Loans (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Components of Loans Receivable in Consolidated Balance Sheets

The components of loans receivable in the consolidated balance sheets as of June 30, 2015, and December 31, 2014, were as follows:

	June 30, 2015			June 30, 2015			December 31, 2014			December 31, 2014
	Amount			Percent			Amount			Percent
	(Dollars in thousands, except percentages)
Real estate loans
One-to-four family (closed end) first mortgages	$	146,285			26.1	%	$	150,551			27.6	%
Second mortgages (closed end)		2,046			0.4	%		2,102			0.4	%
Home equity lines of credit		33,803			6.0	%		34,238			6.3	%
Multi-family		22,580			4.0	%		25,991			4.8	%
Construction		27,072			4.8	%		24,241			4.4	%
Land		24,521			4.4	%		26,654			4.9	%
Farmland		41,224			7.4	%		42,874			7.8	%
Non-residential real estate		160,039			28.5	%		150,596			27.6	%
Total mortgage loans		457,570			81.6	%		457,247			83.8	%
Consumer loans		16,011			2.9	%		14,438			2.6	%
Commercial loans		87,148			15.5	%		74,154			13.6	%
Total other loans		103,159			18.4	%		88,592			16.2	%
Total loans, gross		560,729			100.0	%		545,839			100.0	%
Deferred loan cost, net of income		(389	)					(286	)
Less allowance for loan losses		(5,534	)					(6,289	)
Total loans	$	554,806					$	539,264

Non-accrual Loans

The following table indicates the type and level of non-accrual loans at the periods indicated below:

	June 30, 2015		December 31, 2014		June 30, 2014
	(Dollars in Thousands)
One-to-four family mortgages	$	1,456		1,501		524
Home equity line of credit		48		—		29
Multi-family		1,827		95		—
Land		1,982		215		1,217
Non-residential real estate		520		1,159		6,520
Farmland		209		115		13
Consumer loans		—		—		1
Commercial loans		1,014		90		431
Total non-accrual loans	$	7,056		3,175		8,735

Allowance for Loan Loss Account by Loan

The following table provides a detail of the Company’s activity in the allowance for loan loss account by loan type for the six month period ended June 30, 2015:

Six month period ended June 30, 2015	Balance 12/31/2014		Charge off 2015			Recovery 2015		General Provision 2015			Specific Provision 2015			Ending Balance 6/30/2015
One-to-four family mortgages	$	1,198		(88	)		21		61			(194	)		998
Home equity line of credit		181		(92	)		3		89			15			196
Junior liens		14		—			2		(2	)		(4	)		10
Multi-family		85		—			—		—			(12	)		73
Construction		146		—			—		—			20			166
Land		1,123		(631	)		—		84			597			1,173
Non-residential real estate		2,083		(222	)		2		(73	)		(150	)		1,640
Farmland		461		—			—		—			(94	)		367
Consumer loans		494		(177	)		73		91			(134	)		347
Commercial loans		504		(147	)		16		222			(31	)		564
	$	6,289		(1,357	)		117		472			13			5,534

The following table provides a detail of the Company’s activity in the allowance for loan loss account by loan type for the year ended December 31, 2014:

Year ended December 31, 2014	Balance 12/31/2013		Charge off 2014			Recovery 2014		General Provision 2014			Specific Provision 2014			Ending Balance 12/31/2014
One-to-four family mortgages	$	2,048		(233	)		24		(304	)		(337	)		1,198
Home equity line of credit		218		(83	)		3		(37	)		80			181
Junior liens		39		—			9		(25	)		(9	)		14
Multi-family		466		—			—		(381	)		—			85
Construction		88		(139	)		9		58			130			146
Land		1,305		—			—		(74	)		(108	)		1,123
Non-residential real estate		2,719		(66	)		864		(1,368	)		(66	)		2,083
Farmland		510		—			—		542			(591	)		461
Consumer loans		541		(415	)		109		(13	)		272			494
Commercial loans		748		(296	)		94		(244	)		202			504
	$	8,682		(1,232	)		1,112		(1,846	)		(427	)		6,289

Loan Balances by Loan Classification Allocated Between Past Due Performing and Non-performing

The table below presents loan balances at June 30, 2015, by loan classification allocated between past due, performing and non-performing:

			30 – 89						Impaired Loans
	Currently		Days		Non-accrual		Special		Currently Performing
June 30, 2015	Performing		Past Due		Loans		Mention		Substandard		Doubtful		Total
	(Dollars in Thousands)
One-to-four family mortgages	$	142,987		398		1,456		42		1,402		—		146,285
Home equity line of credit		33,113		69		48		—		573		—		33,803
Junior liens		1,992		—		—		38		16		—		2,046
Multi-family		17,818		140		1,827		1,655		1,140		—		22,580
Construction		26,972		100		—		—		—		—		27,072
Land		14,425		—		1,982		44		8,070		—		24,521
Non-residential real estate		149,565		162		520		640		9,152		—		160,039
Farmland		40,143		168		209		681		23		—		41,224
Consumer loans		15,790		13		—		14		194		—		16,011
Commercial loans		84,772		126		1,014		169		1,067		—		87,148
Total	$	527,577		1,176		7,056		3,283		21,637		—		560,729

The table below presents loan balances at December 31, 2014, by loan classification allocated between past due, performing and non-performing:

			30 - 89						Impaired Loans
	Currently		Days		Non-accrual		Special		Currently Performing
	Performing		Past Due		Loans		Mention		Substandard		Doubtful		Total
One-to-four family mortgages	$	145,372		757		1,501		203		2,718		—		150,551
Home equity line of credit		33,338		143		—		—		757		—		34,238
Junior liens		2,025		—		—		40		37		—		2,102
Multi-family		20,066		—		95		2,904		2,926		—		25,991
Construction		24,241		—		—		—		—		—		24,241
Land		14,674		654		215		362		10,749		—		26,654
Non-residential real estate		131,854		—		1,159		5,492		12,091		—		150,596
Farmland		40,057		64		115		516		2,122		—		42,874
Consumer loans		14,104		14		—		21		299		—		14,438
Commercial loans		71,191		55		90		325		2,493		—		74,154
Total	$	496,922		1,687		3,175		9,863		34,192		—		545,839

Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Impairment Method

The following table presents the balance in the allowance for loan losses and the recorded investment in loans as of June 30, 2015, and December 31, 2014, by portfolio segment and based on the impairment method as of June 30, 2015, and December 31, 2014.

	Commercial		Land Development / Construction		Commercial Real Estate		Residential Real Estate		Consumer		Total
June 30, 2015:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	91		116		445		46		48	$	746
Collectively evaluated for impairment		473		1,223		1,635		1,158		299		4,788
Total ending allowance balance	$	564		1,339		2,080		1,204		347	$	5,534
Loans:
Loans individually evaluated for impairment	$	2,081		10,052		12,871		3,495		194	$	28,693
Loans collectively evaluated for impairment		85,067		41,541		210,972		178,639		15,817		532,036
Total ending loans balance	$	87,148		51,593		223,843		182,134		16,011	$	560,729
	Commercial		Land Development / Construction		Commercial Real Estate		Residential Real Estate		Consumer		Total
December 31, 2014:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—		663		738		51		62	$	1,514
Collectively evaluated for impairment		504		606		1,891		1,342		432		4,775
Total ending allowance balance	$	504		1,269		2,629		1,393		494	$	6,289
Loans:
Loans individually evaluated for impairment	$	2,583		10,964		18,508		5,013		299	$	37,367
Loans collectively evaluated for impairment		71,571		39,931		200,953		181,878		14,139		508,472
Total ending loans balance	$	74,154		50,895		219,461		186,891		14,438	$	545,839

Loans by Classification Type and Related Allowance Amounts

At June 30, 2015, December 31, 2014 and June 30, 2014, the Company’s specific reserve for impaired loans totaled $746,000, $1.5 million and $1.5 million respectively. Loans by classification type and the related allowance amounts at June 30, 2015, are as follows:

											Specific		Reserve
											Reserve		for
			Special		Impaired Loans						for		Performing
June 30, 2015	Pass		Mention		Substandard		Doubful		Total		Impairment		Loans
	(Dollars in Thousands)
One-to-four family mortgages	$	143,385		42		2,858		—		146,285		46		952
Home equity line of credit		33,182		—		621		—		33,803		—		196
Junior liens		1,992		38		16		—		2,046		—		10
Multi-family		17,958		1,655		2,967		—		22,580		—		73
Construction		27,072		—		—		—		27,072		—		166
Land		14,425		44		10,052		—		24,521		116		1,057
Non-residential real estate		149,727		640		9,672		—		160,039		445		1,195
Farmland		40,311		681		232		—		41,224		—		367
Consumer loans		15,803		14		194		—		16,011		48		299
Commercial loans		84,898		169		2,081		—		87,148		91		473
Total	$	528,753		3,283		28,693		—		560,729		746		4,788
Loans by classification type and the related valuation allowance amounts at December 31, 2014, are as follows:
			Special		Impaired Loans						Specific Allowance for		Allowance For Loans
	Pass		Mention		Substandard		Doubtful		Total		Impairment		Not Impaired
December 31, 2014
One-to-four family mortgages	$	146,129		203		4,219		—		150,551		51		1,147
Home equity line of credit		33,481		—		757		—		34,238		—		181
Junior lien		2,025		40		37		—		2,102		—		14
Multi-family		20,066		2,904		3,021		—		25,991		—		85
Construction		24,241		—		—		—		24,241		—		146
Land		15,328		362		10,964		—		26,654		663		460
Non-residential real estate		131,854		5,492		13,250		—		150,596		738		1,345
Farmland		40,121		516		2,237		—		42,874		—		461
Consumer loans		14,118		21		299		—		14,438		62		432
Commercial loans		71,246		325		2,583		—		74,154		—		504
Total	$	498,609		9,863		37,367		—		545,839		1,514		4,775

Impaired Loans by Classification Type

Impaired loans by classification type and the related valuation allowance amounts at June 30, 2015, were as follows:

							For the three month period ended
	At June 30, 2015						June 30, 2015
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
Impaired loans with no recorded reserve
One-to-four family mortgages	$	2,148		2,175		—		2,408		11
Home equity line of credit		621		621		—		693		—
Junior liens		16		16		—		18		—
Multi-family		2,967		2,967		—		2,982		34
Construction		—		—		—		—		—
Land		9,456		10,087		—		8,376		20
Farmland		232		232		—		237		—
Non-residential real estate		8,949		8,949		—		9,580		18
Consumer loans		3		3		—		5		—
Commercial loans		1,727		1,727		—		1,607		21
Total		26,119		26,777		—		25,906		104
Impaired loans with a specific allowance:
One-to-four family mortgages		710		710		46		712		—
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		—		—		—		—		—
Construction		—		—		—		—		—
Land		596		596		116		2,009		—
Farmland		—		—		—		—		—
Non-residential real estate		723		723		445		952		—
Consumer loans		191		191		48		185		—
Commercial loans		354		354		91		529		16
Total		2,574		2,574		746		4,387		16
Total impaired loans	$	28,693		29,351		746		30,293		120

Impaired loans by classification type and the related valuation allowance amounts at December 31, 2014, were as follows:

							For the year ended
	At December 31, 2014						December 31, 2014
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
Impaired loans with no specific allowance
One-to-four family mortgages	$	3,501		3,501		—		2,972		176
Home equity line of credit		757		757		—		690		35
Junior liens		37		37		—		39		2
Multi-family		3,021		3,021		—		1,342		190
Construction		—		—		—		29		—
Land		7,740		7,740		—		8,978		339
Non-residential real estate		12,057		12,057		—		8,672		669
Farmland		2,237		2,237				3,968		125
Consumer loans		51		51		—		36		3
Commercial loans		2,583		2,583		—		2,246		154
Total		31,984		31,984		—		28,972		1,693
Impaired loans with a specific allowance
One-to-four family mortgages	$	718		718		51		1,434		44
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		—		—		—		—		—
Construction		—		—		—		—		—
Land		3,224		4,737		663		3,418		160
Non-residential real estate		1,193		1,258		738		3,617		69
Farmland		—		—		—		619		—
Consumer loans		248		248		62		355		—
Commercial loans		—		—		—		100		—
Total		5,383		6,961		1,514		9,543		273
Total impaired loans	$	37,367		38,945		1,514		38,515		1,966

Summary of the Activity in Loans Classified as TDRs

A summary of the activity in loans classified as TDRs for the six month period ended June 30, 2015, is as follows:

	Balance at 12/31/14		New TDR		Loss or Foreclosure		Transferred to Held For Sale		Removed from (Taken to) Non-accrual		Balance at 6/30/15
	(Dollars in Thousands)
Non-residential real estate	$	3,284		—		—		—		—		3,284
Total performing TDR	$	3,284		—		—		—		—		3,284

A summary of the activity in loans classified as TDRs for the twelve month period ended December 31, 2014, is as follows:

	Balance at 12/31/13		New TDR		Loss or Foreclosure		Transferred to Held For Sale			Removed from (Taken to) Non-accrual		Balance at 12/31/14
	(Dollars in Thousands)
One-to-four family mortgages	$	—		—		—		—			—	$	—
Non-residential real estate		—		10,271		—		(6,987	)		—		3,284
Commercial loans		—		—		—		—			—		—
Total performing TDR	$	—		10,271		—		(6,987	)		—	$	3,284