Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Changes in Allowance for Loan Losses

Changes in the allowance for loan losses for the years ended December 31, 2016, 2015 and 2014 are presented below:

Commercial	2016			2015			2014
	(dollars in thousands)
Balance, beginning of year	$	1,310		$	1,716		$	2,665
Provision (recovery) charged to operations		175			(527	)		(302	)
Charge-offs		(146	)		(89	)		(749	)
Recoveries		65			210			102
Net (charge-offs)		(81	)		121			(647	)
Other		—			—			—
Balance, end of year	$	1,404		$	1,310		$	1,716

Non-Commercial	2016			2015			2014
	(dollars in thousands)
Balance, beginning of year	$	1,574		$	2,022		$	2,430
Provision (recovery) charged to operations		(263	)		(93	)		(87	)
Charge-offs		(244	)		(500	)		(482	)
Recoveries		236			145			161
Net (charge-offs)		(8	)		(355	)		(321	)
Other		—			—			—
Balance, end of year	$	1,303		$	1,574		$	2,022

Total	2016			2015			2014
	(dollars in thousands)
Balance, beginning of year	$	2,884		$	3,738		$	5,095
Provision (recovery) charged to operations		(88	)		(620	)		(389	)
Charge-offs		(390	)		(589	)		(1,231	)
Recoveries		301			355			263
Net (charge-offs)		(89	)		(234	)		(968	)
Other		—			—			—
Balance, end of year	$	2,707		$	2,884		$	3,738

Schedule of Loans and Reserve Balances by Loan Segment Both Individually and Collectively Evaluated for Impairment

The following table shows period-end loans and reserve balances by loan segment both individually and collectively evaluated for impairment at December 31, 2016 and 2015:

December 31, 2016	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	16	$	1,993	$	1,388	$	190,229	$	1,404	$	192,222
Non-Commercial		123		4,096		1,180		145,511		1,303		149,607
Total	$	139	$	6,089	$	2,568	$	335,740	$	2,707	$	341,829

December 31, 2015	Individually Evaluated				Collectively Evaluated				Total
	Reserve		Loans		Reserve		Loans		Reserve		Loans
	(dollars in thousands)
Commercial	$	18	$	1,019	$	1,292	$	170,182	$	1,310	$	171,201
Non-Commercial		163		4,459		1,411		144,472		1,574		148,931
Total	$	181	$	5,478	$	2,703	$	314,654	$	2,884	$	320,132

Past Due Information of Loan Portfolio by Class

Past due loan information is used by management when assessing the adequacy of the allowance for loan loss. The following tables summarize the past due information of the loan portfolio by class:

December 31, 2016	Loans 30-89 Days Past Due		Loans 90 Days or More Past due and Non - Accrual		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	—	$	—	$	—	$	55,752	$	55,752	$	—
Real estate - commercial		—		392		392		109,360		109,752		—
Other real estate construction		106		190		296		26,422		26,718		—
Real estate construction		—		—		—		5,625		5,625		—
Real estate - residential		510		846		1,356		80,413		81,769		—
Home equity		66		22		88		50,727		50,815		—
Consumer loan		36		—		36		9,675		9,711		—
Other loans		—		—		—		1,687		1,687		—
Total	$	718	$	1,450	$	2,168	$	339,661	$	341,829	$	—

December 31, 2015	Loans 30-89 Days Past Due		Loans 90 Days or More Past due and Non - Accrual		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
	(dollars in thousands)
Commercial	$	46	$	34	$	80	$	52,231	$	52,311	$	—
Real estate - commercial		74		—		74		101,124		101,198		—
Other real estate construction		110		195		305		17,387		17,692		—
Real estate construction		—		—		—		5,629		5,629		—
Real estate - residential		1,580		541		2,121		81,298		83,419		—
Home equity		75		13		88		49,332		49,420		—
Consumer loan		39		—		39		8,943		8,982		—
Other loans		—		—		—		1,481		1,481		—
Total	$	1,924	$	783	$	2,707	$	317,425	$	320,132	$	—

Composition of Nonaccrual Loans by Class

The composition of nonaccrual loans by class as of December 31, 2016 and 2015 is as follows:

	2016		2015
	(dollars in thousands)
Commercial	$	—	$	34
Real estate - commercial		392		—
Other real estate construction		190		195
Real estate 1 – 4 family construction		—		—
Real estate – residential		846		541
Home equity		22		13
Consumer loans		—		—
Other loans		—		—
	$	1,450	$	783

Summary of Risk Grades of Portfolio by Class

The tables below summarize risk grades of the loan portfolio by class as of December 31, 2016 and 2015:

December 31, 2016	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	54,906	$	827	$	19	$	—	$	55,752
Real estate - commercial		105,366		1,937		2,449		—		109,752
Other real estate construction		24,312		1,876		530		—		26,718
Real estate 1 - 4 family construction		5,625		—		—		—		5,625
Real estate - residential		71,105		8,551		2,113		—		81,769
Home equity		49,818		973		24		—		50,815
Consumer loans		9,545		163		3		—		9,711
Other loans		1,687		—		—		—		1,687
Total	$	322,364	$	14,327	$	5,138	$	—	$	341,829

December 31, 2015	Pass		Watch		Sub- standard		Doubtful		Total
	(dollars in thousands)
Commercial	$	52,096	$	130	$	85	$	—	$	52,311
Real estate - commercial		97,506		1,161		2,531		—		101,198
Other real estate construction		15,163		1,994		535		—		17,692
Real estate 1 - 4 family construction		5,526		103		—		—		5,629
Real estate - residential		71,736		9,398		2,285		—		83,419
Home equity		48,195		1,209		16		—		49,420
Consumer loans		8,583		394		5		—		8,982
Other loans		1,481		—		—		—		1,481
Total	$	300,286	$	14,389	$	5,457	$	—	$	320,132

Summary of Performing and Nonperforming Loans by Class

The following tables show the breakdown between performing and nonperforming loans by class as of December 31, 2016 and 2015:

December 31, 2016	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	55,752	$	—	$	55,752
Real estate - commercial		109,360		392		109,752
Other real estate construction		26,528		190		26,718
Real estate 1 – 4 family construction		5,625		—		5,625
Real estate – residential		80,923		846		81,769
Home equity		50,793		22		50,815
Consumer loans		9,711		—		9,711
Other loans		1,687		—		1,687
Total	$	340,379	$	1,450	$	341,829

December 31, 2015	Performing		Non- Performing		Total
	(dollars in thousands)
Commercial	$	52,277	$	34	$	52,311
Real estate - commercial		101,198		—		101,198
Other real estate construction		17,497		195		17,692
Real estate 1 – 4 family construction		5,629		—		5,629
Real estate – residential		82,878		541		83,419
Home equity		49,407		13		49,420
Consumer loans		8,982		—		8,982
Other loans		1,481		—		1,481
Total	$	319,349	$	783	$	320,132

Summary of Loans Deemed Impaired and Specific Reserves Allocated by Class

The tables below summarize the loans deemed impaired and the amount of specific reserves allocated by class as of December 31, 2016 and 2015:

	As of  December 31, 2016								Year Ended December 31, 2016
			Recorded		Recorded
	Unpaid		Investment		Investment				Average
	Principal		With No		With		Related		Recorded		Interest
	Balance		Allowance		Allowance		Allowance		Investment		Income
	(dollars in thousands)
Commercial	$	29	$	13	$	16	$	2	$	31	$	8
Real estate - commercial		1,671		1,552		119		9		887		64
Other real estate construction		831		190		103		5		296		6
Real estate 1 -4 family construction		6		—		6		—		9		1
Real estate - residential		3,994		2,072		1,922		123		4,434		201
Home equity		35		35		—		—		49		1
Consumer loans		61		61		—		—		71		6
Other loans		—		—		—		—		—		—
Total	$	6,627	$	3,923	$	2,166	$	139	$	5,777	$	287

									Year Ended
	As of  December 31, 2015								December 31, 2015
			Recorded		Recorded
	Unpaid		Investment		Investment				Average
	Principal		With No		With		Related		Recorded		Interest
	Balance		Allowance		Allowance		Allowance		Investment		Income
	(dollars in thousands)
Commercial	$	97	$	80	$	17	$	2	$	81	$	4
Real estate - commercial		620		498		122		9		1,121		42
Other real estate construction		840		195		107		7		281		3
Real estate 1 -4 family construction		13		—		13		—		16		1
Real estate - residential		4,343		1,507		2,836		163		4,798		200
Home equity		28		28		—		—		50		1
Consumer loans		75		75		—		—		37		2
Other loans		—		—		—		—		—		—
Total	$	6,016	$	2,383	$	3,095	$	181	$	6,384	$	253

									Year Ended
	As of  December 31, 2014								December 31, 2014
			Recorded		Recorded
	Unpaid		Investment		Investment				Average
	Principal		With No		With		Related		Recorded		Interest
	Balance		Allowance		Allowance		Allowance		Investment		Income
	(dollars in thousands)
Commercial	$	98	$	68	$	30	$	30	$	117	$	7
Real estate - commercial		1,820		1,242		389		145		2,641		73
Other real estate construction		934		342		54		4		1,108		6
Real estate 1 -4 family construction		20		—		20		1		109		1
Real estate - residential		5,298		1,865		3,433		257		5,865		268
Home equity		49		30		19		19		73		2
Consumer loans		69		29		40		—		83		4
Other loans		—		—		—		—		—		—
Total	$	8,288	$	3,576	$	3,985	$	456	$	9,996	$	361