Allowance For Loan Losses (Tables)

6 Months Ended

Jun. 30, 2016

Changes in the allowance for loan losses for the six months ended June 30, 2016 and 2015 and the year ended December 31, 2015 were as follows:



	Six Months Ended			Year Ended			Six Months Ended
	June 30,			December 31,			June 30,
	2016			2015			2015
				(in thousands)
Balance, beginning	$	4,959		$	5,080		$	5,080
Provision for (recovery of) loan losses	79			(227		)	433
Recoveries added to the allowance	90			562			343
Loan losses charged to the allowance	(155		)	(456		)	(320		)
Balance, ending	$	4,973		$	4,959		$	5,536

Nonaccrual And Past Due Loans By Class

Nonaccrual and past due loans by class at June 30, 2016 and December 31, 2015 were as follows:



	June 30, 2016
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Days Past Due Still Accruing		Nonaccrual Loans
Commercial - Non Real Estate:
Commercial & Industrial	$	287	$	333	$	—	$	620	$	29,674	$	30,294	$	—	$	114
Commercial Real Estate:
Owner Occupied	451		445		—		896		113,025		113,921		—		1,040
Non-owner occupied	—		575		—		575		87,092		87,667		—		913
Construction and Farmland:
Residential	490		—		—		490		8,367		8,857		—		—
Commercial	2,093		—		—		2,093		28,788		30,881		—		—
Consumer:
Installment	35		8		5		48		13,313		13,361		5		—
Residential:
Equity Lines	101		18		—		119		31,141		31,260		—		142
Single family	959		4,367		1,249		6,575		187,668		194,243		28		1,769
Multifamily	—		—		—		—		3,835		3,835		—		—
All Other Loans	—		—		—		—		3,088		3,088		—		—
Total	$	4,416	$	5,746	$	1,254	$	11,416	$	505,991	$	517,407	$	33	$	3,978



	December 31, 2015
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Past Due Still Accruing		Nonaccrual Loans
Commercial - Non Real Estate:
Commercial & Industrial	$	1	$	—	$	—	$	1	$	29,365	$	29,366	$	—	$	475
Commercial Real Estate:
Owner Occupied	623		142		—		765		108,942		109,707		—		1,614
Non-owner occupied	—		55		746		801		64,664		65,465		—		948
Construction and Farmland:
Residential	50		—		—		50		8,509		8,559		—		—
Commercial	356		72		—		428		32,582		33,010		—		310
Consumer:
Installment	43		3		—		46		13,484		13,530		—		—
Residential:
Equity Lines	175		—		—		175		34,246		34,421		—		276
Single family	2,123		209		1,296		3,628		191,602		195,230		307		1,662
Multifamily	—		—		—		—		3,975		3,975		—		—
All Other Loans	—		—		—		—		2,310		2,310		—		—
Total	$	3,371	$	481	$	2,042	$	5,894	$	489,679	$	495,573	$	307	$	5,285

Allowance For Loan Losses By Segment

Allowance for loan losses by segment at June 30, 2016 and December 31, 2015 were as follows:



	As of and For the Six Months Ended
	June 30, 2016
	(in thousands)
	Construction and Farmland			Residential			Commercial Real Estate		Commercial - Non Real Estate			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	775		$	2,322		$	1,268	$	211		$	109		$	53		$	221	$	4,959
Charge-Offs	—			(127		)	—		—			(11		)	(17		)	—		(155		)
Recoveries	28			13			5		8			33			3			—		90
Provision	(198		)	2			271		(26		)	(46		)	47			29		79
Ending balance	$	605		$	2,210		$	1,544	$	193		$	85		$	86		$	250	$	4,973
Ending balance: Individually evaluated for impairment	$	20		$	368		$	137	$	5		$	—		$	—		$	—	$	530
Ending balance: collectively evaluated for impairment	$	585		$	1,842		$	1,407	$	188		$	85		$	86		$	250	$	4,443
Loans:
Ending balance	$	39,738		$	229,338		$	201,588	$	30,294		$	13,361		$	3,088		$	—	$	517,407
Ending balance individually evaluated for impairment	$	1,362		$	6,382		$	3,913	$	452		$	—		$	—		$	—	$	12,109
Ending balance collectively evaluated for impairment	$	38,376		$	222,956		$	197,675	$	29,842		$	13,361		$	3,088		$	—	$	505,298



	As of and for the Twelve Months Ended
	December 31, 2015
	(in thousands)
	Construction and Farmland			Residential			Commercial Real Estate			Commercial - Non Real Estate			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	951		$	1,977		$	1,347		$	464		$	103		$	42		$	196	$	5,080
Charge-Offs	(166		)	(152		)	(47		)	—			(66		)	(25		)	—		(456		)
Recoveries	75			142			115			181			33			16			—		562
Provision	(85		)	355			(147		)	(434		)	39			20			25		(227		)
Ending balance	$	775		$	2,322		$	1,268		$	211		$	109		$	53		$	221	$	4,959
Ending balance: Individually evaluated for impairment	$	10		$	423		$	141		$	2		$	—		$	—		$	—	$	576
Ending balance: collectively evaluated for impairment	$	765		$	1,899		$	1,127		$	209		$	109		$	53		$	221	$	4,383
Loans:
Ending balance	$	41,569		$	233,626		$	175,172		$	29,366		$	13,530		$	2,310		$	—	$	495,573
Ending balance individually evaluated for impairment	$	1,392		$	7,209		$	4,555		$	847		$	—		$	—		$	—	$	14,003
Ending balance collectively evaluated for impairment	$	40,177		$	226,417		$	170,617		$	28,519		$	13,530		$	2,310		$	—	$	481,570

Impaired Loans By Class

Impaired loans by class as of and for the periods ended June 30, 2016 and December 31, 2015 were as follows:



	As of and for the Six Months Ended
	June 30, 2016
	(in thousands)
	Unpaid Principal Balance		Recorded Investment (1)		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance:
Commercial - Non Real Estate:
Commercial & Industrial	$	192	$	156	$	—	$	184	$	6
Commercial Real Estate:
Owner Occupied	1,513		1,385		—		1,399		8
Non-owner occupied	1,153		1,050		—		1,060		7
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	360		361		—		367		16
Residential:
Equity lines	—		—		—		—		—
Single family	3,835		3,650		—		3,730		58
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	7,053	$	6,602	$	—	$	6,740	$	95
With an allowance recorded:
Commercial - Non Real Estate:
Commercial & Industrial	$	298	$	298	$	5	$	306	$	7
Commercial Real Estate:
Owner Occupied	205		206		38		207		5
Non-owner occupied	1,273		1,277		99		1,285		32
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	1,002		1,006		20		1,009		21
Residential:
Equity lines	545		207		78		210		2
Single family	2,573		2,541		290		2,556		39
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	5,896	$	5,535	$	530	$	5,573	$	106
Total:
Commercial	$	490	$	454	$	5	$	490	$	13
Commercial Real Estate	4,144		3,918		137		3,951		52
Construction and Farmland	1,362		1,367		20		1,376		37
Residential	6,953		6,398		368		6,496		99
Other	—		—		—		—		—
Total	$	12,949	$	12,137	$	530	$	12,313	$	201

(1) Recorded investment is defined as the summation of the outstanding principal balance, accrued interest, net deferred loan fees or costs, and any partial charge-offs.



	As of and for the Twelve Months End
	December 31, 2015
	(in thousands)
	Unpaid Principal Balance		Recorded Investment (1)		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance:
Commercial - Non Real Estate:
Commercial & Industrial	$	747	$	534	$	—	$	749	$	18
Commercial Real Estate:
Owner Occupied	2,146		1,964		—		1,999		19
Non-owner occupied	1,174		1,093		—		1,108		15
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	337		310		—		325		—
Residential:
Equity lines	149		145		—		145		5
Single family	4,407		4,288		—		4,245		126
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	8,960	$	8,334	$	—	$	8,571	$	183
With an allowance recorded:
Commercial - Non Real Estate:
Commercial & Industrial	$	313	$	313	$	2	$	328	$	15
Commercial Real Estate:
Owner Occupied	207		208		39		210		10
Non-owner occupied	1,291		1,295		102		1,311		69
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	1,081		1,085		10		1,109		48
Residential:
Equity lines	551		216		86		221		3
Single family	2,596		2,575		337		2,600		76
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	6,039	$	5,692	$	576	$	5,779	$	221
Total:
Commercial	$	1,060	$	847	$	2	$	1,077	$	33
Commercial Real Estate	4,818		4,560		141		4,628		113
Construction and Farmland	1,418		1,395		10		1,434		48
Residential	7,703		7,224		423		7,211		210
Other	—		—		—		—		—
Total	$	14,999	$	14,026	$	576	$	14,350	$	404

Credit Quality Information By Class

Credit quality information by class at June 30, 2016 and December 31, 2015 was as follows:



	As of
	June 30, 2016
	(in thousands)
INTERNAL RISK RATING GRADES	Pass		Pass Monitored		Special Mention		Substandard		Doubtful		Loss		Total
Commercial - Non Real Estate:
Commercial & Industrial	$	26,294	$	3,605	$	226	$	169	$	—	$	—	$	30,294
Commercial Real Estate:
Owner Occupied	94,780		14,647		2,688		1,361		445		—		113,921
Non-owner occupied	58,413		26,541		1,220		1,493		—		—		87,667
Construction and Farmland:
Residential	8,857		—		—		—		—		—		8,857
Commercial	20,500		10,002		—		379		—		—		30,881
Residential:
Equity Lines	29,847		1,271		—		18		124		—		31,260
Single family	174,215		15,551		268		3,630		579		—		194,243
Multifamily	3,835		—		—		—		—		—		3,835
All other loans	3,088		—		—		—		—		—		3,088
Total	$	419,829	$	71,617	$	4,402	$	7,050	$	1,148	$	—	$	504,046



	Performing		Nonperforming
Consumer Credit Exposure by Payment Activity	$	13,313	$	48



	As of
	December 31, 2015
	(in thousands)
INTERNAL RISK RATING GRADES	Pass		Pass Monitored		Special Mention		Substandard		Doubtful		Loss		Total
Commercial - Non Real Estate:
Commercial & Industrial	$	25,375	$	3,175	$	335	$	364	$	117	$	—	$	29,366
Commercial Real Estate:
Owner Occupied	90,230		12,553		4,521		1,416		987		—		109,707
Non-owner occupied	42,988		21,072		—		1,405		—		—		65,465
Construction and Farm land:
Residential	8,559		—		—		—		—		—		8,559
Commercial	20,391		10,886		1,395		338		—		—		33,010
Residential:
Equity Lines	30,267		3,878		—		145		131		—		34,421
Single family	170,168		19,086		950		4,600		426		—		195,230
Multifamily	3,975		—		—		—		—		—		3,975
All other loans	2,265		45		—		—		—		—		2,310
Total	$	394,218	$	70,695	$	7,201	$	8,268	$	1,661	$	—	$	482,043



	Performing		Nonperforming
Consumer Credit Exposure by Payment Activity	$	13,484	$	46