Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2015

Loans and Allowance For Loan Losses [Abstract]

Categories of loans at December 31, include:

	2015		2014
	(In thousands)

Commercial loans	$	67,247	$	52,286
Commercial real estate		163,459		158,314
Residential real estate		81,498		83,870
Installment loans		17,459		21,284

Total gross loans		329,663		315,754

Less allowance for loan losses		(2,437)		(2,400)

Total loans	$	327,226	$	313,354

Allowance for Loan Losses and Recorded Investment in Loans

The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2015 and 2014:

	2015
			Commercial
	Commercial		Real Estate		Residential		Installment		Unallocated		Total
	(In thousands)
Allowance for loan losses:
Balance, beginning of year	$	254	$	1,116	$	92	$	147	$	791	$	2,400
Provision charged to expense		20		(382)		78		255		582		553
Losses charged off		(117)		(152)		(42)		(400)		––		(711)
Recoveries		27		15		42		111		––		195
Balance, end of year	$	184	$	597	$	170	$	113	$	1,373	$	2,437
Ending balance: individually evaluated for impairment	$	9	$	172	$	––	$	––	$	––	$	181
Ending balance: collectively evaluated for impairment	$	175	$	425	$	170	$	113	$	1,373	$	2,256

Loans:
Ending balance: individually evaluated for impairment	$	57	$	1,273	$	––	$	80	$	––	$	1,410
Ending balance: collectively evaluated for impairment	$	67,190	$	162,186	$	81,498	$	17,379	$	––	$	328,253

	2014
			Commercial
	Commercial		Real Estate		Residential		Installment		Unallocated		Total
	(In thousands)
Allowance for loan losses:
Balance, beginning of year	$	412	$	1,609	$	90	$	141	$	642	$	2,894
Provision charged to expense		175		27		229		308		149		888
Losses charged off		(337)		(555)		(235)		(388)		––		(1,515)
Recoveries		4		35		8		86		––		133
Balance, end of year	$	254	$	1,116	$	92	$	147	$	791	$	2,400
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 table shows the portfolio quality indicators as of December 31, 2015:

			Commercial
Loan Class	Commercial		Real Estate		Residential		Installment		Total
	(In thousands)

Pass Grade	$	67,150	$	158,362	$	81,498	$	17,363	$	324,373
Special Mention		39		996		––		––		1,035
Substandard		58		4,101		––		96		4,255
Doubtful		––		––		––		––		––

	$	67,247	$	163,459	$	81,498	$	17,459	$	329,663

The following table shows the portfolio quality indicators as of 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 following table shows the loan portfolio aging analysis of the recorded investment in loans as of December 31, 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	$	141	$	––	$	––	$	63	$	204	$	67,043	$	67,247
Commercial real estate		319		––		132		250		701		162,758		163,459
Residential		737		500		––		599		1,836		79,662		81,498
Installment		220		71		––		132		423		17,036		17,459
Total	$	1,417	$	571	$	132	$	1,044	$	3,164	$	326,499	$	329,663

The following table shows the loan portfolio aging analysis of the recorded investment in loans 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

The following table presents impaired loans for the year ended December 31, 2015:

							Average
			Unpaid				Investment in		Interest
	Recorded		Principal		Specific		Impaired		Income
	Balance		Balance		Allowance		Loans		Recognized
	(In thousands)
Loans without a specific valuation allowance:
Commercial	$	44	$	74	$	––	$	74	$	4
Commercial real estate		464		464		––		857		35
Installment		80		203		––		213		14

		588		538		––		1,144		53
Loans with a specific valuation allowance:
Commercial		13		49		9		49		5
Commercial real estate		809		961		172		1,010		36

		822		1,010		181		1,059		41

Total:
Commercial	$	57	$	117	$	9	$	123	$	9
Commercial Real Estate	$	1,273	$	1,425	$	172	$	1,867	$	71
Installment	$	80	$	203	$	—	$	213	$	14

The following table presents impaired loans for the year ended December 31, 2014:

							Average
			Unpaid				Investment in		Interest
	Recorded		Principal		Specific		Impaired		Income
	Balance		Balance		Allowance		Loans		Recognized
	(In thousands)
Loans without a specific valuation allowance:
Commercial	$	7	$	7	$	––	$	11	$	1
Commercial real estate		794		1,144		––		813		75

		801		1,151		––		824		76
Loans with a specific valuation allowance:
Commercial		105		105		92		109		8
Commercial real estate		962		962		622		1,477		182

		1,067		1,067		714		1,586		190

Total:
Commercial	$	112	$	112	$	92	$	120	$	9
Commercial Real Estate	$	1,756	$	2,106	$	622	$	2,290	$	257

Troubled Debt Restructurings on Financing Receivables

The following tables present information regarding troubled debt restructurings by class and by type of modification for the years ended December 31, 2015 and 2014:

	Year Ended December 31, 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

Year Ended December 31, 2015

Interest

Total

Only

Term

Combination

Modification

(In thousands)

Commercial

––

Commercial real estate

––

	Year Ended December 31, 2014
			Pre-Modification		Post-Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
	Contracts		Investment		Investment
			(In thousands)

Commercial real estate		2	$	155	$	155

	Year Ended December 31, 2014
	Interest						Total
	Only		Term		Combination		Modification
			(In thousands)

Commercial real estate	$	—	$	155	$	—	$	155