Loans (Tables)

12 Months Ended

Dec. 31, 2015


(In thousands)	December 31, 2015		December 31, 2014
SBA loans held for investment	$	39,393	$	40,401
SBA 504 loans		29,353		34,322
Commercial loans
Commercial other		49,332		40,607
Commercial real estate		391,071		339,693
Commercial real estate construction		25,115		21,649
Residential mortgage loans		264,523		220,878
Consumer loans
Home equity		45,042		41,451
Consumer other		32,015		17,645
Total loans held for investment	$	875,844	$	756,646
SBA loans held for sale		13,114		5,179
Total loans	$	888,958	$	761,825

Loan Portfolio by Class According to Their Credit Quality Indicators

	December 31, 2015
	SBA, SBA 504 & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	35,032	$	2,647	$	1,714	$	39,393
SBA 504 loans		24,003		4,917		433		29,353
Commercial loans
Commercial other		45,870		2,373		1,089		49,332
Commercial real estate		369,510		18,978		2,583		391,071
Commercial real estate construction		24,061		1,054		-		25,115
Total commercial loans		439,441		22,405		3,672		465,518
Total SBA, SBA 504 and commercial loans	$	498,476	$	29,969	$	5,819	$	534,264

	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	262,299	$	2,224	$	264,523
Consumer loans
Home equity				44,452		590		45,042
Consumer other				32,015		-		32,015
Total consumer loans				76,467		590		77,057
Total residential mortgage and consumer loans			$	338,766	$	2,814	$	341,580

The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of December 31, 2014:


	December 31, 2014
	SBA, SBA 504 & Commercial loans - Internal risk ratings
(In thousands)	Pass		Special mention		Substandard		Total
SBA loans held for investment	$	35,827	$	2,250	$	2,324	$	40,401
SBA 504 loans		24,415		5,967		3,940		34,322
Commercial loans
Commercial other		38,054		1,270		1,283		40,607
Commercial real estate		315,015		20,555		4,123		339,693
Commercial real estate construction		21,649		-		-		21,649
Total commercial loans		374,718		21,825		5,406		401,949
Total SBA, SBA 504 and commercial loans	$	434,960	$	30,042	$	11,670	$	476,672

	Residential mortgage & Consumer loans - Performing/Nonperforming
(In thousands)			Performing		Nonperforming		Total
Residential mortgage loans			$	220,233	$	645	$	220,878
Consumer loans
Home equity				40,908		543		41,451
Consumer other				17,643		2		17,645
Total consumer loans				58,551		545		59,096
Total residential mortgage and consumer loans			$	278,784	$	1,190	$	279,974

Aging Analysis of Past Due And Nonaccrual Loans by Loan Class


	December 31, 2015
(In thousands)	30-59 days past due		60-89 days past due		90+ days and still accruing		Nonaccrual (1)		Total past due		Current		Total loans
SBA loans held for investment	$	1,153	$	456	$	-	$	1,764	$	3,373	$	36,020	$	39,393
SBA 504 loans		-		-		-		518		518		28,835		29,353
Commercial loans
Commercial other		157		-		-		10		167		49,165		49,332
Commercial real estate		444		283		-		2,154		2,881		388,190		391,071
Commercial real estate construction		356		-		-		-		356		24,759		25,115
Residential mortgage loans		2,307		1,078		-		2,224		5,609		258,914		264,523
Consumer loans
Home equity		130		3		-		590		723		44,319		45,042
Consumer other		1		-		-		-		1		32,014		32,015
Total loans held for investment	$	4,548	$	1,820	$	-	$	7,260	$	13,628	$	862,216	$	875,844
SBA loans held for sale		-		-		-		-		-		13,114		13,114
Total loans	$	4,548	$	1,820	$	-	$	7,260	$	13,628	$	875,330	$	888,958

(1)

At December 31, 2015, nonaccrual loans included $293 thousand of TDRs and $288 thousand of loans guaranteed by the SBA. The remaining $3.0 million of TDRs are in accrual status because they are performing in accordance with their restructured terms, and have been for at least six months.


	December 31, 2014
(In thousands)	30-59 days past due		60-89 days past due		90+ days and still accruing		Nonaccrual (1)		Total past due		Current		Total loans
SBA loans held for investment	$	1,093	$	147	$	161	$	3,348	$	4,749	$	35,652	$	40,401
SBA 504 loans		1,639		-		-		2,109		3,748		30,574		34,322
Commercial loans
Commercial other		-		-		-		1,129		1,129		39,478		40,607
Commercial real estate		2,812		-		7		3,592		6,411		333,282		339,693
Commercial real estate construction		-		-		-		-		-		21,649		21,649
Residential mortgage loans		2,887		658		722		645		4,912		215,966		220,878
Consumer loans
Home equity		639		213		-		543		1,395		40,056		41,451
Consumer other		-		6		-		2		8		17,637		17,645
Total loans held for investment	$	9,070	$	1,024	$	890	$	11,368	$	22,352	$	734,294	$	756,646
SBA loans held for sale		-		-		-		-		-		5,179		5,179
Total loans	$	9,070	$	1,024	$	890	$	11,368	$	22,352	$	739,473	$	761,825

(1)

At December 31, 2014, nonaccrual loans included $3.0 million of TDRs and $1.6 million of loans guaranteed by the SBA. The remaining $3.5 million of TDRs are in accrual status because they are performing in accordance with their restructured terms, and have been for at least six months.

Impaired Loans with Associated Allowance Amount

	December 31, 2015
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	961	$	518	$	-
SBA 504 loans		2,226		2,226		-
Commercial loans
Commercial real estate		1,365		1,366		-
Total commercial loans		1,365		1,366		-
Total impaired loans with no related allowance		4,552		4,110		-

With an allowance:
SBA loans held for investment (1)		2,203		1,389		705
Commercial loans
Commercial other		33		10		10
Commercial real estate		1,664		1,664		127
Total commercial loans		1,697		1,674		137
Total impaired loans with a related allowance		3,900		3,063		842

Total individually evaluated impaired loans:
SBA loans held for investment (1)		3,164		1,907		705
SBA 504 loans		2,226		2,226		-
Commercial loans
Commercial other		33		10		10
Commercial real estate		3,029		3,030		127
Total commercial loans		3,062		3,040		137
Total individually evaluated impaired loans	$	8,452	$	7,173	$	842

(1)

Balances are reduced by amount guaranteed by the SBA of $288 thousand at December 31, 2015.


	December 31, 2014
(In thousands)	Unpaid principal balance		Recorded investment		Specific reserves
With no related allowance:
SBA loans held for investment (1)	$	1,719	$	1,093	$	-
SBA 504 loans		2,202		2,202		-
Commercial loans
Commercial other		878		877		-
Commercial real estate		2,017		1,927		-
Total commercial loans		2,895		2,804		-
Total impaired loans with no related allowance		6,816		6,099		-

With an allowance:
SBA loans held for investment (1)		1,521		1,127		502
SBA 504 loans		1,676		1,676		510
Commercial loans
Commercial other		364		252		41
Commercial real estate		3,003		3,003		108
Total commercial loans		3,367		3,255		149
Total impaired loans with a related allowance		6,564		6,058		1,161

Total individually evaluated impaired loans:
SBA loans held for investment (1)		3,240		2,220		502
SBA 504 loans		3,878		3,878		510
Commercial loans
Commercial other		1,242		1,129		41
Commercial real estate		5,020		4,930		108
Total commercial loans		6,262		6,059		149
Total individually evaluated impaired loans	$	13,380	$	12,157	$	1,161

(1)

Balances are reduced by amount guaranteed by the SBA of $1.6 million at December 31, 2014.

Average Recorded Investments in Impaired Loans and Related Amount of Interest Recognized


	For the years ended December 31,
	2015				2014
(In thousands)	Average recorded investment		Interest income recognized on impaired loans		Average recorded investment		Interest income recognized on impaired loans
SBA loans held for investment (1)	$	1,887	$	90	$	3,028	$	256
SBA 504 loans		2,488		106		3,042		109
Commercial loans
Commercial other		960		102		323		2
Commercial real estate		5,100		64		6,336		231
Commercial real estate construction		-		-		73		23
Total	$	10,435	$	362	$	12,802	$	621

(1)

Balances are reduced by the average amount guaranteed by the SBA of $416 thousand and $1.2 million for years ended December 31, 2015 and 2014, respectively.

Schedule of Servicing Assets


	For the years ended December 31,
(In thousands)	2015		2014
Balance, beginning of year	$	753	$	437
Servicing assets capitalized		927		483
Amortization of expense		(291)		(167)
Provision for loss in fair value		-		-
Balance, end of year	$	1,389	$	753

Schedule of Related Party Transactions


(In thousands)	December 31, 2015		December 31, 2014
Balance, beginning of year	$	26,452	$	18,327
New loans and advances		15,809		9,254
Loan repayments		(4,867)		(1,129)
Balance, end of year	$	37,394	$	26,452