Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2013

The following table provides the components of the Company’s recorded investment in loans for each portfolio segment at March 31, 2013:


	Residential Real Estate		Land		Construction			Commercial Real Estate			Commercial Business			Home Equity & 2nd Mtg		Other Consumer		Total
	(In thousands)
Recorded Investment in Loans:
Principal loan balance	$	105,344	$	9,395	$	11,777		$	69,400		$	18,333		$	35,202	$	30,795	$	280,246
Accrued interest receivable		405		40		49			190			49			129		148		1,010
Net deferred loan origination fees and costs		53		2		(11	)		(22	)		(9	)		207		0		220

Recorded investment in loans	$	105,802	$	9,437	$	11,815		$	69,568		$	18,373		$	35,538	$	30,943	$	281,476

Recorded Investment in Loans as Evaluated for Impairment:
Individually evaluated for impairment	$	1,974	$	130	$	260		$	1,406		$	1,776		$	274	$	0	$	5,820
Collectively evaluated for impairment		103,828		9,307		11,555			68,162			16,597			35,264		30,943		275,656
Acquired with deteriorated credit quality		0		0		0			0			0			0		0		0

Ending balance	$	105,802	$	9,437	$	11,815		$	69,568		$	18,373		$	35,538	$	30,943	$	281,476

The following table provides the components of the Company’s recorded investment in loans for each portfolio segment at December 31, 2012:


	Residential Real Estate		Land		Construction			Commercial Real Estate			Commercial Business			Home Equity & 2nd Mtg		Other Consumer		Total
	(In thousands)
Recorded Investment in Loans:
Principal loan balance	$	108,097	$	9,607	$	11,746		$	68,731		$	18,612		$	36,962	$	31,186	$	284,941
Accrued interest receivable		444		48		29			188			53			147		184		1,093
Net deferred loan origination fees and costs		62		2		(12	)		(17	)		(10	)		177		0		202

Recorded investment in loans	$	108,603	$	9,657	$	11,763		$	68,902		$	18,655		$	37,286	$	31,370	$	286,236

Recorded Investment in Loans as Evaluated for Impairment:
Individually evaluated for impairment	$	2,370	$	125	$	403		$	2,836		$	1,776		$	73	$	0	$	7,583
Collectively evaluated for impairment		106,233		9,532		11,360			66,066			16,879			37,213		31,370		278,653
Acquired with deteriorated credit quality		0		0		0			0			0			0		0		0

Ending balance	$	108,603	$	9,657	$	11,763		$	68,902		$	18,655		$	37,286	$	31,370	$	286,236

Allowance for Loan Losses

An analysis of the allowance for loan losses as of March 31, 2013 is as follows:


	Residential Real Estate		Land		Construction		Commercial Real Estate		Commercial Business		Home Equity & 2nd Mtg		Other Consumer		Total
	(In thousands)
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	143	$	6	$	0	$	258	$	1,065	$	25	$	0	$	1,497
Collectively evaluated for impairment		797		63		50		1,033		161		861		330		3,295
Acquired with deteriorated credit quality		0		0		0		0		0		0		0		0

Ending balance	$	940	$	69	$	50	$	1,291	$	1,226	$	886	$	330	$	4,792

An analysis of the allowance for loan losses as of December 31, 2012 is as follows:


	Residential Real Estate		Land		Construction		Commercial Real Estate		Commercial Business		Home Equity & 2nd Mtg		Other Consumer		Total
	(In thousands)
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	213	$	0	$	0	$	275	$	1,098	$	66	$	0	$	1,652
Collectively evaluated for impairment		709		71		0		1,035		125		853		291		3,084
Acquired with deteriorated credit quality		0		0		0		0		0		0		0		0

Ending balance	$	922	$	71	$	0	$	1,310	$	1,223	$	919	$	291	$	4,736

An analysis of the changes in the allowance for loan losses for the three months ended March 31, 2013 is as follows:


	Residential Real Estate			Land			Construction		Commercial Real Estate			Commercial Business			Home Equity & 2nd Mtg			Other Consumer			Total
	(In thousands)
Allowance for loan losses:
Beginning balance	$	922		$	71		$	0	$	1,310		$	1,223		$	919		$	291		$	4,736
Provisions for loan losses		213			(2	)		50		(33	)		(46	)		(33	)		101			250
Charge-offs		(198	)		0			0		0			0			(14	)		(105	)		(317	)
Recoveries		3			0			0		14			49			14			43			123

Ending balance	$	940		$	69		$	50	$	1,291		$	1,226		$	886		$	330		$	4,792

An analysis of the changes in the allowance for loan losses for the three months ended March 31, 2012 is as follows:


	Residential Real Estate			Land			Construction		Commercial Real Estate			Commercial Business		Home Equity & 2nd Mtg			Other Consumer			Total
	(In thousands)
Allowance for loan losses:
Beginning balance	$	828		$	93		$	33	$	1,269		$	1,160	$	400		$	399		$	4,182
Provisions for loan losses		498			10			2		(345	)		12		361			(63	)		475
Charge-offs		(276	)		(4	)		0		0			0		(114	)		(91	)		(485	)
Recoveries		10			0			0		0			3		4			39			56

Ending balance	$	1,060		$	99		$	35	$	924		$	1,175	$	651		$	284		$	4,228

Impaired Loans by Class of Loans

The following table summarizes the Company’s impaired loans by class of loans as of March 31, 2013 and for the three months ended March 31, 2013 and 2012:


	At March 31, 2013						Three Months Ended March 31, 2013						Three Months Ended March 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Recognized - Cash Method		Average Recorded Investment		Interest Income Recognized		Interest Recognized - Cash Method
	(In thousands)
Loans with no related allowance recorded:
Residential	$	1,365	$	1,732	$	0	$	1,396	$	2	$	1	$	1,254	$	1	$	1
Land		124		129		0		125		0		0		23		0		0
Construction		260		272		0		332		0		0		257		0		0
Commercial real estate		72		73		0		804		0		0		1,233		0		0
Commercial business		0		0		0		0		0		0		0		0		0
Home Equity/2nd mortgage		242		242		0		121		1		0		86		1		0
Other consumer		0		0		0		0		0		0		0		0		0

		2,063		2,448		0		2,778		3		1		2,853		2		1

Loans with an allowance recorded:
Residential		609		684		143		776		0		0		921		0		0
Land		6		6		6		3		0		0		0		0		0
Construction		0		0		0		0		0		0		0		0		0
Commercial real estate		1,334		1,453		258		1,318		0		0		1,574		0		0
Commercial business		1,776		1,909		1,065		1,776		0		0		1,928		0		0
Home Equity/2nd mortgage		32		32		25		53		0		0		94		0		1
Other consumer		0		0		0		0		0		0		0		0		0

		3,757		4,084		1,497		3,926		0		0		4,517		0		1

Total:
Residential		1,974		2,416		143		2,172		2		1		2,175		1		1
Land		130		135		6		128		0		0		23		0		0
Construction		260		272		0		332		0		0		257		0		0
Commercial real estate		1,406		1,526		258		2,122		0		0		2,807		0		0
Commercial business		1,776		1,909		1,065		1,776		0		0		1,928		0		0
Home Equity/2nd mortgage		274		274		25		174		1		0		180		1		1
Other consumer		0		0		0		0		0		0		0		0		0

	$	5,820	$	6,532	$	1,497	$	6,704	$	3	$	1	$	7,370	$	2	$	2

The following table summarizes the Company’s impaired loans by class of loans as of December 31, 2012:


	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
Loans with no related allowance recorded:
Residential	$	1,427	$	1,760	$	0
Land		125		126		0
Construction		403		413		0
Commercial real estate		1,535		1,944		0
Commercial business		0		0		0
HE/2nd mortgage		0		0		0
Other consumer		0		0		0

		3,490		4,243		0

Loans with an allowance recorded:
Residential		943		1,020		213
Land		0		0		0
Construction		0		0		0
Commercial real estate		1,301		1,394		275
Commercial business		1,776		1,909		1,098
HE/2nd mortgage		73		73		66
Other consumer		0		0		0

		4,093		4,396		1,652

Total:
Residential		2,370		2,780		213
Land		125		126		0
Construction		403		413		0
Commercial real estate		2,836		3,338		275
Commercial business		1,776		1,909		1,098
Home Equity/2nd mortgage		73		73		66
Other consumer		0		0		0

	$	7,583	$	8,639	$	1,652

Recorded Investment in Nonperforming Loans by Class of Loans

The following table presents the recorded investment in nonperforming loans by class of loans at March 31, 2013 and December 31, 2012:


	March 31, 2013						December 31, 2012
	Nonaccrual Loans		Loans 90+ Days Past Due Still Accruing		Total Nonperforming Loans		Nonaccrual Loans		Loans 90+ Days Past Due Still Accruing		Total Nonperforming Loans
	(In thousands)
Residential	$	1,974	$	219	$	2,193	$	2,370	$	215	$	2,585
Land		130		11		141		125		0		125
Construction		260		0		260		403		0		403
Commercial real estate		1,406		0		1,406		2,836		0		2,836
Commercial business		1,776		0		1,776		1,776		0		1,776
Home Equity/2nd mortgage		274		53		327		73		56		129
Other consumer		0		9		9		0		18		18

Total	$	5,820	$	292	$	6,112	$	7,583	$	289	$	7,872

Recorded Investment in Loans by Risk Category

The following table presents the recorded investment in loans by risk category and class of loans as of the date indicated:


	Residential Real Estate		Land		Construction		Commercial Real Estate		Commercial Business		Home Equity & 2nd Mtg		Other Consumer		Total
	(In thousands)
March 31, 2013
Pass	$	100,748	$	6,916	$	11,306	$	65,293	$	15,236	$	34,489	$	30,921	$	264,909
Special Mention		879		115		249		1,097		903		515		14		3,772
Substandard		2,201		2,276		0		1,772		458		260		8		6,975
Doubtful		1,974		130		260		1,406		1,776		274		0		5,820
Loss		0		0		0		0		0		0		0		0

Ending balance	$	105,802	$	9,437	$	11,815	$	69,568	$	18,373	$	35,538	$	30,943	$	281,476

December 31, 2012
Pass	$	102,618	$	7,220	$	11,244	$	63,095	$	15,026	$	36,035	$	31,302	$	266,540
Special Mention		958		17		116		1,018		1,354		553		25		4,041
Substandard		2,657		2,295		0		1,953		499		625		43		8,072
Doubtful		2,370		125		403		2,836		1,776		73		0		7,583
Loss		0		0		0		0		0		0		0		0

Ending balance	$	108,603	$	9,657	$	11,763	$	68,902	$	18,655	$	37,286	$	31,370	$	286,236

Tdrs by Class of Loan and Accrual Status

The following table summarizes the Company’s troubled debt restructurings (TDRs) by class of loan and accrual status as of March 31, 2013 and December 31, 2012:


	March 31, 2013								December 31, 2012
	Accruing		Nonaccrual		Total		Related Allowance for Loan Losses		Accruing		Nonaccrual		Total		Related Allowance for Loan Losses
	(In thousands)
Troubled debt restructurings:
Residential real estate	$	198	$	362	$	560	$	57	$	180	$	588	$	768	$	87
Land		0		0		0		0		0		0		0		0
Construction		0		111		111		0		0		170		170		0
Commercial real estate		1,218		334		1,552		83		0		1,534		1,534		83
Commercial business		0		1,776		1,776		1,065		0		1,776		1,776		1,098
Home equity and 2nd mortgage		41		31		72		25		41		31		72		25
Consumer		0		0		0		0		0		0		0		0

Total	$	1,457	$	2,614	$	4,071	$	1,230	$	221	$	4,099	$	4,320	$	1,293

Information in Regard to Tdrs that Occurred During Period

The following table summarizes information in regard to TDRs that were restructured during the three months ended March 31, 2012:


	Number of Contracts		Pre-Modification Outstanding Balance		Post-Modification Outstanding Balance
	(Dollars in thousands)
Troubled debt restructurings:
Residential real estate		1	$	88	$	88
Home equity & 2nd mortgage		1		25		25
Construction		0		0		0
Commercial real estate		0		0		0
Commercial business		0		0		0
Construction		0		0		0
Consumer		0		0		0

Total		2	$	113	$	113

Financing Receivable Recorded Investment Current Past Due

Loans

The following table presents the aging of the recorded investment loans by class of loans at March 31, 2013:


	30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Current		Total Loans
	(In thousands)
Residential	$	3,989	$	347	$	1,587	$	5,923	$	99,879	$	105,802
Land		187		135		136		458		8,979		9,437
Construction		0		0		111		111		11,704		11,815
Commercial real estate		178		334		125		637		68,931		69,568
Commercial business		237		0		0		237		18,136		18,373
Home Equity/2nd mortgage		411		0		263		674		34,864		35,538
Other consumer		287		26		9		322		30,621		30,943

Total	$	5,289	$	842	$	2,231	$	8,362	$	273,114	$	281,476

The following table presents the aging of the recorded investment in loans by class of loans at December 31, 2012:


	30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Current		Total Loans
	(In thousands)
Residential	$	4,085	$	871	$	1,644	$	6,600	$	102,003	$	108,603
Land		343		0		119		462		9,195		9,657
Construction		171		0		113		284		11,479		11,763
Commercial real estate		360		0		335		695		68,207		68,902
Commercial business		36		0		0		36		18,619		18,655
Home Equity/2nd mortgage		1,206		102		97		1,405		35,881		37,286
Other consumer		510		30		18		558		30,812		31,370

Total	$	6,711	$	1,003	$	2,326	$	10,040	$	276,196	$	286,236

- Definition

Tabular disclosure of troubled debt restructurings in the current period: (1) for each restructuring, the principal changes in terms, the major features of settlement, or both; (2) the aggregate gain (loss) on restructuring of payables; (3) the income tax effect on the gain or loss recognized on the restructuring of payables; (4) the gain (loss) recognized on the restructuring of payables, after the impact of income tax expense or benefit; and (5) the aggregate gain (loss) on transfer of assets recognized during the period, after the impact of income tax expense or benefit.

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