Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2013

Allowance for loan losses for the three and nine months period ending of September 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			(9	)		(1,854	)		(293	)		(394	)		0			(5	)		(2,555	)
Recoveries		0			10			480			9			83			6			0			588
Provision		49			(77	)		(220	)		11			504			(667	)		(109	)		(509	)

Ending balance September 30, 2013	$	164		$	297		$	5,386		$	1,738		$	355		$	414		$	1,317		$	9,671

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

Charge-offs		0			(9	)		(425	)		(2	)		(99	)		0			0			(535	)
Recoveries		0			8			244			7			0			0			0			259
Provision		78			(287	)		(313	)		(330	)		155			35			53			(609	)

Ending balance September 30, 2013	$	164		$	297		$	5,386		$	1,738		$	355		$	414		$	1,317		$	9,671

Beginning balance December 31, 2011	$	35		$	554		$	8,277		$	2,565		$	80		$	537		$	2,484		$	14,532
Charge-offs		0			(358	)		(1,931	)		(79	)		(130	)		(58	)		(11	)		(2,567	)
Recoveries		0			5			164			684			17			65			9			944
Provision		502			273			(168	)		406			134			861			(409	)		1,599

Ending balance September 30, 2012	$	537		$	474		$	6,342		$	3,576		$	101		$	1,405		$	2,073		$	14,508

Beginning balance June 30, 2012	$	554		$	768		$	6,396		$	4,118		$	49		$	612		$	1,688		$	14,185
Charge-offs		0			(2	)		(704	)		(14	)		(128	)		(7	)		0			(855	)
Recoveries		0			2			54			648			16			1			0			721
Provision		(17	)		(294	)		596			(1,176	)		164			(799	)		385			457

Ending balance September 30, 2012	$	537		$	474		$	6,342		$	3,576		$	101		$	1,405		$	2,073		$	14,508


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

Ending balance September 30, 2013
Individually evaluated for impairment	$	0		$	32		$	608		$	246		$	113		$	8		$	708		$	1,715
Collectively evaluated for impairment		164			265			4,778			1,492			242			406			609			7,956
Portfolio balances:
Individually evaluated for impairment
With no related allowance	$	10		$	458		$	127		$	36		$	0		$	32		$	0		$	663
With related allowance		0			273			11,369			3,232			392			82			6,643			21,991
Collectively evaluated for impairment		22,255			16,377			257,773			136,270			4,979			54,756			71,610			564,020

Ending balance September 30, 2013	$	22,266		$	17,108		$	269,267		$	139,538		$	5,371		$	54,871		$	78,253		$	586,674

Ending balance September 30, 2012
Individually evaluated for impairment	$	1		$	100		$	595		$	524		$	39		$	34		$	406		$	1,699
Collectively evaluated for impairment		537			374			5,747			3,052			62			1,371			1,666			12,809
Portfolio balances:
Individually evaluated for impairment
With no related allowance		0			0			589			1,143			0			66			0			1,798
With related allowance		16			900			10,825			5,949			526			492			4,565			23,273

Collectively evaluated for impairment		29,635			13,241			272,680			143,589			3,550			38,092			68,172			568,959

Ending balance September 30, 2012	$	29,651		$	14,141		$	284,094		$	150,681		$	4,076		$	38,650		$	72,737		$	594,030

Non Accrual Loans

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


(in thousands)	September 30, 2013		December 31, 2012
Construction	$	10	$	14
Land, Farmland, Agriculture		607		709
Residential / prime		6,215		7,152
Residential / subprime		6,519		9,195
Commercial and non-residential		1,080		1,967
Consumer		395		491
Commercial and industrial		34		66
Multi Family		0		0

Total	$	14,860	$	19,594

Age Analysis of Past Due Loans

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


September 30, 2013 (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	$	22,266	$	22,266	$	0
Land, Farmland, Ag Loans		31		0		0		31		17,077		17,108		0
Residential/prime		1,233		648		3,584		5,465		211,237		216,702		0
Residential/subprime		1,606		533		3,554		5,693		46,872		52,565		0
Commercial and non-residential		58		0		778		836		138,702		139,538		0
Consumer		36		1		7		44		5,327		5,371		0
Commercial and industrial		7		0		2		9		54,862		54,871		0
Multi Family		614		0		0		614		77,639		78,253		0

Total	$	3,585	$	1,182	$	7,925	$	12,692	$	573,982	$	586,674	$	0


December 31, 2012 (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 and non-residential		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)	September 30, 2013						December 31, 2012
With no related allowance recorded:
Construction	$	11	$	11	$	0	$	14	$	14	$	0
Land, Farmland, Ag Loans		458		872		0		558		972		0
Residential		126		172		0		0		0		0
Commercial and non-residential		36		222		0		1,572		1,619		0
Commercial and industrial		32		32		0		0		0		0
Multi Family		0		661		0		1		661		0

Total	$	663	$	1,970	$	0	$	2,145	$	3,266	$	0

With a related specific allowance recorded:
Land, Farmland, Ag Loans	$	273	$	273	$	32	$	230	$	230	$	68
Residential		11,369		11,552		608		11,107		11,473		500
Commercial and non-residential		3,232		3,281		246		3,674		3,700		369
Consumer		392		392		113		491		518		40
Commercial and industrial		82		82		8		539		539		25
Multi Family		6,643		6,643		708		4,541		4,541		416

Total	$	21,991	$	22,223	$	1,715	$	20,582	$	21,001	$	1,418


	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
(in thousands)	3 Months Ended September 30, 2013				3 Months Ended September 30, 2012
With no related allowance recorded:
Construction	$	11	$	0	$	0	$	0
Land, Farmland, Ag Loans		458		7		0		0
Residential		138		0		619		1
Commercial and non-residential		153		0		1,170		36
Consumer		0		0		0		0
Commercial and industrial		49		0		66		0
Multi Family		0		0		0		0

Total	$	809	$	0	$	1,855	$	37

With a related specific allowance recorded:
Construction	$	0	$	0	$	16	$	0
Land, Farmland, Ag Loans		275		3		902		25
Residential		11,494		107		10,954		186
Commercial and non-residential		3,249		36		5,544		163
Consumer		397		1		553		12
Commercial and industrial		86		2		308		4
Multi Family		6,667		75		4,577		107

Total	$	22,168	$	224	$	22,854	$	497


	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Investment Income Recognized
(in thousands)	9 Months Ended September 30, 2013				9 Months Ended September 30, 2012
With no related allowance recorded:
Construction	$	11	$	0	$	0	$	0
Land, Farmland, Ag Loans		483		10		0		0
Residential		129		1		551		0
Commercial and non-residential		95		0		504		0
Consumer		0		0		0		0
Commercial and industrial		33		0		102		0
Multi Family		0		0		0		0

Total	$	751	$	11	$	1,157	$	0

With a related specific allowance recorded:
Construction	$	0	$	0	$	18	$	0
Land, Farmland, Ag Loans		276		10		243		9
Residential		11,468		339		11,756		194
Commercial and non-residential		3,256		104		8,361		253
Consumer		433		5		280		8
Commercial and industrial		88		4		377		12
Multi Family		6,670		252		4,611		107

Total	$	22,191	$	714	$	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) September 30, 2013	Pass		Watch		Special Mention		Substandard		Total⁽¹⁾
Construction	$	16,760	$	5,496	$	0	$	10	$	22,266
Land, Farmland, Ag Loans		15,570		775		0		763		17,108
Commercial/Non Residential		115,793		11,951		7,563		4,231		139,538
Commercial and industrial		54,741		14		0		116		54,871
Multi Family		68,977		4,352		1,516		3,408		78,253

Total	$	271,841	$	22,588	$	9,079	$	8,528	$	312,036



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/Non Residential		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 September 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 nine months ended September 30, 2013.


	Loans Modified as a TDR for the				Loans Modified as a TDR for the
	Three Months Ended September 30, 2013				Nine Months Ended September 30, 2013
Troubled Debt Restructurings ⁽¹⁾	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		3	$	576
Residential—prime		6		376		11		1,253
Residential—subprime		4		171		11		1,159
Commercial		2		591		3		798
C Consumer Other		0		0		2		15
C Commercial and Industrial		1		7		1		7
Multi Family ⁽²⁾		0		0		2		3,371

Total		13	$	1,145		33	$	7,179

⁽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 TDRSs.

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 ⁽¹⁾	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		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, 2012 through September 30, 2013 that subsequently defaulted (i.e., 60 days or more past due following a modification) during the three and nine months ended September 30, 2013.


	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, 2013				Nine Months Ended September 30, 2013
			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	$	40		1	$	40
Residential – subprime		1		75		1		75
Consumer		1		7		1		7

Total		3	$	122		3	$	122

⁽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 six 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				Nine 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.