10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

FORM 10-Q/A

(Amendment No. 1)

Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2012

OR

£ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number 0-22345

SHORE BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Maryland	52-1974638
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

18 East Dover Street, Easton, Maryland	21601
(Address of Principal Executive Offices)	(Zip Code)

(410) 763-7800

Registrant’s Telephone Number, Including Area Code

N/A

Former name, former address and former fiscal year, if changed since last report.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes R No £

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes R No £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	£	Accelerated filer	R
Non-accelerated filer	£	Smaller reporting company	£
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes £ No R

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 8,457,359 shares of common stock outstanding as of July 31, 2012.

EXPLANATORY NOTE

This Amendment No. 1 on Form 10-Q/A to the Quarterly Report of Shore Bancshares, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2012, initially filed with the Securities and Exchange Commission on August 9, 2012 (the “Original Filing”), is being filed as an exhibit-only filing for the purpose of furnishing the Interactive Data Files that are required by Item 601(b)(101) of Regulation S-K and Rule 405 of Regulation S-T. As permitted by Rule 405(a)(2)(ii) of Regulation S-T, Exhibit 101 is required to be furnished by amendment within 30 days of the filing date of the Original Report. The Company’s Interactive Data Files are furnished herewith as Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB and 101.PRE. No other changes have been made to the Original Filing, and, except as amended hereby, the Original Filing remains in effect as of the filing date thereof. This Amendment No. 1 does not purport to provide an update or a discussion of any developments at the Company subsequent to the filing date of the Original Filing. New certifications by the Company’s principal executive officer and principal accounting officer are not required to be filed or furnished with this Amendment No. 1.

2

PART II – OTHER INFORMATION

Item 6. Exhibits.

The exhibits filed or furnished with this quarterly report are shown on the Exhibit List that follows the signatures to this report, which list is incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SHORE BANCSHARES, INC.
Date: August 14, 2012	By:	/s/ W. Moorhead Vermilye
		W. Moorhead Vermilye
		Chief Executive Officer
		(Principal Executive Officer)

3

EXHIBIT INDEX

Exhibit
Number	Description
31.1	Certifications of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act(1).
31.2	Certifications of the Principal Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act(1).
32	Certification pursuant to Section 906 of the Sarbanes-Oxley Act(2).
101.INS	XBRL Instance File (furnished herewith).
101.SCH	XBRL Label File (furnished herewith).
101.CAL	XBRL Calculation File (furnished herewith).
101.DEF	XBRL Definition File (furnished herewith).
101.LAB	XBRL Label File (furnished herewith).
101.PRE	XBRL Presentation File (furnished herewith).

⁽¹⁾ Filed with the Original Filing

⁽²⁾ Furnished with the Original Filing

4

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Loans and allowance for credit losses (Details 4) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current	$ 748,133	$ 760,733
30-59 days past due	6,517	17,198
60-89 days past due	3,831	9,026
90 days or more past due	3,519	2,723
Total past due	13,867	28,947
Non accrual	47,958	51,370
Total	809,958	841,050
Current	92.40%	90.50%
30-59 days past due	0.80%	2.00%
60-89 days past due	0.50%	1.10%
90 days or more past due	0.40%	0.30%
Total past due	1.70%	3.40%
Non accrual	5.90%	6.10%
Commercial Loan [Member]
Current	61,278	64,581
30-59 days past due	46	1,350
60-89 days past due	9	1,819
90 days or more past due	62	66
Total past due	117	3,235
Non accrual	1,609	1,669
Total	63,004	69,485
Consumer Loan [Member]
Current	13,837	14,492
30-59 days past due	51	112
60-89 days past due	23	6
90 days or more past due	184	1
Total past due	258	119
Non accrual	55	28
Total	14,150	14,639
Residential Real Estate [Member]
Current	279,299	289,459
30-59 days past due	4,133	4,417
60-89 days past due	1,029	5,291
90 days or more past due	1,232	2,331
Total past due	6,394	12,039
Non accrual	20,400	20,106
Total	306,093	321,604
Commercial Real Estate [Member]
Current	297,782	289,760
30-59 days past due	2,287	10,073
60-89 days past due	1,898	1,594
90 days or more past due	2,041	0
Total past due	6,226	11,667
Non accrual	11,636	14,012
Total	315,644	315,439
Construction Loans [Member]
Current	95,937	102,441
30-59 days past due	0	1,246
60-89 days past due	872	316
90 days or more past due	0	325
Total past due	872	1,887
Non accrual	14,258	15,555
Total	$ 111,067	$ 119,883

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Financial Instruments with Off-Balance Sheet Risk (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Commitments to extend credit	$ 146,547	$ 136,222
Letters of credit	12,013	11,311
Total	$ 158,560	$ 147,533

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Stock-Based Compensation (Details Textual) (USD $)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
Investment Options, Exercise Price	$ 6.64
Percentage of After Two Years Grants	50.00%
Percentage of After Three Years Grants	50.00%
Share-based Compensation Arrangement by Share-based Payment Award Estimated Fair Value of Stock Price		$ 5.98
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	9 years 11 months 0 days	9 years 8 months 0 days	0 years
Option Plan 1998 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Terminated in Period, Gross		7,125
Share-based Compensation Shares Authorized Under Stock Option Plans Expire Period		10 years
Equity Plan 2006 [Member]
Share-based Compensations Arrangements Share-based Payment Award Number of Additional Shares Authorized	54,216

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Segment Reporting (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Interest income	$ 11,692	$ 12,735	$ 23,548	$ 25,453
Interest expense	(2,659)	(2,793)	(5,320)	(5,649)
Provision for credit losses	(3,525)	(5,395)	(11,895)	(11,785)
Noninterest income	4,577	4,381	9,151	8,776
Noninterest expense	(9,663)	(9,194)	(20,161)	(19,085)
Net intersegment (expense) income			0	0
(Loss) income before taxes	422	(266)	(4,677)	(2,290)
Income tax benefit (expense)	(129)	33	1,934	974
Net (loss) income	293	(233)	(2,743)	(1,316)
Total assets	1,175,333	1,124,191	1,175,333	1,124,191	1,158,193
Community Banking [Member]
Interest income			23,509	25,387
Interest expense			(5,309)	(5,628)
Provision for credit losses			(11,895)	(11,785)
Noninterest income			3,706	3,422
Noninterest expense			(12,157)	(11,390)
Net intersegment (expense) income			(2,687)	(2,876)
(Loss) income before taxes			(4,833)	(2,870)
Income tax benefit (expense)			2,001	1,220
Net (loss) income			(2,832)	(1,650)
Total assets	1,156,644	1,102,389	1,156,644	1,102,389
Insurance Products and Services [Member]
Interest income			39	66
Interest expense			0	0
Provision for credit losses			0	0
Noninterest income			5,395	5,284
Noninterest expense			(4,967)	(4,743)
Net intersegment (expense) income			(257)	(244)
(Loss) income before taxes			210	363
Income tax benefit (expense)			(89)	(154)
Net (loss) income			121	209
Total assets	16,903	18,933	16,903	18,933
Parent Company [Member]
Interest income			0	0
Interest expense			(11)	(21)
Provision for credit losses			0	0
Noninterest income			50	70
Noninterest expense			(3,037)	(2,952)
Net intersegment (expense) income			2,944	3,120
(Loss) income before taxes			(54)	217
Income tax benefit (expense)			22	(92)
Net (loss) income			(32)	125
Total assets	$ 1,786	$ 2,869	$ 1,786	$ 2,869

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Stock-Based Compensation (Details 2) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended	6 Months Ended
	Dec. 31, 2011	Jun. 30, 2012 Stock Option [Member]
Number of Shares,Outstanding at beginning of period (in shares)		0
Number of Shares,Granted (in shares)		54,216
Number of Shares,Exercised (in shares)		0
Number of Shares,Expired/Cancelled (in shares)		0
Number of Shares,Outstanding at end of period (in shares)	0	54,216
Number of Shares,Exercisable at end of period (in shares)		0
Weighted Average Exercise Price,Outstanding at beginning of period (in dollars per share)		$ 0
Weighted Average Exercise Price,Granted (in dollars per share)		$ 6.64
Weighted Average Exercise Price,Exercised (in dollars per share)		$ 0
Weighted Average Exercise Price,Expired/Cancelled (in dollars per share)		$ 0
Weighted Average Exercise Price,Outstanding at end of period (in dollars per share)	$ 0	$ 6.64
Weighted Average Exercise Price,Exercisable at end of period (in dollars per share)		$ 0
Aggregate Intrinsic Value,Outstanding at end of period		$ 0
Aggregate Intrinsic Value,Exercisable at end of period		$ 0
Weighted Average Grant Date Fair Value,Granted (in dollars per share)		3.44
Weighted Average Grant Date Fair Value,Exercised (in dollars per share)		0
Weighted Average Grant Date Fair Value,Expired/Cancelled (in dollars per share)		0
Weighted Average Grant Date Fair Value,Outstanding at end of period (in dollars per share)	0	3.44
Weighted Average Grant Date Fair Value,Exercisable at end of period (in dollars per share)		0

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Investment Securities (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Available for sale, Due in one year or less amortized cost	$ 8,012
Available for sale, Due after one year through five years amortized cost	14,238
Available for sale, Due after five years through ten years amortized cost	4,995
Available for sale, Due after ten years amortized cost	102,201
Available for sale securities, Debt maturities amortized cost	129,446
Available for-sale securities, amortized cost,Total	130,031
Available for sale, Due in one year or less estimated fair value	8,047
Available for sale, Due after one year through five years estimated fair value	14,284
Available for sale, Due after five years through ten years estimated fair value	5,157
Available for sale, Due after ten years estimated fair value	105,139
Available for sale securities, Debt maturities estimated fair value	132,627
Available For Sale Securities Estimated Fair Value,Total	133,244	129,780
Held to maturity securities, Due in one year or less amortized cost	1,976
Held to maturity securities, Due after one year through five years amortized cost	1,680
Held to maturity securities, Due after five years through ten years amortized cost	502
Held to maturity securities, Due after ten years amortized cost	1,010
Held to maturity securities, Debt maturities amortized cost	5,168
Held to maturity securities, amortized cost	5,168	6,480
Held to maturity securities, Due in one year or less estimated fair value	1,989
Held to maturity securities, Due after one year through five years estimated fair value	1,748
Held to maturity securities, Due after five years through ten years estimated fair value	575
Held to maturity securities, Due after ten years estimated fair value	1,113
Held to maturity securities, Debt maturities estimated fair value	5,425
Held-to-maturity securities, Estimated Fair Value	5,425	6,732
Equity Securities [Member]
Available for-sale securities, amortized cost,Total	585
Available For Sale Securities Estimated Fair Value,Total	$ 617	$ 599

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share Based Compensation [Text Block]

The following tables provide information on stock-based compensation expense for the first three and six months of 2012 and 2011.

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2012		2011		2012		2011
Stock-based compensation expense	$	44	$	68	$	141	$	137

	June 30,
(Dollars in thousands)	2012		2011
Unrecognized stock-based compensation expense	$	211	$	368
Weighted average period unrecognized expense is expected to be recognized		2.3 years		1.1 years

Schedule of Nonvested Share Activity [Table Text Block]

The following table summarizes restricted stock award activity for the Company under the 2006 Equity Plan for the six months ended June 30, 2012.

	Number			Weighted Average Grant
	of Shares			Date Fair Value
Nonvested at beginning of period		45,779		$	13.20
Granted		-			-
Vested		(39,231	)		12.92
Cancelled		-			-
Nonvested at end of period		6,548		$	14.89

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

The following table summarizes stock option activity for the Company under the 2006 Equity Plan for the six months ended June 30, 2012.

			Weighted		Aggregate		Weighted Average
	Number		Average		Intrinsic		Grant Date
	of Shares		Exercise Price		Value		Fair Value
Outstanding at beginning of period		-	$	-			$	-
Granted		54,216		6.64				3.44
Exercised		-		-				-
Expired/Cancelled		-		-				-
Outstanding at end of period		54,216	$	6.64	$	-	$	3.44
Exercisable at end of period		-	$	-	$	-	$	-

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The following weighted average assumptions were used as inputs to the Black-Scholes valuation model for options granted in 2012.

Dividend yield	0.60%
Expected volatility	58.65%
Risk-free interest rate	1.69%
Expected contract life (in years)	5.83

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Fair Value Measurements (Details 1) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Impaired loans:
Beginning balance	$ 75,112	$ 61,186
Charge-offs	(9,830)	(9,952)
Payments	(5,358)	(8,640)
Transfers to other real estate owned	(3,747)	(5,002)
Returned to performing status	0	(1,907)
Changed to nonaccrual status	(1,452)	(4,381)
Additions	28,998	39,628
Changes in allowance	436	(1,159)
Ending balance	84,159	69,773
Construction [Member]
Impaired loans:
Beginning balance	27,166	28,175
Charge-offs	(1,775)	(1,396)
Payments	(715)	(837)
Transfers to other real estate owned	(1,620)	(1,719)
Returned to performing status	0	0
Changed to nonaccrual status	(666)	(419)
Additions	8,776	4,403
Changes in allowance	90	0
Ending balance	31,256	28,207
Residential Real Estate [Member]
Impaired loans:
Beginning balance	22,602	15,327
Charge-offs	(5,356)	(4,300)
Payments	(3,185)	(4,931)
Transfers to other real estate owned	(763)	(522)
Returned to performing status	0	(1,907)
Changed to nonaccrual status	(786)	(2,162)
Additions	11,600	18,391
Changes in allowance	876	(86)
Ending balance	24,988	19,810
Commercial Real Estate [Member]
Impaired loans:
Beginning balance	23,578	13,280
Charge-offs	(1,435)	(2,487)
Payments	(1,375)	(2,329)
Transfers to other real estate owned	(1,334)	(2,577)
Returned to performing status	0	0
Changed to nonaccrual status	0	(1,800)
Additions	7,279	15,723
Changes in allowance	(500)	(506)
Ending balance	26,213	19,304
Commercial [Member]
Impaired loans:
Beginning balance	1,738	4,374
Charge-offs	(1,264)	(1,769)
Payments	(80)	(542)
Transfers to other real estate owned	(30)	(184)
Returned to performing status	0	0
Changed to nonaccrual status	0	0
Additions	1,313	1,111
Changes in allowance	(30)	(567)
Ending balance	1,647	2,423
Consumer [Member]
Impaired loans:
Beginning balance	28	30
Charge-offs	0	0
Payments	(3)	(1)
Transfers to other real estate owned	0	0
Returned to performing status	0	0
Changed to nonaccrual status	0	0
Additions	30	0
Changes in allowance	0	0
Ending balance	$ 55	$ 29

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Other Assets (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012		Dec. 31, 2011
Nonmarketable investment securities	$ 2,874		$ 2,866
Insurance premiums receivable	563		876
Accrued interest receivable	3,644		3,933
Income taxes receivable	2,711		719
Deferred income taxes	8,113		9,036
Interest rate caps	68	[1]	250	[1]
Prepaid expenses	3,060		3,641
Other assets	6,010		5,399
Total	$ 27,043		$ 26,720

[1] See Note 9 for further discussion.

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Loans and allowance for credit losses (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Troubled Debt Restructurings [Member]
Number of contract	62	50
Premodification outstanding recorded investment	$ 57,372	$ 40,395
Postmodification outstanding recorded investment	42,218	37,142
Troubled Debt Restructurings That Subsequently Defaulted [Member]
Number of contract	23	18
Recorded investment	13,082	14,862
Commercial Loan [Member] | Troubled Debt Restructurings [Member]
Number of contract	2	1
Premodification outstanding recorded investment	125	69
Postmodification outstanding recorded investment	114	69
Commercial Loan [Member] | Troubled Debt Restructurings That Subsequently Defaulted [Member]
Number of contract	1	0
Recorded investment	46	0
Consumer Loan [Member] | Troubled Debt Restructurings [Member]
Number of contract	1	0
Premodification outstanding recorded investment	30	0
Postmodification outstanding recorded investment	28	0
Consumer Loan [Member] | Troubled Debt Restructurings That Subsequently Defaulted [Member]
Number of contract	1	0
Recorded investment	28	0
Residential Real Estate [Member] | Troubled Debt Restructurings [Member]
Number of contract	26	20
Premodification outstanding recorded investment	13,530	11,471
Postmodification outstanding recorded investment	12,283	10,359
Residential Real Estate [Member] | Troubled Debt Restructurings That Subsequently Defaulted [Member]
Number of contract	12	10
Recorded investment	8,163	7,353
Commercial Real Estate [Member] | Troubled Debt Restructurings [Member]
Number of contract	19	20
Premodification outstanding recorded investment	21,814	15,874
Postmodification outstanding recorded investment	18,633	14,175
Commercial Real Estate [Member] | Troubled Debt Restructurings That Subsequently Defaulted [Member]
Number of contract	5	5
Recorded investment	3,557	6,751
Construction Loans [Member] | Troubled Debt Restructurings [Member]
Number of contract	14	9
Premodification outstanding recorded investment	21,873	12,981
Postmodification outstanding recorded investment	18,366	12,539
Construction Loans [Member] | Troubled Debt Restructurings That Subsequently Defaulted [Member]
Number of contract	4	3
Recorded investment	$ 1,288	$ 758

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Fair Value Measurements (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Financial assets,Carrying Amount
Cash and cash equivalents,Carrying Amount	$ 169,573	$ 127,742	$ 80,713	$ 77,964
Investment securities held to maturity, Carrying Amount	5,168	6,480
Loans, net,Carrying Amount	796,968	826,762
Financial liabilities,Carrying Amount
Deposits,Carrying Amount	1,032,703	1,009,919
Short-term borrowings,Carrying Amount	13,826	17,817
Long-term debt,Carrying Amount	455	455
Financial assets,Estimated Fair Value
Investment securities held to maturity,Estimated Fair Value	5,425	6,732
Fair Value, Inputs, Level 2 [Member]
Financial assets,Carrying Amount
Cash and cash equivalents,Carrying Amount	169,573	127,742
Investment securities held to maturity, Carrying Amount	5,168	6,480
Financial liabilities,Carrying Amount
Deposits,Carrying Amount	1,032,703	1,009,919
Short-term borrowings,Carrying Amount	13,826	17,817
Long-term debt,Carrying Amount	455	455
Financial assets,Estimated Fair Value
Cash and cash equivalents,Estimated Fair Value	169,573	127,742
Investment securities held to maturity,Estimated Fair Value	5,425	6,732
Financial liabilities,Estimated Fair Value
Deposits,Estimated Fair Value	1,036,353	1,013,964
Short-term borrowings,Estimated Fair Value	13,826	17,817
Long-term debt,Estimated Fair Value	460	470
Fair Value, Inputs, Level 3 [Member]
Financial assets,Carrying Amount
Loans, net,Carrying Amount	796,968	826,762
Financial assets,Estimated Fair Value
Loans, net,Estimated Fair Value	$ 826,149	$ 856,917

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Stock-Based Compensation (Details 3)	6 Months Ended
	Jun. 30, 2012
Dividend yield	0.60%
Expected volatility	58.65%
Risk-free interest rate	1.69%
Expected contract life (in years)	5 years 10 months 0 days

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Basis of Presentation

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

Note 1 - Basis of Presentation

The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries with all significant intercompany transactions eliminated. The consolidated financial statements conform to accounting principles generally accepted in the United States of America (“GAAP”) and to prevailing practices within the banking industry. The accompanying interim financial statements are unaudited; however, in the opinion of management all adjustments necessary to present fairly the consolidated financial position at June 30, 2012, the consolidated results of operations and comprehensive income (loss) for the three and six months ended June 30, 2012 and 2011, and changes in stockholders’ equity and cash flows for the six months ended June 30, 2012 and 2011, have been included. All such adjustments are of a normal recurring nature. The amounts as of December 31, 2011 were derived from the 2011 audited financial statements. The results of operations for the three and six months ended June 30, 2012 are not necessarily indicative of the results to be expected for any other interim period or for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with the Annual Report of Shore Bancshares, Inc. on Form 10-K for the year ended December 31, 2011. For purposes of comparability, certain reclassifications have been made to amounts previously reported to conform with the current period presentation.

When used in these notes, the term “the Company” refers to Shore Bancshares, Inc. and, unless the context requires otherwise, its consolidated subsidiaries.

Recent Accounting Pronouncements

Accounting Standards Update (“ASU”) 2011-03, “Reconsideration of Effective Control for Repurchase Agreements.” ASU 2011-03 affects all entities that enter into agreements to transfer financial assets that both entitle and obligate the transferor to repurchase or redeem the financial assets before their maturity. The amendments in ASU 2011-03 remove from the assessment of effective control the criterion relating to the transferor’s ability to repurchase or redeem financial assets on substantially the agreed terms, even in the event of default by the transferee. ASU 2011-03 also eliminates the requirement to demonstrate that the transferor possesses adequate collateral to fund substantially all the cost of purchasing replacement financial assets. ASU 2011-03 became effective for the Company on January 1, 2012 and did not have a significant impact on the Company’s financial statements.

ASU 2011-04, "Fair Value Measurement - Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in U.S. GAAP and IFRSs." ASU 2011-04 amends Topic 820, "Fair Value Measurements and Disclosures," to converge the fair value measurement guidance in U.S. Generally Accepted Accounting Principles and International Financial Reporting Standards. ASU 2011-04 clarifies the application of existing fair value measurement requirements, changes certain principles in Topic 820 and requires additional fair value disclosures. ASU 2011-04 became effective for the Company on January 1, 2012 and, aside from new disclosures included in Note 8 – Fair Value Measurements, did not have a significant impact on the Company’s financial statements.

ASU 2011-08, "Intangibles - Goodwill and Other - Testing Goodwill for Impairment." ASU 2011-08 amends Topic 350, "Intangibles – Goodwill and Other," to give entities the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit. ASU 2011-08 became effective for the Company on January 1, 2012 and did not have a significant impact on the Company's financial statements.

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Other Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Accrued interest payable	$ 588	$ 569
Other liabilities	8,294	8,184
Total	$ 8,882	$ 8,753

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Earnings/(Loss) Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net income (loss)	$ 293	$ (233)	$ (2,743)	$ (1,316)
Weighted average shares outstanding - Basic (in shares)	8,457	8,446	8,457	8,445
Dilutive effect of common stock equivalents (in shares)	0	0	0	0
Weighted average shares outstanding - Diluted (in shares)	8,457	8,446	8,457	8,445
Earnings (loss) per common share - Basic (in dollars per share)	$ 0.03	$ (0.03)	$ (0.32)	$ (0.16)
Earnings (loss) per common share - Diluted (in dollars per share)	$ 0.03	$ (0.03)	$ (0.32)	$ (0.16)

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Segment Reporting (Table)

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table includes selected financial information by business segments for the first six months of 2012 and 2011.

	Community			Insurance Products			Parent			Consolidated
(Dollars in thousands)	Banking			and Services			Company			Total
2012
Interest income	$	23,509		$	39		$	-		$	23,548
Interest expense		(5,309	)		-			(11	)		(5,320	)
Provision for credit losses		(11,895	)		-			-			(11,895	)
Noninterest income		3,706			5,395			50			9,151
Noninterest expense		(12,157	)		(4,967	)		(3,037	)		(20,161	)
Net intersegment (expense) income		(2,687	)		(257	)		2,944			-
(Loss) income before taxes		(4,833	)		210			(54	)		(4,677	)
Income tax benefit (expense)		2,001			(89	)		22			1,934
Net (loss) income	$	(2,832	)	$	121		$	(32	)	$	(2,743	)
Total assets	$	1,156,644		$	16,903		$	1,786		$	1,175,333
2011
Interest income	$	25,387		$	66		$	-		$	25,453
Interest expense		(5,628	)		-			(21	)		(5,649	)
Provision for credit losses		(11,785	)		-			-			(11,785	)
Noninterest income		3,422			5,284			70			8,776
Noninterest expense		(11,390	)		(4,743	)		(2,952	)		(19,085	)
Net intersegment (expense) income		(2,876	)		(244	)		3,120			-
(Loss) income before taxes		(2,870	)		363			217			(2,290	)
Income tax benefit (expense)		1,220			(154	)		(92	)		974
Net (loss) income	$	(1,650	)	$	209		$	125		$	(1,316	)
Total assets	$	1,102,389		$	18,933		$	2,869		$	1,124,191

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Stock-Based Compensation (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Stock-based compensation expense	$ 44	$ 68	$ 141	$ 137
Unrecognized stock-based compensation expense			$ 211	$ 368
Weighted average period unrecognized expense is expected to be recognized			2 years 4 months 0 days	1 year 1 month 0 days

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Earnings/(Loss) Per Share (Details Textual) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	57	180	37	180

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Investment Securities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Available-for-sale securities, Amortized Cost	$ 130,031	$ 127,482
Available-for-sale Securities, Gross Unrealized Gains	3,249	2,412
Available-for-sale Securities, Gross Unrealized Losses	36	114
Available-for-sale Securities, Estimated fair value	133,244	129,780
Held-to-maturity securities, Amortized Cost	5,168	6,480
Held-to-maturity securities, Estimated Fair Value	5,425	6,732
Collateralized Mortgage Backed Securities [Member]
Available-for-sale securities, Amortized Cost	95,146	85,545
Available-for-sale Securities, Gross Unrealized Gains	2,303	1,587
Available-for-sale Securities, Gross Unrealized Losses	35	99
Available-for-sale Securities, Estimated fair value	97,414	87,033
Equity Securities [Member]
Available-for-sale securities, Amortized Cost	585	577
Available-for-sale Securities, Gross Unrealized Gains	32	22
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities, Estimated fair value	617	599
US Government Corporations and Agencies Securities [Member]
Available-for-sale securities, Amortized Cost	34,300	41,360
Available-for-sale Securities, Gross Unrealized Gains	914	803
Available-for-sale Securities, Gross Unrealized Losses	1	15
Available-for-sale Securities, Estimated fair value	35,213	42,148
Us States and Political Subdivisions Debt Securities [Member]
Held-to-maturity securities, Amortized Cost	5,168	6,480
Held-to-maturity securities, Gross Unrealized Gains	257	252
Held-to-maturity securities, Gross Unrealized Losses	0	0
Held-to-maturity securities, Estimated Fair Value	$ 5,425	$ 6,732

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,743)	$ (1,316)
Adjustments to reconcile net loss to net cash provided by operating activities:
Provision for credit losses	11,895	11,785
Depreciation and amortization	1,324	1,269
Discount accretion on debt securities	(39)	(44)
Stock-based compensation expense	141	137
Excess tax expense from stock-based arrangements	(106)	(44)
Deferred income tax expense (benefit)	238	(1,306)
Gains on sales of investment securities	0	(81)
Gains on disposals of premises and equipment	(226)	(3)
Losses on sales of other real estate owned	862	235
Net changes in:
Accrued interest receivable	289	807
Other assets	(972)	(88)
Accrued interest payable	19	15
Other liabilities	110	(699)
Net cash provided by operating activities	10,792	10,667
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities and principal payments of investment securities available for sale	21,308	25,058
Proceeds from sales of investment securities available for sale	0	12,073
Purchases of investment securities available for sale	(24,238)	(44,418)
Proceeds from maturities and principal payments of investment securities held to maturity	1,305	186
Net change in loans	13,529	3,365
Purchases of premises and equipment	(1,381)	(420)
Proceeds from sales of premises and equipment	307	4
Proceeds from sales of other real estate owned	1,395	644
Net cash provided by (used in) investing activities	12,225	(3,508)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in noninterest-bearing deposits	15,671	6,601
Net change in interest-bearing deposits	7,113	(12,674)
Net change in short-term borrowings	(3,991)	2,210
Excess tax expense from stock-based arrangements	106	44
Common stock dividends paid	(85)	(591)
Net cash provided by (used in) financing activities	18,814	(4,410)
Net increase in cash and cash equivalents	41,831	2,749
Cash and cash equivalents at beginning of period	127,742	77,964
Cash and cash equivalents at end of period	169,573	80,713
Supplemental cash flows information:
Interest paid	5,302	5,635
Income taxes paid	109	1,861
Transfers from loans to other real estate owned	$ 4,371	$ 5,055

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Investment Securities (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Fair value, Less than 12 Months	$ 17,420
Unrealized Losses, Less than 12 Months	36
Fair Value, More than 12 Months	0
Unrealized Losses, More than 12 Months	0
Total Fair Value	17,420
Total Unrealized Losses	36
US Government Corporations and Agencies Securities [Member]
Fair value, Less than 12 Months	3,999
Unrealized Losses, Less than 12 Months	1
Fair Value, More than 12 Months	0
Unrealized Losses, More than 12 Months	0
Total Fair Value	3,999
Total Unrealized Losses	1
Collateralized Mortgage Backed Securities [Member]
Fair value, Less than 12 Months	13,421
Unrealized Losses, Less than 12 Months	35
Fair Value, More than 12 Months	0
Unrealized Losses, More than 12 Months	0
Total Fair Value	13,421
Total Unrealized Losses	$ 35

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Loans and allowance for credit losses (Details 5) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Allowance for credit losses
Beginning balance	$ 13,544	$ 17,471	$ 14,288	$ 14,227
Charge-offs	(4,260)	(6,948)	(13,511)	(10,274)
Recoveries	181	440	318	620
Net charge-offs	(4,079)	(6,508)	(13,193)	(9,654)
Provision	3,525	5,395	11,895	11,785
Ending balance	12,990	16,358	12,990	16,358
Unallocated Financing Receivables [Member]
Allowance for credit losses
Beginning balance	83	80	22	343
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net charge-offs	0	0	0	0
Provision	325	(5)	386	(268)
Ending balance	408	75	408	75
Commercial Loan [Member]
Allowance for credit losses
Beginning balance	1,539	2,776	1,498	1,422
Charge-offs	(1,085)	(1,525)	(4,440)	(1,771)
Recoveries	133	380	208	457
Net charge-offs	(952)	(1,145)	(4,232)	(1,314)
Provision	476	1,079	3,797	2,602
Ending balance	1,063	2,710	1,063	2,710
Consumer Loan [Member]
Allowance for credit losses
Beginning balance	581	591	594	637
Charge-offs	(162)	(40)	(177)	(115)
Recoveries	5	21	9	41
Net charge-offs	(157)	(19)	(168)	(74)
Provision	61	33	59	42
Ending balance	485	605	485	605
Residential Real Estate [Member]
Allowance for credit losses
Beginning balance	4,448	5,420	5,014	4,833
Charge-offs	(1,554)	(2,390)	(5,673)	(4,481)
Recoveries	43	34	94	68
Net charge-offs	(1,511)	(2,356)	(5,579)	(4,413)
Provision	1,300	1,120	4,802	3,764
Ending balance	4,237	4,184	4,237	4,184
Commercial Real Estate [Member]
Allowance for credit losses
Beginning balance	3,549	5,280	3,415	3,665
Charge-offs	(745)	(2,265)	(1,435)	(2,493)
Recoveries	0	5	7	5
Net charge-offs	(745)	(2,260)	(1,428)	(2,488)
Provision	1,148	2,231	1,965	4,074
Ending balance	3,952	5,251	3,952	5,251
Construction Loans [Member]
Allowance for credit losses
Beginning balance	3,344	3,324	3,745	3,327
Charge-offs	(714)	(728)	(1,786)	(1,414)
Recoveries	0	0	0	49
Net charge-offs	(714)	(728)	(1,786)	(1,365)
Provision	215	937	886	1,571
Ending balance	$ 2,845	$ 3,533	$ 2,845	$ 3,533

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Derivative Instruments and Hedging Activities (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2009	Dec. 31, 2011
Interest Rate Caps Purchased					$ 7,100,000
Derivative Cap Fixed Interest Rate					2.97%
Deposits, Money Market Deposits					70,000,000
Derivative Asset, Fair Value, Net	68,000		68,000			250,000
Interest Expense Hedged Deposits			962,000	559,000
Unrealized Holding Losses on Cash Flow Hedging Activities	421,000	(714,000)	780,000	(337,000)
Future Interest Expenses on Hedge Deposits			2,100,000
Accounts Payable, Interest-Bearing	$ 428,000		$ 428,000			$ 428,000	[1]

[1] See Note 9 for further discussion.

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and due from banks	$ 23,037	$ 22,986
Interest-bearing deposits with other banks	137,267	99,776
Federal funds sold	9,269	4,980
Investment securities:
Available for sale, at fair value	133,244	129,780
Held to maturity, at amortized cost - fair value of $5,425 (2012) and $6,732 (2011)	5,168	6,480
Loans	809,958	841,050
Less: allowance for credit losses	(12,990)	(14,288)
Loans, net	796,968	826,762
Premises and equipment, net	15,398	14,662
Goodwill	12,454	12,454
Other intangible assets, net	3,986	4,208
Other real estate and other assets owned, net	11,499	9,385
Other assets	27,043	26,720
TOTAL ASSETS	1,175,333	1,158,193
LIABILITIES
Noninterest-bearing	149,472	133,801
Interest-bearing	883,231	876,118
Total deposits	1,032,703	1,009,919
Short-term borrowings	13,826	17,817
Other liabilities	8,882	8,753
Long-term debt	455	455
TOTAL LIABILITIES	1,055,866	1,036,944
STOCKHOLDERS' EQUITY
Common stock, par value $.01 per share; shares authorized - 35,000,000; shares issued and outstanding - 8,457,359 (2012 and 2011)	85	85
Additional paid in capital	32,087	32,052
Retained earnings	87,973	90,801
Accumulated other comprehensive loss	(678)	(1,689)
TOTAL STOCKHOLDERS' EQUITY	119,467	121,249
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,175,333	$ 1,158,193

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Stock-Based Compensation (Details 1) (USD $)		6 Months Ended
	Dec. 31, 2011	Jun. 30, 2012 Restricted Stock [Member]
Number of Shares,Nonvested at beginning of period (in shares)	45,779	45,779
Number of Shares,Granted (in shares)		0
Number of Shares,Vested (in shares)		(39,231)
Number of Shares,Cancelled (in shares)		0
Number of Shares,Nonvested at end of period (in shares)	45,779	6,548
Weighted Average Grant Date Fair Value Nonvested at beginning of period (in dollars per share)	$ 13.20	$ 13.20
Weighted Average Grant Date Fair Value Granted (in dollars per share)		$ 0
Weighted Average Grant Date Fair Value Vested (in dollars per share)		$ 12.92
Weighted Average Grant Date Fair Value Cancelled (in dollars per share)		$ 0
Weighted Average Grant Date Fair Value Nonvested at end of period (in dollars per share)	$ 13.20	$ 14.89

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) In Thousands, except Share data, unless otherwise specified	Common Stock [Member]	Warrant [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balances at Dec. 31, 2010	$ 84	$ 1,543	$ 30,242	$ 92,458	$ (1,814)	$ 122,513
Comprehensive loss:
Net loss	0	0	0	(1,316)	0	(1,316)
Unrealized gains on available-for-sale securities, net of taxes	0	0	0	0	444	444
Unrealized gains (losses) on cash flow hedging activities, net of taxes	0	0	0	0	(202)	(202)
Total comprehensive loss						(1,074)
Shares issued for employee stock-based awards	1	0	(1)	0	0	0
Stock-based compensation	0	0	93	0	0	93
Cash dividends paid	0	0	0	(591)	0	(591)
Balances at Jun. 30, 2011	85	1,543	30,334	90,551	(1,572)	120,941
Balances at Dec. 31, 2011	85	0	32,052	90,801	(1,689)	121,249
Comprehensive loss:
Net loss	0	0	0	(2,743)	0	(2,743)
Unrealized gains on available-for-sale securities, net of taxes	0	0	0	0	546	546
Unrealized gains (losses) on cash flow hedging activities, net of taxes	0	0	0	0	465	465
Total comprehensive loss						(1,732)
Stock-based compensation	0	0	35	0	0	35
Cash dividends paid	0	0	0	(85)	0	(85)
Balances at Jun. 30, 2012	$ 85	$ 0	$ 32,087	$ 87,973	$ (678)	$ 119,467

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Loans and allowance for credit losses (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011
Construction	$ 111,067	$ 119,883
Residential real estate	306,093	321,604
Commercial real estate	315,644	315,439
Commercial	63,004	69,485
Consumer	14,150	14,639
Total loans	809,958	841,050
Allowance for credit losses	(12,990)	(14,288)	(16,358)
Total loans, net	$ 796,968	$ 826,762

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Loans and allowance for credit losses (Tables)

6 Months Ended

Jun. 30, 2012

Receivables [Abstract]

Schedule Of Financing Receivables [Table Text Block]

The following table provides information about the principal classes of the loan portfolio at June 30, 2012 and December 31, 2011.

(Dollars in thousands)	June 30, 2012			December 31, 2011
Construction	$	111,067		$	119,883
Residential real estate		306,093			321,604
Commercial real estate		315,644			315,439
Commercial		63,004			69,485
Consumer		14,150			14,639
Total loans		809,958			841,050
Allowance for credit losses		(12,990	)		(14,288	)
Total loans, net	$	796,968		$	826,762

Impaired Financing Receivables [Table Text Block]

The following tables provide information on impaired loans and any related allowance by loan class as of June 30, 2012 and December 31, 2011.

(Dollars in thousands)	Unpaid principal balance		Recorded investment with no allowance		Recorded investment with an allowance		Related allowance		Average recorded investment
June 30, 2012
Impaired nonaccrual loans:
Construction	$	23,220	$	14,258	$	-	$	-	$	15,214
Residential real estate		24,948		19,588		812		420		20,221
Commercial real estate		15,398		9,376		2,260		500		12,968
Commercial		2,178		1,609		-		-		1,905
Consumer		59		55		-		-		46
Total		65,803		44,886		3,072		920		50,354
Impaired accruing restructured loans:
Construction		17,078		17,078		-		-		12,704
Residential real estate		5,008		5,008		-		-		3,580
Commercial real estate		15,077		15,077		-		-		12,510
Commercial		68		68		-		-		51
Consumer		-		-		-		-		-
Total		37,231		37,231		-		-		28,845
Total impaired loans:
Construction		40,298		31,336		-		-		27,918
Residential real estate		29,956		24,596		812		420		23,801
Commercial real estate		30,475		24,453		2,260		500		25,478
Commercial		2,246		1,677		-		-		1,956
Consumer		59		55		-		-		46
Total	$	103,034	$	82,117	$	3,072	$	920	$	79,199

(Dollars in thousands)	Unpaid principal balance		Recorded investment with no allowance		Recorded investment with an allowance		Related allowance		Average recorded investment
December 31, 2011
Impaired nonaccrual loans:
Construction	$	22,883	$	14,005	$	1,550	$	170	$	16,555
Residential real estate		22,431		16,925		3,181		1,296		15,430
Commercial real estate		17,372		14,012		-		-		14,624
Commercial		2,119		1,669		-		-		2,539
Consumer		30		28		-		-		32
Total		64,835		46,639		4,731		1,466		49,180
Impaired accruing restructured loans:
Construction		11,781		11,781		-		-		10,663
Residential real estate		3,792		3,792		-		-		6,093
Commercial real estate		9,566		9,566		-		-		7,960
Commercial		69		69		-		-		111
Consumer		-		-		-		-		-
Total		25,208		25,208		-		-		24,827
Total impaired loans:
Construction		34,664		25,786		1,550		170		27,218
Residential real estate		26,223		20,717		3,181		1,296		21,523
Commercial real estate		26,938		23,578		-		-		22,584
Commercial		2,188		1,738		-		-		2,650
Consumer		30		28		-		-		32
Total	$	90,043	$	71,847	$	4,731	$	1,466	$	74,007

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following tables provide information on troubled debt restructurings by loan class as of June 30, 2012 and December 31, 2011. The amounts include nonaccrual troubled debt restructurings.

(Dollars in thousands)	Number of contracts		Premodification outstanding recorded investment		Postmodification outstanding recorded investment
Troubled debt restructurings:
June 30, 2012
Construction		14	$	21,873	$	18,366
Residential real estate		26		13,530		12,283
Commercial real estate		19		21,814		18,633
Commercial		2		125		114
Consumer		1		30		28
Total		62	$	57,372	$	42,218
December 31, 2011
Construction		9	$	12,981	$	12,539
Residential real estate		20		11,471		10,359
Commercial real estate		20		15,874		14,175
Commercial		1		69		69
Consumer		-		-		-
Total		50	$	40,395	$	37,142

(Dollars in thousands)	Number of contracts		Recorded investment
Troubled debt restructurings that subsequently defaulted:
June 30, 2012
Construction		4	$	1,288
Residential real estate		12		8,163
Commercial real estate		5		3,557
Commercial		1		46
Consumer		1		28
Total		23	$	13,082
December 31, 2011
Construction		3	$	758
Residential real estate		10		7,353
Commercial real estate		5		6,751
Commercial		-		-
Consumer		-		-
Total		18	$	14,862

Financing Receivable Credit Quality Indicators [Table Text Block]

The following tables provide information on loan risk ratings as of June 30, 2012 and December 31, 2011.

(Dollars in thousands)	Pass/Performing		Special mention		Substandard		Doubtful		Nonaccrual		Total
June 30, 2012
Construction	$	47,029	$	26,633	$	23,147	$	-	$	14,258	$	111,067
Residential real estate		249,611		17,208		18,438		436		20,400		306,093
Commercial real estate		257,072		19,447		27,489		-		11,636		315,644
Commercial		56,049		3,669		1,616		61		1,609		63,004
Consumer		13,846		185		64		-		55		14,150
Total	$	623,607	$	67,142	$	70,754	$	497	$	47,958	$	809,958

(Dollars in thousands)	Pass/Performing		Special mention		Substandard		Doubtful		Nonaccrual		Total
December 31, 2011
Construction	$	50,403	$	30,373	$	23,552	$	-	$	15,555	$	119,883
Residential real estate		261,910		13,467		25,676		445		20,106		321,604
Commercial real estate		257,247		16,001		28,179		-		14,012		315,439
Commercial		59,178		3,813		4,748		77		1,669		69,485
Consumer		14,520		32		59		-		28		14,639
Total	$	643,258	$	63,686	$	82,214	$	522	$	51,370	$	841,050

Past Due Financing Receivables [Table Text Block]

The following tables provide information on the aging of the loan portfolio as of June 30, 2012 and December 31, 2011.

	Accruing
(Dollars in thousands)	Current			30-59 days past due			60-89 days past due			90 days or more past due			Total past due			Non-accrual			Total
June 30, 2012
Construction	$	95,937		$	-		$	872		$	-		$	872		$	14,258		$	111,067
Residential real estate		279,299			4,133			1,029			1,232			6,394			20,400			306,093
Commercial real estate		297,782			2,287			1,898			2,041			6,226			11,636			315,644
Commercial		61,278			46			9			62			117			1,609			63,004
Consumer		13,837			51			23			184			258			55			14,150
Total	$	748,133		$	6,517		$	3,831		$	3,519		$	13,867		$	47,958		$	809,958
Percent of total loans		92.4	%		0.8	%		0.5	%		0.4	%		1.7	%		5.9	%

	Accruing
(Dollars in thousands)	Current			30-59 days past due			60-89 days past due			90 days or more past due			Total past due			Non-accrual			Total
December 31, 2011
Construction	$	102,441		$	1,246		$	316		$	325		$	1,887		$	15,555		$	119,883
Residential real estate		289,459			4,417			5,291			2,331			12,039			20,106			321,604
Commercial real estate		289,760			10,073			1,594			-			11,667			14,012			315,439
Commercial		64,581			1,350			1,819			66			3,235			1,669			69,485
Consumer		14,492			112			6			1			119			28			14,639
Total	$	760,733		$	17,198		$	9,026		$	2,723		$	28,947		$	51,370		$	841,050
Percent of total loans		90.5	%		2.0	%		1.1	%		0.3	%		3.4	%		6.1	%

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the three months ended June 30, 2012 and 2011.

(Dollars in thousands)	Construction			Residential real estate			Commercial real estate			Commercial			Consumer			Unallocated		Total
For the three months ended June 30, 2012
Allowance for credit losses:
Beginning balance	$	3,344		$	4,448		$	3,549		$	1,539		$	581		$	83	$	13,544
Charge-offs		(714	)		(1,554	)		(745	)		(1,085	)		(162	)		-		(4,260	)
Recoveries		-			43			-			133			5			-		181
Net charge-offs		(714	)		(1,511	)		(745	)		(952	)		(157	)		-		(4,079	)
Provision		215			1,300			1,148			476			61			325		3,525
Ending balance	$	2,845		$	4,237		$	3,952		$	1,063		$	485		$	408	$	12,990

(Dollars in thousands)	Construction			Residential real estate			Commercial real estate			Commercial			Consumer			Unallocated			Total
For the three months ended June 30, 2011
Allowance for credit losses:
Beginning balance	$	3,324		$	5,420		$	5,280		$	2,776		$	591		$	80		$	17,471
Charge-offs		(728	)		(2,390	)		(2,265	)		(1,525	)		(40	)		-			(6,948	)
Recoveries		-			34			5			380			21			-			440
Net charge-offs		(728	)		(2,356	)		(2,260	)		(1,145	)		(19	)		-			(6,508	)
Provision		937			1,120			2,231			1,079			33			(5	)		5,395
Ending balance	$	3,533		$	4,184		$	5,251		$	2,710		$	605		$	75		$	16,358

The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the six months ended June 30, 2012 and 2011.

(Dollars in thousands)	Construction			Residential real estate			Commercial real estate			Commercial			Consumer			Unallocated		Total
For the six months ended June 30, 2012
Allowance for credit losses:
Beginning balance	$	3,745		$	5,014		$	3,415		$	1,498		$	594		$	22	$	14,288
Charge-offs		(1,786	)		(5,673	)		(1,435	)		(4,440	)		(177	)		-		(13,511	)
Recoveries		-			94			7			208			9			-		318
Net charge-offs		(1,786	)		(5,579	)		(1,428	)		(4,232	)		(168	)		-		(13,193	)
Provision		886			4,802			1,965			3,797			59			386		11,895
Ending balance	$	2,845		$	4,237		$	3,952		$	1,063		$	485		$	408	$	12,990

(Dollars in thousands)	Construction			Residential real estate			Commercial real estate			Commercial			Consumer			Unallocated			Total
For the six months ended June 30, 2011
Allowance for credit losses:
Beginning balance	$	3,327		$	4,833		$	3,665		$	1,422		$	637		$	343		$	14,227
Charge-offs		(1,414	)		(4,481	)		(2,493	)		(1,771	)		(115	)		-			(10,274	)
Recoveries		49			68			5			457			41			-			620
Net charge-offs		(1,365	)		(4,413	)		(2,488	)		(1,314	)		(74	)		-			(9,654	)
Provision		1,571			3,764			4,074			2,602			42			(268	)		11,785
Ending balance	$	3,533		$	4,184		$	5,251		$	2,710		$	605		$	75		$	16,358

Allowance for Credit Losses On Loans Receivables Additional Information [Table Text Block]

The following tables include impairment information relating to loans and the allowance for credit losses as of June 30, 2012 and 2011.

(Dollars in thousands)	Construction		Residential real estate		Commercial real estate		Commercial		Consumer		Unallocated		Total
June 30, 2012
Loans individually evaluated for impairment	$	31,336	$	25,408	$	26,713	$	1,677	$	55	$	-	$	85,189
Loans collectively evaluated for impairment		79,731		280,685		288,931		61,327		14,095		-		724,769
Total loans	$	111,067	$	306,093	$	315,644	$	63,004	$	14,150	$	-	$	809,958
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	-	$	420	$	500	$	-	$	-	$	-	$	920
Loans collectively evaluated for impairment		2,845		3,817		3,452		1,063		485		408		12,070
Total allowance for credit losses	$	2,845	$	4,237	$	3,952	$	1,063	$	485	$	408	$	12,990

(Dollars in thousands)	Construction		Residential real estate		Commercial real estate		Commercial		Consumer		Unallocated		Total
June 30, 2011
Loans individually evaluated for impairment	$	18,129	$	12,187	$	15,141	$	2,990	$	29	$	-	$	48,476
Loans collectively evaluated for impairment		110,011		319,947		312,166		71,495		15,236		-		828,855
Total loans	$	128,140	$	332,134	$	327,307	$	74,485	$	15,265	$	-	$	877,331
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	-	$	289	$	506	$	567	$	-	$	-	$	1,362
Loans collectively evaluated for impairment		3,533		3,895		4,745		2,143		605		75		14,996
Total allowance for credit losses	$	3,533	$	4,184	$	5,251	$	2,710	$	605	$	75	$	16,358

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Loans and allowance for credit losses (Details 1) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Unpaid principal balance	$ 103,034	$ 90,043
Recorded investment with no allowance	82,117	71,847
Recorded investment with an allowance	3,072	4,731
Related allowance	920	1,466
Average recorded investment	79,199	74,007
Commercial Loan [Member]
Unpaid principal balance	2,246	2,188
Recorded investment with no allowance	1,677	1,738
Recorded investment with an allowance	0	0
Related allowance	0	0
Average recorded investment	1,956	2,650
Consumer Loan [Member]
Unpaid principal balance	59	30
Recorded investment with no allowance	55	28
Recorded investment with an allowance	0	0
Related allowance	0	0
Average recorded investment	46	32
Residential Real Estate [Member]
Unpaid principal balance	29,956	26,223
Recorded investment with no allowance	24,596	20,717
Recorded investment with an allowance	812	3,181
Related allowance	420	1,296
Average recorded investment	23,801	21,523
Commercial Real Estate [Member]
Unpaid principal balance	30,475	26,938
Recorded investment with no allowance	24,453	23,578
Recorded investment with an allowance	2,260	0
Related allowance	500	0
Average recorded investment	25,478	22,584
Construction Loans [Member]
Unpaid principal balance	40,298	34,664
Recorded investment with no allowance	31,336	25,786
Recorded investment with an allowance	0	1,550
Related allowance	0	170
Average recorded investment	27,918	27,218
Impaired Nonaccrual Loans [Member]
Unpaid principal balance	65,803	64,835
Recorded investment with no allowance	44,886	46,639
Recorded investment with an allowance	3,072	4,731
Related allowance	920	1,466
Average recorded investment	50,354	49,180
Impaired Nonaccrual Loans [Member] | Commercial Loan [Member]
Unpaid principal balance	2,178	2,119
Recorded investment with no allowance	1,609	1,669
Recorded investment with an allowance	0	0
Related allowance	0	0
Average recorded investment	1,905	2,539
Impaired Nonaccrual Loans [Member] | Consumer Loan [Member]
Unpaid principal balance	59	30
Recorded investment with no allowance	55	28
Recorded investment with an allowance	0	0
Related allowance	0	0
Average recorded investment	46	32
Impaired Nonaccrual Loans [Member] | Residential Real Estate [Member]
Unpaid principal balance	24,948	22,431
Recorded investment with no allowance	19,588	16,925
Recorded investment with an allowance	812	3,181
Related allowance	420	1,296
Average recorded investment	20,221	15,430
Impaired Nonaccrual Loans [Member] | Commercial Real Estate [Member]
Unpaid principal balance	15,398	17,372
Recorded investment with no allowance	9,376	14,012
Recorded investment with an allowance	2,260	0
Related allowance	500	0
Average recorded investment	12,968	14,624
Impaired Nonaccrual Loans [Member] | Construction Loans [Member]
Unpaid principal balance	23,220	22,883
Recorded investment with no allowance	14,258	14,005
Recorded investment with an allowance	0	1,550
Related allowance	0	170
Average recorded investment	15,214	16,555
Impaired Accruing Restructured Loans [Member]
Unpaid principal balance	37,231	25,208
Recorded investment with no allowance	37,231	25,208
Recorded investment with an allowance	0	0
Related allowance	0	0
Average recorded investment	28,845	24,827
Impaired Accruing Restructured Loans [Member] | Commercial Loan [Member]
Unpaid principal balance	68	69
Recorded investment with no allowance	68	69
Recorded investment with an allowance	0	0
Related allowance	0	0
Average recorded investment	51	111
Impaired Accruing Restructured Loans [Member] | Consumer Loan [Member]
Unpaid principal balance	0	0
Recorded investment with no allowance	0	0
Recorded investment with an allowance	0	0
Related allowance	0	0
Average recorded investment	0	0
Impaired Accruing Restructured Loans [Member] | Residential Real Estate [Member]
Unpaid principal balance	5,008	3,792
Recorded investment with no allowance	5,008	3,792
Recorded investment with an allowance	0	0
Related allowance	0	0
Average recorded investment	3,580	6,093
Impaired Accruing Restructured Loans [Member] | Commercial Real Estate [Member]
Unpaid principal balance	15,077	9,566
Recorded investment with no allowance	15,077	9,566
Recorded investment with an allowance	0	0
Related allowance	0	0
Average recorded investment	12,510	7,960
Impaired Accruing Restructured Loans [Member] | Construction Loans [Member]
Unpaid principal balance	17,078	11,781
Recorded investment with no allowance	17,078	11,781
Recorded investment with an allowance	0	0
Related allowance	0	0
Average recorded investment	$ 12,704	$ 10,663

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Other Liabilities (Table)

6 Months Ended

Jun. 30, 2012

Other Liabilities Disclosure [Abstract]

Schedule of Other Liabilities [Table Text Block]

The Company had the following other liabilities at June 30, 2012 and December 31, 2011.

(Dollars in thousands)	June 30, 2012		December 31, 2011
Accrued interest payable	$	588	$	569
Other liabilities		8,294		8,184
Total	$	8,882	$	8,753

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Parenthetical] (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Dividends paid per common share (in dollars per share)	$ 0	$ 0.01	$ 0.01	$ 0.07

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CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Securities held to maturity, estimated fair value (in dollars)	$ 5,425	$ 6,732
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	35,000,000	35,000,000
Common stock, shares issued	8,457,359	8,457,359
Common stock, shares outstanding	8,457,359	8,457,359

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Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 9 – Derivative Instruments and Hedging Activities

Accounting guidance under GAAP defines derivatives, requires that derivatives be carried at fair value on the balance sheet and provides for hedge accounting when certain conditions are met. Changes in the fair values of derivative instruments designated as “cash flow” hedges, to the extent the hedges are highly effective, are recorded in other comprehensive income, net of taxes. Ineffective portions of cash flow hedges, if any, are recognized in current period earnings. The net interest settlement on cash flow hedges is treated as an adjustment of the interest income or interest expense of the hedged assets or liabilities. The Company uses derivative instruments to hedge its exposure to changes in interest rates. The Company does not use derivatives for any trading or other speculative purposes.

During the second quarter of 2009, as part of its overall interest rate risk management strategy, the Company purchased interest rate caps for $7.1 million to effectively fix the interest rate at 2.97% for five years on $70 million of the Company’s money market deposit accounts. The interest rate caps qualified for hedge accounting. The aggregate fair value of these derivatives was an asset of $68 thousand at June 30, 2012 and $250 thousand at December 31, 2011. The change in fair value included a $780 thousand adjustment to record unrealized holding gains on the interest rate caps and a $962 thousand charge to interest expense associated with the hedged money market deposit accounts. For the first six months of 2011, the change in fair value included a $337 thousand adjustment to record unrealized holding losses and a $559 thousand charge to interest expense. The Company expects that the charge to interest expense associated with the hedged deposits over the next 12 months will be approximately $2.1 million.

By entering into derivative instrument contracts, the Company exposes itself, from time to time, to counterparty credit risk. Counterparty credit risk is the risk that the counterparty will fail to perform under the terms of the derivative contract. When the fair value of a derivative contract is in an asset position, the counterparty has a liability to the Company, which creates credit risk for the Company. The Company attempts to minimize this risk by selecting counterparties with investment grade credit ratings, limiting its exposure to any single counterparty and regularly monitoring its market position with each counterparty. Collateral required by the counterparties, recorded in other liabilities, was $428 thousand at both June 30, 2012 and December 31, 2011.

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DOCUMENT AND ENTITY INFORMATION	6 Months Ended
	Jun. 30, 2012	Jul. 31, 2012
Entity Registrant Name	SHORE BANCSHARES INC
Entity Central Index Key	0001035092
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	shbi
Entity Common Stock, Shares Outstanding		8,457,359
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2012

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Financial Instruments with Off-Balance Sheet Risk

6 Months Ended

Jun. 30, 2012

Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract]

Financial Instruments With Off Balance Sheet Risk Disclosure [Text Block]

Note 10 – Financial Instruments with Off-Balance Sheet Risk

In the normal course of business, to meet the financial needs of its customers, the Company’s bank subsidiaries enter into financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Letters of credit and other commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the letters of credit and commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

The following table provides information on commitments outstanding at June 30, 2012 and December 31, 2011.

(Dollars in thousands)	June 30, 2012		December 31, 2011
Commitments to extend credit	$	143,223	$	136,222
Letters of credit		11,461		11,311
Total	$	154,684	$	147,533

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
INTEREST INCOME
Interest and fees on loans	$ 10,890	$ 11,896	$ 21,901	$ 23,897
Interest and dividends on investment securities:
Taxable	707	782	1,464	1,439
Tax-exempt	32	40	70	78
Interest on federal funds sold	2	5	4	21
Interest on deposits with other banks	61	12	109	18
Total interest income	11,692	12,735	23,548	25,453
INTEREST EXPENSE
Interest on deposits	2,643	2,769	5,284	5,602
Interest on short-term borrowings	11	13	26	26
Interest on long-term debt	5	11	10	21
Total interest expense	2,659	2,793	5,320	5,649
NET INTEREST INCOME	9,033	9,942	18,228	19,804
Provision for credit losses	3,525	5,395	11,895	11,785
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	5,508	4,547	6,333	8,019
NONINTEREST INCOME
Service charges on deposit accounts	622	744	1,270	1,448
Trust and investment fee income	446	418	869	794
Gains on sales of investment securities	0	2	0	81
Insurance agency commissions	2,406	2,475	5,095	4,985
Other noninterest income	1,103	742	1,917	1,468
Total noninterest income	4,577	4,381	9,151	8,776
NONINTEREST EXPENSE
Salaries and wages	4,376	4,104	8,792	8,350
Employee benefits	956	886	2,126	2,039
Occupancy expense	638	568	1,325	1,164
Furniture and equipment expense	212	291	463	563
Data processing	694	680	1,360	1,531
Directors' fees	127	112	236	219
Amortization of other intangible assets	96	128	222	257
Insurance agency commissions expense	344	357	729	732
FDIC insurance premium expense	344	404	617	864
Other noninterest expenses	1,876	1,664	4,291	3,366
Total noninterest expense	9,663	9,194	20,161	19,085
INCOME (LOSS) BEFORE INCOME TAXES	422	(266)	(4,677)	(2,290)
Income tax expense (benefit)	129	(33)	(1,934)	(974)
NET INCOME (LOSS)	$ 293	$ (233)	$ (2,743)	$ (1,316)
Basic net income (loss) per common share (in dollars per share)	$ 0.03	$ (0.03)	$ (0.32)	$ (0.16)
Diluted net income (loss) per common share (in dollars per share)	$ 0.03	$ (0.03)	$ (0.32)	$ (0.16)
Dividends paid per common share (in dollars per share)	$ 0	$ 0.01	$ 0.01	$ 0.07

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Loans and allowance for credit losses

6 Months Ended

Jun. 30, 2012

Receivables [Abstract]

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

Note 4 – Loans and allowance for credit losses

The Company makes residential mortgage, commercial and consumer loans to customers primarily in Talbot County, Queen Anne’s County, Kent County, Caroline County and Dorchester County in Maryland and in Kent County, Delaware. The following table provides information about the principal classes of the loan portfolio at June 30, 2012 and December 31, 2011.

(Dollars in thousands)	June 30, 2012			December 31, 2011
Construction	$	111,067		$	119,883
Residential real estate		306,093			321,604
Commercial real estate		315,644			315,439
Commercial		63,004			69,485
Consumer		14,150			14,639
Total loans		809,958			841,050
Allowance for credit losses		(12,990	)		(14,288	)
Total loans, net	$	796,968		$	826,762

Loans are stated at their principal amount outstanding net of any deferred fees and costs. Interest income on loans is accrued at the contractual rate based on the principal amount outstanding. Fees charged and costs capitalized for originating loans are being amortized substantially on the interest method over the term of the loan. A loan is placed on nonaccrual when it is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more, unless the loan is well secured and in the process of collection. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on nonaccrual loans are applied as a reduction of the loan principal balance unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured.

A loan is considered impaired if it is probable that the Company will not collect all principal and interest payments according to the loan’s contractual terms. An impaired loan may show deficiencies in the borrower’s overall financial condition, payment history, support available from financial guarantors and/or the fair market value of collateral. The impairment of a loan is measured at the present value of expected future cash flows using the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Generally, the Company measures impairment on such loans by reference to the fair value of the collateral. Income on impaired loans is recognized on a cash basis, and payments are first applied against the principal balance outstanding (i.e., placing impaired loans on nonaccrual status). Generally, interest income is not recognized on specific impaired loans unless the likelihood of further loss is remote. The allowance for credit losses includes specific reserves related to impaired loans. Impaired loans do not include groups of smaller balance homogenous loans such as residential mortgage and consumer installment loans that are evaluated collectively for impairment. Reserves for probable credit losses related to these loans are based on historical loss ratios and are included in the formula portion of the allowance for credit losses.

Loans are evaluated on a case-by-case basis for impairment. Once the amount of impairment has been determined, the uncollectible portion is charged off. As seen in the table below, the difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken. In some cases, a specific allocation within the allowance for credit losses is made until such time that a charge-off is made.

A loan is considered a troubled debt restructuring if a borrower is experiencing financial difficulties and a creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses.

The following tables provide information on impaired loans and any related allowance by loan class as of June 30, 2012 and December 31, 2011.

(Dollars in thousands)	Unpaid principal balance		Recorded investment with no allowance		Recorded investment with an allowance		Related allowance		Average recorded investment
June 30, 2012
Impaired nonaccrual loans:
Construction	$	23,220	$	14,258	$	-	$	-	$	15,214
Residential real estate		24,948		19,588		812		420		20,221
Commercial real estate		15,398		9,376		2,260		500		12,968
Commercial		2,178		1,609		-		-		1,905
Consumer		59		55		-		-		46
Total		65,803		44,886		3,072		920		50,354
Impaired accruing restructured loans:
Construction		17,078		17,078		-		-		12,704
Residential real estate		5,008		5,008		-		-		3,580
Commercial real estate		15,077		15,077		-		-		12,510
Commercial		68		68		-		-		51
Consumer		-		-		-		-		-
Total		37,231		37,231		-		-		28,845
Total impaired loans:
Construction		40,298		31,336		-		-		27,918
Residential real estate		29,956		24,596		812		420		23,801
Commercial real estate		30,475		24,453		2,260		500		25,478
Commercial		2,246		1,677		-		-		1,956
Consumer		59		55		-		-		46
Total	$	103,034	$	82,117	$	3,072	$	920	$	79,199

(Dollars in thousands)	Unpaid principal balance		Recorded investment with no allowance		Recorded investment with an allowance		Related allowance		Average recorded investment
December 31, 2011
Impaired nonaccrual loans:
Construction	$	22,883	$	14,005	$	1,550	$	170	$	16,555
Residential real estate		22,431		16,925		3,181		1,296		15,430
Commercial real estate		17,372		14,012		-		-		14,624
Commercial		2,119		1,669		-		-		2,539
Consumer		30		28		-		-		32
Total		64,835		46,639		4,731		1,466		49,180
Impaired accruing restructured loans:
Construction		11,781		11,781		-		-		10,663
Residential real estate		3,792		3,792		-		-		6,093
Commercial real estate		9,566		9,566		-		-		7,960
Commercial		69		69		-		-		111
Consumer		-		-		-		-		-
Total		25,208		25,208		-		-		24,827
Total impaired loans:
Construction		34,664		25,786		1,550		170		27,218
Residential real estate		26,223		20,717		3,181		1,296		21,523
Commercial real estate		26,938		23,578		-		-		22,584
Commercial		2,188		1,738		-		-		2,650
Consumer		30		28		-		-		32
Total	$	90,043	$	71,847	$	4,731	$	1,466	$	74,007

The following tables provide information on troubled debt restructurings by loan class as of June 30, 2012 and December 31, 2011. The amounts include nonaccrual troubled debt restructurings.

(Dollars in thousands)	Number of contracts		Premodification outstanding recorded investment		Postmodification outstanding recorded investment
Troubled debt restructurings:
June 30, 2012
Construction		14	$	21,873	$	18,366
Residential real estate		26		13,530		12,283
Commercial real estate		19		21,814		18,633
Commercial		2		125		114
Consumer		1		30		28
Total		62	$	57,372	$	42,218
December 31, 2011
Construction		9	$	12,981	$	12,539
Residential real estate		20		11,471		10,359
Commercial real estate		20		15,874		14,175
Commercial		1		69		69
Consumer		-		-		-
Total		50	$	40,395	$	37,142

(Dollars in thousands)	Number of contracts		Recorded investment
Troubled debt restructurings that subsequently defaulted:
June 30, 2012
Construction		4	$	1,288
Residential real estate		12		8,163
Commercial real estate		5		3,557
Commercial		1		46
Consumer		1		28
Total		23	$	13,082
December 31, 2011
Construction		3	$	758
Residential real estate		10		7,353
Commercial real estate		5		6,751
Commercial		-		-
Consumer		-		-
Total		18	$	14,862

Management uses risk ratings as part of its monitoring of the credit quality in the Company’s loan portfolio. Loans that are identified as special mention, substandard and doubtful are adversely rated and are assigned higher risk ratings than favorably rated loans.

The following tables provide information on loan risk ratings as of June 30, 2012 and December 31, 2011.

(Dollars in thousands)	Pass/Performing		Special mention		Substandard		Doubtful		Nonaccrual		Total
June 30, 2012
Construction	$	47,029	$	26,633	$	23,147	$	-	$	14,258	$	111,067
Residential real estate		249,611		17,208		18,438		436		20,400		306,093
Commercial real estate		257,072		19,447		27,489		-		11,636		315,644
Commercial		56,049		3,669		1,616		61		1,609		63,004
Consumer		13,846		185		64		-		55		14,150
Total	$	623,607	$	67,142	$	70,754	$	497	$	47,958	$	809,958

(Dollars in thousands)	Pass/Performing		Special mention		Substandard		Doubtful		Nonaccrual		Total
December 31, 2011
Construction	$	50,403	$	30,373	$	23,552	$	-	$	15,555	$	119,883
Residential real estate		261,910		13,467		25,676		445		20,106		321,604
Commercial real estate		257,247		16,001		28,179		-		14,012		315,439
Commercial		59,178		3,813		4,748		77		1,669		69,485
Consumer		14,520		32		59		-		28		14,639
Total	$	643,258	$	63,686	$	82,214	$	522	$	51,370	$	841,050

The following tables provide information on the aging of the loan portfolio as of June 30, 2012 and December 31, 2011.

	Accruing
(Dollars in thousands)	Current			30-59 days past due			60-89 days past due			90 days or more past due			Total past due			Non-accrual			Total
June 30, 2012
Construction	$	95,937		$	-		$	872		$	-		$	872		$	14,258		$	111,067
Residential real estate		279,299			4,133			1,029			1,232			6,394			20,400			306,093
Commercial real estate		297,782			2,287			1,898			2,041			6,226			11,636			315,644
Commercial		61,278			46			9			62			117			1,609			63,004
Consumer		13,837			51			23			184			258			55			14,150
Total	$	748,133		$	6,517		$	3,831		$	3,519		$	13,867		$	47,958		$	809,958
Percent of total loans		92.4	%		0.8	%		0.5	%		0.4	%		1.7	%		5.9	%

	Accruing
(Dollars in thousands)	Current			30-59 days past due			60-89 days past due			90 days or more past due			Total past due			Non-accrual			Total
December 31, 2011
Construction	$	102,441		$	1,246		$	316		$	325		$	1,887		$	15,555		$	119,883
Residential real estate		289,459			4,417			5,291			2,331			12,039			20,106			321,604
Commercial real estate		289,760			10,073			1,594			-			11,667			14,012			315,439
Commercial		64,581			1,350			1,819			66			3,235			1,669			69,485
Consumer		14,492			112			6			1			119			28			14,639
Total	$	760,733		$	17,198		$	9,026		$	2,723		$	28,947		$	51,370		$	841,050
Percent of total loans		90.5	%		2.0	%		1.1	%		0.3	%		3.4	%		6.1	%

The Company has established an allowance for credit losses, which is increased by provisions charged against earnings and recoveries of previously charged-off debts and is decreased by current period charge-offs of uncollectible debts. Management evaluates the adequacy of the allowance for credit losses on a quarterly basis and adjusts the provision for credit losses based on this analysis. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes.

The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the three months ended June 30, 2012 and 2011.

(Dollars in thousands)	Construction			Residential real estate			Commercial real estate			Commercial			Consumer			Unallocated		Total
For the three months ended June 30, 2012
Allowance for credit losses:
Beginning balance	$	3,344		$	4,448		$	3,549		$	1,539		$	581		$	83	$	13,544
Charge-offs		(714	)		(1,554	)		(745	)		(1,085	)		(162	)		-		(4,260	)
Recoveries		-			43			-			133			5			-		181
Net charge-offs		(714	)		(1,511	)		(745	)		(952	)		(157	)		-		(4,079	)
Provision		215			1,300			1,148			476			61			325		3,525
Ending balance	$	2,845		$	4,237		$	3,952		$	1,063		$	485		$	408	$	12,990

(Dollars in thousands)	Construction			Residential real estate			Commercial real estate			Commercial			Consumer			Unallocated			Total
For the three months ended June 30, 2011
Allowance for credit losses:
Beginning balance	$	3,324		$	5,420		$	5,280		$	2,776		$	591		$	80		$	17,471
Charge-offs		(728	)		(2,390	)		(2,265	)		(1,525	)		(40	)		-			(6,948	)
Recoveries		-			34			5			380			21			-			440
Net charge-offs		(728	)		(2,356	)		(2,260	)		(1,145	)		(19	)		-			(6,508	)
Provision		937			1,120			2,231			1,079			33			(5	)		5,395
Ending balance	$	3,533		$	4,184		$	5,251		$	2,710		$	605		$	75		$	16,358

The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the six months ended June 30, 2012 and 2011.

(Dollars in thousands)	Construction			Residential real estate			Commercial real estate			Commercial			Consumer			Unallocated		Total
For the six months ended June 30, 2012
Allowance for credit losses:
Beginning balance	$	3,745		$	5,014		$	3,415		$	1,498		$	594		$	22	$	14,288
Charge-offs		(1,786	)		(5,673	)		(1,435	)		(4,440	)		(177	)		-		(13,511	)
Recoveries		-			94			7			208			9			-		318
Net charge-offs		(1,786	)		(5,579	)		(1,428	)		(4,232	)		(168	)		-		(13,193	)
Provision		886			4,802			1,965			3,797			59			386		11,895
Ending balance	$	2,845		$	4,237		$	3,952		$	1,063		$	485		$	408	$	12,990

(Dollars in thousands)	Construction			Residential real estate			Commercial real estate			Commercial			Consumer			Unallocated			Total
For the six months ended June 30, 2011
Allowance for credit losses:
Beginning balance	$	3,327		$	4,833		$	3,665		$	1,422		$	637		$	343		$	14,227
Charge-offs		(1,414	)		(4,481	)		(2,493	)		(1,771	)		(115	)		-			(10,274	)
Recoveries		49			68			5			457			41			-			620
Net charge-offs		(1,365	)		(4,413	)		(2,488	)		(1,314	)		(74	)		-			(9,654	)
Provision		1,571			3,764			4,074			2,602			42			(268	)		11,785
Ending balance	$	3,533		$	4,184		$	5,251		$	2,710		$	605		$	75		$	16,358

The following tables include impairment information relating to loans and the allowance for credit losses as of June 30, 2012 and 2011.

(Dollars in thousands)	Construction		Residential real estate		Commercial real estate		Commercial		Consumer		Unallocated		Total
June 30, 2012
Loans individually evaluated for impairment	$	31,336	$	25,408	$	26,713	$	1,677	$	55	$	-	$	85,189
Loans collectively evaluated for impairment		79,731		280,685		288,931		61,327		14,095		-		724,769
Total loans	$	111,067	$	306,093	$	315,644	$	63,004	$	14,150	$	-	$	809,958
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	-	$	420	$	500	$	-	$	-	$	-	$	920
Loans collectively evaluated for impairment		2,845		3,817		3,452		1,063		485		408		12,070
Total allowance for credit losses	$	2,845	$	4,237	$	3,952	$	1,063	$	485	$	408	$	12,990

(Dollars in thousands)	Construction		Residential real estate		Commercial real estate		Commercial		Consumer		Unallocated		Total
June 30, 2011
Loans individually evaluated for impairment	$	18,129	$	12,187	$	15,141	$	2,990	$	29	$	-	$	48,476
Loans collectively evaluated for impairment		110,011		319,947		312,166		71,495		15,236		-		828,855
Total loans	$	128,140	$	332,134	$	327,307	$	74,485	$	15,265	$	-	$	877,331
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	$	-	$	289	$	506	$	567	$	-	$	-	$	1,362
Loans collectively evaluated for impairment		3,533		3,895		4,745		2,143		605		75		14,996
Total allowance for credit losses	$	3,533	$	4,184	$	5,251	$	2,710	$	605	$	75	$	16,358

XML

Investment Securities

6 Months Ended

Jun. 30, 2012

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3 – Investment Securities

The following table provides information on the amortized cost and estimated fair values of investment securities.

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Available-for-sale securities:
June 30, 2012:
Obligations of U.S. Government agencies and corporations	$	34,300	$	914	$	1	$	35,213
Mortgage-backed securities		95,146		2,303		35		97,414
Equity securities		585		32		-		617
Total	$	130,031	$	3,249	$	36	$	133,244
December 31, 2011:
Obligations of U.S. Government agencies and corporations	$	41,360	$	803	$	15	$	42,148
Mortgage-backed securities		85,545		1,587		99		87,033
Equity securities		577		22		-		599
Total	$	127,482	$	2,412	$	114	$	129,780
Held-to-maturity securities:
June 30, 2012:
Obligations of states and political subdivisions	$	5,168	$	257	$	-	$	5,425
December 31, 2011:
Obligations of states and political subdivisions	$	6,480	$	252	$	-	$	6,732

The following table provides information about gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position at June 30, 2012.

	Less than 12 Months				More than 12 Months				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-sale securities:
U.S. Gov’t. agencies and corporations	$	3,999	$	1	$	-	$	-	$	3,999	$	1
Mortgage-backed securities		13,421		35		-		-		13,421		35
Total	$	17,420	$	36	$	-	$	-	$	17,420	$	36

Total available-for-sale securities have a fair value of approximately $133.2 million. Of these securities, approximately $17.4 million have unrealized losses when compared to their amortized cost. All of the securities with the unrealized losses in the available-for-sale portfolio have modest duration risk, low credit risk, and minimal losses (approximately 0.03%) when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since original purchase. Because the Company does not intend to sell these debt securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity, the Company considers the unrealized losses in the available-for-sale portfolio to be temporary. There were no unrealized losses in the held-to-maturity securities portfolio at June 30, 2012.

The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at June 30, 2012.

	Available for sale				Held to maturity
	Amortized		Estimated		Amortized		Estimated
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	8,012	$	8,047	$	1,976	$	1,989
Due after one year through five years		14,238		14,284		1,680		1,748
Due after five years through ten years		4,995		5,157		502		575
Due after ten years		102,201		105,139		1,010		1,113
		129,446		132,627		5,168		5,425
Equity securities		585		617		-		-
Total	$	130,031	$	133,244	$	5,168	$	5,425

The maturity dates for debt securities are determined using contractual maturity dates.

XML

Other Assets (Table)

6 Months Ended

Jun. 30, 2012

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets [Table Text Block]

The Company had the following other assets at June 30, 2012 and December 31, 2011.

(Dollars in thousands)	June 30, 2012		December 31, 2011
Nonmarketable investment securities	$	2,874	$	2,866
Insurance premiums receivable		563		876
Accrued interest receivable		3,644		3,933
Income taxes receivable		2,711		719
Deferred income taxes		8,113		9,036
Interest rate caps (1)		68		250
Prepaid expenses		3,060		3,641
Other assets		6,010		5,399
Total	$	27,043	$	26,720

(1) See Note 9 for further discussion.

XML

Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 11 – Segment Reporting

The Company operates two primary business segments: Community Banking and Insurance Products and Services. Through the Community Banking business, the Company provides services to consumers and small businesses on the Eastern Shore of Maryland and Delaware through its 18-branch network. Community banking activities include small business services, retail brokerage, trust services and consumer banking products and services. Loan products available to consumers include mortgage, home equity, automobile, marine, and installment loans, credit cards and other secured and unsecured personal lines of credit. Small business lending includes commercial mortgages, real estate development loans, equipment and operating loans, as well as secured and unsecured lines of credit, credit cards, accounts receivable financing arrangements, and merchant card services.

Through the Insurance Products and Services business, the Company provides a full range of insurance products and services to businesses and consumers in the Company’s market areas. Products include property and casualty, life, marine, individual health and long-term care insurance. Pension and profit sharing plans and retirement plans for executives and employees are available to suit the needs of individual businesses.

The following table includes selected financial information by business segments for the first six months of 2012 and 2011.

	Community			Insurance Products			Parent			Consolidated
(Dollars in thousands)	Banking			and Services			Company			Total
2012
Interest income	$	23,509		$	39		$	-		$	23,548
Interest expense		(5,309	)		-			(11	)		(5,320	)
Provision for credit losses		(11,895	)		-			-			(11,895	)
Noninterest income		3,706			5,395			50			9,151
Noninterest expense		(12,157	)		(4,967	)		(3,037	)		(20,161	)
Net intersegment (expense) income		(2,687	)		(257	)		2,944			-
(Loss) income before taxes		(4,833	)		210			(54	)		(4,677	)
Income tax benefit (expense)		2,001			(89	)		22			1,934
Net (loss) income	$	(2,832	)	$	121		$	(32	)	$	(2,743	)
Total assets	$	1,156,644		$	16,903		$	1,786		$	1,175,333
2011
Interest income	$	25,387		$	66		$	-		$	25,453
Interest expense		(5,628	)		-			(21	)		(5,649	)
Provision for credit losses		(11,785	)		-			-			(11,785	)
Noninterest income		3,422			5,284			70			8,776
Noninterest expense		(11,390	)		(4,743	)		(2,952	)		(19,085	)
Net intersegment (expense) income		(2,876	)		(244	)		3,120			-
(Loss) income before taxes		(2,870	)		363			217			(2,290	)
Income tax benefit (expense)		1,220			(154	)		(92	)		974
Net (loss) income	$	(1,650	)	$	209		$	125		$	(1,316	)
Total assets	$	1,102,389		$	18,933		$	2,869		$	1,124,191

XML

Stock-Based Compensation

6 Months Ended

Jun. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 7 - Stock-Based Compensation

As of June 30, 2012, the Company maintained the Shore Bancshares, Inc. 2006 Stock and Incentive Compensation Plan (“2006 Equity Plan”) under which it may issue shares of common stock or grant other equity-based awards. The Company’s ability to grant options under the Shore Bancshares, Inc. 1998 Stock Option Plan (the “1998 Option Plan”) expired on March 3, 2008 and all of the remaining 7,125 outstanding options expired on May 9, 2012.

Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date over a three- to five-year period of time, and, in the case of stock options, expire 10 years from the grant date. Stock-based compensation expense is recognized ratably over the requisite service period for all awards, is based on the grant-date fair value and reflects forfeitures as they occur.

During the first quarter of 2012, the Company granted options to purchase 54,216 shares of the Company’s common stock pursuant to the 2006 Equity Plan. The options have an exercise price of $6.64 and vest 50% after two years from date of grant and 50% after three years from date of grant.

The following tables provide information on stock-based compensation expense for the first three and six months of 2012 and 2011.

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2012		2011		2012		2011
Stock-based compensation expense	$	44	$	68	$	141	$	137

	June 30,
(Dollars in thousands)	2012		2011
Unrecognized stock-based compensation expense	$	211	$	368
Weighted average period unrecognized expense is expected to be recognized		2.3 years		1.1 years

The following table summarizes restricted stock award activity for the Company under the 2006 Equity Plan for the six months ended June 30, 2012.

	Number			Weighted Average Grant
	of Shares			Date Fair Value
Nonvested at beginning of period		45,779		$	13.20
Granted		-			-
Vested		(39,231	)		12.92
Cancelled		-			-
Nonvested at end of period		6,548		$	14.89

The following table summarizes stock option activity for the Company under the 2006 Equity Plan for the six months ended June 30, 2012.

			Weighted		Aggregate		Weighted Average
	Number		Average		Intrinsic		Grant Date
	of Shares		Exercise Price		Value		Fair Value
Outstanding at beginning of period		-	$	-			$	-
Granted		54,216		6.64				3.44
Exercised		-		-				-
Expired/Cancelled		-		-				-
Outstanding at end of period		54,216	$	6.64	$	-	$	3.44
Exercisable at end of period		-	$	-	$	-	$	-

The Company estimates the fair value of stock options using the Black-Scholes valuation model with weighted average assumptions for dividend yield, expected volatility, risk-free interest rate and expected contract life (in years). The expected dividend yield is calculated by dividing the total expected annual dividend payout by the average stock price. The expected volatility is based on historical volatility of the underlying securities. The risk-free interest rate is based on the Federal Reserve Bank’s constant maturities daily interest rate in effect at grant date. The expected contract life of the options represents the period of time that the Company expects the awards to be outstanding based on historical experience with similar awards. The following weighted average assumptions were used as inputs to the Black-Scholes valuation model for options granted in 2012.

Dividend yield	0.60%
Expected volatility	58.65%
Risk-free interest rate	1.69%
Expected contract life (in years)	5.83

There was no aggregate intrinsic value of the options outstanding under the 2006 Equity Plan based on the $5.98 market value per share of Shore Bancshares, Inc.’s common stock at June 30, 2012. Since there were no options exercised during the first six months of 2012 or 2011, there was no intrinsic value associated with stock options exercised and no cash received on exercise of options. At June 30, 2012, the weighted average remaining contract life of options outstanding was 9.7 years.

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Other Assets

6 Months Ended

Jun. 30, 2012

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets Disclosure [Text Block]

Note 5 – Other Assets

The Company had the following other assets at June 30, 2012 and December 31, 2011.

(Dollars in thousands)	June 30, 2012		December 31, 2011
Nonmarketable investment securities	$	2,874	$	2,866
Insurance premiums receivable		563		876
Accrued interest receivable		3,644		3,933
Income taxes receivable		2,711		719
Deferred income taxes		8,113		9,036
Interest rate caps (1)		68		250
Prepaid expenses		3,060		3,641
Other assets		6,010		5,399
Total	$	27,043	$	26,720

(1) See Note 9 for further discussion.

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Other Liabilities

6 Months Ended

Jun. 30, 2012

Other Liabilities Disclosure [Abstract]

Other Liabilities Disclosure [Text Block]

Note 6 – Other Liabilities

The Company had the following other liabilities at June 30, 2012 and December 31, 2011.

(Dollars in thousands)	June 30, 2012		December 31, 2011
Accrued interest payable	$	588	$	569
Other liabilities		8,294		8,184
Total	$	8,882	$	8,753

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Fair Value Measurements

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Note 8 – Fair Value Measurements

Accounting guidance under GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This accounting guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available for sale and derivative assets and liabilities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans and other real estate and other assets owned (foreclosed assets). These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets.

Under fair value accounting guidance, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine their fair values. These hierarchy levels are:

Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date.

Level 2 inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

Below is a discussion on the Company’s assets measured at fair value on a recurring basis.

Investment Securities Available for Sale

Fair value measurement for investment securities available for sale is based on quoted prices from an independent pricing service. The fair value measurements consider observable data that may include present value of future cash flows, prepayment assumptions, credit loss assumptions and other factors. The Company classifies its investments in U.S. Treasury securities as Level 1 in the fair value hierarchy, and it classifies its investments in U.S. Government agencies securities and mortgage-backed securities issued or guaranteed by U.S. Government sponsored entities as Level 2.

Derivative Assets

Derivative instruments held by the Company for risk management purposes are traded in over-the-counter markets where quoted market prices are not readily available. For those derivatives, the Company measures fair value using third-party models that use primarily market observable inputs, such as yield curves and option volatilities, and include the value associated with counterparty credit risk. The Company classifies its derivative instruments held for risk management purposes as Level 2 in the fair value hierarchy. As of June 30, 2012 and December 31, 2011, the Company’s derivative instruments consisted solely of interest rate caps. These derivative assets are included in other assets in the accompanying consolidated balance sheets.

The tables below present the recorded amount of assets measured at fair value on a recurring basis at June 30, 2012 and December 31, 2011. No assets were transferred from one hierarchy level to another during the first six months of 2012 or 2011.

					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2012
Securities available for sale:
U.S. Government agencies	$	35,213	$	-	$	35,213	$	-
Mortgage-backed securities		97,414		-		97,414		-
Other equity securities		617		-		617		-
Total	$	133,244	$	-	$	133,244	$	-
Interest rate caps	$	68	$	-	$	68	$	-

					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2011
Securities available for sale:
U.S. Government agencies	$	42,148	$	-	$	42,148	$	-
Mortgage-backed securities		87,033		-		87,033		-
Other equity securities		599		-		599		-
Total	$	129,780	$	-	$	129,780	$	-
Interest rate caps	$	250	$	-	$	250	$	-

Below is a discussion on the Company’s assets measured at fair value on a nonrecurring basis.

Loans

The Company does not record loans at fair value on a recurring basis; however, from time to time, a loan is considered impaired and a valuation allowance may be established if there are losses associated with the loan. Loans are considered impaired if it is probable that payment of interest and principal will not be made in accordance with contractual terms. The fair value of impaired loans can be estimated using one of several methods, including the collateral value, market value of similar debt, liquidation value and discounted cash flows. At June 30, 2012 and December 31, 2011, substantially all impaired loans were evaluated based on the fair value of the collateral and were classified as Level 3 in the fair value hierarchy.

Other Real Estate and Other Assets Owned (Foreclosed Assets)

Foreclosed assets are adjusted for fair value upon transfer of loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value and fair value. Fair value is based on independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. At June 30, 2012 and December 31, 2011, foreclosed assets were classified as Level 3 in the fair value hierarchy.

The tables below summarize the changes in the recorded amount of assets measured at fair value on a nonrecurring basis for the six months ended June 30, 2012 and June 30, 2011. All assets measured at fair value on a nonrecurring basis were classified as Level 3 in the fair value hierarchy for the periods presented.

(Dollars in thousands)	Construction			Residential real estate			Commercial real estate			Commercial			Consumer			Total
For the six months ended June 30, 2012
Impaired loans:
Beginning balance	$	27,166		$	22,602		$	23,578		$	1,738		$	28		$	75,112
Charge-offs		(1,775	)		(5,356	)		(1,435	)		(1,264	)		-			(9,830	)
Payments		(715	)		(3,185	)		(1,375	)		(80	)		(3	)		(5,358	)
Transfers to other real estate owned		(1,620	)		(763	)		(1,334	)		(30	)		-			(3,747	)
Returned to performing status		-			-			-			-			-			-
Changed to nonaccrual status		(666	)		(786	)		-			-			-			(1,452	)
Additions		8,776			11,600			7,279			1,313			30			28,998
Changes in allowance		90			876			(500	)		(30	)		-			436
Ending balance	$	31,256		$	24,988		$	26,213		$	1,647		$	55		$	84,159

(Dollars in thousands)	Construction			Residential real estate			Commercial real estate			Commercial			Consumer			Total
For the six months ended June 30, 2011
Impaired loans:
Beginning balance	$	28,175		$	15,327		$	13,280		$	4,374		$	30		$	61,186
Charge-offs		(1,396	)		(4,300	)		(2,487	)		(1,769	)		-			(9,952	)
Payments		(837	)		(4,931	)		(2,329	)		(542	)		(1	)		(8,640	)
Transfers to other real estate owned		(1,719	)		(522	)		(2,577	)		(184	)		-			(5,002	)
Returned to performing status		-			(1,907	)		-			-			-			(1,907	)
Changed to nonaccrual status		(419	)		(2,162	)		(1,800	)		-			-			(4,381	)
Additions		4,403			18,391			15,723			1,111			-			39,628
Changes in allowance		-			(86	)		(506	)		(567	)		-			(1,159	)
Ending balance	$	28,207		$	19,810		$	19,304		$	2,423		$	29		$	69,773

	For the Six Months Ended
(Dollars in thousands)	June 30,
	2012			2011
Other real estate owned:
Beginning balance	$	9,385		$	3,702
Sales		(1,404	)		(712	)
Write-downs		(853	)		(168	)
Additions		4,371			5,055
Ending balance	$	11,499		$	7,877

The following information relates to the estimated fair values of financial assets and liabilities that are reported in the Company’s consolidated balance sheets at their carrying amounts. The discussion below describes the methods and assumptions used to estimate the fair value of each class of financial asset and liability for which it is practicable to estimate that value.

Cash and Cash Equivalents

Cash equivalents include interest-bearing deposits with other banks and federal funds sold. For these short-term instruments, the carrying amount is a reasonable estimate of fair value.

Investment Securities Held to Maturity

For all investments in debt securities, fair values are based on quoted market prices. If a quoted market price is not available, then fair value is estimated using quoted market prices for similar securities.

Loans

The fair values of categories of fixed rate loans, such as commercial loans, residential real estate, and other consumer loans, are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Other loans, including variable rate loans, are adjusted for differences in loan characteristics.

Financial Liabilities

The fair values of demand deposits, savings accounts, and certain money market deposits are the amounts payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. These estimates do not take into consideration the value of core deposit intangibles. Generally, the carrying amount of short-term borrowings is a reasonable estimate of fair value. The fair values of securities sold under agreements to repurchase (included in short-term borrowings) and long-term debt are estimated using the rates offered for similar borrowings.

Commitments to Extend Credit and Standby Letters of Credit

The majority of the Company’s commitments to grant loans and standby letters of credit are written to carry current market interest rates if converted to loans. In general, commitments to extend credit and letters of credit are not assignable by the Company or the borrower, so they generally have value only to the Company and the borrower. Therefore, it is impractical to assign any value to these commitments.

The following table provides information on the estimated fair values of the Company’s financial assets and liabilities that are reported at their carrying amounts. The financial assets and liabilities have been segregated by their classification level in the fair value hierarchy.

	June 30, 2012				December 31, 2011
			Estimated				Estimated
	Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Amount		Value		Amount		Value
Financial assets
Level 2 inputs
Cash and cash equivalents	$	169,573	$	169,573	$	127,742	$	127,742
Investment securities held to maturity		5,168		5,425		6,480		6,732
Level 3 inputs
Loans, net		796,968		830,986		826,762		856,917
Financial liabilities
Level 2 inputs
Deposits	$	1,032,703	$	1,031,231	$	1,009,919	$	1,013,964
Short-term borrowings		13,826		13,826		17,817		17,817
Long-term debt		455		460		455		470

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Investment Securities (Details Textual) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Available-for-sale Securities, Estimated fair value	$ 133,244	$ 129,780
Total Fair Value	$ 17,420
Available-for-sale Portfolio With Modest Duration Risk, Low Credit Risk and Minimal Losses Percentage	0.03%

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Fair Value Measurements (Details 2) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Other real estate owned:
Beginning balance	$ 9,385	$ 3,702
Sales	(1,404)	(712)
Write-downs	(853)	(168)
Additions	4,371	5,055
Ending balance	$ 11,499	$ 7,877

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2012

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

The following table provides information on the amortized cost and estimated fair values of investment securities.

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Available-for-sale securities:
June 30, 2012:
Obligations of U.S. Government agencies and corporations	$	34,300	$	914	$	1	$	35,213
Mortgage-backed securities		95,146		2,303		35		97,414
Equity securities		585		32		-		617
Total	$	130,031	$	3,249	$	36	$	133,244
December 31, 2011:
Obligations of U.S. Government agencies and corporations	$	41,360	$	803	$	15	$	42,148
Mortgage-backed securities		85,545		1,587		99		87,033
Equity securities		577		22		-		599
Total	$	127,482	$	2,412	$	114	$	129,780
Held-to-maturity securities:
June 30, 2012:
Obligations of states and political subdivisions	$	5,168	$	257	$	-	$	5,425
December 31, 2011:
Obligations of states and political subdivisions	$	6,480	$	252	$	-	$	6,732

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

The following table provides information about gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position at June 30, 2012.

	Less than 12 Months				More than 12 Months				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-sale securities:
U.S. Gov’t. agencies and corporations	$	3,999	$	1	$	-	$	-	$	3,999	$	1
Mortgage-backed securities		13,421		35		-		-		13,421		35
Total	$	17,420	$	36	$	-	$	-	$	17,420	$	36

Schedule of Securities Debt Maturities [Table Text Block]

The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at June 30, 2012.

	Available for sale				Held to maturity
	Amortized		Estimated		Amortized		Estimated
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	8,012	$	8,047	$	1,976	$	1,989
Due after one year through five years		14,238		14,284		1,680		1,748
Due after five years through ten years		4,995		5,157		502		575
Due after ten years		102,201		105,139		1,010		1,113
		129,446		132,627		5,168		5,425
Equity securities		585		617		-		-
Total	$	130,031	$	133,244	$	5,168	$	5,425

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The tables below present the recorded amount of assets measured at fair value on a recurring basis at June 30, 2012 and December 31, 2011. No assets were transferred from one hierarchy level to another during the first six months of 2012 or 2011.

					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2012
Securities available for sale:
U.S. Government agencies	$	35,213	$	-	$	35,213	$	-
Mortgage-backed securities		97,414		-		97,414		-
Other equity securities		617		-		617		-
Total	$	133,244	$	-	$	133,244	$	-
Interest rate caps	$	68	$	-	$	68	$	-

					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2011
Securities available for sale:
U.S. Government agencies	$	42,148	$	-	$	42,148	$	-
Mortgage-backed securities		87,033		-		87,033		-
Other equity securities		599		-		599		-
Total	$	129,780	$	-	$	129,780	$	-
Interest rate caps	$	250	$	-	$	250	$	-

Fair Value Assets Measured On Nonrecurring Basis [Table Text Block]

The tables below summarize the changes in the recorded amount of assets measured at fair value on a nonrecurring basis for the six months ended June 30, 2012 and June 30, 2011. .

(Dollars in thousands)	Construction			Residential real estate			Commercial real estate			Commercial			Consumer			Total
For the six months ended June 30, 2012
Impaired loans:
Beginning balance	$	27,166		$	22,602		$	23,578		$	1,738		$	28		$	75,112
Charge-offs		(1,775	)		(5,356	)		(1,435	)		(1,264	)		-			(9,830	)
Payments		(715	)		(3,185	)		(1,375	)		(80	)		(3	)		(5,358	)
Transfers to other real estate owned		(1,620	)		(763	)		(1,334	)		(30	)		-			(3,747	)
Returned to performing status		-			-			-			-			-			-
Changed to nonaccrual status		(666	)		(786	)		-			-			-			(1,452	)
Additions		8,776			11,600			7,279			1,313			30			28,998
Changes in allowance		90			876			(500	)		(30	)		-			436
Ending balance	$	31,256		$	24,988		$	26,213		$	1,647		$	55		$	84,159

(Dollars in thousands)	Construction			Residential real estate			Commercial real estate			Commercial			Consumer			Total
For the six months ended June 30, 2011
Impaired loans:
Beginning balance	$	28,175		$	15,327		$	13,280		$	4,374		$	30		$	61,186
Charge-offs		(1,396	)		(4,300	)		(2,487	)		(1,769	)		-			(9,952	)
Payments		(837	)		(4,931	)		(2,329	)		(542	)		(1	)		(8,640	)
Transfers to other real estate owned		(1,719	)		(522	)		(2,577	)		(184	)		-			(5,002	)
Returned to performing status		-			(1,907	)		-			-			-			(1,907	)
Changed to nonaccrual status		(419	)		(2,162	)		(1,800	)		-			-			(4,381	)
Additions		4,403			18,391			15,723			1,111			-			39,628
Changes in allowance		-			(86	)		(506	)		(567	)		-			(1,159	)
Ending balance	$	28,207		$	19,810		$	19,304		$	2,423		$	29		$	69,773

Fair Value Assets Measured On Nonrecurring Basis Other Real Estate Owned [Table Text Block]

All assets measured at fair value on a nonrecurring basis were classified as Level 3 in the fair value hierarchy for the periods presented.

	For the Six Months Ended
(Dollars in thousands)	June 30,
	2012			2011
Other real estate owned:
Beginning balance	$	9,385		$	3,702
Sales		(1,404	)		(712	)
Write-downs		(853	)		(168	)
Additions		4,371			5,055
Ending balance	$	11,499		$	7,877

Schedule Of Estimated Fair Values Of Financial Assets And Liabilities [Table Text Block]

The following table provides information on the estimated fair values of the Company’s financial assets and liabilities that are reported at their carrying amounts. The financial assets and liabilities have been segregated by their classification level in the fair value hierarchy.

	June 30, 2012				December 31, 2011
			Estimated				Estimated
	Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Amount		Value		Amount		Value
Financial assets
Level 2 inputs
Cash and cash equivalents	$	169,573	$	169,573	$	127,742	$	127,742
Investment securities held to maturity		5,168		5,425		6,480		6,732
Level 3 inputs
Loans, net		796,968		830,986		826,762		856,917
Financial liabilities
Level 2 inputs
Deposits	$	1,032,703	$	1,031,231	$	1,009,919	$	1,013,964
Short-term borrowings		13,826		13,826		17,817		17,817
Long-term debt		455		460		455		470

XML

Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012		Dec. 31, 2011
Securities available for sale:
Available-for-sale Securities, Estimated fair value	$ 133,244		$ 129,780
Interest rate caps	68	[1]	250	[1]
US Government and Government Agencies and Authorities [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	35,213		42,148
Mortgage Backed Securities, Other [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	97,414		87,033
Equity Securities, Other [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	617		599
Fair Value, Inputs, Level 1 [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	0		0
Interest rate caps	0		0
Fair Value, Inputs, Level 1 [Member] | US Government and Government Agencies and Authorities [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	0		0
Fair Value, Inputs, Level 1 [Member] | Mortgage Backed Securities, Other [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	0		0
Fair Value, Inputs, Level 1 [Member] | Equity Securities, Other [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	0		0
Fair Value, Inputs, Level 2 [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	133,244		129,780
Interest rate caps	68		250
Fair Value, Inputs, Level 2 [Member] | US Government and Government Agencies and Authorities [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	35,213		42,148
Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities, Other [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	97,414		87,033
Fair Value, Inputs, Level 2 [Member] | Equity Securities, Other [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	617		599
Fair Value, Inputs, Level 3 [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	0		0
Interest rate caps	0		0
Fair Value, Inputs, Level 3 [Member] | US Government and Government Agencies and Authorities [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	0		0
Fair Value, Inputs, Level 3 [Member] | Mortgage Backed Securities, Other [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	0		0
Fair Value, Inputs, Level 3 [Member] | Equity Securities, Other [Member]
Securities available for sale:
Available-for-sale Securities, Estimated fair value	$ 0		$ 0

[1] See Note 9 for further discussion.

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Loans and allowance for credit losses (Details 6) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011
Loans individually evaluated for impairment	$ 85,189		$ 48,476
Loans collectively evaluated for impairment	724,769		828,855
Total loans	809,958	841,050	877,331
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	920		1,362
Loans collectively evaluated for impairment	12,070		14,996
Allowance for credit losses	12,990	14,288	16,358
Unallocated Financing Receivables [Member]
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	0		0
Total loans	0		0
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	408		75
Allowance for credit losses	408		75
Commercial Loan [Member]
Loans individually evaluated for impairment	1,677		2,990
Loans collectively evaluated for impairment	61,327		71,495
Total loans	63,004	69,485	74,485
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	0		567
Loans collectively evaluated for impairment	1,063		2,143
Allowance for credit losses	1,063		2,710
Consumer Loan [Member]
Loans individually evaluated for impairment	55		29
Loans collectively evaluated for impairment	14,095		15,236
Total loans	14,150	14,639	15,265
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	485		605
Allowance for credit losses	485		605
Residential Real Estate [Member]
Loans individually evaluated for impairment	25,408		12,187
Loans collectively evaluated for impairment	280,685		319,947
Total loans	306,093	321,604	332,134
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	420		289
Loans collectively evaluated for impairment	3,817		3,895
Allowance for credit losses	4,237		4,184
Commercial Real Estate [Member]
Loans individually evaluated for impairment	26,713		15,141
Loans collectively evaluated for impairment	288,931		312,166
Total loans	315,644	315,439	327,307
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	500		506
Loans collectively evaluated for impairment	3,452		4,745
Allowance for credit losses	3,952		5,251
Construction Loans [Member]
Loans individually evaluated for impairment	31,336		18,129
Loans collectively evaluated for impairment	79,731		110,011
Total loans	111,067	119,883	128,140
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	2,845		3,533
Allowance for credit losses	$ 2,845		$ 3,533

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net income (loss)	$ 293	$ (233)	$ (2,743)	$ (1,316)
Other comprehensive income
Unrealized holding gains on available-for-sale securities	534	1,204	915	832
Tax effect	(216)	(490)	(369)	(340)
Reclassification of gains recognized in net income	0	(2)	0	(81)
Tax effect	0	1	0	33
Net of tax amount	318	713	546	444
Cash flow hedging activities:
Unrealized holding gains (losses) on cash flow hedging activities	421	(714)	780	(337)
Tax effect	(170)	288	(315)	135
Net of tax amount	251	(426)	465	(202)
Total other comprehensive income	569	287	1,011	242
Comprehensive income (loss)	$ 862	$ 54	$ (1,732)	$ (1,074)

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Earnings/(Loss) Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 2 – Earnings/(Loss) Per Share

Basic earnings/(loss) per common share is calculated by dividing net income/(loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings/(loss) per common share is calculated by dividing net income/(loss) available to common stockholders by the weighted average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents (stock-based awards and the warrant). There is no dilutive effect on the loss per share during loss periods. The following table provides information relating to the calculation of earnings/(loss) per common share:

	For the Three Months Ended					For the Six Months Ended
	June 30,					June 30,
(In thousands, except per share data)	2012		2011			2012			2011
Net income (loss)	$	293	$	(233	)	$	(2,743	)	$	(1,316	)
Weighted average shares outstanding - Basic		8,457		8,446			8,457			8,445
Dilutive effect of common stock equivalents		-		-			-			-
Weighted average shares outstanding - Diluted		8,457		8,446			8,457			8,445
Earnings (loss) per common share - Basic	$	0.03	$	(0.03	)	$	(0.32	)	$	(0.16	)
Earnings (loss) per common share - Diluted	$	0.03	$	(0.03	)	$	(0.32	)	$	(0.16	)

The calculations of diluted earnings/(loss) per share for the three and six months ended June 30, 2012 excluded 57 thousand and 37 thousand weighted average common stock equivalents, respectively, because the effect of including them would have been antidilutive. The calculations of diluted earnings/(loss) per share for the three and six months ended June 30, 2011 each excluded 180 thousand weighted average common stock equivalents because the effect of including them would have been antidilutive.

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Financial Instruments with Off-Balance Sheet Risk (Table)

6 Months Ended

Jun. 30, 2012

Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract]

Schedule Of Commitments Outstanding [Text Block]

The following table provides information on commitments outstanding at June 30, 2012 and December 31, 2011.

(Dollars in thousands)	June 30, 2012		December 31, 2011
Commitments to extend credit	$	143,223	$	136,222
Letters of credit		11,461		11,311
Total	$	154,684	$	147,533

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Loans and allowance for credit losses (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011
Loan Risk Rating	$ 809,958	$ 841,050	$ 877,331
Pass [Member]
Loan Risk Rating	623,607	643,258
Special Mention [Member]
Loan Risk Rating	67,142	63,686
Substandard [Member]
Loan Risk Rating	70,754	82,214
Doubtful [Member]
Loan Risk Rating	497	522
Non Accrual [Member]
Loan Risk Rating	47,958	51,370
Commercial Loan [Member]
Loan Risk Rating	63,004	69,485	74,485
Commercial Loan [Member] | Pass [Member]
Loan Risk Rating	56,049	59,178
Commercial Loan [Member] | Special Mention [Member]
Loan Risk Rating	3,669	3,813
Commercial Loan [Member] | Substandard [Member]
Loan Risk Rating	1,616	4,748
Commercial Loan [Member] | Doubtful [Member]
Loan Risk Rating	61	77
Commercial Loan [Member] | Non Accrual [Member]
Loan Risk Rating	1,609	1,669
Consumer Loan [Member]
Loan Risk Rating	14,150	14,639	15,265
Consumer Loan [Member] | Pass [Member]
Loan Risk Rating	13,846	14,520
Consumer Loan [Member] | Special Mention [Member]
Loan Risk Rating	185	32
Consumer Loan [Member] | Substandard [Member]
Loan Risk Rating	64	59
Consumer Loan [Member] | Doubtful [Member]
Loan Risk Rating	0	0
Consumer Loan [Member] | Non Accrual [Member]
Loan Risk Rating	55	28
Residential Real Estate [Member]
Loan Risk Rating	306,093	321,604	332,134
Residential Real Estate [Member] | Pass [Member]
Loan Risk Rating	249,611	261,910
Residential Real Estate [Member] | Special Mention [Member]
Loan Risk Rating	17,208	13,467
Residential Real Estate [Member] | Substandard [Member]
Loan Risk Rating	18,438	25,676
Residential Real Estate [Member] | Doubtful [Member]
Loan Risk Rating	436	445
Residential Real Estate [Member] | Non Accrual [Member]
Loan Risk Rating	20,400	20,106
Commercial Real Estate [Member]
Loan Risk Rating	315,644	315,439	327,307
Commercial Real Estate [Member] | Pass [Member]
Loan Risk Rating	257,072	257,247
Commercial Real Estate [Member] | Special Mention [Member]
Loan Risk Rating	19,447	16,001
Commercial Real Estate [Member] | Substandard [Member]
Loan Risk Rating	27,489	28,179
Commercial Real Estate [Member] | Doubtful [Member]
Loan Risk Rating	0	0
Commercial Real Estate [Member] | Non Accrual [Member]
Loan Risk Rating	11,636	14,012
Construction Loans [Member]
Loan Risk Rating	111,067	119,883	128,140
Construction Loans [Member] | Pass [Member]
Loan Risk Rating	47,029	50,403
Construction Loans [Member] | Special Mention [Member]
Loan Risk Rating	26,633	30,373
Construction Loans [Member] | Substandard [Member]
Loan Risk Rating	23,147	23,552
Construction Loans [Member] | Doubtful [Member]
Loan Risk Rating	0	0
Construction Loans [Member] | Non Accrual [Member]
Loan Risk Rating	$ 14,258	$ 15,555

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Earnings/(Loss) Per Share (Table)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table provides information relating to the calculation of earnings/(loss) per common share:

	For the Three Months Ended					For the Six Months Ended
	June 30,					June 30,
(In thousands, except per share data)	2012		2011			2012			2011
Net income (loss)	$	293	$	(233	)	$	(2,743	)	$	(1,316	)
Weighted average shares outstanding - Basic		8,457		8,446			8,457			8,445
Dilutive effect of common stock equivalents		-		-			-			-
Weighted average shares outstanding - Diluted		8,457		8,446			8,457			8,445
Earnings (loss) per common share - Basic	$	0.03	$	(0.03	)	$	(0.32	)	$	(0.16	)
Earnings (loss) per common share - Diluted	$	0.03	$	(0.03	)	$	(0.32	)	$	(0.16	)