Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2019


	June 30, 2019						December 31, 2018
(In thousands)	Originated		Acquired		Total		Originated		Acquired		Total
Commercial real estate	$	679,017	$	56,004	$	735,021	$	616,614	$	66,988	$	683,602
Commercial and industrial		126,766		7,952		134,718		128,909		8,419		137,328
Commercial construction		210,538		7,644		218,182		141,694		11,645		153,339
Consumer residential		85,922		38,206		124,128		87,609		43,822		131,431
Consumer nonresidential		24,139		110		24,249		32,184		124		32,308
	$	1,126,382	$	109,916	$	1,236,298	$	1,007,010	$	130,998	$	1,138,008
Less:
Allowance for loan losses		9,996		—		9,996		9,159		—		9,159
Unearned income and (unamortized premiums), net		1,926		—		1,926		1,265		—		1,265
Loans, net	$	1,114,460	$	109,916	$	1,224,376	$	996,586	$	130,998	$	1,127,584

Schedule of acquired loans


(In thousands)	June 30, 2019
Purchased credit impaired acquired loans evaluated individually for future credit losses
Outstanding principal balance	$	2,579
Carrying amount		1,846
Other acquired loans
Outstanding principal balance		109,511
Carrying amount		108,070
Total acquired loans
Outstanding principal balance		112,090
Carrying amount		109,916


(In thousands)	December 31, 2018
Purchased credit impaired acquired loans evaluated individually for future credit losses
Outstanding principal balance	$	2,533
Carrying amount		1,401
Other acquired loans
Outstanding principal balance		131,286
Carrying amount		129,597
Total acquired loans
Outstanding principal balance		133,819
Carrying amount		130,998

Schedule of accretable yield on purchased credit impaired loans


(In thousands)
Balance at January 1, 2019	$	357
Accretion		(51)
Balance at June 30, 2019	$	306
(In thousands)
Balance at January 1, 2018	$	—
Accretable yield at acquisition date		379
Accretion		(22)
Balance at December 31, 2018	$	357

Schedule of allowance for loan losses

Allowance for Loan Losses

For the three months ended June 30, 2019

(In thousands)


	Commercial		Commercial and		Commercial		Consumer		Consumer
	Real Estate		Industrial		Construction		Residential		Nonresidential		Total
Allowance for credit losses:
Beginning Balance, April 1	$	5,812	$	1,480	$	1,491	$	495	$	234	$	9,512
Charge-offs		—		—		—		—		(21)		(21)
Recoveries		—		—		—		—		—		—
Provision		177		(69)		397		(1)		1		505
Ending Balance	$	5,989	$	1,411	$	1,888	$	494	$	214	$	9,996

Allowance for Loan Losses

For the six months ended June 30, 2019

(In thousands)


	Commercial		Commercial		Commercial		Consumer		Consumer
	Real Estate		and Industrial		Construction		Residential		Nonresidential		Total
Allowance for credit losses:
Beginning Balance, January 1	$	5,548	$	1,474	$	1,285	$	518	$	334	$	9,159
Charge-offs		—		—		—		—		(183)		(183)
Recoveries		—		—		—		—		—		—
Provision		441		(63)		603		(24)		63		1,020
Ending Balance	$	5,989	$	1,411	$	1,888	$	494	$	214	$	9,996

Allowance for Loan Losses

For the three months ended June 30, 2018

(In thousands)


	Commercial		Commercial and		Commercial		Consumer		Consumer
	Real Estate		Industrial		Construction		Residential		Nonresidential		Unallocated		Total
Allowance for credit losses:
Beginning Balance, April 1	$	5,140	$	821	$	1,249	$	630	$	230	$	32	$	8,102
Charge-offs		—		(86)		—		—		(11)		—		(97)
Recoveries		—		12		—		—		—		—		12
Provision		135		122		57		(26)		(11)		4		281
Ending Balance	$	5,275	$	869	$	1,306	$	604	$	208	$	36	$	8,298

Allowance for Loan Losses

For the six months ended June 30, 2018

(In thousands)


	Commercial		Commercial and		Commercial		Consumer		Consumer
	Real Estate		Industrial		Construction		Residential		Nonresidential		Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	4,832	$	768	$	1,191	$	626	$	268	$	40	$	7,725
Charge-offs		—		(86)		—		—		(11)		—		(97)
Recoveries		—		31		—		—		—		—		31
Provision		443		156		115		(22)		(49)		(4)		639
Ending Balance	$	5,275	$	869	$	1,306	$	604	$	208	$	36	$	8,298

Allowance for Loan Losses

For the year ended December 31, 2018

(In thousands)


	Commercial		Commercial and		Commercial		Consumer		Consumer
	Real Estate		Industrial		Construction		Residential		Nonresidential		Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	4,832	$	768	$	1,191	$	626	$	268	$	40	$	7,725
Charge-offs		—		(86)		—		(187)		(292)		—		(565)
Recoveries		—		26		—		1		52		—		79
Provision		716		766		94		78		306		(40)		1,920
Beginning Balance	$	5,548	$	1,474	$	1,285	$	518	$	334	$	—	$	9,159

Schedule of recorded investment in loans and impairment by portfolio segment

Allowance for Loan Losses

At June 30, 2019

(In thousands)


	Commercial		Commercial and		Commercial		Consumer		Consumer
	Real Estate		Industrial		Construction		Residential		Nonresidential		Total
Allowance for credit losses:
Ending Balance:
Individually evaluated for impairment	$	26	$	343	$	—	$	29	$	—	$	398
Purchase credit impaired		—		—		—		—		—		—
Collectively evaluated for impairment		5,963		1,068		1,888		465		214		9,598
	$	5,989	$	1,411	$	1,888	$	494	$	214	$	9,996

Loans Receivable

At June 30, 2019

(In thousands)


	Commercial		Commercial and		Commercial		Consumer		Consumer
	Real Estate		Industrial		Construction		Residential		Nonresidential		Total
Financing receivables:
Ending Balance
Individually evaluated for impairment	$	5,493	$	2,905	$	—	$	169	$	—	$	8,567
Purchase credit impaired		1,019		461		—		366		—		1,846
Collectively evaluated for impairment		728,509		131,352		218,182		123,593		24,249		1,225,885
	$	735,021	$	134,718	$	218,182	$	124,128	$	24,249	$	1,236,298

Allowance for Loan Losses

At June 30, 2018

(In thousands)


	Commercial		Commercial		Commercial		Consumer		Consumer
	Real Estate		and Industrial		Construction		Residential		Nonresidential		Unallocated		Total
Allowance for credit losses:
Ending Balance:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		5,275		869		1,306		604		244		—		8,298
	$	5,275	$	869	$	1,306	$	604	$	244	$	—	$	8,298

Loans Receivable

At June 30, 2018

(In thousands)


	Commercial		Commercial		Commercial		Consumer		Consumer
	Real Estate		and Industrial		Construction		Residential		Nonresidential		Unallocated		Total
Financing receivables:
Ending Balance
Individually evaluated for impairment	$	1,897	$	294	$	—	$	587	$	—	$	—	$	2,778
Collectively evaluated for impairment		571,529		110,254		139,678		105,253		27,285		—		953,999
	$	573,426	$	110,548	$	139,678	$	105,840	$	27,285	$	—	$	956,777

Allowance for Loan Losses

At December 31, 2018

(In thousands)


	Commercial		Commercial		Commercial		Consumer		Consumer
	Real Estate		and Industrial		Construction		Residential		Nonresidential		Unallocated		Total
Allowance for credit losses:
Ending Balance:
Individually evaluated for impairment	$	—	$	372	$	—	$	1	$	—	$	—	$	373
Purchase credit impaired		—		—		—		—		—		—		—
Collectively evaluated for impairment		5,548		1,102		1,285		517		334		—		8,786
	$	5,548	$	1,474	$	1,285	$	518	$	334	$	—	$	9,159

Loans Receivable

At December 31, 2018

(In thousands)


	Commercial		Commercial		Commercial		Consumer		Consumer
	Real Estate		and Industrial		Construction		Residential		Nonresidential		Unallocated		Total
Financing receivables:
Ending Balance
Individually evaluated for impairment	$	1,306	$	2,969	$	—	$	182	$	—	$	—	$	4,457
Purchase credit impaired		139		467		421		374		—		—		1,401
Collectively evaluated for impairment		682,157		133,892		152,918		130,875		32,308		—		1,132,150
	$	683,602	$	137,328	$	153,339	$	131,431	$	32,308	$	—	$	1,138,008

Schedule of Impaired loans

Impaired Loans – Originated Loan Portfolio


			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
(In thousands)	Investment		Balance		Allowance		Investment		Recognized
June 30, 2019
With an allowance recorded:
Commercial real estate	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		1,788		1,789		343		1,791		69
Commercial construction		—		—		—		—		—
Consumer residential		—		—		—		—		—
Consumer nonresidential		—		—		—		—		—
	$	1,788	$	1,789	$	343	$	1,791	$	69
June 30, 2019
With no related allowance:
Commercial real estate	$	5,301	$	5,304	$	—	$	5,318	$	121
Commercial and industrial		1,117		1,117		—		1,137		332
Commercial construction		—		—		—		—		—
Consumer residential		—		—		—		—		—
Consumer nonresidential		—		—		—		—		—
	$	6,418	$	6,421	$	—	$	6,455	$	453

Impaired Loans – Acquired Loan Portfolio


			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
(In thousands)	Investment		Balance		Allowance		Investment		Recognized
June 30, 2019
With an allowance recorded:
Commercial real estate	$	192	$	192	$	26	$	192	$	8
Commercial and industrial		—		—		—		—		—
Commercial construction		—		—		—		—		—
Consumer residential		169		163		29		163		5
Consumer nonresidential		—		—		—		—		—
	$	361	$	355	$	55	$	355	$	13
June 30, 2019
With no related allowance:
Commercial real estate	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		—		—		—		—		—
Commercial construction		—		—		—		—		—
Consumer residential		—		—		—		—		—
Consumer nonresidential		—		—		—		—		—
	$	—	$	—	$	—	$	—	$	—

Impaired Loans – Originated Loan Portfolio


			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
(In thousands)	Investment		Balance		Allowance		Investment		Recognized
December 31, 2018
With an allowance recorded:
Commercial real estate	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		1,793		1,793		372		1,801		100
Commercial construction		—		—		—		—		—
Consumer residential		182		182		1		184		12
Consumer nonresidential		—		—		—		—		—
	$	1,975	$	1,975	$	373	$	1,985	$	112
December 31, 2018
With no related allowance:
Commercial real estate	$	1,306	$	1,319	$	—	$	1,321	$	68
Commercial and industrial		1,156		1,170		—		1,378		81
Commercial construction		—		—		—		—		—
Consumer residential		—		—		—		—		—
Consumer nonresidential		—		—		—		—		—
	$	2,462	$	2,489	$	—	$	2,699	$	149

Impaired Loans – Acquired Loan Portfolio


			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
(In thousands)	Investment		Balance		Allowance		Investment		Recognized
December 31, 2018
With an allowance recorded:
Commercial real estate	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		—		—		—		—		—
Commercial construction		—		—		—		—		—
Consumer residential		—		—		—		—		—
Consumer nonresidential		—		—		—		—		—
	$	—	$	—	$	—	$	—	$	—
December 31, 2018
With no related allowance:
Commercial real estate	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		20		20		—		58		3
Commercial construction		—		—		—		—		—
Consumer residential		—		—		—		—		—
Consumer nonresidential		—		—		—		—		—
	$	20	$	20	$	—	$	58	$	3

Schedule of risk category of loans

As of June 30, 2019 – Originated Loan Portfolio


	Commercial Real		Commercial and		Commercial		Consumer		Consumer
(In thousands)	Estate		Industrial		Construction		Residential		Nonresidential		Total
Grade:
Pass	$	659,207	$	117,238	$	207,451	$	85,115	$	24,120	$	1,093,131
Special mention		15,617		6,792		3,087		705		19		26,220
Substandard		4,193		2,736		—		102		—		7,031
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—
Total	$	679,017	$	126,766	$	210,538	$	85,922	$	24,139	$	1,126,382

As of June 30, 2019 – Acquired Loan Portfolio


	Commercial Real		Commercial and		Commercial		Consumer		Consumer
(In thousands)	Estate		Industrial		Construction		Residential		Nonresidential		Total
Grade:
Pass	$	54,611	$	7,491	$	7,644	$	37,842	$	110	$	107,698
Special mention		1,109		—		—		131		—		1,240
Substandard		284		461		—		233		—		978
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—
Total	$	56,004	$	7,952	$	7,644	$	38,206	$	110	$	109,916

As of December 31, 2018 – Originated Loan Portfolio


	Commercial Real		Commercial and		Commercial		Consumer		Consumer
(In thousands)	Estate		Industrial		Construction		Residential		Nonresidential		Total
Grade:
Pass	$	610,580	$	124,349	$	141,694	$	86,848	$	32,184	$	995,655
Special mention		6,034		1,783		—		761		—		8,578
Substandard		—		2,777		—		—		—		2,777
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—
Total	$	616,614	$	128,909	$	141,694	$	87,609	$	32,184	$	1,007,010

As of December 31, 2018 – Acquired Loan Portfolio


	Commercial Real		Commercial and		Commercial		Consumer		Consumer
(In thousands)	Estate		Industrial		Construction		Residential		Nonresidential		Total
Grade:
Pass	$	66,849	$	7,952	$	11,224	$	43,811	$	124	$	129,960
Special mention		56		—		421		—		—		477
Substandard		83		467		—		11		—		561
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—
Total	$	66,988	$	8,419	$	11,645	$	43,822	$	124	$	130,998

Schedule of past due and nonaccrual loans

As of June 30, 2019 – Originated Loan Portfolio


	30 - 59 days		60 - 89 days		90 days or more		Total						90 days past due
(In thousands)	past due		past due		past due		past due		Current		Total loans		and still accruing		Nonaccruals
Commercial real estate	$	324	$	829	$	1,901	$	3,054	$	675,963	$	679,017	$	1,901	$	4,191
Commercial and industrial		235		48		140		423		126,343		126,766		140		1,769
Commercial construction		—		—		593		593		209,945		210,538		593		—
Consumer residential		187		—		344		531		85,391		85,922		344		163
Consumer nonresidential		64		200		—		264		23,875		24,139		—		—
Total	$	810	$	1,077	$	2,978	$	4,865	$	1,121,517	$	1,126,382	$	2,978	$	6,123

As of June 30, 2019 – Acquired Loan Portfolio


	30 - 59 days		60 - 89 days		90 days or more		Total						90 days past due
(In thousands)	past due		past due		past due		past due		Current		Total loans		and still accruing		Nonaccruals
Commercial real estate	$	681	$	—	$	51	$	732	$	55,272	$	56,004	$	51	$	275
Commercial and industrial		—		—		—		—		7,952		7,952		—		252
Commercial construction		—		—		—		—		7,644		7,644		—		—
Consumer residential		669		—		—		669		37,537		38,206		—		310
Consumer nonresidential		—		23		—		23		87		110		—		—
Total	$	1,350	$	23	$	51	$	1,424	$	108,492	$	109,916	$	51	$	837

As of December 31, 2018 – Originated Loan Portfolio


	30 - 59 days		60 - 89 days		90 days or more		Total						90 days past due
(In thousands)	past due		past due		past due		past due		Current		Total loans		and still accruing		Nonaccruals
Commercial real estate	$	3,062	$	2,148	$	—	$	5,210	$	611,404	$	616,614	$	—	$	—
Commercial and industrial		68		181		2,701		2,950		125,959		128,909		1,031		1,769
Commercial construction		—		—		—		—		141,694		141,694		—		—
Consumer residential		843		345		—		1,188		86,421		87,609		—		182
Consumer nonresidential		111		44		—		155		32,029		32,184		—		—
Total	$	4,084	$	2,718	$	2,701	$	9,503	$	997,507	$	1,007,010	$	1,031	$	1,951

As of December 31, 2018 – Acquired Loan Portfolio


	30 - 59 days		60 - 89 days		90 days or more		Total						90 days past due
(In thousands)	past due		past due		past due		past due		Current		Total loans		and still accruing		Nonaccruals
Commercial real estate	$	1,001	$	83	$	56	$	1,140	$	65,848	$	66,988	$	—	$	56
Commercial and industrial		446		—		—		446		7,973		8,419		—		—
Commercial construction		186		—		—		186		11,459		11,645		—		—
Consumer residential		2,785		612		173		3,570		40,252		43,822		—		173
Consumer nonresidential		—		—		—		—		124		124		—		—
Total	$	4,418	$	695	$	229	$	5,342	$	125,656	$	130,998	$	—	$	229

Schedule of TDR's originated

For the six months ended June 30, 2019


		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
Troubled Debt Restructurings	Contracts	Investment		Investment
	(In thousands)
Commercial real estate	1	$	3,903	$	3,903
Total	1	$	3,903	$	3,903