Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2012

Allowance for Loan Losses [Abstract]

Allowance for loan losses

Allowance for loan losses for the three and six months period ending June 30, 2012 and 2011 are summarized as follows:

(in thousands)	Construction			Consumer			Multi- Family			Land, Farm & Ag Loans			Residential			Commercial & Non-Residential			Commercial and Industrial			Total
Allowance for credit losses:
Beginning balance December 31, 2011	$	35		$	80		$	2,484		$	554		$	8,277		$	2,565		$	537		$	14,532
Charge-offs		0			(2	)		(11	)		(356	)		(1,227	)		(65	)		(51	)		(1,712	)
Recoveries		0			1			9			3			110			36			64			223
Provision		519			(30	)		(794	)		567			(764	)		1,582			62			1,142
Ending balance June 30, 2012	$	554		$	49		$	1,688		$	768		$	6,396		$	4,118		$	612		$	14,185
Beginning balance March 31, 2012	$	428		$	48		$	1,548		$	1,043		$	6,966		$	4,356		$	565		$	14,954
Charge-offs		0			(2	)		0			(356	)		(593	)		(65	)		(5	)		(1,021	)
Recoveries		0			1			1			2			60			26			25			115
Provision		126			2			139			79			(37	)		(199	)		27			137
Ending balance June 30, 2012	$	554		$	49		$	1,688		$	768		$	6,396		$	4,118		$	612		$	14,185
Beginning balance December 31, 2010	$	166		$	246		$	2,860		$	849		$	8,050		$	3,638		$	1,061		$	16,870
Charge-offs		0			(57	)		(33	)		(107	)		(1,447	)		(579	)		(9	)		(2,232	)
Recoveries		0			2			116			204			383			109			89			903
Provision		(141	)		(77	)		(10	)		(318	)		1,988			1,934			(566	)		2,810
Ending balance June 30, 2011	$	25		$	114		$	2,933		$	628		$	8,974			5,102		$	575		$	18,351
Beginning balance March 31, 2011	$	164		$	278		$	2,355		$	782		$	7,962		$	5,428		$	441		$	17,410
Charge-offs		0			(55	)		(33	)		(107	)		(737	)		(313	)		0			(1,245	)
Recoveries		0			1			110			9			248			21			0			389
Provision		(139	)		(110	)		501			(56	)		1,501			(34	)		134			1,797
Ending balance June 30, 2011	$	25		$	114		$	2,933		$	628		$	8,974		$	5,102		$	575		$	18,351

Allocation of the allowance for loan loss by segment to loans individually and collectively evaluated for impairment as follows:

At June 30, 2012 (in thousands)	Construction		Consumer		Multi- Family		Land, Farm & Ag Loans		Residential		Commercial & Non-Residential		Commercial and Industrial		Total
Individually evaluated for impairment	$	4	$	18	$	406	$	25	$	481	$	540	$	59	$	1,533
Collectively evaluated for impairment	$	550	$	31	$	1,282	$	743	$	5,915	$	3,578	$	553	$	12,652
Portfolio balances:
Collectively evaluated for impairment	$	24,589	$	3,663	$	71,963	$	15,579	$	285,028	$	150,145	$	35,703	$	586,670
Individually evaluated for impairment
With no related allowance		0		0		0		666		507		504		100		1,777
With related allowance		17		259		4,588		238		11,651		8,232		358		25,343
Ending balance	$	24,606	$	3,922	$	76,551	$	16,483	$	297,186	$	158,88	$	36,161	$	613,790

At December 31, 2011 (in thousands)	Construction		Consumer		Multi- Family		Land, Farm & Ag Loans		Residential		Commercial & Non-Residential		Commercial and Industrial		Total
Individually evaluated for impairment	$	3	$	41	$	426	$	208	$	720	$	335	$	27	$	1,760
Collectively evaluated for impairment	$	32	$	39	$	2,058	$	346	$	7,557	$	2,230	$	510	$	12,772
Portfolio balances:
Collectively evaluated for impairment	$	23,857	$	3,402	$	83,246	$	16,619	$	307,057	$	156,457	$	38,355	$	628,993
Individually evaluated for impairment
With no related allowance		0		0		51		0		1,945		695		112		2,803
With related allowance		19		128		4,633		1,203		8,922		6,612		396		21,913
Ending balance	$	23,876	$	3,530	$	87,930	$	17,822	$	317,924	$	163,764	$	38,863	$	653,709

Non-accrual loans

The following table details non-accrual loans at June 30, 2012 and December 31, 2011:

	Non-Accrual		Non-Accrual
(in thousands)	June 30, 2012		December 31, 2011
Construction	$	17	$	19
Land, Farmland, Ag Loans		1,005		367
Residential		20,482		22,277
Commercial		1,648		1,879
Consumer		357		113
Commercial and industrial		144		212
Multi Family		0		51
Total	$	23,653	$	24,918

Age analysis of past due loans

An age analysis of past due loans, segregated by class of loans were as follows:

June 30, 2012	Loans 30-59 Days Past Due		Loans 60 - 89 Days Past Due		Loans 90+ Days Past Due		Total Past Due		Current		Total Loans		Accruing Loans 90 Days Past Due
(in thousands)
Construction	$	0	$	0	$	0	$	0	$	24,606	$	24,606	$	0
Land, Farmland, Ag Loans		13		279		136		428		16,055		16,483		0
Residential / prime		1,862		1,101		6,119		9,082		227,630		236,712		0
Residential / subprime		1,951		827		5,428		8,206		52,268		60,474		0
Commercial		0		0		714		714		158,167		158,881		0
Consumer		78		0		150		228		3,694		3,922		0
Commercial and industrial		0		0		100		100		36,061		36,161		0
Multi Family		0		0		0		0		76,551		76,551		0
Total	$	3,904	$	2,207	$	12,647	$	18,758	$	595,032	$	613,790	$	0

December 31, 2011	Loans 30-59 Days Past Due		Loans 60 - 89 Days Past Due		Loans 90+ Days Past Due		Total Past Due		Current		Total Loans		Accruing Loans 90 Days Past Due
(in thousands)
Construction	$	0	$	0	$	0	$	0	$	23,876	$	23,876	$	0
Land, Farmland, Ag Loans		103		0		136		239		17,583		17,822		0
Residential / prime		638		269		4,139		5,046		235,502		240,548		0
Residential / subprime		5,380		1,818		9,499		16,697		60,679		77,376		0
Commercial		462		527		638		1,627		162,137		163,764		0
Consumer		54		76		18		148		3,382		3,530		0
Commercial and industrial		45		0		114		159		38,704		38,863		0
Multi Family		0		0		51		51		87,879		87,930		0
Total	$	6,682	$	2,690	$	14,595	$	23,967	$	629,742	$	653,709	$	0

Impaired loans

Impaired loans are set forth in the following table:

	Recorded Investment		Unpaid Principal Balance		Related Allowance
(in thousands)	June 30, 2012
With no related allowance recorded:
Construction	$	0	$	0	$	0
Land, Farmland, Ag Loans		666		1,022		0
Residential		507		641		0
Commercial		504		1,507		0
Consumer		0		0		0
Commercial and industrial		100		101		0
Multi Family		0		661		0
Total	$	1,777	$	3,932	$	0
With a related specific allowance recorded:
Construction	$	17	$	17	$	4
Land, Farmland, Ag Loans		238		238		25
Residential		11,651		12,013		481
Commercial		8,232		8,232		540
Consumer		259		301		18
Commercial and industrial		358		358		59
Multi Family		4,588		4,588		406
Total	$	25,343	$	25,747	$	1,533

	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Investment Income Recognized
(in thousands)	3 Months Ended June 30, 2012				3 Months Ended June 30, 2011				6 Months Ended June 30, 2012				6 Months Ended June 30, 2011
With no related allowance recorded:
Construction	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Land, Farmland, Ag Loans		1,024		1		1,207		12		667		16		1,095		23
Residential		567		0		401		0		551		0		398		0
Commercial		504		0		902		0		504		0		901		0
Consumer		0		0		0		0		0		0		0		0
Commercial and industrial		103		0		0		0		102		0		0		0
Multi Family		0		0		66		0		0		0		66		0
Total	$	2,198	$	1	$	2,576	$	12	$	1,824	$	16	$	2,460	$	23
With a related specific allowance recorded:
Construction	$	19	$	0	$	0	$	0	$	18	$	—	$	—	$	—
Land, Farmland, Ag Loans		246		2		200		18		243		9		165		22
Residential		11,856		94		5,984		40		11,756		194		5,624		63
Commercial		8,104		127		8,172		51		8,361		253		8,149		106
Consumer		298		2		0		0		280		8
Commercial and industrial		389		5		415		4		377		12		406		10
Multi Family		4,622		54		4,061		48		4,611		107		4,046		95
Total	$	25,534	$	284	$	18,832	$	161	$	25,646	$	583	$	18,390	$	296

December 31, 2011 (in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Construction	$	—	$	—	$	—
Land, Farmland, Ag Loans		—		—		—
Residential		1,945		3,579		—
Commercial		695		2,015		—
Consumer		—		—		—
Commercial and industrial		112		151		—
Multi Family		51		971		—
Total	$	2,803	$	6,716	$	—
With a related specific allowance recorded:
Construction	$	19	$	—	$	3
Land, Farmland, Ag Loans		1,203		1,216		208
Residential		8,922		9,033		720
Commercial		6,612		6,612		335
Consumer		128		100		41
Commercial and industrial		396		396		27
Multi Family		4,633		4,633		426
Total	$	21,913	$	21,990	$	1,760

Non-homogenous loans and leases

Based on the most recent analysis performed, the risk category of non-homogeneous loans and leases is as follows:

	(Dollars in Thousands)
June 30, 2012	Pass		Watch		Special Mention		Substandard		Total(1)
Construction	$	11,750	$	12,839	$	0	$	17	$	24,606
Land, Farmland, Ag Loans		15,131		0		280		1,072		16,483
Commercial		120,391		21,500		7,064		9,926		158,881
Commercial and industrial		30,666		5,182		90		223		36,161
Multi Family		49,424		19,203		4,421		3,503		76,551
Total	$	227,362	$	58,724	$	11,855	$	14,741	$	312,682

December 31, 2011	Pass		Watch		Special Mention		Substandard		Total(1)
Construction	$	16,263	$	7,594	$	—	$	19	$	23,876
Land, Farmland, Ag Loans		15,894		173		292		1,463		17,822
Commercial		129,446		17,112		4,959		12,247		163,764
Commercial and industrial		33,064		5,154		336		309		38,863
Multi Family		57,353		24,470		4,138		1,969		87,930
Total	$	252,020	$	54,503	$	9,725	$	16,007	$	332,255

Loans modified in a TDR

The following presents by class, information related to loans modified in a TDR during the six months ended June 30, 2012.

	Loans Modified as a TDR for the Three Months Ended June 30, 2012				Loans Modified as a TDR for the Six Months Ended June 30, 2012
Troubled Debt Restructurings 1 (dollars in thousands)	Number of Contracts		Recorded Investment (as  of period end)		Number of Contracts		Recorded Investment (as of period end)
Land, Farmland, Ag Loans		2	$	733		2	$	733
Residential – prime		20		2,572		24		2,818
Residential – subprime		7		781		8		802
Commercial		5		2,239		5		2,239
Consumer Other		2		111		3		120
Multi Family		1		160		1		160
Total		37	$	6,596		43	$	6,872

1 The period end balances are inclusive of all partial pay downs and charge-offs since the modification date. Loans modified in a TDR that were fully paid down, charged-off, or foreclosed upon by period end are not reported.

The following presents by class, loans modified in a TDR from July 1, 2011 through June 30, 2012 that subsequently defaulted (i.e., 60 days or more past due following a modification) during the three and six months ended June 30, 2012.

	Loans Modified as a TDR Within the Previous Twelve Months That Subsequently Defaulted During the Three Months Ended June 30, 2012				Loans Modified as a TDR Within the Previous Twelve Months That Subsequently Defaulted During the Twelve Months Ended June 30, 2012
(dollars in thousands)	Number of Contracts		Recorded Investment (as of period end) 1		Number of Contracts		Recorded Investment (as of period end) 1
Residential – prime		1	$	68		1	$	68
Consumer		1		20		1		20
Total		2	$	88		2	$	88

1 The period end balances are inclusive of all partial pay downs and charge-offs since the modification date. Loans modified in a TDR that were fully paid down, charged-off, or foreclosed upon by period end are not reported.