Allowance For Loan Losses (Tables)

9 Months Ended

Sep. 30, 2014

Allowance for Loan and Lease Losses, Adjustments, Net [Abstract]

Changes in the allowance for loan losses for the nine months ended September 30, 2014 and 2013 and the year ended December 31, 2013 were as follows:



	Nine Months Ended			Year Ended			Nine Months Ended
	September 30,			December 31,			September 30,
	2014			2013			2013
				(in thousands)
Balance, beginning	$	5,488		$	6,577		$	6,577
Provision charged to operating expense	—			—			767
Recoveries added to the allowance	614			233			204
Loan losses charged to the allowance	(515		)	(1,322		)	(830		)
Balance, ending	$	5,587		$	5,488		$	6,718

Nonaccrual And Past Due Loans By Class

Nonaccrual and past due loans by class at September 30, 2014 and December 31, 2013 were as follows:



	September 30, 2014
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Days Past Due Still Accruing		Nonaccrual Loans
Commercial - Non Real Estate:
Commercial & Industrial	$	43	$	1,053	$	100	$	1,196	$	28,512	$	29,708	$	—	$	1,736
Commercial Real Estate:
Owner Occupied	3,276		739		608		4,623		95,127		99,750		—		2,485
Non-owner occupied	631		—		813		1,444		57,290		58,734		—		1,243
Construction and Farmland:
Residential	—		—		—		—		5,837		5,837		—		—
Commercial	424		16		80		520		32,256		32,776		16		462
Consumer:
Installment	60		2		—		62		13,234		13,296		—		—
Residential:
Equity Lines	63		121		179		363		30,570		30,933		—		329
Single family	1,526		348		345		2,219		186,463		188,682				2,373
Multifamily	—		—		—		—		3,050		3,050		—		—
All Other Loans	—		—		—		—		2,302		2,302		—		—
Total	$	6,023	$	2,279	$	2,125	$	10,427	$	454,641	$	465,068	$	16	$	8,628



	December 31, 2013
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Past Due Still Accruing		Nonaccrual Loans
Commercial - Non Real Estate:
Commercial & Industrial	$	143	$	—	$	1,162	$	1,305	$	19,560	$	20,865	$	—	$	1,288
Commercial Real Estate:
Owner Occupied	364		—		1,270		1,634		90,811		92,445		—		1,269
Non-owner occupied	99		185		—		284		55,437		55,721		—		185
Construction and Farmland:
Residential	—		—		—		—		7,860		7,860		—		—
Commercial	—		—		—		—		29,073		29,073		—		157
Consumer:
Installment	95		9		11		115		13,670		13,785		11		6
Residential:
Equity Lines	202		25		—		227		31,997		32,224		—		179
Single family	1,995		180		693		2,868		183,541		186,409		—		1,328
Multifamily	—		—		—		—		2,850		2,850		—		—
All Other Loans	—		—		—		—		3,041		3,041		—		—
Total	$	2,898	$	399	$	3,136	$	6,433	$	437,840	$	444,273	$	11	$	4,412

Allowance For Loan Losses By Segment

Allowance for loan losses by segment at September 30, 2014 and December 31, 2013 were as follows:



	As of and for the Nine Months Ended
	September 30, 2014
	(in thousands)
	Construction and Farmland			Residential Real Estate			Commercial Real Estate			Commercial		Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	1,032		$	2,225		$	1,337		$	555	$	102		$	82		$	155	$	5,488
Charge-Offs	—			(435		)	—			—		(65		)	(15		)	—		(515		)
Recoveries	4			9			379			148		71			3			—		614
Provision	(143		)	76			(312		)	200		(2		)	(27		)	208		—
Ending balance	$	893		$	1,875		$	1,404		$	903	$	106		$	43		$	363	$	5,587
Ending balance: Individually evaluated for impairment	$	63		$	243		$	280		$	414	$	—		$	—		$	—	$	1,000
Ending balance: collectively evaluated for impairment	$	830		$	1,632		$	1,124		$	489	$	106		$	43		$	363	$	4,587
Financing receivables:
Ending balance	$	38,613		$	222,665		$	158,484		$	29,708	$	13,296		$	2,302		$	—	$	465,068
Ending balance individually evaluated for impairment	$	2,828		$	3,648		$	4,417		$	1,736	$	—		$	—		$	—	$	12,629
Ending balance collectively evaluated for impairment	$	35,785		$	219,017		$	154,067		$	27,972	$	13,296		$	2,302		$	—	$	452,439



	As of and for the Twelve Months Ended
	December 31, 2013
	(in thousands)
	Construction and Farmland			Residential Real Estate			Commercial Real Estate			Commercial			Consumer			All Other Loans			Unallocated			Total
Allowance for credit losses:
Beginning Balance	$	1,280		$	2,820		$	1,182		$	880		$	107		$	122		$	186		$	6,577
Charge-Offs	(20		)	(507		)	(289		)	(403		)	(85		)	(18		)	—			(1,322		)
Recoveries	5			109			7			47			54			11			—			233
Provision	(233		)	(197		)	437			31			26			(33		)	(31		)	—
Ending balance	$	1,032		$	2,225		$	1,337		$	555		$	102		$	82		$	155		$	5,488
Ending balance: Individually evaluated for impairment	$	218		$	627		$	299		$	334		$	—		$	—		$	—		$	1,478
Ending balance: collectively evaluated for impairment	$	814		$	1,598		$	1,038		$	221		$	102		$	82		$	155		$	4,010
Financing receivables:
Ending balance	$	36,933		$	221,483		$	148,166		$	20,865		$	13,785		$	3,041		$	—		$	444,273
Ending balance individually evaluated for impairment	$	2,674		$	4,922		$	4,750		$	1,347		$	—		$	6		$	—		$	13,699
Ending balance collectively evaluated for impairment	$	34,259		$	216,561		$	143,416		$	19,518		$	13,785		$	3,035		$	—		$	430,574

Impaired Loans By Class

Impaired loans by class at September 30, 2014 and December 31, 2013 were as follows:



	As of
	September 30, 2014
	(in thousands)
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance:
Commercial - Non Real Estate:
Commercial & Industrial	$	480	$	481	$	—	$	520	$	6
Commercial Real Estate:
Owner Occupied	2,237		2,237		—		2,558		31
Non-owner occupied	858		859		—		1,083		31
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	2,472		2,483		—		2,505		74
Residential:
Equity lines	140		140		—		312		1
Single family	2,701		2,702		—		4,320		82
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	8,888	$	8,902	$	—	$	11,298	$	225
With an allowance recorded:
Commercial - Non Real Estate:
Commercial & Industrial	$	1,256	$	1,256	$	414	$	1,550	$	3
Commercial Real Estate:
Owner Occupied	461		461		34		462		11
Non-owner occupied	861		861		246		880		9
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	356		356		63		395		3
Residential:
Equity lines	189		189		113		338		2
Single family	618		620		130		630		18
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	3,741	$	3,743	$	1,000	$	4,255	$	46
Total:
Commercial	$	1,736	$	1,737	$	414	$	2,070	$	9
Commercial Real Estate	4,417		4,418		280		4,983		82
Construction and Farmland	2,828		2,839		63		2,900		77
Residential	3,648		3,651		243		5,600		103
Other	—		—		—		—		—
Total	$	12,629	$	12,645	$	1,000	$	15,553	$	271

The average recorded investment of impaired loans for the three months ended September 30, 2014 was $15.3 million. The interest income recognized on impaired loans for the three months ended September 30, 2014 was $83 thousand.



	As of
	December 31, 2013
	(in thousands)
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance:
Commercial - Non Real Estate:
Commercial & Industrial	$	126	$	145	$	—	$	329	$	8
Commercial Real Estate:
Owner Occupied	2,246		2,273		—		2,512		118
Non-owner occupied	1,396		1,398		—		1,498		91
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	2,392		2,401		—		2,420		97
Residential:
Equity lines	289		290		—		460		16
Single family	3,060		3,100		—		3,531		146
Multifamily	—		—		—		—		—
Other Loans	6		6		—		7		1
	$	9,515	$	9,613	$	—	$	10,757	$	477
With an allowance recorded:
Commercial - Non Real Estate:
Commercial & Industrial	$	1,221	$	1,221	$	334	$	1,271	$	59
Commercial Real Estate:
Owner Occupied	—		—		—		—		—
Non-owner occupied	1,108		1,111		299		1,126		49
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	282		283		218		308		18
Residential:
Equity lines	74		74		74		217		7
Single family	1,499		1,508		553		1,530		71
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	4,184	$	4,197	$	1,478	$	4,452	$	204
Total:
Commercial	$	1,347	$	1,366	$	334	$	1,600	$	67
Commercial Real Estate	4,750		4,782		299		5,136		258
Construction and Farmland	2,674		2,684		218		2,728		115
Residential	4,922		4,972		627		5,738		240
Other	6		6		—		7		1
Total	$	13,699	$	13,810	$	1,478	$	15,209	$	681

Credit Quality Information By Class

Credit quality information by class at September 30, 2014 and December 31, 2013 was as follows:



	As of
	September 30, 2014
	(in thousands)
INTERNAL RISK RATING GRADES	Pass		Watch		Special Mention		Substandard		Doubtful		Loss		Total
Commercial - Non Real Estate:
Commercial & Industrial	$	25,375	$	2,284	$	22	$	772	$	1,255	$	—	$	29,708
Commercial Real Estate:
Owner Occupied	76,373		17,682		834		3,678		1,183		—		99,750
Non-owner occupied	39,631		12,895		2,911		3,248		49		—		58,734
Construction and Farmland:
Residential	5,715		122		—		—		—		—		5,837
Commercial	26,037		3,501		871		2,287		80		—		32,776
Residential:
Equity Lines	29,426		1,207		—		150		150		—		30,933
Single family	162,760		15,314		5,702		4,330		576		—		188,682
Multifamily	2,166		884		—		—		—		—		3,050
All other loans	2,302		—		—		—		—		—		2,302
Total	$	369,785	$	53,889	$	10,340	$	14,465	$	3,293	$	—	$	451,772



	Performing		Nonperforming
Consumer Credit Exposure by Payment Activity	$	13,234	$	62



	As of
	December 31, 2013
	(in thousands)
INTERNAL RISK RATING GRADES	Pass		Watch		Special Mention		Substandard		Doubtful		Loss		Total
Commercial - Non Real Estate:
Commercial & Industrial	$	16,565	$	2,820	$	86	$	106	$	1,288	$	—	$	20,865
Commercial Real Estate:
Owner Occupied	73,998		12,036		3,322		1,820		1,269		—		92,445
Non-owner occupied	31,484		14,922		5,557		3,758		—		—		55,721
Construction and Farm land:
Residential	7,738		122		—		—		—		—		7,860
Commercial	24,252		1,353		1,196		2,186		86		—		29,073
Residential:
Equity Lines	30,458		708		415		480		163		—		32,224
Single family	157,273		11,505		11,046		5,775		810		—		186,409
Multifamily	1,946		904		—		—		—		—		2,850
All other loans	3,041		—		—		—		—		—		3,041
Total	$	346,755	$	44,370	$	21,622	$	14,125	$	3,616	$	—	$	430,488



	Performing		Nonperforming
Consumer Credit Exposure by Payment Activity	$	13,670	$	115