Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2016

Financing Receivable, Allowance for Credit Losses [Line Items]

Composition of loan portfolio

	March 31, 2016				December 31, 2015
(dollars in thousands)	Amount			% of Total		Amount		% of Total
Commercial
Owner occupied RE	$	233,753		22.5%	$	236,083		23.5%
Non-owner occupied RE		221,264		21.3%		205,604		20.5%
Construction		43,843		4.2%		41,751		4.1%
Business		180,281		17.4%		171,743		17.1%
Total commercial loans		679,141		65.4%		655,181		65.2%
Consumer
Real estate		175,954		16.9%		174,802		17.4%
Home equity		118,888		11.4%		116,563		11.6%
Construction		48,349		4.7%		43,318		4.3%
Other		16,530		1.6%		15,080		1.5%
Total consumer loans		359,721		34.6%		349,763		34.8%
Total gross loans, net of deferred fees		1,038,862		100.0%		1,004,944		100.0%
Less—allowance for loan losses		(13,898	)			(13,629	)
Total loans, net	$	1,024,964			$	991,315

Loan maturity distribution by type and related interest rate

	March 31, 2016
			After one
	One year		but within	After five
(dollars in thousands)	or less		five years	years	Total
Commercial
Owner occupied RE	$	22,287	115,323	96,143		233,753
Non-owner occupied RE		35,109	127,437	58,718		221,264
Construction		5,068	26,986	11,789		43,843
Business		63,113	90,734	26,434		180,281
Total commercial loans		125,577	360,480	193,084		679,141
Consumer
Real estate		29,212	38,798	107,944		175,954
Home equity		6,617	29,797	82,474		118,888
Construction		15,226	2,067	31,056		48,349
Other		7,170	7,010	2,350		16,530
Total consumer loans		58,225	77,672	223,824		359,721
Total gross loans, net of deferred fees	$	183,802	438,152	416,908		1,038,862
Loans maturing after one year with:
Fixed interest rates					$	639,180
Floating interest rates						215,880

11

	December 31, 2015
			After one
	One year		but within	After five
	or less		five years	years	Total
Commercial
Owner occupied RE	$	16,836	126,156	93,091		236,083
Non-owner occupied RE		40,690	111,087	53,827		205,604
Construction		9,183	23,206	9,362		41,751
Business		64,099	83,435	24,209		171,743
Total commercial loans		130,808	343,884	180,489		655,181
Consumer
Real estate		28,348	35,509	110,945		174,802
Home equity		5,105	31,326	80,132		116,563
Construction		14,095	1,445	27,778		43,318
Other		6,430	6,270	2,380		15,080
Total consumer		53,978	74,550	221,235		349,763
Total gross loan, net of deferred fees	$	184,786	418,434	401,724		1,004,944
Loans maturing after one year with:
Fixed interest rates					$	612,251
Floating interest rates						207,907

Summary of nonperforming assets, including nonaccruing TDRs

(dollars in thousands)	March 31, 2016		December 31, 2015
Commercial
Owner occupied RE	$	455	704
Non-owner occupied RE		4,066	4,170
Construction		-	-
Business		736	779
Consumer
Real estate		-	-
Home equity		257	258
Construction		-	-
Other		-	5
Nonaccruing troubled debt restructurings		675	701
Total nonaccrual loans, including nonaccruing TDRs		6,189	6,617
Other real estate owned		2,284	2,475
Total nonperforming assets	$	8,473	9,092
Nonperforming assets as a percentage of:
Total assets		0.68%	0.75%
Gross loans		0.82%	0.90%
Total loans over 90 days past due	$	4,153	4,547
Loans over 90 days past due and still accruing		-	-
Accruing troubled debt restructurings	$	6,122	7,266

Summary of key information for impaired loans

	March 31, 2016
			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	$	635	612	158	95
Non-owner occupied RE		9,124	5,671	2,530	861
Construction		1,850	1,768	382	32
Business		3,425	2,692	1,621	1,288
Total commercial		15,034	10,743	4,691	2,276
Consumer
Real estate		1,118	1,118	802	456
Home equity		260	257	194	185
Construction		-	-	-	-
Other		193	193	-	-
Total consumer		1,571	1,568	996	641
Total	$	16,605	12,311	5,687	2,917

15

			December 31, 2015
			Recorded investment
				Impaired loans
	Unpaid			with related	Related
	Principal		Impaired	allowance for	allowance for
	Balance		loans	loan losses	loan losses
Commercial
Owner occupied RE	$	964	863	863	260
Non-owner occupied RE		9,144	5,792	4,161	1,321
Construction		1,855	1,787	397	31
Business		4,756	3,861	2,936	1,932
Total commercial		16,719	12,303	8,357	3,544
Consumer
Real estate		1,121	1,121	805	489
Home equity		260	258	-	-
Construction		-	-	-	-
Other		201	201	201	191
Total consumer		1,582	1,580	1,006	680
Total	$	18,301	13,883	9,363	4,224

Average recorded investment and interest income recognized on impaired loans

	Three months ended			Three months ended		Year ended
	March 31, 2016			March 31, 2015		December 31, 2015
	Average		Recognized	Average	Recognized	Average		Average
	recorded		interest	recorded	interest	recorded		recorded
(dollars in thousands)	investment		income	investment	income	investment		investment
Commercial
Owner occupied RE	$	615	7	1,101	22	$	884	6
Non-owner occupied RE		5,731	48	4,915	22		6,137	128
Construction		1,778	30	2,332	18		1,888	74
Business		2,760	30	4,413	36		4,067	148
Total commercial		10,884	115	12,761	98		12,976	356
Consumer
Real estate		1,119	9	1,663	11		1,112	46
Home equity		195	2	346	2		252	7
Construction		-	-	-	-		-	-
Other		257	-	266	2		208	7
Total consumer		1,571	11	2,275	15		1,572	60
Total	$	12,455	126	15,036	113		14,548	416

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

	Three months ended March 31, 2016
		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		$	2,347		3,187		338		3,800			2,070		1,202	313	372		13,629
Provision for loan losses			151		122		104		(158	)		248		61	38	59		625
Loan charge-offs			(5	)	(75	)	-		(36	)		(187	)	-	-	(91	)	(394	)
Loan recoveries			-		2		-		33			-		-	-	3		38
Net loan charge-offs			(5	)	(73	)	-		(3	)		(187	)	-	-	(88	)	(356	)
Balance, end of period		$	2,493		3,236		442		3,639			2,131		1,263	351	343		13,898
Net charge-offs to average loans (annualized)																		0.14%
Allowance for loan losses to gross loans																		1.34%
Allowance for loan losses to nonperforming loans																		224.56%
	Three months ended March 31, 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			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%

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

	March 31, 2016
	Allowance for loan losses					Recorded investment in loans
(dollars in thousands)		Commercial		Consumer	Total		Commercial	Consumer	Total
Individually evaluated		$	2,276	641	2,917		10,743	1,568	12,311
Collectively evaluated			7,535	3,446	10,981		668,398	358,153	1,026,551
Total		$	9,811	4,087	13,898		679,141	359,721	1,038,862
	December 31, 2015
	Allowance for loan losses					Recorded investment in loans
		Commercial		Consumer	Total		Commercial	Consumer	Total
Individually evaluated		$	3,544	680	4,224		12,303	1,580	13,883
Collectively evaluated			6,128	3,277	9,405		642,878	348,183	991,061
Total		$	9,672	3,957	13,629		655,181	349,763	1,004,944

Commercial [Member]

Financing Receivable, Allowance for Credit Losses [Line Items]

Summary of breakdown of outstanding loans by risk category

	March 31, 2016
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE	Construction	Business	Total
Pass	$	230,892	214,183	42,076	171,263	658,414
Special mention		1,675	1,362	-	5,129	8,166
Substandard		1,186	5,719	1,767	3,889	12,561
Doubtful		-	-	-	-	-
	$	233,753	221,264	43,843	180,281	679,141
	December 31, 2015
	Owner		Non-owner
	occupied RE		occupied RE	Construction	Business	Total
Pass	$	230,460	198,144	39,678	161,920	630,202
Special mention		3,887	1,574	286	5,511	11,258
Substandard		1,736	5,886	1,787	4,312	13,721
Doubtful		-	-	-	-	-
	$	236,083	205,604	41,751	171,743	655,181

Outstanding loans which include loans on nonaccrual by past due status

	March 31, 2016
	Owner		Non-owner
(dollars in thousands)	occupied RE		occupied RE	Construction	Business	Total
Current	$	233,726	217,095	43,461	179,209	673,491
30-59 days past due		27	52	-	245	324
60-89 days past due		-	1,430	-	-	1,430
Greater than 90 Days		-	2,687	382	827	3,896
	$	233,753	221,264	43,843	180,281	679,141
	December 31, 2015
	Owner		Non-owner
	occupied RE		occupied RE	Construction	Business	Total
Current	$	235,795	201,381	41,354	170,644	649,174
30-59 days past due		-	-	-	205	205
60-89 days past due		43	1,452	-	18	1,513
Greater than 90 Days		245	2,771	397	876	4,289
	$	236,083	205,604	41,751	171,743	655,181

Consumer [Member]

Financing Receivable, Allowance for Credit Losses [Line Items]

Summary of breakdown of outstanding loans by risk category

	March 31, 2016
(dollars in thousands)	Real estate		Home equity	Construction	Other	Total
Pass	$	173,624	115,370	47,354	16,169	352,517
Special mention		1,084	2,703	-	296	4,083
Substandard		1,246	815	995	65	3,121
Doubtful		-	-	-	-	-
	$	175,954	118,888	48,349	16,530	359,721
	December 31, 2015
	Real estate		Home equity	Construction	Other	Total
Pass	$	172,589	112,080	42,319	14,967	341,955
Special mention		961	3,388	-	45	4,394
Substandard		1,252	1,095	999	68	3,414
Doubtful		-	-	-	-	-
	$	174,802	116,563	43,318	15,080	349,763

Outstanding loans which include loans on nonaccrual by past due status

	March 31, 2016
(dollars in thousands)	Real estate		Home equity	Construction	Other	Total
Current	$	175,613	118,631	48,349	16,522	359,115
30-59 days past due		341	-	-	8	349
60-89 days past due		-	-	-	-	-
Greater than 90 Days		-	257	-	-	257
	$	175,954	118,888	48,349	16,530	359,721
	December 31, 2015
	Real estate		Home equity	Construction	Other	Total
Current	$	174,576	116,305	43,258	14,994	349,133
30-59 days past due		187	-	60	86	333
60-89 days past due		39	-	-	-	39
Greater than 90 Days		-	258	-	-	258
	$	174,802	116,563	43,318	15,080	349,763