Loans (Tables)

9 Months Ended

Sep. 30, 2017

Composition of Company's Loan Portfolio, Excluding Loans Held for Sale

The composition of the Company’s loan portfolio, excluding loans held for sale, was the following for the periods presented below:


(in thousands)	At September 30, 2017			At December 31, 2016
Real estate mortgage loans:
Commercial	$	77,084		$	65,805
Residential and home equity		94,145			88,883
Construction		23,366			19,991

Total real estate mortgage loans		194,595			174,679
Commercial loans		46,193			46,340
Consumer and other loans		6,976			4,275

Total loans		247,764			225,294
Add (deduct):
Net deferred loan costs		468			350
Allowance for loan losses		(3,072	)		(2,876	)

Loans, net	$	245,160		$	222,768

Summary of Changes in Allowance for Loan Losses

An analysis of the change in allowance for loan losses follows:


	Real Estate Mortgage Loans
(in thousands)	Commercial		Residential and Home Equity			Construction			Commercial Loans			Consumer and Other Loans			Total
*Three-Month Period Ended September 30, 2017*
Beginning balance	$	811	$	1,108		$	338		$	712		$	59		$	3,028
Provision (credit) for loan losses		49		(18	)		(51	)		28			24			32
Net (charge-offs) recoveries		—		—			—			12			—			12

Ending balance	$	860	$	1,090		$	287		$	752		$	83		$	3,072

*Three-Month Period Ended September 30, 2016*
Beginning balance	$	764	$	1,017		$	243		$	686		$	65		$	2,775
Provision (credit) for loan losses		11		28			32			40			(3	)		108
Net (charge-offs) recoveries		—		—			—			(17	)		(3	)		(20	)

Ending balance	$	775	$	1,045		$	275		$	709		$	59		$	2,863

*Nine-Month Period Ended September 30, 2017*
Beginning balance	$	775	$	1,074		$	258		$	714		$	55		$	2,876
Provision (credit) for loan losses		85		16			29			24			33			187
Net (charge-offs) recoveries		—		—			—			14			(5	)		9

Ending balance	$	860	$	1,090		$	287		$	752		$	83		$	3,072

*Nine-Month Period Ended September 30, 2016*
Beginning balance	$	707	$	868		$	246		$	596		$	56		$	2,473
Provision (credit) for loan losses		68		177			29			130			8			412
Net (charge-offs) recoveries		—		—			—			(17	)		(5	)		(22	)

Ending balance	$	775	$	1,045		$	275		$	709		$	59		$	2,863


*At September 30, 2017*
Individually evaluated for impairment:
Recorded investment	$	—	$	—		$	—		$	137		$	—		$	137

Balance in allowance for loan losses	$	—	$	—		$	—		$	137		$	—		$	137

Collectively evaluated for impairment:
Recorded investment	$	77,084	$	94,145		$	23,366		$	46,056		$	6,976		$	247,627

Balance in allowance for loan losses	$	860	$	1,090		$	287		$	615		$	83		$	2,935


*At December 31, 2016*
Individually evaluated for impairment:
Recorded investment	$	—	$	662		$	73		$	76		$	—		$	811

Balance in allowance for loan losses	$	—	$	—		$	—		$	76		$	—		$	76

Collectively evaluated for impairment:
Recorded investment	$	65,805	$	88,221		$	19,918		$	46,264		$	4,275		$	224,483

Balance in allowance for loan losses	$	775	$	1,074		$	258		$	638		$	55		$	2,800

Summary of Loan Credit Quality

The following summarizes the loan credit quality:


	Real Estate Mortgage Loans
(in thousands)	Commercial		Residential and Home Equity		Construction		Commercial Loans		Consumer and Other Loans		Total
*At September 30, 2017*
Grade:
Pass	$	72,027	$	91,598	$	22,909	$	44,549	$	6,948	$	238,031
Special mention		5,057		2,381		298		1,069		28		8,833
Substandard		—		166		159		575		—		900
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—

Total	$	77,084	$	94,145	$	23,366	$	46,193	$	6,976	$	247,764

*At December 31, 2016*
Grade:
Pass	$	61,734	$	84,695	$	19,485	$	45,623	$	4,227	$	215,764
Special mention		4,071		3,152		333		250		46		7,852
Substandard		—		1,036		173		467		2		1,678
Doubtful		—		—		—		—		—		—
Loss		—		—		—		—		—		—

Total	$	65,805	$	88,883	$	19,991	$	46,340	$	4,275	$	225,294

Summary of Past Due Loans

Age analysis of past due loans is as follows:


	Accruing Loans
(in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Nonaccrual Loans		Total Loans
*At September 30, 2017:*
Real estate mortgage loans:
Commercial	$	626	$	—	$	—	$	626	$	76,458	$	—	$	77,084
Residential and home equity		—		—		—		—		94,145		—		94,145
Construction		—		—		—		—		23,366		—		23,366
Commercial loans		—		—		—		—		46,133		60		46,193
Consumer and other loans		—		—		—		—		6,976		—		6,976

Total	$	626	$	—	$	—	$	626	$	247,078	$	60	$	247,764

*At December 31, 2016:*
Real estate mortgage loans:
Commercial	$	—	$	—	$	—	$	—	$	65,805	$	—	$	65,805
Residential and home equity		371		—		—		371		87,850		662		88,883
Construction		—		—		—		—		19,918		73		19,991
Commercial loans		—		—		—		—		46,264		76		46,340
Consumer and other loans		—		—		—		—		4,275		—		4,275

Total	$	371	$	—	$	—	$	371	$	224,112	$	811	$	225,294

Summary of Impaired Loans

The following summarizes the amount of impaired loans:


	With No Related Allowance Recorded				With an Allowance Recorded						Total
(in thousands)	Recorded Investment		Unpaid Contractual Principal Balance		Recorded Investment		Unpaid Contractual Principal Balance		Related Allowance		Recorded Investment		Unpaid Contractual Principal Balance		Related Allowance
*At September 30, 2017:*
Commercial loans	$	—	$	—	$	137	$	137	$	137	$	137	$	137	$	137

Total	$	—	$	—	$	137	$	137	$	137	$	137	$	137	$	137

*At December 31, 2016:*
Real estate mortgage loans:
Residential and home equity	$	662	$	662	$	—	$	—	$	—	$	662	$	662	$	—
Construction loans		73		73		—		—		—		73		73		—
Commercial loans		—		—		76		76		76		76		76		76

Total	$	735	$	735	$	76	$	76	$	76	$	811	$	811	$	76

Summary of Average Net Investment in Impaired Loans and Interest Income Recognized and Received on Impaired Loans

The average net investment in impaired loans and interest income recognized and received on impaired loans are as follows:


	Three Months Ended September 30,
	2017						2016
(in thousands)	Average Recorded Investment		Interest Income Recognized		Interest Income Received		Average Recorded Investment		Interest Income Recognized		Interest Income Received
Real estate mortage loans:
Residential and home equity	$	—	$	6	$	—	$	361	$	—	$	—
Construction		63		1		1		88		—		—
Commercial loans		22		—		—		1		—		—
Consumer		—		—		—		7		—		—

Total	$	85	$	7	$	1	$	457	$	—	$	—


	Nine Months Ended September 30,
	2017						2016
(in thousands)	Average Recorded Investment		Interest Income Recognized		Interest Income Received		Average Recorded Investment		Interest Income Recognized		Interest Income Received
Real estate mortgage loans:
Residential and home equity	$	375	$	28	$	28	$	119	$	—	$	—
Construction		66		1		2		91		—		—
Commercial loans		56		—		—		—		—		—
Consumer		—		—		—		3		—		—

Total	$	497	$	29	$	30	$	213	$	—	$	—

Summary of Loans Determined to be Troubled Debt Restructurings

For the nine-month period ended September 30, 2017, there was one new loan determined to be a TDR.


	Nine Months Ended September 30, 2017
(in thousands)	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Current Modification Outstanding Recorded Investment
*Troubled Debt Restructurings -*
Residential and home equity:
Modified principal		1	$	153	$	169	$	165

Total		1	$	153	$	169	$	165