Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ( 4 Loans and leases Composition of loans, net of deferred fees and costs, by loan portfolio class follows: (In thousands) March 31, 2019 December 31, 2018 Commercial and industrial $ 827,747 $ 833,524 Construction and development, excluding undeveloped land (1) 216,115 225,050 Undeveloped land 28,433 30,092 Real estate mortgage Commercial investment 586,648 588,610 Owner occupied commercial 428,163 426,373 1-4 family residential 277,847 276,017 Home equity - first lien 48,656 49,500 Home equity - junior lien 66,837 70,947 Subtotal: Real estate mortgage 1,408,151 1,411,447 Consumer 45,263 48,058 Total loans $ 2,525,709 $ 2,548,171 ( 1 no Loans to directors and their associates, including loans to companies for which directors are principal owners and executive officers totaled $52.8 $52.7 March 31, 2019 December 31, 2018, Consistent with regulatory guidance, Bancorp categorizes loans into credit risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. Pass-rated loans included all risk-rated loans other than those classified as other assets especially mentioned, substandard, and doubtful, which are defined below: ● Other assets especially mentioned (“OAEM”): Loans classified as OAEM have potential weaknesses that deserve management's close attention. These potential weaknesses may ● Substandard: Loans classified as substandard are inadequately protected by the paying capacity of the obligor or of collateral pledged, if any. Loans so classified have well-defined weaknesses that jeopardize ultimate repayment of the debt. Default is a distinct possibility if the deficiencies are not ● Substandard non-performing: Loans classified as substandard non-performing have all the characteristics of substandard loans and have been placed on non-accrual status or have been accounted for as troubled debt restructurings. Loans are placed on non-accrual status when prospects for recovering both principal and accrued interest are considered doubtful or when a default of principal or interest has existed for 90 ● 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 repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Internally assigned risk grades of loans by loan portfolio class classification category follows: (In thousands) Substandard Total March 31, 2019 Pass OAEM Substandard non-performing Doubtful loans Commercial and industrial $ 791,469 $ 18,453 $ 17,607 $ 218 $ — $ 827,747 Construction and development, excluding undeveloped land 216,115 — — — — 216,115 Undeveloped land 28,433 — — — — 28,433 Real estate mortgage: Commercial investment 580,591 1,145 4,224 688 — 586,648 Owner occupied commercial 408,777 13,628 4,292 1,466 — 428,163 1-4 family residential 275,293 1,522 161 871 — 277,847 Home equity - first lien 48,587 — — 69 — 48,656 Home equity - junior lien 66,129 235 19 454 — 66,837 Subtotal: Real estate mortgage 1,379,377 16,530 8,696 3,548 — 1,408,151 Consumer 45,263 — — — — 45,263 Total $ 2,460,657 $ 34,983 $ 26,303 $ 3,766 $ — $ 2,525,709 December 31, 2018 Commercial and industrial $ 803,073 $ 11,516 $ 18,703 $ 232 $ — $ 833,524 Construction and development, excluding undeveloped land 220,532 4,200 — 318 — 225,050 Undeveloped land 29,618 — — 474 — 30,092 Real estate mortgage: Commercial investment 586,543 1,815 15 237 — 588,610 Owner occupied commercial 411,722 9,030 4,500 1,121 — 426,373 1-4 family residential 273,537 1,544 162 774 — 276,017 Home equity - first lien 49,500 — — — — 49,500 Home equity - junior lien 70,437 249 19 242 — 70,947 Subtotal: Real estate mortgage 1,391,739 12,638 4,696 2,374 — 1,411,447 Consumer 48,058 — — — — 48,058 Total $ 2,493,020 $ 28,354 $ 23,399 $ 3,398 $ — $ 2,548,171 The following table presents the activity in the allowance by loan portfolio class: Type of loan Construction and development Commercial excluding and undeveloped Undeveloped Real estate (In thousands) industrial land land mortgage Consumer Total Balance, January 1, 2019 $ 11,965 $ 1,760 $ 752 $ 10,681 $ 376 $ 25,534 Provision (credit) (302 ) (79 ) (90 ) 1,300 (229 ) 600 Charge-offs (3 ) — — — (96 ) (99 ) Recoveries 102 203 — 20 104 429 Balance, March 31, 2019 $ 11,762 $ 1,884 $ 662 $ 12,001 $ 155 $ 26,464 Construction and development Commercial excluding and undeveloped Undeveloped Real estate (In thousands) industrial land land mortgage Consumer Total Balance, January 1, 2018 $ 11,276 $ 1,724 $ 521 $ 11,012 $ 352 $ 24,885 Provision (credit) 761 296 (39 ) (309 ) 26 735 Charge-offs (1,409 ) — — — (119 ) (1,528 ) Recoveries 10 — — 4 97 111 Balance, March 31, 2018 $ 10,638 $ 2,020 $ 482 $ 10,707 $ 356 $ 24,203 The considerations by Bancorp in computing its allowance are determined based on the various risk characteristics of each loan segment. Relevant risk characteristics are as follows: ● Commercial and industrial: Loans in this category are made to businesses. Generally these loans are secured by assets of the business and repayment is expected from cash flows of the business. A decline in the strength of the business or a weakened economy and resultant decreased consumer and/or business spending may ● Construction and development, excluding undeveloped land: Loans in this category primarily include owner-occupied and investment construction loans and commercial development projects. In most cases, construction loans require only interest to be paid during construction. Upon completion or stabilization, the construction loans generally convert to permanent financing in the real estate mortgage segment, requiring principal amortization. Repayment of development loans is derived from sale of lots or units. Credit risk is affected by construction delays, cost overruns, market conditions and availability of permanent financing; to the extent such permanent financing is not ● Undeveloped land: Loans in this category are secured by land acquired for development by the borrower, but for which no not ● Real estate mortgage: Loans in this category are made to and secured by owner-occupied residential real estate, owner-occupied real estate used for business purposes, and income-producing investment properties. For owner occupied residential and owner-occupied commercial real estate, repayment is dependent on financial strength of the borrower. For income-producing investment properties, repayment is dependent on financial strength of tenants, and to a lesser extent the borrowers’ financial strength, once the project is stabilized. Underlying properties are generally located in Bancorp's primary market area. Cash flows of income producing investment properties may ● Consumer: Loans in this category may Impaired loans include non-accrual loans and accruing loans accounted for as troubled debt restructurings (“TDRs”), which continue to accrue interest. Non-performing loans include the balance of impaired loans plus any loans over 90 $454 90 March 31, 2019, $745 December 31, 2018, none March 31, 2018. The following table presents the recorded investment in non-accrual loans: (In thousands) March 31, 2019 December 31, 2018 Commercial and industrial $ 193 $ 192 Construction and development, excluding undeveloped land — 318 Undeveloped land — 474 Real estate mortgage Commercial investment 317 138 Owner occupied commercial 1,466 586 1-4 family residential 843 760 Home equity - first lien — — Home equity - junior lien 454 143 Subtotal: Real estate mortgage 3,080 1,627 Consumer — — Total loans $ 3,273 $ 2,611 In the course of working with borrowers, Bancorp may not At March 31, 2019 December 31, 2018, $39 $42 not three March 31, 2019 March 31, 2018, No twelve March 31, 2019 three March 31, 2019. may At March 31, 2019 December 31, 2018, not As of March 31, 2019 $795 $528 December 31, 2018. The following tables present the balance in the recorded investment in loans and allowance for loans by portfolio loan class and based on impairment evaluation method: (In thousands) Loans Allowance March 31, 2019 Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total loans Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total allowance Commercial and industrial $ 218 $ 827,529 $ - $ 827,747 $ 25 $ 11,737 $ - $ 11,762 Construction and development, excluding undeveloped land - 216,115 - 216,115 - 1,884 - 1,884 Undeveloped land - 28,433 - 28,433 - 662 - 662 Real estate mortgage 3,094 1,405,057 - 1,408,151 14 11,987 - 12,001 Consumer - 45,263 - 45,263 - 155 - 155 Total $ 3,312 $ 2,522,397 $ - $ 2,525,709 $ 39 $ 26,425 $ - $ 26,464 (In thousands) Loans Allowance December 31, 2018 Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total loans Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total allowance Commercial and industrial $ 220 $ 833,304 $ - $ 833,524 $ 28 $ 11,937 $ - $ 11,965 Construction and development, excluding undeveloped land 318 224,732 - 225,050 - 1,760 - 1,760 Undeveloped land 474 29,618 - 30,092 - 752 - 752 Real estate mortgage 1,641 1,409,806 - 1,411,447 14 10,667 - 10,681 Consumer - 48,058 - 48,058 - 376 - 376 Total $ 2,653 $ 2,545,518 $ - $ 2,548,171 $ 42 $ 25,492 $ - $ 25,534 The following tables present loans individually evaluated for impairment by loan portfolio class: As of Three months ended March 31, 2019 March 31, 2019 Unpaid Average Interest Recorded principal Related recorded income (In thousands) investment balance allowance investment recognized Impaired loans with no related allowance: Commercial and industrial $ 193 $ 710 $ - $ 192 $ - Construction and development, excluding undeveloped land - - - 159 - Undeveloped land - - - 237 - Real estate mortgage Commercial investment 317 317 - 227 - Owner occupied commercial 1,466 1,904 - 1,026 - 1-4 family residential 843 843 - 801 - Home equity - first lien - - - - - Home equity - junior lien 454 454 - 299 - Subtotal: Real estate mortgage 3,080 3,518 - 2,353 - Consumer - - - - - Subtotal $ 3,273 $ 4,228 $ - $ 2,941 $ - Impaired loans with an allowance: Commercial and industrial $ 25 $ 25 $ 25 $ 27 $ 1 Construction and development, excluding undeveloped land - - - - - Undeveloped land - - - - - Real estate mortgage Commercial investment - - - - - Owner occupied commercial - - - - - 1-4 family residential 14 14 14 14 - Home equity - first lien - - - - - Home equity - junior lien - - - - - Subtotal: Real estate mortgage 14 14 14 14 - Consumer - - - - - Subtotal $ 39 $ 39 $ 39 $ 41 $ 1 Total: Commercial and industrial $ 218 $ 735 $ 25 $ 219 $ 1 Construction and development, excluding undeveloped land - - - 159 - Undeveloped land - - - 237 - Real estate mortgage Commercial investment 317 317 - 227 - Owner occupied commercial 1,466 1,904 - 1,026 - 1-4 family residential 857 857 14 815 - Home equity - first lien - - - - - Home equity - junior lien 454 454 - 299 - Subtotal: Real estate mortgage 3,094 3,532 14 2,367 - Consumer - - - - - Total impaired loans $ 3,312 $ 4,267 $ 39 $ 2,982 $ 1 As of Three months ended December 31, 2018 March 31, 2018 Unpaid Average Interest Recorded principal Related recorded income (In thousands) investment balance allowance investment recognized Impaired loans with no related allowance: Commercial and industrial $ 192 $ 707 $ - $ 161 $ - Construction and development, excluding undeveloped land 318 489 - 437 - Undeveloped land 474 506 - 474 - Real estate mortgage Commercial investment 138 138 - 35 - Owner occupied commercial 586 1,023 - 1,503 - 1-4 family residential 760 760 - 1,242 - Home equity - first lien - - - - - Home equity - junior lien 143 143 - 73 - Subtotal: Real estate mortgage 1,627 2,064 - 2,853 - Consumer - - - 23 - Subtotal $ 2,611 $ 3,766 $ - $ 3,948 $ - Impaired loans with an allowance: Commercial and industrial $ 28 $ 28 $ 28 $ 1,851 $ - Construction and development, excluding undeveloped land - - - - - Undeveloped land - - - 24 - Real estate mortgage Commercial investment - - - - - Owner occupied commercial - - - 897 - 1-4 family residential 14 14 14 14 - Home equity - first lien - - - - - Home equity - junior lien - - - - - Subtotal: Real estate mortgage 14 14 14 911 - Consumer - - - - - Subtotal $ 42 $ 42 $ 42 $ 2,786 $ - Total: Commercial and industrial $ 220 $ 735 $ 28 $ 2,012 $ - Construction and development, excluding undeveloped land 318 489 - 437 - Undeveloped land 474 506 - 498 - Real estate mortgage - - - - - Commercial investment 138 138 - 35 - Owner occupied commercial 586 1,023 - 2,400 - 1-4 family residential 774 774 14 1,256 - Home equity - first lien - - - - - Home equity - junior lien 143 143 - 73 - Subtotal: Real estate mortgage 1,641 2,078 14 3,764 - Consumer - - - 23 - Total impaired loans $ 2,653 $ 3,808 $ 42 $ 6,734 $ - Differences between recorded investment amounts and unpaid principal balance amounts less related allowance are due to partial charge-offs which have occurred over the lives of certain loans. The following table presents the aging of the recorded investment in loans by portfolio class: Recorded (In thousands) 90 or more investment days past due > 90 days 30-59 days 60-89 days (includes all Total Total and March 31, 2019 Current past due past due non-accrual) past due loans accruing Commercial and industrial $ 827,165 $ 366 $ 23 $ 193 $ 582 $ 827,747 $ - Construction and development, excluding undeveloped land 216,115 - - - - 216,115 - Undeveloped land 28,433 - - - - 28,433 - Real estate mortgage: Commercial investment 585,673 232 56 687 975 586,648 370 Owner occupied commercial 426,347 350 - 1,466 1,816 428,163 - 1-4 family residential 276,143 594 252 858 1,704 277,847 15 Home equity - first lien 48,498 49 40 69 158 48,656 69 Home equity - junior lien 66,188 171 24 454 649 66,837 - Subtotal: Real estate mortgage 1,402,849 1,396 372 3,534 5,302 1,408,151 454 Consumer 45,239 24 - - 24 45,263 - Total $ 2,519,801 $ 1,786 $ 395 $ 3,727 $ 5,908 $ 2,525,709 $ 454 December 31, 2018 Commercial and industrial $ 832,923 $ 197 $ 200 $ 204 $ 601 $ 833,524 $ 12 Construction and development, excluding undeveloped land 224,732 - - 318 318 225,050 - Undeveloped land 29,552 66 - 474 540 30,092 - Real estate mortgage: Commercial investment 586,884 1,382 107 237 1,726 588,610 99 Owner occupied commercial 421,143 2,732 1,377 1,121 5,230 426,373 535 1-4 family residential 274,547 374 336 760 1,470 276,017 - Home equity - first lien 49,321 179 - - 179 49,500 - Home equity - junior lien 70,467 182 56 242 480 70,947 99 Subtotal: Real estate mortgage 1,402,362 4,849 1,876 2,360 9,085 1,411,447 733 Consumer 48,058 - - - - 48,058 - Total $ 2,537,627 $ 5,112 $ 2,076 $ 3,356 $ 10,544 $ 2,548,171 $ 745 |