Loans Receivable and Related Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2017

Schedule of Classification of Loans Receivable

The Corporation’s loans receivable as of the respective dates are summarized as follows:



(Dollar amounts in thousands)	March 31, 2017		December 31, 2016
Mortgage loans on real estate:
Residential first mortgages	$	209,694	$	198,167
Home equity loans and lines of credit	90,648		91,359
Commercial real estate	178,024		166,994
	478,366		456,520
Other loans:
Commercial business	55,753		57,788
Consumer	6,773		6,672
	62,526		64,460

Total loans, gross	540,892		520,980

Less allowance for loan losses	5,688		5,545

Total loans, net	$	535,204	$	515,435

Allowance for Credit Losses on Financing Receivables

The following table details activity in the ALL and the recorded investment by portfolio segment based on impairment method:



(Dollar amounts in thousands)	Residential Mortgages			Home Equity & Lines of Credit			Commercial Real Estate			Commercial Business			Consumer			Total

Three months ended March 31, 2017:
Allowance for loan losses:
Beginning Balance	$	1,846		$	633		$	2,314		$	700		$	52		$	5,545
Charge-offs	(26		)	(1		)	—			—			(19		)	(46		)
Recoveries	—			19			2			—			6			27
Provision	136			(3		)	133			(117		)	13			162

Ending Balance	$	1,956		$	648		$	2,449		$	583		$	52		$	5,688

Three months ended March 31, 2016:
Allowance for loan losses:
Beginning Balance	$	1,429		$	586		$	2,185		$	960		$	45		$	5,205
Charge-offs	(33		)	—			—			—			(9		)	(42		)
Recoveries	—			1			4			—			3			8
Provision	181			49			(263		)	202			12			181

Ending Balance	$	1,577		$	636		$	1,926		$	1,162		$	51		$	5,352

At March 31, 2017:
Ending ALL balance attributable to loans:
Individually evaluated for impairment	$	10		$	—		$	—		$	—		$	—		$	10
Acquired loans collectively evaluated for impairment	—			—			—			—			—			—
Originated loans collectively evaluated for impairment	1,946			648			2,449			583			52			5,678

Total	$	1,956		$	648		$	2,449		$	583		$	52		$	5,688

Total loans:
Individually evaluated for impairment	$	449		$	—		$	991		$	641		$	—		$	2,081
Acquired loans collectively evaluated for impairment	23,574			4,760			26,559			1,043			—			55,936
Originated loans collectively evaluated for impairment	185,671			85,888			150,474			54,069			6,773			482,875

Total	$	209,694		$	90,648		$	178,024		$	55,753		$	6,773		$	540,892

At December 31, 2016:
Ending ALL balance attributable to loans:
Individually evaluated for impairment	$	19		$	—		$	95		$	6		$	—		$	120
Acquired loans collectively evaluated for impairment	—			—			—			—			—			—
Originated 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 collectively evaluated for impairment	25,024			5,225			27,492			1,182			13			58,936
Originated loans 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

Schedule of Impaired Loans with and without a Specific Allowance

The following table presents 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 March 31, 2017:



(Dollar amounts in thousands)
	Impaired Loans with Specific Allowance
	As of March 31, 2017						For the three months ended March 31, 2017
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	77	$	77	$	10	$	106	$	1	$	1
Home equity and lines of credit	—		—		—		—		—		—
Commercial real estate	—		—		—		279		—		—
Commercial business	—		—		—		294		—		—
Consumer	—		—		—		—		—		—

Total	$	77	$	77	$	10	$	679	$	1	$	1



	Impaired Loans with No Specific Allowance
	As of March 31, 2017				March 31, 2017
	Unpaid Principal Balance		Recorded Investment		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period
Residential first mortgages	$	409	$	372	$	186	$	7	$	7
Home equity and lines of credit	—		—		—		—		—
Commercial real estate	1,165		991		724		1		1
Commercial business	641		641		369		—		—
Consumer	—		—		—		—		—

Total	$	2,215	$	2,004	$	1,279	$	8	$	8


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

The following table presents 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, 2016:



(Dollar amounts in thousands)
	Impaired Loans with Specific Allowance
	As of December 31, 2016						For the year ended 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



	Impaired Loans with No Specific Allowance
	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)

The following table presents 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 March 31, 2016:



(Dollar amounts in thousands)
	Impaired Loans with Specific Allowance
	As of March 31, 2016						For the three months ended March 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	$	78	$	78	$	19	$	124	$	1	$	1
Home equity and lines of credit	—		—		—		—		—		—
Commercial real estate	—		—		—		47		—		—
Commercial business	629		629		78		776		—		—
Consumer	—		—		—		—		—		—

Total	$	707	$	707	$	97	$	947	$	1	$	1



	Impaired Loans with No Specific Allowance
	As of March 31, 2016				For the three months ended March 31, 2016
	Unpaid Principal Balance		Recorded Investment		Average Recorded Investment		Interest Income Recognized in Period		Cash Basis Interest Recognized in Period

Residential first mortgages	$	91	$	58	$	29	$	2	$	2
Home equity and lines of credit	—		—		—		—		—
Commercial real estate	1,256		857		801		1		1
Commercial business	75		75		76		—		—
Consumer	—		—		—		—		—

Total	$	1,422	$	990	$	906	$	3	$	3

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 March 31, 2017 and December 31, 2016:



(Dollar amounts in thousands)
	Not Rated		Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2017:
Residential first mortgages	$	208,905	$	—	$	—	$	789	$	—	$	209,694
Home equity and lines of credit	89,997		—		—		651		—		90,648
Commercial real estate	—		171,228		1,505		5,291		—		178,024
Commercial business	—		54,105		472		1,176		—		55,753
Consumer	6,773		—		—		—		—		6,773

Total	$	305,675	$	225,333	$	1,977	$	7,907	$	—	$	540,892

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

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 March 31, 2017 and December 31, 2016:



(Dollar amounts in thousands)
	Performing						Nonperforming
	Accruing Loans Not Past Due		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing 90+ Days Past Due		Nonaccrual		Total
March 31, 2017:
Residential first mortgages	$	207,189	$	1,756	$	7	$	—	$	742	$	209,694
Home equity and lines of credit	89,722		265		10		123		528		90,648
Commercial real estate	176,115		835		—		47		1,027		178,024
Commercial business	54,980		32		100		—		641		55,753
Consumer	6,754		17		2		—		—		6,773

Total loans	$	534,760	$	2,905	$	119	$	170	$	2,938	$	540,892

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

Schedule of Financing Receivables, Non Accrual Status

The following table presents the Corporation’s nonaccrual loans by aging category as of March 31, 2017 and December 31, 2016:



(Dollar amounts in thousands)
	Not Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days + Past Due		Total
March 31, 2017:
Residential first mortgages	$	71	$	394	$	—	$	277	$	742
Home equity and lines of credit	—		—		—		528		528
Commercial real estate	384		—		—		643		1,027
Commercial business	578		39		—		24		641
Consumer	—		—		—		—		—

Total loans	$	1,033	$	433	$	—	$	1,472	$	2,938

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