Loans and Related Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2016

The following table summarizes the primary segments of the loan portfolio at March 31, 2016 and December 31, 2015:



(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
March 31, 2016

Individually evaluated for impairment	$	14,734	$	4,639	$	1,065	$	5,256	$	0	$	25,694
Collectively evaluated for impairment	$	276,104	$	114,970	$	74,470	$	384,784	$	24,575	$	874,903
Total loans	$	290,838	$	119,609	$	75,535	$	390,040	$	24,575	$	900,597

December 31, 2015

Individually evaluated for impairment	$	14,646	$	4,496	$	1,076	$	4,590	$	0	$	24,808
Collectively evaluated for impairment	$	265,859	$	106,490	$	72,777	$	384,149	$	24,940	$	854,215
Total loans	$	280,505	$	110,986	$	73,853	$	388,739	$	24,940	$	879,023

Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating

The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention and Substandard within the internal risk rating system at March 31, 2016 and December 31, 2015:


(in thousands)	Pass		Special Mention		Substandard		Total
March 31, 2016
Commercial real estate
Non owner-occupied	$	142,739	$	11,488	$	16,065	$	170,292
All other CRE		100,743		2,531		17,272		120,546
Acquisition and development
1-4 family residential construction		19,915		0		700		20,615
All other A&D		93,652		72		5,270		98,994
Commercial and industrial		73,397		216		1,922		75,535
Residential mortgage
Residential mortgage - term		300,860		67		11,221		312,148
Residential mortgage - home equity		76,036		0		1,856		77,892
Consumer		24,482		0		93		24,575
Total	$	831,824	$	14,374	$	54,399	$	900,597

December 31, 2015
Commercial real estate
Non owner-occupied	$	140,378	$	11,574	$	7,378	$	159,330
All other CRE		103,811		1,184		16,180		121,175
Acquisition and development
1-4 family residential construction		15,011		0		700		15,711
All other A&D		89,963		74		5,238		95,275
Commercial and industrial		69,420		1,212		3,221		73,853
Residential mortgage
Residential mortgage - term		300,558		167		10,744		311,469
Residential mortgage - home equity		75,491		0		1,779		77,270
Consumer		24,881		0		59		24,940
Total	$	819,513	$	14,211	$	45,299	$	879,023

Loan Portfolio Summarized by the Past Due Status

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at March 31, 2016 and December 31, 2015:



(in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days+ Past Due		Total Past Due and Accruing		Non-Accrual		Total Loans
March 31, 2016
Commercial real estate
Non owner-occupied	$	168,803	$	397	$	0	$	0	$	397	$	1,092	$	170,292
All other CRE		110,387		51		0	0	0		51		10,108		120,546
Acquisition and development
1-4 family residential construction		20,615		0		0		0		0		0		20,615
All other A&D		96,913		0		0		107		107		1,974		98,994
Commercial and industrial		75,350		16		0		0		16		169		75,535
Residential mortgage
Residential mortgage - term		307,493		1,722		150		261		2,133		2,522		312,148
Residential mortgage - home equity		76,430		946		150		46		1,142		320		77,892
Consumer		24,295		212		39		29		280		0		24,575
Total	$	880,286	$	3,344	$	339	$	443	$	4,126	$	16,185	$	900,597

December 31, 2015
Commercial real estate
Non owner-occupied	$	157,217	$	634	$	171	$	0	$	805	$	1,308	$	159,330
All other CRE		110,022		1,179		0		0		1,179		9,974		121,175
Acquisition and development
1-4 family residential construction		15,711		0		0		0		0		0		15,711
All other A&D		93,284		0		174		0		174		1,817		95,275
Commercial and industrial		73,619		13		36		0		49		185		73,853
Residential mortgage
Residential mortgage - term		306,248		227		2,149		907		3,283		1,938		311,469
Residential mortgage - home equity		76,195		505		203		91		799		276		77,270
Consumer		24,604		224		85		27		336		0		24,940
Total	$	856,900	$	2,782	$	2,818	$	1,025	$	6,625	$	15,498	$	879,023

Primary Segments of the Allowance for Loan Loss

The following table summarizes the primary segments of the ALL, at March 31, 2016 and December 31, 2015 segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment:


(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer			Unallocated	Total
March 31, 2016

Individually evaluated for impairment	$	460	$	932	$	0	$	272	$	0	$	0	$	1,664
Collectively evaluated for impairment	$	2,840	$	2,815	$	758	$	3,487	$	192	$	500	$	10,592
Total ALL	$	3,300	$	3,747	$	758	$	3,759	$	192	$	500	$	12,256

December 31, 2015

Individually evaluated for impairment	$	144	$	867	$	16	$	130	$	0	$	0	$	1,157
Collectively evaluated for impairment	$	2,436	$	3,262	$	706	$	3,655	$	206	$	500	$	10,765
Total ALL	$	2,580	$	4,129	$	722	$	3,785	$	206	$	500	$	11,922

Impaired Loans and Related Interest Income by Loan Portfolio Class

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of March 31, 2016 and December 31, 2015:


		Impaired Loans with Specific Allowance				Impaired Loans with No Specific Allowance		Total Impaired Loans
(in thousands)		Recorded Investment		Related Allowances		Recorded Investment		Recorded Investment		Unpaid Principal Balance
March 31, 2016
Commercial real estate
Non owner-occupied	$	675	$	143	$	812	$	1,487	$	1,833
All other CRE		1,691		433		11,556		13,247		13,610
Acquisition and development
1-4 family residential construction		700		178		0		700		746
All other A&D		2,136		754		1,803		3,939		8,505
Commercial and industrial		0		0		1,065		1,065		3,332
Residential mortgage
Residential mortgage - term		650		138		4,286		4,936		5,474
Residential mortgage – home equity		56		18		264		320		341
Consumer		0		0		0		0		0
Total impaired loans	$	5,908	$	1,664	$	19,786	$	25,694	$	33,841

December 31, 2015
Commercial real estate
Non owner-occupied	$	676	$	144	$	1,031	$	1,707	$	1,842
All other CRE		0		0		12,939		12,939		13,302
Acquisition and development
1-4 family residential construction		700		178		0		700		746
All other A&D		1,979		689		1,817		3,796		8,362
Commercial and industrial		16		16		1,060		1,076		3,343
Residential mortgage
Residential mortgage - term		440		112		3,874		4,314		4,808
Residential mortgage – home equity		57		18		219		276		297
Consumer		0		0		0		0		0
Total impaired loans	$	3,868	$	1,157	$	20,940	$	24,808	$	32,700

Allowance for Loan Losses Summarized by Loan Portfolio Segments

The following tables present the activity in the ALL for the three-month periods ended March 31, 2016 and 2015:


(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer			Unallocated	Total
ALL balance at January 1, 2016	$	2,580	$	4,129	$	722	$	3,785	$	206	$	500	$	11,922
Charge-offs		(211)		0		(53)		(90)		(84)		0		(438)
Recoveries		0		100		30		32		42		0		204
Provision		931		(482)		59		32		28		0		568
ALL balance at March 31, 2016	$	3,300	$	3,747	$	758	$	3,759	$	192	$	500	$	12,256

ALL balance at January 1, 2015	$	2,424	$	3,912	$	1,680	$	3,862	$	187	$	0	$	12,065
Charge-offs		(287)		(231)		0		37		(96)		0		(577)
Recoveries		3		15		7		105		59		0		189
Provision		436		(4)		(210)		(214)		66		0		74
ALL balance at March 31, 2015	$	2,576	$	3,692	$	1,477	$	3,790	$	216	$	0	$	11,751

Average of Impaired Loans and Related Interest Income by Loan Portfolio Class

The following tables present the average recorded investment in impaired loans by class and related interest income recognized for the periods indicated:


	Three months ended						Three months ended
	March 31, 2016						March 31, 2015
(in thousands)	Average investment		Interest income recognized on an accrual basis		Interest income recognized on a cash basis		Average investment		Interest income recognized on an accrual basis		Interest income recognized on a cash basis
Commercial real estate
Non owner-occupied	$	1,597	$	6	$	0	$	4,022	$	40	$	0
All other CRE		13,093		37		0		7,316		27		1
Acquisition and development
1-4 family residential construction		700		8		0		790		9		0
All other A&D		3,869		24		0		5,530		32		0
Commercial and industrial		1,071		9		0		1,689		23		0
Residential mortgage
Residential mortgage - term		4,519		39		4		4,091		40		0
Residential mortgage – home equity		298		0		0		377		0		0
Consumer		0		0		0		13		0		0
Total	$	25,147	$	123	$	4	$	23,828	$	171	$	1

Modification of Troubled Debt Restructuring by Class

The following tables present the volume and recorded investment at the time of modification of TDRs by class and type of modification that occurred during the periods indicated:


	Temporary Rate Modification			Extension of Maturity			Modification of Payment and Other Terms
(in thousands)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Three months ended March 31, 2016
Commercial real estate
Non owner-occupied	0	$	0	0	$	0	0	$	0
All other CRE	0		0	1		203	0		0
Acquisition and development
1-4 family residential construction	0		0	0		0	0		0
All other A&D	0		0	0		0	0		0
Commercial and industrial	0		0	0		0	1		486
Residential mortgage
Residential mortgage – term	0		0	0		0	1		72
Residential mortgage – home equity	0		0	0		0	0		0
Consumer	0		0	0		0	0		0
Total	0	$	0	1	$	203	2	$	558


	Temporary Rate Modification			Extension of Maturity			Modification of Payment and Other Terms
(in thousands)	Number of Contracts	Recorded Investment		Number of Contracts		Recorded Investment	Number of Contracts	Recorded Investment
Three Months Ended March 31, 2015
Commercial real estate
Non owner-occupied	0	$	0	1	$	3,097	1	$	136
All other CRE	0		0	0		0	5		3,847
Acquisition and development
1-4 family residential construction	0		0	0		0	0		0
All other A&D	0		0	3		372	0		0
Commercial and industrial	0		0	0		0	0		0
Residential mortgage
Residential mortgage – term	0		0	2		599	1		116
Residential mortgage – home equity	0		0	0		0	0		0
Consumer	0		0	0		0	0		0
Total	0	$	0	6	$	4,068	7	$	4,099