| LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The Company’s loan portfolio is grouped into classes to allow management to monitor the performance by the borrower and to monitor the yield on the portfolio. Consistent with ASU 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Loan Losses, the segments are further broken down into classes to allow for differing risk characteristics within a segment. The risks associated with lending activities differ among the various loan classes and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. All of these factors may adversely impact both the borrower’s ability to repay its loans and associated collateral. The Company has various types of commercial real estate loans, which have differing levels of credit risk. Owner occupied commercial real estate loans are generally dependent upon the successful operation of the borrower’s business, with the cash flows generated from the business being the primary source of repayment of the loan. If the business suffers a downturn in sales or profitability, the borrower’s ability to repay the loan could be in jeopardy. Non-owner occupied and multi-family commercial real estate loans and non-owner occupied residential loans present a different credit risk to the Company than owner occupied commercial real estate loans, as the repayment of the loan is dependent upon the borrower’s ability to generate a sufficient level of occupancy to produce rental income that exceeds debt service requirements and operating expenses. Lower occupancy or lease rates may result in a reduction in cash flows, which hinders the ability of the borrower to meet debt service requirements, and may result in lower collateral values. The Company generally recognizes that greater risk is inherent in these credit relationships as compared to owner occupied loans mentioned above. Acquisition and development loans consist of 1-4 family residential construction and commercial and land development loans. The risk of loss on these loans is largely dependent on the Company’s ability to assess the property’s value at the completion of the project, which should exceed the property’s construction costs. During the construction phase, a number of factors could potentially negatively impact the collateral value, including cost overruns, delays in completing the project, competition, and real estate market conditions which may change based on the supply of similar properties in the area. In the event the collateral value at the completion of the project is not sufficient to cover the outstanding loan balance, the Company must rely upon other repayment sources, including, if any, the guarantors of the project or other collateral securing the loan. Commercial and industrial loans include advances to local and regional businesses for general commercial purposes and include permanent and short-term working capital, machinery and equipment financing, and may be either in the form of lines of credit or term loans. Although commercial and industrial loans may be unsecured to our highest-rated borrowers, the majority of these loans are secured by the borrower’s accounts receivable, inventory and machinery and equipment. In a significant number of these loans, the collateral also includes the business real estate or the business owner’s personal real estate or assets. Commercial and industrial loans present credit exposure to the Company, as they are more susceptible to risk of loss during a downturn in the economy as borrowers may have greater difficulty in meeting their debt service requirements and the value of the collateral may decline. The Company attempts to mitigate this risk through its underwriting standards, including evaluating the creditworthiness of the borrower and, to the extent available, credit ratings on the business. Additionally, monitoring of the loans through annual renewals and meetings with the borrowers are typical. However, these procedures cannot eliminate the risk of loss associated with commercial and industrial lending. Municipal loans consist of extensions of credit to municipalities and school districts within the Company’s market area. These loans generally present a lower risk than commercial and industrial loans, as they are generally secured by the municipality’s full taxing authority, by revenue obligations, or by its ability to raise assessments on its customers for a specific utility. The Company originates loans to its retail customers, including fixed-rate and adjustable first lien mortgage loans with the underlying 1-4 family owner occupied residential property securing the loan. The Company’s risk exposure is minimized in these types of loans through the evaluation of the creditworthiness of the borrower, including credit scores and debt-to-income ratios, and underwriting standards which limit the loan-to-value ratio to generally no more than 80% upon loan origination, unless the borrower obtains private mortgage insurance. Home equity loans, including term loans and lines of credit, present a slightly higher risk to the Company than 1-4 family first liens, as these loans can be first or second liens on 1-4 family owner occupied residential property, but can have loan-to-value ratios of no greater than 90% of the value of the real estate taken as collateral. The creditworthiness of the borrower is considered including credit scores and debt-to-income ratios. Installment and other loans’ credit risk are mitigated through prudent underwriting standards, including evaluation of the creditworthiness of the borrower through credit scores and debt-to-income ratios and, if secured, the collateral value of the assets. These loans can be unsecured or secured by assets the value of which may depreciate quickly or may fluctuate, and may present a greater risk to the Company than 1-4 family residential loans. The following table presents the loan portfolio by segment and class, excluding residential LHFS, at March 31, 2019 and December 31, 2018. (Dollars in thousands) March 31, 2019 December 31, 2018 Commercial real estate: Owner occupied $ 123,100 $ 129,650 Non-owner occupied 264,869 252,794 Multi-family 83,009 78,933 Non-owner occupied residential 101,312 100,367 Acquisition and development: 1-4 family residential construction 6,361 7,385 Commercial and land development 49,784 42,051 Commercial and industrial 169,651 160,964 Municipal 50,599 50,982 Residential mortgage: First lien 231,243 235,296 Home equity - term 11,828 12,208 Home equity - lines of credit 143,308 143,616 Installment and other loans 30,475 33,411 Total Loans (1) $ 1,265,539 $ 1,247,657 (1) Includes $127,049,000 and $135,009,000 of acquired loans at March 31, 2019 and December 31, 2018. In order to monitor ongoing risk associated with its loan portfolio and specific loans within the segments, management uses an internal grading system. The first several rating categories, representing the lowest risk to the Bank, are combined and given a “Pass” rating. Management generally follows regulatory definitions in assigning criticized ratings to loans, including "Special Mention," "Substandard," "Doubtful" or "Loss." The Special Mention category includes loans that have potential weaknesses that may, if not monitored or corrected, weaken the asset or inadequately protect the Bank's position at some future date. These assets pose elevated risk, but their weakness does not yet justify a more severe, or classified rating. Substandard loans are classified as they have a well-defined weakness, or weaknesses that jeopardize liquidation of the debt. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Substandard loans include loans that management has determined not to be impaired, as well as loans considered to be impaired. A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as Loss is deferred. Loss loans are considered uncollectible, as the borrowers are often in bankruptcy, have suspended debt repayments, or have ceased business operations. Once a loan is classified as Loss, there is little prospect of collecting the loan’s principal or interest and it is charged-off. The Company has a loan review policy and program which is designed to identify and monitor risk in the lending function. The ERM Committee, comprised of executive officers and loan department personnel, is charged with the oversight of overall credit quality and risk exposure of the Company's loan portfolio. This includes the monitoring of the lending activities of all Company personnel with respect to underwriting and processing new loans and the timely follow-up and corrective action for loans showing signs of deterioration in quality. A loan review program provides the Company with an independent review of the commercial loan portfolio on an ongoing basis. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as extended delinquencies, bankruptcy, repossession or death of the borrower occurs, which heightens awareness as to a possible credit event. Internal loan reviews are completed annually on all commercial relationships with a committed loan balance in excess of $500,000, which includes confirmation of risk rating by an independent credit officer. In addition, all commercial relationships greater than $250,000 rated Substandard, Doubtful or Loss are reviewed quarterly and corresponding risk ratings are reaffirmed by the Company's Problem Loan Committee, with subsequent reporting to the ERM Committee. The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at March 31, 2019 and December 31, 2018. (Dollars in thousands) Pass Special Mention Non-Impaired Substandard Impaired - Substandard Doubtful PCI Loans Total March 31, 2019 Commercial real estate: Owner occupied $ 117,176 $ 1,379 $ 899 $ 1,802 $ 0 $ 1,844 $ 123,100 Non-owner occupied 253,207 11,034 0 0 0 628 264,869 Multi-family 74,935 6,535 709 123 0 707 83,009 Non-owner occupied residential 97,201 2,113 1,176 294 0 528 101,312 Acquisition and development: 1-4 family residential construction 5,711 650 0 0 0 0 6,361 Commercial and land development 48,983 49 577 0 0 175 49,784 Commercial and industrial 149,895 11,700 2,744 266 0 5,046 169,651 Municipal 50,599 0 0 0 0 0 50,599 Residential mortgage: First lien 226,174 0 0 2,636 0 2,433 231,243 Home equity - term 11,793 0 0 13 0 22 11,828 Home equity - lines of credit 142,451 132 10 715 0 0 143,308 Installment and other loans 30,320 0 0 10 0 145 30,475 $ 1,208,445 $ 33,592 $ 6,115 $ 5,859 $ 0 $ 11,528 $ 1,265,539 December 31, 2018 Commercial real estate: Owner occupied $ 121,903 $ 3,024 $ 987 $ 1,880 $ 0 $ 1,856 $ 129,650 Non-owner occupied 242,136 10,008 0 0 0 650 252,794 Multi-family 71,482 5,886 717 131 0 717 78,933 Non-owner occupied residential 97,590 736 1,197 309 0 535 100,367 Acquisition and development: 1-4 family residential construction 7,385 0 0 0 0 0 7,385 Commercial and land development 41,251 25 583 0 0 192 42,051 Commercial and industrial 150,286 2,278 2,940 286 0 5,174 160,964 Municipal 50,982 0 0 0 0 0 50,982 Residential mortgage: First lien 229,971 0 0 2,877 0 2,448 235,296 Home equity - term 12,170 0 0 16 0 22 12,208 Home equity - lines of credit 142,638 165 15 798 0 0 143,616 Installment and other loans 33,229 15 1 0 0 166 33,411 $ 1,201,023 $ 22,137 $ 6,440 $ 6,297 $ 0 $ 11,760 $ 1,247,657 For commercial real estate, acquisition and development and commercial and industrial loans, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Generally, loans that are more than 90 days past due are deemed impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed to determine if the loan should be placed on nonaccrual status. Nonaccrual loans in the commercial and commercial real estate portfolios and any TDRs are, by definition, deemed to be impaired. Impairment is measured on a loan-by-loan basis for commercial, construction and restructured loans by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the underlying collateral. For loans that are deemed to be impaired for extended periods of time, periodic updates on fair values are obtained, which may include updated appraisals. Updated fair values are incorporated into the impairment analysis in the next reporting period. Loan charge-offs, which may include partial charge-offs, are taken on an impaired loan that is collateral dependent if the loan’s carrying balance exceeds its collateral’s appraised value, the loan has been identified as uncollectible, and it is deemed to be a confirmed loss. Typically, impaired loans with a charge-off or partial charge-off will continue to be considered impaired, unless the note is split into two, and management expects the performing note to continue to perform and is adequately secured. The second, or non-performing note, would be charged-off. Generally, an impaired loan with a partial charge-off may continue to have an impairment reserve on it after the partial charge-off, if factors warrant. At March 31, 2019 and December 31, 2018, nearly all of the Company’s impaired loans’ extent of impairment were measured based on the estimated fair value of the collateral securing the loan, except for TDRs. By definition, TDRs are considered impaired. All restructured loans’ impairment were determined based on discounted cash flows for those loans classified as TDRs and still accruing interest. For real estate loans, collateral generally consists of commercial real estate, but in the case of commercial and industrial loans, it could also consist of accounts receivable, inventory, equipment or other business assets. Commercial and industrial loans may also have real estate collateral. Updated appraisals are generally required every 18 months for classified commercial loans in excess of $250,000. The “as is" value provided in the appraisal is often used as the fair value of the collateral in determining impairment, unless circumstances, such as subsequent improvements, approvals, or other circumstances , dictate that another value than that provided by the appraiser is more appropriate. Generally, impaired commercial loans secured by real estate, other than performing TDRs, are measured at fair value using certified real estate appraisals that had been completed within the last 18 months. Appraised values are discounted for estimated costs to sell the property and other selling considerations to arrive at the property’s fair value. In those situations in which it is determined an updated appraisal is not required for loans individually evaluated for impairment, fair values are based on one or a combination of approaches. In those situations in which a combination of approaches is considered, the factor that carries the most consideration will be the one management believes is warranted. The approaches are: • Original appraisal – if the original appraisal provides a strong loan-to-value ratio (generally 70% or lower) and, after consideration of market conditions and knowledge of the property and area, it is determined by the Credit Administration staff that there has not been a significant deterioration in the collateral value, the original certified appraised value may be used. Discounts as deemed appropriate for selling costs are factored into the appraised value in arriving at fair value. • Discounted cash flows – in limited cases, discounted cash flows may be used on projects in which the collateral is liquidated to reduce the borrowings outstanding, and is used to validate collateral values derived from other approaches. Collateral on certain impaired loans is not limited to real estate, and may consist of accounts receivable, inventory, equipment or other business assets. Estimated fair values are determined based on borrowers’ financial statements, inventory ledgers, accounts receivable agings or appraisals from individuals with knowledge in the business. Stated balances are generally discounted for the age of the financial information or the quality of the assets. In determining fair value, liquidation discounts are applied to this collateral based on existing loan evaluation policies. The Company distinguishes Substandard loans on both an impaired and nonimpaired basis, as it places less emphasis on a loan’s classification, and increased reliance on whether the loan was performing in accordance with the contractual terms. A Substandard classification does not automatically meet the definition of impaired. Loss potential, while existing in the aggregate amount of Substandard loans, does not have to exist in individual extensions of credit classified Substandard. As a result, the Company’s methodology includes an evaluation of certain accruing commercial real estate, acquisition and development and commercial and industrial loans rated Substandard to be collectively, as opposed to individually, evaluated for impairment. Although the Company believes these loans meet the definition of Substandard, they are generally performing and management has concluded that it is likely we will be able to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Larger groups of smaller balance homogeneous loans are collectively evaluated for impairment. Generally, the Company does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. The following table, which excludes PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at March 31, 2019 and December 31, 2018. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and any partial charge-off will be recorded when final information is received. Impaired Loans with a Specific Allowance Impaired Loans with No Specific Allowance (Dollars in thousands) Recorded Unpaid Principal Related Recorded Unpaid Principal March 31, 2019 Commercial real estate: Owner occupied $ 0 $ 0 $ 0 $ 1,802 $ 2,535 Multi-family 0 0 0 123 332 Non-owner occupied residential 0 0 0 294 624 Commercial and industrial 0 0 0 266 445 Residential mortgage: First lien 455 460 35 2,181 2,801 Home equity - term 0 0 0 13 20 Home equity - lines of credit 0 0 0 715 994 Installment and other loans 0 0 0 10 18 $ 455 $ 460 $ 35 $ 5,404 $ 7,769 December 31, 2018 Commercial real estate: Owner occupied $ 0 $ 0 $ 0 $ 1,880 $ 2,576 Multi-family 0 0 0 131 336 Non-owner occupied residential 0 0 0 309 632 Commercial and industrial 0 0 0 286 457 Residential mortgage: First lien 743 743 38 2,134 2,727 Home equity - term 0 0 0 16 23 Home equity - lines of credit 0 0 0 798 1,081 $ 743 $ 743 $ 38 $ 5,554 $ 7,832 The following table, which excludes PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the three months ended March 31, 2019 and 2018. 2019 2018 (Dollars in thousands) Average Interest Average Interest Commercial real estate: Owner occupied $ 1,863 $ 0 $ 1,245 $ 1 Non-owner occupied 0 0 4,021 0 Multi-family 127 0 161 0 Non-owner occupied residential 301 0 374 0 Acquisition and development: 1-4 family residential construction 0 0 286 0 Commercial and industrial 277 0 343 0 Residential mortgage: First lien 2,788 15 3,741 15 Home equity - term 15 0 21 0 Home equity - lines of credit 758 0 496 0 Installment and other loans 7 0 11 0 $ 6,136 $ 15 $ 10,699 $ 16 The following table presents impaired loans that are TDRs, with the recorded investment at March 31, 2019 and December 31, 2018. March 31, 2019 December 31, 2018 (Dollars in thousands) Number of Recorded Number of Recorded Accruing: Commercial real estate: Owner occupied 1 $ 34 1 $ 39 Residential mortgage: First lien 11 1,060 11 1,069 Home equity - lines of credit 1 22 1 24 13 1,116 13 1,132 Nonaccruing: Commercial real estate: Owner occupied 1 36 1 37 Residential mortgage: First lien 8 641 8 658 9 677 9 695 22 $ 1,793 22 $ 1,827 There were no modified restructured loans for the three months ended March 31, 2019 or 2018. No additional commitments have been made to borrowers whose loans are considered TDRs. Management further monitors the performance and credit quality of the loan portfolio by analyzing the length of time a portfolio is past due, by aggregating loans based on its delinquencies. The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at March 31, 2019 and December 31, 2018. Days Past Due (Dollars in thousands) Current 30-59 60-89 90+ Total Non- Total March 31, 2019 Commercial real estate: Owner occupied $ 119,488 $ 0 $ 0 $ 0 $ 0 $ 1,768 $ 121,256 Non-owner occupied 264,241 0 0 0 0 0 264,241 Multi-family 82,179 0 0 0 0 123 82,302 Non-owner occupied residential 100,353 137 0 0 137 294 100,784 Acquisition and development: 1-4 family residential construction 6,361 0 0 0 0 0 6,361 Commercial and land development 49,609 0 0 0 0 0 49,609 Commercial and industrial 163,983 356 0 0 356 266 164,605 Municipal 50,599 0 0 0 0 0 50,599 Residential mortgage: First lien 224,022 3,046 166 0 3,212 1,576 228,810 Home equity - term 11,782 0 11 0 11 13 11,806 Home equity - lines of credit 141,788 460 367 0 827 693 143,308 Installment and other loans 30,260 57 3 0 60 10 30,330 Subtotal 1,244,665 4,056 547 0 4,603 4,743 1,254,011 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 1,771 0 0 73 73 0 1,844 Non-owner occupied 628 0 0 0 0 0 628 Multi-family 707 0 0 0 0 0 707 Non-owner occupied residential 528 0 0 0 0 0 528 Acquisition and development: Commercial and land development 175 0 0 0 0 0 175 Commercial and industrial 4,821 225 0 0 225 0 5,046 Residential mortgage: First lien 1,717 29 465 222 716 0 2,433 Home equity - term 17 0 5 0 5 0 22 Installment and other loans 128 17 0 0 17 0 145 Subtotal 10,492 271 470 295 1,036 0 11,528 $ 1,255,157 $ 4,327 $ 1,017 $ 295 $ 5,639 $ 4,743 $ 1,265,539 Days Past Due (Dollars in thousands) Current 30-59 60-89 90+ Total Non- Total December 31, 2018 Commercial real estate: Owner occupied $ 125,887 $ 66 $ 0 $ 0 $ 66 $ 1,841 $ 127,794 Non-owner occupied 252,144 0 0 0 0 0 252,144 Multi-family 78,085 0 0 0 0 131 78,216 Non-owner occupied residential 99,268 226 29 0 255 309 99,832 Acquisition and development: 1-4 family residential construction 7,385 0 0 0 0 0 7,385 Commercial and land development 41,822 37 0 0 37 0 41,859 Commercial and industrial 154,988 411 105 0 516 286 155,790 Municipal 50,982 0 0 0 0 0 50,982 Residential mortgage: First lien 228,714 1,592 734 0 2,326 1,808 232,848 Home equity - term 11,487 678 5 0 683 16 12,186 Home equity - lines of credit 142,394 420 28 0 448 774 143,616 Installment and other loans 33,135 66 44 0 110 0 33,245 Subtotal 1,226,291 3,496 945 0 4,441 5,165 1,235,897 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 1,784 0 72 0 72 0 1,856 Non-owner occupied 650 0 0 0 0 0 650 Multi-family 717 0 0 0 0 0 717 Non-owner occupied residential 535 0 0 0 0 0 535 Acquisition and development: Commercial and land development 192 0 0 0 0 0 192 Commercial and industrial 4,943 231 0 0 231 0 5,174 Residential mortgage: First lien 1,971 382 42 53 477 0 2,448 Home equity - term 17 5 0 0 5 0 22 Installment and other loans 149 13 0 4 17 0 166 Subtotal 10,958 631 114 57 802 0 11,760 $ 1,237,249 $ 4,127 $ 1,059 $ 57 $ 5,243 $ 5,165 $ 1,247,657 The Company maintains its ALL at a level management believes adequate for probable incurred credit losses. The ALL is established and maintained through a provision for loan losses charged to earnings. Quarterly, management assesses the adequacy of the ALL utilizing a defined methodology which considers specific credit evaluation of impaired loans as discussed above, past loan loss historical experience, and qualitative factors. Management believes its approach properly addresses relevant accounting guidance for loans individually identified as impaired and for loans collectively evaluated for impairment, and other bank regulatory guidance. In connection with its quarterly evaluation of the adequacy of the ALL, management reviews its methodology to determine if it properly addresses the current risk in the loan portfolio. For each loan class, general allowances based on quantitative factors, principally historical loss trends, are provided for loans that are collectively evaluated for impairment. An adjustment to historical loss factors may be incorporated for delinquency and other potential risk not elsewhere defined within the ALL methodology. In addition to this quantitative analysis, adjustments to the ALL requirements are allocated on loans collectively evaluated for impairment based on additional qualitative factors, including: Nature and Volume of Loans – including loan growth in the current and subsequent quarters based on the Company’s targeted growth and strategic plan, coupled with the types of loans booked based on risk management and credit culture; the number of exceptions to loan policy; and supervisory loan to value exceptions. Concentrations of Credit and Changes within Credit Concentrations – including the composition of the Company’s overall portfolio makeup and management's evaluation related to concentration risk management and the inherent risk associated with the concentrations identified. Underwriting Standards and Recovery Practices – including changes to underwriting standards and perceived impact on anticipated losses; trends in the number of exceptions to loan policy; supervisory loan to value exceptions; and administration of loan recovery practices. Delinquency Trends – including delinquency percentages noted in the portfolio relative to economic conditions; severity of the delinquencies; and whether the ratios are trending upwards or downwards. Classified Loans Trends – including internal loan ratings of the portfolio; severity of the ratings; whether the loan segment’s ratings show a more favorable or less favorable trend; and underlying market conditions and impact on the collateral values securing the loans. Experience, Ability and Depth of Management/Lending staff – including the years’ experience of senior and middle management and the lending staff; turnover of the staff; and instances of repeat criticisms of ratings. Quality of Loan Review – including the years of experience of the loan review staff; in-house versus outsourced provider of review; turnover of staff and the perceived quality of their work in relation to other external information. National and Local Economic Conditions – including trends in the consumer price index, unemployment rates, the housing price index, housing statistics compared to the prior year, bankruptcy rates, regulatory and legal environment risks and competition. The following table presents the activity in the ALL for the three months ended March 31, 2019 and 2018. Commercial Consumer (Dollars in thousands) Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total March 31, 2019 Balance, beginning of period $ 6,876 $ 817 $ 1,656 $ 98 $ 9,447 $ 3,753 $ 244 $ 3,997 $ 570 $ 14,014 Provision for loan losses 103 150 159 0 412 189 (26) 163 (175) 400 Charge-offs (25) 0 (43) 0 (68) (246) (20) (266) 0 (334) Recoveries 71 2 42 0 115 69 19 88 0 203 Balance, end of period $ 7,025 $ 969 $ 1,814 $ 98 $ 9,906 $ 3,765 $ 217 $ 3,982 $ 395 $ 14,283 March 31, 2018 Balance, beginning of period $ 6,763 $ 417 $ 1,446 $ 84 $ 8,710 $ 3,400 $ 211 $ 3,611 $ 475 $ 12,796 Provision for loan losses 7 92 144 (1) 242 (35) 7 (28) (14) 200 Charge-offs 0 0 0 0 0 0 (71) (71) 0 (71) Recoveries 0 1 0 0 1 17 57 74 0 75 Balance, end of period $ 6,770 $ 510 $ 1,590 $ 83 $ 8,953 $ 3,382 $ 204 $ 3,586 $ 461 $ 13,000 The following table summarizes the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at March 31, 2019 and December 31, 2018: Commercial Consumer (Dollars in thousands) Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total March 31, 2019 Loans allocated by: Individually evaluated for impairment $ 2,219 $ 0 $ 266 $ 0 $ 2,485 $ 3,364 $ 10 $ 3,374 $ 0 $ 5,859 Collectively evaluated for impairment 570,071 56,145 169,385 50,599 846,200 383,015 30,465 413,480 0 1,259,680 $ 572,290 $ 56,145 $ 169,651 $ 50,599 $ 848,685 $ 386,379 $ 30,475 $ 416,854 $ 0 $ 1,265,539 ALL allocated by: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 $ 0 $ 35 $ 0 $ 35 $ 0 $ 35 Collectively evaluated for impairment 7,025 969 1,814 98 9,906 3,730 217 3,947 395 14,248 $ 7,025 $ 969 $ 1,814 $ 98 $ 9,906 $ 3,765 $ 217 $ 3,982 $ 395 $ 14,283 December 31, 2018 Loans allocated by: Individually evaluated for impairment $ 2,320 $ 0 $ 286 $ 0 $ 2,606 $ 3,691 $ 0 $ 3,691 $ 0 $ 6,297 Collectively evaluated for impairment 559,424 49,436 160,678 50,982 820,520 387,429 33,411 420,840 0 1,241,360 $ 561,744 $ 49,436 $ 160,964 $ 50,982 $ 823,126 $ 391,120 $ 33,411 $ 424,531 $ 0 $ 1,247,657 ALL allocated by: Individually evaluated for impairment $ 0 $ 0 $ 0 $ 0 $ 0 $ 38 $ 0 $ 38 $ 0 $ 38 Collectively evaluated for impairment 6,876 817 1,656 98 9,447 3,715 244 3,959 570 13,976 $ 6,876 $ 817 $ 1,656 $ 98 $ 9,447 $ 3,753 $ 244 $ 3,997 $ 570 $ 14,014 |
