Loans and Related Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2019



(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
June 30, 2019
Individually evaluated for impairment	$	5,778	$	8,144	$	27	$	3,787	$	7	$	17,743
Collectively evaluated for impairment	$	294,054	$	110,582	$	108,244	$	438,482	$	34,511	$	985,873
Total loans	$	299,832	$	118,726	$	108,271	$	442,269	$	34,518	$	1,003,616
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



(in thousands)	Pass		Special Mention		Substandard		Total
June 30, 2019
Commercial real estate
Non owner-occupied	$	137,348	$	7,457	$	2,012	$	146,817
All other CRE		145,127		1,721		6,167		153,015
Acquisition and development
1-4 family residential construction		10,301		—		—		10,301
All other A&D		100,490		—		7,935		108,425
Commercial and industrial		104,496		—		3,775		108,271
Residential mortgage
Residential mortgage - term		367,344		—		4,250		371,594
Residential mortgage - home equity		69,142		141		1,392		70,675
Consumer		34,413		4		101		34,518
Total	$	968,661	$	9,323	$	25,632	$	1,003,616
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		—		—		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		—		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



(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
June 30, 2019
Commercial real estate
Non owner-occupied	$	146,684	$	—	$	—	$	—	$	—	$	133	$	146,817
All other CRE		147,818		2,116		—		—		2,116		3,081		153,015
Acquisition and development
1-4 family residential construction		10,301		—		—		—		—		—		10,301
All other A&D		100,702		—		74		34		108		7,615		108,425
Commercial and industrial		108,158		—		86		—		86		27		108,271
Residential mortgage
Residential mortgage - term		368,467		138		1,464		197		1,799		1,328		371,594
Residential mortgage - home equity		69,403		241		25		79		345		927		70,675
Consumer		34,375		94		35		7		136		7		34,518
Total	$	985,908	$	2,589	$	1,684	$	317	$	4,590	$	13,118	$	1,003,616
December 31, 2018
Commercial real estate
Non owner-occupied	$	150,339	$	—	$	—	$	—	$	—	$	173	$	150,512
All other CRE		153,977		464		—		—		464		1,968		156,409
Acquisition and development
1-4 family residential construction		16,003		—		—		—		—		—		16,003
All other A&D		94,540		197		7,411		62		7,670		147		102,357
Commercial and industrial		111,436		29		1		—		30		—		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		—		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



(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Unallocated		Total
June 30, 2019
Individually evaluated for impairment	$	11	$	1,728	$	—	$	65	$	—	$	—	$	1,804
Collectively evaluated for impairment	$	2,724	$	1,566	$	1,147	$	3,916	$	319	$	500	$	10,172
Total ALL	$	2,735	$	3,294	$	1,147	$	3,981	$	319	$	500	$	11,976
December 31, 2018
Individually evaluated for impairment	$	13	$	25	$	—	$	106	$	—	$	—	$	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


	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
June 30, 2019
Commercial real estate
Non owner-occupied	$	119	$	11	$	133	$	252	$	8,445
All other CRE		—		—		5,526		5,526		5,526
Acquisition and development
1-4 family residential construction		—		—		304		304		304
All other A&D		7,805		1,728		35		7,840		7,907
Commercial and industrial		—		—		27		27		2,241
Residential mortgage
Residential mortgage – term		1,205		56		1,655		2,860		3,063
Residential mortgage – home equity		171		9		756		927		941
Consumer		—		—		7		7		7
Total impaired loans	$	9,300	$	1,804	$	8,443	$	17,743	$	28,434
December 31, 2018
Commercial real estate
Non owner-occupied	$	121	$	13	$	173	$	294	$	8,488
All other CRE		—		—		4,945		4,945		4,945
Acquisition and development
1-4 family residential construction		—		—		316		316		316
All other A&D		230		25		147		377		525
Commercial and industrial		—		—		17		17		2,231
Residential mortgage
Residential mortgage – term		993		106		2,910		3,903		4,130
Residential mortgage – home equity		—		—		713		713		726
Consumer		—		—		10		10		10
Total impaired loans	$	1,344	$	144	$	9,231	$	10,575	$	21,371

Allowance for Loan Losses Summarized by Loan Portfolio Segments



(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		—		(29)		(5)		(86)		(136)		—		(256)
Recoveries		30		111		76		195		91		—		503
Provision		(75)		1,491		(111)		(672)		49		—		682
ALL balance at June 30, 2019	$	2,735	$	3,294	$	1,147	$	3,981	$	319	$	500	$	11,976
ALL balance at January 1, 2018	$	3,699	$	1,257	$	869	$	3,444	$	203	$	500	$	9,972
Charge-offs		(889)		(98)		(10)		(240)		(175)		—		(1,412)
Recoveries		60		258		31		65		79		—		493
Provision		433		(245)		(104)		475		157		—		716
ALL balance at June 30, 2018	$	3,303	$	1,172	$	786	$	3,744	$	264	$	500	$	9,769



(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Unallocated		Total
ALL balance at April 1, 2019	$	2,775	$	2,338	$	1,125	$	4,497	$	313	$	500	$	11,548
Charge-offs		—		—		(5)		(74)		(68)		—		(147)
Recoveries		1		99		25		87		30		—		242
Provision		(41)		857		2		(529)		44		—		333
ALL balance at June 30, 2019	$	2,735	$	3,294	$	1,147	$	3,981	$	319	$	500	$	11,976
ALL balance at April 1, 2018	$	3,976	$	1,160	$	860	$	3,678	$	296	$	500	$	10,470
Charge-offs		(889)		(7)		(10)		(86)		(107)		—		(1,099)
Recoveries		1		44		13		27		44		—		129
Provision		215		(25)		(77)		125		31		—		269
ALL balance at June 30, 2018	$	3,303	$	1,172	$	786	$	3,744	$	264	$	500	$	9,769

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



	Six months ended						Six months ended
	June 30, 2019						June 30, 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	$	270	$	6	$	—	$	813	$	7	$	66
All other CRE		4,853		76		—		6,625		99		56
Acquisition and development
1-4 family residential construction		310		9		—		457		12		—
All other A&D		5,306		6		—		276		6		—
Commercial and industrial		24		—		—		305		10		—
Residential mortgage
Residential mortgage – term		3,261		53		10		3,487		62		—
Residential mortgage – home equity		854		—		2		553		—		7
Consumer		14		—		—		23		—		—
Total	$	14,892	$	150	$	12	$	12,539	$	196	$	129



	Three months ended						Three months ended
	June 30, 2019						June 30, 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	$	258	$	3	$	—	$	1,258	$	3	$	—
All other CRE		4,807		38		—		5,726		50		—
Acquisition and development
1-4 family residential construction		307		4		—		492		6		—
All other A&D		7,772		3		—		340		3		—
Commercial and industrial		27		—		—		311		5		—
Residential mortgage
Residential mortgage – term		2,941		25		2		3,529		30		—
Residential mortgage – home equity		925		—		2		614		—		—
Consumer		16		—		—		24		—		—
Total	$	17,053	$	73	$	4	$	12,294	$	97	$	—

Modification of Troubled Debt Restructuring by Class



	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
Six months ended June 30, 2019
Commercial real estate
Non owner-occupied	—	$	—	—	$	—	—	$	—
All other CRE	—		—	—		—	—		—
Acquisition and development
1-4 family residential construction	—		—	—		—	—		—
All other A&D	—		—	—		—	1		227
Commercial and industrial	—		—	—		—	—		—
Residential mortgage
Residential mortgage – term	—		—	—		—	1		243
Residential mortgage – home equity	—		—	—		—	—		—
Consumer	—		—	—		—	—		—
Total	—	$	—	—	$	—	2	$	470

	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
Six months ended June 30, 2018
Commercial real estate
Non owner-occupied	—	$	—	—	$	—	1	$	126
All other CRE	—		—	1		179	—		—
Acquisition and development
1-4 family residential construction	—		—	—		—	—		—
All other A&D	—		—	—		—	—		—
Commercial and industrial	—		—	—		—	—		—
Residential mortgage
Residential mortgage – term	—		—	—		—	—		—
Residential mortgage – home equity	—		—	—		—	—		—
Consumer	—		—	—		—	—		—
Total	—	$	—	1	$	179	1	$	126

During the six months ended June 30, 2019, there were no new TDRs but two existing TDRs that had reached their modification maturity dates were re-modified. These re-modifications did not impact the ALL. During the six months ended June 30, 2019, there were no payment defaults.

During the six months ended June 30, 2018, there were no new TDRs but two existing TDRs that had reached their modification maturity dates were re-modified. These re-modifications did not impact the ALL. During the six months ended June 30, 2018, there were no payment defaults.




	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 June 30, 2018
Commercial real estate
Non owner-occupied	—	$	—	—	$	—	1	$	126
All other CRE	—		—	1		179	—		—
Acquisition and development
1-4 family residential construction	—		—	—		—	—		—
All other A&D	—		—	—		—	—		—
Commercial and industrial	—		—	—		—	—		—
Residential mortgage
Residential mortgage – term	—		—	—		—	—		—
Residential mortgage – home equity	—		—	—		—	—		—
Consumer	—		—	—		—	—		—
Total	—	$	—	1	$	179	1	$	126