Loans (Tables)

12 Months Ended

Dec. 31, 2015

The portfolio of loans outstanding consists of:



	December 31, 2015				December 31, 2014
	Amount		Percentage of Total Loans		Amount		Percentage of Total Loans
	(Amounts in thousands)
Commercial and Industrial	$	27,140	3.6	%	$	30,092	4.2	%
Real Estate Construction:
Residential	7,750		1.0		5,859		0.8
Commercial	45,245		6.0		47,921		6.7
Real Estate Mortgage:
Commercial – Owner Occupied	172,040		22.7		176,649		24.8
Commercial – Non-owner Occupied	256,471		33.8		237,918		33.4
Residential – 1 to 4 Family	213,266		28.1		171,894		24.1
Residential – Multifamily	18,113		2.4		25,173		3.5
Consumer	18,476		2.4		17,555		2.5
Total Loans	$	758,501	100.0	%	$	713,061	100.0	%

Analysis of Loans to Related Parties

An analysis of the activity of such related party loans for 2015 and 2014 is as follows:



	2015			2014
	(Amounts in thousands)
Balance, beginning of year	$	20,233		$	19,636
Advances	4,568			5,644
Less: repayments	(4,729		)	(5,047		)
Balance, end of year	$	20,072		$	20,233

Age Analysis of Past Due Loans by Class

An age analysis of past due loans by class follows:



December 31, 2015	30-59 Days Past Due		60-89 Days Past Due	Greater than 90 Days and Not Accruing	Total Past Due	Current	Total Loans		Loans > 90 Days and Accruing
	(Amounts in thousands)
Commercial and Industrial	$	—	—	740	740	26,400	$	27,140	—
Real Estate Construction:
Residential	—		—	—	—	7,750	7,750		—
Commercial	—		—	5,204	5,204	40,041	45,245		—
Real Estate Mortgage:
Commercial – Owner Occupied	812		—	358	1,170	170,870	172,040		—
Commercial – Non-owner Occupied	—		—	4,002	4,002	252,469	256,471		—
Residential – 1 to 4 Family	—		—	3,255	3,255	210,011	213,266		—
Residential – Multifamily	357		—	—	357	17,756	18,113		—
Consumer	31		32	—	63	18,413	18,476		—
Total Loans	$	1,200	32	13,559	14,791	743,710	$	758,501	—



December 31, 2014	30-59 Days Past Due		60-89 Days Past Due	Greater than 90 Days and Not Accruing	Total Past Due	Current	Total Loans		Loans > 90 Days and Accruing
	(Amounts in thousands)
Commercial and Industrial	$	—	1,874	61	1,935	28,157	$	30,092	—
Real Estate Construction:
Residential	—		—	238	238	5,621	5,859		—
Commercial	—		—	10,773	10,773	37,148	47,921		—
Real Estate Mortgage:
Commercial – Owner Occupied	—		—	735	735	175,914	176,649		—
Commercial – Non-owner Occupied	—		—	8,624	8,624	229,294	237,918		—
Residential – 1 to 4 Family	629		20	6,367	7,016	164,878	171,894		—
Residential – Multifamily	364		—	—	364	24,809	25,173		—
Consumer	—		—	94	94	17,461	17,555		—
Total Loans	$	993	1,894	26,892	29,779	683,282	$	713,061	—

Impaired Loans

Impaired loans are set forth in the following tables.



December 31, 2015	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	680	$	1,934	$	—
Real Estate Construction:
Residential	—		—		—
Commercial	1,420		1,517		—
Real Estate Mortgage:
Commercial – Owner Occupied	358		358		—
Commercial – Non-owner Occupied	1,281		1,281		—
Residential – 1 to 4 Family	1,858		1,910		—
Residential – Multifamily	—		—		—
Consumer	—		—		—
	5,597		7,000		—
With an allowance recorded:
Commercial and Industrial	503		504		67
Real Estate Construction:
Residential	—		—		—
Commercial	5,696		8,420		1,149
Real Estate Mortgage:
Commercial – Owner Occupied	4,341		4,370		73
Commercial – Non-owner Occupied	23,303		24,988		486
Residential – 1 to 4 Family	2,426		3,200		709
Residential – Multifamily	356		356		5
Consumer	—		—		—
	36,625		41,838		2,489
Total:
Commercial and Industrial	1,183		2,438		67
Real Estate Construction:
Residential	—		—		—
Commercial	7,116		9,937		1,149
Real Estate Mortgage:
Commercial – Owner Occupied	4,699		4,728		73
Commercial – Non-owner Occupied	24,584		26,269		486
Residential – 1 to 4 Family	4,284		5,110		709
Residential – Multifamily	356		356		5
Consumer	—		—		—
	$	42,222	$	48,838	$	2,489



December 31, 2014	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	61	$	401	$	—
Real Estate Construction:
Residential	—		—		—
Commercial	4,033		4,161		—
Real Estate Mortgage:
Commercial – Owner Occupied	735		1,132		—
Commercial – Non-owner Occupied	8,175		10,616		—
Residential – 1 to 4 Family	2,548		3,291		—
Residential – Multifamily	—		—		—
Consumer	94		94		—
	15,646		19,695		—
With an allowance recorded:
Commercial and Industrial	2,346		2,346		1,040
Real Estate Construction:
Residential	238		979		238
Commercial	10,025		10,025		2,535
Real Estate Mortgage:
Commercial – Owner Occupied	5,216		5,245		114
Commercial – Non-owner Occupied	22,232		22,232		828
Residential – 1 to 4 Family	5,412		5,575		573
Residential – Multifamily	364		364		5
Consumer	—		—		—
	45,833		46,766		5,333
Total:
Commercial and Industrial	2,407		2,747		1,040
Real Estate Construction:
Residential	238		979		238
Commercial	14,058		14,186		2,535
Real Estate Mortgage:
Commercial – Owner Occupied	5,951		6,377		114
Commercial – Non-owner Occupied	30,407		32,848		828
Residential – 1 to 4 Family	7,960		8,866		573
Residential – Multifamily	364		364		5
Consumer	94		94		—
	$	61,479	$	66,461	$	5,333

The following table presents by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2015 and 2014:



	Year Ended December 31,
	2015				2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Amounts in thousands)
Commercial and Industrial	$	3,088	$	45	$	2,686	$	129
Real Estate Construction:
Residential	—		—		816		—
Commercial	10,013		87		15,434		323
Real Estate Mortgage:
Commercial – Owner Occupied	5,548		196		6,966		303
Commercial – Non-owner Occupied	26,554		985		34,854		1,369
Residential – 1 to 4 Family	5,491		113		9,196		242
Residential – Multifamily	359		26		366		20
Consumer	—		—		94		1
Total	$	51,053	$	1,452	$	70,412	$	2,387

Analysis of Credit Risk Profile by Internally Assigned Grades

An analysis of the credit risk profile by internally assigned grades as of December 31, 2015 and 2014 is as follows:



At December 31, 2015	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	25,658	$	688	$	794	$	—	$	27,140
Real Estate Construction:
Residential	7,750		—		—		—		7,750
Commercial	24,210		15,831		5,204		—		45,245
Real Estate Mortgage:
Commercial – Owner Occupied	163,765		7,225		1,050		—		172,040
Commercial – Non-owner Occupied	242,607		7,044		6,820		—		256,471
Residential – 1 to 4 Family	207,911		515		4,840		—		213,266
Residential – Multifamily	17,757		—		356		—		18,113
Consumer	18,475		—		1		—		18,476
Total	$	708,133	$	31,303	$	19,065	$	—	$	758,501



At December 31, 2014	Pass		OAEM		Substandard		Doubtful		Total
	(Amounts in thousands)
Commercial and Industrial	$	27,104	$	642	$	2,346	$	—	$	30,092
Real Estate Construction:
Residential	5,621		—		238		—		5,859
Commercial	34,255		2,893		10,773		—		47,921
Real Estate Mortgage:
Commercial – Owner Occupied	170,685		4,051		1,913		—		176,649
Commercial – Non-owner Occupied	218,230		5,791		13,897		—		237,918
Residential – 1 to 4 Family	162,787		613		8,494		—		171,894
Residential – Multifamily	24,809		—		364		—		25,173
Consumer	17,461		—		94		—		17,555
Total	$	660,952	$	13,990	$	38,119	$	—	$	713,061