XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Note 5 - Loans and Allowance for Loan Losses | 9 Months Ended
--- | ---
Sep. 30, 2016
Notes to Financial Statements |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | N OTE 5 – LOANS AND ALLOWANCE FOR LOAN LOSSES
Loans are comprised of the following: |  | September 30, |  |  | December 31, |
|  | 2016 |  |  | 2015 |
Residential real estate |  | $ | 273,335 |  |  | $ | 223,875 |
Commercial real estate: |  |  |  |  |  |  |  |
Owner-occupied |  |  | 82,204 |  |  |  | 73,458 |
Nonowner-occupied |  |  | 98,923 |  |  |  | 72,002 |
Construction |  |  | 34,494 |  |  |  | 23,852 |
Commercial and industrial |  |  | 97,192 |  |  |  | 81,936 |
Consumer: |  |  |  |  |  |  |  |
Automobile |  |  | 58,359 |  |  |  | 44,566 |
Home equity |  |  | 20,159 |  |  |  | 20,841 |
Other |  |  | 56,921 |  |  |  | 45,222 |
|  |  | 721,587 |  |  |  | 585,752 |
Less: Allowance for loan losses |  |  | 7,537 |  |  |  | 6,648 |
Loans, net |  | $ | 714,050 |  |  | $ | 579,104 |
The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2016 and 2015:
September 30, 2016 |  | Residential Real Estate |  |  | Commercial Real Estate |  |  | Commercial and Industrial |  |  | Consumer |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 906 |  |  | $ | 3,464 |  |  | $ | 1,416 |  |  | $ | 1,148 |  |  | $ | 6,934 |
Provision for loan losses |  |  | 228 |  |  |  | 802 |  |  |  | 149 |  |  |  | 529 |  |  |  | 1,708 |
Loans charged off |  |  | (151 | ) |  |  | (11 | ) |  |  | (587 | ) |  |  | (704 | ) |  |  | (1,453 | )
Recoveries |  |  | 30 |  |  |  | 19 |  |  |  | 1 |  |  |  | 298 |  |  |  | 348 |
Total ending allowance balance |  | $ | 1,013 |  |  | $ | 4,274 |  |  | $ | 979 |  |  | $ | 1,271 |  |  | $ | 7,537 |
September 30, 2015 |  | Residential Real Estate |  |  | Commercial Real Estate |  |  | Commercial and Industrial |  |  | Consumer |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 1,230 |  |  | $ | 2,795 |  |  | $ | 2,287 |  |  | $ | 1,132 |  |  | $ | 7,444 |
Provision for loan losses |  |  | (166 | ) |  |  | (214 | ) |  |  | 205 |  |  |  | 164 |  |  |  | (11 | )
Loans charged-off |  |  | (40 | ) |  |  | (596 | ) |  |  | ---- |  |  |  | (309 | ) |  |  | (945 | )
Recoveries |  |  | 219 |  |  |  | 15 |  |  |  | 11 |  |  |  | 169 |  |  |  | 414 |
Total ending allowance balance |  | $ | 1,243 |  |  | $ | 2,000 |  |  | $ | 2,503 |  |  | $ | 1,156 |  |  | $ | 6,902 |
The following table presents the activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2016 and 2015:
September 30, 2016 |  | Residential Real Estate |  |  | Commercial Real Estate |  |  | Commercial and Industrial |  |  | Consumer |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 1,087 |  |  | $ | 1,959 |  |  | $ | 2,589 |  |  | $ | 1,013 |  |  | $ | 6,648 |
Provision for loan losses |  |  | 10 |  |  |  | 2,264 |  |  |  | (1,035 | ) |  |  | 1,089 |  |  |  | 2,328 |
Loans charged off |  |  | (322 | ) |  |  | (63 | ) |  |  | (587 | ) |  |  | (1,540 | ) |  |  | (2,512 | )
Recoveries |  |  | 238 |  |  |  | 114 |  |  |  | 12 |  |  |  | 709 |  |  |  | 1,073 |
Total ending allowance balance |  | $ | 1,013 |  |  | $ | 4,274 |  |  | $ | 979 |  |  | $ | 1,271 |  |  | $ | 7,537 |
September 30, 2015 |  | Residential Real Estate |  |  | Commercial Real Estate |  |  | Commercial and Industrial |  |  | Consumer |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 1,426 |  |  | $ | 4,195 |  |  | $ | 1,602 |  |  | $ | 1,111 |  |  | $ | 8,334 |
Provision for loan losses |  |  | (256 | ) |  |  | (272 | ) |  |  | 697 |  |  |  | 541 |  |  |  | 710 |
Loans charged-off |  |  | (263 | ) |  |  | (1,970 | ) |  |  | (24 | ) |  |  | (1,016 | ) |  |  | (3,273 | )
Recoveries |  |  | 336 |  |  |  | 47 |  |  |  | 228 |  |  |  | 520 |  |  |  | 1,131 |
Total ending allowance balance |  | $ | 1,243 |  |  | $ | 2,000 |  |  | $ | 2,503 |  |  | $ | 1,156 |  |  | $ | 6,902 |
The following table presents the balance in the allowance for loan losses and the recorded investment of loans by portfolio segment and based on impairment method as of September 30, 2016 and December 31, 2015:
September 30, 2016 |  | Residential Real Estate |  |  | Commercial Real Estate |  |  | Commercial and Industrial |  |  | Consumer |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | ---- |  |  | $ | 2,705 |  |  | $ | 245 |  |  | $ | 2 |  |  | $ | 2,952 |
Collectively evaluated for impairment |  |  | 1,013 |  |  |  | 1,569 |  |  |  | 734 |  |  |  | 1,269 |  |  |  | 4,585 |
Total ending allowance balance |  | $ | 1,013 |  |  | $ | 4,274 |  |  | $ | 979 |  |  | $ | 1,271 |  |  | $ | 7,537 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 724 |  |  | $ | 13,391 |  |  | $ | 9,099 |  |  | $ | 216 |  |  | $ | 23,430 |
Loans collectively evaluated for impairment |  |  | 272,611 |  |  |  | 202,230 |  |  |  | 88,093 |  |  |  | 135,223 |  |  |  | 698,157 |
Total ending loans balance |  | $ | 273,335 |  |  | $ | 215,621 |  |  | $ | 97,192 |  |  | $ | 135,439 |  |  | $ | 721,587 |
December 31, 2015 |  | Residential Real Estate |  |  | Commercial Real Estate |  |  | Commercial and Industrial |  |  | Consumer |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | ---- |  |  | $ | 311 |  |  | $ | 1,850 |  |  | $ | 3 |  |  | $ | 2,164 |
Collectively evaluated for impairment |  |  | 1,087 |  |  |  | 1,648 |  |  |  | 739 |  |  |  | 1,010 |  |  |  | 4,484 |
Total ending allowance balance |  | $ | 1,087 |  |  | $ | 1,959 |  |  | $ | 2,589 |  |  | $ | 1,013 |  |  | $ | 6,648 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans individually evaluated for impairment |  | $ | 1,001 |  |  | $ | 7,318 |  |  | $ | 8,691 |  |  | $ | 218 |  |  | $ | 17,228 |
Loans collectively evaluated for impairment |  |  | 222,874 |  |  |  | 161,994 |  |  |  | 73,245 |  |  |  | 110,411 |  |  |  | 568,524 |
Total ending loans balance |  | $ | 223,875 |  |  | $ | 169,312 |  |  | $ | 81,936 |  |  | $ | 110,629 |  |  | $ | 585,752 |
The following tables present information related to loans individually evaluated for impairment by class of loans as of September 30, 2016 and December 31, 2015:
September 30, 2016 |  | Unpaid Principal Balance |  |  | Recorded Investment |  |  | Allowance for Loan Losses Allocated |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  | $ | 5,918 |  |  | $ | 5,918 |  |  | $ | 2,603 |
Nonowner-occupied |  |  | 387 |  |  |  | 387 |  |  |  | 102 |
Commercial and industrial |  |  | 391 |  |  |  | 391 |  |  |  | 245 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Home equity |  |  | 216 |  |  |  | 216 |  |  |  | 2 |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  | 724 |  |  |  | 724 |  |  |  | ---- |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  |  | 3,291 |  |  |  | 2,744 |  |  |  | ---- |
Nonowner-occupied |  |  | 5,614 |  |  |  | 3,798 |  |  |  | ---- |
Construction |  |  | 641 |  |  |  | 544 |  |  |  | ---- |
Commercial and industrial |  |  | 8,708 |  |  |  | 8,708 |  |  |  | ---- |
Total |  | $ | 25,890 |  |  | $ | 23,430 |  |  | $ | 2,952 |
December 31, 2015 |  | Unpaid Principal Balance |  |  | Recorded Investment |  |  | Allowance for Loan Losses Allocated |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  | $ | 204 |  |  | $ | 204 |  |  | $ | 204 |
Nonowner-occupied |  |  | 396 |  |  |  | 396 |  |  |  | 107 |
Commercial and industrial |  |  | 4,355 |  |  |  | 4,355 |  |  |  | 1,850 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Home equity |  |  | 218 |  |  |  | 218 |  |  |  | 3 |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  | 1,001 |  |  |  | 1,001 |  |  |  | ---- |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  |  | 3,812 |  |  |  | 3,265 |  |  |  | ---- |
Nonowner-occupied |  |  | 5,178 |  |  |  | 2,773 |  |  |  | ---- |
Construction |  |  | 680 |  |  |  | 680 |  |  |  | ---- |
Commercial and industrial |  |  | 4,336 |  |  |  | 4,336 |  |  |  | ---- |
Total |  | $ | 20,180 |  |  | $ | 17,228 |  |  | $ | 2,164 |
The following tables present information related to loans individually evaluated for impairment by class of loans for the three and nine months ended September 30, 2016 and 2015:
|  | Three months ended September 30, 2016 |  |  | Nine months ended September 30, 2016 |
|  | Average Impaired Loans |  |  | Interest Income Recognized |  |  | Cash Basis Interest Recognized |  |  | Average Impaired Loans |  |  | Interest Income Recognized |  |  | Cash Basis Interest Recognized |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  | $ | 5,427 |  |  | $ | 94 |  |  | $ | 94 |  |  | $ | 2,815 |  |  | $ | 241 |  |  | $ | 241 |
Nonowner-occupied |  |  | 389 |  |  |  | 5 |  |  |  | 5 |  |  |  | 392 |  |  |  | 15 |  |  |  | 15 |
Commercial and industrial |  |  | 391 |  |  |  | ---- |  |  |  | ---- |  |  |  | 391 |  |  |  | ---- |  |  |  | ---- |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity |  |  | 217 |  |  |  | 1 |  |  |  | 1 |  |  |  | 218 |  |  |  | 5 |  |  |  | 5 |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  | 725 |  |  |  | 4 |  |  |  | 4 |  |  |  | 728 |  |  |  | 20 |  |  |  | 20 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  |  | 2,797 |  |  |  | 37 |  |  |  | 37 |  |  |  | 2,879 |  |  |  | 120 |  |  |  | 120 |
Nonowner-occupied |  |  | 3,680 |  |  |  | 33 |  |  |  | 33 |  |  |  | 3,557 |  |  |  | 75 |  |  |  | 75 |
Construction |  |  | 363 |  |  |  | 11 |  |  |  | 11 |  |  |  | 521 |  |  |  | 108 |  |  |  | 108 |
Commercial and industrial |  |  | 8,575 |  |  |  | 103 |  |  |  | 103 |  |  |  | 8,234 |  |  |  | 290 |  |  |  | 290 |
Total |  | $ | 22,564 |  |  | $ | 288 |  |  | $ | 288 |  |  | $ | 19,735 |  |  | $ | 874 |  |  | $ | 874 |
|  | Three months ended September 30, 2015 |  |  | Nine months ended September 30, 2015 |
|  | Average Impaired Loans |  |  | Interest Income Recognized |  |  | Cash Basis Interest Recognized |  |  | Average Impaired Loans |  |  | Interest Income Recognized |  |  | Cash Basis Interest Recognized |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  | $ | 895 |  |  | $ | ---- |  |  | $ | ---- |  |  | $ | 895 |  |  | $ | ---- |  |  | $ | ---- |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  |  | 204 |  |  |  | 11 |  |  |  | 11 |  |  |  | 204 |  |  |  | 11 |  |  |  | 11 |
Nonowner-occupied |  |  | 401 |  |  |  | 5 |  |  |  | 5 |  |  |  | 404 |  |  |  | 70 |  |  |  | 70 |
Commercial and industrial |  |  | 3,589 |  |  |  | 52 |  |  |  | 52 |  |  |  | 3,343 |  |  |  | 117 |  |  |  | 117 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity |  |  | 218 |  |  |  | 2 |  |  |  | 2 |  |  |  | 219 |  |  |  | 6 |  |  |  | 6 |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  | 1,005 |  |  |  | 11 |  |  |  | 11 |  |  |  | 761 |  |  |  | 36 |  |  |  | 36 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  |  | 2,873 |  |  |  | 74 |  |  |  | 74 |  |  |  | 2,617 |  |  |  | 135 |  |  |  | 135 |
Nonowner-occupied |  |  | 2,910 |  |  |  | 12 |  |  |  | 12 |  |  |  | 3,605 |  |  |  | 37 |  |  |  | 37 |
Construction |  |  | 680 |  |  |  | ---- |  |  |  | ---- |  |  |  | 510 |  |  |  | ---- |  |  |  | ---- |
Commercial and industrial |  |  | 3,800 |  |  |  | 26 |  |  |  | 26 |  |  |  | 3,897 |  |  |  | 133 |  |  |  | 133 |
Total |  | $ | 16,575 |  |  | $ | 193 |  |  | $ | 193 |  |  | $ | 16,455 |  |  | $ | 545 |  |  | $ | 545 |
The recorded investment of a loan is its carrying value excluding accrued interest and deferred loan fees. Nonaccrual loans and loans past due 90 days or more and still accruing include both smaller balance homogenous loans that are collectively evaluated for impairment and individually classified as impaired loans. The Company transfers loans to other real estate owned, at fair value less cost to sell, in the period the Company obtains physical possession of the property (through legal title or through a deed in lieu). As of September 30, 2016 and December 31, 2015, other real estate owned secured by residential real estate totaled $986 and $1,131, respectively. In addition, nonaccrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $1,042 and $988 as of September 30, 2016 and December 31, 2015, respectively. The following table presents the recorded investment of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of September 30, 2016 and December 31, 2015:
September 30, 2016 |  | Loans Past Due 90 Days And Still Accruing |  |  | Nonaccrual |
Residential real estate |  | $ | 152 |  |  | $ | 3,387 |
Commercial real estate: |  |  |  |  |  |  |  |
Owner-occupied |  |  | 207 |  |  |  | 1,575 |
Nonowner-occupied |  |  | ---- |  |  |  | 2,711 |
Construction |  |  | ---- |  |  |  | 544 |
Commercial and industrial |  |  | ---- |  |  |  | 661 |
Consumer: |  |  |  |  |  |  |  |
Automobile |  |  | 53 |  |  |  | 16 |
Home equity |  |  | ---- |  |  |  | 35 |
Other |  |  | 31 |  |  |  | 98 |
Total |  | $ | 443 |  |  | $ | 9,027 |
December 31, 2015 |  | Loans Past Due 90 Days And Still Accruing |  |  | Nonaccrual |
Residential real estate |  | $ | 20 |  |  | $ | 2,048 |
Commercial real estate: |  |  |  |  |  |  |  |
Owner-occupied |  |  | ---- |  |  |  | 404 |
Nonowner-occupied |  |  | ---- |  |  |  | 2,737 |
Construction |  |  | ---- |  |  |  | 769 |
Commercial and industrial |  |  | ---- |  |  |  | 1,152 |
Consumer: |  |  |  |  |  |  |  |
Automobile |  |  | 18 |  |  |  | 27 |
Home equity |  |  | ---- |  |  |  | 96 |
Other |  |  | 1 |  |  |  | 3 |
Total |  | $ | 39 |  |  | $ | 7,236 |
The following table presents the aging of the recorded investment of past due loans by class of loans as of September 30, 2016 and December 31, 2015:
September 30, 2016 |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90 Days Or More Past Due |  |  | Total Past Due |  |  | Loans Not Past Due |  |  | Total |
Residential real estate |  | $ | 4,355 |  |  | $ | 1,677 |  |  | $ | 2,164 |  |  | $ | 8,196 |  |  | $ | 265,139 |  |  | $ | 273,335 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  |  | 162 |  |  |  | 338 |  |  |  | 1,508 |  |  |  | 2,008 |  |  |  | 80,196 |  |  |  | 82,204 |
Nonowner-occupied |  |  | 226 |  |  |  | 316 |  |  |  | 2,235 |  |  |  | 2,777 |  |  |  | 96,146 |  |  |  | 98,923 |
Construction |  |  | 414 |  |  |  | ---- |  |  |  | 182 |  |  |  | 596 |  |  |  | 33,898 |  |  |  | 34,494 |
Commercial and industrial |  |  | 370 |  |  |  | 230 |  |  |  | 602 |  |  |  | 1,202 |  |  |  | 95,990 |  |  |  | 97,192 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Automobile |  |  | 1,030 |  |  |  | 228 |  |  |  | 63 |  |  |  | 1,321 |  |  |  | 57,038 |  |  |  | 58,359 |
Home equity |  |  | 174 |  |  |  | ---- |  |  |  | ---- |  |  |  | 174 |  |  |  | 19,985 |  |  |  | 20,159 |
Other |  |  | 1,120 |  |  |  | 199 |  |  |  | 56 |  |  |  | 1,375 |  |  |  | 55,546 |  |  |  | 56,921 |
Total |  | $ | 7,851 |  |  | $ | 2,988 |  |  | $ | 6,810 |  |  | $ | 17,649 |  |  | $ | 703,938 |  |  | $ | 721,587 |
December 31, 2015 |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90 Days Or More Past Due |  |  | Total Past Due |  |  | Loans Not Past Due |  |  | Total |
Residential real estate |  | $ | 2,564 |  |  | $ | 1,484 |  |  | $ | 1,708 |  |  | $ | 5,756 |  |  | $ | 218,119 |  |  | $ | 223,875 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  |  | 141 |  |  |  | 33 |  |  |  | 371 |  |  |  | 545 |  |  |  | 72,913 |  |  |  | 73,458 |
Nonowner-occupied |  |  | 35 |  |  |  | 334 |  |  |  | 2,737 |  |  |  | 3,106 |  |  |  | 68,896 |  |  |  | 72,002 |
Construction |  |  | ---- |  |  |  | 2 |  |  |  | 769 |  |  |  | 771 |  |  |  | 23,081 |  |  |  | 23,852 |
Commercial and industrial |  |  | 31 |  |  |  | 88 |  |  |  | 1,077 |  |  |  | 1,196 |  |  |  | 80,740 |  |  |  | 81,936 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Automobile |  |  | 727 |  |  |  | 197 |  |  |  | 36 |  |  |  | 960 |  |  |  | 43,606 |  |  |  | 44,566 |
Home equity |  |  | 75 |  |  |  | ---- |  |  |  | 76 |  |  |  | 151 |  |  |  | 20,690 |  |  |  | 20,841 |
Other |  |  | 420 |  |  |  | 104 |  |  |  | 4 |  |  |  | 528 |  |  |  | 44,694 |  |  |  | 45,222 |
Total |  | $ | 3,993 |  |  | $ | 2,242 |  |  | $ | 6,778 |  |  | $ | 13,013 |  |  | $ | 572,739 |  |  | $ | 585,752 |
Troubled Debt Restructurings: A troubled debt restructuring (“TDR”) occurs when the Company has agreed to a loan modification in the form of a concession for a borrower who is experiencing financial difficulty. All TDR’s are considered to be impaired. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a reduction in the contractual principal and interest payments of the loan; or short-term interest-only payment terms. The Company has allocated reserves for a portion of its TDR’s to reflect the fair values of the underlying collateral or the present value of the concessionary terms granted to the customer. The following table presents the types of TDR loan modifications by class of loans as of September 30, 2016 and December 31, 2015:
September 30, 2016 |  | TDR’s Performing to Modified Terms |  |  | TDR’s Not Performing to Modified Terms |  |  | Total TDR’s |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |
Interest only payments |  | $ | 724 |  |  | $ | ---- |  |  | $ | 724 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  |  |  |  |  |  |  |  |  |  |  |
Interest only payments |  |  | 316 |  |  |  | ---- |  |  |  | 316 |
Rate reduction |  |  | ---- |  |  |  | 232 |  |  |  | 232 |
Reduction of principal and interest payments |  |  | 586 |  |  |  | ---- |  |  |  | 586 |
Maturity extension at lower stated rate than market rate |  |  | 1,610 |  |  |  | ---- |  |  |  | 1,610 |
Credit extension at lower stated rate than market rate |  |  | 204 |  |  |  | ---- |  |  |  | 204 |
Nonowner-occupied |  |  |  |  |  |  |  |  |  |  |  |
Interest only payments |  |  | 600 |  |  |  | 2,374 |  |  |  | 2,974 |
Rate reduction |  |  | 387 |  |  |  | ---- |  |  |  | 387 |
Credit extension at lower stated rate than market rate |  |  | 574 |  |  |  | ---- |  |  |  | 574 |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |
Interest only payments |  |  | 7,750 |  |  |  | ---- |  |  |  | 7,750 |
Credit extension at lower stated rate than market rate |  |  | 957 |  |  |  | 392 |  |  |  | 1,349 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Home equity |  |  |  |  |  |  |  |  |  |  |  |
Maturity extension at lower stated rate than market rate |  |  | 216 |  |  |  | ---- |  |  |  | 216 |
Total TDR’s |  | $ | 13,924 |  |  | $ | 2,998 |  |  | $ | 16,922 |
December 31, 2015 |  | TDR’s Performing to Modified Terms |  |  | TDR’s Not Performing to Modified Terms |  |  | Total TDR’s |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |
Interest only payments |  | $ | 1,001 |  |  | $ | ---- |  |  | $ | 1,001 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  |  |  |  |  |  |  |  |  |  |  |
Interest only payments |  |  | 433 |  |  |  | ---- |  |  |  | 433 |
Rate reduction |  |  | ---- |  |  |  | 232 |  |  |  | 232 |
Reduction of principal and interest payments |  |  | 604 |  |  |  | ---- |  |  |  | 604 |
Maturity extension at lower stated rate than market rate |  |  | 1,996 |  |  |  | ---- |  |  |  | 1,996 |
Credit extension at lower stated rate than market rate |  |  | 204 |  |  |  | ---- |  |  |  | 204 |
Nonowner-occupied |  |  |  |  |  |  |  |  |  |  |  |
Interest only payments |  |  | 300 |  |  |  | 2,473 |  |  |  | 2,773 |
Rate reduction |  |  | 396 |  |  |  | ---- |  |  |  | 396 |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |
Interest only payments |  |  | 7,579 |  |  |  | ---- |  |  |  | 7,579 |
Credit extension at lower stated rate than market rate |  |  | 226 |  |  |  | 391 |  |  |  | 617 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |
Home equity |  |  |  |  |  |  |  |  |  |  |  |
Maturity extension at lower stated rate than market rate |  |  | 218 |  |  |  | ---- |  |  |  | 218 |
Total TDR’s |  | $ | 12,957 |  |  | $ | 3,096 |  |  | $ | 16,053 |
During the three months ended September 30, 2016, the TDR’s described above increased the provision expense and the allowance for loan losses by $14, with corresponding charge-offs of $11. During the nine months ended September 30, 2016, the TDR's described above decreased the provision expense and the allowance for loan losses by $1,105, with corresponding charge-offs of $11. These results are compared to a $44 decrease in both the provision expense and the allowance for loan losses during the three and nine months ended September 30, 2015, with corresponding charge-offs of $1,422. During the year ended December 31, 2015, the TDR's described above increased the allowance for loan losses and provision expense by $93 with corresponding charge-offs of $1,422. The charge-offs of $1,422 during 2015 included $1,304 that were related to specific reserves that had already been provided for during 2014, and, as a result, did not impact provision expense during 2015. At September 30, 2016, the balance in TDR loans increased $869, or 5.4%, from year-end 2015. The increase was largely from additional funds advanced to one commercial and industrial loan relationship during the third quarter of 2016. The Company had 82% of its TDR's performing according to their modified terms at September 30, 2016, as compared to 81% at December 31, 2015. The Company's specific allocations in reserves to customers whose loan terms have been modified in TDR’s totaled $553 at September 30, 2016, as compared to $1,669 in reserves at December 31, 2015. At September 30, 2016, the Company had $1,292 in commitments to lend additional amounts to customers with outstanding loans that are classified as TDR’s, as compared to $995 at December 31, 2015. There were no TDR loan modifications during the three months ended September 30, 2016. The following table presents the pre- and post-modification balances of TDR loan modifications by class of loans that occurred during the three months ended September 30, 2015:
|  | TDR’s Performing to Modified Terms |  |  | TDR’s Not Performing to Modified Terms |
Three months ended September 30, 2015 |  | Pre- Modification Recorded Investment |  |  | Post- Modification Recorded Investment |  |  | Pre- Modification Recorded Investment |  |  | Post- Modification Recorded Investment |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Maturity extension at lower stated rate than market rate |  | $ | 1,025 |  |  | $ | 1,025 |  |  | $ | ---- |  |  | $ | ---- |
Total TDR’s |  | $ | 1,025 |  |  | $ | 1,025 |  |  | $ | ---- |  |  | $ | ---- |
The following table presents the pre- and post-modification balances of TDR loan modifications by class of loans that occurred during the nine months ended September 30, 2016 and 2015:
|  | TDR’s Performing to Modified Terms |  |  | TDR’s Not Performing to Modified Terms |
Nine months ended September 30, 2016 |  | Pre- Modification Recorded Investment |  |  | Post- Modification Recorded Investment |  |  | Pre- Modification Recorded Investment |  |  | Post- Modification Recorded Investment |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonowner-occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest only payments |  | $ | ---- |  |  | $ | ---- |  |  | $ | 226 |  |  | $ | 226 |
Credit extension at lower stated rate than market rate |  |  | 574 |  |  |  | 574 |  |  |  | ---- |  |  |  | ---- |
Total TDR’s |  | $ | 574 |  |  | $ | 574 |  |  | $ | 226 |  |  | $ | 226 |
|  | TDR’s Performing to Modified Terms |  |  | TDR’s Not Performing to Modified Terms |
Nine months ended September 30, 2015 |  | Pre- Modification Recorded Investment |  |  | Post- Modification Recorded Investment |  |  | Pre- Modification Recorded Investment |  |  | Post- Modification Recorded Investment |
Residential real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest only payments |  | $ | 495 |  |  | $ | 495 |  |  | $ | ---- |  |  | $ | ---- |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Maturity extension at lower stated rate than market rate |  |  | 1,025 |  |  |  | 1,025 |  |  |  | ---- |  |  |  | ---- |
Total TDR’s |  | $ | 1,520 |  |  | $ | 1,520 |  |  | $ | ---- |  |  | $ | ---- |
During the third quarter of 2016, the Company placed one commercial real estate TDR totaling $226 on nonaccrual status. The borrower continues to experience financial difficulty and the Company has started the foreclosure process. The Company reviewed the loan’s collateral during the third quarter and identified $11 in collateral impairment, which resulted in a partial charge-off of principal. There were no specific allocations of the allowance for loan losses recorded on the impaired TDR loan at September 30, 2016. All of the Company’s loans that were restructured during the nine months ended September 30, 2015 were performing in accordance with their modified terms. Excluding the commercial real estate loan of $226 previously mentioned, there were no other TDR’s described above at September 30, 2016 and 2015 that experienced any payment defaults within twelve months following their loan modification. A default is considered to have occurred once the TDR is past due 90 days or more or it has been placed on nonaccrual. TDR loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The loans modified during the nine months ended September 30, 2016 increased the provision expense and the allowance for loan losses by $11. As of September 30, 2016, the Company had no allocation of reserves to customers whose loan terms were modified during the first nine months of 2016. The loans modified during the nine months ended September 30, 2015 had no impact on the provision expense or the allowance for loan losses. As of September 30, 2015, the Company had no allocation of reserves to customers whose loan terms were modified during the first nine months of 2015. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. These risk categories are represented by a loan grading scale from 1 through 10. The Company analyzes loans individually with a higher credit risk rating and groups these loans into categories called “criticized” and ”classified” assets. The Company considers its criticized assets to be loans that are graded 8 and its classified assets to be loans that are graded 9 through 10. The Company’s risk categories are reviewed at least annually on loans that have aggregate borrowing amounts that meet or exceed $500. The Company uses the following definitions for its criticized loan risk ratings:
Special Mention (Loan Grade 8). Loans classified as special mention indicate considerable risk due to deterioration of repayment (in the earliest stages) due to potential weak primary repayment source, or payment delinquency. These loans will be under constant supervision, are not classified and do not expose the institution to sufficient risks to warrant classification. These deficiencies should be correctable within the normal course of business, although significant changes in company structure or policy may be necessary to correct the deficiencies. These loans are considered bankable assets with no apparent loss of principal or interest envisioned. The perceived risk in continued lending is considered to have increased beyond the level where such loans would normally be granted. Credits that are defined as a troubled debt restructuring should be graded no higher than special mention until they have been reported as performing over one year after restructuring.
The Company uses the following definitions for its classified loan risk ratings:
Substandard (Loan Grade 9). Loans classified as substandard represent very high risk, serious delinquency, nonaccrual, or unacceptable credit. Repayment through the primary source of repayment is in jeopardy due to the existence of one or more well defined weaknesses and the collateral pledged may inadequately protect collection of the loans. Loss of principal is not likely if weaknesses are corrected, although financial statements normally reveal significant weakness. Loans are still considered collectible, although loss of principal is more likely than with special mention loan grade 8 loans. Collateral liquidation considered likely to satisfy debt.
Doubtful (Loan Grade 10). Loans classified as doubtful display a high probability of loss, although the amount of actual loss at the time of classification is undetermined. This should be a temporary category until such time that actual loss can be identified, or improvements made to reduce the seriousness of the classification. These loans exhibit all substandard characteristics with the addition that weaknesses make collection or liquidation in full highly questionable and improbable. This classification consists of loans where the possibility of loss is high after collateral liquidation based upon existing facts, market conditions, and value. Loss is deferred until certain important and reasonable specific pending factors which may strengthen the credit can be more accurately determined. These factors may include proposed acquisitions, liquidation procedures, capital injection, receipt of additional collateral, mergers, or refinancing plans. A doubtful classification for an entire credit should be avoided when collection of a specific portion appears highly probable with the adequately secured portion graded substandard.
Criticized and classified loans will mostly consist of commercial and industrial and commercial real estate loans. The Company considers its loans that do not meet the criteria for a criticized and classified asset rating as pass rated loans, which will include loans graded from 1 (Prime) to 7 (Watch). All commercial loans are categorized into a risk category either at the time of origination or reevaluation date. As of September 30, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of commercial loans by class of loans was as follows:
September 30, 2016 |  | Pass |  |  | Criticized |  |  | Classified |  |  | Total |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  | $ | 72,943 |  |  | $ | 370 |  |  | $ | 8,891 |  |  | $ | 82,204 |
Nonowner-occupied |  |  | 88,613 |  |  |  | 367 |  |  |  | 9,943 |  |  |  | 98,923 |
Construction |  |  | 33,951 |  |  |  | ---- |  |  |  | 543 |  |  |  | 34,494 |
Commercial and industrial |  |  | 94,011 |  |  |  | ---- |  |  |  | 3,181 |  |  |  | 97,192 |
Total |  | $ | 289,518 |  |  | $ | 737 |  |  | $ | 22,558 |  |  | $ | 312,813 |
December 31, 2015 |  | Pass |  |  | Criticized |  |  | Classified |  |  | Total |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  | $ | 62,287 |  |  | $ | 6,738 |  |  | $ | 4,433 |  |  | $ | 73,458 |
Nonowner-occupied |  |  | 61,577 |  |  |  | 6,305 |  |  |  | 4,120 |  |  |  | 72,002 |
Construction |  |  | 23,080 |  |  |  | ---- |  |  |  | 772 |  |  |  | 23,852 |
Commercial and industrial |  |  | 70,852 |  |  |  | 5,232 |  |  |  | 5,852 |  |  |  | 81,936 |
Total |  | $ | 217,796 |  |  | $ | 18,275 |  |  | $ | 15,177 |  |  | $ | 251,248 |
The Company also obtains the credit scores of its borrowers upon origination (if available by the credit bureau), but the scores are not updated. The Company focuses mostly on the performance and repayment ability of the borrower as an indicator of credit risk and does not consider a borrower's credit score to be a significant influence in the determination of a loan's credit risk grading. For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment of residential and consumer loans by class of loans based on repayment activity as of September 30, 2016 and December 31, 2015:
September 30, 2016 |  | Consumer |  |  |  |  |  |  |  |  |
|  | Automobile |  |  | Home Equity |  |  | Other |  |  | Residential Real Estate |  |  | Total |
Performing |  | $ | 58,290 |  |  | $ | 20,124 |  |  | $ | 56,792 |  |  | $ | 269,796 |  |  | $ | 405,002 |
Nonperforming |  |  | 69 |  |  |  | 35 |  |  |  | 129 |  |  |  | 3,539 |  |  |  | 3,772 |
Total |  | $ | 58,359 |  |  | $ | 20,159 |  |  | $ | 56,921 |  |  | $ | 273,335 |  |  | $ | 408,774 |
December 31, 2015 |  | Consumer |  |  |  |  |  |  |  |  |
|  | Automobile |  |  | Home Equity |  |  | Other |  |  | Residential Real Estate |  |  | Total |
Performing |  | $ | 44,521 |  |  | $ | 20,745 |  |  | $ | 45,218 |  |  | $ | 221,807 |  |  | $ | 332,291 |
Nonperforming |  |  | 45 |  |  |  | 96 |  |  |  | 4 |  |  |  | 2,068 |  |  |  | 2,213 |
Total |  | $ | 44,566 |  |  | $ | 20,841 |  |  | $ | 45,222 |  |  | $ | 223,875 |  |  | $ | 334,504 |
The Company, through its subsidiaries, originates residential, consumer, and commercial loans to customers located primarily in the southeastern areas of Ohio as well as the western counties of West Virginia. Approximately 5.09% of total loans were unsecured at September 30, 2016, down from 6.06% at December 31, 2015.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66008989&loc=d3e5066-111524 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(4)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-04(6)) -URI http://asc.fasb.org/extlink&oid=6488278&loc=d3e603758-122996 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(3)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=66008989&loc=d3e5162-111524 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03(a)(5)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(7)) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=66008989&loc=d3e5074-111524 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration