Loans And Leases | 5. Loans and leases The classifications of loans and leases at September 30, 2016 and December 31, 201 5 are summarized as follows:     (dollars in thousands) September 30, 2016 December 31, 2015   Commercial and industrial $ 93,192 $ 102,653  Commercial real estate:  Non-owner occupied 95,540 95,745  Owner occupied 101,046 101,652  Construction 4,786 4,481  Consumer:  Home equity installment 28,816 30,935  Home equity line of credit 52,324 48,060  Auto loans and leases 46,310 29,758  Other 6,934 6,208  Residential:  Real estate 131,486 126,992  Construction 11,478 10,060  Total 571,912 556,544  Less:  Allowance for loan losses (9,196) (9,527)  Unearned lease revenue (494) (335)   Loans and leases, net $ 562,222 $ 546,682  Net deferred loan costs of $1.7 million and $1.5 million have been included in the carrying values of loans at September 30, 2016 and December 31, 2015, respectively. Unearned lease revenue represents the difference between the lessor’s investment in the property and the gross investment in the lease. Unearned revenue is accrued over the life of the lease using the effective interest method. The Company services real estate loans for investors in the secondary mortgage market which are not included in the accompanying consolidated balance sheets. The approximate unpaid principal balance of mortgages serviced amounted to $276.9 million as of September 30, 2016 and $269.5 million as of December 31, 201 5 . Mortgage servicing rights amounted to $1.2 million both as of September 30, 2016 and December 31, 2015 , respectively. Management is responsible for conducting the Company’s credit risk evaluation process, which includes credit risk grading of individual commercial and industrial and commercial real estate loans. Commercial and industrial and commercial real estate loans are assigned credit risk grades based on the Company’s assessment of conditions that affect the borrower’s ability to meet its contractual obligations under the loan agreement. That process includes reviewing borrowers’ current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower. Upon review, the commercial loan credit risk grade is revised or reaffirmed as the case may be. The credit risk grades may be changed at any time management feels an upgrade or downgrade may be warranted. The Company utilizes an external independent loan review firm that reviews and validates the credit risk program on at least an annual basis. Results of these reviews are presented to management and the board of directors. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures. Non-accrual loans The decision to place loans on non-accrual status is made on an individual basis after considering factors pertaining to each specific loan. Commercial and industrial (C&I) and commercial real estate (CRE) loans are placed on non-accrual status when management has determined that payment of all contractual principal and interest is in doubt or the loan is past due 90 days or more as to principal and interest, unless well-secured and in the process of collection. Consumer loans secured by real estate and residential mortgage loans are placed on non-accrual status at 120 days past due as to principal and interest and unsecured consumer loans are charged-off when the loan is 90 days or more past due as to principal and interest. The Company considers all non-accrual loans to be impaired loans. Non-accrual loans, segregated by class, at September 30, 2016 and December 31, 201 5 , were as follows:     (dollars in thousands) September 30, 2016 December 31, 2015   Commercial and industrial $ 25 $ 30  Commercial real estate:  Non-owner occupied 1,452 6,193  Owner occupied 3,146 988  Construction 202 226  Consumer:  Home equity installment 32 167  Home equity line of credit 107 512  Auto loans and leases 39 45  Other 6 6  Residential:  Real estate 852 836  Total $ 5,861 $ 9,003  Troubled Debt Restructuring A modification of a loan constitutes a troubled debt restructuring (TDR) when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company considers all TDRs to be impaired loans. The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. C&I loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. CRE loans modified in a TDR can involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. Commercial real estate construction loans modified in a TDR may also involve extending the interest-only payment period. Residential mortgage loans modified in a TDR are primarily comprised of loans where monthly payments are lowered to accommodate the borrowers’ financial needs for an extended period of time. After the lowered monthly payment period ends, the borrower would revert back to paying principal and interest pursuant to the original terms with the maturity date adjusted accordingly. Consumer loan modifications are typically not granted and therefore standard modification terms do not exist for loans of this type. Loans modified in a TDR may or may not be placed on non-accrual status. As of September 30, 2016, total TDRs amounted to $2.5 million, consisting of 9 loans ( 7 CRE loans, 1 C&I loan and 1 HELOC to 6 unrelated borrowers ), of which 1 of the CRE loans, totaling $20 thousand, was on non-accrual status. The September 30, 2016 balance represented a $0.1 million increase over the December 31, 2015 balance, which amounted to $2.4 million (consisting of 7 CRE loans and 2 C&I loans to 5 unrelated borrowers), with none of these loans on non-accrual status. This increase in TDRs was attributed to the addition of one HELOC totaling $0.6 million partially offset by the payoff of one C&I loan in the amount of $0.5 million. Of the TDRs outstanding as of September 30, 2016 and December 31, 2015, when modified, the concessions granted consisted of temporary interest-only payments, extensions of maturity date, or a reduction in the rate of interest to a below-market rate for a contractual period of time. Other than the TDR that was placed on non-accrual status, the TDRs were performing in accordance with their modified terms. There were no loans modified as a TDR during the three months ended September 30, 2016 and 2015. The following presents by class, information related to loans modified in a TDR:     Loans modified as TDRs for the nine months ended:  (dollars in thousands) September 30, 2016 September 30, 2015   Recorded Increase in Recorded Increase in  Number investment allowance Number investment allowance  of (as of (as of of (as of (as of  contracts period end) period end) contracts period end) period end)  Commercial and industrial - $ - $ - 1 $ 500 $ 331  Commercial real estate - owner occupied - - - 4 1,182 270  Consumer home equity line of credit 1 650 105 - - -  Total 1 $ 650 $ 105 5 $ 1,682 $ 601  In the above table , the period end balances are inclusive of all partial pay downs and charge-offs since the modification date. The following presents by class, loans modified as a TDR that subsequently defaulted (i.e. 90 days or more past due following a modification) during the periods indicated:    Loans modified as a TDR within the previous twelve months that subsequently defaulted during the:  (dollars in thousands) Three months ended September 30, 2016 Nine months ended September 30, 2016   Number of Recorded Number of Recorded  contracts investment contracts investment  Commercial real estate - owner occupied - $ - 1 $ 20  In the above table, the period end balances are inclusive of all partial pay downs and charge-offs since the modification date. Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. One CRE loan that w as classified as a TDR in fourth quarter of 2015 subsequently defaulted during the first nine months of 2016. The loan defaulted due to inability to meet contractual payments and the Company continued workout efforts to collect from the owners. There were no loans modified as a TDR within the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 2015. The allowance for loan losses (allowance) may be increased, adjustments may be made in the allocation of the allowance or partial charge-offs may be taken to further write-down the carrying value of the loan. An allowance for impaired loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the loan’s observable market price. If the loan is collateral dependent, the estimated fair value of the collateral is used to establish the allowance. As of September 30, 2016 and 20 15, the allowance for impaired loans that have been modified in a TDR was $0.4 million and $0.6 million, respe ctively. Past due loans Loans are considered past due when the contractual principal and/or interest is not received by the due date. An aging analysis of past due loans, segregated by class of loans, as of the period indicated is as follows (dollars in thousands):     Recorded  Past due investment past  30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days  September 30, 2016 past due past due or more (1) past due Current loans (3) and accruing   Commercial and industrial $ 267 $ 99 $ 58 $ 424 $ 92,768 $ 93,192 $ 33  Commercial real estate:  Non-owner occupied 163 414 1,485 2,062 93,478 95,540 33  Owner occupied 323 438 3,146 3,907 97,139 101,046 -  Construction - - 202 202 4,584 4,786 -  Consumer:  Home equity installment 233 97 32 362 28,454 28,816 -  Home equity line of credit 37 26 107 170 52,154 52,324 -  Auto loans and leases 218 35 39 292 45,524 45,816 (2) -  Other 34 49 6 89 6,845 6,934 -  Residential:  Real estate - 1,641 852 2,493 128,993 131,486 -  Construction - - - - 11,478 11,478 -  Total $ 1,275 $ 2,799 $ 5,927 $ 10,001 $ 561,417 $ 571,418 $ 66 (1) Includes $ 5.9 million of non-accrual loans. (2) Net of unearned lease revenue of $0. 5 million. (3) Includes net deferred loan costs of $1.7 million.     Recorded  Past due investment past  30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days  December 31, 2015 past due past due or more (1) past due Current loans (3) and accruing   Commercial and industrial $ 38 $ 32 $ 42 $ 112 $ 102,541 $ 102,653 $ 12  Commercial real estate:  Non-owner occupied 549 1,282 6,476 8,307 87,438 95,745 283  Owner occupied - 85 988 1,073 100,579 101,652 -  Construction - - 226 226 4,255 4,481 -  Consumer:  Home equity installment 189 92 167 448 30,487 30,935 -  Home equity line of credit 109 650 512 1,271 46,789 48,060 -  Auto loans and leases 394 44 76 514 28,909 29,423 (2) 31  Other 66 - 36 102 6,106 6,208 30  Residential:  Real estate 46 131 836 1,013 125,979 126,992 -  Construction - - - - 10,060 10,060 -  Total $ 1,391 $ 2,316 $ 9,359 $ 13,066 $ 543,143 $ 556,209 $ 356 (1) Includes $ 9.0 million of non-accrual loans. (2) Net of unearned lease revenue of $0. 3 million. (3) Includes net deferred loan costs of $1.5 million. 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 in accordance with the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due. The significance of payment delays and/or shortfalls is determined on a case-by-case basis. All circumstances surrounding the loan are taken into account. Such factors include the length of the delinquency, the underlying reasons and the borrower’s prior payment record. Impairment is measured on these loans on a loan-by-loan basis. Impaired loans include non-accrual loans, TDRs and other loans deemed to be impaired based on the aforementioned factors. At September 30, 2016, impaired loans consisted of accruing TDRs of $2.5 million, $5.9 million in non-accrual loans and $2.2 million in accruing loans. At December 31, 2015, impaired loans consisted of accruing TDRs totaling $2.4 million, $9.0 million of non-accrual loans and a $1.2 million accruing loan. As of December 31 , 2015, the non-accrual loans did not include any TDRs compared with one TDR with a $20 thousand balance as of September 30, 2016. Impaired loans, segregated by class, as of the perio d indicated are detailed below:    Recorded Recorded  Unpaid investment investment Total  principal with with no recorded Related  (dollars in thousands) balance allowance allowance investment allowance  September 30, 2016  Commercial and industrial $ 253 $ 209 $ 44 $ 253 $ 196  Commercial real estate:  Non-owner occupied 3,203 2,677 395 3,072 1,082  Owner occupied 5,530 4,111 1,190 5,301 1,196  Construction 411 - 202 202 -  Consumer:  Home equity installment 65 - 32 32 -  Home equity line of credit 870 662 95 757 116  Auto loans and leases 38 38 1 39 5  Other 6 6 - 6 1  Residential:  Real estate 919 321 531 852 40  Construction - - - - -  Total $ 11,295 $ 8,024 $ 2,490 $ 10,514 $ 2,636      Recorded Recorded  Unpaid investment investment Total  principal with with no recorded Related  (dollars in thousands) balance allowance allowance investment allowance  December 31, 2015  Commercial and industrial $ 555 $ 500 $ 55 $ 555 $ 331  Commercial real estate:  Non-owner occupied 7,960 7,209 630 7,839 1,237  Owner occupied 2,588 922 1,505 2,427 337  Construction 422 - 226 226 -  Consumer:  Home equity installment 230 - 167 167 -  Home equity line of credit 607 28 484 512 1  Auto 47 43 2 45 7  Other 6 6 - 6 1  Residential:  Real estate 891 433 403 836 95  Construction - - - - -  Total $ 13,306 $ 9,141 $ 3,472 $ 12,613 $ 2,009  The following table presents the average recorded investments in impaired loans and related amount of interest income recognized during the periods indicated below. The average balances are calculated based on the quarter-end balances of impaired loans. Payments received from non-accruing impaired loans are first applied against the outstanding principal balance, then to the recovery of any charged-off amounts. Any excess is treated as a recovery of interest income. Payments received from accruing impaired loans are applied to principal and interest, as contractually agreed upon.     September 30, 2016 September 30, 2015  Cash basis Cash basis  Average Interest interest Average Interest interest  recorded income income recorded income income  (dollars in thousands) investment recognized recognized investment recognized recognized  Commercial and industrial $ 502 $ 12 $ - $ 410 $ 15 $ 1  Commercial real estate:  Non-owner occupied 4,510 93 - 1,674 62 -  Owner occupied 3,593 107 - 2,648 51 -  Construction 217 - - 249 - -  Consumer:  Home equity installment 119 3 - 285 2 -  Home equity line of credit 772 25 - 486 1 -  Auto 40 - - 16 - -  Other 6 - - 15 2 -  Residential:  Real estate 750 4 - 570 6 -  Construction - - - - - -  Total $ 10,509 $ 244 $ - $ 6,353 $ 139 $ 1   Credit Quality Indicators Commercial and industrial and commercial real estate The Company utilizes a loan grading system and assigns a credit risk grade to its loans in the C&I and CRE portfolios. The grading system provides a means to measure portfolio quality and aids in the monitoring of the credit quality of the overall loan portfolio. The credit risk grades are arrived at using a risk rating matrix to assign a grade to each of the loans in the C&I and CRE portfolios. The following is a description of each risk rating category the Company uses to classify each of its C&I and CRE loans: Pass Loans in this category have an acceptable level of risk and are graded in a range of one to five. Secured loans generally have good collateral coverage. Current financial statements reflect acceptable balance sheet ratios, sales and earnings trends. Management is considered to be competent, and a reasonable succession plan is evident. Payment experience on the loans has been good with minor or no delinquency experience. Loans with a grade of one are of the highest quality in the range. Those graded five are of marginally acceptable quality. Special Mention Loans in this category are graded a six and may be protected but are potentially weak. They constitute a credit risk to the Company, but have not yet reached the point of adverse classification. Some of the following conditions may exist: little or no collateral coverage; lack of current financial information; delinquency problems; highly leveraged; available financial information reflects poor balance sheet ratios and profit and loss statements reflect uncertain trends; and document exceptions. Cash flow may not be sufficient to support total debt service requirements. Substandard Loans in this category are graded a seven and have a well-defined weakness which may jeopardize the ultimate collectability of the debt. The collateral pledged may be lacking in quality or quantity. Financial statements may indicate insufficient cash flow to service the debt; and/or do not reflect a sound net worth. The payment history indicates chronic delinquency problems. Management is considered to be weak. There is a distinct possibility that the Company may sustain a loss. All loans on non-accrual are rated substandard. Other loans that are included in the substandard category can be accruing, as well as loans that are current or past due. Loans 90 days or more past due, unless otherwise fully supported, are classified substandard. Also, borrowers that are bankrupt or have loans categorized as TDRs can be graded substandard. Doubtful Loans in this category are graded an eight and have a better than 50% possibility of the Company sustaining a loss, but the loss cannot be determined because of specific reasonable factors which may strengthen credit in the near-term. Many of the weaknesses present in a substandard loan exist. Liquidation of collateral, if any, is likely. Any loan graded lower than an eight is considered to be uncollectible and charged-off. Consumer and residential The consumer and residential loan segments are regarded as homogeneous loan pools and as such are not risk rated. For these portfolios, the Company utilizes payment activity, history and recency of payment in assessing performance. Non-performing loans are considered to be loans past due 90 days or more and accruing and non-accrual loans. All loans not classified as non-performing are considered performing. The following table presents loans including $1.7 million of deferred costs, segregated by class, categorized into the appropriate credit quality indicator category as of September 30, 2016 and December 31, 2015 , respectively: Commercial credit exposure Credit risk profile by creditworthiness category     Commercial real estate - Commercial real estate - Commercial real estate -  Commercial and industrial non-owner occupied owner occupied construction  (dollars in thousands) 9/30/2016 12/31/2015 9/30/2016 12/31/2015 9/30/2016 12/31/2015 9/30/2016 12/31/2015   Pass $ 89,328 $ 101,342 $ 86,531 $ 82,152 $ 94,219 $ 96,401 $ 4,584 $ 4,255  Special mention 3,355 189 1,534 1,480 1,049 657 - -  Substandard 509 1,122 7,475 12,113 5,778 4,594 202 226  Doubtful - - - - - - - -  Total $ 93,192 $ 102,653 $ 95,540 $ 95,745 $ 101,046 $ 101,652 $ 4,786 $ 4,481  Consumer credit exposure Credit risk profile based on payment activity     Home equity installment Home equity line of credit Auto loans and leases Other  (dollars in thousands) 9/30/2016 12/31/2015 9/30/2016 12/31/2015 9/30/2016 12/31/2015 9/30/2016 12/31/2015   Performing $ 28,784 $ 30,768 $ 52,217 $ 47,548 $ 45,777 $ 29,347 $ 6,928 $ 6,172  Non-performing 32 167 107 512 39 76 6 36  Total $ 28,816 $ 30,935 $ 52,324 $ 48,060 $ 45,816 (1) $ 29,423 (2) $ 6,934 $ 6,208 (1) Net of unearned lease revenue of $0. 5 million. (2) Net of unearned lease revenue of $0.3 million.  Mortgage lending credit exposure Credit risk profile based on payment activity     Residential real estate Residential construction  (dollars in thousands) 9/30/2016 12/31/2015 9/30/2016 12/31/2015   Performing $ 130,634 $ 126,156 $ 11,478 $ 10,060  Non-performing 852 836 - -  Total $ 131,486 $ 126,992 $ 11,478 $ 10,060  Allowance for loan losses Management continually evaluates the credit quality of the Company’s loan portfolio and performs a formal review of the adequacy of the allowance on a quarterly basis. The allowance reflects management’s best estimate of the amount of credit losses in the loan portfolio. Management’s judgment is based on the evaluation of individual loans, past experience, the assessment of current economic conditions and other relevant factors including the amounts and timing of cash flows expected to be received on impaired loans. Those estimates may be susceptible to significant change. Loan losses are charged directly against the allowance when loans are deemed to be uncollectible. Recoveries from previously charged-off loans are added to the allowance when received. Management applies two primary components during the loan review process to determine proper allowance levels. The two components are a specific loan loss allocation for loans that are deemed impaired and a general loan loss allocation for those loans not specifically allocated. The methodology to analyze the adequacy of the allowance for loan losses is as follows: § identification of specific impaired loans by loan category; § identification of specific loans that are not impaired, but have an identified potential for loss; § calculation of specific allowances where required for the impaired loans based on collateral and other objective and quantifiable evidence; § determination of loans with similar credit characteristics within each class of the loan portfolio segment and eliminating the impaired loans; § application of historical loss percentages (t railing twelve-quarter average) to pools to determine the allowance allocation; § application of qualitative factor adjustment percentages to historical losses for trends or changes in the loan portfolio. § Qualitative factor adjustments include: o levels of and trends in delinquencies and non-accrual loans; o levels of and trends in charge-offs and recoveries; o trends in volume and terms of loans; o changes in risk selection and underwriting standards; o changes in lending policies, procedures and practices; o experience, ability and depth of lending management; o national and local economic trends and conditions; and o changes in credit concentrations. Allocation of the allowance for different categories of loans is based on the methodology as explained above. A key element of the methodology to determine the allowance is the Company’s credit risk evaluation process, which includes credit risk grading of individual C&I and CRE loans. C&I and CRE loans are assigned credit risk grades based on the Company’s assessment of conditions that affect the borrower’s ability to meet its contractual obligations under the loan agreement. That process includes reviewing borrowers’ current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower. Upon review, the commercial loan credit risk grade is revised or reaffirmed as the case may be. The credit risk grades may be changed at any time management feels an upgrade or downgrade may be warranted. The credit risk grades for the C&I and CRE loan portfolios are taken into account in the reserve methodology and loss factors are applied based upon the credit risk grades. The loss factors applied are based upon the Company’s historical experience as well as what we believe to be best practices and common industry standards. Historical experience reveals there is a direct correlation between the credit risk grades and loan charge-offs. The changes in allocations in the C&I and CRE loan portfolio from period to period are based upon the credit risk grading system and from periodic reviews of the loan portfolio. An unallocated component is maintained 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. Each quarter, management performs an assessment of the allowance. The Company’s Special Assets Committee meets monthly and the applicable lenders discuss each relationship under review and reach a consensus on the appropriate estimated loss amount, if applicable, based on current accounting guidance. The Special Assets Committee’s focus is on ensuring the pertinent facts are considered regarding not only loans considered for specific reserves, but also the collectability of loans that may be past due in payment. The assessment process also includes the review of all loans on a non-accruing basis as well as a review of certain loans to which the lenders or the Company’s Credit Administration function have assigned a criticized or classified risk rating. The Company’s policy is to charge-off unsecured consumer loans when they become 90 days or more past due as to principal and interest. In the other portfolio segments, amounts are charged-off at the point in time when the Company deems the balance, or a portion thereof, to be uncollectible. Information related to the change in the allowance and the Company’s recorded investment in loans by portfolio segment as of the period indicated is as follows:    As of and for the nine months ended September 30, 2016  Commercial & Commercial Residential  (dollars in thousands) industrial real estate Consumer real estate Unallocated Total  Allowance for Loan Losses:  Beginning balance $ 1,336 $ 5,014 $ 1,533 $ 1,407 $ 237 $ 9,527  Charge-offs (199) (526) (356) (60) - (1,141)  Recoveries 39 36 85 - - 160  Provision (45) 284 526 10 (125) 650  Ending balance $ 1,131 $ 4,808 $ 1,788 $ 1,357 $ 112 $ 9,196  Ending balance: individually evaluated for impairment $ 196 $ 2,278 $ 122 $ 40 $ - $ 2,636  Ending balance: collectively evaluated for impairment $ 935 $ 2,530 $ 1,666 $ 1,317 $ 112 $ 6,560  Loans Receivables:  Ending balance (2) $ 93,192 $ 201,372 $ 133,890 (1) $ 142,964 $ - $ 571,418  Ending balance: individually evaluated for impairment $ 253 $ 8,575 $ 834 $ 852 $ - $ 10,514  Ending balance: collectively evaluated for impairment $ 92,939 $ 192,797 $ 133,056 $ 142,112 $ - $ 560,904 ( 1) Net of unearned lease revenue of $0. 5 million. (2) Includes $1.7 million of net deferred loan costs.     As of and for the three months ended September 30, 2016  Commercial & Commercial Residential  (dollars in thousands) industrial real estate Consumer real estate Unallocated Total  Allowance for Loan Losses:  Beginning balance $ 1,231 $ 4,880 $ 1,692 $ 1,365 $ 39 $ 9,207  Charge-offs (30) (183) (91) - - (304)  Recoveries 18 3 47 - - 68  Provision (88) 108 140 (8) 73 225  Ending balance $ 1,131 $ 4,808 $ 1,788 $ 1,357 $ 112 $ 9,196     As of and for the year ended December 31, 2015  Commercial & Commercial Residential  (dollars in thousands) industrial real estate Consumer real estate Unallocated Total  Allowance for Loan Losses:  Beginning balance $ 1,052 $ 4,672 $ 1,519 $ 1,316 $ 614 $ 9,173  Charge-offs (25) (432) (437) (15) - (909)  Recoveries 47 18 95 28 - 188  Provision 262 756 356 78 (377) 1,075  Ending balance $ 1,336 $ 5,014 $ 1,533 $ 1,407 $ 237 $ 9,527  Ending balance: individually evaluated for impairment $ 331 $ 1,574 $ 9 $ 95 $ - $ 2,009  Ending balance: collectively evaluated for impairment $ 1,005 $ 3,440 $ 1,524 $ 1,312 $ 237 $ 7,518  Loans Receivables:  Ending balance (2) $ 102,653 $ 201,878 $ 114,626 (1) $ 137,052 $ - $ 556,209  Ending balance: individually evaluated for impairment $ 555 $ 10,492 $ 730 $ 836 $ - $ 12,613  Ending balance: collectively evaluated for impairment $ 102,098 $ 191,386 $ 113,896 $ 136,216 $ - $ 543,596 (1) Net of unearned lease revenue of $0.3 million. (2) Includes $1.5 million of net deferred loan costs.     As of and for the nine months ended September 30, 2015  Commercial & Commercial Residential  (dollars in thousands) industrial real estate Consumer real estate Unallocated Total  Allowance for Loan Losses:  Beginning balance $ 1,052 $ 4,672 $ 1,519 $ 1,316 $ 614 $ 9,173  Charge-offs (26) (357) (270) (9) - (662)  Recoveries 37 17 56 28 - 138  Provision 392 410 262 49 (613) 500  Ending balance $ 1,455 $ 4,742 $ 1,567 $ 1,384 $ 1 $ 9,149      As of and for the three months ended September 30, 2015  Commercial & Commercial Residential  (dollars in thousands) industrial real estate Consumer real estate Unallocated Total  Allowance for Loan Losses:  Beginning balance $ 1,370 $ 4,610 $ 1,500 $ 1,369 $ 410 $ 9,259  Charge-offs - (219) (119) (9) - (347)  Recoveries 11 - 26 - - 37  Provision 74 351 160 24 (409) 200  Ending balance $ 1,455 $ 4,742 $ 1,567 $ 1,384 $ 1 $ 9,149   |