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) September 30, 2019 December 31, 2018 Commercial and industrial $ 876,127 $ 833,524 Construction and development, excluding undeveloped land(1) 248,296 225,050 Undeveloped land 35,169 30,092 Real estate mortgage: Commercial investment 727,531 588,610 Owner occupied commercial 470,678 426,373 1-4 family residential 331,747 276,017 Home equity - first lien 51,015 49,500 Home equity - junior lien 72,533 70,947 Subtotal: Real estate mortgage 1,653,504 1,411,447 Consumer 43,568 48,058 Total loans(2) $ 2,856,664 $ 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 $45 million and $53 million, as of September 30, 2019 December 31, 2018. The following table summarizes loans acquired in the Company’s May 1, 2019 September 30, 2019. 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 — (456 ) 83,763 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 — (126 ) 135,524 Consumer 1,528 — (73 ) 1,455 Total loans ASC 310-20 164,165 — (136 ) 164,029 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 ) $ (136 ) $ 164,029 Pu rchased Credit Impaired Loans The Bank acquired PCI loans on May 1, 2019 2013 310 30, Loans and Debt Securities Acquired with Deteriorated Credit Quality 12 Management utilized the following criteria in determining which loans were classified as PCI loans for its KSB acquisition: Loans for which management assigned a non-accretable mark ● Loans classified by management 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 September 30, 2019 December 31, 2018 Contractually-required principal $ 1,575 $ 432 Non-accretable amount (1,575 ) — Accretable amount - (68 ) Carrying value of loans $ - $ 364 The following table presents a rollforward of the accretable amount on all PCI loans: Three months ended Nine months ended September 30, September 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 62 10 68 21 Balance, end of period $ - $ (85 ) $ - $ (85 ) Credit Quality Indicators 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 OAEM, substandard, and doubtful, which are defined below: ● OAEM: Loans classified as OAEM have potential weaknesses requiring management's heightened 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 TDRs. 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 September 30, 2019 Pass OAEM Substandard non-performing Doubtful loans Commercial and industrial $ 838,507 $ 13,924 $ 23,488 $ 208 $ — $ 876,127 Construction and development, excluding undeveloped land 248,296 — — — — 248,296 Undeveloped land 35,169 — — — — 35,169 Real estate mortgage: Commercial investment 715,432 1,835 8,690 1,574 — 727,531 Owner occupied commercial 456,106 6,825 6,338 1,409 — 470,678 1-4 family residential 329,678 1,690 157 222 — 331,747 Home equity - first lien 51,015 — — — — 51,015 Home equity - junior lien 72,034 213 18 268 — 72,533 Subtotal: Real estate mortgage 1,624,265 10,563 15,203 3,473 — 1,653,504 Consumer 43,568 — — — — 43,568 Total $ 2,789,805 $ 24,487 $ 38,691 $ 3,681 $ — $ 2,856,664 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, July 1, 2019 $ 11,858 $ 1,810 $ 601 $ 12,030 $ 117 $ 26,416 Provision (credit) 32 (108 ) 195 269 12 400 Charge-offs (91 ) — — — (139 ) (230 ) Recoveries 154 — — 46 91 291 Balance, September 30, 2019 $ 11,953 $ 1,702 $ 796 $ 12,345 $ 81 $ 26,877 Construction and development, Commercial excluding and undeveloped Undeveloped Real estate (In thousands) industrial land land mortgage Consumer Total Balance, July 1, 2018 $ 12,118 $ 1,938 $ 501 $ 9,914 $ 402 $ 24,873 Provision (credit) (628 ) 31 81 1,211 40 735 Charge-offs (451 ) — — (14 ) (96 ) (561 ) Recoveries 62 — — 51 62 175 Balance, September 30, 2018 $ 11,101 $ 1,969 $ 582 $ 11,162 $ 408 $ 25,222 Type of loan Construction and development, Nine 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) (178 ) (261 ) 44 1,579 (184 ) 1,000 Charge-offs (94 ) — — (13 ) (383 ) (490 ) Recoveries 260 203 — 98 272 833 Balance, September 30, 2019 $ 11,953 $ 1,702 $ 796 $ 12,345 $ 81 $ 26,877 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) 2,141 245 61 107 151 2,705 Charge-offs (2,390 ) — — (14 ) (332 ) (2,736 ) Recoveries 74 — — 57 237 368 Balance, September 30, 2018 $ 11,101 $ 1,969 $ 582 $ 11,162 $ 408 $ 25,222 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: ● C&I: 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 decreased consumer and/or business spending may ● C&D, excluding undeveloped land: Loans in this category primarily include owner-occupied and investment C&D loans and commercial development projects. In most cases, C&D loans require only interest to be paid during the construction period. Upon completion or stabilization, C&D 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. For owner occupied residential and owner-occupied CRE, 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. Cash flows of income producing investment properties may ● Consumer: Loans in this category may Impaired loans include non-accrual loans and loans past due 90 The following table presents the recorded investment in non-accrual and loans past due 90 Past Due 90-Days-or-More Non-accrual and Still Accruing Interest (In thousands) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Commercial and industrial $ 186 $ 192 $ - $ 12 Construction and development, excluding undeveloped land — 318 — — Undeveloped land — 474 — — Real estate mortgage: Commercial investment 741 138 396 99 Owner occupied commercial 1,409 586 — 535 1-4 family residential 137 760 72 — Home equity - first lien — — — — Home equity - junior lien 249 143 19 99 Subtotal: Real estate mortgage 2,536 1,627 487 733 Consumer — — — — Total loans $ 2,722 $ 2,611 $ 487 $ 745 In the course of working with borrowers, Bancorp may not not three nine September 30, 2019 2018. September 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 $ 22 $ 22 $ — $ 28 $ 28 $ — 1-4 family residential 13 13 — 14 14 — Total TDRs $ 35 $ 35 $ — $ 42 $ 42 $ — As of September 30, 2019 1 4 December 31, 2018. The following tables present the balance in the recorded investment in loans and by portfolio loan class and based on impairment evaluation method: (In thousands) Loans Allowance September 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 $ 208 $ 875,919 $ — $ 876,127 $ 22 $ 11,931 $ — $ 11,953 Construction and development, excluding undeveloped land — 248,296 — 248,296 — 1,702 — 1,702 Undeveloped land — 35,169 — 35,169 — 796 — 796 Real estate mortgage 2,549 1,650,955 — 1,653,504 13 12,332 — 12,345 Consumer — 43,568 — 43,568 — 81 — 81 Total $ 2,757 $ 2,853,907 $ — $ 2,856,664 $ 35 $ 26,842 $ — $ 26,877 (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 table’s present loans individually evaluated for impairment by loan portfolio class: As of Three months ended Nine months ended September 30, 2019 September 30, 2019 September 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 $ 186 $ 176 $ — $ 136 $ — $ 164 $ — Construction and development, excluding undeveloped land — — — — — 80 — Undeveloped land — — — — — 119 — Real estate mortgage Commercial investment 741 741 — 524 — 376 — Owner occupied commercial 1,409 1,847 — 1,427 — 1,226 — 1-4 family residential 137 137 — 426 — 614 — Home equity - first lien — — — — — — — Home equity - junior lien 249 249 — 359 — 329 — Subtotal: Real estate mortgage 2,536 2,974 — 2,736 — 2,545 — Consumer — — — — — — — Subtotal $ 2,722 $ 3,150 $ — $ 2,872 $ — $ 2,908 $ — Impaired loans with an allowance: Commercial and industrial $ 22 $ 22 $ 22 $ 28 $ — $ 27 $ — Construction and development, excluding undeveloped land — — — — — — — Undeveloped land — — — — — — — Real estate mortgage Commercial investment — — — — — — — Owner occupied commercial — — — — — — — 1-4 family residential 13 13 13 14 — 14 — Home equity - first lien — — — — — — — Home equity - junior lien — — — — — — — Subtotal: Real estate mortgage 13 13 13 14 — 14 — Consumer — — — — — — — Subtotal $ 35 $ 35 $ 35 $ 42 $ — $ 41 $ — Total: Commercial and industrial $ 208 $ 198 $ 22 $ 164 $ — $ 191 $ — Construction and development, excluding undeveloped land — — — — — 80 — Undeveloped land — — — — — 119 — Real estate mortgage Commercial investment 741 741 — 524 — 376 — Owner occupied commercial 1,409 1,847 — 1,427 — 1,226 — 1-4 family residential 150 150 13 440 — 628 — Home equity - first lien — — — - — - — Home equity - junior lien 249 249 — 359 — 329 — Subtotal: Real estate mortgage 2,549 2,987 13 2,750 — 2,559 — Consumer — — — — — — — Total impaired loans $ 2,757 $ 3,185 $ 35 $ 2,914 $ — $ 2,949 $ — As of Three months ended Nine months ended December 31, 2018 September 30, 2018 September 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 $ — $ 119 $ — $ 398 $ — Construction and development, excluding undeveloped land 318 489 — 380 — 524 — Undeveloped land 474 506 — 474 — 474 — Real estate mortgage Commercial investment 138 138 — — — 13 — Owner occupied commercial 586 1,023 — 996 — 2,190 — 1-4 family residential 760 760 — 1,307 — 1,461 — Home equity - first lien — - — - — - — Home equity - junior lien 143 143 — 60 — 45 — Subtotal: Real estate mortgage 1,627 2,064 — 2,363 — 3,709 — Consumer — — — — — 23 — Subtotal $ 2,611 $ 3,766 $ — $ 3,336 $ — $ 5,128 $ — Impaired loans with an allowance: Commercial and industrial $ 28 $ 28 $ 28 $ 1,720 $ — $ 1,853 $ — Construction and development, excluding undeveloped land — — — — — — — Undeveloped land — — — — — 24 — Real estate mortgage Commercial investment — — — — — — — Owner occupied commercial — — — 937 — 897 — 1-4 family residential 14 14 14 14 — 14 — Home equity - first lien — — — — — — — Home equity - junior lien — — — — — — — Subtotal: Real estate mortgage 14 14 14 951 — 911 — Consumer — — — — — — — Subtotal $ 42 $ 42 $ 42 $ 2,671 $ — $ 2,788 $ — Total: Commercial and industrial $ 220 $ 735 $ 28 $ 1,839 $ — $ 2,251 $ — Construction and development, excluding undeveloped land 318 489 — 380 — 524 — Undeveloped land 474 506 — 474 — 498 — Real estate mortgage Commercial investment 138 138 — — — 13 — Owner occupied commercial 586 1,023 — 1,933 — 3,087 — 1-4 family residential 774 774 14 1,321 — 1,475 — Home equity - first lien — — — — — — — Home equity - junior lien 143 143 — 60 — 45 — Subtotal: Real estate mortgage 1,641 2,078 14 3,314 — 4,620 — Consumer — — — — — 23 — Total impaired loans $ 2,653 $ 3,808 $ 42 $ 6,007 $ — $ 7,916 $ — 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: (In thousands) 90 or more days past due 30-59 days 60-89 days (includes all Total Total September 30, 2019 Current past due past due non-accrual) past due loans Commercial and industrial $ 874,576 $ 465 $ 900 $ 186 $ 1,551 $ 876,127 Construction and development, excluding undeveloped land 248,296 — — — — 248,296 Undeveloped land 35,169 — — — — 35,169 Real estate mortgage: Commercial investment 723,028 3,352 14 1,137 4,503 727,531 Owner occupied commercial 468,699 478 92 1,409 1,979 470,678 1-4 family residential 329,140 2,159 239 209 2,607 331,747 Home equity - first lien 50,881 134 — — 134 51,015 Home equity - junior lien 72,216 49 — 268 317 72,533 Subtotal: Real estate mortgage 1,643,964 6,172 345 3,023 9,540 1,653,504 Consumer 43,522 46 — — 46 43,568 Total $ 2,845,527 $ 6,683 $ 1,245 $ 3,209 $ 11,137 $ 2,856,664 December 31, 2018 Commercial and industrial $ 832,923 $ 197 $ 200 $ 204 $ 601 $ 833,524 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 Owner occupied commercial 421,143 2,732 1,377 1,121 5,230 426,373 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 Subtotal: Real estate mortgage 1,402,362 4,849 1,876 2,360 9,085 1,411,447 Consumer 48,058 — — — — 48,058 Total $ 2,537,627 $ 5,112 $ 2,076 $ 3,356 $ 10,544 $ 2,548,171 |