Loans (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Portfolio of Loans Outstanding

The portfolio of loans outstanding consists of:

	December 31, 2017				December 31, 2016
	Amount		Percentage of Total Loans		Amount		Percentage of Total Loans
	(Amounts in thousands)
Commercial and Industrial	$	38,972	4.0	%	$	26,774	3.1	%
Real Estate Construction:
Residential	28,486		2.8		8,825		1.0
Commercial	67,139		6.6		58,469		6.9
Real Estate Mortgage:
Commercial – Owner Occupied	126,250		12.5		123,898		14.5
Commercial – Non-owner Occupied	270,472		26.7		268,123		31.5
Residential – 1 to 4 Family	416,317		41.1		309,340		36.3
Residential – Multifamily	47,832		4.7		39,804		4.7
Consumer	16,249		1.6		16,720		2.0
Total Loans	$	1,011,717	100.0	%	$	851,953	100.0	%

Analysis of Loans to Related Parties

An analysis of the activity of such related party loans for 2017 and 2016 is as follows:

	2017			2016
	(Amounts in thousands)
Balance, beginning of year	$	13,972		$	20,072
Advances	1,669			418
Less: repayments	(2,861		)	(856		)
Less: reduction due to change in director	—			(5,662		)
Balance, end of year	$	12,780		$	13,972

Age Analysis of Past Due Loans by Class

An age analysis of past due loans by class follows:

December 31, 2017	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	$	—	—	17	17	38,955	$	38,972	—
Real Estate Construction:
Residential	—		—	—	—	28,486	28,486		—
Commercial	—		—	1,392	1,392	65,747	67,139		—
Real Estate Mortgage:
Commercial – Owner Occupied	—		—	155	155	126,095	126,250		—
Commercial – Non-owner Occupied	—		—	597	597	269,875	270,472		—
Residential – 1 to 4 Family	—		352	2,292	2,644	413,673	416,317		—
Residential – Multifamily	—		—	—	—	47,832	47,832		—
Consumer	92		—	81	173	16,076	16,249		—
Total Loans	$	92	352	4,534	4,978	1,006,739	$	1,011,717	—

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	—

Impaired Loans

Impaired loans are set forth in the following tables.

December 31, 2017	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	17	$	21	$	—
Real Estate Construction:
Residential	—		—		—
Commercial	1,365		5,856		—
Real Estate Mortgage:
Commercial – Owner Occupied	155		155		—
Commercial – Non-owner Occupied	277		277		—
Residential – 1 to 4 Family	2,292		2,354		—
Residential – Multifamily	—		—		—
Consumer	81		81		—
	4,187		8,744		—
With an allowance recorded:
Commercial and Industrial	—		—		—
Real Estate Construction:
Residential	—		—		—
Commercial	4,587		4,684		135
Real Estate Mortgage:
Commercial – Owner Occupied	3,635		3,665		58
Commercial – Non-owner Occupied	12,124		13,941		250
Residential – 1 to 4 Family	919		919		15
Residential – Multifamily	—		—		—
Consumer	—		—		—
	21,265		23,209		458
Total:
Commercial and Industrial	17		21		—
Real Estate Construction:
Residential	—		—		—
Commercial	5,952		10,540		135
Real Estate Mortgage:
Commercial – Owner Occupied	3,790		3,820		58
Commercial – Non-owner Occupied	12,401		14,218		250
Residential – 1 to 4 Family	3,211		3,273		15
Residential – Multifamily	—		—		—
Consumer	81		81		—
	$	25,452	$	31,953	$	458

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

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, 2017, 2016 and 2015:

	Year Ended December 31,
	2017				2016				2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Amounts in thousands)
Commercial and Industrial	$	1,063	$	1	$	333	$	1	$	3,088	$	45
Real Estate Construction:
Residential	—		—		—		—		—		—
Commercial	10,086		202		9,340		234		10,013		87
Real Estate Mortgage:
Commercial – Owner Occupied	4,267		193		4,878		176		5,548		196
Commercial – Non-owner Occupied	15,894		632		19,281		751		26,554		985
Residential – 1 to 4 Family	4,201		92		4,130		122		5,491		113
Residential – Multifamily	138		—		320		8		359		26
Consumer	97		5		108		6		—		—
Total	$	35,746	$	1,125	$	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, 2017 and 2016, is as follows:

At December 31, 2017	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	38,875	$	97	$	—	$	—	$	38,972
Real Estate Construction:
Residential	23,430		5,056		—		—		28,486
Commercial	58,921		—		8,218		—		67,139
Real Estate Mortgage:
Commercial – Owner Occupied	123,491		2,604		155		—		126,250
Commercial – Non-owner Occupied	269,736		—		736		—		270,472
Residential – 1 to 4 Family	413,327		560		2,430		—		416,317
Residential – Multifamily	47,832		—		—		—		47,832
Consumer	16,168		—		81		—		16,249
Total	$	991,780	$	8,317	$	11,620	$	—	$	1,011,717

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