LOANS (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Portfolio of Loans Outstanding

The portfolio of loans outstanding consists of the following:

	September 30, 2016				December 31, 2015
	Amount		Percentage of Total Loans		Amount		Percentage of Total Loans
	(amounts in thousands)
Commercial and Industrial	$	24,224	3.0	%	$	27,140	3.6	%
Real Estate Construction:
Residential	8,929		1.1		7,750		1.0
Commercial	59,283		7.2		45,245		6.0
Real Estate Mortgage:
Commercial – Owner Occupied	127,603		15.6		172,040		22.7
Commercial – Non-owner Occupied	266,111		32.6		256,471		33.8
Residential – 1 to 4 Family	278,581		34.1		213,266		28.1
Residential – Multifamily	36,282		4.4		18,113		2.4
Consumer	16,390		2.0		18,476		2.4
Total Loans	$	817,403	100.0	%	$	758,501	100.0	%

Age Analysis of Past Due Loans by Class

An age analysis of past due loans by class at September 30, 2016 and December 31, 2015 follows:

September 30, 2016	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	$	—	$	—	$	243	$	243	$	23,981	$	24,224
Real Estate Construction:
Residential	—		—		—		—		8,929		8,929
Commercial	—		—		3,891		3,891		55,392		59,283
Real Estate Mortgage:
Commercial – Owner Occupied	—		—		874		874		126,729		127,603
Commercial – Non-owner Occupied	—		—		3,891		3,891		262,220		266,111
Residential – 1 to 4 Family	1,275		—		2,026		3,301		275,280		278,581
Residential – Multifamily	—		—		308		308		35,974		36,282
Consumer	72		59		36		167		16,223		16,390
Total Loans	$	1,347	$	59	$	11,269	$	12,675	$	804,728	$	817,403

December 31, 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	$	—	$	—	$	740	$	740	$	26,400	$	27,140
Real Estate Construction:
Residential	—		—		—		—		7,750		7,750
Commercial	—		—		5,204		5,204		40,041		45,245
Real Estate Mortgage:
Commercial – Owner Occupied	812		—		358		1,170		170,870		172,040
Commercial – Non-owner Occupied	—		—		4,002		4,002		252,469		256,471
Residential – 1 to 4 Family	—		—		3,255		3,255		210,011		213,266
Residential – Multifamily	357		—		—		357		17,756		18,113
Consumer	31		32		—		63		18,413		18,476
Total Loans	$	1,200	$	32	$	13,559	$	14,791	$	743,710	$	758,501

Impaired Loans

Impaired loans at September 30, 2016 and December 31, 2015 are set forth in the following tables:

September 30, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	243	$	1,499	$	—
Real Estate Construction:
Residential	—		—		—
Commercial	1,161		1,161		—
Real Estate Mortgage:
Commercial – Owner Occupied	—		—		—
Commercial – Non-owner Occupied	3,426		3,670		—
Residential – 1 to 4 Family	1,963		2,026		—
Residential – Multifamily	308		354		—
Consumer	30		30		—
	7,131		8,740		—
With an allowance recorded:
Commercial and Industrial	—		—		—
Real Estate Construction:
Residential	—		—		—
Commercial	7,929		11,830		163
Real Estate Mortgage:
Commercial – Owner Occupied	4,886		4,915		319
Commercial – Non-owner Occupied	15,637		17,231		228
Residential – 1 to 4 Family	1,617		1,633		39
Residential – Multifamily	—		—		—
Consumer	6		6		6
	30,075		35,615		755
Total:
Commercial and Industrial	243		1,499		—
Real Estate Construction:
Residential	—		—		—
Commercial	9,090		12,991		163
Real Estate Mortgage:
Commercial – Owner Occupied	4,886		4,915		319
Commercial – Non-owner Occupied	19,063		20,901		228
Residential – 1 to 4 Family	3,580		3,659		39
Residential – Multifamily	308		354		—
Consumer	36		36		6
	$	37,206	$	44,355	$	755

December 31, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	680	$	1,934	$	—
Real Estate Construction:
Residential	—		—		—
Commercial	1,420		1,517		—
Real Estate Mortgage:
Commercial – Owner Occupied	358		358		—
Commercial – Non-owner Occupied	1,281		1,281		—
Residential – 1 to 4 Family	1,858		1,910		—
Residential – Multifamily	—		—		—
Consumer	—		—		—
	5,597		7,000		—
With an allowance recorded:
Commercial and Industrial	503		504		67
Real Estate Construction:
Residential	—		—		—
Commercial	5,696		8,420		1,149
Real Estate Mortgage:
Commercial – Owner Occupied	4,341		4,370		73
Commercial – Non-owner Occupied	23,303		24,988		486
Residential – 1 to 4 Family	2,426		3,200		709
Residential – Multifamily	356		356		5
Consumer	—		—		—
	36,625		41,838		2,489
Total:
Commercial and Industrial	1,183		2,438		67
Real Estate Construction:
Residential	—		—		—
Commercial	7,116		9,937		1,149
Real Estate Mortgage:
Commercial – Owner Occupied	4,699		4,728		73
Commercial – Non-owner Occupied	24,584		26,269		486
Residential – 1 to 4 Family	4,284		5,110		709
Residential – Multifamily	356		356		5
Consumer	—		—		—
	$	42,222	$	48,838	$	2,489

The following table presents by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,
	2016				2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(amounts in thousands)
Commercial and Industrial	$	351	$	—	$	4,161	$	10
Real Estate Construction:
Residential	—		—		—		—
Commercial	9,233		59		11,701		20
Real Estate Mortgage:
Commercial – Owner Occupied	4,978		49		5,822		53
Commercial – Non-owner Occupied	19,168		190		26,426		242
Residential – 1 to 4 Family	3,616		25		5,938		30
Residential – Multifamily	308		—		360		6
Consumer	37		1		65		—
Total	$	37,691	$	324	$	54,473	$	361

	Nine Months Ended September 30,
	2016				2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(amounts in thousands)
Commercial and Industrial	$	390	$	1	$	4,409	$	61
Real Estate Construction:
Residential	—		—		—		—
Commercial	9,658		178		11,747		100
Real Estate Mortgage:
Commercial – Owner Occupied	5,044		137		5,855		154
Commercial – Non-owner Occupied	19,281		562		26,541		737
Residential – 1 to 4 Family	3,635		87		5,956		86
Residential – Multifamily	324		8		361		20
Consumer	37		2		65		—
Total	$	38,369	$	975	$	54,934	$	1,158

Analysis of Credit Risk Profile by Internally Assigned Grades

An analysis of the credit risk profile by internally assigned grades as of September 30, 2016 and December 31, 2015 is as follows:

At September 30, 2016	Pass		OAEM		Substandard		Doubtful		Total
	(amounts in thousands)
Commercial and Industrial	$	23,629	$	374	$	221	$	—	$	24,224
Real Estate Construction:
Residential	8,929		—		—		—		8,929
Commercial	34,213		21,179		3,891		—		59,283
Real Estate Mortgage:
Commercial – Owner Occupied	123,370		3,359		874		—		127,603
Commercial – Non-owner Occupied	259,218		80		6,813		—		266,111
Residential – 1 to 4 Family	274,480		1,549		2,552		—		278,581
Residential – Multifamily	35,974		—		308		—		36,282
Consumer	16,353		—		37		—		16,390
Total	$	776,166	$	26,541	$	14,696	$	—	$	817,403

At December 31, 2015	Pass		OAEM		Substandard		Doubtful		Total
	(amounts in thousands)
Commercial and Industrial	$	25,658	$	688	$	794	$	—	$	27,140
Real Estate Construction:
Residential	7,750		—		—		—		7,750
Commercial	24,210		15,831		5,204		—		45,245
Real Estate Mortgage:
Commercial – Owner Occupied	163,765		7,225		1,050		—		172,040
Commercial – Non-owner Occupied	242,607		7,044		6,820		—		256,471
Residential – 1 to 4 Family	207,911		515		4,840		—		213,266
Residential – Multifamily	17,757		—		356		—		18,113
Consumer	18,475		—		1		—		18,476
Total	$	708,133	$	31,303	$	19,065	$	—	$	758,501