Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2015

Financing Receivable, Allowance for Credit Losses [Line Items]

Composition of loan portfolio

	March  31, 2015		December 31, 2014
(dollars in thousands)	Amount	%  of Total	Amount	%  of Total
Commercial
Owner occupied RE	$203,921	22.4%	$ 191,061	21.9%
Non-owner occupied RE	190,816	21.0%	183,440	21.1%
Construction	48,172	5.3%	50,995	5.8%
Business	162,164	17.8%	149,986	17.2%
Total commercial loans	605,073	66.5%	575,482	66.0%
Consumer
Real estate	153,517	16.9%	146,859	16.9%
Home equity	95,321	10.5%	95,629	11.0%
Construction	41,267	4.5%	39,226	4.5%
Other	14,143	1.6%	14,250	1.6%
Total consumer loans	304,248	33.5%	295,964	34.0%
Total gross loans, net of deferred fees	909,321	100.0%	871,446	100.0%
Less—allowance for loan losses	(12,241)		(11,752)
Total loans, net	$897,080		$ 859,694

Loan maturity distribution by type and related interest rate

			March 31, 2015
(dollars in thousands)		One year or less	After one but within five years	After five years	Total
Commercial
Owner occupied RE		$  21,496	106,695	75,730	203,921
Non-owner occupied RE		44,866	113,925	32,025	190,816
Construction		10,698	25,761	11,713	48,172
Business		72,580	77,461	12,123	162,164
Total commercial loans		149,640	323,842	131,591	605,073
Consumer
Real estate		26,051	42,622	84,844	153,517
Home equity		4,685	28,491	62,145	95,321
Construction		16,185	2,535	22,547	41,267
Other		6,994	5,401	1,748	14,143
Total consumer loans		53,915	79,049	171,284	304,248
Total gross loans, net of deferred fees		$203,555	402,891	302,875	909,321
Loans maturing after one year with:
Fixed interest rates					$525,938
Floating interest rates					179,828
			December 31, 2014
		One year or less	After one but within five years	After five years	Total
	Commercial
	Owner occupied RE	$  20,737	98,110	72,214	191,061
	Non-owner occupied RE	46,718	104,402	32,320	183,440
	Construction	11,923	25,145	13,927	50,995
	Business	75,718	65,899	8,369	149,986
	Total commercial loans	155,096	293,556	126,830	575,482
	Consumer
	Real estate	21,571	41,549	83,739	146,859
	Home equity	5,645	28,394	61,590	95,629
	Construction	13,531	2,073	23,622	39,226
	Other	7,278	5,637	1,335	14,250
	Total consumer	48,025	77,653	170,286	295,964
	Total gross loan, net of deferred fees	$203,121	371,209	297,116	871,446
	Loans maturing after one year with :
	Fixed interest rates				494,058
	Floating interest rates				174,267

Summary of nonperforming assets, including nonaccruing TDRs

(dollars in thousands)	March 31, 2015	December 31, 2014
Commercial
Owner occupied RE	$  280	322
Non-owner occupied RE	3,167	2,344
Construction	-	783
Business	1,130	1,408
Consumer
Real estate	457	457
Home equity	188	188
Construction	-	-
Other	2	1
Nonaccruing troubled debt restructurings	1,301	1,147
Total nonaccrual loans, including nonaccruing TDRs	6,525	6,650
Other real estate owned	2,570	3,307
Total nonperforming assets	$9,095	9,957
Nonperforming assets as a percentage of:
Total assets	0.85%	0.97%
Gross loans	1.00%	1.14%
Total loans over 90 days past due	5,828	5,735
Loans over 90 days past due and still accruing	-	-
Accruing troubled debt restructurings	$  8,336	8,562

Summary of key information for impaired loans

		March 31, 2015
		Recorded investment
			Impaired loans
	Unpaid		with related	Related
	Principal	Impaired	allowance for	allowance for
(dollars in thousands)	Balance	loans	loan losses	loan losses
Commercial
Owner occupied RE	$  1,079	1,079	1,079	373
Non-owner occupied RE	9,219	5,308	3,509	918
Construction	1,938	1,938	532	156
Business	4,672	4,262	3,077	2,497
Total commercial	16,908	12,587	8,197	3,944
Consumer
Real estate	1,706	1,706	1,386	672
Home equity	346	346	346	190
Construction	-	-	-	-
Other	222	222	222	222
Total consumer	2,274	2,274	1,954	1,084
Total	$19,182	14,861	10,151	5,028

		December 31, 2014
		Recorded investment
			Impaired loans
	Unpaid		with related	Related
	Principal	Impaired	allowance for	allowance for
	Balance	loans	loan losses	loan losses
Commercial
Owner occupied RE	$  1,122	1,122	1,060	371
Non-owner occupied RE	5,813	4,522	2,777	801
Construction	5,268	2,726	1,315	324
Business	5,385	4,565	3,528	2,464
Total commercial	17,588	12,935	8,680	3,960
Consumer
Real estate	1,620	1,620	1,299	585
Home equity	347	347	347	191
Construction	-	-	-	-
Other	310	310	310	310
Total consumer	2,277	2,277	1,956	1,086
Total	$19,865	15,212	10,636	5,046

Average recorded investment and interest income recognized on impaired loans

	Three months ended March 31, 2015		Three months ended March 31, 2014		Year ended December 31, 2014
(dollars in thousands)	Average recorded investment	Recognized interest income	Average recorded investment	Recognized interest income	Average recorded investment	Recognized interest income
Commercial
Owner occupied RE	$  1,101	22	1,930	2	1,568	47
Non-owner occupied RE	4,915	22	5,417	15	5,693	104
Construction	2,332	18	1,829	14	1,977	75
Business	4,413	36	4,724	40	4,522	154
Total commercial	12,761	98	13,900	71	13,760	380
Consumer
Real estate	1,663	11	2,092	12	2,094	53
Home equity	346	2	264	2	251	10
Construction	-	-	-	-	-	-
Other	266	2	221	2	282	13
Total consumer	2,275	15	2,577	16	2,627	76
Total	$ 15,036	113	16,477	87	16,387	456

Summary of allowance for loan losses by commercial and consumer portfolio segments

							Three months ended March 31, 2015
	Commercial				Consumer
(dollars in thousands)	Owner occupied RE	Non-owner occupied RE	Construction	Business	Real Estate	Home equity		Construction	Other	Total
Balance, beginning of period	$ 1,645	2,332	614	3,625	1,714	1,162		236	424	11,752
Provision for loan losses	259	295	(149)	183	109	-		15	(87)	625
Loan charge-offs	-	(78)	-	(66)	-	-		-	(1)	(145)
Loan recoveries	-	2	-	7	-	-		-	-	9
Net loan charge-offs	-	(76)	-	(59)	-	-		-	(1)	(136)
Balance, end of period	$ 1,904	2,551	465	3,749	1,823	1,162		251	336	12,241
Net charge-offs to average loans (annualized)										0.06%
Allowance for loan losses to gross loans										1.35%
Allowance for loan losses to nonperforming loans										187.61%
							Three months ended March 31, 2014
	Commercial				Consumer
(dollars in thousands)	Owner occupied RE	Non-owner occupied RE	Construction	Business	Real Estate	Home equity		Construction	Other	Total
Balance, beginning of period	$ 1,880	2,633	397	3,329	1,091	644		99	140	10,213
Provision for loan losses	13	780	4	43	151	82		5	(78)	1,000
Loan charge-offs	-	(434)	-	-	-	(76)		-	(2)	(512)
Loan recoveries	-	-	-	11	-	1		-	-	12
Net loan charge-offs	-	(434)	-	11	-	(75)		-	(2)	(500)
Balance, end of period	$ 1,893	2,979	401	3,383	1,242	651		104	60	10,713
Net charge-offs to average loans (annualized)										0.27%
Allowance for loan losses to gross loans										1.38%
Allowance for loan losses to nonperforming loans										120.99%

Allowance for loan losses and recorded investment in loans by impairment methodology

					March 31, 2015
	Allowance for loan losses			Recorded investment in loans
(dollars in thousands)	Commercial	Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$3,944	1,084	5,028	12,587	2,274	14,861
Collectively evaluated	4,725	2,488	7,213	592,486	301,974	894,460
Total	$8,669	3,572	12,241	605,073	304,248	909,321
					December 31, 2014
	Allowance for loan losses			Recorded investment in loans
	Commercial	Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$3,960	1,086	5,046	12,935	2,277	15,212
Collectively evaluated	4,256	2,450	6,706	562,547	293,687	856,234
Total	$8,216	3,536	11,752	575,482	295,964	871,446

Commercial [Member]

Financing Receivable, Allowance for Credit Losses [Line Items]

Summary of breakdown of outstanding loans by risk category

				March 31, 2015
(dollars in thousands)	Owner occupied RE	Non-owner occupied RE	Construction	Business	Total
Pass	$198,503	180,577	46,105	152,750	577,935
Special mention	3,796	3,351	129	4,653	11,929
Substandard	1,622	6,888	1,938	4,761	15,209
Doubtful	-	-	-	-	-
	$203,921	190,816	48,172	162,164	605,073

				December 31, 2014
	Owner occupied RE	Non-owner occupied RE	Construction	Business	Total
Pass	$184,158	173,711	48,140	140,432	546,441
Special mention	5,035	3,376	129	4,715	13,255
Substandard	1,868	6,353	2,726	4,839	15,786
Doubtful	-	-	-	-	-
	$191,061	183,440	50,995	149,986	575,482

Outstanding loans which include loans on nonaccrual by past due status

					March 31, 2015
(dollars in thousands)	Owner occupied RE	Non-owner occupied RE		Construction	Business		Total
Current	$203,177	187,072		47,640	160,358		598,247
30-59 days past due	464	129		-	299		892
60-89 days past due	-	60		532	159		751
Greater than 90 Days	280	3,555		-	1,348		5,183
	$203,921	190,816		48,172	162,164		605,073
						December 31, 2014
	Owner occupied RE		Non-owner occupied RE	Construction		Business	Total
Current	$190,801		180,577	50,212		148,317	569,907
30-59 days past due	-		49	-		35	84
60-89 days past due	-		246	-		155	401
Greater than 90 Days	260		2,568	783		1,479	5,090
	$191,061		183,440	50,995		149,986	575,482

Consumer [Member]

Financing Receivable, Allowance for Credit Losses [Line Items]

Summary of breakdown of outstanding loans by risk category

				March 31, 2015
(dollars in thousands)	Real estate	Home equity	Construction	Other	Total
Pass	$150,687	91,100	41,267	13,972	297,026
Special mention	794	2,976	-	136	3,906
Substandard	2,036	1,245	-	35	3,316
Doubtful	-	-	-	-	-
	$153,517	95,321	41,267	14,143	304,248

				December 31, 2014
	Real estate	Home equity	Construction	Other	Total
Pass	$144,070	91,084	39,226	14,013	288,393
Special mention	953	3,268	-	139	4,360
Substandard	1,836	1,277	-	98	3,211
Doubtful	-	-	-	-	-
	$146,859	95,629	39,226	14,250	295,964

Outstanding loans which include loans on nonaccrual by past due status

				March 31, 2015
(dollars in thousands)	Real estate	Home equity	Construction	Other	Total
Current	$152,458	94,919	41,267	14,133	302,777
30-59 days past due	602	84	-	3	689
60-89 days past due	-	130	-	7	137
Greater than 90 Days	457	188	-	-	645
	$153,517	95,321	41,267	14,143	304,248
				December 31, 2014
	Real estate	Home equity	Construction	Other	Total
Current	$146,362	95,311	39,226	14,247	294,146
30-59 days past due	40	-	-	-	40
60-89 days past due	-	130	-	3	133
Greater than 90 Days	457	188	-	-	645
	$146,859	95,629	39,226	14,250	295,964