Loans (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of major classifications of loans


	December 31, 2015		December 31, 2014
Commercial	$	130,362	$	119,158
Real estate - commercial		605,721		600,629
Real estate - construction		19,806		44,795
Real estate - residential		351,007		370,191
Consumer		4,216		3,504
Overdraft		483		649
Lease financing receivables		10,953		8,038
Other		10,130		11,630
		1,132,678		1,158,594
Net deferred loan costs		1,037		738
	$	1,133,715	$	1,159,332

Schedule of aged analysis of past due loans by class of loans


.															Recorded
															Investment
															90 days or
					90 Days or										Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past								Due and
December 31, 2015	Past Due		Past Due		Due		Due		Current		Nonaccrual		Total Loans		Accruing
Commercial	$	394	$	-	$	-	$	394	$	140,848	$	73	$	141,315	$	-
Real estate - commercial
Owner occupied general purpose		652		119		-		771		123,479		1,254		125,504		-
Owner occupied special purpose		358		-		-		358		170,827		763		171,948		-
Non-owner occupied general purpose		-		-		-		-		166,668		975		167,643		-
Non-owner occupied special purpose		-		-		-		-		92,387		-		92,387		-
Retail properties		-		-		-		-		34,352		-		34,352		-
Farm		-		-		-		-		12,615		1,272		13,887		-
Real estate - construction
Homebuilder		-		-		-		-		2,604		-		2,604		-
Land		-		-		-		-		1,137		-		1,137		-
Commercial speculative		-		-		-		-		2,117		83		2,200		-
All other		6		77		65		148		13,717		-		13,865		65
Real estate - residential
Investor		101		-		-		101		125,611		972		126,684		-
Owner occupied		1,083		446		-		1,529		110,885		6,378		118,792		-
Revolving and junior liens		344		68		-		412		102,500		2,619		105,531		-
Consumer		4		-		-		4		4,212		-		4,216		-
All other1		-		-		-		-		11,650		-		11,650		-
	$	2,942	$	710	$	65	$	3,717	$	1,115,609	$	14,389	$	1,133,715	$	65


															Recorded
															Investment
															90 days or
					90 Days or										Greater Past
	30-59 Days		60-89 Days		Greater Past		Total Past								Due and
December 31, 2014	Past Due		Past Due		Due		Due		Current		Nonaccrual		Total Loans		Accruing
Commercial	$	38	$	-	$	-	$	38	$	125,658	$	1,500	$	127,196	$	-
Real estate - commercial
Owner occupied general purpose		699		-		-		699		126,029		5,937		132,665		-
Owner occupied special purpose		-		-		-		-		167,874		1,441		169,315		-
Non-owner occupied general purpose		-		-		-		-		153,328		4,907		158,235		-
Non-owner occupied special purpose		-		-		-		-		87,054		1,423		88,477		-
Retail properties		-		-		-		-		37,780		-		37,780		-
Farm		-		-		-		-		14,157		-		14,157		-
Real estate - construction
Homebuilder		-		-		-		-		3,204		-		3,204		-
Land		-		-		-		-		1,658		-		1,658		-
Commercial speculative		-		-		-		-		13,431		-		13,431		-
All other		71		29		-		100		25,841		561		26,502		-
Real estate - residential
Investor		-		-		-		-		135,273		1,942		137,215		-
Owner occupied		1,076		914		-		1,990		107,727		6,711		116,428		-
Revolving and junior liens		94		44		-		138		113,906		2,504		116,548		-
Consumer		-		-		-		-		3,504		-		3,504		-
All other1		-		-		-		-		13,017		-		13,017		-
	$	1,978	$	987	$	-	$	2,965	$	1,129,441	$	26,926	$	1,159,332	$	-

1. The “All other” class includes overdrafts and net deferred loan fees and costs.

Schedule of credit quality indicators by class of loans


December 31, 2015			Special
	Pass		Mention		Substandard 1		Doubtful		Total
Commercial	$	136,078	$	3,208	$	2,029	$	-	$	141,315
Real estate - commercial
Owner occupied general purpose		123,827		-		1,677		-		125,504
Owner occupied special purpose		171,185		-		763		-		171,948
Non-owner occupied general purpose		163,956		1,908		1,779		-		167,643
Non-owner occupied special purpose		88,468		-		3,919		-		92,387
Retail Properties		30,432		1,490		2,430		-		34,352
Farm		12,615		-		1,272		-		13,887
Real estate - construction
Homebuilder		2,604		-		-		-		2,604
Land		1,137		-		-		-		1,137
Commercial speculative		2,117		-		83		-		2,200
All other		13,865		-		-		-		13,865
Real estate - residential
Investor		125,548		-		1,136		-		126,684
Owner occupied		111,713		-		7,079		-		118,792
Revolving and junior liens		102,476		-		3,055		-		105,531
Consumer		4,215		-		1		-		4,216
All other		11,650		-		-		-		11,650
Total	$	1,101,886	$	6,606	$	25,223	$	-	$	1,133,715


December 31, 2014			Special
	Pass		Mention		Substandard 1		Doubtful		Total
Commercial	$	118,845	$	3,948	$	4,403	$	-	$	127,196
Real estate - commercial
Owner occupied general purpose		124,936		253		7,476		-		132,665
Owner occupied special purpose		154,225		11,607		3,483		-		169,315
Non-owner occupied general purpose		148,212		3,235		6,788		-		158,235
Non-owner occupied special purpose		78,957		8,097		1,423		-		88,477
Retail Properties		36,779		1,001		-		-		37,780
Farm		14,157		-		-		-		14,157
Real estate - construction
Homebuilder		3,204		-		-		-		3,204
Land		1,658		-		-		-		1,658
Commercial speculative		9,947		-		3,484		-		13,431
All other		25,941		-		561		-		26,502
Real estate - residential
Investor		134,952		-		2,263		-		137,215
Owner occupied		109,085		-		7,343		-		116,428
Revolving and junior liens		112,647		188		3,713		-		116,548
Consumer		3,503		-		1		-		3,504
All other		13,017		-		-		-		13,017
Total	$	1,090,065	$	28,329	$	40,938	$	-	$	1,159,332

The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans

Schedule of impaired loans by class of loan


	December 31, 2015						December 31, 2014
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded
Commercial	$	70	$	149	$	-	$	1,500	$	2,114	$	-
Commercial real estate
Owner occupied general purpose		2,314		3,004		-		7,125		7,870		-
Owner occupied special purpose		763		871		-		1,798		1,941		-
Non-owner occupied general purpose		1,047		1,065		-		4,831		5,653		-
Non-owner occupied special purpose		-		-		-		1,423		1,930		-
Retail properties		-		-		-		-		-		-
Farm		1,272		1,338		-		-		-		-
Construction
Homebuilder		-		-		-		1,791		1,791		-
Land		-		-		-		-		-		-
Commercial speculative		83		86		-		-		-		-
All other		-		-		-		291		323		-
Residential
Investor		1,906		2,259		-		2,595		3,024		-
Owner occupied		10,539		11,999		-		11,419		12,816		-
Revolving and junior liens		2,731		3,947		-		2,238		3,541		-
Consumer		-		-		-		-		-		-
Total impaired loans with no recorded allowance		20,725		24,718		-		35,011		41,003		-


With an allowance recorded
Commercial		3		8		3		-		-		-
Commercial real estate
Owner occupied general purpose		-		-		-		-		-		-
Owner occupied special purpose		-		-		-		-		-		-
Non-owner occupied general purpose		-		-		-		76		76		21
Non-owner occupied special purpose		-		-		-		-		-		-
Retail properties		-		-		-		-		-		-
Farm		-		-		-		-		-		-
Construction
Homebuilder		-		-		-		-		-		-
Land		-		-		-		-		-		-
Commercial speculative		-		-		-		-		-		-
All other		-		-		-		270		306		98
Residential
Investor		-		-		-		135		145		24
Owner occupied		112		112		31		23		65		38
Revolving and junior liens		46		46		-		371		405		97
Consumer		-		-		-		-		-		-
Total impaired loans with a recorded allowance		161		166		34		875		997		278
Total impaired loans	$	20,886	$	24,884	$	34	$	35,886	$	42,000	$	278

Average recorded investment and interest income recognized on impaired loans by class of loan for the years ending December 31 were as follows:


	Year to date				Year to date				Year to date
	December 31, 2015				December 31, 2014				December 31, 2013
	Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized		Investment		Recognized
With no related allowance recorded
Commercial	$	785	$	-	$	764	$	-	$	112	$	-
Commercial real estate
Owner occupied general purpose		4,720		82		4,834		104		3,508		3
Owner occupied special purpose		1,280		-		2,584		45		5,275		-
Non-owner occupied general purpose		2,939		3		5,130		-		9,892		75
Non-owner occupied special purpose		712		-		1,042		-		569		-
Retail properties		-		-		1,572		-		5,962		-
Farm		636		-		-		-		1,259		-
Construction
Homebuilder		895		-		1,903		82		3,085		97
Land		-		-		105		-		232		-
Commercial speculative		42		-		369		-		1,501		-
All other		145		-		147		-		41		-
Residential
Investor		2,251		51		4,290		43		5,576		-
Owner occupied		10,979		160		10,299		187		9,284		209
Revolving and junior liens		2,484		7		2,004		6		1,570		6
Consumer		-		-		-		-		11		-
Total impaired loans with no recorded allowance		27,868		303		35,043		467		47,877		390


With an allowance recorded
Commercial		2		-		-		-		283		-
Commercial real estate
Owner occupied general purpose		-		-		365		-		872		-
Owner occupied special purpose		-		-		2,150		-		4,277		-
Non-owner occupied general purpose		38		-		508		-		1,859		-
Non-owner occupied special purpose		-		-		-		-		-		-
Retail properties		-		-		-		-		876		-
Farm		-		-		-		-		-		-
Construction
Homebuilder		-		-		84		-		97		-
Land		-		-		-		-		-		-
Commercial speculative		-		-		587		-		2,748		-
All other		135		-		353		-		458		-
Residential
Investor		67		-		410		-		2,713		-
Owner occupied		68		-		794		1		3,737		-
Revolving and junior liens		208		3		934		-		1,981		-
Consumer		-		-		-		-		-		-
Total impaired loans with a recorded allowance		518		3		6,185		1		19,901		-
Total impaired loans	$	28,386	$	306	$	41,228	$	468	$	67,778	$	390

Schedule of TDRs modified during the period by type of modification


	TDR Modifications
	Twelve months ended December 31, 2015
	# of	Pre-modification		Post-modification
	contracts	recorded investment		recorded investment
Troubled debt restructurings
Real estate - residential
Owner occupied
Other1	2	$	256	$	255
Revolving and junior liens
HAMP3	5		193		153
Other1	3		378		347
	10	$	827	$	755


	TDR Modifications
	Twelve months ended December 31, 2014
	# of	Pre-modification		Post-modification
	contracts	recorded investment		recorded investment
Troubled debt restructurings
Real estate - commercial
Other1	2	$	1,320	$	1,106
Bifurcate2	1		675		357
Real estate - residential
Investor
Other1	2		237		221
Owner occupied
Other1	1		136		133
HAMP3	2		250		218
Deferral4	2		344		224
Revolving and junior liens
Other1	5		343		334
	15	$	3,305	$	2,593

Other: Change of terms from bankruptcy court

Bifurcate: Refers to an “A/B” restructure separated into two notes, charging off the entire B portion of the note.

HAMP: Home Affordable Modification Program

⁴

Deferral: Refers to the deferral of principal

Schedule of TDRs that subsequently defaulted


	TDR Default Activity			TDR Default Activity
	Twelve months ended December 31, 2015			Twelve months ended December 31, 2014
Troubled debt restructurings that	# of	Pre-modification outstanding		# of	Pre-modification outstanding
Subsequently Defaulted	contracts	recorded investment		contracts	recorded investment
Real estate - commercial
Owner occupied special purpose	-	$	-	-	$	-
Real estate - residential
Investor	-		-	-		-
Owner occupied	-		-	1		137
Revolving and junior liens	-		-	2		210
	-	$	-	3	$	347

Schedule of loans to principal officers, directors, and their affiliates, made in the ordinary course of business


	2015		2014
Beginning balance	$	7,793	$	6,414
New loans		864		41,810
Repayments and other reductions		(635)		(38,295)
Change in related party status		(6,235)		(2,136)
Ending balance	$	1,787	$	7,793