Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2015

Financing Receivable, Allowance for Credit Losses [Line Items]

Composition of loan portfolio

	June 30, 2015				December 31, 2014
(dollars in thousands)	Amount			% of Total	Amount			% of Total
Commercial
Owner occupied RE	$	232,997		24.2%	$	191,061		21.9%
Non-owner occupied RE		207,623		21.6%		183,440		21.1%
Construction		33,570		3.5%		50,995		5.8%
Business		162,017		16.8%		149,986		17.2%
Total commercial loans		636,207		66.1%		575,482		66.0%
Consumer
Real estate		166,404		17.3%		146,859		16.9%
Home equity		105,241		10.9%		95,629		11.0%
Construction		40,957		4.2%		39,226		4.5%
Other		14,687		1.5%		14,250		1.6%
Total consumer loans		327,289		33.9%		295,964		34.0%
Total gross loans, net of deferred fees		963,496		100.0%		871,446		100.0%
Less—allowance for loan losses		(12,927	)			(11,752	)
Total loans, net	$	950,569			$	859,694

Loan maturity distribution by type and related interest rate

	June 30, 2015
			After one
	One year		but within	After five
(dollars in thousands)	or less		five years	years		Total
Commercial
Owner occupied RE	$	22,954	125,545	84,498		232,997
Non-owner occupied RE		38,321	132,549	36,753		207,623
Construction		13,429	15,467	4,674		33,570
Business		72,776	76,802	12,439		162,017
Total commercial loans		147,480	350,363	138,364		636,207
Consumer
Real estate		25,794	42,669	97,941		166,404
Home equity		6,151	31,292	67,798		105,241
Construction		17,578	2,623	20,756		40,957
Other		7,409	5,787	1,491		14,687
Total consumer loans		56,932	82,371	187,986		327,289
Total gross loans, net of deferred fees	$	204,412	432,734	326,350		963,496
Loans maturing after one year with:
Fixed interest rates					$	560,046
Floating interest rates						199,038
	December 31, 2014
			After one
	One year		but within	After five
	or less		five years	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)	June 30, 2015		December 31, 2014
Commercial
Owner occupied RE	$	720	322
Non-owner occupied RE		3,018	2,344
Construction		-	783
Business		1,178	1,408
Consumer
Real estate		419	457
Home equity		250	188
Construction		-	-
Other		1	1
Nonaccruing troubled debt restructurings		1,087	1,147
Total nonaccrual loans, including nonaccruing TDRs		6,673	6,650
Other real estate owned		2,887	3,307
Total nonperforming assets	$	9,560	9,957
Nonperforming assets as a percentage of:
Total assets		0.85%	0.97%
Gross loans		0.99%	1.14%
Total loans over 90 days past due		6,383	5,735
Loans over 90 days past due and still accruing		-	-
Accruing troubled debt restructurings	$	8,173	8,562

Summary of key information for impaired loans

			June 30, 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	$	1,531	1,506	1,506	490
Non-owner occupied RE		8,342	4,997	3,091	778
Construction		1,931	1,931	532	166
Business		4,591	4,126	2,946	2,266
Total commercial		16,395	12,560	8,075	3,700
Consumer
Real estate		1,702	1,664	1,346	631
Home equity		406	406	157	157
Construction		-	-	-	-
Other		216	216	216	216
Total consumer		2,324	2,286	1,719	1,004
Total	$	18,719	14,846	9,794	4,704

			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			Three months ended
	June 30, 2015			June 30, 2014
		Average	Recognized	Average	Average
	recorded		interest	recorded	recorded
(dollars in thousands)	investment		ncome	investment	investment
Commercial
Owner occupied RE	$	1,292	10	1,662	2
Non-owner occupied RE		5,153	24	6,646	22
Construction		1,935	23	1,768	-
Business		4,194	33	4,713	42
Total commercial		12,574	90	14,789	66
Consumer
Real estate		1,685	12	2,355	12
Home equity		376	8	161	2
Construction		-	-	-	-
Other		219	2	277	3
Total consumer		2,280	22	2,793	17
Total	$	14,854	112	17,582	83

	Six months ended			Six months ended		Year ended
	June 30, 2015			June 30, 2014		December 31, 2014
	Average		Recognized	Average	Recognized	Average	Recognized
	recorded		interest	recorded	interest	recorded	interest
(dollars in thousands)	investment		income	investment	income	investment	income
Commercial
Owner occupied RE	$	1,236	31	1,753	3	1,568	47
Non-owner occupied RE		4,942	47	6,305	53	5,693	104
Construction		2,198	41	1,802	14	1,977	75
Business		4,318	70	4,703	83	4,522	154
Total commercial		12,694	189	14,563	153	13,760	380
Consumer
Real estate		1,664	24	2,172	25	2,094	53
Home equity		366	9	187	4	251	10
Construction		-	-	-	-	-	-
Other		249	4	260	5	282	13
Total consumer		2,279	37	2,619	34	2,627	76
Total	$	14,973	226	17,182	187	16,387	456

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

	Six months ended June 30, 2015
	Commercial									Consumer
	Owner			Non-owner
	occupied			occupied						Real		Home
(dollars in thousands)	RE			RE		Construction		Business		Estate		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		643		574		(216	)	272		263		131		36	(78	)	1,625
Loan charge-offs		(24	)	(204	)	-		(218	)	(39	)	(13	)	-	(1	)	(499	)
Loan recoveries		-		6		-		42		-		1		-	-		49
Net loan charge-offs		(24	)	(198	)	-		(176	)	(39	)	(12	)	-	(1	)	(450	)
Balance, end of period	$	2,264		2,708		398		3,721		1,938		1,281		272	345		12,927
Net charge-offs to average loans (annualized)																	0.10%
Allowance for loan losses to gross loans																	1.34%
Allowance for loan losses to nonperforming loans																	193.73%

	Six months ended June 30, 2014
	Commercial							Consumer
	Owner			Non-owner
	occupied			occupied				Real	Home
(dollars in thousands)	RE			RE		Construction	Business	Estate	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		(299	)	1,661		29	207	178	100		36	38		1,950
Loan charge-offs		-		(1,084	)	-	-	-	(76	)	-	(4	)	(1,164	)
Loan recoveries		-		-		-	103	-	1		-	-		104
Net loan charge-offs		-		(1,084	)	-	103	-	(75	)	-	(4	)	(1,060	)
Balance, end of period	$	1,581		3,210		426	3,639	1,269	669		135	174		11,103
Net charge-offs to average loans (annualized)														0.28%
Allowance for loan losses to gross loans														1.37%
Allowance for loan losses to nonperforming loans														90.30%

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

	June 30, 2015
	Allowance for loan losses				Recorded investment in loans
(dollars in thousands)	Commercial		Consumer	Total	Commercial	Consumer	Total
Individually evaluated	$	3,700	1,004	4,704	12,560	2,286	14,846
Collectively evaluated		5,391	2,832	8,223	623,647	325,003	948,650
Total	$	9,091	3,836	12,927	636,207	327,289	963,496
	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

	June 30, 2015
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE	Construction	Business	Total
Pass	$	227,441	197,847	31,639	152,923	609,850
Special mention		3,774	3,326	-	4,935	12,035
Substandard		1,782	6,450	1,931	4,159	14,322
Doubtful		-	-	-	-	-
	$	232,997	207,623	33,570	162,017	636,207

	December 31, 2014
	Owner		Non-owner
	occupied RE		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

	June 30, 2015
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE	Construction	Business	Total
Current	$	232,277	202,967	33,038	160,363	628,645
30-59 days past due		-	1,452	-	252	1,704
60-89 days past due		-	-	-	14	14
Greater than 90 Days		720	3,204	532	1,388	5,844
	$	232,997	207,623	33,570	162,017	636,207
	December 31, 2014
	Owner		Non-owner
	occupied RE		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

	June 30, 2015
(dollars in thousands)	Real estate		Home equity	Construction	Other	Total
Pass	$	163,612	101,210	40,957	14,523	320,302
Special mention		790	2,976	-	135	3,901
Substandard		2,002	1,055	-	29	3,086
Doubtful		-	-	-	-	-
	$	166,404	105,241	40,957	14,687	327,289

	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

	June 30, 2015
(dollars in thousands)	Real estate		Home equity	Construction	Other	Total
Current	$	165,065	104,846	40,957	14,632	325,500
30-59 days past due		455	145	-	51	651
60-89 days past due		465	130	-	4	599
Greater than 90 Days		419	120	-	-	539
	$	166,404	105,241	40,957	14,687	327,289
	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