Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2014

The following is a rollforward of the Bank’s allowance for loan losses for the years ended December 31:

(dollars in thousands)	Beginning Balance		Provision for Loan Losses			Charge-offs			Recoveries		Ending Balance
2014:
Real estate loans:
Residential properties	$	6,157	$	429		$	—		$	—	$	6,586
Commercial properties		1,440		86			—			—		1,526
Commercial and industrial loans		2,149		(252)			—			—		1,897
Consumer loans		169		(28	)		—			—		141
Total	$	9,915	$	235		$	—		$	—	$	10,150
2013:
Real estate loans:
Residential properties	$	4,355	$	1,802		$	—		$	—	$	6,157
Commercial properties		936		561			(57	)		—		1,440
Commercial and industrial loans		2,841		71			(763	)		—		2,149
Consumer loans		208		(39	)		—			—		169
Total	$	8,340	$	2,395		$	(820	)	$	—	$	9,915
2012:
Real estate loans:
Residential properties	$	3,984	$	646		$	(275	)	$	—	$	4,355
Commercial properties		1,218		(282	)		—			—		936
Commercial and industrial loans		1,104		1,737			—			—		2,841
Consumer loans		244		(36	)		—			—		208
Total	$	6,550	$	2,065		$	(275	)	$	—	$	8,340

Balance in Allowance for Loan Losses and Recorded Investment in Loans by Impairment

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by impairment method as of December 31:

(dollars in thousands)	Allowance for Loan Losses								Unaccreted Credit Component Other Loans
	Evaluated for Impairment				Purchased Impaired		Total
	Individually		Collectively		Purchased Impaired		Total
2014:
Allowance for loan losses:
Real estate loans:
Residential properties	$	—	$	6,586	$	—	$	6,586	$	26
Commercial properties		26		1,500		—		1,526		193
Land		—		—		—		—		4
Commercial and industrial loans		686		1,211		—		1,897		45
Consumer loans		—		141		—		141		—
Total	$	712	$	9,438	$	—	$	10,150	$	268
Loans:
Real estate loans:
Residential properties	$	43	$	842,092	$	—	$	842,135	$	2,861
Commercial properties		5,742		199,378		200		205,320		21,126
Land		—		4,309		—		4,309		1,099
Commercial and industrial loans		5,635		86,343		1,559		93,537		5,893
Consumer loans		116		20,962		47		21,125		8
Total	$	11,536	$	1,153,084	$	1,806	$	1,166,426	$	30,987
2013:
Allowance for loan losses:
Real estate loans:
Residential properties	$	—	$	6,157	$	—	$	6,157	$	36
Commercial properties		190		1,250		—		1,440		290
Land		—		—		—		—		26
Commercial and industrial loans		925		1,224		—		2,149		126
Consumer loans		—		169		—		169		11
Total	$	1,115	$	8,800	$	—	$	9,915	$	489
Loans:
Real estate loans:
Residential properties	$	2,248	$	630,832	$	—	$	633,080	$	3,449
Commercial properties		821		150,053		4,108		154,982		23,968
Land		—		2,314		1,480		3,794		1,939
Commercial and industrial loans		2,999		88,209		2,047		93,255		10,354
Consumer loans		—		18,441		43		18,484		160
Total	$	6,068	$	889,849	$	7,678	$	903,595	$	39,870

Risk Category of Loans by Class of Loans

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of December 31:

(dollars in thousands)	Pass		Special Mention		Substandard		Impaired		Total
2014:
Real estate loans:
Residential properties	$	841,538	$	554	$	—	$	43	$	842,135
Commercial properties		198,112		1,266		200		5,742		205,320
Land		4,309		—		—		—		4,309
Commercial and industrial loans		81,067		5,276		1,559		5,635		93,537
Consumer loans		20,962		—		47		116		21,125
Total	$	1,145,988	$	7,096	$	1,806	$	11,536	$	1,166,426
2013:
Real estate loans:
Residential properties	$	630,832	$	—	$	—	$	2,248	$	633,080
Commercial properties		150,053		—		4,108		821		154,982
Land		2,314		—		1,480		—		3,794
Commercial and industrial loans		88,166		43		2,047		2,999		93,255
Consumer loans		18,309		—		175		—		18,484
Total	$	889,674	$	43	$	7,810	$	6,068	$	903,595

Individual Evaluation of Impaired Loans and Related Allowance

Impaired loans evaluated individually and any related allowance is as follows as of December 31:

	With No Allowance Recorded				With an Allowance Recorded
(dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Recorded Investment		Related Allowance
2014:
Real estate loans:
Residential properties	$	43	$	43	$	—	$	—	$	—
Commercial properties		5,568		5,568		174		174		26
Commercial and industrial loans		2,094		2,094		3,541		3,451		686
Consumer loans		116		116		—		—		—
Total	$	7,821	$	7,821	$	3,715	$	3,715	$	712
2013:
Real estate loans:
Residential properties	$	2,248	$	2,248	$	—	$	—	$	—
Commercial properties		223		223		598		598		190
Commercial and industrial loans		—		—		2,999		2,999		925
Consumer loans		—		—		—		—		—
Total	$	2,471	$	2,471	$	3,597	$	3,597	$	1,115

Weighted Average Annualized Balance of Recorded Investment and Interest Income on Impaired Loans

The weighted average annualized average balance of the recorded investment for impaired loans, beginning from when the loan became impaired, and any interest income recorded on impaired loans after they became impaired is as follows for the years ending December 31:

	2014				2013				2012
(dollars in thousands)	Average Recorded Investment		Interest Income after Impairment		Average Recorded Investment		Interest Income after Impairment		Average Recorded Investment		Interest Income after Impairment
Real estate loans:
Residential properties	$	3,000	$	25	$	2,250	$	32	$	2,023	$	98
Commercial properties		3,217		140		323		22		—		—
Commercial and industrial loans		1,196		241		2,690		168		45		—
Consumer loans		126		—		—		—		225		14
Total	$	7,539	$	406	$	5,263	$	222	$	2,293	$	112