Allowance for Loan Losses and Credit Quality Disclosure (Tables)

6 Months Ended

Jun. 30, 2016

Financing Receivable, Allowance for Credit Losses [Line Items]

The following table provides an aging of the loan portfolio by loan class at June 30, 2016:



(Dollars in thousands)	30-59 Days		60-89 Days		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days Accruing		Nonaccrual Loans
Commercial
Construction	$	—	$	—	$	186	$	186	$	93,035	$	93,221	$	—	$	186
Commercial Business	148		68		104		320		104,783		105,103		—		213
Commercial Real Estate	1,829		—		2,707		4,536		218,588		223,124		—		3,199
Mortgage Warehouse Lines	—		—		—		—		264,344		264,344		—		—
Residential Real Estate	—		—		1,298		1,298		47,789		49,087		—		1,298
Consumer
Loans to Individuals	—		—		263		263		24,467		24,730		—		263
Other	—		—		—		—		197		197		—		—
Total loans	1,977		68		4,558		6,603		753,203		759,806		—		5,159
Deferred loan costs, net	—		—		—		—		1,766		1,766		—		—
Total loans, net	$	1,977	$	68	$	4,558	$	6,603	$	754,969	$	761,572	$	—	$	5,159

The following table provides an aging of the loan portfolio by loan class at December 31, 2015:



(Dollars in thousands)	30-59 Days		60-89 Days		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days Accruing		Nonaccrual Loans
Commercial
Construction	$	—	$	—	$	—	$	—	$	93,745	$	93,745	$	—	$	—
Commercial Business	530		5		186		721		98,556		99,277		—		304
Commercial Real Estate	789		—		3,996		4,785		202,465		207,250		—		4,321
Mortgage Warehouse Lines	—		—		—		—		216,572		216,572		—		—
Residential Real Estate	—		166		1,132		1,298		39,446		40,744		—		1,132
Consumer
Loans to Individuals	400		—		263		663		22,411		23,074		—		263
Other	—		—		—		—		233		233		—		—
Total loans	1,719		171		5,577		7,467		673,428		680,895		—		6,020
Deferred loan costs, net	—		—		—		—		1,226		1,226		—		—
Total loans, net	$	1,719	$	171	$	5,577	$	7,467	$	674,654	$	682,121	$	—	$	6,020

Allowance for Credit Losses on Financing Receivables

The following tables summarize the distribution of the allowance for loan losses and loans receivable by loan class and impairment method at June 30, 2016 and December 31, 2015:

Period-End Allowance for Loan Losses by Impairment Method as of June 30, 2016



(Dollars in thousands)
	Construction		Commercial Business		Commercial Real Estate		Mortgage Warehouse Lines		Residential Real Estate		Loans to Individuals		Other		Unallocated		Deferred Loan Fees		Total
Allowance for loan losses:

Individually evaluated for impairment	$	—	$	—	$	130	$	—	$	—	$	—	$	—	$	—	$	—	$	130
Loans acquired with deteriorated credit quality	—		—		—		—		—		—		—		—		—		—
Collectively evaluated for impairment	975		1,230		3,020		1,190		294		119		—		524		—		7,352
Ending Balance	$	975	$	1,230	$	3,150	$	1,190	$	294	$	119	$	—	$	524	$	—	$	7,482

Loans receivables:
Individually evaluated for impairment	$	317	$	231	$	4,072	$	—	$	1,298	$	263	$	—	$	—	$	—	$	6,181
Loans acquired with deteriorated credit quality	—		225		959		—		—		—		—		—		—		1,184
Collectively evaluated for impairment	92,904		104,647		218,093		264,344		47,789		24,467		197		—		1,766		754,207
Ending Balance	$	93,221	$	105,103	$	223,124	$	264,344	$	49,087	$	24,730	$	197	$	—	$	1,766	$	761,572

Period-End Allowance for Loan Losses by Impairment Method as of December 31, 2015



(Dollars in thousands)
	Construction		Commercial Business		Commercial Real Estate		Mortgage Warehouse Lines		Residential Real Estate		Loans to Individuals		Other		Unallocated		Deferred Loan Fees		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	68	$	125	$	—	$	69	$	—	$	—	$	—	$	—	$	262
Loans acquired with deteriorated credit quality	—		—		64		—		—		—		—		—		—		64
Collectively evaluated for impairment	1,025		1,937		2,860		866		219		109		—		218		—		7,234
Ending Balance	$	1,025	$	2,005	$	3,049	$	866	$	288	$	109	$	—	$	218	$	—	$	7,560

Loans receivables:
Individually evaluated for impairment	$	494	$	458	$	4,833	$	—	$	1,132	$	263	$	—	$	—	$	—	$	7,180
Loans acquired with deteriorated credit quality	—		241		1,359		—		—		—		—		—		—		1,600
Collectively evaluated for impairment	93,251		98,578		201,058		216,572		39,612		22,811		233		—		1,226		673,341
Ending Balance	$	93,745	$	99,277	$	207,250	$	216,572	$	40,744	$	23,074	$	233	$	—	$	1,226	$	682,121

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent

The activity in the allowance for loan loss by loan class for the three and six months ended June 30, 2016 and 2015 was as follows:



(Dollars in thousands)	Construction			Commercial Business			Commercial Real Estate			Mortgage Warehouse Lines		Residential Real Estate			Loans to Individuals		Other		Unallocated		Total
Balance - December 31, 2015	$	1,025		$	2,005		$	3,049		$	866	$	288		$	109	$	—	$	218	$	7,560
Provision charged (credited) to operations	(44		)	(392		)	46			1		(79		)	4		—		264		(200		)
Loans charged off	—			—			(60		)	—		—			—		—		—		(60		)
Recoveries of loans charged off	—			1			—			—		—			1		—		—		2
Balance - March 31, 2016	$	981		$	1,614		$	3,035		$	867	$	209		$	114	$	—	$	482	$	7,302

Provision charged (credited) to operations	(6		)	(284		)	(263		)	323		85			3		—		42		(100		)
Loans charged off	—			(101		)	—			—		—			—		—		—		(101		)
Recoveries of loans charged off	—			1			378			—		—			2		—		—		381
Balance - June 30, 2016	$	975		$	1,230		$	3,150		$	1,190	$	294		$	119	$	—	$	524	$	7,482



(Dollars in thousands)	Construction			Commercial Business			Commercial Real Estate			Mortgage Warehouse Lines		Residential Real Estate			Loans to Individuals			Other			Unallocated			Total
Balance - December 31, 2014	$	1,215		$	1,761		$	2,393		$	896	$	197		$	129		$	2		$	332		$	6,925
Provision charged (credited) to operations	(98		)	62			(4		)	152		13			(13		)	—			388			500
Loans charged off	—			(62		)	—			—		—			—			—			—			(62		)
Recoveries of loans charged off	—			—			—			—		—			1			—			—			1
Balance - March 31, 2015	$	1,117		$	1,761		$	2,389		$	1,048	$	210		$	117		$	2		$	720		$	7,364

Provision charged (credited) to operations	(27		)	(81		)	49			71		(8		)	3			(1		)	(6		)	—
Loans charged off	—			(26		)	—			—		—			—			—			—			(26		)
Recoveries of loans charged off	—			5			7			—		—			1			—			—			13
Balance - June 30, 2015	$	1,090		$	1,659		$	2,445		$	1,119	$	202		$	121		$	1		$	714		$	7,351

Impaired Financing Receivables



Impaired Loans Receivables (By Class)-June 30, 2015
	Three Months Ended June 30, 2015				Six Months Ended June 30, 2015
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no allowance:
Construction	$	471	$	6	$	461	$	13
Commercial Business	487		3		510		7
Commercial Real Estate	2,666		28		2,702		61
Mortgage Warehouse Lines	—		—		—		—
Subtotal	3,624		37		3,673		81
Residential Real Estate	1,361		—		1,361		—

Consumer
Loans to Individuals	—		—		—		—
Other	—		—		—		—
Subtotal	—		—		—		—
With no allowance:	$	4,985	$	37	$	5,034	$	81
With an allowance:
Construction	$	—	$	—	$	—	$	—
Commercial Business	354		1		363		1
Commercial Real Estate	4,784		87		4,754		158
Mortgage Warehouse Lines	—		—		—		—
Subtotal	5,138		88		5,117		159
Residential Real Estate	—		—		—		—
Consumer
Loans to Individuals	263		—		263		—
Other	—		—		—		—
Subtotal	263		—		263		—
With an allowance:	$	5,401	$	88	$	5,380	$	159
Total:
Construction	471		6		461		13
Commercial Business	841		4		873		8
Commercial Real Estate	7,450		115		7,456		219
Mortgage Warehouse Lines	—		—		—		—
Residential Real Estate	1,361		—		1,361		—
Consumer	263		—		263		—
Total	$	10,386	$	125	$	10,414	$	240

The following table presents additional information regarding acquired credit-impaired loans at June 30, 2016 and December 31, 2015:



(Dollars in thousands)
	June 30, 2016		December 31, 2015
Outstanding balance	$	1,523	$	1,964
Carrying amount	$	1,184	$	1,600

Impaired Loans Receivables (By Class) – June 30, 2016



(Dollars in thousands)							Three Months Ended June 30, 2016				Six Months Ended June 30, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no allowance:
Construction	$	317	$	317	$	—	$	317	$	2	$	255	$	4
Commercial Business	446		606		—		448		10		434		21
Commercial Real Estate	1,247		1,247		—		1,251		20		1,545		30
Mortgage Warehouse Lines	—		—		—		—		—		—		—
Subtotal	2,010		2,170		—		2,016		32		2,234		55
Residential Real Estate	1,298		1,313		—		1,298		—		1,198		(2		)
Consumer
Loans to Individuals	263		263		—		263		—		263		—
Other	—		—		—		—		—		—		—
Subtotal	263		263		—		263		—		263		—
With no allowance:	$	3,571	$	3,746	$	—	$	3,577	$	32	$	3,695	$	53

With an allowance:
Construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Business	10		21		—		143		—		177		—
Commercial Real Estate	3,784		3,968		130		3,888		22		3,836		38
Mortgage Warehouse Lines	—		—		—		—		—		—		—
Subtotal	3,794		3,989		130		4,031		22		4,013		38
Residential Real Estate	—		—		—		—		—		100		—
Consumer
Loans to Individuals	—		—		—		—		—		—		—
Other	—		—		—		—		—		—		—
Subtotal	—		—		—		—		—		—		—
With an allowance:	$	3,794	$	3,989	$	130	$	4,031	$	22	$	4,113	$	38
Total:
Construction	317		317		—		317		2		255		4
Commercial Business	456		627		—		591		10		611		21
Commercial Real Estate	5,031		5,215		130		5,139		42		5,381		68
Mortgage Warehouse Lines	—		—		—		—		—		—		—
Residential Real Estate	1,298		1,313		—		1,298		—		1,298		(2		)
Consumer	263		263		—		263		—		263		—
Total	$	7,365	$	7,735	$	130	$	7,608	$	54	$	7,808	$	91

Impaired Loans Receivables (By Class) –December 31, 2015



(Dollars in thousands							For the year ended December 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no allowance:
Construction	$	494	$	494	$	—	$	477	$	27
Commercial Business	488		847		—		492		23
Commercial Real Estate	2,417		2,683		—		2,998		94
Mortgage Warehouse Lines	—		—		—		—		—
Subtotal	3,399		4,024		—		3,967		144
Residential Real Estate	831		831		—		981		—
Consumer
Loans to Individuals	263		280		—		88		—
Other	—		—		—		—		—
Subtotal	263		280		—		88		—
With no allowance	$	4,493	$	5,135	$	—	$	5,036	$	144
With an allowance:
Construction	$	—	$	—	$	—	$	—	$	—
Commercial Business	211		237		68		307		5
Commercial Real Estate	3,775		3,788		189		4,200		154
Mortgage Warehouse Lines	—		—		—		—		—
Subtotal	3,986		4,025		257		4,507		159
Residential Real Estate	301		316		69		100		—
Consumer
Loans to Individuals	—		—		—		175		—
Other	—		—		—		—		—
Subtotal	—		—		—		175		—
With an allowance	$	4,287	$	4,341	$	326	$	4,782	$	159

Total:
Construction	494		494		—		477		27
Commercial Business	699		1,084		68		799		28
Commercial Real Estate	6,192		6,471		189		7,198		248
Mortgage Warehouse Lines	—		—		—		—		—
Residential Real Estate	1,132		1,147		69		1,081		—
Consumer	263		280		—		263		—
Total	$	8,780	$	9,476	$	326	$	9,818	$	303

Credit Impaired Loans Acquired, Change In Amortizable Yield

Changes in accretable discount for purchased credit-impaired loans for the three and six months ended June 30, 2016 and June 30, 2015 were as follows:



	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
(Dollars in thousands)
Balance at beginning of period	$	52		$	115		$	73		$	135
Acquisition of impaired loans	—			—			—			—
Accretion of discount	(8		)	(14		)	(29		)	(34		)
Balance at end of period	$	44		$	101		$	44		$	101

Troubled Debt Restructurings on Financing Receivables

The following table summarizes the recorded investment in consumer mortgage loans secured by residential real estate in the process of foreclosure:



(Dollars in thousands)
June 30,
2016			2015
Number of loans	Recorded Investment		Number of loans	Recorded Investment
4	$	840	5	$	1,809

Commercial Portfolio Segment [Member]

Financing Receivable, Allowance for Credit Losses [Line Items]

Financing Receivable Credit Quality Indicators

The following table provides a breakdown of the loan portfolio by credit quality indicator at June 30, 2016:



(Dollars in thousands)
Commercial Credit Exposure - By Internally Assigned Grade	Construction		Commercial Business		Commercial Real Estate		Mortgage Warehouse Lines		Residential Real Estate
Grade:
Pass	$	92,904	$	96,318	$	206,197	$	264,344	$	48,225
Special Mention	131		8,357		12,249		—		260
Substandard	186		428		4,678		—		602
Doubtful	—		—		—		—		—
Total	$	93,221	$	105,103	$	223,124	$	264,344	$	49,087

The following table provides a breakdown of the loan portfolio by credit quality indicator at December 31, 2015:



(Dollars in thousands)
Commercial Credit Exposure - By Internally Assigned Grade	Construction		Commercial Business		Commercial Real Estate		Mortgage Warehouse Lines		Residential Real Estate
Grade:
Pass	$	93,558	$	90,856	$	191,754	$	216,572	$	39,878
Special Mention	187		7,768		9,311		—		260
Substandard	—		653		6,185		—		606
Doubtful	—		—		—		—		—
Total	$	93,745	$	99,277	$	207,250	$	216,572	$	40,744

Consumer Portfolio Segment [Member]

Financing Receivable, Allowance for Credit Losses [Line Items]

Financing Receivable Credit Quality Indicators



Consumer Credit Exposure - By Payment Activity	Loans To Individuals		Other
Performing	$	22,811	$	233
Nonperforming	263		—
Total	$	23,074	$	233



Consumer Credit Exposure - By Payment Activity	Loans To Individuals		Other

Performing	$	24,467	$	197
Nonperforming	263		—
Total	$	24,730	$	197