Quarterly report pursuant to Section 13 or 15(d)

Loans Receivable

v3.10.0.1
Loans Receivable
6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
Note 5 - Loans Receivable
 
Loans receivable are summarized below:
 
     (Dollars in thousands)
 
 
June 30, 2018
 
 
December 31, 2017
 
Loans secured by real estate:
 
 
 
 
 
 
 
 
Residential real estate
 
$
175,677
 
 
$
172,780
 
Home equity
 
 
38,247
 
 
 
36,718
 
Commercial real estate
 
 
223,598
 
 
 
211,090
 
Construction and land development
 
 
51,947
 
 
 
50,746
 
Farmland
 
 
245
 
 
 
-
 
Multifamily
 
 
44,781
 
 
 
43,369
 
Total loans secured by real estate
 
 
534,495
 
 
 
514,703
 
Consumer
 
 
485
 
 
 
460
 
Commercial business
 
 
83,941
 
 
 
77,122
 
Government
 
 
27,736
 
 
 
28,785
 
Subtotal
 
 
646,657
 
 
 
621,070
 
Less:
 
 
 
 
 
 
 
 
Net deferred loan origination fees
 
 
(180
)
 
 
(130
)
Undisbursed loan funds
 
 
(189
)
 
 
(729
)
Loans receivable
 
$
646,288
 
 
$
620,211
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
 
 
Charge-offs
 
 
Recoveries
 
 
Provisions
 
 
Ending Balance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the three months ended June 30, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
1,493
 
 
$
(38
)
 
 
-
 
 
$
68
 
 
$
1,523
 
Home equity
 
 
159
 
 
 
(5
)
 
 
-
 
 
 
29
 
 
 
183
 
Commercial real estate
 
 
2,996
 
 
 
-
 
 
 
2
 
 
 
172
 
 
 
3,170
 
Construction and land development
 
 
661
 
 
 
-
 
 
 
-
 
 
 
(50
)
 
 
611
 
Multifamily
 
 
615
 
 
 
-
 
 
 
-
 
 
 
(8
)
 
 
607
 
Farmland
 
 
4
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
4
 
Consumer
 
 
35
 
 
 
(14
)
 
 
5
 
 
 
10
 
 
 
36
 
Commercial business
 
 
1,077
 
 
 
(3
)
 
 
107
 
 
 
83
 
 
 
1,264
 
Government
 
 
57
 
 
 
-
 
 
 
-
 
 
 
(7
)
 
 
50
 
Total
 
$
7,097
 
 
$
(60
)
 
$
114
 
 
$
297
 
 
$
7,448
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the three months ended June 30, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
1,295
 
 
$
(71
)
 
$
-
 
 
$
337
 
 
$
1,561
 
Home equity
 
 
306
 
 
 
-
 
 
 
-
 
 
 
(230
)
 
 
76
 
Commercial real estate
 
 
3,198
 
 
 
-
 
 
 
-
 
 
 
(307
)
 
 
2,891
 
Construction and land development
 
 
593
 
 
 
-
 
 
 
-
 
 
 
6
 
 
 
599
 
Multifamily
 
 
561
 
 
 
-
 
 
 
-
 
 
 
(60
)
 
 
501
 
Farmland
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Consumer
 
 
28
 
 
 
(24
)
 
 
2
 
 
 
24
 
 
 
30
 
Commercial business
 
 
795
 
 
 
-
 
 
 
9
 
 
 
553
 
 
 
1,357
 
Government
 
 
58
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
58
 
Total
 
$
6,834
 
 
$
(95
)
 
$
11
 
 
$
323
 
 
$
7,073
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the six months ended June 30, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
1,568
 
 
$
(106
)
 
$
-
 
 
$
61
 
 
$
1,523
 
Home equity
 
 
166
 
 
 
(24
)
 
 
-
 
 
 
41
 
 
 
183
 
Commercial real estate
 
 
3,125
 
 
 
(119
)
 
 
2
 
 
 
162
 
 
 
3,170
 
Construction and land development
 
 
618
 
 
 
-
 
 
 
-
 
 
 
(7
)
 
 
611
 
Multifamily
 
 
622
 
 
 
-
 
 
 
-
 
 
 
(15
)
 
 
607
 
Farmland
 
 
-
 
 
 
-
 
 
 
-
 
 
 
4
 
 
 
4
 
Consumer
 
 
31
 
 
 
(22
)
 
 
9
 
 
 
18
 
 
 
36
 
Commercial business
 
 
1,298
 
 
 
(529
)
 
 
117
 
 
 
378
 
 
 
1,264
 
Government
 
 
54
 
 
 
-
 
 
 
-
 
 
 
(4
)
 
 
50
 
Total
 
$
7,482
 
 
$
(800
)
 
$
128
 
 
$
638
 
 
$
7,448
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the six months ended June 30, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
2,111
 
 
$
(928
)
 
$
-
 
 
$
378
 
 
$
1,561
 
Home equity
 
 
299
 
 
 
-
 
 
 
-
 
 
 
(223
)
 
 
76
 
Commercial real estate
 
 
3,113
 
 
 
-
 
 
 
-
 
 
 
(222
)
 
 
2,891
 
Construction and land development
 
 
617
 
 
 
-
 
 
 
-
 
 
 
(18
)
 
 
599
 
Multifamily
 
 
572
 
 
 
-
 
 
 
-
 
 
 
(71
)
 
 
501
 
Farmland
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Consumer
 
 
34
 
 
 
(30
)
 
 
4
 
 
 
22
 
 
 
30
 
Commercial business
 
 
896
 
 
 
(245
)
 
 
17
 
 
 
689
 
 
 
1,357
 
Government
 
 
56
 
 
 
-
 
 
 
-
 
 
 
2
 
 
 
58
 
Total
 
$
7,698
 
 
$
(1,203
)
 
$
21
 
 
$
557
 
 
$
7,073
 
 
The Bancorp's impairment analysis is summarized below:
 
 
 
Ending Balances
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
credit
 
 
 
 
(Dollars in thousands)
 
Individually
 
 
Collectively
 
 
 
 
 
 
 
 
impaired
 
 
 
 
 
 
evaluated for
 
 
evaluated
 
 
 
 
 
Individually
 
 
individually
 
 
Collectively
 
 
 
impairment
 
 
 for impairment
 
 
Loan
 
 
evaluated for
 
 
evaluated for
 
 
evaluated for
 
 
 
reserves
 
 
reserves
 
 
receivables
 
 
impairment
 
 
impairment
 
 
impairment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at June 30, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
30
 
 
$
1,493
 
 
$
175,492
 
 
$
548
 
 
$
693
 
 
$
174,251
 
Home equity
 
 
10
 
 
 
173
 
 
 
38,303
 
 
 
124
 
 
 
-
 
 
 
38,179
 
Commercial real estate
 
 
14
 
 
 
3,156
 
 
 
223,598
 
 
 
1,289
 
 
 
-
 
 
 
222,309
 
Construction and land development
 
 
-
 
 
 
611
 
 
 
51,947
 
 
 
-
 
 
 
-
 
 
 
51,947
 
Multifamily
 
 
-
 
 
 
607
 
 
 
44,781
 
 
 
-
 
 
 
-
 
 
 
44,781
 
Farmland
 
 
-
 
 
 
4
 
 
 
245
 
 
 
-
 
 
 
-
 
 
 
245
 
Commercial business
 
 
8
 
 
 
1,256
 
 
 
83,699
 
 
 
413
 
 
 
-
 
 
 
83,286
 
Consumer
 
 
-
 
 
 
36
 
 
 
487
 
 
 
-
 
 
 
-
 
 
 
487
 
Government
 
 
-
 
 
 
50
 
 
 
27,736
 
 
 
-
 
 
 
-
 
 
 
27,736
 
Total
 
$
62
 
 
$
7,386
 
 
$
646,288
 
 
$
2,374
 
 
$
693
 
 
$
643,221
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Bancorp's allowance for loan losses impairment evaluation and loan receivables are summarized below at December 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
21
 
 
$
1,547
 
 
$
172,141
 
 
$
462
 
 
$
690
 
 
$
170,989
 
Home equity
 
 
-
 
 
 
166
 
 
 
36,769
 
 
 
-
 
 
 
-
 
 
 
36,769
 
Commercial real estate
 
 
144
 
 
 
2,981
 
 
 
211,090
 
 
 
512
 
 
 
-
 
 
 
210,578
 
Construction and land development
 
 
-
 
 
 
618
 
 
 
50,746
 
 
 
134
 
 
 
-
 
 
 
50,612
 
Multifamily
 
 
-
 
 
 
622
 
 
 
43,368
 
 
 
-
 
 
 
-
 
 
 
43,368
 
Farmland
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
-
 
Commercial business
 
 
539
 
 
 
759
 
 
 
76,851
 
 
 
724
 
 
 
-
 
 
 
76,127
 
Consumer
 
 
-
 
 
 
31
 
 
 
461
 
 
 
-
 
 
 
-
 
 
 
461
 
Government
 
 
-
 
 
 
54
 
 
 
28,785
 
 
 
-
 
 
 
-
 
 
 
28,785
 
Total
 
$
704
 
 
$
6,778
 
 
$
620,211
 
 
$
1,832
 
 
$
690
 
 
$
617,689
 
 
The Bancorp's credit quality indicators are summarized below at June 30, 2018 and December 31, 2017:
 
 
 
Credit Exposure - Credit Risk Portfolio By Creditworthiness Category
 
 
 
June 30, 2018
 
(Dollars in thousands)
 
2
 
 
3
 
 
4
 
 
5
 
 
6
 
 
7
 
 
8
 
 
 
 
 
 
 
 
 
Above
average
 
 
 
 
 
Marginally
 
 
 
 
 
Special
 
 
 
 
 
 
 
Loan Segment
 
Moderate
 
 
acceptable
 
 
Acceptable
 
 
acceptable
 
 
Pass/monitor
 
 
mention
 
 
Substandard
 
 
Total
 
Residential real estate
 
$
406
 
 
$
16,577
 
 
$
94,660
 
 
$
9,170
 
 
$
46,790
 
 
$
3,999
 
 
$
3,890
 
 
$
175,492
 
Home equity
 
 
105
 
 
 
956
 
 
 
36,471
 
 
 
-
 
 
 
152
 
 
 
228
 
 
 
391
 
 
$
38,303
 
Commercial real estate
 
 
-
 
 
 
2,074
 
 
 
78,741
 
 
 
93,683
 
 
 
43,224
 
 
 
4,587
 
 
 
1,289
 
 
$
223,598
 
Construction and land development
 
 
-
 
 
 
-
 
 
 
20,477
 
 
 
21,194
 
 
 
10,276
 
 
 
-
 
 
 
-
 
 
$
51,947
 
Multifamily
 
 
-
 
 
 
-
 
 
 
19,676
 
 
 
23,301
 
 
 
1,582
 
 
 
222
 
 
 
-
 
 
$
44,781
 
Farmland
 
 
-
 
 
 
-
 
 
 
-
 
 
 
245
 
 
 
-
 
 
 
-
 
 
 
-
 
 
$
245
 
Commercial business
 
 
7,957
 
 
 
20,484
 
 
 
15,241
 
 
 
25,579
 
 
 
12,263
 
 
 
1,762
 
 
 
413
 
 
$
83,699
 
Consumer
 
 
115
 
 
 
4
 
 
 
368
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
$
487
 
Government
 
 
-
 
 
 
2,220
 
 
 
19,786
 
 
 
5,730
 
 
 
-
 
 
 
-
 
 
 
-
 
 
$
27,736
 
Total
 
$
8,583
 
 
$
42,315
 
 
$
285,420
 
 
$
178,902
 
 
$
114,287
 
 
$
10,798
 
 
$
5,983
 
 
$
646,288
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
2
 
 
3
 
 
4
 
 
5
 
 
6
 
 
7
 
 
8
 
 
 
 
 
 
 
 
 
Above
average
 
 
 
 
 
Marginally
 
 
 
 
 
Special
 
 
 
 
 
 
 
Loan Segment
 
Moderate
 
 
acceptable
 
 
Acceptable
 
 
acceptable
 
 
Pass/monitor
 
 
mention
 
 
Substandard
 
 
Total
 
Residential real estate
 
$
887
 
 
$
12,317
 
 
$
92,241
 
 
$
8,759
 
 
$
50,075
 
 
$
4,130
 
 
$
3,732
 
 
$
172,141
 
Home equity
 
 
-
 
 
 
1,065
 
 
 
34,871
 
 
 
-
 
 
 
250
 
 
 
233
 
 
 
350
 
 
$
36,769
 
Commercial real estate
 
 
-
 
 
 
2,372
 
 
 
79,847
 
 
 
81,547
 
 
 
40,054
 
 
 
6,758
 
 
 
512
 
 
$
211,090
 
Construction and land development
 
 
-
 
 
 
-
 
 
 
20,719
 
 
 
19,583
 
 
 
10,310
 
 
 
-
 
 
 
134
 
 
$
50,746
 
Multifamily
 
 
-
 
 
 
-
 
 
 
20,159
 
 
 
20,965
 
 
 
2,076
 
 
 
168
 
 
 
-
 
 
$
43,368
 
Farmland
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
$
-
 
Commercial business
 
 
7,169
 
 
 
17,202
 
 
 
16,784
 
 
 
21,087
 
 
 
13,041
 
 
 
394
 
 
 
1,174
 
 
$
76,851
 
Consumer
 
 
-
 
 
 
131
 
 
 
330
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
$
461
 
Government
 
 
-
 
 
 
2,318
 
 
 
20,202
 
 
 
6,265
 
 
 
-
 
 
 
-
 
 
 
-
 
 
$
28,785
 
Total
 
$
8,056
 
 
$
35,405
 
 
$
285,153
 
 
$
158,206
 
 
$
115,806
 
 
$
11,683
 
 
$
5,902
 
 
$
620,211
 
 
The Bancorp has established a standard loan grading system to assist management, lenders and review personnel in their analysis and supervision of the loan portfolio. The use and application of these grades by the Bancorp is uniform and conforms to regulatory definitions. The loan grading system is as follows:
 
1 – Minimal Risk
Borrower demonstrates exceptional credit fundamentals, including stable and predictable profit margins, strong liquidity and a conservative balance sheet with superior asset quality. Excellent cash flow coverage of existing and projected debt service. Historic and projected performance indicates borrower is able to meet obligations under almost any economic circumstances.
 
2 – Moderate risk
Borrower consistently internally generates sufficient cash flow to fund debt service, working assets, and some capital expenditures. Risk of default considered low.
 
3 – Above average acceptable risk
Borrower generates sufficient cash flow to fund debt service and some working assets and/or capital expansion needs. Profitability and key balance sheet ratios are at or slightly above peers. Current trends are positive or stable. Earnings may be level or trending down slightly or be erratic; however, positive strengths are offsetting. Risk of default is reasonable but may warrant collateral protection.
 
4 – Acceptable risk
Borrower generates sufficient cash flow to fund debt service, but most working asset and all capital expansion needs are provided from external sources. Profitability ratios and key balance sheet ratios are usually close to peers but one or more ratios (e.g. leverage) may be higher than peer. Earnings may be trending down over the last three years. Borrower may be able to obtain similar financing from other banks with comparable or less favorable terms. Risk of default is acceptable but requires collateral protection.
 
5 – Marginally acceptable risk
Borrower may exhibit excessive growth, declining earnings, strained cash flow, increasing leverage and/or weakening market position that indicate above average risk. Limited additional debt capacity, modest coverage, and average or below average asset quality, margins and market share. Interim losses and/or adverse trends may occur, but not to the level that would affect the Bank’s position. The potential for default is higher than normal but considered marginally acceptable based on prospects for improving financial performance and the strength of the collateral.
 
6 – Pass/monitor
The borrower has significant weaknesses resulting from performance trends or management concerns. The financial condition of the company has taken a negative turn and may be temporarily strained. Cash flow may be weak but cash reserves remain adequate to meet debt service. Management weaknesses are evident. Borrowers in this category will warrant more than the normal level of supervision and more frequent reporting.
 
7 – Special mention (watch)
Special mention credits are considered bankable assets with no apparent loss of principal or interest envisioned but requiring a high level of management attention. Assets in this category are currently protected but are potentially weak. These borrowers are subject to economic, industry, or management factors having an adverse impact upon their prospects for orderly service of debt. The perceived risk in continued lending is considered to have increased beyond the level where such loans would normally be granted. These assets constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of Substandard.
 
8 – Substandard
This classification consists of loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. Financial statements normally reveal some or all of the following: poor trends, lack of earnings and cash flow, excessive debt, lack of liquidity, and the absence of creditor protection. Loans are still considered collectible, but due to increased risks and defined weaknesses of the credit, some loss could be incurred in collection if the deficiencies are not corrected.
 
Performing loans are loans that are paying as agreed and are approximately less than ninety days past due on payments of interest and principal.
 
During the first six months of 2018, three commercial business loans totaling $355 thousand, three commercial real estate loans totaling $935 thousand, two residential real estate loans totaling $114 thousand and three home equity loans totaling $124 thousand were modified as a troubled debt restructuring. No troubled debt restructurings have subsequently defaulted during the periods presented. All of the loans classified as troubled debt restructurings are also considered impaired. The valuation basis for the Bancorp’s troubled debt restructurings is based on the present value of cash flows, unless consistent cash flows are not present, then the fair value of the collateral securing the loan is the basis for valuation.
  
The Bancorp's individually evaluated impaired loans are summarized below:
 
 
 
As of June 30, 2018
 
 
June 30, 2018
 
(Dollars in thousands)
 
Recorded Investment
 
 
Unpaid Principal Balance
 
 
Related Allowance
 
 
Average Recorded Investment
 
 
Interest Income Recognized
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
1,110
 
 
$
2,841
 
 
$
-
 
 
$
1,108
 
 
$
16
 
Home equity
 
 
65
 
 
 
65
 
 
 
-
 
 
 
45
 
 
 
 
 
Commercial real estate
 
 
1,180
 
 
 
1,180
 
 
 
-
 
 
 
561
 
 
 
-
 
Construction and land development
 
 
-
 
 
 
-
 
 
 
-
 
 
 
89
 
 
 
-
 
Commercial business
 
 
405
 
 
 
405
 
 
 
-
 
 
 
257
 
 
 
-
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
 
131
 
 
 
131
 
 
 
30
 
 
 
114
 
 
 
10
 
Home equity
 
 
59
 
 
 
59
 
 
 
10
 
 
 
20
 
 
 
-
 
Commercial real estate.
 
 
109
 
 
 
109
 
 
 
14
 
 
 
160
 
 
 
16
 
Construction and land development
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Commercial business
 
 
8
 
 
 
8
 
 
 
8
 
 
 
186
 
 
 
8
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
1,241
 
 
$
2,972
 
 
$
30
 
 
$
1,222
 
 
$
26
 
Home equity
 
$
124
 
 
$
124
 
 
$
10
 
 
$
65
 
 
$
-
 
Commercial real estate
 
$
1,289
 
 
$
1,289
 
 
$
14
 
 
$
721
 
 
$
16
 
Construction and land development
 
$
-
 
 
$
-
 
 
$
-
 
 
$
89
 
 
$
-
 
Commercial business
 
$
413
 
 
$
413
 
 
$
8
 
 
$
443
 
 
$
8
 
 
 
 
As of December 31, 2017
 
 
June 30, 2017
 
(Dollars in thousands)
 
Recorded Investment
 
 
Unpaid Principal Balance
 
 
Related Allowance
 
 
Average Recorded Investment
 
 
Interest Income Recognized
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
1,072
 
 
$
3,351
 
 
$
-
 
 
$
1,333
 
 
$
22
 
Home equity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Commercial real estate
 
 
253
 
 
 
253
 
 
 
-
 
 
 
381
 
 
 
3
 
Construction and land development
 
 
134
 
 
 
134
 
 
 
-
 
 
 
134
 
 
 
-
 
Commercial business
 
 
184
 
 
 
184
 
 
 
-
 
 
 
206
 
 
 
2
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
 
80
 
 
 
270
 
 
 
21
 
 
 
380
 
 
 
-
 
Home equity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Commercial real estate
 
 
259
 
 
 
259
 
 
 
144
 
 
 
99
 
 
 
-
 
Construction and land development
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Commercial business
 
 
540
 
 
 
540
 
 
 
539
 
 
 
454
 
 
 
4
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
1,152
 
 
$
3,621
 
 
$
21
 
 
$
1,713
 
 
$
22
 
Home equity
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
Commercial real estate
 
$
512
 
 
$
512
 
 
$
144
 
 
$
480
 
 
$
3
 
Construction and land development
 
$
134
 
 
$
134
 
 
$
-
 
 
$
134
 
 
$
-
 
Commercial business
 
$
724
 
 
$
724
 
 
$
539
 
 
$
660
 
 
$
6
 
  
As a result of acquisition activity, the Bancorp acquired loans for which there was evidence of credit quality deterioration since origination and it was determined that it was probable that the Bancorp would be unable to collect all contractually required principal and interest payments. At June 30, 2018, total purchased credit impaired loans with unpaid principal balances totaled $2.4 million with a recorded investment of $693 thousand. At December 31, 2017, purchased credit impaired loans with unpaid principal balances totaled $2.6 million with a recorded investment of $690 thousand.
 
The Bancorp's age analysis of past due loans is summarized below:
 
(Dollars in thousands)
 
30-59 Days Past Due
 
 
60-89 Days Past Due
 
 
Greater Than 90 Days Past Due
 
 
Total Past Due
 
 
Current
 
 
Total Loans
 
 
Recorded Investments Greater than 90 Days Past Due and Accruing
 
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
2,848
 
 
$
1,612
 
 
$
2,750
 
 
$
7,210
 
 
$
168,282
 
 
$
175,492
 
 
$
71
 
Home equity
 
 
167
 
 
 
200
 
 
 
298
 
 
 
665
 
 
 
37,638
 
 
 
38,303
 
 
 
-
 
Commercial real estate
 
 
8
 
 
 
935
 
 
 
85
 
 
 
1,028
 
 
 
222,570
 
 
 
223,598
 
 
 
-
 
Construction and land development
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
51,947
 
 
 
51,947
 
 
 
-
 
Multifamily
 
 
66
 
 
 
-
 
 
 
-
 
 
 
66
 
 
 
44,715
 
 
 
44,781
 
 
 
-
 
Farmland
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
245
 
 
 
245
 
 
 
-
 
Commercial business
 
 
76
 
 
 
198
 
 
 
8
 
 
 
282
 
 
 
83,417
 
 
 
83,699
 
 
 
-
 
Consumer
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
487
 
 
 
487
 
 
 
-
 
Government
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
27,736
 
 
 
27,736
 
 
 
-
 
Total
 
$
3,165
 
 
$
2,945
 
 
$
3,141
 
 
$
9,251
 
 
$
637,037
 
 
$
646,288
 
 
$
71
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
4,921
 
 
$
1,751
 
 
$
3,092
 
 
$
9,764
 
 
 
162,377
 
 
$
172,141
 
 
$
225
 
Home equity
 
 
295
 
 
 
18
 
 
 
234
 
 
 
547
 
 
 
36,222
 
 
 
36,769
 
 
 
2
 
Commercial real estate
 
 
951
 
 
 
96
 
 
 
332
 
 
 
1,379
 
 
 
209,711
 
 
 
211,090
 
 
 
-
 
Construction and land development
 
 
-
 
 
 
-
 
 
 
133
 
 
 
133
 
 
 
50,613
 
 
 
50,746
 
 
 
-
 
Multifamily
 
 
319
 
 
 
-
 
 
 
-
 
 
 
319
 
 
 
43,049
 
 
 
43,368
 
 
 
-
 
Farmland
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
Commercial business
 
 
285
 
 
 
162
 
 
 
539
 
 
 
986
 
 
 
75,865
 
 
 
76,851
 
 
 
-
 
Consumer
 
 
1
 
 
 
-
 
 
 
-
 
 
 
1
 
 
 
460
 
 
 
461
 
 
 
-
 
Government
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
28,785
 
 
 
28,785
 
 
 
-
 
Total
 
$
6,772
 
 
$
2,027
 
 
$
4,330
 
 
$
13,129
 
 
$
607,082
 
 
$
620,211
 
 
$
227
 
   
 The Bancorp's loans on nonaccrual status are summarized below:
 
 (Dollars in thousands)
 
 
June 30, 2018
 
 
December 31, 2017
 
Residential real estate
 
$
3,478
 
 
$
3,509
 
Home equity
 
 
332
 
 
 
350
 
Commercial real estate
 
 
175
 
 
 
332
 
Construction and land development
 
 
-
 
 
 
133
 
Multifamily
 
 
-
 
 
 
-
 
Farmland
 
 
-
 
 
 
-
 
Commercial business
 
 
137
 
 
 
672
 
Consumer
 
 
-
 
 
 
-
 
Government
 
 
-
 
 
 
-
 
Total
 
$
4,122
 
 
$
4,996