Loans And Leases (Tables)

9 Months Ended

Sep. 30, 2018

Recorded Investment In Loans By Portfolio Segment




	September 30, 2018		December 31, 2017
	(unaudited)
Commercial (1)	$	131,176	$	101,975
Real estate:
Single-family residential		93,982		95,578
Multi-family residential		48,400		35,665
Commercial		151,385		111,866
Construction		46,081		42,862
Consumer:
Home equity lines of credit		23,849		25,054
Other		5,661		376
Subtotal		500,534		413,376
Less: ALLL		(7,005)		(6,970)
Loans and leases, net	$	493,529	$	406,406

(1)

Includes $5,557 and $6,008 of commercial leases at September 30, 2018 and December 31, 2017, respectively.

Activity In ALLL By Portfolio Segment



	Three months ended September 30, 2018 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	1,889	$	1,039	$	697	$	2,149	$	614	$	486	$	107	$	6,981
Addition to (reduction in) provision for loan losses		40		(20)		-		10		5		(25)		(10)		-
Charge-offs		-		-		-		-		-		-		-		-
Recoveries		-		19		-		-		-		5		-		24
Ending balance	$	1,929	$	1,038	$	697	$	2,159	$	619	$	466	$	97	$	7,005



	Nine months ended September 30, 2018 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	1,984	$	912	$	660	$	2,143	$	672	$	597	$	2	$	6,970
Addition to (reduction in) provision for loan losses		(57)		111		37		16		(53)		(149)		95		-
Charge-offs		-		(6)		-		-		-		-		-		(6)
Recoveries		2		21		-		-		-		18		-		41
Ending balance	$	1,929	$	1,038	$	697	$	2,159	$	619	$	466	$	97	$	7,005

The following table presents the activity in the ALLL by portfolio segment for the three and nine months ended September 30, 2017:



	Three months ended September 30, 2017 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	1,770	$	956	$	725	$	2,365	$	586	$	554	$	2	$	6,958
Addition to (reduction in) provision for loan losses		113		(20)		72		(246)		52		29		-		-
Charge-offs		-		-		-		-		-		-		-		-
Recoveries		-		1		-		-		-		5		-		6
Ending balance	$	1,883	$	937	$	797	$	2,119	$	638	$	588	$	2	$	6,964



	Nine months ended September 30, 2017 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	1,647	$	735	$	716	$	2,727	$	580	$	486	$	34	$	6,925
Addition to (reduction in) provision for loan losses		234		184		81		(608)		58		83		(32)		-
Charge-offs		-		-		-		-		-		-		-		-
Recoveries		2		18		-		-		-		19		-		39
Ending balance	$	1,883	$	937	$	797	$	2,119	$	638	$	588	$	2	$	6,964

Balance In ALLL And Recorded Investment In Loans By Portfolio Segment And Based On Impairment Method

The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on the impairment method as of September 30, 2018 (unaudited):



			Real Estate								Consumer
	Commercial		Single- family		Multi- family		Commercial		Construction		Home Equity lines of credit		Other		Total
ALLL:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-	$	-	$	-	$	24	$	-	$	-	$	-	$	24
Collectively evaluated for impairment		1,929		1,038		697		2,135		619		466		97		6,981
Total ending allowance balance	$	1,929	$	1,038	$	697	$	2,159	$	619	$	466	$	97	$	7,005

Loans:
Individually evaluated for impairment	$	201	$	112	$	-	$	3,038	$	-	$	-	$	-	$	3,351
Collectively evaluated for impairment		130,975		93,870		48,400		148,347		46,081		23,849		5,661		497,183
Total ending loan balance	$	131,176	$	93,982	$	48,400	$	151,385	$	46,081	$	23,849	$	5,661	$	500,534

The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on the impairment method as of December 31, 2017:



			Real Estate								Consumer
	Commercial		Single- family		Multi- family		Commercial		Construction		Home Equity lines of credit		Other		Total
ALLL:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-	$	-	$	-	$	26	$	-	$	-	$	-	$	26
Collectively evaluated for impairment		1,984		912		660		2,117		672		597		2		6,944
Total ending allowance balance	$	1,984	$	912	$	660	$	2,143	$	672	$	597	$	2	$	6,970

Loans:
Individually evaluated for impairment	$	277	$	116	$	-	$	3,183	$	-	$	-	$	-	$	3,576
Collectively evaluated for impairment		101,698		95,462		35,665		108,683		42,862		25,054		376		409,800
Total ending loan balance	$	101,975	$	95,578	$	35,665	$	111,866	$	42,862	$	25,054	$	376	$	413,376

Individually Evaluated For Impairment By Class Of Loans

The following table presents loans individually evaluated for impairment by class of loans as of and for the period ended September 30, 2018. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, and deferred loan fees and costs. The table presents accrual basis interest income recognized during the three and nine months ended September 30, 2018. Cash payments of interest on these loans during the three and nine months ended September 30, 2018 totaled $52 and $151, respectively.


							Three months ended				Nine months ended
	As of September 30, 2018						September 30, 2018				September 30, 2018
	(unaudited)						(unaudited)				(unaudited)
	Unpaid Principal Balance		Recorded Investment		ALLL Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Real estate:
Commercial:
Owner occupied	$	382	$	128	$	-	$	129	$	5		132		16
Total with no allowance recorded		382		128		-		129		5		132		16

With an allowance recorded:
Commercial (1)		201		201		-		202		3		212		11
Real estate:
Single-family residential (1)		112		112		-		112		2		114		5
Multi-family residential		-		-		-		-		-		-		-
Commercial:
Non-owner occupied		2,826		2,826		23		2,832		39		2,841		117
Owner occupied		84		84		1		150		2		175		6
Total with an allowance recorded		3,223		3,223		24		3,296		46		3,342		139
Total	$	3,605	$	3,351	$	24	$	3,425	$	51	$	3,474	$	155

(1)

Allowance recorded is less than $1 resulting in rounding to zero.

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2017. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, and deferred loan fees and costs. The table presents accrual basis interest income recognized during the three and nine months ended September 30, 2017. Cash payments of interest during the three and nine months ended September 30, 2017 totaled $52 and $164, respectively.


							Three months ended				Nine months ended
	As of December 31, 2017						September 30, 2017				September 30, 2017
							(unaudited)				(unaudited)
	Unpaid Principal Balance		Recorded Investment		ALLL Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Real estate:
Commercial:
Owner occupied		391		137		-		140		6		144		20
Total with no allowance recorded		391		137		-		140		6		144		20

With an allowance recorded:
Commercial		277		277		-		339		2		346		7
Real estate:
Single-family residential (1)		116		116		-		118		2		119		5
Multi-family residential		-		-		-		32		1		34		2
Commercial:
Non-owner occupied		2,856		2,856		24		2,989		42		3,001		120
Owner occupied		190		190		2		972		5		1,098		14
Total with an allowance recorded		3,439		3,439		26		4,450		52		4,598		148
Total	$	3,830	$	3,576	$	26	$	4,590	$	58	$	4,742	$	168

(1)

Allowance recorded is less than $1 resulting in rounding to zero.

Recorded Investment In Nonperforming Loans By Class Of Loans




	September 30, 2018		December 31, 2017
	(unaudited)
Loans past due over 90 days still on accrual	$	-	$	-
Nonaccrual loans:
Commercial		104		115
Real estate:
Single-family residential		182		253
Consumer:
Home equity lines of credit:
Purchased for portfolio		91		102
Total nonaccrual		377		470
Total nonaccrual and nonperforming loans	$	377	$	470

Aging Of Recorded Investment In Past Due Loans By Class Of Loans

The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of September 30, 2018 (unaudited):


	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans Not > 90 days Past Due
Commercial	$	-	$	-	$	-	$	-	$	131,176	$	104
Real estate:
Single-family residential		23		20		33		76		93,906		149
Multi-family residential		-		-		-		-		48,400		-
Commercial:
Non-owner occupied		-		-		-		-		96,587		-
Owner occupied		-		-		-		-		46,667		-
Land		-		-		-		-		8,131		-
Construction		-		-		-		-		46,081		-
Consumer:
Home equity lines of credit:
Originated for portfolio		-		-		-		-		23,453		-
Purchased for portfolio		34		-		-		34		362		91
Other		22		-		-		22		5,639		-
Total	$	79	$	20	$	33	$	132	$	500,402	$	344

The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of December 31, 2017:



	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans Not > 90 days Past Due
Commercial	$	-	$	-	$	-	$	-	$	101,975	$	115
Real estate:
Single-family residential		1,610		27		104		1,741		93,837		149
Multi-family residential		-		-		-		-		35,665		-
Commercial:
Non-owner occupied		-		-		-		-		67,792		-
Owner occupied		-		-		-		-		38,787		-
Land		-		-		-		-		5,287		-
Construction		-		-		-		-		42,862		-
Consumer:
Home equity lines of credit:
Originated for portfolio		-		-		-		-		24,592		-
Purchased for portfolio		-		-		102		102		360		-
Other		24		-		-		24		352		-
Total	$	1,634	$	27	$	206	$	1,867	$	411,509	$	264

Loans Modified As TDRs By Class Of Loans




	September 30, 2018		December 31, 2017
	(unaudited)
Commercial	$	104	$	115
Total	$	104	$	115

Recorded Investment In Loans By Risk Category And Class Of Loans

The recorded investment in loans and leases by risk category and by class of loans and leases as of September 30, 2018 and based on the most recent analysis performed follows. There were no loans or leases rated doubtful at September 30, 2018.


(unaudited)	Not Rated		Pass		Special Mention		Substandard		Total
Commercial	$	-	$	128,587	$	2,388	$	201	$	131,176
Real estate:
Single-family residential		93,799		-		-		183		93,982
Multi-family residential		-		47,808		436		156		48,400
Commercial:
Non-owner occupied		77		93,975		1,701		834		96,587
Owner occupied		-		45,482		973		212		46,667
Land		-		8,131		-		-		8,131
Construction		2,946		43,135		-		-		46,081
Consumer:
Home equity lines of credit:
Originated for portfolio		23,344		38		-		71		23,453
Purchased for portfolio		306		-		-		90		396
Other		5,661		-		-		-		5,661
	$	126,133	$	367,156	$	5,498	$	1,747	$	500,534

The recorded investment in loans and leases by risk category and by class of loans and leases as of December 31, 2017 follows. There were no loans or leases rated doubtful at December 31, 2017.



	Not Rated		Pass		Special Mention		Substandard		Total
Commercial	$	-	$	98,829	$	2,869	$	277	$	101,975
Real estate:
Single-family residential		95,317		-		-		261		95,578
Multi-family residential		-		35,036		466		163		35,665
Commercial:
Non-owner occupied		88		65,161		1,711		832		67,792
Owner occupied		-		37,453		1,008		326		38,787
Land		-		5,287		-		-		5,287
Construction		2,239		40,623		-		-		42,862
Consumer:
Home equity lines of credit:
Originated for portfolio		24,516		-		-		76		24,592
Purchased for portfolio		360		-		-		102		462
Other		376		-		-		-		376
	$	122,896	$	282,389	$	6,054	$	2,037	$	413,376

Components Of Net Investment In Direct Financing Leases


	September 30, 2018		December 31, 2017
	(unaudited)
Total minimum lease payments to be received	$	6,244	$	6,838
Less: unearned income		(687)		(830)
Net investment in direct financing leases	$	5,557	$	6,008

(1)

There were no initial direct costs associated with these leases.

Summary Of Future Minimum Lease Payments Receivable


2018	$	198
2019		793
2020		793
2021		793
2022		793
Thereafter		2,874
	$	6,244