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Loan Quality And Allowance For Loan Losses | 6 Months Ended
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Jun. 30, 2020
Loan Quality And Allowance For Loan Losses [Abstract] |
Loan Quality And Allowance For Loan Losses | Note 6. Loan Quality and Allowance for Loan Losses The following table presents, by class, the activity in the Allowance for Loan Losses (ALL) for the periods shown:
|  | Residential Real Estate 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |
|  | First |  | Junior Liens & |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |  |  |
(Dollars in thousands) |  | Liens |  | Lines of Credit |  | Construction |  | Real Estate |  | Commercial |  | Consumer |  | Unallocated |  | Total
ALL at March 31, 2020 |  | $ | 563 |  | $ | 178 |  | $ | 269 |  | $ | 8,249 |  | $ | 4,713 |  | $ | 98 |  | $ | 660 |  | $ | 14,730
Charge-offs |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (145) |  |  | (29) |  |  | — |  |  | (174)
Recoveries |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 19 |  |  | 4 |  |  | — |  |  | 24
Provision |  |  | 16 |  |  | 19 |  |  | (27) |  |  | 588 |  |  | 1,258 |  |  | 32 |  |  | 89 |  |  | 1,975
ALL at June 30, 2020 |  | $ | 580 |  | $ | 197 |  | $ | 242 |  | $ | 8,837 |  | $ | 5,845 |  | $ | 105 |  | $ | 749 |  | $ | 16,555
ALL at December 31, 2019 |  | $ | 416 |  | $ | 119 |  | $ | 187 |  | $ | 6,607 |  | $ | 4,021 |  | $ | 84 |  | $ | 532 |  | $ | 11,966
Charge-offs |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (365) |  |  | (59) |  |  | — |  |  | (424)
Recoveries |  |  | 4 |  |  | — |  |  | — |  |  | — |  |  | 24 |  |  | 10 |  |  | — |  |  | 38
Provision |  |  | 160 |  |  | 78 |  |  | 55 |  |  | 2,230 |  |  | 2,165 |  |  | 70 |  |  | 217 |  |  | 4,975
ALL at June 30, 2020 |  | $ | 580 |  | $ | 197 |  | $ | 242 |  | $ | 8,837 |  | $ | 5,845 |  | $ | 105 |  | $ | 749 |  | $ | 16,555
ALL at March 31, 2019 |  | $ | 487 |  | $ | 132 |  | $ | 154 |  | $ | 6,470 |  | $ | 4,801 |  | $ | 72 |  | $ | 565 |  | $ | 12,681
Charge-offs |  |  | (1) |  |  | — |  |  | — |  |  | (123) |  |  | (14) |  |  | (25) |  |  | — |  |  | (163)
Recoveries |  |  | 2 |  |  | 1 |  |  | — |  |  | 20 |  |  | 9 |  |  | 3 |  |  | — |  |  | 35
Provision |  |  | (51) |  |  | (20) |  |  | 10 |  |  | 85 |  |  | (63) |  |  | 45 |  |  | (6) |  |  | -
ALL at June 30, 2019 |  | $ | 437 |  | $ | 113 |  | $ | 164 |  | $ | 6,452 |  | $ | 4,733 |  | $ | 95 |  | $ | 559 |  | $ | 12,553
ALL at December 31, 2018 |  | $ | 491 |  | $ | 133 |  | $ | 110 |  | $ | 6,278 |  | $ | 4,783 |  | $ | 70 |  | $ | 550 |  | $ | 12,415
Charge-offs |  |  | (34) |  |  | (1) |  |  | (3) |  |  | (186) |  |  | (75) |  |  | (51) |  |  | — |  |  | (350)
Recoveries |  |  | 3 |  |  | 1 |  |  | — |  |  | 21 |  |  | 51 |  |  | 13 |  |  | — |  |  | 89
Provision |  |  | (23) |  |  | (20) |  |  | 57 |  |  | 339 |  |  | (26) |  |  | 63 |  |  | 9 |  |  | 399
ALL at June 30, 2019 |  | $ | 437 |  | $ | 113 |  | $ | 164 |  | $ | 6,452 |  | $ | 4,733 |  | $ | 95 |  | $ | 559 |  | $ | 12,553
The following table presents, by class, loans that were evaluated for the ALL under the specific reserve (individually) and those that were evaluated under the general reserve (collectively) and the amount of the ALL established in each class as of June 30, 2020 and December 31, 2019:
|  | Residential Real Estate 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |
|  | First |  | Junior Liens & |  |  |  | Commercial |  |  |  |  |  |  |  |  |  |  |
(Dollars in thousands) |  | Liens |  | Lines of Credit |  | Construction |  | Real Estate |  | Commercial |  | Consumer |  | Unallocated |  | Total
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans evaluated for ALL: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually |  | $ | 648 |  | $ | — |  | $ | 518 |  | $ | 11,127 |  | $ | — |  | $ | — |  | $ | — |  | $ | 12,293
Collectively |  |  | 142,284 |  |  | 54,833 |  |  | 13,059 |  |  | 486,555 |  |  | 296,432 |  |  | 6,682 |  |  | — |  |  | 999,845
Total |  | $ | 142,932 |  | $ | 54,833 |  | $ | 13,577 |  | $ | 497,682 |  | $ | 296,432 |  | $ | 6,682 |  | $ | — |  | $ | 1,012,138
ALL established for ‎ loans evaluated: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | —
Collectively |  |  | 580 |  |  | 197 |  |  | 242 |  |  | 8,837 |  |  | 5,845 |  |  | 105 |  |  | 749 |  |  | 16,555
ALL at June 30, 2020 |  | $ | 580 |  | $ | 197 |  | $ | 242 |  | $ | 8,837 |  | $ | 5,845 |  | $ | 105 |  | $ | 749 |  | $ | 16,555
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans evaluated for ALL: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually |  | $ | 659 |  | $ | — |  | $ | 523 |  | $ | 10,994 |  | $ | — |  | $ | — |  | $ | — |  | $ | 12,176
Collectively |  |  | 142,287 |  |  | 47,597 |  |  | 12,800 |  |  | 483,268 |  |  | 230,007 |  |  | 6,440 |  |  | — |  |  | 922,399
Total |  | $ | 142,946 |  | $ | 47,597 |  | $ | 13,323 |  | $ | 494,262 |  | $ | 230,007 |  | $ | 6,440 |  | $ | — |  | $ | 934,575
ALL established for ‎ loans evaluated: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | —
Collectively |  |  | 416 |  |  | 119 |  |  | 187 |  |  | 6,607 |  |  | 4,021 |  |  | 84 |  |  | 532 |  |  | 11,966
ALL at December 31, 2019 |  | $ | 416 |  | $ | 119 |  | $ | 187 |  | $ | 6,607 |  | $ | 4,021 |  | $ | 84 |  | $ | 532 |  | $ | 11,966
‎ The following table shows additional information about those loans considered to be impaired at June 30, 2020 and December 31, 2019:
|  | Impaired Loans
|  | With No Allowance |  | With Allowance
(Dollars in thousands) |  |  |  |  | Unpaid |  |  |  |  | Unpaid |  |  |
|  | Recorded |  | Principal |  | Recorded |  | Principal |  | Related
June 30, 2020 |  | Investment |  | Balance |  | Investment |  | Balance |  | Allowance
Residential Real Estate 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First liens |  | $ | 648 |  | $ | 648 |  | $ | — |  | $ | — |  | $ | —
Junior liens and lines of credit |  |  | — |  |  | — |  |  | — |  |  | — |  |  | —
Total |  |  | 648 |  |  | 648 |  |  | — |  |  | — |  |  | —
Residential real estate - construction |  |  | 518 |  |  | 729 |  |  | — |  |  | — |  |  | —
Commercial real estate |  |  | 11,127 |  |  | 12,259 |  |  | — |  |  | — |  |  | —
Commercial |  |  | — |  |  | — |  |  | — |  |  | — |  |  | —
Total |  | $ | 12,293 |  | $ | 13,636 |  | $ | — |  | $ | — |  | $ | —
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Real Estate 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First liens |  | $ | 659 |  | $ | 659 |  | $ | — |  | $ | — |  | $ | —
Junior liens and lines of credit |  |  | — |  |  | — |  |  | — |  |  | — |  |  | —
Total |  |  | 659 |  |  | 659 |  |  | — |  |  | — |  |  | —
Residential real estate - construction |  |  | 523 |  |  | 729 |  |  | — |  |  | — |  |  | —
Commercial real estate |  |  | 10,994 |  |  | 12,096 |  |  | — |  |  | — |  |  | —
Commercial |  |  | — |  |  | — |  |  | — |  |  | — |  |  | —
Total |  | $ | 12,176 |  | $ | 13,484 |  | $ | — |  | $ | — |  | $ | —
The following table shows the average of impaired loans and related interest income for the three and six months ended June 30, 2020 and 2019:
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2020 |  | June 30, 2020
|  | Average |  | Interest |  | Average |  | Interest
(Dollars in thousands) |  | Recorded |  | Income |  | Recorded |  | Income
|  | Investment |  | Recognized |  | Investment |  | Recognized
Residential Real Estate 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |
First liens |  | $ | 651 |  | $ | 8 |  | $ | 653 |  | $ | 19
Junior liens and lines of credit |  |  | — |  |  | — |  |  | — |  |  | —
Total |  |  | 651 |  |  | 8 |  |  | 653 |  |  | 19
Residential real estate - construction |  |  | 520 |  |  | — |  |  | 521 |  |  | —
Commercial real estate |  |  | 11,179 |  |  | 93 |  |  | 11,039 |  |  | 187
Commercial |  |  | — |  |  | — |  |  | — |  |  | —
Total |  | $ | 12,350 |  | $ | 101 |  | $ | 12,213 |  | $ | 206
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2019 |  | June 30, 2019
|  | Average |  | Interest |  | Average |  | Interest
(Dollars in thousands) |  | Recorded |  | Income |  | Recorded |  | Income
|  | Investment |  | Recognized |  | Investment |  | Recognized
Residential Real Estate 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |
First liens |  | $ | 779 |  | $ | 11 |  | $ | 813 |  | $ | 21
Junior liens and lines of credit |  |  | 26 |  |  | 1 |  |  | 35 |  |  | 1
Total |  |  | 805 |  |  | 12 |  |  | 848 |  |  | 22
Residential real estate - construction |  |  | 651 |  |  | — |  |  | 652 |  |  | —
Commercial real estate |  |  | 13,242 |  |  | 102 |  |  | 13,368 |  |  | 204
Commercial |  |  | 147 |  |  | — |  |  | 138 |  |  | —
Total |  | $ | 14,845 |  | $ | 114 |  | $ | 15,006 |  | $ | 226
‎ The following table presents the aging of payments of the loan portfolio:
(Dollars in thousands) |  |  |  |  | Loans Past Due and Still Accruing |  |  |  |  | Total
|  | Current |  | 30-59 Days |  | 60-89 Days |  | 90 Days+ |  | Total |  | Non-Accrual |  | Loans
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Real Estate 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First liens |  | $ | 142,822 |  | $ | 42 |  | $ | 27 |  | $ | — |  | $ | 69 |  | $ | 41 |  | $ | 142,932
Junior liens and lines of credit |  |  | 54,660 |  |  | 119 |  |  | 28 |  |  | 12 |  |  | 159 |  |  | 14 |  |  | 54,833
Total |  |  | 197,482 |  |  | 161 |  |  | 55 |  |  | 12 |  |  | 228 |  |  | 55 |  |  | 197,765
Residential real estate - construction |  |  | 13,059 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 518 |  |  | 13,577
Commercial real estate |  |  | 493,923 |  |  | 392 |  |  | — |  |  | — |  |  | 392 |  |  | 3,367 |  |  | 497,682
Commercial |  |  | 296,208 |  |  | 17 |  |  | — |  |  | — |  |  | 17 |  |  | 207 |  |  | 296,432
Consumer |  |  | 6,661 |  |  | 15 |  |  | 4 |  |  | 2 |  |  | 21 |  |  | — |  |  | 6,682
Total |  | $ | 1,007,333 |  | $ | 585 |  | $ | 59 |  | $ | 14 |  | $ | 658 |  | $ | 4,147 |  | $ | 1,012,138
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Real Estate 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First liens |  | $ | 141,843 |  | $ | 646 |  | $ | 358 |  | $ | 31 |  | $ | 1,035 |  | $ | 68 |  | $ | 142,946
Junior liens and lines of credit |  |  | 47,420 |  |  | 70 |  |  | 30 |  |  | 46 |  |  | 146 |  |  | 31 |  |  | 47,597
Total |  |  | 189,263 |  |  | 716 |  |  | 388 |  |  | 77 |  |  | 1,181 |  |  | 99 |  |  | 190,543
Residential real estate - construction |  |  | 12,800 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 523 |  |  | 13,323
Commercial real estate |  |  | 490,114 |  |  | 813 |  |  | 326 |  |  | — |  |  | 1,139 |  |  | 3,009 |  |  | 494,262
Commercial |  |  | 229,659 |  |  | 31 |  |  | 120 |  |  | — |  |  | 151 |  |  | 197 |  |  | 230,007
Consumer |  |  | 6,397 |  |  | 25 |  |  | 18 |  |  | — |  |  | 43 |  |  | — |  |  | 6,440
Total |  | $ | 928,233 |  | $ | 1,585 |  | $ | 852 |  | $ | 77 |  | $ | 2,514 |  | $ | 3,828 |  | $ | 934,575
‎ The following table reports the risk rating for those loans in the portfolio that are assigned an individual risk rating. Consumer purpose loans are assigned a rating of either pass or substandard based on the performance status of the loans. Substandard consumer loans are comprised of loans 90 days or more past due and still accruing, and nonaccrual loans. Commercial purpose loans may be assigned any rating in accordance with the Bank’s internal risk rating system. Approximately $57 million of hotel portfolio loans were moved to Pass-watch (5) rating at June 30, 2020. The entire hotel portfolio of approximately $70 million at June 30, 2020 is now rated no better than Pass-watch (5).
| Pass |  | OAEM |  | Substandard |  | Doubtful |  |  |
(Dollars in thousands) | (1-5) |  | (6) |  | (7) |  | (8) |  | Total
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Real Estate 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |
First liens | $ | 142,891 |  | $ | — |  | $ | 41 |  | $ | — |  | $ | 142,932
Junior liens and lines of credit |  | 54,807 |  |  | — |  |  | 26 |  |  | — |  |  | 54,833
Total |  | 197,698 |  |  | — |  |  | 67 |  |  | — |  |  | 197,765
Residential real estate - construction |  | 13,059 |  |  | — |  |  | 518 |  |  | — |  |  | 13,577
Commercial real estate |  | 487,112 |  |  | 5,983 |  |  | 4,587 |  |  | — |  |  | 497,682
Commercial |  | 296,055 |  |  | — |  |  | 377 |  |  | — |  |  | 296,432
Consumer |  | 6,679 |  |  | — |  |  | 3 |  |  | — |  |  | 6,682
Total | $ | 1,000,603 |  | $ | 5,983 |  | $ | 5,552 |  | $ | — |  | $ | 1,012,138
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential Real Estate 1-4 Family |  |  |  |  |  |  |  |  |  |  |  |  |  |
First liens | $ | 142,847 |  | $ | — |  | $ | 99 |  | $ | — |  | $ | 142,946
Junior liens and lines of credit |  | 47,520 |  |  | — |  |  | 77 |  |  | — |  |  | 47,597
Total |  | 190,367 |  |  | — |  |  | 176 |  |  | — |  |  | 190,543
Residential real estate - construction |  | 12,800 |  |  | — |  |  | 523 |  |  | — |  |  | 13,323
Commercial real estate |  | 483,878 |  |  | 5,875 |  |  | 4,509 |  |  | — |  |  | 494,262
Commercial |  | 229,465 |  |  | 4 |  |  | 538 |  |  | — |  |  | 230,007
Consumer |  | 6,440 |  |  | — |  |  | — |  |  | — |  |  | 6,440
Total | $ | 922,950 |  | $ | 5,879 |  | $ | 5,746 |  | $ | — |  | $ | 934,575
The following table presents information on the Bank’s Troubled Debt Restructuring (TDR) loans as of:
|  |  |  |  |  |  |  |  |  |  |  |  | Troubled Debt Restructurings
|  |  |  |  |  |  |  |  |  |  |  |  | Within the Last 12 Months
|  |  |  |  |  |  |  |  |  | That Have Defaulted
(Dollars in thousands) |  | Troubled Debt Restructurings |  | On Modified Terms
|  | Number of |  | Recorded |  |  |  |  |  |  |  | Number of |  | Recorded
|  | Contracts |  | Investment |  | Performing* |  | Nonperforming* |  | Contracts |  | Investment
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate - construction |  | 1 |  | $ | 440 |  | $ | 440 |  | $ | — |  | — |  | $ | —
Residential real estate |  | 4 |  |  | 648 |  |  | 648 |  |  | — |  | — |  |  | —
Commercial real estate |  | 11 |  |  | 9,089 |  |  | 8,771 |  |  | 318 |  | — |  |  | —
Total |  | 16 |  | $ | 10,177 |  | $ | 9,859 |  | $ | 318 |  | — |  | $ | —
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate - construction |  | 1 |  | $ | 444 |  | $ | 444 |  | $ | — |  | — |  | $ | —
Residential real estate |  | 4 |  |  | 659 |  |  | 659 |  |  | — |  | — |  |  | —
Commercial real estate |  | 11 |  |  | 9,343 |  |  | 9,343 |  |  | — |  | — |  |  | —
Total |  | 16 |  | $ | 10,446 |  | $ | 10,446 |  | $ | — |  | — |  | $ | —
*The performing status is determined by the loan’s compliance with the modified terms. There were no new TDR loans during 2020 or 2019. Loans that have been modified on a good-faith basis in response to COVID-19 to borrowers who were classified as current prior to any relief are not TDRs as outlined in the March 22, 2020 Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus. Such short-term modifications (e.g., six months) may include payment deferrals, fee waivers, extension of payment terms or other delays in payment that are insignificant. As of June 30, 2020, the Bank has granted approximately $196 million loan deferrals or modifications (approximately 19% of gross loans).

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- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
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