6. Loans and Allowance For Loan Losses (Tables)

9 Months Ended

Sep. 30, 2015

Tables/Schedules

Schedule of the Composition of Net Loans

(Dollars in thousands)	September 30, 2015	December 31, 2014
Commercial and industrial	$3,351	$4,635
Commercial real estate	27,010	31,556
Consumer real estate	2,926	3,297
Consumer loans other	1,268	1,373
Total loans	$34,555	$40,861

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 September 30, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans Other	Total
Beginning balance	$320	$236	$23	$17	$596
Provision (credit) for loan losses	100	(9)	(4)	(4)	83
Charge-offs	(212)	-	-	(2)	(214)
Recoveries	2	-	1	1	4
Net (charge-offs) recoveries	(210)	-	1	(1)	(210)
Ending balance	$210	$227	$20	$12	$469

(in 000's)	For the Three months ended September 30, 2014
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans  Other	Total
Beginning balance	$297	$295	$52	$13	$657
Provision (credit) for loan losses	74	5	(18)	1	62
Charge-offs	-	-	(19)	(7)	(26)
Recoveries	1	-	3	5	9
Net recoveries	1	-	(16)	(2)	(17)
Ending balance	$372	$300	$18	$12	$702

(in 000's)	For the Nine months ended September 30, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans Other	Total
Beginning balance	$403	$300	$20	$12	$735
Provision (credit) for loan losses	63	(73)	(4)	(3)	(17)
Charge-offs	(259)	-	-	(15)	(274)
Recoveries	3	-	4	18	25
Net (charge-offs) recoveries	(256)	-	4	3	(249)
Ending balance	$210	$227	$20	$12	$469

\\

(in 000's)	For the Nine months ended September 30, 2014
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans other	Total
Beginning balance	$483	$280	$59	$17	$839
Provision (credit) for loan losses	139	20	(28)	1	132
Charge-offs	(253)	-	(19)	(25)	(297)
Recoveries	3	-	6	19	28
Net (charge-offs)recoveries	(250)	-	(13)	(6)	(269)
Ending balance	$372	$300	$18	$12	$702

(in 000's)	September 30, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans other	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$9	$47	$-	$-	$56
Loans collectively  evaluated for impairment	201	180	20	12	413
	$210	$227	$20	$12	$469
Loans, ending balance:
Loans individually evaluated for impairment	$196	$1,491	$-	$-	$1,687
Loans collectively  evaluated for impairment	3,155	25,519	2,926	1,268	32,868
Total	$3,351	$27,010	$2,926	$1,268	$34,555

	December 31, 2014
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans other	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$247	$27	$-	$-	$274
Loans collectively  evaluated for impairment	156	273	20	12	461
	$403	$300	$20	$12	$735
Loans, ending balance:
Loans individually evaluated for impairment	$382	$1,623	$-	$-	$2,005
Loans collectively  evaluated for impairment	4,253	29,933	3,297	1,373	38,856
Total	$4,635	$31,556	$3,297	$1,373	$40,861

Schedule of Age Analysis of Past Due Loans

An age analysis of past due loans, segregated by class of loans, as of September 30, 2015 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	$-	$-	$110	$110	$1,532	$1,642
SBA loans	-	-	-	-	151	151
Asset-based	-	-	-	-	1,558	1,558
Total Commercial and industrial	-	-	110	110	3,241	3,351
Commercial real estate:
Commercial mortgages	606	54	969	1,629	11,770	13,399
SBA loans	-	-	109	109	564	673
Construction	-	-	-	-	2,529	2,529
Religious organizations	-	-	488	488	9,921	10,409
Total Commercial real estate	606	54	1,566	2,226	24,784	27,010
Consumer real estate:
Home equity loans	83	126	359	568	381	949
Home equity lines of credit	-	-	-	-	21	21
1-4 family residential mortgages	55	-	75	130	1,826	1,956
Total consumer real estate	138	126	434	698	2,228	2,926
Total real estate	744	180	2,000	2,924	27,012	29,936
Consumer and other:
Consumer installment	-	-	-	-	-	-
Student loans	55	91	-	146	995	1,141
Other	-	-	-	-	127	127
Total consumer and other	55	91	-	146	1,122	1,268
Total loans	$799	$271	$2,110	$3,180	$31,376	$34,555

An age analysis of past due loans, segregated by class of loans, as of December 31, 2014 is as follows:

		Accruing
	Loans	Loans 90 or
	30-89 Days	More Days		Total Past	Current
(In 000's)	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$-	$-	$248	$248	$2,315	$2,563
SBA loans	-	-	48	48	120	168
Asset-based	-	-	-	-	1,904	1,904
Total Commercial and industrial	-	-	296	296	4,339	4,635
Commercial real estate:
Commercial mortgages	17	83	985	1,085	14,385	15,470
SBA loans	-	-	118	118	407	525
Construction	-	-	-	-	3,423	3,423
Religious organizations	-	-	520	520	11,618	12,138
Total Commercial real estate	17	83	1,623	1,723	29,833	31,556
Consumer real estate:
Home equity loans	246	-	368	614	433	1,047
Home equity lines of credit	-	-	-	-	22	22
1-4 family residential mortgages	-	-	194	194	2,034	2,228
Total consumer real estate	246	-	562	808	2,489	3,297
Total real estate	263	83	2,185	2,531	32,322	34,853
Consumer and other:
Consumer installment	-	-	-	-	7	7
Student loans	136	88	-	224	997	1,221
Other	12	-	-	12	133	145
Total consumer and other	148	88	-	236	1,137	1,373
Total loans	$411	$171	$2,481	$3,063	$37,798	$40,861

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 September 30, 2015
	Good/ Excellent	Satisfactory	Pass	Special Mention	Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$250	$1,120	$18	$-	$254	$-	$1,642
SBA loans	-	8	103	-	40	-	151
Asset-based	-	1,312	124	-	46	76	1,558
	250	2,440	245	-	340	76	3,351
Commercial real estate:
Commercial mortgages	-	10,718	1,114	620	724	223	13,399
SBA Loans	-	399	165	-	109	-	673
Construction	-	2,529	-	-	-	-	2,529
Religious organizations	-	7,427	2,057	722	203	-	10,409
	-	21,073	3,336	1,342	1,036	223	27,010
Total commercial loans	$250	$23,513	$3,581	$1,342	$1,376	$299	$30,361

	Residential Mortgage and Consumer Loans September 30, 2015
	Performing	Nonperforming	Total
Consumer Real Estate:
Home equity	$500	$359	$949
Home equity line of credit	21	-	21
1-4 family residential mortgages	1,881	75	1,956
	2,492	434	2,926
Consumer Other:
Consumer Installment	-	-	-
Student loans	1,141	-	1,141
Other	127	-	127
	1,268	-	1,268
Total  consumer loans	$3,760	$434	$4,194
Total loans				$34,555

(In 000's)	Commercial Loans, December 31, 2014
	Good/ Excellent	Satisfactory	Pass	Special Mention	Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$300	$1,321	$474	$220	$113	$135	$2,563
SBA loans	-	80	-	-	88	-	168
Asset-based	-	1,734	124	-	46	-	1,904
	300	3,135	598	220	247	135	4,635
Commercial real estate:
Commercial mortgages	-	13,024	724	57	1,348	317	15,470
SBA Loans	-	237	170	-	118	-	525
Construction	-	3,423	-	-	-	-	3,423
Religious organizations	-	9,730	1,185	703	520	-	12,138
	-	26,414	2,079	760	1,986	317	31,556
Total commercial loans	$300	$29,549	$2,677	$980	$2,233	$452	$36,191

	Residential Mortgage and Consumer Loans December 31, 2014
	Performing	Nonperforming	Total
Consumer Real Estate:
Home equity	$679	$368	$1,047
Home equity line of credit	22	-	22
1-4 family residential mortgages	2,034	194	2,228
	2,735	562	3,297
Consumer Other:
Consumer Installment	7	-	7
Student loans	1,221	-	1,221
Other	145	-	145
	1,373	-	1,373
Total  consumer loans	$4,108	$562	$4,670
Total loans				$40,861

Schedule of Impaired Loans

Impaired loans as of September 30, 2015 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	$322	$110	$-	$110	$-
SBA Loans	40	40	-	40	-
Asset-based	46	-	46	46	9
Total commercial and industrial	408	150	46	196	9
Commercial real estate:
Commercial mortgages	894	505	389	894	41
SBA Loans	109	-	109	109	6
Religious organizations	488	488	-	488	-
Total commercial real estate	1,491	996	498	1,491	47
Total loans	$1,899	$1,143	$544	$1,687	$56

Impaired loans as of December 31, 2014 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	$501	$38	$210	$248	$199
SBA loans	94	46	48	94	48
Asset-based	40	40	-	40	-
Total commercial and industrial	635	124	258	382	247
Commercial real estate:
Commercial mortgages	985	616	369	985	27
SBA Loans	118	118	-	118	-
Religious organizations	520	520	-	520	-
Total commercial real estate	1,623	1,254	369	1,623	27
Total loans	$2,258	$1,378	$627	$2,005	$274

Schedule of Interest Income on Impaired Loans

The Bank recognizes interest income on impaired loans under the cash basis when the collateral on the loan is sufficient to cover the outstanding obligation to the Bank.   If these factors do not exist, the Bank will record interest payments on the cost recovery basis. The following tables present additional information about impaired loans.

(In 000's)	Three Months Ended September 30, 2015		Three Months Ended September 30, 2014
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans
Commercial and industrial:
Commercial	$160	$-	$204	$3
SBA  loans	40	1	48	-
Asset-based	46	1	-	-
Total commercial and industrial	246	2	252	3
Commercial real estate:
Commercial mortgages	976	-	995	-
SBA loans	110	-	122	-
Religious organizations	488	-	610	-
Total commercial real estate	1,574	-	1,727	-
Total loans	$1,820	$2	$1,979	$3

(In 000's)	Nine Months Ended  September 30, 2015		Nine Months Ended  September 30, 2014
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans
Commercial and industrial:
Commercial	$188	$-	$231	$3
SBA  loans	58	2	48	-
Asset-based	36	2	-	-
Total commercial and industrial	282	4	279	3
Commercial real estate:
Commercial mortgages	971	-	931	3
SBA loans	112	-	125	1
Religious organizations	496	2	617	2
Total commercial real estate	1,579	2	1,673	6
Total loans	$1,861	$6	$1,952	$9