Loans (Tables)

12 Months Ended

Dec. 31, 2015

Loans and Leases Receivable Disclosure [Abstract]

The following table shows the composition of the Company's loan portfolio as of December 31, 2015 and 2014:



	December 31, 2015				December 31, 2014
Commercial
Real estate	$	269,462,000	27.3	%	$	242,311,000	26.4	%
Construction	24,881,000		2.5	%	30,932,000		3.4	%
Other	128,341,000		13.0	%	104,531,000		11.4	%
Municipal	19,751,000		2.0	%	20,424,000		2.2	%
Residential
Term	403,030,000		40.7	%	384,032,000		41.9	%
Construction	8,451,000		0.9	%	12,160,000		1.3	%
Home equity line of credit	110,202,000		11.1	%	103,521,000		11.3	%
Consumer	24,520,000		2.5	%	19,653,000		2.1	%
Total loans	$	988,638,000	100.0	%	$	917,564,000	100.0	%

Loans to Directors, Officers and Employees which exceed $60,000

A summary of loans to directors and executive officers is as follows:



For the years ended December 31,	2015			2014
Balance at beginning of year	$	14,856,000		$	14,884,000
New loans	7,382,000			8,932,000
Repayments	(1,837,000		)	(8,960,000		)
Balance at end of year	$	20,401,000		$	14,856,000

Past Due Loans Aging

Information on the past-due status of loans as of December 31, 2015, is presented in the following table:



	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate	$	603,000	$	—	$	281,000	$	884,000	$	268,578,000	$	269,462,000	$	—
Construction	35,000		—		238,000		273,000		24,608,000		24,881,000		—
Other	303,000		—		25,000		328,000		128,013,000		128,341,000		25,000
Municipal	—		—		—		—		19,751,000		19,751,000		—
Residential
Term	450,000		2,098,000		2,639,000		5,187,000		397,843,000		403,030,000		100,000
Construction	368,000		—		—		368,000		8,083,000		8,451,000		—
Home equity line of credit	261,000		255,000		592,000		1,108,000		109,094,000		110,202,000		—
Consumer	102,000		26,000		11,000		139,000		24,381,000		24,520,000		11,000
Total	$	2,122,000	$	2,379,000	$	3,786,000	$	8,287,000	$	980,351,000	$	988,638,000	$	136,000

Information on the past-due status of loans as of December 31, 2014, is presented in the following table:



	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate	$	24,000	$	75,000	$	761,000	$	860,000	$	241,451,000	$	242,311,000	$	—
Construction	—		41,000		208,000		249,000		30,683,000		30,932,000		—
Other	3,000		—		857,000		860,000		103,671,000		104,531,000		—
Municipal	—		—		—		—		20,424,000		20,424,000		—
Residential
Term	856,000		468,000		5,679,000		7,003,000		377,029,000		384,032,000		101,000
Construction	—		—		—		—		12,160,000		12,160,000		—
Home equity line of credit	622,000		720,000		780,000		2,122,000		101,399,000		103,521,000		—
Consumer	637,000		52,000		80,000		769,000		18,884,000		19,653,000		80,000
Total	$	2,142,000	$	1,356,000	$	8,365,000	$	11,863,000	$	905,701,000	$	917,564,000	$	181,000

Nonaccrual Loans

Information on nonaccrual loans as of December 31, 2015 and 2014 is presented in the following table:



As of December 31,	2015		2014
Commercial
Real estate	$	915,000	$	2,088,000
Construction	238,000		208,000
Other	66,000		935,000
Municipal	—		—
Residential
Term	5,260,000		6,421,000
Construction	—		—
Home equity line of credit	893,000		832,000
Consumer	—		26,000
Total	$	7,372,000	$	10,510,000

Impaired Loans

Information regarding impaired loans is as follows:



For the years ended December 31,	2015		2014		2013
Average investment in impaired loans	$	32,698,000	$	38,404,000	$	45,722,000
Interest income recognized on impaired loans, all on cash basis	1,218,000		1,465,000		1,750,000



As of December 31,	2015			2014
Balance of impaired loans	$	29,531,000		$	35,862,000
Less portion for which no allowance for loan losses is allocated	(20,889,000		)	(26,313,000		)
Portion of impaired loan balance for which an allowance for loan losses is allocated	$	8,642,000		$	9,549,000
Portion of allowance for loan losses allocated to the impaired loan balance	$	754,000		$	1,803,000

Impaired Loans by class of financing receivable

A breakdown of impaired loans by category as of December 31, 2015, is presented in the following table:



	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Recognized Interest Income
With No Related Allowance
Commercial
Real estate	$	7,173,000	$	7,496,000	$	—	$	8,990,000	$	301,000
Construction	30,000		30,000		—		3,000		1,000
Other	1,163,000		1,210,000		—		1,893,000		76,000
Municipal	—		—		—		—		—
Residential
Term	11,122,000		12,157,000		—		10,480,000		415,000
Construction	—		—		—		—		—
Home equity line of credit	1,401,000		2,054,000		—		1,400,000		43,000
Consumer	—		—		—		42,000		3,000
	$	20,889,000	$	22,947,000	$	—	$	22,808,000	$	839,000
With an Allowance Recorded
Commercial
Real estate	$	3,544,000	$	3,627,000	$	89,000	$	3,066,000	$	149,000
Construction	996,000		996,000		302,000		1,153,000		44,000
Other	71,000		77,000		8,000		256,000		5,000
Municipal	—		—		—		—		—
Residential
Term	3,966,000		4,193,000		326,000		5,228,000		180,000
Construction	—		—		—		—		—
Home equity line of credit	65,000		66,000		29,000		187,000		3,000
Consumer	—		—		—		—		—
	$	8,642,000	$	8,959,000	$	754,000	$	9,890,000	$	381,000
Total
Commercial
Real estate	$	10,717,000	$	11,123,000	$	89,000	$	12,056,000	$	450,000
Construction	1,026,000		1,026,000		302,000		1,156,000		45,000
Other	1,234,000		1,287,000		8,000		2,149,000		80,000
Municipal	—		—		—		—		—
Residential
Term	15,088,000		16,350,000		326,000		15,708,000		595,000
Construction	—		—		—		—		—
Home equity line of credit	1,466,000		2,120,000		29,000		1,587,000		45,000
Consumer	—		—		—		42,000		3,000
	$	29,531,000	$	31,906,000	$	754,000	$	32,698,000	$	1,218,000

Substantially all interest income recognized on impaired loans for all classes of financing receivables was recognized on a cash basis as received.

A breakdown of impaired loans by category as of December 31, 2014, is presented in the following table:



	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Recognized Interest Income
With No Related Allowance
Commercial
Real estate	$	11,687,000	$	12,423,000	$	—	$	11,080,000	$	488,000
Construction	—		—		—		30,000		—
Other	2,616,000		3,407,000		—		3,853,000		156,000
Municipal	—		—		—		—		—
Residential
Term	10,820,000		11,824,000		—		10,505,000		402,000
Construction	—		—		—		—		—
Home equity line of credit	1,164,000		1,395,000		—		1,447,000		29,000
Consumer	26,000		28,000		—		11,000		3,000
	$	26,313,000	$	29,077,000	$	—	$	26,926,000	$	1,078,000
With an Allowance Recorded
Commercial
Real estate	$	1,617,000	$	1,789,000	$	346,000	$	3,040,000	$	62,000
Construction	1,380,000		1,380,000		413,000		1,279,000		56,000
Other	326,000		338,000		129,000		1,103,000		13,000
Municipal	—		—		—		—		—
Residential
Term	5,303,000		5,513,000		519,000		5,738,000		239,000
Construction	—		—		—		—		—
Home equity line of credit	923,000		929,000		396,000		318,000		17,000
Consumer	—		—		—		—		—
	$	9,549,000	$	9,949,000	$	1,803,000	$	11,478,000	$	387,000
Total
Commercial
Real estate	$	13,304,000	$	14,212,000	$	346,000	$	14,120,000	$	550,000
Construction	1,380,000		1,380,000		413,000		1,309,000		56,000
Other	2,942,000		3,745,000		129,000		4,956,000		169,000
Municipal	—		—		—		—		—
Residential
Term	16,123,000		17,337,000		519,000		16,243,000		641,000
Construction	—		—		—		—		—
Home equity line of credit	2,087,000		2,324,000		396,000		1,765,000		46,000
Consumer	26,000		28,000		—		11,000		3,000
	$	35,862,000	$	39,026,000	$	1,803,000	$	38,404,000	$	1,465,000

A breakdown of impaired loans by category as of December 31, 2013, is presented in the following table:



	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Recognized Interest Income
With No Related Allowance
Commercial
Real estate	$	11,813,000	$	12,419,000	$	—	$	11,100,000	$	495,000
Construction	—		—		—		202,000		—
Other	5,617,000		7,309,000		—		4,265,000		322,000
Municipal	—		—		—		—		—
Residential
Term	13,432,000		14,600,000		—		14,396,000		511,000
Construction	—		—		—		—		—
Home equity line of credit	1,555,000		1,791,000		—		1,578,000		32,000
Consumer	—		—		—		—		—
	$	32,417,000	$	36,119,000	$	—	$	31,541,000	$	1,360,000
With an Allowance Recorded
Commercial
Real estate	$	3,122,000	$	3,264,000	$	890,000	$	5,673,000	$	150,000
Construction	1,284,000		1,284,000		272,000		1,795,000		48,000
Other	1,081,000		1,132,000		841,000		1,633,000		28,000
Municipal	—		—		—		—		—
Residential
Term	4,354,000		4,516,000		404,000		4,982,000		162,000
Construction	—		—		—		—		—
Home equity line of credit	93,000		93,000		54,000		98,000		2,000
Consumer	—		—		—		—		—
	$	9,934,000	$	10,289,000	$	2,461,000	$	14,181,000	$	390,000
Total
Commercial
Real estate	$	14,935,000	$	15,683,000	$	890,000	$	16,773,000	$	645,000
Construction	1,284,000		1,284,000		272,000		1,997,000		48,000
Other	6,698,000		8,441,000		841,000		5,898,000		350,000
Municipal	—		—		—		—		—
Residential
Term	17,786,000		19,116,000		404,000		19,378,000		673,000
Construction	—		—		—		—		—
Home equity line of credit	1,648,000		1,884,000		54,000		1,676,000		34,000
Consumer	—		—		—		—		—
	$	42,351,000	$	46,408,000	$	2,461,000	$	45,722,000	$	1,750,000

Troubled Debt Restructurings on Financing Receivables

The following table shows TDRs by class and the specific reserve as of December 31, 2015:



	Number of Loans	Balance		Specific Reserves
Commercial
Real estate	15	$	10,350,000	$	85,000
Construction	1	788,000		94,000
Other	11	1,168,000		1,000
Municipal	—	—		—
Residential
Term	53	10,875,000		275,000
Construction	—	—		—
Home equity line of credit	4	742,000		—
Consumer	—	—		—
	84	$	23,923,000	$	455,000

The following table shows TDRs by class and the specific reserve as of December 31, 2014:



	Number of Loans	Balance		Specific Reserves
Commercial
Real estate	19	$	12,282,000	$	267,000
Construction	1	1,172,000		207,000
Other	15	2,007,000		—
Municipal	—	—		—
Residential
Term	54	10,932,000		373,000
Construction	—	—		—
Home equity line of credit	5	821,000		21,000
Consumer	—	—		—
	94	$	27,214,000	$	868,000

As of December 31, 2015, eight of the loans classified as TDRs with a total balance of $1,053,000 were more than 30 days past due. Of these loans, zero had been placed on TDR status in the previous 12 months. The following table shows past-due TDRs by class and the associated specific reserves included in the allowance for loan losses as of December 31, 2015:



	Number of Loans	Balance		Specific Reserves
Commercial
Real estate	—	$	—	$	—
Construction	—	—		—
Other	—	—		—
Municipal	—	—		—
Residential
Term	8	1,053,000		46,000
Construction	—	—		—
Home equity line of credit	—	—		—
Consumer	—	—		—
	8	$	1,053,000	$	46,000

As of December 31, 2014, 12 of the loans classified as TDRs with a total balance of $1,549,000 were more than 30 days past due. Of these loans, two loans with an outstanding balance of $238,000 had been placed on TDR status in the previous 12 months. The following table shows past-due TDRs by class and the associated specific reserves included in the allowance for loan losses as of December 31, 2014:



	Number of Loans	Balance		Specific Reserves
Commercial
Real estate	1	$	321,000	$	120,000
Construction	—	—		—
Other	1	2,000		—
Municipal	—	—		—
Residential
Term	8	1,000,000		36,000
Construction	—	—		—
Home equity line of credit	2	226,000		21,000
Consumer	—	—		—
	12	$	1,549,000	$	177,000

During the year ended December 31, 2015, two loans were placed on TDR status with a post-modification outstanding balance of $218,000. These were considered TDRs because concessions had been granted to borrowers experiencing financial difficulties. Concessions include reductions in interest rates, principal and/or interest forbearance, payment extensions, or combinations thereof. The following table shows loans placed on TDR status during the year ended December 31, 2015, by class of loan and the associated specific reserve included in the allowance for loan losses as of December 31, 2015:



	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Specific Reserves
Commercial
Real estate	—	$	—	$	—	$	—
Construction	—	—		—		—
Other	—	—		—		—
Municipal	—	—		—		—
Residential
Term	2	221,000		218,000		—
Construction	—	—		—		—
Home equity line of credit	—	—		—		—
Consumer	—	—		—		—
	2	$	221,000	$	218,000	$	—

During the year ended December 31, 2014, six loans were placed on TDR status with a post-modification balance of $826,000. These were considered to be TDRs because concessions had been granted to borrowers experiencing financial difficulties. Concessions include reductions in interest rates, principal and/or interest forbearance, payment extensions, or combinations thereof. The following table shows loans placed on TDR status in 2014 by type of loan and the associated specific reserve included in the allowance for loan losses as of December 31, 2014:



	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Specific Reserves
Commercial
Real estate	2	$	302,000	$	300,000	$	—
Construction	—	—		—		—
Other	—	—		—		—
Municipal	—	—		—		—
Residential
Term	4	627,000		526,000		12,000
Construction	—	—		—		—
Home equity line of credit	—	—		—		—
Consumer	—	—		—		—
	6	$	929,000	$	826,000	$	12,000