Allowance For Loan Losses (Tables)

9 Months Ended

Sep. 30, 2016

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



	Nine Months Ended			Year Ended			Nine Months Ended
	September 30,			December 31,			September 30,
	2016			2015			2015
				(in thousands)
Balance, beginning	$	4,959		$	5,080		$	5,080
(Recovery of) provision for loan losses	(46		)	(227		)	23
Recoveries added to the allowance	217			562			499
Loan losses charged to the allowance	(472		)	(456		)	(438		)
Balance, ending	$	4,658		$	4,959		$	5,164

Nonaccrual And Past Due Loans By Class

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



	September 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	$	455	$	—	$	300	$	755	$	29,419	$	30,174	$	300	$	375
Commercial Real Estate:
Owner Occupied	94		760		—		854		111,705		112,559		—		1,017
Non-owner occupied	334		—		—		334		87,655		87,989		—		949
Construction and Farmland:
Residential	50		—		—		50		6,668		6,718		—		—
Commercial	—		—		—		—		31,885		31,885		—		—
Consumer:
Installment	18		—		7		25		13,439		13,464		—		12
Residential:
Equity Lines	—		—		—		—		30,302		30,302		—		137
Single family	569		—		4,437		5,006		190,647		195,653		—		4,815
Multifamily	—		—		—		—		3,625		3,625		—		—
All Other Loans	—		—		—		—		1,943		1,943		—		—
Total	$	1,520	$	760	$	4,744	$	7,024	$	507,288	$	514,312	$	300	$	7,305



	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 September 30, 2016 and December 31, 2015 were as follows:



	As of and for the Nine Months Ended
	September 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	—			(424		)	—		—			(16		)	(32		)	—			(472		)
Recoveries	44			114			7		9			39			4			—			217
(Recovery of) provision for loan losses	(265		)	45			250		(1		)	(51		)	(17		)	(7		)	(46		)
Ending balance	$	554		$	2,057		$	1,525	$	219		$	81		$	8		$	214		$	4,658
Ending balance: Individually evaluated for impairment	$	—		$	348		$	162	$	7		$	—		$	—		$	—		$	517
Ending balance: collectively evaluated for impairment	$	554		$	1,709		$	1,363	$	212		$	81		$	8		$	214		$	4,141
Loans:
Ending balance	$	38,603		$	229,580		$	200,548	$	30,174		$	13,464		$	1,943		$	—		$	514,312
Ending balance individually evaluated for impairment	$	1,338		$	9,424		$	3,911	$	1,187		$	—		$	—		$	—		$	15,860
Ending balance collectively evaluated for impairment	$	37,265		$	220,156		$	196,637	$	28,987		$	13,464		$	1,943		$	—		$	498,452



	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
(Recovery of) provision for loan losses	(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 September 30, 2016 and December 31, 2015 were as follows:



	As of and for the Nine Months Ended
	September 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	$	639	$	603	$	—	$	635	$	30
Commercial Real Estate:
Owner Occupied	1,502		1,359		—		1,378		11
Non-owner occupied	1,200		1,085		—		1,098		13
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	1,338		1,341		—		1,366		57
Residential:
Equity lines	—		—		—		—		—
Single family	7,399		7,299		—		7,373		150
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	12,078	$	11,687	$	—	$	11,850	$	261
With an allowance recorded:
Commercial - Non Real Estate:
Commercial & Industrial	$	596	$	589	$	7	$	626	$	17
Commercial Real Estate:
Owner Occupied	204		204		37		206		7
Non-owner occupied	1,264		1,268		125		1,280		48
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	—		—		—		—		—
Residential:
Equity lines	460		120		61		123		—
Single family	2,055		2,015		287		2,034		61
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	4,579	$	4,196	$	517	$	4,269	$	133
Total:
Commercial	$	1,235	$	1,192	$	7	$	1,261	$	47
Commercial Real Estate	4,170		3,916		162		3,962		79
Construction and Farmland	1,338		1,341		—		1,366		57
Residential	9,914		9,434		348		9,530		211
Other	—		—		—		—		—
Total	$	16,657	$	15,883	$	517	$	16,119	$	394

(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 September 30, 2016 and December 31, 2015 was as follows:



	As of
	September 30, 2016
	(in thousands)
INTERNAL RISK RATING GRADES	Pass		Pass Monitored		Special Mention		Substandard		Doubtful		Loss		Total
Commercial - Non Real Estate:
Commercial & Industrial	$	25,582	$	3,501	$	181	$	910	$	—	$	—	$	30,174
Commercial Real Estate:
Owner Occupied	95,555		13,588		1,646		1,333		437		—		112,559
Non-owner occupied	52,103		34,556		—		1,330		—		—		87,989
Construction and Farmland:
Residential	6,668		50		—		—		—		—		6,718
Commercial	24,942		6,591		—		352		—		—		31,885
Residential:
Equity Lines	29,700		465		—		17		120		—		30,302
Single family	177,110		10,630		597		7,165		151		—		195,653
Multifamily	3,625		—		—		—		—		—		3,625
All other loans	1,943		—		—		—		—		—		1,943
Total	$	417,228	$	69,381	$	2,424	$	11,107	$	708	$	—	$	500,848



	Performing		Nonperforming
Consumer Credit Exposure by Payment Activity	$	13,439	$	25



	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