Loans Receivable and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Company's Loan Portfolio

A summary of the Company’s loan portfolio at March 31, 2014 and December 31, 2013 is as follows:

	March 31,			December 31,
(in thousands)	2014			2013
Real Estate
Commercial	$	218,051		$	223,165
Residential		103,019			106,198
Construction		260			260
Construction to permanent		12,650			11,303
Commercial		38,752			35,061
Consumer home equity		43,717			44,081
Consumer installment		3,389			2,990
Total Loans		419,838			423,058
Premiums on purchased loans		182			200
Net deferred costs		583			571
Allowance for loan losses		(5,480	)		(5,681	)
Loans receivable, net	$	415,123		$	418,148

Changes in the Allowance for Loan Losses for the Periods

The changes in the allowance for loan losses for the periods shown are as follows:

	Three months ended
	March 31,
(in thousands)	2014			2013
Balance, beginning of period	$	5,681		$	6,016
Provision for loan losses		—			(30	)
Loans charged-off		(217	)		(306	)
Recoveries of loans previously charged-off		16			37
Balance, end of period	$	5,480		$	5,717

Allowance for Loan Losses to Loan Portfolio Segment

The following table sets forth activity in our allowance for loan losses, by loan type, for the three months ended March 31, 2014. The following table also details the amount of loans receivable, net, that are evaluated individually, and collectively, for impairment, and the related portion of the allowance for loan losses that is allocated to each loan portfolio segment.

(in thousands) Three months ended March 31, 2014	Commercial			Commercial Real Estate			Construction		Construction to Permanent		Residential			Consumer			Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	2,285		$	1,585		$	260	$	25	$	795		$	534		$	197	$	5,681
Charge-offs		(9	)		—			—		—		(178	)		(30	)		—		(217	)
Recoveries		—			—			—		—		15			1			—		16
Provision		95			(265	)		—		9		72			34			55		—
Ending Balance	$	2,371		$	1,320		$	260	$	34	$	704		$	539		$	252	$	5,480
Ending balance: individually evaluated for impairment	$	1,500		$	17		$	260	$	—	$	21		$	2		$	—	$	1,800
Ending balance: collectively evaluated for impairment		871			1,303			—		34		683			537			252		3,680
Total Allowance for Loan Losses	$	2,371		$	1,320		$	260	$	34	$	704		$	539		$	252	$	5,480
Total Loans ending balance	$	38,752		$	218,051		$	260	$	12,650	$	103,019		$	47,106		$	—	$	419,838
Ending balance: individually evaluated for impairment	$	6,052		$	8,855		$	260	$	—	$	5,179		$	587		$	—	$	20,933
Ending balance : collectively evaluated for impairment	$	32,700		$	209,196		$	—	$	12,650	$	97,840		$	46,519		$	—	$	398,905

The following table sets forth activity in our allowance for loan losses, by loan type, for the year ended December 31, 2013. The following table also details the amount of loans receivable, net, that are evaluated individually, and collectively, for impairment, and the related portion of the allowance for loan losses that is allocated to each loan portfolio segment.

(in thousands) 2013	Commercial			Commercial Real Estate			Construction			Construction to Permanent		Residential			Consumer			Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	942		$	3,509		$	311		$	19	$	897		$	217		$	121	$	6,016
Charge-offs		(63	)		(403	)		(205	)		—		(919	)		(78	)		—		(1,668	)
Recoveries		4			335			20			—		1			3			—		363
Provision		1,402			(1,856	)		134			6		816			392			76		970
Ending Balance	$	2,285		$	1,585		$	260		$	25	$	795		$	534		$	197	$	5,681
Ending balance: individually evaluated for impairment	$	1,500		$	31		$	260		$	—	$	98		$	2		$	—	$	1,891
Ending balance: collectively evaluated for impairment		785			1,554			—			25		697			532			197		3,790
Total Allowance for Loan Losses	$	2,285		$	1,585		$	260		$	25	$	795		$	534		$	197	$	5,681
Total Loans ending balance	$	35,061		$	223,165		$	260		$	11,303	$	106,198		$	47,071		$	—	$	423,058
Ending balance: individually evaluated for impairment		6,152			7,767			260			1,197		6,024			593			—		21,993
Ending balance : collectively evaluated for impairment	$	28,909		$	215,398		$	—		$	10,106	$	100,174		$	46,478		$	—	$	401,065

Credit Risk Exposure of Loans Receivable, by Loan Type and Credit Quality Indicator

The following table details the credit risk exposure of loans receivable, by loan type and credit quality indicator at March 31, 2014:

CREDIT RISK PROFILE BY CREDIT WORTHINESS CATEGORY

(in thousands)	Commercial				Commercial Real Estate				Construction				Construction to Permanent				Residential Real Estate				Consumer
LTVs:	< 75%		>= 75%		< 75%		>= 75%		< 75%		>= 75%		< 75%		>= 75%		< 75%		>= 75%		< 75%		>= 75%		Other		Total
Internal Risk Rating
Pass	$	27,343	$	3,760	$	195,649	$	7,178	$	—	$	—	$	8,050	$	4,600	$	81,304	$	19,640	$	42,661	$	3,756	$	654	$	394,595
Special Mention		159		—		5,774		2,477		—		—		—		—		—		—		—		—		—		8,410
Substandard		7,490		—		3,664		3,309		60		200		—		—		1,576		499		35		—		—		16,833
	$	34,992	$	3,760	$	205,087	$	12,964	$	60	$	200	$	8,050	$	4,600	$	82,880	$	20,139	$	42,696	$	3,756	$	654	$	419,838

CREDIT RISK PROFILE

	Commercial		Commercial Real Estate		Construction		Construction to Permanent		Residential
(in thousands)									Real Estate		Consumer		Totals
Performing	$	32,700	$	216,302	$	—	$	12,650	$	100,944	$	47,076	$	409,672
Non Performing		6,052		1,749		260		—		2,075		30		10,166
Total	$	38,752	$	218,051	$	260	$	12,650	$	103,019	$	47,106	$	419,838

The following table details the credit risk exposure of loans receivable, by loan type and credit quality indicator at December 31, 2013:

CREDIT RISK PROFILE BY CREDIT WORTHINESS CATEGORY

(in thousands)	Commercial				Commercial Real Estate				Construction				Construction to Permanent				Residential Real Estate				Consumer
LTVs:	< 75%		>= 75%		< 75%		>= 75%		< 75%		>= 75%		< 75%		>= 75%		< 75%		>= 75%		< 75%		>= 75%		Other		Total
Internal Risk Rating
Pass	$	23,493	$	3,898	$	199,118	$	7,951	$	—	$	—	$	10,106	$	—	$	82,704	$	20,592	$	42,542	$	3,839	$	650	$	394,893
Special Mention		167		—		6,573		2,502		—		—		—		—		—		—		—		—		—		9,242
Substandard		7,503		—		3,690		3,331		60		200		1,197		—		1,976		926		9		31		—		18,923
	$	31,163	$	3,898	$	209,381	$	13,784	$	60	$	200	$	11,303	$	—	$	84,680	$	21,518	$	42,551	$	3,870	$	650	$	423,058

CREDIT RISK PROFILE

	Commercial		Commercial Real Estate		Construction		Construction to Permanent		Residential
(in thousands)									Real Estate		Consumer		Totals
Performing	$	28,909	$	221,401	$	—	$	10,106	$	103,296	$	47,038	$	410,750
Non Performing		6,152		1,764		260		1,197		2,902		33		12,308
Total	$	35,061	$	223,165	$	260	$	11,303	$	106,198	$	47,071	$	423,058

Delinquency Status, of Non-Accrual Loans and Past Due Matured Loans

The following table sets forth the detail, and delinquency status, of non-accrual loans and past due loans at March 31, 2014:

	Non-Accrual and Past Due Loans
	Non-Accrual Loans
(in thousands) 2014	31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		>90 Days Past Due and Accruing		Total Non- Accrual and Past Due Loans
Commercial
Substandard	$	—	$	—	$	2	$	2	$	6,050	$	—	$	6,052
Total Commercial	$	—	$	—	$	2	$	2	$	6,050	$	—	$	6,052
Commercial Real Estate
Substandard	$	—	$	—	$	313	$	313	$	1,436	$	834	$	2,583
Total Commercial Real Estate	$	—	$	—	$	313	$	313	$	1,436	$	834	$	2,583
Construction
Substandard	$	—	$	—	$	260	$	260	$	—	$	—	$	260
Total Construction	$	—	$	—	$	260	$	260	$	—	$	—	$	260
Residential Real Estate
Substandard	$	—	$	—	$	2,075	$	2,075	$	—	$	—	$	2,075
Total Residential Real Estate	$	—	$	—	$	2,075	$	2,075	$	—	$	—	$	2,075
Consumer
Substandard	$	—	$	—	$	2	$	2	$	28	$	—	$	30
Total Consumer	$	—	$	—	$	2	$	2	$	28	$	—	$	30
Total	$	—	$	—	$	2,652	$	2,652	$	7,514	$	834	$	11,000

The following table sets forth the detail, and delinquency status, of non-accrual loans and past due loans at December 31, 2013:

	Non-Accrual and Past Due Loans
	Non-Accrual Loans
(in thousands) 2013	31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		>90 Days Past Due and Accruing		Total Non- Accrual and Past Due Loans
Commercial
Pass	$	—	$	—	$	—	$	—	$	—	$	25	$	25
Substandard		—		—		2		2		6,150		—		6,152
Total Commercial	$	—	$	—	$	2	$	2	$	6,150	$	25	$	6,177
Commercial Real Estate
Substandard	$	—	$	—	$	1,764	$	1,764	$	—	$	841	$	2,605
Total Commercial Real Estate	$	—	$	—	$	1,764	$	1,764	$	—	$	841	$	2,605
Construction
Substandard	$	—	$	—	$	260	$	260	$	—	$	—	$	260
Total Construction	$	—	$	—	$	260	$	260	$	—	$	—	$	260
Construction to Permanent
Substandard	$	—	$	—	$	—	$	—	$	1,197	$	—	$	1,197
Total Construction to Permanent	$	—	$	—	$	—	$	—	$	1,197	$	—	$	1,197
Residential Real Estate
Substandard	$	—	$	—	$	2,523	$	2,523	$	379	$	—	$	2,902
Total Residential Real Estate	$	—	$	—	$	2,523	$	2,523	$	379	$	—	$	2,902
Consumer
Substandard	$	—	$	—	$	2	$	2	$	31	$	—	$	33
Total Consumer	$	—	$	—	$	2	$	2	$	31	$	—	$	33
Total	$	—	$	—	$	4,551	$	4,551	$	7,757	$	866	$	13,174

Delinquency Status of Loans Receivable, by Performing and Non-Performing Loans

The following table sets forth the detail and delinquency status of loans receivable, by performing and non-performing loans at March 31, 2014.

	Performing (Accruing) Loans
(in thousands) 2014	31-60 Days Past Due		61-90 Days Past Due		Total Past Due		Current		Total Performing Loans		Total Non- Accrual and Past Due Loans		Total Loans
Commercial
Pass	$	120	$	—	$	120	$	30,983	$	31,103	$	—	$	31,103
Special Mention		16		—		16		143		159		—		159
Substandard		—		—		—		1,438		1,438		6,052		7,490
Total Commercial	$	136	$	—	$	136	$	32,564	$	32,700	$	6,052	$	38,752
Commercial Real Estate
Pass	$	654	$	1,188	$	1,842	$	200,986	$	202,828	$	—	$	202,828
Special Mention		—		—		—		8,251		8,251		—		8,251
Substandard		—		—		—		4,389		4,389		2,583		6,972
Total Commercial Real Estate	$	654	$	1,188	$	1,842	$	213,626	$	215,468	$	2,583	$	218,051
Construction
Substandard	$	—	$	—	$	—	$	—	$	—	$	260	$	260
Total Construction	$	—	$	—	$	—	$	—	$	—	$	260	$	260
Construction to Permanent
Pass	$	—	$	—	$	—	$	12,650	$	12,650	$	—	$	12,650
Total Construction to Permanent	$	—	$	—	$	—	$	12,650	$	12,650	$	—	$	12,650
Residential Real Estate
Pass	$	53	$	—	$	53	$	100,891	$	100,944	$	—	$	100,944
Substandard		—		—		—		—		—		2,075		2,075
Total Residential Real Estate	$	53	$	—	$	53	$	100,891	$	100,944	$	2,075	$	103,019
Consumer
Pass	$	4	$	—	$	4	$	47,067	$	47,071	$	—	$	47,071
Substandard		—		—		—		5		5		30		35
Total Consumer	$	4	$	—	$	4	$	47,072	$	47,076	$	30	$	47,106
Total	$	847	$	1,188	$	2,035	$	406,803	$	408,838	$	11,000	$	419,838

The following table sets forth the detail and delinquency status of loans receivable by performing and non-performing loans at December 31, 2013.

	Performing (Accruing) Loans
(in thousands) 2013	31-60 Days Past Due		61-89 Days Past Due		Total Past Due		Current		Total Loan Balances		Total Non- Accrual and Past Due Loans		Total Loans Receivable
Commercial
Pass	$	725	$	—	$	725	$	26,641	$	27,366	$	25	$	27,391
Special Mention		—		—		—		167		167		—		167
Substandard		—		—		—		1,351		1,351		6,152		7,503
Total Commercial	$	725	$	—	$	725	$	28,159	$	28,884	$	6,177	$	35,061
Commercial Real Estate
Pass	$	1,858	$	266	$	2,124	$	204,944	$	207,068	$	—	$	207,068
Special Mention		—		—		—		9,075		9,075		—		9,075
Substandard		—		—		—		4,417		4,417		2,605		7,022
Total Commercial Real Estate	$	1,858	$	266	$	2,124	$	218,436	$	220,560	$	2,605	$	223,165
Construction
Substandard	$	—	$	—	$	—	$	—	$	—	$	260	$	260
Total Construction	$	—	$	—	$	—	$	—	$	—	$	260	$	260
Construction to Permanent
Pass	$	—	$	—	$	—	$	10,106	$	10,106	$	—	$	10,106
Substandard		—		—		—		—		—		1,197		1,197
Total Construction to Permanent	$	—	$	—	$	—	$	10,106	$	10,106	$	1,197	$	11,303
Residential Real Estate
Pass	$	32	$	—	$	32	$	103,264	$	103,296	$	—	$	103,296
Substandard		—		—		—		—		—		2,902		2,902
Total Residential Real Estate	$	32	$	—	$	32	$	103,264	$	103,296	$	2,902	$	106,198
Consumer
Pass	$	350	$	560	$	910	$	46,121	$	47,031	$	—	$	47,031
Substandard		7		—		7		—		7		33		40
Total Consumer	$	357	$	560	$	917	$	46,121	$	47,038	$	33	$	47,071
Total	$	2,972	$	826	$	3,798	$	406,085	$	409,884	$	13,174	$	423,058

Summarizes Impaired Loans

The following table summarizes impaired loans as of March 31, 2014:

(in thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial	$	2	$	160	$	—
Commercial Real Estate		8,699		9,537		—
Construction		—		—		—
Construction to Permanent		—		—
Residential		4,680		7,203		—
Consumer		585		664		—
Total:	$	13,966	$	17,564	$	—
With an allowance recorded:
Commercial	$	6,050	$	6,050	$	1,500
Commercial Real Estate		156		210		17
Construction		260		487		260
Construction to Permanent		—		—		—
Residential		499		545		21
Consumer		2		2		2
Total:	$	6,967	$	7,294	$	1,800
Commercial	$	6,052	$	6,210	$	1,500
Commercial Real Estate		8,855		9,747		17
Construction		260		487		260
Construction to Permanent		—		—		—
Residential		5,179		7,748		21
Consumer		587		666		2
Total:	$	20,933	$	24,858	$	1,800

Impaired loans consist of non-accrual loans, TDRs and loans that were previously classified as TDRs that have been upgraded.

The following table summarizes impaired loans as of December 31, 2013:

(in thousands)
	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial	$	2	$	151	$	—
Commercial Real Estate		7,597		8,316		—
Construction		—		—		—
Construction to Permanent		1,197		1,425		—
Residential		5,098		7,632		—
Consumer		591		670		—
Total:	$	14,485	$	18,194	$	—
With an allowance recorded:
Commercial	$	6,150	$	6,150	$	1,500
Commercial Real Estate		170		215		31
Construction		260		487		260
Construction to Permanent		—		—		—
Residential		926		1,066		98
Consumer		2		2		2
Total:	$	7,508	$	7,920	$	1,891
Commercial	$	6,152	$	6,301	$	1,500
Commercial Real Estate		7,767		8,531		31
Construction		260		487		260
Construction to Permanent		1,197		1,425		—
Residential		6,024		8,698		98
Consumer		593		672		2
Total:	$	21,993	$	26,114	$	1,891

Total Troubled Debt Restructured Loans Included in Impaired Loans

The following table presents the total troubled debt restructured loans as of March 31, 2014:

	Accrual				Non-accrual				Total
	# of				# of				# of
(Dollars in thousands)	Loans		Amount		Loans		Amount		Loans		Amount
Commercial Real Estate		2	$	2,128		1	$	1,280		3	$	3,408
Total Troubled Debt Restructurings		2	$	2,128		1	$	1,280		3	$	3,408

The following table presents the total troubled debt restructured loans as of December 31, 2013:

	Accrual				Non-accrual				Total
	# of				# of				# of
(Dollars in thousands)	Loans		Amount		Loans		Amount		Loans		Amount
Construction to permanent		1	$	991		1	$	1,197		2	$	2,188
Total Troubled Debt Restructurings		1	$	991		1	$	1,197		2	$	2,188

Summarizes Loans that were Modified in a Troubled Debt Restructuring

The following table summarizes loans that were modified in a troubled debt restructuring during the three months ended March 31, 2014.

	Three months ended March 31, 2014
			Pre-Modification				Post-Modification
	Number of		Outstanding Recorded		Number of		Outstanding Recorded
(Dollars in thousands)	Relationships		Investment		Relationships		Investment
Troubled Debt Restructurings
Commercial Real Estate		2	$	2,439		2	$	2,430
Total Troubled Debt Restructurings		2	$	2,439		2	$	2,430