XML 43 R30.htm IDEA: XBRL DOCUMENT v3.3.1.900
Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2015
Receivables [Abstract]  
Composition of the Loan Portfolio

The following represents the composition of the loan portfolio for the period ending:

 

 

(Amounts in thousands)

 

 

December 31,

 

 

2015

 

 

2014

 

 

Balance

 

 

%

 

 

Balance

 

 

%

 

Commercial

$

84,613

 

 

 

21.5

 

 

$

72,330

 

 

 

20.1

 

Commercial real estate

 

237,137

 

 

 

60.1

 

 

 

223,536

 

 

 

62.1

 

Residential real estate

 

45,414

 

 

 

11.5

 

 

 

38,875

 

 

 

10.8

 

Consumer - home equity

 

23,334

 

 

 

5.9

 

 

 

21,328

 

 

 

5.9

 

Consumer - other

 

3,756

 

 

 

1.0

 

 

 

4,116

 

 

 

1.1

 

Total loans

$

394,254

 

 

 

 

 

 

$

360,185

 

 

 

 

 

 
Certain Qualitative Factors Considered in Measuring Risk Trends

These factors include, but are not limited to, the following:

 

Factor Considered:

  

Risk Trend:

Levels of and trends in charge-offs, classifications and non-accruals

  

Stable

Trends in volume and terms

  

Increasing

Changes in lending policies and procedures

  

Decreasing

Experience, depth and ability of management

  

Stable

Economic trends

  

Decreasing

Concentrations of credit

  

Increasing

 
Factors Analyzed and Applied to Loans Internally Graded with Higher Credit Risk

 

The following factors are analyzed and applied to loans internally graded with higher risk credit in addition to the above factors for non-classified loans:

 

Factor Considered:

  

Risk Trend:

Levels and trends in classification

  

Stable

Declining trends in financial performance

  

Stable

Structure and lack of performance measures

  

Stable

Migration between risk categories

 

Stable

 
Analysis of Changes in the Allowance for Loan Losses

The following is an analysis of changes in the allowance for loan losses for the periods ended:

 

 

(Amounts in thousands)

 

December 31, 2015

Commercial

 

 

Commercial real estate

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer - other

 

 

Total

 

Balance at beginning of period

$

2,064

 

 

$

2,754

 

 

$

229

 

 

$

60

 

 

$

95

 

 

 

5,202

 

Loan charge-offs

 

(470

)

 

 

(84

)

 

 

(45

)

 

 

—

 

 

 

(124

)

 

 

(723

)

Recoveries

 

134

 

 

 

10

 

 

 

37

 

 

 

17

 

 

 

62

 

 

 

260

 

Net loan recoveries (charge-offs)

 

(336

)

 

 

(74

)

 

 

(8

)

 

 

17

 

 

 

(62

)

 

 

(463

)

Provision charged to operations

 

249

 

 

 

246

 

 

 

(68

)

 

 

(25

)

 

 

53

 

 

 

455

 

Balance at end of period

$

1,977

 

 

$

2,926

 

 

$

153

 

 

$

52

 

 

$

86

 

 

$

5,194

 

 

 

(Amounts in thousands)

 

December 31, 2014

Commercial

 

 

Commercial real estate

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer - other

 

 

Total

 

Balance at beginning of period

$

593

 

 

$

2,638

 

 

$

356

 

 

$

88

 

 

$

89

 

 

$

3,764

 

Loan charge-offs

 

(123

)

 

 

(186

)

 

 

(93

)

 

 

(48

)

 

 

(144

)

 

 

(594

)

Recoveries

 

274

 

 

 

3

 

 

 

16

 

 

 

24

 

 

 

77

 

 

 

394

 

Net loan recoveries (charge-offs)

 

151

 

 

 

(183

)

 

 

(77

)

 

 

(24

)

 

 

(67

)

 

 

(200

)

Provision charged to operations

 

1,320

 

 

 

299

 

 

 

(50

)

 

 

(4

)

 

 

73

 

 

 

1,638

 

Balance at end of period

$

2,064

 

 

$

2,754

 

 

$

229

 

 

$

60

 

 

$

95

 

 

$

5,202

 

 

 

(Amounts in thousands)

 

December 31, 2013

Commercial

 

 

Commercial real estate

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer - other

 

 

Total

 

Balance at beginning of period

$

639

 

 

$

2,616

 

 

$

343

 

 

$

123

 

 

$

104

 

 

$

3,825

 

Loan charge-offs

 

(1

)

 

 

(782

)

 

 

(81

)

 

 

(12

)

 

 

(146

)

 

 

(1,022

)

Recoveries

 

167

 

 

 

11

 

 

 

26

 

 

 

18

 

 

 

89

 

 

 

311

 

Net loan recoveries (charge-offs)

 

166

 

 

 

(771

)

 

 

(55

)

 

 

6

 

 

 

(57

)

 

 

(711

)

Provision charged to operations

 

(212

)

 

 

793

 

 

 

68

 

 

 

(41

)

 

 

42

 

 

 

650

 

Balance at end of period

$

593

 

 

$

2,638

 

 

$

356

 

 

$

88

 

 

$

89

 

 

$

3,764

 

 
Allowance for Loan Losses and the Recorded Investment in Loans

The following tables present a full breakdown by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the periods ended December 31, 2015 and 2014:

 

 

(Amounts in thousands)

 

December 31, 2015

Commercial

 

 

Commercial real estate

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer - other

 

 

Total

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending allowance balance attributable to loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

834

 

 

$

178

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,012

 

Collectively evaluated for impairment

 

1,143

 

 

 

2,748

 

 

 

153

 

 

 

52

 

 

 

86

 

 

 

4,182

 

Total ending allowance balance

$

1,977

 

 

$

2,926

 

 

$

153

 

 

$

52

 

 

$

86

 

 

$

5,194

 

Loan Portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

1,347

 

 

$

8,465

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

9,812

 

Collectively evaluated for impairment

 

83,266

 

 

 

228,672

 

 

 

45,414

 

 

 

23,334

 

 

 

3,756

 

 

 

384,442

 

Total ending loan balance

$

84,613

 

 

$

237,137

 

 

$

45,414

 

 

$

23,334

 

 

$

3,756

 

 

$

394,254

 

 

 

(Amounts in thousands)

 

December 31, 2014

Commercial

 

 

Commercial real estate

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer - other

 

 

Total

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending allowance balance attributable to loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

1,316

 

 

$

148

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,464

 

Collectively evaluated for impairment

 

748

 

 

 

2,606

 

 

 

229

 

 

 

60

 

 

 

95

 

 

 

3,738

 

Total ending allowance balance

$

2,064

 

 

$

2,754

 

 

$

229

 

 

$

60

 

 

$

95

 

 

$

5,202

 

Loan Portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment

$

2,023

 

 

$

5,729

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

7,752

 

Collectively evaluated for impairment

 

70,307

 

 

 

217,807

 

 

 

38,875

 

 

 

21,328

 

 

 

4,116

 

 

 

352,433

 

Total ending loan balance

$

72,330

 

 

$

223,536

 

 

$

38,875

 

 

$

21,328

 

 

$

4,116

 

 

$

360,185

 

 
Summary of Credit Quality Indicators by Internally Assigned Grade

The following is a summary of credit quality indicators by internally assigned grade as of December 31, 2015 and 2014.

 

 

(Amounts in thousands)

 

 

Commercial

 

 

Commercial real estate

 

December 31, 2015

 

 

 

 

 

 

 

Pass

$

77,095

 

 

$

219,958

 

Special Mention

 

4,216

 

 

 

7,707

 

Substandard

 

3,302

 

 

 

9,472

 

Doubtful

 

—

 

 

 

—

 

Ending Balance

$

84,613

 

 

$

237,137

 

 

 

(Amounts in thousands)

 

 

Commercial

 

 

Commercial real estate

 

December 31, 2014

 

 

 

 

 

 

 

Pass

$

65,339

 

 

$

205,890

 

Special Mention

 

4,963

 

 

 

10,209

 

Substandard

 

2,028

 

 

 

7,437

 

Doubtful

 

—

 

 

 

—

 

Ending Balance

$

72,330

 

 

$

223,536

 

 
Summary of Consumer Credit Exposure

The following is a summary of consumer credit exposure as of December 31, 2015 and 2014.

 

 

(Amounts in thousands)

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer- other

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

Performing

$

44,162

 

 

$

23,072

 

 

$

3,756

 

Nonperforming

 

1,252

 

 

 

262

 

 

 

—

 

Total

$

45,414

 

 

$

23,334

 

 

$

3,756

 

 

 

(Amounts in thousands)

 

 

Residential real estate

 

 

Consumer - home equity

 

 

Consumer- other

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

Performing

$

37,544

 

 

$

21,179

 

 

$

4,110

 

Nonperforming

 

1,331

 

 

 

149

 

 

 

6

 

Total

$

38,875

 

 

$

21,328

 

 

$

4,116

 

 
Summary of Classes of Loans on Non-Accrual Status

The following is a summary of classes of loans on non-accrual status as of:

 

 

(Amounts in thousands)

 

 

December 31,

 

 

2015

 

 

2014

 

Commercial

$

1,196

 

 

$

1,824

 

Commercial real estate

 

2,176

 

 

 

2,247

 

Residential real estate

 

1,252

 

 

 

1,331

 

Consumer:

 

 

 

 

 

 

 

Consumer - home equity

 

262

 

 

 

149

 

Consumer - other

 

—

 

 

 

6

 

Total

$

4,886

 

 

$

5,557

 

 
Information Related to Loans Modified in a TDR

The following presents, by class, information related to loans modified in a TDR during the periods ended:

 

 

(Dollar amounts in thousands)

 

 

December 31, 2015

 

 

Number of contracts

 

 

Pre-modification recorded investment

 

 

Post-modification recorded investment

 

 

Increase in the allowance

 

Commercial real estate

 

2

 

 

$

3,154

 

 

$

3,154

 

 

$

—

 

Subsequently defaulted

 

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

There were no loans modified as TDRs during the year ended December 31, 2014.

 

 

(Dollar amounts in thousands)

 

 

December 31, 2013

 

 

Number of contracts

 

 

Pre-modification recorded investment

 

 

Post-modification recorded investment

 

 

Increase in the allowance

 

Commercial

 

5

 

 

$

438

 

 

$

438

 

 

$

20

 

Commercial real estate

 

7

 

 

 

2,348

 

 

 

2,348

 

 

 

—

 

Total restructured loans

 

12

 

 

$

2,786

 

 

$

2,786

 

 

$

20

 

Subsequently defaulted

 

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 
Aging Analysis of the Recorded Investment of Past Due Loans

The following is an aging analysis of the recorded investment of past due loans as of the periods ended December 31, 2015 and 2014:

 

 

(Amounts in thousands)

 

 

30-59 Days Past Due

 

 

60-89 Days Past Due

 

 

90 Days Or Greater

 

 

Total Past Due

 

 

Current

 

 

Total Loans

 

 

Recorded Investment > 90 Days and Accruing

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

178

 

 

$

—

 

 

$

1,196

 

 

$

1,374

 

 

$

83,239

 

 

$

84,613

 

 

$

—

 

Commercial real estate

 

248

 

 

 

1,480

 

 

 

2,055

 

 

 

3,783

 

 

 

233,354

 

 

 

237,137

 

 

 

—

 

Residential real estate

 

163

 

 

 

131

 

 

 

1,240

 

 

 

1,534

 

 

 

43,880

 

 

 

45,414

 

 

 

—

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer - home equity

 

29

 

 

 

117

 

 

 

262

 

 

 

408

 

 

 

22,926

 

 

 

23,334

 

 

 

—

 

Consumer - other

 

10

 

 

 

—

 

 

 

—

 

 

 

10

 

 

 

3,746

 

 

 

3,756

 

 

 

—

 

Total

$

628

 

 

$

1,728

 

 

$

4,753

 

 

$

7,109

 

 

$

387,145

 

 

$

394,254

 

 

$

—

 

 

 

(Amounts in thousands)

 

 

30-59 Days Past Due

 

 

60-89 Days Past Due

 

 

90 Days Or Greater

 

 

Total Past Due

 

 

Current

 

 

Total Loans

 

 

Recorded Investment > 90 Days and Accruing

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

54

 

 

$

282

 

 

$

1,542

 

 

$

1,878

 

 

$

70,452

 

 

$

72,330

 

 

$

—

 

Commercial real estate

 

574

 

 

 

1,774

 

 

 

2,115

 

 

 

4,463

 

 

 

219,073

 

 

 

223,536

 

 

 

—

 

Residential real estate

 

122

 

 

 

173

 

 

 

1,144

 

 

 

1,439

 

 

 

37,436

 

 

 

38,875

 

 

 

—

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer - home equity

 

61

 

 

 

—

 

 

 

149

 

 

 

210

 

 

 

21,118

 

 

 

21,328

 

 

 

—

 

Consumer - other

 

15

 

 

 

—

 

 

 

6

 

 

 

21

 

 

 

4,095

 

 

 

4,116

 

 

 

—

 

Total

$

826

 

 

$

2,229

 

 

$

4,956

 

 

$

8,011

 

 

$

352,174

 

 

$

360,185

 

 

$

—

 

 
Recorded Investment, Unpaid Principal Balances, Average Recorded Investments and Interest Recognized on Impaired Loans, Excluding Homogenous Loans for Which Impaired Analyses are Not Necessarily Performed

The following table presents the recorded investment and unpaid principal balances for impaired loans, excluding homogenous loans for which impaired analyses are not necessarily performed, with the associated allowance amount, if applicable, at December 31, 2015 and 2014. Also presented are the average recorded investments in the impaired balances and interest income recognized after impairment for the years ended December 31, 2015, 2014 and 2013.

 

 

(Amounts in thousands)

 

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

232

 

 

$

264

 

 

$

—

 

Commercial real estate

 

7,222

 

 

 

7,424

 

 

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

1,115

 

 

 

1,552

 

 

 

834

 

Commercial real estate

 

1,243

 

 

 

1,243

 

 

 

178

 

Total:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

1,347

 

 

$

1,816

 

 

$

834

 

Commercial real estate

$

8,465

 

 

$

8,667

 

 

$

178

 

 

 

(Amounts in thousands)

 

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

457

 

 

$

457

 

 

$

—

 

Commercial real estate

 

4,498

 

 

 

5,242

 

 

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

1,566

 

 

 

1,566

 

 

 

1,316

 

Commercial real estate

 

1,231

 

 

 

1,231

 

 

 

148

 

Total:

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

2,023

 

 

$

2,023

 

 

$

1,316

 

Commercial real estate

$

5,729

 

 

$

6,473

 

 

$

148

 

 

 

(Amounts in thousands)

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

December 31, 2015

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

Commercial

$

322

 

 

$

13

 

Commercial real estate

 

4,842

 

 

 

181

 

With an allowance recorded:

 

 

 

 

 

 

 

Commercial

 

1,341

 

 

 

—

 

Commercial real estate

 

1,160

 

 

 

84

 

Total:

 

 

 

 

 

 

 

Commercial

$

1,663

 

 

$

13

 

Commercial real estate

$

6,002

 

 

$

265

 

 

 

(Amounts in thousands)

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

December 31, 2014

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

Commercial

$

257

 

 

$

17

 

Commercial real estate

 

4,069

 

 

 

158

 

With an allowance recorded:

 

 

 

 

 

 

 

Commercial

 

311

 

 

 

—

 

Commercial real estate

 

1,430

 

 

 

73

 

Total:

 

 

 

 

 

 

 

Commercial

$

568

 

 

$

17

 

Commercial real estate

$

5,499

 

 

$

231

 

 

 

(Amounts in thousands)

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

December 31, 2013

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

Commercial

$

123

 

 

$

6

 

Commercial real estate

 

1,638

 

 

 

117

 

With an allowance recorded:

 

 

 

 

 

 

 

Commercial

 

73

 

 

 

—

 

Commercial real estate

 

3,015

 

 

 

95

 

Total:

 

 

 

 

 

 

 

Commercial

$

196

 

 

$

6

 

Commercial real estate

$

4,653

 

 

$

212