Loans Receivable and Related Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Schedule of Classification of Loans Receivable

The following table summarizes the Corporation’s loans receivable as of December 31:

(Dollar amounts in thousands)	2016		2015
Mortgage loans on real estate:
Residential first mortgages	$	198,167	$	139,305
Home equity loans and lines of credit	91,359		87,410
Commercial real estate	166,994		129,691
	456,520		356,406
Other loans:
Commercial business	57,788		71,948
Consumer	6,672		6,742
	64,460		78,690
Total loans, gross	520,980		435,096
Less allowance for loan losses	5,545		5,205
Total loans, net	$	515,435	$	429,891

Allowance for Credit Losses on Financing Receivables

Following is an analysis of the changes in the ALL for the years ended December 31:

(Dollar amounts in thousands)	2016			2015
Balance at the beginning of the year	$	5,205		$	5,224
Provision for loan losses	464			381
Charge-offs	(296		)	(567		)
Recoveries	172			167
Balance at the end of the year	$	5,545		$	5,205

5. Loans Receivable and Related Allowance for Loan Losses (continued)

The following table details activity in the ALL and the recorded investment by portfolio segment based on impairment method at December 31, 2016 and 2015:

	Residential			Home Equity & Lines			Commercial			Commercial
(Dollar amounts in thousands)	Mortgages			of Credit			Real Estate			Business			Consumer			Total
December 31, 2016:
Beginning Balance	$	1,429		$	586		$	2,185		$	960		$	45		$	5,205
Charge-offs	(101		)	(118		)	(18		)	(11		)	(48		)	(296		)
Recoveries	—			3			158			—			11			172
Provision	518			162			(11		)	(249		)	44			464
Ending Balance	$	1,846		$	633		$	2,314		$	700		$	52		$	5,545
Ending ALL balance attributable to loans:
Individually evaluated for impairment	$	19		$	—		$	95		$	6		$	—		$	120
Acquired loans	—			—			—			—			—			—
Collectively evaluated for impairment	1,827			633			2,219			694			52			5,425
Total	$	1,846		$	633		$	2,314		$	700		$	52		$	5,545
Total loans:
Individually evaluated for impairment	$	135		$	—		$	1,014		$	684		$	—		$	1,833
Acquired loans	25,024			5,225			27,492			1,182			13			58,936
Collectively evaluated for impairment	173,008			86,134			138,488			55,922			6,659			460,211
Total	$	198,167		$	91,359		$	166,994		$	57,788		$	6,672		$	520,980
December 31, 2015:
Beginning Balance	$	955		$	543		$	2,338		$	1,336		$	52		$	5,224
Charge-offs	(79		)	(221		)	(35		)	(182		)	(50		)	(567		)
Recoveries	—			30			88			31			18			167
Provision	553			234			(206		)	(225		)	25			381
Ending Balance	$	1,429		$	586		$	2,185		$	960		$	45		$	5,205
Ending ALL balance attributable to loans:
Individually evaluated for impairment	$	29		$	—		$	5		$	76		$	—		$	110
Collectively evaluated for impairment	1,400			586			2,180			884			45			5,095
Total	$	1,429		$	586		$	2,185		$	960		$	45		$	5,205
Total loans:
Individually evaluated for impairment	$	169		$	—		$	839		$	999		$	—		$	2,007
Collectively evaluated for impairment	139,136			87,410			128,852			70,949			6,742			433,089
Total	$	139,305		$	87,410		$	129,691		$	71,948		$	6,742		$	435,096

Schedule of Impaired Loans with and without a Specific Allowance

The following tables present impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31: 

	Impaired Loans with
(Dollar amounts in thousands)	Specific Allowance
							For the year ended
	As of December 31, 2016						December 31, 2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	168	$	135	$	19	$	119	$	6	$	6
Home equity and lines of credit	—		—		—		—		—		—
Commercial real estate	557		557		95		130		23		—
Commercial business	588		588		6		428		—		—
Consumer	—		—		—		—		—		—
Total	$	1,313	$	1,280	$	120	$	677	$	29	$	6

(Dollar amounts in thousands)	Impaired Loans with No Specific Allowance
					For the year ended
	As of December 31, 2016				December 31, 2016
	Unpaid Principal Balance		Recorded Investment		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	—	$	—	$	23	$	—	$	—
Home equity and lines of credit	—		—		—		—		—
Commercial real estate	631		457		735		3		3
Commercial business	96		96		322		2		2
Consumer	—		—		—		—		—
Total	$	727	$	553	$	1,080	$	5	$	5

5. Loans Receivable and Related Allowance for Loan Losses (continued)

(Dollar amounts in thousands)	Impaired Loans with Specific Allowance
							For the year ended
	As of December 31, 2015						December 31, 2015
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	169	$	169	$	29	$	170	$	6	$	6
Home equity and lines of credit	—		—		—		—		—		—
Commercial real estate	93		93		5		1,613		12		9
Commercial business	923		923		76		1,641		112		99
Consumer	—		—		—		—		—		—
Total	$	1,185	$	1,185	$	110	$	3,424	$	130	$	114

(Dollar amounts in thousands)	Impaired Loans with No Specific Allowance
					For the year ended
	As of December 31, 2015				December 31, 2015
	Unpaid Principal Balance		Recorded Investment		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	—	$	—	$	45	$	7	$	7
Home equity and lines of credit	—		—		—		—		—
Commercial real estate	1,145		746		1,069		49		40
Commercial business	76		76		66		3		3
Consumer	—		—		—		—		—
Total	$	1,221	$	822	$	1,180	$	59	$	50

Financing Receivable Credit Quality Indicators

The following table presents the classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the Corporation’s internal risk rating system as of December 31, 2016 and 2015:

					Special
(Dollar amounts in thousands)	Not Rated		Pass		Mention		Substandard		Doubtful		Total
December 31, 2016:
Residential first mortgages	$	197,041	$	—	$	—	$	1,126	$	—	$	198,167
Home equity and lines of credit	91,017		—		—		342		—		91,359
Commercial real estate	—		161,312		1,077		4,605		—		166,994
Commercial business	—		52,125		4,926		737		—		57,788
Consumer	6,659		—		—		13		—		6,672
Total	$	294,717	$	213,437	$	6,003	$	6,823	$	—	$	520,980
December 31, 2015:
Residential first mortgages	$	138,096	$	—	$	—	$	1,209	$	—	$	139,305
Home equity and lines of credit	87,015		—		—		395		—		87,410
Commercial real estate	—		125,539		88		4,064		—		129,691
Commercial business	—		69,740		942		1,266		—		71,948
Consumer	6,742		—		—		—		—		6,742
Total	$	231,853	$	195,279	$	1,030	$	6,934	$	—	$	435,096

Past Due Financing Receivables

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonperforming loans as of December 31, 2016 and 2015:

	Performing						Nonperforming
	Accruing Loans Not		Accruing 30-59 Days		Accruing 60-89 Days		Accruing 90 Days +				Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Nonaccrual		Loans
December 31, 2016:
Residential first mortgages	$	194,830	$	1,916	$	295	$	—	$	1,126	$	198,167
Home equity and lines of credit	90,557		460		—		2		340		91,359
Commercial real estate	165,318		561		—		42		1,073		166,994
Commercial business	56,972		56		34		—		726		57,788
Consumer	6,602		28		29		—		13		6,672
Total loans	$	514,279	$	3,021	$	358	$	44	$	3,278	$	520,980
December 31, 2015:
Residential first mortgages	$	136,924	$	1,097	$	75	$	—	$	1,209	$	139,305
Home equity and lines of credit	86,691		308		16		—		395		87,410
Commercial real estate	128,945		—		—		—		746		129,691
Commercial business	71,229		—		—		—		719		71,948
Consumer	6,723		19		—		—		—		6,742
Total loans	$	430,512	$	1,424	$	91	$	—	$	3,069	$	435,096

Schedule of Financing Receivables, Non Accrual Status

The following table presents the Corporation’s nonaccrual loans by aging category as of December 31, 2016 and 2015:

	Not		30-59 Days		60-89 Days		90 Days +		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Loans
December 31, 2016:
Residential first mortgages	$	72	$	77	$	—	$	977	$	1,126
Home equity and lines of credit	—		—		—		340		340
Commercial real estate	397		—		557		119		1,073
Commercial business	631		—		—		95		726
Consumer	—		—		—		13		13
Total loans	$	1,100	$	77	$	557	$	1,544	$	3,278
December 31, 2015:
Residential first mortgages	$	75	$	—	$	79	$	1,055	$	1,209
Home equity and lines of credit	14		—		—		381		395
Commercial real estate	623		—		—		123		746
Commercial business	690		—		—		29		719
Consumer	—		—		—		—		—
Total loans	$	1,402	$	—	$	79	$	1,588	$	3,069