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ALLOWANCE FOR LOAN LOSSES (Tables)
 9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Schedule of Activity in the Allowance for Loan Losses
Activity in the allowance for loan losses for the three and nine months ended September 30, 2018 and 2017 was as follows:
Business Activities Loans
 
At or for the Three Months Ended September 30, 2018
(in thousands)
 
Commercial
real estate
 
Commercial and industrial
 
Residential
real estate
 
Consumer
 
Total
Balance at beginning of period
 
$
6,367

 
$
2,509

 
$
3,454

 
$
393

 
$
12,723

Charged-off loans
 
(29
)
 
—

 
(61
)
 
(40
)
 
(130
)
Recoveries on charged-off loans
 
7

 
18

 
—

 
2

 
27

Provision (releases) for loan losses
 
291

 
(31
)
 
258

 
66

 
584

Balance at end of period
 
$
6,636

 
$
2,496

 
$
3,651

 
$
421

 
$
13,204

Individually evaluated for impairment
 
688

 
62

 
92

 
—

 
842

Collectively evaluated
 
5,948

 
2,434

 
3,559

 
421

 
12,362

Total
 
$
6,636

 
$
2,496

 
$
3,651

 
$
421

 
$
13,204


Business Activities Loans
 
At or for the Nine Months Ended September 30, 2018
(in thousands)
 
Commercial
real estate
 
Commercial and industrial
 
Residential
real estate
 
Consumer
 
Total
Balance at beginning of period
 
$
6,037

 
$
2,373

 
$
3,357

 
$
386

 
$
12,153

Charged-off loans
 
(186
)
 
(111
)
 
(61
)
 
(426
)
 
(784
)
Recoveries on charged-off loans
 
68

 
23

 
2

 
5

 
98

Provision (releases) for loan losses
 
717

 
211

 
353

 
456

 
1,737

Balance at end of period
 
$
6,636

 
$
2,496

 
$
3,651

 
$
421

 
$
13,204

Individually evaluated for impairment
 
688

 
62

 
92

 
—

 
842

Collectively evaluated
 
5,948

 
2,434

 
3,559

 
421

 
12,362

Total
 
$
6,636

 
$
2,496

 
$
3,651

 
$
421

 
$
13,204


Business Activities Loans
 
At or for the Three Months Ended September 30, 2017
(in thousands)
 
Commercial
real estate
 
Commercial and industrial
 
Residential
real estate
 
Consumer
 
Total
Balance at beginning of period
 
$
5,503

 
$
2,110

 
$
3,119

 
$
601

 
$
11,333

Charged-off loans
 
(12
)
 
—

 
(114
)
 
(49
)
 
(175
)
Recoveries on charged-off loans
 
49

 
24

 
66

 
6

 
145

Provision (releases) for loan losses
 
(200
)
 
41

 
430

 
3

 
274

Balance at end of period
 
$
5,340

 
$
2,175

 
$
3,501

 
$
561

 
$
11,577

Individually evaluated for impairment
 
391

 
2

 
44

 
55

 
492

Collectively evaluated
 
4,949

 
2,173

 
3,457

 
506

 
11,085

Total
 
$
5,340

 
$
2,175

 
$
3,501

 
$
561

 
$
11,577


Business Activities Loans
 
At or for the Nine Months Ended September 30, 2017
(in thousands)
 
Commercial
real estate
 
Commercial and industrial
 
Residential
real estate
 
Consumer
 
Total
Balance at beginning of period
 
$
5,145

 
$
1,952

 
$
2,721

 
$
601

 
$
10,419

Charged-off loans
 
(124
)
 
(187
)
 
(326
)
 
(95
)
 
(732
)
Recoveries on charged-off loans
 
52

 
56

 
67

 
19

 
194

Provision (releases) for loan losses
 
267

 
354

 
1,039

 
36

 
1,696

Balance at end of period
 
$
5,340

 
$
2,175

 
$
3,501

 
$
561

 
$
11,577

Individually evaluated for impairment
 
391

 
2

 
44

 
55

 
492

Collectively evaluated
 
4,949

 
2,173

 
3,457

 
506

 
11,085

Total
 
$
5,340

 
$
2,175

 
$
3,501

 
$
561

 
$
11,577



Acquired Loans
 
At or for the Three Months Ended September 30, 2018
(in thousands)
 
Commercial
real estate
 
Commercial and industrial
 
Residential
real estate
 
Consumer
 
Total
Balance at beginning of period
 
$
200

 
$
82

 
$
85

 
$
—

 
$
367

Charged-off loans
 
(30
)
 
(71
)
 
(62
)
 
(5
)
 
(168
)
Recoveries on charged-off loans
 
25

 
—

 
—

 
—

 
25

Provision (releases) for loan losses
 
(23
)
 
33

 
44

 
5

 
59

Balance at end of period
 
$
172

 
$
44

 
$
67

 
$
—

 
$
283

Individually evaluated for impairment
 
—

 
—

 
20

 
—

 
20

Collectively evaluated
 
172

 
44

 
47

 
—

 
263

Total
 
$
172

 
$
44

 
$
67

 
$
—

 
$
283


Acquired Loans
 
At or for the Nine Months Ended September 30, 2018
(in thousands)
 
Commercial
real estate
 
Commercial and industrial
 
Residential
real estate
 
Consumer
 
Total
Balance at beginning of period
 
$
97

 
$
16

 
$
59

 
$
—

 
$
172

Charged-off loans
 
(136
)
 
(166
)
 
(126
)
 
(64
)
 
(492
)
Recoveries on charged-off loans
 
43

 
7

 
—

 
82

 
132

Provision (releases) for loan losses
 
168

 
187

 
134

 
(18
)
 
471

Balance at end of period
 
$
172

 
$
44

 
$
67

 
$
—

 
$
283

Individually evaluated for impairment
 
—

 
—

 
20

 
—

 
20

Collectively evaluated
 
172

 
44

 
47

 
—

 
263

Total
 
$
172

 
$
44

 
$
67

 
$
—

 
$
283

Acquired Loans
 
At or for the Three Months Ended September 30, 2017
(in thousands)
 
Commercial
real estate
 
Commercial and industrial
 
Residential
real estate
 
Consumer
 
Total
Balance at beginning of period
 
$
51

 
$
24

 
$
34

 
$
—

 
$
109

Charged-off loans
 
(54
)
 
(18
)
 
(31
)
 
(19
)
 
(122
)
Recoveries on charged-off loans
 
—

 
—

 
—

 
—

 
—

Provision (releases) for loan losses
 
309

 
25

 
33

 
19

 
386

Balance at end of period
 
$
306

 
$
31

 
$
36

 
$
—

 
$
373

Individually evaluated for impairment
 
168

 
—

 
—

 
—

 
168

Collectively evaluated
 
138

 
31

 
36

 
—

 
205

Total
 
$
306

 
$
31

 
$
36

 
$
—

 
$
373


Acquired Loans
 
At or for the Nine Months Ended September 30, 2017
(in thousands)
 
Commercial
real estate
 
Commercial and industrial
 
Residential
real estate
 
Consumer
 
Total
Balance at beginning of period
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Charged-off loans
 
(54
)
 
(18
)
 
(31
)
 
(19
)
 
(122
)
Recoveries on charged-off loans
 
—

 
—

 
—

 
—

 
—

Provision (releases) for loan losses
 
360

 
49

 
67

 
19

 
495

Balance at end of period
 
$
306

 
$
31

 
$
36

 
$
—

 
$
373

Individually evaluated for impairment
 
168

 
—

 
—

 
—

 
168

Collectively evaluated
 
138

 
31

 
36

 
—

 
205

Total
 
$
306

 
$
31

 
$
36

 
$
—

 
$
373
Schedule of Loans by Risk Rating
The following tables present the Company’s loans by risk rating at September 30, 2018 and December 31, 2017:

Business Activities Loans
Commercial Real Estate
Credit Risk Profile by Creditworthiness Category
 
 
Construction and land development
 
Commercial real estate other
 
Total commercial real estate
(in thousands)
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
Grade:
 
 

 
 

 
 

 
 

 
 

 
 

Pass
 
$
37,451

 
$
28,180

 
$
523,294

 
$
483,711

 
$
560,745

 
$
511,891

Special mention
 
73

 
73

 
9,010

 
5,706

 
9,083

 
5,779

Substandard
 
1

 
639

 
13,069

 
15,702

 
13,070

 
16,341

Doubtful
 
—

 
—

 
2,268

 
—

 
2,268

 
—

Total
 
$
37,525

 
$
28,892

 
$
547,641

 
$
505,119

 
$
585,166

 
$
534,011


Commercial and Industrial
Credit Risk Profile by Creditworthiness Category
 
 
Other commercial
 
Agricultural
 
 Tax exempt loans
 
 Total commercial and industrial
(in thousands)
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
Grade:
 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
Pass
 
$
222,673

 
$
194,147

 
$
23,887

 
$
27,046

 
$
42,421

 
$
42,208

 
$
288,981

 
$
263,401

Special mention
 
1,496

 
1,933

 
139

 
63

 
157

 
157

 
1,792

 
2,153

Substandard
 
1,027

 
1,971

 
452

 
479

 
—

 
—

 
1,479

 
2,450

Doubtful
 
769

 
—

 
—

 
—

 
—

 
—

 
769

 
—

Total
 
$
225,965

 
$
198,051

 
$
24,478

 
$
27,588

 
$
42,578

 
$
42,365

 
$
293,021

 
$
268,004


Residential Real Estate and Consumer Loans
Credit Risk Profile Based on Payment Activity
 
 
Residential real estate
 
Home equity
 
Other consumer
 
Total residential real estate and consumer
(in thousands)
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
Performing
 
$
635,742

 
$
588,003

 
$
55,076

 
$
51,246

 
$
10,309

 
$
7,733

 
$
701,127

 
$
646,982

Nonperforming
 
7,296

 
3,408

 
462

 
130

 
100

 
95

 
7,858

 
3,633

Total
 
$
643,038

 
$
591,411

 
$
55,538

 
$
51,376

 
$
10,409

 
$
7,828

 
$
708,985

 
$
650,615


Acquired Loans
Commercial Real Estate
Credit Risk Profile by Creditworthiness Category
 
 
Commercial construction and land development
 
Commercial real estate other
 
Total commercial real estate
(in thousands)
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
Grade:
 
 

 
 

 
 

 
 

 
 

 
 

Pass
 
$
2,667

 
$
16,523

 
$
243,882

 
$
266,477

 
$
246,549

 
$
283,000

Special mention
 
—

 
235

 
1,723

 
2,440

 
1,723

 
2,675

Substandard
 
259

 
23

 
6,321

 
7,037

 
6,580

 
7,060

Doubtful
 
—

 
—

 
—

 
—

 
—

 
—

Total
 
$
2,926

 
$
16,781

 
$
251,926

 
$
275,954

 
$
254,852

 
$
292,735


Commercial and Industrial
Credit Risk Profile by Creditworthiness Category
 
 
Other commercial
 
Agricultural
 
 Tax exempt loans
 
Total commercial and industrial
(in thousands)
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
Grade:
 
  

 
 
 
  

 
  

 
  

 
  

 
  

 
  

Pass
 
$
48,495

 
$
60,300

 
$
—

 
$
—

 
$
39,252

 
$
43,350

 
$
87,747

 
$
103,650

Special mention
 
3,361

 
5,753

 
—

 
—

 
—

 
—

 
3,361

 
5,753

Substandard
 
1,382

 
2,016

 
—

 
—

 
—

 
—

 
1,382

 
2,016

Doubtful
 
303

 
—

 
—

 
—

 
—

 
—

 
303

 
—

Total
 
$
53,541

 
$
68,069

 
$
—

 
$
—

 
$
39,252

 
$
43,350

 
$
92,793

 
$
111,419


Residential Real Estate and Consumer Loans
Credit Risk Profile Based on Payment Activity
 
 
Residential real estate
 
Home equity
 
Other consumer
 
Total residential real estate and consumer
(in thousands)
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
 
Sep 30, 2018
 
Dec 31, 2017
Performing
 
$
493,349

 
$
562,516

 
$
49,492

 
$
62,000

 
$
1,635

 
$
2,283

 
$
544,476

 
$
626,799

Nonperforming
 
4,132

 
1,755

 
163

 
217

 
2

 
58

 
4,297

 
2,030

Total
 
$
497,481

 
$
564,271

 
$
49,655

 
$
62,217

 
$
1,637

 
$
2,341

 
$
548,773

 
$
628,829
Summary of Information About Total Loans Rated Special Mention or Lower
The following table summarizes information about total classified and criticized loans loans as of September 30, 2018 and December 31, 2017:

 
 
September 30, 2018
 
December 31, 2017
(in thousands)
 
Business
Activities Loans
 
Acquired  Loans
 
Total
 
Business Activities Loans
 
Acquired  Loans
 
Total
Non-accrual
 
$
17,809

 
$
3,965

 
$
21,774

 
$
12,140

 
$
2,156

 
$
14,296

Substandard accruing
 
7,635

 
8,597

 
16,232

 
10,284

 
7,833

 
18,117

Doubtful accruing
 
—

 
—

 
—

 
—

 
—

 
—

Total classified
 
25,444

 
12,562

 
38,006

 
22,424

 
9,989

 
32,413

Special mention
 
10,875

 
5,084

 
15,959

 
7,932

 
8,428

 
16,360

Total Criticized
 
$
36,319

 
$
17,646

 
$
53,965

 
$
30,356

 
$
18,417

 
$
48,773