Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2012

Allowance for Loan Losses [Abstract]

Allowance for loan losses

Change in the allowance for loan losses is summarized as follows:

(in thousands)	Construction		Consumer			Multi- Family			Land, Farm & Ag Loans			Residential			Commercial & Non- Residential Real Estate			C&I			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		(165	)		(12	)		(416	)		(2,858	)		(150	)		(58	)		(3,659	)
Recoveries		0		46			13			6			302			698			65			1,130
Provision		80		200			(1,054	)		230			1259			(1,102	)		530			144
Ending balance December 31, 2012	$	115	$	162		$	1,431		$	373		$	6980		$	2,011		$	1,075		$	12,147
Ending balance
Individually evaluated for impairment	$	0	$	40		$	416		$	68		$	500		$	369		$	25		$	1,418
Collectively evaluated for impairment	$	115	$	122		$	1,014		$	305		$	6,480		$	1,642		$	1,051		$	10,729
Portfolio balances:
Individually evaluated for impairment
With no related allowance		14		0			0			558			0			1,573			0			2,145
With related allowance		0		491			4,541			230			11,107			3,674			539			20,582
Collectively evaluated for impairment	$	13,801	$	3,557		$	75,447		$	13,214		$	264,789		$	131,632		$	41,555		$	545,285
Ending balance December 31, 2012	$	13,815	$	4,048		$	79,988		$	14,002		$	275,896		$	136,879		$	42,094		$	566,722

(in thousands)	Construction			Consumer			Multi- Family			Land, Farm & Ag Loans			Residential			Commercial & Non- Residential			C&I			Total
Allowance for credit losses:
Beginning balance December 31, 2010	$	166		$	246		$	2,860		$	849		$	8,050		$	3,638		$	1,061		$	16,870
Charge-offs		0			(62	)		(388	)		(107	)		(3,370	)		(1,938	)		(48	)		(5,913	)
Recoveries		0			32			158			242			554			211			99			1,296
Provision		(131	)		(136	)		(146	)		(430	)		3,043			654			(575	)		2,279
Ending balance December 31, 2011	$	35		$	80		$	2,484		$	554		$	8,277		$	2,565		$	537		$	14,532
Ending balance
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:
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
Collectively evaluated for impairment	$	23,857		$	3,402		$	83,246		$	16,619		$	307,057		$	156,457		$	38,355		$	628,993
Ending balance December 31, 2011	$	23,876		$	3,530		$	87,930		$	17,822		$	317,924		$	163,764		$	38,863		$	653,709

(in thousands)	Construction			Consumer			Multi- Family			Land, Farm & Ag Loans			Residential			Commercial & Non- Residential			C&I			Total
Allowance for credit losses:
Beginning balance December 31, 2009	$	338		$	98		$	731		$	628		$	10,519		$	3,148		$	637		$	16,099
Charge-offs		(482	)		(28	)		(1,535	)		(2,283	)		(7,530	)		(3,688	)		(3,399	)		(18,945	)
Recoveries		39			9			103			247			490			157			211			1,256
Provision		271			167			3,561			2,257			4,571			4,021			3,612			18,460
Ending balance December 31, 2010	$	166		$	246		$	2,860		$	849		$	8,050		$	3,638		$	1,061		$	16,870
Ending balance
Individually evaluated for impairment	$	—		$	—		$	—		$	—		$	256		$	1,171		$	170		$	1,597
Collectively evaluated for impairment	$	166		$	246		$	2,860		$	849		$	7,794		$	2,467		$	891		$	15,273
Portfolio balances:
Individually evaluated for impairment
With no related allowance		—			—			3,180			1,549			3,122			4,122			706			12,679
With related allowance		—			—			—			—			2,706			4,503			630			7,839
Collectively evaluated for impairment	$	26,225		$	3,826		$	71,162		$	10,820		$	369,226		$	155,326		$	27,607		$	664,192
Ending balance December 31, 2010	$	26,225		$	3,826		$	74,342		$	12,369		$	375,054		$	163,951		$	28,943		$	684,710

Nonperforming loans

Nonperforming loans, segregated by class of loans at December 31, as follows:

(in thousands)	2012		2011
Construction	$	14	$	19
Land, Farmland, Agriculture		709		367
Residential / prime		7,152		4,823
Residential / subprime		9,195		17,454
Commercial / Non-residential		1,967		1,879
Consumer		491		113
Commercial and industrial		66		212
Multi Family		0		51
Total	$	19,594	$	24,918

Age analysis of past due loans

An age analysis of past due loans, segregated by class of loans, as of December 31, 2012 were as follows:

(in thousands)	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
Construction	$	0	$	0	$	0	$	0	$	13,815	$	13,815	$	0
Land, Farmland, Ag Loans		65		32		119		216		13,786		14,002		0
Residential / prime		2,316		906		5,212		8,434		210,217		218,651		0
Residential / subprime		2,509		1,181		4,562		8,252		48,993		57,245		0
Commercial		0		0		1,095		1,095		135,784		136,879		0
Consumer		100		1		28		129		3,919		4,048		0
Commercial and industrial		0		0		66		66		42,028		42,094		0
Multi Family		227		0		0		227		79,761		79,988		0
Total	$	5,217	$	2,120	$	11,082	$	18,419	$	548,303	$	566,722	$	0

An age analysis of past due loans, segregated by class of loans, as of December 31, 2011 were as follows:

(in thousands)	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
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

Year-end impaired loans are set forth in the following table:

2012	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Construction	$	14	$	14	$	0	$	0	$	0
Land, Farmland, Ag Loans		558		972		0		584		22
Residential		0		0		0		0		0
Commercial		1,572		1,619		0		1,623		47
Consumer		0		0		0		0		0
Commercial and industrial		0		0		0		0		0
Multi Family		1		661		0		0		0
Total	$	2,145	$	3,266	$	0	$	2,207	$	69
With a related specific allowance recorded:
Construction	$	0	$	0	$	0	$	17	$	1
Land, Farmland, Ag Loans		230		230		68		239		18
Residential		11,107		11,473		500		11,400		377
Commercial		3,674		3,700		369		3,730		178
Consumer		491		518		40		536		17
Commercial and industrial		539		539		25		566		18
Multi Family		4,541		4,541		416		4,587		212
Total	$	20,582	$	21,001	$	1,418	$	21,075	$	821

The Bank’s impaired loan information for 2011 is as follows:

2011	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Construction	$	0	$	0	$	0	$	0	$	0
Land, Farmland, Ag Loans		0		0		0		0		0
Residential		1,945		3,579		0		2,273		7
Commercial		695		2,015		0		703		27
Consumer		0		0		0		0		0
Commercial and industrial		112		151		0		113		2
Multi Family		51		971		0		52		0
Total	$	2,803	$	6,716	$	0	$	3,141	$	36
With a related specific allowance recorded:
Construction	$	19	$	0	$	3	$	0	$	1
Land, Farmland, Ag Loans		1,203		1,216		208		1,276		74
Residential		8,922		9,033		720		8,233		456
Commercial		6,612		6,612		335		4,404		358
Consumer		128		100		41		25		0
Commercial and industrial		396		396		27		304		26
Multi Family		4,633		4,633		426		4,674		259
Total	$	21,913	$	21,990	$	1,760	$	18,916	$	1,174

The Bank’s impaired loan information for 2010 is as follows:

2010	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Construction	$	1,549	$	5,558	$	—	$	3,389	$	—
Land, Farmland, Ag Loans		—		—		—		—		—
Residential		3,122		4,854		—		3,866		19
Commercial		4,122		8,239		—		5,765		6
Consumer		—		—		—		—		—
Commercial and industrial		706		1,208		—		1,035		11
Multi Family		3,180		5,166		—		3,786		3
Total	$	12,679	$	25,025	$	—	$	17,841	$	39
With a related specific allowance recorded:
Construction	$	—	$	—	$	—	$	—	$	—
Land, Farmland, Ag Loans		—		—		—		—		—
Residential		2,706		3,306		256		3,078		—
Commercial		4,503		4,521		1,171		4,589		131
Consumer		—		—		—		—		—
Commercial and industrial		630		630		170		383		—
Multi Family		—		—		—		—		—
Total	$	7,839	$	8,457	$	1,597	$	8,050	$	131

Loans and leases

Loans and leases not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans and leases. Based on the most recent analysis performed, the risk category of loans and leases is as follows:

(Dollars in Thousands)

	Pass		Watch		Special Mention		Substandard		Total(1)
December 31, 2012
Construction	$	10,586	$	3,215	$	0	$	14	$	13,815
Land, Farmland, Ag Loans		13,063		0		0		939		14,002
Commercial		107,065		17,137		6,479		6,198		136,879
Commercial and industrial		39,666		2,256		0		172		42,094
Multi Family		65,142		7,762		3,409		3,675		79,988
Total	$	235,522	$	30,370	$	9,888	$	10,998	$	286,778

(Dollars in Thousands)

	Pass		Watch		Special Mention		Substandard		Total(1)
December 31, 2011
Construction	$	16,263	$	7,594	$	0	$	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 years ended December 31, 2012 and December 31, 2011:

	Loans Modified as a TDR for the Year Ended December 31,  2012				Loans Modified as a TDR for the Year Ended December 31,  2011
Troubled Debt Restructurings (dollars in thousands)	Number of Contracts		Recorded Investment (as of period end)(1)		Number of Contracts		Recorded Investment (as of period end)(1)
Land, Farmland, Ag loans		2	$	623		2	$	1,203
Residential—prime		26		2,891		11		572
Residential—subprime		13		1,413		24		1,944
Commercial		0		0		6		1,472
C Consumer Other		11		439		2		70
Commercial and Industrial		0		0		3		196
Multi-family		1		75		1		1,266
Total		53	$	5,441		49	$	6,723

(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 during, 2012 that subsequently defaulted (i.e., 60 days or more past due following a modification) during the years ended December 31, 2012 and December 31, 2011:

	Loans Modified as a TDR Within the Previous Twelve  Months That Subsequently Defaulted During the Year Ended December 31, 2012				Loans Modified as a TDR Within the Previous Twelve  Months That Subsequently Defaulted During the Year Ended December 31, 2011
(dollars in thousands)	Number of Contracts		Recorded Investment (as of period end) (1)		Number of Contracts		Recorded Investment (as of period end) (1)
Land, Farmland, Ag loans		1	$	65		0	$	0
Residential—prime		8		518		0		0
Residential—subprime		6		561		2		91
Consumer		1		69		1		254
Commercial and Industrial		0		0		1		68
Total		16	$	1,213		44	$	413

(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.