| LOANS | Note
5LOANS Originated
loans are reported at their principal amount outstanding adjusted for partial charge-offs, the allowance, and net deferred loan
fees and costs. Interest income on loans is accrued over the term of the loans primarily using the simple interest method based
on the principal balance outstanding. Interest is not accrued on loans where collectability is uncertain. Accrued interest is
presented separately in the consolidated balance sheet. Loan origination fees and certain direct costs incurred to extend credit
are deferred and amortized over the term of the loan or loan commitment period as an adjustment to the related loan yield. Acquired
loans are those obtained in the Merger (See Note 3 Business Combination for further information). These loans were recorded
at estimated fair value at the Acquisition Date with no carryover of the related allowance. The acquired loans were segregated
between those considered to be performing (acquired non-impaired loans) and those with evidence of credit deterioration
(acquired impaired loans). Acquired loans are considered impaired if there is evidence of credit deterioration and
if it is probable, at acquisition, that all contractually required payments will not be collected. Acquired loans restructured
after acquisition are not considered or reported as troubled debt restructurings if the loans evidenced credit deterioration as
of the Acquisition Date and are accounted for in pools. As of September 30, 2015, no acquired loans were modified as troubled
debt restructurings after the Acquisition Date. The
fair value estimates for acquired loans are based on expected prepayments and the amount and timing of discounted expected principal,
interest and other cash flows. Credit discounts representing the principal losses expected over the life of the loan are also
a component of the initial fair value. In determining the Acquisition Date fair value of acquired impaired loans, and in subsequent
accounting, we have generally aggregated acquired mortgage, commercial and consumer loans into pools of loans with common risk
characteristics. The
difference between the fair value of an acquired non-impaired loan and contractual amounts due at the Acquisition Date is accreted
into income over the estimated life of the loan. Contractually required payments represent the total undiscounted amount of all
uncollected principal and interest payments. Acquired non-impaired loans are placed on nonaccrual status and reported as nonperforming
or past due using the same criteria applied to the originated loan portfolio. The
excess of an acquired impaired loans contractually required payments over the amount of its undiscounted cash flows expected
to be collected is referred to as the non-accretable difference. The non-accretable difference, which is neither accreted into
income nor recorded on the consolidated balance sheet, reflects estimated future credit losses and uncollectible contractual interest
expected to be incurred over the life of the acquired impaired loan. The excess cash flows expected to be collected over the carrying
amount of the acquired loan is referred to as the accretable yield. This amount is accreted into interest income over the remaining
life of the acquired loans or pools using the level yield method. The accretable yield is affected by changes in interest rate
indices for variable rate loans, changes in prepayment speed assumptions and changes in expected principal and interest payments
over the estimated lives of the acquired impaired loans. We
evaluate quarterly the remaining contractual required payments receivable and estimate cash flows expected to be collected over
the life of the impaired loans. Contractually required payments receivable may increase or decrease for a variety of reasons,
for example, when the contractual terms of the loan agreement are modified, when interest rates on variable rate loans change,
or when principal and/or interest payments are received. Cash flows expected to be collected on acquired impaired loans are estimated
by incorporating several key assumptions similar to the initial estimate of fair value. These key assumptions include probability
of default, loss given default, and the amount of actual prepayments after the Acquisition Date. Prepayments affect the estimated
lives of loans and could change the amount of interest income, and possibly principal, expected to be collected. In re-forecasting
future estimated cash flows, credit loss expectations are adjusted as necessary. The adjustments are based, in part, on actual
loss severities recognized for each loan type, as well as changes in the probability of default. For periods in which estimated
cash flows are not re-forecasted, the prior reporting periods estimated cash flows are adjusted to reflect the actual cash
received and credit events that transpired during the current reporting period. Increases
in expected cash flows of acquired impaired loans subsequent to the Acquisition Date are recognized prospectively through adjustments
of the yield on the loans or pools over their remaining lives, while decreases in expected cash flows are recognized as impairment
through a provision for loan losses and an increase in the allowance. The
following table sets forth the composition of our loan portfolio by loan type at the dates indicated.
At
September 30, At
December 31,
(in thousands)
Real
estate loans:
Residential
mortgage $ 76,458 $ 71,828
Commercial
loans:
Construction
- real estate 257 1,443
Secured
by real estate 59,096 62,163
Other 23,387 19,000
Total
commercial loans 82,740 82,606
Consumer
loans:
Secured
by real estate 9,063 9,502
Other 1,557 1,403
Total
consumer loans 10,620 10,905
Total
gross loans $ 169,818 $ 165,339
Less:
Net
deferred loan fees (241 ) (263 )
Allowance
for loan losses (1,514 ) (1,429 )
Total
loans, net $ 168,063 $ 163,647 Total
outstanding balance and carrying value of acquired impaired loans was $4.2 million and $3.1 million, respectively, as of September
30, 2015. Changes in the accretable yield for acquired impaired loans for the nine months ended September 30, 2015 were as follows:
Acquired
Acquired
December
31, 2014 balance $ (1,232 ) $ (208 ) $ (1,440 )
Net
discount associated with acquired loans
Accretion
of discount for credit spread 57 57
Transfer
from non-accreatable to accreatable 25 (25 )
Loans
paid off through September 30, 2015 6 6
Loans
charged off through September 30, 2015 113 113
Total $ (1,088 ) $ (176 ) $ (1,264 ) The
following table illustrates the contractual aging of the recorded investment in past due loans by class of loans as of September
30, 2015 and December 31, 2014:
As
of September 30, 2015
30 - 59 Days
60 - 89 Days Past Due
Greater than Recorded
(dollars in thousands)
Originated
Loans:
Commercial
Real Estate:
Commercial
Real Estate - construction $ $ $ $ $ 257 $ 257 $
Commercial
Real Estate - other 640 640 44,577 45,217
Commercial
- non real estate 29 11 40 20,887 20,927
Consumer:
Consumer
- Real Estate 137 137 7,353 7,490
Consumer
- Other 4 4 1,433 1,437
Residential:
Residential 1,273 481 231 1,985 68,906 70,891 125
Total $ 2,079 $ 492 $ 235 $ 2,806 $ 143,413 $ 146,219 $ 125
As
of September 30, 2015
60 - 89 Days Greater
than Recorded
(dollars in thousands)
Acquired
Loans:
Commercial
Real Estate:
Commercial
Real Estate - construction $ $ $ $ $ $ $
Commercial
Real Estate - other 222 176 259 657 13,222 13,879 97
Commercial
- non real estate 17 359 451 827 1,633 2,460 300
Consumer:
Consumer
- Real Estate 4 4 1,569 1,573
Consumer
- Other 120 120
Residential:
Residential 306 265 571 4,996 5,567
Total $ 545 $ 535 $ 979 $ 2,059 $ 21,540 $ 23,599 $ 397
As
of December 31, 2014
Originated
Loans:
30 - 59 Days
60 - 89 Days
Greater than
Recorded
(dollars in thousands)
Commercial
Real Estate:
Commercial
Real Estate - construction $ $ $ $ $ 1,443 $ 1,443 $
Commercial
Real Estate - other 10 195 205 46,103 46,308
Commercial
- non real estate 14,544 14,544
Consumer:
Consumer
- Real Estate 107 4 7 118 7,684 7,802
Consumer
- Other 3 3 6 1,152 1,158 3
Residential:
Residential 1,484 746 386 2,616 62,326 64,942 87
Total $ 1,604 $ 945 $ 396 $ 2,945 $ 133,252 $ 136,197 $ 90
As
of December 31, 2014
Acquired
Loans:
Greater than
Total Recorded
(dollars in thousands)
Commercial
Real Estate - construction $ $ $ $ $ $ $
Commercial
Real Estate - other 125 128 93 346 15,604 15,950
Commercial
- non real estate 40 104 144 4,217 4,361
Consumer:
Consumer
- Real Estate 123 123 1,609 1,732
Consumer
- Other 213 213
Residential:
Residential 147 56 461 664 6,222 6,886 225
Total $ 395 $ 224 $ 658 $ 1,277 $ 27,865 $ 29,142 $ 225 The
Bank uses an eight tier risk rating system to grade its commercial loans. The grade of a loan may change during the life of the
loan. The risk ratings are described as follows:
Risk Grade 1
○ Demonstrates exceptional credit fundamentals,
including stable and predictable profit margins and cash flows, strong liquidity, and a conservative balance sheet.
○ Significant cash flow coverage of existing
and pro forma debt service.
○ Industry leader with a diversified
product mix and broad geographical market distribution.
○ Obligations secured by cash (on
us deposits) and U.S. Government securities within policy advance rates.
Risk Grade 2
○ The difference between this rating
and Class 1 is generally in degree and size. Credit quality is slightly less dominant, with less predictability in earnings
and cash flow.
○ Customer may be one of the stronger
and larger privately held companies. Balance sheet is conservative with excellent liquidity.
○ Obligations secured by liquid financial
instruments within policy advance rates.
Risk Grade 3
○ Obligor may also be a privately held,
middle market company with a strong balance sheet, consistent earnings, and worthy of unsecured credit.
○ Leverage, liquidity and coverage average
to slightly better than average within industry. Balance sheet may contain some intangibles.
○ History of profitable operations, but
conditions exist that would suggest obligors earnings could temporarily decline due to market or economic conditions.
○ Cash flow is adequate and profit margins
are slightly above average within the industry.
○ Obligors product mix may lack
diversity or geographic distribution, but is usually not confined to a single product or service.
○ Bank borrowings will tend not to be
constant; obligors debt instruments would be attractive to other lenders. Most likely would have access to alternative
sources of funding (public or private).
Risk Grade 4
○ Subject to normal degree of risk.
○ Cash flow is adequate to service debt,
but is susceptible to some deterioration due to cyclical, seasonal or economic fluctuations.
○ Balance sheet contains some leverage;
liquidity could be temporarily tight. There could be some asset concentration.
○ Access to financial markets could be
limited or expensive.
○ Management is experienced but may be
concentrated in a few key people.
○ Some unfavorable characteristics may
exist:
- Reliance on single product or major
customer concentration
- Volatility of earnings or earnings
weakness due to competition
- Leverage is increasing, but is still
within normal industry parameters
- Management is capable but would be
tested in an adverse business environment
- High leverage offset by stable or
predictable cash flow
○ Borrowings would usually be on a secured
basis, with some inventory reliance and fairly steady outstandings. Borrowing base may be fully utilized from time to time.
● 4.5 - Acceptable Risk Monitored:
This rating category is a subset of
a Risk Grade 4-Acceptable and serves primarily as an early warning indicator to management to avoid surprises to Special Mention
or worse credits. The loans in this category may have several characteristics of a Risk Grade 4 loan, but have negative results
and trending that warrant monitoring.
○ More unpredictability in earnings and
cash flow. Obligor may have experienced modest and presumably temporary losses; resulting in a temporary negative cash flow.
○ Current financial statements have not
been provided by the borrower.
○ Leverage ratios and liquidity are below
normal industry standards, but may be deliberate financial restructuring, testing the limits of acceptable capitalization.
○ Secondary source of repayment may be
limited.
Grade 4.5 risk rated credits are acceptable,
but if the weakness is not checked or corrected the asset may further weaken or inadequately protect the Banks credit
exposure at some future date.
Risk Grade 5
A Special Mention asset is not considered criticized for regulatory
purposes. A Special Mention obligor may exhibit a potential weakness that may result in the deterioration of the repayment
prospects for the credit or in the Banks credit position in the future; however, there must also be a well-defined plan
of corrective action that is believed to be credible.
○ The obligor will generally have exhibited
a sudden but modest and temporary deterioration, often related to a specific event.
○ Protracted gradual deterioration that
appears to represent a trend or sudden deterioration of a more significant magnitude would warrant a more severe risk rating.
○ The action plan may include certain
kinds of bridging events (for example, a capital injection) that could resolve the issue.
○ Special Mention asset may also have
a single event of uncertainty associated with it, which should generally be resolved within 120 days (for example, management
succession, litigation or turnaround acquisition).
Risk Grade 6
A Substandard asset has well defined weakness(es) where a payment
default is possible and a loss is possible, but not yet probable. Assets so classified are inadequately protected by current
net worth and repayment capacity or there is a likelihood that collateral will have to be liquidated to repay the debt.
○ Cash flow from operations may be insufficient
to meet principal reductions as expected, with the prospect that this condition may not be temporary.
○ Restructure not in the ordinary course
of business has occurred or is anticipated.
○ A payment default is possible (at least
20% probability but less than 50%) and there is a dependence upon favorable business, financial, and economic conditions to
meet timely payment of interest and repayment of principal.
○ If deficiencies are not corrected,
there is a possibility of loss (less than 25% probability) and a question regarding the companys ability to operate
as a going concern.
○ Generally, the asset/loan is considered
collectible as to both principal and interest, primarily because of collateral coverage or enterprise value. Loss of principal
is not at question, unless current trends were to continue.
Risk Grade 7
A Doubtful asset/loan has characteristics of Substandard, but available
information suggests it is unlikely that the asset/loan will be repaid in its entirety. A loan/asset with a grade 7 is reported
in the Banks financial records on a non-accrual basis. The entire asset/loan should be rated Doubtful when any portion
is considered Doubtful.
Risk Grade 8
Assets/loans or portions of assets/loans classified as Loss
are determined to be uncollectible and are of such little value that their continuing classification as bankable is unwarranted.
Accordingly, that portion of an asset/loan with a 75% or greater probability of being uncollectible should be classified Loss
and promptly charged off. The remaining portion of the asset/loan may be classified Doubtful, depending on the circumstances.
This does not suggest, however, that there is no possibility of a recovery of a portion or all of the charged-off asset/loan
at some future time. The
following table presents the risk category of loans by class of loans based on the most recent analysis performed as of September
30, 2015 and December 31, 2014:
As
of September 30, 2015
Originated Loans:
Loan
Grade Commercial
Real Estate Construction Commercial
Real Estate Other Commercial
1-2
$ $ 658 $ 342
3 12,364 10,852
4 237 21,701 7,336
4.5 20 3,268 357
5 2,595 224
6 4,631 1,816
7
8
Total $ 257 $ 45,217 $ 20,927
Acquired
Loans:
Loan
Grade Commercial
Real Estate Construction Commercial
Real Estate Other Commercial
1-2 $ $ 236 $ 690
3 2,128 392
4 9,598 545
4.5 461 7
5 694 375
6 761 451
7 0 0
8 0 0
Total $ $ 13,878 $ 2,460
As
of December 31, 2014
Originated Loans:
Loan
Grade Commercial
Real Estate Construction Commercial
Real Estate Other Commercial
1-2
$ $ $ 31
3 13,565 6,088
4 1,443 21,757 7,538
4.5 3,553 252
5 6,040 635
6 1,393
7
8
Total $ 1,443 $ 46,308 $ 14,544
Acquired
Loans:
Loan
Grade Commercial
Real Estate Construction Commercial
Real Estate Other Commercial
1-2 $ $ 280 $ 1,188
3 2,696 876
4 10,905 970
4.5 337 21
5 1,176 1,150
6 547 156
7 9 0
8 0
Total $ $ 15,950 $ 4,361 For
residential real estate and other consumer credit the Company also evaluates credit quality based on the aging status of the loan
and by payment activity. Loans 60 or more days past due are monitored by the collection committee. The
following tables present the risk category of loans by class based on the most recent analysis performed as of September 30, 2015
and December 31, 2014:
As
of September 30, 2015
Residential Consumer
- Consumer
- Other
Originated
Loans:
Loan
Grade:
Pass $ 70,350 $ 7,462 $ 1,432
Special
Mention
Substandard 541 28 4
Total $ 70,891 $ 7,490 $ 1,436
Residential Consumer
- Consumer
- Other
Acquired
Loans:
Loan
Grade:
Pass $ 5,294 $ 1,565 $ 120
Special
Mention
Substandard 273 9
Total $ 5,567 $ 1,574 $ 120
As
of December 31, 2014
Residential Consumer
- Consumer
- Other
Originated
Loans:
Loan
Grade:
Pass $ 64,397 $ 7,778 $ 1,155
Special
Mention
Substandard 545 24 3
Total $ 64,942 $ 7,802 $ 1,158
Residential
Consumer
- Consumer
- Other
Acquired
Loans:
Loan
Grade:
Pass $ 6,335 $ 1,731 $ 213
Special
Mention
Substandard 551 1
Total $ 6,886 $ 1,732 $ 213 The
following table presents the recorded investment in non-accrual loans by class as of September 30, 2015 and December 31, 2014:
As
of
September
30, 2015 December
31, 2014
(in thousands)
Commercial
Real Estate:
Commercial
Real Estate - construction $ $
Commercial
Real Estate - other 370 486
Commercial 151 77
Consumer:
Consumer
- real estate 35 25
Consumer
- other 4
Residential:
Residential 681 750
Total $ 1,241 $ 1,338 Acquired
impaired loans are not subject to individual evaluation for impairment and are not reported as non-performing loans based on acquired
impaired loan accounting. Acquired non-impaired loans are placed on non-accrual status and reported as past due or non-performing
using the same criteria that is applied to the originated loan portfolio. The
key features of the Companys loan modifications are determined on a loan-by-loan basis. Generally, our restructurings have
related to interest rate reductions and loan term extensions. In the past the Company has granted reductions in interest rates,
payment extensions and short-term payment forbearances as a means to maximize collectability of troubled credits. The Company
has not forgiven principal to date, although this would be considered if necessary to ensure the long-term collectability of the
loan. The Companys loan modifications are typically short-term in nature, although the Company would consider a long-term
modification to ensure the long-term collectability of the credit. At a minimum, a borrower must make at least six consecutive
timely payments before the Company would consider a return of a restructured loan to accruing status in accordance with Federal
Deposit Insurance Corporation guidelines regarding restoration of credits to accrual status. The
Bank has classified approximately $3.1 million of its impaired loans as troubled debt restructurings (TDRs) as of
September 30, 2015. There were no commitments to extend credit to borrowers with loans classified as TDRs as of September 30,
2015 and December 31, 2014. TDR
loans are classified as being in default on a case by case basis when they fail to be in compliance with the modified terms. For
the three and nine months ended September 30, 2015 and 2014 the Company did not have any new TDRs or TDRs that subsequently defaulted. For
the majority of the Banks impaired loans, the Bank will apply the market value of collateral methodology. However, the Bank
may also utilize a measurement incorporating the present value of expected future cash flows discounted at the loans effective
rate of interest. To determine observable market price, collateral asset values securing an impaired loan are periodically evaluated.
Maximum time of re-evaluation is every 12 months. In this process, third party evaluations are obtained and heavily relied upon.
Until such time that updated evaluations are received, the Bank may discount the collateral value used. The
Bank uses the following guidelines, as stated in policy, to determine when to realize a charge-off, whether a partial or full
loan balance. A charge down in whole or in part is realized when unsecured consumer loans, credit card credits and overdraft lines
of credit reach 90 days delinquency. At 120 days delinquency, secured consumer loans are charged down to the value of collateral,
if repossession of the collateral is assured and/or in the process of repossession. Consumer mortgage loan deficiencies are charged
down upon the sale of the collateral or sooner upon the recognition of collateral deficiency. Commercial credits are charged down
at 90 days delinquency, unless an established and approved work-out plan is in place or litigation of the credit will likely result
in recovery of the loan balance. Upon notification of bankruptcy, unsecured debt is charged off. Additional charge-offs may be
realized as further unsecured positions are recognized. The
following tables present loans individually evaluated for impairment by class of loans as of September 30, 2015 and December 31,
2014:
Impaired
Loans For
the Three For
the Nine
Unpaid
Principal Balance Recorded
Investment Related
Allowance Average Interest Average Interest
(dollars
in thousands)
With
no specific allowance recorded:
Commercial
Real Estate - Construction $ $ $ $ $ $ $
Commercial
Real Estate - Other 728 728 756 11 796 36
Commercial
- Other
Consumer
- Real Estate 14 12 12 12
Consumer
- Other 6 4 5 4
Residential 526 435 442 5 449 10
With
a specific allowance recorded:
Commercial
Real Estate - Construction
Commercial
Real Estate - Other 935 935 11 940 12 949 36
Commercial
- Other
Consumer
- Real Estate 18 16 16 17 17
Consumer
- Other
Residential 185 176 38 178 178 1
Totals:
Commercial
Real Estate - Construction $ $ $ $ $ $ $
Commercial
Real Estate - Other $ 1,663 $ 1,663 $ 11 $ 1,696 $ 23 $ 1,745 $ 72
Commercial
- Other $ $ $ $ $ $ $
Consumer
- Real Estate $ 32 $ 28 $ 16 $ 29 $ $ 29 $
Consumer
- Other $ 6 $ 4 $ $ 5 $ $ 4 $
Residential $ 711 $ 611 $ 38 $ 620 $ 5 $ 627 $ 11
Impaired Loans For the Three For the Nine
Unpaid Principal Balance Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized
(dollars in thousands)
With no related allowance recorded:
Commercial Real Estate - Construction $ — $ — $ — $ — $ — $ — $ —
Commercial Real Estate - Other — — — — — — —
Commercial - Other 1,431 1,430 — 1,444 21 1,499 63
Consumer - Real Estate 26 24 — — — — —
Consumer - Other — — — 27 — 27 —
Residential 781 618 — — — — —
528 1 534 4
With a specific allowance recorded:
Commercial Real Estate - Construction — — — 173 — 173 —
Commercial Real Estate - Other — — — 392 5 396 13
Commercial - Other 386 386 10 — — — —
Consumer - Real Estate — — — — — — —
Consumer - Other — — — — — — —
Residential — — — 179 — 179 1
Totals:
Commercial Real Estate - Construction $ — $ — $ — $ 173 $ — $ 173 $ —
Commercial Real Estate - Other $ — $ — $ — $ 1,836 $ 26 $ 1,895 $ 76
Commercial - Other $ 1,817 $ 1,816 $ 10 $ — $ — $ — $ —
Consumer - Real Estate $ 26 $ 24 $ — $ 27 $ — $ 27 $ —
Consumer - Other $ — $ — $ — $ — $ — $ — $ —
Residential $ 781 $ 618 $ — $ 707 $ 1 $ 713 $ 5 Acquired
loans are not subject to individual evaluation for impairment and are not reported as impaired loans based on acquired impaired
loan accounting. Acquired non-impaired loans are placed on nonaccrual status and reported as impaired using the same criteria
applied to the originated loan portfolio. In accordance with purchase accounting rules, acquired loans were recorded at fair value
at the acquisition date and the prior allowance was eliminated. No allowance for loan loss has been established on these acquired
loans through September 30, 2015. The
ALLL has a direct impact on the provision expense. An increase in the ALLL is funded through recoveries and provision expense.
Activity
in the allowance for loan and lease losses was as follows for the three and nine months ended September 30, 2015 and September
30, 2014, respectively:
Allowance
for Credit Losses
For
the Three Months Ended September 30, 2015
Commercial
Construction Commercial
Real Estate Commercial Consumer
Real Estate Consumer Residential Unallocated Total
(dollars in thousands)
Allowance
for credit losses:
Beginning
Balance $ $ 492 $ 140 $ 42 $ 18 $ 721 $ 75 $ 1,488
Charge-offs (7 ) (3 ) (5 ) (15 )
Recoveries 1 9 8 15 13 46
Provision (1 ) 55 (7 ) (15 ) (52 ) 15 (5 )
Ending
Balance $ 1 $ 500 $ 195 $ 36 $ 15 $ 677 $ 90 $ 1,514
For
the Nine Months Ended September 30, 2015
Commercial
Construction Commercial
Real Estate Commercial
Consumer
Real Estate Consumer Residential Unallocated Total
(dollars
in thousands)
Allowance
for credit losses:
Beginning
Balance $ 8 $ 307 $ 94 $ 33 $ 19 $ 869 $ 99 $ 1,429
Charge-offs (3 ) (11 ) (15 ) (42 ) (71 )
Recoveries 13 74 5 28 16 46 182
Provision (20 ) 122 96 (14 ) (5 ) (196 ) (9 ) (26 )
Ending
Balance $ 1 $ 500 $ 195 $ 36 $ 15 $ 677 $ 90 $ 1,514
Loan
Balances Evaluated for Impairment
As
of September 30, 2015
Commercial
Construction Commercial
Real Estate Commercial Consumer
Real Estate Consumer Residential Unallocated Total
(dollars
in thousands)
Allowance
for loan losses as of September 30, 2015
Ending
balance: individually evaluated for impairment $ $ 11 $ $ 16 $ $ 38 $ $ 65
Ending
balance: loans collectively evaluated for impairment $ 1 $ 489 $ 195 $ 20 $ 15 $ 639 $ 90 $ 1,449
Loans
as of September 30, 2015
Loans:
Ending
Balance $ 257 $ 59,096 $ 23,387 $ 9,063 $ 1,557 $ 76,458 $ $ 169,818
Ending
balance: individually evaluated for impairment $ $ 1,663 $ $ 28 $ 611 $ $ 2,302
Ending
balance: loans collectively evaluated for impairment $ 257 $ 43,554 $ 20,927 $ 7,462 $ 1,436 $ 70,280 $ $ 143,916
Acquired
loans with deteriorated credit quality not subject to loan loss reserve $ $ 1,892 $ 810 $ 11 $ $ 401 $ $ 3,114
Other
acquired loans not subject to loan loss reserve $ $ 11,987 $ 1,650 $ 1,563 $ 120 $ 5,166 $ $ 20,486
Allowance
for Credit Losses
For
the Three Months Ended September 30, 2014
Commercial
Construction Commercial
Real Estate Commercial Consumer
Real Estate Consumer Residential Unallocated Total
(dollars in thousands)
Allowance
for credit losses:
Beginning
Balance $ 48 $ 426 $ 72 $ 38 $ 16 $ 783 $ 104 $ 1,487
Charge-offs (225 ) (2 ) (17 ) (66 ) (310 )
Recoveries 14 1 3 12 30
Provision 2 18 (14 ) (1 ) 6 211 35 257
Ending
Balance $ 50 $ 233 $ 59 $ 38 $ 5 $ 940 $ 139 $ 1,464
For
the Nine Months Ended September 30, 2014
Commercial
Construction Commercial
Real Estate Commercial
Consumer
Real Estate Consumer Residential Unallocated Total
(dollars
in thousands)
Allowance
for credit losses:
Beginning
Balance $ 48 $ 444 $ 63 $ 62 $ 21 $ 784 $ 50 $ 1,472
Charge-offs (241 ) (15 ) (23 ) (111 ) (390 )
Recoveries 45 1 26 37 109
Provision 2 (15 ) (5 ) (35 ) 7 230 89 273
Ending
Balance $ 50 $ 233 $ 59 $ 38 $ 5 $ 940 $ 139 $ 1,464
Loan
Balances Individually Evaluated for Impairment
As
of September 30, 2014
Commercial
Construction Commercial
Real Estate Commercial Consumer
Real Estate Consumer Residential Unallocated Total
(dollars
in thousands)
Allowance
for loan losses as of September 30, 2014
Ending
balance: individually evaluated for impairment $ 48 $ 11 $ $ $ $ 39 $ $ 98
Ending
balance: loans collectively evaluated for impairment $ 2 $ 222 $ 59 $ 38 $ 5 $ 901 $ 139 $ 1,366
Loans
as of September 30, 2014
Loans:
Ending
Balance $ 634 $ 45,697 $ 12,578 $ 7,905 $ 1,098 $ 65,526 $ $ 133,438
Ending
balance: individually evaluated for impairment $ 173 $ 1,620 $ 202 $ 39 $ $ 1,370 $ $ 3,404
Ending
balance: loans collectively evaluated for impairment $ 461 $ 44,077 $ 12,376 $ 7,866 $ 1,098 $ 64,156 $ $ 130,034 |
