Loans (Tables)

6 Months Ended

Jun. 30, 2014

Recorded investment in loans by portfolio segment



	June 30,		December 31,
	2014		2013

Commercial	$	49,808	$	37,526
Real estate:
Single-family residential		40,638		32,219
Multi-family residential		28,271		32,197
Commercial		91,234		83,752
Construction		24,620		11,465
Consumer:
Home equity lines of credit		16,071		14,851
Other		2,904		860
Subtotal		253,546		212,870
Less: ALLL		(5,871)		(5,729)
Loans, net	$	247,675	$	207,141

Activity in ALLL by portfolio segment

The following table presents the activity in the ALLL by portfolio segment for the three and six months ended June 30, 2014:



	Three months ended June 30, 2014
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total

Beginning balance	$	1,587	$	159	$	1,458	$	2,064	$	378	$	109	$	8	$	5,763
Addition to (reduction in) provision for loan losses		18		37		(247)		165		96		7		32		108
Charge-offs		-		-		-		(2)		-		(9)		-		(11)
Recoveries		-		-		-		4		-		6		1		11
Ending balance	$	1,605	$	196	$	1,211	$	2,231	$	474	$	113	$	41	$	5,871



	Six month ended June 30, 2014
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total

Beginning balance	$	1,759	$	120	$	1,262	$	2,325	$	119	$	139	$	5	$	5,729
Addition to (reduction in) provision for loan losses		(157)		75		(51)		(100)		355		(28)		34		128
Charge-offs		-		-		-		(2)		-		(9)		-		(11)
Recoveries		3		1		-		8		-		11		2		25
Ending balance	$	1,605	$	196	$	1,211	$	2,231	$	474	$	113	$	41	$	5,871

The following table presents the activity in the ALLL by portfolio segment for the three and six months ended June 30, 2013:



	Three months ended June 30, 2013
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total

Beginning balance	$	1,409	$	239	$	1,604	$	2,197	$	1	$	220	$	12	$	5,682
Addition to (reduction in) provision for loan losses		31		128		69		(44)		18		125		(3)		324
Charge-offs		-		-		-		-		-		(17)		-		(17)
Recoveries		9		1		57		4		-		3		2		76
Ending balance	$	1,449	$	368	$	1,730	$	2,157	$	19	$	331	$	11	$	6,065



	Six month ended June 30, 2013
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total

Beginning balance	$	1,311	$	332	$	1,396	$	1,946	$	-	$	241	$	11	$	5,237
Addition to (reduction in) provision for loan losses		112		34		248		153		19		102		(18)		650
Charge-offs		-		-		-		-		-		(17)		-		(17)
Recoveries		26		2		86		58		-		5		18		195
Ending balance	$	1,449	$	368	$	1,730	$	2,157	$	19	$	331	$	11	$	6,065

Balance in ALLL and recorded investment in loans by portfolio segment and based on impairment method

The following table presents the balance in the ALLL and the recorded investment in loans by portfolio segment and based on the impairment method as of June 30, 2014:



			Real Estate								Consumer
	Commercial		Single- family		Multi- family		Commercial		Construction		Home Equity lines of credit		Other		Total

ALLL:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	416	$	1	$	337	$	85	$	-	$	-	$	-	$	839
Collectively evaluated for impairment		1,189		195		874		2,146		474		113		41		5,032
Total ending allowance balance	$	1,605	$	196	$	1,211	$	2,231	$	474	$	113	$	41	$	5,871

Loans:
Individually evaluated for impairment	$	889	$	306	$	1,692	$	4,480	$	-	$	-	$	-	$	7,367
Collectively evaluated for impairment		48,919		40,332		26,579		86,754		24,620		16,071		2,904		246,179
Total ending loan balance	$	49,808	$	40,638	$	28,271	$	91,234	$	24,620	$	16,071	$	2,904	$	253,546

The following table presents the balance in the ALLL and the recorded investment in loans by portfolio segment and based on the impairment method as of December 31, 2013:



			Real Estate								Consumer
	Commercial		Single- family		Multi- family		Commercial		Construction		Home Equity lines of credit		Other		Total
ALLL:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	532	$	-	$	402	$	191	$	-	$	-	$	-	$	1,125
Collectively evaluated for impairment		1,227		120		860		2,134		119		139		5		4,604
Total ending allowance balance	$	1,759	$	120	$	1,262	$	2,325	$	119	$	139	$	5	$	5,729

Loans:
Individually evaluated for impairment		992	$	317	$	1,759	$	5,845	$	-	$	-	$	-	$	8,913
Collectively evaluated for impairment		36,534		31,902		30,438		77,907		11,465		14,851		860		203,957
Total ending loan balance	$	37,526	$	32,219	$	32,197	$	83,752	$	11,465	$	14,851	$	860	$	212,870

Individually evaluated for impairment by class of loans

The following table presents loans individually evaluated for impairment by class of loans at June 30, 2014. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs and includes accrued interest. The table presents accrual basis interest income recognized during the three and six months ended June 30, 2014. Cash payments of interest during the three and six months ended June 30, 2014 totaled $51 and $106.


							Three months ended				Six months ended
	As of June 30, 2014						June 30, 2014				June 30, 2014
	Unpaid Principal Balance		Recorded Investment		ALLL Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	135	$	120	$	-	$	120	$	-	$	120	$	-
Real estate:
Single-family residential		342		181		-		182		-		183		-
Multi-family residential		-		-		-		-		-		-		-
Commercial:
Non-owner occupied		604		504		-		508		-		515		-
Owner occupied		1,969		1,018		-		1,026		-		1,035		-
Land		-		-		-		-		-
Total with no allowance recorded		3,050		1,823		-		1,836		-		1,853		-

With an allowance recorded:
Commercial		769		769		416		781		4		799		12
Real estate:
Single-family residential		125		125		1		125		1		126		3
Multi-family residential		1,692		1,692		337		1,704		1		1,720		2
Commercial:
Non-owner occupied		2,102		2,102		43		2,107		33		2,115		66
Owner occupied		389		389		14		390		6		392		11
Land		512		467		28		592		5		662		10
Total with an allowance recorded		5,589		5,544		839		5,699		50		5,814		104
Total	$	8,639	$	7,367	$	839	$	7,535	$	50	$	7,667	$	104

The following table presents loans individually evaluated for impairment by class of loans at December 31, 2013. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs and includes accrued interest. The table presents accrual basis interest income recognized during the three and six months ended June 30, 2013. Cash payments of interest during the three and six months ended June 30, 2013 totaled $57 and $114, respectively.


							Three months ended				Six months ended
	As of December 31, 2013						June 30, 2013				June 30, 2013
	Unpaid Principal Balance		Recorded Investment		ALLL Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	135	$	120	$	-	$	165	$	-	$	169	$	-
Real estate:
Single-family residential		352		191		-		-		-		-		-
Multi-family residential		-		-		-		188		-		192		-
Commercial:
Non-owner occupied		2,022		1,453		-		1,510		-		1,913		-
Owner occupied		2,021		1,070		-		1,174		-		1,197		-
Land		-		-		-		-		-		-		-
Total with no allowance recorded		4,530		2,834		-		3,037		-		3,471		-

With an allowance recorded:
Commercial		872		872		532		849		5		866		11
Real estate:
Single-family residential		126		126		-		127		3		127		5
Multi-family residential		1,759		1,759		402		1,900		1		1,922		2
Commercial:
Non-owner occupied		2,158		2,158		46		2,191		34		2,211		69
Owner occupied		397		397		7		390		6		392		12
Land		812		767		138		377		6		381		11
Total with an allowance recorded		6,124		6,079		1,125		5,834		55		5,899		110
Total	$	10,654	$	8,913	$	1,125	$	8,871	$	55	$	9,370	$	110

Recorded investment in nonaccrual loans by class of loans




	June 30, 2014		December 31, 2013
Nonaccrual loans:
Commercial	$	513	$	563
Real estate:
Single-family residential		537		479
Multi-family residential		1,636		1,701
Commercial:
Non-owner occupied		504		1,453
Owner occupied		1,018		1,070
Land		140		420
Consumer:
Home equity lines of credit:
Originated for portfolio		52		52
Total nonaccrual and nonperforming loans	$	4,400	$	5,738

Aging of recorded investment in past due loans by class of loans

The following table presents the aging of the recorded investment in past due loans by class of loans as of June 30, 2014:


	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans Not > 90 days Past Due

Commercial	$	-	$	-	$	121	$	121	$	49,687	$	392
Real estate:
Single-family residential		124		112		289		525		40,113		248
Multi-family residential		-		-		-		-		28,271		1,636
Commercial:
Non-owner occupied		-		-		-		-		47,776		504
Owner occupied		-		-		808		808		37,798		210
Land		-		-		140		140		4,712		-
Construction		-		-		-		-		24,620		-
Consumer:
Home equity lines of credit:
Originated for portfolio		-		-		52		52		14,244		-
Purchased for portfolio		120		-		-		120		1,655		-
Other		42		-		-		42		2,862		-
Total	$	286	$	112	$	1,410	$	1,808	$	251,738	$	2,990

The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 2013:



	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans Not > 90 days Past Due

Commercial	$	-	$	-	$	121	$	121	$	37,405	$	442
Real estate:
Single-family residential		352		268		247		867		31,352		232
Multi-family residential		-		-		-		-		32,197		1,701
Commercial:
Non-owner occupied		-		-		923		923		42,199		530
Owner occupied		-		-		-		-		35,202		1,070
Land		-		-		420		420		5,008		-
Construction		-		-		-		-		11,465		-
Consumer:
Home equity lines of credit:
Originated for portfolio		52		-		-		52		12,930		52
Purchased for portfolio		123		-		-		123		1,746		-
Other		2		11		-		13		847		-
Total	$	529	$	279	$	1,711	$	2,519	$	210,351	$	4,027

Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods




	June 30, 2014		December 31, 2013
Commercial	$	392	$	442
Real estate:
Single-family residential		181		190
Multi-family residential		1,636		1,701
Commercial:
Non-owner occupied		-		-
Owner occupied		211		238
Total	$	2,420	$	2,571

Financing Receivable Credit Quality Indicators

The recorded investment in loans by risk category and by class of loans as of June 30, 2014 and based on the most recent analysis performed follows. There were no loans rated doubtful at June 30, 2014.


	Not Rated		Pass		Special Mention		Substandard		Total

Commercial	$	689	$	48,180	$	78	$	861	$	49,808
Real estate:
Single-family residential		40,053		-		-		585		40,638
Multi-family residential		-		25,819		-		2,452		28,271
Commercial:
Non-owner occupied		222		43,518		505		3,531		47,776
Owner occupied		-		35,182		848		2,576		38,606
Land		79		1,800		-		2,973		4,852
Construction		11,227		13,393		-		-		24,620
Consumer:
Home equity lines of credit:
Originated for portfolio		14,143		-		-		153		14,296
Purchased for portfolio		1,204		-		405		166		1,775
Other		2,904		-		-		-		2,904
	$	70,521	$	167,892	$	1,836	$	13,297	$	253,546

The recorded investment in loans by risk category and by class of loans as of December 31, 2013 follows. There were no loans rated doubtful at December 31, 2013.



	Not Rated		Pass		Special Mention		Substandard		Total

Commercial	$	228	$	35,424	$	921	$	953	$	37,526
Real estate:
Single-family residential		31,685		-		-		534		32,219
Multi-family residential		-		29,667		-		2,530		32,197
Commercial:
Non-owner occupied		3,170		34,834		556		4,561		43,121
Owner occupied		-		31,489		1,045		2,669		35,203
Land		87		2,023		-		3,318		5,428
Construction		2,115		9,350		-		-		11,465
Consumer:
Home equity lines of credit:
Originated for portfolio		12,828		-		-		154		12,982
Purchased for portfolio		1,285		-		414		170		1,869
Other		860		-		-		-		860
	$	52,258	$	142,787	$	2,936	$	14,889	$	212,870