LOANS (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Portfolio of Loans Outstanding

The portfolio of loans outstanding consists of the following:

	June 30, 2015				December 31, 2014
	Amount		Percentage of Total Loans		Amount		Percentage of Total Loans
	(amounts in thousands)
Commercial and Industrial	$	36,813	5.0	%	$	30,092	4.2	%
Real Estate Construction:
Residential	6,238		0.9		5,859		0.8
Commercial	47,432		6.5		47,921		6.7
Real Estate Mortgage:
Commercial – Owner Occupied	157,335		21.6		176,649		24.8
Commercial – Non-owner Occupied	266,571		36.5		237,918		33.4
Residential – 1 to 4 Family	186,384		25.5		171,894		24.1
Residential – Multifamily	19,086		2.6		25,173		3.5
Consumer	10,121		1.4		17,555		2.5
Total Loans	$	729,980	100.0	%	$	713,061	100.0	%

Age Analysis of Past Due Loans by Class

An age analysis of past due loans by class at June 30, 2015 and December 31, 2014 follows:

June 30, 2015	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and Not Accruing		Total Past Due		Current		Total Loans
	(amounts in thousands)
Commercial and Industrial	$	—	$	—	$	2,462	$	2,462	$	34,351	$	36,813
Real Estate Construction:
Residential	—		—		—		—		6,238		6,238
Commercial	—		—		7,140		7,140		40,292		47,432
Real Estate Mortgage:
Commercial – Owner Occupied	833		—		106		939		156,396		157,335
Commercial – Non-owner Occupied	59		—		5,220		5,279		261,292		266,571
Residential – 1 to 4 Family	590		76		6,526		7,192		179,192		186,384
Residential – Multifamily	360		—		—		360		18,726		19,086
Consumer	107		—		65		172		9,949		10,121
Total Loans	$	1,949	$	76	$	21,519	$	23,544	$	706,436	$	729,980

December 31, 2014	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and Not Accruing		Total Past Due		Current		Total Loans
	(amounts in thousands)
Commercial and Industrial	$	—	$	1,874	$	61	$	1,935	$	28,157	$	30,092
Real Estate Construction:
Residential	—		—		238		238		5,621		5,859
Commercial	—		—		10,773		10,773		37,148		47,921
Real Estate Mortgage:
Commercial – Owner Occupied	—		—		735		735		175,914		176,649
Commercial – Non-owner Occupied	—		—		8,624		8,624		229,294		237,918
Residential – 1 to 4 Family	629		20		6,367		7,016		164,878		171,894
Residential – Multifamily	364		—		—		364		24,809		25,173
Consumer	—		—		94		94		17,461		17,555
Total Loans	$	993	$	1,894	$	26,892	$	29,779	$	683,282	$	713,061

Impaired Loans

Impaired loans at June 30, 2015 and December 31, 2014 are set forth in the following tables.

June 30, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	36	$	36	$	—
Real Estate Construction:
Residential	—		—		—
Commercial	2,964		3,056		—
Real Estate Mortgage:
Commercial – Owner Occupied	106		106		—
Commercial – Non-owner Occupied	2,052		2,052		—
Residential – 1 to 4 Family	5,759		6,624		—
Residential – Multifamily	—		—		—
Consumer	—		—		—
	10,917		11,874		—
With an allowance recorded:
Commercial and Industrial	2,883		2,884		1,621
Real Estate Construction:
Residential	—		—		—
Commercial	7,360		9,814		497
Real Estate Mortgage:
Commercial – Owner Occupied	4,736		4,765		85
Commercial – Non-owner Occupied	24,085		25,575		796
Residential – 1 to 4 Family	2,142		2,274		255
Residential – Multifamily	360		360		5
Consumer	65		65		7
	41,631		45,737		3,266
Total:
Commercial and Industrial	2,919		2,920		1,621
Real Estate Construction:
Residential	—		—		—
Commercial	10,324		12,870		497
Real Estate Mortgage:
Commercial – Owner Occupied	4,842		4,871		85
Commercial – Non-owner Occupied	26,137		27,627		796
Residential – 1 to 4 Family	7,901		8,898		255
Residential – Multifamily	360		360		5
Consumer	65		65		7
	$	52,548	$	57,611	$	3,266

December 31, 2014	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	61	$	401	$	—
Real Estate Construction:
Residential	—		—		—
Commercial	4,033		4,161		—
Real Estate Mortgage:
Commercial – Owner Occupied	735		1,132		—
Commercial – Non-owner Occupied	8,175		10,616		—
Residential – 1 to 4 Family	2,548		3,291		—
Residential – Multifamily	—		—		—
Consumer	94		94		—
	15,646		19,695		—
With an allowance recorded:
Commercial and Industrial	2,346		2,346		1,040
Real Estate Construction:
Residential	238		979		238
Commercial	10,025		10,025		2,535
Real Estate Mortgage:
Commercial – Owner Occupied	5,216		5,245		114
Commercial – Non-owner Occupied	22,232		22,232		828
Residential – 1 to 4 Family	5,412		5,575		573
Residential – Multifamily	364		364		5
Consumer	—		—		—
	45,833		46,766		5,333
Total:
Commercial and Industrial	2,407		2,747		1,040
Real Estate Construction:
Residential	238		979		238
Commercial	14,058		14,186		2,535
Real Estate Mortgage:
Commercial – Owner Occupied	5,951		6,377		114
Commercial – Non-owner Occupied	30,407		32,848		828
Residential – 1 to 4 Family	7,960		8,866		573
Residential – Multifamily	364		364		5
Consumer	94		94		—
	$	61,479	$	66,461	$	5,333

The following tables present by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the six and three months ended June 30, 2015 and 2014:

	Six Months Ended June 30,
	2015				2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(amounts in thousands)
Commercial and Industrial	$	4,239	$	38	$	822	$	8
Real Estate Construction:
Residential	—		—		652		—
Commercial	13,073		123		18,348		231
Real Estate Mortgage:
Commercial – Owner Occupied	5,888		101		6,868		133
Commercial – Non-owner Occupied	27,867		496		32,658		624
Residential – 1 to 4 Family	8,969		103		12,776		115
Residential – Multifamily	362		14		368		12
Consumer	65		—		94		1
Total	$	60,463	$	875	$	72,586	$	1,124
	Three Months Ended June 30,
	2015				2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(amounts in thousands)
Commercial and Industrial	$	4,045	$	6	$	753	$	4
Real Estate Construction:
Residential	—		—		588		—
Commercial	13,008		51		18,329		115
Real Estate Mortgage:
Commercial – Owner Occupied	5,854		50		6,783		59
Commercial – Non-owner Occupied	27,732		267		32,111		304
Residential – 1 to 4 Family	8,943		49		12,580		56
Residential – Multifamily	361		8		367		6
Consumer	65		—		94		1
Total	$	60,008	$	431	$	71,605	$	545

Analysis of Credit Risk Profile by Internally Assigned Grades

An analysis of the credit risk profile by internally assigned grades as of June 30, 2015 and December 31, 2014 is as follows:

At June 30, 2015	Pass		OAEM		Substandard		Doubtful		Total
	(amounts in thousands)
Commercial and Industrial	$	33,681	$	615	$	2,517	$	—	$	36,813
Real Estate Construction:
Residential	6,238		—		—		—		6,238
Commercial	23,439		16,853		7,140		—		47,432
Real Estate Mortgage:
Commercial – Owner Occupied	152,511		4,351		473		—		157,335
Commercial – Non-owner Occupied	250,737		5,404		10,430		—		266,571
Residential – 1 to 4 Family	176,925		1,183		8,276		—		186,384
Residential – Multifamily	18,726		—		360		—		19,086
Consumer	10,001		55		65		—		10,121
Total	$	672,258	$	28,461	$	29,261	$	—	$	729,980

At December 31, 2014	Pass		OAEM		Substandard		Doubtful		Total
	(amounts in thousands)
Commercial and Industrial	$	27,104	$	642	$	2,346	$	—	$	30,092
Real Estate Construction:
Residential	5,621		—		238		—		5,859
Commercial	34,255		2,893		10,773		—		47,921
Real Estate Mortgage:
Commercial – Owner Occupied	170,685		4,051		1,913		—		176,649
Commercial – Non-owner Occupied	218,230		5,791		13,897		—		237,918
Residential – 1 to 4 Family	162,787		613		8,494		—		171,894
Residential – Multifamily	24,809		—		364		—		25,173
Consumer	17,461		—		94		—		17,555
Total	$	660,952	$	13,990	$	38,119	$	—	$	713,061