Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2016

Loans Receivable [Abstract]

Loans receivable

Loans receivable, including unfunded commitments consist of the following:

	December 31
	2016			2015
	(dollars in thousands)
Residential mortgage, total	$	260,603		$	285,930
Individually evaluated for impairment		20,403			26,087
Collectively evaluated for impairment		240,200			259,843
Construction, land acquisition and development, total		57,166			77,478
Individually evaluated for impairment		-			309
Collectively evaluated for impairment		57,166			77,169
Land, total		48,664			28,677
Individually evaluated for impairment		858			1,608
Collectively evaluated for impairment		47,806			27,069
Lines of credit, total		29,657			20,188
Individually evaluated for impairment		148			299
Collectively evaluated for impairment		29,509			19,889
Commercial real estate, total		195,710			174,912
Individually evaluated for impairment		5,656			6,321
Collectively evaluated for impairment		190,054			168,591
Commercial non-real estate, total		16,811			9,296
Individually evaluated for impairment		-			122
Collectively evaluated for impairment		16,811			9,174
Home equity, total		19,129			24,529
Individually evaluated for impairment		3,137			2,285
Collectively evaluated for impairment		15,992			22,244
Consumer, total		1,210			1,224
Individually evaluated for impairment		96			10
Collectively evaluated for impairment		1,114			1,214
Total Loans		628,950			622,234
Less
Unfunded commitments included above		(15,728	)		(21,101	)
		613,222			601,133
Individually evaluated for impairment		30,298			37,041
Collectively evaluated for impairment		582,924			564,092
		613,222			601,133
Allowance for loan losses		(8,969	)		(8,758	)
Deferred loan origination fees and costs, net		(2,944	)		(2,719	)
Net Loans	$	601,309		$	589,656

Allowance for loan losses

The following is a summary of the allowance for loan losses for the years ended December 31, 2016 and December 31, 2015 (dollars in thousands):

2016	Total			Residential Mortgage			Acquisition and Development			Land			Lines of Credit			Commercial Real Estate			Commercial Non-Real Estate			Home Equity			Consumer
Beginning Balance	$	8,758		$	4,188		$	446		$	510		$	57		$	2,792		$	234		$	528		$	3
Provision		(350	)		(528	)		(3	)		352			(10	)		(102	)		160			(171	)		(48	)
Charge-offs		(468	)		(151	)		(13	)		(59	)		-			(178	)		(17	)		(50	)		-
Recoveries		1,029			324			97			60			10			23			44			421			50
Ending Balance	$	8,969		$	3,833		$	527		$	863		$	57		$	2,535		$	421		$	728		$	5
Allowance on loans individually evaluated for impairment	$	2,373		$	1,703		$	-		$	53		$	15		$	196		$	-		$	402		$	4
Allowance on loans collectively evaluated for impairment	$	6,596		$	2,130		$	527		$	810		$	42		$	2,339		$	421		$	326		$	1

2015	Total			Residential Mortgage			Acquisition and Development		Land			Lines of Credit			Commercial Real Estate			Commercial Non-Real Estate			Home Equity			Consumer
Beginning Balance	$	9,435		$	4,664		$	362	$	646		$	12		$	2,504		$	280		$	963		$	4
Provision		(280	)		(651	)		84		(185	)		(190	)		368			59			236			(1	)
Charge-offs		(1,522	)		(454	)		-		-			-			(80	)		(154	)		(834	)		-
Recoveries		1,125			629			-		49			235			-			49			163			-
Ending Balance	$	8,758		$	4,188		$	446	$	510		$	57		$	2,792		$	234		$	528		$	3
Allowance on loans individually evaluated for impairment	$	2,282		$	1,838		$	-	$	78		$	30		$	328		$	5		$	2		$	1
Allowance on loans collectively evaluated for impairment	$	6,476		$	2,350		$	446	$	432		$	27		$	2,464		$	229		$	526		$	2

Impaired loans

The following tables summarize impaired loans at December 31, 2016 and 2015 (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, 2016
Residential mortgage	$	11,065	$	1,703	$	9,338	$	20,403	$	21,030
Construction, acquisition and development		-		-		-		-		-
Land		417		53		441		858		858
Lines of credit		148		15		-		148		148
Commercial real estate		1,958		196		3,698		5,656		5,858
Commercial non-real estate		-		-		-		-		-
Home equity		1,608		402		1,529		3,137		3,747
Consumer		96		4		-		96		96
Total Impaired loans	$	15,292	$	2,373	$	15,006	$	30,298	$	31,737

	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, 2015
Residential mortgage	$	11,885	$	1,838	$	14,202	$	26,087	$	26,656
Construction, acquisition and development		-		-		309		309		309
Land		639		78		969		1,608		1,723
Lines of credit		299		30		-		299		299
Commercial real estate		3,214		328		3,107		6,321		6,469
Commercial non-real estate		103		5		19		122		123
Home equity		16		2		2,269		2,285		3,251
Consumer		10		1		-		10		10
Total Impaired loans	$	16,166	$	2,282	$	20,875	$	37,041	$	38,840

The following tables summarize average impaired loans for the years ended December 31, 2016 and 2015 (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, 2016
Residential mortgage	$	10,785	$	463	$	12,747	$	521	$	23,532	$	984
Construction, acquisition and Development		-		-		208		9		208		9
Land		489		26		1,026		27		1,515		53
Lines of credit		149		7		141		2		290		9
Commercial real estate		2,020		100		4,021		187		6,041		287
Commercial non-real estate		25		1		4		-		29		1
Home equity		679		7		1,889		75		2,568		82
Consumer		79		2		17		-		96		2
Total Impaired loans	$	14,226	$	606	$	20,053	$	821	$	34,279	$	1,427

	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, 2015
Residential mortgage	$	12,645	$	540	$	13,886	$	564	$	26,531	$	1,104
Construction, acquisition and Development		114		1		573		29		687		30
Land		822		21		1,035		72		1,857		93
Lines of credit		25		1		321		18		346		19
Commercial real estate		2,933		134		2,179		166		5,112		300
Commercial non-real estate		213		5		10		13		223		18
Home equity		337		8		2,520		115		2,857		123
Consumer		11		-		414		3		425		3
Total Impaired loans	$	17,100	$	710	$	20,938	$	980	$	38,038	$	1,690

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, 2016 and 2015 (dollars in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
December 31, 2016
Residential mortgage	$	251,763	$	4,316	$	4,524	$	-	$	260,603
Construction acquisition and Development		57,166		-		-		-		57,166
Land		47,886		-		778		-		48,664
Lines of credit		29,289		116		252		-		29,657
Commercial real estate		184,820		7,420		3,470		-		195,710
Commercial non-real estate		16,722		88		1		-		16,811
Home equity		16,056		472		2,601		-		19,129
Consumer		1,210		-		-		-		1,210
Total loans	$	604,912	$	12,412	$	11,626	$	-	$	628,950

	Pass		Special Mention		Substandard		Doubtful		Total
December 31, 2015
Residential mortgage	$	268,583	$	12,457	$	4,890	$	-	$	285,930
Construction acquisition and Development		77,168		71		239		-		77,478
Land		26,845		1,268		564		-		28,677
Lines of credit		19,521		368		299		-		20,188
Commercial real estate		155,766		13,208		5,938		-		174,912
Commercial non-real estate		9,151		125		20		-		9,296
Home equity		22,018		588		1,923		-		24,529
Consumer		1,224		-		-		-		1,224
Total loans	$	580,276	$	28,085	$	13,873	$	-	$	622,234

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, 2016 and 2015 (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, 2016
Residential mortgage	$	1,472	$	2,074	$	964	$	4,510	$	256,093	$	260,603	$	3,580
Construction acquisition and development		-		-		-		-		57,166		57,166		-
Land		106		-		6		112		48,552		48,664		269
Lines of credit		-		-		-		-		29,657		29,657		150
Commercial real estate		-		171		515		686		195,024		195,710		2,938
Commercial non-real estate		-		-		-		-		16,811		16,811		1
Home equity		34		-		2,174		2,208		16,921		19,129		2,914
Consumer		4		-		-		4		1,206		1,210		-
Total loans	$	1,616	$	2,245	$	3,659	$	7,520	$	621,430	$	628,950	$	9,852

	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Total Loans		Non-Accrual
December 31, 2015
Residential mortgage	$	1,593	$	65	$	2,461	$	4,119	$	281,811	$	285,930	$	3,191
Construction acquisition and development		-		-		-		-		77,478		77,478		244
Land		137		-		156		293		28,384		28,677		277
Lines of credit		149		-		-		149		20,039		20,188		483
Commercial real estate		253		-		292		545		174,367		174,912		2,681
Commercial non-real estate		-		-		-		-		9,296		9,296		-
Home equity		-		-		625		625		23,904		24,529		2,098
Consumer		3		-		-		3		1,221		1,224		-
Total loans	$	2,135	$	65	$	3,534	$	5,734	$	616,500	$	622,234	$	8,974

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.

Financial Instruments Whose Contract Amounts Represent Credit Risk	Contract Amount At December 31,
	2016		2015
	(dollars in thousands)
Standby letters of credit	$	4,022	$	5,937
Home equity lines of credit		7,736		7,467
Unadvanced construction commitments		15,728		21,101
Mortgage loan commitments		574		3,233
Lines of credit		34,125		27,189
Loans sold and serviced with limited repurchase provisions		70,773		65,107

Newly restructured loans during the period

	Year ended December 31, 2016
	Rate Modification		Contracts		Term Modifications		Contracts		Combination Modifications		Contracts		Total		Total Contracts
Pre-Modification Outstanding Recorded Investment:
Residential mortgage	$	-		-	$	-		-	$	624		3	$	624		3
Construction, acquisition and development		-		-		-		-		-		-		-		-
Land		-		-		-		-		-		-		-		-
Lines of credit		-		-		-		-		-		-		-		-
Commercial real estate		-		-		-		-		-		-		-		-
Commercial non-real estate		-		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-		-
Total loans	$	-		-	$	-		-	$	624		3	$	624		3
Post-Modification Outstanding Recorded Investment:
Residential mortgage	$	-		-	$	-		-	$	624		3	$	624		3
Construction, acquisition and development		-		-		-		-		-		-		-		-
Land		-		-		-		-		-		-		-		-
Lines of credit		-		-		-		-		-		-		-		-
Commercial real estate		-		-		-		-		-		-		-		-
Commercial non-real estate		-		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-		-
Total loans	$	-		-	$	-		-	$	624		3	$	624		3

	Year ended December 31, 2015
	Rate Modification		Contracts		Term Modifications		Contracts		Combination Modifications		Contracts		Total		Total Contracts
Pre-Modification Outstanding Recorded Investment:
Residential mortgage	$	-		-	$	91		1	$	-		1	$	91		2
Construction, acquisition and Development		-		-		-		-		-		-		-		-
Land		-		-		-		-		61		1		61		1
Lines of credit		-		-		-		-		-		-		-		-
Commercial real estate		-		-		-		-		-		-		-		-
Commercial non-real estate		-		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-		-
Total loans	$	-		-	$	91		1	$	61		2	$	152		3
Post-Modification Outstanding Recorded Investment:
Residential mortgage	$	-		-	$	91		1	$	109		1	$	200		2
Construction, acquisition and Development		-		-		-		-		-		-		-		-
Land		-		-		-		-		31		1		31		1
Lines of credit		-		-		-		-		-		-		-		-
Commercial real estate		-		-		-		-		-		-		-		-
Commercial non-real estate		-		-		-		-		-		-		-		-
Home equity		-		-		-		-		-		-		-		-
Consumer		-		-		-		-		-		-		-		-
Total loans	$	-		-	$	91		1	$	140		2	$	231		3

Methods used to account for interest on TDRs

Interest on TDRs was accounted for under the following methods as of December 31, 2016 and December 31, 2015 (dollars in thousands):

	Number of Contracts		Accrual Status		Number of Contracts		Non- Accrual Status		Total Number of Contracts		Total Modifications
December 31, 2016
Residential mortgage		48	$	15,886		4	$	2,137		52	$	18,023
Construction, acquisition and Development		-		-		-		-		-		-
Land		2		170		1		6		3		176
Lines of credit		-		-		-		-		-		-
Commercial real estate		3		1,914		2		249		5		2,163
Commercial non-real estate		-		-		-		-		-		-
Home equity		-		-		-		-		-		-
Consumer		5		96		-		-		5		96
Total loans		58	$	18,066		7	$	2,392		65	$	20,458
December 31, 2015
Residential mortgage		55	$	20,831		3	$	1,071		58	$	21,902
Construction, acquisition and Development		1		71		-		-		1		71
Land		6		907		1		6		7		913
Lines of credit		-		-		-		-		-		-
Commercial real estate		4		2,464		2		252		6		2,716
Commercial non-real estate		4		103		-		-		4		103
Home equity		-		-		-		-		-		-
Consumer		1		10		-		-		1		10
Total loans		71	$	24,386		6	$	1,329		77	$	25,715