Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of Accounts, Notes, Loans and Financing Receivable

Categories of loans include:



	June 30, 2015			December 31, 2014
Commercial loans
Commercial and industrial	$	89,316		$	77,232
Owner-occupied commercial real estate	39,405			34,295
Investor commercial real estate	20,163			22,069
Construction	20,155			24,883
Single tenant lease financing	279,891			192,608
Total commercial loans	448,930			351,087
Consumer loans
Residential mortgage	207,703			220,612
Home equity	49,662			58,434
Other consumer	103,157			97,094
Total consumer loans	360,522			376,140
Total commercial and consumer loans	809,452			727,227
Deferred loan origination costs and premiums and discounts on purchased loans	4,791			5,199
Total loans receivable	814,243			732,426
Allowance for loan losses	(7,073		)	(5,800		)
Net loans receivable	$	807,170		$	726,626

Allowance for Credit Losses on Financing Receivables

The following tables present changes in the balance of the ALLL during the three and six month periods ended June 30, 2015 and 2014.



	Three Months Ended June 30, 2015
	Commercial and industrial		Owner-occupied commercial real estate		Investor commercial real estate			Construction			Single tenant lease financing		Residential mortgage			Home equity			Other consumer			Total
Allowance for loan losses:
Balance, beginning of period	$	1,010	$	391	$	218		$	359		$	2,452	$	988		$	203		$	757		$	6,378
Provision (credit) charged to expense	191		48		(457		)	(132		)	641		42			(46		)	17			304
Losses charged off	—		—		—			—			—		(100		)	—			(132		)	(232		)
Recoveries	—		—		500			—			—		3			—			120			623
Balance, end of period	$	1,201	$	439	$	261		$	227		$	3,093	$	933		$	157		$	762		$	7,073



	Six Months Ended June 30, 2015
	Commercial and industrial		Owner-occupied commercial real estate		Investor commercial real estate			Construction			Single tenant lease financing		Residential mortgage			Home equity			Other consumer			Total
Allowance for loan losses:
Balance, beginning of period	$	920	$	345	$	261		$	330		$	2,061	$	985		$	207		$	691		$	5,800
Provision (credit) charged to expense	281		94		(500		)	(103		)	1,032		(152		)	(50		)	144			746
Losses charged off	—		—		—			—			—		(171		)	—			(289		)	(460		)
Recoveries	—		—		500			—			—		271			—			216			987
Balance, end of period	$	1,201	$	439	$	261		$	227		$	3,093	$	933		$	157		$	762		$	7,073



	Three Months Ended June 30, 2014
	Commercial and industrial			Owner-occupied commercial real estate			Investor commercial real estate			Construction			Single tenant lease financing			Residential mortgage			Home equity		Other consumer			Total
Allowance for loan losses:
Balance, beginning of period	$	871		$	305		$	231		$	292		$	1,868		$	859		$	185	$	777		$	5,388
Provision (credit) charged to expense	(136		)	(34		)	(27		)	(33		)	(208		)	211			28		126			(73		)
Losses charged off	—			—			—			—			—			(89		)	—		(166		)	(255		)
Recoveries	—			—			1			—			—			9			—		70			80
Balance, end of period	$	735		$	271		$	205		$	259		$	1,660		$	990		$	213	$	807		$	5,140



	Six Months Ended June 30, 2014
	Commercial and industrial			Owner-occupied commercial real estate			Investor commercial real estate			Construction			Single tenant lease financing			Residential mortgage			Home equity		Other consumer			Total
Allowance for loan losses:
Balance, beginning of period	$	819		$	290		$	219		$	277		$	1,731		$	1,008		$	211	$	871		$	5,426
Provision (credit) charged to expense	(84		)	(19		)	(15		)	(18		)	(71		)	171			2		108			74
Losses charged off	—			—			—			—			—			(211		)	—		(335		)	(546		)
Recoveries	—			—			1			—			—			22			—		163			186
Balance, end of period	$	735		$	271		$	205		$	259		$	1,660		$	990		$	213	$	807		$	5,140

Allowance For Credit Losses On Financing Receivables Portfolio Segment

The following tables present the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2015, and December 31, 2014.



	June 30, 2015
	Commercial and industrial		Owner-occupied commercial real estate		Investor commercial real estate		Construction		Single tenant lease financing		Residential mortgage		Home equity		Other consumer		Total
Loans:
Ending balance: collectively evaluated for impairment	$	89,316	$	39,405	$	20,163	$	20,155	$	279,891	$	206,534	$	49,662	$	102,987	$	808,113
Ending balance: individually evaluated for impairment	—		—		—		—		—		1,169		—		170		1,339
Ending balance	$	89,316	$	39,405	$	20,163	$	20,155	$	279,891	$	207,703	$	49,662	$	103,157	$	809,452
Allowance for loan losses:
Ending balance: collectively evaluated for impairment	$	1,201	$	439	$	261	$	227	$	3,093	$	919	$	157	$	762	$	7,059
Ending balance: individually evaluated for impairment	—		—		—		—		—		14		—		—		14
Ending balance	$	1,201	$	439	$	261	$	227	$	3,093	$	933	$	157	$	762	$	7,073



	December 31, 2014
	Commercial and industrial		Owner-occupied commercial real estate		Investor commercial real estate		Construction		Single tenant lease financing		Residential mortgage		Home equity		Other consumer		Total
Loans:
Ending balance: collectively evaluated for impairment	$	77,232	$	34,295	$	21,982	$	24,883	$	192,608	$	219,473	$	58,434	$	96,789	$	725,696
Ending balance: individually evaluated for impairment	—		—		87		—		—		1,139		—		305		1,531
Ending balance	$	77,232	$	34,295	$	22,069	$	24,883	$	192,608	$	220,612	$	58,434	$	97,094	$	727,227
Allowance for loan losses:
Ending balance: collectively evaluated for impairment	$	920	$	345	$	261	$	330	$	2,061	$	985	$	207	$	676	$	5,785
Ending balance: individually evaluated for impairment	—		—		—		—		—		—		—		15		15
Ending balance	$	920	$	345	$	261	$	330	$	2,061	$	985	$	207	$	691	$	5,800

Financing Receivable Credit Quality Indicators

The following tables present the credit risk profile of the Company’s commercial loan portfolio based on rating category and payment activity as of June 30, 2015 and December 31, 2014.



	June 30, 2015
	Commercial and industrial		Owner-occupied commercial real estate		Investor commercial real estate		Construction		Single tenant lease financing		Total
Rating:
1-5 Pass	$	85,338	$	39,389	$	18,612	$	19,793	$	279,891	$	443,023
6 Special Mention	2,070		—		—		362		—		2,432
7 Substandard	1,908		16		1,551		—		—		3,475
8 Doubtful	—		—		—		—		—		—
Total	$	89,316	$	39,405	$	20,163	$	20,155	$	279,891	$	448,930



	June 30, 2015
	Residential mortgage		Home equity		Other consumer		Total
Performing	$	207,584	$	49,662	$	103,088	$	360,334
Nonaccrual	119		—		69		188
Total	$	207,703	$	49,662	$	103,157	$	360,522



	December 31, 2014
	Commercial and industrial		Owner-occupied commercial real estate		Investor commercial real estate		Construction		Single tenant lease financing		Total
Rating:
1-5 Pass	$	77,232	$	34,278	$	20,478	$	24,504	$	192,608	$	349,100
6 Special Mention	—		—		—		379		—		379
7 Substandard	—		17		1,591		—		—		1,608
8 Doubtful	—		—		—		—		—		—
Total	$	77,232	$	34,295	$	22,069	$	24,883	$	192,608	$	351,087



	December 31, 2014
	Residential mortgage		Home equity		Other consumer		Total
Performing	$	220,587	$	58,434	$	96,971	$	375,992
Nonaccrual	25		—		123		148
Total	$	220,612	$	58,434	$	97,094	$	376,140

Past Due Financing Receivables

The following tables present the Company’s loan portfolio delinquency analysis as of June 30, 2015 and December 31, 2014.



	June 30, 2015
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable		Non- accrual Loans		Total Loans 90 Days or More Past Due and Accruing
Commercial and industrial	$	—	$	—	$	—	$	—	$	89,316	$	89,316	$	—	$	—
Owner-occupied commercial real estate	—		—		—		—		39,405		39,405		—		—
Investor commercial real estate	—		—		—		—		20,163		20,163		—		—
Construction	—		—		—		—		20,155		20,155		—		—
Single tenant lease financing	—		—		—		—		279,891		279,891		—		—
Residential mortgage	24		—		60		84		207,619		207,703		119		—
Home equity	—		—		—		—		49,662		49,662		—		—
Other consumer	72		12		—		84		103,073		103,157		69		—
Total	$	96	$	12	$	60	$	168	$	809,284	$	809,452	$	188	$	—



	December 31, 2014
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable		Non- accrual Loans		Total Loans 90 Days or More Past Due and Accruing
Commercial and industrial	$	—	$	—	$	—	$	—	$	77,232	$	77,232	$	—	$	—
Owner-occupied commercial real estate	—		—		—		—		34,295		34,295		—		—
Investor commercial real estate	—		—		—		—		22,069		22,069		87		—
Construction	—		—		—		—		24,883		24,883		—		—
Single tenant lease financing	—		—		—		—		192,608		192,608		—		—
Residential mortgage	161		—		57		218		220,394		220,612		25		57
Home equity	—		—		—		—		58,434		58,434		—		—
Other consumer	249		56		53		358		96,736		97,094		123		4
Total	$	410	$	56	$	110	$	576	$	726,651	$	727,227	$	235	$	61

Impaired Financing Receivables

The following table presents the Company’s impaired loans as of June 30, 2015 and December 31, 2014.



	June 30, 2015						December 31, 2014
	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans without a specific valuation allowance
Investor commercial real estate	$	—	$	—	$	—	$	87	$	87	$	—
Residential mortgage	1,109		1,116		—		1,139		1,146		—
Other consumer	170		267		—		268		338		—
Total	1,279		1,383		—		1,494		1,571		—
Loans with a specific valuation allowance
Residential mortgage	60		60		14		—		—		—
Other consumer	—		—		—		37		51		15
Total	60		60		14		37		51		15
Total impaired loans	$	1,339	$	1,443	$	14	$	1,531	$	1,622	$	15

The table below presents average balances and interest income recognized for impaired loans during the three and six month periods ended June 30, 2015 and June 30, 2014.



	June 30, 2015								June 30, 2014
	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	Average Balance		Interest Income		Average Balance		Interest Income		Average Balance		Interest Income		Average Balance		Interest Income
Loans without a specific valuation allowance
Investor commercial real estate	$	—	$	—	$	43	$	2	$	1,049	$	3	$	1,050	$	3
Residential mortgage	1,110		2		1,085		4		1,107		5		1,290		11
Other consumer	215		3		168		6		234		12		265		17
Total	1,325		5		1,296		12		2,390		20		2,605		31
Loans with a specific valuation allowance
Residential mortgage	60		—		30		—		13		—		18		—
Other consumer	—		—		27		1		54		1		66		1
Total	60		—		57		1		67		1		84		1
Total impaired loans	$	1,385	$	5	$	1,353	$	13	$	2,457	$	21	$	2,689	$	32

Troubled Debt Restructurings on Financing Receivables

Loans classified as new TDRs during the six months ended June 30, 2015 and 2014 are shown in the table below. The 2015 and 2014 modifications consisted solely of maturity date concessions. There were no loans classified as new TDRs during the three months ended June 30, 2015 and 2014.



	New TDRs During the Six Months Ended
	June 30, 2015					June 30, 2014
	Number of Contracts	Recorded Balance Before		Recorded Balance After		Number of Contracts	Recorded Balance Before		Recorded Balance After
Residential mortgage	1	$	57	$	57	—	$	—	$	—
Other consumer	—	—		—		1	21		21
Total loans	1	$	57	$	57	1	$	21	$	21