Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2016

Loans and Allowance for Loan Losses

Schedule of categories of loans

	(Dollars in Thousands)
	June 30, 2016			December 31, 2015
Commercial	$	55,132		$	53,516
Commercial real estate:
Construction	28,511			24,167
Other	178,337			169,290
Residential real estate	81,306			79,680
Consumer:
Auto	1,242			1,425
Other	2,485			2,704
Total loans	347,013			330,782
Less allowance for loan losses	(4,949		)	(4,916		)
Net loans	$	342,064		$	325,866

Schedule of activity in the allowance for loan losses

The following table sets forth an analysis of our allowance for loan losses for the three months ending June 30, 2016 and 2015.

	(Dollars in Thousands)
	Commercial			Commercial Real Estate			Residential Real Estate			Consumer			Unallocated			Total
June 30, 2016
Allowance for loan losses:
Beginning balance	$	745		$	3,585		$	602		$	24		$	88		$	5,044
Provision (credit) for loan losses	(301		)	257			4			(5		)	(40		)	(85		)
Loans charged-off	(5		)	(52		)	(15		)	—			—			(72		)
Recoveries	25			25			9			3			—			62
Total ending allowance balance	$	464		$	3,815		$	600		$	22		$	48		$	4,949
	(Dollars in Thousands)
	Commercial			Commercial Real Estate			Residential Real Estate			Consumer			Unallocated			Total
June 30, 2015
Allowance for loan losses:
Beginning balance	$	1,035		$	3,206		$	519		$	41		$	146		$	4,947
Provision for loan losses	(233		)	398			(43		)	8			(10		)	120
Loans charged-off	(75		)	—			(32		)	(16		)	—			(123		)
Recoveries	30			1			3			5			—			39
Total ending allowance balance	$	757		$	3,605		$	447		$	38		$	136		$	4,983

The following table sets forth an analysis of our allowance for loan losses for the six months ending June 30, 2016 and 2015.

	(Dollars in Thousands)
	Commercial			Commercial Real Estate			Residential Real Estate			Consumer			Unallocated			Total
June 30, 2016
Allowance for loan losses:
Beginning balance	$	812		$	3,431		$	524		$	28		$	121		$	4,916
Provision (credit) for loan losses	(475		)	386			86			(10		)	(73		)	(85		)
Loans charged-off	(5		)	(52		)	(23		)	—			—			(80		)
Recoveries	132			50			13			4			—			199
Total ending allowance balance	$	464		$	3,815		$	600		$	22		$	48		$	4,949
	(Dollars in Thousands)
	Commercial			Commercial Real Estate			Residential Real Estate			Consumer			Unallocated			Total
June 30, 2015
Allowance for loan losses:
Beginning balance	$	1,029		$	3,088		$	582		$	45		$	141		$	4,885
Provision for loan losses	(248		)	533			(86		)	6			(5		)	200
Loans charged-off	(75		)	(17		)	(56		)	(19		)	—			(167		)
Recoveries	51			1			7			6			—			65
Total ending allowance balance	$	757		$	3,605		$	447		$	38		$	136		$	4,983

Schedule of balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method

	(Dollars in Thousands)
	Commercial		Commercial Real Estate		Residential Real Estate		Consumer		Unallocated		Total
June 30, 2016
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	35	$	195	$	25	$	1	$	—	$	256
Collectively evaluated	429		3,620		575		21		48		4,693
Total ending allowance balance	$	464	$	3,815	$	600	$	22	$	48	$	4,949
Loans:
Individually evaluated for impairment	$	133	$	1,580	$	744	$	28	$	—	$	2,485
Collectively evaluated	54,999		205,268		80,562		3,699		—		344,528
Total ending loans balance	$	55,132	$	206,848	$	81,306	$	3,727	$	—	$	347,013
	(Dollars in Thousands)
	Commercial		Commercial Real Estate		Residential Real Estate		Consumer		Unallocated		Total
December 31, 2015
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	36	$	377	$	20	$	—	$	—	$	433
Collectively evaluated	776		3,054		504		28		121		4,483
Total ending allowance balance	$	812	$	3,431	$	524	$	28	$	121	$	4,916
Loans:
Individually evaluated for impairment	$	145	$	2,066	$	807	$	9	$	—	$	3,027
Collectively evaluated	53,371		191,391		78,873		4,120		—		327,755
Total ending loans balance	$	53,516	$	193,457	$	79,680	$	4,129	$	—	$	330,782

Schedule of impaired loans by class of loans

The following table presents information related to impaired loans by class of loans as of June 30, 2016 and December 31, 2015.

	(Dollars in Thousands)						(Dollars in Thousands)
	June 30, 2016						December 31, 2015
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no related allowance recorded:
Commercial	$	58	$	58	$	—	$	61	$	61	$	—
Commercial real estate:
Other	611		611		—		643		643		—
Residential real estate	692		692		—		700		700		—
Consumer:
Other	—		—		—		—		—		—
Subtotal	$	1,361	$	1,361	$	—	$	1,404	$	1,404	$	—
With an allowance recorded:
Commercial	$	75	$	75	$	35	$	84	$	84	$	36
Commercial real estate:
Other	969		969		195		1,423		1,423		377
Residential real estate	52		52		25		107		107		20
Consumer:
Other	28		28		1		9		9		—
Subtotal	$	1,124	$	1,124	$	256	$	1,623	$	1,623	$	433
Total	$	2,485	$	2,485	$	256	$	3,027	$	3,027	$	433

Information on impaired loans for the three months ending June 30, 2016 and 2015 is as follows:

	(Dollars in Thousands)						(Dollars in Thousands)
	June 30, 2016						June 30, 2015
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
Commercial	$	135	$	3	$	3	$	1,893	$	24	$	22
Commercial real estate:
Construction	—		—		—		—		—		—
Other	1,584		21		21		1,916		17		13
Residential real estate	747		8		8		1,014		12		9
Consumer:
Auto	—		—		—		—		—		—
Other	25		—		—		11		—		—
Total	$	2,491	$	32	$	32	$	4,834	$	53	$	44

Information on impaired loans for the six months ending June 30, 2016 and 2015 is as follows:

	(Dollars in Thousands)						(Dollars in Thousands)
	June 30, 2016						June 30, 2015
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
Commercial	$	139	$	6	$	6	$	1,972	$	49	$	45
Commercial real estate:
Construction	—		—		—		—		—		—
Other	1,604		41		41		1,922		31		32
Residential real estate	749		16		15		1,019		25		18
Consumer:
Auto	—		—		—		—		—		—
Other	18		1		1		11		—		—
Total	$	2,510	$	64	$	63	$	4,924	$	105	$	95

Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans

	(Dollars in Thousands)				(Dollars in Thousands)
	June 30, 2016				December 31, 2015
	Loans Past Due Over 90 Days and Still Accruing		Nonaccrual		Loans Past Due Over 90 Days and Still Accruing		Nonaccrual
Commercial	$	150	$	—	$	—	$	—
Commercial real estate:
Construction	—		—		—		—
Other	—		—		—		439
Residential real estate	—		49		—		98
Consumer:
Auto	—		—		—		—
Other	—		—		—		—
Total	$	150	$	49	$	—	$	537

Schedule of aging of the recorded investment in past due loans by class of loans

	(Dollars in Thousands)
	30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Current		Total
June 30, 2016
Commercial	$	88	$	—	$	150	$	238	$	54,894	$	55,132
Commercial real estate:
Construction	—		—		—		—		28,511		28,511
Other	—		—		—		—		178,337		178,337
Residential real estate	—		14		49		63		81,243		81,306
Consumer:
Auto	—		—		—		—		1,242		1,242
Other	—		—		—		—		2,485		2,485
Subtotal	$	88	$	14	$	199	$	301	$	346,712	$	347,013

	(Dollars in Thousands)
	30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Current		Total
December 31, 2015
Commercial	$	—	$	—	$	—	$	—	$	53,516	$	53,516
Commercial real estate:
Construction	—		—		—		—		24,167		24,167
Other	178		—		439		617		168,673		169,290
Residential real estate	329		—		98		427		79,253		79,680
Consumer:
Auto	1		—		—		1		1,424		1,425
Other	—		—		—		—		2,704		2,704
Subtotal	$	508	$	—	$	537	$	1,045	$	329,737	$	330,782

Schedule of loans by class modified as troubled debt restructurings

The following table presents loans by class modified as troubled debt restructurings that occurred during the quarter ending June 30, 2016 and 2015.

		(Dollars in Thousands)					(Dollars in Thousands)
	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	June 30, 2016					June 30, 2015
Troubled Debt Restructurings:
Commercial real estate:
Other	—	—		—		2	$	1,547	$	1,547
Consumer	1	$	7	$	7	—	—		—
Total	1	$	7	$	7	2	$	1,547	$	1,547

The following table presents loans by class modified as troubled debt restructurings that occurred year to date June 30, 2016 and 2015.

		(Dollars in Thousands)					(Dollars in Thousands)
	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	June 30, 2016					June 30, 2015
Troubled Debt Restructurings:
Commercial real estate:
Other	—	—		—		2	$	1,547	$	1,547
Consumer	2	21		21		—	—		—
Total	2	$	21	$	21	2	$	1,547	$	1,547

Schedule of risk category of loans by class of loans based on the most recent analyses performed

	Pass		Special Mention		Substandard		Doubtful		Total
June 30, 2016
Commercial	$	55,053	$	—	$	79	$	—	$	55,132
Commercial real estate:
Construction	28,511		—		—		—		28,511
Other	171,830		763		5,744		—		178,337
Residential real estate	80,788		—		518		—		81,306
Consumer:
Auto	1,242		—		—		—		1,242
Other	2,474		—		11		—		2,485
Total	$	339,898	$	763	$	6,352	$	—	$	347,013
	Pass		Special Mention		Substandard		Doubtful		Total
December 31, 2015
Commercial	$	53,316	$	—	$	200	$	—	$	53,516
Commercial real estate:
Construction	24,167		—		—		—		24,167
Other	159,829		5,753		3,708		—		169,290
Residential real estate	79,033		—		647		—		79,680
Consumer:
Auto	1,425		—		—		—		1,425
Other	2,697		—		7		—		2,704
Total	$	320,467	$	5,753	$	4,562	$	—	$	330,782