Loans (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Composition of Loan Portfolio By Type of Loan

At September 30, 2016, and December 31, 2015, there were no concentrations of loans exceeding 10% of total loans other than as disclosed below:

	September 30, 2016 Amount			September 30, 2016 Percent			December 31, 2015 Amount			December 31, 2015 Percent
	(Dollars in thousands, except percentages)
Real estate loans:
One-to-four family (closed end) first mortgages	$	146,744			25.0	%		145,999			26.0	%
Home equity lines of credit		34,563			5.9	%		33,644			6.0	%
Junior liens		1,601			0.3	%		1,771			0.3	%
Multi-family		32,418			5.5	%		24,725			4.4	%
Construction		37,775			6.5	%		34,878			6.2	%
Land		22,999			3.9	%		22,453			4.0	%
Farmland		46,877			8.0	%		42,246			7.5	%
Non-residential real estate		170,759			29.1	%		149,711			26.6	%
Total mortgage loans		493,736			84.2	%		455,427			81.0	%
Consumer loans		8,908			1.5	%		20,324			3.6	%
Commercial loans		83,684			14.3	%		86,743			15.4	%
Total other loans		92,592			15.8	%		107,067			19.0	%
Total loans, gross		586,328			100.0	%		562,494			100.0	%
Deferred loan cost, net of income		(453	)					(445	)
Less allowance for loan losses		(6,812	)					(5,700	)
Total loans	$	579,063						556,349

Non-accrual Loans

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

	September 30, 2016		December 31, 2015		September 30, 2015
	(Dollars in Thousands)
One-to-four family mortgages	$	700		2,234		1,427
Home equity line of credit		124		48		48
Multi-family		1,772		1,968		1,968
Land		7,842		1,553		1,680
Non-residential real estate		248		247		672
Farmland		—		166		168
Consumer loans		31		8		—
Commercial loans		947		1,198		1,195
Total non-accrual loans	$	11,664		7,422		7,158

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, 2016 (Dollars in Thousands):

								General			Specific			Ending
	Balance		Charge off			Recovery		Provision			Provision			Balance
	12/31/2015		2016			2016		2016			2016			9/30/2016
One-to-four family mortgages	$	1,030		—			164		162			(224	)		1,132
Home equity line of credit		201		(30	)		12		134			18			335
Junior liens		8		—			14		3			(14	)		11
Multi-family		227		—			—		68			213			508
Construction		377		—			—		429			—			806
Land		1,379		—			—		(266	)		(69	)		1,044
Non-residential real estate		1,139		—			6		138			(39	)		1,244
Farmland		358		—			—		657			—			1,015
Consumer loans		358		(322	)		122		(166	)		221			213
Commercial loans		623		(322	)		290		(22	)		(65	)		504
	$	5,700		(674	)		608		1,137			41			6,812

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, 2015 (Dollars in Thousands):

								General			Specific			Ending
	Balance		Charge off			Recovery		Provision			Provision			Balance
	12/31/2014		2015			2015		2015			2015			12/31/2015
One-to-four family mortgages	$	1,198		(143	)		39		(176	)		112			1,030
Home equity line of credit		181		(92	)		10		20			82			201
Junior liens		14		—			4		(6	)		(4	)		8
Multi-family		85		—			—		4			138			227
Construction		146		—			—		231			—			377
Land		1,123		(911	)		—		850			317			1,379
Non-residential real estate		2,083		(222	)		2		(944	)		220			1,139
Farmland		461		—			—		500			(603	)		358
Consumer loans		494		(298	)		118		(123	)		167			358
Commercial loans		504		(201	)		54		(61	)		327			623
	$	6,289		(1,867	)		227		295			756			5,700

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

The table below presents past due and non-accrual balances at September 30, 2016, by loan classification allocated between performing and non-performing:

			30 - 89						Impaired Loans
	Currently		Days		Non-accrual		Special		Currently Performing
	Performing		Past Due		Loans		Mention		Substandard		Doubtful		Total
	(Dollars in Thousands)
One-to-four family mortgages		144,121		466		700		753		704		—		146,744
Home equity line of credit		33,970		53		124		25		391		—		34,563
Junior liens		1,552		5		—		32		12		—		1,601
Multi-family		27,623		—		1,772		—		3,023		—		32,418
Construction		37,775		—		—		—		—		—		37,775
Land		14,562		—		7,842		37		558		—		22,999
Farmland		44,040		26		—		505		2,306		—		46,877
Non-residential real estate		160,096		—		248		5		10,410		—		170,759
Consumer loans		8,603		2		31		—		272		—		8,908
Commercial loans		79,450		34		947		666		2,587		—		83,684
Total		551,792		586		11,664		2,023		20,263		—		586,328

The table below presents past due and non-accrual balances at December 31, 2015, by loan classification allocated between performing and non-performing (Dollars in Thousands):

			30 - 89						Impaired Loans
	Currently		Days		Non-accrual		Special		Currently Performing
	Performing		Past Due		Loans		Mention		Substandard		Doubtful		Total
One-to-four family mortgages	$	142,058		671		2,234		41		995		—	$	145,999
Home equity line of credit		33,396		79		48		—		121		—		33,644
Junior liens		1,720		—		—		35		16		—		1,771
Multi-family		21,638		6		1,968		—		1,113		—		24,725
Construction		34,878		—		—		—		—		—		34,878
Land		11,047		747		1,553		41		9,065		—		22,453
Non-residential real estate		138,637		228		247		2,489		8,110		—		149,711
Farmland		41,853		64		166		—		163		—		42,246
Consumer loans		20,108		15		8		—		193		—		20,324
Commercial loans		84,272		45		1,198		352		876		—		86,743
Total	$	529,607		1,855		7,422		2,958		20,652		—		562,494

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, 2016, and December 31, 2015, by portfolio segment and based on the impairment method as of September 30, 2016, and December 31, 2015.

			Land
			Development /		Commercial		Residential
	Commercial		Construction		Real Estate		Real Estate		Consumer		Total
September 30, 2016:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	83		—		452		—		70	$	605
Collectively evaluated for impairment		421		1,850		2,315		1,478		143		6,207
Total ending allowance balance	$	504		1,850		2,767		1,478		213	$	6,812
Loans:
Loans individually evaluated for impairment	$	3,534		8,400		17,759		1,931		303	$	31,927
Loans collectively evaluated for impairment		80,150		52,374		232,295		180,977		8,605		554,401
Total ending loans balance	$	83,684		60,774		250,054		182,908		8,908		586,328
			Land
			Development /		Commercial		Residential
	Commercial		Construction		Real Estate		Real Estate		Consumer		Total
	(Dollars in Thousands)
December 31, 2015:
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	180		69		272		60		49	$	630
Collectively evaluated for impairment		443		1,687		1,452		1,179		309		5,070
Total ending allowance balance	$	623		1,756		1,724		1,239		358	$	5,700
Loans:
Loans individually evaluated for impairment	$	2,074		10,618		11,767		3,414		201	$	28,074
Loans collectively evaluated for impairment		84,669		46,713		204,915		178,000		20,123		534,420
Total ending loans balance	$	86,743		57,331		216,682		181,414		20,324	$	562,494

Summary of Company's Impaired Loans, Including Respective Regulatory Classification and Respective Specific Reserve

A summary of the Company’s impaired loans, including their respective regulatory classification and their respective specific reserve at September 30, 2016, and December 31, 2015, were as follows:

			Special		Impaired Loans						Specific Allowance for		Allowance for Loans not
September 30, 2016	Pass		Mention		Substandard		Doubtful		Total		Impairment		Impaired
	(Dollars in Thousands)
One-to-four family mortgages	$	144,587		753		1,404		—		146,744		—		1,132
Home equity line of credit		34,023		25		515		—		34,563		—		335
Junior liens		1,557		32		12		—		1,601		—		11
Multi-family		27,623		—		4,795		—		32,418		351		157
Construction		37,775		—		—		—		37,775		—		806
Land		14,562		37		8,400		—		22,999		—		1,044
Non-residential real estate		160,096		5		10,658		—		170,759		101		1,143
Farmland		44,066		505		2,306		—		46,877		—		1,015
Consumer loans		8,605		—		303		—		8,908		70		143
Commercial loans		79,484		666		3,534		—		83,684		83		421
Total	$	552,378		2,023		31,927		—		586,328		605		6,207
			Special		Impaired Loans						Specific Allowance for		Allowance for Loans not
December 31, 2015	Pass		Mention		Substandard		Doubtful		Total		Impairment		Impaired
	(Dollars in Thousands)
One-to-four family mortgages	$	142,729		41		3,229		—		145,999		60		970
Home equity line of credit		33,475		—		169		—		33,644		—		201
Junior lien		1,720		35		16		—		1,771		—		8
Multi-family		21,644		—		3,081		—		24,725		138		89
Construction		34,878		—		—		—		34,878		—		377
Land		11,794		41		10,618		—		22,453		69		1,310
Non-residential real estate		138,865		2,489		8,357		—		149,711		134		1,005
Farmland		41,917		—		329		—		42,246		—		358
Consumer loans		20,123		—		201		—		20,324		49		309
Commercial loans		84,317		352		2,074		—		86,743		180		443
Total	$	531,462		2,958		28,074		—		562,494		630		5,070

Impaired Loans by Classification Type

Impaired loans by classification type and the related valuation allowance amounts at September 30, 2016, were as follows:

	At September 30, 2016						For the nine month period ended September 30, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(Dollars in Thousands)
Impaired loans with no specific allowance:
One-to-four family mortgages	$	1,404		1,404		—		1,627		53
Home equity line of credit		515		515		—		257		14
Junior liens		12		12		—		13		1
Multi-family		2,085		2,085		—		3,920		47
Construction		—		—		—		—		—
Land		8,400		9,357		—		11,012		512
Farmland		2,306		2,306		—		913		84
Non-residential real estate		9,951		9,951		—		8,850		336
Consumer loans		24		24		—		37		2
Commercial loans		2,599		2,599		—		4,444		119
Total		27,296		28,253		—		31,073		1,168
Impaired loans with a specific allowance:
One-to-four family mortgages		—		—		—		786		—
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		2,710		2,781		351		310		105
Construction		—		—		—		—		—
Land		—		—		—		191		—
Farmland		—		—		—		—		—
Non-residential real estate		707		707		101		712		22
Consumer loans		279		279		70		227		—
Commercial loans		935		935		83		950		49
Total		4,631		4,702		605		3,176		176
Total impaired loans	$	31,927		32,955		605		34,249		1,344

Impaired loans by classification type and the related valuation allowance amounts at December 31, 2015, were as follows:

	At December 31, 2015						For the year ended December 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(Dollars in Thousands)
Impaired loans with no specific allowance
One-to-four family mortgages	$	2,526		2,526		—		2,389		80
Home equity line of credit		169		169		—		457		7
Junior liens		16		16		—		17		1
Multi-family		2,128		2,128		—		2,797		126
Construction		—		—		—		—		—
Land		10,038		10,998		—		8,520		671
Non-residential real estate		7,640		7,640		—		283		404
Farmland		329		329		—		7,774		19
Consumer loans		5		5		—		3		—
Commercial loans		1,274		1,274		—		1,599		73
Total		24,125		25,085		—		23,839		1,381
Impaired loans with a specific allowance
One-to-four family mortgages	$	703		703		60		709		40
Home equity line of credit		—		—		—		—		—
Junior liens		—		—		—		—		—
Multi-family		953		953		138		318		17
Construction		—		—		—		—		—
Land		580		580		69		1,707		46
Non-residential real estate		717		717		134		836		28
Farmland		—		—		—		—		—
Consumer loans		196		196		49		194		—
Commercial loans		800		800		180		514		15
Total		3,949		3,949		630		4,278		146
Total impaired loans	$	28,074		29,034		630		28,117		1,527

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, 2016, is as follows:

	Balance at		New		Loss or		Loan			Removed from (Taken to)		Balance at
	12/31/15		TDR		Foreclosure		Amortization			Non-accrual		09/30/16
	(Dollars in Thousands)
Multi-family real estate	$	—		816		—		—			—		816
Non-residential real estate		5,536		228		—		(77	)		—		5,687
Total performing TDR	$	5,536		1,044		—		(77	)		—		6,503

A summary of the activity in loans classified as TDRs for the year ended December 31, 2015, is as follows:

	Balance at		New		Loss or		Loan			Removed from (Taken to)		Balance at
	12/31/14		TDR		Foreclosure		Amortization			Non-accrual		12/31/15
	(Dollars in Thousands)
Non-residential real estate	$	3,284		2,265		—		(13	)		—		5,536
Total performing TDR	$	3,284		2,265		—		(13	)		—		5,536