Note

Loans and Related Allowance for Loan Loss

The Company’s loan portfolio is made up of

four

classifications: real estate loans, commercial and industrial loans, consumer loans and other loans. These segments are further segregated between loans accounted for under the amortized cost method (“Originated Loans”) and acquired loans that were originally recorded at fair value with no carryover of the related pre-merger allowance for loan losses (“Loans Acquired at Fair Value”). The following table presents the major classifications of loans as of the dates indicated.

	(Dollars in thousands)
	March 31, 2017						December 31, 2016
	Amount			Percent			Amount			Percent
Originated Loans
Real Estate:
Residential	$	188,583			35.9	%	$	186,077			35.4	%
Commercial		136,405			26.0			139,894			26.7
Construction		13,338			2.5			10,646			2.0
Commercial and Industrial		74,469			14.2			71,091			13.5
Consumer		108,817			20.7			114,007			21.7
Other		3,580			0.7			3,637			0.7
Total Originated Loans		525,192			100.0	%		525,352			100.0	%
Allowance for Loan Losses		(7,206	)					(7,283	)
Loans, Net	$	517,986					$	518,069

Loans Acquired at Fair Value
Real Estate:
Residential	$	82,580			55.3	%	$	85,511			54.7	%
Commercial		57,299			38.4			61,116			39.0
Commercial and Industrial		9,318			6.2			9,721			6.2
Consumer		194			0.1			197			0.1
Total Loans Acquired at Fair Value		149,391			100.0	%		156,545			100.0	%
Allowance for Loan Losses		(579	)					(520	)
Loans, Net	$	148,812					$	156,025

Total Loans
Real Estate:
Residential	$	271,163			40.2	%	$	271,588			39.8	%
Commercial		193,704			28.7			201,010			29.5
Construction		13,338			2.0			10,646			1.6
Commercial and Industrial		83,787			12.4			80,812			11.9
Consumer		109,011			16.2			114,204			16.7
Other		3,580			0.5			3,637			0.5
Total Loans		674,583			100.0	%		681,897			100.0	%
Allowance for Loan Losses		(7,785	)					(7,803	)
Loans, Net	$	666,798					$	674,094

Total unamortized net deferred loan fees were

$826,000

and

$818,000

March

31,

2017

and

December

31,

2016,

respectively.

Real estate loans serviced for others, which are not included in the Consolidated Statement of Financial Condition, totaled

$86.2

million and

$83.9

million at

March

31,

2017

and

December

31,

2016,

respectively.

The following table presents loans summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the dates indicated. At

March

31,

2017

and

December

31,

2016,

there were

loans in the criticized category of Loss within the internal risk rating system.

	(Dollars in thousands)
	March 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans
Real Estate:
Residential	$	187,194	$	980	$	409	$	-	$	188,583
Commercial		119,538		13,725		2,220		922		136,405
Construction		12,699		-		580		59		13,338
Commercial and Industrial		67,430		4,182		1,450		1,407		74,469
Consumer		108,787		-		30		-		108,817
Other		3,580		-		-		-		3,580
Total Originated Loans	$	499,228	$	18,887	$	4,689	$	2,388	$	525,192

Loans Acquired at Fair Value
Real Estate:
Residential	$	80,083	$	-	$	2,497	$	-	$	82,580
Commercial		54,019		2,225		852		203		57,299
Commercial and Industrial		8,771		58		379		110		9,318
Consumer		194		-		-		-		194
Total Loans Acquired at Fair Value	$	143,067	$	2,283	$	3,728	$	313	$	149,391

Total Loans
Real Estate:
Residential	$	267,277	$	980	$	2,906	$	-	$	271,163
Commercial		173,557		15,950		3,072		1,125		193,704
Construction		12,699		-		580		59		13,338
Commercial and Industrial		76,201		4,240		1,829		1,517		83,787
Consumer		108,981		-		30		-		109,011
Other		3,580		-		-		-		3,580
Total Loans	$	642,295	$	21,170	$	8,417	$	2,701	$	674,583

	December 31, 2016
	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans
Real Estate:
Residential	$	184,721	$	1,050	$	306	$	-	$	186,077
Commercial		122,811		14,118		2,035		930		139,894
Construction		9,944		-		595		107		10,646
Commercial and Industrial		65,612		2,720		1,322		1,437		71,091
Consumer		113,847		-		160		-		114,007
Other		3,637		-		-		-		3,637
Total Originated Loans	$	500,572	$	17,888	$	4,418	$	2,474	$	525,352
Loans Acquired at Fair Value
Real Estate:
Residential	$	83,044	$	-	$	2,467	$	-	$	85,511
Commercial		58,411		2,358		347		-		61,116
Commercial and Industrial		9,117		42		441		121		9,721
Consumer		197		-		-		-		197
Total Loans Acquired at Fair Value	$	150,769	$	2,400	$	3,255	$	121	$	156,545
Total Loans
Real Estate:
Residential	$	267,765	$	1,050	$	2,773	$	-	$	271,588
Commercial		181,222		16,476		2,382		930		201,010
Construction		9,944		-		595		107		10,646
Commercial and Industrial		74,729		2,762		1,763		1,558		80,812
Consumer		114,044		-		160		-		114,204
Other		3,637		-		-		-		3,637
Total Loans	$	651,341	$	20,288	$	7,673	$	2,595	$	681,897

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of the dates indicated.

	(Dollars in thousands)
	March 31, 2017
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
Originated Loans
Real Estate:
Residential	$	186,493	$	1,612	$	68	$	-	$	1,680	$	410	$	188,583
Commercial		136,317		88		-		-		88		-		136,405
Construction		13,279		-		-		-		-		59		13,338
Commercial and Industrial		72,432		556		74		-		630		1,407		74,469
Consumer		107,970		764		40		13		817		30		108,817
Other		3,580		-		-		-		-		-		3,580
Total Originated Loans	$	520,071	$	3,020	$	182	$	13	$	3,215	$	1,906	$	525,192

Loans Acquired at Fair Value
Real Estate:
Residential	$	80,658	$	321	$	-	$	-	$	321	$	1,601	$	82,580
Commercial		56,760		-		-		-		-		539		57,299
Commercial and Industrial		8,889		407		-		-		407		22		9,318
Consumer		194		-		-		-		-		-		194
Total Loans Acquired at Fair Value	$	146,501	$	728	$	-	$	-	$	728	$	2,162	$	149,391

Total Loans
Real Estate:
Residential	$	267,151	$	1,933	$	68	$	-	$	2,001	$	2,011	$	271,163
Commercial		193,077		88		-		-		88		539		193,704
Construction		13,279		-		-		-		-		59		13,338
Commercial and Industrial		81,321		963		74		-		1,037		1,429		83,787
Consumer		108,164		764		40		13		817		30		109,011
Other		3,580		-		-		-		-		-		3,580
Total Loans	$	666,572	$	3,748	$	182	$	13	$	3,943	$	4,068	$	674,583

	December 31, 2016
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
Originated Loans
Real Estate:
Residential	$	183,939	$	1,638	$	72	$	120	$	1,830	$	308	$	186,077
Commercial		139,821		-		-		-		-		73		139,894
Construction		10,539		-		-		-		-		107		10,646
Commercial and Industrial		68,310		952		-		-		952		1,829		71,091
Consumer		112,232		1,311		296		8		1,615		160		114,007
Other		3,637		-		-		-		-		-		3,637
Total Originated Loans	$	518,478	$	3,901	$	368	$	128	$	4,397	$	2,477	$	525,352

Loans Acquired at Fair Value
Real Estate:
Residential	$	82,523	$	893	$	307	$	223	$	1,423	$	1,565	$	85,511
Commercial		60,437		332		-		-		332		347		61,116
Commercial and Industrial		9,577		121		23		-		144		-		9,721
Consumer		197		-		-		-		-		-		197
Total Loans Acquired at Fair Value	$	152,734	$	1,346	$	330	$	223	$	1,899	$	1,912	$	156,545

Total Loans
Real Estate:
Residential	$	266,462	$	2,531	$	379	$	343	$	3,253	$	1,873	$	271,588
Commercial		200,258		332		-		-		332		420		201,010
Construction		10,539		-		-		-		-		107		10,646
Commercial and Industrial		77,887		1,073		23		-		1,096		1,829		80,812
Consumer		112,429		1,311		296		8		1,615		160		114,204
Other		3,637		-		-		-		-		-		3,637
Total Loans	$	671,212	$	5,247	$	698	$	351	$	6,296	$	4,389	$	681,897

The following table sets forth the amounts and categories of our nonperforming assets at the dates indicated. Included in nonperforming loans and assets are troubled debt restructurings (“TDRs”), which are loans whose contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties. Nonaccrual TDRs are included in their specific loan category in the nonaccrual loans section.

	(Dollars in Thousands)
	March 31, 2017			December 31, 2016
Nonaccrual Loans:
Originated Loans:
Real Estate:
Residential	$	410		$	308
Commercial		-			73
Construction		59			107
Commercial and Industrial		1,407			1,829
Consumer		30			160
Total Originated Nonaccrual Loans		1,906			2,477

Loans Acquired at Fair Value:
Real Estate:
Residential		1,601			1,565
Commercial		539			347
Commercial and Industrial		22			-
Total Loans Acquired at Fair Value Nonaccrual Loans		2,162			1,912
Total Nonaccrual Loans		4,068			4,389

Accruing Loans Past Due 90 Days or More:
Originated Loans:
Real Estate:
Residential		-			120
Consumer		13			8
Total Originated Accruing Loans 90 Days or More Past Due		13			128

Loans Acquired at Fair Value:
Real Estate:
Residential		-			223
Total Loans Acquired at Fair Value Accruing Loans 90 Days or More Past Due		-			223
Total Accruing Loans 90 Days or More Past Due		13			351
Total Nonaccrual Loans and Accruing Loans 90 Days or More Past Due		4,081			4,740

Troubled Debt Restructurings, Accruing:
Originated Loans:
Real Estate - Commercial		1,312			1,325
Commercial and Industrial		6			6
Other		4			4
Total Originated Loans		1,322			1,335
Loans Acquired at Fair Value:
Real Estate - Residential		1,289			1,299
Real Estate - Commercial		471			660
Commercial and Industrial		357			393
Total Loans Acquired at Fair Value		2,117			2,352
Total Troubled Debt Restructurings, Accruing		3,439			3,687

Total Nonperforming Loans		7,520			8,427

Real Estate Owned:
Residential		155			-
Commercial		174			174
Total Real Estate Owned		329			174

Total Nonperforming Assets	$	7,849		$	8,601

Nonperforming Loans to Total Loans		1.11	%		1.24	%
Nonperforming Assets to Total Assets		0.90			1.02

The recorded investment of residential real estate loans for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction was

$1.1

million and

$2.2

million at

March

31,

2017

and

December

31,

2016,

respectively.

TDRs typically are the result of our loss mitigation activities whereby concessions are granted to minimize loss and avoid foreclosure or repossession of collateral. The concessions granted for the TDRs in our portfolio primarily consist of, but are not limited to, modification of payment or other terms, temporary rate modification and extension of maturity date. Loans classified as TDRs consisted of

loans totaling

$4.4

million and

loans totaling

$4.7

million at

March

31,

2017

and

December

31,

2016,

respectively. Originated loans classified as TDRs consisted of

loans totaling

$2.3

million at

March

31,

2017

and

December

31,

2016,

respectively. Loans acquired at fair value classified as TDRs consisted of

loans totaling

$2.1

million and

loans totaling

$2.4

million at

March

31,

2017

and

December

31,

2016,

respectively.

During the

three

months ended

March

31,

2017,

one

commercial real estate loan previously identified as an acquired loan at fair value TDR paid off. During the

three

months ended

March

31,

2016,

one

commercial loan previously identified as an acquired loan at fair value TDR paid off.

TDRs have subsequently defaulted during the

three

months ended

March

31,

2017

and

2016,

respectively.

The following table presents information at the time of modification related to loans modified as TDRs during the periods indicated.

loans were modified for the

three

months ended

March

31,

2017.

The following table presents information at the time of modification related to loans modified in a TDR during the

three

months ended

March

31,

2016.

	(Dollars in thousands)
	Three Months Ended March 31, 2016
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
Originated Loans
Real Estate
Other		1	$	7	$	7	$	-
Total		1	$	7	$	7	$	-

Loans Acquired at Fair Value
Real Estate
Residential		1	$	37	$	45	$	-
Commercial		1		539		539
Total		2	$	576	$	584	$	-

The following table presents a summary of the loans considered to be impaired as of the dates indicated.

	(Dollars in thousands)
	March 31, 2017
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	2,009	$	-	$	2,009	$	2,033	$	23
Construction		639		-		639		674		7
Commercial and Industrial		632		-		632		619		8
Other		4		-		4		4		-
Total With No Related Allowance Recorded	$	3,284	$	-	$	3,284	$	3,330	$	38

Loans Acquired at Fair Value
Real Estate:
Residential	$	1,289	$	-	$	1,289	$	1,294	$	16
Commercial		987		-		987		997		13
Commercial and Industrial		379		-		379		407		4
Total With No Related Allowance Recorded	$	2,655	$	-	$	2,655	$	2,698	$	33

Total Loans
Real Estate:
Residential	$	1,289	$	-	$	1,289	$	1,294	$	16
Commercial		2,996		-		2,996		3,030		36
Construction		639		-		639		674		7
Commercial and Industrial		1,011		-		1,011		1,026		12
Other		4		-		4		4		-
Total With No Related Allowance Recorded	$	5,939	$	-	$	5,939	$	6,028	$	71

With A Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	1,523	$	402	$	1,523	$	1,531	$	20
Commercial and Industrial		2,231		703		2,255		2,232		27
Total With A Related Allowance Recorded	$	3,754	$	1,105	$	3,778	$	3,763	$	47

Loans Acquired at Fair Value
Real Estate:
Commercial	$	539	$	-	$	630	$	674	$	(2	)
Commercial and Industrial		110		24		110		114		1
Total With A Related Allowance Recorded	$	649	$	24	$	740	$	788	$	(1	)

Total Loans
Real Estate:
Commercial	$	2,062	$	402	$	2,153	$	2,205	$	18
Commercial and Industrial		2,341		727		2,365		2,346		28
Total With A Related Allowance Recorded	$	4,403	$	1,129	$	4,518	$	4,551	$	46

	March 31, 2017 (cont.)
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
Total Impaired Loans:
Originated Loans
Real Estate:
Commercial	$	3,532	$	402	$	3,532	$	3,564	$	43
Construction		639		-		639		674		7
Commercial and Industrial		2,863		703		2,887		2,851		35
Other		4		-		4		4		-
Total Impaired Loans	$	7,038	$	1,105	$	7,062	$	7,093	$	85

Loans Acquired at Fair Value
Real Estate:
Residential	$	1,289	$	-	$	1,289	$	1,294	$	16
Commercial		1,526		-		1,617		1,671		11
Commercial and Industrial		489		24		489		521		5
Total Impaired Loans	$	3,304	$	24	$	3,395	$	3,486	$	32

Total Loans
Real Estate:
Residential	$	1,289	$	-	$	1,289	$	1,294	$	16
Commercial		5,058		402		5,149		5,235		54
Construction		639		-		639		674		7
Commercial and Industrial		3,352		727		3,376		3,372		40
Other		4		-		4		4		-
Total Impaired Loans	$	10,342	$	1,129	$	10,457	$	10,579	$	117

	December 31, 2016
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	2,112	$	-	$	2,112	$	2,228	$	100
Construction		702		-		702		843		28
Commercial and Industrial		825		-		825		891		45
Other		4		-		4		6		1
Total With No Related Allowance Recorded	$	3,643	$	-	$	3,643	$	3,968	$	174

Loans Acquired at Fair Value
Real Estate:
Residential	$	1,300	$	-	$	1,300	$	1,320	$	68
Commercial		660		-		660		763		47
Commercial and Industrial		441		-		441		543		21
Total With No Related Allowance Recorded	$	2,401	$	-	$	2,401	$	2,626	$	136

Total Loans
Real Estate:
Residential	$	1,300	$	-	$	1,300	$	1,320	$	68
Commercial		2,772		-		2,772		2,991		147
Construction		702		-		702		843		28
Commercial and Industrial		1,266		-		1,266		1,434		66
Other		4		-		4		6		1
Total With No Related Allowance Recorded	$	6,044	$	-	$	6,044	$	6,594	$	310

With A Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	1,249	$	360	$	1,249	$	1,277	$	66
Commercial and Industrial		1,940		655		1,946		1,951		27
Total With A Related Allowance Recorded	$	3,189	$	1,015	$	3,195	$	3,228	$	93

Loans Acquired at Fair Value
Real Estate:
Commercial	$	347	$	114	$	437	$	367	$	-
Commercial and Industrial		121		31		121		141		6
Total With A Related Allowance Recorded	$	468	$	145	$	558	$	508	$	6

Total Loans
Real Estate:
Commercial	$	1,596	$	474	$	1,686	$	1,644	$	66
Commercial and Industrial		2,061		686		2,067		2,092		33
Total With A Related Allowance Recorded	$	3,657	$	1,160	$	3,753	$	3,736	$	99

	December 31, 2016 (cont.)
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
Total Impaired Loans
Originated Loans
Real Estate:
Commercial	$	3,361	$	360	$	3,361	$	3,505	$	166
Construction		702		-		702		843		28
Commercial and Industrial		2,765		655		2,771		2,842		72
Other		4		-		4		6		1
Total Impaired Loans	$	6,832	$	1,015	$	6,838	$	7,196	$	267

Loans Acquired at Fair Value
Real Estate:
Residential	$	1,300	$	-	$	1,300	$	1,320	$	68
Commercial		1,007		114		1,097		1,130		47
Commercial and Industrial		562		31		562		684		27
Total Impaired Loans	$	2,869	$	145	$	2,959	$	3,134	$	142

Total Loans
Real Estate:
Residential	$	1,300	$	-	$	1,300	$	1,320	$	68
Commercial		4,368		474		4,458		4,635		213
Construction		702		-		702		843		28
Commercial and Industrial		3,327		686		3,333		3,526		99
Other		4		-		4		6		1
Total Impaired Loans	$	9,701	$	1,160	$	9,797	$	10,330	$	409

The following table presents the activity in the allowance for loan losses summarized by major classifications and segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for potential impairment for the periods indicated.

	(Dollars in thousands)
	March 31, 2017
	Real Estate Residential			Real Estate Commercial			Real Estate Construction		Commercial and Industrial			Consumer			Other		Unallocated			Total
Originated Loans
December 31, 2016	$	1,106		$	1,942		$	65	$	1,579		$	2,463		$	-	$	128		$	7,283
Charge-offs		-			-			-		-			(327	)		-		-			(327	)
Recoveries		4			-			-		11			65			-		-			80
Provision		(21	)		(44	)		18		8			55			-		154			170
March 31, 2017	$	1,089		$	1,898		$	83	$	1,598		$	2,256		$	-	$	282		$	7,206

Loans Acquired at Fair Value
December 31, 2016	$	-		$	365		$	-	$	120		$	-		$	-	$	35		$	520
Charge-offs		(64	)		(129	)		-		-			-			-		-			(193	)
Recoveries		-			1			-		-			1			-		-			2
Provision		64			234			-		(6	)		(1	)		-		(41	)		250
March 31, 2017	$	-		$	471		$	-	$	114		$	-		$	-	$	(6	)	$	579

Total Allowance for Loan Losses
December 31, 2016	$	1,106		$	2,307		$	65	$	1,699		$	2,463		$	-	$	163		$	7,803
Charge-offs		(64	)		(129	)		-		-			(327	)		-		-			(520	)
Recoveries		4			1			-		11			66			-		-			82
Provision		43			190			18		2			54			-		113			420
March 31, 2017	$	1,089		$	2,369		$	83	$	1,712		$	2,256		$	-	$	276		$	7,785

	March 31, 2017
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated			Total
Originated Loans
Individually Evaluated for Impairment	$	-	$	402	$	-	$	703	$	-	$	-	$	-		$	1,105
Collectively Evaluated for Potential Impairment	$	1,089	$	1,496	$	83	$	895	$	2,256	$	-	$	282		$	6,101

Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	-	$	-	$	-	$	24	$	-	$	-	$	-		$	24
Collectively Evaluated for Potential Impairment	$	-	$	471	$	-	$	90	$	-	$	-	$	(6	)	$	555

Total Allowance for Loan Losses
Individually Evaluated for Impairment	$	-	$	402	$	-	$	727	$	-	$	-	$	-		$	1,129
Collectively Evaluated for Potential Impairment	$	1,089	$	1,967	$	83	$	985	$	2,256	$	-	$	276		$	6,656

	March 31, 2016
	Real Estate Residential			Real Estate Commercial			Real Estate Construction			Commercial and Industrial		Consumer			Other			Unallocated		Total
Originated Loans
December 31, 2015	$	1,623		$	2,045		$	137		$	784	$	1,887		$	-		$	14	$	6,490
Charge-offs		(20	)		-			-			-		(185	)		(17	)		-		(222	)
Recoveries		1			-			-			-		24			9			-		34
Provision		(345	)		(9	)		(20	)		319		450			10			230		635
March 31, 2016	$	1,259		$	2,036		$	117		$	1,103	$	2,176		$	2		$	244	$	6,937

Loans Acquired at Fair Value
December 31, 2015	$	-		$	-		$	-		$	-	$	-		$	-		$	-	$	-
Charge-offs		-			(180	)		-			-		(5	)		-			-		(185	)
Recoveries		2			1			-			-		3			-			-		6
Provision		(2	)		179			-			-		2			-			36		215
March 31, 2016	$	-		$	-		$	-		$	-	$	-		$	-		$	36	$	36

Total Allowance for Loan Losses
December 31, 2015	$	1,623		$	2,045		$	137		$	784	$	1,887		$	-		$	14	$	6,490
Charge-offs		(20	)		(180	)		-			-		(190	)		(17	)		-		(407	)
Recoveries		3			1			-			-		27			9			-		40
Provision		(347	)		170			(20	)		319		452			10			266		850
March 31, 2016	$	1,259		$	2,036		$	117		$	1,103	$	2,176		$	2		$	280	$	6,973

	March 31, 2016
	Real Estate Residential			Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
Originated Loans
Individually Evaluated for Impairment	$	-		$	377	$	-	$	322	$	-	$	-	$	-	$	699
Collectively Evaluated for Potential Impairment	$	1,259		$	1,659	$	117	$	781	$	2,176	$	2	$	244	$	6,238

Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	52		$	-	$	-	$	-	$	-	$	-	$	-	$	52
Collectively Evaluated for Potential Impairment	$	(52	)	$	-	$	-	$	-	$	-	$	-	$	36	$	(16	)

Total Allowance for Loan Losses
Individually Evaluated for Impairment	$	52		$	377	$	-	$	322	$	-	$	-	$	-	$	751
Collectively Evaluated for Potential Impairment	$	1,207		$	1,659	$	117	$	781	$	2,176	$	2	$	280	$	6,222

	December 31, 2016
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
Originated Loans
Individually Evaluated for Impairment	$	-	$	360	$	-	$	655	$	-	$	-	$	-	$	1,015
Collectively Evaluated for Potential Impairment	$	1,106	$	1,582	$	65	$	924	$	2,463	$	-	$	128	$	6,268

Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	-	$	114	$	-	$	31	$	-	$	-	$	-	$	145
Collectively Evaluated for Potential Impairment	$	-	$	251	$	-	$	89	$	-	$	-	$	35	$	375

Total Allowance for Loan Losses
Individually Evaluated for Impairment	$	-	$	474	$	-	$	686	$	-	$	-	$	-	$	1,160
Collectively Evaluated for Potential Impairment	$	1,106	$	1,833	$	65	$	1,013	$	2,463	$	-	$	163	$	6,643

The following table presents changes in the accretable discount on the loans acquired at fair value for the dates indicated.

	Accretable Discount
Balance at December 31, 2016	$	1,640
Accretable Yield		(234	)
Balance at March 31, 2017	$	1,406

The following table presents the major classifications of loans summarized by individually evaluated for impairment and collectively evaluated for potential impairment as of the dates indicated.

	(Dollars in thousands)
	March 31, 2017
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
Originated Loans
Individually Evaluated for Impairment	$	-	$	3,532	$	639	$	2,863	$	-	$	4	$	7,038
Collectively Evaluated for Potential Impairment		188,583		132,873		12,699		71,606		108,817		3,576		518,154
	$	188,583	$	136,405	$	13,338	$	74,469	$	108,817	$	3,580	$	525,192

Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	1,289	$	1,526	$	-	$	489	$	-	$	-	$	3,304
Collectively Evaluated for Potential Impairment		81,291		55,773		-		8,829		194		-		146,087
	$	82,580	$	57,299	$	-	$	9,318	$	194	$	-	$	149,391

Total Loans
Individually Evaluated for Impairment	$	1,289	$	5,058	$	639	$	3,352	$	-	$	4	$	10,342
Collectively Evaluated for Potential Impairment		269,874		188,646		12,699		80,435		109,011		3,576		664,241
	$	271,163	$	193,704	$	13,338	$	83,787	$	109,011	$	3,580	$	674,583

	December 31, 2016
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
Originated Loans
Individually Evaluated for Impairment	$	-	$	3,361	$	702	$	2,765	$	-	$	4	$	6,832
Collectively Evaluated for Potential Impairment		186,077		136,533		9,944		68,326		114,007		3,633		518,520
	$	186,077	$	139,894	$	10,646	$	71,091	$	114,007	$	3,637	$	525,352

Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	1,300	$	1,007	$	-	$	562	$	-	$	-	$	2,869
Collectively Evaluated for Potential Impairment		84,211		60,109		-		9,159		197		-		153,676
	$	85,511	$	61,116	$	-	$	9,721	$	197	$	-	$	156,545

Total Loans
Individually Evaluated for Impairment	$	1,300	$	4,368	$	702	$	3,327	$	-	$	4	$	9,701
Collectively Evaluated for Potential Impairment		270,288		196,642		9,944		77,485		114,204		3,633		672,196
	$	271,588	$	201,010	$	10,646	$	80,812	$	114,204	$	3,637	$	681,897