Loan Quality

3 Months Ended

Mar. 31, 2015

Loan Quality [Abstract]

Loan Quality

Note 7. Loan Quality

The following table presents, by class, the activity in the Allowance for Loan Losses (ALL) for the periods ended:

	Residential Real Estate 1-4 Family
			Junior Liens &				Commercial
(Dollars in thousands)	First Liens		Lines of Credit		Construction		Real Estate		Commercial		Consumer		Total
Allowance at December 31, 2014	$	1,225	$	334	$	226	$	5,417	$	1,773	$	136	$	9,111
Charge-offs		-		-		-		-		(201)		(52)		(253)
Recoveries		2		-		-		-		6		19		27
Provision		33		-		37		183		50		22		325
Allowance at March 31, 2015	$	1,260	$	334	$	263	$	5,600	$	1,628	$	125	$	9,210
Allowance at December 31, 2013	$	1,108	$	278	$	291	$	5,571	$	2,306	$	148	$	9,702
Charge-offs		(16)		-		(27)		(114)		(1)		(43)		(201)
Recoveries		3		-		-		-		20		23		46
Provision		38		(2)		110		52		(16)		16		198
Allowance at March 31, 2014	$	1,133	$	276	$	374	$	5,509	$	2,309	$	144	$	9,745

The following table presents, by class, loans that were evaluated for the ALL under the specific reserve (individually) and those that were evaluated under the general reserve (collectively) and the amount of the ALL established in each class as of March 31, 2015 and December 31, 2014:

	Residential Real Estate 1-4 Family
			Junior Liens &				Commercial
(Dollars in thousands)	First Liens		Lines of Credit		Construction		Real Estate		Commercial		Consumer		Total
March 31, 2015
Loans evaluated for allowance:
Individually	$	1,254	$	51	$	930	$	21,927	$	1,073	$	-	$	25,235
Collectively		160,040		43,204		8,753		301,748		178,335		5,643		697,723
Total	$	161,294	$	43,255	$	9,683	$	323,675	$	179,408	$	5,643	$	722,958
Allowance established for loans evaluated:
Individually	$	23	$	-	$	21	$	39	$	9	$	-	$	92
Collectively		1,237		334		242		5,561		1,619		125		9,118
Allowance at March 31, 2015	$	1,260	$	334	$	263	$	5,600	$	1,628	$	125	$	9,210
March 31, 2014
Loans evaluated for allowance:
Individually	$	2,310	$	51	$	530	$	25,029	$	1,953	$	-	$	29,873
Collectively		162,799		39,893		11,223		297,421		177,033		7,816		696,185
Total	$	165,109	$	39,944	$	11,753	$	322,450	$	178,986	$	7,816	$	726,058
Allowance established for loans evaluated:
Individually	$	-	$	-	$	-	$	247	$	968	$	-	$	1,215
Collectively		1,133		276		374		5,262		1,341		144		8,530
Allowance at March 31, 2014	$	1,133	$	276	$	374	$	5,509	$	2,309	$	144	$	9,745

The following table shows additional information about those loans considered to be impaired at March 31, 2015 and December 31, 2014:

	Impaired Loans
	With No Allowance				With Allowance
(Dollars in thousands)			Unpaid					Unpaid
	Recorded		Principal		Recorded		Principal		Related
March 31, 2015	Investment		Balance		Investment		Balance		Allowance
Residential Real Estate 1-4 Family
First liens	$	1,674	$	1,846	$	146	$	146	$	23
Junior liens and lines of credit		145		172		-		-		-
Total		1,819		2,018		146		146		23
Residential real estate - construction		519		553		410		424		21
Commercial real estate		21,738		25,649		232		2,589		39
Commercial		1,125		2,048		9		10		9
Total	$	25,201	$	30,268	$	797	$	3,169	$	92

December 31, 2014
Residential Real Estate 1-4 Family
First liens	$	1,804	$	2,002	$	-	$	-	$	-
Junior liens and lines of credit		169		195		-		-		-
Total		1,973		2,197		-		-		-
Residential real estate - construction		931		977		-		-		-
Commercial real estate		21,487		25,744		862		1,001		60
Commercial		78		80		1,274		1,990		171
Total	$	24,469	$	28,998	$	2,136	$	2,991	$	231

The following table shows the average of impaired loans and related interest income for the three months ended March 31, 2015 and 2014:

	Three Months Ended
	March 31, 2015
	Average		Interest
(Dollars in thousands)	Recorded		Income
	Investment		Recognized
Residential Real Estate 1-4 Family
First liens	$	1,829	$	8
Junior liens and lines of credit		145		-
Total		1,974		8
Residential real estate - construction		931		84
Commercial real estate		22,187		69
Commercial		1,325		-
Total	$	26,417	$	161
	Three Months Ended
	March 31, 2014
	Average		Interest
(Dollars in thousands)	Recorded		Income
	Investment		Recognized
Residential Real Estate 1-4 Family
First liens	$	3,218	$	10
Junior liens and lines of credit		126		-
Total		3,344		10
Residential real estate - construction		532		-
Commercial real estate		25,665		93
Commercial		2,092		1
Total	$	31,633	$	104

The following table presents the aging of payments of the loan portfolio:

(Dollars in thousands)			Loans Past Due and Still Accruing										Total
	Current		30-59 Days		60-89 Days		90 Days+		Total		Non-Accrual		Loans
March 31, 2015
Residential Real Estate 1-4 Family
First liens	$	158,647	$	939	$	427	$	103	$	1,469	$	1,178	$	161,294
Junior liens and lines of credit		42,777		333		-		28		361		117		43,255
Total		201,424		1,272		427		131		1,830		1,295		204,549
Residential real estate - construction		8,754		-		-		-		-		929		9,683
Commercial real estate		314,930		956		-		-		956		7,789		323,675
Commercial		177,874		156		-		-		156		1,378		179,408
Consumer		5,628		15		-		-		15		-		5,643
Total	$	708,610	$	2,399	$	427	$	131	$	2,957	$	11,391	$	722,958

December 31, 2014
Residential Real Estate 1-4 Family
First liens	$	158,197	$	1,531	$	297	$	165	$	1,993	$	1,124	$	161,314
Junior liens and lines of credit		43,424		174		28		-		202		169		43,795
Total		201,621		1,705		325		165		2,195		1,293		205,109
Residential real estate - construction		8,784		-		-		-		-		931		9,715
Commercial real estate		317,576		336		-		140		476		8,430		326,482
Commercial		177,407		12		15		-		27		1,637		179,071
Consumer		6,056		59		22		17		98		-		6,154
Total	$	711,444	$	2,112	$	362	$	322	$	2,796	$	12,291	$	726,531

The following table reports the internal credit rating for the loan portfolio.  Consumer purpose loans (mortgage, home equity and installment) are assigned a rating of either pass or substandard.  Substandard consumer loans are comprised of loans 90 days or more past due and still accruing and nonaccrual loans.  Commercial loans may be assigned any rating in accordance with the Bank’s internal risk rating system.

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2015
Residential Real Estate 1-4 Family
First liens	$	155,311	$	2,296	$	3,687	$	-	$	161,294
Junior liens and lines of credit		42,949		29		277		-		43,255
Total		198,260		2,325		3,964		-		204,549
Residential real estate - construction		8,754		-		929		-		9,683
Commercial real estate		300,656		10,316		12,703		-		323,675
Commercial		169,544		7,466		2,398		-		179,408
Consumer		5,643		-		-		-		5,643
Total	$	682,857	$	20,107	$	19,994	$	-	$	722,958

December 31, 2014
Residential Real Estate 1-4 Family
First liens	$	155,676	$	1,919	$	3,719	$	-	$	161,314
Junior liens and lines of credit		43,559		29		207		-		43,795
Total		199,235		1,948		3,926		-		205,109
Residential real estate - construction		8,784		-		931		-		9,715
Commercial real estate		301,149		10,578		14,755		-		326,482
Commercial		170,774		5,413		2,884		-		179,071
Consumer		6,137		-		17		-		6,154
Total	$	686,079	$	17,939	$	22,513	$	-	$	726,531

The following table presents information on the Bank’s Troubled Debt Restructuring (TDR) loans:

								Troubled Debt Restructurings
								That Have Defaulted on
(Dollars in thousands)	Troubled Debt Restructurings							Modified Terms YTD
	Number of	Recorded						Number of	Recorded
	Contracts	Investment		Performing*		Nonperforming*		Contracts	Investment
March 31, 2015
Residential real estate - construction	1	$	524	$	-	$	524	-	$	-
Residential real estate	5		598		598		-	-		-
Commercial real estate	12		15,398		14,459		939	-		-
Total	18	$	16,520	$	15,057	$	1,463	-	$	-
December 31, 2014
Residential real estate - construction	1	$	521	$	-	$	521	-	$	-
Residential real estate	5		699		673		26	-		-
Commercial real estate	12		15,748		14,283		1,465	-		-
Total	18	$	16,968	$	14,956	$	2,012	-	$	-

*The performing status is determined by the loan’s compliance with the modified terms.

There were no new TDR loans made inthe first quarter of 2015 or 2014.