						420						28						0						448						774						143,616
Installment and other loans			33,135						66						44						0						110						0						33,245
Subtotal			1,226,291						3,496						945						0						4,441						5,165						1,235,897
Loans acquired with credit deterioration:
Commercial real estate:
Owner occupied			1,784						0						72						0						72						0						1,856
Non-owner occupied			650						0						0						0						0						0						650
Multi-family			717						0						0						0						0						0						717
Non-owner occupied residential			535						0						0						0						0						0						535
Acquisition and development:
Commercial and land development			192						0						0						0						0						0						192
Commercial and industrial			4,943						231						0						0						231						0						5,174
Residential mortgage:
First lien			1,971						382						42						53						477						0						2,448
Home equity - term			17						5						0						0						5						0						22
Installment and other loans			149						13						0						4						17						0						166
Subtotal			10,958						631						114						57						802						0						11,760
			$	1,237,249					$	4,127					$	1,059					$	57					$	5,243					$	5,165					$	1,247,657

Activity in Allowance for Loan Losses

The following table presents the activity in the ALL for the three months ended March 31, 2019 and 2018.

			Commercial																																																						Consumer
(Dollars in thousands)			Commercial Real Estate						Acquisition and Development						Commercial and Industrial						Municipal						Total						Residential Mortgage						Installment and Other						Total						Unallocated						Total
March 31, 2019
Balance, beginning of period			$	6,876					$	817					$	1,656					$	98					$	9,447					$	3,753					$	244					$	3,997					$	570					$	14,014
Provision for loan losses			103						150						159						0						412						189						(26)						163						(175)						400
Charge-offs			(25)						0						(43)						0						(68)						(246)						(20)						(266)						0						(334)
Recoveries			71						2						42						0						115						69						19						88						0						203
Balance, end of period			$	7,025					$	969					$	1,814					$	98					$	9,906					$	3,765					$	217					$	3,982					$	395					$	14,283
March 31, 2018
Balance, beginning of period			$	6,763					$	417					$	1,446					$	84					$	8,710					$	3,400					$	211					$	3,611					$	475					$	12,796
Provision for loan losses			7						92						144						(1)						242						(35)						7						(28)						(14)						200
Charge-offs			0						0						0						0						0						0						(71)						(71)						0						(71)
Recoveries			0						1						0						0						1						17						57						74						0						75
Balance, end of period			$	6,770					$	510					$	1,590					$	83					$	8,953					$	3,382					$	204					$	3,586					$	461					$	13,000

Summary of Ending Loan Balances Individually Evaluated for Impairment Based on Loan Segment

The following table summarizes the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at March 31, 2019 and December 31, 2018:

			Commercial																																																						Consumer
(Dollars in thousands)			Commercial Real Estate						Acquisition and Development						Commercial and Industrial						Municipal						Total						Residential Mortgage						Installment and Other						Total						Unallocated						Total
March 31, 2019
Loans allocated by:
Individually evaluated for impairment			$	2,219					$	0					$	266					$	0					$	2,485					$	3,364					$	10					$	3,374					$	0					$	5,859
Collectively evaluated for impairment			570,071						56,145						169,385						50,599						846,200						383,015						30,465						413,480						0						1,259,680
			$	572,290					$	56,145					$	169,651					$	50,599					$	848,685					$	386,379					$	30,475					$	416,854					$	0					$	1,265,539
ALL allocated by:
Individually evaluated for impairment			$	0					$	0					$	0					$	0					$	0					$	35					$	0					$	35					$	0					$	35
Collectively evaluated for impairment			7,025						969						1,814						98						9,906						3,730						217						3,947						395						14,248
			$	7,025					$	969					$	1,814					$	98					$	9,906					$	3,765					$	217					$	3,982					$	395					$	14,283
December 31, 2018
Loans allocated by:
Individually evaluated for impairment			$	2,320					$	0					$	286					$	0					$	2,606					$	3,691					$	0					$	3,691					$	0					$	6,297
Collectively evaluated for impairment			559,424						49,436						160,678						50,982						820,520						387,429						33,411						420,840						0						1,241,360
			$	561,744					$	49,436					$	160,964					$	50,982					$	823,126					$	391,120					$	33,411					$	424,531					$	0					$	1,247,657
ALL allocated by:
Individually evaluated for impairment			$	0					$	0					$	0					$	0					$	0					$	38					$	0					$	38					$	0					$	38
Collectively evaluated for impairment			6,876						817						1,656						98						9,447						3,715						244						3,959						570						13,976
			$	6,876					$	817					$	1,656					$	98					$	9,447					$	3,753					$	244					$	3,997					$	570					$	14,014

Schedule of Activity for the Accretable Yield of Purchased Impaired Loans

The following table provides activity for the accretable yield of purchased credit impaired loans for the three months ended March 31, 2019 and 2018.

															Three Months Ended
(Dollars in thousands)															March 31, 2019						March 31, 2018
Accretable yield, beginning of period															$	2,065					$	0
Accretion of income															(171)						0
Accretable yield, end of period															$	1,894					$	0

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Schedule Of Allowance For Loan And Lease Losses Table [Text Block]

+ References

No definition available.

+ Details

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- Definition

Schedule of Certain Loans Acquired In Transfer, Accretable Yield Movement

+ References

No definition available.

+ Details

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Namespace Prefix:	wfx_
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