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) June 30, 2019 December 31, 2018 Commercial and industrial $ 860,085 $ 833,524 Construction and development, excluding undeveloped land(1) 222,632 225,050 Undeveloped land 35,169 30,092 Real estate mortgage: Commercial investment 696,421 588,610 Owner occupied commercial 452,719 426,373 1-4 family residential 338,957 276,017 Home equity - first lien 46,012 49,500 Home equity - junior lien 67,948 70,947 Subtotal: Real estate mortgage 1,602,057 1,411,447 Consumer 43,937 48,058 Total loans(2) $ 2,763,880 $ 2,548,171 ( 1 no ( 2 Loans to directors and their related interests, including loans to companies for which directors are principal owners and executive officers totaled $53.7 million and $52.7 million, as of June 30, 2019 December 31, 2018, The following table summarizes loans acquired in the King acquisition based upon valuation method: May 1, 2019 Contractual Non-accretable Accretable Acquisition-day (In thousands) receivable amount amount fair value Commercial and industrial $ 8,249 $ — $ (23 ) $ 8,226 Construction and development 10,764 — 43 10,807 Raw Land 7,974 — 43 8,017 Real estate mortgage: Commercial real estate 84,219 — (408 ) 83,811 1-4 family residential 50,556 — 322 50,878 Home equity - first lien 196 — 3 199 Home equity - junior lien 679 — 5 684 Subtotal: Real estate mortgage 135,650 — (78 ) 135,572 Consumer 1,528 — (3 ) 1,525 Total loans ASC 310-20 164,165 — (18 ) 164,147 Commercial and industrial Construction and development — — — — Raw Land — — — — Real estate mortgage: Commercial real estate 1,351 (1,351 ) — — 1-4 family residential 228 (228 ) — — Home equity - first lien — — — — Home equity - junior lien — — — — Subtotal: Real estate mortgage 1,579 (1,579 ) — — Consumer — — — — Total loans ASC 310 purchased- credit-impaired loans 1,579 (1,579 ) — — Total loans $ 165,744 $ (1,579 ) $ (18 ) $ 164,147 Purchased-Credit-Impaired (“PCI”) Loans The Bank acquired PCI loans on May 1, 2019 December 31, 2012 310 30, Management utilized the following PCI criteria for the May 1, 2019 ● Loans assigned a non-accretable mark ● Loans classified as substandard, doubtful or loss ● Loans classified as non-accrual when acquired ● Loans past due 90 The following table reconciles the contractually required and carrying amounts of all PCI loans: In thousands June 30, 2019 December 31, 2018 Contractually-required principal $ 1,864 $ 432 Non-accretable amount (1,577 ) — Accretable amount (57 ) (68 ) Carrying value of loans $ 230 $ 364 The following table presents a rollforward of the accretable amount on all PCI loans: Three months ended Six months ended June 30, June 30, (In thousands) 2019 2018 2019 2018 Balance, beginning of period $ (62 ) $ (95 ) $ (68 ) $ (106 ) Transfers between non-accretable and accretable — — — — Net accretion into interest income on loans, including loan fees 5 10 11 21 Generated from acquisition of King — — — — Balance, end of period $ (57 ) $ (85 ) $ (57 ) $ (85 ) 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 June 30, 2019 Pass OAEM Substandard non-performing Doubtful loans Commercial and industrial $ 817,645 $ 23,907 $ 18,241 $ 292 $ — $ 860,085 Construction and development, excluding undeveloped land 222,632 — — — — 222,632 Undeveloped land 35,169 — — — — 35,169 Real estate mortgage: Commercial investment 687,304 4,202 4,213 702 — 696,421 Owner occupied commercial 429,070 17,757 4,228 1,664 — 452,719 1-4 family residential 336,312 1,686 159 800 — 338,957 Home equity - first lien 46,012 — — — — 46,012 Home equity - junior lien 67,236 224 18 470 — 67,948 Subtotal: Real estate mortgage 1,565,934 23,869 8,618 3,636 — 1,602,057 Consumer 43,937 — — — — 43,937 Total $ 2,685,317 $ 47,776 $ 26,859 $ 3,928 $ — $ 2,763,880 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, Three months ended Commercial excluding and undeveloped Undeveloped Real estate (In thousands) industrial land land mortgage Consumer Total Balance, April 1, 2019 $ 11,762 $ 1,884 $ 662 $ 12,001 $ 155 $ 26,464 Provision (credit) 92 (74 ) (61 ) 10 33 - Charge-offs — — — (13 ) (148 ) (161 ) Recoveries 4 — — 32 77 113 Balance, June 30, 2019 $ 11,858 $ 1,810 $ 601 $ 12,030 $ 117 $ 26,416 Construction and development, Commercial excluding and undeveloped Undeveloped Real estate (In thousands) industrial land land mortgage Consumer Total Balance, April 1, 2018 $ 10,638 $ 2,020 $ 482 $ 10,707 $ 356 $ 24,203 Provision (credit) 2,008 (82 ) 19 (795 ) 85 1,235 Charge-offs (530 ) — — — (117 ) (647 ) Recoveries 2 — — 2 78 82 Balance, June 30, 2018 $ 12,118 $ 1,938 $ 501 $ 9,914 $ 402 $ 24,873 Type of loan Construction and development, Six months ended 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) (210 ) (153 ) (151 ) 1,310 (196 ) 600 Charge-offs (3 ) — — (13 ) (244 ) (260 ) Recoveries 106 203 — 52 181 542 Balance, June 30, 2019 $ 11,858 $ 1,810 $ 601 $ 12,030 $ 117 $ 26,416 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) 2,769 214 (20 ) (1,104 ) 111 1,970 Charge-offs (1,939 ) — — — (236 ) (2,175 ) Recoveries 12 — — 6 175 193 Balance, June 30, 2018 $ 12,118 $ 1,938 $ 501 $ 9,914 $ 402 $ 24,873 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 the construction period. 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. Underlying properties are generally located in Bancorp's primary market areas. A decline in the strength of the borrower or a weakened economy may 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 The following table presents the recorded investment in non-accrual loans: (In thousands) June 30, 2019 December 31, 2018 Commercial and industrial $ 96 $ 192 Construction and development, excluding undeveloped land — 318 Undeveloped land — 474 Real estate mortgage: Commercial investment 305 138 Owner occupied commercial 1,444 586 1-4 family residential 715 760 Home equity - first lien — — Home equity - junior lien 470 143 Subtotal: Real estate mortgage 2,934 1,627 Consumer — — Total non-accrual loans $ 3,030 $ 2,611 In the course of working with borrowers, Bancorp may not not three six June 30, 2019 2018. June 30, 2019 December 31, 2018 (In thousands) Specific Additional Specific Additional reserve commitment reserve commitment TDRs Balance allocation to lend Balance allocation to lend Commercial and industrial $ 23 $ 23 $ — $ 28 $ 28 $ — 1-4 family residential 14 14 — 14 14 — Total TDRs $ 37 $ 37 $ — $ 42 $ 42 $ — As of June 30, 2019 1 4 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 June 30, 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 $ 119 $ 859,966 $ — $ 860,085 $ 23 $ 11,835 $ — $ 11,858 Construction and development, excluding undeveloped land — 222,632 — 222,632 — 1,810 — 1,810 Undeveloped land — 35,169 — 35,169 — 601 — 601 Real estate mortgage 2,948 1,599,109 — 1,602,057 14 12,016 — 12,030 Consumer — 43,937 — 43,937 — 117 — 117 Total $ 3,067 $ 2,760,813 $ — $ 2,763,880 $ 37 $ 26,379 $ — $ 26,416 (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 Six months ended June 30, 2019 June 30, 2019 June 30, 2019 Unpaid Average Interest Average Interest Recorded principal Related recorded income recorded income (In thousands) investment balance allowance investment recognized investment recognized Impaired loans with no related allowance: Commercial and industrial $ 96 $ 96 $ — $ 144 $ — $ 160 $ — Construction and development, excluding undeveloped land — — — — — 106 — Undeveloped land — — — — — 158 — Real estate mortgage Commercial investment 306 306 — 311 — 254 — Owner occupied commercial 1,444 1,882 — 1,455 — 1,165 — 1-4 family residential 715 715 — 779 — 773 — Home equity - first lien — - — — — — — Home equity - junior lien 469 469 — 462 — 356 — Subtotal: Real estate mortgage 2,934 3,372 — 3,007 — 2,548 — Consumer — — — — — — — Subtotal $ 3,030 $ 3,468 $ — $ 3,151 $ — $ 2,972 $ — Impaired loans with an allowance: Commercial and industrial $ 23 $ 23 $ 23 $ 24 $ — $ 26 $ 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 — 14 — Home equity - first lien — — — — — — — Home equity - junior lien — — — — — — — Subtotal: Real estate mortgage 14 14 14 14 — 14 — Consumer — — — — — — — Subtotal $ 37 $ 37 $ 37 $ 38 $ — $ 40 $ 1 Total: Commercial and industrial $ 119 $ 119 $ 23 $ 168 $ — $ 186 $ 1 Construction and development, excluding undeveloped land — — — — — 106 — Undeveloped land — — — — — 158 — Real estate mortgage Commercial investment 306 306 — 311 — 254 — Owner occupied commercial 1,444 1,882 — 1,455 — 1,165 — 1-4 family residential 729 729 14 793 — 787 — Home equity - first lien — — — - — - — Home equity - junior lien 469 469 — 462 — 356 — Subtotal: Real estate mortgage 2,948 3,386 14 3,021 — 2,562 — Consumer — — — — — — — Total impaired loans $ 3,067 $ 3,505 $ 37 $ 3,189 $ — $ 3,012 $ 1 As of Three months ended Six months ended December 31, 2018 June 30, 2018 June 30, 2018 Unpaid Average Interest Average Interest Recorded principal Related recorded income recorded income (In thousands) investment balance allowance investment recognized investment recognized Impaired loans with no related allowance: Commercial and industrial $ 192 $ 707 $ — $ 225 $ — $ 531 $ — Construction and development, excluding undeveloped land 318 489 — 525 — 571 — Undeveloped land 474 506 — 474 — 474 — Real estate mortgage Commercial investment 138 138 — - — 17 — Owner occupied commercial 586 1,023 — 2,335 — 2,667 — 1-4 family residential 760 760 — 1,350 — 1,446 — Home equity - first lien — - — - — - — Home equity - junior lien 143 143 — 17 — 22 — Subtotal: Real estate mortgage 1,627 2,064 — 3,702 — 4,152 — Consumer — — — 46 — 30 — Subtotal $ 2,611 $ 3,766 $ — $ 4,972 $ — $ 5,758 $ — Impaired loans with an allowance: Commercial and industrial $ 28 $ 28 $ 28 $ 3,074 $ — $ 2,061 $ — Construction and development, excluding undeveloped land — — — — — — — Undeveloped land — — — 48 — 32 — Real estate mortgage Commercial investment — — — — — — — Owner occupied commercial — — — 1,645 — 1,097 — 1-4 family residential 14 14 14 14 — 14 — Home equity - first lien — — — — — — — Home equity - junior lien — — — — — — — Subtotal: Real estate mortgage 14 14 14 1,659 — 1,111 — Consumer — — — — — — — Subtotal $ 42 $ 42 $ 42 $ 4,781 $ — $ 3,204 $ — Total: Commercial and industrial $ 220 $ 735 $ 28 $ 3,299 $ — $ 2,592 $ — Construction and development, excluding undeveloped land 318 489 — 525 — 571 — Undeveloped land 474 506 — 522 — 506 — Real estate mortgage Commercial investment 138 138 — - — 17 — Owner occupied commercial 586 1,023 — 3,980 — 3,764 — 1-4 family residential 774 774 14 1,364 — 1,460 — Home equity - first lien — — — - — - — Home equity - junior lien 143 143 — 17 — 22 — Subtotal: Real estate mortgage 1,641 2,078 14 5,361 — 5,263 — Consumer — — — 46 — 30 — Total impaired loans $ 2,653 $ 3,808 $ 42 $ 9,753 $ — $ 8,962 $ — 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 June 30, 2019 Current past due past due non-accrual) past due loans accruing Commercial and industrial $ 858,853 $ 572 $ 391 $ 269 $ 1,232 $ 860,085 $ 173 Construction and development, excluding undeveloped land 222,632 — — — — 222,632 — Undeveloped land 35,169 — — — — 35,169 — Real estate mortgage: Commercial investment 692,612 1 3,107 701 3,809 696,421 396 Owner occupied commercial 450,140 643 272 1,664 2,579 452,719 220 1-4 family residential 336,548 749 873 787 2,409 338,957 72 Home equity - first lien 45,963 49 — — 49 46,012 — Home equity - junior lien 67,408 70 — 470 540 67,948 — Subtotal: Real estate mortgage 1,592,671 1,512 4,252 3,622 9,386 1,602,057 688 Consumer 43,901 9 27 — 36 43,937 — Total $ 2,753,226 $ 2,093 $ 4,670 $ 3,891 $ 10,654 $ 2,763,880 $ 861 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 |