Loan Quality (Tables)

12 Months Ended

Dec. 31, 2016

Internal Credit Rating For The Loan Portfolio



	(1-5)		(6)		(7)		(8)
(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total

December 31, 2016
Residential Real Estate 1-4 Family
First liens	$	167,199	$	227	$	1,144	$	-	$	168,570
Junior liens and lines of credit		50,017		28		168		-		50,213
Total		217,216		255		1,312		-		218,783
Residential real estate - construction		8,220		-		755		-		8,975
Commercial real estate		377,283		-		13,301		-		390,584
Commercial		267,901		957		1,968		-		270,826
Consumer		4,705		-		-		-		4,705
Total	$	875,325	$	1,212	$	17,336	$	-	$	893,873



December 31, 2015
Residential Real Estate 1-4 Family
First liens	$	157,514	$	2,122	$	1,842	$	-	$	161,478
Junior liens and lines of credit		50,685		28		200		-		50,913
Total		208,199		2,150		2,042		-		212,391
Residential real estate - construction		7,386		-		502		-		7,888
Commercial real estate		319,985		6,175		14,535		-		340,695
Commercial		213,492		1,978		472		-		215,942
Consumer		5,100		-		-		-		5,100
Total	$	754,162	$	10,303	$	17,551	$	-	$	782,016

Aging Of Payments Of The Loan Portfolio



(Dollars in thousands)			Loans Past Due and Still Accruing										Total
	Current		30-59 Days		60-89 Days		90 Days+		Total		Non-Accrual		Loans
December 31, 2016
Residential Real Estate 1-4 Family
First liens	$	166,689	$	1,236	$	414	$	-	$	1,650	$	231	$	168,570
Junior liens and lines of credit		50,031		96		-		-		96		86		50,213
Total		216,720		1,332		414		-		1,746		317		218,783
Residential real estate - construction		8,495		-		-		-		-		480		8,975
Commercial real estate		384,658		858		447		665		1,970		3,956		390,584
Commercial		270,478		250		75		-		325		23		270,826
Consumer		4,672		30		3		-		33		-		4,705
Total	$	885,023	$	2,470	$	939	$	665	$	4,074	$	4,776	$	893,873



December 31, 2015
Residential Real Estate 1-4 Family
First liens	$	159,998	$	44	$	416	$	214	$	674	$	806	$	161,478
Junior liens and lines of credit		50,541		217		50		-		267		105		50,913
Total		210,539		261		466		214		941		911		212,391
Residential real estate - construction		7,209		177		-		-		177		502		7,888
Commercial real estate		330,953		5,713		196		152		6,061		3,681		340,695
Commercial		215,449		210		5		2		217		276		215,942
Consumer		5,041		55		4		-		59		-		5,100
Total	$	769,191	$	6,416	$	671	$	368	$	7,455	$	5,370	$	782,016

Impaired Financing Receivables



	Impaired Loans
	With No Allowance				With Allowance
(Dollars in thousands)			Unpaid				Unpaid
	Recorded		Principal		Recorded		Principal		Related
December 31, 2016	Investment		Balance		Investment		Balance		Allowance
Residential Real Estate 1-4 Family
First liens	$	956	$	1,030	$	-	$	-	$	-
Junior liens and lines of credit		85		93		-		-		-
Total		1,041		1,123		-		-		-
Residential real estate - construction		480		535		-		-		-
Commercial real estate		13,523		14,133		-		-		-
Commercial		23		35		-		-		-
Consumer		-		-		-		-		-
Total	$	15,067	$	15,826	$	-	$	-	$	-



December 31, 2015
Residential Real Estate 1-4 Family
First liens	$	1,523	$	1,725	$	-	$	-	$	-
Junior liens and lines of credit		105		133		-		-		-
Total		1,628		1,858		-		-		-
Residential real estate - construction		502		546		-		-		-
Commercial real estate		14,431		15,007		-		-		-
Commercial		267		330		9		10		9
Consumer		-		-		-		-		-
Total	$	16,828	$	17,741	$	9	$	10	$	9


	Twelve Months Ended				Twelve Months Ended				Twelve Months Ended
	December 31, 2016				December 31, 2015				December 31, 2014
	Average		Interest		Average		Interest		Average		Interest
(Dollars in thousands)	Recorded		Income		Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized		Investment		Recognized
Residential Real Estate 1-4 Family
First liens	$	1,194	$	38	$	1,531	$	13	$	2,619	$	4
Junior liens and lines of credit		93		1		105		-		136		-
Total		1,287		39		1,636		13		2,755		4
Residential real estate - construction		492		4		505		-		686		-
Commercial real estate		17,806		589		14,509		122		23,801		118
Commercial		32		-		278		-		1,890		-
Consumer		-		-		-		-		-		-
Total	$	19,617	$	632	$	16,928	$	135	$	29,132	$	122

Troubled Debt Restructuring Loans



								Trouble Debt
								Restructurings
								That Have Defaulted on
								Modified Terms in the
(Dollars in thousands)	Troubled Debt Restructurings							Last Twelve Months
	Number of	Recorded						Number of	Recorded
	Contracts	Investment			Performing*		Nonperforming*	Contracts	Investment
December 31, 2016
Residential real estate - construction	1	$	480	$	480	$	-	-	$	-
Residential real estate	5		875		724		151	1		151
Commercial real estate	11		12,064		10,814		1,250	1		1,250
Total	17	$	13,419	$	12,018	$	1,401	2	$	1,401



December 31, 2015
Residential real estate - construction	1	$	502	$	502	$	-	-	$	-
Residential real estate	4		654		503		151	-		-
Commercial	10		12,125		12,125		-	-		-
Total	15	$	13,281	$	13,130	$	151	-	$	-

*The performing status is determined by the loan’s compliance with the modified terms.

The following table reports new TDR loans made during 2016, concession granted and the recorded investment as of December 31, 2016.



(Dollars in thousands)	New During Period
	Number of	Pre-TDR		After-TDR		Recorded
Twelve Months Ended December 31, 2016	Contracts	Modification		Modification		Investment		Concession
Commercial real estate	1	$	525	$	525	$	513	multiple
Residential real estate	1		238		238		237	maturity
Total	2	$	763	$	763	$	750

Allowance For Loan Losses, By Loan Segment

The following table shows, by loan class, the activity in the Allowance for Loan Loss (ALL), for the years ended December 31, 2016, 2015 and 2014.



	Residential Real Estate 1-4 Family
			Junior Liens
	First		& Lines				Commercial
(Dollars in thousands)	Liens		of Credit		Construction		Real Estate		Commercial		Consumer		Unallocated		Total

ALL at December 31, 2013	$	913	$	228	$	276	$	5,196	$	2,099	$	138	$	852	$	9,702
Charge-offs		(291)		-		(41)		(408)		(644)		(189)		-		(1,573)
Recoveries		21		-		-		50		65		82		-		218
Provision		351		43		(21)		140		(5)		96		160		764
ALL at December 31, 2014	$	994	$	271	$	214	$	4,978	$	1,515	$	127	$	1,012	$	9,111

ALL at December 31, 2014	$	994	$	271	$	214	$	4,978	$	1,515	$	127	$	1,012	$	9,111
Charge-offs		(43)		(39)		(21)		-		(270)		(198)		-		(571)
Recoveries		7		-		18		14		148		74		-		261
Provision		31		76		(17)		657		126		99		313		1,285
ALL at December 31, 2015	$	989	$	308	$	194	$	5,649	$	1,519	$	102	$	1,325	$	10,086

ALL at December 31, 2015	$	989	$	308	$	194	$	5,649	$	1,519	$	102	$	1,325	$	10,086
Charge-offs		(49)		-		(41)		(2,751)		(74)		(167)		-		(3,082)
Recoveries		35		-		-		19		167		75		-		296
Provision		130		15		71		3,192		281		90		(4)		3,775
ALL at December 31, 2016	$	1,105	$	323	$	224	$	6,109	$	1,893	$	100	$	1,321	$	11,075

The following table shows, by loan class, the loans that were evaluated for the Allowance for Loan Loss (ALL) under a specific reserve (individually) and those that were evaluated under a general reserve (collectively), and the amount of the allowance established in each category as of December 31, 2016 and 2015.



	Residential Real Estate 1-4 Family
			Junior Liens
	First		& Lines				Commercial
(Dollars in thousands)	Liens		of Credit		Construction		Real Estate		Commercial		Consumer		Unallocated		Total

December 31, 2016
Loans evaluated for ALL:
Individually	$	628	$	52	$	480	$	13,523	$	-	$	-	$	-	$	14,683
Collectively		167,942		50,161		8,495		377,061		270,826		4,705		-		879,190
Total	$	168,570	$	50,213	$	8,975	$	390,584	$	270,826	$	4,705	$	-	$	893,873

ALL established for loans evaluated:
Individually	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Collectively		1,105		323		224		6,109		1,893		100		1,321		11,075
ALL at December 31, 2016	$	1,105	$	323	$	224	$	6,109	$	1,893	$	100	$	1,321	$	11,075

December 31, 2015
Loans evaluated for ALL:
Individually	$	930	$	51	$	502	$	14,309	$	230	$	-	$	-	$	16,022
Collectively		160,548		50,862		7,386		326,386		215,712		5,100		-		765,994
Total	$	161,478	$	50,913	$	7,888	$	340,695	$	215,942	$	5,100	$	-	$	782,016

ALL established for loans evaluated:
Individually	$	-	$	-	$	-	$	-	$	9	$	-	$	-	$	9
Collectively		989		308		194		5,649		1,510		102		1,325		10,077
ALL at December 31, 2015	$	989	$	308	$	194	$	5,649	$	1,519	$	102	$	1,325	$	10,086