Loans (Tables)

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Summary of Loans

Loans consist of the following:

(Dollars in thousands)	June 30, 2018		December 31, 2017
Commercial	$	142,019	$	140,273
Commercial real estate		182,034		179,663
Residential real estate		162,184		157,172
Construction & land development		30,706		22,886
Consumer		17,918		16,306
Total loans before deferred costs		534,861		516,300
Deferred loan costs		566		530
Total Loans	$	535,427	$	516,830

Summary of Allowance for Loan Losses

Summary of Allowance for Loan Losses

(Dollars in thousands)	Commercial			Commercial Real Estate			Residential Real Estate			Construction & Land Development		Consumer			Unallocated			Total
Three months ended June 30, 2018
Beginning balance	$	1,884		$	1,699		$	1,196		$	244	$	188		$	422		$	5,633
Provision for loan losses		(31	)		(87	)		39			35		107			261			324
Charge-offs		(9	)		0			0			0		(36	)					(45	)
Recoveries		5			0			1			0		0						6
Net charge-offs		(4	)		0			1			0		(36	)					(39	)
Ending balance	$	1,849		$	1,612		$	1,236		$	279	$	259		$	683		$	5,918
Six months ended June 30, 2018
Beginning balance	$	1,813		$	1,735		$	1,273		$	237	$	175		$	371		$	5,604
Provision for loan losses		226			(61	)		(1	)		42		130			312			648
Charge-offs		(203	)		(62	)		(37	)		0		(46	)					(348	)
Recoveries		13			0			1			0		0						14
Net charge-offs		(190	)		(62	)		(36	)		0		(46	)					(334	)
Ending balance	$	1,849		$	1,612		$	1,236		$	279	$	259		$	683		$	5,918
Three months ended June 30, 2017
Beginning balance	$	1,704		$	1,538		$	1,303		$	184	$	165		$	560		$	5,454
Provision for loan losses		675			180			(47	)		38		18			(19	)		845
Charge-offs		(32	)		—			—			—		(2	)					(34	)
Recoveries		15			—			8			—		1						24
Net charge-offs		(17	)		—			8			—		(1	)					(10	)
Ending balance	$	2,362		$	1,718		$	1,264		$	222	$	182		$	541		$	6,289
Six months ended June 30, 2017
Beginning balance	$	2,207		$	1,264		$	1,189		$	178	$	141		$	312		$	5,291
Provision for loan losses		(156	)		454			67			44		47			229			685
Charge-offs		(40	)		—			—			—		(7	)		—			(47	)
Recoveries		351			—			8			—		1			—			360
Net charge-offs		311			—			8			—		(6	)		—			313
Ending balance	$	2,362		$	1,718		$	1,264		$	222	$	182		$	541		$	6,289

Allowances for Loan Losses and Ending Balances by Portfolio Class and Based on Impairment Method

The following table presents the balance in the allowance for loan losses and the ending loan balances by portfolio class and based on the impairment method as of June 30, 2018 and December 31, 2017:

(Dollars in thousands)	Commercial		Commercial Real Estate		Residential Real Estate		Construction		Consumer		Unallocated		Total
June 30, 2018
Allowance for loan losses:
Individually evaluated for impairment	$	4	$	46	$	16	$	—	$	—	$	—	$	66
Collectively evaluated for impairment		1,845		1,566		1,220		279		259		683		5,852
Total ending allowance balance	$	1,849	$	1,612	$	1,236	$	279	$	259	$	683	$	5,918
Loans:
Loans individually evaluated for impairment	$	1,096	$	3,458	$	1,374	$	—	$	—			$	5,928
Loans collectively evaluated for impairment		140,923		178,576		160,810		30,706		17,918				528,933
Total ending loans balance	$	142,019	$	182,034	$	162,184	$	30,706	$	17,918			$	534,861
December 31, 2017
Allowance for loan losses:
Individually evaluated for impairment	$	74	$	151	$	19	$	—	$	—	$	—	$	244
Collectively evaluated for impairment		1,739		1,584		1,254		237		175		371		5,360
Total ending allowance balance	$	1,813	$	1,735	$	1,273	$	237	$	175	$	371	$	5,604
Loans:
Loans individually evaluated for impairment	$	1,726	$	4,686	$	1,470	$	—	$	—			$	7,882
Loans collectively evaluated for impairment		138,547		174,977		155,702		22,886		16,306				508,418
Total ending loans balance	$	140,273	$	179,663	$	157,172	$	22,886	$	16,306			$	516,300

Schedule of Impairment by Class of Loans

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2018 and December 31, 2017:

(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance
June 30, 2018
Commercial	$	2,722	$	1,093	$	4	$	1,097	$	4
Commercial real estate		3,656		3,145		319		3,464		46
Residential real estate		1,525		1,019		359		1,378		16
Total impaired loans	$	7,903	$	5,257	$	682	$	5,939	$	66
December 31, 2017
Commercial	$	3,352	$	1,329	$	399	$	1,728	$	74
Commercial real estate		4,826		3,117		1,566		4,683		151
Residential real estate		1,654		1,119		352		1,471		19
Total impaired loans	$	9,832	$	5,565	$	2,317	$	7,882	$	244

Schedule of Average Recorded Investment in Impaired Loans and Related Interest Income Recognized

The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated.

	Three months				Six months
	ended June 30,				ended June 30,
(Dollars in thousands)	2018		2017		2018		2017
Average recorded investment:
Commercial	$	1,190	$	2,794	$	1,491	$	3,505
Commercial real estate		2,700		3,600		3,595		2,019
Residential real estate		1,131		1,540		1,287		1,514
Average recorded investment in impaired loans	$	5,021	$	7,934	$	6,373	$	7,038
Interest income recognized:
Commercial	$	10	$	17	$	21	$	31
Commercial real estate		4		2		8		2
Residential real estate		12		15		26		30
Interest income recognized on a cash basis on impaired loans	$	26	$	34	$	55	$	63

Schedule of Aging of Past Due and Nonaccrual Loans

The following table presents the aging of past due loans and nonaccrual loans as of June 30, 2018 and December 31, 2017 by class of loans:

(Dollars in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days + Past Due		Non-Accrual		Total Past Due and Non-Accrual		Total Loans
June 30, 2018
Commercial	$	141,180	$	43	$	75	$	—	$	721	$	839	$	142,019
Commercial real estate		178,927		55		—		—		3,052		3,107		182,034
Residential real estate		160,667		585		326		82		524		1,517		162,184
Construction & land development		30,706		—		—		—		—		—		30,706
Consumer		17,706		111		81		—		20		212		17,918
Total Loans	$	529,186	$	794	$	482	$	82	$	4,317	$	5,675	$	534,861
December 31, 2017
Commercial	$	138,908	$	148	$	65	$	—	$	1,152	$	1,365	$	140,273
Commercial real estate		175,062		177		—		40		4,384		4,601		179,663
Residential real estate		155,488		757		38		401		488		1,684		157,172
Construction & land development		22,886		—		—		—		—		—		22,886
Consumer		16,048		193		8		—		57		258		16,306
Total Loans	$	508,392	$	1,275	$	111	$	441	$	6,081	$	7,908	$	516,300

Summary of Troubled Debt Restructurings

The Company held no other real estate at June 30, 2018 or December 31, 2017. Consumer mortgage loans in the process of foreclosure were $35 thousand at June 30, 2018 and $114 thousand at December 31, 2017.

(Dollars in thousands)	Number of loans restructured		Pre-Modification Recorded Investment		Post-Modification Recorded Investment
For the three months ended June 30, 2018
Commercial		1	$	200	$	200
Total Restructured Loans		1	$	200	$	200
For the six months ended June 30, 2018
Commercial		1	$	200	$	200
Total Restructured Loans		1	$	200	$	200
For the three months ended June 30, 2017
Commercial Real Estate		4	$	288	$	288
Residential Real Estate		1		14		14
Total Restructured Loans		5	$	302	$	302
For the six months ended June 30, 2017
Commercial Real Estate		4	$	288	$	288
Residential Real Estate		1		14		14
Total Restructured Loans		5	$	302	$	302

Summary of Loans by Credit Quality Indicator

Based on the most recent analysis performed, the risk category of loans by class is as follows as of June 30, 2018 and December 31, 2017:

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
June 30, 2018
Commercial	$	119,590	$	4,850	$	16,564	$	—	$	1,015	$	142,019
Commercial real estate		164,149		8,834		7,858		—		1,193		182,034
Residential real estate		200		—		266		—		161,718		162,184
Construction & land development		26,614		—		—		—		4,092		30,706
Consumer		—		—		21		—		17,897		17,918
Total	$	310,553	$	13,684	$	24,709	$	—	$	185,915	$	534,861
December 31, 2017
Commercial	$	116,833	$	13,685	$	8,841	$	—	$	914	$	140,273
Commercial real estate		162,012		8,220		8,620		—		811		179,663
Residential real estate		205		—		470		—		156,497		157,172
Construction & land development		18,493		880		—		—		3,513		22,886
Consumer		—		—		57		—		16,249		16,306
Total	$	297,543	$	22,785	$	17,988	$	—	$	177,984	$	516,300

Schedule of Loans Not Rated by Class of Loans

The following table presents loans that are not rated by class of loans as of June 30, 2018 and December 31, 2017. Nonperforming loans include loans past due 90 days or more and loans on nonaccrual of interest status.    

(Dollars in thousands)	Performing		Non-Performing		Total
June 30, 2018
Commercial	$	1,015	$	—	$	1,015
Commercial real estate		1,193		—		1,193
Residential real estate		161,112		606		161,718
Construction & land development		4,092		—		4,092
Consumer		17,877		20		17,897
Total	$	185,289	$	626	$	185,915
December 31, 2017
Commercial	$	914	$	—	$	914
Commercial real estate		811		—		811
Residential real estate		155,608		889		156,497
Construction & land development		3,513		—		3,513
Consumer		16,249		57		16,306
Total	$	177,095	$	946	$	178,041