Loans (Tables)

9 Months Ended

Sep. 30, 2014

Recorded investment in loans by portfolio segment



	September 30,		December 31,
	2014		2013

Commercial	$	49,773	$	37,526
Real estate:
Single-family residential		40,477		32,219
Multi-family residential		29,881		32,197
Commercial		94,314		83,752
Construction		20,259		11,465
Consumer:
Home equity lines of credit		16,466		14,851
Other		3,254		860
Subtotal		254,424		212,870
Less: ALLL		(6,256)		(5,729)
Loans, net	$	248,168	$	207,141

Activity in ALLL by portfolio segment

The following table presents the activity in the ALLL by portfolio segment for the three and nine months ended September 30, 2014:



	Three months ended September 30, 2014
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total

Beginning balance	$	1,605	$	196	$	1,211	$	2,231	$	474	$	113	$	41	$	5,871
Addition to (reduction in) provision for loan losses		174		179		(147)		(88)		(103)		49		11		75
Charge-offs		(18)		-		-		-		-		-		-		(18)
Recoveries		-		1		-		320		-		7		-		328
Ending balance	$	1,761	$	376	$	1,064	$	2,463	$	371	$	169	$	52	$	6,256



	Nine months ended September 30, 2014
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total

Beginning balance	$	1,759	$	120	$	1,262	$	2,325	$	119	$	139	$	5	$	5,729
Addition to (reduction in) provision for loan losses		17		254		(198)		(188)		252		21		45		203
Charge-offs		(18)		-		-		(2)		-		(9)		-		(29)
Recoveries		3		2		-		328		-		18		2		353
Ending balance	$	1,761	$	376	$	1,064	$	2,463	$	371	$	169	$	52	$	6,256

The following table presents the activity in the ALLL by portfolio segment for the three and nine months ended September 30, 2013:



	Three months ended September 30, 2013
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total

Beginning balance	$	1,449	$	368	$	1,730	$	2,157	$	19	$	331	$	11	$	6,065
Addition to (reduction in) provision for loan losses		159		(93)		19		44		62		(113)		(2)		76
Charge-offs		-		-		-		-		-		-		-		-
Recoveries		9		1		1		4		-		13		2		30
Ending balance	$	1,617	$	276	$	1,750	$	2,205	$	81	$	231	$	11	$	6,171



	Nine months ended September 30, 2013
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total

Beginning balance	$	1,311	$	332	$	1,396	$	1,946	$	-	$	241	$	11	$	5,237
Addition to (reduction in) provision for loan losses		271		(59)		267		197		81		(11)		(20)		726
Charge-offs		-		-		-		-		-		(17)		-		(17)
Recoveries		35		3		87		62		-		18		20		225
Ending balance	$	1,617	$	276	$	1,750	$	2,205	$	81	$	231	$	11	$	6,171

Balance in ALLL and recorded investment in loans by portfolio segment and based on impairment method

The following table presents the balance in the ALLL and the recorded investment in loans by portfolio segment and based on the impairment method as of September 30, 2014:



			Real Estate								Consumer
	Commercial		Single- family		Multi- family		Commercial		Construction		Home Equity lines of credit		Other		Total

ALLL:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	410	$	1	$	305	$	102	$	-	$	-	$	-	$	818
Collectively evaluated for impairment		1,351		375		759		2,361		371		169		52		5,438
Total ending allowance balance	$	1,761	$	376	$	1,064	$	2,463	$	371	$	169	$	52	$	6,256

Loans:
Individually evaluated for impairment	$	865	$	302	$	1,658	$	3,609	$	-	$	-	$	-	$	6,434
Collectively evaluated for impairment		48,908		40,175		28,223		90,705		20,259		16,466		3,254		247,990
Total ending loan balance	$	49,773	$	40,477	$	29,881	$	94,314	$	20,259	$	16,466	$	3,254	$	254,424

The following table presents the balance in the ALLL and the recorded investment in loans by portfolio segment and based on the impairment method as of December 31, 2013:



			Real Estate								Consumer
	Commercial		Single- family		Multi- family		Commercial		Construction		Home Equity lines of credit		Other		Total
ALLL:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	532	$	-	$	402	$	191	$	-	$	-	$	-	$	1,125
Collectively evaluated for impairment		1,227		120		860		2,134		119		139		5		4,604
Total ending allowance balance	$	1,759	$	120	$	1,262	$	2,325	$	119	$	139	$	5	$	5,729

Loans:
Individually evaluated for impairment		992	$	317	$	1,759	$	5,845	$	-	$	-	$	-	$	8,913
Collectively evaluated for impairment		36,534		31,902		30,438		77,907		11,465		14,851		860		203,957
Total ending loan balance	$	37,526	$	32,219	$	32,197	$	83,752	$	11,465	$	14,851	$	860	$	212,870

Individually evaluated for impairment by class of loans

The following table presents loans individually evaluated for impairment by class of loans at September 30, 2014. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs and includes accrued interest. The table presents accrual basis interest income recognized during the three and nine months ended September 30, 2014. Cash payments of interest during the three and nine months ended September 30, 2014 totaled $52 and $157.


							Three months ended				Nine months ended
	As of September 30, 2014						September 30, 2014				September 30, 2014
	Unpaid Principal Balance		Recorded Investment		ALLL Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	135	$	121	$	-	$	121	$	-	$	121	$	-
Real estate:
Single-family residential		339		177		-		178		-		181		-
Multi-family residential		-		-		-		-		-		-		-
Commercial:
Non-owner occupied		590		490		-		495		-		508		-
Owner occupied		718		197		-		201		-		215		-
Land		177		151		-		152		2		-		7
Total with no allowance recorded		1,959		1,136		-		1,147		2		1,025		7

With an allowance recorded:
Commercial		744		744		410		750		6		783		17
Real estate:
Single-family residential		125		125		1		125		2		125		5
Multi-family residential		1,658		1,658		305		1,670		-		1,703		3
Commercial:
Non-owner occupied		2,087		2,087		57		2,092		33		2,107		100
Owner occupied		385		385		10		386		6		390		16
Land		318		299		35		300		3		593		8
Total with an allowance recorded		5,317		5,298		818		5,323		50		5,701		149
Total	$	7,276	$	6,434	$	818	$	6,470	$	52	$	6,726	$	156

The following table presents loans individually evaluated for impairment by class of loans at December 31, 2013. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs and includes accrued interest. The table presents accrual basis interest income recognized during the three and nine months ended September 30, 2013. Cash payments of interest during the three and nine months ended September 30, 2013 totaled $54 and $169, respectively.


							Three months ended				Nine months ended
	As of December 31, 2013						September 30, 2013				September 30, 2013
	Unpaid Principal Balance		Recorded Investment		ALLL Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	135	$	120	$	-	$	248	$	-	$	297	$	-
Real estate:
Single-family residential		352		191		-		-		-		-		-
Multi-family residential		-		-		-		178		-		187		-
Commercial:
Non-owner occupied		2,022		1,453		-		1,496		-		1,905		-
Owner occupied		2,021		1,070		-		1,370		-		1,418		-
Land		-		-		-		-		-		-		-
Total with no allowance recorded		4,530		2,834		-		3,292		-		3,807		-

With an allowance recorded:
Commercial		872		872		532		793		7		831		20
Real estate:
Single-family residential		126		126		-		477		2		478		6
Multi-family residential		1,759		1,759		402		1,866		1		1,903		3
Commercial:
Non-owner occupied		2,158		2,158		46		2,177		35		2,199		104
Owner occupied		397		397		7		162		6		163		18
Land		812		767		138		368		5		377		17
Total with an allowance recorded		6,124		6,079		1,125		5,843		56		5,951		168
Total	$	10,654	$	8,913	$	1,125	$	9,135	$	56	$	9,758	$	168

Recorded investment in nonaccrual loans by class of loans




	September 30, 2014		December 31, 2013
Loans past due over 90 days still on accrual:
Real estate:
Commercial:
Non-owner occupied	$	187	$	-
Total over 90 days still on accrual loans		187		-
Nonaccrual loans:
Commercial		506		563
Real estate:
Single-family residential		570		479
Multi-family residential		1,604		1,701
Commercial:
Non-owner occupied		490		1,453
Owner occupied		197		1,070
Land		128		420
Consumer:
Home equity lines of credit:
Originated for portfolio		51		52
Total nonaccrual		3,546		5,738
Total nonaccrual and nonperforming loans	$	3,733	$	5,738

Aging of recorded investment in past due loans by class of loans

The following table presents the aging of the recorded investment in past due loans by class of loans as of September 30, 2014:


	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans Not > 90 days Past Due

Commercial	$	-	$	-	$	121	$	121	$	49,652	$	385
Real estate:
Single-family residential		1,161		13		299		1,473		39,004		271
Multi-family residential		-		-		-		-		29,881		1,604
Commercial:
Non-owner occupied		379		-		187		566		51,041		490
Owner occupied		-		-		-		-		37,192		197
Land		-		-		128		128		5,387		-
Construction		-		-		-		-		20,259		-
Consumer:
Home equity lines of credit:
Originated for portfolio		51		-		-		51		14,856		51
Purchased for portfolio		-		120		-		120		1,439		-
Other		42		-		-		42		3,212		-
Total	$	1,633	$	133	$	735	$	2,501	$	251,923	$	2,998

The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 2013:



	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Nonaccrual Loans Not > 90 days Past Due

Commercial	$	-	$	-	$	121	$	121	$	37,405	$	442
Real estate:
Single-family residential		352		268		247		867		31,352		232
Multi-family residential		-		-		-		-		32,197		1,701
Commercial:
Non-owner occupied		-		-		923		923		42,199		530
Owner occupied		-		-		-		-		35,202		1,070
Land		-		-		420		420		5,008		-
Construction		-		-		-		-		11,465		-
Consumer:
Home equity lines of credit:
Originated for portfolio		52		-		-		52		12,930		52
Purchased for portfolio		123		-		-		123		1,746		-
Other		2		11		-		13		847		-
Total	$	529	$	279	$	1,711	$	2,519	$	210,351	$	4,027

Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods




	September 30, 2014		December 31, 2013
Commercial	$	385	$	442
Real estate:
Single-family residential		177		190
Multi-family residential		1,604		1,701
Commercial:
Non-owner occupied		-		-
Owner occupied		197		238
Total	$	2,363	$	2,571

Financing Receivable Credit Quality Indicators

The recorded investment in loans by risk category and by class of loans as of September 30, 2014 and based on the most recent analysis performed follows. There were no loans rated doubtful at September 30, 2014.


	Not Rated		Pass		Special Mention		Substandard		Total

Commercial	$	160	$	48,458	$	473	$	682	$	49,773
Real estate:
Single-family residential		39,862		-		-		615		40,477
Multi-family residential		-		27,469		-		2,412		29,881
Commercial:
Non-owner occupied		143		46,043		120		5,301		51,607
Owner occupied		-		34,620		1,530		1,042		37,192
Land		79		2,502		-		2,934		5,515
Construction		8,760		11,499		-		-		20,259
Consumer:
Home equity lines of credit:
Originated for portfolio		14,756		-		-		151		14,907
Purchased for portfolio		1,078		-		317		164		1,559
Other		3,254		-		-		-		3,254
	$	68,092	$	170,591	$	2,440	$	13,301	$	254,424

The recorded investment in loans by risk category and by class of loans as of December 31, 2013 follows. There were no loans rated doubtful at December 31, 2013.



	Not Rated		Pass		Special Mention		Substandard		Total

Commercial	$	228	$	35,424	$	921	$	953	$	37,526
Real estate:
Single-family residential		31,685		-		-		534		32,219
Multi-family residential		-		29,667		-		2,530		32,197
Commercial:
Non-owner occupied		3,170		34,834		556		4,561		43,121
Owner occupied		-		31,489		1,045		2,669		35,203
Land		87		2,023		-		3,318		5,428
Construction		2,115		9,350		-		-		11,465
Consumer:
Home equity lines of credit:
Originated for portfolio		12,828		-		-		154		12,982
Purchased for portfolio		1,285		-		414		170		1,869
Other		860		-		-		-		860
	$	52,258	$	142,787	$	2,936	$	14,889	$	212,870