Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2013

Allowance for loan losses for the three and six months period ending of June 30, 2013 and 2012 are summarized as follows:


(in thousands)	Construction			Land, Farm & Ag Loans			Residential			Commercial & Non- Residential Real Estate			Consumer			Commercial & Industrial			Multi- Family			Total
Allowance for credit losses:
Beginning balance December 31, 2012	$	115		$	373		$	6,980		$	2,011		$	162		$	1,075		$	1,431		$	12,147

Charge-offs		0			0			(1,447	)		(291	)		(277	)		0			(5	)		(2,020	)
Recoveries		0			2			237			2			82			6			0			329
Provision		(29	)		210			110			341			332			(702	)		(162	)		100

Ending balance June 30, 2013	$	86		$	585		$	5,880		$	2,063		$	299		$	379		$	1,264		$	10,556

Beginning balance March 31, 2013	$	122		$	418		$	6,680		$	1,677		$	230		$	1,192		$	1,213		$	11.532

Charge-offs		0			0			(814	)		(186	)		(162	)		0			0			(1,162	)
Recoveries		0			1			117			1			61			6			0			186
Provision		(36	)		166			(103	)		571			170			(819	)		51			0

Ending balance June 30, 2013	$	86		$	585		$	5,880		$	2,063		$	299		$	379		$	1,264		$	10,556

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


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

Ending balance
Individually evaluated for impairment	$	0		$	13		$	675		$	229		$	78		$	10		$	450		$	1455
Collectively evaluated for impairment		21			221			815			572			5,506			1,834			132			9,101
Portfolio balances:
Individually evaluated for impairment
With no related allowance	$	12		$	458		$	150		$	1,066		$	0		$	65		$	0		$	1,739
With related allowance		0			222			11,530			2,580			402			90			6,072			20,896
Collectively evaluated for impairment		11,402			16,084			253,802			138,696			4,295			50,023			74,521			548,835

Ending balance June 30, 2013	$	11,414		$	16,764		$	265,482		$	142,342		$	4,697		$	50,178		$	80,593		$	571,470

(in thousands)	Construction			Land, Farm & Ag Loans			Residential			Commercial & Non- Residential			Consumer			Commercial & Industrial			Multi- Family			Total
Allowance for credit losses:
Beginning balance December 31, 2011	$	35		$	554		$	8,277		$	2,565		$	80		$	537		$	2,484		$	14,532
Charge-offs		0			(356	)		(1,227	)		(65	)		(2	)		(51	)		(11	)		(1,712	)
Recoveries		0			3			110			36			1			64			9			223
Provision		519			567			(764	)		1,582			(30	)		62			(794	)		1,142

Ending balance June 30, 2012	$	554		$	768		$	6,396		$	4,118		$	49		$	612		$	1,688		$	14,185

Ending balance
Individually evaluated for impairment	$	4		$	25		$	481		$	540		$	18		$	59		$	406		$	1,533
Collectively evaluated for impairment		550			743			5,915			3,578			31			553			1,282			12,652
Portfolio balances:
Individually evaluated for impairment
With no related allowance		0			666			507			504			0			100			0			1,777
With related allowance		17			238			11,651			8,232			259			358			4,588			25,343

Collectively evaluated for impairment		24,589			15,579			285,028			150,145			3,663			35,703			71,963			586,670

Ending balance June 30, 2012	$	24,606		$	16,483		$	297,186		$	158,881		$	3,922		$	36,161		$	76,551		$	613,790

Non Accrual Loans

The following table details non-accrual loans at June 30, 2013 and December 31, 2012:


(in thousands)	2013		2012
Construction	$	12	$	14
Land, Farmland, Agriculture		672		709
Residential / prime		6,172		7,152
Residential / subprime		6,987		9,195
Commercial / Non-residential		1,367		1,967
Consumer		420		491
Commercial and industrial		65		66
Multi Family		0		0

Total	$	15,695	$	19,594

Age Analysis of Past Due Loans

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


June 30, 2013	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	$	11,414	$	11,414	$	0
Land, Farmland, Ag Loans		0		0		182		182		16,582		16,764		0
Residential / prime		1,954		277		3,783		6,014		205,394		211,408		0
Residential / subprime		2,015		665		3,916		6,596		47,478		54,074		0
Commercial		37		0		1,066		1,103		141,239		142,342		0
Consumer		7		1		33		41		4,657		4,697		0
Commercial and industrial		0		0		65		65		50,113		50,178		0
Multi Family		0		0		0		0		80,592		80,593		0

Total	$	4,013	$	943	$	9,045	$	14,001	$	557,469	$	571,470	$	0


December 31, 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	$	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

Impaired Loans

Impaired loans are set forth in the following table:


	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
(in thousands)	June 30, 2013						December 31, 2012
With no related allowance recorded:
Construction	$	12	$	12	$	0	$	14	$	14	$	0
Land, Farmland, Ag Loans		458		872		0		558		972		0
Residential		150		197		0		0		0		0
Commercial		1,066		1,377		0		1,572		1,619		0
Commercial and industrial		65		65		0		0		0		0
Multi Family		0		0		0		1		661		0

Total	$	1,751	$	2,523	$	0	$	2,145	$	2,535	$	0

With a related specific allowance recorded:
Land, Farmland, Ag Loans	$	222	$	222	$	13	$	230	$	230	$	68
Residential		11,530		11,717		675		11,107		11,473		500
Commercial		2,580		2,580		229		3,674		3,700		369
Consumer		402		449		78		491		518		40
Commercial and industrial		90		90		10		539		539		25
Multi Family		6,072		6,072		450		4,541		4,541		416

Total	$	20,896	$	21,130	$	1,455	$	20,582	$	21,001	$	1,418


	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
(in thousands)	3 Months Ended June 30, 2013				3 Months Ended June 30, 2012
With no related allowance recorded:
Construction	$	0	$	0	$	0	$	0
Land, Farmland, Ag Loans		458		3		1,024		1
Residential		153		0		567		0
Commercial and non-residential		1,162		5		504		0
Consumer		0		0		0		0
Commercial and industrial		65		0		103		0
Multi Family		0		0		0		0

Total	$	1,838	$	8	$	2,198	$	1

With a related specific allowance recorded:
Construction	$	13	$	0	$	19	$	0
Land, Farmland, Ag Loans		223		3		246		2
Residential		11,605		107		11,856		94
Commercial and non-residential		2,593		36		8,104		127
Consumer		452		1		298		2
Commercial and industrial		94		2		389		5
Multi Family		6,083		75		4,622		54

Total	$	21,063	$	224	$	25,534	$	284


	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Investment Income Recognized
(in thousands)	6 Months Ended June 30, 2013				6 Months Ended June 30, 2012
With no related allowance recorded:
Construction	$	0	$	0	$	0	$	0
Land, Farmland, Ag Loans		508		7		667		16
Residential		154		0		551		0
Commercial and non-residential		1,073		0		504		0
Consumer		0		0		0		0
Commercial and industrial		65		0		102		0
Multi Family		0		0		0		0

Total	$	1,800	$	7	$	1,824	$	16

With a related specific allowance recorded:
Construction	$	13	$	0	$	18	$	0
Land, Farmland, Ag Loans		226		7		243		9
Residential		11,617		219		11,756		194
Commercial and non-residential		2,605		72		8,361		253
Consumer		478		3		280		8
Commercial and industrial		98		3		377		12
Multi Family		6,096		146		4,611		107

Total	$	21,133	$	450	$	25,646	$	583

Non Homogenous Loans and Leases

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

(In Thousands)


June 30, 2013	Pass		Watch		Special Mention		Substandard		Total⁽¹⁾
Construction	$	4,854	$	6,548	$	0	$	12	$	11,414
Land, Farmland, Ag Loans		15,159		775		0		830		16,764
Commercial		115,788		12,406		8,122		6,026		142,342
Commercial and industrial		49,466		17		540		155		50,178
Multi Family		71,215		4,411		1,546		3,421		80,593

Total	$	256,482	$	24,157	$	10,208	$	10,444	$	301,291


December 31, 2012	Pass		Watch		Special Mention		Substandard		Total⁽¹⁾
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

⁽¹⁾	There were no doubtful loans as of June 30, 2013 or December 31, 2012.

Loans Modified in TDR

The following presents by class, information related to loans modified in a TDR during the three and six months ended June 30, 2013.


	Loans Modified as a TDR for the				Loans Modified as a TDR for the
	Three Months Ended June 30, 2013				Six Months Ended June 30, 2013
Troubled Debt Restructurings ⁽¹⁾ (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	$	458		1	$	458
Residential - prime		4		123		7		894
Residential - subprime		3		172		5		519
Consumer Other		1		14		2		17
Multi Family⁽²⁾		1		1,818		2		3,396

Total		10	$	2,585		17	$	5,284

⁽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.

⁽²⁾	Renewals of existing TDRs.

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


	Loans Modified as a TDR for the				Loans Modified as a TDR for the
	Three Months Ended June 30, 2012				Six Months Ended June 30, 2012
Troubled Debt Restructurings ⁽¹⁾ (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	$	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, 2012 through June 30, 2013 that subsequently defaulted (i.e., 60 days or more past due following a modification) during the three and six months ended June 30, 2013.


	Loans Modified as a TDR Within the Previous Twelve Months That Subsequently Defaulted During the Three Months Ended June 30, 2013				Loans Modified as a TDR Within the Previous Twelve Months That Subsequently Defaulted During the Six Months Ended June 30, 2013
(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		2	$	94		2	$	94

Total		2	$	94		2	$	94

⁽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 Six 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.