Loans (Tables)

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Summary of Loans

Loans consisted of the following at December 31:

(Dollars in thousands)	2016		2015
Commercial	$	134,268	$	123,143
Commercial real estate		159,475		148,775
Residential real estate		144,489		125,775
Construction & land development		23,428		15,452
Consumer		13,308		9,268
Total loans before deferred costs		474,968		422,413
Deferred loan costs		481		458
Total loans	$	475,449	$	422,871

Summary of Allowance for Loan Losses

Summary of Allowance for Loan Losses

(Dollars in thousands)	Commercial				Commercial   Real Estate				Residential   Real Estate				Construction   & Land Development				Consumer				Unallocated				Total
December 31, 2016
Beginning balance		$	1,664			$	1,271			$	1,086			$	123			$	86			$	432			$	4,662
Provision for loan losses			626				(291	)			110				55				113				(120	)			493
Charge-offs			(297	)			(50	)			(12	)			–				(59	)							(418	)
Recoveries			214				334				5				–				1								554
Net charge-offs			(83	)			284				(7	)			–				(58	)							136
Ending balance		$	2,207			$	1,264			$	1,189			$	178			$	141			$	312			$	5,291
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

Allowances for Loan Losses and Ending Balances by Portfolio Segment and 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
2016
Allowance for loan losses:
Ending allowance balances attributable to loans:
Individually evaluated for impairment		$	705		$	–		$	24		$	–		$	–		$	–		$	729
Collectively evaluated for impairment			1,502			1,264			1,165			178			141			312			4,562
Total ending allowance balance		$	2,207		$	1,264		$	1,189		$	178		$	141		$	312		$	5,291
Loans:
Loans individually evaluated for impairment		$	5,028		$	621		$	1,507		$	–		$	–					$	7,156
Loans collectively evaluated for impairment			129,240			158,854			142,982			23,428			13,308						467,812
Total ending loans balance		$	134,268		$	159,475		$	144,489		$	23,428		$	13,308					$	474,968
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

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
2016
Commercial		$	5,476		$	1,690		$	3,354		$	5,044		$	705		$	6,609		$	241
Commercial real estate			796			600			21			621			–			786			10
Residential real estate			1,681			1,036			472			1,508			24			1,507			61
Construction & land development			–			–			–			–			–			–			–
Total impaired loans		$	7,953		$	3,326		$	3,847		$	7,173		$	729		$	8,902		$	312
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

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
2016
Commercial		$	133,630		$	151		$	62		$	–		$	425		$	638		$	134,268
Commercial real estate			158,504			435			–			39			497			971			159,475
Residential real estate			142,926			816			61			196			490			1,563			144,489
Construction & land development			23,428			–			–			–			–			–			23,428
Consumer			13,234			21			16			–			37			74			13,308
Total loans		$	471,722		$	1,423		$	139		$	235		$	1,449		$	3,246		$	474,968
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

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

(Dollars in thousands)	Number Of Loans Restructured		Pre-Modification Recorded Investment			Post-Modification Recorded Investment
2016
Commercial		4		$	3,607		$	3,607
Residential real estate		1			101			101
Total restructured loans		5		$	3,708		$	3,708
2015
Commercial		1		$	148		$	148
Residential real estate		5			307			307
Total restructured loans		6		$	455		$	455

Summary of Loans by Credit Quality Indicator

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

(Dollars in thousands)	Pass			Special Mention			Substandard			Doubtful			Not Rated			Total
2016
Commercial		$	116,739		$	6,874		$	9,704		$	–		$	951		$	134,268
Commercial real estate			149,630			4,168			4,766			–			911			159,475
Residential real estate			216			–			175			–			144,098			144,489
Construction & land development			17,183			981			504			–			4,760			23,428
Consumer			–			–			–			–			13,308			13,308
Total		$	283,768		$	12,023		$	15,149		$	–		$	164,028		$	474,968
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 December 31:

(Dollars in thousands)	Performing			Nonperforming			Total
2016
Commercial		$	951		$	–		$	951
Commercial real estate			911			–			911
Residential real estate			143,440			658			144,098
Construction & land development			4,760			–			4,760
Consumer			13,271			37			13,308
Total		$	163,333		$	695		$	164,028
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