Note 4 - Loans and Related Allowance for Loan Loss

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note

4.

Loans and Related Allowance for Loan Loss

The Company’s loan portfolio is made up of

four

classifications: real estate loans, commercial and industrial loans, consumer loans and other loans. These segments are further segregated between loans accounted for under the amortized cost method (“Originated Loans”) and acquired loans that were originally recorded at fair value with

no

carryover of the related pre-merger allowance for loan losses (“Loans Acquired at Fair Value”). The following table presents the classifications of loans as of the dates indicated.

	(Dollars in thousands)
	September 30, 2017						December 31, 2016
	Amount			Percent			Amount			Percent
Originated Loans
Real Estate:
Residential	$	193,214			34.1	%	$	186,077			35.4	%
Commercial		150,442			26.5			139,894			26.7
Construction		28,965			5.1			10,646			2.0
Commercial and Industrial		77,217			13.6			71,091			13.5
Consumer		113,822			20.1			114,007			21.7
Other		3,444			0.6			3,637			0.7
Total Originated Loans		567,104			100.0	%		525,352			100.0	%
Allowance for Loan Losses		(7,573	)					(7,283	)
Loans, Net	$	559,531					$	518,069
Loans Acquired at Fair Value
Real Estate:
Residential	$	75,217			55.0	%	$	85,511			54.7	%
Commercial		52,826			38.7			61,116			39.0
Commercial and Industrial		8,532			6.2			9,721			6.2
Consumer		195			0.1			197			0.1
Total Loans Acquired at Fair Value		136,770			100.0	%		156,545			100.0	%
Allowance for Loan Losses		(583	)					(520	)
Loans, Net	$	136,187					$	156,025
Total Loans
Real Estate:
Residential	$	268,431			38.1	%	$	271,588			39.8	%
Commercial		203,268			28.9			201,010			29.5
Construction		28,965			4.1			10,646			1.6
Commercial and Industrial		85,749			12.2			80,812			11.9
Consumer		114,017			16.2			114,204			16.7
Other		3,444			0.5			3,637			0.5
Total Loans		703,874			100.0	%		681,897			100.0	%
Allowance for Loan Losses		(8,156	)					(7,803	)
Loans, Net	$	695,718					$	674,094

Total unamortized net deferred loan fees were

$682,000

and

$818,000

at

September 30, 2017

and

December 31, 2016,

respectively.

Real estate loans serviced for others, which are

not

included in the Consolidated Statement of Financial Condition, totaled

$94.6

million and

$83.9

million at

September 30, 2017

and

December 31, 2016,

respectively.

The following table presents loans summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the dates indicated. At

September 30, 2017

and

December 31, 2016,

there were

no

loans in the criticized category of Loss within the internal risk rating system.

	(Dollars in thousands)
	September 30, 2017
	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans
Real Estate:
Residential	$	191,801	$	1,006	$	407	$	-	$	193,214
Commercial		133,529		13,909		2,467		537		150,442
Construction		28,356		-		550		59		28,965
Commercial and Industrial		66,415		8,326		1,111		1,365		77,217
Consumer		113,795		-		27		-		113,822
Other		3,444		-		-		-		3,444
Total Originated Loans	$	537,340	$	23,241	$	4,562	$	1,961	$	567,104
Loans Acquired at Fair Value
Real Estate:
Residential	$	73,213	$	-	$	2,004	$	-	$	75,217
Commercial		50,381		1,939		506		-		52,826
Commercial and Industrial		8,176		9		263		84		8,532
Consumer		195		-		-		-		195
Total Loans Acquired at Fair Value	$	131,965	$	1,948	$	2,773	$	84	$	136,770
Total Loans
Real Estate:
Residential	$	265,014	$	1,006	$	2,411	$	-	$	268,431
Commercial		183,910		15,848		2,973		537		203,268
Construction		28,356		-		550		59		28,965
Commercial and Industrial		74,591		8,335		1,374		1,449		85,749
Consumer		113,990		-		27		-		114,017
Other		3,444		-		-		-		3,444
Total Loans	$	669,305	$	25,189	$	7,335	$	2,045	$	703,874

	December 31, 2016
	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans
Real Estate:
Residential	$	184,721	$	1,050	$	306	$	-	$	186,077
Commercial		122,811		14,118		2,035		930		139,894
Construction		9,944		-		595		107		10,646
Commercial and Industrial		65,612		2,720		1,322		1,437		71,091
Consumer		113,847		-		160		-		114,007
Other		3,637		-		-		-		3,637
Total Originated Loans	$	500,572	$	17,888	$	4,418	$	2,474	$	525,352
Loans Acquired at Fair Value
Real Estate:
Residential	$	83,044	$	-	$	2,467	$	-	$	85,511
Commercial		58,411		2,358		347		-		61,116
Commercial and Industrial		9,117		42		441		121		9,721
Consumer		197		-		-		-		197
Total Loans Acquired at Fair Value	$	150,769	$	2,400	$	3,255	$	121	$	156,545
Total Loans
Real Estate:
Residential	$	267,765	$	1,050	$	2,773	$	-	$	271,588
Commercial		181,222		16,476		2,382		930		201,010
Construction		9,944		-		595		107		10,646
Commercial and Industrial		74,729		2,762		1,763		1,558		80,812
Consumer		114,044		-		160		-		114,204
Other		3,637		-		-		-		3,637
Total Loans	$	651,341	$	20,288	$	7,673	$	2,595	$	681,897

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of the dates indicated.

	(Dollars in thousands)
	September 30, 2017
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
Originated Loans
Real Estate:
Residential	$	192,769	$	91	$	42	$	-	$	133	$	312	$	193,214
Commercial		150,154		-		-		-		-		288		150,442
Construction		28,906		-		-		-		-		59		28,965
Commercial and Industrial		75,108		-		-		496		496		1,613		77,217
Consumer		112,485		1,155		103		52		1,310		27		113,822
Other		3,444		-		-		-		-		-		3,444
Total Originated Loans	$	562,866	$	1,246	$	145	$	548	$	1,939	$	2,299	$	567,104
Loans Acquired at Fair Value
Real Estate:
Residential	$	73,977	$	45	$	-	$	75	$	120	$	1,120	$	75,217
Commercial		52,826		-		-		-		-		-		52,826
Commercial and Industrial		8,516		-		-		-		-		16		8,532
Consumer		190		5		-		-		5		-		195
Total Loans Acquired at Fair Value	$	135,509	$	50	$	-	$	75	$	125	$	1,136	$	136,770
Total Loans
Real Estate:
Residential	$	266,746	$	136	$	42	$	75	$	253	$	1,432	$	268,431
Commercial		202,980		-		-		-		-		288		203,268
Construction		28,906		-		-		-		-		59		28,965
Commercial and Industrial		83,624		-		-		496		496		1,629		85,749
Consumer		112,675		1,160		103		52		1,315		27		114,017
Other		3,444		-		-		-		-		-		3,444
Total Loans	$	698,375	$	1,296	$	145	$	623	$	2,064	$	3,435	$	703,874

	December 31, 2016
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
Originated Loans
Real Estate:
Residential	$	183,939	$	1,638	$	72	$	120	$	1,830	$	308	$	186,077
Commercial		139,821		-		-		-		-		73		139,894
Construction		10,539		-		-		-		-		107		10,646
Commercial and Industrial		68,310		952		-		-		952		1,829		71,091
Consumer		112,232		1,311		296		8		1,615		160		114,007
Other		3,637		-		-		-		-		-		3,637
Total Originated Loans	$	518,478	$	3,901	$	368	$	128	$	4,397	$	2,477	$	525,352
Loans Acquired at Fair Value
Real Estate:
Residential	$	82,523	$	893	$	307	$	223	$	1,423	$	1,565	$	85,511
Commercial		60,437		332		-		-		332		347		61,116
Commercial and Industrial		9,577		121		23		-		144		-		9,721
Consumer		197		-		-		-		-		-		197
Total Loans Acquired at Fair Value	$	152,734	$	1,346	$	330	$	223	$	1,899	$	1,912	$	156,545
Total Loans
Real Estate:
Residential	$	266,462	$	2,531	$	379	$	343	$	3,253	$	1,873	$	271,588
Commercial		200,258		332		-		-		332		420		201,010
Construction		10,539		-		-		-		-		107		10,646
Commercial and Industrial		77,887		1,073		23		-		1,096		1,829		80,812
Consumer		112,429		1,311		296		8		1,615		160		114,204
Other		3,637		-		-		-		-		-		3,637
Total Loans	$	671,212	$	5,247	$	698	$	351	$	6,296	$	4,389	$	681,897

The following table sets forth the amounts and categories of our nonperforming assets at the dates indicated. Included in nonperforming loans and assets are troubled debt restructurings (“TDRs”), which are loans whose contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties. Nonaccrual TDRs are included in their specific loan category in the nonaccrual loans section.

	(Dollars in Thousands)
	September 30, 2017			December 31, 2016
Nonaccrual Loans:
Originated Loans:
Real Estate:
Residential	$	312		$	308
Commercial		288			73
Construction		59			107
Commercial and Industrial		1,613			1,829
Consumer		27			160
Total Originated Nonaccrual Loans		2,299			2,477
Loans Acquired at Fair Value:
Real Estate:
Residential		1,120			1,565
Commercial		-			347
Commercial and Industrial		16			-
Total Loans Acquired at Fair Value Nonaccrual Loans		1,136			1,912
Total Nonaccrual Loans		3,435			4,389
Accruing Loans Past Due 90 Days or More:
Originated Loans:
Real Estate:
Residential		-			120
Commercial and Industrial		496			-
Consumer		52			8
Total Originated Accruing Loans 90 Days or More Past Due		548			128
Loans Acquired at Fair Value:
Real Estate:
Residential		75			223
Total Loans Acquired at Fair Value Accruing Loans 90 Days or More Past Due		75			223
Total Accruing Loans 90 Days or More Past Due		623			351
Total Nonaccrual Loans and Accruing Loans 90 Days or More Past Due		4,058			4,740
Troubled Debt Restructurings, Accruing:
Originated Loans:
Real Estate - Residential		61			-
Real Estate - Commercial		1,285			1,325
Commercial and Industrial		5			6
Other		2			4
Total Originated Loans		1,353			1,335
Loans Acquired at Fair Value:
Real Estate - Residential		1,268			1,299
Real Estate - Commercial		438			660
Commercial and Industrial		247			393
Total Loans Acquired at Fair Value		1,953			2,352
Total Troubled Debt Restructurings, Accruing		3,306			3,687
Total Nonperforming Loans		7,364			8,427
Real Estate Owned:
Residential		236			-
Commercial		174			174
Total Real Estate Owned		410			174
Total Nonperforming Assets	$	7,774		$	8,601
Nonperforming Loans to Total Loans		1.05	%		1.24	%
Nonperforming Assets to Total Assets		0.86			1.02

The recorded investment of residential real estate loans for which formal foreclosure proceedings were in process according to applicable requirements of the local jurisdiction was

$1.2

million and

$2.2

million at

September 30, 2017

and

December 31, 2016,

respectively.

TDRs typically are the result of our loss mitigation activities whereby concessions are granted to minimize loss and avoid foreclosure or repossession of collateral. The concessions granted for the TDRs in the portfolio primarily consist of, but are

not

limited to, modification of payment or other terms, temporary rate modification and extension of maturity date. Loans classified as TDRs consisted of

16

loans totaling

$4.7

million and

15

loans totaling

$4.7

million at

September 30, 2017

and

December 31, 2016,

respectively. Originated loans classified as TDRs consisted of

8

loans totaling

$2.8

million and

6

loans totaling

$2.3

million at

September 30, 2017

and

December 31, 2016,

respectively. Loans acquired at fair value classified as TDRs consisted of

8

loans totaling

$1.9

million and

9

loans totaling

$2.4

million at

September 30, 2017

and

December 31, 2016,

respectively.

During the

three

and

nine

months ended

September 30, 2017,

one

residential real estate loan modified terms in a new TDR transaction. During the

nine

months ended

September 30, 2016,

one

commercial loan previously identified as an acquired loan at fair value TDR paid off, an originated consumer loan modified terms in a new TDR transaction, and

one

commercial and

one

residential real estate loan that were acquired at fair value modified terms into new TDR transactions.

No

loans were modified in a TDR during the

three

months ended

September 30, 2016.

No

TDRs subsequently defaulted during the

three

or

nine

months ended

September 30, 2017

and

2016,

respectively.

The following table presents information at the time of modification related to loans modified in a TDR during the

three

and

nine

months ended

September 30, 2017

and

nine

months ended

September 30, 2016.

	(Dollars in thousands)
	Three Months Ended September 30, 2017
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
Originated Loans
Real Estate
Residential		1	$	61	$	61	$	-
Total		1	$	61	$	61	$	-

	(Dollars in thousands)
	Nine Months Ended September 30, 2017
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
Originated Loans
Real Estate
Residential		1	$	61	$	61	$	-
Total		1	$	61	$	61	$	-

	(Dollars in thousands)
	Nine Months Ended September 30, 2016
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
Originated Loans
Real Estate
Other		1	$	7	$	7	$	-
Total		1	$	7	$	7	$	-
Loans Acquired at Fair Value
Real Estate
Residential		1	$	37	$	45	$	-
Commercial		1		539		539		-
Total		2	$	576	$	584	$	-

The following table presents a summary of the loans considered to be impaired as of the dates indicated.

	(Dollars in thousands)
	September 30, 2017
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Originated Loans
Real Estate:
Residential	$	124	$	-	$	126	$	133	$	3
Commercial		1,886		-		1,886		1,972		67
Construction		609		-		609		640		20
Commercial and Industrial		751		-		751		747		28
Other		2		-		2		3		-
Total With No Related Allowance Recorded	$	3,372	$	-	$	3,374	$	3,495	$	118
Loans Acquired at Fair Value
Real Estate:
Residential	$	1,268	$	-	$	1,268	$	1,284	$	49
Commercial		944		-		944		975		38
Commercial and Industrial		263		-		263		351		11
Total With No Related Allowance Recorded	$	2,475	$	-	$	2,475	$	2,610	$	98
Total Loans
Real Estate:
Residential	$	1,392	$	-	$	1,394	$	1,417	$	52
Commercial		2,830		-		2,830		2,947		105
Construction		609		-		609		640		20
Commercial and Industrial		1,014		-		1,014		1,098		39
Other		2		-		2		3		-
Total With No Related Allowance Recorded	$	5,847	$	-	$	5,849	$	6,105	$	216
With A Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	1,495	$	392	$	1,495	$	1,516	$	49
Commercial and Industrial		1,730		636		1,804		2,025		75
Total With A Related Allowance Recorded	$	3,225	$	1,028	$	3,299	$	3,541	$	124
Loans Acquired at Fair Value
Commercial and Industrial	$	84	$	10	$	84	$	103	$	4
Total With A Related Allowance Recorded	$	84	$	10	$	84	$	103	$	4
Total Loans
Real Estate:
Commercial	$	1,495	$	392	$	1,495	$	1,516	$	49
Commercial and Industrial		1,814		646		1,888		2,128		79
Total With A Related Allowance Recorded	$	3,309	$	1,038	$	3,383	$	3,644	$	128

	September 30, 2017 (cont.)
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
Total Impaired Loans:
Originated Loans
Real Estate:
Residential	$	124	$	-	$	126	$	133	$	3
Commercial		3,381		392		3,381		3,488		116
Construction		609		-		609		640		20
Commercial and Industrial		2,481		636		2,555		2,772		103
Other		2		-		2		3		-
Total Impaired Loans	$	6,597	$	1,028	$	6,673	$	7,036	$	242
Loans Acquired at Fair Value
Real Estate:
Residential	$	1,268	$	-	$	1,268	$	1,284	$	49
Commercial		944		-		944		975		38
Commercial and Industrial		347		10		347		454		15
Total Impaired Loans	$	2,559	$	10	$	2,559	$	2,713	$	102
Total Loans
Real Estate:
Residential	$	1,392	$	-	$	1,394	$	1,417	$	52
Commercial		4,325		392		4,325		4,463		154
Construction		609		-		609		640		20
Commercial and Industrial		2,828		646		2,902		3,226		118
Other		2		-		2		3		-
Total Impaired Loans	$	9,156	$	1,038	$	9,232	$	9,749	$	344

	December 31, 2016
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	2,112	$	-	$	2,112	$	2,228	$	100
Construction		702		-		702		843		28
Commercial and Industrial		825		-		825		891		45
Other		4		-		4		6		1
Total With No Related Allowance Recorded	$	3,643	$	-	$	3,643	$	3,968	$	174
Loans Acquired at Fair Value
Real Estate:
Residential	$	1,300	$	-	$	1,300	$	1,320	$	68
Commercial		660		-		660		763		47
Commercial and Industrial		441		-		441		543		21
Total With No Related Allowance Recorded	$	2,401	$	-	$	2,401	$	2,626	$	136
Total Loans
Real Estate:
Residential	$	1,300	$	-	$	1,300	$	1,320	$	68
Commercial		2,772		-		2,772		2,991		147
Construction		702		-		702		843		28
Commercial and Industrial		1,266		-		1,266		1,434		66
Other		4		-		4		6		1
Total With No Related Allowance Recorded	$	6,044	$	-	$	6,044	$	6,594	$	310
With A Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	1,249	$	360	$	1,249	$	1,277	$	66
Commercial and Industrial		1,940		655		1,946		1,951		27
Total With A Related Allowance Recorded	$	3,189	$	1,015	$	3,195	$	3,228	$	93
Loans Acquired at Fair Value
Real Estate:
Commercial	$	347	$	114	$	437	$	367	$	-
Commercial and Industrial		121		31		121		141		6
Total With A Related Allowance Recorded	$	468	$	145	$	558	$	508	$	6
Total Loans
Real Estate:
Commercial	$	1,596	$	474	$	1,686	$	1,644	$	66
Commercial and Industrial		2,061		686		2,067		2,092		33
Total With A Related Allowance Recorded	$	3,657	$	1,160	$	3,753	$	3,736	$	99

	December 31, 2016 (cont.)
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
Total Impaired Loans
Originated Loans
Real Estate:
Commercial	$	3,361	$	360	$	3,361	$	3,505	$	166
Construction		702		-		702		843		28
Commercial and Industrial		2,765		655		2,771		2,842		72
Other		4		-		4		6		1
Total Impaired Loans	$	6,832	$	1,015	$	6,838	$	7,196	$	267
Loans Acquired at Fair Value
Real Estate:
Residential	$	1,300	$	-	$	1,300	$	1,320	$	68
Commercial		1,007		114		1,097		1,130		47
Commercial and Industrial		562		31		562		684		27
Total Impaired Loans	$	2,869	$	145	$	2,959	$	3,134	$	142
Total Loans
Real Estate:
Residential	$	1,300	$	-	$	1,300	$	1,320	$	68
Commercial		4,368		474		4,458		4,635		213
Construction		702		-		702		843		28
Commercial and Industrial		3,327		686		3,333		3,526		99
Other		4		-		4		6		1
Total Impaired Loans	$	9,701	$	1,160	$	9,797	$	10,330	$	409

The following table presents the activity in the allowance for loan losses summarized by major classifications and segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for potential impairment for the periods indicated.

	(Dollars in thousands)
	September 30, 2017
	Real Estate Residential			Real Estate Commercial			Real Estate Construction		Commercial and Industrial			Consumer			Other		Unallocated			Total
Originated Loans
June 30, 2017	$	940		$	2,017		$	142	$	1,760		$	2,223		$	-	$	385		$	7,467
Charge-offs		(22	)		-			-		-			(217	)		-		-			(239	)
Recoveries		6			-			-		1			38			-		-			45
Provision		(47	)		64			85		(155	)		317			-		36			300
September 30, 2017	$	877		$	2,081		$	227	$	1,606		$	2,361		$	-	$	421		$	7,573
Loans Acquired at Fair Value
June 30, 2017	$	-		$	613		$	-	$	109		$	-		$	-	$	(106	)	$	616
Charge-offs		(45	)		-			-		-			-			-		-			(45	)
Recoveries		11			1			-		-			-			-		-			12
Provision		34			(5	)		-		(7	)		-			-		(22	)		-
September 30, 2017	$	-		$	609		$	-	$	102		$	-		$	-	$	(128	)	$	583
Total Allowance for Loan Losses
June 30, 2017	$	940		$	2,630		$	142	$	1,869		$	2,223		$	-	$	279		$	8,083
Charge-offs		(67	)		-			-		-			(217	)		-		-			(284	)
Recoveries		17			1			-		1			38			-		-			57
Provision		(13	)		59			85		(162	)		317			-		14			300
September 30, 2017	$	877		$	2,690		$	227	$	1,708		$	2,361		$	-	$	293		$	8,156
Originated Loans
December 31, 2016	$	1,106		$	1,942		$	65	$	1,579		$	2,463		$	-	$	128		$	7,283
Charge-offs		(22	)		-			-		-			(661	)		-		-			(683	)
Recoveries		11			-			-		37			155			-		-			203
Provision		(218	)		139			162		(10	)		404			-		293			770
September 30, 2017	$	877		$	2,081		$	227	$	1,606		$	2,361		$	-	$	421		$	7,573
Loans Acquired at Fair Value
December 31, 2016	$	-		$	365		$	-	$	120		$	-		$	-	$	35		$	520
Charge-offs		(109	)		(132	)		-		-			-			-		-			(241	)
Recoveries		49			2			-		-			3			-		-			54
Provision		60			374			-		(18	)		(3	)		-		(163	)		250
September 30, 2017	$	-		$	609		$	-	$	102		$	-		$	-	$	(128	)	$	583
Total Allowance for Loan Losses
December 31, 2016	$	1,106		$	2,307		$	65	$	1,699		$	2,463		$	-	$	163		$	7,803
Charge-offs		(131	)		(132	)		-		-			(661	)		-		-			(924	)
Recoveries		60			2			-		37			158			-		-			257
Provision		(158	)		513			162		(28	)		401			-		130			1,020
September 30, 2017	$	877		$	2,690		$	227	$	1,708		$	2,361		$	-	$	293		$	8,156

	September 30, 2017
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated			Total
Originated Loans
Individually Evaluated for Impairment	$	-	$	392	$	-	$	636	$	-	$	-	$	-		$	1,028
Collectively Evaluated for Potential Impairment	$	877	$	1,689	$	227	$	970	$	2,361	$	-	$	421		$	6,545
Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	-	$	-	$	-	$	10	$	-	$	-	$	-		$	10
Collectively Evaluated for Potential Impairment	$	-	$	609	$	-	$	92	$	-	$	-	$	(128	)	$	573
Total Allowance for Loan Losses
Individually Evaluated for Impairment	$	-	$	392	$	-	$	646	$	-	$	-	$	-		$	1,038
Collectively Evaluated for Potential Impairment	$	877	$	2,298	$	227	$	1,062	$	2,361	$	-	$	293		$	7,118

	September 30, 2016
	Real Estate Residential			Real Estate Commercial			Real Estate Construction			Commercial and Industrial		Consumer			Other			Unallocated			Total
Originated Loans
June 30, 2016	$	1,110		$	1,956		$	82		$	1,468	$	2,143		$	1		$	295		$	7,055
Charge-offs		(4	)		(11	)		-			-		(166	)		(17	)		-			(198	)
Recoveries		4			-			-			-		21			5			-			30
Provision		(38	)		77			(20	)		50		360			12			-			441
September 30, 2016	$	1,072		$	2,022		$	62		$	1,518	$	2,358		$	1		$	295		$	7,328
Loans Acquired at Fair Value
June 30, 2016	$	-		$	11		$	-		$	115	$	-		$	-		$	10		$	136
Charge-offs		(8	)		-			-			-		-			(2	)		-			(10	)
Recoveries		2			-			-			-		1			-			-			3
Provision		6			(11	)		-			20		(1	)		2			(7	)		9
September 30, 2016	$	-		$	-		$	-		$	135	$	-		$	-		$	3		$	138
Total Allowance for Loan Losses
June 30, 2016	$	1,110		$	1,967		$	82		$	1,583	$	2,143		$	1		$	305		$	7,191
Charge-offs		(12	)		(11	)		-			-		(166	)		(19	)		-			(208	)
Recoveries		6			-			-			-		22			5			-			33
Provision		(32	)		66			(20	)		70		359			14			(7	)		450
September 30, 2016	$	1,072		$	2,022		$	62		$	1,653	$	2,358		$	1		$	298		$	7,466
Originated Loans
December 31, 2015	$	1,623		$	2,045		$	137		$	784	$	1,887		$	-		$	14		$	6,490
Charge-offs		(24	)		(11	)		-			-		(476	)		(43	)		-			(554	)
Recoveries		8			-			-			-		102			16			-			126
Provision		(535	)		(12	)		(75	)		734		845			28			281			1,266
September 30, 2016	$	1,072		$	2,022		$	62		$	1,518	$	2,358		$	1		$	295		$	7,328
Loans Acquired at Fair Value
December 31, 2015	$	-		$	-		$	-		$	-	$	-		$	-		$	-		$	-
Charge-offs		(24	)		(180	)		-			-		(7	)		-			-			(211	)
Recoveries		7			2			-			-		6			-			-			15
Provision		17			178			-			135		1			-			3			334
September 30, 2016	$	-		$	-		$	-		$	135	$	-		$	-		$	3		$	138
Total Allowance for Loan Losses
December 31, 2015	$	1,623		$	2,045		$	137		$	784	$	1,887		$	-		$	14		$	6,490
Charge-offs		(48	)		(191	)		-			-		(483	)		(43	)		-			(765	)
Recoveries		15			2			-			-		108			16			-			141
Provision		(518	)		166			(75	)		869		846			28			284			1,600
September 30, 2016	$	1,072		$	2,022		$	62		$	1,653	$	2,358		$	1		$	298		$	7,466

	September 30, 2016
	Real Estate Residential		Real Estate Commercial			Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
Originated Loans
Individually Evaluated for Impairment	$	-	$	385		$	-	$	701	$	-	$	-	$	-	$	1,086
Collectively Evaluated for Potential Impairment	$	1,072	$	1,637		$	62	$	817	$	2,358	$	1	$	295	$	6,242
Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	-	$	122		$	-	$	39	$	-	$	-	$	-	$	161
Collectively Evaluated for Potential Impairment	$	-	$	(122	)	$	-	$	96	$	-	$	-	$	3	$	(23	)
Total Allowance for Loan Losses
Individually Evaluated for Impairment	$	-	$	507		$	-	$	740	$	-	$	-	$	-	$	1,247
Collectively Evaluated for Potential Impairment	$	1,072	$	1,515		$	62	$	913	$	2,358	$	1	$	298	$	6,219

	December 31, 2016
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
Originated Loans
Individually Evaluated for Impairment	$	-	$	360	$	-	$	655	$	-	$	-	$	-	$	1,015
Collectively Evaluated for Potential Impairment	$	1,106	$	1,582	$	65	$	924	$	2,463	$	-	$	128	$	6,268
Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	-	$	114	$	-	$	31	$	-	$	-	$	-	$	145
Collectively Evaluated for Potential Impairment	$	-	$	251	$	-	$	89	$	-	$	-	$	35	$	375
Total Allowance for Loan Losses
Individually Evaluated for Impairment	$	-	$	474	$	-	$	686	$	-	$	-	$	-	$	1,160
Collectively Evaluated for Potential Impairment	$	1,106	$	1,833	$	65	$	1,013	$	2,463	$	-	$	163	$	6,643

The following table presents changes in the accretable discount on the loans acquired at fair value for the dates indicated.

	Accretable Discount
Balance at December 31, 2016	$	1,640
Accretable Yield		(533	)
Nonaccretable Discount		(113	)
Balance at September 30, 2017	$	994

The following table presents the major classifications of loans summarized by individually evaluated for impairment and collectively evaluated for potential impairment as of the dates indicated.

	(Dollars in thousands)
	September 30, 2017
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
Originated Loans
Individually Evaluated for Impairment	$	124	$	3,381	$	609	$	2,481	$	-	$	2	$	6,597
Collectively Evaluated for Potential Impairment		193,090		147,061		28,356		74,736		113,822		3,442		560,507
	$	193,214	$	150,442	$	28,965	$	77,217	$	113,822	$	3,444	$	567,104
Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	1,268	$	944	$	-	$	347	$	-	$	-	$	2,559
Collectively Evaluated for Potential Impairment		73,949		51,882		-		8,185		195		-		134,211
	$	75,217	$	52,826	$	-	$	8,532	$	195	$	-	$	136,770
Total Loans
Individually Evaluated for Impairment	$	1,392	$	4,325	$	609	$	2,828	$	-	$	2	$	9,156
Collectively Evaluated for Potential Impairment		267,039		198,943		28,356		82,921		114,017		3,442		694,718
	$	268,431	$	203,268	$	28,965	$	85,749	$	114,017	$	3,444	$	703,874

	December 31, 2016
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
Originated Loans
Individually Evaluated for Impairment	$	-	$	3,361	$	702	$	2,765	$	-	$	4	$	6,832
Collectively Evaluated for Potential Impairment		186,077		136,533		9,944		68,326		114,007		3,633		518,520
	$	186,077	$	139,894	$	10,646	$	71,091	$	114,007	$	3,637	$	525,352
Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	1,300	$	1,007	$	-	$	562	$	-	$	-	$	2,869
Collectively Evaluated for Potential Impairment		84,211		60,109		-		9,159		197		-		153,676
	$	85,511	$	61,116	$	-	$	9,721	$	197	$	-	$	156,545
Total Loans
Individually Evaluated for Impairment	$	1,300	$	4,368	$	702	$	3,327	$	-	$	4	$	9,701
Collectively Evaluated for Potential Impairment		270,288		196,642		9,944		77,485		114,204		3,633		672,196
	$	271,588	$	201,010	$	10,646	$	80,812	$	114,204	$	3,637	$	681,897