Loans (Tables)

9 Months Ended

Sep. 30, 2019

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Schedule of classes of loan portfolio summarized by the aggregate risk rating

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard, and doubtful within the Corporation’s internal risk rating system as of September 30, 2019, and December 31, 2018:



In thousands	Pass		Special Mention		Substandard		Doubtful		Total
SEPTEMBER 30, 2019
Originated Loans
Commercial and industrial	$	155,471	$	3,523	$	747	$	—	$	159,741
Commercial real estate	408,218		20,971		8,577		—		437,766
Commercial real estate construction	24,575		1,076		—		—		25,651
Residential mortgage	369,472		6,463		292		—		376,227
Home equity lines of credit	93,111		598		93		—		93,802
Consumer	13,820		—		—		—		13,820
Total Originated Loans	1,064,667		32,631		9,709		—		1,107,007
Acquired Loans
Commercial and industrial	3,482		383		112		—		3,977
Commercial real estate	105,876		11,663		2,350		—		119,889
Commercial real estate construction	1,718		692		—		—		2,410
Residential mortgage	35,141		1,915		1,994		—		39,050
Home equity lines of credit	15,415		114		299		—		15,828
Consumer	124		—		—		—		124
Total Acquired Loans	161,756		14,767		4,755		—		181,278
Total Loans
Commercial and industrial	158,953		3,906		859		—		163,718
Commercial real estate	514,094		32,634		10,927		—		557,655
Commercial real estate construction	26,293		1,768		—		—		28,061
Residential mortgage	404,613		8,378		2,286		—		415,277
Home equity lines of credit	108,526		712		392		—		109,630
Consumer	13,944		—		—		—		13,944
Total Loans	$	1,226,423	$	47,398	$	14,464	$	—	$	1,288,285



In thousands	Pass		Special Mention		Substandard		Doubtful		Total
DECEMBER 31, 2018
Originated Loans
Commercial and industrial	$	166,035	$	2,902	$	161	$	—	$	169,098
Commercial real estate	393,987		18,079		7,899		—		419,965
Commercial real estate construction	15,471		835		—		—		16,306
Residential mortgage	381,525		6,492		733		—		388,750
Home equity lines of credit	90,941		334		—		—		91,275
Consumer	14,174		—		—		—		14,174
Total Originated Loans	1,062,133		28,642		8,793		—		1,099,568
Acquired Loans
Commercial and industrial	4,803		134		147		—		5,084
Commercial real estate	120,321		5,112		3,525		—		128,958
Commercial real estate construction	3,276		716		—		—		3,992
Residential mortgage	41,193		1,896		2,460		—		45,549
Home equity lines of credit	18,614		88		386		—		19,088
Consumer	226		—		—		—		226
Total Acquired Loans	188,433		7,946		6,518		—		202,897
Total Loans
Commercial and industrial	170,838		3,036		308		—		174,182
Commercial real estate	514,308		23,191		11,424		—		548,923
Commercial real estate construction	18,747		1,551		—		—		20,298
Residential mortgage	422,718		8,388		3,193		—		434,299
Home equity lines of credit	109,555		422		386		—		110,363
Consumer	14,400		—		—		—		14,400
Total Loans	$	1,250,566	$	36,588	$	15,311	$	—	$	1,302,465

Schedule of changes In accretable yields of acquired loans

The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table.



In thousands	Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2018
Balance at beginning of period	$	891		$	1,234
Acquisitions of impaired loans	—			—
Reclassification from non-accretable differences	393			288
Accretion to loan interest income	(607		)	(490		)
Balance at end of period	$	677		$	1,032

Summary of information relative to impaired loans by loan portfolio class

The following table summarizes information relative to impaired loans by loan portfolio class as of September 30, 2019, and December 31, 2018:



	Impaired Loans with Allowance						Impaired Loans with No Allowance
In thousands	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance
SEPTEMBER 30, 2019
Commercial and industrial	$	72	$	72	$	48	$	—	$	—
Commercial real estate	—		—		—		6,578		6,578
Commercial real estate construction	—		—		—		—		—
Residential mortgage	—		—		—		212		212
Home equity lines of credit	—		—		—		93		93
	$	72	$	72	$	48	$	6,883	$	6,883

DECEMBER 31, 2018
Commercial and industrial	$	—	$	—	$	—	$	—	$	—
Commercial real estate	—		—		—		6,763		6,763
Commercial real estate construction	—		—		—		—		—
Residential mortgage	—		—		—		537		537
Home equity lines of credit	—		—		—		—		—
	$	—	$	—	$	—	$	7,300	$	7,300

Summary of information in regards to the average of impaired loans and related income by loan portfolio class

The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the three months ended September 30, 2019 and 2018:



	Impaired Loans with Allowance				Impaired Loans with No Allowance
In thousands	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
SEPTEMBER 30, 2019
Commercial and industrial	$	36	$	—	$	—	$	—
Commercial real estate	—		—		6,163		136
Commercial real estate construction	—		—		—		—
Residential mortgage	—		—		430		8
Home equity lines of credit	—		—		47		—
	$	36	$	—	$	6,640	$	144

September 30, 2018
Commercial and industrial	$	—	$	—	$	—	$	—
Commercial real estate	—		—		7,215		36
Commercial real estate construction	—		—		—		—
Residential mortgage	—		—		317		—
Home equity lines of credit	74		—		—		—
	$	74	$	—	$	7,532	$	36

The following table summarizes information in regards to the average of impaired loans and related interest income by loan portfolio class for the nine months ended September 30, 2019 and 2018:



	Impaired Loans with Allowance				Impaired Loans with No Allowance
In thousands	Average Recorded Investment		Interest Income		Average Recorded Investment		Interest Income
SEPTEMBER 30, 2019
Commercial and industrial	$	18	$	—	$	—	$	—
Commercial real estate	—		—		6,435		454
Commercial real estate construction	—		—		—		—
Residential mortgage	—		—		484		8
Home equity lines of credit	—		—		23		—
	$	18	$	—	$	6,942	$	462

September 30, 2018
Commercial and industrial	$	545	$	—	$	92	$	44
Commercial real estate	—		—		7,525		118
Commercial real estate construction	—		—		—		—
Residential mortgage	94		—		209		—
Home equity lines of credit	37		—		—		—
	$	639	$	—	$	7,826	$	162

Schedule of nonaccrual loans by loan portfolio class

The following table presents nonaccrual loans by loan portfolio class as of September 30, 2019, and December 31, 2018, the table below excludes $6.9 million in purchase credit impaired loans, net of unamortized fair value adjustments:



In thousands	September 30, 2019		December 31, 2018
Commercial and industrial	$	72	$	—
Commercial real estate	2,769		2,880
Commercial real estate construction	—		—
Residential mortgage	212		537
Home equity lines of credit	93		—
	$	3,146	$	3,417

Schedule of classes of loan portfolio summarized by the past due status

The following table presents the classes of the loan portfolio summarized by the past due status as of September 30, 2019, and December 31, 2018:



In thousands	30-59 Days Past Due		60-89 Days Past Due		>90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Loans Receivable >90 Days and Accruing
SEPTEMBER 30, 2019
Originated Loans
Commercial and industrial	$	33	$	448	$	4	$	485	$	159,256	$	159,741	$	4
Commercial real estate	849		349		1,874		3,072		434,694		437,766		—
Commercial real estate construction	—		—		—		—		25,651		25,651		—
Residential mortgage	124		1,311		1,495		2,930		373,297		376,227		1,283
Home equity lines of credit	94		—		218		312		93,490		93,802		218
Consumer	132		25		5		162		13,658		13,820		5
Total originated loans	1,232		2,133		3,596		6,961		1,100,046		1,107,007		1,510
Acquired Loans
Commercial and industrial	—		—		—		—		3,977		3,977		—
Commercial real estate	—		—		—		—		119,889		119,889		—
Commercial real estate construction	—		93		—		93		2,317		2,410		—
Residential mortgage	64		257		126		447		38,603		39,050		126
Home equity lines of credit	343		181		95		619		15,209		15,828		95
Consumer	—		—		—		—		124		124		—
Total acquired loans	407		531		221		1,159		180,119		181,278		221
Total Loans
Commercial and industrial	33		448		4		485		163,233		163,718		4
Commercial real estate	849		349		1,874		3,072		554,583		557,655		—
Commercial real estate construction	—		93		—		93		27,968		28,061		—
Residential mortgage	188		1,568		1,621		3,377		411,900		415,277		1,409
Home equity lines of credit	437		181		313		931		108,699		109,630		313
Consumer	132		25		5		162		13,782		13,944		5
Total Loans	$	1,639	$	2,664	$	3,817	$	8,120	$	1,280,165	$	1,288,285	$	1,731



In thousands	30-59 Days Past Due		60-89 Days Past Due		>90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Loans Receivable >90 Days and Accruing
DECEMBER 31, 2018
Originated Loans
Commercial and industrial	$	49	$	49	$	4	$	102	$	168,996	$	169,098	$	4
Commercial real estate	775		550		114		1,439		418,526		419,965		—
Commercial real estate construction	—		—		—		—		16,306		16,306		—
Residential mortgage	1,783		529		2,361		4,673		384,077		388,750		1,824
Home equity lines of credit	16		38		375		429		90,846		91,275		375
Consumer	36		14		—		50		14,124		14,174		—
Total originated loans	2,659		1,180		2,854		6,693		1,092,875		1,099,568		2,203
Acquired Loans
Commercial and industrial	27		—		—		27		5,057		5,084		—
Commercial real estate	64		—		851		915		128,043		128,958		851
Commercial real estate construction	343		—		77		420		3,572		3,992		77
Residential mortgage	1,235		251		907		2,393		43,156		45,549		125
Home equity lines of credit	227		—		89		316		18,772		19,088		89
Consumer	—		7		—		7		219		226		—
Total acquired loans	1,896		258		1,924		4,078		198,819		202,897		1,142
Total Loans
Commercial and industrial	76		49		4		129		174,053		174,182		4
Commercial real estate	839		550		965		2,354		546,569		548,923		851
Commercial real estate construction	343		—		77		420		19,878		20,298		77
Residential mortgage	3,018		780		3,268		7,066		427,233		434,299		1,949
Home equity lines of credit	243		38		464		745		109,618		110,363		464
Consumer	36		21		—		57		14,343		14,400		—
Total Loans	$	4,555	$	1,438	$	4,778	$	10,771	$	1,291,694	$	1,302,465	$	3,345

Summary of allowance for loan losses and recorded investment in loans receivable

The following tables summarize the allowance for loan losses and recorded investment in loans receivable:



In thousands	Commercial and Industrial			Commercial Real Estate			Commercial Real Estate Construction			Residential Mortgage			Home Equity Lines of Credit			Consumer			Unallocated			Total
AS OF AND FOR THE PERIOD ENDED SEPTEMBER 30, 2019
Allowance for Loan Losses
Beginning balance - July 1, 2019	$	2,462		$	6,412		$	262		$	2,746		$	625		$	688		$	862		$	14,057
Charge-offs	(28		)	—			—			(36		)	(174		)	(61		)	—			(299		)
Recoveries	4			5			—			—			—			7			—			16
Provisions	88			(4		)	89			(69		)	159			20			(133		)	150
Ending balance - September 30, 2019	$	2,526		$	6,413		$	351		$	2,641		$	610		$	654		$	729		$	13,924

Beginning balance - January 1, 2019	$	2,597		$	6,208		$	203		$	2,814		$	611		$	692		$	839		$	13,964
Charge-offs	(130		)	—			—			(42		)	(225		)	(168		)	—			(565		)
Recoveries	25			5			—			1			8			61			—			100
Provisions	34			200			148			(132		)	216			69			(110		)	425
Ending balance - September 30, 2019	$	2,526		$	6,413		$	351		$	2,641		$	610		$	654		$	729		$	13,924
Ending balance: individually evaluated for impairment	$	48		$	—		$	—		$	—		$	—		$	—		$	—		$	48
Ending balance: collectively evaluated for impairment	$	2,478		$	6,413		$	351		$	2,641		$	610		$	654		$	729		$	13,876

Loans Receivable
Ending balance	$	163,718		$	557,655		$	28,061		$	415,277		$	109,630		$	13,944		$	—		$	1,288,285
Ending balance: individually evaluated for impairment	$	72		$	6,578		$	—		$	212		$	93		$	—		$	—		$	6,955
Ending balance: collectively evaluated for impairment	$	163,646		$	551,077		$	28,061		$	415,065		$	109,537		$	13,944		$	—		$	1,281,330

AS OF AND FOR THE PERIOD ENDED SEPTEMBER 30, 2018
Allowance for Loan Losses
Beginning Balance - July 1, 2018	$	2,433		$	5,721		$	146		$	2,840		$	564		$	673		$	766		$	13,143
Charge-offs	(33		)	—			—			—			—			(29		)	—			(62		)
Recoveries	22			—			103			8			—			—			—			133
Provisions	185			123			(50		)	(95		)	131			(9		)	(85		)	200
Ending balance - September 30, 2018	$	2,607		$	5,844		$	199		$	2,753		$	695		$	635		$	681		$	13,414

Beginning Balance - January 1, 2018	$	3,219		$	5,228		$	126		$	3,226		$	612		$	749		$	816		$	13,976
Charge-offs	(911		)	(33		)	—			(489		)	—			(66		)	—			(1,499		)
Recoveries	33			—			103			30			—			1			—			167
Provisions	266			649			(30		)	(14		)	83			(49		)	(135		)	770
Ending balance - September 30, 2018	$	2,607		$	5,844		$	199		$	2,753		$	695		$	635		$	681		$	13,414
Ending balance: individually evaluated for impairment	$	—		$	—		$	—		$	—		$	148		$	—		$	—		$	148
Ending balance: collectively evaluated for impairment	$	2,607		$	5,844		$	199		$	2,753		$	547		$	635		$	681		$	13,266

Loans Receivable
Ending balance	$	176,073		$	522,834		$	18,720		$	433,535		$	106,679		$	14,605		$	—		$	1,272,446
Ending balance: individually evaluated for impairment	$	—		$	7,188		$	—		$	533		$	148		$	—		$	—		$	7,869
Ending balance: collectively evaluated for impairment	$	176,073		$	515,646		$	18,720		$	433,002		$	106,531		$	14,605		$	—		$	1,264,577



In thousands	Commercial and Industrial		Commercial Real Estate		Commercial Real Estate Construction		Residential Mortgage		Home Equity Lines of Credit		Consumer		Unallocated		Total
AS OF DECEMBER 31, 2018
Allowance for Loan Losses
Ending balance	$	2,597	$	6,208	$	203	$	2,814	$	611	$	692	$	839	$	13,964
Ending balance: individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Ending balance: collectively evaluated for impairment	$	2,597	$	6,208	$	203	$	2,814	$	611	$	692	$	839	$	13,964

Loans Receivable
Ending balance	$	174,182	$	548,923	$	20,298	$	434,299	$	110,363	$	14,400	$	—	$	1,302,465
Ending balance: individually evaluated for impairment	$	—	$	6,763	$	—	$	537	$	—	$	—	$	—	$	7,300
Ending balance: collectively evaluated for impairment	$	174,182	$	542,160	$	20,298	$	433,762	$	110,363	$	14,400	$	—	$	1,295,165