Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5 - Loans and Leases The loan and lease portfolio consists of loans and leases originated by the Corporation, as well as loans acquired in mergers and acquisitions. These mergers and acquisitions include the January 2015 acquisition of CBH, the November 2012 transaction with First Bank of Delaware (“FBD”) and the July 2010 acquisition of First Keystone Financial, Inc. (“FKF”). Many of the tables in this footnote are presented for all loans as well as supplemental tables for originated acquired A. The table below details all portfolio loans and leases as of the dates indicated: September 30, 2016 December 31, 2015 Loans held for sale $ 11,506 $ 8,987 Real estate loans: Commercial mortgage $ 1,089,621 $ 964,259 Home equity lines and loans 206,578 209,473 Residential mortgage 418,408 406,404 Construction 133,269 90,421 Total real estate loans 1,847,876 1,670,557 Commercial and industrial 565,497 524,515 Consumer 23,717 22,129 Leases 56,267 51,787 Total portfolio loans and leases 2,493,357 2,268,988 Total loans and leases $ 2,504,863 $ 2,277,975 Loans with fixed rates $ 1,135,918 $ 1,103,622 Loans with adjustable or floating rates 1,368,945 1,174,353 Total loans and leases $ 2,504,863 $ 2,277,975 Net deferred loan origination fees included in the above loan table $ (795 ) $ (70 ) originated September 30, 2016 December 31, 2015 Loans held for sale $ 11,506 $ 8,987 Real estate loans: Commercial mortgage $ 920,304 $ 772,571 Home equity lines and loans 174,774 171,189 Residential mortgage 344,540 316,487 Construction 133,269 87,155 Total real estate loans 1,572,887 1,347,402 Commercial and industrial 523,798 462,746 Consumer 23,597 21,934 Leases 56,267 51,787 Total portfolio loans and leases 2,176,549 1,883,869 Total loans and leases $ 2,188,055 $ 1,892,856 Loans with fixed rates $ 988,721 $ 932,575 Loans with adjustable or floating rates 1,199,334 960,281 Total originated loans and leases $ 2,188,055 $ 1,892,856 Net deferred loan origination fees included in the above loan table $ (795 ) $ (70 ) acquired September 30, 2016 December 31, 2015 Real estate loans: Commercial mortgage $ 169,317 $ 191,688 Home equity lines and loans 31,804 38,284 Residential mortgage 73,868 89,917 Construction — 3,266 Total real estate loans 274,989 323,155 Commercial and industrial 41,699 61,769 Consumer 120 195 Total portfolio loans and leases 316,808 385,119 Total loans and leases $ 316,808 $ 385,119 Loans with fixed rates $ 147,197 $ 171,047 Loans with adjustable or floating rates 169,611 214,072 Total acquired loans and leases $ 316,808 $ 385,119 B. Components of the net investment in leases are detailed as follows: (dollars in thousands) September 30, 2016 December 31, 2015 Minimum lease payments receivable $ 62,950 $ 58,422 Unearned lease income (8,875 ) (8,919 ) Initial direct costs and deferred fees 2,192 2,284 Total $ 56,267 $ 51,787 C. Non-Performing Loans and Leases (1) The following table details all (dollars in thousands) September 30, 2016 December 31, 2015 Non-accrual loans and leases Commercial mortgage $ 139 $ 829 Home equity lines and loans 2,827 2,027 Residential mortgage 2,845 3,212 Construction — 34 Commercial and industrial 3,960 4,133 Consumer 2 — Leases 110 9 Total $ 9,883 $ 10,244 (1) Purchased credit-impaired loans, which have been recorded at their fair values at acquisition, and which are performing, are excluded from this table, with the exception of $3 89 thousand and $661 thousand of purchased credit-impaired loans as of September 30, 2016 and December 31, 2015, respectively, which became non-performing subsequent to acquisition. The following table details non-performing originated (dollars in thousands) September 30, 2016 December 31, 2015 Non-accrual originated loans and leases Commercial mortgage $ 83 $ 279 Home equity lines and loans 2,633 1,788 Residential mortgage 1,851 1,964 Construction — 34 Commercial and industrial 2,440 3,044 Consumer 2 — Leases 110 9 Total $ 7,119 $ 7,118 The following table details non-performing acquired (1) (dollars in thousands) September 30, 2016 December 31, 2015 Non-accrual acquired loans and leases Commercial mortgage $ 56 $ 550 Home equity lines and loans 194 239 Residential mortgage 994 1,248 Commercial and industrial 1,520 1,089 Total $ 2,764 $ 3,126 (1) Purchased credit-impaired loans, which have been recorded at their fair values at acquisition, and which are performing, are excluded from this table, with the exception of $389 thousand and $661 thousand of purchased credit-impaired loans as of September 30, 2016 and December 31, 2015, respectively, which became non-performing subsequent to acquisition. D. Purchased Credit-Impaired Loans The outstanding principal balance and related carrying amount of credit-impaired loans, for which the Corporation applies ASC 310-30, Accounting for Purchased Loans with Deteriorated Credit Quality (dollars in thousands) September 30, 2016 December 31, 2015 Outstanding principal balance $ 18,727 $ 24,879 Carrying amount (1) $ 12,627 $ 16,846 (1) Includes $4 20 thousand and $699 thousand of purchased credit-impaired loans as of September 30, 2016 and December 31, 2015, respectively, for which the Corporation could not estimate the timing or amount of expected cash flows to be collected at acquisition, and for which no accretable yield is recognized. Additionally, the table above includes $3 89 thousand and $661 thousand of purchased credit-impaired loans as of September 30, 2016 and December 31, 2015, respectively, which became non-performing subsequent to acquisition, which are disclosed in Note 5C, above, and which also have no accretable yield. The following table presents changes in the accretable discount on purchased credit-impaired loans, for which the Corporation applies ASC 310-30, for the nine months ended September 30, 2016: (dollars in thousands) Accretable Balance, December 31, 2015 $ 6,115 Accretion (1,555 ) Reclassifications from nonaccretable difference 7 Additions/adjustments 68 Disposals (1,274 ) Balance, September 30, 2016 $ 3,361 E. Age Analysis of Past Due Loans and Leases The following tables present an aging of all Accruing Loans and Leases (dollars in thousands) As of September 30, 2016 30 – 59 Days 60 – 89 Days Over 89 Days Total Past Due Current Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases Commercial mortgage $ 87 $ — $ — $ 87 $ 1,089,395 $ 1,089,482 $ 139 $ 1,089,621 Home equity lines and loans — — — — 203,751 203,751 2,827 206,578 Residential mortgage 1,523 271 — 1,794 413,769 415,563 2,845 418,408 Construction — — — — 133,269 133,269 — 133,269 Commercial and industrial 276 5 — 281 561,256 561,537 3,960 565,497 Consumer 26 — 26 23,689 23,715 2 23,717 Leases 271 31 — 302 55,855 56,157 110 56,267 $ 2,183 $ 307 $ — $ 2,490 $ 2,480,984 $ 2,483,474 $ 9,883 $ 2,493,357 Accruing Loans and Leases (dollars in thousands) As of December 31, 2015 30 – 59 Days 60 – 89 Days Over 89 Days Total Past Due Current Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases Commercial mortgage $ 1,126 $ 211 $ — $ 1,337 $ 962,093 $ 963,430 $ 829 $ 964,259 Home equity lines and loans 1,596 15 — 1,611 205,835 207,446 2,027 209,473 Residential mortgage 1,923 74 — 1,997 401,195 403,192 3,212 406,404 Construction — — — — 90,387 90,387 34 90,421 Commercial and industrial 99 39 — 138 520,244 520,382 4,133 524,515 Consumer 20 — — 20 22,109 22,129 — 22,129 Leases 375 123 — 498 51,280 51,778 9 51,787 $ 5,139 $ 462 $ — $ 5,601 $ 2,253,143 $ 2,258,744 $ 10,244 $ 2,268,988 The following tables present an aging of originated Accruing Loans and Leases (dollars in thousands) As of September 30, 2016 30 – 59 Days 60 – 89 Days Over 89 Days Total Past Due Current Total A ccruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases Commercial mortgage $ 87 $ — $ — $ 87 $ 920,134 $ 920,221 $ 83 $ 920,304 Home equity lines and loans — — — — 172,141 172,141 2,633 174,774 Residential mortgage 1,079 193 — 1,272 341,417 342,689 1,851 344,540 Construction — — — — 133,269 133,269 — 133,269 Commercial and industrial 240 5 — 245 521,113 521,358 2,440 523,798 Consumer 26 — — 26 23,569 23,595 2 23,597 Leases 271 31 — 302 55,855 56,157 110 56,267 $ 1,703 $ 229 $ — $ 1,932 $ 2,167,498 $ 2,169,430 $ 7,119 $ 2,176,549 Accruing Loans and Leases (dollars in thousands) As of December 31, 2015 30 – 59 Days 60 – 89 Days Over 89 Days Total Past Due Current Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases Commercial mortgage $ 1,016 $ 155 $ — $ 1,171 $ 771,121 $ 772,292 $ 279 $ 772,571 Home equity lines and loans 1,445 — — 1,445 167,956 169,401 1,788 171,189 Residential mortgage 1,475 9 — 1,484 313,039 314,523 1,964 316,487 Construction — — — — 87,121 87,121 34 87,155 Commercial and industrial — — — — 459,702 459,702 3,044 462,746 Consumer 20 — — 20 21,914 21,934 — 21,934 Leases 375 123 — 498 51,280 51,778 9 51,787 $ 4,331 $ 287 $ — $ 4,618 $ 1,872,133 $ 1,876,751 $ 7,118 $ 1,883,869 The following tables present an aging of acquired Accruing Loans and Leases (dollars in thousands) As of September 30, 2016 30 – 59 Days 60 – 89 Days Over 89 Days Total Past Due Current Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases Commercial mortgage $ — $ — $ — $ — $ 169,261 $ 169,261 $ 56 $ 169,317 Home equity lines and loans — — — — 31,610 31,610 194 31,804 Residential mortgage 444 78 — 522 72,352 72,874 994 73,868 Construction — — — — — — — — Commercial and industrial 36 — — 36 40,143 40,179 1,520 41,699 Consumer — — — — 120 120 — 120 $ 480 $ 78 $ — $ 558 $ 313,486 $ 314,044 $ 2,764 $ 316,808 Accruing Loans and Leases (dollars in thousands) As of December 31, 2015 30 – 59 Days 60 – 89 Days Over 89 Days Total Past Due Current Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans a nd Leases Commercial mortgage $ 110 $ 56 $ — $ 166 $ 190,972 $ 191,138 $ 550 $ 191,688 Home equity lines and loans 151 15 — 166 37,879 38,045 239 38,284 Residential mortgage 448 65 — 513 88,156 88,669 1,248 89,917 Construction — — — — 3,266 3,266 — 3,266 Commercial and industrial 99 39 — 138 60,542 60,680 1,089 61,769 Consumer — — — — 195 195 — 195 $ 808 $ 175 $ — $ 983 $ 381,010 $ 381,993 $ 3,126 $ 385,119 F. Allowance for Loan and Lease Losses (the “Allowance”) The following table details the roll-forward of the Allowance for the three and nine months ended September 30, 2016: (dollars in thousands) Commercial Home Equity Residential Construction Commercial Consumer Leases Unallocated Total Balance, June 30, 2016 $ 6,021 $ 1,185 $ 1,949 $ 2,144 $ 5,045 $ 127 $ 565 $ — $ 17,036 Charge-offs — (402 ) (4 ) — (112 ) (64 ) (240 ) — (822 ) Recoveries 4 27 2 — 16 7 62 — 118 Provision for loan and lease losses 244 402 44 (28 ) 500 74 176 — 1,412 Balance, September 30, 2016 $ 6,269 $ 1,212 $ 1,991 $ 2,116 $ 5,449 $ 144 $ 563 $ — $ 17,744 (dollars in thousands) Commercial Home Equity Residential Construction Commercial Consumer Leases Unallocated Total Balance, December 31, 2015 $ 5,199 $ 1,307 $ 1,740 $ 1,324 $ 5,609 $ 142 $ 518 $ 18 $ 15,857 Charge-offs (110 ) (488 ) (275 ) — (144 ) (131 ) (650 ) — (1,798 ) Recoveries 10 31 46 63 67 23 178 — 418 Provision for loan and lease losses 1,170 362 480 729 (83 ) 110 517 (18 ) 3,267 Balance September 30, 2016 $ 6,269 $ 1,212 $ 1,991 $ 2,116 $ 5,449 $ 144 $ 563 $ — $ 17,744 The following tables detail the roll-forward of the Allowance for the three and nine months ended September 30, 2015: (dollars in thousands) Commercial Home Equity Residential Construction Commercial Consumer Leases Unallocated Total Balance, June 30, 2015 $ 3,659 $ 1,969 $ 1,808 $ 1,462 $ 4,886 $ 324 $ 499 $ 352 $ 14,959 Charge-offs — — (32 ) — (44 ) (32 ) (200 ) — (308 ) Recoveries — 21 21 1 6 6 29 — 84 Provision for loan and lease losses 1,360 (244 ) 438 (474 ) (205 ) (20 ) 179 166 1,200 Balance, September 30, 2015 $ 5,019 $ 1,746 $ 2,235 $ 989 $ 4,643 $ 278 $ 507 $ 518 $ 15,935 (dollars in thousands) Commercial Home Equity Residential Construction Commercial Consumer Leases Unallocated Total Balance, December 31, 2014 $ 3,948 $ 1,917 $ 1,736 $ 1,367 $ 4,533 $ 238 $ 468 $ 379 $ 14,586 Charge-offs (50 ) (204 ) (546 ) — (315 ) (108 ) (325 ) — (1,548 ) Recoveries 23 89 30 3 32 14 87 — 278 Provision for loan and lease losses 1,098 (56 ) 1,015 (381 ) 393 134 277 139 2,619 Balance September 30, 2015 $ 5,019 $ 1,746 $ 2,235 $ 989 $ 4,643 $ 278 $ 507 $ 518 $ 15,935 The following table details the allocation of the Allowance for all (dollars in thousands) Commercial Home Equity Residential Construction Commercial Consumer Leases Unallocated Total As of September 30, 2016 Allowance on loans and leases: Individually evaluated for impairment $ — $ — $ 74 $ — $ 519 $ 6 $ — $ — $ 599 Collectively evaluated for impairment 6,269 1,212 1,917 2,116 4,930 138 563 — 17,145 Purchased credit-impaired (1) — — — — — — — — — Total $ 6,269 $ 1,212 $ 1,991 $ 2,116 $ 5,449 $ 144 $ 563 $ — $ 17,744 As of December 31, 2015 Allowance on loans and leases: Individually evaluated for impairment $ — $ 115 $ 54 $ — $ 519 $ 5 $ — $ — $ 693 Collectively evaluated for impairment 5,199 1,192 1,686 1,324 5,090 137 518 18 15,164 Purchased credit-impaired (1) — — — — — — — — — Total $ 5,199 $ 1,307 $ 1,740 $ 1,324 $ 5,609 $ 142 $ 518 $ 18 $ 15,857 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. The following table details the carrying value for all (dollars in thousands) Commercial Home Equity Residential Construction Commercial Consumer Leases Total As of September 30, 2016 Carrying value of loans and leases: Individually evaluated for impairment $ 1,396 $ 2,889 $ 7,463 $ — $ 3,816 $ 32 $ — $ 15,596 Collectively evaluated for impairment 1,077,637 203,579 410,939 133,269 559,759 23,685 56,267 2,465,135 Purchased credit-impaired (1) 10,588 110 6 — 1,922 — — 12,626 Total $ 1,089,621 $ 206,578 $ 418,408 $ 133,269 $ 565,497 $ 23,717 $ 56,267 $ 2,493,357 As of December 31, 2015 Carrying value of loans and leases: Individually evaluated for impairment $ 349 $ 1,980 $ 7,754 $ 33 $ 4,240 $ 30 $ — $ 14,386 Collectively evaluated for impairment 952,448 207,378 398,635 89,625 515,784 22,099 51,787 2,237,756 Purchased credit-impaired (1) 11,462 115 15 763 4,491 — — 16,846 Total $ 964,259 $ 209,473 $ 406,404 $ 90,421 $ 524,515 $ 22,129 $ 51,787 $ 2,268,988 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. The following table details the allocation of the Allowance for originated (dollars in thousands) Commercial Home Equity Residential Construction Commercial Consumer Leases Unallocated Total As of September 30, 2016 Allowance on loans and leases: Individually evaluated for impairment $ — $ — $ 46 $ — $ 519 $ 6 $ — $ — $ 571 Collectively evaluated for impairment 6,269 1,212 1,917 2,116 4,930 138 563 — 17,145 Total $ 6,269 $ 1,212 $ 1,963 $ 2,116 $ 5,449 $ 144 $ 563 $ — $ 17,716 As of December 31, 2015 Allowance on loans and leases: Individually evaluated for impairment $ — $ 115 $ 54 $ — $ 519 $ 5 $ — $ — $ 693 Collectively evaluated for impairment 5,199 1,192 1,686 1,324 5,090 137 518 18 15,164 Total $ 5,199 $ 1,307 $ 1,740 $ 1,324 $ 5,609 $ 142 $ 518 $ 18 $ 15,857 The following table details the carrying value for originated (dollars in thousands) Commercial Home Equity Residential Construction Commercial Consumer Leases Total As of September 30, 2016 Carrying value of loans and leases: Individually evaluated for impairment $ 1,340 $ 2,783 $ 4,319 $ — $ 2,599 $ 32 $ — $ 11,073 Collectively evaluated for impairment 918,965 171,990 340,221 133,269 521,199 23,565 56,267 2,165,476 Total $ 920,305 $ 174,773 $ 344,540 $ 133,269 $ 523,798 $ 23,597 $ 56,267 $ 2,176,549 As of December 31, 2015 Carrying value of loans and leases: Individually evaluated for impairment $ 279 $ 1,832 $ 4,394 $ 33 $ 3,229 $ 30 $ — $ 9,797 Collectively evaluated for impairment 772,292 169,357 312,093 87,122 459,517 21,904 51,787 1,874,072 Total $ 772,571 $ 171,189 $ 316,487 $ 87,155 $ 462,746 $ 21,934 $ 51,787 $ 1,883,869 The following table details the allocation of the Allowance for acquired (dollars in thousands) Commercial Home Equity Residential Construction Commercial Consumer Leases Unallocated Total As of September 30, 2016 Allowance on loans and leases: Individually evaluated for impairment $ — $ — $ 28 $ — $ — $ — $ — $ — $ 28 Collectively evaluated for impairment — — — — — — — — — Purchased credit-impaired (1) — — — — — — — — — Total $ — $ — $ 28 $ — $ — $ — $ — $ — $ 28 As of December 31, 2015 Allowance on loans and leases: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment — — — — — — — — — Purchased credit-impaired (1) — — — — — — — — — Total $ — $ — $ — $ — $ — $ — $ — $ — $ — (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. The following table details the carrying value for acquired (dollars in thousands) Commercial Home Equity Residential Construction Commercial Consumer Leases Total As of September 30, 2016 Carrying value of loans and leases: Individually evaluated for impairment $ 56 $ 106 $ 3,144 $ — $ 1,217 $ — $ — $ 4,523 Collectively evaluated for impairment 158,672 31,589 70,718 — 38,560 120 — 299,659 Purchased credit-impaired (1) 10,588 110 6 — 1,922 — — 12,626 Total $ 169,316 $ 31,805 $ 73,868 $ — $ 41,699 $ 120 $ — $ 316,808 As of December 31, 2015 Carrying value of loans and leases: Individually evaluated for impairment $ 70 $ 148 $ 3,360 $ — $ 1,011 $ — $ — $ 4,589 Collectively evaluated for impairment 180,156 38,021 86,542 2,503 56,267 195 — 363,684 Purchased credit-impaired (1) 11,462 115 15 763 4,491 — — 16,846 Total $ 191,688 $ 38,284 $ 89,917 $ 3,266 $ 61,769 $ 195 $ — $ 385,119 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. As part of the process of determining the Allowance for the different segments of the loan and lease portfolio, Management considers certain credit quality indicators. For the commercial mortgage, construction and commercial and industrial loan segments, periodic reviews of the individual loans are performed by both in-house staff as well as external loan reviewers. The result of these reviews is reflected in the risk grade assigned to each loan. These internally assigned grades are as follows: • Pass – Loans considered satisfactory with no indications of deterioration. • Special mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. • Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. • Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. In addition, for the remaining segments of the loan and lease portfolio, which include residential mortgage, home equity lines and loans, consumer, and leases, the credit quality indicator used to determine this component of the Allowance is based on performance status. The following tables detail the carrying value of all Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Commercial Mortgage Construction Commercial and Industrial Total September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Pass $ 1,077,611 $ 946,887 $ 130,993 $ 88,653 $ 554,451 $ 510,040 $ 1,763,055 $ 1,545,580 Special Mention 1,257 7,029 — — 1,953 1,123 3,210 8,152 Substandard 10,753 10,343 2,276 1,768 7,400 13,352 20,429 25,463 Doubtful — — — — 1,693 — 1,693 — Total $ 1,089,621 $ 964,259 $ 133,269 $ 90,421 $ 565,497 $ 524,515 $ 1,788,387 $ 1,579,195 Credit Risk Profile by Payment Activity (dollars in thousands) Residential Mortgage Home Equity Lines and Loans Consumer Leases Total September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Performing $ 415,563 $ 403,192 $ 203,751 $ 207,446 $ 23,715 $ 22,129 $ 56,157 $ 51,778 $ 699,186 $ 684,545 Non-performing 2,845 3,212 2,827 2,027 2 — 110 9 5,784 5,248 Total $ 418,408 $ 406,404 $ 206,578 $ 209,473 $ 23,717 $ 22,129 $ 56,267 $ 51,787 $ 704,970 $ 689,793 The following tables detail the carrying value of originated Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Commercial Mortgage Construction Commercial and Industrial Total September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Pass $ 910,554 $ 758,240 $ 130,993 $ 86,065 $ 517,761 $ 454,454 $ 1,559,308 $ 1,298,759 Special Mention 1,257 7,029 — — 1,845 1,015 3,102 8,044 Substandard 8,493 7,302 2,276 1,090 4,067 7,277 14,836 15,669 Doubtful — — — — 125 — 125 — Total $ 920,304 $ 772,571 $ 133,269 $ 87,155 $ 523,798 $ 462,746 $ 1,577,371 $ 1,322,472 Credit Risk Profile by Payment Activity (dollars in thousands) Residential Mortgage Home Equity Lines and Loans Consumer Leases Total September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Performing $ 342,689 $ 314,523 $ 172,141 $ 169,401 $ 23,595 $ 21,934 $ 56,157 $ 51,778 $ 594,582 $ 557,636 Non-performing 1,851 1,964 2,633 1,788 2 — 110 9 4,596 3,761 Total $ 344,540 $ 316,487 $ 174,774 $ 171,189 $ 23,597 $ 21,934 $ 56,267 $ 51,787 $ 599,178 $ 561,397 The following tables detail the carrying value of acquired Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Commercial Mortgage Construction Commercial and Industrial Total September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Pass $ 167,057 $ 188,647 $ — $ 2,588 $ 36,690 $ 55,586 $ 203,747 $ 246,821 Special Mention — — — — 108 108 108 108 Substandard 2,260 3,041 — 678 3,333 6,075 5,593 9,794 Doubtful — — — — 1,568 — 1,568 — Total $ 169,317 $ 191,688 $ — $ 3,266 $ 41,699 $ 61,769 $ 211,016 $ 256,723 Credit Risk Profile by Payment Activity (dollars in thousands) Residential Mortgage Home Equity Lines and Loans Consumer Total September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Performing $ 72,874 $ 88,669 $ 31,610 $ 38,045 $ 120 $ 195 $ 104,604 $ 126,909 Non-performing 994 1,248 194 239 — — 1,188 1,487 Total $ 73,868 $ 89,917 $ 31,804 $ 38,284 $ 120 $ 195 $ 105,792 $ 128,396 G. Troubled Debt Restructurings (“TDRs”) The restructuring of a loan is considered a “troubled debt restructuring” if both of the following conditions are met: (i) the borrower is experiencing financial difficulties, and (ii) the creditor has granted a concession. The most common concessions granted include one or more modifications to the terms of the debt, such as (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, (d) a reduction in the contractual payment amount for either a short period or remaining term of the loan, and (e) for leases, a reduced lease payment. A less common concession granted is the forgiveness of a portion of the principal. The determination of whether a borrower is experiencing financial difficulties takes into account not only the current financial condition of the borrower, but also the potential financial condition of the borrower, were a concession not granted. Similarly, the determination of whether a concession has been granted is very subjective in nature. For example, simply extending the term of a loan at its original interest rate or even at a higher interest rate could be interpreted as a concession unless the borrower could readily obtain similar credit terms from a different lender. The following table presents the balance of TDRs as of the indicated dates: (dollars in thousands) September 30, 2016 December 31, 2015 TDRs included in nonperforming loans and leases $ 1,680 $ 1,935 TDRs in compliance with modified terms 6,305 4,880 Total TDRs $ 7,985 $ 6,815 The following tables present information regarding loan and lease modifications categorized as TDRs for the three and nine months ended September 30, 2016: For the Three Months Ended September 30, 2016 (dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial mortgage 1 $ 1,257 $ 1,257 Home equity loans and lines 2 53 53 Leases 2 88 88 Total 5 $ 1,398 $ 1,398 For the Nine Months Ended September 30, 2016 (dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial mortgage 1 $ 1,257 $ 1,257 Home equity loans and lines 5 257 210 Residential mortgage 1 27 27 Leases 4 156 156 Total 11 $ 1,697 $ 1,650 The following tables present information regarding the types of loan and lease modifications made for the three and nine months ended September 30, 2016: Number of Contracts for the Three Months Ended September 30, 2016 Interest Rate Change Loan Term Extension Interest Rate Change and Term Extension Interest Rate Change and/or Interest-Only Period Contractual Payment Reduction (Leases only) Forgiveness of Interest Forgiveness of Principal Commercial mortgage — 1 — — — — — Home equity loans and lines — — 2 — — — — Leases — — — — 2 — — Total — 1 2 — 2 — — Number of Contracts for the Nine Months Ended September 30, 2016 Interest Rate Change Loan Term Extension Interest Rate Change and Term Extension Interest Rate Change and/or Interest-Only Period Contractual Payment Reduction (Leases only) Forgiveness of Interest Forgiveness of Principal Commercial mortgage — 1 — — — — — Home equity loans and lines — — 2 2 — — 1 Residential mortgage — — 1 — — — — Leases — — — — 4 — — Total — 1 3 2 4 — 1 During the three and nine months ended September 30, 2016, there were no defaults of loans or leases that had been previously modified to troubled debt restructurings. H. Impaired Loans The following tables detail the recorded investment and principal balance of impaired loans by portfolio segment, their related Allowance and interest income recognized as of the dates or for the periods indicated: (dollars in thousands) Recorded (2) Principal Related Average Interest Cash-Basis As of or for the three months ended September 30, 2016 Impaired loans with related Allowance: Residential mortgage $ 624 $ 624 $ 74 $ 638 $ 7 $ — Commercial and industrial 1,832 1,832 519 1,901 1 — Consumer 30 30 6 31 — — Total $ 2,486 $ 2,486 $ 599 $ 2,570 $ 8 $ — Impaired loans without related Allowance (1) (3) Commercial mortgage $ 1,395 $ 1,395 $ — $ 1,398 $ 15 $ — Home equity lines and loans 2,891 3,498 — 3,651 1 — Residential mortgage 6,838 7,170 — 8,136 53 — Commercial and industrial 1,984 2,544 — 3,799 1 — Consumer 2 2 — 2 — — Total $ 13,110 $ 14,609 $ — $ 16,986 $ 70 $ — Grand total $ 15,596 $ 17,095 $ 599 $ 19,556 $ 78 $ — (1) The table above does not include the recorded investment of $ 203 thousand of impaired leases without a related Allowance. (2) Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. (3) This table excludes all purchased credit-impaired loans, which are discussed in Note 5D, above. (dollars in thousands) Recorded (2) Principal Related Average Interest Cash-Basis As of or for the nine months ended September 30, 2016 Impaired loans with related Allowance: Residential mortgage $ 624 $ 624 $ 74 $ 640 $ 21 $ — Commercial and industrial 1,832 1,832 519 1,944 4 — Consumer 30 30 6 32 1 — Total $ 2,486 $ 2,486 $ 599 $ 2,616 $ 26 $ — Impaired loans without related Allowance (1) (3) Commercial mortgage $ 1,395 $ 1,395 $ — $ 1,399 $ 46 $ — Home equity lines and loans 2,891 3,498 — 3,675 22 — Residential mortgage 6,838 7,170 — 8,131 164 — Commercial and industrial 1,984 2,544 — 4,246 30 — Consumer 2 2 — 2 — — Total $ 13,110 $ 14,609 $ — $ 17,453 $ 262 $ — Grand total $ 15,596 $ 17,095 $ 599 $ 20,069 $ 288 $ — (1) The table above does not include the recorded investment of $ 203 thousand of impaired leases without a related Allowance. (2) Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. (3) This table excludes all purchased credit-impaired loans, which are discussed in Note 5D, above. (dollars in thousands) Recorded (2) Principal Related Average Interest Cash-Basis As of or for the three months ended September 30, 2015 Impaired loans with related Allowance: Residential mortgage $ 707 $ 721 $ 76 $ 723 $ 8 $ — Commercial and industrial 2,988 3,077 629 3,278 13 — Consumer 33 32 7 33 — — Total $ 3,728 $ 3,830 $ 712 $ 4,034 $ 21 $ — Impaired loans without related Allowance (1) (3) Commercial mortgage $ 444 $ 453 $ — $ 461 $ — $ — Home equity lines and loans 1,758 1,764 — 1,886 1 — Residential mortgage 7,374 8,263 — 8,643 31 — Construction 34 804 — 879 — — Commercial and industrial 2,025 2,084 — 2,182 1 — Total $ 11,635 $ 13,368 $ — $ 14,051 $ 33 $ — Grand total $ 15,363 $ 17,198 $ 712 $ 18,085 $ 54 $ — (1) The table above does not include the recorded investment of $ 178 thousand of impaired leases without a related Allowance. (2) Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. (3) This table excludes all purchased credit-impaired loans, which are discussed in Note 5D, above. (dollars in thousands) Recorded (2) Principal Related Average Interest Cash-Basis As of or for the nine months ended September 30, 2015 Impaired loans with related Allowance: Residential mortgage $ 707 $ 721 $ 76 $ 726 $ 25 $ — Commercial and industrial 2,988 3,077 629 3,225 39 — Consumer 33 32 7 33 1 — Total $ 3,728 $ 3,830 $ 712 $ 3,984 $ 65 $ — Impaired loans without related Allowance (1) (3) Commercial mortgage $ 444 $ 453 $ — $ 461 $ — $ — Home equity lines and loans 1,758 1,764 — 1,900 4 — Residential mortgage 7,374 8,263 — 8,687 92 — Construction 34 804 — 926 — — Commercial and industrial 2,025 2,084 — 1,727 4 — Total $ 11,635 $ 13,368 $ — $ 13,701 $ 100 $ — Grand total $ 15,363 $ 17,198 $ 712 $ 17,685 $ 165 $ — (1) The table above does not include the recorded investment of $ 178 thousand of impaired leases without a related Allowance. (2) Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. (3) This table excludes all purchased credit-impaired loans, which are discussed in Note 5D, above. (dollars in thousands) Recorded Investment (2) Principal Balance Related Allowance As of December 31, 2015 Impaired loans with related allowance: Home equity lines and loans $ 115 $ 115 $ 115 Residential mortgage 515 527 54 Commercial and industrial 2,011 2,002 519 Consumer 30 30 5 Total $ 2,671 $ 2,674 $ 693 Impaired loans (1)(3) Commercial mortgage $ 349 $ 358 $ — Home equity lines and loans 1,865 2,447 — Residential mortgage 7,239 8,166 — Construction 33 996 — Commercial and industrial 2,229 3,089 — Total $ 11,715 $ 15,056 $ — Grand total $ 14,386 $ 17,730 $ 693 (1) The table above does not include the recorded investment of $77 thousand of impaired leases without a related Allowance. (2) Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. (3) This table excludes all purchased credit-impaired loans, which are discussed in Note 5D, above. I. Loan Mark Loans acquired in mergers and acquisitions are rec |