LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Mar. 31, 2018

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES

Schedule of major categories of loans

	March 31,			December 31,
	2018			2017
(dollars in thousands)	$		%	$		%
Consumer	$	15,730	5	$	16,112	6
Residential real estate		82,151	30		81,926	30
Indirect		90,278	33		85,186	32
Commercial		11,176	4		11,257	4
Construction		4,385	2		3,536	1
Commercial real estate		71,996	26		73,595	27
Total Loans		275,716	100		271,612	100
Allowance for credit losses		(2,899)			(2,589)
Net Loans	$	272,817		$	269,023

Schedule of total allowance by loan segment

March 31, 2018			Residential								Commercial
(dollars in thousands)	Consumer		Real Estate		Indirect		Commercial		Construction		Real Estate		Unallocated		Total
Balance, beginning of year	$	214	$	1,061	$	774	$	237	$	12	$	291	$	—	$	2,589
Charge-offs		(62)		—		(39)		—		—		—		—		(101)
Recoveries		5		2		44		—		—		—		—		51
Provision for loan losses		56		(3)		14		8		(8)		293		—		360
Balance, end of year	$	213	$	1,060	$	793	$	245	$	4	$	584	$	—	$	2,899
Individually evaluated for impairment:
Balance in allowance	$	29	$	513	$	—	$	214	$	—	$	305	$	—	$	1,061
Related loan balance		99		2,323		—		214		—		3,146		—		5,782
Collectively evaluated for impairment:
Balance in allowance	$	184	$	547	$	793	$	31	$	4	$	279	$	—	$	1,838
Related loan balance		15,631		79,828		90,278		10,962		4,385		68,850		—		269,934

December 31, 2017			Residential								Commercial
(dollars in thousands)	Consumer		Real Estate		Indirect		Commercial		Construction		Real Estate		Unallocated		Total
Balance, beginning of year	$	182	$	1,042	$	693	$	284	$	10	$	259	$	14	$	2,484
Charge-offs		(96)		(3)		(458)		(9)		—		—		—		(566)
Recoveries		8		27		286		—		—		14		—		335
Provision for loan losses		120		(5)		253		(38)		2		18		(14)		336
Balance, end of year	$	214	$	1,061	$	774	$	237	$	12	$	291	$	—	$	2,589
Individually evaluated for impairment:
Balance in allowance	$	52	$	513	$	—	$	217	$	—	$	—	$	—	$	782
Related loan balance		160		2,345		—		217		—		1,176		—		3,898
Collectively evaluated for impairment:
Balance in allowance	$	162	$	548	$	774	$	20	$	12	$	291	$	—	$	1,807
Related loan balance		15,952		79,580		85,186		11,040		3,536		72,420		—		267,714

Schedule of allowances for credit losses

	March 31,			March 31,
(dollars in thousands)	2018			2017
Average loans	$	273,964		$	267,494
Net charge offs to average loans (annualized)		0.07	%		0.12	%

Schedule of reserve for unfunded commitments

	Three Months
	Ended March 31,
(dollars in thousands)	2018		2017
Beginning balance	$	24	$	25
Reduction of unfunded reserve		(18)		—
Provisions charged to operations		6		17
Ending balance	$	12	$	42

Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans

At March 31, 2018					90 Days or
(dollars in thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total
Consumer	$	15,469	$	110	$	—	$	151	$	15,730
Residential Real Estate		79,767		94		—		2,290		82,151
Indirect		89,557		577		—		144		90,278
Commercial		11,122		—		6		48		11,176
Construction		4,014		—		53		318		4,385
Commercial Real Estate		67,506		2,000		—		2,490		71,996
	$	267,435	$	2,781	$	59	$	5,441	$	275,716

At December 31, 2017					90 Days or
(dollars in thousands)			30-89 Days		More and
	Current		Past Due		Still Accruing		Nonaccrual		Total
Consumer	$	15,823	$	80	$	24	$	185	$	16,112
Residential Real Estate		79,205		597		—		2,124		81,926
Indirect		83,932		1,166		—		88		85,186
Commercial		11,203		—		6		48		11,257
Construction		3,188		—		30		318		3,536
Commercial Real Estate		73,088		—		—		507		73,595
	$	266,439	$	1,843	$	60	$	3,270	$	271,612

Schedule of impaired financing receivables

March 31, 2018			Unpaid		Interest				Average
(dollars in thousands)	Recorded		Principal		Income		Specific		Recorded
	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Consumer	$	100	$	100	$	—	$	29	$	137
Residential Real Estate		1,294		1,294		—		513		1,306
Commercial		214		214		3		214		215
Commercial Real Estate		2,000		2,000		14		305		3,103
Total impaired loans with specific reserves		3,608		3,608		17		1,061		4,761
Impaired loans with no specific reserve:
Residential Real Estate	$	977	$	1,403	$	2	$	—	$	1,566
Indirect		144		144		—		—		—
Construction		236		236		—		—		236
Commercial Real Estate		1,238		1,548		9		—		1,666
Total impaired loans with no specific reserve	$	2,595	$	3,331	$	11		—	$	3,468

December 31, 2017			Unpaid		Interest				Average
(dollars in thousands)	Recorded		Principal		Income		Specific		Recorded
	Investment		Balance		Recognized		Reserve		Investment
Impaired loans with specific reserves:
Consumer	$	160	$	160	$	5	$	52	$	205
Residential Real Estate		1,294		1,322		—		513		1,312
Commercial		217		217		—		217		223
Total impaired loans with specific reserves		1,671		1,699		5		782		1,740
Impaired loans with no specific reserve:
Consumer	$	49	$	49	$	—		—	$	—
Residential Real Estate		992		1,760		11		—		1,572
Indirect		88		88		—		—		—
Commercial		2		2		—		—		2
Construction		318		318		—		—		322
Commercial Real Estate		1,194		1,194		39		—		1,632
Total impaired loans with no specific reserve	$	2,643	$	3,411	$	50		—	$	3,528

Schedule of allowance for loan loss and the unearned income on loans

	March 31,			December 31,
(dollars in thousands)	2018			2017
Troubled debt restructured loans	$	260		$	263
Non-accrual and 90+ days past due and still accruing loans to gross loans		2.09	%		1.32	%
Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans		52.70	%		77.70	%

Schedule of non accrual loans

		Residential				Commercial
(dollars in thousands)	Consumer	Real Estate	Indirect	Commercial	Construction	Real Estate	Totals
December 31, 2016	403	2,508	193	—	—	647	3,751
Transfers into nonaccrual	4	—	229	—	170	48	451
Loans paid down/payoffs	(12)	(31)	(42)	—	—	(10)	(95)
Loans returned to accrual status	—	(132)	(33)	—	—	—	(165)
Loans charged off	—	(3)	(167)	—	—	—	(170)
March 31, 2017	395	2,342	180	—	170	685	3,772
December 31, 2017	185	2,124	88	48	318	507	3,270
Transfers into nonaccrual	38	183	160	—	—	2,000	2,381
Loans paid down/payoffs	(9)	(17)	(33)	—	—	(17)	(76)
Loans returned to accrual status	—	—	(37)	—	—	—	(37)
Loans charged off	(63)	—	(34)	—	—	—	(97)
March 31, 2018	151	2,290	144	48	318	2,490	5,441

Schedule of risk ratings of loans by categories of loans

The following table provides information with respect to the Company's credit quality indicators by class of the loan portfolio at March 31, 2018:

March 31, 2018			Residential								Commercial
(dollars in thousands)	Consumer		Real Estate		Indirect		Commercial		Construction		Real Estate		Total
Pass	$	15,574	$	81,612	$	89,345	$	11,175	$	4,385	$	71,672	$	273,763
Special mention		97		217		561		1		—		324		1,200
Substandard		14		322		321		—		—		—		657
Doubtful		45		—		51		—		—		—		96
Loss		—		—		—		—		—		—		—
	$	15,730	$	82,151	$	90,278	$	11,176	$	4,385	$	71,996	$	275,716
Nonaccrual		151		2,290		144		48		318		2,490		5,441
Troubled debt restructures		46		—		—		214		—		—		260
Number of TDRs accounts		1		—		—		1		—		—		2
Non-performing TDRs		46		—		—		—		—		—		46
Number of non-performing TDR accounts		1		—		—		—		—		—		1

December 31, 2017			Residential								Commercial
(dollars in thousands)	Consumer		Real Estate		Indirect		Commercial		Construction		Real Estate		Total
Pass	$	16,008	$	81,346	$	83,803	$	11,256	$	3,536	$	73,268	$	269,217
Special mention		77		344		1,027		1		—		327		1,776
Substandard		3		236		315		—		—		—		554
Doubtful		24		—		41		—		—		—		65
Loss		—		—		—		—		—		—		—
	$	16,112	$	81,926	$	85,186	$	11,257	$	3,536	$	73,595	$	271,612
Nonaccrual		185		2,124		88		48		318		507		3,270
Troubled debt restructures		46		—		—		217		—		—		263
Number of TDRs accounts		1		—		—		1		—		—		2
Non-performing TDRs		46		—		—		—		—		—		46
Number of non-performing TDR accounts		1		—		—		—		—		—		1