LOANS (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Portfolio of Loans Outstanding

The portfolio of loans outstanding consists of the following:

	September 30, 2017				December 31, 2016
	Amount		Percentage of Total Loans		Amount		Percentage of Total Loans
	(amounts in thousands)
Commercial and Industrial	$	28,046	2.9	%	$	26,774	3.1	%
Real Estate Construction:
Residential	17,725		1.9		8,825		1.0
Commercial	70,100		7.3		58,469		6.9
Real Estate Mortgage:
Commercial – Owner Occupied	114,146		12.0		123,898		14.5
Commercial – Non-owner Occupied	275,314		28.9		268,123		31.5
Residential – 1 to 4 Family	381,467		40.0		309,340		36.3
Residential – Multifamily	50,532		5.3		39,804		4.7
Consumer	16,016		1.7		16,720		2.0
Total Loans	$	953,346	100.0	%	$	851,953	100.0	%

Age Analysis of Past Due Loans by Class

An age analysis of past due loans by class at September 30, 2017 and December 31, 2016 follows:

September 30, 2017	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and Not Accruing		Total Past Due		Current		Total Loans
	(amounts in thousands)
Commercial and Industrial	$	—	$	—	$	18	$	18	$	28,028	$	28,046
Real Estate Construction:
Residential	—		—		—		—		17,725		17,725
Commercial	—		—		1,532		1,532		68,568		70,100
Real Estate Mortgage:
Commercial – Owner Occupied	187		—		157		344		113,802		114,146
Commercial – Non-owner Occupied	—		—		597		597		274,717		275,314
Residential – 1 to 4 Family	95		354		3,406		3,855		377,612		381,467
Residential – Multifamily	—		—		—		—		50,532		50,532
Consumer	—		—		17		17		15,999		16,016
Total Loans	$	282	$	354	$	5,727	$	6,363	$	946,983	$	953,346

December 31, 2016	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days and Not Accruing		Total Past Due		Current		Total Loans
	(amounts in thousands)
Commercial and Industrial	$	—	$	—	$	159	$	159	$	26,615	$	26,774
Real Estate Construction:
Residential	—		—		—		—		8,825		8,825
Commercial	—		—		3,241		3,241		55,228		58,469
Real Estate Mortgage:
Commercial – Owner Occupied	—		165		430		595		123,303		123,898
Commercial – Non-owner Occupied	—		—		3,958		3,958		264,165		268,123
Residential – 1 to 4 Family	715		361		3,095		4,171		305,169		309,340
Residential – Multifamily	—		—		308		308		39,496		39,804
Consumer	31		42		107		180		16,540		16,720
Total Loans	$	746	$	568	$	11,298	$	12,612	$	839,341	$	851,953

Impaired Loans

Impaired loans at September 30, 2017 and December 31, 2016 are set forth in the following tables:

September 30, 2017	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	18	$	22	$	—
Real Estate Construction:
Residential	—		—		—
Commercial	1,505		5,996		—
Real Estate Mortgage:
Commercial – Owner Occupied	157		157		—
Commercial – Non-owner Occupied	519		2,335		—
Residential – 1 to 4 Family	3,406		3,466		—
Residential – Multifamily	—		—		—
Consumer	17		17		—
	5,622		11,993		—
With an allowance recorded:
Commercial and Industrial	—		—		—
Real Estate Construction:
Residential	—		—		—
Commercial	4,641		4,738		124
Real Estate Mortgage:
Commercial – Owner Occupied	3,724		3,753		55
Commercial – Non-owner Occupied	12,004		12,004		208
Residential – 1 to 4 Family	933		933		15
Residential – Multifamily	—		—		—
Consumer	—		—		—
	21,302		21,428		402
Total:
Commercial and Industrial	18		22		—
Real Estate Construction:
Residential	—		—		—
Commercial	6,146		10,734		124
Real Estate Mortgage:
Commercial – Owner Occupied	3,881		3,910		55
Commercial – Non-owner Occupied	12,523		14,339		208
Residential – 1 to 4 Family	4,339		4,399		15
Residential – Multifamily	—		—		—
Consumer	17		17		—
	$	26,924	$	33,421	$	402

December 31, 2016	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(amounts in thousands)
With no related allowance recorded:
Commercial and Industrial	$	21	$	23	$	—
Real Estate Construction:
Residential	—		—		—
Commercial	1,161		1,161		—
Real Estate Mortgage:
Commercial – Owner Occupied	—		—		—
Commercial – Non-owner Occupied	3,494		3,739		—
Residential – 1 to 4 Family	2,384		2,434		—
Residential – Multifamily	308		354		—
Consumer	107		107		—
	7,475		7,818		—
With an allowance recorded:
Commercial and Industrial	138		1,392		138
Real Estate Construction:
Residential	—		—		—
Commercial	7,225		11,125		155
Real Estate Mortgage:
Commercial – Owner Occupied	4,380		4,409		498
Commercial – Non-owner Occupied	15,506		17,100		226
Residential – 1 to 4 Family	1,681		1,697		234
Residential – Multifamily	—		—		—
Consumer	—		—		—
	28,930		35,723		1,251
Total:
Commercial and Industrial	159		1,415		138
Real Estate Construction:
Residential	—		—		—
Commercial	8,386		12,286		155
Real Estate Mortgage:
Commercial – Owner Occupied	4,380		4,409		498
Commercial – Non-owner Occupied	19,000		20,839		226
Residential – 1 to 4 Family	4,065		4,131		234
Residential – Multifamily	308		354		—
Consumer	107		107		—
	$	36,405	$	43,541	$	1,251

The following table presents by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,
	2017				2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(amounts in thousands)
Commercial and Industrial	$	22	$	—	$	351	$	—
Real Estate Construction:
Residential	—		—		—		—
Commercial	10,760		51		9,233		59
Real Estate Mortgage:
Commercial – Owner Occupied	3,955		49		4,978		49
Commercial – Non-owner Occupied	14,392		153		19,168		190
Residential – 1 to 4 Family	4,410		20		3,616		25
Residential – Multifamily	—		—		308		—
Consumer	17		—		37		1
Total	$	33,556	$	273	$	37,691	$	324

	Nine Months Ended September 30,
	2017				2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(amounts in thousands)
Commercial and Industrial	$	23	$	1	$	390	$	1
Real Estate Construction:
Residential	—		—		—		—
Commercial	8,863		152		9,658		178
Real Estate Mortgage:
Commercial – Owner Occupied	4,018		146		5,044		137
Commercial – Non-owner Occupied	13,733		463		19,281		562
Residential – 1 to 4 Family	4,420		63		3,635		87
Residential – Multifamily	—		—		324		8
Consumer	18		1		37		2
Total	$	31,075	$	826	$	38,369	$	975

Analysis of Credit Risk Profile by Internally Assigned Grades

An analysis of the credit risk profile by internally assigned grades as of September 30, 2017 and December 31, 2016 is as follows:

At September 30, 2017	Pass		OAEM		Substandard		Doubtful		Total
	(amounts in thousands)
Commercial and Industrial	$	27,943	$	103	$	—	$	—	$	28,046
Real Estate Construction:
Residential	17,725		—		—		—		17,725
Commercial	55,906		5,756		8,438		—		70,100
Real Estate Mortgage:
Commercial – Owner Occupied	111,310		2,679		157		—		114,146
Commercial – Non-owner Occupied	274,575		—		739		—		275,314
Residential – 1 to 4 Family	377,349		570		3,548		—		381,467
Residential – Multifamily	50,532		—		—		—		50,532
Consumer	15,999		—		17		—		16,016
Total	$	931,339	$	9,108	$	12,899	$	—	$	953,346

At December 31, 2016	Pass		OAEM		Substandard		Doubtful		Total
	(amounts in thousands)
Commercial and Industrial	$	26,515	$	121	$	138	$	—	$	26,774
Real Estate Construction:
Residential	8,825		—		—		—		8,825
Commercial	35,656		12,516		10,297		—		58,469
Real Estate Mortgage:
Commercial – Owner Occupied	120,166		3,302		430		—		123,898
Commercial – Non-owner Occupied	261,181		79		6,863		—		268,123
Residential – 1 to 4 Family	304,042		1,536		3,762		—		309,340
Residential – Multifamily	39,496		—		308		—		39,804
Consumer	16,612		—		108		—		16,720
Total	$	812,493	$	17,554	$	21,906	$	—	$	851,953