Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2012

Allowance for Loan Losses [Abstract]

Allowance for loan losses

Allowance for loan losses for the three and nine months period ending September 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			(130	)		(11	)		(358	)		(1,931	)		(79	)		(58	)		(2,567	)
Recoveries		0			17			9			5			164			684			65			944
Provision		502			134			(409	)		273			(168	)		406			861			1,599
Ending balance September 30, 2012	$	537		$	101		$	2,073		$	474		$	6,342		$	3,576		$	1,405		$	14,508
Beginning balance June 30, 2012	$	554		$	49		$	1,688		$	768		$	6,396		$	4,118		$	612		$	14,185
Charge-offs		0			(128	)		0			(2	)		(704	)		(14	)		(7	)		(855	)
Recoveries		0			16			0			2			54			648			1			721
Provision		(17	)		164			385			(294	)		596			(1,176	)		799			457
Ending balance September 30, 2012	$	537		$	101		$	2,073		$	474		$	6,342		$	3,576		$	1,405		$	14,508
Beginning balance December 31, 2010	$	166		$	246		$	2,860		$	849		$	8,050		$	3,638		$	1,061		$	16,870
Charge-offs		0			(60	)		(85	)		(107	)		(2,000	)		(1,066	)		(48	)		(3,366	)
Recoveries		0			3			156			210			488			118			98			1,073
Provision		(142	)		(66	)		113			(183	)		2,420			1,395			(499	)		3,038
Ending balance September 30, 2011	$	24		$	123		$	3,044		$	769		$	8,958		$	4,085		$	612		$	17,615
Beginning balance June 30, 2011	$	25		$	114		$	2,933		$	628		$	8,974		$	5,102		$	575		$	18,351
Charge-offs		0			(3	)		(52	)		0			(553	)		(487	)		(39	)		(1,134	)
Recoveries		0			1			40			6			105			9			9			170
Provision		(1	)		11			123			135			432			(539	)		67			228
Ending balance September 30, 2011	$	24		$	123		$	3,044		$	769		$	8,958		$	4,085		$	612		$	17,615

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

At September 30, 2012 (in thousands)	Construction		Consumer		Multi- Family		Land, Farm & Ag Loans		Residential		Commercial  & Non- Residential		Commercial and Industrial		Total
Individually evaluated for impairment	$	1	$	39	$	406	$	100	$	595	$	524	$	34	$	1,699
Collectively evaluated for impairment	$	537	$	62	$	1,666	$	374	$	5,747	$	3,052	$	1,371	$	12,809
Portfolio balances:
Collectively evaluated for impairment	$	29,635	$	3,550	$	68,172	$	13,241	$	272,680	$	143,589	$	38,092	$	568,959
Individually evaluated for impairment
With no related allowance		0		0		0		0		589		1,143		66		1,798
With related allowance		16		526		4,565		900		10,825		5,949		492		23,273
Ending balance	$	29,651	$	4,076	$	72,737	$	14,141	$	284,094	$	150,681	$	38,650	$	594,030

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 September 30, 2012 and December 31, 2011:

	Non-Accrual		Non-Accrual
(in thousands)	September 30, 2012		December 31, 2011
Construction	$	16	$	19
Land, Farmland, Ag Loans		986		367
Residential		19,152		22,277
Commercial and non-residential		2,068		1,879
Consumer		499		113
Commercial and industrial		66		212
Multi Family		0		51
Total	$	22,787	$	24,918

Age analysis of past due loans

September 30, 2012	Loans 30- 59 Days Past Due		Loans 60 - 89 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	$	29,651	$	29,651	$	0
Land, Farmland, Ag Loans		0		0		119		119		14,022		14,141		0
Residential / prime		1,136		685		5,462		7,283		218,153		225,436		0
Residential / subprime		1,576		677		5,593		7,846		50,812		58,658		0
Commercial and non-residential		118		816		326		1,260		149,421		150,681		0
Consumer		34		24		35		93		3,983		4,076		0
Commercial and industrial		0		0		66		66		38,584		38,650		0
Multi Family		0		0		0		0		72,737		72,737		0
Total	$	2,864	$	2,202	$	11,601	$	16,667	$	577,363	$	594,030	$	0

December 31, 2011 (in thousands)	Loans 30- 59 Days Past Due		Loans 60 - 89 Past Due		Loans 90+ Days Past Due		Total Past Due		Current		Total Loans		Accruing Loans 90 Days Past Due
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 and non-residential		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)	September 30, 2012
With no related allowance recorded:
Construction	$	0	$	0	$	0
Land, Farmland, Ag Loans		0		0		0
Residential		589		673		0
Commercial and non-residential		1,143		1,143		0
Consumer		0		0		0
Commercial and industrial		66		66		0
Multi Family		0		660		0
Total	$	1,798	$	2,542	$	0
With a related specific allowance recorded:
Construction	$	16	$	16	$	1
Land, Farmland, Ag Loans		900		1,256		100
Residential		10,825		11,202		595
Commercial and non-residential		5,949		5,949		524
Consumer		526		568		39
Commercial and industrial		492		492		34
Multi Family		4,565		4,565		406
Total	$	23,273	$	24,048	$	1,699

	Recorded Investment		Unpaid Principal Balance		Related Allowance
(in thousands)	December 31, 2011
With no related allowance recorded:
Construction	$	0	$	0	$	0
Land, Farmland, Ag Loans		0		0		0
Residential		1,945		3,579		0
Commercial and non-residential		695		2,015		0
Consumer		0		0		0
Commercial and industrial		112		151		0
Multi Family		51		971		0
Total	$	2,803	$	6,716	$	0
With a related specific allowance recorded:
Construction	$	19	$	0	$	3
Land, Farmland, Ag Loans		1,203		1,216		208
Residential		8,922		9,033		720
Commercial and non-residential		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

	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 Sept 30, 2012				3 Months Ended Sept 30, 2011				9 Months Ended Sept 30, 2012				9 Months Ended Sept 30, 2011
With no related allowance recorded:
Construction	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Land, Farmland, Ag Loans		0		0		0		0		0		0		0		0
Residential		619		1		512		0		551		0		402		3
Commercial and non-residential		1,170		36		1,176		0		504		0		919		38
Consumer		0		0		0		0		0		0		0		0
Commercial and industrial		66		0		704		16		102		0		669		29
Multi Family		0		0		310		26		0		0		167		0
Total	$	1,855	$	37	$	2,702	$	42	$	1,157	$	0	$	2 ,157	$	70
With a related specific allowance recorded:
Construction	$	16	$	0	$	0	$	0	$	18	$	0	$	0	$	0
Land, Farmland, Ag Loans		902		25		1,220		45		243		9		1,258		53
Residential		10,954		186		9,754		190		11,756		194		9,446		289
Commercial and non-residential		5,544		163		5,899		123		8,361		253		5,905		219
Consumer		553		12		0		0		280		8		0		0
Commercial and industrial		308		4		314		9		377		12		318		13
Multi Family		4,577		107		5,601		141		4,611		107		5,267		209
Total	$	22,854	$	497	$	22,788	$	508	$	25,646	$	583	$	22,194	$	783

Non-homogenous loans and leases

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

	(In Thousands)
September 30, 2012	Pass		Watch		Special Mention		Substandard		Total(1)
Construction	$	22,324	$	7,311	$	0	$	16	$	29,651
Land, Farmland, Ag Loans		13,090		0		0		1,051		14,141
Commercial and non-residential		109,803		28,016		5,502		7,360		150,681
Commercial and industrial		36,533		1,936		0		181		38,650
Multi Family		46,910		18,416		3,936		3,475		72,737
Total	$	228,660	$	55,679	$	9,438	$	12,083	$	305,860

December 31, 2011	Pass		Watch		Special Mention		Substandard		Total(1)
Construction	$	16,263	$	7,594	$	0	$	19	$	23,876
Land, Farmland, Ag Loans		15,894		173		292		1,463		17,822
Commercial and non-residential		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

Homogeneous loans are monitored at 60+ days delinquent. See the above schedule on page 18 related to change in allowance for loans which includes all class of loans including the loans related to residential and consumer.

(1) There were no doubtful loans as of September 30, 2012 or December 31, 2011.

Loans modified in a TDR

The following presents by class, information related to loans modified in a TDR during the three and nine months ended September 30, 2012.

	Loans Modified as a TDR for the				Loans Modified as a TDR for the
	Three Months Ended September 30, 2012				Nine Months Ended September 30, 2012
Troubled Debt Restructurings	Number of		Recorded Investment		Number of		Recorded Investment
(dollars in thousands)	Contracts		(as of period end) 1		Contracts		(as of period end) 1
Land, Farmland, Ag Loans		0	$	0		2	$	732
Residential - prime		6		503		54		3,281
Residential - subprime		2		187		10		966
Commercial and non-residential		0		0		4		1,711
C Consumer Other		5		223		10		417
Multi Family		0		0		0		0
Total		13	$	913		80	$	7,107

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 October 1, 2011 through September 30, 2012 that subsequently defaulted (i.e., 60 days or more past due following a modification) during the three and nine months ended September 30, 2012.

	Loans Modified as a TDR				Loans Modified as a TDR
	Within the Previous Twelve Months				Within the Previous Twelve Months
	That Subsequently Defaulted During the				That Subsequently Defaulted During the
	Three Months Ended September 30, 2012				Twelve Months Ended September 30, 2012
			Recorded				Recorded
	Number of		Investment		Number of		Investment
(dollars in thousands)	Contracts		(as of period end) 1		Contracts		(as of period end) 1
Residential - prime		1	$	98		2	$	166
Residential -subprime		3		153		3		153
Consumer		1		20		1		20
Total		5	$	271		6	$	339

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.