LOANS (Tables)

3 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

Composition of loans receivable and loans held-for-sale

(in thousands)	March 31, 2013	December 31, 2012
Residential 1-4 family	$ 209,159	$ 198,552
Residential 5+ multifamily	4,714	3,889
Construction of residential 1-4 family	1,395	2,379
Home equity credit	33,925	34,162
Residential real estate	249,193	238,982
Commercial	96,835	87,382
Construction of commercial	9,755	5,823
Commercial real estate	106,590	93,205
Farm land	4,282	4,320
Vacant land	7,898	9,926
Real estate secured	367,963	346,433
Commercial and industrial	33,943	38,094
Municipal	3,995	3,378
Consumer	3,975	4,181
Loans receivable, gross	409,876	392,086
Deferred loan origination fees and costs, net	1,068	1,032
Allowance for loan losses	(4,686)	(4,360)
Loans receivable, net	$ 406,258	$ 388,758
Loans held-for-sale
Residential 1-4 family	$ 710	$ 1,879

Composition of loans receivable by risk rating grade

(in thousands)	Pass	Special mention	Substandard	Doubtful	Loss	Total
March 31, 2013
Residential 1-4 family	$ 189,694	$ 13,344	$ 6,023	$ 98	$ -	$ 209,159
Residential 5+ multifamily	2,354	1,142	1,218	-	-	4,714
Construction of residential 1-4 family	1,395	-	-	-	-	1,395
Home equity credit	30,881	1,368	1,676	-	-	33,925
Residential real estate	224,324	15,854	8,917	98	-	249,193
Commercial	68,196	19,679	8,960	-	-	96,835
Construction of commercial	8,989	153	613	-	-	9,755
Commercial real estate	77,185	19,832	9,573	-	-	106,590
Farm land	1,644	1,466	1,172	-	-	4,282
Vacant land	4,425	189	3,284	-	-	7,898
Real estate secured	307,578	37,341	22,946	98	-	367,963
Commercial and industrial	24,049	8,532	1,362	-	-	33,943
Municipal	3,995	-	-	-	-	3,995
Consumer	3,851	101	23	-	-	3,975
Loans receivable, gross	$ 339,473	$ 45,974	$ 24,331	$ 98	$ -	$ 409,876

(in thousands)	Pass	Special mention	Substandard	Doubtful	Loss	Total
December 31, 2012
Residential 1-4 family	$ 180,442	$ 12,473	$ 5,538	$ 99	$ -	$ 198,552
Residential 5+ multifamily	2,872	773	244	-	-	3,889
Construction of residential 1-4 family	1,570	-	809	-	-	2,379
Home equity credit	30,981	1,848	1,333	-	-	34,162
Residential real estate	215,865	15,094	7,924	99	-	238,982
Commercial	64,817	13,299	9,266	-	-	87,382
Construction of commercial	5,055	297	471	-	-	5,823
Commercial real estate	69,872	13,596	9,737	-	-	93,205
Farm land	2,799	341	1,180	-	-	4,320
Vacant land	4,885	863	4,178	-	-	9,926
Real estate secured	293,421	29,894	23,019	99	-	346,433
Commercial and industrial	28,453	8,300	1,341	-	-	38,094
Municipal	3,378	-	-	-	-	3,378
Consumer	3,994	159	28	-	-	4,181
Loans receivable, gross	$ 329,246	$ 38,353	$ 24,388	$ 99	$ -	$ 392,086

Composition of loans receivable by delinquency status

(in thousands)	Current	Past due							Non- accrual
		1-29 days	30-59 days	60-89 days	90-179 days	180 days and over	30 days and over	Accruing 90 days and over
March 31, 2013
Residential 1-4 family	$ 199,921	$ 5,445	$ 549	$ 2,771	$ 356	$ 117	$ 3,793	$ 165	$ 2,880
Residential 5+ multifamily	4,610	-	-	104	-	-	104	-	-
Construction of residential 1-4 family	1,395	-	-	-	-	-	-	-	-
Home equity credit	33,241	153	495	36	-	-	531	-	113
Residential real estate	239,167	5,598	1,044	2,911	356	117	4,428	165	2,993
Commercial	91,560	2,817	76	1,024	424	934	2,458	198	2,043
Construction of commercial	9,592	-	21	142	-	-	163	-	21
Commercial real estate	101,152	2,817	97	1,166	424	934	2,621	198	2,064
Farm land	3,110	785	14	373	-	-	387	-	-
Vacant land	4,772	-	-	47	-	3,079	3,126	-	3,126
Real estate secured	348,201	9,200	1,155	4,497	780	4,130	10,561	363	8,182
Commercial and industrial	33,592	267	58	26	-	-	84	-	42
Municipal	3,995	-	-	-	-	-	-	-	-
Consumer	3,886	66	15	8	-	-	23	-	-
Loans receivable, gross	$ 389,674	$9,533	$1,228	$4,531	$780	$4,130	$10,668	$165	$8,224
December 31, 2012
Residential 1-4 family	$ 190,488	$ 2,545	$ 3,578	$ 639	$ 1,185	$ 117	$ 5,519	$ -	$ 3,024
Residential 5+ multifamily	3,889	-	-	-	-	-	-	-	-
Construction of residential 1-4 family	2,379	-	-	-	-	-	-	-	-
Home equity credit	32,540	890	113	396	-	223	732	-	442
Residential real estate	229,296	3,435	3,691	1,035	1,185	340	6,251	-	3,466
Commercial	83,477	864	1,104	566	58	1,313	3,041	-	2,214
Construction of commercial	5,659	-	164	-	-	-	164	-	21
Commercial real estate	89,136	864	1,268	566	58	1,313	3,205	-	2,235
Farm land	3,898	422	-	-	-	-	-	-	-
Vacant land	5,932	-	-	48	740	3,206	3,994	-	3,994
Real estate secured	328,262	4,721	4,959	1,649	1,983	4,859	13,450	-	9,695
Commercial and industrial	37,618	351	26	99	-	-	125	-	164
Municipal	3,378	-	-	-	-	-	-	-	-
Consumer	4,034	108	25	14	-	-	39	-	-
Loans receivable, gross	$ 373,292	$ 5,180	$ 5,010	$ 1,762	$ 1,983	$ 4,859	$ 13,614	$ -	$ 9,859

Troubled debt restructurings

	Three months ended March 31, 2013			Three months ended March 31, 2012
(in thousands)	Quantity	Pre-modification balance	Post-modification balance	Quantity	Pre-modification balance	Post-modification balance
Residential real estate	-	$ -	$ -	1	$ 326	$ 326
Commercial real estate	2	1,022	1,022	5	559	559
Commercial and industrial	-	-	-	-	-	-
Troubled debt restructurings	2	$ 1,022	$ 1,022	6	$ 1,105	$ 1,105
Rate reduction and term extension	2	$ 1,022	$ 1,022	2	$ 373	$ 373
Debt consolidation and term extension	-	-	-	3	706	706
Seasonal interest only concession	-	-	-	1	26	26
Troubled debt restructurings	2	$ 1,022	$ 1,022	6	$1,105	$ 1,105

Changes in the allowance for loan losses

Three months ended (in thousands)	March 31, 2013					March 31, 2012
	Beginning balance	Provision	Charge-offs	Reco-veries	Ending balance	Beginning balance	Provision	Charge-offs	Reco-veries	Ending balance
Residential	$ 1,934	$ 23	$ (18)	$ -	$ 1,939	$ 1,479	$ 39	$ (18)	$ -	$ 1,500
Commercial	1,059	178	-	-	1,237	1,139	(79)	-	1	1,061
Land	301	265	(38)	-	528	410	(29)	(42)	-	339
Real estate	3,294	466	(56)	-	3,704	3,028	(69)	(60)	1	2,900
Commercial & industrial	499	(40)	(4)	-	455	704	100	(29)	3	778
Municipal	36	4	-	-	40	24	4	-	-	28
Consumer	91	(15)	(13)	3	66	79	59	(10)	5	133
Unallocated	440	(19)	-	-	421	241	86	-	-	327
Totals	$ 4,360	$ 396	$ (73)	$ 3	$ 4,686	$ 4,076	$ 180	$ (99)	$ 9	$ 4,166

Composition of loans receivable and the allowance for loan losses

(in thousands)	Collectively evaluated		Individually evaluated		Total portfolio
	Loans	Allowance	Loans	Allowance	Loans	Allowance
March 31, 2013
Residential 1-4 family	$ 202,490	$ 794	$ 6,669	$ 643	$ 209,159	$ 1,437
Residential 5+ multifamily	3,743	21	971	50	4,714	71
Construction of residential 1-4 family	1,395	6	-	-	1,395	6
Home equity credit	33,741	424	184	1	33,925	425
Residential real estate	241,369	1,245	7,824	694	249,193	1,939
Commercial	91,276	1,045	5,559	88	96,835	1,133
Construction of commercial	9,734	104	21	-	9,755	104
Commercial real estate	101,010	1,149	5,580	88	106,590	1,237
Farm land	4,282	68	-	-	4,282	68
Vacant land	4,773	58	3,125	402	7,897	460
Real estate secured	351,434	2,520	16,529	1,184	367,962	3,704
Commercial and industrial	32,952	426	991	29	33,943	455
Municipal	3,995	40	-	-	3,995	40
Consumer	3,898	36	77	30	3,975	66
Unallocated allowance	-	-	-	-	-	421
Totals	$ 392,279	$ 3,022	$ 17,597	$ 1,243	$ 409,876	$ 4,686
(in thousands)	Collectively evaluated		Individually evaluated		Total portfolio
	Loans	Allowance	Loans	Allowance	Loans	Allowance
December 31, 2012
Residential 1-4 family	$ 191,886	$ 743	$ 6,666	$ 652	$ 198,552	$ 1,395
Residential 5+ multifamily	2,913	22	976	50	3,889	72
Construction of residential 1-4 family	2,379	10	-	-	2,379	10
Home equity credit	33,697	365	465	92	34,162	457
Residential real estate	230,875	1,140	8,107	794	238,982	1,934
Commercial	81,635	931	5,747	64	87,382	995
Construction of commercial	5,802	64	21	-	5,823	64
Commercial real estate	87,437	995	5,768	64	93,205	1,059
Farm land	4,320	66	-	-	4,320	66
Vacant land	5,795	70	4,131	164	9,926	234
Real estate secured	328,427	2,271	18,006	1,022	346,433	3,293
Commercial and industrial	37,073	467	1,021	32	38,094	499
Municipal	3,378	36	-	-	3,378	36
Consumer	4,061	39	120	53	4,181	92
Unallocated allowance	-	-	-	-	-	440
Totals	$ 372,939	$ 2,813	$ 19,147	$ 1,107	$ 392,086	$ 4,360

Credit quality segments of loans receivable and allowance for loan losses

(in thousands)	Collectively evaluated		Individually evaluated		Total portfolio
	Loans	Allowance	Loans	Allowance	Loans	Allowance
March 31, 2013
Performing loans	$ 382,423	$ 2,687	$ 77	$ 30	$ 382,500	$ 2,717
Potential problem loans	9,856	335	2,558	86	12,414	421
Impaired loans	-	-	14,962	1,127	14,962	1,127
Unallocated allowance	-	-	-	-	-	421
Totals	$ 392,279	$ 3,022	$ 17,597	$ 1,243	$ 409,876	$ 4,686
December 31, 2012
Performing loans	$ 364,594	$ 2,567	$ 121	$ 52	$ 364,713	$ 2,619
Potential problem loans	8,345	246	2,465	131	10,810	377
Impaired loans	-	-	16,562	924	16,563	924
Unallocated allowance	-	-	-	-	-	440
Totals	$ 372,939	$ 2,813	$ 19,148	$ 1,107	$ 392,086	$ 4,360

Certain data with respect to impaired loans

(in thousands)	Impaired loans with specific allowance					Impaired loans with no specific allowance
	Loan balance			Specific allowance	Income recognized	Loan balance			Income recognized
	Book	Note	Average			Book	Note	Average
March 31, 2013
Residential 1-4 family	$ 3,917	$3,998	$ 3,868	$ 631	$ 17	$ 2,073	$ 2,279	$ 2,161	$ 10
Home equity credit	48	48	223	1	-	113	118	109	-
Residential real estate	3,965	4,046	4,091	632	17	2,186	2,396	2,270	10
Commercial	1,695	1,860	1,665	88	14	3,122	3,320	3,096	26
Vacant land	3,187	3,387	3,187	403	-	(61)	601	527	-
Real estate secured	8,847	9,293	8,943	1,123	31	5,247	6,317	5,893	36
Commercial and industrial	227	257	257	4	3	641	1,043	669	9
Consumer	-	-	-	-	-	-	-	-	-
Totals	$ 9,074	$ 9,550	$ 9,200	$ 1,127	$ 34	$ 5,888	$ 7,360	$ 6,562	$ 45

(in thousands)	Impaired loans with specific allowance					Impaired loans with no specific allowance
	Loan balance			Specific allowance	Income recognized	Loan balance			Income recognized
	Book	Note	Average			Book	Note	Average
December 31, 2012
Residential 1-4 family	$ 3,857	$ 3,925	$ 2,404	$ 578	$ 77	$ 2,263	$ 2,460	$ 1,601	$ 34
Home equity credit	351	351	146	92	-	91	93	203	-
Residential real estate	4,208	4,276	2,550	670	77	2,354	2,553	1,804	34
Commercial	1,629	1,784	1,925	64	60	3,381	3,576	3,122	82
Vacant land	3,186	3,387	1,455	158	-	808	1,467	2,358	4
Real estate secured	9,023	9,447	5,930	892	137	6,543	7,596	7,284	120
Commercial and industrial	335	368	833	32	13	661	1,063	854	31
Consumer	-	-	-	-	-	-	-	-	-
Totals	$ 9,358	$ 9,815	$ 6,763	$ 924	$ 150	$ 7,204	$ 8,659	$ 8,138	$ 151