Loans (Tables)

12 Months Ended

Dec. 31, 2014

Loans [Abstract]

Composition of loan portfolio, by loan class

The composition of the Company’s loan portfolio, by loan class, at December 31, is as follows:  

	2014			2013
Commercial	$	120,751		$	110,644
Commercial Real Estate		256,955			235,296
Agriculture		61,144			51,730
Residential Mortgage		50,511			52,809
Residential Construction		5,963			10,444
Consumer		49,911			54,079
		545,235			515,002
Allowance for loan losses		(8,583	)		(9,353	)
Net deferred origination fees and costs		1,327			1,201
Loans, net	$	537,979		$	506,850

Non-accrual loans by loan class

The Company’s non-accrual loans by loan class, at December 31, are as follows:

	2014		2013
Commercial	$	2,151	$	2,609
Commercial Real Estate		672		2,607
Agriculture		—		1,590
Residential Mortgage		1,691		2,166
Residential Construction		71		93
Consumer		652		505
	$	5,237	$	9,570

Age analysis of past due loans, segregated by loan class

An aging analysis of past due loans, segregated by loan class, as of December 31, 2014 and December 31, 2013 is as follows:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Total Loans
December 31, 2014
Commercial	$	—	$	—	$	82	$	82	$	120,669	$	120,751
Commercial Real Estate		—		—		239		239		256,716		256,955
Agriculture		—		—		—		—		61,144		61,144
Residential Mortgage		1,172		—		457		1,629		48,882		50,511
Residential Construction		—		—		—		—		5,963		5,963
Consumer		2		1		472		475		49,436		49,911
Total	$	1,174	$	1	$	1,250	$	2,425	$	542,810	$	545,235
December 31, 2013
Commercial	$	200	$	96	$	269	$	565	$	110,079	$	110,644
Commercial Real Estate		49		341		531		921		234,375		235,296
Agriculture		—		—		—		—		51,730		51,730
Residential Mortgage		207		—		99		306		52,503		52,809
Residential Construction		40		8		—		48		10,396		10,444
Consumer		26		—		23		49		54,030		54,079
Total	$	522	$	445	$	922	$	1,889	$	513,113	$	515,002

Impaired loans, segregated by loan class

Impaired loans, segregated by loan class, as of December 31, 2014 and December 31, 2013 were as follows:

	Unpaid Contractual Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance
December 31, 2014
Commercial	$	2,803	$	2,147	$	531	$	2,678	$	39
Commercial Real Estate		990		672		304		976		45
Agriculture		—		—		—		—		—
Residential Mortgage		5,666		1,691		2,956		4,647		646
Residential Construction		1,065		71		826		897		107
Consumer		1,506		780		726		1,506		23
Total	$	12,030	$	5,361	$	5,343	$	10,704	$	860
December 31, 2013
Commercial	$	5,794	$	5,010	$	656	$	5,666	$	83
Commercial Real Estate		3,746		2,607		1,122		3,729		63
Agriculture		1,878		1,591		—		1,591		—
Residential Mortgage		6,524		2,166		3,409		5,575		701
Residential Construction		1,115		94		849		943		254
Consumer		1,621		563		690		1,253		24
Total	$	20,678	$	12,031	$	6,726	$	18,757	$	1,125

Average recorded investment and amount of interest income recognized on impaired loans

The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the years ended December 31, 2014, 2013, and 2012 was as follows:

	December 31, 2014				December 31, 2013				December 31, 2012
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial	$	3,292	$	53	$	3,937	$	38	$	3,639	$	44
Commercial Real Estate		2,632		291		3,351		85		4,438		113
Agriculture		257		75		398		—		737		35
Residential Mortgage		5,157		124		5,455		136		4,312		107
Residential Construction		914		38		989		42		1,166		52
Consumer		1,545		54		1,005		39		1,003		38
Total	$	13,797	$	635	$	15,135	$	340	$	15,295	$	389

Loans modified as troubled debt restructurings

Loans modified as troubled debt restructurings during the year ended December 31, 2014, 2013, and 2012 were as follows:

	Year Ended December 31, 2014
	Number of Contracts		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Commercial		2	$	151	$	151
Residential Mortgage		1		102		102
Consumer		2		498		498
Total		5	$	751	$	751

	Year Ended December 31, 2013
	Number of Contracts		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Commercial		2	$	393	$	393
Residential Mortgage		1		568		377
Consumer		5		388		388
Total		8	$	1,349	$	1,158

	Year Ended December 31, 2012
	Number of Contracts		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Commercial		5	$	470	$	470
Consumer		7		633		633
Total		12	$	1,103	$	1,103

Risk ratings by loan class

The following table presents the risk ratings by loan class as of December 31, 2014 and December 31, 2013.

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2014
Commercial	$	112,751	$	3,255	$	4,745	$	—	$	—	$	120,751
Commercial Real Estate		240,808		10,607		5,540		—		—		256,955
Agriculture		61,144		—		—		—		—		61,144
Residential Mortgage		46,043		997		3,471		—		—		50,511
Residential Construction		5,386		467		110		—		—		5,963
Consumer		46,234		944		2,733		—		—		49,911
Total	$	512,366	$	16,270	$	16,599	$	—	$	—	$	545,235
December 31, 2013
Commercial	$	98,755	$	2,762	$	9,127	$	—	$	—	$	110,644
Commercial Real Estate		218,884		5,978		10,434		—		—		235,296
Agriculture		50,139		—		1,591		—		—		51,730
Residential Mortgage		48,519		539		3,751		—		—		52,809
Residential Construction		7,823		1,167		1,454		—		—		10,444
Consumer		48,903		2,585		2,591		—		—		54,079
Total	$	473,023	$	13,031	$	28,948	$	—	$	—	$	515,002

Allowance for loan losses

The following table details activity in the allowance for loan losses by loan category for the years ended December 31, 2014, 2013 and 2012.

	Commercial			Commercial Real Estate			Agriculture		Residential Mortgage			Residential Construction			Consumer			Unallocated			Total
Balance as of December 31, 2013	$	3,199		$	2,290		$	557	$	1,216		$	441		$	1,023		$	627		$	9,353
Provision for loan losses		2,612			(396	)		23		36			(366	)		149			(258	)		1,800
Charge-offs		(2,288	)		(69	)		—		(71	)		—			(393	)		—			(2,821	)
Recoveries		58			—			—		—			86			107			—			251
Net charge-offs		(2,230	)		(69	)		—		(71	)		86			(286	)		—			(2,570	)
Ending Balance		3,581			1,825			580		1,181			161			886			369			8,583
Period-end amount allocated to:
Loans individually evaluated for impairment		39			45			—		646			107			23			—			860
Loans collectively evaluated for impairment		3,542			1,780			580		535			54			863			369			7,723
Balance as of December 31, 2014	$	3,581		$	1,825		$	580	$	1,181		$	161		$	886		$	369		$	8,583

	Commercial			Commercial Real Estate			Agriculture			Residential Mortgage			Residential Construction			Consumer			Unallocated		Total
Balance as of December 31, 2012	$	2,899		$	1,723		$	915		$	1,148		$	724		$	1,110		$	35	$	8,554
Provision for loan losses		91			533			(360	)		244			(201	)		301			592		1,200
Charge-offs		(168	)		(17	)		(1	)		(333	)		(127	)		(572	)		—		(1,218	)
Recoveries		377			51			3			157			45			184			—		817
Net charge-offs		209			34			2			(176	)		(82	)		(388	)		—		(401	)
Ending Balance		3,199			2,290			557			1,216			441			1,023			627		9,353
Period-end amount allocated to:
Loans individually evaluated for impairment		83			63			—			701			254			24			—		1,125
Loans collectively evaluated for impairment		3,116			2,227			557			515			187			999			627		8,228
Balance as of December 31, 2013	$	3,199		$	2,290		$	557		$	1,216		$	441		$	1,023		$	627	$	9,353

	Commercial			Commercial Real Estate			Agriculture			Residential Mortgage			Residential Construction			Consumer			Unallocated		Total
Balance as of December 31, 2011	$	3,598		$	1,747		$	1,934		$	1,135		$	1,198		$	796		$	—	$	10,408
Provision for loan losses		2,493			351			(907	)		877			(648	)		1,075			35		3,276
Charge-offs		(3,498	)		(375	)		(116	)		(864	)		(167	)		(875	)		—		(5,895	)
Recoveries		306			—			4			—			341			114			—		765
Net charge-offs		(3,192	)		(375	)		(112	)		(864	)		174			(761	)		—		(5,130	)
Ending Balance		2,899			1,723			915			1,148			724			1,110			35		8,554
Period-end amount allocated to:
Loans individually evaluated for impairment		95			26			—			417			433			101			—		1,072
Loans collectively evaluated for impairment		2,804			1,697			915			731			291			1,009			35		7,482
Balance as of December 31, 2012	$	2,899		$	1,723		$	915		$	1,148		$	724		$	1,110		$	35	$	8,554

The Company’s investment in loans as of December 31, 2014, 2013, and 2012 related to each balance in the allowance for loan losses by loan category and disaggregated on the basis of the Company’s impairment methodology was as follows:

	Commercial		Commercial Real Estate		Agriculture		Residential Mortgage		Residential Construction		Consumer		Total
December 31, 2014
Loans individually evaluated for impairment	$	2,678	$	976	$	—	$	4,647	$	897	$	1,506	$	10,704
Loans collectively evaluated for impairment		118,073		255,979		61,144		45,864		5,066		48,405		534,531
Ending Balance	$	120,751	$	256,955	$	61,144	$	50,511	$	5,963	$	49,911	$	545,235
December 31, 2013
Loans individually evaluated for impairment	$	5,666	$	3,729	$	1,591	$	5,575	$	943	$	1,253	$	18,757
Loans collectively evaluated for impairment		104,978		231,567		50,139		47,234		9,501		52,826		496,245
Ending Balance	$	110,644	$	235,296	$	51,730	$	52,809	$	10,444	$	54,079	$	515,002
December 31, 2012
Loans individually evaluated for impairment	$	3,288	$	3,042	$	—	$	4,823	$	1,097	$	1,131	$	13,381
Loans collectively evaluated for impairment		85,522		185,384		52,747		46,443		6,489		58,262		434,847
Ending Balance	$	88,810	$	188,426	$	52,747	$	51,266	$	7,586	$	59,393	$	448,228