Loans And The Allowance For Loan Losses (Tables)

9 Months Ended

Sep. 30, 2016

Loans And The Allowance For Loan Losses [Abstract]




	September 30, 2016		December 31, 2015
Mortgage loans on real estate:	(in thousands)
Residential mortgages	$	111,685	$	103,941
Commercial and multi-family		462,411		399,819
Construction-Residential		1,214		1,546
Construction-Commercial		83,718		60,892
Home equities		64,138		61,042
Total real estate loans		723,166		627,240

Commercial and industrial loans		187,440		144,330
Consumer and other loans		1,531		1,735
Net deferred loan origination costs		715		679
Total gross loans		912,852		773,984

Allowance for loan losses		(13,712)		(12,883)

Loans, net	$	899,140	$	761,101

Data, At Class Level, Of Credit Quality Indicators Of Certain Loans




September 30, 2016
(in thousands)
Corporate Credit Exposure – By Credit Rating	Commercial Real Estate Construction		Commercial and Multi-Family Mortgages		Total Commercial Real Estate		Commercial and Industrial
1-3.2	$	71,844	$	370,026	$	441,870	$	113,112
4		7,695		75,283		82,978		54,780
5		-		12,243		12,243		11,432
6		4,179		4,859		9,038		8,028
7		-		-		-		88
Total	$	83,718	$	462,411	$	546,129	$	187,440




December 31, 2015
(in thousands)
Corporate Credit Exposure – By Credit Rating	Commercial Real Estate Construction		Commercial and Multi-Family Mortgages		Total Commercial Real Estate		Commercial and Industrial
1-3	$	42,383	$	340,837	$	383,220	$	80,379
4		13,098		40,019		53,117		47,509
5		1,224		11,772		12,996		8,973
6		4,187		7,191		11,378		7,350
7		-		-		-		119
Total	$	60,892	$	399,819	$	460,711	$	144,330

Recorded Investment In Loans Past Due



September 30, 2016
(in thousands)

							Total Past		Current		Total		90+ Days		Non-accruing
	30-59 days		60-89 days		90+ days		Due		Balance		Balance		Accruing		Loans

Commercial and industrial	$	9,892	$	1,113	$	1,608	$	12,613	$	174,827	$	187,440	$	373	$	6,365
Residential real estate:
Residential		-		209		554		763		110,922		111,685		-		872
Construction		-		-		-		-		1,214		1,214		-		-
Commercial real estate:
Commercial		-		4,102		1,932		6,034		456,377		462,411		492		1,893
Construction		262		-		4,179		4,441		79,277		83,718		-		4,178
Home equities		293		437		513		1,243		62,895		64,138		-		1,087
Consumer and other		12		19		6		37		1,494		1,531		-		19
Total Loans	$	10,459	$	5,880	$	8,792	$	25,131	$	887,006	$	912,137	$	865	$	14,414

NOTE: Loan balances do not include $715 thousand in net deferred loan origination costs as of September 30, 2016.



December 31, 2015
(in thousands)

							Total Past		Current		Total		90+ Days		Non-accruing
	30-59 days		60-89 days		90+ days		Due		Balance		Balance		Accruing		Loans

Commercial and industrial	$	160	$	224	$	66	$	450	$	143,880	$	144,330	$	40	$	5,312
Residential real estate:
Residential		822		402		569		1,793		102,148		103,941		-		1,400
Construction		-		-		-		-		1,546		1,546		-		-
Commercial real estate:
Commercial		1,919		963		457		3,339		396,480		399,819		457		3,574
Construction		-		-		-		-		60,892		60,892		-		4,187
Home equities		253		236		267		756		60,286		61,042		-		1,058
Consumer and other		8		-		-		8		1,727		1,735		-		14
Total Loans	$	3,162	$	1,825	$	1,359	$	6,346	$	766,959	$	773,305	$	497	$	15,545

NOTE: Loan balances do not include $679 thousand in net deferred loan origination costs as of December 31, 2015.

Schedule Of Allowance For Loan Losses According To Portfolio Segment

The following tables present the activity in the allowance for loan losses according to portfolio segment for the nine month periods ended September 30, 2016 and 2015:




September 30, 2016

(in thousands)	Commercial and Industrial		Commercial Real Estate Mortgages*		Consumer		Residential Mortgages*		HELOC		Unallocated		Total
Allowance for loan
losses:
Beginning balance	$	4,383	$	7,135	$	85	$	909	$	371	$	-	$	12,883
Charge-offs		(122)		-		(36)		-		-		-		(158)
Recoveries		78		59		11		-		1		-		149
Provision (Credit)		571		538		47		(322)		4		-		838
Ending balance	$	4,910	$	7,732	$	107	$	587	$	376	$	-	$	13,712

Allowance for loan
losses:
Ending balance:
Individually evaluated
for impairment	$	720	$	1,109	$	46	$	3	$	11	$	-	$	1,889
Collectively evaluated
for impairment		4,190		6,623		61		584		365		-		11,823
Total	$	4,910	$	7,732	$	107	$	587	$	376	$	-	$	13,712

Loans:
Ending balance:
Individually evaluated
for impairment	$	6,408	$	7,663	$	46	$	2,602	$	1,583	$	-	$	18,302
Collectively evaluated
for impairment		181,032		538,466		1,485		110,297		62,555		-		893,835
Total	$	187,440	$	546,129	$	1,531	$	112,899	$	64,138	$	-	$	912,137

* Includes construction loans

NOTE: Loan balances do not include $715 thousand in net deferred loan origination costs as of September 30, 2016.




September 30, 2015

(in thousands)	Commercial and Industrial		Commercial Real Estate Mortgages*		Consumer		Residential Mortgages*		HELOC		Unallocated		Total
Allowance for loan
losses:
Beginning balance	$	4,896	$	5,650	$	78	$	941	$	819	$	149	$	12,533
Charge-offs		(100)		(35)		(17)		(66)		-		-		(218)
Recoveries		88		32		8		1		-		-		129
Provision (Credit)		(198)		1,143		5		70		(8)		-		1,012
Ending balance	$	4,686	$	6,790	$	74	$	946	$	811	$	149	$	13,456

Allowance for loan
losses:
Ending balance:
Individually evaluated
for impairment	$	735	$	83	$	44	$	-	$	-	$	-	$	862
Collectively evaluated
for impairment		3,951		6,707		30		946		811		149		12,594
Total	$	4,686	$	6,790	$	74	$	946	$	811	$	149	$	13,456

Loans:
Ending balance:
Individually evaluated
for impairment	$	5,306	$	3,331	$	44	$	2,334	$	1,038	$	-	$	12,053
Collectively evaluated
for impairment		127,474		431,583		2,890		97,622		58,863		-		718,432
Total	$	132,780	$	434,914	$	2,934	$	99,956	$	59,901	$	-	$	730,485

* Includes construction loans

NOTE: Loan balances do not include $754 thousand in net deferred loan origination costs as of September 30, 2015.

The following tables present the activity in the allowance for loan losses by portfolio segment for the three month periods ended September 30, 2016 and 2015:



September 30, 2016
($ in thousands)	Commercial and Industrial		Commercial Real Estate Mortgages*		Consumer		Residential Mortgages*		HELOC		Unallocated		Total
Allowance for loan
losses:
Beginning balance	$	4,195	$	7,308	$	101	$	763	$	406	$	-	$	12,773
Charge-offs		(89)		-		(13)		-		-		-		(102)
Recoveries		23		8		4		-		-		-		35
Provision		781		416		15		(176)		(30)		-		1,006
Ending balance	$	4,910	$	7,732	$	107	$	587	$	376	$	-	$	13,712



September 30, 2015
($ in thousands)	Commercial and Industrial		Commercial Real Estate Mortgages*		Consumer		Residential Mortgages*		HELOC		Unallocated		Total
Allowance for loan
losses:
Beginning balance	$	4,645	$	6,494	$	71	$	948	$	803	$	149	$	13,110
Charge-offs		(20)		-		(6)		(66)		-		-		(92)
Recoveries		31		9		2		-		-		-		42
Provision		30		287		7		64		8		-		396
Ending balance	$	4,686	$	6,790	$	74	$	946	$	811	$	149	$	13,456

Data, At Class Level, Of Impaired Loans



		At September 30, 2016
		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Foregone		Interest Income Recognized
With no related allowance recorded:		(in thousands)
Commercial and industrial	$	3,192	$	3,715	$	-	$	3,581	$	249	$	9
Residential real estate:
Residential		2,530		2,737		-		2,557		33		56
Construction		-		-		-		-		-		-
Commercial real estate:
Commercial		2,168		2,202		-		2,217		21		57
Construction		262		262		-		548		1		25
Home equities		1,517		1,597		-		1,546		41		18
Consumer		-		-		-		-		-		-
Total impaired loans	$	9,669	$	10,513	$	-	$	10,449	$	345	$	165


		At September 30, 2016
		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Foregone		Interest Income Recognized
With a related allowance recorded:		(in thousands)
Commercial and industrial	$	3,216	$	3,266	$	720	$	3,256	$	53	$	96
Residential real estate:
Residential		72		73		3		73		2		1
Construction		-		-		-		-		-		-
Commercial real estate:
Commercial		1,054		1,075		223		1,069		37		-
Construction		4,179		4,201		886		4,182		145		-
Home equities		66		68		11		67		3		-
Consumer		46		70		46		47		2		2
Total impaired loans	$	8,633	$	8,753	$	1,889	$	8,694	$	242	$	99


		At September 30, 2016
		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Foregone		Interest Income Recognized
Total:		(in thousands)
Commercial and industrial	$	6,408	$	6,981	$	720	$	6,837	$	302	$	105
Residential real estate:
Residential		2,602		2,810		3		2,630		35		57
Construction		-		-		-		-		-		-
Commercial real estate:
Commercial		3,222		3,277		223		3,286		58		57
Construction		4,441		4,463		886		4,730		146		25
Home equities		1,583		1,665		11		1,613		44		18
Consumer		46		70		46		47		2		2
Total impaired loans	$	18,302	$	19,266	$	1,889	$	19,143	$	587	$	264



		At December 31, 2015
		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Foregone		Interest Income Recognized
With no related allowance recorded:		(in thousands)
Commercial and industrial	$	1,750	$	1,811	$	-	$	1,945	$	58	$	47
Residential real estate:
Residential		2,444		2,555		-		2,474		90		63
Construction		-		-		-		-		-		-
Commercial real estate:
Commercial		3,888		3,908		-		3,930		27		179
Construction		834		834		-		834		-		31
Home equities		1,644		1,711		-		1,661		40		52
Consumer		-		-		-		-		-		-
Total impaired loans	$	10,560	$	10,819	$	-	$	10,844	$	215	$	372


		At December 31, 2015
		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Foregone		Interest Income Recognized
With a related allowance recorded:		(in thousands)
Commercial and industrial	$	3,572	$	3,835	$	552	$	3,966	$	255	$	9
Residential real estate:
Residential		55		55		2		55		1		2
Construction		-		-		-		-		-		-
Commercial real estate:
Commercial		1,083		1,083		235		1,083		4		42
Construction		4,188		4,201		911		4,188		29		166
Home equities		-		-		-		-		-		-
Consumer		42		57		42		45		2		6
Total impaired loans	$	8,940	$	9,231	$	1,742	$	9,337	$	291	$	225


		At December 31, 2015
		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Foregone		Interest Income Recognized
Total:		(in thousands)
Commercial and industrial	$	5,322	$	5,646	$	552	$	5,911	$	313	$	56
Residential real estate:
Residential		2,499		2,610		2		2,529		91		65
Construction		-		-		-		-		-		-
Commercial real estate:
Commercial		4,971		4,991		235		5,013		31		221
Construction		5,022		5,035		911		5,022		29		197
Home equities		1,644		1,711		-		1,661		40		52
Consumer		42		57		42		45		2		6
Total impaired loans	$	19,500	$	20,050	$	1,742	$	20,181	$	506	$	597

Schedule Of Non-Performing Loans



	September 30, 2016			December 31, 2015
		(in thousands)
Non-accruing loans:
Commercial and industrial loans	$	6,365		$	5,312
Residential real estate:
Residential		872			1,400
Construction		-			-
Commercial real estate:
Commercial and multi-family		1,893			3,574
Construction		4,178			4,187
Home equities		1,087			1,058
Consumer loans		19			14
Total non-accruing loans	$	14,414		$	15,545

Accruing loans 90+ days past due		865			497
Total non-performing loans	$	15,279		$	16,042

Total non-performing loans
to total assets		1.41	%		1.71	%
Total non-performing loans
to total loans		1.67	%		2.07	%

Loans Classified As Troubled Debt Restructurings

The following tables summarize the loans that were classified as troubled debt restructurings as of the dates indicated:



		September 30, 2016
		(in thousands)
		Total		Nonaccruing		Accruing		Related Allowance
Commercial and industrial	$	493	$	450	$	43	$	160
Residential real estate:
Residential		1,962		231		1,731		-
Construction		-		-		-		-
Commercial real estate:
Commercial and multi-family		1,646		317		1,329
Construction		262		-		262		-
Home equities		674		178		496		-
Consumer loans		27		-		27		27
Total troubled restructured loans	$	5,064	$	1,176	$	3,888	$	187



		December 31, 2015
		(in thousands)
		Total		Nonaccruing		Accruing		Related Allowance
Commercial and industrial	$	517	$	508	$	9	$	165
Residential real estate:
Residential		1,789		689		1,100		-
Construction		-		-		-		-
Commercial real estate:
Commercial and multi-family		1,732		334		1,398		-
Construction		834		-		834		-
Home equities		867		281		586		-
Consumer loans		28		-		28		28
Total troubled restructured loans	$	5,767	$	1,812	$	3,955	$	193

The Company’s TDRs have various agreements that involve deferral of principal payments, or interest-only payments, for a period (usually 12 months or less) to allow the customer time to improve cash flow or sell the property. Other common types of concessions leading to the designation of a TDR are lines of credit that are termed out and extensions of maturities at rates that are less than the prevailing market given the risk profile of the borrower.

The following tables show the data for TDR activity by the type of concession granted to the borrower for the three and nine month periods ended September 30, 2016 and 2015:


	Three months ended September 30, 2016					Three months ended September 30, 2015
	(in thousands)					(in thousands)
Troubled Debt Restructurings by Type of Concession	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment

Commercial and Industrial	-	$	-	$	-	-	$	-	$	-
Residential Real Estate & Construction	-		-		-	-		-		-
Extension of maturity and
interest rate reduction	1		109		109	-		-		-
Commercial Real Estate & Construction	-		-		-	-		-		-
Home Equities	-		-		-	-		-		-
Consumer loans	-		-		-	-		-		-



	Nine months ended September 30, 2016					Nine months ended September 30, 2015
	(in thousands)					(in thousands)
Troubled Debt Restructurings by Type of Concession	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment

Commercial and Industrial:
Deferral of principal	-	$	-	$	-	3	$	541	$	541
Extension of maturity	1		24		24	-		-		-
Term-out line of credit	1		20		20	-		-		-
Residential Real Estate & Construction:
Extension of maturity	1		95		95	-		-		-
Extension of maturity and
interest rate reduction	1		109		109	-		-		-
Commercial Real Estate & Construction	-		-		-	-		-		-
Home Equities
Consumer loans	-		-		-	-		-		-

The general practice of the Bank is to work with borrowers so that they are able to pay back their loan in full. If a borrower continues to be delinquent or cannot meet the terms of a TDR and the loan is determined to be uncollectible, the loan will be charged-off. The following table presents loans which were classified as TDRs during the previous 12 months which defaulted during the three and nine month periods ended September 30, 2016 and 2015:



	Three months ended September 30, 2016			Three months ended September 30, 2015
	(in thousands)			(in thousands)
Troubled Debt Restructurings	Number of	Recorded		Number of	Recorded
That Subsequently Defaulted	Contracts	Investment		Contracts	Investment
Commercial and Industrial	-	$	-	-	$	-
Residential Real Estate:
Residential	-		-	1		127
Construction	-		-	-		-
Commercial Real Estate:
Commercial and multi-family	-		-	1		416
Construction	-		-	-		-
Home Equities	-		-	-		-
Consumer loans	-		-	-		-



	Nine months ended September 30, 2016			Nine months ended September 30, 2015
	(in thousands)			(in thousands)
Troubled Debt Restructurings	Number of	Recorded		Number of	Recorded
That Subsequently Defaulted	Contracts	Investment		Contracts	Investment
Commercial and Industrial	-	$	-	-	$	-
Residential Real Estate:
Residential	-		-	1		127
Construction	-		-	-		-
Commercial Real Estate:
Commercial and multi-family	-		-	2		661
Construction	-		-	-		-
Home Equities	-		-	1		19
Consumer loans	-		-	-		-