No custom device handlers work locally. Only the handlers that are in the SmartThings firmware will work local, and then only with SmartLighting or SHM.
Here is a list of the Device Handlers that are confirmed working with local processing (I personally tested that these show up in the “LocalDevice List”) as of Dec 8, 2017:
Device Type Run Locally Execute Commands Locally Minimum HubCore Version
Aeon Home Energy Meter TRUE FALSE n/a
Aeon Illuminator Module TRUE FALSE n/a
Aeon Key Fob TRUE FALSE n/a
Aeon Minimote TRUE FALSE n/a
Aeon Multisensor TRUE FALSE n/a
Aeon Multisensor Gen5 TRUE FALSE n/a
Aeon Outlet TRUE FALSE n/a
Aeon Siren TRUE FALSE n/a
Arrival Sensor TRUE FALSE n/a
CentraLite Thermostat TRUE FALSE n/a
Dimmer Switch TRUE FALSE n/a
Fortrezz Water Valve TRUE FALSE n/a
GE Link Bulb …
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