Loans and Related Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2019

The following table summarizes the primary segments of the loan portfolio at March 31, 2019 and December 31, 2018:



(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
March 31, 2019

Individually evaluated for impairment	$	4,351	$	8,013	$	27	$	3,943	$	24	$	16,358
Collectively evaluated for impairment	$	295,115	$	115,313	$	109,392	$	434,664	$	33,776	$	988,260
Total loans	$	299,466	$	123,326	$	109,419	$	438,607	$	33,800	$	1,004,618

December 31, 2018

Individually evaluated for impairment	$	5,239	$	693	$	17	$	4,616	$	10	$	10,575
Collectively evaluated for impairment	$	301,682	$	117,667	$	111,449	$	432,291	$	34,050	$	997,139
Total loans	$	306,921	$	118,360	$	111,466	$	436,907	$	34,060	$	1,007,714

Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating

The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention and Substandard within the internal risk rating system at March 31, 2019 and December 31, 2018:


(in thousands)	Pass		Special Mention		Substandard		Total
March 31, 2019
Commercial real estate
Non owner-occupied	$	138,286	$	7,553	$	2,285	$	148,124
All other CRE		144,863		1,738		4,741		151,342
Acquisition and development
1-4 family residential construction		13,949		0		0		13,949
All other A&D		101,567		0		7,810		109,377
Commercial and industrial		105,428		0		3,991		109,419
Residential mortgage
Residential mortgage - term		362,573		0		4,444		367,017
Residential mortgage - home equity		70,154		142		1,294		71,590
Consumer		33,694		4		102		33,800
Total	$	970,514	$	9,437	$	24,667	$	1,004,618

December 31, 2018
Commercial real estate
Non owner-occupied	$	145,260	$	2,904	$	2,348	$	150,512
All other CRE		149,076		1,752		5,581		156,409
Acquisition and development
1-4 family residential construction		16,003		0		0		16,003
All other A&D		94,428		7,378		551		102,357
Commercial and industrial		107,174		3,703		589		111,466
Residential mortgage
Residential mortgage - term		359,305		0		4,703		364,008
Residential mortgage - home equity		71,666		143		1,090		72,899
Consumer		33,952		4		104		34,060
Total	$	976,864	$	15,884	$	14,966	$	1,007,714

Loan Portfolio Summarized by the Past Due Status

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at March 31, 2019 and December 31, 2018:



(in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days+ Past Due		Total Past Due and Accruing		Non-Accrual		Total Loans
March 31, 2019
Commercial real estate
Non owner-occupied	$	147,980	$	0	$	0	$	0	$	0	$	144	$	148,124
All other CRE		149,687		127		26		0		153		1,502		151,342
Acquisition and development
1-4 family residential construction		13,834		115		0		0		115		0		13,949
All other A&D		101,644		258		0		0		258		7,475		109,377
Commercial and industrial		108,266		1,116		10		0		1,126		27		109,419
Residential mortgage
Residential mortgage - term		363,383		1,887		271		8		2,166		1,468		367,017
Residential mortgage - home equity		70,040		527		100		0		627		923		71,590
Consumer		33,556		172		48		0		220		24		33,800
Total	$	988,390	$	4,202	$	455	$	8	$	4,665	$	11,563	$	1,004,618

December 31, 2018
Commercial real estate
Non owner-occupied	$	150,339	$	0	$	0	$	0	$	0	$	173	$	150,512
All other CRE		153,977		464		0		0		464		1,968		156,409
Acquisition and development
1-4 family residential construction		16,003		0		0		0		0		0		16,003
All other A&D		94,540		197		7,411		62		7,670		147		102,357
Commercial and industrial		111,436		29		1		0		30		0		111,466
Residential mortgage
Residential mortgage - term		360,073		302		1,359		363		2,024		1,911		364,008
Residential mortgage - home equity		71,611		461		114		0		575		713		72,899
Consumer		33,832		140		73		5		218		10		34,060
Total	$	991,811	$	1,593	$	8,958	$	430	$	10,981	$	4,922	$	1,007,714

Primary Segments of the Allowance for Loan Loss

The following table summarizes the primary segments of the ALL at March 31, 2019 and December 31, 2018, segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment:


(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer			Unallocated	Total
March 31, 2019

Individually evaluated for impairment	$	12	$	720	$	0	$	71	$	4	$	0	$	807
Collectively evaluated for impairment	$	2,763	$	1,618	$	1,125	$	4,426	$	309	$	500	$	10,741
Total ALL	$	2,775	$	2,338	$	1,125	$	4,497	$	313	$	500	$	11,548

December 31, 2018

Individually evaluated for impairment	$	13	$	25	$	0	$	106	$	0	$	0	$	144
Collectively evaluated for impairment	$	2,767	$	1,696	$	1,187	$	4,438	$	315	$	500	$	10,903
Total ALL	$	2,780	$	1,721	$	1,187	$	4,544	$	315	$	500	$	11,047

Impaired Loans and Related Interest Income by Loan Portfolio Class

The following table presents impaired loans by 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:


		Impaired Loans with Specific Allowance				Impaired Loans with No Specific Allowance		Total Impaired Loans
(in thousands)		Recorded Investment		Related Allowances		Recorded Investment		Recorded Investment		Unpaid Principal Balance
March 31, 2019
Commercial real estate
Non owner-occupied	$	120	$	12	$	144	$	264	$	8,458
All other CRE		0		0		4,087		4,087		4,087
Acquisition and development
1-4 family residential construction		0		0		310		310		310
All other A&D		7,666		720		37		7,703		7,774
Commercial and industrial		0		0		27		27		2,241
Residential mortgage
Residential mortgage - term		1,219		62		1,802		3,021		3,244
Residential mortgage – home equity		171		9		751		922		935
Consumer		15		4		9		24		24
Total impaired loans	$	9,191	$	807	$	7,167	$	16,358	$	27,073

December 31, 2018
Commercial real estate
Non owner-occupied	$	121	$	13	$	173	$	294	$	8,488
All other CRE		0		0		4,945		4,945		4,945
Acquisition and development
1-4 family residential construction		0		0		316		316		316
All other A&D		230		25		147		377		525
Commercial and industrial		0		0		17		17		2,231
Residential mortgage
Residential mortgage - term		993		106		2,910		3,903		4,130
Residential mortgage – home equity		0		0		713		713		726
Consumer		0		0		10		10		10
Total impaired loans	$	1,344	$	144	$	9,231	$	10,575	$	21,371

Allowance for Loan Losses Summarized by Loan Portfolio Segments

The following tables present the activity in the ALL for the three-month periods ended March 31, 2019 and 2018:


(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer			Unallocated	Total
ALL balance at January 1, 2019	$	2,780	$	1,721	$	1,187	$	4,544	$	315	$	500	$	11,047
Charge-offs		0		(29)		0		(12)		(68)		0		(109)
Recoveries		29		12		51		108		61		0		261
Provision		(34)		634		(113)		(143)		5		0		349
ALL balance at March 31, 2019	$	2,775	$	2,338	$	1,125	$	4,497	$	313	$	500	$	11,548

ALL balance at January 1, 2018	$	3,699	$	1,257	$	869	$	3,444	$	203	$	500	$	9,972
Charge-offs		0		(91)		0		(154)		(68)		0		(313)
Recoveries		59		214		18		38		35		0		364
Provision		218		(220)		(27)		350		126		0		447
ALL balance at March 31, 2018	$	3,976	$	1,160	$	860	$	3,678	$	296	$	500	$	10,470

Average of Impaired Loans and Related Interest Income by Loan Portfolio Class

The following table presents the average recorded investment in impaired loans by class and related interest income recognized for the periods indicated:


	Three months ended						Three months ended
	March 31, 2019						March 31, 2018
(in thousands)	Average investment		Interest income recognized on an accrual basis		Interest income recognized on a cash basis		Average investment		Interest income recognized on an accrual basis		Interest income recognized on a cash basis
Commercial real estate
Non owner-occupied	$	280	$	3	$	0	$	2,660	$	4	$	66
All other CRE		4,516		38		0		5,142		49		56
Acquisition and development
1-4 family residential construction		313		5		0		527		6		0
All other A&D		4,040		3		0		426		3		0
Commercial and industrial		22		0		0		493		5		0
Residential mortgage
Residential mortgage - term		3,462		28		8		3,595		32		0
Residential mortgage – home equity		818		0		0		627		0		7
Consumer		17		0		0		28		0		0
Total	$	13,468	$	77	$	8	$	13,498	$	99	$	129

Modification of Troubled Debt Restructuring by Class

There were 14 loans totaling $4.2 million and 16 loans totaling $4.9 million that were classified as TDRs at March 31, 2019 and December 31, 2018, respectively. The following tables present the volume and recorded investment at that time of modification of TDRs by class and type of modification that occurred during the periods indicated:


	Temporary Rate Modification			Extension of Maturity			Modification of Payment and Other Terms
(in thousands)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Three months ended March 31, 2019
Commercial real estate
Non owner-occupied	0	$	0	0	$	0	0	$	0
All other CRE	0		0	0		0	0		0
Acquisition and development
1-4 family residential construction	0		0	0		0	0		0
All other A&D	0		0	0		0	1		227
Commercial and industrial	0		0	0		0	0		0
Residential mortgage
Residential mortgage – term	0		0	0		0	1		243
Residential mortgage – home equity	0		0	0		0	0		0
Consumer	0		0	0		0	0		0
Total	0	$	0	0	$	0	2	$	470