Loans and Allowance (Tables)

6 Months Ended

Jun. 30, 2017

Loans and Allowance [Abstract]

Schedule of Classes of Loans

Classes of loans at June 30, 2017 and December 31, 2016include:

	June 30,		December 31,
	2017		2016
Real estate
Commercial	$	298,801	$	302,577
Commercial construction and development		29,008		22,453
Consumer closed end first mortgage		467,802		478,848
Consumer open end and junior liens		70,572		71,222
Total real estate loans		866,183		875,100
Other loans
Consumer loans
Auto		18,675		18,939
Boat/RVs		158,556		141,602
Other		5,605		5,892
Commercial and industrial		139,145		131,103
Total other loans		321,981		297,536
Total loans		1,188,164		1,172,636
Undisbursed loans in process		(9,753)		(8,691)
Unamortized deferred loan costs, net		5,942		5,557
Allowance for loan losses		(12,426)		(12,382)
Net loans	$	1,171,927	$	1,157,120

Non-Accrual Loans Segregated by Class of Loans

Nonaccrual loans, segregated by class of loans, as of June 30, 2017 and December 31, 2016 are as follows:

	June 30,		December 31,
	2017		2016
Real estate
Commercial	$	1,199	$	912
Commercial construction and development		-		-
Consumer closed end first mortgage		1,679		3,626
Consumer open end and junior liens		238		335
Consumer loans
Auto		4		5
Boat/RVs		342		224
Other		10		24
Commercial and industrial		39		18
Total nonaccrual loans	$	3,511	$	5,144

Age Analysis of Past Due Loans Segregated by Class of Loans

An age analysis of the Company’s past due loans, segregated by class of loans, as of June 30, 2017 and December 31, 2016 are as follows:

	June 30, 2017
		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable		Total Loans 90 Days Past Due and Accruing
Real estate
Commercial	$	614	$	11	$	1,081	$	1,706	$	297,095	$	298,801	$	-
Commercial construction and development		157		-		-		157		28,851		29,008		-
Consumer closed end first mortgage		3,603		380		1,500		5,483		462,319		467,802		24
Consumer open end and junior liens		243		76		200		519		70,053		70,572		-
Consumer loans
Auto		48		19		2		69		18,606		18,675		-
Boat/RVs		805		336		156		1,297		157,259		158,556		-
Other		55		15		13		83		5,522		5,605		3
Commercial and industrial		230		4		37		271		138,874		139,145		-
Total	$	5,755	$	841	$	2,989	$	9,585	$	1,178,579	$	1,188,164	$	27

	December 31, 2016
		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable		Total Loans 90 Days Past Due and Accruing
Real estate
Commercial	$	854	$	142	$	785	$	1,781	$	300,796	$	302,577	$	-
Commercial construction and development		-		-		-		-		22,453		22,453		-
Consumer closed end first mortgage		6,789		1,554		3,675		12,018		466,830		478,848		237
Consumer open end and junior liens		512		166		304		982		70,240		71,222		-
Consumer loans
Auto		103		25		5		133		18,806		18,939		-
Boat/RVs		1,376		305		213		1,894		139,708		141,602		-
Other		89		26		13		128		5,764		5,892		-
Commercial and industrial		497		32		8		537		130,566		131,103		-
Total	$	10,220	$	2,250	$	5,003	$	17,473	$	1,155,163	$	1,172,636	$	237

Impaired Loans

The following tables present impaired loans as of and for the three and six month periods ended June 30, 2017 and 2016 and as of and for the year ended December 31, 2016. 

	June 30, 2017
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans - QTD		Average Investment in Impaired Loans - YTD		Interest Income Recognized - QTD		Interest Income Recognized - YTD
Loans without a specific valuation allowance
Real estate
Commercial	$	809	$	809	$	-	$	811	$	763	$	-	$	-
Commercial construction and development		761		761		-		776		792		8		17
Consumer closed end first mortgage		781		781		-		1,315		1,499		-		-
Commercial and industrial		172		172		-		176		179		1		3
Loans with a specific valuation allowance
Real estate
Commercial		214		214		100		214		214		-		-
Total
Real estate
Commercial	$	1,023	$	1,023	$	100	$	1,025	$	977	$	-	$	-
Commercial construction and development	$	761	$	761	$	-	$	776	$	792	$	8	$	17
Consumer closed end first mortgage	$	781	$	781	$	-	$	1,315	$	1,499	$	-	$	-
Commercial and industrial	$	172	$	172	$	-	$	176	$	179	$	1	$	3
Total	$	2,737	$	2,737	$	100	$	3,292	$	3,447	$	9	$	20

	December 31, 2016
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans		Interest Income Recognized
Loans without a specific valuation allowance
Real estate
Commercial	$	665	$	665	$	-	$	2,207	$	68
Commercial construction and development		822		822		-		874		40
Consumer closed end first mortgage		1,869		1,869		-		1,328		-
Consumer open end and junior liens		-		-		-		193		-
Commercial and industrial		187		187		-		204		1
Loans with a specific valuation allowance
Real estate
Commercial		214		214		100		416		-
Total
Real estate
Commercial	$	879	$	879	$	100	$	2,623	$	68
Commercial construction and development	$	822	$	822	$	-	$	874	$	40
Consumer closed end first mortgage	$	1,869	$	1,869	$	-	$	1,328	$	-
Consumer open end and junior liens	$	-	$	-	$	-	$	193	$	-
Commercial and industrial	$	187	$	187	$	-	$	204	$	1
Total	$	3,757	$	3,757	$	100	$	5,222	$	109

	June 30, 2016
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Average Investment in Impaired Loans - QTD		Average Investment in Impaired Loans - YTD		Interest Income Recognized - QTD		Interest Income Recognized - YTD
Loans without a specific valuation allowance
Real estate
Commercial	$	2,896	$	2,896	$	-	$	3,022	$	3,080	$	24	$	48
Commercial construction and development		853		853		-		856		907		9		21
Consumer closed end first mortgage		1,126		1,126		-		1,126		1,126		-		-
Consumer open end and junior liens		-		-		-		243		322		-		-
Commercial and industrial		200		200		-		205		208		-		-
Loans with a specific valuation allowance
Real estate
Commercial		410		410		100		464		534		-		-
Total
Real estate
Commercial	$	3,306	$	3,306	$	100	$	3,486	$	3,614	$	24	$	48
Commercial construction and development	$	853	$	853	$	-	$	856	$	907	$	9	$	21
Consumer closed end first mortgage	$	1,126	$	1,126	$	-	$	1,126	$	1,126	$	-	$	-
Consumer open end and junior liens	$	-	$	-	$	-	$	243	$	322	$	-	$	-
Commercial and industrial	$	200	$	200	$	-	$	205	$	208	$	-	$	-
Total	$	5,485	$	5,485	$	100	$	5,916	$	6,177	$	33	$	69

Commercial and Retail Credit Exposure Credit Risk Profile by Internal Rating

	June 30, 2017
		Commercial								Consumer
		Pass		Special Mention		Substandard		Doubtful		Pass		Special Mention		Substandard		Total
Real estate
Commercial		$	288,365	$	7,285	$	3,128	$	23							$	298,801
Commercial construction and development			27,841		406		761		-								29,008
Consumer closed end first mortgage										$	464,234	$	-	$	3,568		467,802
Consumer open end and junior liens											70,286		-		286		70,572
Other loans
Consumer loans
Auto											18,668		-		7		18,675
Boat/RVs											158,160		-		396		158,556
Other											5,565		-		40		5,605
Commercial and industrial			130,745		8,313		87		-								139,145
		$	446,951	$	16,004	$	3,976	$	23	$	716,913	$	-	$	4,297	$	1,188,164

	December 31, 2016
		Commercial								Consumer
		Pass		Special Mention		Substandard		Doubtful		Pass		Special Mention		Substandard		Total
Real estate
Commercial		$	295,548	$	3,705	$	3,297	$	27							$	302,577
Commercial construction and development			21,782		254		417		-								22,453
Consumer closed end first mortgage										$	473,329	$	-	$	5,519		478,848
Consumer open end and junior liens											70,769		-		453		71,222
Other loans
Consumer loans
Auto											18,931		-		8		18,939
Boat/RVs											141,294		-		308		141,602
Other											5,859		-		33		5,892
Commercial and industrial			128,436		2,513		154		-								131,103
		$	445,766	$	6,472	$	3,868	$	27	$	710,182	$	-	$	6,321	$	1,172,636

Activity in Allowance for Loan Losses by Portfolio Segment

The following table details activity in the allowance for loan losses by portfolio segment for the three and six month periods ended June 30, 2017 and 2016, respectively.  Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other segments.

	Three Months Ended June 30, 2017
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of period	$	7,397	$	2,279	$	2,706	$	12,382
Provision charged to expense		144		24		132		300
Losses charged off		(12)		(84)		(206)		(302)
Recoveries		6		4		36		46
Balance, end of period	$	7,535	$	2,223	$	2,668	$	12,426

	Six Months Ended June 30, 2017
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	7,358	$	2,303	$	2,721	$	12,382
Provision charged to expense		176		41		283		500
Losses charged off		(12)		(129)		(410)		(551)
Recoveries		13		8		74		95
Balance, end of period	$	7,535	$	2,223	$	2,668	$	12,426

	Three Months Ended June 30, 2016
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of period	$	7,208	$	2,629	$	2,833	$	12,670
Provision charged to expense		(49)		23		176		150
Losses charged off		(29)		(64)		(200)		(293)
Recoveries		2		1		74		77
Balance, end of period	$	7,132	$	2,589	$	2,883	$	12,604

	Six Months Ended June 30, 2016
	Commercial		Mortgage		Consumer		Total
Allowance for loan losses:
Balance, beginning of year	$	7,090	$	2,683	$	2,868	$	12,641
Provision charged (credited) to expense		71		85		194		350
Losses charged off		(33)		(184)		(338)		(555)
Recoveries		4		5		159		168
Balance, end of period	$	7,132	$	2,589	$	2,883	$	12,604

The following tables provide a breakdown of the allowance for loan losses and loan portfolio balances by segment as of June 30, 2017 and 2016, and December 31, 2016.

	June 30, 2017
	Commercial		Mortgage		Consumer		Total
Allowance balances
Individually evaluated for impairment	$	100	$	-	$	-	$	100
Collectively evaluated for impairment		7,435		2,223		2,668		12,326
Total allowance for loan losses	$	7,535	$	2,223	$	2,668	$	12,426
Loan balances
Individually evaluated for impairment	$	1,956	$	781	$	-	$	2,737
Collectively evaluated for impairment		464,998		467,021		253,408		1,185,427
Gross loans	$	466,954	$	467,802	$	253,408	$	1,188,164

	June 30, 2016
	Commercial		Mortgage		Consumer		Total
Allowance balances
Individually evaluated for impairment	$	100	$	-	$	-	$	100
Collectively evaluated for impairment		7,032		2,589		2,883		12,504
Total allowance for loan losses	$	7,132	$	2,589	$	2,883	$	12,604
Loan balances
Individually evaluated for impairment	$	4,359	$	1,126	$	-	$	5,485
Collectively evaluated for impairment		396,225		484,122		227,973		1,108,320
Gross loans	$	400,584	$	485,248	$	227,973	$	1,113,805

	December 31, 2016
	Commercial		Mortgage		Consumer		Total
Allowance balances
Individually evaluated for impairment	$	100	$	-	$	-	$	100
Collectively evaluated for impairment		7,258		2,303		2,721		12,282
Total allowance for loan losses	$	7,358	$	2,303	$	2,721	$	12,382
Loan balances
Individually evaluated for impairment	$	1,888	$	1,869	$	-	$	3,757
Collectively evaluated for impairment		454,245		476,979		237,655		1,168,879
Gross loans	$	456,133	$	478,848	$	237,655	$	1,172,636

Troubled Debts Restructured

The following tables describe troubled debts restructured during the three and six month periods ended June 30, 2017 and 2016:

	Three Months Ended
	June 30, 2017					June 30, 2016
	No. of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		No. of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance
Real estate
Consumer closed end first mortgage	3	$	119	$	121	4	$	134	$	141
Consumer open end and junior liens	1		3		3	-		-		-
Other loans
Consumer loans
Boat/RVs	-		-		-	1		8		8

	Six Months Ended
	June 30, 2017					June 30, 2016
	No. of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		No. of Loans	Pre-Modification Recorded Balance		Post-Modification Recorded Balance
Real estate
Consumer closed end first mortgage	4		184		188	9		554		569
Consumer open end and junior liens	1		3		3	-		-		-
Other loans
Consumer loans
Auto	-		-		-	1		4		4
Boat/RVs	-		-		-	3		56		56
Commercial and industrial	1		72		72	1		83		83

Newly Restructured Loans by Types

Newly restructured loans by type for the three and six months ended June 30, 2017 and 2016 are as follows:

	Three Months Ended June 30, 2017
		Rate		Term		Combination		Total Modification
Real estate
Consumer closed end first mortgage	$	-	$	-	$	121	$	121
Consumer open end and junior liens		-		3		-		3

	Three Months Ended June 30, 2016
		Rate		Term		Combination		Total Modification
Real estate
Consumer closed end first mortgage	$	-	$	47	$	94	$	141
Other loans
Consumer loans
Boat/RVs		-		-		8		8

	Six Months Ended June 30, 2017
		Rate		Term		Combination		Total Modification
Real Estate
Consumer closed end first mortgage	$	-	$	-	$	188	$	188
Consumer open end and junior liens		-		3		-		3
Commercial and industrial		-		72		-		72

	Six Months Ended June 30, 2016
		Rate		Term		Combination		Total Modification
Real Estate
Consumer closed end first mortgage	$	-	$	47	$	522	$	569
Other loans
Consumer loans
Auto		-		-		4		4
Boat/RVs		-		48		8		56
Commercial and industrial		-		83		-		83