Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2014

Loans Receivable [Abstract]

Loans receivable

Loans receivable, including unfunded commitments consist of the following:

	December 31
	2014			2013
	(dollars in thousands)
Residential mortgage, total	$	309,461		$	258,919
Individually evaluated for impairment		28,535			35,064
Collectively evaluated for impairment		280,926			223,855
Construction, land acquisition and development, total		84,325			75,539
Individually evaluated for impairment		917			2,808
Collectively evaluated for impairment		83,408			72,731
Land, total		30,426			34,429
Individually evaluated for impairment		2,039			1,263
Collectively evaluated for impairment		28,387			33,166
Lines of credit, total		19,251			21,598
Individually evaluated for impairment		454			304
Collectively evaluated for impairment		18,797			21,294
Commercial real estate, total		198,539			220,160
Individually evaluated for impairment		6,309			4,672
Collectively evaluated for impairment		192,230			215,488
Commercial non-real estate, total		10,167			8,583
Individually evaluated for impairment		274			-
Collectively evaluated for impairment		9,893			8,583
Home equity, total		28,750			30,339
Individually evaluated for impairment		3,551			1,777
Collectively evaluated for impairment		25,199			28,562
Consumer, total		1,040			1,185
Individually evaluated for impairment		12			-
Collectively evaluated for impairment		1,028			1,185
Total Loans		681,959			650,752
Less
Unfunded commitments included above		(36,162	)		(34,069	)
		645,797			616,683
Individually evaluated for impairment		42,091			45,888
Collectively evaluated for impairment		603,706			570,795
		645,797			616,683
Allowance for loan losses		(9,435	)		(11,739	)
Deferred loan origination fees and costs, net		(2,480	)		(2,131	)
Net Loans	$	633,882		$	602,813

Allowance for loan losses

The following is a summary of the allowance for loan losses for the years ended December 31, 2014 and December 31, 2013 (dollars in thousands):

2014	Total			Residential Mortgage			Acquisition and Development			Land			Lines of Credit			Commercial Real Estate			Commercial Non-Real Estate			Home Equity			Consumer
Beginning Balance	$	11,739		$	6,291		$	414		$	1,346		$	36		$	2,512		$	135		$	1,003		$	2
Provision		831			(1,089	)		11			(1,049	)		1,285			59			1,396			221			(3	)
Charge-offs		(3,994	)		(844	)		(63	)		-			(1,324	)		(92	)		(1,410	)		(261	)		-
Recoveries		859			306			-			349			15			25			159			-			5
Ending Balance	$	9,435		$	4,664		$	362		$	646		$	12		$	2,504		$	280		$	963		$	4
Allowance on loans individually evaluated for impairment	$	2,777		$	2,113		$	-		$	53		$	-		$	224		$	15		$	370		$	2
Allowance on loans collectively evaluated for impairment	$	6,658		$	2,551		$	362		$	593		$	12		$	2,280		$	265		$	593		$	2

  

2013	Total			Residential Mortgage			Acquisition and Development			Land			Lines of Credit			Commercial Real Estate			Commercial Non-Real Estate			Home Equity			Consumer
Beginning Balance	$	17,478		$	8,418		$	2,120		$	2,245		$	87		$	3,295		$	46		$	1,254		$	13
Provision		16,520			4,758			667			1,857			410			7,506			768			543			11
Charge-offs		(25,293	)		(7,919	)		(2,439	)		(4,529	)		(521	)		(8,343	)		(687	)		(809	)		(46	)
Recoveries		3,034			1,034			66			1,773			60			54			8			15			24
Ending Balance	$	11,739		$	6,291		$	414		$	1,346		$	36		$	2,512		$	135		$	1,003		$	2
Allowance on loans individually evaluated for impairment	$	3,303		$	2,749		$	-		$	67		$	-		$	241		$	-		$	246		$	-
Allowance on loans collectively evaluated for impairment	$	8,436		$	3,542		$	414		$	1,279		$	36		$	2,271		$	135		$	757		$	2

Impaired loans

The following tables summarize impaired loans at December 31, 2014 and 2013 (dollars in thousands):

	Impaired Loans with Specific Allowance				Impaired Loans with No Specific Allowance		Total Impaired Loans
	Recorded Investment		Related Allowance		Recorded Investment		Recorded Investment		Unpaid Principal  Balance
December 31, 2014
Residential mortgage	$	14,094	$	2,113	$	14,441	$	28,535	$	29,487
Construction, acquisition and development		-		-		917		917		917
Land		355		53		1,684		2,039		2,157
Lines of credit		-		-		454		454		545
Commercial real estate		2,529		224		3,780		6,309		6,533
Commercial non-real estate		274		15		-		274		274
Home equity		1,472		370		2,079		3,551		4,274
Consumer		12		2		-		12		12
Total Impaired loans	$	18,736	$	2,777	$	23,355	$	42,091	$	44,199

	Impaired Loans with Specific Allowance				Impaired Loans with No Specific Allowance		Total Impaired Loans
	Recorded Investment		Related Allowance		Recorded Investment		Recorded Investment		Unpaid Principal Balance
December 31, 2013
Residential mortgage	$	16,910	$	2,749	$	18,154	$	35,064	$	39,149
Construction, acquisition and development		-		-		2,808		2,808		3,453
Land		363		67		900		1,263		1,380
Lines of credit		-		-		304		304		395
Commercial real estate		2,092		241		2,580		4,672		4,685
Commercial non-real estate		-		-		-		-		-
Home equity		491		246		1,286		1,777		2,239
Consumer		-		-		-		-		-
Total Impaired loans	$	19,856	$	3,303	$	26,032	$	45,888	$	51,302

The following tables summarize average impaired loans for the years ended December 31, 2014 and 2013 (dollars in thousands):

	Impaired Loans with Specific Allowance				Impaired Loans with No Specific Allowance				Total Impaired Loans
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
December 31, 2014
Residential mortgage	$	14,222	$	592	$	17,342	$	648	$	31,564	$	1,240
Construction, acquisition and development		-		-		1,831		54		1,831		54
Land		359		13		1,774		89		2,133		102
Lines of credit		599		15		616		41		1,215		56
Commercial real estate		2,556		120		4,515		230		7,071		350
Commercial non-real estate		258		5		406		23		664		28
Home equity		1,460		-		2,174		65		3,634		65
Consumer		13		-		-		-		13		-
Total Impaired loans	$	19,467	$	745	$	28,658	$	1,150	$	48,125		1,895

	Impaired Loans with Specific Allowance				Impaired Loans with No Specific Allowance				Total Impaired Loans
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
December 31, 2013
Residential mortgage	$	18,024	$	781	$	28,941	$	1,148	$	46,965	$	1,929
Construction, acquisition and development		952		44		5,284		164		6,236		208
Land		1,920		59		1,538		79		3,458		138
Lines of credit		-		-		365		24		365		24
Commercial real estate		5,698		272		6,949		270		12,647		542
Commercial non-real estate		-		-		-		-		-		-
Home equity		491		22		1,684		88		2,175		110
Consumer		-		-		1,077		43		1,077		43
Total Impaired loans	$	27,085	$	1,178	$	45,838	$	1,816	$	72,923		2,994

Classes of the loan portfolio

The following tables present the classes of the loan portfolio, including unfunded commitments summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of December 31, 2014 and 2013 (dollars in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
December 31, 2014
Residential mortgage	$	295,589	$	1,331	$	12,541	$	-	$	309,461
Construction acquisition and development		82,778		-		1,547		-		84,325
Land		30,285		-		141		-		30,426
Lines of credit		16,112		2,479		660		-		19,251
Commercial real estate		181,686		7,172		9,681		-		198,539
Commercial non-real estate		9,275		637		255		-		10,167
Home equity		25,769		-		2,981		-		28,750
Consumer		985		-		55		-		1,040
Total loans	$	642,479	$	11,619	$	27,861	$	-	$	681,959
	Pass		Special Mention		Substandard		Doubtful		Total
December 31, 2013
Residential mortgage	$	240,325	$	3,454	$	15,140	$	-	$	258,919
Construction acquisition and development		72,104		250		3,185		-		75,539
Land		33,804		480		145		-		34,429
Lines of credit		19,152		568		1,878		-		21,598
Commercial real estate		205,063		6,775		8,322		-		220,160
Commercial non-real estate		8,583		-		-		-		8,583
Home equity		28,447		115		1,777		-		30,339
Consumer		299		-		886		-		1,185
Total loans	$	607,777	$	11,642	$	31,333	$	-	$	650,752

Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of December 31, 2014 and 2013 (dollars in thousands):

	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past  Due		Total Past Due		Current		Total Loans		Non-Accrual
December 31, 2014
Residential mortgage	$	2,549	$	2,333	$	3,095	$	7,977	$	301,484	$	309,461	$	6,052
Construction acquisition and development		-		-		-		-		84,325		84,325		115
Land		-		-		6		6		30 420		30,426		847
Lines of credit		-		-		-		-		19,251		19,251		388
Commercial real estate		447		45		375		867		197,672		198,539		652
Commercial non-real estate		-		-		-		-		10,167		10,167		1,775
Home equity		174		242		2,417		2,833		25,917		28,750		3,016
Consumer		-		-		-		-		1,040		1,040		-
Total loans	$	3,170	$	2,620	$	5,893	$	11,683	$	670,276	$	681,959	$	12,845
	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past  Due		Total Past Due		Current		Total Loans		Non-Accrual
December 31, 2013
Residential mortgage	$	2,985	$	3,834	$	3,678	$	10,497	$	248,422	$	258,919	$	6,802
Construction acquisition and development		-		-		705		705		74,834		75,539		814
Land		29		-		-		29		34,400		34,429		183
Lines of credit		181		-		-		181		21,417		21,598		304
Commercial real estate		420		28		350		798		219,362		220,160		1,155
Commercial non-real estate		1		-		-		1		8,582		8,583		-
Home equity		29		138		469		636		29,703		30,339		1,777
Consumer		1		-		-		1		1,184		1,185		-
Total loans	$	3,646	$	4,000	$	5,202	$	12,848	$	637,904	$	650,752	$	11,035

Financial instruments whose contract amounts represents credit risk

Financial Instruments Whose Contract Amounts Represent Credit Risk	Contract Amount At December 31,
	2014		2013
	(dollars in thousands)
Standby letters of credit	$	7,357	$	14,719
Home equity lines of credit		8,571		12,345
Unadvanced construction commitments		36,162		34,023
Mortgage loan commitments		2,120		4,193
Lines of credit		23,844		30,965
Loans sold with limited repurchase provisions		38,247		28,134

Newly restructured loans during the period

The following tables present newly restructured loans that occurred during the years ended December 31, 2014 and 2013 by the type of concession (dollars in thousands):

	Year ended December 31, 2014
	Rate Modification		Contracts		Term Modifications		Contracts		Combination Modifications		Contracts		Total		Total Contracts
Pre-Modification Outstanding Recorded Investment:
Residential mortgage		-		-		-		-	$	447		2	$	447		2
Construction, acquisition and development		-		-		-		-		-		-		-		-
Land		-		-		-		-		-		-		-		-
Lines of credit		-		-		-		-		-		-		-		-
Commercial real estate		-		-		-		-		541		3		541		3
Commercial non-real estate		-		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-		-
Total loans		-		-		-		-	$	988		5	$	988		5
Post-Modification Outstanding Recorded Investment:
Residential mortgage		-		-		-		-	$	447		2	$	447		2
Construction, acquisition and development		-		-		-		-		-		-		-		-
Land		-		-		-		-		-		-		-		-
Lines of credit		-		-		-		-		-		-		-		-
Commercial real estate		-		-		-		-		541		3		541		3
Commercial non-real estate		-		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-		-
Total loans		-		-		-		-	$	988		5	$	988		5

	Year ended December 31, 2013
	Rate Modification		Contracts		Term Modifications		Contracts		Combination Modifications		Contracts		Total		Total Contracts
Pre-Modification Outstanding Recorded Investment:
Residential mortgage	$	219		1		-		-	$	5,279		8	$	5,498		9
Construction, acquisition and development		-		-		-		-		-		-		-		-
Land		-		-		-		-		-		-		-		-
Lines of credit		-		-		-		-		-		-		-		-
Commercial real estate		-		-		-		-		1,250		1		1,250		1
Commercial non-real estate		-		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-		-
Total loans	$	219		1		-		-	$	6,529		9	$	6,748		10
Post-Modification Outstanding Recorded Investment:
Residential mortgage	$	210		1		-		-	$	4,077		8	$	4,287		9
Construction, acquisition and development		-		-		-		-		-		-		-		-
Land		-		-		-		-		-		-		-		-
Lines of credit		-		-		-		-		-		-		-		-
Commercial real estate		-		-		-		-		1,239		1		1,239		1
Commercial non-real estate		-		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-		-
Total loans	$	210		1		-		-	$	5,316		9	$	5,526		10

Methods used to account for interest on TDRs

Interest on TDRs was accounted for under the following methods as of December 31, 2014 and December 31, 2013 (dollars in thousands):

	Number of Contracts		Accrual Status		Number of Contracts		Non- Accrual Status		Total Number of Contracts		Total Modifications
December 31, 2014
Residential mortgage		57	$	22,154		5	$	2,402		62	$	24,556
Construction, acquisition and development		2		803		-		-		2		803
Land		5		982		1		6		6		988
Lines of credit		-		-		-		-		-		-
Commercial real estate		6		3,623		1		109		7		3,732
Commercial non-real estate		5		150		2		124		7		274
Home equity		-		-		-		-		-		-
Consumer		1		12		-		-		1		12
Total loans		76	$	27,724		9	$	2,641		85	$	30,365
December 31, 2013
Residential mortgage		66	$	28,966		5	$	856		71	$	29,822
Construction, acquisition and development		3		1,994		1		705		4		2,699
Land		5		1,080		2		6		7		1,086
Lines of credit		-		-		-		-		-		-
Commercial real estate		5		3,199		1		112		6		3,311
Commercial non-real estate		-		-		-		-		-		-
Home equity		-		-		-		-		-		-
Consumer		-		-		-		-		-		-
Total loans		79	$	35,239		9	$	1,679		88	$	36,918