Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2015

Loans and Allowance For Loan Losses [Abstract]

Categories of loans include:

	September 30,		December 31,
	2015		2014
	(In thousands)

Commercial loans	$	61,721	$	52,286
Commercial real estate		163,222		158,314
Residential real estate		83,200		83,870
Installment loans		18,182		21,284

Total gross loans		326,325		315,754

Less allowance for loan losses		(2,727)		(2,400)

Total loans	$	323,598	$	313,354

Allowance for Loan Losses and Recorded Investment in Loans

Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Allowance for Loan Losses and Recorded Investment in Loans

As of and for the three and nine month period ended September 30, 2015

			Commercial
	Commercial		Real Estate		Residential		Installment		Unallocated		Total

(In thousands)
Allowance for loan losses:
Balance, July 1, 2015	$	234	$	771	$	172	$	276	$	1,244	$	2,697
Provision charged to expense		7		(28)		14		46		87		126
Losses charged off		––		—		(20)		(103)		––		(123)
Recoveries		—		4		7		16		––		27
Balance, September 30, 2015	$	241	$	747	$	173	$	235	$	1,331	$	2,727
Balance, January 1, 2015	$	254	$	1,116	$	92	$	147	$	791	$	2,400
Provision charged to expense		(39)		(380)		80		186		540		387
Losses charged off		—		—		(20)		(196)		––		(216)
Recoveries		26		11		21		98		––		156
Balance, September 30, 2015	$	241	$	747	$	173	$	235	$	1,331	$	2,727
Ending balance: individually evaluated for impairment	$	84	$	331	$	––	$	129	$	––	$	544
Ending balance: collectively evaluated for impairment	$	157	$	416	$	173	$	106	$	1,331	$	2,183

Loans:
Ending balance: individually evaluated for impairment	$	96	$	1,496	$	––	$	224	$	––	$	1,816
Ending balance: collectively evaluated for impairment	$	61,625	$	161,726	$	83,200	$	17,958	$	––	$	324,509

Allowance for Loan Losses and Recorded Investment in Loans

As of and for the three and nine month period ended September 30, 2014

			Commercial
	Commercial		Real Estate		Residential		Installment		Unallocated		Total
(In thousands)
Allowance for loan losses:
Balance, July 1, 2014	$	472	$	1,838	$	91	$	146	$	585	$	3,132
Provision charged to expense		24		(171)		47		93		232		225
Losses charged off		––		(205)		(48)		(107)		––		(360)
Recoveries		1		11		1		14		––		27
Balance, September 30, 2014	$	497	$	1,473	$	91	$	146	$	817	$	3,024
Balance, January 1, 2014	$	412	$	1,609	$	90	$	141	$	642	$	2,894
Provision charged to expense		107		45		116		214		175		657
Losses charged off		(25)		(205)		(119)		(285)		––		(634)
Recoveries		3		24		4		76		––		107
Balance, September 30, 2014	$	497	$	1,473	$	91	$	146	$	817	$	3,024
Ending balance: individually evaluated for impairment	$	354	$	989	$	––	$	––	$	––	$	1,343
Ending balance: collectively evaluated for impairment	$	143	$	484	$	91	$	146	$	817	$	1,681

Loans:
Ending balance: individually evaluated for impairment	$	437	$	5,441	$	––	$	––	$	––	$	5,878
Ending balance: collectively evaluated for impairment	$	46,494	$	153,760	$	83,761	$	22,851	$	––	$	306,866

Allowance for Loan Losses and Recorded Investment in Loans

As of December 31, 2014

			Commercial
	Commercial		Real Estate		Residential		Installment		Unallocated		Total
	(In thousands)
Allowance for loan losses:

Ending balance: individually evaluated for impairment	$	92	$	622	$	––	$	––	$	––	$	714
Ending balance: collectively evaluated for impairment	$	162	$	494	$	92	$	147	$	791	$	1,686

Loans:
Ending balance: individually evaluated for impairment	$	112	$	1,756	$	––	$	––	$	––	$	1,868
Ending balance: collectively evaluated for impairment	$	52,174	$	156,558	$	83,870	$	21,284	$	––	$	313,886

Portfolio Quality Indicators

The following tables show the portfolio quality indicators.

	September 30, 2015
			Commercial
Loan Class	Commercial		Real Estate		Residential		Installment		Total
	(In thousands)

Pass Grade	$	61,583	$	157,863	$	83,200	$	17,941	$	320,587
Special Mention		40		1,014		––		––		1,054
Substandard		98		4,345		––		241		4,684
Doubtful		––		––		––		––		––

	$	61,721	$	163,222	$	83,200	$	18,182	$	326,325

	December 31, 2014
			Commercial
Loan Class	Commercial		Real Estate		Residential		Installment		Total
	(In thousands)

Pass Grade	$	51,895	$	151,535	$	83,870	$	21,284	$	308,584
Special Mention		265		1,980		––		––		2,245
Substandard		126		4,799		––		––		4,925
Doubtful		––		––		––		––		––

	$	52,286	$	158,314	$	83,870	$	21,284	$	315,754

Loan Portfolio Aging Analysis

The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the past year to date period.

Loan Portfolio Aging Analysis

As of September 30, 2015

	30-59 Days		60-89 Days		Greater
	Past Due		Past Due		Than 90				Total Past
	and		and		Days and		Non		Due and				Total Loans
	Accruing		Accruing		Accruing		Accrual		Non Accrual		Current		Receivable
	(In thousands)
Commercial	$	200	$	––	$	––	$	29	$	229	$	61,492	$	61,721
Commercial real estate		137		40		131		404		712		162,510		163,222
Residential		1,068		79		––		869		2,016		81,184		83,200
Installment		172		30		––		247		449		17,733		18,182
Total	$	1,577	$	149	$	131	$	1,549	$	3,406	$	322,919	$	326,325

Loan Portfolio Aging Analysis

As of December 31, 2014

	30-59 Days		60-89 Days		Greater
	Past Due		Past Due		Than 90				Total Past
	and		and		Days and		Non		Due and				Total Loans
	Accruing		Accruing		Accruing		Accrual		Non Accrual		Current		Receivable
	(In thousands)
Commercial	$	—	$	––	$	—	$	46	$	46	$	52,240	$	52,286
Commercial real estate		394		––		127		247		768		157,546		158,314
Residential		292		17		—		658		967		82,903		83,870
Installment		70		11		—		7		88		21,196		21,284
Total	$	756	$	28	$	127	$	958	$	1,869	$	313,885	$	315,754

Impaired Loans

Impaired Loans

							For the three months ended				For the nine months ended
	As of September 30, 2015						September 30, 2015				September 30, 2015
			Unpaid				Average		Interest		Average		Interest
	Recorded		Principal		Specific		Investment in		Income		Investment in		Income
	Balance		Balance		Allowance		Impaired Loans		Recognized		Impaired Loans		Recognized
	(In thousands)
Loans without a specific valuation allowance:
Commercial	$	—	$	—	$	––	$	—	$	––	$	—	$	—
Commercial real estate		507		507		––		895		5		1,162		31
Residential		––		––		––		––		––		––		––
Installment		––		––		––		––		––		––		––
		507		507		––		895		5		1,162		31
Loans with a specific valuation allowance:
Commercial		96		96		84		98		1		101		5
Commercial real estate		989		989		331		1,077		9		1,078		27
Residential		––		––		––		––		––		––		––
Installment		224		224		129		235		10		237		14
		1,309		1,309		544		1,410		20		1,416		46

Total:
Commercial	$	96	$	96	$	84	$	98	$	1	$	101	$	5
Commercial real estate	$	1,496	$	1,496	$	331	$	1,972	$	14	$	2,240	$	58
Residential	$	––	$	––	$	––	$	––	$	––	$	––	$	––
Installment	$	224	$	224	$	129	$	235	$	10	$	237	$	14

Impaired Loans

							For the three months ended				For the nine months ended
	As of December 31, 2014						September 30, 2014				September 30, 2014
			Unpaid				Average		Interest		Average		Interest
	Recorded		Principal		Specific		Investment in		Income		Investment in		Income
	Balance		Balance		Allowance		Impaired Loans		Recognized		Impaired Loans		Recognized
	(In thousands)
Loans without a specific valuation allowance:
Commercial	$	7	$	7	$	––	$	9	$	––	$	12	$	1
Commercial real estate		794		1,144		––		1,786		59		1,809		73
Residential		––		––		––		––		––		––		––
Installment		––		––		––		––		––		––		––
		801		1,151		––		1,795		59		1,821		74
Loans with a specific valuation allowance:
Commercial		105		105		92		407		19		417		23
Commercial real estate		962		962		622		3,751		76		3,823		197
Residential		––		––		––		––		––		––		––
Installment		––		––		––		––		––		––		––
		1,067		1,067		714		4,158		95		4,240		220

Total:
Commercial	$	112	$	112	$	92	$	416	$	19	$	429	$	24
Commercial real estate	$	1,756	$	2,106	$	622	$	5,537	$	135	$	5,632	$	270
Residential	$	––	$	––	$	––	$	––	$	––	$	––	$	––
Installment	$	––	$	––	$	––	$	––	$	––	$	––	$	––

Troubled Debt Restructurings on Financing Receivables

In conjunction with the restructuring there were no amounts charged-off.

	Three Months ended September 30, 2015
			Pre- Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment
	(In thousands)

Commercial		2	$	40	$	40
Commercial real estate		1		62		62
Residential		––		––		––
Installment		––		––		––

Three Months ended September 30, 2015

Interest

Total

Only

Term

Combination

Modification

(In thousands)

Commercial

––

Commercial real estate

––

Residential

––

Consumer

––

		Nine Months ended September 30, 2015
				Pre- Modification		Post-Modification
				Outstanding		Outstanding
		Number of		Recorded		Recorded
		Contracts		Investment		Investment
	(In thousands)

Commercial			2	$	40	$	40
Commercial real estate			1		62		62
Residential			––		––		––
Installment			––		––		––

Nine Months Ended September 30, 2015

Interest

Total

Only

Term

Combination

Modification

(In thousands)

Commercial

––

Commercial real estate

––

Residential

––

Consumer

––

	Three Months ended September 30, 2014
			Pre- Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment
	(In thousands)

Commercial		––	$	––	$	––
Commercial real estate		––		––		––
Residential		––		––		––
Installment		––		––		––

Three Months Ended September 30, 2014

Interest

Total

Only

Term

Combination

Modification

(In thousands)

Commercial

––

Commercial real estate

––

Residential

––

Consumer

––

	Nine Months ended September 30, 2014
			Pre- Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment
	(In thousands)

Commercial		––	$	––	$	––
Commercial real estate		2		155		68
Residential		––		––		––
Installment		––		––		––

Nine Months Ended September 30, 2014

Interest

Total

Only

Term

Combination

Modification

(In thousands)

Commercial

––

Commercial real estate

––

Residential

––

Consumer

––