Allowance For Loan Losses (Tables)

9 Months Ended

Sep. 30, 2015

Changes in the allowance for loan losses for the nine months ended September 30, 2015 and 2014 and the year ended December 31, 2014 were as follows:



	Nine Months Ended			Year Ended			Nine Months Ended
	September 30,			December 31,			September 30,
	2015			2014			2014
				(in thousands)
Balance, beginning	$	5,080		$	5,488		$	5,488
Provision charged to operating expense	23			350			—
Recoveries added to the allowance	499			725			614
Loan losses charged to the allowance	(438		)	(1,483		)	(515		)
Balance, ending	$	5,164		$	5,080		$	5,587

Nonaccrual And Past Due Loans By Class

Nonaccrual and past due loans by class at September 30, 2015 and December 31, 2014 were as follows:



	September 30, 2015
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Days Past Due Still Accruing		Nonaccrual Loans
Commercial - Non Real Estate:
Commercial & Industrial	$	108	$	—	$	—	$	108	$	27,310	$	27,418	$	—	$	560
Commercial Real Estate:
Owner Occupied	871		—		—		871		108,604		109,475		—		1,712
Non-owner occupied	907		—		766		1,673		61,784		63,457		—		971
Construction and Farmland:
Residential	—		249		140		389		8,205		8,594		—		140
Commercial	—		53		—		53		32,314		32,367		—		326
Consumer:
Installment	58		1		1		60		13,556		13,616		1		—
Residential:
Equity Lines	3,423		6		—		3,429		31,270		34,699		—		281
Single family	2,397		—		733		3,130		192,830		195,960		—		1,683
Multifamily	—		—		—		—		3,453		3,453		—		—
All Other Loans	—		—		—		—		2,177		2,177		—		—
Total	$	7,764	$	309	$	1,640	$	9,713	$	481,503	$	491,216	$	1	$	5,673



	December 31, 2014
	(in thousands)
	30 - 59 Days Past Due		60 - 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans		90 or More Past Due Still Accruing		Nonaccrual Loans
Commercial - Non Real Estate:
Commercial & Industrial	$	28	$	—	$	—	$	28	$	28,104	$	28,132	$	—	$	2,106
Commercial Real Estate:
Owner Occupied	2,191		—		—		2,191		97,516		99,707		—		2,591
Non-owner occupied	56		210		808		1,074		60,518		61,592		—		1,231
Construction and Farmland:
Residential	—		52		—		52		5,149		5,201		—		—
Commercial	—		—		57		57		31,231		31,288		—		787
Consumer:
Installment	50		15		6		71		13,803		13,874		6		—
Residential:
Equity Lines	132		41		185		358		30,763		31,121		—		331
Single family	1,243		440		644		2,327		191,246		193,573		—		3,660
Multifamily	—		—		—		—		3,016		3,016		—		—
All Other Loans	—		—		—		—		2,316		2,316		—		—
Total	$	3,700	$	758	$	1,700	$	6,158	$	463,662	$	469,820	$	6	$	10,706

Allowance For Loan Losses By Segment

Allowance for loan losses by segment at September 30, 2015 and December 31, 2014 were as follows:



	As of and for the Nine Months Ended
	September 30, 2015
	(in thousands)
	Construction and Farmland			Residential			Commercial Real Estate			Commercial - Non Real Estate			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	951		$	1,977		$	1,347		$	464		$	103		$	42		$	196	$	5,080
Charge-Offs	(166		)	(152		)	(47		)	—			(54		)	(19		)	—		(438		)
Recoveries	63			157			60			179			26			14			—		499
Provision	85			102			89			(307		)	27			13			14		23
Ending balance	$	933		$	2,084		$	1,449		$	336		$	102		$	50		$	210	$	5,164
Ending balance: Individually evaluated for impairment	$	138		$	343		$	102		$	8		$	—		$	—		$	—	$	591
Ending balance: collectively evaluated for impairment	$	795		$	1,741		$	1,347		$	328		$	102		$	50		$	210	$	4,573
Loans:
Ending balance	$	40,961		$	234,112		$	172,932		$	27,418		$	13,616		$	2,177		$	—	$	491,216
Ending balance individually evaluated for impairment	$	2,266		$	7,052		$	4,746		$	953		$	—		$	—		$	—	$	15,017
Ending balance collectively evaluated for impairment	$	38,695		$	227,060		$	168,186		$	26,465		$	13,616		$	2,177		$	—	$	476,199



	As of and for the Twelve Months Ended
	December 31, 2014
	(in thousands)
	Construction and Farmland			Residential			Commercial Real Estate			Commercial - Non Real Estate			Consumer			All Other Loans			Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	1,032		$	2,225		$	1,337		$	555		$	102		$	82		$	155	$	5,488
Charge-Offs	(482		)	(808		)	(83		)	—			(86		)	(24		)	—		(1,483		)
Recoveries	26			63			381			164			87			4			—		725
Provision	375			497			(288		)	(255		)	—			(20		)	41		350
Ending balance	$	951		$	1,977		$	1,347		$	464		$	103		$	42		$	196	$	5,080
Ending balance: Individually evaluated for impairment	$	93		$	303		$	203		$	44		$	—		$	—		$	—	$	643
Ending balance: collectively evaluated for impairment	$	858		$	1,674		$	1,144		$	420		$	103		$	42		$	196	$	4,437
Loans:
Ending balance	$	36,489		$	227,710		$	161,299		$	28,132		$	13,874		$	2,316		$	—	$	469,820
Ending balance individually evaluated for impairment	$	2,665		$	6,550		$	5,716		$	2,106		$	—		$	—		$	—	$	17,037
Ending balance collectively evaluated for impairment	$	33,824		$	221,160		$	155,583		$	26,026		$	13,874		$	2,316		$	—	$	452,783

Impaired Loans By Class

Impaired loans by class as of and for the periods ended September 30, 2015 and December 31, 2014 were as follows:



	As of and for the Nine Months Ended
	September 30, 2015
	(in thousands)
	Unpaid Principal Balance		Recorded Investment (1)		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance:
Commercial - Non Real Estate:
Commercial & Industrial	$	1,081	$	881	$	—	$	1,075	$	3
Commercial Real Estate:
Owner Occupied	2,439		2,273		—		2,375		22
Non-owner occupied	1,242		1,176		—		1,183		—
Construction and Farmland:
Residential	140		140		—		134		3
Commercial	1,367		1,348		—		1,372		34
Residential:
Equity lines	399		219		—		221		1
Single family	4,663		4,550		—		4,701		104
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	11,331	$	10,587	$	—	$	11,061	$	167
With an allowance recorded:
Commercial - Non Real Estate:
Commercial & Industrial	$	73	$	73	$	8	$	81	$	13
Commercial Real Estate:
Owner Occupied	—		—		—		—		—
Non-owner occupied	1,299		1,303		102		1,315		52
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	778		781		138		809		24
Residential:
Equity lines	304		148		76		149		2
Single family	2,162		2,152		267		2,166		31
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	4,616	$	4,457	$	591	$	4,520	$	122
Total:
Commercial	$	1,154	$	954	$	8	$	1,156	$	16
Commercial Real Estate	4,980		4,752		102		4,873		74
Construction and Farmland	2,285		2,269		138		2,315		61
Residential	7,528		7,069		343		7,237		138
Other	—		—		—		—		—
Total	$	15,947	$	15,044	$	591	$	15,581	$	289

(1) Recorded investment is defined as the summation of the outstanding principal balance, accrued interest, net deferred loan fees or costs, and any partial charge-offs.



	As of and for the Twelve Months End
	December 31, 2014
	(in thousands)
	Unpaid Principal Balance		Recorded Investment (1)		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance:
Commercial - Non Real Estate:
Commercial & Industrial	$	2,159	$	2,013	$	—	$	2,256	$	19
Commercial Real Estate:
Owner Occupied	2,824		2,473		—		2,857		48
Non-owner occupied	2,675		2,560		—		2,796		86
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	2,319		2,319		—		2,362		68
Residential:
Equity lines	252		78		—		252		—
Single family	5,634		5,218		—		5,719		149
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	15,863	$	14,661	$	—	$	16,242	$	370
With an allowance recorded:
Commercial - Non Real Estate:
Commercial & Industrial	$	289	$	94	$	44	$	289	$	—
Commercial Real Estate:
Owner Occupied	689		689		203		704		33
Non-owner occupied	—		—		—		—		—
Construction and Farmland:
Residential	—		—		—		—		—
Commercial	385		350		93		393		5
Residential:
Equity lines	403		253		95		403		5
Single family	1,007		1,008		208		1,020		41
Multifamily	—		—		—		—		—
Other Loans	—		—		—		—		—
	$	2,773	$	2,394	$	643	$	2,809	$	84
Total:
Commercial	$	2,448	$	2,107	$	44	$	2,545	$	19
Commercial Real Estate	6,188		5,722		203		6,357		167
Construction and Farmland	2,704		2,669		93		2,755		73
Residential	7,296		6,557		303		7,394		195
Other	—		—		—		—		—
Total	$	18,636	$	17,055	$	643	$	19,051	$	454

Credit Quality Information By Class

Credit quality information by class at September 30, 2015 and December 31, 2014 was as follows:



	As of
	September 30, 2015
	(in thousands)
INTERNAL RISK RATING GRADES	Pass		Pass Monitored		Special Mention		Substandard		Doubtful		Loss		Total
Commercial - Non Real Estate:
Commercial & Industrial	$	24,387	$	2,098	$	350	$	459	$	124	$	—	$	27,418
Commercial Real Estate:
Owner Occupied	90,723		13,543		3,145		1,048		1,016		—		109,475
Non-owner occupied	41,932		19,763		—		1,762		—		—		63,457
Construction and Farmland:
Residential	8,454		—		—		140		—		—		8,594
Commercial	19,334		11,447		73		1,513		—		—		32,367
Residential:
Equity Lines	30,414		3,935		70		146		134		—		34,699
Single family	169,489		20,652		436		4,950		433		—		195,960
Multifamily	3,453		—		—		—		—		—		3,453
All other loans	2,128		49		—		—		—		—		2,177
Total	$	390,314	$	71,487	$	4,074	$	10,018	$	1,707	$	—	$	477,600



	Performing		Nonperforming
Consumer Credit Exposure by Payment Activity	$	13,556	$	60



	As of
	December 31, 2014
	(in thousands)
INTERNAL RISK RATING GRADES	Pass		Pass Monitored		Special Mention		Substandard		Doubtful		Loss		Total
Commercial - Non Real Estate:
Commercial & Industrial	$	24,579	$	1,775	$	21	$	701	$	1,056	$	—	$	28,132
Commercial Real Estate:
Owner Occupied	77,979		17,401		—		3,189		1,138		—		99,707
Non-owner occupied	42,630		14,779		1,402		2,733		48		—		61,592
Construction and Farm land:
Residential	5,112		89		—		—		—		—		5,201
Commercial	23,192		5,184		2,083		750		79		—		31,288
Residential:
Equity Lines	29,440		1,429		—		185		67		—		31,121
Single family	165,932		21,011		—		6,062		568		—		193,573
Multifamily	2,144		872		—		—		—		—		3,016
All other loans	2,316		—		—		—		—		—		2,316
Total	$	373,324	$	62,540	$	3,506	$	13,620	$	2,956	$	—	$	455,946



	Performing		Nonperforming
Consumer Credit Exposure by Payment Activity	$	13,803	$	71