Loans (Tables)

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Summary of Loans

Loans consist of the following at December 31:

(Dollars in thousands)	2015		2014
Commercial	$	123,143	$	123,813
Commercial real estate		148,775		139,695
Residential real estate		125,775		121,684
Construction & land development		15,452		17,446
Consumer		9,268		7,913
Total loans before deferred costs		422,413		410,551
Deferred loan costs		458		352
Total loans	$	422,871	$	410,903

Schedule of Allowances for Loan Losses by Portfolio Segment

The following table details activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2015, 2014 and 2013.

Summary of Allowance for Loan Losses

(Dollars in thousands)	Commercial				Commercial   Real Estate				Residential   Real Estate				Construction   & Land Development				Consumer				Unallocated				Total
December 31, 2015
Beginning balance		$	1,289			$	1,524			$	1,039			$	142			$	60			$	327			$	4,381
Provision for loan losses			285				(205	)			161				(19	)			62				105				389
Charge-offs			(109	)			(61	)			(132	)			–				(46	)							(348	)
Recoveries			199				13				18				–				10								240
Net charge-offs			90				(48	)			(114	)			–				(36	)							(108	)
Ending balance		$	1,664			$	1,271			$	1,086			$	123			$	86			$	432			$	4,662
December 31, 2014
Beginning balance		$	1,219			$	1,872			$	1,205			$	178			$	91			$	520			$	5,085
Provision for loan losses			1,047				23				(164	)			(36	)			(34	)			(193	)			643
Charge-offs			(1,005	)			(379	)			(27	)			–				(11	)							(1,422	)
Recoveries			28				8				25				–				14								75
Net charge-offs			(977	)			(371	)			(2	)			–				3								(1,347	)
Ending balance		$	1,289			$	1,524			$	1,039			$	142			$	60			$	327			$	4,381
December 31, 2013
Beginning balance		$	933			$	1,902			$	1,096			$	253			$	76			$	320			$	4,580
Provision for loan losses			451				78				173				(75	)			13				200				840
Charge-offs			(190	)			(108	)			(82	)			–				(48	)							(428	)
Recoveries			25				–				18				–				50								93
Net charge-offs			(165	)			(108	)			(64	)			–				2								(335	)
Ending balance		$	1,219			$	1,872			$	1,205			$	178			$	91			$	520			$	5,085

Allowances for Loan Losses and Ending Balances by Portfolio Segment and Based on Impairment Method

The following table presents the balance in the allowance for loan losses and the ending loan balances by portfolio segment and impairment method as of December 31:

(Dollars in thousands)	Commercial			Commercial   Real Estate			Residential Real Estate			Construction   & Land Development			Consumer			Unallocated			Total
2015
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment		$	299		$	64		$	26		$	–		$	–		$	–		$	389
Collectively evaluated for impairment			1,365			1,207			1,060			123			86			432			4,273
Total ending allowance balance		$	1,664		$	1,271		$	1,086		$	123		$	86		$	432		$	4,662
Loans:
Loans individually evaluated for impairment		$	6,127		$	1,064		$	1,533		$	–		$	–					$	8,724
Loans collectively evaluated for impairment			117,016			147,711			124,242			15,452			9,268						413,689
Total ending loans balance		$	123,143		$	148,775		$	125,775		$	15,452		$	9,268					$	422,413
2014
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment		$	–		$	109		$	75		$	–		$	–		$	–		$	184
Collectively evaluated for impairment			1,289			1,415			964			142			60			327			4,197
Total ending allowance balance		$	1,289		$	1,524		$	1,039		$	142		$	60		$	327		$	4,381
Loans:
Loans individually evaluated for impairment		$	5,922		$	1,679		$	1,612		$	–		$	–					$	9,213
Loans collectively evaluated for impairment			117,891			138,016			120,072			17,446			7,913						401,338
Total ending loans balance		$	123,813		$	139,695		$	121,684		$	17,446		$	7,913					$	410,551

Schedule of Impairment by Class of Loans

The following table presents loans individually evaluated for impairment by class of loans as of December 31:

(Dollars in thousands)	Unpaid Principal Balance			Recorded Investment With No Allowance			Recorded Investment With Allowance			Total Recorded Investment			Related Allowance			Average Recorded Investment			Interest Income Recognized
2015
Commercial		$	6,541		$	5,832		$	301		$	6,133		$	299		$	5,972		$	230
Commercial real estate			1,265			670			393			1,063			64			1,420			18
Residential real estate			1,689			967			568			1,535			26			1,671			61
Construction & land development			–			–			–			–			–			–			–
Total impaired loans		$	9,495		$	7,469		$	1,262		$	8,731		$	389		$	9,063		$	309
2014
Commercial		$	7,011		$	5,889		$	37		$	5,926		$	–		$	6,739		$	208
Commercial real estate			1,836			950			728			1,678			109			2,723			90
Residential real estate			1,721			885			730			1,615			75			1,796			61
Construction & land development			–			–			–			–			–			–			–
Total impaired loans		$	10,568		$	7,724		$	1,495		$	9,219		$	184		$	11,258		$	359
2013
Commercial		$	5,595		$	7		$	5,580		$	5,587		$	241		$	4,185		$	182
Commercial real estate			3,540			563			2,658			3,221			331			3,650			163
Residential real estate			2,001			337			1,510			1,847			212			1,315			41
Construction & land development			–			–			–			–			–			21			2
Total impaired loans		$	11,136		$	907		$	9,748		$	10,655		$	784		$	9,171		$	388

Schedule of Aging of Past Due and Nonaccrual Loans

The following table presents the aging of past due and nonaccrual loans by class of loans as of December 31:

(Dollars in thousands)	Current			30-59 Days Past Due			60-89 Days Past Due			90 Days + Past Due			Nonaccrual			Total Past Due and Nonaccrual			Total Loans
2015
Commercial		$	122,760		$	34		$	172		$	–		$	177		$	383		$	123,143
Commercial real estate			147,920			–			59			–			796			855			148,775
Residential real estate			124,408			486			173			105			603			1,367			125,775
Construction & land development			15,452			–			–			–			–			–			15,452
Consumer			9,105			163			–			–			–			163			9,268
Total loans		$	419,645		$	683		$	404		$	105		$	1,576		$	2,768		$	422,413
2014
Commercial		$	122,283		$	362		$	96		$	1		$	1,071		$	1,530		$	123,813
Commercial real estate			137,683			174			104			–			1,734			2,012			139,695
Residential real estate			120,025			424			92			280			863			1,659			121,684
Construction & land development			17,431			–			15			–			–			15			17,446
Consumer			7,798			73			42			–			–			115			7,913
Total loans		$	405,220		$	1,033		$	349		$	281		$	3,668		$	5,331		$	410,551

Summary of Troubled Debt Restructurings

Loan modifications that are considered TDRs completed during the year ended December 31:

(Dollars in thousands)	Number Of     Loans Restructured		Pre-Modification     Recorded Investment			Post-Modification     Recorded Investment
2015
Commercial		1		$	148		$	148
Residential real estate		5			307			307
Total restructured loans		6		$	455		$	455
2014
Residential real estate		1		$	84		$	84
Total restructured loans		1		$	84		$	84

Summary of Loans by Credit Quality Indicator

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

(Dollars in thousands)	Pass			Special Mention			Substandard			Doubtful			Not Rated			Total
2015
Commercial		$	112,229		$	3,100		$	7,044		$	–		$	770		$	123,143
Commercial real estate			141,621			2,742			3,150			–			1,262			148,775
Residential real estate			190			–			213			–			125,372			125,775
Construction & land development			11,015			944			–			–			3,493			15,452
Consumer			–			–			–			–			9,268			9,268
Total		$	265,055		$	6,786		$	10,407		$	–		$	140,165		$	422,413
2014
Commercial		$	112,467		$	3,809		$	6,690		$	–		$	847		$	123,813
Commercial real estate			129,792			4,898			3,634			–			1,371			139,695
Residential real estate			209			–			39			–			121,436			121,684
Construction & land development			13,889			1,579			–			–			1,978			17,446
Consumer			–			–			–			–			7,913			7,913
Total		$	256,357		$	10,286		$	10,363		$	–		$	133,545		$	410,551

Schedule of Loans Not Rated by Class of Loans

The following table presents loans that are not rated, by class of loans as of December 31:

(Dollars in thousands)	Performing			Nonperforming			Total
2015
Commercial		$	770		$	–		$	770
Commercial real estate			1,262			–			1,262
Residential real estate			124,700			672			125,372
Construction & land development			3,493			–			3,493
Consumer			9,268			–			9,268
Total		$	139,493		$	672		$	140,165
2014
Commercial		$	847		$	–		$	847
Commercial real estate			1,371			–			1,371
Residential real estate			120,332			1,104			121,436
Construction & land development			1,978			–			1,978
Consumer			7,913			–			7,913
Total		$	132,441		$	1,104		$	133,545