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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Financing Receivable Credit Quality Indicators [Table Text Block]
The following table presents the classes of the loan portfolio summarized by risk rating as of December 31, 2016 and 2015:
 
 
 
Commercial and
 
 
 
(Dollars in thousands)
 
Industrial
 
Commercial Real Estate
 
 
 
2016
 
2015
 
2016
 
2015
 
Grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
1-6   Pass
 
$
78,319
 
$
80,730
 
$
243,023
 
$
242,546
 
7      Special Mention
 
 
4,425
 
 
4,194
 
 
6,224
 
 
3,890
 
8      Substandard
 
 
684
 
 
 
 
13,817
 
 
12,238
 
9      Doubtful
 
 
 
 
 
 
 
 
 
Add (deduct):  Unearned discount and
 
 
 
 
 
 
 
 
 
Net deferred loan fees and costs
 
 
145
 
 
150
 
 
455
 
 
344
 
Total loans
 
$
83,573
 
$
85,074
 
$
263,519
 
$
259,018
 
 
 
 
Residential Real Estate
 
 
 
 
 
 
 
Including Home Equity
 
Consumer Loans
 
 
 
2016
 
2015
 
2016
 
2015
 
Grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
1-6   Pass
 
$
165,862
 
$
163,690
 
$
6,073
 
$
5,764
 
7      Special Mention
 
 
1,664
 
 
1,667
 
 
71
 
 
26
 
8      Substandard
 
 
1,523
 
 
1,245
 
 
9
 
 
4
 
9      Doubtful
 
 
 
 
 
 
 
 
 
Add (deduct):  Unearned discount and
 
 
(6)
 
 
(15)
 
 
 
 
 
Net deferred loan fees and costs
 
 
(8)
 
 
41
 
 
102
 
 
96
 
Total loans
 
$
169,035
 
$
166,628
 
$
6,255
 
$
5,890
 
 
 
 
Total Loans
 
 
 
2016
 
2015
 
Grade:
 
 
 
 
 
 
 
1-6   Pass
 
$
493,277
 
$
492,730
 
7      Special Mention
 
 
12,384
 
 
9,777
 
8      Substandard
 
 
16,033
 
 
13,487
 
9      Doubtful
 
 
 
 
 
Add (deduct):  Unearned discount and
 
 
(6)
 
 
(15)
 
Net deferred loan fees and costs
 
 
694
 
 
631
 
Total loans
 
$
522,382
 
$
516,610
 
Allowance for Credit Losses on Financing Receivables [Table Text Block]
The activity in the allowance for loan losses, by loan class, is summarized below for the years indicated.
 
(Dollars in thousands)
 
Commercial
 
Commercial
 
Residential
 
 
 
 
 
 
 
 
 
and Industrial
 
Real Estate
 
Real Estate
 
Consumer
 
Unallocated
 
Total
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
725
 
$
3,983
 
$
1,777
 
$
96
 
$
158
 
$
6,739
 
Charge-offs
 
 
(195)
 
 
(1,200)
 
 
(61)
 
 
(38)
 
 
 
 
(1,494)
 
Recoveries
 
 
9
 
 
 
 
12
 
 
8
 
 
 
 
29
 
Provision
 
 
297
 
 
1,638
 
 
49
 
 
29
 
 
70
 
 
2,083
 
Ending Balance
 
$
836
 
$
4,421
 
$
1,777
 
$
95
 
$
228
 
$
7,357
 
Ending balance: individually evaluated for impairment
 
$
 
$
200
 
$
19
 
$
 
$
 
$
219
 
Ending balance: collectively evaluated for impairment
 
$
836
 
$
4,221
 
$
1,758
 
$
95
 
$
228
 
$
7,138
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans Receivable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
83,573
 
$
263,519
 
$
169,035
 
$
6,255
 
$
 
$
522,382
 
Ending balance: individually evaluated for impairment
 
$
416
 
$
12,873
 
$
1,008
 
$
 
$
 
$
14,297
 
Ending balance: collectively evaluated for impairment
 
$
83,157
 
$
250,646
 
$
168,027
 
$
6,255
 
$
 
$
508,085
 
 
(Dollars in thousands)
 
Commercial
 
Commercial
 
Residential
 
 
 
 
 
 
 
 
 
and Industrial
 
Real Estate
 
Real Estate
 
Consumer
 
Unallocated
 
Total
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
542
 
$
3,176
 
$
1,928
 
$
107
 
$
637
 
$
6,390
 
Charge-offs
 
 
(2)
 
 
(1,759)
 
 
(210)
 
 
(45)
 
 
 
 
(2,016)
 
Recoveries
 
 
22
 
 
59
 
 
1
 
 
6
 
 
 
 
88
 
Provision
 
 
163
 
 
2,507
 
 
58
 
 
28
 
 
(479)
 
 
2,277
 
Ending Balance
 
$
725
 
$
3,983
 
$
1,777
 
$
96
 
$
158
 
$
6,739
 
Ending balance: individually evaluated for impairment
 
$
 
$
309
 
$
31
 
$
 
$
 
$
340
 
Ending balance: collectively evaluated for impairment
 
$
725
 
$
3,674
 
$
1,746
 
$
96
 
$
158
 
$
6,399
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans Receivable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
85,074
 
$
259,018
 
$
166,628
 
$
5,890
 
$
 
$
516,610
 
Ending balance: individually evaluated for impairment
 
$
399
 
$
12,057
 
$
911
 
$
 
$
 
$
13,367
 
Ending balance: collectively evaluated for impairment
 
$
84,675
 
$
246,961
 
$
165,717
 
$
5,890
 
$
 
$
503,243
 
 
(Dollars in thousands)
 
Commercial
 
Commercial
 
Residential
 
 
 
 
 
 
 
 
 
and Industrial
 
Real Estate
 
Real Estate
 
Consumer
 
Unallocated
 
Total
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
776
 
$
3,320
 
$
1,565
 
$
53
 
$
805
 
$
6,519
 
Charge-offs
 
 
(107)
 
 
(328)
 
 
(209)
 
 
(47)
 
 
 
 
(691)
 
Recoveries
 
 
31
 
 
81
 
 
14
 
 
3
 
 
 
 
129
 
Provision
 
 
(158)
 
 
103
 
 
558
 
 
98
 
 
(168)
 
 
433
 
Ending Balance
 
$
542
 
$
3,176
 
$
1,928
 
$
107
 
$
637
 
$
6,390
 
Ending balance: individually evaluated for impairment
 
$
 
$
38
 
$
81
 
$
 
$
 
$
119
 
Ending balance: collectively evaluated for impairment
 
$
542
 
$
3,138
 
$
1,847
 
$
107
 
$
637
 
$
6,271
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans Receivable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
64,656
 
$
253,922
 
$
163,553
 
$
5,330
 
$
 
$
487,461
 
Ending balance: individually evaluated for impairment
 
$
399
 
$
5,350
 
$
1,291
 
$
4
 
$
 
$
7,044
 
Ending balance: collectively evaluated for impairment
 
$
64,257
 
$
248,572
 
$
162,262
 
$
5,326
 
$
 
$
480,417
 
Troubled Debt Restructurings on Financing Receivables [Table Text Block]
The following table presents the unpaid balance of TDRs at the dates indicated:
 
(Dollars in thousands)
 
 
 
 
 
 
 
December 31,
 
December 31,
 
 
 
2016
 
2015
 
Non-accrual TDRs
 
$
267
 
$
477
 
Accruing TDRs
 
 
11,362
 
 
10,619
 
Total
 
$
11,629
 
$
11,096
 
Troubled Debt Restructurings On Financing Receivables By Type [Table Text Block]
The following table presents information regarding the loan modifications categorized as TDRs during the years ended December 31, 2016, 2015, and 2014:
 
(Dollars in thousands)
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
Pre-Modification
 
Post-Modification
 
Year-End
 
 
 
Number
 
Outstanding Recorded
 
Outstanding Recorded
 
Recorded
 
 
 
of Contracts
 
Investment
 
Investment
 
Investment
 
Commercial and Industrial
 
 
4
 
$
86
 
$
86
 
$
21
 
Commercial Real Estate
 
 
5
 
 
2,316
 
 
2,316
 
 
2,001
 
Consumer
 
 
 
 
 
 
 
 
 
Total
 
 
9
 
$
2,402
 
$
2,402
 
$
2,022
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
Pre-Modification
 
Post-Modification
 
Year-End
 
 
 
Number
 
Outstanding Recorded
 
Outstanding Recorded
 
Recorded
 
 
 
of Contracts
 
Investment
 
Investment
 
Investment
 
Commercial and Industrial
 
 
1
 
$
23
 
$
23
 
$
20
 
Commercial Real Estate
 
 
7
 
 
8,612
 
 
8,744
 
 
8,727
 
Consumer
 
 
 
 
 
 
 
 
 
Total
 
 
8
 
$
8,635
 
$
8,767
 
$
8,747
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
Pre-Modification
 
Post-Modification
 
Year-End
 
 
 
Number
 
Outstanding Recorded
 
Outstanding Recorded
 
Recorded
 
 
 
of Contracts
 
Investment
 
Investment
 
Investment
 
Commercial and Industrial
 
 
3
 
$
397
 
$
397
 
$
394
 
Commercial Real Estate
 
 
10
 
 
1,389
 
 
1,476
 
 
1,066
 
Consumer
 
 
1
 
 
7
 
 
7
 
 
4
 
Total
 
 
14
 
$
1,793
 
$
1,880
 
$
1,464
 
Loan Modifications By Type [Table Text Block]
The following table provides detail regarding the types of loan modifications made for loans categorized as TDRs during the years ended December 31, 2016, 2015, and 2014 with the total number of each type of modification performed.
 
 
 
Year Ended December 31, 2016
 
Year Ended December 31, 2015
 
 
 
Rate
 
Term
 
Payment
 
Number
 
Rate
 
Term
 
Payment
 
Number
 
 
 
Modification
 
Modification
 
Modification
 
Modified
 
Modification
 
Modification
 
Modification
 
Modified
 
Commercial and Industrial
 
 
 
 
3
 
 
1
 
 
4
 
 
 
 
1
 
 
 
 
1
 
Commercial Real Estate
 
 
 
 
3
 
 
2
 
 
5
 
 
 
 
4
 
 
3
 
 
7
 
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
6
 
 
3
 
 
9
 
 
 
 
5
 
 
3
 
 
8
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
Rate
 
 
Term
 
 
Payment
 
 
Number
 
 
 
 
Modification
 
 
Modification
 
 
Modification
 
 
Modified
 
Commercial and Industrial
 
 
 
 
 
 
3
 
 
3
 
Commercial Real Estate
 
 
1
 
 
4
 
 
5
 
 
10
 
Consumer
 
 
 
 
 
 
1
 
 
1
 
Total
 
 
1
 
 
4
 
 
9
 
 
14
 
Impaired Financing Receivables [Table Text Block]
The recorded investment, unpaid principal balance, and the related allowance of the Corporation’s impaired loans are summarized below for the periods ended December 31, 2016 and 2015.
 
(Dollars in thousands)
 
December 31, 2016
 
December 31, 2015
 
 
 
 
 
Unpaid
 
 
 
 
 
Unpaid
 
 
 
 
 
Recorded
 
Principal
 
Related
 
Recorded
 
Principal
 
Related
 
 
 
Investment
 
Balance
 
Allowance
 
Investment
 
Balance
 
Allowance
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial
 
$
416
 
$
416
 
$
 
$
399
 
$
399
 
$
 
Commercial Real Estate
 
 
11,905
 
 
14,352
 
 
 
 
7,853
 
 
9,524
 
 
 
Residential Real Estate
 
 
584
 
 
745
 
 
 
 
475
 
 
657
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Real Estate
 
 
968
 
 
2,383
 
 
200
 
 
4,204
 
 
4,204
 
 
309
 
Residential Real Estate
 
 
424
 
 
424
 
 
19
 
 
436
 
 
436
 
 
31
 
Total
 
$
14,297
 
$
18,320
 
$
219
 
$
13,367
 
$
15,220
 
$
340
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total consists of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial
 
$
416
 
$
416
 
$
 
$
399
 
$
399
 
$
 
Commercial Real Estate
 
$
12,873
 
$
16,735
 
$
200
 
$
12,057
 
$
13,728
 
$
309
 
Residential Real Estate
 
$
1,008
 
$
1,169
 
$
19
 
$
911
 
$
1,093
 
$
31
 
 
The average recorded investment and interest income recognized for the Corporation’s impaired loans are summarized below for the years ended December 31, 2016, 2015 and 2014.
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Year Ended
 
For the Year Ended
 
For the Year Ended
 
 
 
December 31, 2016
 
December 31, 2015
 
December 31, 2014
 
 
 
Average
 
Interest
 
Average
 
Interest
 
Average
 
Interest
 
 
 
Recorded
 
Income
 
Recorded
 
Income
 
Recorded
 
Income
 
 
 
Investment
 
Recognized
 
Investment
 
Recognized
 
Investment
 
Recognized
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial
 
$
435
 
$
17
 
$
404
 
$
16
 
$
228
 
$
8
 
Commercial Real Estate
 
 
11,434
 
 
528
 
 
5,971
 
 
280
 
 
4,409
 
 
107
 
Residential Real Estate
 
 
426
 
 
7
 
 
421
 
 
3
 
 
650
 
 
2
 
Consumer
 
 
 
 
 
 
2
 
 
 
 
5
 
 
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Real Estate
 
 
968
 
 
 
 
3,377
 
 
267
 
 
292
 
 
21
 
Residential Real Estate
 
 
427
 
 
 
 
443
 
 
 
 
313
 
 
4
 
Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
13,690
 
$
552
 
$
10,618
 
$
566
 
$
5,897
 
$
143
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total consists of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial
 
$
435
 
$
17
 
$
404
 
$
16
 
$
228
 
$
8
 
Commercial Real Estate
 
$
12,402
 
$
528
 
$
9,348
 
$
547
 
$
4,701
 
$
128
 
Residential Real Estate
 
$
853
 
$
7
 
$
864
 
$
3
 
$
963
 
$
6
 
Consumer
 
$
 
$
 
$
2
 
$
 
$
5
 
$
1
 
Schedule of Non-Performing Assets [Table Text Block]
Loans receivable on non-accrual status, foreclosed assets held for resale and loans past-due 90 days or more and still accruing interest, as of December 31, 2016 and 2015 were as follows:
 
(Dollars in thousands)
 
 
 
 
 
 
 
December 31,
 
December 31,
 
 
 
2016
 
2015
 
Commercial Real Estate
 
$
1,927
 
 
1,837
 
Residential Real Estate
 
 
1,008
 
 
911
 
Total non-accrual loans
 
 
2,935
 
 
2,748
 
Foreclosed assets held for resale
 
 
1,273
 
 
1,472
 
Loans past-due 90 days or more and still accruing interest
 
 
34
 
 
166
 
Total non-performing assets
 
$
4,242
 
$
4,386
 
Past Due Financing Receivables [Table Text Block]
The following tables present the classes of the loan portfolio summarized by the past-due status at December 31, 2016 and 2015:
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
90 Days
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Or Greater
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Past Due
 
 
 
 
 
 
 
90 Days
 
 
 
 
 
 
 
and Still
 
 
 
30-59 Days
 
60-89 Days
 
or Greater
 
Total
 
 
 
Total
 
Accruing
 
 
 
Past Due
 
Past Due
 
Past Due
 
Past Due
 
Current
 
Loans
 
Interest
 
December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial
 
$
130
 
$
 
$
 
$
130
 
$
83,443
 
$
83,573
 
$
 
Commercial Real Estate
 
 
1,019
 
 
273
 
 
1,927
 
 
3,219
 
 
260,300
 
 
263,519
 
 
 
Residential Real Estate
 
 
1,750
 
 
542
 
 
1,020
 
 
3,312
 
 
165,723
 
 
169,035
 
 
34
 
Consumer
 
 
28
 
 
8
 
 
 
 
36
 
 
6,219
 
 
6,255
 
 
 
Total
 
$
2,927
 
$
823
 
$
2,947
 
$
6,697
 
$
515,685
 
$
522,382
 
$
34
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
90 Days
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Or Greater
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Past Due
 
 
 
 
 
 
 
90 Days
 
 
 
 
 
 
 
and Still
 
 
 
30-59 Days
 
60-89 Days
 
or Greater
 
Total
 
 
 
Total
 
Accruing
 
 
 
Past Due
 
Past Due
 
Past Due
 
Past Due
 
Current
 
Loans
 
Interest
 
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial
 
$
34
 
$
 
$
 
$
34
 
$
85,040
 
$
85,074
 
$
 
Commercial Real Estate
 
 
316
 
 
3
 
 
1,484
 
 
1,803
 
 
257,215
 
 
259,018
 
 
 
Residential Real Estate
 
 
1,288
 
 
491
 
 
1,049
 
 
2,828
 
 
163,800
 
 
166,628
 
 
166
 
Consumer
 
 
20
 
 
 
 
 
 
20
 
 
5,870
 
 
5,890
 
 
 
Total
 
$
1,658
 
$
494
 
$
2,533
 
$
4,685
 
$
511,925
 
$
516,610
 
$
166