XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Loans, net and allowance for loan losses | 3 Months Ended
--- | ---
Mar. 31, 2018
Loans, net and allowance for loan losses |
Loans, net and allowance for loan losses | 5. Loans, net and allowance for loan losses: The major classifications of loans outstanding, net of deferred loan origination fees and costs at March 31, 2018 and December 31, 2017 are summarized as follows. Net deferred loan costs were $719 and $575 at March 31, 2018 and December 31, 2017.
|  |  | March 31, 2018 |  |  | December 31, 2017 |
Commercial |  | $ | 467,404 |  | $ | 476,199 |
Real estate: |  |  |  |  |  |  |
Commercial |  |  | 833,497 |  |  | 786,210 |
Residential |  |  | 289,367 |  |  | 287,935 |
Consumer |  |  | 135,513 |  |  | 142,721 |
Total |  | $ | 1,725,781 |  | $ | 1,693,065 |
The changes in the allowance for loan losses account by major classification of loan for the three months ended March 31, 2018 and 2017 are summarized as follows:
|  |  |  |  | Real estate |  |  |  |  |  |  |  |  |  |
March 31, 2018 |  | Commercial |  | Commercial |  | Residential |  | Consumer |  | Unallocated |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance January 1, 2018 |  | $ | 5,052 |  | $ | 7,548 |  | $ | 4,980 |  | $ | 1,380 |  | $ |  |  | $ | 18,960 |
Charge-offs |  |  |  |  |  |  |  |  | (299) |  |  | (127) |  |  |  |  |  | (426) |
Recoveries |  |  | 57 |  |  | 27 |  |  | 10 |  |  | 40 |  |  |  |  |  | 134 |
Provisions |  |  | 297 |  |  | 524 |  |  | 148 |  |  | 81 |  |  |  |  |  | 1,050 |
Ending balance |  | $ | 5,406 |  | $ | 8,099 |  | $ | 4,839 |  | $ | 1,374 |  | $ |  |  | $ | 19,718 |
|  |  |  |  | Real estate |  |  |  |  |  |  |  |  |  |
March 31, 2017 |  | Commercial |  | Commercial |  | Residential |  | Consumer |  | Unallocated |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance January 1, 2017 |  | $ | 3,799 |  | $ | 5,847 |  | $ | 4,707 |  | $ | 1,608 |  | $ |  |  | $ | 15,961 |
Charge-offs |  |  |  |  |  | (125) |  |  | (15) |  |  | (171) |  |  |  |  |  | (311) |
Recoveries |  |  | 7 |  |  | 33 |  |  | 22 |  |  | 57 |  |  |  |  |  | 119 |
Provisions |  |  | 323 |  |  | 536 |  |  | 264 |  |  | 77 |  |  |  |  |  | 1,200 |
Ending balance |  | $ | 4,129 |  | $ | 6,291 |  | $ | 4,978 |  | $ | 1,571 |  | $ |  |  | $ | 16,969 |
The allocation of the allowance for loan losses and the related loans by major classifications of loans at March 31, 2018 and December 31, 2017 is summarized as follows:
|  |  |  |  | Real estate |  |  |  |  |  |  |  |  |  |
March 31, 2018 |  | Commercial |  | Commercial |  | Residential |  | Consumer |  | Unallocated |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 5,406 |  | $ | 8,099 |  | $ | 4,839 |  | $ | 1,374 |  | $ |  |  | $ | 19,718 |
Ending balance: individually evaluated for impairment |  |  | 145 |  |  | 1,411 |  |  | 182 |  |  | 17 |  |  |  |  |  | 1,755 |
Ending balance: collectively evaluated for impairment |  |  | 5,261 |  |  | 6,688 |  |  | 4,657 |  |  | 1,357 |  |  |  |  |  | 17,963 |
Ending balance: loans acquired with deteriorated credit quality |  | $ |  |  | $ |  |  | $ |  |  | $ |  |  | $ |  |  | $ |  |
Loans receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 467,404 |  | $ | 833,497 |  | $ | 289,367 |  | $ | 135,513 |  | $ |  |  | $ | 1,725,781 |
Ending balance: individually evaluated for impairment |  |  | 2,023 |  |  | 4,784 |  |  | 3,751 |  |  | 169 |  |  |  |  |  | 10,727 |
Ending balance: collectively evaluated for impairment |  |  | 465,060 |  |  | 828,125 |  |  | 285,587 |  |  | 135,344 |  |  |  |  |  | 1,714,116 |
Ending balance: loans acquired with deteriorated credit quality |  | $ | 321 |  | $ | 588 |  | $ | 29 |  | $ |  |  | $ |  |  | $ | 938 |
|  |  |  |  | Real estate |  |  |  |  |  |  |  |  |  |
December 31, 2017 |  | Commercial |  | Commercial |  | Residential |  | Consumer |  | Unallocated |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 5,052 |  | $ | 7,548 |  | $ | 4,980 |  | $ | 1,380 |  | $ |  |  | $ | 18,960 |
Ending balance: individually evaluated for impairment |  |  | 159 |  |  | 263 |  |  | 336 |  |  | 8 |  |  |  |  |  | 766 |
Ending balance: collectively evaluated for impairment |  |  | 4,893 |  |  | 7,285 |  |  | 4,644 |  |  | 1,372 |  |  |  |  |  | 18,194 |
Ending balance: loans acquired with deteriorated credit quality |  | $ |  |  | $ |  |  | $ |  |  | $ |  |  | $ |  |  | $ |  |
Loans receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 476,199 |  | $ | 786,210 |  | $ | 287,935 |  | $ | 142,721 |  | $ |  |  | $ | 1,693,065 |
Ending balance: individually evaluated for impairment |  |  | 2,121 |  |  | 3,644 |  |  | 3,763 |  |  | 177 |  |  |  |  |  | 9,705 |
Ending balance: collectively evaluated for impairment |  |  | 473,736 |  |  | 781,921 |  |  | 284,142 |  |  | 142,544 |  |  |  |  |  | 1,682,343 |
Ending balance: loans acquired with deteriorated credit quality |  | $ | 342 |  | $ | 645 |  | $ | 30 |  | $ |  |  | $ |  |  | $ | 1,017 |
The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows:
| · |  | Pass- A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention.
| · |  | Special Mention- A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification.
| · |  | Substandard- A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected.
| · |  | Doubtful – A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
| · |  | Loss- A loan classified as Loss is considered uncollectible and of such little value that its continuance as bankable loan is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future.
The following tables present the major classification of loans summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system at March 31, 2018 and December 31, 2017:
|  |  |  |  | Special |  |  |  |  |  |  |  |  |  |
March 31, 2018 |  | Pass |  | Mention |  | Substandard |  | Doubtful |  | Total |
Commercial |  | $ | 462,244 |  | $ | 1,192 |  | $ | 3,968 |  | $ |  |  | $ | 467,404 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 804,815 |  |  | 17,130 |  |  | 11,552 |  |  |  |  |  | 833,497 |
Residential |  |  | 284,005 |  |  | 17 |  |  | 5,345 |  |  |  |  |  | 289,367 |
Consumer |  |  | 135,313 |  |  |  |  |  | 200 |  |  |  |  |  | 135,513 |
Total |  | $ | 1,686,377 |  | $ | 18,339 |  | $ | 21,065 |  | $ |  |  | $ | 1,725,781 |
|  |  |  |  | Special |  |  |  |  |  |  |  |  |  |
December 31, 2017 |  | Pass |  | Mention |  | Substandard |  | Doubtful |  | Total |
Commercial |  | $ | 472,185 |  | $ | 1,958 |  | $ | 2,056 |  | $ |  |  | $ | 476,199 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 764,320 |  |  | 13,015 |  |  | 8,875 |  |  |  |  |  | 786,210 |
Residential |  |  | 282,484 |  |  | 18 |  |  | 5,433 |  |  |  |  |  | 287,935 |
Consumer |  |  | 142,507 |  |  |  |  |  | 214 |  |  |  |  |  | 142,721 |
Total |  | $ | 1,661,496 |  | $ | 14,991 |  | $ | 16,578 |  | $ |  |  | $ | 1,693,065 |
Information concerning nonaccrual loans by major loan classification at March 31, 2018 and December 31, 2017 is summarized as follows:
|  |  | March 31, 2018 |  |  | December 31, 2017 |
Commercial |  | $ | 770 |  | $ | 860 |
Real estate: |  |  |  |  |  |  |
Commercial |  |  | 4,719 |  |  | 3,821 |
Residential |  |  | 3,020 |  |  | 2,994 |
Consumer |  |  | 169 |  |  | 177 |
Total |  | $ | 8,678 |  | $ | 7,852 |
The major classifications of loans by past due status are summarized as follows:
|  |  |  |  |  |  |  | Greater |  |  |  |  |  |  |  |  |  |  | Loans > 90 |
|  | 30-59 Days |  | 60-89 Days |  | than 90 |  | Total Past |  |  |  |  |  |  |  | Days and |
March 31, 2018 |  | Past Due |  | Past Due |  | Days |  | Due |  | Current |  | Total Loans |  | Accruing |
Commercial |  | $ | 99 |  | $ | 18 |  | $ | 774 |  | $ | 891 |  | $ | 466,513 |  | $ | 467,404 |  | $ | 3 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 4,608 |  |  | 416 |  |  | 4,719 |  |  | 9,743 |  |  | 823,754 |  |  | 833,497 |  |  |  |
Residential |  |  | 1,305 |  |  | 780 |  |  | 3,345 |  |  | 5,430 |  |  | 283,937 |  |  | 289,367 |  |  | 325 |
Consumer |  |  | 545 |  |  | 342 |  |  | 275 |  |  | 1,162 |  |  | 134,351 |  |  | 135,513 |  |  | 107 |
Total |  | $ | 6,557 |  | $ | 1,556 |  | $ | 9,113 |  | $ | 17,226 |  | $ | 1,708,555 |  | $ | 1,725,781 |  | $ | 435 |
The Company classifies all nonaccrual loans in the greater than 90 days category.
|  |  |  |  |  |  |  | Greater |  |  |  |  |  |  |  |  |  |  | Loans > 90 |
|  | 30-59 Days |  | 60-89 Days |  | than 90 |  | Total Past |  |  |  |  |  |  |  | Days and |
December 31, 2017 |  | Past Due |  | Past Due |  | Days |  | Due |  | Current |  | Total Loans |  | Accruing |
Commercial |  | $ | 124 |  | $ | 216 |  | $ | 860 |  | $ | 1,200 |  | $ | 474,999 |  | $ | 476,199 |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 1,722 |  |  | 194 |  |  | 3,821 |  |  | 5,737 |  |  | 780,473 |  |  | 786,210 |  |  |  |
Residential |  |  | 1,134 |  |  | 1,551 |  |  | 3,543 |  |  | 6,228 |  |  | 281,707 |  |  | 287,935 |  | $ | 549 |
Consumer |  |  | 1,101 |  |  | 364 |  |  | 363 |  |  | 1,828 |  |  | 140,893 |  |  | 142,721 |  |  | 186 |
Total |  | $ | 4,081 |  | $ | 2,325 |  | $ | 8,587 |  | $ | 14,993 |  | $ | 1,678,072 |  | $ | 1,693,065 |  | $ | 735 |
The following tables summarize information concerning impaired loans as of and for the three months ended March 31, 2018 and March 31, 2017, and as of and for the year ended, December 31, 2017 by major loan classification:
|  |  |  |  |  |  |  |  |  |  | For the Quarter Ended |
|  |  |  |  | Unpaid |  |  |  |  | Average |  | Interest |
|  | Recorded |  | Principal |  | Related |  | Recorded |  | Income |
March 31, 2018 |  | Investment |  | Balance |  | Allowance |  | Investment |  | Recognized |
With no related allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 1,211 |  | $ | 1,375 |  |  |  |  | $ | 1,246 |  | $ | 17 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 2,970 |  |  | 3,312 |  |  |  |  |  | 2,929 |  |  | 6 |
Residential |  |  | 2,289 |  |  | 2,762 |  |  |  |  |  | 2,243 |  |  | 4 |
Consumer |  |  | 151 |  |  | 159 |  |  |  |  |  | 160 |  |  |  |
Total |  |  | 6,621 |  |  | 7,608 |  |  |  |  |  | 6,578 |  |  | 27 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 1,133 |  |  | 1,158 |  |  | 144 |  |  | 1,159 |  |  | 8 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 2,402 |  |  | 2,520 |  |  | 1,411 |  |  | 1,902 |  |  | 6 |
Residential |  |  | 1,491 |  |  | 1,977 |  |  | 182 |  |  | 1,544 |  |  | 4 |
Consumer |  |  | 18 |  |  | 18 |  |  | 18 |  |  | 13 |  |  |  |
Total |  |  | 5,044 |  |  | 5,673 |  |  | 1,755 |  |  | 4,618 |  |  | 18 |
Commercial |  |  | 2,344 |  |  | 2,533 |  |  | 144 |  |  | 2,405 |  |  | 25 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 5,372 |  |  | 5,832 |  |  | 1,411 |  |  | 4,831 |  |  | 12 |
Residential |  |  | 3,780 |  |  | 4,739 |  |  | 182 |  |  | 3,787 |  |  | 8 |
Consumer |  |  | 169 |  |  | 177 |  |  | 18 |  |  | 173 |  |  |  |
Total |  | $ | 11,665 |  | $ | 13,281 |  | $ | 1,755 |  | $ | 11,196 |  | $ | 45 |
|  |  |  |  |  |  |  |  |  |  | For the Year Ended |
|  |  |  |  | Unpaid |  |  |  |  | Average |  | Interest |
|  | Recorded |  | Principal |  | Related |  | Recorded |  | Income |
December 31, 2017 |  | Investment |  | Balance |  | Allowance |  | Investment |  | Recognized |
With no related allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 1,279 |  | $ | 1,439 |  |  |  |  | $ | 1,668 |  | $ | 43 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 2,888 |  |  | 3,190 |  |  |  |  |  | 2,985 |  |  | 24 |
Residential |  |  | 2,196 |  |  | 2,672 |  |  |  |  |  | 2,227 |  |  | 21 |
Consumer |  |  | 169 |  |  | 181 |  |  |  |  |  | 173 |  |  |  |
Total |  |  | 6,532 |  |  | 7,482 |  |  |  |  |  | 7,053 |  |  | 88 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 1,184 |  |  | 1,218 |  |  | 159 |  |  | 991 |  |  | 50 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 1,401 |  |  | 1,496 |  |  | 263 |  |  | 2,202 |  |  | 18 |
Residential |  |  | 1,597 |  |  | 1,759 |  |  | 336 |  |  | 1,335 |  |  | 23 |
Consumer |  |  | 8 |  |  | 8 |  |  | 8 |  |  | 20 |  |  |  |
Total |  |  | 4,190 |  |  | 4,481 |  |  | 766 |  |  | 4,548 |  |  | 91 |
Commercial |  |  | 2,463 |  |  | 2,657 |  |  | 159 |  |  | 2,659 |  |  | 93 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 4,289 |  |  | 4,686 |  |  | 263 |  |  | 5,187 |  |  | 42 |
Residential |  |  | 3,793 |  |  | 4,431 |  |  | 336 |  |  | 3,562 |  |  | 44 |
Consumer |  |  | 177 |  |  | 189 |  |  | 8 |  |  | 193 |  |  |  |
Total |  | $ | 10,722 |  | $ | 11,963 |  | $ | 766 |  | $ | 11,601 |  | $ | 179 |
|  |  |  |  |  |  |  |  |  |  | For the Quarter Ended |
|  |  |  |  | Unpaid |  |  |  |  | Average |  | Interest |
|  | Recorded |  | Principal |  | Related |  | Recorded |  | Income |
March 31, 2017 |  | Investment |  | Balance |  | Allowance |  | Investment |  | Recognized |
With no related allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 765 |  | $ | 1,386 |  |  |  |  | $ | 1,585 |  | $ | 4 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 3,715 |  |  | 4,368 |  |  |  |  |  | 3,039 |  |  | 4 |
Residential |  |  | 2,349 |  |  | 2,533 |  |  |  |  |  | 2,277 |  |  | 4 |
Consumer |  |  | 184 |  |  | 184 |  |  |  |  |  | 170 |  |  |  |
Total |  |  | 7,013 |  |  | 8,471 |  |  |  |  |  | 7,071 |  |  | 12 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 1,923 |  |  | 1,923 |  | $ | 404 |  |  | 1,103 |  |  | 13 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 1,471 |  |  | 1,471 |  |  | 513 |  |  | 3,132 |  |  | 6 |
Residential |  |  | 1,044 |  |  | 1,044 |  |  | 484 |  |  | 1,210 |  |  | 4 |
Consumer |  |  | 23 |  |  | 23 |  |  | 23 |  |  | 12 |  |  |  |
Total |  |  | 4,461 |  |  | 4,461 |  |  | 1,424 |  |  | 5,457 |  |  | 23 |
Commercial |  |  | 2,688 |  |  | 3,309 |  |  | 404 |  |  | 2,688 |  |  | 17 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 5,186 |  |  | 5,839 |  |  | 513 |  |  | 6,171 |  |  | 10 |
Residential |  |  | 3,393 |  |  | 3,577 |  |  | 484 |  |  | 3,487 |  |  | 8 |
Consumer |  |  | 207 |  |  | 207 |  |  | 23 |  |  | 182 |  |  |  |
Total |  | $ | 11,474 |  | $ | 12,932 |  | $ | 1,424 |  | $ | 12,528 |  | $ | 35 |
Included in the commercial loan and commercial and residential real estate categories are troubled debt restructurings that are classified as impaired. Troubled debt restructurings totaled $3,032 at March 31, 2018, $3,074 at December 31, 2017 and $2,226 at March 31, 2017. Troubled debt restructured loans are loans with original terms, interest rate, or both, that have been modified as a result of a deterioration in the borrower’s financial condition and a concession has been granted that the Company would not otherwise consider. Unless on nonaccrual, interest income on these loans is recognized when earned, using the interest method. The Company offers a variety of modifications to borrowers that would be considered concessions. The modification categories offered generally fall within the following categories:
| · |  | Rate Modification - A modification in which the interest rate is changed to a below market rate.
| · |  | Term Modification - A modification in which the maturity date, timing of payments or frequency of payments is changed.
| · |  | Interest Only Modification - A modification in which the loan is converted to interest only payments for a period of time.
| · |  | Payment Modification - A modification in which the dollar amount of the payment is changed, other than an interest only modification described above.
| · |  | Combination Modification - Any other type of modification, including the use of multiple categories above.
There were no loans modified as a troubled debt restructuring for the three months ended March 31, 2018. There was one loan modified as a troubled debt restructuring for the three months ended March 31, 2017, in the amount of $345. During the three months ended March 31, 2018, there was one payment default on a restructured residential mortgage loan with an outstanding balance of $64; there were no payment defaults on restructured loans during the three months ended March 31, 2017.

X
- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
Name: | us-gaap_FinancingReceivablesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration