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ALLOWANCE FOR LOAN LOSSES (Tables)
 9 Months Ended
Sep. 30, 2019
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, 2019 and 2018 are, as follows:
Business Activities Loans
 
At or for the Three Months Ended September 30, 2019
(in thousands)
 
Commercial
real estate
 
Commercial and industrial
 
Residential
real estate
 
Consumer
 
Total
Balance at beginning of period
 
$
7,206

 
$
2,748

 
$
3,942

 
$
394

 
$
14,290

Charged-off loans
 
—

 
—

 
(108
)
 
(55
)
 
(163
)
Recoveries on charged-off loans
 
1

 
62

 
36

 
1

 
100

(Releases) provision for loan losses
 
956

 
63

 
(111
)
 
(94
)
 
814

Balance at end of period
 
$
8,163

 
$
2,873

 
$
3,759

 
$
246

 
$
15,041

Individually evaluated for impairment
 
990

 
240

 
66

 
1

 
1,297

Collectively evaluated
 
7,173

 
2,633

 
3,693

 
245

 
13,744

Total
 
$
8,163

 
$
2,873

 
$
3,759

 
$
246

 
$
15,041

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired Loans
 
At or for the Three Months Ended September 30, 2019
(in thousands)
 
Commercial
real estate
 
Commercial and industrial
 
Residential
real estate
 
Consumer
 
Total
Balance at beginning of period
 
$
159

 
$
22

 
$
101

 
$
—

 
$
282

Charged-off loans
 
—

 
—

 
(52
)
 
—

 
(52
)
Recoveries on charged-off loans
 
—

 
—

 
—

 
3

 
3

(Releases) provision for loan losses
 
(2
)
 
(15
)
 
99

 
(3
)
 
79

Balance at end of period
 
$
157

 
$
7

 
$
148

 
$
—

 
$
312

Individually evaluated for impairment
 
12

 
—

 
32

 
—

 
44

Collectively evaluated
 
145

 
7

 
116

 
—

 
268

Total
 
$
157

 
$
7

 
$
148

 
$
—

 
$
312


Business Activities Loans
 
At or for the Nine Months Ended September 30, 2019
(in thousands)
 
Commercial
real estate
 
Commercial and industrial
 
Residential
real estate
 
Consumer
 
Total
Balance at beginning of period
 
$
6,811

 
$
2,380

 
$
3,982

 
$
408

 
$
13,581

Charged-off loans
 
(57
)
 
(13
)
 
(110
)
 
(129
)
 
(309
)
Recoveries on charged-off loans
 
131

 
62

 
55

 
8

 
256

(Releases) provision for loan losses
 
1,278

 
444

 
(168
)
 
(41
)
 
1,513

Balance at end of period
 
$
8,163

 
$
2,873

 
$
3,759

 
$
246

 
$
15,041

Individually evaluated for impairment
 
990

 
240

 
66

 
1

 
1,297

Collectively evaluated
 
7,173

 
2,633

 
3,693

 
245

 
13,744

Total
 
$
8,163

 
$
2,873

 
$
3,759

 
$
246

 
$
15,041


Acquired Loans
 
At or for the Nine Months Ended September 30, 2019
(in thousands)
 
Commercial
real estate
 
Commercial and industrial
 
Residential
real estate
 
Consumer
 
Total
Balance at beginning of period
 
$
173

 
$
35

 
$
77

 
$
—

 
$
285

Charged-off loans
 
—

 
(15
)
 
(222
)
 
(5
)
 
(242
)
Recoveries on charged-off loans
 
—

 
—

 
—

 
3

 
3

(Releases) provision for loan losses
 
(16
)
 
(13
)
 
293

 
2

 
266

Balance at end of period
 
$
157

 
$
7

 
$
148

 
$
—

 
$
312

Individually evaluated for impairment
 
12

 
—

 
32

 
—

 
44

Collectively evaluated
 
145

 
7

 
116

 
—

 
268

Total
 
$
157

 
$
7

 
$
148

 
$
—

 
$
312


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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

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 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


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
Schedule of Loans by Risk Rating
The following tables present the Company’s loans by risk rating at September 30, 2019 and December 31, 2018:

Business Activities Loans
Commercial Real Estate
 
 
Commercial construction and land development
 
Commercial real estate other
 
Total commercial real estate
(in thousands)
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
Grade:
 
 

 
 

 
 

 
 

 
 

 
 

Pass
 
$
28,728

 
$
23,680

 
$
647,075

 
$
532,386

 
$
675,803

 
$
556,066

Special mention
 
—

 
73

 
12,474

 
8,319

 
12,474

 
8,392

Substandard
 
73

 
—

 
10,212

 
13,914

 
10,285

 
13,914

Doubtful
 
1

 
1

 
3,124

 
1,361

 
3,125

 
1,362

Total
 
$
28,802

 
$
23,754

 
$
672,885

 
$
555,980

 
$
701,687

 
$
579,734

Acquired Loans
Commercial Real Estate
 
 
Commercial construction and land development
 
Commercial real estate other
 
Total commercial real estate
(in thousands)
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
Grade:
 
 

 
 

 
 

 
 

 
 

 
 

Pass
 
$
1,765

 
$
2,626

 
$
212,859

 
$
236,393

 
$
214,624

 
$
239,019

Special mention
 
12

 
—

 
1,962

 
1,574

 
1,974

 
1,574

Substandard
 
287

 
264

 
5,033

 
6,009

 
5,320

 
6,273

Doubtful
 
—

 
—

 
168

 
99

 
168

 
99

Total
 
$
2,064

 
$
2,890

 
$
220,022

 
$
244,075

 
$
222,086

 
$
246,965


Business Activities Loans
Commercial and Industrial
 
 
Commercial
 
Agricultural
 
 Tax exempt loans
 
 Total commercial and industrial
(in thousands)
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
Grade:
 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
Pass
 
$
219,962

 
$
226,353

 
$
20,413

 
$
21,680

 
$
66,043

 
$
56,588

 
$
306,418

 
$
304,621

Special mention
 
14,000

 
6,730

 
346

 
215

 
—

 
—

 
14,346

 
6,945

Substandard
 
4,922

 
924

 
447

 
422

 
—

 
—

 
5,369

 
1,346

Doubtful
 
1,010

 
750

 
—

 
—

 
—

 
—

 
1,010

 
750

Total
 
$
239,894

 
$
234,757

 
$
21,206

 
$
22,317

 
$
66,043

 
$
56,588

 
$
327,143

 
$
313,662


Acquired Loans
Commercial and Industrial
 
 
Commercial
 
Agricultural
 
 Tax exempt loans
 
Total commercial and industrial
(in thousands)
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
Grade:
 
  

 
 
 
  

 
  

 
  

 
  

 
  

 
  

Pass
 
$
37,111

 
$
46,120

 
$
—

 
$
—

 
$
35,073

 
$
38,738

 
$
72,184

 
$
84,858

Special mention
 
2,511

 
4,825

 
—

 
—

 
—

 
—

 
2,511

 
4,825

Substandard
 
527

 
1,222

 
—

 
—

 
—

 
—

 
527

 
1,222

Doubtful
 
341

 
303

 
—

 
—

 
—

 
—

 
341

 
303

Total
 
$
40,490

 
$
52,470

 
$
—

 
$
—

 
$
35,073

 
$
38,738

 
$
75,563

 
$
91,208


Business Activities Loans
Residential Real Estate and Consumer Loans
 
 
Residential real estate
 
Home equity
 
Other consumer
 
Total residential real estate and consumer
(in thousands)
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
Performing
 
$
727,239

 
$
665,976

 
$
57,992

 
$
57,652

 
$
10,209

 
$
9,324

 
$
795,440

 
$
732,952

Nonperforming
 
3,277

 
4,213

 
564

 
246

 
25

 
90

 
3,866

 
4,549

Total
 
$
730,516

 
$
670,189

 
$
58,556

 
$
57,898

 
$
10,234

 
$
9,414

 
$
799,306

 
$
737,501


Acquired Loans
Residential Real Estate and Consumer Loans
 
 
Residential real estate
 
Home equity
 
Other consumer
 
Total residential real estate and consumer
(in thousands)
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
 
Sep 30, 2019
 
Dec 31, 2018
Performing
 
$
409,830

 
$
470,497

 
$
37,446

 
$
45,090

 
$
985

 
$
1,356

 
$
448,261

 
$
516,943

Nonperforming
 
3,106

 
4,012

 
154

 
201

 
—

 
1

 
3,260

 
4,214

Total
 
$
412,936

 
$
474,509

 
$
37,600

 
$
45,291

 
$
985

 
$
1,357

 
$
451,521

 
$
521,157
Summary of Information About Total Loans Rated Special Mention or Lower
The following table summarizes total classified and criticized loans as of September 30, 2019 and December 31, 2018:

 
 
September 30, 2019
 
December 31, 2018
(in thousands)
 
Business
Activities Loans
 
Acquired  Loans
 
Total
 
Business Activities Loans
 
Acquired  Loans
 
Total
Non-accrual
 
$
13,541

 
$
3,138

 
$
16,679

 
$
14,111

 
$
4,124

 
$
18,235

Substandard accruing
 
10,114

 
6,478

 
16,592

 
7,810

 
7,987

 
15,797

Doubtful accruing
 
—

 
—

 
—

 
—

 
—

 
—

Total classified
 
23,655

 
9,616

 
33,271

 
21,921

 
12,111

 
34,032

Special mention
 
26,820

 
4,485

 
31,305

 
15,337

 
6,399

 
21,736

Total Criticized
 
$
50,475

 
$
14,101

 
$
64,576

 
$
37,258

 
$
18,510

 
$
55,768