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LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended
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Dec. 31, 2015
Receivables [Abstract] |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 3. LOANS AND ALLOWANCE FOR CREDIT LOSSES The Company makes residential mortgage, commercial and consumer loans to customers primarily in Talbot County, Queen Anne’s County, Kent County, Caroline County and Dorchester County in Maryland and in Kent County, Delaware. The following table provides information about the principal classes of the loan portfolio at December 31, 2015 and 2014.
(Dollars in thousands) |  | 2015 |  | 2014 |
Construction |  | $ | 85,632 |  | $ | 69,157 |
Residential real estate |  |  | 307,063 |  |  | 273,336 |
Commercial real estate |  |  | 330,253 |  |  | 305,788 |
Commercial |  |  | 64,911 |  |  | 52,671 |
Consumer |  |  | 7,255 |  |  | 9,794 |
Total loans |  |  | 795,114 |  |  | 710,746 |
Allowance for credit losses |  |  | (8,316) |  |  | (7,695) |
Total loans, net |  | $ | 786,798 |  | $ | 703,051 |
In the normal course of banking business, loans are made to officers and directors and their affiliated interests. These loans are made on substantially the same terms and conditions as those prevailing at the time for comparable transactions with persons who are not related to the Company and are not considered to involve more than the normal risk of collectibility. As of December 31, 2015 and 2014, such loans outstanding, both direct and indirect (including guarantees), to directors, their associates and policy-making officers, totaled approximately $22.0 million and $18.7 million, respectively. During 2015 and 2014, loan additions were approximately $5.5 million and $1.8 million, respectively, and loan repayments were approximately $2.4 million and $6.2 million, respectively. In the normal course of banking business, risks related to specific loan categories are as follows: Construction loans – Construction loans generally finance the construction of residential real estate for builders and individuals for single family dwellings. In addition, the bank periodically finances the construction of commercial projects. Credit risk factors include the borrower’s ability to successfully complete the construction on time and within budget, changing market conditions which could affect the value and marketability of projects, changes in the borrower’s ability or willingness to repay the loan and potentially rising interest rates which can impact both the borrower’s ability to repay and the collateral value. Residential real estate – Residential real estate loans are typically made to consumers and are secured by residential real estate. Credit risk arises from the borrower’s continuing financial stability, which can be adversely impacted by job loss, divorce, illness, or personal bankruptcy, among other factors. Also impacting credit risk would be a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the real estate collateral. Commercial real estate – Commercial real estate loans consist of both loans secured by owner occupied properties and non-owner occupied where an established banking relationship exists and involves investment properties for warehouse, retail, and office space with a history of occupancy and cash flow. These loans are subject to adverse changes in the local economy and commercial real estate markets. Credit risk associated with owner occupied properties arises from the borrower’s financial stability and the ability of the borrower and the business to repay the loan. Non-owner occupied properties carry the risk of a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies which can adversely impact cash flow. Commercial – Commercial loans are secured or unsecured loans for business purposes. Loans are typically secured by accounts receivable, inventory, equipment and/or other assets of the business. Credit risk arises from the successful operation of the business which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy. Consumer – Consumer loans include home equity loans and lines, installment loans and personal lines of credit. Credit risk is similar to residential real estate loans above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. The following tables include impairment information relating to loans and the allowance for credit losses as of December 31, 2015 and 2014.
(Dollars in thousands) |  | Construction |  | Residential real estate |  | Commercial real estate |  | Commercial |  | Consumer |  | Unallocated |  | Total |
December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 11,598 |  | $ | 7,945 |  | $ | 7,762 |  | $ | 161 |  | $ | 122 |  | $ | - |  | $ | 27,588 |
Loans collectively evaluated for impairment |  |  | 74,034 |  |  | 299,118 |  |  | 322,491 |  |  | 64,750 |  |  | 7,133 |  |  | - |  |  | 767,526 |
Total loans |  | $ | 85,632 |  | $ | 307,063 |  | $ | 330,253 |  | $ | 64,911 |  | $ | 7,255 |  | $ | - |  | $ | 795,114 |
Allowance for credit losses allocated to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 619 |  | $ | 435 |  | $ | 340 |  | $ | - |  | $ | 7 |  | $ | - |  | $ | 1,401 |
Loans collectively evaluated for impairment |  |  | 1,027 |  |  | 1,746 |  |  | 2,659 |  |  | 558 |  |  | 149 |  |  | 776 |  |  | 6,915 |
Total allowance for credit losses |  | $ | 1,646 |  | $ | 2,181 |  | $ | 2,999 |  | $ | 558 |  | $ | 156 |  | $ | 776 |  | $ | 8,316 |
(Dollars in thousands) |  | Construction |  | Residential real estate |  | Commercial real estate |  | Commercial |  | Consumer |  | Unallocated |  | Total |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 10,067 |  | $ | 10,403 |  | $ | 9,359 |  | $ | 188 |  | $ | 124 |  | $ | - |  | $ | 30,141 |
Loans collectively evaluated for impairment |  |  | 59,090 |  |  | 262,933 |  |  | 296,429 |  |  | 52,483 |  |  | 9,670 |  |  | - |  |  | 680,605 |
Total loans |  | $ | 69,157 |  | $ | 273,336 |  | $ | 305,788 |  | $ | 52,671 |  | $ | 9,794 |  | $ | - |  | $ | 710,746 |
Allowance for credit losses allocated to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 41 |  | $ | 1,099 |  | $ | 129 |  | $ | 1 |  | $ | 3 |  | $ | - |  | $ | 1,273 |
Loans collectively evaluated for impairment |  |  | 1,262 |  |  | 1,735 |  |  | 2,250 |  |  | 447 |  |  | 226 |  |  | 502 |  |  | 6,422 |
Total allowance for credit losses |  | $ | 1,303 |  | $ | 2,834 |  | $ | 2,379 |  | $ | 448 |  | $ | 229 |  | $ | 502 |  | $ | 7,695 |
The following tables provide information on impaired loans and any related allowance by loan class as of December 31, 2015 and 2014. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken.
(Dollars in thousands) |  | Unpaid principal balance |  | Recorded investment with no allowance |  | Recorded investment with an allowance |  | Related allowance |  | Average recorded investment |  | Interest income recognized |
December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired nonaccrual loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 11,850 |  | $ | 4,647 |  | $ | 2,882 |  | $ | 588 |  | $ | 8,176 |  | $ | - |
Residential real estate |  |  | 2,563 |  |  | 1,773 |  |  | 487 |  |  | 208 |  |  | 2,767 |  |  | - |
Commercial real estate |  |  | 2,988 |  |  | 1,813 |  |  | 209 |  |  | 9 |  |  | 2,159 |  |  | - |
Commercial |  |  | 175 |  |  | 161 |  |  | - |  |  | - |  |  | 126 |  |  | - |
Consumer |  |  | 128 |  |  | 98 |  |  | 23 |  |  | 7 |  |  | 122 |  |  | - |
Total |  |  | 17,704 |  |  | 8,492 |  |  | 3,601 |  |  | 812 |  |  | 13,350 |  |  | - |
Impaired accruing TDRs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 4,069 |  |  | 3,266 |  |  | 803 |  |  | 31 |  |  | 4,080 |  |  | 84 |
Residential real estate |  |  | 5,686 |  |  | 2,380 |  |  | 3,306 |  |  | 227 |  |  | 6,947 |  |  | 312 |
Commercial real estate |  |  | 5,740 |  |  | 1,702 |  |  | 4,038 |  |  | 331 |  |  | 5,943 |  |  | 254 |
Commercial |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 27 |  |  | 1 |
Consumer |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Total |  |  | 15,495 |  |  | 7,348 |  |  | 8,147 |  |  | 589 |  |  | 16,997 |  |  | 651 |
Total impaired loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 15,919 |  |  | 7,913 |  |  | 3,685 |  |  | 619 |  |  | 12,256 |  |  | 84 |
Residential real estate |  |  | 8,249 |  |  | 4,153 |  |  | 3,793 |  |  | 435 |  |  | 9,714 |  |  | 312 |
Commercial real estate |  |  | 8,728 |  |  | 3,515 |  |  | 4,247 |  |  | 340 |  |  | 8,102 |  |  | 254 |
Commercial |  |  | 175 |  |  | 161 |  |  | - |  |  | - |  |  | 153 |  |  | 1 |
Consumer |  |  | 128 |  |  | 98 |  |  | 23 |  |  | 7 |  |  | 122 |  |  | - |
Total |  | $ | 33,199 |  | $ | 15,840 |  | $ | 11,748 |  | $ | 1,401 |  | $ | 30,347 |  | $ | 651 |
(Dollars in thousands) |  | Unpaid principal balance |  | Recorded investment with no allowance |  | Recorded investment with an allowance |  | Related allowance |  | Average recorded investment |  | Interest income recognized |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired nonaccrual loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 9,277 |  | $ | 6,045 |  | $ | - |  | $ | - |  | $ | 7,739 |  | $ | - |
Residential real estate |  |  | 4,664 |  |  | 1,053 |  |  | 2,982 |  |  | 799 |  |  | 3,322 |  |  | - |
Commercial real estate |  |  | 4,703 |  |  | 2,842 |  |  | 280 |  |  | 100 |  |  | 3,889 |  |  | - |
Commercial |  |  | 1,372 |  |  | 136 |  |  | 5 |  |  | 1 |  |  | 437 |  |  | - |
Consumer |  |  | 129 |  |  | 99 |  |  | 25 |  |  | 3 |  |  | 79 |  |  | - |
Total |  |  | 20,145 |  |  | 10,175 |  |  | 3,292 |  |  | 903 |  |  | 15,466 |  |  | - |
Impaired accruing TDRs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 4,022 |  |  | 3,196 |  |  | 826 |  |  | 41 |  |  | 2,743 |  |  | 68 |
Residential real estate |  |  | 6,368 |  |  | 668 |  |  | 5,700 |  |  | 300 |  |  | 15,123 |  |  | 372 |
Commercial real estate |  |  | 6,237 |  |  | 4,774 |  |  | 1,463 |  |  | 29 |  |  | 6,574 |  |  | 254 |
Commercial |  |  | 47 |  |  | 47 |  |  | - |  |  | - |  |  | 55 |  |  | 2 |
Consumer |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Total |  |  | 16,674 |  |  | 8,685 |  |  | 7,989 |  |  | 370 |  |  | 24,495 |  |  | 696 |
Total impaired loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 13,299 |  |  | 9,241 |  |  | 826 |  |  | 41 |  |  | 10,482 |  |  | 68 |
Residential real estate |  |  | 11,032 |  |  | 1,721 |  |  | 8,682 |  |  | 1,099 |  |  | 18,445 |  |  | 372 |
Commercial real estate |  |  | 10,940 |  |  | 7,616 |  |  | 1,743 |  |  | 129 |  |  | 10,463 |  |  | 254 |
Commercial |  |  | 1,419 |  |  | 183 |  |  | 5 |  |  | 1 |  |  | 492 |  |  | 2 |
Consumer |  |  | 129 |  |  | 99 |  |  | 25 |  |  | 3 |  |  | 79 |  |  | - |
Total |  | $ | 36,819 |  | $ | 18,860 |  | $ | 11,281 |  | $ | 1,273 |  | $ | 39,961 |  | $ | 696 |
The following tables provide a roll-forward for troubled debt restructurings as of December 31, 2015 and December 31, 2014.
(Dollars in thousands) |  | 1/1/15 TDR Balance |  | New TDRs |  | Disbursements (Payments) |  | Charge offs |  | Reclassification/ Transfers In/(Out) |  | Payoffs |  | 12/31/15 TDR Balance |  | Related Allowance |
For the year ended 12/31/2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accruing TDRs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 4,022 |  | $ | - |  | $ | (95) |  | $ | - |  | $ | 142 |  | $ | - |  | $ | 4,069 |  | $ | 31 |
Residential Real Estate |  |  | 6,368 |  |  | 1,837 |  |  | (1,195) |  |  | - |  |  | (1,324) |  |  | - |  |  | 5,686 |  |  | 227 |
Commercial Real Estate |  |  | 6,237 |  |  | - |  |  | (497) |  |  | - |  |  | - |  |  | - |  |  | 5,740 |  |  | 331 |
Commercial |  |  | 47 |  |  | - |  |  | (6) |  |  | - |  |  | (41) |  |  | - |  |  | - |  |  | - |
Consumer |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Total |  | $ | 16,674 |  | $ | 1,837 |  | $ | (1,793) |  | $ | - |  | $ | (1,223) |  | $ | - |  | $ | 15,495 |  | $ | 589 |
Nonaccrual TDRs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 3,321 |  | $ | - |  | $ | (214) |  | $ | (1,058) |  | $ | 2,911 |  | $ | - |  | $ | 4,960 |  | $ | 588 |
Residential Real Estate |  |  | 3,382 |  |  | - |  |  | (26) |  |  | - |  |  | (2,911) |  |  | - |  |  | 445 |  |  | 141 |
Commercial Real Estate |  |  | 346 |  |  | - |  |  | (4) |  |  | (40) |  |  | (302) |  |  | - |  |  | - |  |  | - |
Commercial |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Consumer |  |  | 25 |  |  | - |  |  | (2) |  |  | - |  |  | - |  |  | - |  |  | 23 |  |  | 7 |
Total |  | $ | 7,074 |  | $ | - |  | $ | (246) |  | $ | (1,098) |  | $ | (302) |  | $ | - |  | $ | 5,428 |  | $ | 736 |
Total TDRs |  | $ | 23,748 |  | $ | 1,837 |  | $ | (2,039) |  | $ | (1,098) |  | $ | *(1,525) |  | $ | - |  | $ | 20,923 |  | $ | 1,325 |
(Dollars in thousands) |  | 1/1/14 TDR Balance |  | New TDRs |  | Disbursements (Payments) |  | Charge offs |  | Reclassification/ Transfers In/(Out) |  | Payoffs |  | 12/31/14 TDR Balance |  | Related Allowance |
For the year ended 12/31/2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accruing TDRs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 1,620 |  | $ | - |  | $ | (186) |  | $ | (538) |  | $ | 3,396 |  | $ | (270) |  | $ | 4,022 |  | $ | 41 |
Residential Real Estate |  |  | 14,582 |  |  | - |  |  | (1,150) |  |  | (3,614) |  |  | (3,136) |  |  | (314) |  |  | 6,368 |  |  | 300 |
Commercial Real Estate |  |  | 9,791 |  |  | - |  |  | (99) |  |  | (549) |  |  | (1,805) |  |  | (1,101) |  |  | 6,237 |  |  | 29 |
Commercial |  |  | 95 |  |  | - |  |  | (24) |  |  | - |  |  | - |  |  | (24) |  |  | 47 |  |  | - |
Consumer |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Total |  | $ | 26,088 |  | $ | - |  | $ | (1,459) |  | $ | (4,701) |  | $ | (1,545) |  | $ | (1,709) |  | $ | 16,674 |  | $ | 370 |
Nonaccrual TDRs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 3,561 |  | $ | - |  | $ | (12) |  | $ | (235) |  | $ | 7 |  | $ | - |  | $ | 3,321 |  | $ | - |
Residential Real Estate |  |  | 1,884 |  |  | - |  |  | (50) |  |  | (203) |  |  | 1,874 |  |  | (123) |  |  | 3,382 |  |  | 724 |
Commercial Real Estate |  |  | 842 |  |  | - |  |  | (95) |  |  | (65) |  |  | (336) |  |  | - |  |  | 346 |  |  | 100 |
Commercial |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Consumer |  |  | 26 |  |  | - |  |  | (1) |  |  | - |  |  | - |  |  | - |  |  | 25 |  |  | 3 |
Total |  | $ | 6,313 |  | $ | - |  | $ | (158) |  | $ | (503) |  | $ | 1,545 |  | $ | (123) |  | $ | 7,074 |  | $ | 827 |
Total TDRs |  | $ | 32,401 |  | $ | - |  | $ | (1,617) |  | $ | (5,204) |  | $ | - |  | $ | (1,832) |  | $ | 23,748 |  | $ | 1,197 |
* $1.3 million in subsequently modified TDRs were transferred from accruing TDR classification to accrual status during the third quarter of 2015, thus removing the TDR designation. In accordance with ASC 310-40-50-2 “Creditor Disclosure of Troubled Debt Restructurings,” an impaired loan that has been subsequently restructured in a troubled debt restructuring involving modification of terms need not be included in the disclosures in years after the restructuring if both of the following conditions exist: a) the subsequent restructuring agreement specifies an interest rate equal to or greater than the rate that the creditor was willing to accept at the time of the restructuring for a new loan with comparable risk; and b) the loan is not impaired based on the terms specified by the restructuring agreement. During the period ended December 31, 2015, three loans totaling $1.3 million met the conditions stipulated in ASC 310-40-50-2, and after a careful evaluation of well supported documentation by management, these loans were upgraded to accrual status. The following tables provide information on loans that were modified and considered TDRs during 2015 and 2014.
(Dollars in thousands) |  | Number of contracts |  | Premodification outstanding recorded investment |  | Postmodification outstanding recorded investment |  | Related allowance |
TDRs: |  |  |  |  |  |  |  |  |  |  |  |  |
For the year ended December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | - |  | $ | - |  | $ | - |  | $ | - |
Residential real estate |  |  | 10 |  |  | 1,835 |  |  | 1,837 |  |  | 19 |
Commercial real estate |  |  | 1 |  |  | 2,262 |  |  | 2,347 |  |  | - |
Commercial |  |  | - |  |  | - |  |  | - |  |  | - |
Consumer |  |  | - |  |  | - |  |  | - |  |  | - |
Total |  |  | 11 |  | $ | 4,097 |  | $ | 4,184 |  | $ | 19 |
For the year ended December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | - |  | $ | - |  | $ | - |  | $ | - |
Residential real estate |  |  | - |  |  | - |  |  | - |  |  | - |
Commercial real estate |  |  | - |  |  | - |  |  | - |  |  | - |
Commercial |  |  | - |  |  | - |  |  | - |  |  | - |
Consumer |  |  | - |  |  | - |  |  | - |  |  | - |
Total |  |  | - |  | $ | - |  | $ | - |  | $ | - |
The following tables provide information on TDRs that defaulted during 2015 and 2014. Generally, a loan is considered in default when principal or interest is past due 90 days or more.
(Dollars in thousands) |  | Number of contracts |  | Recorded investment |  | Related allowance |
TDRs that subsequently defaulted: |  |  |  |  |  |  |  |  |  |
For the year ended December 31, 2015 |  |  |  |  |  |  |  |  |  |
Construction |  |  | - |  | $ | - |  | $ | - |
Residential real estate |  |  | - |  |  | - |  |  | - |
Commercial real estate |  |  | 2 |  |  | 279 |  |  | - |
Commercial |  |  | - |  |  | - |  |  | - |
Consumer |  |  | - |  |  | - |  |  | - |
Total |  |  | 2 |  | $ | 279 |  | $ | - |
TDRs that subsequently defaulted: |  |  |  |  |  |  |  |  |  |
For the year ended December 31, 2014 |  |  |  |  |  |  |  |  |  |
Construction |  |  | - |  | $ | - |  | $ | - |
Residential real estate |  |  | - |  |  | - |  |  | - |
Commercial real estate |  |  | - |  |  | - |  |  | - |
Commercial |  |  | - |  |  | - |  |  | - |
Consumer |  |  | - |  |  | - |  |  | - |
Total |  |  | - |  | $ | - |  | $ | - |
Management uses risk ratings as part of its monitoring of the credit quality in the Company’s loan portfolio. Loans that are identified as special mention, substandard or doubtful are adversely rated. They are assigned higher risk ratings than favorably rated loans in the calculation of the formula portion of the allowance for credit losses. At December 31, 2015, there were no nonaccrual loans classified as special mention or doubtful and $12.1 million of nonaccrual loans were identified as substandard. The comparable amounts at December 31, 2014 were special mention $0, substandard $13.4 million and doubtful $89 thousand, respectively.
The following tables provide information on loan risk ratings as of December 31, 2015 and 2014.
(Dollars in thousands) |  | Pass/Performing |  | Special mention |  | Substandard |  | Doubtful |  | Total |
December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 70,214 |  | $ | 3,903 |  | $ | 11,515 |  | $ | - |  | $ | 85,632 |
Residential real estate |  |  | 290,857 |  |  | 8,837 |  |  | 7,369 |  |  | - |  |  | 307,063 |
Commercial real estate |  |  | 302,438 |  |  | 18,699 |  |  | 9,116 |  |  | - |  |  | 330,253 |
Commercial |  |  | 63,628 |  |  | 1,075 |  |  | 208 |  |  | - |  |  | 64,911 |
Consumer |  |  | 7,107 |  |  | 26 |  |  | 122 |  |  | - |  |  | 7,255 |
Total |  | $ | 734,244 |  | $ | 32,540 |  | $ | 28,330 |  | $ | - |  | $ | 795,114 |
(Dollars in thousands) |  | Pass/Performing |  | Special mention |  | Substandard |  | Doubtful |  | Total |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 52,241 |  | $ | 5,643 |  | $ | 11,273 |  | $ | - |  | $ | 69,157 |
Residential real estate |  |  | 252,643 |  |  | 6,675 |  |  | 14,018 |  |  | - |  |  | 273,336 |
Commercial real estate |  |  | 275,573 |  |  | 20,040 |  |  | 10,175 |  |  | - |  |  | 305,788 |
Commercial |  |  | 50,583 |  |  | 1,885 |  |  | 114 |  |  | 89 |  |  | 52,671 |
Consumer |  |  | 9,658 |  |  | 13 |  |  | 123 |  |  | - |  |  | 9,794 |
Total |  | $ | 640,698 |  | $ | 34,256 |  | $ | 35,703 |  | $ | 89 |  | $ | 710,746 |
The following tables provide information on the aging of the loan portfolio as of December 31, 2015 and 2014.
|  | Accruing |  |  |  |  |  |  |
(Dollars in thousands) |  | Current |  | 30-59 days past due |  | 60-89 days past due |  | 90 days or more past due |  | Total past due |  | Non- accrual |  | Total |
December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 78,082 |  | $ | 21 |  | $ | - |  | $ | - |  | $ | 21 |  | $ | 7,529 |  | $ | 85,632 |
Residential real estate |  |  | 300,563 |  |  | 2,139 |  |  | 2,102 |  |  | - |  |  | 4,241 |  |  | 2,259 |  |  | 307,063 |
Commercial real estate |  |  | 327,370 |  |  | - |  |  | 861 |  |  | - |  |  | 861 |  |  | 2,022 |  |  | 330,253 |
Commercial |  |  | 64,670 |  |  | 49 |  |  | 31 |  |  | - |  |  | 80 |  |  | 161 |  |  | 64,911 |
Consumer |  |  | 7,107 |  |  | 13 |  |  | 6 |  |  | 7 |  |  | 26 |  |  | 122 |  |  | 7,255 |
Total |  | $ | 777,792 |  | $ | 2,222 |  | $ | 3,000 |  | $ | 7 |  | $ | 5,229 |  | $ | 12,093 |  | $ | 795,114 |
Percent of total loans |  |  | 97.8 | % |  | 0.3 | % |  | 0.4 | % |  | - | % |  | 0.7 | % |  | 1.5 | % |  | 100 | %
|  | Accruing |  |  |  |  |  |  |
(Dollars in thousands) |  | Current |  | 30-59 days past due |  | 60-89 days past due |  | 90 days or more past due |  | Total past due |  | Non- accrual |  | Total |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | $ | 61,325 |  | $ | 1,786 |  | $ | - |  | $ | - |  | $ | 1,786 |  | $ | 6,046 |  | $ | 69,157 |
Residential real estate |  |  | 263,165 |  |  | 3,351 |  |  | 2,702 |  |  | 83 |  |  | 6,136 |  |  | 4,035 |  |  | 273,336 |
Commercial real estate |  |  | 301,695 |  |  | 459 |  |  | 513 |  |  | - |  |  | 972 |  |  | 3,121 |  |  | 305,788 |
Commercial |  |  | 52,352 |  |  | 47 |  |  | 131 |  |  | - |  |  | 178 |  |  | 141 |  |  | 52,671 |
Consumer |  |  | 9,619 |  |  | 11 |  |  | 37 |  |  | 4 |  |  | 52 |  |  | 123 |  |  | 9,794 |
Total |  | $ | 688,156 |  | $ | 5,654 |  | $ | 3,383 |  | $ | 87 |  | $ | 9,124 |  | $ | 13,466 |  | $ | 710,746 |
Percent of total loans |  |  | 96.8 | % |  | 0.8 | % |  | 0.5 | % |  | - | % |  | 1.3 | % |  | 1.9 | % |  | 100 | %
The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for 2015 and 2014. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes.
(Dollars in thousands) |  | Construction |  | Residential real estate |  | Commercial real estate |  | Commercial |  | Consumer |  | Unallocated |  | Total |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 1,303 |  | $ | 2,834 |  | $ | 2,379 |  | $ | 448 |  | $ | 229 |  | $ | 502 |  | $ | 7,695 |
Charge-offs |  |  | (1,058) |  |  | (283) |  |  | (920) |  |  | (396) |  |  | (67) |  |  | - |  |  | (2,724) |
Recoveries |  |  | 125 |  |  | 398 |  |  | 379 |  |  | 319 |  |  | 49 |  |  | - |  |  | 1,270 |
Net charge-offs |  |  | (933) |  |  | 115 |  |  | (541) |  |  | (77) |  |  | (18) |  |  | - |  |  | (1,454) |
Provision |  |  | 1,276 |  |  | (768) |  |  | 1,161 |  |  | 187 |  |  | (55) |  |  | 274 |  |  | 2,075 |
Ending balance |  | $ | 1,646 |  | $ | 2,181 |  | $ | 2,999 |  | $ | 558 |  | $ | 156 |  | $ | 776 |  | $ | 8,316 |
(Dollars in thousands) |  | Construction |  | Residential real estate |  | Commercial real estate |  | Commercial |  | Consumer |  | Unallocated |  | Total |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 1,960 |  | $ | 3,854 |  | $ | 3,029 |  | $ | 1,266 |  | $ | 243 |  | $ | 373 |  | $ | 10,725 |
Charge-offs |  |  | (725) |  |  | (2,407) |  |  | (1,648) |  |  | (2,389) |  |  | (163) |  |  | - |  |  | (7,332) |
Recoveries |  |  | 149 |  |  | 376 |  |  | 58 |  |  | 341 |  |  | 28 |  |  | - |  |  | 952 |
Net charge-offs |  |  | (576) |  |  | (2,031) |  |  | (1,590) |  |  | (2,048) |  |  | (135) |  |  | - |  |  | (6,380) |
Provision |  |  | (81) |  |  | 1,011 |  |  | 940 |  |  | 1,230 |  |  | 121 |  |  | 129 |  |  | 3,350 |
Ending balance |  | $ | 1,303 |  | $ | 2,834 |  | $ | 2,379 |  | $ | 448 |  | $ | 229 |  | $ | 502 |  | $ | 7,695 |
Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $581 thousand and $54 thousand as of December 31, 2015 and 2014.

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