Loans And Leases (Tables)

6 Months Ended

Jun. 30, 2018

Recorded Investment In Loans By Portfolio Segment




	June 30, 2018		December 31, 2017
	( unaudited)
Commercial (1)	$	116,858	$	101,975
Real estate:
Single-family residential		104,195		95,578
Multi-family residential		45,907		35,665
Commercial		135,002		111,866
Construction		45,069		42,862
Consumer:
Home equity lines of credit		24,499		25,054
Other		6,008		376
Subtotal		477,538		413,376
Less: ALLL		(6,981)		(6,970)
Loans and leases, net	$	470,557	$	406,406

(1)

Includes $5,708 and $6,008 of commercial leases at June 30, 2018 and December 31, 2017, respectively.

Activity In ALLL By Portfolio Segment



	Three months ended June 30, 2018 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	1,869	$	1,039	$	687	$	2,139	$	614	$	521	$	107	$	6,976
Addition to (reduction in) provision for loan losses		20		-		10		10		-		(40)		-		-
Charge-offs		-		-		-		-		-		-		-		-
Recoveries		-		-		-		-		-		5		-		5
Ending balance	$	1,889	$	1,039	$	697	$	2,149	$	614	$	486	$	107	$	6,981



	Six months ended June 30, 2018 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	1,984	$	912	$	660	$	2,143	$	672	$	597	$	2	$	6,970
Addition to (reduction in) provision for loan losses		(97)		131		37		6		(58)		(124)		105		-
Charge-offs		-		(6)		-		-		-		-		-		(6)
Recoveries		2		2		-		-		-		13		-		17
Ending balance	$	1,889	$	1,039	$	697	$	2,149	$	614	$	486	$	107	$	6,981

The following table presents the activity in the ALLL by portfolio segment for the three and six months ended June 30, 2017:



	Three months ended June 30, 2017 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	1,768	$	866	$	629	$	2,491	$	654	$	504	$	30	$	6,942
Addition to (reduction in) provision for loan losses		-		89		96		(126)		(68)		37		(28)		-
Charge-offs		-		-		-		-		-		-		-		-
Recoveries		2		1		-		-		-		13		-		16
Ending balance	$	1,770	$	956	$	725	$	2,365	$	586	$	554	$	2	$	6,958



	Six months ended June 30, 2017 (unaudited)
			Real Estate								Consumer
	Commercial		Single-family		Multi-family		Commercial		Construction		Home Equity lines of credit		Other		Total
Beginning balance	$	1,647	$	735	$	716	$	2,727	$	580	$	486	$	34	$	6,925
Addition to (reduction in) provision for loan losses		121		204		9		(362)		6		54		(32)		-
Charge-offs		-		-		-		-		-		-		-		-
Recoveries		2		17		-		-		-		14		-		33
Ending balance	$	1,770	$	956	$	725	$	2,365	$	586	$	554	$	2	$	6,958

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 and leases by portfolio segment and based on the impairment method as of June 30, 2018 (unaudited):



			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	$	-	$	-	$	-	$	27	$	-	$	-	$	-	$	27
Collectively evaluated for impairment		1,889		1,039		697		2,122		614		486		107		6,954
Total ending allowance balance	$	1,889	$	1,039	$	697	$	2,149	$	614	$	486	$	107	$	6,981

Loans:
Individually evaluated for impairment	$	207	$	113	$	-	$	3,160	$	-	$	-	$	-	$	3,480
Collectively evaluated for impairment		116,651		104,082		45,907		131,842		45,069		24,499		6,008		474,058
Total ending loan balance	$	116,858	$	104,195	$	45,907	$	135,002	$	45,069	$	24,499	$	6,008	$	477,538

The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on the impairment method as of December 31, 2017:



			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	$	-	$	-	$	-	$	26	$	-	$	-	$	-	$	26
Collectively evaluated for impairment		1,984		912		660		2,117		672		597		2		6,944
Total ending allowance balance	$	1,984	$	912	$	660	$	2,143	$	672	$	597	$	2	$	6,970

Loans:
Individually evaluated for impairment	$	277	$	116	$	-	$	3,183	$	-	$	-	$	-	$	3,576
Collectively evaluated for impairment		101,698		95,462		35,665		108,683		42,862		25,054		376		409,800
Total ending loan balance	$	101,975	$	95,578	$	35,665	$	111,866	$	42,862	$	25,054	$	376	$	413,376

Individually Evaluated For Impairment By Class Of Loans

The following table presents loans individually evaluated for impairment by class of loans as of and for the period ended June 30, 2018. 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, and deferred loan fees and costs. The table presents accrual basis interest income recognized during the three and six months ended June 30, 2018. Cash payments of interest on these loans during the three and six months ended June 30, 2018 totaled $48 and $99, respectively.


							Three months ended				Six months ended
	As of June 30, 2018						June 30, 2018				June 30, 2018
	(unaudited)						(unaudited)				(unaudited)
	Unpaid Principal Balance		Recorded Investment		ALLL Allocated		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Real estate:
Commercial:
Owner occupied	$	385	$	131	$	-	$	132	$	5		133		10
Total with no allowance recorded		385		131		-		132		5		133		10

With an allowance recorded:
Commercial (1)		207		207		-		208		1		218		3
Real estate:
Single-family residential (1)		113		113		-		114		2		115		3
Multi-family residential (1)		-		-		-		-		-		-		-
Commercial:
Non-owner occupied		2,844		2,844		25		2,844		39		2,845		78
Owner occupied		185		185		2		186		2		187		4
Total with an allowance recorded		3,349		3,349		27		3,352		44		3,365		88
Total	$	3,734	$	3,480	$	27	$	3,484	$	49	$	3,498	$	98

(1)

Allowance recorded is less than $1 resulting in rounding to zero.

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2017. 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, and deferred loan fees and costs. The table presents accrual basis interest income recognized during the three and six months ended June 30, 2017. Cash payments of interest during the three and six months ended June 30, 2017 totaled $59 and $114, respectively.


							Three months ended				Six months ended
	As of December 31, 2017						June 30, 2017				June 30, 2017
							(unaudited)				(unaudited)
	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	$		$		$		$	2	$	-	$	5	$	-
Real estate:
Commercial:
Owner occupied		391		137		-		143		6		145		14
Total with no allowance recorded		391		137		-		145		6		150		14

With an allowance recorded:
Commercial		277		277		-		342		3		348		6
Real estate:
Single-family residential (1)		116		116		-		119		2		120		3
Multi-family residential		-		-		-		34		1		35		1
Commercial:
Non-owner occupied		2,856		2,856		24		3,004		45		3,009		78
Owner occupied		190		190		2		1,101		4		1,162		10
Total with an allowance recorded		3,439		3,439		26		4,600		55		4,674		98
Total	$	3,830	$	3,576	$	26	$	4,745	$	61	$	4,824	$	112

(1)

Allowance recorded is less than $1 resulting in rounding to zero.

Recorded Investment In Nonperforming Loans By Class Of Loans




	June 30, 2018		December 31, 2017
	(unaudited)
Loans past due over 90 days still on accrual	$	-	$	-
Nonaccrual loans:
Commercial		108		115
Real estate:
Single-family residential		187		253
Consumer:
Home equity lines of credit:
Purchased for portfolio		93		102
Total nonaccrual		388		470
Total nonaccrual and nonperforming loans	$	388	$	470

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 and leases by class of loans as of June 30, 2018 (unaudited):


	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	$	-	$	-	$	-	$	-	$	116,858	$	108
Real estate:
Single-family residential		1,456		21		33		1,510		102,685		155
Multi-family residential		-		-		-		-		45,907		-
Commercial:
Non-owner occupied		-		-		-		-		85,335		-
Owner occupied		-		-		-		-		41,697		-
Land		-		-		-		-		7,970		-
Construction		-		-		-		-		45,069		-
Consumer:
Home equity lines of credit:
Originated for portfolio		293		101		-		394		23,662		-
Purchased for portfolio		34		-		-		34		409		93
Other		-		-		-		-		6,008		-
Total	$	1,783	$	122	$	33	$	1,938	$	475,600	$	356

The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of December 31, 2017:



	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	$	-	$	-	$	-	$	-	$	101,975	$	115
Real estate:
Single-family residential		1,610		27		104		1,741		93,837		149
Multi-family residential		-		-		-		-		35,665		-
Commercial:
Non-owner occupied		-		-		-		-		67,792		-
Owner occupied		-		-		-		-		38,787		-
Land		-		-		-		-		5,287		-
Construction		-		-		-		-		42,862		-
Consumer:
Home equity lines of credit:
Originated for portfolio		-		-		-		-		24,592		-
Purchased for portfolio		-		-		102		102		360		-
Other		24		-		-		24		352		-
Total	$	1,634	$	27	$	206	$	1,867	$	411,509	$	264

Loans Modified As TDRs By Class Of Loans




	June 30, 2018		December 31, 2017
	(unaudited)
Commercial	$	108	$	115
Total	$	108	$	115

Recorded Investment In Loans By Risk Category And Class Of Loans

The recorded investment in loans and leases by risk category and by class of loans and leases as of June 30, 2018 and based on the most recent analysis performed follows. There were no loans or leases rated doubtful at June 30, 2018.


(unaudited)	Not Rated		Pass		Special Mention		Substandard		Total
Commercial	$	-	$	114,096	$	2,555	$	207	$	116,858
Real estate:
Single-family residential		104,005		-		-		190		104,195
Multi-family residential		-		45,304		445		158		45,907
Commercial:
Non-owner occupied		79		80,050		4,365		841		85,335
Owner occupied		-		40,398		983		316		41,697
Land		-		7,970		-		-		7,970
Construction		6,678		38,391		-		-		45,069
Consumer:
Home equity lines of credit:
Originated for portfolio		23,982		-		-		73		24,055
Purchased for portfolio		351		-		-		93		444
Other		6,008		-		-		-		6,008
	$	141,103	$	326,209	$	8,348	$	1,878	$	477,538

The recorded investment in loans and leases by risk category and by class of loans and leases as of December 31, 2017 follows. There were no loans or leases rated doubtful at December 31, 2017.



	Not Rated		Pass		Special Mention		Substandard		Total
Commercial	$	-	$	98,829	$	2,869	$	277	$	101,975
Real estate:
Single-family residential		95,317		-		-		261		95,578
Multi-family residential		-		35,036		466		163		35,665
Commercial:
Non-owner occupied		88		65,161		1,711		832		67,792
Owner occupied		-		37,453		1,008		326		38,787
Land		-		5,287		-		-		5,287
Construction		2,239		40,623		-		-		42,862
Consumer:
Home equity lines of credit:
Originated for portfolio		24,516		-		-		76		24,592
Purchased for portfolio		360		-		-		102		462
Other		376		-		-		-		376
	$	122,896	$	282,389	$	6,054	$	2,037	$	413,376

Components Of Net Investment In Direct Financing Leases


	June 30, 2018		December 31, 2017
	(unaudited)
Total minimum lease payments to be received (1)	$	6,442	$	6,838
Less: unearned income		(734)		(830)
Net investment in direct financing leases	$	5,708	$	6,008

(1)

There were no initial direct costs associated with these leases.

Summary Of Future Minimum Lease Payments Receivable


2018	$	397
2019		793
2020		793
2021		793
2022		793
Thereafter		2,873
	$	6,442