Loans and allowance for credit losses (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of Financing Receivables [Table Text Block]

The following table provides information about the principal classes of the loan portfolio at June 30, 2014 and December 31, 2013. At December 31, 2013, $3.5 million of nonaccrual construction loans were classified as held for sale. During the first quarter of 2014, these loans held for sale were reclassified to loans.

(Dollars in thousands)	June 30, 2014		December 31, 2013
Construction	$	68,348	$	64,591
Residential real estate		277,184		274,857
Commercial real estate		297,762		304,605
Commercial		56,492		57,195
Consumer		9,873		10,671
Total loans		709,659		711,919
Allowance for credit losses		(9,076)		(10,725)
Total loans, net	$	700,583	$	701,194

Allowance for Credit Losses on Loans Receivables Additional Information [Table Text Block]

The following tables include impairment information relating to loans and the allowance for credit losses as of June 30, 2014 and December 31, 2013.

(Dollars in thousands)	Construction		Residential real estate		Commercial real estate		Commercial		Consumer		Unallocated		Total
June 30, 2014
Loans individually evaluated for impairment	$	11,878	$	19,232	$	9,126	$	317	$	25	$	-	$	40,578
Loans collectively evaluated for impairment		56,470		257,952		288,636		56,175		9,848		-		669,081
Total loans	$	68,348	$	277,184	$	297,762	$	56,492	$	9,873	$	-	$	709,659

Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	201	$	310	$	24	$	65	$	25	$	-	$	625
Loans collectively evaluated for impairment		2,047		2,044		2,628		793		281		658		8,451
Total allowance for credit losses	$	2,248	$	2,354	$	2,652	$	858	$	306	$	658	$	9,076

(Dollars in thousands)	Construction		Residential real estate		Commercial real estate		Commercial		Consumer		Unallocated		Total
December 31, 2013
Loans individually evaluated for impairment	$	5,569	$	19,748	$	14,462	$	887	$	48	$	-	$	40,714
Loans collectively evaluated for impairment		59,022		255,109		290,143		56,308		10,623		-		671,205
Total loans	$	64,591	$	274,857	$	304,605	$	57,195	$	10,671	$	-	$	711,919

Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	204	$	285	$	44	$	245	$	5	$	-	$	783
Loans collectively evaluated for impairment		1,756		3,569		2,985		1,021		238		373		9,942
Total allowance for credit losses	$	1,960	$	3,854	$	3,029	$	1,266	$	243	$	373	$	10,725

Impaired Financing Receivables [Table Text Block]

The following tables provide information on impaired loans and any related allowance by loan class as of June 30, 2014 and December 31, 2013. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken.

(Dollars in thousands)	Unpaid principal balance		Recorded investment with no allowance		Recorded investment with an allowance		Related allowance		Quarter-to- date average recorded investment		Year-to-date average recorded investment
June 30, 2014
Impaired nonaccrual loans:
Construction	$	12,263	$	7,780	$	200	$	200	$	8,040	$	8,131
Residential real estate		3,915		2,780		257		125		3,299		4,719
Commercial real estate		5,801		2,927		946		18		5,034		5,098
Commercial		472		196		65		65		598		642
Consumer		30		-		25		25		28		21
Total		22,481		13,683		1,493		433		16,999		18,611

Impaired accruing TDRs:
Construction		3,898		3,809		89		1		2,157		1,749
Residential real estate		16,195		12,761		3,434		185		16,080		16,102
Commercial real estate		5,253		4,480		773		6		7,023		7,509
Commercial		56		56		-		-		59		66
Consumer		-		-		-		-		-		-
Total		25,402		21,106		4,296		192		25,319		25,426

Total impaired loans:
Construction		16,161		11,589		289		201		10,197		9,880
Residential real estate		20,110		15,541		3,691		310		19,379		20,821
Commercial real estate		11,054		7,407		1,719		24		12,057		12,607
Commercial		528		252		65		65		657		708
Consumer		30		-		25		25		28		21
Total	$	47,883	$	34,789	$	5,789	$	625	$	42,318	$	44,037

(Dollars in thousands)	Unpaid principal balance		Recorded investment with no allowance		Recorded investment with an allowance		Related allowance		Quarter-to- date average recorded investment		Year-to-date average recorded investment
December 31, 2013
Impaired nonaccrual loans:
Construction	$	6,787	$	3,709	$	240	$	203	$	5,563	$	7,270
Residential real estate		7,692		3,862		1,304		225		5,094		10,240
Commercial real estate		5,218		4,261		410		38		3,917		7,829
Commercial		1,801		547		245		245		740		619
Consumer		56		43		5		5		49		48
Total		21,554		12,422		2,204		716		15,363		26,006

Impaired accruing TDRs:
Construction		1,620		1,527		93		1		1,759		14,405
Residential real estate		14,582		13,177		1,405		60		15,387		11,101
Commercial real estate		9,791		9,006		785		6		10,201		13,308
Commercial		95		95		-		-		98		105
Consumer		-		-		-		-		-		-
Total		26,088		23,805		2,283		67		27,445		38,919

Total impaired loans:
Construction		8,407		5,236		333		204		7,322		21,675
Residential real estate		22,274		17,039		2,709		285		20,481		21,341
Commercial real estate		15,009		13,267		1,195		44		14,118		21,137
Commercial		1,896		642		245		245		838		724
Consumer		56		43		5		5		49		48
Total	$	47,642	$	36,227	$	4,487	$	783	$	42,808	$	64,925

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following tables provide information on loans that were modified and considered TDRs during the six months ended June 30, 2014 and June 30, 2013.

(Dollars in thousands)	Number of contracts		Premodification outstanding recorded investment		Postmodification outstanding recorded investment		Related allowance
TDRs:
For the six months ended June 30, 2014
Construction		-	$	-	$	-	$	-
Residential real estate		-		-		-		-
Commercial real estate		-		-		-		-
Commercial		-		-		-		-
Consumer		-		-		-		-
Total		-	$	-	$	-	$	-

For the six months ended June 30, 2013
Construction		2	$	123	$	123	$	-
Residential real estate		3		783		798		37
Commercial real estate		1		474		474		-
Commercial		-		-		-		-
Consumer		-		-		-		-
Total		6	$	1,380	$	1,395	$	37

Troubled Debt Restructurings that Defaulted on Financing Receivables [Table Text Block]

The following tables provide information on TDRs that defaulted during the six months ended June 30, 2014 and June 30, 2013. Generally, a loan is considered in default when principal or interest is past due 90 days or more.

(Dollars in thousands)	Number of contracts		Recorded investment		Related allowance
TDRs that subsequently defaulted (1):
For the six months ended June 30, 2014
Construction		-	$	-	$	-
Residential real estate		-		-		-
Commercial real estate		-		-		-
Commercial		-		-		-
Consumer		-		-		-
Total		-	$	-	$	-

TDRs that subsequently defaulted (2):
For the six months ended June 30, 2013
Construction		-	$	-	$	-
Residential real estate		4		1,563		-
Commercial real estate		1		1,741		74
Commercial		-		-		-
Consumer		-		-		-
Total		5	$	3,304	$	74

(1) These loans were classified as TDRs during 2013.

(2) These loans were classified as TDRs during 2012.

Financing Receivable Credit Quality Indicators [Table Text Block]

The following tables provide information on loan risk ratings as of June 30, 2014 and December 31, 2013.

(Dollars in thousands)	Pass/Performing		Special mention		Substandard		Doubtful		Total
June 30, 2014
Construction	$	37,020	$	17,573	$	13,755	$	-	$	68,348
Residential real estate		242,869		23,320		10,995		-		277,184
Commercial real estate		255,486		29,555		12,721		-		297,762
Commercial		52,063		2,768		1,571		90		56,492
Consumer		9,687		161		25		-		9,873
Total	$	597,125	$	73,377	$	39,067	$	90	$	709,659

(Dollars in thousands)	Pass/Performing		Special mention		Substandard		Doubtful		Total
December 31, 2013
Construction	$	39,268	$	15,884	$	9,439	$	-	$	64,591
Residential real estate		235,054		22,638		17,114		51		274,857
Commercial real estate		255,280		30,105		19,210		10		304,605
Commercial		52,032		3,691		972		500		57,195
Consumer		10,451		48		172		-		10,671
Total	$	592,085	$	72,366	$	46,907	$	561	$	711,919

Past Due Financing Receivables [Table Text Block]

The following tables provide information on the aging of the loan portfolio as of June 30, 2014 and December 31, 2013.

	Accruing
(Dollars in thousands)	Current			30-59 days past due			60-89 days past due			90 days or more past due			Total past due			Nonaccrual			Total
June 30, 2014
Construction	$	60,108		$	106		$	154		$	-		$	260		$	7,980		$	68,348
Residential real estate		271,171			1,526			1,450			-			2,976			3,037			277,184
Commercial real estate		290,697			1,885			1,307			-			3,192			3,873			297,762
Commercial		55,071			1,146			9			5			1,160			261			56,492
Consumer		9,709			40			99			-			139			25			9,873
Total	$	686,756		$	4,703		$	3,019		$	5		$	7,727		$	15,176		$	709,659
Percent of total loans		96.8	%		0.7	%		0.4	%		-	%		1.1	%		2.1	%

	Accruing
(Dollars in thousands)	Current			30-59 days past due			60-89 days past due			90 days or more past due			Total past due			Nonaccrual			Total
December 31, 2013
Construction	$	60,642		$	-		$	-		$	-		$	-		$	3,949		$	64,591
Residential real estate		265,182			2,765			1,724			20			4,509			5,166			274,857
Commercial real estate		299,295			639			-			-			639			4,671			304,605
Commercial		55,576			330			247			250			827			792			57,195
Consumer		10,469			23			131			-			154			48			10,671
Total	$	691,164		$	3,757		$	2,102		$	270		$	6,129		$	14,626		$	711,919
Percent of total loans		97.1	%		0.5	%		0.3	%		-	%		0.8	%		2.1	%

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the three months ended June 30, 2014 and 2013. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes.

(Dollars in thousands)	Construction		Residential real estate		Commercial real estate		Commercial		Consumer		Unallocated		Total
For the three months ended June 30, 2014
Allowance for credit losses:
Beginning balance	$	1,997	$	2,086	$	4,584	$	677	$	308	$	417	$	10,069

Charge-offs		(224)		(315)		(1,523)		(95)		(20)		-		(2,177)
Recoveries		1		63		7		157		6		-		234
Net charge-offs		(223)		(252)		(1,516)		62		(14)		-		(1,943)

Provision		474		520		(416)		119		12		241		950
Ending balance	$	2,248	$	2,354	$	2,652	$	858	$	306	$	658	$	9,076

(Dollars in thousands)	Construction		Residential real estate		Commercial real estate		Commercial		Consumer		Unallocated		Total
For the three months ended June 30, 2013
Allowance for credit losses:
Beginning balance	$	4,116	$	4,864	$	4,374	$	1,760	$	330	$	291	$	15,735

Charge-offs		(802)		(1,096)		(872)		(136)		(13)		-		(2,919)
Recoveries		1		59		90		50		7		-		207
Net charge-offs		(801)		(1,037)		(782)		(86)		(6)		-		(2,712)

Provision		1,031		432		1,922		(458)		(23)		(204)		2,700
Ending balance	$	4,346	$	4,259	$	5,514	$	1,216	$	301	$	87	$	15,723

The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the six months ended June 30, 2014 and 2013.

(Dollars in thousands)	Construction		Residential real estate		Commercial real estate		Commercial		Consumer		Unallocated		Total
For the six months ended June 30, 2014
Allowance for credit losses:
Beginning balance	$	1,960	$	3,854	$	3,029	$	1,266	$	243	$	373	$	10,725

Charge-offs		(241)		(987)		(1,613)		(937)		(147)		-		(3,925)
Recoveries		11		106		13		207		14		-		351
Net charge-offs		(230)		(881)		(1,600)		(730)		(133)		-		(3,574)

Provision		518		(619)		1,223		322		196		285		1,925
Ending balance	$	2,248	$	2,354	$	2,652	$	858	$	306	$	658	$	9,076

(Dollars in thousands)	Construction		Residential real estate		Commercial real estate		Commercial		Consumer		Unallocated		Total
For the six months ended June 30, 2013
Allowance for credit losses:
Beginning balance	$	4,387	$	5,194	$	4,134	$	1,682	$	407	$	187	$	15,991

Charge-offs		(1,509)		(1,889)		(1,947)		(223)		(62)		-		(5,630)
Recoveries		2		298		93		102		17		-		512
Net charge-offs		(1,507)		(1,591)		(1,854)		(121)		(45)		-		(5,118)

Provision		1,466		656		3,234		(345)		(61)		(100)		4,850
Ending balance	$	4,346	$	4,259	$	5,514	$	1,216	$	301	$	87	$	15,723