Loans (Tables)

6 Months Ended

Jun. 30, 2012

Loans [Abstract]

Major classifications of loans

Major classifications of loans at June 30, 2012 and December 31, 2011 are as follows (in thousands):

			June 30,	December 31,
			2012		2011
Commercial and industrial		$	25,350			30,990
Commercial, secured by real estate			230,285			219,188
Residential real estate			187,752			186,904
Consumer			12,498			14,562
Agricultural			1,641			2,835
Other loans, including deposit overdrafts			3,922			6,554
			461,448			461,033
Deferred net origination costs			133			229
			461,581			461,262
Less allowance for loan losses			2,952			2,931
	Loans, net	$	458,629			458,331

Non-accrual, past due, and accruing restructured loans

Non-accrual, past-due, and accruing restructured loans as of June 30, 2012 and December 31, 2011 are as follows (in thousands):

				June 30,	December 31,
				2012		2011
Non-accrual loans:
	Commercial and industrial		$	243		495
	Commercial, secured by real estate			1,007		1,950
	Residential real estate			1,998		1,223
		Total non-accrual loans		3,248		3,668
Past-due 90 days or more and still accruing				73		39
		Total non-accrual and past-due 90 days   or more and still accruing		3,321		3,707
Accruing restructured loans				13,447		14,739
		Total	$	16,768		18,446
Percentage of total non-accrual and past-due 90   days or more and still accruing to total loans				0.72%		0.80%
Percentage of total non-accrual, past-due 90 days   or more and still accruing, and accruing   restructured loans to total loans				3.63%		4.00%

Allowance for loan losses and recorded investments in loans

The allowance for loan losses and recorded investment in loans for the six months ended June 30 are as follows (in thousands)

				Commercial & Industrial	Commercial Real Estate	Residential Real Estate	Consumer	Agricultural	Other	Total
2012
Allowance for loan losses:
	Balance, beginning of year		$	162	1,941	656	166	-	6	2,931
	Provision charged to expenses			(10)	(77)	422	(39)	-	10	306
	Losses charged off			-	(206)	(153)	(57)	-	(40)	(456)
	Recoveries			-	71	7	68	-	25	171
	Balance, end of period		$	152	1,729	932	138	-	1	2,952
	Ending balance:
		Individually evaluated for impairment	$	-	83	378	-	-	-	461
		Collectively evaluated for impairment		152	1,646	554	138	-	1	2,491
Loans:
	Ending balance:
		Individually evaluated for impairment	$	242	10,232	5,614	8	-	-	16,096
		Collectively evaluated for impairment		25,087	219,866	182,380	12,589	1,641	3,922	445,485
		Totals	$	25,329	230,098	187,994	12,597	1,641	3,922	461,581
2011
Allowance for loan losses:
	Balance, beginning of year		$	305	1,625	459	246	-	6	2,641
	Provision charged to expenses			321	279	250	23	-	15	888
	Losses charged off			(251)	-	(132)	(138)	-	(58)	(579)
	Recoveries			-	30	4	82	-	43	159
	Balance, end of period		$	375	1,934	581	213	-	6	3,109
	Ending balance:
		Individually evaluated for impairment	$	133	341	82	-	-	-	556
		Collectively evaluated for impairment		242	1,593	499	213	-	6	2,553
Loans:
	Ending balance:
		Individually evaluated for impairment	$	780	11,920	533	-	-	-	13,233
		Collectively evaluated for impairment		32,713	194,939	187,248	17,113	2,844	9,466	444,323
		Totals	$	33,493	206,859	187,781	17,113	2,844	9,466	457,556

Analysis of the company's loan portfolio by credit quality indicators

A breakdown of the loan portfolio by credit quality indicators at June 30, 2012 and December 31, 2011 is as follows (in thousands):

		Pass	OAEM	Substandard	Doubtful	Total
June 30, 2012
Commercial & industrial	$	22,146	2,526	657	-	25,329
Commercial, secured by real estate		219,325	2,236	8,537	-	230,098
Residential real estate		178,178	2,632	7,184	-	187,994
Consumer		12,540	-	57	-	12,597
Agricultural		1,637	-	4	-	1,641
Other		3,922	-	-	-	3,922
Total	$	437,748	7,394	16,439	-	461,581
December 31, 2011
Commercial & industrial	$	26,099	1,700	2,804	370	30,973
Commercial, secured by real estate		206,728	2,133	9,633	568	219,062
Residential real estate		182,409	1,681	2,682	376	187,148
Consumer		14,601	-	50	39	14,690
Agricultural		1,430	-	1,405	-	2,835
Other		6,554	-	-	-	6,554
Total	$	437,821	5,514	16,574	1,353	461,262

Loan portfolio aging analysis

A loan portfolio aging analysis at June 30, 2012 and December 31, 2011 is as follows (in thousands):

	30-59 Days Past Due		60-89 Days Past Due	Greater Than 90 Days	Total Past Due	Current		Total Loans Receivable	Total Loans Greater Than 90 Days and Accruing
June 30, 2012
Commercial & industrial	$	-	-	242	242	25,087		25,329	-
Commercial, secured by   real estate		468	81	1,007	1,556	228,542		230,098	-
Residential real estate		617	411	2,038	3,066	184,928		187,994	39
Consumer		71	20	34	125	12,472		12,597	34
Agricultural		-	-	-	-	1,641		1,641	-
Other		45	-	-	45	3,877		3,922	-
Total	$	1,201	512	3,321	5,034	456,547		461,581	73
December 31, 2011
Commercial & industrial	$	2	-	495	497		30,476	30,973	-
Commercial, secured by   real estate		-	83	1,769	1,852		217,210	219,062	-
Residential real estate		1,132	22	1,202	2,356		184,792	187,148	-
Consumer		82	37	39	158		14,532	14,690	39
Agricultural		-	-	-	-		2,835	2,835	-
Other		59	-	-	59		6,495	6,554	-
Total	$	1,275	142	3,505	4,922		456,340	461,262	39

Impaired loans

Impaired loans at June 30, 2012 and December 31, 2011 are as follows (in thousands):

		Recorded Investment	Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
June 30, 2012
With no related allowance recorded:
Commercial & industrial	$	243	572	-	2,054	43
Commercial real estate		12,920	13,364	-	12,326	229
Residential real estate		521	521	-	398	1
Consumer		8	8	-	8	-
Total	$	13,692	14,465	-	14,786	273
With an allowance recorded:
Commercial & industrial	$	170	170	-	172	3
Commercial real estate		1,502	1,591	142	1,795	26
Residential real estate		733	733	319	717	1
Consumer		-	-	-	1	-
Total	$	2,405	2,494	461	2,685	30
Total:
Commercial & industrial	$	413	742	-	2,226	46
Commercial real estate		14,422	14,955	142	14,121	255
Residential real estate		1,254	1,254	319	1,115	2
Consumer		8	8	-	9	-
Total	$	16,097	16,959	461	17,471	303
December 31, 2011
With no related allowance recorded:
Commercial & industrial	$	2,881	3,211	-	3,015	139
Commercial real estate		12,373	12,587	-	12,686	529
Residential real estate		332	332	-	332	-
Consumer		8	8		5	1
Total	$	15,594	16,138	-	16,038	669
With an allowance recorded:
Commercial & industrial	$	177	177	-	330	14
Commercial real estate		2,120	3,136	257	2,514	67
Residential real estate		264	264	142	257	-
Consumer		2	2	-	1	-
Total	$	2,563	3,579	399	3,102	81
Total:
Commercial & industrial	$	3,058	3,388	-	3,345	153
Commercial real estate		14,493	15,723	257	15,200	596
Residential real estate		596	596	142	589	-
Consumer		10	10	-	6	1
Total	$	18,157	19,717	399	19,140	750

Loan modification that were classified as troubled debt restructurings

Loan modifications that were classified as troubled debt restructurings during the three and six months ended June 30, 2012 and 2011 are as follows (dollars in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2012		2011			2012		2011
	Number of Loans	Balance at Modification	Number of Loans		Balance at Modification	Number of Loans	Balance at Modification	Number of Loans		Balance at Modification
Commercial and industrial	-	-	-	$	-	-	-	1	$	204
Commercial, secured by real estate	-	-	-		-	-	-	2		625
Residential real estate	1	143	-		-	2	173	-		-
Consumer	-	-	2		9	-	-	3		11
	1	143	2	$	9	2	173	6	$	840