Village Bank & Trust Financial Corp. - 10-Q filing on 2016-05-13

Loans and allowance for loan losses

3 Months Ended

Mar. 31, 2016

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 5 – Loans and allowance for loan losses

The following table presents the composition of our loan portfolio (excluding mortgage loans held for sale) at the dates indicated (dollars in thousands):

	March 31, 2016					December 31, 2015
	Amount		%			Amount		%
Construction and land development
Residential	$	7,632		2.44	%	$	5,202		1.70	%
Commercial		24,476		7.82	%		25,948		8.46	%
		32,108		10.26	%		31,150		10.15	%
Commercial real estate
Owner occupied		70,801		22.60	%		69,256		22.58	%
Non-owner occupied		41,848		13.36	%		38,037		12.40	%
Multifamily		8,429		2.69	%		8,537		2.78	%
Farmland		382		0.12	%		388		0.13	%
		121,460		38.77	%		116,218		37.88	%
Consumer real estate
Home equity lines		21,784		6.95	%		20,333		6.63	%
Secured by 1-4 family residential,
First deed of trust		56,061		17.90	%		56,776		18.51	%
Second deed of trust		6,202		1.98	%		6,485		2.11	%
		84,047		26.83	%		83,594		27.25	%
Commercial and industrial loans (except those secured by real estate)		24,388		7.79	%		20,086		6.55	%
Guaranteed student loans		49,445		15.78	%		53,989		17.60	%
Consumer and other		1,798		0.57	%		1,734		0.57	%

Total loans		313,246		100.0	%		306,771		100.0	%
Deferred loan cost, net		688					670
Less: allowance for loan losses		(3,611)					(3,562)

	$	310,323				$	303,879

The Bank purchased portfolios of rehabilitated student loans guaranteed by the Department of Education (“DOE”). The guarantee covers approximately 98% of principal and accrued interest. The loans are serviced by a third-party servicer that specializes in handling the special needs of the DOE student loan programs.

Loans pledged as collateral with the Federal Home Loan Bank of Atlanta (“FHLB”) as part of their lending arrangement with the Company totaled $7,807,000 and $7,891,000 at March 31, 2016 and December 31, 2015, respectively.

The Company assigns risk rating classifications to its loans. These risk ratings are divided into the following groups:

Risk rated 1 to 4 loans are considered of sufficient quality to preclude an adverse rating. These assets generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral;

Risk rated 5 loans are defined as having potential weaknesses that deserve management’s close attention;

Risk rated 6 loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any;

Risk rated 7 loans have all the weaknesses inherent in substandard loans, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable; and

Loans rated 6 or 7 are considered “Classified” loans for regulatory classification purposes.

The following tables provide information on the risk rating of loans at the dates indicated (dollars in thousands):

	Risk Rated		Risk Rated		Risk Rated		Risk Rated		Total
	1-4		5		6		7		Loans
March 31, 2016
Construction and land development
Residential	$	7,632	$	-	$	-	$	-	$	7,632
Commercial		22,514		565		1,397		-		24,476
		30,146		565		1,397		-		32,108
Commercial real estate
Owner occupied		64,881		4,795		1,125		-		70,801
Non-owner occupied		40,508		1,247		93		-		41,848
Multifamily		8,232		197		-		-		8,429
Farmland		382		-		-		-		382
		114,003		6,239		1,218		-		121,460
Consumer real estate
Home equity lines		19,994		432		1,358		-		21,784
Secured by 1-4 family residential
First deed of trust		50,309		2,888		2,864		-		56,061
Second deed of trust		5,474		127		601		-		6,202
		75,777		3,447		4,823		-		84,047
Commercial and industrial loans (except those secured by real estate)		22,672		1,195		521		-		24,388
Guaranteed student loans		49,445		-		-		-		49,445
Consumer and other		1,731		60		7		-		1,798

Total loans	$	293,774	$	11,506	$	7,966	$	-	$	313,246

December 31, 2015
Construction and land development
Residential	$	5,202	$	-	$	-	$	-	$	5,202
Commercial		24,053		572		1,323		-		25,948
		29,255		572		1,323		-		31,150
Commercial real estate
Owner occupied		64,261		2,850		2,145		-		69,256
Non-owner occupied		35,887		2,055		95		-		38,037
Multifamily		8,337		200		-		-		8,537
Farmland		388		-		-		-		388
		108,873		5,105		2,240		-		116,218
Consumer real estate
Home equity lines		18,539		435		1,359		-		20,333
Secured by 1-4 family residential
First deed of trust		51,200		2,710		2,866		-		56,776
Second deed of trust		5,751		128		606		-		6,485
		75,490		3,273		4,831		-		83,594
Commercial and industrial loans (except those secured by real estate)		18,873		373		840		-		20,086
Guaranteed student loans		53,989		-		-		-		53,989
Consumer and other		1,649		62		23		-		1,734

Total loans	$	288,129	$	9,385	$	9,257	$	-	$	306,771

The following table presents the aging of the recorded investment in past due loans and leases as of the dates indicated (dollars in thousands):

													Recorded
					Greater								Investment >
	30-59 Days		60-89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
March 31, 2016
Construction and land development
Residential	$	-	$	-	$	-	$	-	$	7,632	$	7,632	$	-
Commercial		34		-		-		34		24,442		24,476		-
		34		-		-		34		32,074		32,108		-
Commercial real estate
Owner occupied		-		-		-		-		70,801		70,801		-
Non-owner occupied		-		-		-		-		41,848		41,848		-
Multifamily		-		-		-		-		8,429		8,429		-
Farmland		-		-		-		-		382		382		-
		-		-		-		-		121,460		121,460		-
Consumer real estate
Home equity lines		92		-		-		92		21,692		21,784		-
Secured by 1-4 family residential
First deed of trust		480		96		-		576		55,485		56,061		-
Second deed of trust		115		-		-		115		6,087		6,202		-
		687		96		-		783		83,264		84,047		-
Commercial and industrial loans (except those secured by real estate)		97		-		-		97		24,291		24,388		-
Guaranteed student loans		3,434		2,332		8,436		14,202		35,243		49,445		8,436
Consumer and other		29		-		-		29		1,769		1,798		-

Total loans	$	4,281	$	2,428	$	8,436	$	15,145	$	298,101	$	313,246	$	8,436

													Recorded
					Greater								Investment >
	30-59 Days		60-89 Days		Than		Total Past				Total		90 Days and
	Past Due		Past Due		90 Days		Due		Current		Loans		Accruing
December 31, 2015
Construction and land development
Residential	$	-	$	-	$	-	$	-	$	5,202	$	5,202	$	-
Commercial		-		-		-		-		25,948		25,948		-
		-		-		-		-		31,150		31,150		-
Commercial real estate
Owner occupied		327		-		-		327		68,929		69,256		-
Non-owner occupied		-		110		-		110		37,927		38,037		-
Multifamily		-		-		-		-		8,537		8,537		-
Farmland		-		-		-		-		388		388		-
		327		110		-		437		115,781		116,218		-
Consumer real estate
Home equity lines		-		-		-		-		20,333		20,333		-
Secured by 1-4 family residential
First deed of trust		163		292		-		455		56,321		56,776		-
Second deed of trust		94		-		-		94		6,391		6,485		-
		257		292		-		549		83,045		83,594		-
Commercial and industrial loans (except those secured by real estate)		-		-		-		-		20,086		20,086		-
Guaranteed student loans		7,816		1,252		8,590		17,658		36,331		53,989		8,590
Consumer and other		10		-		-		10		1,724		1,734		-

Total loans	$	8,410	$	1,654	$	8,590	$	18,654	$	288,117	$	306,771	$	8,590

Loans greater than 90 days past due are student loans that are guaranteed by the DOE which covers approximately 98% of the principal and interest. Accordingly, these loans will not be placed on nonaccrual status.

Loans are considered impaired when, based on current information and events it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Loans evaluated individually for impairment include non-performing loans, such as loans on non-accrual, loans past due by 90 days or more, restructured loans and other loans selected by management. The evaluations are based upon discounted expected cash flows or collateral valuations. If the evaluation shows that a loan is individually impaired, then a specific reserve is established for the amount of impairment. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans are set forth in the following table as of the dates indicated (dollars in thousands):

	March 31, 2016
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
With no related allowance recorded
Construction and land development
Commercial	$	52	$	119	$	-
Commercial real estate
Owner occupied		599		599
Non-owner occupied		2,621		2,621		-
		3,220		3,220		-
Consumer real estate
Home equity lines		1,238		1,247		-
Secured by 1-4 family residential
First deed of trust		4,090		4,121		-
Second deed of trust		1,106		1,376		-
		6,434		6,744		-
Commercial and industrial loans (except those secured by real estate)		368		598		-
		10,074		10,681		-

With an allowance recorded
Construction and land development
Commercial		1,764		1,764		91
Commercial real estate
Owner occupied		5,141		5,156		159
Non-Owner occupied		93		93		2
		5,234		5,249		161
Consumer real estate
Secured by 1-4 family residential
First deed of trust		1,892		1,892		338
Second deed of trust		97		97		97
		1,989		1,989		435
Commercial and industrial loans (except those secured by real estate)		143		245		8
		9,130		9,247		695

Total
Construction and land development
Commercial		1,816		1,883		91
		1,816		1,883		91
Commercial real estate
Owner occupied		5,740		5,755		159
Non-owner occupied		2,714		2,714		2
		8,454		8,469		161
Consumer real estate
Home equity lines		1,238		1,247		-
Secured by 1-4 family residential,
First deed of trust		5,982		6,013		338
Second deed of trust		1,203		1,473		97
		8,423		8,733		435
Commercial and industrial loans (except those secured by real estate)		511		843		8
	$	19,204	$	19,928	$	695

	December 31, 2015
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
With no related allowance recorded
Construction and land development
Commercial	$	123	$	190	$	-
Commercial real estate
Owner occupied		1,066		1,066
Non-owner occupied		2,418		2,418		-
		3,484		3,484		-
Consumer real estate
Home equity lines		1,238		1,247		-
Secured by 1-4 family residential
First deed of trust		3,984		3,988		-
Second deed of trust		962		1,232		-
		6,184		6,467		-
Commercial and industrial loans (except those secured by real estate)		690		920		-
		10,481		11,061		-

With an allowance recorded
Construction and land development
Commercial		1,699		1,699		2
Commercial real estate
Owner occupied		5,719		5,734		383
Non-Owner occupied		449		449		26
		6,168		6,183		409
Consumer real estate
Secured by 1-4 family residential
First deed of trust		1,775		1,775		324
Second deed of trust		250		250		98
		2,025		2,025		422
Commercial and industrial loans (except those secured by real estate)		136		238		18
		10,028		10,145		851

Total
Construction and land development
Commercial		1,822		1,889		2
		1,822		1,889		2
Commercial real estate
Owner occupied		6,785		6,800		383
Non-owner occupied		2,867		2,867		26
		9,652		9,667		409
Consumer real estate
Home equity lines		1,238		1,247		-
Secured by 1-4 family residential,
First deed of trust		5,759		5,763		324
Second deed of trust		1,212		1,482		98
		8,209		8,492		422
Commercial and industrial loans (except those secured by real estate)		826		1,158		18
	$	20,509	$	21,206	$	851

The following is a summary of average recorded investment in impaired loans with and without a valuation allowance and interest income recognized on those loans for the periods indicated (dollars in thousands):

	For the Three Months Ended March 31,
	2016				2015
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded
Construction and land development
Residential	$	-	$	-	$	232	$	1
Commercial		98		11		2,967		39
		98		11		3,199		40
Commercial real estate
Owner occupied		816		14		1,680		17
Non-owner occupied		2,631		34		6,563		87
Multifamily		-		-		968		6
Farmland		-		-		14		-
		3,447		48		9,225		110
Consumer real estate
Home equity lines		1,287		-		800		4
Secured by 1-4 family residential
First deed of trust		4,092		47		6,401		90
Second deed of trust		1,057		12		1,183		14
		6,436		59		8,384		108
Commercial and industrial loans (except those secured by real estate)		797		7		227		2
Consumer and other		15		-		19		-
		10,793		125		21,054		260

With an allowance recorded
Construction and land development
Commercial		1,743		6		587		4
Commercial real estate
Owner occupied		5,600		57		6,597		66
Non-Owner occupied		94		5		102		1
		5,694		62		6,699		67
Consumer real estate
Home equity lines		30		-		-		-
Secured by 1-4 family residential
First deed of trust		2,042		6		1,285		-
Second deed of trust		149		2		254
		2,221		8		1,539		-
Commercial and industrial loans (except those secured by real estate)		138		-		493		5
		9,796		76		9,318		76

Total
Construction and land development
Residential		-		-		232		1
Commercial		1,842		17		3,554		43
		1,842		17		3,786		44
Commercial real estate
Owner occupied		6,416		71		8,277		83
Non-owner occupied		2,725		39		6,665		88
Multifamily		-		-		968		6
Farmland		-		-		14		-
		9,141		110		15,924		177
Consumer real estate
Home equity lines		1,317		-		800		4
Secured by 1-4 family residential,
First deed of trust		6,134		53		7,686		90
Second deed of trust		1,206		14		1,437		14
		8,657		67		9,923		108
Commercial and industrial loans (except those secured by real estate)		936		7		720		7
Consumer and other		15		-		19		-
	$	20,589	$	201	$	30,372	$	336

Included in impaired loans are loans classified as troubled debt restructurings (“TDRs”). A modification of a loan’s terms constitutes a TDR if the creditor grants a concession to the borrower for economic or legal reasons related to the borrower’s financial difficulties that it would not otherwise consider. For loans classified as impaired TDRs, the Company further evaluates the loans as performing or nonaccrual. To restore a nonaccrual loan that has been formally restructured in a TDR to accrual status, we perform a current, well documented credit analysis supporting a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms. Otherwise, the TDR must remain in nonaccrual status. The analysis considers the borrower’s sustained historical repayment performance for a reasonable period to the return-to-accrual date, but may take into account payments made for a reasonable period prior to the restructuring if the payments are consistent with the modified terms. A sustained period of repayment performance generally would be a minimum of six months and would involve payments in the form of cash or cash equivalents.

An accruing loan that is modified in a TDR can remain in accrual status if, based on a current well-documented credit analysis, collection of principal and interest in accordance with the modified terms is reasonably assured, and the borrower has demonstrated sustained historical repayment performance for a reasonable period before modification. The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment for the periods indicated (dollars in thousands).

							Specific
							Valuation
	Total		Performing		Nonaccrual		Allowance
March 31, 2016
Construction and land development
Residential	$	-	$	-	$	-	$	-
Commercial		1,694		1,694		-		80
		1,694		1,694		-		80
Commercial real estate
Owner occupied		5,688		5,429		259		159
Non-owner occupied		2,714		2,714		-		2
		8,402		8,143		259		161
Consumer real estate
Home equity lines		85		-		85		-
Secured by 1-4 family residential
First deeds of trust		4,242		3,260		982		275
Second deeds of trust		686		686		-		-
		5,013		3,946		1,067		275
Commercial and industrial loans (except those secured by real estate)		119		-		119		1
Consumer and other		-		-		-		-
	$	15,228	$	13,783	$	1,445	$	517

							Specific
							Valuation
	Total		Performing		Nonaccrual		Allowance
December 31, 2015
Construction and land development
Residential	$	-	$	-	$	-	$	-
Commercial		1,699		1,699		-		2
		1,699		1,699		-		2
Commercial real estate
Owner occupied		5,730		5,458		272		184
Non-owner occupied		2,866		2,866		-		26
Multifamily		-		-		-		-
		8,596		8,324		272		210
Consumer real estate
Home equity lines		87		-		87		-
Secured by 1-4 family residential
First deeds of trust		4,283		3,544		739		236
Second deeds of trust		693		693		-		1
		5,063		4,237		825		237
Commercial and industrial loans (except those secured by real estate)		127		-		127		18
Consumer and other		-		-		-		-
	$	15,485	$	14,260	$	1,225	$	467

There were no TDRs identified during the three months ended March 31, 2016 and 2015.

The following table summarizes defaults on TDRs identified for the indicated periods (dollars in thousands):

	March 31, 2016				March 31, 2015
	Number of		Recorded		Number of		Recorded
	Loans		Balance		Loans		Balance

Commercial real estate
Owner occupied		-	$	-		1	$	406
		-		-		1		406
Consumer real estate
Secured by 1-4 family residential
First deed of trust		1		262		1		121
Second deed of trust		3		181		-		-
		4		443		1		121

Commercial and industrial (except those secured by real estate)		1		119		-		-
		5	$	562		2	$	527

Activity in the allowance for loan losses is as follows for the periods indicated (dollars in thousands):

	Beginning		Provision for						Ending
	Balance		Loan Losses		Charge-offs		Recoveries		Balance

Three Months Ended March 31, 2016
Construction and land development
Residential	$	30	$	13	$	-	$	1	$	44
Commercial		291		62		-		-		353
		321		75		-		1		397
Commercial real estate
Owner occupied		1,167		(182)		-		-		985
Non-owner occupied		460		(59)		-		1		402
Multifamily		51		-		-		-		51
Farmland		17		(138)		-		125		4
		1,695		(379)		-		126		1,442
Consumer real estate
Home equity lines		448		(57)		-		1		392
Secured by 1-4 family residential
First deed of trust		602		(35)		(27)		6		546
Second deed of trust		111		(19)		-		5		97
		1,161		(111)		(27)		12		1,035
Commercial and industrial loans (except those secured by real estate)		94		(23)		-		24		95
Guaranteed student loans		230		63		(87)		-		206
Consumer and other		2		(2)		(1)		1		-
Unallocated		59		377		-		-		436

	$	3,562	$	-	$	(115)	$	164	$	3,611

	Beginning		Provision for						Ending
	Balance		Loan Losses		Charge-offs		Recoveries		Balance

Three Months Ended March 31, 2015
Construction and land development
Residential	$	34	$	51	$	-	$	1	$	86
Commercial		202		242		(115)		1		330
		236		293		(115)		2		416
Commercial real estate
Owner occupied		1,837		59		-		-		1,896
Non-owner occupied		607		76		-		-		683
Multifamily		77		39		-		-		116
Farmland		130		(125)		-		-		5
		2,651		49		-		-		2,700
Consumer real estate
Home equity lines		469		214		-		-		683
Secured by 1-4 family residential
First deed of trust		1,345		(429)		-		358		1,274
Second deed of trust		275		(67)		-		9		217
		2,089		(282)		-		367		2,174
Commercial and industrial loans (except those secured by real estate)		506		(52)		(162)		12		304
Student Loans		217		-		-		-		217
Consumer and other		30		(8)		(2)		13		33

	$	5,729	$	-	$	(279)	$	394	$	5,844

	Beginning		Provision for						Ending
	Balance		Loan Losses		Charge-offs		Recoveries		Balance

Year Ended December 31, 2015
Construction and land development
Residential	$	34	$	(6)	$	-	$	2	$	30
Commercial		202		292		(252)		49		291
		236		286		(252)		51		321
Commercial real estate
Owner occupied		1,837		(576)		(127)		33		1,167
Non-owner occupied		607		(151)		-		4		460
Multifamily		77		(26)		-		-		51
Farmland		130		(113)		-		-		17
		2,651		(866)		(127)		37		1,695
Consumer real estate
Home equity lines		469		36		(62)		5		448
Secured by 1-4 family residential
First deed of trust		1,345		(1,020)		(103)		380		602
Second deed of trust		275		(159)		(55)		50		111
		2,089		(1,143)		(220)		435		1,161
Commercial and industrial loans (except those secured by real estate)		506		(350)		(162)		100		94
Guaranteed student loans		217		13		-		-		230
Consumer and other		30		1		(55)		26		2
Unallocated		-		59		-		-		59

	$	5,729	$	(2,000)	$	(816)	$	649	$	3,562

The allowance for loan losses at each of the periods presented includes an amount that could not be identified to individual types of loans referred to as the unallocated portion of the allowance. We recognize the inherent imprecision in estimates of losses due to various uncertainties and variability related to the factors used, and therefore a reasonable range around the estimate of losses is derived and used to ascertain whether the allowance is too high. We concluded that the unallocated portion of the allowance was acceptable given the continued higher level of classified assets and was within a reasonable range around the estimate of losses.

Discussion of the recovery of loan losses related to specific loan types are provided following:

⋅

The recovery of loan losses totaling $379,000 for the commercial real estate portfolio in the first quarter of 2016 was attributable to changes in our assessment of the general component of the allowance for loan losses as it related to this portfolio. The general component allocated to this portfolio declined primarily as a result of declines in the historical loss experience from 0.57% in 2015 to 0.41% in the first quarter of 2016. In addition, the portfolio was in a net-recovery position of $126,000 for the first quarter of 2016.

⋅

The recovery of loan losses totaling $111,000 for the consumer real estate portfolio in the first quarter of 2016 was also attributable to changes in our assessment of the general component of the allowance for loan losses as it related to this portfolio. The general component allocated to this portfolio declined primarily as a result of declines in the historical loss experience from 0.24% in 2015 to 0.03% in the first quarter of 2016.

⋅

The recovery of loan losses totaling $866,000 for the commercial real estate portfolio in 2015 was also attributable to changes in our assessment of the general component of the allowance for loan losses as it related to this portfolio. The general component allocated to this portfolio declined primarily as a result of declines in the historical loss experience from 0.96% in 2014 to 0.57% in 2015. In addition, net charge-offs on this portfolio decreased from $1,220,000 in 2014 to $90,000 in 2015. Also contributing to the declines in the general component were declines of approximately $6,179,000 and $7,021,000 in the outstanding loan balance of this portfolio at December 31, 2015 and 2014, respectively.

⋅

The recovery of loan losses totaling $1,143,000 for the consumer real estate portfolio in 2015 was also attributable to changes in our assessment of the general component of the allowance for loan losses as it related to this portfolio. The general component allocated to this portfolio declined primarily as a result of declines in the historical loss experience from 1.36% in 2014 to 0.24% in 2015. In addition, net charge-offs on this portfolio decreased from $562,000 in 2014 to a net recovery of $215,000 in 2015.

Loans were evaluated for impairment as follows for the periods indicated (dollars in thousands):

	Recorded Investment in Loans
	Allowance								Loans
							Loans acquired								Loans acquired
	Ending						with deteriorated		Ending						with deteriorated
	Balance		Individually		Collectively		credit quality		Balance		Individually		Collectively		credit quality

Period Ended March 31, 2016
Construction and land development
Residential	$	44	$	-	$	44	$	-	$	7,632	$	-	$	7,632	$	-
Commercial		353		91		262		-		24,476		1,816		22,660		-
		397		91		306		-		32,108		1,816		30,292		-
Commercial real estate
Owner occupied		985		159		826		-		70,801		5,740		65,061		-
Non-owner occupied		402		2		400		-		41,848		2,714		39,134		-
Multifamily		51		-		51		-		8,429		-		8,429		-
Farmland		4		-		4		-		382		-		382		-
		1,442		161		1,281		-		121,460		8,454		113,006		-
Consumer real estate
Home equity lines		392		-		392		-		21,784		1,238		20,546		-
Secured by 1-4 family residential
First deed of trust		546		338		208		-		56,061		5,982		50,079		-
Second deed of trust		97		97		-		-		6,202		1,203		4,999		-
		1,035		435		600		-		84,047		8,423		75,624		-
Commercial and industrial loans (except those secured by real estate)		95		8		87		-		24,388		511		23,877		-
Student loans		206		-		206				49,445		-		49,445		-
Consumer and other		436		-		436		-		1,798		-		1,798		-

	$	3,611	$	695	$	2,916	$	-	$	313,246	$	19,204	$	294,042	$	-

Year Ended December 31, 2015
Construction and land development
Residential	$	30	$	-	$	30	$	-	$	5,202	$	-	$	5,202	$	-
Commercial		291		2		289		-		25,948		1,822		24,126		-
		321		2		319		-		31,150		1,822		29,328		-
Commercial real estate
Owner occupied		1,167		383		784		-		69,256		6,785		62,471		-
Non-owner occupied		460		26		434		-		38,037		2,867		35,170		-
Multifamily		51		-		51		-		8,537		-		8,537		-
Farmland		17		-		17		-		388		-		388		-
		1,695		409		1,286		-		116,218		9,652		106,566		-
Consumer real estate
Home equity lines		448		-		448		-		20,333		1,238		19,095		-
Secured by 1-4 family residential
First deed of trust		602		324		278		-		56,776		5,759		51,017		-
Second deed of trust		111		98		13		-		6,485		1,212		5,273		-
		1,161		422		739		-		83,594		8,209		75,385		-
Commercial and industrial loans (except those secured by real estate)		94		18		76		-		20,086		826		19,260		-
Student loans		230		-		230				53,989		-		53,989		-
Consumer and other		61		-		61		-		1,734		-		1,734		-

	$	3,562	$	851	$	2,711	$	-	$	306,771	$	20,509	$	286,262	$	-