Loans (Tables)

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Summary of Loans

Loans consist of the following:

(Dollars in thousands)	March 31, 2016		December 31, 2015
Commercial	$	128,924	$	123,143
Commercial real estate		153,008		148,775
Residential real estate		127,099		125,775
Construction & land development		13,571		15,452
Consumer		10,383		9,268
Total loans before deferred costs		432,985		422,413
Deferred loan costs		468		458
Total Loans	$	433,453	$	422,871

Schedule of Allowances for Loan Losses by Portfolio Segment

The following tables detail activity in the allowance for loan losses by portfolio segment for the three month periodS ended March 31, 2016 and 2015.

(Dollars in thousands)	Commercial			Commercial Real Estate			Residential Real Estate			Construction & Land Development			Consumer			Unallocated			Total
Three months ended March 31, 2016
Beginning balance	$	1,664		$	1,271		$	1,086		$	123		$	86		$	432		$	4,662
Provision for possible loan losses		394			(228	)		(4	)		(17	)		8			11			164
Charge-offs		(9	)		—			—			—			(1	)					(10	)
Recoveries		4			182			2			—			1						189
Net (charge-offs) recoveries		(5	)		182			2			—			—						179
Ending balance	$	2,053		$	1,225		$	1,084		$	106		$	94		$	443		$	5,005
Three months ended March 31, 2015
Beginning balance	$	1,289		$	1,524		$	1,039		$	142		$	60		$	327		$	4,381
Provision for possible loan losses		101			64			8			(9	)		36			(6	)		194
Charge-offs		(2	)		(24	)		(53	)		—			(30	)					(109	)
Recoveries		6			10			9			—			3						28
Net (charge-offs) recoveries		4			(14	)		(44	)		—			(27	)					(81	)
Ending balance	$	1,394		$	1,574		$	1,003		$	133		$	69		$	321		$	4,494

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 based on the impairment method as of March 31, 2016 and December 31, 2015:

(Dollars in thousands)	Commercial		Commercial Real Estate		Residential Real Estate		Construction		Consumer		Unallocated		Total
March 31, 2016
Allowance for loan losses:
Individually evaluated for impairment	$	583	$	—	$	26	$	—	$	—	$	—	$	609
Collectively evaluated for impairment		1,470		1,225		1,058		106		94		443		4,396
Total ending allowance balance	$	2,053	$	1,225	$	1,084	$	106	$	94	$	443	$	5,005
Loans:
Loans individually evaluated for impairment	$	6,017	$	744	$	1,509	$	—	$	—			$	8,270
Loans collectively evaluated for impairment		122,907		152,264		125,590		13,571		10,383				424,715
Total ending loans balance	$	128,924	$	153,008	$	127,099	$	13,571	$	10,383			$	432,985
December 31, 2015
Allowance for loan losses:
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

Schedule of Impairment by Class of Loans

The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2016 and December 31, 2015:

(Dollars in thousands)	Unpaid Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance
March 31, 2016
Commercial	$	6,435	$	5,142	$	894	$	6,036	$	583
Commercial real estate		952		719		25		744		—
Residential real estate		1,671		849		661		1,510		26
Total impaired loans	$	9,058	$	6,710	$	1,580	$	8,290	$	609
December 31, 2015
Commercial	$	6,541	$	5,832	$	301	$	6,133	$	299
Commercial real estate		1,265		670		393		1,063		64
Residential real estate		1,689		967		568		1,535		26
Total impaired loans	$	9,495	$	7,469	$	1,262	$	8,731	$	389

Schedule of Average Recorded Investment in Impaired Loans and Related Interest Income Recognized

The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated.

	Three months
	ended March 31,
(Dollars in thousands)	2016		2015
Average recorded investment:
Commercial	$	6,016	$	5,857
Commercial real estate		984		1,704
Residential real estate		1,530		1,618
Average recorded investment in impaired loans	$	8,530	$	9,179
Interest income recognized:
Commercial	$	65	$	51
Commercial real estate		4		5
Residential real estate		15		16
Interest income recognized on a cash basis on impaired loans	$	84	$	72

Schedule of Aging of Past Due and Nonaccrual Loans

The following table presents the aging of past due loans and nonaccrual loans as of March 31, 2016 and December 31, 2015 by class of loans:

(Dollars in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days + Past Due		Non- Accrual		Total Past Due and Non- Accrual		Total Loans
March 31, 2016
Commercial	$	128,225	$	86	$	169	$	—	$	444	$	699	$	128,924
Commercial real estate		152,192		—		108		39		669		816		153,008
Residential real estate		126,063		180		93		189		574		1,036		127,099
Construction & land development		13,558		13		—		—		—		13		13,571
Consumer		10,284		62		37		—		—		99		10,383
Total Loans	$	430,322	$	341	$	407	$	228	$	1,687	$	2,663	$	432,985
December 31, 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

Summary of Troubled Debt Restructurings

The following table presents loans restructured during the three month period ended March 31, 2015.

(Dollars in thousands)	Number of loans restructured		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
For the Three Months Ended March 31, 2015
Residential Real Estate		1	$	29	$	29
Total Restructured Loans		1	$	29	$	29

Summary of Loans by Credit Quality Indicator

Based on the most recent analysis performed, the risk category of loans by class is as follows as of March 31, 2016 and December 31, 2015:

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
March 31, 2016
Commercial	$	118,269	$	2,776	$	6,990	$	—	$	889	$	128,924
Commercial real estate		146,445		2,664		2,976		—		923		153,008
Residential real estate		223		—		202		—		126,674		127,099
Construction & land development		11,678		724		—		—		1,169		13,571
Consumer		—				—		—		10,383		10,383
Total	$	276,615	$	6,164	$	10,168	$	—	$	140,038	$	432,985
December 31, 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

Schedule of Loans Not Rated by Class of Loans

The following table presents loans that are not rated by class of loans as of March 31, 2016 and December 31, 2015. Nonperforming loans include loans past due 90 days or more and loans on nonaccrual of interest status.

(Dollars in thousands)	Performing		Non-Performing		Total
March 31, 2016
Commercial	$	889	$	—	$	889
Commercial real estate		923		—		923
Residential real estate		125,941		733		126,674
Construction & land development		1,169		—		1,169
Consumer		10,383		—		10,383
Total	$	139,305	$	733	$	140,038
December 31, 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