Loans (Tables)

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Portfolio of Loans Outstanding

The portfolio of loans outstanding consists of:

	December 31, 2016				December 31, 2015
	Amount		Percentage of Total Loans		Amount		Percentage of Total Loans
	(Amounts in thousands)
Commercial and Industrial	$	26,774	3.1	%	$	27,140	3.6	%
Real Estate Construction:
Residential	8,825		1.0		7,750		1.0
Commercial	58,469		6.9		45,245		6.0
Real Estate Mortgage:
Commercial – Owner Occupied	123,898		14.5		172,040		22.7
Commercial – Non-owner Occupied	268,123		31.5		256,471		33.8
Residential – 1 to 4 Family	309,340		36.3		213,266		28.1
Residential – Multifamily	39,804		4.7		18,113		2.4
Consumer	16,720		2.0		18,476		2.4
Total Loans	$	851,953	100.0	%	$	758,501	100.0	%

Analysis of Loans to Related Parties

An analysis of the activity of such related party loans for 2016 and 2015 is as follows:

	2016			2015
	(Amounts in thousands)
Balance, beginning of year	$	20,072		$	20,233
Advances	418			4,568
Less: repayments	(856		)	(4,729		)
Less: reduction due to death of a director	(5,662		)	—
Balance, end of year	$	13,972		$	20,072

Age Analysis of Past Due Loans by Class

An age analysis of past due loans by class follows:

December 31, 2016	30-59 Days Past Due		60-89 Days Past Due	Greater than 90 Days and Not Accruing	Total Past Due	Current	Total Loans		Loans > 90 Days and Accruing
	(Amounts in thousands)
Commercial and Industrial	$	—	—	159	159	26,615	$	26,774	—
Real Estate Construction:
Residential	—		—	—	—	8,825	8,825		—
Commercial	—		—	3,241	3,241	55,228	58,469		—
Real Estate Mortgage:
Commercial – Owner Occupied	—		165	430	595	123,303	123,898		—
Commercial – Non-owner Occupied	—		—	3,958	3,958	264,165	268,123		—
Residential – 1 to 4 Family	715		361	3,095	4,171	305,169	309,340		—
Residential – Multifamily	—		—	308	308	39,496	39,804		—
Consumer	31		42	107	180	16,540	16,720		—
Total Loans	$	746	568	11,298	12,612	839,341	$	851,953	—

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		Loans > 90 Days and Accruing
	(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 are set forth in the following tables.

December 31, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	21	$	23	$	—
Real Estate Construction:
Residential	—		—		—
Commercial	1,161		1,161		—
Real Estate Mortgage:
Commercial – Owner Occupied	—		—		—
Commercial – Non-owner Occupied	3,494		3,739		—
Residential – 1 to 4 Family	2,384		2,434		—
Residential – Multifamily	308		354		—
Consumer	107		107		—
	7,475		7,818		—
With an allowance recorded:
Commercial and Industrial	138		1,392		138
Real Estate Construction:
Residential	—		—		—
Commercial	7,225		11,125		155
Real Estate Mortgage:
Commercial – Owner Occupied	4,380		4,409		498
Commercial – Non-owner Occupied	15,506		17,100		226
Residential – 1 to 4 Family	1,681		1,697		234
Residential – Multifamily	—		—		—
Consumer	—		—		—
	28,930		35,723		1,251
Total:
Commercial and Industrial	159		1,415		138
Real Estate Construction:
Residential	—		—		—
Commercial	8,386		12,286		155
Real Estate Mortgage:
Commercial – Owner Occupied	4,380		4,409		498
Commercial – Non-owner Occupied	19,000		20,839		226
Residential – 1 to 4 Family	4,065		4,131		234
Residential – Multifamily	308		354		—
Consumer	107		107		—
	$	36,405	$	43,541	$	1,251

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 years ended December 31, 2016 and 2015:

	Year Ended December 31,
	2016				2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Amounts in thousands)
Commercial and Industrial	$	333	$	1	$	3,088	$	45
Real Estate Construction:
Residential	—		—		—		—
Commercial	9,340		234		10,013		87
Real Estate Mortgage:
Commercial – Owner Occupied	4,878		176		5,548		196
Commercial – Non-owner Occupied	19,281		751		26,554		985
Residential – 1 to 4 Family	4,130		122		5,491		113
Residential – Multifamily	320		8		359		26
Consumer	108		6		—		—
Total	$	38,390	$	1,298	$	51,053	$	1,452

Analysis of Credit Risk Profile by Internally Assigned Grades

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

At December 31, 2016	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	26,515	$	121	$	138	$	—	$	26,774
Real Estate Construction:
Residential	8,825		—		—		—		8,825
Commercial	35,656		12,516		10,297		—		58,469
Real Estate Mortgage:
Commercial – Owner Occupied	120,166		3,302		430		—		123,898
Commercial – Non-owner Occupied	261,181		79		6,863		—		268,123
Residential – 1 to 4 Family	304,042		1,536		3,762		—		309,340
Residential – Multifamily	39,496		—		308		—		39,804
Consumer	16,612		—		108		—		16,720
Total	$	812,493	$	17,554	$	21,906	$	—	$	851,953

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