LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Financing Receivables [Table Text Block]

The following table provides information about the principal classes of the loan portfolio at December 31, 2015 and 2014.

(Dollars in thousands)	2015		2014
Construction	$	85,632	$	69,157
Residential real estate		307,063		273,336
Commercial real estate		330,253		305,788
Commercial		64,911		52,671
Consumer		7,255		9,794
Total loans		795,114		710,746
Allowance for credit losses		(8,316)		(7,695)
Total loans, net	$	786,798	$	703,051

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 December 31, 2015 and 2014.

(Dollars in thousands)	Construction		Residential real estate		Commercial real estate		Commercial		Consumer		Unallocated		Total
December 31, 2015
Loans individually evaluated for impairment	$	11,598	$	7,945	$	7,762	$	161	$	122	$	-	$	27,588
Loans collectively evaluated for impairment		74,034		299,118		322,491		64,750		7,133		-		767,526
Total loans	$	85,632	$	307,063	$	330,253	$	64,911	$	7,255	$	-	$	795,114

Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	619	$	435	$	340	$	-	$	7	$	-	$	1,401
Loans collectively evaluated for impairment		1,027		1,746		2,659		558		149		776		6,915
Total allowance for credit losses	$	1,646	$	2,181	$	2,999	$	558	$	156	$	776	$	8,316

(Dollars in thousands)	Construction		Residential real estate		Commercial real estate		Commercial		Consumer		Unallocated		Total
December 31, 2014
Loans individually evaluated for impairment	$	10,067	$	10,403	$	9,359	$	188	$	124	$	-	$	30,141
Loans collectively evaluated for impairment		59,090		262,933		296,429		52,483		9,670		-		680,605
Total loans	$	69,157	$	273,336	$	305,788	$	52,671	$	9,794	$	-	$	710,746

Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	41	$	1,099	$	129	$	1	$	3	$	-	$	1,273
Loans collectively evaluated for impairment		1,262		1,735		2,250		447		226		502		6,422
Total allowance for credit losses	$	1,303	$	2,834	$	2,379	$	448	$	229	$	502	$	7,695

Impaired Financing Receivables [Table Text Block]

The following tables provide information on impaired loans and any related allowance by loan class as of December 31, 2015 and 2014. 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		Average recorded investment		Interest income recognized
December 31, 2015
Impaired nonaccrual loans:
Construction	$	11,850	$	4,647	$	2,882	$	588	$	8,176	$	-
Residential real estate		2,563		1,773		487		208		2,767		-
Commercial real estate		2,988		1,813		209		9		2,159		-
Commercial		175		161		-		-		126		-
Consumer		128		98		23		7		122		-
Total		17,704		8,492		3,601		812		13,350		-

Impaired accruing TDRs:
Construction		4,069		3,266		803		31		4,080		84
Residential real estate		5,686		2,380		3,306		227		6,947		312
Commercial real estate		5,740		1,702		4,038		331		5,943		254
Commercial		-		-		-		-		27		1
Consumer		-		-		-		-		-		-
Total		15,495		7,348		8,147		589		16,997		651

Total impaired loans:
Construction		15,919		7,913		3,685		619		12,256		84
Residential real estate		8,249		4,153		3,793		435		9,714		312
Commercial real estate		8,728		3,515		4,247		340		8,102		254
Commercial		175		161		-		-		153		1
Consumer		128		98		23		7		122		-
Total	$	33,199	$	15,840	$	11,748	$	1,401	$	30,347	$	651

(Dollars in thousands)	Unpaid principal balance		Recorded investment with no allowance		Recorded investment with an allowance		Related allowance		Average recorded investment		Interest income recognized
December 31, 2014
Impaired nonaccrual loans:
Construction	$	9,277	$	6,045	$	-	$	-	$	7,739	$	-
Residential real estate		4,664		1,053		2,982		799		3,322		-
Commercial real estate		4,703		2,842		280		100		3,889		-
Commercial		1,372		136		5		1		437		-
Consumer		129		99		25		3		79		-
Total		20,145		10,175		3,292		903		15,466		-

Impaired accruing TDRs:
Construction		4,022		3,196		826		41		2,743		68
Residential real estate		6,368		668		5,700		300		15,123		372
Commercial real estate		6,237		4,774		1,463		29		6,574		254
Commercial		47		47		-		-		55		2
Consumer		-		-		-		-		-		-
Total		16,674		8,685		7,989		370		24,495		696

Total impaired loans:
Construction		13,299		9,241		826		41		10,482		68
Residential real estate		11,032		1,721		8,682		1,099		18,445		372
Commercial real estate		10,940		7,616		1,743		129		10,463		254
Commercial		1,419		183		5		1		492		2
Consumer		129		99		25		3		79		-
Total	$	36,819	$	18,860	$	11,281	$	1,273	$	39,961	$	696

Schedule of Financing Receivables Accruing and Non Accrual of Troubled Debt restructurings [Table Text Block]

The following tables provide a roll-forward for troubled debt restructurings as of December 31, 2015 and December 31, 2014.

(Dollars in thousands)	1/1/15 TDR Balance		New TDRs		Disbursements (Payments)		Charge offs		Reclassification/ Transfers In/(Out)		Payoffs		12/31/15 TDR Balance		Related Allowance
For the year ended 12/31/2015
Accruing TDRs
Construction	$	4,022	$	-	$	(95)	$	-	$	142	$	-	$	4,069	$	31
Residential Real Estate		6,368		1,837		(1,195)		-		(1,324)		-		5,686		227
Commercial Real Estate		6,237		-		(497)		-		-		-		5,740		331
Commercial		47		-		(6)		-		(41)		-		-		-
Consumer		-		-		-		-		-		-		-		-
Total	$	16,674	$	1,837	$	(1,793)	$	-	$	(1,223)	$	-	$	15,495	$	589

Nonaccrual TDRs
Construction	$	3,321	$	-	$	(214)	$	(1,058)	$	2,911	$	-	$	4,960	$	588
Residential Real Estate		3,382		-		(26)		-		(2,911)		-		445		141
Commercial Real Estate		346		-		(4)		(40)		(302)		-		-		-
Commercial		-		-		-		-		-		-		-		-
Consumer		25		-		(2)		-		-		-		23		7
Total	$	7,074	$	-	$	(246)	$	(1,098)	$	(302)	$	-	$	5,428	$	736

Total TDRs	$	23,748	$	1,837	$	(2,039)	$	(1,098)	$	*(1,525)	$	-	$	20,923	$	1,325

(Dollars in thousands)	1/1/14 TDR Balance		New TDRs		Disbursements (Payments)		Charge offs		Reclassification/ Transfers In/(Out)		Payoffs		12/31/14 TDR Balance		Related Allowance
For the year ended 12/31/2014
Accruing TDRs
Construction	$	1,620	$	-	$	(186)	$	(538)	$	3,396	$	(270)	$	4,022	$	41
Residential Real Estate		14,582		-		(1,150)		(3,614)		(3,136)		(314)		6,368		300
Commercial Real Estate		9,791		-		(99)		(549)		(1,805)		(1,101)		6,237		29
Commercial		95		-		(24)		-		-		(24)		47		-
Consumer		-		-		-		-		-		-		-		-
Total	$	26,088	$	-	$	(1,459)	$	(4,701)	$	(1,545)	$	(1,709)	$	16,674	$	370

Nonaccrual TDRs
Construction	$	3,561	$	-	$	(12)	$	(235)	$	7	$	-	$	3,321	$	-
Residential Real Estate		1,884		-		(50)		(203)		1,874		(123)		3,382		724
Commercial Real Estate		842		-		(95)		(65)		(336)		-		346		100
Commercial		-		-		-		-		-		-		-		-
Consumer		26		-		(1)		-		-		-		25		3
Total	$	6,313	$	-	$	(158)	$	(503)	$	1,545	$	(123)	$	7,074	$	827

Total TDRs	$	32,401	$	-	$	(1,617)	$	(5,204)	$	-	$	(1,832)	$	23,748	$	1,197

* $1.3 million in subsequently modified TDRs were transferred from accruing TDR classification to accrual status during the third quarter of 2015, thus removing the TDR designation. In accordance with ASC 310-40-50-2 “Creditor Disclosure of Troubled Debt Restructurings,” an impaired loan that has been subsequently restructured in a troubled debt restructuring involving modification of terms need not be included in the disclosures in years after the restructuring if both of the following conditions exist: a) the subsequent restructuring agreement specifies an interest rate equal to or greater than the rate that the creditor was willing to accept at the time of the restructuring for a new loan with comparable risk; and b) the loan is not impaired based on the terms specified by the restructuring agreement. During the period ended December 31, 2015, three loans totaling $1.3 million met the conditions stipulated in

ASC 310-40-50-2, and after a careful evaluation of well supported documentation by management, these loans were upgraded to accrual status.

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following tables provide information on loans that were modified and considered TDRs during 2015 and 2014.

(Dollars in thousands)	Number of contracts		Premodification outstanding recorded investment		Postmodification outstanding recorded investment		Related allowance
TDRs:
For the year ended December 31, 2015
Construction		-	$	-	$	-	$	-
Residential real estate		10		1,835		1,837		19
Commercial real estate		1		2,262		2,347		-
Commercial		-		-		-		-
Consumer		-		-		-		-
Total		11	$	4,097	$	4,184	$	19

For the year ended December 31, 2014
Construction		-	$	-	$	-	$	-
Residential real estate		-		-		-		-
Commercial real estate		-		-		-		-
Commercial		-		-		-		-
Consumer		-		-		-		-
Total		-	$	-	$	-	$	-

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

The following tables provide information on TDRs that defaulted during 2015 and 2014. 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:
For the year ended December 31, 2015
Construction		-	$	-	$	-
Residential real estate		-		-		-
Commercial real estate		2		279		-
Commercial		-		-		-
Consumer		-		-		-
Total		2	$	279	$	-

TDRs that subsequently defaulted:
For the year ended December 31, 2014
Construction		-	$	-	$	-
Residential real estate		-		-		-
Commercial real estate		-		-		-
Commercial		-		-		-
Consumer		-		-		-
Total		-	$	-	$	-

Financing Receivable Credit Quality Indicators [Table Text Block]

The following tables provide information on loan risk ratings as of December 31, 2015 and 2014.

(Dollars in thousands)	Pass/Performing		Special mention		Substandard		Doubtful		Total
December 31, 2015
Construction	$	70,214	$	3,903	$	11,515	$	-	$	85,632
Residential real estate		290,857		8,837		7,369		-		307,063
Commercial real estate		302,438		18,699		9,116		-		330,253
Commercial		63,628		1,075		208		-		64,911
Consumer		7,107		26		122		-		7,255
Total	$	734,244	$	32,540	$	28,330	$	-	$	795,114

(Dollars in thousands)	Pass/Performing		Special mention		Substandard		Doubtful		Total
December 31, 2014
Construction	$	52,241	$	5,643	$	11,273	$	-	$	69,157
Residential real estate		252,643		6,675		14,018		-		273,336
Commercial real estate		275,573		20,040		10,175		-		305,788
Commercial		50,583		1,885		114		89		52,671
Consumer		9,658		13		123		-		9,794
Total	$	640,698	$	34,256	$	35,703	$	89	$	710,746

Past Due Financing Receivables [Table Text Block]

The following tables provide information on the aging of the loan portfolio as of December 31, 2015 and 2014.

	Accruing
(Dollars in thousands)	Current			30-59 days past due			60-89 days past due			90 days or more past due			Total past due			Non- accrual			Total
December 31, 2015
Construction	$	78,082		$	21		$	-		$	-		$	21		$	7,529		$	85,632
Residential real estate		300,563			2,139			2,102			-			4,241			2,259			307,063
Commercial real estate		327,370			-			861			-			861			2,022			330,253
Commercial		64,670			49			31			-			80			161			64,911
Consumer		7,107			13			6			7			26			122			7,255
Total	$	777,792		$	2,222		$	3,000		$	7		$	5,229		$	12,093		$	795,114
Percent of total loans		97.8	%		0.3	%		0.4	%		-	%		0.7	%		1.5	%		100	%

	Accruing
(Dollars in thousands)	Current			30-59 days past due			60-89 days past due			90 days or more past due			Total past due			Non- accrual			Total
December 31, 2014
Construction	$	61,325		$	1,786		$	-		$	-		$	1,786		$	6,046		$	69,157
Residential real estate		263,165			3,351			2,702			83			6,136			4,035			273,336
Commercial real estate		301,695			459			513			-			972			3,121			305,788
Commercial		52,352			47			131			-			178			141			52,671
Consumer		9,619			11			37			4			52			123			9,794
Total	$	688,156		$	5,654		$	3,383		$	87		$	9,124		$	13,466		$	710,746
Percent of total loans		96.8	%		0.8	%		0.5	%		-	%		1.3	%		1.9	%		100	%

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

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
2015
Allowance for credit losses:
Beginning balance	$	1,303	$	2,834	$	2,379	$	448	$	229	$	502	$	7,695

Charge-offs		(1,058)		(283)		(920)		(396)		(67)		-		(2,724)
Recoveries		125		398		379		319		49		-		1,270
Net charge-offs		(933)		115		(541)		(77)		(18)		-		(1,454)

Provision		1,276		(768)		1,161		187		(55)		274		2,075
Ending balance	$	1,646	$	2,181	$	2,999	$	558	$	156	$	776	$	8,316

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

Charge-offs		(725)		(2,407)		(1,648)		(2,389)		(163)		-		(7,332)
Recoveries		149		376		58		341		28		-		952
Net charge-offs		(576)		(2,031)		(1,590)		(2,048)		(135)		-		(6,380)

Provision		(81)		1,011		940		1,230		121		129		3,350
Ending balance	$	1,303	$	2,834	$	2,379	$	448	$	229	$	502	$	7,695