Loans (Tables)

9 Months Ended

Sep. 30, 2013

Major classifications of loans at the indicated dates are as follows:

	September 30,			December 31,
(In thousands)	2013			2012
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	165,363		$	173,955
Construction		1,694			2,655
Total residential mortgage loans		167,057			176,610

Commercial loans:
Real estate		94,078			82,329
Lines of credit		13,701			13,748
Other commercial and industrial		33,037			31,477
Municipal		4,968			3,588
Total commercial loans		145,784			131,142

Consumer loans:
Home equity and junior liens		20,917			22,073
Other consumer		4,009			3,469
Total consumer loans		24,926			25,542

Total loans		337,767			333,294
Net deferred loan costs		307			454
Less allowance for loan losses		(5,085	)		(4,501	)
Loans receivable, net	$	332,989		$	329,247

Summary of Classes of Loan Portfolio

The following table illustrates the portfolio segments and classes for the Company’s loan portfolio:

Portfolio Segment	Class

Residential Mortgage Loans	1-4 family first-lien residential mortgages
	Construction

Commercial Loans	Real estate
	Lines of credit
	Other commercial and industrial
	Municipal

Consumer Loans	Home equity and junior liens
	Other consumer

The following tables present the classes of the loan portfolio, not including net deferred loan costs, summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company's internal risk rating system as of the dates indicated:

	As of September 30, 2013
			Special
(In thousands)	Pass		Mention		Substandard		Doubtful		Total
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	159,005	$	1,293	$	5,050	$	15	$	165,363
Construction		1,694		-		-		-		1,694
Total residential mortgage loans		160,699		1,293		5,050		15		167,057
Commercial loans:
Real estate		88,134		1,022		4,739		183		94,078
Lines of credit		12,154		476		1,071		-		13,701
Other commercial and industrial		31,348		432		982		275		33,037
Municipal		4,968		-		-		-		4,968
Total commercial loans		136,604		1,930		6,792		458		145,784
Consumer loans:
Home equity and junior liens		19,357		473		1,004		83		20,917
Other consumer		3,890		31		66		22		4,009
Total consumer loans		23,247		504		1,070		105		24,926
Total loans	$	320,550	$	3,727	$	12,912	$	578	$	337,767

	As of December 31, 2012
			Special
(In thousands)	Pass		Mention		Substandard		Doubtful		Total
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	166,801	$	1,323	$	5,831	$	-	$	173,955
Construction		2,655		-		-		-		2,655
Total residential mortgage loans		169,456		1,323		5,831		-		176,610
Commercial loans:
Real estate		76,719		1,685		3,925		-		82,329
Lines of credit		12,026		-		1,647		75		13,748
Other commercial and industrial		29,705		237		1,500		35		31,477
Municipal		3,588		-		-		-		3,588
Total commercial loans		122,038		1,922		7,072		110		131,142
Consumer loans:
Home equity and junior liens		20,078		145		1,801		49		22,073
Other consumer		3,199		133		111		26		3,469
Total consumer loans		23,277		278		1,912		75		25,542
Total loans	$	314,771	$	3,523	$	14,815	$	185	$	333,294

Age Analysis of Past Due Loans Segregated by Class of Loans

An age analysis of past due loans, segregated by portfolio segment and class of loans, as of September 30, 2013 and December 31, 2012, are detailed in the following tables:

	As of September 30, 2013

	30-59 Days		60-89 Days		90 Days		Total				Total Loans
(In thousands)	Past Due		Past Due		and Over		Past Due		Current		Receivable
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	1,653	$	1,026	$	2,401	$	5,080	$	160,283	$	165,363
Construction		-		-		-		-		1,694		1,694
Total residential mortgage loans		1,653		1,026		2,401		5,080		161,977		167,057
Commercial loans:
Real estate		917		1,082		2,336		4,335		89,743		94,078
Lines of credit		237		-		260		497		13,204		13,701
Other commercial and industrial		2,563		1,027		464		4,054		28,983		33,037
Municipal		-		-		-		-		4,968		4,968
Total commercial loans		3,717		2,109		3,060		8,886		136,898		145,784
Consumer loans:
Home equity and junior liens		178		31		362		571		20,346		20,917
Other consumer		72		-		63		135		3,874		4,009
Total consumer loans		250		31		425		706		24,220		24,926
Total loans	$	5,620	$	3,166	$	5,886	$	14,672	$	323,095	$	337,767

	As of December 31, 2012
	30-59 Days		60-89 Days		90 Days		Total				Total Loans
(In thousands)	Past Due		Past Due		and Over		Past Due		Current		Receivable
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	2,698	$	1,161	$	2,046	$	5,905	$	168,050	$	173,955
Construction		-		-		-		-		2,655		2,655
Total residential mortgage loans		2,698		1,161		2,046		5,905		170,705		176,610
Commercial loans:
Real estate		1,706		1,833		1,794		5,333		76,996		82,329
Lines of credit		496		153		334		983		12,765		13,748
Other commercial and industrial		1,279		85		598		1,962		29,515		31,477
Municipal		-		-		-		-		3,588		3,588
Total commercial loans		3,481		2,071		2,726		8,278		122,864		131,142
Consumer loans:
Home equity and junior liens		207		405		730		1,342		20,731		22,073
Other consumer		26		42		46		114		3,355		3,469
Total consumer loans		233		447		776		1,456		24,086		25,542
Total loans	$	6,412	$	3,679	$	5,548	$	15,639	$	317,655	$	333,294

Nonaccrual Loans Segregated by Class of Loan

Nonaccrual loans, segregated by class of loan, were as follows:

	September 30,		December 31,
(In thousands)	2013		2012
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	2,401	$	2,046
		2,401		2,046
Commercial loans:
Real estate		2,336		1,794
Lines of credit		260		334
Other commercial and industrial		464		598
		3,060		2,726
Consumer loans:
Home equity and junior liens		362		730
Other consumer		63		46
		425		776
Total nonaccrual loans	$	5,886	$	5,548

Summary of Impaired Loans Information by Portfolio Class

The following tables summarize impaired loan information by portfolio class at the indicated dates:

	September 30, 2013						December 31, 2012
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
(In thousands)	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded:
1-4 family first-lien residential mortgages	$	578	$	578	$	-	$	844	$	844	$	-
Commercial real estate		1,981		1,981		-		1,554		1,571		-
Commercial lines of credit		282		297		-		358		370		-
Other commercial and industrial		286		286		-		657		801		-
Home equity and junior liens		299		299		-		380		380		-
Other consumer		-		-		-		-		-		-
With an allowance recorded:
1-4 family first-lien residential mortgages		404		404		61		1,307		1,307		215
Commercial real estate		2,075		2,075		679		1,182		1,182		401
Commercial lines of credit		100		100		100		-		-		-
Other commercial and industrial		251		260		232		225		230		207
Home equity and junior liens		165		165		85		155		155		95
Other consumer		2		2		2		5		5		5
Total:
1-4 family first-lien residential mortgages		982		982		61		2,151		2,151		215
Commercial real estate		4,056		4,056		679		2,736		2,753		401
Commercial lines of credit		382		397		100		358		370		-
Other commercial and industrial		537		546		232		882		1,031		207
Home equity and junior liens		464		464		85		535		535		95
Other consumer		2		2		2		5		5		5
Totals	$	6,423	$	6,447	$	1,159	$	6,667	$	6,845	$	923

Average Recorded Investment in Impaired Loans

The following table presents the average recorded investment in impaired loans for the periods indicated:

	For the three months ended				For the nine months ended
	September 30,				September 30,
(In thousands)	2013		2012		2013		2012
1-4 family first-lien residential mortgages	$	781	$	1,879	$	1,521	$	1,565
Commercial real estate		3,949		2,801		3,621		2,449
Commercial lines of credit		418		412		412		432
Other commercial and industrial		674		768		767		677
Home equity and junior liens		467		502		525		477
Other consumer		2		5		3		2
Total	$	6,291	$	6,367	$	6,849	$	5,602

Cash Basis Interest Income Recognized on Impaired Loans

The following table presents the cash basis interest income recognized on impaired loans for the periods indicated:

	For the three months ended					For the nine months ended
	September 30,					September 30,
(In thousands)	2013		2012			2013		2012
1-4 family first-lien residential mortgages	$	10	$	34		$	23	$	80
Commercial real estate		79		-			151		60
Commercial lines of credit		2		(5	)		13		13
Other commercial and industrial		8		11			20		30
Home equity and junior liens		6		4			24		11
Other consumer		-		1			-		1
Total	$	105	$	45		$	231	$	195