Loans Receivable (Tables)

3 Months Ended

Mar. 31, 2015

Loans Receivable [Abstract]

Loans receivable

Loans receivable, included unfunded commitments consist of the following:

	March 31			December 31
	2015			2014
	(dollars in thousands)
Residential mortgage, total	$	309,904		$	309,461
Individually evaluated for impairment		28,880			28,535
Collectively evaluated for impairment		281,024			280,926
Construction, land acquisition and development, total		81,418			84,325
Individually evaluated for impairment		919			917
Collectively evaluated for impairment		80,499			83,408
Land, total		30,043			30,426
Individually evaluated for impairment		1,948			2,039
Collectively evaluated for impairment		28,095			28,387
Lines of credit, total		17,651			19,251
Individually evaluated for impairment		453			454
Collectively evaluated for impairment		17,198			18,797
Commercial real estate, total		185,367			198,539
Individually evaluated for impairment		4,462			6,309
Collectively evaluated for impairment		180,905			192,230
Commercial non-real estate, total		10,042			10,167
Individually evaluated for impairment		269			274
Collectively evaluated for impairment		9,773			9,893
Home equity, total		26,233			28,750
Individually evaluated for impairment		3,147			3,551
Collectively evaluated for impairment		23,086			25,199
Consumer, total		990			1,040
Individually evaluated for impairment		12			12
Collectively evaluated for impairment		978			1,028
Total Loans		661,648			681,959
Less
Unfunded commitments included above		(31,429	)		(36,162	)
		630,219			645,797
Individually evaluated for impairment		40,090			42,091
Collectively evaluated for impairment		590,129			603,706
		630,219			645,797
Allowance for loan losses		(8,964	)		(9,435	)
Deferred loan origination fees and costs, net		(2,628	)		(2,480	)
Net Loans	$	618,627		$	633,882

Allowance for loan losses

The following is a summary of the allowance for loan losses for the three month periods ended March 31, 2015 and 2014 (dollars in thousands):

	Total			Residential Mortgage			Construction Acquisition Development		Land			Lines of Credit			Commercial Real Estate		Commercial Non-Real  Estate			Home Equity			Consumer
Three months March 2015
Beginning Balance	$	9,435		$	4,664		$	362	$	646		$	12		$	2,504	$	280		$	963		$	4
Provision		100			(22	)		6		(308	)		(5	)		294		78			58			(1	)
Charge-offs		(626	)		(168	)		-		-			-			-		(1	)		(457	)		-
Recoveries		55			17			-		-			10			-		25			3			-
Ending Balance	$	8,964		$	4,491		$	368	$	338		$	17		$	2,798	$	382		$	567		$	3
Ending balance related to:
Allowance on  loans individually evaluated for impairment	$	2,254		$	1,969		$	-	$	49		$	-		$	220	$	14		$	-		$	2
Allowance on loans collectively evaluated for impairment	$	6,710		$	2,522		$	368	$	289		$	17		$	2,578	$	368		$	567		$	1
Three months  March  2014
Beginning Balance	$	11,739		$	6,282		$	411	$	1,345		$	35		$	2,527	$	135		$	1,002		$	2
Provision		200			(161	)		196		(176	)		2			349		43			(53	)		-
Charge-offs		(752	)		(587	)		-		-			-			-		(1	)		(164	)		-
Recoveries		38			11			-		-			-			25		2			-			-
Ending Balance	$	11,225		$	5,545		$	607	$	1,169		$	37		$	2,901	$	179		$	785		$	2
Ending balance related to:
Allowance on  loans individually evaluated for impairment	$	2,546		$	2,245		$	-	$	64		$	-		$	237	$	-		$	-		$	-
Allowance on loans collectively evaluated for impairment	$	8,679		$	3,300		$	607	$	1,105		$	37		$	2,664	$	179		$	785		$	2

Impaired loans

The following tables summarize impaired loans at March 31, 2015 and December 31, 2014 (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
March 31, 2015
Residential mortgage	$	13,626	$	1,969	$	15,254	$	28,880	$	29,765
Construction, acquisition and development		-		-		919		919		919
Land		353		49		1,595		1,948		2,065
Lines of credit		-		-		453		453		545
Commercial real estate		2,513		220		1,949		4,462		4,580
Commercial non-real estate		269		14		-		269		269
Home equity		-		-		3,147		3,147		4,109
Consumer		12		2		-		12		12
Total impaired loans	$	16,773	$	2,254	$	23,317	$	40,090	$	40,264

	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

The following tables summarize average impaired loans for the three month periods ended March 31, 2015 and 2014 (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
Three months ended March 31, 2015
Residential mortgage	$	13,648	$	136	$	15,343	$	148	$	28,991	$	284
Construction, acquisition and development		-		-		1,157		9		1,157		9
Land		354		3		1,676		22		2,030		25
Lines of credit		-		-		454		13		454		13
Commercial real estate		2,518		31		1,953		40		4,471		71
Commercial non-real estate		270		2		-		13		270		15
Home equity		352		-		3,077		38		3,429		38
Consumer		12		-		-		-		12		-
Total impaired loans		17,154	$	172	$	23,660	$	283	$	40,814	$	455

	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
Three months ended March 31, 2014
Residential mortgage	$	15,076	$	167	$	18,702	$	225	$	33,778	$	392
Construction, acquisition and development		-		-		2,735		19		2,735		19
Land		362		3		1,187		14		1,549		17
Lines of credit		-		-		1,937		20		1,937		20
Commercial real estate		2,083		29		4,157		68		6,240		97
Commercial non-real estate		-		-		530		7		530		7
Home equity		-		-		1,732		15		1,732		15
Consumer		-		-		-		-		-		-
Total impaired loans		17,521	$	199	$	30,980	$	368	$	48,501	$	567

Classes of the loan portfolio

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 internal risk rating system as of March 31, 2015 and December 31, 2014.  Included in the Pass column were $31,429,000 and $36,162,000 in unfunded commitments at March 31, 2015 and December 31, 2014, respectively (dollars in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2015
Residential mortgage	$	291,830	$	2,825	$	15,249	$	-	$	309,904
Construction, acquisition and development		79,780		-		1,638		-		81,418
Land		29,903		-		140		-		30,043
Lines of credit		14,486		2,449		716		-		17,651
Commercial real estate		168,981		6,868		9,518		-		185,367
Commercial non-real estate		9,421		621		-		-		10,042
Home equity		23,404		-		2,829		-		26,233
Consumer		935		-		55		-		990
Total loans	$	618,740	$	12,763	$	30,145	$	-	$	661,648

	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

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

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due.  Included in the Current column were $31,429,000 and $36,162,000 in unfunded commitments at March 31, 2015 and December 31, 2014, respectively. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of March 31, 2015 and December 31, 2014 (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
March 31, 2015
Residential mortgage	$	1,737	$	1,937	$	1,951	$	5,625	$	304,279	$	309,904	$	7,085
Construction, acquisition and development		-		-		-		-		81,418		81,418		116
Land		-		101		6		107		29,936		30,043		820
Lines of credit		66		238		-		304		17,347		17,651		388
Commercial real estate		406		-		-		406		184,961		185,367		274
Commercial non-real estate		125		-		-		125		9,917		10,042		1,768
Home equity		-		188		1,769		1,957		24,276		26,233		2,866
Consumer		-		-		-		-		990		990		-
Total loans	$	2,334	$	2,464	$	3,726	$	8,524	$	653,124	$	661,648	$	13,317

	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

Newly restructured loans during the period

The following table presents loans that were restructured during the three months ended March 31, 2015 (dollars in thousands):

	Three months ended March 31, 2015
	Rate Modification		Contracts		Combination Modifications		Contracts		Total		Total Contracts
Pre-Modification Outstanding Recorded Investment:
Residential mortgage		-		-	$	91		1	$	91		1
Construction, acquisition and development		-		-		-		-		-		-
Land		-		-		-		-		-		-
Lines of credit		-		-		-		-		-		-
Commercial real estate		-		-		-		-		-		-
Commercial non-real estate		-		-		-		-		-		-
Home equity		-		-		-		-		-		-
Consumer		-		-		-		-		-		-
Total loans		-		-	$	91		1	$	91		1

Post-Modification Outstanding Recorded Investment:
Residential mortgage	-	-	$	91	1	$	91	1
Construction, acquisition and development	-	-		-	-		-	-
Land	-	-		-	-		-	-
Lines of credit	-	-		-	-		-	-
Commercial real estate	-	-		-	-		-	-
Commercial non-real estate	-	-		-	-		-	-
Home equity	-	-		-	-		-	-
Consumer	-	-		-	-		-	-
Total loans	-	-	$	91	1	$	91	1

The following table presents restructured loans that occurred during the three months ended March 31, 2014 (dollars in thousands):

	Three months ended March 31, 2014
	Rate Modification		Contracts		Combination  Modifications		Contracts		Total		Total Contracts
Pre-Modification Outstanding Recorded Investment:
Residential mortgage		-		-	$	598		2	$	598		2
Construction, acquisition and development		-		-		-		-		-		-
Land		-		-		-		-		-		-
Lines of credit		-		-		-		-		-		-
Commercial real estate		-		-		351		1		351		1
Commercial non-real estate		-		-		-		-		-		-
Home equity		-		-		-		-		-		-
Consumer		-		-		-		-		-		-
Total loans		-		-	$	949		3	$	949		3

Post-Modification Outstanding Recorded Investment:
Residential mortgage	-	-	$	446	2	$	446	2
Construction, acquisition and development	-	-		-	-		-	-
Land	-	-		-	-		-	-
Lines of credit	-	-		-	-		-	-
Commercial real estate	-	-		345	1		345	1
Commercial non-real estate	-	-		-	-		-	-
Home equity	-	-		-	-		-	-
Consumer	-	-		-	-		-	-
Total loans	-	-	$	791	3	$	791	3

Methods used to account for interest on TDRs

Interest on TDRs was accounted for under the following methods as of March 31, 2015 and December 31, 2014 (dollars in thousands):

	Number of Contracts		Accrual Status		Number of Contracts		Non- Accrual Status		Total Number of Contracts		Total Modifications
March 31, 2015
Residential mortgage		57	$	21,730		5	$	2,382		62	$	24,112
Construction, acquisition and development		2		802		-		-		2		802
Land		5		973		1		6		6		979
Lines of credit		-		-		-		-		-		-
Commercial real estate		5		2,513		1		108		6		2,621
Commercial non-real estate		5		145		2		124		7		269
Home equity		-		-		-		-		-		-
Consumer		1		12		-		-		1		12
Total loans		75	$	26,175		9	$	2,620		84	$	28,795
December 31, 2014
Residential mortgage		57	$	22,154		5	$	2,402		62	$	24,556
Construction, acquisition anddevelopment		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

Financial instruments whose contract amounts represents credit risk

Unless otherwise noted, the Bank requires collateral or other security to support financial instruments with off-balance-sheet credit risk (dollars in thousands).

Financial Instruments Whose Contract	Contract Amount At
Amounts Represent Credit Risk	March 31, 2015		December 31, 2014
Standby letters of credit	$	6,751	$	7,357
Home equity lines of credit		8,310		8,571
Unadvanced construction commitments		31,429		36,162
Mortgage loan commitments		345		2,120
Lines of credit		24,570		23,844
Loans sold with limited repurchase provisions		41,022		38,247