Financing Receivables [Text Block] | 3 . Loans , Allowance for Loan Losses and Credit Quality The composition of the Company’s loan portfolio is as follows on the dates indicated. June 30, 2018 June 30, 2017 Originated Purchased Total Originated Purchased Total (Dollars in thousands) Residential real estate $ 75,873 $ 13,926 $ 89,799 $ 83,759 $ 3,377 $ 87,136 Home equity 10,457 - 10,457 13,931 101 14,032 Commercial real estate 303,399 276,051 579,450 256,280 241,724 498,004 Commercial and industrial 187,857 995 188,852 174,468 1,186 175,654 Consumer 3,244 - 3,244 4,369 - 4,369 Total loans $ 580,830 $ 290,972 $ 871,802 $ 532,807 $ 246,388 $ 779,195 Total loans include deferred loan origination costs, net, of $223 June 30, 2018 $507 June 30, 2017. Loans pledged as collateral with the FHLBB for outstanding borrowings and additional borrowing capacity totaled $128.3 $163.5 June 30, 2018 2017, During the years ended June 30, 2018 2017, four $2.8 $918 $18.3 $365 Related Party Loans Certain of the Company's related parties are credit customers of the Company in the ordinary course of business. All loans and commitments included in such transactions are on such terms, including interest rates, repayment terms and collateral, as those prevailing at the time for comparable transactions with persons who are not not As of June 30, 2018 2017, $129 $208 Past Due and Nonaccrual Loans The following is a summary of past due and nonaccrual loans: June 30, 2018 Past Due Past Due 90 Days or 90 Days or Total Non- 30-59 60-89 More-Still More- Past Total Total Accrual Days Days Accruing Nonaccrual Due Current Loans Loans (Dollars in thousands) Originated portfolio: Residential real estate $ 404 $ 181 $ - $ 1,201 $ 1,786 $ 74,087 $ 75,873 $ 2,914 Home equity 89 - - 154 243 10,214 10,457 298 Commercial real estate 27 210 - 169 406 302,993 303,399 1,499 Commercial and industrial - - - 792 792 187,065 187,857 1,368 Consumer 77 82 - 19 178 3,066 3,244 134 Total originated portfolio 597 473 - 2,335 3,405 577,425 580,830 6,213 Purchased portfolio: Residential real estate - - - 202 202 13,724 13,926 202 Commercial real estate 659 274 - 3,086 4,019 272,032 276,051 5,180 Commercial and industrial 17 - - 91 108 887 995 363 Total purchased portfolio 676 274 - 3,379 4,329 286,643 290,972 5,745 Total loans $ 1,273 $ 747 $ - $ 5,714 $ 7,734 $ 864,068 $ 871,802 $ 11,958 June 30, 2017 Past Due Past Due 90 Days or 90 Days or Total Non- 30-59 60-89 More-Still More- Past Total Total Accrual Days Days Accruing Nonaccrual Due Current Loans Loans (Dollars in thousands) Originated portfolio: Residential real estate $ 141 $ 574 $ - $ 1,398 $ 2,113 $ 81,646 $ 83,759 $ 3,337 Home equity 49 - - 58 107 13,824 13,931 58 Commercial real estate 2,266 - - 124 2,390 253,890 256,280 413 Commercial and industrial - - - 2,433 2,433 172,035 174,468 2,600 Consumer 69 50 - 32 151 4,218 4,369 103 Total originated portfolio 2,525 624 - 4,045 7,194 525,613 532,807 6,511 Purchased portfolio: Residential real estate - 1,082 - 16 1,098 2,380 3,478 1,056 Commercial real estate 173 1,997 - 2,922 5,092 236,632 241,724 6,364 Commercial and industrial - - - - - 1,186 1,186 32 Total purchased portfolio 173 3,079 - 2,938 6,190 240,198 246,388 7,452 Total loans $ 2,698 $ 3,703 $ - $ 6,983 $ 13,384 $ 765,811 $ 779,195 $ 13,963 Allowance for Loan Losses and Impaired Loans The following table sets forth activity in the Company’s allowance for loan losses: Year Ended June 30, 2018 Residential Commercial Commercial Real Estate Real Estate and Industrial Consumer Purchased Unallocated Total (Dollars in thousands) Beginning balance $ 477 $ 2,312 $ 520 $ 53 $ 303 $ - $ 3,665 Provision 302 544 170 (1 ) 395 - 1,410 Recoveries 14 - 25 40 - - 79 Charge-offs (183 ) - - (53 ) (111 ) - (347 ) Ending balance $ 610 $ 2,856 $ 715 $ 39 $ 587 $ - $ 4,807 Year Ended June 30, 2017 Residential Commercial Commercial Real Estate Real Estate and Industrial Consumer Purchased Unallocated Total (Dollars in thousands) Beginning balance $ 663 $ 1,195 $ 297 $ 62 $ 133 $ - $ 2,350 Provision (33 ) 1,099 207 54 267 - 1,594 Recoveries 33 21 16 38 - - 108 Charge-offs (186 ) (3 ) - (101 ) (97 ) - (387 ) Ending balance $ 477 $ 2,312 $ 520 $ 53 $ 303 $ - $ 3,665 Year Ended June 30, 2016 Residential Commercial Commercial Real Estate Real Estate and Industrial Consumer Purchased Unallocated Total (Dollars in thousands) Beginning balance $ 741 $ 694 $ 117 $ 35 $ 283 $ 56 $ 1,926 Provision 21 547 243 76 787 (56 ) 1,618 Recoveries 35 5 14 17 - - 71 Charge-offs (134 ) (51 ) (77 ) (66 ) (937 ) - (1,265 ) Ending balance $ 663 $ 1,195 $ 297 $ 62 $ 133 $ - $ 2,350 The following table sets forth information regarding the allowance for loan losses by portfolio segment and impairment methodology. June 30, 2018 Residential Commercial Commercial Real Estate Real Estate and Industrial Consumer Purchased Unallocated Total (Dollars in thousands) Allowance for loan losses: Individually evaluated $ 322 $ 139 $ 120 $ 6 $ - $ - $ 587 Collectively evaluated 288 2,717 595 33 - - 3,633 ASC 310-30 - - - - 587 - 587 Total $ 610 $ 2,856 $ 715 $ 39 $ 587 $ - $ 4,807 Loans: Individually evaluated $ 5,682 $ 2,882 $ 3,008 $ 292 $ - $ - $ 11,864 Collectively evaluated 80,648 300,517 184,849 2,952 - - 568,966 ASC 310-30 - - - - 290,972 - 290,972 Total $ 86,330 $ 303,399 $ 187,857 $ 3,244 $ 290,972 $ - $ 871,802 June 30, 2017 Residential Commercial Commercial Real Estate Real Estate and Industrial Consumer Purchased Unallocated Total (Dollars in thousands) Allowance for loan losses: Individually evaluated $ 252 $ 147 $ 149 $ 4 $ - $ - $ 552 Collectively evaluated 225 2,165 371 49 - - 2,810 ASC 310-30 - - - - 303 - 303 Total $ 477 $ 2,312 $ 520 $ 53 $ 303 $ - $ 3,665 Loans: Individually evaluated $ 5,676 $ 1,759 $ 2,694 $ 296 $ - $ - $ 10,425 Collectively evaluated 92,014 254,521 171,774 4,073 - - 522,382 ASC 310-30 - - - - 246,388 - 246,388 Total $ 97,690 $ 256,280 $ 174,468 $ 4,369 $ 246,388 $ - $ 779,195 The following table sets forth information regarding impaired loans. Loans accounted for under ASC 310 30 not June 30, 2018 June 30, 2017 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (Dollars in thousands) Impaired loans without a valuation allowance: Originated: Residential real estate $ 3,162 $ 3,154 $ - $ 4,052 $ 4,084 $ - Commercial real estate 1,641 1,634 - 359 354 - Commercial and industrial 2,401 2,401 - 1,870 1,870 - Consumer 271 296 - 250 271 - Purchased: Residential real estate 202 420 - 1,056 1,099 - Commercial real estate 6,601 11,276 - 8,696 11,468 - Commercial and industrial 108 1,420 - 32 65 - Total 14,386 20,601 - 16,315 19,211 - Impaired loans with a valuation allowance: Originated: Residential real estate 2,520 2,497 322 1,624 1,595 252 Commercial real estate 1,241 1,233 139 1,400 1,388 147 Commercial and industrial 607 607 120 824 824 149 Consumer 21 22 6 46 55 4 Purchased: Commercial real estate 4,748 5,362 280 3,528 3,929 176 Commercial and industrial 349 407 307 94 108 55 Total 9,486 10,128 1,174 7,516 7,899 783 Total impaired loans $ 23,872 $ 30,729 $ 1,174 $ 23,831 $ 27,110 $ 783 The following tables set forth information regarding interest income recognized on impaired loans. Year Ended June 30, 2018 Average Interest Recorded Income Investment Recognized (Dollars in thousands) Impaired loans without a valuation allowance: Originated: Residential real estate $ 3,697 $ 94 Commercial real estate 2,054 183 Commercial and industrial 1,904 105 Consumer 271 18 Purchased: Residential real estate 489 - Commercial real estate 8,754 275 Commercial and industrial 42 - Total 17,211 675 Impaired loans with a valuation allowance: Originated: Residential real estate 2,120 159 Commercial real estate 1,379 92 Commercial and industrial 753 6 Consumer 33 2 Purchased: Residential real estate 66 1 Commercial real estate 4,266 186 Commercial and industrial 251 3 Total 8,868 449 Total impaired loans $ 26,079 $ 1,124 Years Ended June 30, 2017 2016 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (Dollars in thousands) Impaired loans without a valuation allowance: Originated: Residential real estate $ 3,775 $ 106 $ 2,584 $ 151 Commercial real estate 454 19 978 31 Commercial and industrial 1,195 33 9 - Consumer 225 14 255 27 Purchased: Residential real estate 1,086 1 563 51 Commercial real estate 6,474 267 6,123 140 Commercial and industrial 28 - - - Total 13,237 440 10,512 400 Impaired loans with a valuation allowance: Originated: Residential real estate 1,798 117 1,984 96 Commercial real estate 1,219 100 1,056 63 Commercial and industrial 532 13 1 - Consumer 77 7 53 3 Purchased: Commercial real estate 1,636 86 1,346 83 Commercial and industrial 35 2 - - Total 5,297 325 4,440 245 Total impaired loans $ 18,534 $ 765 $ 14,952 $ 645 Credit Quality The Company utilizes a ten Loans rated 1 6: 1 5 6 Loans rated 7: Loans rated 8: Loans rated 9: one 8 Loans rated 10: not On an annual basis, or more often if needed, the Company formally reviews the credit quality and ratings of all loans subject to risk ratings. Annually, the Company engages an independent third may The following tables present the Company’s loans by risk rating. June 30, 2018 Originated Portfolio Commercial Commercial Residential Real Purchased Real Estate and Industrial Estate (1) Portfolio Total (Dollars in thousands) Pass (1- 6) $ 298,200 $ 184,024 $ 13,531 $ 279,111 $ 774,866 Special mention (7) 3,505 2,198 100 5,899 11,702 Substandard (8) 1,694 1,635 823 5,962 10,114 Doubtful (9) - - - - - Loss (10) - - - - - Total $ 303,399 $ 187,857 $ 14,454 $ 290,972 $ 796,682 June 30, 2017 Originated Portfolio Commercial Commercial Residential Real Purchased Real Estate and Industrial Estate (1) Portfolio Total (Dollars in thousands) Pass (1- 6) $ 253,041 $ 171,160 $ 10,039 $ 229,980 $ 664,220 Special mention (7) 2,686 2,483 71 9,622 14,862 Substandard (8) 554 825 803 6,786 8,968 Doubtful (9) - - 19 - 19 Loss (10) - - - - - Total $ 256,281 $ 174,468 $ 10,932 $ 246,388 $ 688,069 ( 1 Troubled Debt Restructurings The following table shows the Company’s post-modification balance of TDRs by type of modification. Years Ended June 30, 2018 2017 Number of Recorded Number of Recorded Contracts Investment Contracts Investment (Dollars in thousands) Extended maturity 3 $ 73 9 $ 4,537 Adjusted interest rate 1 15 6 424 Rate and maturity 4 2,302 5 1,317 Principal deferment 8 3,362 3 1,978 Court ordered concession 1 94 - - Total 17 $ 5,846 23 $ 8,256 The following table shows loans modified in a TDR and the change in the recorded investment subsequent to the modifications. Years Ended June 30, 2018 2017 Recorded Recorded Recorded Recorded Number of Investment Investment Number of Investment Investment Contracts Pre-Modification Post-Modification Contracts Pre-Modification Post-Modification (Dollars in thousands) Originated portfolio: Residential real estate 8 $ 707 $ 709 9 $ 964 $ 1,084 Home equity - - - - - - Commercial real estate 5 3,303 3,370 2 195 195 Commercial and industrial 1 655 655 2 1,867 1,937 Consumer - - - - - - Total originated portfolio 14 4,665 4,734 13 3,026 3,216 Purchased portfolio: Commercial real estate 2 820 844 9 4,895 4,946 Commercial and industrial 1 269 268 1 94 94 Total purchased portfolio 3 1,089 1,112 10 4,989 5,040 Total 17 $ 5,754 $ 5,846 23 $ 8,015 $ 8,256 As of June 30, 2018, no The Company considers TDRs past due 90 No twelve June 30, 2018 2017. ASC 310 30 The following tables present a summary of loans accounted for under ASC 310 30 Years Ended June 30, 2018 2017 2016 (Dollars in thousands) Contractually required payments receivable $ 179,726 $ 175,274 $ 148,394 Nonaccretable difference (4,321 ) (4,518 ) (2,050 ) Cash flows expected to be collected 175,405 170,756 146,344 Accretable yield (51,294 ) (57,949 ) (46,345 ) Fair value of loans acquired $ 124,111 $ 112,807 $ 99,999 Certain of the loans accounted for under ASC 310 30 not As of and for the Years Ended June 30, 2018 2017 2016 (Dollars in thousands) Loans acquired during the period $ 820 $ 1,850 $ 424 Loans at end of period 5,278 6,582 4,512 The following tables summarize the activity in the accretable yield for loans accounted for under ASC 310 30. Years Ended June 30, 2018 2017 2016 (Dollars in thousands) Beginning balance $ 131,197 $ 124,151 $ 111,449 Acquisitions 51,294 57,949 46,345 Accretion (17,947 ) (18,468 ) (16,900 ) Reclassifications from nonaccretable difference to accretable yield 5,827 6,109 7,079 Disposals and other changes (32,193 ) (38,544 ) (23,822 ) Ending balance $ 138,178 $ 131,197 $ 124,151 The following table provides information related to the unpaid principal balance and carrying amounts of ASC 310 30 June 30, 2018 June 30, 2017 Unpaid principal balance $ 318,876 $ 271,709 Carrying amount 284,317 239,583 |