Loans And Leases (Tables)

12 Months Ended

Dec. 31, 2016



(dollars in thousands)	2016		2015

Commercial and industrial	$	98,477	$	102,653
Commercial real estate:
Non-owner occupied		93,364		95,745
Owner occupied		106,960		101,652
Construction		3,987		4,481
Consumer:
Home equity installment		28,466		30,935
Home equity line of credit		51,609		48,060
Auto loans and leases		56,841		29,758
Other		13,301		6,208
Residential:
Real estate		134,475		126,992
Construction		10,496		10,060
Total		597,976		556,544
Less:
Allowance for loan losses		(9,364)		(9,527)
Unearned lease revenue		(482)		(335)

Loans and leases, net	$	588,130	$	546,682

Non-Accrual Loans, Segregated By Class



(dollars in thousands)	2016		2015

Commercial and industrial	$	11	$	30
Commercial real estate:
Non-owner occupied		1,407		6,193
Owner occupied		3,078		988
Construction		193		226
Consumer:
Home equity installment		31		167
Home equity line of credit		737		512
Auto loans and leases		25		45
Other		6		6
Residential:
Real estate		1,882		836
Total	$	7,370	$	9,003

The following presents by class, information related to loans modified in a TDR:


	Loans modified as TDRs for the twelve months ended:
(dollars in thousands)	December 31, 2016						December 31, 2015

			Recorded		Increase in			Recorded		Increase in
		Number	investment		allowance		Number	investment		allowance
		of	(as of		(as of		of	(as of		(as of
		contracts	period end)		period end)		contracts	period end)		period end)
Commercial and industrial		-	$	-	$	-	1	$	500	$	331
Commercial real estate - owner occupied		-		-		-	4		1,181		316
Consumer home equity line of credit		1		650		167	-		-		-
Residential real estate		1		881		177	-		-		-
Total		2	$	1,531	$	344	5	$	1,681	$	647

In the above table, the period end balances are inclusive of all partial pay downs and charge-offs since the modification date.

The following presents by class, loans modified as a TDR that subsequently defaulted (i.e. 90 days or more past due following a modification) during the periods indicated:


Loans modified as a TDR within the previous twelve months that subsequently defaulted during the:
(dollars in thousands)	Twelve months ended December 31, 2016

		Number of		Recorded
		contracts		investment
Consumer home equity line of credit		1	$	650

In the above table, the period end balances are inclusive of all partial pay downs and charge-offs since the modification date.

Past Due Loans



														Recorded
					Past due									investment past
	30 - 59 Days		60 - 89 Days		90 days		Total				Total			due ≥ 90 days
December 31, 2016	past due		past due		or more (1)		past due		Current		loans (3)			and accruing

Commercial and industrial	$	208	$	-	$	11	$	219	$	98,258	$	98,477		$	-
Commercial real estate:
Non-owner occupied		180		-		1,407		1,587		91,777		93,364			-
Owner occupied		13		776		3,078		3,867		103,093		106,960			-
Construction		-		-		193		193		3,794		3,987			-
Consumer:
Home equity installment		213		25		31		269		28,197		28,466			-
Home equity line of credit		-		-		737		737		50,872		51,609			-
Auto loans and leases		293		59		44		396		55,963		56,359	(2)		19
Other		37		2		6		45		13,256		13,301			-
Residential:
Real estate		14		421		1,882		2,317		132,158		134,475			-
Construction		-		-		-		-		10,496		10,496			-
Total	$	958	$	1,283	$	7,389	$	9,630	$	587,864	$	597,494		$	19

(1) Includes $7.4 million of non-accrual loans. (2) Net of unearned lease revenue of $0.5 million. (3) Includes net deferred loan costs of $1.8 million.



														Recorded
					Past due									investment past
	30 - 59 Days		60 - 89 Days		90 days		Total				Total			due ≥ 90 days
December 31, 2015	past due		past due		or more (1)		past due		Current		loans (3)			and accruing

Commercial and industrial	$	38	$	32	$	42	$	112	$	102,541	$	102,653		$	12
Commercial real estate:
Non-owner occupied		549		1,282		6,476		8,307		87,438		95,745			283
Owner occupied		-		85		988		1,073		100,579		101,652			-
Construction		-		-		226		226		4,255		4,481			-
Consumer:
Home equity installment		189		92		167		448		30,487		30,935			-
Home equity line of credit		109		650		512		1,271		46,789		48,060			-
Auto loans and leases		394		44		76		514		28,909		29,423	(2)		31
Other		66		-		36		102		6,106		6,208			30
Residential:
Real estate		46		131		836		1,013		125,979		126,992			-
Construction		-		-		-		-		10,060		10,060			-
Total	$	1,391	$	2,316	$	9,359	$	13,066	$	543,143	$	556,209		$	356

(1) Includes $9.0 million of non-accrual loans. (2) Net of unearned lease revenue of $0.3 million. (3) Includes net deferred loan costs of $1.5 million.

Impaired Loans

Impaired loans, segregated by class, as of the period indicated are detailed below:



			Recorded		Recorded
	Unpaid		investment		investment		Total
	principal		with		with no		recorded		Related
(dollars in thousands)	balance		allowance		allowance		investment		allowance
December 31, 2016
Commercial and industrial	$	235	$	206	$	29	$	235	$	193
Commercial real estate:
Non-owner occupied		3,346		2,611		405		3,016		993
Owner occupied		5,363		4,351		876		5,227		1,389
Construction		416		-		193		193		-
Consumer:
Home equity installment		64		-		31		31		-
Home equity line of credit		778		650		87		737		167
Auto loans and leases		25		25		-		25		3
Other		6		6		-		6		1
Residential:
Real estate		1,949		1,466		416		1,882		315
Construction		-		-		-		-		-
Total	$	12,182	$	9,315	$	2,037	$	11,352	$	3,061



			Recorded		Recorded
	Unpaid		investment		investment		Total
	principal		with		with no		recorded		Related
(dollars in thousands)	balance		allowance		allowance		investment		allowance
December 31, 2015
Commercial and industrial	$	555	$	500	$	55	$	555	$	331
Commercial real estate:
Non-owner occupied		7,960		7,209		630		7,839		1,237
Owner occupied		2,588		922		1,505		2,427		337
Construction		422		-		226		226		-
Consumer:
Home equity installment		230		-		167		167		-
Home equity line of credit		607		28		484		512		1
Auto		47		43		2		45		7
Other		6		6		-		6		1
Residential:
Real estate		891		433		403		836		95
Construction		-		-		-		-		-
Total	$	13,306	$	9,141	$	3,472	$	12,613	$	2,009

The following table presents the average recorded investments in impaired loans and related amount of interest income recognized during the periods indicated below. The average balances are calculated based on the quarter-end balances of impaired loans. Payments received from non-accruing impaired loans are first applied against the outstanding principal balance, then to the recovery of any charged-off amounts. Any excess is treated as a recovery of interest income. Payments received from accruing impaired loans are applied to principal and interest, as contractually agreed upon.



	December 31, 2016						December 31, 2015
					Cash basis						Cash basis
	Average		Interest		interest		Average		Interest		interest
	recorded		income		income		recorded		income		income
(dollars in thousands)	investment		recognized		recognized		investment		recognized		recognized
Commercial and industrial	$	434	$	51	$	-	$	511	$	22	$	1
Commercial real estate:
Non-owner occupied		4,230		176		-		2,755		95		-
Owner occupied		3,088		129		-		2,705		67		-
Construction		209		-		-		241		-		-
Consumer:
Home equity installment		78		3		-		239		2		-
Home equity line of credit		816		28		-		472		1		-
Auto		30		-		-		25		2		-
Other		6		-		-		12		2		-
Residential:
Real estate		628		15		-		629		7		-
Construction		-		-		-		-		-		-
Total	$	9,519	$	402	$	-	$	7,589	$	198	$	1

Credit Quality Indicator Loan Categories

Commercial credit exposure

Credit risk profile by creditworthiness category




	December 31, 2016
(dollars in thousands)	Pass		Special mention		Substandard		Doubtful		Total

Commercial and industrial	$	97,308	$	479	$	690	$	-	$	98,477
Commercial real estate - non-owner occupied		83,962		1,811		7,591		-		93,364
Commercial real estate - owner occupied		99,981		1,075		5,904		-		106,960
Commercial real estate - construction		3,794		-		193		-		3,987
Total commercial	$	285,045	$	3,365	$	14,378	$	-	$	302,788

Consumer & Mortgage lending credit exposure

Credit risk profile based on payment activity



	December 31, 2016
(dollars in thousands)	Performing		Non-performing		Total

Consumer
Home equity installment	$	28,435	$	31	$	28,466
Home equity line of credit		50,872		737		51,609
Auto loans and leases (1)		56,315		44		56,359
Other		13,295		6		13,301
Total consumer	$	148,917	$	818	$	149,735
Residential
Real estate	$	132,593	$	1,882		134,475
Construction		10,496		-		10,496
Total residential	$	143,089	$	1,882	$	144,971
Total consumer & residential	$	292,006	$	2,700	$	294,706

(1)Net of unearned lease revenue of $0.5 million.

Commercial credit exposure

Credit risk profile by creditworthiness category


	December 31, 2015
(dollars in thousands)	Pass		Special mention		Substandard		Doubtful		Total

Commercial and industrial	$	101,342	$	189	$	1,122	$	-	$	102,653
Commercial real estate - non-owner occupied		82,152		1,480		12,113		-		95,745
Commercial real estate - owner occupied		96,401		657		4,594		-		101,652
Commercial real estate - construction		4,255		-		226		-		4,481
Total commercial	$	284,150	$	2,326	$	18,055	$	-	$	304,531

Consumer & Mortgage lending credit exposure

Credit risk profile based on payment activity


	December 31, 2015
(dollars in thousands)	Performing		Non-performing		Total

Consumer
Home equity installment	$	30,768	$	167	$	30,935
Home equity line of credit		47,548		512		48,060
Auto loans and leases (2)		29,347		76		29,423
Other		6,172		36		6,208
Total consumer	$	113,835	$	791	$	114,626
Residential
Real estate	$	126,156	$	836	$	126,992
Construction		10,060		-		10,060
Total residential	$	136,216	$	836	$	137,052
Total consumer & residential	$	250,051	$	1,627	$	251,678

(2) Net of unearned lease revenue of $0.3 million.

Allowance For Loan Losses



As of and for the year ended December 31, 2016
	Commercial &		Commercial					Residential
(dollars in thousands)	industrial		real estate		Consumer			real estate		Unallocated		Total
Allowance for Loan Losses:
Beginning balance	$	1,336	$	5,014	$	1,533		$	1,407	$	237	$	9,527
Charge-offs		(224)		(592)		(504)			(60)		-		(1,380)
Recoveries		55		37		100			-		-		192
Provision		(92)		247		705			275		(110)		1,025
Ending balance	$	1,075	$	4,706	$	1,834		$	1,622	$	127	$	9,364
Ending balance: individually evaluated for impairment	$	193	$	2,382	$	171		$	315	$	-	$	3,061
Ending balance: collectively evaluated for impairment	$	882	$	2,324	$	1,663		$	1,307	$	127	$	6,303
Loans Receivables:
Ending balance (2)	$	98,477	$	204,311	$	149,735	(1)	$	144,971	$	-	$	597,494
Ending balance: individually evaluated for impairment	$	235	$	8,436	$	799		$	1,882	$	-	$	11,352
Ending balance: collectively evaluated for impairment	$	98,242	$	195,875	$	148,936		$	143,089	$	-	$	586,142

(1) Net of unearned lease revenue of $0.5 million. (2) Includes $1.8 million of net deferred loan costs.



As of and for the year ended December 31, 2015
	Commercial &		Commercial					Residential
(dollars in thousands)	industrial		real estate		Consumer			real estate		Unallocated		Total
Allowance for Loan Losses:
Beginning balance	$	1,052	$	4,672	$	1,519		$	1,316	$	614	$	9,173
Charge-offs		(25)		(432)		(437)			(15)		-		(909)
Recoveries		47		18		95			28		-		188
Provision		262		756		356			78		(377)		1,075
Ending balance	$	1,336	$	5,014	$	1,533		$	1,407	$	237	$	9,527
Ending balance: individually evaluated for impairment	$	331	$	1,574	$	9		$	95	$	-	$	2,009
Ending balance: collectively evaluated for impairment	$	1,005	$	3,440	$	1,524		$	1,312	$	237	$	7,518
Loans Receivables:
Ending balance (2)	$	102,653	$	201,878	$	114,626	(1)	$	137,052	$	-	$	556,209
Ending balance: individually evaluated for impairment	$	555	$	10,492	$	730		$	836	$	-	$	12,613
Ending balance: collectively evaluated for impairment	$	102,098	$	191,386	$	113,896		$	136,216	$	-	$	543,596

(1) Net of unearned lease revenue of $0.3 million. (2) Includes $1.5 million of net deferred loan costs.


As of and for the year ended December 31, 2014
	Commercial &		Commercial				Residential
(dollars in thousands)	industrial		real estate		Consumer		real estate		Unallocated		Total
Allowance for Loan Losses:
Beginning balance	$	944	$	4,253	$	1,482	$	1,613	$	636	$	8,928
Charge-offs		(309)		(239)		(361)		(93)		-		(1,002)
Recoveries		32		91		30		34		-		187
Provision		385		567		368		(238)		(22)		1,060
Ending balance	$	1,052	$	4,672	$	1,519	$	1,316	$	614	$	9,173