Loans (Tables)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Components of Loans Receivable in Consolidated Balance Sheets

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

	September 30, 2015			September 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	$	146,370			25.8	%	$	150,551			27.6	%
Second mortgages (closed end)		1,798			0.3	%		2,102			0.4	%
Home equity lines of credit		32,976			5.8	%		34,238			6.3	%
Multi-family		23,366			4.1	%		25,991			4.8	%
Construction		32,669			5.8	%		24,241			4.4	%
Land		22,654			4.0	%		26,654			4.9	%
Farmland		40,639			7.2	%		42,874			7.8	%
Non-residential real estate		157,114			27.7	%		150,596			27.6	%
Total mortgage loans		457,586			80.7	%		457,247			83.8	%
Consumer loans		18,375			3.2	%		14,438			2.6	%
Commercial loans		91,550			16.1	%		74,154			13.6	%
Total other loans		109,925			19.3	%		88,592			16.2	%
Total loans, gross		567,511			100.0	%		545,839			100.0	%
Deferred loan cost, net of fees		(510	)					(286	)
Less allowance for loan losses		(5,487	)					(6,289	)
Total loans	$	561,514					$	539,264

Non-accrual Loans

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

	September 30, 2015		December 31, 2014		September 30, 2014
	(Dollars in Thousands)
One-to-four family mortgages	$	1,427		1,501		407
Home equity line of credit		48		—		31
Multi-family		1,968		95		—
Land		1,680		215		301
Non-residential real estate		672		1,159		101
Farmland		168		115		12
Consumer loans		—		—		2
Commercial loans		1,195		90		263
Total non-accrual loans	$	7,158		3,175		1,117

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 nine month period ended September 30, 2015:

								General			Specific			Ending
	Balance		Charge off			Recovery		Provision			Provision			Balance
	12/31/2014		2015			2015		2015			2015			9/30/2015
One-to-four family mortgages	$	1,198		(143	)		30		90			(215	)		960
Home equity line of credit		181		(92	)		6		86			—			181
Junior liens		14		—			4		(4	)		(6	)		8
Multi-family		85		—			—		—			(11	)		74
Construction		146		—			—		—			51			197
Land		1,123		(911	)		—		514			958			1,684
Non-residential real estate		2,083		(222	)		2		(375	)		(287	)		1,201
Farmland		461		—			—		—			(124	)		337
Consumer loans		494		(224	)		94		120			(134	)		350
Commercial loans		504		(152	)		46		163			(66	)		495
	$	6,289		(1,744	)		182		594			166			5,487

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:

								General			Specific			Ending
	Balance		Charge off			Recovery		Provision			Provision			Balance
	12/31/2013		2014			2014		2014			2014			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 September 30, 2015, by loan classification allocated between past due, performing and non-performing:

											Impaired Loan Currently Performing
	Currently Performing		30 – 89 Days Past Due		90 Days + past due and Accruing		Non- Accrual Loans		Special Mention		Substandard		Doubtful		Total
	(Dollars in Thousands)
One-to-four family mortgages	$	142,796		325		—		1,427		330		1,492		—		146,370
Home equity line of credit		32,703		—		—		48		—		225		—		32,976
Junior liens		1,746		—		—		—		36		16		—		1,798
Multi-family		20,272		—		—		1,968		—		1,126		—		23,366
Construction		32,669		—		—		—		—		—		—		32,669
Land		11,604		—		1,486		1,680		43		7,841		—		22,654
Non-residential real estate		147,938		—		—		672		4,158		4,346		—		157,114
Farmland		40,309		—		—		168		—		162		—		40,639
Consumer loans		18,142		29		—		—		—		204		—		18,375
Commercial loans		88,384		701		—		1,195		357		913		—		91,550
Total	$	536,563		1,055		1,486		7,158		4,924		16,325		—		567,511

The table below presents loan balances December 31, 2014, by loan classification allocated 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 September 30, 2015, and December 31, 2014, by portfolio segment and based on the impairment method as of September 30, 2015, and December 31, 2014.

			Land
			Development /		Commercial		Residential
	Commercial		Construction		Real Estate		Real Estate		Consumer		Total
September 30, 2015:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	56		266		143		29		51	$	545
Collectively evaluated for impairment		439		1,615		1,469		1,120		299		4,942
Total ending allowance balance	$	495		1,881		1,612		1,149		350	$	5,487
Loans:
Loans individually evaluated for impairment	$	2,108		9,521		8,442		3,208		204	$	23,483
Loans collectively evaluated for impairment		89,442		45,802		212,677		177,936		18,171		544,028
Total ending loans balance	$	91,550		55,323		221,119		181,144		18,375	$	567,511

			Land
			Development /		Commercial		Residential
	Commercial		Construction		Real Estate		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 September 30, 2015, December 31, 2014 and September 30, 2014, the Company’s specific reserve for impaired loans totaled $545,000, $1.5 million and $2.9 million respectively. Loans by classification type and the related allowance amounts at September 30, 2015, are as follows:

											Specific		Allowance
											Allowance		for
September 30, 2015			Special		Impaired Loans						for		Performing
	Pass		Mention		Substandard		Doubful		Total		Impairment		Loans
					(Dollars in Thousands)
One-to-four family mortgages	$	143,121		330		2,919		—		146,370		29		931
Home equity line of credit		32,703		—		273		—		32,976		—		181
Junior liens		1,746		36		16		—		1,798		—		8
Multi-family		20,272		—		3,094		—		23,366		—		74
Construction		32,669		—		—		—		32,669		—		197
Land		11,604		1,529		9,521		—		22,654		266		1,417
Non-residential real estate		147,938		4,158		5,018		—		157,114		143		1,058
Farmland		40,309		—		330		—		40,639		—		337
Consumer loans		18,171		—		204		—		18,375		51		300
Commercial loans		89,085		357		2,108		—		91,550		56		439
Total	$	537,618		6,410		23,483		—		567,511		545		4,942

Loans by classification type and the related allowance amounts at December 31, 2014, are as follows:

			Special		Impaired Loans						Specific Allowance for		Allowance For Performing
	Pass		Mention		Substandard		Doubtful		Total		Impairment		Loans
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 September 30, 2015, were as follows:

							For the nine month period ended
	At September 30, 2015						September 30, 2015
			Unpaid				Average		Interest
Impaired loans with no specific allowance	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
One-to-four family mortgages	$	2,212		2,212		—		2,343		55
Home equity line of credit		273		273		—		553		9
Junior liens		16		16		—		17		1
Multi-family		3,094		3,094		—		3,019		126
Construction		—		—		—		—		—
Land		7,290		7,290		—		8,014		350
Farmland		330		330		—		268		35
Non-residential real estate		4,297		4,297		—		7,819		253
Consumer loans		—		—		—		3		—
Commercial loans		1,908		1,908		—		1,707		72
Total		19,420		19,420		—		23,743		901
Impaired loans with a specific allowance:
One-to-four family mortgages		707		707		29		710		30
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		—		—		—		—		—
Construction		—		—		—		—		—
Land		2,231		3,248		266		2,083		72
Farmland		—		—		—		—		—
Non-residential real estate		721		721		143		875		20
Consumer loans		204		204		51		191		—
Commercial loans		200		200		56		419		7
Total		4,063		5,080		545		4,278		129
Total impaired loans	$	23,483		24,500		545		28,021		1,030

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

	At December 31, 2014						For the year ended December 31, 2014
Impaired loans with no specific allowance	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
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 nine month period ended September 30, 2015, is as follows:

	Balance at		New		Loss or		Loan			Removed from (Taken to)		Balance at
	December 31, 2014		TDR		Foreclosure		Amortization			Non-accrual		September 30, 2015
	(Dollars in Thousands)
Non-residential real estate	$	3,284		2,149		—		(1	)		—		5,432
Total performing TDR	$	3,284		2,149		—		(1	)		—		5,432

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

	Balance at		New		Loss or		Transferred to			Removed from (Taken to)		Balance at
	December 31, 2013		TDR		Foreclosure		Held For Sale			Non-accrual		December 31, 2014
	(Dollars in Thousands)
Non-residential real estate	$	—		10,271		—		(6,987	)		—		3,284
Total performing TDR	$	—		10,271		—		(6,987	)		—		3,284