Loans (Tables)

9 Months Ended

Sep. 30, 2014

Loans

Schedule of major classifications of loans

(Dollars in thousands)	September 30, 2014			December 31, 2013
Residential real estate mortgage loans:
1-4 family	$	122,604		$	98,180
Home equity loans and lines of credit	81,758			83,334
Total residential real estate mortgage loans	204,362			181,514
Commercial:
Commercial real estate	100,275			91,609
Commercial business	7,539			8,301
Commercial construction	9,124			7,099
SBA	44,384			38,004
Total commercial loans	161,322			145,013
Consumer	1,450			1,672
Total loans	367,134			328,199
Allowance for loan losses	(1,935		)	(1,656		)
Net deferred loan costs	2,468			2,033
Loans, net	$	367,667		$	328,576

Schedule of the credit risk profile by internally assigned risk rating category

	September 30, 2014
	Commercial		Commercial		Commercial
(Dollars in thousands)	Real Estate		Business		Construction		SBA		Total
Loans rated 1-5	$	95,966	$	7,468	$	5,220	$	38,738	$	147,392
Loans rated 5.5	3,121		—		3,600		2,095		8,816
Loans rated 6	82		—		—		504		586
Loans rated 7	1,106		71		304		2,655		4,136
Loans rated 8	—		—		—		392		392
	$	100,275	$	7,539	$	9,124	$	44,384	$	161,322

	December 31, 2013
	Commercial		Commercial		Commercial
(Dollars in thousands)	Real Estate		Business		Construction		SBA		Total
Loans rated 1-5	$	88,578	$	7,898	$	5,926	$	30,723	$	133,125
Loans rated 5.5	2,858		168		—		2,493		5,519
Loans rated 6	—		—		—		1,007		1,007
Loans rated 7	173		235		1,173		3,622		5,203
Loans rated 8	—		—		—		159		159
	$	91,609	$	8,301	$	7,099	$	38,004	$	145,013

Schedule of past due loans

September 30, 2014

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Past Due > 90 Days and Still Accruing		Loans on Non-accrual
Residential real estate:
Residential 1-4 family	$	—	$	172	$	2,018	$	2,190	$	—	$	6,426
Home equity loans and lines of credit	434		109		78		621		—		288
Commercial real estate	—		82		—		82		—		—
Commercial business	—		—		—		—		—		—
Commercial construction	—		—		—		—		—		—
SBA	—		65		771		836		—		787
Consumer	14		—		—		14		—		—
Total gross loans	$	448	$	428	$	2,867	$	3,743	$	—	$	7,501

December 31, 2013

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Past Due > 90 Days and Still Accruing		Loans on Non-accrual
Residential real estate:
Residential 1-4 family	$	925	$	1,573	$	1,035	$	3,533	$	—	$	4,790
Home equity loans and lines of credit	294		—		53		347		—		158
Commercial real estate	—		—		—		—		—		—
Commercial business	—		—		—		—		—		—
Commercial construction	—		—		—		—		—		—
SBA	1,131		81		977		2,189		—		1,508
Consumer	19		—		—		19		—		3
Total gross loans	$	2,369	$	1,654	$	2,065	$	6,088	$	—	$	6,459

Schedule of the recorded investment in impaired loans and the related specific allowance allocated

September 30, 2014

(Dollars in thousands)	Unpaid contractual principal balance		Total recorded investment in impaired loans		Recorded investment with no allowance		Recorded investment with allowance		Related allowance
Residential real estate:
Residential 1-4 family	$	7,633	$	7,448	$	3,973	$	3,475	$	212
Home equity loans & lines of credit	677		587		334		253		64
SBA	1,825		1,804		1,567		237		8
Consumer	26		26		10		16		4
Total	$	10,161	$	9,865	$	5,884	$	3,981	$	288

December 31, 2013

(Dollars in thousands)	Unpaid contractual principal balance		Total recorded investment in impaired loans		Recorded investment with no allowance		Recorded investment with allowance		Related allowance
Residential real estate:
Residential 1-4 family	$	6,660	$	6,499	$	3,689	$	2,810	$	94
Home equity loans & lines of credit	548		359		104		255		66
SBA	2,755		2,681		1,764		917		34
Consumer	33		33		13		20		7
Total	$	9,996	$	9,572	$	5,570	$	4,002	$	201

Schedule of the average recorded investment in impaired loans and the related interest recognized

	Three Months Ended September 30, 2014				Three Months Ended September 30, 2013
(Dollars in thousands)	Average recorded investment		Interest income recognized		Average recorded investment		Interest income recognized
Residential 1-4 family	$	7,210	$	60	$	6,895	$	29
Home equity loans & lines of credit	546		9		535		5
Commercial real estate	—		—		37		—
SBA	2,009		21		2,332		17
Consumer	26		—		37		—
Total	$	9,791	$	90	$	9,836	$	51

	Nine Months Ended September 30, 2014				Nine Months Ended September 30, 2013
(Dollars in thousands)	Average recorded investment		Interest income recognized		Average recorded investment		Interest income recognized
Residential 1-4 family	$	6,944	$	193	$	6,810	$	164
Home equity loans & lines of credit	438		17		686		25
Commercial real estate	—		—		37		—
SBA	2,219		132		2,178		49
Consumer	28		—		30		1
Total	$	9,629	$	342	$	9,741	$	239

Schedule of troubled debt restructuring agreements entered into during the period

	Three Months Ended September 30, 2014					Nine Months Ended September 30, 2014
(Dollars in thousands)	Number of restructurings	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Number of restructurings	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Residential 1-4 family	1	$	328	$	328	6	$	1,979	$	1,979
Home equity and lines	1	100		100		1	100		100
SBA	—	—		—		2	34		34
Total	2	$	428	$	428	9	$	2,113	$	2,113

	Three Months Ended September 30, 2013					Nine Months Ended September 30, 2013
(Dollars in thousands)	Number of restructurings	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Number of restructurings	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Residential 1-4 family	2	$	321	$	321	6	$	1,297	$	1,297
Home equity and lines	—	—		—		1	25		25
SBA	1	85		85		2	215		215
Consumer	—	—		—		2	13		13
Total	3	$	406	$	406	11	$	1,550	$	1,550

Schedule of troubled debt restructurings that subsequently defaulted within 12 months of restructuring

	Three Months Ended September 30, 2014			Nine Months Ended September 30, 2014
(Dollars in thousands)	Number of TDRs that defaulted	Post-modification outstanding recorded investment		Number of TDRs that defaulted	Post-modification outstanding recorded investment
Residential 1-4 family	—	$	—	4	$	878
SBA	1	9		1	9
Total	1	$	9	5	$	887

	Three Months Ended September 30, 2013				Nine Months Ended September 30, 2013
(Dollars in thousands)	Number of TDRs that defaulted		Post-modification outstanding recorded investment		Number of TDRs that defaulted	Post-modification outstanding recorded investment
Residential 1-4 family	$	4	$	174	7	$	2,360
Home equity and lines of credit	—		—		1	25
SBA	—		—		1	39
Consumer	—		—		1	12
Total	$	4	$	174	10	$	2,436

Schedule of changes in the allowance for loan losses by segment

Three Months Ended September 30, 2014

(Dollars in thousands)	Residential 1-4 family			Home Equity			Commercial Real Estate		Commercial Business			Commercial Construction			SBA			Consumer			Total
Allowance at June 30, 2014	$	592		$	607		$	353	$	30		$	45		$	250		$	14		$	1,891
Provision (credit)	104			17			8		(3		)	(12		)	4			(3		)	115
Loans charged-off	(24		)	(43		)	—		—			—			(19		)	(3		)	(89		)
Recoveries	1			11			—		—			—			1			5			18
Allowance at September 30, 2014	$	673		$	592		$	361	$	27		$	33		$	236		$	13		$	1,935

Three Months Ended September 30, 2013

(Dollars in thousands)	Residential 1-4 family		Home Equity			Commercial Real Estate		Commercial Business			Commercial Construction		SBA			Consumer		Total
Allowance at June 30, 2013	$	416	$	649		$	283	$	28		$	20	$	185		$	16	$	1,597
Provision (credit)	40		59			2		(1		)	3		26			—		129
Loans charged-off	—		(130		)	—		—			—		(5		)	—		(135		)
Recoveries	3		3			—		—			—		9			2		17
Allowance at September 30, 2013	$	459	$	581		$	285	$	27		$	23	$	215		$	18	$	1,608

Nine Months Ended September 30, 2014

(Dollars in thousands)	Residential 1-4 family			Home Equity			Commercial Real Estate		Commercial Business			Commercial Construction		SBA			Consumer			Total
Allowance at December 31, 2013	$	462		$	605		$	321	$	29		$	24	$	197		$	18		$	1,656
Provision (credit)	231			63			40		(2		)	9		68			(13		)	396
Loans charged-off	(76		)	(99		)	—		—			—		(33		)	(3		)	(211		)
Recoveries	56			23			—		—			—		4			11			94
Allowance at September 30, 2014	$	673		$	592		$	361	$	27		$	33	$	236		$	13		$	1,935

Nine Months Ended September 30, 2013

(Dollars in thousands)	Residential 1-4 family		Home Equity			Commercial Real Estate		Commercial Business		Commercial Construction		SBA			Consumer			Total
Allowance at December 31, 2012	$	393	$	674		$	261	$	25	$	11	$	185		$	20		$	1,569
Provision (credit)	56		243			24		2		12		1			—			338
Loans charged-off	—		(345		)	—		—		—		(13		)	(15		)	(373		)
Recoveries	10		9			—		—		—		42			13			74
Allowance at September 30, 2013	$	459	$	581		$	285	$	27	$	23	$	215		$	18		$	1,608

Schedule of allowance for loan losses and loan balances by impaired and non-impaired components

September 30, 2014

(Dollars in thousands)	Residential 1-4 family		Home Equity		Commercial Real Estate		Commercial Business		Commercial Construction		SBA		Consumer		Total
Allowance for impaired loans	$	212	$	64	$	—	$	—	$	—	$	8	$	4	$	288
Allowance for non-impaired loans	461		528		361		27		33		228		9		1,647
Total	$	673	$	592	$	361	$	27	$	33	$	236	$	13	$	1,935
Impaired loans	$	7,448	$	587	$	—	$	—	$	—	$	1,804	$	26	$	9,865
Non-impaired loans	115,156		81,171		100,275		7,539		9,124		42,580		1,424		357,269
Total loans	$	122,604	$	81,758	$	100,275	$	7,539	$	9,124	$	44,384	$	1,450	$	367,134

December 31, 2013

(Dollars in thousands)	Residential 1-4 family		Home Equity		Commercial Real Estate		Commercial Business		Commercial Construction		SBA		Consumer		Total
Allowance for impaired loans	$	94	$	66	$	—	$	—	$	—	$	34	$	7	$	201
Allowance for non-impaired loans	368		539		321		29		24		163		11		1,455
Total	$	462	$	605	$	321	$	29	$	24	$	197	$	18	$	1,656
Impaired loans	$	6,499	$	359	$	—	$	—	$	—	$	2,681	$	33	$	9,572
Non-impaired loans	91,681		82,975		91,609		8,301		7,099		35,323		1,639		318,627
Total loans	$	98,180	$	83,334	$	91,609	$	8,301	$	7,099	$	38,004	$	1,672	$	328,199