Loans and Related Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2018

The following table summarizes the primary segments of the loan portfolio at June 30, 2018 and December 31, 2017:



(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
June 30, 2018

Individually evaluated for impairment	$	7,438	$	733	$	305	$	4,040	$	23	$	12,539
Collectively evaluated for impairment	$	283,257	$	111,046	$	87,869	$	413,242	$	33,248	$	928,662
Total loans	$	290,695	$	111,779	$	88,174	$	417,282	$	33,271	$	941,201

December 31, 2017

Individually evaluated for impairment	$	9,076	$	976	$	668	$	4,201	$	30	$	14,951
Collectively evaluated for impairment	$	274,086	$	109,554	$	76,055	$	394,447	$	23,425	$	877,567
Total loans	$	283,162	$	110,530	$	76,723	$	398,648	$	23,455	$	892,518

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 June 30, 2018 and December 31, 2017:


(in thousands)	Pass		Special Mention		Substandard		Total
June 30, 2018
Commercial real estate
Non owner-occupied	$	133,604	$	2,970	$	2,914	$	139,488
All other CRE		140,070		3,659		7,478		151,207
Acquisition and development
1-4 family residential construction		19,931		0		0		19,931
All other A&D		84,218		7,207		423		91,848
Commercial and industrial		82,967		4,180		1,027		88,174
Residential mortgage
Residential mortgage - term		339,928		0		4,847		344,775
Residential mortgage - home equity		71,343		146		1,018		72,507
Consumer		33,153		4		114		33,271
Total	$	905,214	$	18,166	$	17,821	$	941,201

December 31, 2017
Commercial real estate
Non owner-occupied	$	133,725	$	0	$	5,843	$	139,568
All other CRE		132,003		3,963		7,628		143,594
Acquisition and development
1-4 family residential construction		17,719		0		0		17,719
All other A&D		84,345		7,294		1,172		92,811
Commercial and industrial		75,299		17		1,407		76,723
Residential mortgage
Residential mortgage - term		319,059		0		5,326		324,385
Residential mortgage - home equity		73,059		148		1,056		74,263
Consumer		23,391		5		59		23,455
Total	$	858,600	$	11,427	$	22,491	$	892,518

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 June 30, 2018 and December 31, 2017:



(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
June 30, 2018
Commercial real estate
Non owner-occupied	$	138,781	$	18	$	0	$	0	$	18	$	689	$	139,488
All other CRE		148,934		0		0		25		25		2,248		151,207
Acquisition and development
1-4 family residential construction		19,931		0		0		0		0		0		19,931
All other A&D		91,806		0		0		0		0		42		91,848
Commercial and industrial		88,054		78		23		3		104		16		88,174
Residential mortgage
Residential mortgage - term		341,291		408		1,234		397		2,039		1,445		344,775
Residential mortgage - home equity		71,360		404		190		0		594		553		72,507
Consumer		33,109		84		49		6		139		23		33,271
Total	$	933,266	$	992	$	1,496	$	431	$	2,919	$	5,016	$	941,201

December 31, 2017
Commercial real estate
Non owner-occupied	$	136,134	$	186	$	0	$	0	$	186	$	3,248	$	139,568
All other CRE		141,680		461		248		0		709		1,205		143,594
Acquisition and development
1-4 family residential construction		17,719		0		0		0		0		0		17,719
All other A&D		92,291		0		165		144		309		211		92,811
Commercial and industrial		76,322		0		17		6		23		378		76,723
Residential mortgage
Residential mortgage - term		319,633		322		2,534		430		3,286		1,466		324,385
Residential mortgage - home equity		72,683		600		400		0		1,000		580		74,263
Consumer		23,273		115		22		15		152		30		23,455
Total	$	879,735	$	1,684	$	3,386	$	595	$	5,665	$	7,118	$	892,518

Primary Segments of the Allowance for Loan Loss

The following table summarizes the primary segments of the ALL at June 30, 2018 and December 31, 2017, 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
June 30, 2018

Individually evaluated for impairment	$	16	$	28	$	0	$	125	$	6	$	0	$	175
Collectively evaluated for impairment	$	3,287	$	1,144	$	786	$	3,619	$	258	$	500	$	9,594
Total ALL	$	3,303	$	1,172	$	786	$	3,744	$	264	$	500	$	9,769

December 31, 2017

Individually evaluated for impairment	$	245	$	40	$	0	$	65	$	12	$	0	$	362
Collectively evaluated for impairment	$	3,454	$	1,217	$	869	$	3,379	$	191	$	500	$	9,610
Total ALL	$	3,699	$	1,257	$	869	$	3,444	$	203	$	500	$	9,972

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 required at June 30, 2018 and December 31, 2017:


		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
June 30, 2018
Commercial real estate
Non owner-occupied	$	124	$	16	$	689	$	813	$	8,598
All other CRE		0		0		6,625		6,625		6,625
Acquisition and development
1-4 family residential construction		0		0		457		457		457
All other A&D		234		28		42		276		367
Commercial and industrial		0		0		305		305		2,519
Residential mortgage
Residential mortgage - term		1,213		125		2,274		3,487		3,772
Residential mortgage – home equity		0		0		553		553		566
Consumer		23		6		0		23		23
Total impaired loans	$	1,594	$	175	$	10,945	$	12,539	$	22,927

December 31, 2017
Commercial real estate
Non owner-occupied	$	1,711	$	245	$	1,907	$	3,618	$	10,579
All other CRE		0		0		5,458		5,458		5,731
Acquisition and development
1-4 family residential construction		0		0		527		527		527
All other A&D		295		40		154		449		722
Commercial and industrial		0		0		668		668		2,882
Residential mortgage
Residential mortgage - term		598		65		3,023		3,621		3,919
Residential mortgage – home equity		0		0		580		580		593
Consumer		30		12		0		30		30
Total impaired loans	$	2,634	$	362	$	12,317	$	14,951	$	24,983

Allowance for Loan Losses Summarized by Loan Portfolio Segments

The following tables present the activity in the ALL for the six- and three-month periods ended June 30, 2018 and 2017:


(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer			Unallocated	Total
ALL balance at January 1, 2018	$	3,699	$	1,257	$	869	$	3,444	$	203	$	500	$	9,972
Charge-offs		(889)		(98)		(10)		(240)		(175)		0		(1,412)
Recoveries		60		258		31		65		79		0		493
Provision		433		(245)		(104)		475		157		0		716
ALL balance at June 30, 2018	$	3,303	$	1,172	$	786	$	3,744	$	264	$	500	$	9,769

ALL balance at January 1, 2017	$	3,913	$	871	$	858	$	3,588	$	188	$	500	$	9,918
Charge-offs		(2,745)		(18)		(33)		(236)		(143)		0		(3,175)
Recoveries		63		188		1,651		253		116		0		2,271
Provision		2,418		159		(1,640)		(60)		31		0		908
ALL balance at June 30, 2017	$	3,649	$	1,200	$	836	$	3,545	$	192	$	500	$	9,922

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

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


	Six months ended						Six months ended
	June 30, 2018						June 30, 2017
(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	$	813	$	7	$	66	$	6,037	$	12	$	0
All other CRE		6,625		99		56		8,658		105		0
Acquisition and development
1-4 family residential construction		457		12		0		582		12		0
All other A&D		276		6		0		1,860		45		0
Commercial and industrial		305		10		0		290		6		0
Residential mortgage
Residential mortgage - term		3,487		62		0		3,918		66		7
Residential mortgage – home equity		553		0		7		230		0		0
Consumer		23		0		0		0		0		0
Total	$	12,539	$	196	$	129	$	21,575	$	246	$	7

Modification of Troubled Debt Restructuring by Class

The following tables present the volume and recorded investment at that 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
Six months ended June 30, 2018
Commercial real estate
Non owner-occupied	0	$	0	0	$	0	1	$	126
All other CRE	0		0	1		179	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	0		0
Residential mortgage
Residential mortgage – term	0		0	0		0	0		0
Residential mortgage – home equity	0		0	0		0	0		0
Consumer	0		0	0		0	0		0
Total	0	$	0	1	$	179	1	$	126


	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
Six months ended June 30, 2017
Commercial real estate
Non owner-occupied	0	$	0	0	$	0	0	$	0
All other CRE	0		0	0		0	0		0
Acquisition and development
1-4 family residential construction	0		0	0		0	0		0
All other A&D	0		0	1		244	0		0
Commercial and industrial	0		0	0		0	0		0
Residential mortgage
Residential mortgage – term	0		0	1		259	0		0
Residential mortgage – home equity	0		0	0		0	0		0
Consumer	0		0	0		0	0		0
Total	0	$	0	2	$	503	0	$	0