Credit Quality Indicators:

3 Months Ended

Mar. 31, 2012

Credit Quality Indicators: [Abstract]

Credit Quality Indicators:

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company establishes a risk rating at origination for all commercial loan and commercial real estate relationships. For relationships over $300 thousand management monitors the loans on an ongoing basis for any changes in the borrower’s ability to service their debt. Management also affirms the risk ratings for the loans and leases in their respective portfolios on an annual basis. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of March 31, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

(In Thousands of Dollars) March 31, 2012	Pass		Special Mention		Sub-standard		Doubtful		Not Rated		Total
Commercial real estate
Owner occupied	$	80,445	$	4,570	$	12,349	$	46	$	0	$	97,410
Non-owner occupied		76,708		3,781		8,418		0		0		88,907
Other		17,895		299		1,988		0		0		20,182
Commercial		66,982		6,110		2,989		179		0		76,260
Total	$	242,030	$	14,760	$	25,744	$	225	$	0	$	282,759

(In Thousands of Dollars) December 31, 2011	Pass		Special Mention		Sub-standard		Doubtful		Not Rated		Total
Commercial real estate
Owner occupied	$	80,770	$	6,359	$	13,201	$	51	$	0	$	100,381
Non-owner occupied		68,806		2,575		8,942		0		0		80,323
Other		14,491		301		2,545		0		0		17,337
Commercial		65,198		5,963		3,454		260		0		74,875
Total	$	229,265	$	15,198	$	28,142	$	311	$	0	$	272,916

The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential, consumer and indirect loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential, consumer and indirect auto loans based on payment activity as of March 31, 2012 and December 31, 2011. Nonperforming loans are loans past due 90 days and still accruing interest and nonaccrual loans.

	Residential Real Estate				Consumer
(In Thousands of Dollars) March 31, 2012	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
Performing	$	137,896	$	21,161	$	117,466	$	11,285	$	1,306
Nonperforming		4,390		291		47		16		10
Total	$	142,286	$	21,452	$	117,513	$	11,301	$	1,316

	Residential Real Estate				Consumer
(In Thousands of Dollars) December 31, 2011	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
Performing	$	140,070	$	21,644	$	118,617	$	11,583	$	1,518
Nonperforming		4,018		299		126		13		2
Total	$	145,088	$	21,943	$	118,743	$	11,596	$	1,520