Bay Banks of Virginia (BAYK) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 01, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	BAYK
Entity Registrant Name	BAY BANKS OF VIRGINIA INC
Entity Central Index Key	1,034,594
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,774,856

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	[1]
ASSETS
Cash and due from banks	$ 5,280	$ 4,969
Interest-bearing deposits	6,343	15,330
Certificates of deposit	4,464	5,735
Federal funds sold	460	271
Securities available-for-sale, at fair value	52,563	54,090
Restricted securities	2,209	2,731
Loans receivable, net of allowance for loan losses of $3,741 and $4,223	364,822	343,323
Loans held for sale	481	270
Premises and equipment, net	11,021	11,646
Accrued interest receivable	1,241	1,318
Other real estate owned, net	2,764	1,870
Bank owned life insurance	9,792	7,595
Goodwill	2,808	2,808
Mortgage servicing rights	590	658
Other assets	3,436	3,682
Total assets	468,274	456,296
LIABILITIES
Noninterest-bearing deposits	74,615	65,842
Savings and interest-bearing demand deposits	175,448	166,628
Time deposits	127,912	127,388
Total deposits	377,975	359,858
Securities sold under repurchase agreements	12,984	7,161
Federal Home Loan Bank advances	25,000	40,000
Subordinated debt, net of issuance costs	6,856	6,844
Other liabilities	3,511	2,864
Total liabilities	426,326	416,727
SHAREHOLDERS' EQUITY
Common stock ($5 par value; authorized - 10,000,000 shares; outstanding - 4,774,856 and 4,774,856 shares, respectively)	23,874	23,874
Additional paid-in capital	2,828	2,812
Retained earnings	15,623	13,659
Accumulated other comprehensive loss, net	(377)	(776)
Total shareholders' equity	41,948	39,569
Total liabilities and shareholders' equity	$ 468,274	$ 456,296
[1]	Derived from Audited December 31, 2015 Financial Statements

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	[1]
Loans, allowance for loan losses	$ 3,741	$ 4,223
Common stock, par value	$ 5	$ 5
Common stock, authorized shares	10,000,000	10,000,000
Common stock, outstanding shares	4,774,856	4,774,856
[1]	Derived from Audited December 31, 2015 Financial Statements

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
INTEREST INCOME
Loans, including fees	$ 4,153	$ 3,810	$ 12,140	$ 11,200
Securities:
Taxable	233	144	651	402
Tax-exempt	123	102	394	276
Federal funds sold	1		2
Interest-bearing deposit accounts	25	9	52	30
Certificates of deposit	20	15	62	32
Total interest income	4,555	4,080	13,301	11,940
INTEREST EXPENSE
Deposits	648	643	1,934	1,729
Federal funds purchased	1		2
Securities sold under repurchase agreements	4	4	10	8
Subordinated debt	118	119	354	161
FHLB advances	118	87	360	259
Total interest expense	889	853	2,660	2,157
Net interest income	3,666	3,227	10,641	9,783
Provision for loan losses	259	84	407	354
Net interest income after provision for loan losses	3,407	3,143	10,234	9,429
NON-INTEREST INCOME
Income from fiduciary activities	253	197	696	589
Service charges and fees on deposit accounts	212	237	667	686
VISA-related fees	48	44	153	153
Non-deposit product income	83	77	263	324
Other service charges and fees	152	144	449	414
Secondary market lending income	165	171	465	409
Increase in cash surrender value of life insurance	73	62	197	187
Net gains on sale of securities available for sale	180	2	290	4
Other real estate losses	(6)	(167)	(94)	(247)
Net gains (losses) on the disposal of fixed assets		1		(6)
Other income	178	5	194	62
Total non-interest income	1,338	773	3,280	2,575
NON-INTEREST EXPENSES
Salaries and employee benefits	1,881	1,959	5,751	5,847
Occupancy expense	445	465	1,344	1,342
Software maintenance	152	175	494	465
Bank franchise tax	82	61	203	159
VISA expense	20	19	81	83
Telephone expense	30	35	96	101
FDIC assessments	96	71	280	200
Foreclosure property expense	11	15	40	36
Consulting expense	87	71	216	236
Other expense	761	714	2,376	2,377
Total non-interest expenses	3,565	3,585	10,881	10,846
Net income before income taxes	1,180	331	2,633	1,158
Income tax expense	326	50	669	202
Net income	$ 854	$ 281	$ 1,964	$ 956
Basic Earnings Per Share
Average basic shares outstanding	4,774,856	4,780,649	4,774,856	4,797,405
Earnings per share, basic	$ 0.18	$ 0.06	$ 0.41	$ 0.20
Diluted Earnings Per Share
Average diluted shares outstanding	4,797,521	4,796,008	4,793,147	4,811,129
Earnings per share, diluted	$ 0.18	$ 0.06	$ 0.41	$ 0.20

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net income	$ 854	$ 281	$ 1,964	$ 956
Unrealized gains (losses) on securities:
Unrealized holding gains arising during the period		403	895	140
Deferred tax expense		(136)	(305)	(47)
Reclassification of net securities gains recognized in net income	(180)	(2)	(290)	(4)
Deferred tax expense	62	0	99	1
Unrealized gains (losses) adjustment, net of tax	(118)	265	399	90
Total other comprehensive (loss) income	(118)	265	399	90
Comprehensive income	$ 736	$ 546	$ 2,363	$ 1,046

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands	Total		Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period at Dec. 31, 2015	$ 39,569	[1]	$ 23,874	$ 2,812	$ 13,659	$ (776)
Balance at beginning of period, Shares at Dec. 31, 2015	4,774,856	[1]	4,774,856
Net income	$ 1,964				1,964
Other comprehensive income	399					399
Stock-based compensation expense	16			16
Balance at end of period at Sep. 30, 2016	$ 41,948		$ 23,874	$ 2,828	$ 15,623	$ (377)
Balance at end of period, Shares at Sep. 30, 2016	4,774,856		4,774,856
[1]	Derived from Audited December 31, 2015 Financial Statements

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows From Operating Activities
Net income	$ 1,964	$ 956
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	791	727
Net amortization and accretion of securities	320	280
Amortization of subordinated debt issuance costs	12	5
Provision for loan losses	407	354
Stock compensation expense	16	17
Deferred tax benefit	(6)	(12)
Gain on securities available-for-sale	(290)	(4)
Increase in OREO valuation allowance	53	159
Loss on sale of other real estate	41	88
Loss on the disposal of fixed assets		6
Decrease (increase) in mortgage servicing rights	68	(46)
Loan originations for sale	(14,232)	(11,857)
Loan sales	14,378	10,887
Gain on sold loans	(357)	(212)
Increase in cash surrender value of life insurance	(197)	(187)
Decrease (increase) in accrued income and other assets	123	(296)
Increase in other liabilities	643	555
Net cash provided by operating activities	3,584	1,420
Cash Flows From Investing Activities
Proceeds from maturities and principal paydowns of available-for-sale securities	2,907	1,069
Proceeds from sales and calls of available-for-sale securities	14,582	4,819
Maturities of certificates of deposit	1,240	1,240
Purchases of available-for-sale securities and certificates of deposit	(15,356)	(18,561)
Purchase of life insurance	(2,000)
Sales of restricted securities	522	169
Increase in federal funds sold	(189)	(347)
Proceeds from the sale of VISA loan portfolio	1,301
Loan (originations) and principal collections, net	(24,283)	(35,050)
Proceeds from sale of other real estate	244	520
Purchases of premises and equipment	(168)	(1,111)
Net cash used in investing activities	(21,200)	(47,252)
Cash Flows From Financing Activities
Net increase in demand, savings, and other interest-bearing deposits	17,593	35,073
Net increase (decrease) in time deposits	524	(3,274)
Repurchase of common stock		(243)
Net increase in securities sold under repurchase agreements	5,823	4,479
Issuance of subordinated debt, net		6,834
Decrease in Federal Home Loan Bank advances	(15,000)	(5,000)
Net cash provided by financing activities	8,940	37,869
Net decrease in cash and due from banks	(8,676)	(7,963)
Cash and cash equivalents (including interest-earning deposits) at beginning of period	20,299	20,965
Cash and cash equivalents (including interest-earning deposits) at end of period	11,623	13,002
Cash paid for:
Interest	2,549	2,102
Income taxes	70	590
Non-cash investing and financing:
Unrealized gain (loss) on investment securities	605	136
Change in fair value of pension and post-retirement obligation	0	0
Loans transferred to other real estate owned	1,348	437
Loans originated to facilitate sale of OREO	116	118
Changes in deferred taxes resulting from OCI transactions	206	$ 90
Transfer of loans to held for sale	1,173
VISA Loan Portfolio
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sold loans	$ (150)

General

General	9 Months Ended
	Sep. 30, 2016
General	Note 1: General Bay Banks of Virginia, Inc. (the “Company”) owns 100% of the Bank of Lancaster (the “Bank”), 100% of Bay Trust Company, Inc. (the “Trust Company”) and 100% of Steptoes Holdings, LLC (“Steptoes Holdings”). The consolidated financial statements include the accounts of the Bank, the Trust Company, Steptoes Holdings and Bay Banks of Virginia, Inc. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and to the general practices within the banking industry. In management’s opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of the consolidated financial statements, have been included. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year or for any other interim periods. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current year presentations. The reclassifications had no effect on net income, net income per share or shareholders’ equity as previously reported.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Significant Accounting Policies	Note 2: Significant Accounting Policies Certificates of Deposit Prior to January 1, 2016, the Company included its investments in certificates of deposit on the consolidated balance sheets in securities available-for sale, at fair value. Effective January 1, 2016, the Company is presenting certificates of deposit separately on the consolidated balance sheets and removing them from the available-for-sale category. As of December 31, 2015, the unrealized gain related to the certificates of deposit included in securities available-for-sale was $31 thousand and the tax effected unrealized gain included in accumulated other comprehensive income was $20 thousand. The unrealized gain and related impact were reversed the first quarter of 2016. Loans The Company grants mortgage loans on real estate, commercial and industrial loans and consumer and other loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Company’s market areas. Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, and charge-offs. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment of the related loan yield over the contractual term of the loan, adjusted for early pay-offs, where applicable. The accrual of interest is generally discontinued at the time a loan is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Payments received for loans no longer accruing interest are applied to the unpaid principal balance. Loans greater than 90 days past due may remain on accrual status if the credit is well-secured and in process of collection. Personal loans are typically charged off no later than 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are charged off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual and past due policies are materially the same for all types of loans. All interest accrued but not collected for loans that are placed on non-accrual or charged off are reversed against interest income. Any subsequent interest received on these loans is accounted for on the cash basis or cost recovery method until qualifying for return to accrual. Generally, a loan is returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or it becomes well secured and in the process of collection. Allowance for loan losses (“ALL”) The ALL reflects management’s judgment of probable loan losses inherent in the portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter. To determine the total ALL, the Company estimates the reserves needed for each homogenous segment of the portfolio, plus any loans analyzed individually for impairment. Depending on the nature of each segment, considerations include historical loss experience, adverse situations that may affect a borrower’s ability to repay, credit scores, past due history, estimated value of any underlying collateral, prevailing local and national economic conditions, and internal policies and procedures including credit risk management and underwriting. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as conditions change. Management employs a risk rating system to evaluate and consistently categorize loan portfolio credit risk. Loans assigned risk rating grades include all commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250 thousand with chronic delinquency, and troubled debt restructures (“TDRs”). The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades are evaluated as new information becomes available for each borrowing relationship or at least quarterly. All other loans not specifically assigned a risk rating grade are monitored as a discrete pool of loans generally based on delinquency status. Risk rating categories are as follows: Pass Watch Special Mention Substandard Doubtful Loss The ALL consists of specific, general, and unallocated components. The specific component is determined by identifying impaired loans (as described below) then evaluating each one to calculate the amount of impairment. Impaired loans measured for impairment generally include: (1) non-accruing Special mention, Substandard and Doubtful loans in excess of $250,000; (2) Substandard and Doubtful loans in excess of $500,000; (3) Special Mention loans in excess of $500,000 if any of the loans in the relationship are more than 30 days past due or if the borrower has filed for bankruptcy; and (4) all TDRs. A specific allowance arises when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component collectively evaluates smaller commercial loans, residential mortgages and consumer loans, grouped into segments and classes. Historical loss experience is calculated and applied to each segment or class, then adjusted for qualitative factors. Qualitative factors include changes in local and national economic indicators, such as unemployment rates, interest rates, gross domestic product growth and real estate market trends; the level of past due and nonaccrual loans; risk ratings on individual loans; strength of credit policies and procedures; loan officer experience; borrower credit scores; and other intrinsic risks related to the types and geographic locations of loans. These qualitative adjustments reflect management’s judgment of risks inherent in the segments. An unallocated component is maintained if needed to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Changes in the allowance for loan losses and the related provision expense can materially affect net income. The specific component of the ALL calculation accounts for the loan loss reserve necessary on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Accrual of interest may or may not be discontinued for any given impaired loan. Impairment is measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Because large groups of smaller balance homogeneous loans are collectively evaluated for impairment, the Company does not generally separately identify smaller balance individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. The general component of the ALL calculation collectively evaluates groups of loans in segments or classes, as noted above. The segments are: (1) Mortgage loans on real estate; (2) Commercial and industrial loans; and (3) Consumer and other loans. The segment for Mortgage loans on real estate is disaggregated into the following classes: (1) Construction, land and land development; (2) Farmland; (3) Residential first mortgages; (4) Residential revolving and junior mortgages; (5) Commercial mortgages (non-owner-occupied); and (6) Commercial mortgages (owner-occupied). Loans in segment 1 are secured by real estate. Loans in segments 2 and 3 are secured by other types of collateral or are unsecured. A given segment or class may not reflect the purpose of a loan. For example, a business owner may provide his residence as collateral for a loan to his company, in which case the loan would be grouped in a residential mortgage class. Historical loss factors are calculated for the prior 20 quarters by segment and class, and then applied to the current balances in each segment and class. Finally, qualitative factors are applied to each segment and class. Construction and development loans carry risks that the project will not be finished according to schedule or according to budget and the value of the collateral, at any point in time, may be less than the principal amount of the loan. These loans also bear the risk that the general contractor may face financial pressure unrelated to the project. Loans secured by land, farmland and residential mortgages carry the risk of continued credit-worthiness of the borrower and changes in value of the underlying real estate collateral. Commercial mortgages and commercial and industrial loans carry risks associated with the profitable operation of a business and its related cash flows. Additionally, commercial and industrial loans carry risks associated with the value of collateral other than real estate which may depreciate over time. Consumer loans carry risks associated with the continuing credit-worthiness of the borrower and are more likely than real estate loans to be adversely affected by divorce, unemployment, personal illness or bankruptcy of an individual. Consumer loans secured by automobiles carry risks associated with rapidly depreciating collateral. Consumer loans have historically included credit cards, which are unsecured. The credit card portfolio was sold to an unaffiliated third party in the third quarter of 2016. The summation of the specific, general and unallocated components results in the total estimated ALL. Management may also include an unallocated component to cover uncertainties in the level of probable losses. This estimate is inherently subjective and actual losses could be greater or less than the estimates. Additions to the ALL are made by charges to earnings through the provision for loan losses. Charge-offs result from credit exposures deemed to be uncollectible and the ALL is reduced by these. Recoveries of previously charged off amounts are credited back to the ALL. Charge-off policies are materially the same for all types of loans. Mortgage servicing rights (“MSRs”) MSRs are included on the consolidated balance sheet and recorded at fair value on an ongoing basis. Changes in the fair value of the MSRs are recorded in the results of operations. A fair value analysis of MSRs is performed on a quarterly basis.

Amendments to the Accounting St

Amendments to the Accounting Standards Codification	9 Months Ended
	Sep. 30, 2016
Amendments to the Accounting Standards Codification	Note 3: Amendments to the Accounting Standards Codification In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Shares-Based Payment Accounting.” In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers

Securities

Securities	9 Months Ended
	Sep. 30, 2016
Securities	Note 4: Securities The aggregate amortized costs and fair values of the available-for-sale securities portfolio are as follows: (Dollars in thousands) Available-for-sale securities September 30, 2016 Amortized Gross Gross Fair Corporate bonds $ 6,945 $ 58 $ — $ 7,003 U.S. Government agencies 25,461 272 (56 ) 25,677 State and municipal obligations 19,363 541 (21 ) 19,883 $ 51,769 $ 871 $ (77 ) $ 52,563 Available-for-sale securities December 31, 2015 Amortized Gross Gross Fair Corporate bonds $ 3,950 $ — $ (5 ) $ 3,945 U.S. Government agencies 21,375 69 (156 ) 21,288 State and municipal obligations 28,599 313 (55 ) 28,857 $ 53,924 $ 382 $ (216 ) $ 54,090 Gross realized gains and gross realized losses on sales and calls of securities were as follows: For the three months ended For the nine months ended (Dollars in thousands) 2016 2015 2016 2015 Gross realized gains $ 180 $ 3 $ 300 $ 27 Gross realized losses — (1 ) (10 ) (23 ) Net realized gains (losses) $ 180 $ 2 $ 290 $ 4 Aggregate proceeds $ 4,984 $ 1,995 $ 14,582 $ 4,819 Average yields (taxable equivalent) on securities were 3.10% and 2.43% for the three months ended September 30, 2016 and 2015, respectively, and 3.07% and 2.45% for the nine months ended September 30, 2016 and 2015, respectively. Securities with a market value of $15.5 million and $8.6 million were pledged as collateral for repurchase agreements and for other purposes as required by law as of September 30, 2016 and December 31, 2015, respectively. As of September 30, 2016 and December 31, 2015, all the securities pledged to repurchase agreements were state and municipal obligations. All the repurchase agreements had remaining contractual maturities that were overnight and continuous. Securities sold under repurchase agreements were $13.0 million and $7.2 million as of September 30, 2016 and December 31, 2015, respectively, and included in liabilities on the consolidated balance sheets. The securities pledged to each agreement are reviewed daily and can be changed at the option of the Bank with minimal risk of loss due to fair value. Securities in an unrealized loss position at September 30, 2016 and December 31, 2015, by duration of the unrealized loss, are shown below. The unrealized loss positions were directly related to interest rate movements as there is minimal credit risk exposure in these investments. All agency securities, and states and municipal securities are investment grade or better and their losses are considered temporary. Management does not intend to sell the securities and does not expect to be required to sell the securities. Furthermore, all amortized cost bases are expected to be recovered. Bonds with unrealized loss positions at September 30, 2016 included 12 federal agencies and six municipals. Bonds with unrealized loss positions at December 31, 2015 included 24 federal agencies, one corporate bond and 17 municipals. The tables are shown below. (Dollars in thousands) Less than 12 months 12 months or more Total September 30, 2016 Fair Unrealized Fair Unrealized Fair Unrealized U.S. Government agencies $ 5,573 $ (43 ) $ 1,385 $ (13 ) $ 6,958 $ (56 ) States and municipal obligations 2,064 (21 ) — — 2,064 (21 ) Total temporarily impaired securities $ 7,637 $ (64 ) $ 1,385 $ (13 ) $ 9,022 $ (77 ) Less than 12 months 12 months or more Total December 31, 2015 Fair Unrealized Fair Unrealized Fair Unrealized Corporate bonds $ 495 $ (5 ) $ — $ — $ 495 $ (5 ) U.S. Government agencies 13,871 (141 ) 1,619 (15 ) 15,490 (156 ) States and municipal obligations 2,566 (17 ) 3,281 (38 ) 5,847 (55 ) Total temporarily impaired securities $ 16,932 $ (163 ) $ 4,900 $ (53 ) $ 21,832 $ (216 ) The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $1.5 million and $2.0 million at September 30, 2016 and December 31, 2015, respectively. The Company also had an investment in Federal Reserve Bank of Richmond (“FRB”) stock which totaled $565 thousand and $505 thousand at September 30, 2016 and December 31, 2015, respectively. The investments in both FHLB and FRB stock are required investments related to the Bank’s membership with the FHLB and FRB. These securities do not have a readily determinable fair value as their ownership is restricted, and they lack an active market for trading. Additionally, per charter provisions related to the FHLB and FRB stock, all repurchase transactions of such stock must occur at par. Accordingly, these securities are carried at cost, and are periodically evaluated for impairment. The Company’s determination as to whether its investment in FHLB and FRB stock is impaired is based on management’s assessment of the ultimate recoverability of its par value rather than recognizing temporary declines in its value. The determination of whether the decline affects the ultimate recoverability of the investments is influenced by available information regarding various factors. These factors include, among others, the significance of the decline in net assets of the issuing banks as compared to the capital stock amount reported by these banks, and the length of time a decline has persisted; commitments by such banks to make payments required by law or regulation and the level of such payments in relation to the operating performance of the issuing bank; and the overall liquidity position of the issuing bank. Based on its most recent analysis of publicly available information regarding the financial condition of the issuing banks, management concluded that no impairment existed in the carrying value of FHLB and FRB stock.

Loans

Loans	9 Months Ended
	Sep. 30, 2016
Loans	Note 5: Loans The following is a summary of the balances of loans: (Dollars in thousands) September 30, 2016 December 31, 2015 Mortgage loans on real estate: Construction, Land and Land Development $ 41,530 $ 42,129 Farmland 1,051 1,030 Commercial Mortgages (Non-Owner Occupied) 29,131 29,086 Commercial Mortgages (Owner Occupied) 45,504 43,956 Residential First Mortgages 185,373 164,405 Residential Revolving and Junior Mortgages 25,389 26,497 Commercial and Industrial loans 36,596 35,104 Consumer Loans 3,615 5,015 Total loans 368,189 347,222 Net unamortized deferred loan costs 374 324 Allowance for loan losses (3,741 ) (4,223 ) Loans, net $ 364,822 $ 343,323 The recorded investment in past due and non-accruing loans is shown in the following table. A loan past due by more than 90 days is generally placed on nonaccrual unless it is both well secured and in the process of collection. (Dollars in thousands) Loans Past Due and Nonaccruals 30-89 90 Days or More Past Due and Total Past Due and Total September 30, 2016 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Construction, Land and Land Development $ 62 $ 67 $ 627 $ 756 $ 40,774 $ 41,530 Farmland — — — — 1,051 1,051 Commercial Mortgages (Non-Owner Occupied) — — — — 29,131 29,131 Commercial Mortgages (Owner Occupied) 294 100 1,650 2,044 43,460 45,504 Residential First Mortgages 860 — 2,276 3,136 182,237 185,373 Residential Revolving and Junior Mortgages 12 — 213 225 25,164 25,389 Commercial and Industrial 19 11 92 122 36,474 36,596 Consumer Loans — — — — 3,615 3,615 Total $ 1,247 $ 178 $ 4,858 $ 6,283 $ 361,906 $ 368,189 Loans Past Due and Nonaccruals 30-89 90 Days or Total Past Total December 31, 2015 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Construction, Land and Land Development $ 93 $ — $ 672 $ 765 $ 41,364 $ 42,129 Farmland — — — — 1,030 1,030 Commercial Mortgages (Non-Owner Occupied) 264 — — 264 28,822 29,086 Commercial Mortgages (Owner Occupied) 133 — 2,350 2,483 41,473 43,956 Residential First Mortgages 1,304 — 2,841 4,145 160,260 164,405 Residential Revolving and Junior Mortgages 70 — 277 347 26,150 26,497 Commercial and Industrial 10 — 285 295 34,809 35,104 Consumer Loans 32 11 8 51 4,964 5,015 Total $ 1,906 $ 11 $ 6,433 $ 8,350 $ 338,872 $ 347,222 In July 2016, the Bank sold its VISA loan portfolio to an unaffiliated third party, recognizing a gain of $150 thousand on sale.

Allowance for Loan Losses

Allowance for Loan Losses	9 Months Ended
	Sep. 30, 2016
Allowance for Loan Losses	Note 6: Allowance for Loan Losses Loans Evaluated for Impairment Loan receivables evaluated for impairment individually and collectively by segment as of September 30, 2016 and December 31, 2015 are as follows: (Dollars in thousands) Mortgage Commercial Consumer As of September 30, 2016 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 10,426 $ 93 $ — $ 10,519 Collectively evaluated for impairment 317,552 36,503 3,615 357,670 Total Gross Loans $ 327,978 $ 36,596 $ 3,615 $ 368,189 Mortgage Commercial Loans and Consumer As of December 31, 2015 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 10,542 $ 284 $ — $ 10,826 Collectively evaluated for impairment 296,561 34,820 5,015 336,396 Total Gross Loans $ 307,103 $ 35,104 $ 5,015 $ 347,222 Allowance for Loan Losses The allowance for loan losses disaggregated based on loan receivables evaluated for impairment individually and collectively by segment as of September 30, 2016 and December 31, 2015 are as follows: Mortgage Commercial (Dollars in thousands) Loans and Consumer As of September 30, 2016 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 751 $ 92 $ — $ 843 Collectively evaluated for impairment 2,457 388 53 2,898 Total allowance for loan losses $ 3,208 $ 480 $ 53 $ 3,741 Mortgage Commercial Consumer As of December 31, 2015 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 1,256 $ 278 $ — $ 1,534 Collectively evaluated for impairment 2,246 321 122 2,689 Total allowance for loan losses $ 3,502 $ 599 $ 122 $ 4,223 A disaggregation and an analysis of the change in the allowance for loan losses by segment is shown below. Mortgage Commercial Loans on and Consumer (Dollars in thousands) Real Estate Industrial Loans Total For the Three Months Ended September 30, 2016 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,995 $ 435 $ 117 $ 3,547 Reclassification of allowanace related to sold loans — — (27 ) (27 ) (Charge-offs) (46 ) — (10 ) (56 ) Recoveries 15 — 3 18 Provision 244 45 (30 ) 259 Ending Balance $ 3,208 $ 480 $ 53 $ 3,741 Mortgage Commercial Loans on and Consumer Real Estate Industrial Loans Total For the Three Months Ended September 30, 2015 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,889 $ 420 $ 130 $ 3,439 (Charge-offs) (12 ) (132 ) (17 ) (161 ) Recoveries 6 — 6 12 Provision (69 ) 145 8 84 Ending Balance $ 2,814 $ 433 $ 127 $ 3,374 Mortgage Commercial Loans on and Consumer (Dollars in thousands) Real Estate Industrial Loans Total For the Nine Months Ended September 30, 2016 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 3,502 $ 599 $ 122 $ 4,223 Reclassification of allowance related to sold loans — — (27 ) (27 ) (Charge-offs) (702 ) (158 ) (41 ) (901 ) Recoveries 25 5 9 39 Provision 383 34 (10 ) 407 Ending Balance $ 3,208 $ 480 $ 53 $ 3,741 Mortgage Commercial Loans on and Consumer Real Estate Industrial Loans Total For the Nine Months Ended September 30, 2015 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,778 $ 323 $ 104 $ 3,205 (Charge-offs) (13 ) (132 ) (103 ) (248 ) Recoveries 16 — 47 63 Provision 33 242 79 354 Ending Balance $ 2,814 $ 433 $ 127 $ 3,374 Internal Risk Rating Grades Internal risk rating grades are generally assigned to commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250,000 with chronic delinquency, and TDRs, as shown in the following table. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades (refer to Note 2) are evaluated as new information becomes available for each borrowing relationship or at least quarterly. Construction, Commercial Commercial Land and Mortgages Mortgages Commercial (Dollars in thousands) Land (Non-Owner (Owner and As of September 30, 2016 Development Farmland Occupied) Occupied) Industrial Total Grade: Pass $ 34,042 $ 1,051 $ 24,398 $ 36,044 $ 35,026 $ 130,561 Watch 5,466 — 4,212 5,433 1,193 16,304 Special mention 182 — 273 1,467 126 2,048 Substandard 1,840 — 248 2,560 251 4,899 Doubtful — — — — — — Total $ 41,530 $ 1,051 $ 29,131 $ 45,504 $ 36,596 $ 153,812 Construction, Commercial Commercial Land and Mortgages Mortgages Commercial Land (Non-Owner (Owner and As of December 31, 2015 Development Farmland Occupied) Occupied) Industrial Total Grade: Pass $ 34,692 $ 1,030 $ 24,258 $ 33,023 $ 29,383 $ 122,386 Watch 5,337 — 4,564 4,968 5,202 20,071 Special mention 1,119 — — 2,687 148 3,954 Substandard 981 — 264 3,278 371 4,894 Doubtful — — — — — — Total $ 42,129 $ 1,030 $ 29,086 $ 43,956 $ 35,104 $ 151,305 Loans not assigned internal risk rating grades are comprised of smaller residential mortgages and smaller consumer loans. Payment activity of these loans is reviewed monthly by management. However, some of these loans are graded when the borrower’s total exposure to the Bank exceeds the limits noted above. Loans are considered to be nonperforming when they are delinquent by 90 days or more or non-accruing and credit risk is primarily evaluated by delinquency status, as shown in the table below. (Dollars in thousands) Residential Residential Revolving As of September 30, 2016 First and Junior Consumer PAYMENT ACTIVITY STATUS Mortgages (1) Mortgages (2) Loans (3) Total Performing $ 183,097 $ 25,176 $ 3,615 $ 211,888 Nonperforming 2,276 213 — 2,489 Total $ 185,373 $ 25,389 $ 3,615 $ 214,377 Residential Residential Revolving As of December 31, 2015 First and Junior Consumer PAYMENT ACTIVITY STATUS Mortgages (4) Mortgages (5) Loans (6) Total Performing $ 161,564 $ 26,220 $ 4,996 $ 192,780 Nonperforming 2,841 277 19 3,137 Total $ 164,405 $ 26,497 $ 5,015 $ 195,917 (1) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.3 million as of September 30, 2016. (2) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $265 thousand as of September 30, 2016. (3) No Consumer Loans had been assigned a risk rating grade of Substandard as of September 30, 2016. (4) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.9 million as of December 31, 2015. (5) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $372 thousand as of December 31, 2015. (6) No Consumer Loans had been assigned a risk rating grade of Substandard as of December 31, 2015. Impaired Loans The following tables show the Company’s recorded investment and the customers’ unpaid principal balances for impaired loans, with the associated allowance amount, if applicable, as of September 30, 2016 and December 31, 2015, along with the average recorded investment and interest income recognized for the three and nine months ended September 30, 2016 and 2015, respectively. (Dollars in thousands) IMPAIRED LOANS At September 30, 2016 At December 31, 2015 Recorded Customers’ Unpaid Related Recorded Customers’ Unpaid Related Investment Principal Balance Allowance Investment Principal Balance Allowance With no related allowance: Construction, land and land development $ 1,532 $ 1,540 $ — $ 445 $ 451 $ — Residential First Mortgages 2,520 2,552 — 3,130 3,166 — Residential Revolving and Junior Mortgages (1) 951 951 — 233 233 — Commercial Mortgages (Non-owner occupied) 248 248 — 264 264 — Commercial Mortgages (Owner occupied) 2,050 2,356 — 1,352 1,390 — Commercial and Industrial — — — — — — 7,301 7,647 — 5,424 5,504 — With an allowance recorded: Construction, land and land development 248 287 150 262 290 120 Residential First Mortgages 1,961 1,961 366 2,507 2,507 308 Residential Revolving and Junior Mortgages (1) 232 235 148 258 259 150 Commercial Mortgages (Non-owner occupied) — — — — — — Commercial Mortgages (Owner occupied) 684 692 87 2,091 2,348 678 Commercial and Industrial 93 101 92 284 285 278 3,218 3,276 843 5,402 5,689 1,534 Total Impaired Loans: Construction, land and land development 1,780 1,827 150 707 741 120 Residential First Mortgages 4,481 4,513 366 5,637 5,673 308 Residential Revolving and Junior Mortgages (1) 1,183 1,186 148 491 492 150 Commercial Mortgages (Non-owner occupied) 248 248 — 264 264 — Commercial Mortgages (Owner occupied) 2,734 3,048 87 3,443 3,738 678 Commercial and Industrial 93 101 92 284 285 278 $ 10,519 $ 10,923 $ 843 $ 10,826 $ 11,193 $ 1,534 (1) Junior mortgages include equity lines. For the three months ended For the nine months ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized Investment Recognized Investment Recognized With no related allowance: Construction, land and land development $ 1,533 $ 14 $ 448 $ — $ 1,262 $ 41 $ 449 $ — Residential First Mortgages 2,618 4 2,061 18 2,432 9 1,813 53 Residential Revolving and Junior Mortgages (1) 951 9 50 1 739 30 50 2 Commercial Mortgages (Non-owner occupied) 248 4 264 4 252 11 264 12 Commercial Mortgages (Owner occupied) 2,104 9 1,354 8 1,982 26 1,036 20 Commercial and Industrial — — — — — — — — Consumer (2) — — 3 — — — 4 — 7,454 40 4,180 31 6,667 117 3,616 87 With an allowance recorded: Construction, land and land development 250 1 268 1 255 3 272 4 Residential First Mortgages 1,965 24 1,741 21 1,956 66 1,748 64 Residential Revolving and Junior Mortgages (1) 234 — 209 2 209 4 191 6 Commercial Mortgages (Non-owner occupied) — — — — — — — — Commercial Mortgages (Owner occupied) 686 5 1,152 6 691 17 1,156 21 Commercial and Industrial 92 — 120 — 105 1 91 — Consumer (2) — — — — — — — — 3,227 30 3,490 30 3,216 91 3,458 95 Total Construction, land and land development 1,783 15 716 1 1,517 44 721 4 Residential First Mortgages 4,583 28 3,802 39 4,388 75 3,561 117 Residential Revolving and Junior Mortgages (1) 1,185 9 259 3 948 34 241 8 Commercial Mortgages (Non-owner occupied) 248 4 264 4 252 11 264 12 Commercial Mortgages (Owner occupied) 2,790 14 2,506 14 2,673 43 2,192 41 Commercial and Industrial 92 — 120 — 105 1 91 — Consumer (2) — — 3 — — — 4 — $ 10,681 $ 70 $ 7,670 $ 61 $ 9,883 $ 208 $ 7,074 $ 182 (1) Junior mortgages include equity lines. (2) Includes credit cards. Smaller non-accruing loans and non-accruing loans that are not graded because they are included in homogenous pools generally do not meet the criteria for impairment testing, and are therefore excluded from impaired loan disclosures. At September 30, 2016 and December 31, 2015, non-accruing loans excluded from impaired loan disclosure totaled $77 thousand and $95 thousand, respectively. If interest on these non-accruing loans had been accrued, such income would have approximated $1 thousand during both the three months ended September 30, 2016 and 2015 and $3 thousand and $9 thousand during the nine months ended September 30, 2016 and 2015, respectively. Loan Modifications Loans modified as TDRs are considered impaired and are individually evaluated for the amount of impairment in the ALL. The following table presents, by segments of loans, information related to loans modified as TDRs during the three and nine months ended September 30, 2016 and 2015. For the three months ended For the three months ended September 30, 2016 September 30, 2015 (Dollars in thousands) TROUBLED DEBT RESTRUCTURINGS Number of Pre-Modification Post-Modification Number of Pre-Modification Post-Modification Residential first mortgages (1) — $ — $ — 1 $ 213 $ 211 (1) Modification was an extension of loan terms. For the nine months ended For the nine months ended September 30, 2016 September 30, 2015 (Dollars in thousands) TROUBLED DEBT RESTRUCTURINGS Number of Pre-Modification Post-Modification Number of Pre-Modification Post-Modification Residential first mortgages (2) (1) 1 $ 244 $ 244 1 $ 213 $ 211 Commercial mortgage (Owner occupied) (2) — — — 1 105 124 (1) Modification was an extension of loan terms. (2) Modification was a capitalization of interest. For the three months ended For the three months ended (Dollars in thousands) September 30, 2016 September 30, 2015 TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED Number of Recorded Number of Recorded Commercial and industrial — $ — — $ — For the nine months ended For the nine months ended (Dollars in thousands) September 30, 2016 September 30, 2015 TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED Number of Recorded Number of Recorded Commercial mortgage (Owner occupied) — $ — 1 $ 124 Other Real Estate Owned The table below details the properties included in other real estate owned (“OREO”) as of September 30, 2016 and December 31, 2015. There were three collateralized consumer residential mortgage loans with an aggregate balance of $601 thousand from two borrowers in the process of foreclosure as of September 30, 2016. As of September 30, 2016 As of December 31, 2015 No. of Carrying No. of Carrying (Dollars in thousands) Properties Value Properties Value Residential 3 $ 1,172 3 $ 540 Land lots 6 536 7 413 Convenience stores 1 59 2 191 Restaurant 1 55 1 55 Commerical properties 3 942 3 671 Total 14 $ 2,764 16 $ 1,870 Included in other assets as of September 30, 2016, was one residential property purchased in 2013 from a related party with a value of $708 thousand and a former branch, which was closed April 30, 2015, with a value of $403 thousand. Both properties are being marketed for sale.

Earnings per share

Earnings per share	9 Months Ended
	Sep. 30, 2016
Earnings per share	Note 7: Earnings per share The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of dilutive potential common stock. For the three months ended For the nine months ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Average Per share Average Per share Average Per share Average Per share Shares Amount Shares Amount Shares Amount Shares Amount Basic earnings per share 4,774,856 $ 0.18 4,780,649 $ 0.06 4,774,856 $ 0.41 4,797,405 $ 0.20 Effect of dilutive securities: Stock options 22,665 15,359 18,291 13,724 Diluted earnings per share 4,797,521 $ 0.18 4,796,008 $ 0.06 4,793,147 $ 0.41 4,811,129 $ 0.20 For the three months ended September 30, 2016 and 2015, options on 33,451 and 60,973 shares, respectively, were not included in computing diluted earnings per share because their effects were anti-dilutive. For the nine months ended September 30, 2016 and 2015, options on 47,041 and 68,473 shares, respectively, were not included in computing diluted earnings per share because their effects were anti-dilutive.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2016
Stock-Based Compensation	Note 8: Stock-Based Compensation On June 28, 2013, the Company registered with the Securities and Exchange Commission a stock-based compensation plan, which superseded all other plans. There are 342,000 shares available for grant under this plan at September 30, 2016. Stock-based compensation expense related to stock awards for both the three month periods ended September 30, 2016 and 2015 was zero. For the nine months ended September 30, 2016 and 2015, stock-based compensation expense related to stock awards was $16 thousand and $17 thousand, respectively. Compensation expense for stock options is the estimated fair value of options on the date granted using the Black-Scholes Model amortized on a straight-line basis over the vesting period of the award. There was no unrecognized compensation expense related to stock options as of September 30, 2016. Options for a total of 7,500 shares were granted and vested during the nine months ended September 30, 2016. The aggregate fair value of options granted during the nine months ended September 30, 2016 was $16 thousand. Options for a total of 7,500 shares were granted and vested during the nine months ended September 30, 2015. The aggregate fair value of options granted during the nine months ended September 30, 2015 was $17 thousand. The variables used in these calculations of the fair value of the options are as follows: For the nine months ended September 30, 2016 2015 Risk free interest rate (5 year Treasury) 1.49% 1.52% Expected dividend yield 0.0% 0.0% Expected term (years) 5 5 Expected volatility 40.1% 47.1% Stock option activity for the nine months ended September 30, 2016 is summarized below: Weighted Weighted Average Aggregate Exercise Intrinsic Shares Price Value (1) Options outstanding, January 1, 2016 211,185 $ 6.57 6.0 Granted 7,500 5.76 Forfeited (13,787 ) 5.90 Exercised — — Expired (8,598 ) 12.84 Options outstanding and exercisable, September 30, 2016 196,300 $ 6.20 5.7 $ 126,134 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2016. This amount changes based on changes in the market value of the Company’s common stock.

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Sep. 30, 2016
Employee Benefit Plans	Note 9: Employee Benefit Plans The Company has a non-contributory, defined benefit pension plan for full-time employees who were over 21 years of age and vested in the plan as of December 31, 2012, when the plan was frozen. Each participant’s account balance grows based on monthly interest credits. The Company funds pension costs in accordance with the funding provisions of the Employee Retirement Income Security Act. The Company sponsors a post-retirement benefit plan covering current and future retirees who acquire age 55 and 10 years of service or age 65 and 5 years of service. The post-retirement benefit plan provides coverage toward a retiree’s eligible medical and life insurance benefits expenses. The plan is unfunded and funded as benefits are due. Components of Net Periodic (Benefit) Cost (Dollars in thousands) Pension Benefits Post-Retirement Benefits Nine months ended September 30, 2016 2015 2016 2015 Service cost $ — $ — $ 17 $ 17 Interest cost 101 99 21 23 Expected return on plan assets (142 ) (148 ) — — Settlement loss 21 — — — Recognized net actuarial loss 58 57 — — Net periodic cost $ 38 $ 8 $ 38 $ 40 The Company expects to make no contribution to its pension plan and $2 thousand to its post-retirement benefit plan during the remainder of 2016. The Company has contributed $5 thousand towards the post-retirement plan during the first nine months of 2016.

Long Term Debt

Long Term Debt	9 Months Ended
	Sep. 30, 2016
Long Term Debt	Note 10: Long Term Debt FHLB Debt As of September 30, 2016, the Bank had $25.0 million of outstanding FHLB debt, consisting of four advances. As of December 31, 2015, seven advances totaling $40.0 million were outstanding. Three advances for $5.0 million each that matured in February 2016, April 2016 and September 2016 were repaid. The fixed rate advance that matured in October 2016 was replaced with a three month 0.49% fixed rate advance for $5.0 million. The five advances are shown in the following table. Current Maturity Description Balance Originated Interest Rate Date Adjustable Rate Hybrid $ 10,000,000 4/12/2013 3.04910 % 4/13/2020 Fixed Rate Credit 5,000,000 10/20/2015 0.52000 % 10/20/2016 Fixed Rate Credit 5,000,000 12/21/2015 0.99000 % 6/15/2017 Fixed Rate Credit 5,000,000 12/22/2015 1.08000 % 9/15/2017 $ 25,000,000 Advances on the FHLB lines are secured by a blanket lien on qualified 1 to 4 family residential real estate loans. Immediate available credit, as of September 30, 2016, was $84.7 million against a total line of credit of $115.7 million. As of September 30, 2016 and December 31, 2015, the Company had $25.0 million and $40.0 million, respectively, in FHLB debt outstanding with a weighted average interest rate of 1.74% and 1.17%, respectively. Subordinated Debt On May 28, 2015, the issued an aggregate of $7,000,000 of subordinated notes (the “Notes”). The Notes have a maturity date of May 28, 2025. The Notes bear interest, payable on the 1st of March and September of each year, commencing September 1, 2015, at a fixed interest rate of 6.50% per year. The Notes are not convertible into common stock or preferred stock, and are not callable by the holders. The Company has the right to redeem the Notes, in whole or in part, without premium or penalty, at any interest payment date on or after May 28, 2020 and prior to the maturity date, but in all cases in a principal amount with integral multiples of $1,000, plus interest accrued and unpaid through the date of redemption. If an event of default occurs, such as the bankruptcy of the Company, the holder of a Note may declare the principal amount of the Note to be due and immediately payable. The Notes are unsecured, subordinated obligations of the Company and will rank junior in right of payment to the Company’s existing and future senior indebtedness. The Notes qualify as Tier 2 capital for regulatory reporting. (Dollars in thousands) Balance as of September 30, 2016 6.5% Subordinated Debt $ 7,000 Less: Issuance costs (144 ) $ 6,856

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements	Note 11: Fair Value Measurements The Company uses fair value to record certain assets and liabilities and to determine fair value disclosures. Authoritative accounting guidance clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Authoritative accounting guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows: Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: Securities available-for-sale Defined benefit plan assets Mortgage servicing rights The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015: (Dollars in thousands) Fair Value Measurements at September 30, 2016 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 7,003 $ — $ 1,500 $ 5,503 U. S. Government agencies 25,677 1,597 24,080 — State and municipal obligations 19,883 — 19,883 — Total securities available-for-sale: $ 52,563 $ 1,597 $ 45,463 $ 5,503 Mortgage servicing rights $ 590 $ — $ — $ 590 Defined benefit plan assets: Cash and cash equivalents $ 3 $ 3 $ — $ — Mutual funds - fixed income 1,071 1,071 — — Mutual funds - equity 1,615 1,615 — — Total defined benefit plan assets $ 2,689 $ 2,689 $ — $ — Fair Value Measurements at December 31, 2015 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 3,945 $ — $ — $ 3,945 U. S. Government agencies 21,288 1,216 20,072 — State and municipal obligations 28,857 — 28,857 — Total securities available-for-sale: $ 54,090 $ 1,216 $ 48,929 $ 3,945 Mortgage servicing rights $ 658 $ — $ — $ 658 Defined benefit plan assets: Cash and cash equivalents $ 3 $ 3 $ — $ — Mutual funds - fixed income 1,119 1,119 — — Mutual funds - equity 1,684 1,684 — — Total defined benefit plan assets $ 2,806 $ 2,806 $ — $ — The reconciliation of items using Level 3 inputs is as follows: Corporate (Dollars in thousands) MSRs Bonds Balance, January 1, 2016 $ 658 $ 3,945 Purchases — 3,000 Impairments — — Fair value adjustments (68 ) 58 Sales — — Balance, September 30, 2016 $ 590 $ 7,003 Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Impaired Loans: Other Real Estate Owned: The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at the end of the respective period. Fair Value Measurements at September 30, 2016 Using (Dollars in thousands) Balance as of Description September 30, 2016 Level 1 Level 2 Level 3 Impaired Loans, net $ 2,375 $ — $ — $ 2,375 Other real estate owned, net 2,764 — — 2,764 Fair Value Measurements at December 31, 2015 Using Balance as of Description December 31, 2015 Level 1 Level 2 Level 3 Impaired Loans, net $ 3,868 $ — $ — $ 3,868 Other real estate owned, net 1,870 — — 1,870 The following table displays quantitative information about Level 3 Fair Value Measurements as of September 30, 2016: (Dollars in thousands) Balance as of Valuation Technique Unobservable Range Impaired Loans, net $ 2,375 Discounted appraised value Selling Cost 10% - 20% (14%) Lack of Marketability 50% (50%) Other real estate owned, net 2,764 Discounted appraised value Selling Cost 3% - 13% (5%) Lack of Marketability 10% - 20% (11%) The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2015: (Dollars in thousands) Balance as of Valuation Technique Unobservable Input Range Impaired Loans, net $ 3,868 Discounted appraised value Selling Cost 10% - 25% (13%) Lack of Marketability 50% - 60% (51%) Other real estate owned, net 1,870 Discounted appraised value Selling Cost 3% - 13% (4%) Lack of Marketability 10% - 20% (12%) The estimated fair values of financial instruments are shown in the following table. The carrying amounts in the table are included in the balance sheet under the applicable captions. Fair Value Measurements at September 30, 2016 Using (Dollars in thousands) Balance as of Fair Value as of Description September 30, 2016 September 30, 2016 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 5,280 $ 5,280 $ 5,280 $ — $ — Interest-bearing deposits 6,343 6,343 6,343 — — Certificates of deposit 4,464 4,464 — 4,464 — Federal funds sold 460 460 460 — — Securities available-for-sale 52,563 52,563 1,597 45,463 5,503 Restricted securities 2,209 2,209 — — 2,209 Loans, net 364,822 371,247 — — 371,247 Loans held for sale 481 481 — — 481 Accrued interest receivable 1,241 1,241 — 1,241 — Mortgage servicing rights 590 590 — — 590 Financial Liabilities: Non-interest-bearing liabilities $ 74,615 $ 74,615 $ 74,615 $ — $ — Savings and other interest-bearing deposits 175,448 175,448 — 175,448 — Time deposits 127,912 129,175 — — 129,175 Securities sold under repurchase agreements 12,984 12,984 — 12,984 — FHLB advances 25,000 25,755 — 25,755 — Subordinated debt 6,856 7,000 — — 7,000 Accrued interest payable 207 207 — 207 — Fair Value Measurements at December 31, 2015 Using (Dollars in thousands) Balance as of Fair Value as of Description December 31, 2015 December 31, 2015 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 4,969 $ 4,969 $ 4,969 $ — $ — Interest-bearing deposits 15,330 15,330 15,330 — — Certificates of deposit 5,735 5,735 — 5,487 248 Federal funds sold 271 271 271 — — Securities available-for-sale 54,090 54,090 1,216 48,929 3,945 Restricted securities 2,731 2,731 — — 2,731 Loans, net 343,323 347,500 — — 347,500 Loans held for sale 270 270 — — 270 Accrued interest receivable 1,318 1,318 — 1,318 — Mortgage servicing rights 658 658 — — 658 Financial Liabilities: Non-interest-bearing liabilities $ 65,842 $ 65,842 $ 65,842 $ — $ — Savings and other interest-bearing deposits 166,628 166,628 — 166,628 — Time deposits 127,388 127,433 — — 127,433 Securities sold under repurchase agreements 7,161 7,161 — 7,161 — FHLB advances 40,000 40,855 — 40,855 — Subordinated debt 6,844 7,000 — — 7,000 Accrued interest payable 318 318 — 318 — The carrying amounts of cash and due from banks, interest-bearing deposits, federal funds sold or purchased, accrued interest receivable, loans held for sale and non-interest-bearing deposits, are payable on demand, or are of such short duration that carrying value approximates market value. Securities available-for-sale are carried at quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. The carrying value of restricted securities approximates fair value based on the redemption provisions of the issuer. MSRs are carried at fair value. As described above, a valuation model is used to determine fair value. This model utilizes a discounted cash flow analysis with servicing costs and prepayment assumptions based on comparable instruments and a discount rate. The fair value of performing loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar remaining maturities. This calculation ignores loan fees and certain factors affecting the interest rates charged on various loans such as the borrower’s creditworthiness and compensating balances and dissimilar types of real estate held as collateral. The fair value of impaired loans is measured as described within the Impaired Loans section of this note. The fair value of loans does not consider the lack of liquidity and uncertainty in the market that would affect the valuation. Time deposits are presented at estimated fair value by discounting the future cash flows using interest rates offered for deposits of similar remaining maturities. The fair value of the Company’s subordinated debt is estimated by utilizing observable market prices for comparable securities. Qualitative factors like asset quality, market factors and liquidity are also considered. The fair value of the FHLB advances is estimated by discounting the future cash flows using the current interest rates offered for similar advances. The fair value of commitments to extend credit is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present credit worthiness of the counter parties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of standby letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counter parties at the reporting date. At September 30, 2016 and December 31, 2015, the fair value of loan commitments and standby letters of credit was immaterial and therefore, they are not included in the table above. The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair value of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk.

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2016
Changes in Accumulated Other Comprehensive Income (Loss)	Note 12: Changes in Accumulated Other Comprehensive Income (Loss) The balances in accumulated other comprehensive income (loss) are shown in the following tables: For the Three Months Ended September 30, 2016 Net Unrealized Pension and Accumulated Other Gains (Losses) Post-retirement Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance July 1, 2016 $ 624 $ (883 ) $ (259 ) Change in net unrealized holding gains on securities, before reclassification — — — Reclassification for previously unrealized net gains recognized in income, net of tax expense of $62 (118 ) — (118 ) Balance September 30, 2016 $ 506 $ (883 ) $ (377 ) For the Three Months Ended September 30, 2015 Net Unrealized Pension and Post-retirement Accumulated Other Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance July 1, 2015 $ (130 ) $ (966 ) $ (1,096 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $136 267 — 267 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $0 (2 ) — (2 ) Balance September 30, 2015 $ 135 $ (966 ) $ (831 ) For the Nine Months Ended September 30 , 2016 Net Unrealized Pension and Accumulated Other Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance January 1, 2016 $ 107 $ (883 ) $ (776 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $305 590 — 590 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $99 (191 ) — (191 ) Balance September 30, 2016 $ 506 $ (883 ) $ (377 ) For the Nine Months Ended September 30, 2015 Net Unrealized Pension and Post-retirement Accumulated Other Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance January 1, 2015 $ 45 $ (966 ) $ (921 ) Change in net unrealized holding losses on securities, before reclassification, net of tax expense of $47 93 — 93 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $1 (3 ) — (3 ) Balance September 30, 2015 $ 135 $ (966 ) $ (831 ) Reclassification for previously unrealized gains (losses) and impairments on securities are reported in the Consolidated Statements of Income as follows. No unrealized gains (losses) on pension and post-employment related costs were reclassified to the Consolidated Statements of Income in the three and nine months ended September 30, 2016 and 2015. Accumulated Other Comprehensive Income (Loss) Reclassification for the Three Months Ended Holding Losses on Securities (Dollars in thousands) September 30, 2016 September 30, 2015 Net gains on sale of securities available-for-securities $ 180 $ 2 Tax expense (62 ) — Impact on net income $ 118 $ 2 Accumulated Other Comprehensive Income (Loss) Reclassification for the Nine Months Ended Holding Losses on Securities (Dollars in thousands) September 30, 2016 September 30, 2015 Net gains on sale of securities available-for-securities $ 290 $ 4 Tax expense (99 ) (1 ) Impact on net income $ 191 $ 3

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2016
Subsequent Event	Note 13: Subsequent Event On November 2, 2016, the Company signed a definitive merger agreement with Virginia BanCorp Inc. (“Virginia BanCorp”). Upon completion of the merger, the Company will be the surviving corporation and shareholders of Virginia BanCorp will receive 1.178 shares of the Company’s common stock for each share of Virginia BanCorp common stock they own. After the merger is completed, the Company’s shareholders will own approximately 51% of the stock of the Company and Virginia BanCorp’s shareholders will own approximately 49%. The merger is expected to be completed early in the second quarter of 2017, subject to approval of both companies’ shareholders, regulatory approvals, and other customary closing conditions. As of September 30, 2016, Virginia BanCorp, Inc. total assets were approximately $325.1 million and total stockholders’ equity was $35.7 million.

Significant Accounting Polici21

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Certificates of Deposit	Certificates of Deposit Prior to January 1, 2016, the Company included its investments in certificates of deposit on the consolidated balance sheets in securities available-for sale, at fair value. Effective January 1, 2016, the Company is presenting certificates of deposit separately on the consolidated balance sheets and removing them from the available-for-sale category. As of December 31, 2015, the unrealized gain related to the certificates of deposit included in securities available-for-sale was $31 thousand and the tax effected unrealized gain included in accumulated other comprehensive income was $20 thousand. The unrealized gain and related impact were reversed the first quarter of 2016.
Loans	Loans The Company grants mortgage loans on real estate, commercial and industrial loans and consumer and other loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Company’s market areas. Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, and charge-offs. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment of the related loan yield over the contractual term of the loan, adjusted for early pay-offs, where applicable. The accrual of interest is generally discontinued at the time a loan is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Payments received for loans no longer accruing interest are applied to the unpaid principal balance. Loans greater than 90 days past due may remain on accrual status if the credit is well-secured and in process of collection. Personal loans are typically charged off no later than 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are charged off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual and past due policies are materially the same for all types of loans. All interest accrued but not collected for loans that are placed on non-accrual or charged off are reversed against interest income. Any subsequent interest received on these loans is accounted for on the cash basis or cost recovery method until qualifying for return to accrual. Generally, a loan is returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or it becomes well secured and in the process of collection.
Allowance for loan losses ("ALL")	Allowance for loan losses (“ALL”) The ALL reflects management’s judgment of probable loan losses inherent in the portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter. To determine the total ALL, the Company estimates the reserves needed for each homogenous segment of the portfolio, plus any loans analyzed individually for impairment. Depending on the nature of each segment, considerations include historical loss experience, adverse situations that may affect a borrower’s ability to repay, credit scores, past due history, estimated value of any underlying collateral, prevailing local and national economic conditions, and internal policies and procedures including credit risk management and underwriting. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as conditions change. Management employs a risk rating system to evaluate and consistently categorize loan portfolio credit risk. Loans assigned risk rating grades include all commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250 thousand with chronic delinquency, and troubled debt restructures (“TDRs”). The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades are evaluated as new information becomes available for each borrowing relationship or at least quarterly. All other loans not specifically assigned a risk rating grade are monitored as a discrete pool of loans generally based on delinquency status. Risk rating categories are as follows: Pass Watch Special Mention Substandard Doubtful Loss The ALL consists of specific, general, and unallocated components. The specific component is determined by identifying impaired loans (as described below) then evaluating each one to calculate the amount of impairment. Impaired loans measured for impairment generally include: (1) non-accruing Special mention, Substandard and Doubtful loans in excess of $250,000; (2) Substandard and Doubtful loans in excess of $500,000; (3) Special Mention loans in excess of $500,000 if any of the loans in the relationship are more than 30 days past due or if the borrower has filed for bankruptcy; and (4) all TDRs. A specific allowance arises when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component collectively evaluates smaller commercial loans, residential mortgages and consumer loans, grouped into segments and classes. Historical loss experience is calculated and applied to each segment or class, then adjusted for qualitative factors. Qualitative factors include changes in local and national economic indicators, such as unemployment rates, interest rates, gross domestic product growth and real estate market trends; the level of past due and nonaccrual loans; risk ratings on individual loans; strength of credit policies and procedures; loan officer experience; borrower credit scores; and other intrinsic risks related to the types and geographic locations of loans. These qualitative adjustments reflect management’s judgment of risks inherent in the segments. An unallocated component is maintained if needed to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Changes in the allowance for loan losses and the related provision expense can materially affect net income. The specific component of the ALL calculation accounts for the loan loss reserve necessary on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Accrual of interest may or may not be discontinued for any given impaired loan. Impairment is measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Because large groups of smaller balance homogeneous loans are collectively evaluated for impairment, the Company does not generally separately identify smaller balance individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. The general component of the ALL calculation collectively evaluates groups of loans in segments or classes, as noted above. The segments are: (1) Mortgage loans on real estate; (2) Commercial and industrial loans; and (3) Consumer and other loans. The segment for Mortgage loans on real estate is disaggregated into the following classes: (1) Construction, land and land development; (2) Farmland; (3) Residential first mortgages; (4) Residential revolving and junior mortgages; (5) Commercial mortgages (non-owner-occupied); and (6) Commercial mortgages (owner-occupied). Loans in segment 1 are secured by real estate. Loans in segments 2 and 3 are secured by other types of collateral or are unsecured. A given segment or class may not reflect the purpose of a loan. For example, a business owner may provide his residence as collateral for a loan to his company, in which case the loan would be grouped in a residential mortgage class. Historical loss factors are calculated for the prior 20 quarters by segment and class, and then applied to the current balances in each segment and class. Finally, qualitative factors are applied to each segment and class. Construction and development loans carry risks that the project will not be finished according to schedule or according to budget and the value of the collateral, at any point in time, may be less than the principal amount of the loan. These loans also bear the risk that the general contractor may face financial pressure unrelated to the project. Loans secured by land, farmland and residential mortgages carry the risk of continued credit-worthiness of the borrower and changes in value of the underlying real estate collateral. Commercial mortgages and commercial and industrial loans carry risks associated with the profitable operation of a business and its related cash flows. Additionally, commercial and industrial loans carry risks associated with the value of collateral other than real estate which may depreciate over time. Consumer loans carry risks associated with the continuing credit-worthiness of the borrower and are more likely than real estate loans to be adversely affected by divorce, unemployment, personal illness or bankruptcy of an individual. Consumer loans secured by automobiles carry risks associated with rapidly depreciating collateral. Consumer loans have historically included credit cards, which are unsecured. The credit card portfolio was sold to an unaffiliated third party in the third quarter of 2016. The summation of the specific, general and unallocated components results in the total estimated ALL. Management may also include an unallocated component to cover uncertainties in the level of probable losses. This estimate is inherently subjective and actual losses could be greater or less than the estimates. Additions to the ALL are made by charges to earnings through the provision for loan losses. Charge-offs result from credit exposures deemed to be uncollectible and the ALL is reduced by these. Recoveries of previously charged off amounts are credited back to the ALL. Charge-off policies are materially the same for all types of loans.
Mortgage servicing rights ("MSRs")	Mortgage servicing rights (“MSRs”) MSRs are included on the consolidated balance sheet and recorded at fair value on an ongoing basis. Changes in the fair value of the MSRs are recorded in the results of operations. A fair value analysis of MSRs is performed on a quarterly basis.

Securities (Tables)

Securities (Tables)	9 Months Ended
	Sep. 30, 2016
Aggregate Amortized Cost and Fair Values of Available-for-Sale Securities Portfolio	The aggregate amortized costs and fair values of the available-for-sale securities portfolio are as follows: (Dollars in thousands) Available-for-sale securities September 30, 2016 Amortized Gross Gross Fair Corporate bonds $ 6,945 $ 58 $ — $ 7,003 U.S. Government agencies 25,461 272 (56 ) 25,677 State and municipal obligations 19,363 541 (21 ) 19,883 $ 51,769 $ 871 $ (77 ) $ 52,563 Available-for-sale securities December 31, 2015 Amortized Gross Gross Fair Corporate bonds $ 3,950 $ — $ (5 ) $ 3,945 U.S. Government agencies 21,375 69 (156 ) 21,288 State and municipal obligations 28,599 313 (55 ) 28,857 $ 53,924 $ 382 $ (216 ) $ 54,090
Gross Realized Gains and Gross Realized Losses on Sales of Securities	Gross realized gains and gross realized losses on sales and calls of securities were as follows: For the three months ended For the nine months ended (Dollars in thousands) 2016 2015 2016 2015 Gross realized gains $ 180 $ 3 $ 300 $ 27 Gross realized losses — (1 ) (10 ) (23 ) Net realized gains (losses) $ 180 $ 2 $ 290 $ 4 Aggregate proceeds $ 4,984 $ 1,995 $ 14,582 $ 4,819
Unrealized Loss Positions	Bonds with unrealized loss positions at December 31, 2015 included 24 federal agencies, one corporate bond and 17 municipals. The tables are shown below. (Dollars in thousands) Less than 12 months 12 months or more Total September 30, 2016 Fair Unrealized Fair Unrealized Fair Unrealized U.S. Government agencies $ 5,573 $ (43 ) $ 1,385 $ (13 ) $ 6,958 $ (56 ) States and municipal obligations 2,064 (21 ) — — 2,064 (21 ) Total temporarily impaired securities $ 7,637 $ (64 ) $ 1,385 $ (13 ) $ 9,022 $ (77 ) Less than 12 months 12 months or more Total December 31, 2015 Fair Unrealized Fair Unrealized Fair Unrealized Corporate bonds $ 495 $ (5 ) $ — $ — $ 495 $ (5 ) U.S. Government agencies 13,871 (141 ) 1,619 (15 ) 15,490 (156 ) States and municipal obligations 2,566 (17 ) 3,281 (38 ) 5,847 (55 ) Total temporarily impaired securities $ 16,932 $ (163 ) $ 4,900 $ (53 ) $ 21,832 $ (216 )

Loans (Tables)

Loans (Tables)	9 Months Ended
	Sep. 30, 2016
Summary of Balances of Loans	The following is a summary of the balances of loans: (Dollars in thousands) September 30, 2016 December 31, 2015 Mortgage loans on real estate: Construction, Land and Land Development $ 41,530 $ 42,129 Farmland 1,051 1,030 Commercial Mortgages (Non-Owner Occupied) 29,131 29,086 Commercial Mortgages (Owner Occupied) 45,504 43,956 Residential First Mortgages 185,373 164,405 Residential Revolving and Junior Mortgages 25,389 26,497 Commercial and Industrial loans 36,596 35,104 Consumer Loans 3,615 5,015 Total loans 368,189 347,222 Net unamortized deferred loan costs 374 324 Allowance for loan losses (3,741 ) (4,223 ) Loans, net $ 364,822 $ 343,323
Recorded Investment in Past Due and Non-accruing Loans	The recorded investment in past due and non-accruing loans is shown in the following table. A loan past due by more than 90 days is generally placed on nonaccrual unless it is both well secured and in the process of collection. (Dollars in thousands) Loans Past Due and Nonaccruals 30-89 90 Days or More Past Due and Total Past Due and Total September 30, 2016 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Construction, Land and Land Development $ 62 $ 67 $ 627 $ 756 $ 40,774 $ 41,530 Farmland — — — — 1,051 1,051 Commercial Mortgages (Non-Owner Occupied) — — — — 29,131 29,131 Commercial Mortgages (Owner Occupied) 294 100 1,650 2,044 43,460 45,504 Residential First Mortgages 860 — 2,276 3,136 182,237 185,373 Residential Revolving and Junior Mortgages 12 — 213 225 25,164 25,389 Commercial and Industrial 19 11 92 122 36,474 36,596 Consumer Loans — — — — 3,615 3,615 Total $ 1,247 $ 178 $ 4,858 $ 6,283 $ 361,906 $ 368,189 Loans Past Due and Nonaccruals 30-89 90 Days or Total Past Total December 31, 2015 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Construction, Land and Land Development $ 93 $ — $ 672 $ 765 $ 41,364 $ 42,129 Farmland — — — — 1,030 1,030 Commercial Mortgages (Non-Owner Occupied) 264 — — 264 28,822 29,086 Commercial Mortgages (Owner Occupied) 133 — 2,350 2,483 41,473 43,956 Residential First Mortgages 1,304 — 2,841 4,145 160,260 164,405 Residential Revolving and Junior Mortgages 70 — 277 347 26,150 26,497 Commercial and Industrial 10 — 285 295 34,809 35,104 Consumer Loans 32 11 8 51 4,964 5,015 Total $ 1,906 $ 11 $ 6,433 $ 8,350 $ 338,872 $ 347,222

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2016
Loan Receivables Evaluated for Impairment Individually and Collectively by Segment	Loan receivables evaluated for impairment individually and collectively by segment as of September 30, 2016 and December 31, 2015 are as follows: (Dollars in thousands) Mortgage Commercial Consumer As of September 30, 2016 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 10,426 $ 93 $ — $ 10,519 Collectively evaluated for impairment 317,552 36,503 3,615 357,670 Total Gross Loans $ 327,978 $ 36,596 $ 3,615 $ 368,189 Mortgage Commercial Loans and Consumer As of December 31, 2015 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 10,542 $ 284 $ — $ 10,826 Collectively evaluated for impairment 296,561 34,820 5,015 336,396 Total Gross Loans $ 307,103 $ 35,104 $ 5,015 $ 347,222
Allowance for Loan Losses by Portfolio Segment	Allowance for Loan Losses The allowance for loan losses disaggregated based on loan receivables evaluated for impairment individually and collectively by segment as of September 30, 2016 and December 31, 2015 are as follows: Mortgage Commercial (Dollars in thousands) Loans and Consumer As of September 30, 2016 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 751 $ 92 $ — $ 843 Collectively evaluated for impairment 2,457 388 53 2,898 Total allowance for loan losses $ 3,208 $ 480 $ 53 $ 3,741 Mortgage Commercial Consumer As of December 31, 2015 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 1,256 $ 278 $ — $ 1,534 Collectively evaluated for impairment 2,246 321 122 2,689 Total allowance for loan losses $ 3,502 $ 599 $ 122 $ 4,223 A disaggregation and an analysis of the change in the allowance for loan losses by segment is shown below. Mortgage Commercial Loans on and Consumer (Dollars in thousands) Real Estate Industrial Loans Total For the Three Months Ended September 30, 2016 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,995 $ 435 $ 117 $ 3,547 Reclassification of allowanace related to sold loans — — (27 ) (27 ) (Charge-offs) (46 ) — (10 ) (56 ) Recoveries 15 — 3 18 Provision 244 45 (30 ) 259 Ending Balance $ 3,208 $ 480 $ 53 $ 3,741 Mortgage Commercial Loans on and Consumer Real Estate Industrial Loans Total For the Three Months Ended September 30, 2015 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,889 $ 420 $ 130 $ 3,439 (Charge-offs) (12 ) (132 ) (17 ) (161 ) Recoveries 6 — 6 12 Provision (69 ) 145 8 84 Ending Balance $ 2,814 $ 433 $ 127 $ 3,374 Mortgage Commercial Loans on and Consumer (Dollars in thousands) Real Estate Industrial Loans Total For the Nine Months Ended September 30, 2016 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 3,502 $ 599 $ 122 $ 4,223 Reclassification of allowance related to sold loans — — (27 ) (27 ) (Charge-offs) (702 ) (158 ) (41 ) (901 ) Recoveries 25 5 9 39 Provision 383 34 (10 ) 407 Ending Balance $ 3,208 $ 480 $ 53 $ 3,741 Mortgage Commercial Loans on and Consumer Real Estate Industrial Loans Total For the Nine Months Ended September 30, 2015 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,778 $ 323 $ 104 $ 3,205 (Charge-offs) (13 ) (132 ) (103 ) (248 ) Recoveries 16 — 47 63 Provision 33 242 79 354 Ending Balance $ 2,814 $ 433 $ 127 $ 3,374
Internal Risk Rating Grades are Assigned to Commercial Loans Not Secured	Internal risk rating grades are generally assigned to commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250,000 with chronic delinquency, and TDRs, as shown in the following table. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades (refer to Note 2) are evaluated as new information becomes available for each borrowing relationship or at least quarterly. Construction, Commercial Commercial Land and Mortgages Mortgages Commercial (Dollars in thousands) Land (Non-Owner (Owner and As of September 30, 2016 Development Farmland Occupied) Occupied) Industrial Total Grade: Pass $ 34,042 $ 1,051 $ 24,398 $ 36,044 $ 35,026 $ 130,561 Watch 5,466 — 4,212 5,433 1,193 16,304 Special mention 182 — 273 1,467 126 2,048 Substandard 1,840 — 248 2,560 251 4,899 Doubtful — — — — — — Total $ 41,530 $ 1,051 $ 29,131 $ 45,504 $ 36,596 $ 153,812 Construction, Commercial Commercial Land and Mortgages Mortgages Commercial Land (Non-Owner (Owner and As of December 31, 2015 Development Farmland Occupied) Occupied) Industrial Total Grade: Pass $ 34,692 $ 1,030 $ 24,258 $ 33,023 $ 29,383 $ 122,386 Watch 5,337 — 4,564 4,968 5,202 20,071 Special mention 1,119 — — 2,687 148 3,954 Substandard 981 — 264 3,278 371 4,894 Doubtful — — — — — — Total $ 42,129 $ 1,030 $ 29,086 $ 43,956 $ 35,104 $ 151,305
Performing and Non Performing Loans	Loans are considered to be nonperforming when they are delinquent by 90 days or more or non-accruing and credit risk is primarily evaluated by delinquency status, as shown in the table below. (Dollars in thousands) Residential Residential Revolving As of September 30, 2016 First and Junior Consumer PAYMENT ACTIVITY STATUS Mortgages (1) Mortgages (2) Loans (3) Total Performing $ 183,097 $ 25,176 $ 3,615 $ 211,888 Nonperforming 2,276 213 — 2,489 Total $ 185,373 $ 25,389 $ 3,615 $ 214,377 Residential Residential Revolving As of December 31, 2015 First and Junior Consumer PAYMENT ACTIVITY STATUS Mortgages (4) Mortgages (5) Loans (6) Total Performing $ 161,564 $ 26,220 $ 4,996 $ 192,780 Nonperforming 2,841 277 19 3,137 Total $ 164,405 $ 26,497 $ 5,015 $ 195,917 (1) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.3 million as of September 30, 2016. (2) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $265 thousand as of September 30, 2016. (3) No Consumer Loans had been assigned a risk rating grade of Substandard as of September 30, 2016. (4) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.9 million as of December 31, 2015. (5) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $372 thousand as of December 31, 2015. (6) No Consumer Loans had been assigned a risk rating grade of Substandard as of December 31, 2015.
Company's Recorded Investment and Customers Unpaid Principal Balances for Impaired Loans, with Associated Allowance Amount	The following tables show the Company’s recorded investment and the customers’ unpaid principal balances for impaired loans, with the associated allowance amount, if applicable, as of September 30, 2016 and December 31, 2015, along with the average recorded investment and interest income recognized for the three and nine months ended September 30, 2016 and 2015, respectively. (Dollars in thousands) IMPAIRED LOANS At September 30, 2016 At December 31, 2015 Recorded Customers’ Unpaid Related Recorded Customers’ Unpaid Related Investment Principal Balance Allowance Investment Principal Balance Allowance With no related allowance: Construction, land and land development $ 1,532 $ 1,540 $ — $ 445 $ 451 $ — Residential First Mortgages 2,520 2,552 — 3,130 3,166 — Residential Revolving and Junior Mortgages (1) 951 951 — 233 233 — Commercial Mortgages (Non-owner occupied) 248 248 — 264 264 — Commercial Mortgages (Owner occupied) 2,050 2,356 — 1,352 1,390 — Commercial and Industrial — — — — — — 7,301 7,647 — 5,424 5,504 — With an allowance recorded: Construction, land and land development 248 287 150 262 290 120 Residential First Mortgages 1,961 1,961 366 2,507 2,507 308 Residential Revolving and Junior Mortgages (1) 232 235 148 258 259 150 Commercial Mortgages (Non-owner occupied) — — — — — — Commercial Mortgages (Owner occupied) 684 692 87 2,091 2,348 678 Commercial and Industrial 93 101 92 284 285 278 3,218 3,276 843 5,402 5,689 1,534 Total Impaired Loans: Construction, land and land development 1,780 1,827 150 707 741 120 Residential First Mortgages 4,481 4,513 366 5,637 5,673 308 Residential Revolving and Junior Mortgages (1) 1,183 1,186 148 491 492 150 Commercial Mortgages (Non-owner occupied) 248 248 — 264 264 — Commercial Mortgages (Owner occupied) 2,734 3,048 87 3,443 3,738 678 Commercial and Industrial 93 101 92 284 285 278 $ 10,519 $ 10,923 $ 843 $ 10,826 $ 11,193 $ 1,534 (1) Junior mortgages include equity lines. For the three months ended For the nine months ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized Investment Recognized Investment Recognized With no related allowance: Construction, land and land development $ 1,533 $ 14 $ 448 $ — $ 1,262 $ 41 $ 449 $ — Residential First Mortgages 2,618 4 2,061 18 2,432 9 1,813 53 Residential Revolving and Junior Mortgages (1) 951 9 50 1 739 30 50 2 Commercial Mortgages (Non-owner occupied) 248 4 264 4 252 11 264 12 Commercial Mortgages (Owner occupied) 2,104 9 1,354 8 1,982 26 1,036 20 Commercial and Industrial — — — — — — — — Consumer (2) — — 3 — — — 4 — 7,454 40 4,180 31 6,667 117 3,616 87 With an allowance recorded: Construction, land and land development 250 1 268 1 255 3 272 4 Residential First Mortgages 1,965 24 1,741 21 1,956 66 1,748 64 Residential Revolving and Junior Mortgages (1) 234 — 209 2 209 4 191 6 Commercial Mortgages (Non-owner occupied) — — — — — — — — Commercial Mortgages (Owner occupied) 686 5 1,152 6 691 17 1,156 21 Commercial and Industrial 92 — 120 — 105 1 91 — Consumer (2) — — — — — — — — 3,227 30 3,490 30 3,216 91 3,458 95 Total Construction, land and land development 1,783 15 716 1 1,517 44 721 4 Residential First Mortgages 4,583 28 3,802 39 4,388 75 3,561 117 Residential Revolving and Junior Mortgages (1) 1,185 9 259 3 948 34 241 8 Commercial Mortgages (Non-owner occupied) 248 4 264 4 252 11 264 12 Commercial Mortgages (Owner occupied) 2,790 14 2,506 14 2,673 43 2,192 41 Commercial and Industrial 92 — 120 — 105 1 91 — Consumer (2) — — 3 — — — 4 — $ 10,681 $ 70 $ 7,670 $ 61 $ 9,883 $ 208 $ 7,074 $ 182 (1) Junior mortgages include equity lines. (2) Includes credit cards.
Summary of Troubled Debt Restructurings	The following table presents, by segments of loans, information related to loans modified as TDRs during the three and nine months ended September 30, 2016 and 2015. For the three months ended For the three months ended September 30, 2016 September 30, 2015 (Dollars in thousands) TROUBLED DEBT RESTRUCTURINGS Number of Pre-Modification Post-Modification Number of Pre-Modification Post-Modification Residential first mortgages (1) — $ — $ — 1 $ 213 $ 211 (1) Modification was an extension of loan terms. For the nine months ended For the nine months ended September 30, 2016 September 30, 2015 (Dollars in thousands) TROUBLED DEBT RESTRUCTURINGS Number of Pre-Modification Post-Modification Number of Pre-Modification Post-Modification Residential first mortgages (2) (1) 1 $ 244 $ 244 1 $ 213 $ 211 Commercial mortgage (Owner occupied) (2) — — — 1 105 124 (1) Modification was an extension of loan terms. (2) Modification was a capitalization of interest. For the three months ended For the three months ended (Dollars in thousands) September 30, 2016 September 30, 2015 TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED Number of Recorded Number of Recorded Commercial and industrial — $ — — $ — For the nine months ended For the nine months ended (Dollars in thousands) September 30, 2016 September 30, 2015 TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED Number of Recorded Number of Recorded Commercial mortgage (Owner occupied) — $ — 1 $ 124
Summary of Properties Included in Other Real Estate Owned (OREO)	The table below details the properties included in other real estate owned (“OREO”) as of September 30, 2016 and December 31, 2015. There were three collateralized consumer residential mortgage loans with an aggregate balance of $601 thousand from two borrowers in the process of foreclosure as of September 30, 2016. As of September 30, 2016 As of December 31, 2015 No. of Carrying No. of Carrying (Dollars in thousands) Properties Value Properties Value Residential 3 $ 1,172 3 $ 540 Land lots 6 536 7 413 Convenience stores 1 59 2 191 Restaurant 1 55 1 55 Commerical properties 3 942 3 671 Total 14 $ 2,764 16 $ 1,870

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
	Sep. 30, 2016
Weighted Average Number of Shares Used in Computing Earnings per Share	The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of dilutive potential common stock. For the three months ended For the nine months ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Average Per share Average Per share Average Per share Average Per share Shares Amount Shares Amount Shares Amount Shares Amount Basic earnings per share 4,774,856 $ 0.18 4,780,649 $ 0.06 4,774,856 $ 0.41 4,797,405 $ 0.20 Effect of dilutive securities: Stock options 22,665 15,359 18,291 13,724 Diluted earnings per share 4,797,521 $ 0.18 4,796,008 $ 0.06 4,793,147 $ 0.41 4,811,129 $ 0.20

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value of Options	The variables used in these calculations of the fair value of the options are as follows: For the nine months ended September 30, 2016 2015 Risk free interest rate (5 year Treasury) 1.49% 1.52% Expected dividend yield 0.0% 0.0% Expected term (years) 5 5 Expected volatility 40.1% 47.1%
Summary of Stock Option Activity	Stock option activity for the nine months ended September 30, 2016 is summarized below: Weighted Weighted Average Aggregate Exercise Intrinsic Shares Price Value (1) Options outstanding, January 1, 2016 211,185 $ 6.57 6.0 Granted 7,500 5.76 Forfeited (13,787 ) 5.90 Exercised — — Expired (8,598 ) 12.84 Options outstanding and exercisable, September 30, 2016 196,300 $ 6.20 5.7 $ 126,134 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2016. This amount changes based on changes in the market value of the Company’s common stock.

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2016
Components of Net Periodic (Benefit) Cost	Components of Net Periodic (Benefit) Cost (Dollars in thousands) Pension Benefits Post-Retirement Benefits Nine months ended September 30, 2016 2015 2016 2015 Service cost $ — $ — $ 17 $ 17 Interest cost 101 99 21 23 Expected return on plan assets (142 ) (148 ) — — Settlement loss 21 — — — Recognized net actuarial loss 58 57 — — Net periodic cost $ 38 $ 8 $ 38 $ 40

Long Term Debt (Tables)

Long Term Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Advances of Long Term Debt	The five advances are shown in the following table. Current Maturity Description Balance Originated Interest Rate Date Adjustable Rate Hybrid $ 10,000,000 4/12/2013 3.04910 % 4/13/2020 Fixed Rate Credit 5,000,000 10/20/2015 0.52000 % 10/20/2016 Fixed Rate Credit 5,000,000 12/21/2015 0.99000 % 6/15/2017 Fixed Rate Credit 5,000,000 12/22/2015 1.08000 % 9/15/2017 $ 25,000,000
Subordinated Debt	(Dollars in thousands) Balance as of September 30, 2016 6.5% Subordinated Debt $ 7,000 Less: Issuance costs (144 ) $ 6,856

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015: (Dollars in thousands) Fair Value Measurements at September 30, 2016 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 7,003 $ — $ 1,500 $ 5,503 U. S. Government agencies 25,677 1,597 24,080 — State and municipal obligations 19,883 — 19,883 — Total securities available-for-sale: $ 52,563 $ 1,597 $ 45,463 $ 5,503 Mortgage servicing rights $ 590 $ — $ — $ 590 Defined benefit plan assets: Cash and cash equivalents $ 3 $ 3 $ — $ — Mutual funds - fixed income 1,071 1,071 — — Mutual funds - equity 1,615 1,615 — — Total defined benefit plan assets $ 2,689 $ 2,689 $ — $ — Fair Value Measurements at December 31, 2015 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 3,945 $ — $ — $ 3,945 U. S. Government agencies 21,288 1,216 20,072 — State and municipal obligations 28,857 — 28,857 — Total securities available-for-sale: $ 54,090 $ 1,216 $ 48,929 $ 3,945 Mortgage servicing rights $ 658 $ — $ — $ 658 Defined benefit plan assets: Cash and cash equivalents $ 3 $ 3 $ — $ — Mutual funds - fixed income 1,119 1,119 — — Mutual funds - equity 1,684 1,684 — — Total defined benefit plan assets $ 2,806 $ 2,806 $ — $ —
Reconciliation of Items Using Level Three Inputs	The reconciliation of items using Level 3 inputs is as follows: Corporate (Dollars in thousands) MSRs Bonds Balance, January 1, 2016 $ 658 $ 3,945 Purchases — 3,000 Impairments — — Fair value adjustments (68 ) 58 Sales — — Balance, September 30, 2016 $ 590 $ 7,003
Summary of Assets Measured at Fair Value on Nonrecurring Basis	The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at the end of the respective period. Fair Value Measurements at September 30, 2016 Using (Dollars in thousands) Balance as of Description September 30, 2016 Level 1 Level 2 Level 3 Impaired Loans, net $ 2,375 $ — $ — $ 2,375 Other real estate owned, net 2,764 — — 2,764 Fair Value Measurements at December 31, 2015 Using Balance as of Description December 31, 2015 Level 1 Level 2 Level 3 Impaired Loans, net $ 3,868 $ — $ — $ 3,868 Other real estate owned, net 1,870 — — 1,870
Summary of Quantitative Fair Value Measurements for Level 3	The following table displays quantitative information about Level 3 Fair Value Measurements as of September 30, 2016: (Dollars in thousands) Balance as of Valuation Technique Unobservable Range Impaired Loans, net $ 2,375 Discounted appraised value Selling Cost 10% - 20% (14%) Lack of Marketability 50% (50%) Other real estate owned, net 2,764 Discounted appraised value Selling Cost 3% - 13% (5%) Lack of Marketability 10% - 20% (11%) The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2015: (Dollars in thousands) Balance as of Valuation Technique Unobservable Input Range Impaired Loans, net $ 3,868 Discounted appraised value Selling Cost 10% - 25% (13%) Lack of Marketability 50% - 60% (51%) Other real estate owned, net 1,870 Discounted appraised value Selling Cost 3% - 13% (4%) Lack of Marketability 10% - 20% (12%)
Estimated Fair Values of Financial Instruments	The estimated fair values of financial instruments are shown in the following table. The carrying amounts in the table are included in the balance sheet under the applicable captions. Fair Value Measurements at September 30, 2016 Using (Dollars in thousands) Balance as of Fair Value as of Description September 30, 2016 September 30, 2016 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 5,280 $ 5,280 $ 5,280 $ — $ — Interest-bearing deposits 6,343 6,343 6,343 — — Certificates of deposit 4,464 4,464 — 4,464 — Federal funds sold 460 460 460 — — Securities available-for-sale 52,563 52,563 1,597 45,463 5,503 Restricted securities 2,209 2,209 — — 2,209 Loans, net 364,822 371,247 — — 371,247 Loans held for sale 481 481 — — 481 Accrued interest receivable 1,241 1,241 — 1,241 — Mortgage servicing rights 590 590 — — 590 Financial Liabilities: Non-interest-bearing liabilities $ 74,615 $ 74,615 $ 74,615 $ — $ — Savings and other interest-bearing deposits 175,448 175,448 — 175,448 — Time deposits 127,912 129,175 — — 129,175 Securities sold under repurchase agreements 12,984 12,984 — 12,984 — FHLB advances 25,000 25,755 — 25,755 — Subordinated debt 6,856 7,000 — — 7,000 Accrued interest payable 207 207 — 207 — Fair Value Measurements at December 31, 2015 Using (Dollars in thousands) Balance as of Fair Value as of Description December 31, 2015 December 31, 2015 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 4,969 $ 4,969 $ 4,969 $ — $ — Interest-bearing deposits 15,330 15,330 15,330 — — Certificates of deposit 5,735 5,735 — 5,487 248 Federal funds sold 271 271 271 — — Securities available-for-sale 54,090 54,090 1,216 48,929 3,945 Restricted securities 2,731 2,731 — — 2,731 Loans, net 343,323 347,500 — — 347,500 Loans held for sale 270 270 — — 270 Accrued interest receivable 1,318 1,318 — 1,318 — Mortgage servicing rights 658 658 — — 658 Financial Liabilities: Non-interest-bearing liabilities $ 65,842 $ 65,842 $ 65,842 $ — $ — Savings and other interest-bearing deposits 166,628 166,628 — 166,628 — Time deposits 127,388 127,433 — — 127,433 Securities sold under repurchase agreements 7,161 7,161 — 7,161 — FHLB advances 40,000 40,855 — 40,855 — Subordinated debt 6,844 7,000 — — 7,000 Accrued interest payable 318 318 — 318 —

Changes in Accumulated Other 30

Changes in Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2016
Balances in Accumulated Other Comprehensive Income (Loss)	The balances in accumulated other comprehensive income (loss) are shown in the following tables: For the Three Months Ended September 30, 2016 Net Unrealized Pension and Accumulated Other Gains (Losses) Post-retirement Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance July 1, 2016 $ 624 $ (883 ) $ (259 ) Change in net unrealized holding gains on securities, before reclassification — — — Reclassification for previously unrealized net gains recognized in income, net of tax expense of $62 (118 ) — (118 ) Balance September 30, 2016 $ 506 $ (883 ) $ (377 ) For the Three Months Ended September 30, 2015 Net Unrealized Pension and Post-retirement Accumulated Other Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance July 1, 2015 $ (130 ) $ (966 ) $ (1,096 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $136 267 — 267 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $0 (2 ) — (2 ) Balance September 30, 2015 $ 135 $ (966 ) $ (831 ) For the Nine Months Ended September 30 , 2016 Net Unrealized Pension and Accumulated Other Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance January 1, 2016 $ 107 $ (883 ) $ (776 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $305 590 — 590 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $99 (191 ) — (191 ) Balance September 30, 2016 $ 506 $ (883 ) $ (377 ) For the Nine Months Ended September 30, 2015 Net Unrealized Pension and Post-retirement Accumulated Other Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance January 1, 2015 $ 45 $ (966 ) $ (921 ) Change in net unrealized holding losses on securities, before reclassification, net of tax expense of $47 93 — 93 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $1 (3 ) — (3 ) Balance September 30, 2015 $ 135 $ (966 ) $ (831 )
Reclassification of Unrealized Gains (Losses) and Impairments on Securities	Reclassification for previously unrealized gains (losses) and impairments on securities are reported in the Consolidated Statements of Income as follows. No unrealized gains (losses) on pension and post-employment related costs were reclassified to the Consolidated Statements of Income in the three and nine months ended September 30, 2016 and 2015. Accumulated Other Comprehensive Income (Loss) Reclassification for the Three Months Ended Holding Losses on Securities (Dollars in thousands) September 30, 2016 September 30, 2015 Net gains on sale of securities available-for-securities $ 180 $ 2 Tax expense (62 ) — Impact on net income $ 118 $ 2 Accumulated Other Comprehensive Income (Loss) Reclassification for the Nine Months Ended Holding Losses on Securities (Dollars in thousands) September 30, 2016 September 30, 2015 Net gains on sale of securities available-for-securities $ 290 $ 4 Tax expense (99 ) (1 ) Impact on net income $ 191 $ 3

General - Additional Informatio

General - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016
Bank Of Lancaster
Organization Presentation And General [Line Items]
Percent of ownership	100.00%
Bay Trust Company
Organization Presentation And General [Line Items]
Percent of ownership	100.00%
Steptoes Holdings
Organization Presentation And General [Line Items]
Percent of ownership	100.00%

Significant Accounting Polici32

Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Significant Accounting Policies [Line Items]
Unrealized gains adjustment, net of tax	$ (118,000)	$ 265,000	$ 399,000	$ 90,000
Unrealized market gain included in accumulated other comprehensive income, tax		$ 136,000	$ 305,000	$ 47,000
Personal loans charged off period no later than period			180 days
Percentage of excess loan balance for watch category			90.00%
Impaired loans measurement			Impaired loans measured for impairment generally include (1) non-accruing Special mention, Substandard and Doubtful loans in excess of $250,000; (2) Substandard and Doubtful loans in excess of $500,000; (3) Special Mention loans in excess of $500,000 if any of the loans in the relationship are more than 30 days past due or if the borrower has filed for bankruptcy; and (4) all TDRs.
Loan Receivables	153,812,000		$ 153,812,000		$ 151,305,000
Special Mention
Significant Accounting Policies [Line Items]
Loan Receivables	2,048,000		$ 2,048,000		3,954,000
Loan due days			30 days
Residential First Mortgages
Significant Accounting Policies [Line Items]
Minimum balance in order to assign a risk rating grade	1,000,000		$ 1,000,000
Consumer and Other Loans
Significant Accounting Policies [Line Items]
Minimum balance in order to assign a risk rating grade	250,000		$ 250,000
Certificates of deposit
Significant Accounting Policies [Line Items]
Unrealized gains adjustment, net of tax					31,000
Unrealized market gain included in accumulated other comprehensive income, tax					$ 20,000
Minimum
Significant Accounting Policies [Line Items]
Number of days past due for a loan to remain on accrual status			90 days
Minimum | Non-accruing Special mention, Substandard and Doubtful loans
Significant Accounting Policies [Line Items]
Loan Receivables	250,000		$ 250,000
Minimum | Substandard and Doubtful loans
Significant Accounting Policies [Line Items]
Loan Receivables	500,000		500,000
Minimum | Special Mention
Significant Accounting Policies [Line Items]
Loan Receivables	$ 500,000		$ 500,000

Securities - Aggregate Amortize

Securities - Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities Portfolio (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 51,769	$ 53,924
Gross Unrealized Gains	871	382
Gross Unrealized (Losses)	(77)	(216)
Fair Value	52,563	54,090	[1]
US Government Agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	25,461	21,375
Gross Unrealized Gains	272	69
Gross Unrealized (Losses)	(56)	(156)
Fair Value	25,677	21,288
State and Municipal Obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	19,363	28,599
Gross Unrealized Gains	541	313
Gross Unrealized (Losses)	(21)	(55)
Fair Value	19,883	28,857
Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	6,945	3,950
Gross Unrealized Gains	58
Gross Unrealized (Losses)		(5)
Fair Value	$ 7,003	$ 3,945
[1]	Derived from Audited December 31, 2015 Financial Statements

Securities - Gross Realized Gai

Securities - Gross Realized Gains and Gross Realized Losses on Sales of Securities (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of Available-for-sale Securities [Line Items]
Gross realized gains	$ 180	$ 3	$ 300	$ 27
Gross realized losses		(1)	(10)	(23)
Net realized gains (losses)	180	2	290	4
Aggregate proceeds	$ 4,984	$ 1,995	$ 14,582	$ 4,819

Investment Securities - Additio

Investment Securities - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)Bond	Sep. 30, 2015	Sep. 30, 2016USD ($)Bond	Sep. 30, 2015	Dec. 31, 2015USD ($)Bond
Schedule of Available-for-sale Securities [Line Items]
Average yields (taxable equivalent) on securities	3.10%	2.43%	3.07%	2.45%
Market value of securities	$ 15,500		$ 15,500		$ 8,600
Securities sold under repurchase agreements	12,984		12,984		7,161	[1]
Company's investment in Federal Home Loan Bank stock	1,500		1,500		2,000
Company's investment in Federal Reserve Bank stock	$ 565		$ 565		$ 505
Municipal Securities
Schedule of Available-for-sale Securities [Line Items]
Bonds with unrealized loss positions | Bond	6		6		17
US Government Agencies
Schedule of Available-for-sale Securities [Line Items]
Bonds with unrealized loss positions | Bond	12		12		24
Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Bonds with unrealized loss positions | Bond					1
[1]	Derived from Audited December 31, 2015 Financial Statements

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value	$ 7,637	$ 16,932
Less than 12 months, Unrealized Loss	(64)	(163)
12 months or more, Fair Value	1,385	4,900
12 months or more, Unrealized Loss	(13)	(53)
Fair Value, Total	9,022	21,832
Total Unrealized Loss	(77)	(216)
Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value		495
Less than 12 months, Unrealized Loss		(5)
Fair Value, Total		495
Total Unrealized Loss		(5)
US Government Agencies
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value	5,573	13,871
Less than 12 months, Unrealized Loss	(43)	(141)
12 months or more, Fair Value	1,385	1,619
12 months or more, Unrealized Loss	(13)	(15)
Fair Value, Total	6,958	15,490
Total Unrealized Loss	(56)	(156)
State and Municipal Obligations
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value	2,064	2,566
Less than 12 months, Unrealized Loss	(21)	(17)
12 months or more, Fair Value		3,281
12 months or more, Unrealized Loss		(38)
Fair Value, Total	2,064	5,847
Total Unrealized Loss	$ (21)	$ (55)

Loans - Summary of Balances of

Loans - Summary of Balances of Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Summary of balances of loans
Total loans	$ 368,189	$ 347,222
Net unamortized deferred loan costs	374	324
Allowance for loan losses	(3,741)	(4,223)	[1]
Loans, net	364,822	343,323	[1]
Construction, Land and Land Development
Summary of balances of loans
Total loans	41,530	42,129
Farmland
Summary of balances of loans
Total loans	1,051	1,030
Commercial Mortgages (Non-Owner Occupied)
Summary of balances of loans
Total loans	29,131	29,086
Commercial Mortgages (Owner Occupied)
Summary of balances of loans
Total loans	45,504	43,956
Residential First Mortgages
Summary of balances of loans
Total loans	185,373	164,405
Residential Revolving and Junior Mortgages
Summary of balances of loans
Total loans	25,389	26,497
Commercial and Industrial
Summary of balances of loans
Total loans	36,596	35,104
Allowance for loan losses	(480)	(599)
Consumer and Other Loans
Summary of balances of loans
Total loans	3,615	5,015
Allowance for loan losses	$ (53)	$ (122)
[1]	Derived from Audited December 31, 2015 Financial Statements

Loans - Additional Information

Loans - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Jul. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain on sold loans		$ 357	$ 212
VISA Loan Portfolio
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gain on sold loans	$ 150	$ 150
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of days past due for a loan to remain on accrual status		90 days

Loans - Recorded Investment in

Loans - Recorded Investment in Past Due and Non-accruing Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	$ 1,247	$ 1,906
90 Days or More Past Due and Still Accruing	178	11
Nonaccruals	4,858	6,433
Total Past Due and Nonaccruals	6,283	8,350
Current	361,906	338,872
Total Gross Loans	368,189	347,222
Construction, Land and Land Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	62	93
90 Days or More Past Due and Still Accruing	67
Nonaccruals	627	672
Total Past Due and Nonaccruals	756	765
Current	40,774	41,364
Total Gross Loans	41,530	42,129
Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	1,051	1,030
Total Gross Loans	1,051	1,030
Commercial Mortgages (Non-Owner Occupied)
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due		264
Total Past Due and Nonaccruals		264
Current	29,131	28,822
Total Gross Loans	29,131	29,086
Commercial Mortgages (Owner Occupied)
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	294	133
90 Days or More Past Due and Still Accruing	100
Nonaccruals	1,650	2,350
Total Past Due and Nonaccruals	2,044	2,483
Current	43,460	41,473
Total Gross Loans	45,504	43,956
Residential First Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	860	1,304
Nonaccruals	2,276	2,841
Total Past Due and Nonaccruals	3,136	4,145
Current	182,237	160,260
Total Gross Loans	185,373	164,405
Residential Revolving and Junior Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	12	70
Nonaccruals	213	277
Total Past Due and Nonaccruals	225	347
Current	25,164	26,150
Total Gross Loans	25,389	26,497
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	19	10
90 Days or More Past Due and Still Accruing	11
Nonaccruals	92	285
Total Past Due and Nonaccruals	122	295
Current	36,474	34,809
Total Gross Loans	36,596	35,104
Consumer and Other Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due		32
90 Days or More Past Due and Still Accruing		11
Nonaccruals		8
Total Past Due and Nonaccruals		51
Current	3,615	4,964
Total Gross Loans	$ 3,615	$ 5,015

Allowance for Loan Losses - Loa

Allowance for Loan Losses - Loan Receivables Evaluated for Impairment Individually and Collectively by Segment (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	$ 10,519	$ 10,826
Collectively evaluated for impairment	357,670	336,396
Total Gross Loans	368,189	347,222
Mortgage Loans on Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	10,426	10,542
Collectively evaluated for impairment	317,552	296,561
Total Gross Loans	327,978	307,103
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	93	284
Collectively evaluated for impairment	36,503	34,820
Total Gross Loans	36,596	35,104
Consumer and Other Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment	3,615	5,015
Total Gross Loans	$ 3,615	$ 5,015

Allowance for Loan Losses - All

Allowance for Loan Losses - Allowance for Loan Losses Disaggregated Based on Loan Receivables Evaluated for Impairment Individually and Collectively by Segment (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	$ 843	$ 1,534
Collectively evaluated for impairment	2,898	2,689
Total allowance for loan losses	3,741	4,223	[1]
Mortgage Loans on Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	751	1,256
Collectively evaluated for impairment	2,457	2,246
Total allowance for loan losses	3,208	3,502
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	92	278
Collectively evaluated for impairment	388	321
Total allowance for loan losses	480	599
Consumer and Other Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collectively evaluated for impairment	53	122
Total allowance for loan losses	$ 53	$ 122
[1]	Derived from Audited December 31, 2015 Financial Statements

Allowance for Loan Losses - A42

Allowance for Loan Losses - Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
ALLOWANCE FOR LOAN LOSSES:
Beginning Balance	$ 3,547	$ 3,439	$ 4,223	$ 3,205
Reclassification of allowance related to sold loans	(27)		(27)
(Charge-offs)	(56)	(161)	(901)	(248)
Recoveries	18	12	39	63
Provision	259	84	407	354
Ending Balance	3,741	3,374	3,741	3,374
Mortgage Loans on Real Estate
ALLOWANCE FOR LOAN LOSSES:
Beginning Balance	2,995	2,889	3,502	2,778
(Charge-offs)	(46)	(12)	(702)	(13)
Recoveries	15	6	25	16
Provision	244	(69)	383	33
Ending Balance	3,208	2,814	3,208	2,814
Commercial and Industrial
ALLOWANCE FOR LOAN LOSSES:
Beginning Balance	435	420	599	323
(Charge-offs)		(132)	(158)	(132)
Recoveries			5
Provision	45	145	34	242
Ending Balance	480	433	480	433
Consumer and Other Loans
ALLOWANCE FOR LOAN LOSSES:
Beginning Balance	117	130	122	104
Reclassification of allowance related to sold loans	(27)		(27)
(Charge-offs)	(10)	(17)	(41)	(103)
Recoveries	3	6	9	47
Provision	(30)	8	(10)	79
Ending Balance	$ 53	$ 127	$ 53	$ 127

Allowance for Loan Losses - Add

Allowance for Loan Losses - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)Property	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)PropertyPerson	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)Property	Apr. 30, 2015USD ($)Property
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period of nonperforming loans			90 days
Non-accruing loans excluded from impaired loan	$ 77,000		$ 77,000		$ 95,000
Non-accruing loans accrued interest	$ 1,000	$ 1,000	$ 3,000	$ 9,000
No. of Properties | Property	14		14		16
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential properties collateralized with loan | Property			3
Residential mortgage loan amount	$ 601,000		$ 601,000
No.of Borrowers | Person			2
No. of Properties | Property	3		3		3
Residential | Other assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Properties marketed for sale, value	$ 708,000		$ 708,000
No. of Properties | Property	1		1
Branch Office | Other assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Properties marketed for sale, value						$ 403,000
No. of Properties | Property						1
Residential First Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum balance in order to assign a risk rating grade	$ 1,000,000		$ 1,000,000
Consumer and Other Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum balance in order to assign a risk rating grade	$ 250,000		$ 250,000

Allowance for Loan Losses - Int

Allowance for Loan Losses - Internal Risk Rating Grades (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
INTERNAL RISK RATING GRADES
Loan Receivables	$ 153,812	$ 151,305
Pass
INTERNAL RISK RATING GRADES
Loan Receivables	130,561	122,386
Watch
INTERNAL RISK RATING GRADES
Loan Receivables	16,304	20,071
Special Mention
INTERNAL RISK RATING GRADES
Loan Receivables	2,048	3,954
Substandard
INTERNAL RISK RATING GRADES
Loan Receivables	4,899	4,894
Construction, Land and Land Development
INTERNAL RISK RATING GRADES
Loan Receivables	41,530	42,129
Construction, Land and Land Development | Pass
INTERNAL RISK RATING GRADES
Loan Receivables	34,042	34,692
Construction, Land and Land Development | Watch
INTERNAL RISK RATING GRADES
Loan Receivables	5,466	5,337
Construction, Land and Land Development | Special Mention
INTERNAL RISK RATING GRADES
Loan Receivables	182	1,119
Construction, Land and Land Development | Substandard
INTERNAL RISK RATING GRADES
Loan Receivables	1,840	981
Farmland
INTERNAL RISK RATING GRADES
Loan Receivables	1,051	1,030
Farmland | Pass
INTERNAL RISK RATING GRADES
Loan Receivables	1,051	1,030
Commercial Mortgages (Non-Owner Occupied)
INTERNAL RISK RATING GRADES
Loan Receivables	29,131	29,086
Commercial Mortgages (Non-Owner Occupied) | Pass
INTERNAL RISK RATING GRADES
Loan Receivables	24,398	24,258
Commercial Mortgages (Non-Owner Occupied) | Watch
INTERNAL RISK RATING GRADES
Loan Receivables	4,212	4,564
Commercial Mortgages (Non-Owner Occupied) | Special Mention
INTERNAL RISK RATING GRADES
Loan Receivables	273
Commercial Mortgages (Non-Owner Occupied) | Substandard
INTERNAL RISK RATING GRADES
Loan Receivables	248	264
Commercial Mortgages (Owner Occupied)
INTERNAL RISK RATING GRADES
Loan Receivables	45,504	43,956
Commercial Mortgages (Owner Occupied) | Pass
INTERNAL RISK RATING GRADES
Loan Receivables	36,044	33,023
Commercial Mortgages (Owner Occupied) | Watch
INTERNAL RISK RATING GRADES
Loan Receivables	5,433	4,968
Commercial Mortgages (Owner Occupied) | Special Mention
INTERNAL RISK RATING GRADES
Loan Receivables	1,467	2,687
Commercial Mortgages (Owner Occupied) | Substandard
INTERNAL RISK RATING GRADES
Loan Receivables	2,560	3,278
Commercial and Industrial
INTERNAL RISK RATING GRADES
Loan Receivables	36,596	35,104
Commercial and Industrial | Pass
INTERNAL RISK RATING GRADES
Loan Receivables	35,026	29,383
Commercial and Industrial | Watch
INTERNAL RISK RATING GRADES
Loan Receivables	1,193	5,202
Commercial and Industrial | Special Mention
INTERNAL RISK RATING GRADES
Loan Receivables	126	148
Commercial and Industrial | Substandard
INTERNAL RISK RATING GRADES
Loan Receivables	$ 251	$ 371

Allowance for Loan Losses - Per

Allowance for Loan Losses - Performing and Non Performing Loans (Detail) - USD ($) $ in Thousands		Sep. 30, 2016		Dec. 31, 2015
Performing and non performing loans
Loan receivables		$ 214,377		$ 195,917
Performing
Performing and non performing loans
Loan receivables		211,888		192,780
Nonperforming
Performing and non performing loans
Loan receivables		2,489		3,137
Residential First Mortgages
Performing and non performing loans
Loan receivables		185,373	[1]	164,405	[2]
Residential First Mortgages | Performing
Performing and non performing loans
Loan receivables		183,097	[1]	161,564	[2]
Residential First Mortgages | Nonperforming
Performing and non performing loans
Loan receivables		2,276	[1]	2,841	[2]
Residential Revolving and Junior Mortgages
Performing and non performing loans
Loan receivables		25,389	[3]	26,497	[4]
Residential Revolving and Junior Mortgages | Performing
Performing and non performing loans
Loan receivables		25,176	[3]	26,220	[4]
Residential Revolving and Junior Mortgages | Nonperforming
Performing and non performing loans
Loan receivables		213	[3]	277	[4]
Consumer and Other Loans
Performing and non performing loans
Loan receivables		3,615	[5]	5,015	[6]
Consumer and Other Loans | Performing
Performing and non performing loans
Loan receivables		$ 3,615	[5]	4,996	[6]
Consumer and Other Loans | Nonperforming
Performing and non performing loans
Loan receivables	[6]			$ 19
[1]	Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.3 million as of September 30, 2016.
[2]	Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.9 million as of December 31, 2015.
[3]	Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $265 thousand as of September 30, 2016.
[4]	Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $372 thousand as of December 31, 2015.
[5]	No Consumer Loans had been assigned a risk rating grade of Substandard as of September 30, 2016.
[6]	No Consumer Loans had been assigned a risk rating grade of Substandard as of December 31, 2015.

Allowance for Loan Losses - P46

Allowance for Loan Losses - Performing and Non Performing Loans (Parenthetical) (Detail) - USD ($) $ in Thousands	Sep. 30, 2016		Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Risk rating grade totaled	$ 214,377		$ 195,917
Residential First Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Risk rating grade totaled	185,373	[1]	164,405	[2]
Residential First Mortgages | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Risk rating grade totaled	3,300		3,900
Residential Revolving and Junior Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Risk rating grade totaled	25,389	[3]	26,497	[4]
Residential Revolving and Junior Mortgages | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Risk rating grade totaled	265		372
Consumer and Other Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Risk rating grade totaled	3,615	[5]	5,015	[6]
Consumer and Other Loans | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Risk rating grade totaled	$ 0		$ 0
[1]	Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.3 million as of September 30, 2016.
[2]	Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.9 million as of December 31, 2015.
[3]	Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $265 thousand as of September 30, 2016.
[4]	Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $372 thousand as of December 31, 2015.
[5]	No Consumer Loans had been assigned a risk rating grade of Substandard as of September 30, 2016.
[6]	No Consumer Loans had been assigned a risk rating grade of Substandard as of December 31, 2015.

Allowance for Loan Losses - Com

Allowance for Loan Losses - Company's Recorded Investment and Customers' Unpaid Principal Balances for Impaired Loans, with Associated Allowance Amount (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance, Recorded Investment		$ 7,301		$ 7,301		$ 5,424
With no related allowance, Customers' Unpaid Principal Balance		7,647		7,647		5,504
With an allowance recorded, Recorded Investment		3,218		3,218		5,402
With an allowance recorded, Customers' Unpaid Principal Balance		3,276		3,276		5,689
With an allowance recorded, Related Allowance		843		843		1,534
Total Impaired Loans, Recorded Investment		10,519		10,519		10,826
Total Impaired Loans, Customers' Unpaid Principal Balance		10,923		10,923		11,193
Total Impaired Loans, Related Allowance		843		843		1,534
With no related allowance, Average Recorded Investment		7,454	$ 4,180	6,667	$ 3,616
With no related allowance, Interest Income Recognized		40	31	117	87
With an allowance recorded, Average Recorded Investment		3,227	3,490	3,216	3,458
With an allowance recorded, Interest Income Recognized		30	30	91	95
Total, Average Recorded Investment		10,681	7,670	9,883	7,074
Total, Interest Income Recognized		70	61	208	182
Construction, Land and Land Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance, Recorded Investment		1,532		1,532		445
With no related allowance, Customers' Unpaid Principal Balance		1,540		1,540		451
With an allowance recorded, Recorded Investment		248		248		262
With an allowance recorded, Customers' Unpaid Principal Balance		287		287		290
With an allowance recorded, Related Allowance		150		150		120
Total Impaired Loans, Recorded Investment		1,780		1,780		707
Total Impaired Loans, Customers' Unpaid Principal Balance		1,827		1,827		741
Total Impaired Loans, Related Allowance		150		150		120
With no related allowance, Average Recorded Investment		1,533	448	1,262	449
With no related allowance, Interest Income Recognized		14		41
With an allowance recorded, Average Recorded Investment		250	268	255	272
With an allowance recorded, Interest Income Recognized		1	1	3	4
Total, Average Recorded Investment		1,783	716	1,517	721
Total, Interest Income Recognized		15	1	44	4
Residential First Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance, Recorded Investment		2,520		2,520		3,130
With no related allowance, Customers' Unpaid Principal Balance		2,552		2,552		3,166
With an allowance recorded, Recorded Investment		1,961		1,961		2,507
With an allowance recorded, Customers' Unpaid Principal Balance		1,961		1,961		2,507
With an allowance recorded, Related Allowance		366		366		308
Total Impaired Loans, Recorded Investment		4,481		4,481		5,637
Total Impaired Loans, Customers' Unpaid Principal Balance		4,513		4,513		5,673
Total Impaired Loans, Related Allowance		366		366		308
With no related allowance, Average Recorded Investment		2,618	2,061	2,432	1,813
With no related allowance, Interest Income Recognized		4	18	9	53
With an allowance recorded, Average Recorded Investment		1,965	1,741	1,956	1,748
With an allowance recorded, Interest Income Recognized		24	21	66	64
Total, Average Recorded Investment		4,583	3,802	4,388	3,561
Total, Interest Income Recognized		28	39	75	117
Residential Revolving and Junior Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance, Recorded Investment	[1]	951		951		233
With no related allowance, Customers' Unpaid Principal Balance	[1]	951		951		233
With an allowance recorded, Recorded Investment	[1]	232		232		258
With an allowance recorded, Customers' Unpaid Principal Balance	[1]	235		235		259
With an allowance recorded, Related Allowance	[1]	148		148		150
Total Impaired Loans, Recorded Investment	[1]	1,183		1,183		491
Total Impaired Loans, Customers' Unpaid Principal Balance	[1]	1,186		1,186		492
Total Impaired Loans, Related Allowance	[1]	148		148		150
With no related allowance, Average Recorded Investment	[1]	951	50	739	50
With no related allowance, Interest Income Recognized	[1]	9	1	30	2
With an allowance recorded, Average Recorded Investment	[1]	234	209	209	191
With an allowance recorded, Interest Income Recognized	[1]		2	4	6
Total, Average Recorded Investment	[1]	1,185	259	948	241
Total, Interest Income Recognized	[1]	9	3	34	8
Commercial Mortgages (Non-Owner Occupied)
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance, Recorded Investment		248		248		264
With no related allowance, Customers' Unpaid Principal Balance		248		248		264
Total Impaired Loans, Recorded Investment		248		248		264
Total Impaired Loans, Customers' Unpaid Principal Balance		248		248		264
With no related allowance, Average Recorded Investment		248	264	252	264
With no related allowance, Interest Income Recognized		4	4	11	12
Total, Average Recorded Investment		248	264	252	264
Total, Interest Income Recognized		4	4	11	12
Commercial Mortgages (Owner Occupied)
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance, Recorded Investment		2,050		2,050		1,352
With no related allowance, Customers' Unpaid Principal Balance		2,356		2,356		1,390
With an allowance recorded, Recorded Investment		684		684		2,091
With an allowance recorded, Customers' Unpaid Principal Balance		692		692		2,348
With an allowance recorded, Related Allowance		87		87		678
Total Impaired Loans, Recorded Investment		2,734		2,734		3,443
Total Impaired Loans, Customers' Unpaid Principal Balance		3,048		3,048		3,738
Total Impaired Loans, Related Allowance		87		87		678
With no related allowance, Average Recorded Investment		2,104	1,354	1,982	1,036
With no related allowance, Interest Income Recognized		9	8	26	20
With an allowance recorded, Average Recorded Investment		686	1,152	691	1,156
With an allowance recorded, Interest Income Recognized		5	6	17	21
Total, Average Recorded Investment		2,790	2,506	2,673	2,192
Total, Interest Income Recognized		14	14	43	41
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
With an allowance recorded, Recorded Investment		93		93		284
With an allowance recorded, Customers' Unpaid Principal Balance		101		101		285
With an allowance recorded, Related Allowance		92		92		278
Total Impaired Loans, Recorded Investment		93		93		284
Total Impaired Loans, Customers' Unpaid Principal Balance		101		101		285
Total Impaired Loans, Related Allowance		92		92		$ 278
With an allowance recorded, Average Recorded Investment		92	120	105	91
With an allowance recorded, Interest Income Recognized				1
Total, Average Recorded Investment		$ 92	120	105	91
Total, Interest Income Recognized				$ 1
Consumer and Other Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
With no related allowance, Average Recorded Investment	[2]		3		4
Total, Average Recorded Investment	[2]		$ 3		$ 4
[1]	Junior mortgages include equity lines.
[2]	Includes credit cards.

Allowance for Loan Losses - Sum

Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) $ in Thousands		3 Months Ended	9 Months Ended
		Sep. 30, 2015USD ($)Loan	Sep. 30, 2016USD ($)Loan	[1]	Sep. 30, 2015USD ($)Loan
Commercial Mortgages (Owner Occupied)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | Loan	[1]				1
Pre-Modification Outstanding Recorded Investment	[1]				$ 105
Post-Modification Outstanding Recorded Investment	[1]				$ 124
Subsequently defaulted number of loans | Loan					1
Subsequently defaulted recorded investment					$ 124
Residential First Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Loans | Loan	[2]	1	1		1	[1]
Pre-Modification Outstanding Recorded Investment	[2]	$ 213	$ 244		$ 213	[1]
Post-Modification Outstanding Recorded Investment	[2]	$ 211	$ 244		$ 211	[1]
[1]	Modification was a capitalization of interest.
[2]	Modification was an extension of loan terms.

Other Real Estate Owned Net - S

Other Real Estate Owned Net - Summary of Properties Included in Other Real Estate Owned (OREO) (Detail) $ in Thousands	Sep. 30, 2016USD ($)Property	Dec. 31, 2015USD ($)Property
Real Estate Properties [Line Items]
No. of Properties | Property	14	16
Carrying Value | $	$ 2,764	$ 1,870	[1]
Residential
Real Estate Properties [Line Items]
No. of Properties | Property	3	3
Carrying Value | $	$ 1,172	$ 540
Land lots
Real Estate Properties [Line Items]
No. of Properties | Property	6	7
Carrying Value | $	$ 536	$ 413
Convenience Stores
Real Estate Properties [Line Items]
No. of Properties | Property	1	2
Carrying Value | $	$ 59	$ 191
Restaurant
Real Estate Properties [Line Items]
No. of Properties | Property	1	1
Carrying Value | $	$ 55	$ 55
Commercial properties
Real Estate Properties [Line Items]
No. of Properties | Property	3	3
Carrying Value | $	$ 942	$ 671
[1]	Derived from Audited December 31, 2015 Financial Statements

Earnings per share - Weighted A

Earnings per share - Weighted Average Number of Shares Used in Computing Earnings Per Share (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Basic earnings per share	4,774,856	4,780,649	4,774,856	4,797,405
Effect of dilutive securities:
Stock options	22,665	15,359	18,291	13,724
Diluted earnings per share	4,797,521	4,796,008	4,793,147	4,811,129
Basic earnings per share	$ 0.18	$ 0.06	$ 0.41	$ 0.20
Diluted earnings per share	$ 0.18	$ 0.06	$ 0.41	$ 0.20

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Computation Of Earnings Per Share Line Items
Shares not included in computing diluted earnings per share because effects were anti-dilutive	33,451	60,973	47,041	68,473

Stock-Based Compensation Plans

Stock-Based Compensation Plans - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant	342,000		342,000
Stock-based compensation expense	$ 0	$ 0	$ 16,000	$ 17,000
Unrecognized compensation expenses related to stock award	$ 0		$ 0
Options granted			7,500	7,500
Options vested			7,500	7,500
Aggregate fair value of options granted			$ 16,000	$ 17,000

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Options (Detail)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate (5 year Treasury)	1.49%	1.52%
Expected dividend yield	0.00%	0.00%
Expected term (years)	5 years	5 years
Expected volatility	40.10%	47.10%

Stock-Based Compensation - Fa54

Stock-Based Compensation - Fair Value of Options (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock price volatility, risk free interest period	5 years	5 years

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($)		9 Months Ended		12 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, beginning		211,185
Granted, shares		7,500	7,500
Forfeited, shares		(13,787)
Exercised, shares		0
Expired, shares		(8,598)
Options outstanding and exercisable, ending		196,300		211,185
Options outstanding, beginning, Weighted Average Exercise Price		$ 6.57
Granted, Weighted Average Exercise Price		5.76
Forfeited, Weighted Average Exercise Price		5.90
Exercised, Weighted Average Exercise Price		0
Expired, Weighted Average Exercise Price		12.84
Options outstanding and exercisable, ending, Weighted Average Exercise Price		$ 6.20		$ 6.57
Options outstanding and exercisable, ending, Weighted Average Remaining Contractual Life		5 years 8 months 12 days		6 years
Options outstanding and exercisable, ending, Aggregate Intrinsic Value	[1]	$ 126,134
[1]	The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2016. This amount changes based on changes in the market value of the Company's common stock.

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016USD ($)
Defined Contribution Plan Disclosure [Line Items]
Minimum age of full-time employees	21 years
Conditional age-1 for availing plan	55 years
Conditional age-2 for availing plan	65 years
Conditional years of service -1 for availing plan	10 years
Conditional years of service-2 for availing plan	5 years
Pension Plan, Defined Benefit
Defined Contribution Plan Disclosure [Line Items]
Expected employer contribution	$ 0
Other Postretirement Benefit Plan, Defined Benefit
Defined Contribution Plan Disclosure [Line Items]
Expected employer contribution	2,000
Employer contribution	$ 5,000

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Gain) (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Pension Plan, Defined Benefit
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Interest cost	$ 101	$ 99
Expected return on plan assets	(142)	(148)
Settlement loss	21
Recognized net actuarial loss	58	57
Net periodic cost	38	8
Other Postretirement Benefit Plan, Defined Benefit
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	17	17
Interest cost	21	23
Net periodic cost	$ 38	$ 40

Long Term Debt - Additional Inf

Long Term Debt - Additional Information (Detail)	May 28, 2015USD ($)	Sep. 30, 2016USD ($)Loan	Apr. 30, 2016USD ($)Loan	Feb. 29, 2016USD ($)Loan	Sep. 30, 2016USD ($)Loan	Dec. 31, 2015USD ($)Loan
Debt Instrument [Line Items]
Federal Home Loan Bank advances		$ 25,000,000			$ 25,000,000	$ 40,000,000	[1]
Number of FHLB debt advances | Loan		4			4	7
Number of payments for FHLB debt advances | Loan		3	3	3	3
Repayment on Federal Home Loan Bank advances		$ 5,000,000	$ 5,000,000	$ 5,000,000
Immediate available credit		84,700,000			$ 84,700,000
Total line of credit		$ 115,700,000			$ 115,700,000
Weighted average interest rate		1.74%			1.74%	1.17%
Subordinated Debt Due May 2025
Debt Instrument [Line Items]
Current Interest Rate	6.50%	6.50%			6.50%
Debt instrument, face amount	$ 7,000,000	$ 7,000,000			$ 7,000,000
Debt instrument, maturity date	May 28, 2025
Debt instrument, frequency of payment					1st of March and September of each year, commencing September 1, 2015
Federal Home Loan Bank Advances Three
Debt Instrument [Line Items]
Federal Home Loan Bank advances		$ 5,000,000			$ 5,000,000
Federal Home Loan Bank, Advances, Maturity Period, Fixed Rate					3 months
Current Interest Rate		0.49%			0.49%
[1]	Derived from Audited December 31, 2015 Financial Statements

Long Term Debt - Advances of De

Long Term Debt - Advances of Debt (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	[1]
Debt Instrument [Line Items]
Federal Home Loan Bank advances	$ 25,000,000	$ 40,000,000
Federal Home Loan Bank Advances Three
Debt Instrument [Line Items]
Federal Home Loan Bank advances	$ 5,000,000
Current Interest Rate	0.49%
Adjustable Rate Hybrid | Federal Home Loan Bank Advances One
Debt Instrument [Line Items]
Federal Home Loan Bank advances	$ 10,000,000
Originated	Apr. 12, 2013
Current Interest Rate	3.0491%
Maturity Date	Apr. 13, 2020
Fixed Rate Credit | Federal Home Loan Bank Advances Two
Debt Instrument [Line Items]
Federal Home Loan Bank advances	$ 5,000,000
Originated	Oct. 20, 2015
Current Interest Rate	0.52%
Maturity Date	Oct. 20, 2016
Fixed Rate Credit | Federal Home Loan Bank Advances Three
Debt Instrument [Line Items]
Federal Home Loan Bank advances	$ 5,000,000
Originated	Dec. 21, 2015
Current Interest Rate	0.99%
Maturity Date	Jun. 15, 2017
Fixed Rate Credit | Federal Home Loan Bank Advances Four
Debt Instrument [Line Items]
Federal Home Loan Bank advances	$ 5,000,000
Originated	Dec. 22, 2015
Current Interest Rate	1.08%
Maturity Date	Sep. 15, 2017
[1]	Derived from Audited December 31, 2015 Financial Statements

Subordinated Debt (Detail)

Subordinated Debt (Detail) - USD ($)	Sep. 30, 2016	Dec. 31, 2015	[1]	May 28, 2015
Debt and Financial Instruments [Line Items]
Subordinated debt, net of issuance costs	$ 6,856,000	$ 6,844,000
Subordinated Debt Due May 2025
Debt and Financial Instruments [Line Items]
Debt instrument, face amount	7,000,000			$ 7,000,000
Less: Issuance costs	(144,000)
Subordinated debt, net of issuance costs	$ 6,856,000
[1]	Derived from Audited December 31, 2015 Financial Statements

Subordinated Debt (Parenthetica

Subordinated Debt (Parenthetical) (Detail)	Sep. 30, 2016	May 28, 2015
Subordinated Debt Due May 2025
Debt and Financial Instruments [Line Items]
Debt instrument, coupon percentage	6.50%	6.50%

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 3 - Mortgage Servicing Rights	9 Months Ended	12 Months Ended
	Sep. 30, 2016$ / Loan	Dec. 31, 2015Loan$ / Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loan segregated, number of pools | Loan		14
Service costs assumed, per loan | $ / Loan	6	6
Average PSA assumed rate	217.00%	163.00%
Discount rate	10.00%	11.00%
100% PSA | First Month
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Prepayment rate	0.00%
100% PSA | Between First Month and Month 30
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Prepayment rate increase, each month	0.20%
100% PSA | Month 30
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Prepayment rate	6.00%
100% PSA | Thereafter
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Prepayment rate	6.00%

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Securities available for sale:
Securities available-for-sale	$ 52,563	$ 54,090	[1]
Mortgage servicing rights	590	658	[1]
Defined benefit plan assets:
Defined Benefit Plan Fair Value Of Plan Assets	2,689	2,806
Corporate Bonds
Securities available for sale:
Securities available-for-sale	7,003	3,945
US Government Agencies
Securities available for sale:
Securities available-for-sale	25,677	21,288
State and Municipal Obligations
Securities available for sale:
Securities available-for-sale	19,883	28,857
Cash and Cash Equivalents
Defined benefit plan assets:
Defined Benefit Plan Fair Value Of Plan Assets	3	3
Fixed Income Funds
Defined benefit plan assets:
Defined Benefit Plan Fair Value Of Plan Assets	1,071	1,119
Equity Funds
Defined benefit plan assets:
Defined Benefit Plan Fair Value Of Plan Assets	1,615	1,684
Fair Value, Inputs, Level 1
Securities available for sale:
Securities available-for-sale	1,597	1,216
Defined benefit plan assets:
Defined Benefit Plan Fair Value Of Plan Assets	2,689	2,806
Fair Value, Inputs, Level 1 | US Government Agencies
Securities available for sale:
Securities available-for-sale	1,597	1,216
Fair Value, Inputs, Level 1 | Cash and Cash Equivalents
Defined benefit plan assets:
Defined Benefit Plan Fair Value Of Plan Assets	3	3
Fair Value, Inputs, Level 1 | Fixed Income Funds
Defined benefit plan assets:
Defined Benefit Plan Fair Value Of Plan Assets	1,071	1,119
Fair Value, Inputs, Level 1 | Equity Funds
Defined benefit plan assets:
Defined Benefit Plan Fair Value Of Plan Assets	1,615	1,684
Fair Value, Inputs, Level 2
Securities available for sale:
Securities available-for-sale	45,463	48,929
Fair Value, Inputs, Level 2 | Corporate Bonds
Securities available for sale:
Securities available-for-sale	1,500
Fair Value, Inputs, Level 2 | US Government Agencies
Securities available for sale:
Securities available-for-sale	24,080	20,072
Fair Value, Inputs, Level 2 | State and Municipal Obligations
Securities available for sale:
Securities available-for-sale	19,883	28,857
Fair Value, Inputs, Level 3
Securities available for sale:
Securities available-for-sale	5,503	3,945
Mortgage servicing rights	590	658
Fair Value, Inputs, Level 3 | Corporate Bonds
Securities available for sale:
Securities available-for-sale	$ 5,503	$ 3,945
[1]	Derived from Audited December 31, 2015 Financial Statements

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Items Using Level Three Inputs (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Mortgage Servicing Rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 658
Impairments	0
Fair value adjustments	(68)
Sales	0
Ending balance	590
Corporate Bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	3,945
Purchases	3,000
Impairments	0
Fair value adjustments	58
Sales	0
Ending balance	$ 7,003

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans, net	$ 2,375	$ 3,868
Other real estate owned, net	2,764	1,870
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans, net	2,375	3,868
Other real estate owned, net	$ 2,764	$ 1,870

Fair Value Measurements - Sum66

Fair Value Measurements - Summary of Quantitative Fair Value Measurements for Level 3 (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired Loans, net	$ 2,375	$ 3,868
Other real estate owned, net	$ 2,764	$ 1,870
Impaired Loans
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Unobservable Input, Lack of Marketability	50.00%
Minimum | Impaired Loans
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Unobservable Input, Selling Cost	10.00%	10.00%
Unobservable Input, Lack of Marketability		50.00%
Minimum | Other Real Estate Owned
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Unobservable Input, Selling Cost	3.00%	3.00%
Unobservable Input, Lack of Marketability	10.00%	10.00%
Maximum | Impaired Loans
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Unobservable Input, Selling Cost	20.00%	25.00%
Unobservable Input, Lack of Marketability		60.00%
Maximum | Other Real Estate Owned
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Unobservable Input, Selling Cost	13.00%	13.00%
Unobservable Input, Lack of Marketability	20.00%	20.00%
Weighted Average | Impaired Loans
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Unobservable Input, Selling Cost	14.00%	13.00%
Unobservable Input, Lack of Marketability	50.00%	51.00%
Weighted Average | Other Real Estate Owned
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Unobservable Input, Selling Cost	5.00%	4.00%
Unobservable Input, Lack of Marketability	11.00%	12.00%

Fair Value Measurements - Estim

Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financial Assets:
Cash and due from banks	$ 5,280	$ 4,969	[1]
Interest-bearing deposits	6,343	15,330	[1]
Certificates of deposit	4,464	5,735	[1]
Federal funds sold	460	271	[1]
Securities available-for-sale	52,563	54,090	[1]
Restricted securities	2,209	2,731	[1]
Loans, net	364,822	343,323	[1]
Loans held for sale	481	270	[1]
Accrued interest receivable	1,241	1,318	[1]
Mortgage servicing rights	590	658
Financial Liabilities:
Non-interest-bearing liabilities	74,615	65,842	[1]
Savings and other interest-bearing deposits	175,448	166,628	[1]
Time deposits	127,912	127,388	[1]
Securities sold under repurchase agreements	12,984	7,161	[1]
FHLB advances	25,000	40,000	[1]
Subordinated debt	6,856	6,844	[1]
Accrued interest payable	207	318
Financial Assets:
Cash and due from banks	5,280	4,969
Interest-bearing deposits	6,343	15,330
Certificates of deposit	4,464	5,735
Federal funds sold	460	271
Securities available-for-sale	52,563	54,090	[1]
Restricted securities	2,209	2,731
Loans, net	371,247	347,500
Loans held for sale	481	270
Accrued interest receivable	1,241	1,318
Mortgage servicing rights	590	658	[1]
Financial Liabilities:
Non-interest-bearing liabilities	74,615	65,842
Savings and other interest-bearing deposits	175,448	166,628
Time deposits	129,175	127,433
Securities sold under repurchase agreements	12,984	7,161
FHLB advances	25,755	40,855
Subordinated debt	7,000	7,000
Accrued interest payable	207	318
Fair Value, Inputs, Level 1
Financial Assets:
Securities available-for-sale	1,597	1,216
Financial Assets:
Cash and due from banks	5,280	4,969
Interest-bearing deposits	6,343	15,330
Federal funds sold	460	271
Securities available-for-sale	1,597	1,216
Financial Liabilities:
Non-interest-bearing liabilities	74,615	65,842
Fair Value, Inputs, Level 2
Financial Assets:
Securities available-for-sale	45,463	48,929
Financial Assets:
Certificates of deposit	4,464	5,487
Securities available-for-sale	45,463	48,929
Accrued interest receivable	1,241	1,318
Financial Liabilities:
Savings and other interest-bearing deposits	175,448	166,628
Securities sold under repurchase agreements	12,984	7,161
FHLB advances	25,755	40,855
Accrued interest payable	207	318
Fair Value, Inputs, Level 3
Financial Assets:
Securities available-for-sale	5,503	3,945
Financial Assets:
Certificates of deposit		248
Securities available-for-sale	5,503	3,945
Restricted securities	2,209	2,731
Loans, net	371,247	347,500
Loans held for sale	481	270
Mortgage servicing rights	590	658
Financial Liabilities:
Time deposits	129,175	127,433
Subordinated debt	$ 7,000	$ 7,000
[1]	Derived from Audited December 31, 2015 Financial Statements

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income - Balances in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016		Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (259)	$ (1,096)	$ (776)	[1]	$ (921)
Change in net unrealized holding gains (losses) on securities, before reclassification, net of tax expense		267	590		93
Reclassification for previously unrealized net gains recognized in income, net of tax expense (benefit)	(118)	(2)	(191)		(3)
Ending Balance	(377)	(831)	(377)		(831)
Net Unrealized Gains (Losses) on Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	624	(130)	107		45
Change in net unrealized holding gains (losses) on securities, before reclassification, net of tax expense		267	590		93
Reclassification for previously unrealized net gains recognized in income, net of tax expense (benefit)	(118)	(2)	(191)		(3)
Ending Balance	506	135	506		135
Pension and Post employment costs
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(883)	(966)	(883)		(966)
Ending Balance	$ (883)	$ (966)	$ (883)		$ (966)
[1]	Derived from Audited December 31, 2015 Financial Statements

Accumulated Other Comprehensi69

Accumulated Other Comprehensive Income - Balances in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized holding gains (losses) arising during the period, tax expense		$ 136	$ 305	$ 47
Reclassification for previously unrealized net gains recognized in income, tax expense (benefit)	$ 62	0	99	1
Net Unrealized Gains (Losses) on Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized holding gains (losses) arising during the period, tax expense		136	305	47
Reclassification for previously unrealized net gains recognized in income, tax expense (benefit)	$ 62	$ 0	$ 99	$ 1

Accumulated Other Comprehensi70

Accumulated Other Comprehensive Income - Reclassification of Unrealized (Losses) Gains and Impairments on Securities (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gains on sale of securities available-for-securities	$ 180	$ 2	$ 290	$ 4
Tax expense	(326)	(50)	(669)	(202)
Net Unrealized Gains (Losses) on Securities | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gains on sale of securities available-for-securities	180	2	290	4
Tax expense	(62)		(99)	(1)
Impact on net income	$ 118	$ 2	$ 191	$ 3

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - USD ($) $ in Thousands	Nov. 02, 2016	Sep. 30, 2016	Dec. 31, 2015	[1]
Subsequent Event [Line Items]
Total asset		$ 468,274	$ 456,296
Virginia BanCorp
Subsequent Event [Line Items]
Total asset		325,100
Total shareholders' equity		$ 35,700
Subsequent Event | Virginia BanCorp
Subsequent Event [Line Items]
Minority interest ownership percentage by parent	51.00%
Minority interest ownership percentage by non-controlling owners	49.00%
Common stock exchange ratio	1.178
[1]	Derived from Audited December 31, 2015 Financial Statements