6. Loans and Allowance For Loan Losses (Tables)

6 Months Ended

Jun. 30, 2017

Table Text Block Supplement [Abstract]

Schedule of the Composition of Net Loans

The composition of the Bank’s loan portfolio is as follows:

(Dollars in thousands)	June 30, 2017	December 31, 2016
Commercial and industrial	$  2,334	$  2,149
Commercial real estate	20,467	21,488
Consumer real estate	1,907	2,232
Consumer loans other	889	966
Total loans	$ 25,597	$ 26,835

Schedule of Age Analysis of Allowance for Loan Losses

The following table presents an analysis of the allowance for loan losses.

(in 000's)		For the Three months ended June 30, 2017
	Commercial and industrial			Commercial real estate		Consumer real estate	Consumer loans Other	Unallocated	Total
Beginning balance	$  63			$  171		$ 8	$  11	$  20	$            273
Provision (credit) for loan losses	10			(26)		-	-	(30)	(46)
Charge-offs	-			-		-	(2)	-	(2)
Recoveries	1			25		-	1	-	27
Net recoveries	1			25		-	(1)	-	25
Ending balance	$  74			$170		$ 8	$  10	$           (10)	$           252
(in 000's)		For the Three months ended June 30, 2016
	Commercial and industrial		Commercial real estate		Consumer real estate		Consumer loans Other	Unallocated	Total
Beginning balance	$ 120		$ 241		$ 14		$ 9	$           -	$ 384
Provision (credit) for loan losses	(34)		45		19		-	-	50
Charge-offs	-		(41)		(22)		(1)	-	(64)
Recoveries	1		-		2		2	-	5
Net (charge-offs)recoveries	1		(41)		(20)		1	-	(59)
Ending balance	$ 87		$ 245		$ 13		$ 10	$     -	$ 355

(in 000's)		For the Six months ended June 30, 2017
	Commercial and industrial		Commercial real estate	Consumer real estate	Consumer loans Other	Unallocated	Total
Beginning balance	$                 68		$                 179	$                     10	$                 11	32	$          300
Provision (credit) for loan losses	4		(34)	(3)	-	(43)	(76)
Charge-offs	-		-	-	(3)	-	(3)
Recoveries	2		25	1	3	-	31
Net (charge-offs)recoveries	2		25	1	-	-	28
Ending balance	$                   74		$                 170	$                       8	$                    11	(11)	$          252

(in 000's)		For the Six months ended June 30, 2016
	Commercial and industrial		Commercial real estate	Consumer real estate	Consumer loans Other	Unallocated	Total
Beginning balance	$ 151		$ 250	$ 8	$ 9	$        -	$ 418
Provision (credit) for loan losses	(5)		-	-	-	-	(5)
Charge-offs	-		(41)	(22)	(3)	-	(66)
Recoveries	2		-	2	4	-	8
Net (charge-offs)recoveries	2		(41)	-	1	-	(58)
Ending balance	$ 87		$ 245	$ 13	$ 10	$         -	$ 355

(in 000's)			June 30, 2017
	Commercial and Industrial	Commercial real estate		Consumer real estate	Consumer loans Other	Unallocated	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$  -	$  50		$  -	$  -	$      -	$  50
Loans collectively  evaluated for impairment	74	120		8	10	(11)	202
	$  74	$  170		$  8	$  10	$  (11)	$  252
Loans, ending balance:
Loans individually evaluated for impairment	$  243	$  1,795		$  -	$  -	$     -	$  2,038
Loans collectively  evaluated for impairment	2,091	18,672		1,907	889	-	23,559
Total	$  2,334	$  20,467		$  1,907	$  889	$     -	$  25,597

(in 000’s)			December 31, 2016
	Commercial and industrial	Commercial real Estate	Consumer real estate	Consumer loans Other	Unallocated	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$ -	$ 54	$ -	$ -	$      -	$ 54
Loans collectively  evaluated for impairment	68	125	10	11	32	246
	$    68	$        179	$         10	$        11	$     32	$     300
Loans, ending balance:
Loans individually evaluated for impairment	$ 352	$ 1,731	$ -	$ -	$     -	$ 2,083
Loans collectively  evaluated for impairment	1,797	19,757	2,232	966	-	24,752
Total	$  2,149	$ 21,488	$ 2,232	$    966	$     -	$ 26,835

Schedule of Age Analysis of Past Due Loans

An age analysis of past due loans, segregated by class of loans, as of June 30, 2017 is as follows:

		Accruing
	Loans	Loans 90 or
(In 000's)	30-89 Days	More Days		Total Past	Current
	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$  -	$  -	$  -	$  -	$  551	$  551
SBA loans	-	-	-	-	33	33
Asset-based	-	-	319	319	1,431	1,750
Total Commercial and industrial	-	-	319	319	2,015	2,334
Commercial real estate:
Commercial mortgages	-	-	1,279	1,279	9,130	10,409
SBA loans	-	-	248	248	217	465
Construction	-	-	-	-	681	681
Religious organizations	-	-	192	192	8,720	8,912
Total Commercial real estate	-	-	1,719	1,719	18,748	20,467
Consumer real estate:
Home equity loans	2	153	337	492	$302	$794
Home equity lines of credit	18	-	-	18	-	18
1-4 family residential mortgages	-	-	58	58	1,037	1,095
Total consumer real estate	20	153	395	568	1,339	1,907
Total real estate	20	153	2,114	2,287	20,087	22,374
Consumer and other:
Student loans	154	52	-	206	567	773
Other	2	1	-	3	113	116
Total consumer and other	156	53	-	209	680	889
Total loans	$  176	$  206	$  2,433	$  2,815	$  22,782	$ 25,597

An age analysis of past due loans, segregated by class of loans, as of December 31, 2016 is as follows:

		Accruing	Nonaccrual
	Loans	Loans 90 or	Loans 90 or
	30-89 Days	More Days	More Days	Total Past	Current
(In 000's)	Past Due	Past Due	Past Due	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$     -	$       -	$   33	$   33	$   857	$     890
Asset-based	27	243	75	345	914	1,259
Total Commercial and industrial	27	243	108	378	1.771	2,149
Commercial real estate:
Commercial mortgages	-	11	1,270	1,281	10,104	11,385
SBA loans	-	162	93	255	-	255
Construction	-	-	-	-	542	542
Religious organizations	-	-	196	306	9,000	9,306
Total Commercial real estate	110	173	1,559	1,842	19,646	21,488
Consumer real estate:
Home equity loans	-	153	345	498	301	799
Home equity lines of credit	-	-	-	-	19	19
1-4 family residential mortgages	59	-	75	134	1,280	1,414
Total consumer real estate	59	153	420	632	1,600	2,232
Total real estate	169	326	1,979	2,474	21,246	23,720
Consumer and other:
Student loans	38	61	-	99	756	855
Other	-	1	-	1	110	111
Total consumer and other	38	62	-	100	866	966
Total loans	$   234	$     631	$  2,087	$  2,952	$ 23,883	$ 26,835

Schedule of Bank Loans by Class According to Credit Quality

The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above.

(In 000's)				Commercial Loans June 30, 2017
	Good/ Excellent	Satisfactory		Pass	Special Mention	Substandard		Doubtful	Total
Commercial and industrial:
Commercial	$  260	$  355		$  6	$  30	$  219		$  -	$  870
SBA loans	-			33	-	-		-	33
Asset-based	-	865		247	-	243		76	1,431
	260	1,220		286	30	462		76	2,334
Commercial real estate:
Commercial mortgages	-	6,344		2,282	504	1,059		220	10,409
SBA Loans	-	217		-	-	248		-	465
Construction	-	681		-	-	-		-	681
Religious organizations	42	7,831		740	107	192		-	8,912
	42	15,073		3,022	611	1,499		220	20,467
Total commercial loans	$ 302	$  16,293		$  3,308	$  641	$  1,961		$  296	$  22,801
			Residential Mortgage and Consumer Loans June 30, 2017
	Performing			Nonperforming			Total
Consumer Real Estate:
Home equity	$  304			$  490			$  794
Home equity line of credit	18			-			18
1-4 family residential mortgages	1,037			58			1,095
	1,359			548			1,907
Consumer Other:
Student loans	721			52			773
Other	115			1			116
	836			53			889
Total  consumer loans	$  2,195			$  601			$  2,796

(In 000's)			Commercial Loans, December 31, 2016
	Good/ Excellent	Satisfactory	Pass	Special Mention		Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$    260	$    331	$    9	$    38		$    252	$    -	$    890
Asset-based	-	742	198	-		243	76	1,259
	260	1,073	207	38		495	76	2,149
Commercial real estate:
Commercial mortgages	-	8,193	1,375	537		1,059	221	11,385
SBA Loans	-	2	-	160		93	-	255
Construction	-	542	-	-		-	-	542
Religious organizations	49	8,201	751	109		196	-	9,306
	49	16,938	2,126	806		1,348	221	21,488
Total commercial loans	$    312	$ 18,011	$    2,333	$    844		$    1,843	$    297	$  23,637
			Residential Mortgage and Consumer Loans December 31, 2016
	Performing		Nonperforming		Total
Consumer Real Estate:
Home equity	$    301		$    448		$    799
Home equity line of credit	19		-		19
1-4 family residential mortgages	1,339		75		1,414
	1,659		573		2,232
Consumer Other:
Student loans	794		61		855
Other	110		1		111
	904		62		966
Total  consumer loans	$ 2,563		$    635		$    3,198

Schedule of Impaired Loans

Impaired loans as of June 30, 2017 are set forth in the following table.

(In 000's)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total
	Principal	With No	With	Recorded	Related
	Balance	Allowance	Allowance	Investment	Allowance
Commercial and industrial:
Asset-based	$ 243	$ 243	$ -	$ 243	$ -
Total commercial and industrial	243	243	-	243	-
Commercial real estate:
Commercial mortgages	1,355	882	473	1,355	50
SBA Loans	248	248	-	248	-
Religious organizations	192	192	-	192	-
Total commercial real estate	1,795	1,322	473	1,795	50
Total loans	$  2,038	$  1,565	$  473	$2,038	$  50

Impaired loans as of December 31, 2016 are set forth in the following table.

(In 000's)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total
	Principal	With No	With	Recorded	Related
	Balance	Allowance	Allowance	Investment	Allowance
Commercial and industrial:
Commercial	$ 33	$ 33	$  -	$    33	$   -
Asset-based	319	319	-	319	-
Total commercial and industrial	352	352	-	352	-
Commercial real estate:
Commercial mortgages	1,321	807	473	1,281	54
SBA Loans	255	255	-	255	-
Religious organizations	195	195	-	195	-
Total commercial real estate	1,771	1,258	473	1,731	54
Total loans	$2,123	$ 1,610	$   473	$  2,083	$ 54

Schedule of Interest Income on Impaired Loans

The following tables present additional information about impaired loans.

(In 000's)	Three Months Ended June 30, 2017		Three Months Ended June 30, 2016
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans
Commercial and industrial:
Commercial	$  -	$  -	$   109	$      -
SBA  loans	-	-	39	-
Asset-based	265	-	289	3
Total commercial and industrial	265	-	437	3
Commercial real estate:
Commercial mortgages	1,355	-	1,308	4
SBA loans	250	-	264	-
Religious organizations	192	-	242	-
Total commercial real estate	1,797	-	1,814	4
Total loans	$  2,062	$  -	$   2,251	$     7

(In 000's)	Six Months Ended June 30, 2017		Six Months Ended June 30, 2016
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans
Commercial and industrial:
Commercial	$10	$      -	$ 109	$     -
SBA  loans	-	-	39	-
Asset-based	260	-	289	-
Total commercial and industrial	270	-	437	-
Commercial real estate:
Commercial mortgages	1,355	-	1,097	13
SBA loans	252	-	103	5
Religious organizations	193	-	348	-
Total commercial real estate	1,800	-	1,548	18
Total loans	$2,070	$      -	$   1,985	$    18