Loans (Tables)

3 Months Ended

Mar. 31, 2015

Loan balances were as follows:

(In Thousands of Dollars)	March 31, 2015			December 31, 2014
Commercial real estate
Owner occupied	$	77,720		$	74,829
Non-owner occupied		125,254			122,228
Other		29,016			26,137
Commercial		122,762			120,493
Residential real estate
1-4 family residential		154,076			153,055
Home equity lines of credit		32,310			31,255
Consumer
Indirect		118,065			120,931
Direct		8,888			9,071
Other		3,552			3,626
Subtotal	$	671,643		$	661,625
Net deferred loan costs		2,141			2,227
Allowance for loan losses		(7,723	)		(7,632	)
Net loans	$	666,061		$	656,220

Activity in the Allowance for Loan Losses by Portfolio Segment

The following tables present the activity in the allowance for loan losses by portfolio segment for the three month periods ended March 31, 2015 and 2014:

Three Months Ended March 31, 2015

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Unallocated			Total
Allowance for loan losses
Beginning balance	$	2,676		$	1,420		$	1,689		$	1,663		$	184		$	7,632
Provision for loan losses		232			(70	)		10			352			(74	)		450
Loans charged off		(4	)		0			(81	)		(533	)		0			(618	)
Recoveries		13			1			22			223			0			259
Total ending allowance balance	$	2,917		$	1,351		$	1,640		$	1,705		$	110		$	7,723

Three Months Ended March 31, 2014

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Unallocated		Total
Allowance for loan losses
Beginning balance	$	2,752		$	1,219		$	1,964		$	1,419		$	214	$	7,568
Provision for loan losses		22			(162	)		(228	)		518			180		330
Loans charged off		(57	)		0			(70	)		(709	)		0		(836	)
Recoveries		34			8			15			268			0		325
Total ending allowance balance	$	2,751		$	1,065		$	1,681		$	1,496		$	394	$	7,387

Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2015 and December 31, 2014. The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees and costs, but excludes accrued interest receivable, which is not considered to be material:

March 31, 2015

(In Thousands of Dollars)	Commercial Real Estate		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	735	$	219	$	101	$	0	$	0	$	1,055
Collectively evaluated for impairment		2,182		1,132		1,539		1,705		110		6,668
Total ending allowance balance	$	2,917	$	1,351	$	1,640	$	1,705	$	110	$	7,723

Loans:
Loans individually evaluated for impairment	$	7,080	$	1,088	$	3,608	$	100	$	0	$	11,876
Loans collectively evaluated for impairment		224,240		121,335		182,326		134,007		0		661,908
Total ending loans balance	$	231,320	$	122,423	$	185,934	$	134,107	$	0	$	673,784

December 31, 2014

(In Thousands of Dollars)	Commercial Real Estate		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	514	$	272	$	88	$	0	$	0	$	874
Collectively evaluated for impairment		2,162		1,148		1,601		1,663		184		6,758
Total ending allowance balance	$	2,676	$	1,420	$	1,689	$	1,663	$	184	$	7,632

Loans:
Loans individually evaluated for impairment	$	7,139	$	1,940	$	3,425	$	93	$	0	$	12,597
Loans collectively evaluated for impairment		215,434		118,210		180,428		137,183		0		651,255
Total ending loans balance	$	222,573	$	120,150	$	183,853	$	137,276	$	0	$	663,852

Loans Individually Evaluated for Impairment by Class of Loans

The following tables present information related to impaired loans by class of loans as of March 31, 2015 and December 31, 2014:

(In Thousands of Dollars)	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
March 31, 2015
With no related allowance recorded:
Commercial real estate
Owner occupied	$	2,437	$	2,302	$	0
Non-owner occupied		385		384		0
Commercial		440		419		0
Residential real estate
1-4 family residential		2,360		2,137		0
Home equity lines of credit		296		281		0
Consumer		175		100		0
Subtotal		6,093		5,623		0

With an allowance recorded:
Commercial real estate
Owner occupied		2,870		2,863		671
Non-owner occupied		1,532		1,531		64
Commercial		686		669		219
Residential real estate
1-4 family residential		1,126		1,101		98
Home equity lines of credit		89		89		3
Subtotal		6,303		6,253		1,055
Total	$	12,396	$	11,876	$	1,055

(In Thousands of Dollars)	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
December 31, 2014
With no related allowance recorded:
Commercial real estate
Owner occupied	$	2,448	$	2,318	$	0
Non-owner occupied		391		391		0
Commercial		531		511		0
Residential real estate
1-4 family residential		2,421		2,156		0
Home equity lines of credit		476		251		0
Consumer		185		93		0
Subtotal		6,452		5,720		0

With an allowance recorded:
Commercial real estate
Owner occupied		2,882		2,882		446
Non-owner occupied		1,548		1,548		68
Commercial		1,444		1,429		272
Residential real estate
1-4 family residential		944		928		85
Home equity lines of credit		90		90		3
Subtotal		6,908		6,877		874
Total	$	13,360	$	12,597	$	874

Average Recorded Investment By Class

The following table presents the average recorded investment in impaired loans by class and interest income recognized by loan class for the three month periods ended March 31, 2015 and 2014:

	Average Recorded Investment				Interest Income Recognized
	For Three Months Ended March 31,				For Three Months Ended March 31,
(In Thousands of Dollars)	2015		2014		2015		2014
With no related allowance recorded:
Commercial real estate
Owner occupied	$	2,311	$	2,575	$	16	$	5
Non-owner occupied		387		391		6		0
Other		0		0		0		0
Commercial		463		931		6		5
Residential real estate
1-4 family residential		2,125		1,332		31		14
Home equity lines of credit		251		115		3		2
Consumer		91		239		4		0
Subtotal		5,628		5,583		66		26

With an allowance recorded:
Commercial real estate
Owner occupied		2,870		1,654		24		25
Non-owner occupied		1,537		1,586		20		20
Commercial		1,117		1,391		1		1
Residential real estate
1-4 family residential		983		1,390		9		11
Home equity lines of credit		90		146		1		1
Consumer		-		0		0		0
Subtotal		6,597		6,167		55		58
Total	$	12,225	$	11,750	$	121	$	84

Schedule of Investment in Nonaccrual and Loans Past Due 90 Days or More Still on Accrual by Class of Loans

The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of March 31, 2015 and December 31, 2014:

	March 31, 2015				December 31, 2014
(In Thousands of Dollars)	Nonaccrual		Loans Past Due 90 Days or More Still Accruing		Nonaccrual		Loans Past Due 90 Days or More Still Accruing
Commercial real estate
Owner occupied	$	3,259	$	0	$	3,315	$	44
Non-owner occupied		38		0		41		0
Commercial		833		0		1,645		0
Residential real estate
1-4 family residential		2,946		289		2,742		195
Home equity lines of credit		170		79		139		40
Consumer
Indirect		88		200		90		193
Direct		32		0		36		0
Other		0		5		0		1
Total	$	7,366	$	573	$	8,008	$	473

Schedule of Investment in Past Due Loans

The following table presents the aging of the recorded investment in past due loans as of March 31, 2015 and December 31, 2014 by class of loans:

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
March 31, 2015
Commercial real estate
Owner occupied	$	0	$	0	$	3,259	$	3,259	$	74,246	$	77,505
Non-owner occupied		0		0		38		38		124,891		124,929
Other		0		0		0		0		28,886		28,886
Commercial		145		0		833		978		121,445		122,423
Residential real estate
1-4 family residential		1,677		422		3,235		5,334		148,289		153,623
Home equity lines of credit		138		81		249		468		31,843		32,311
Consumer
Indirect		1,447		347		288		2,082		119,585		121,667
Direct		37		27		32		96		8,792		8,888
Other		19		3		5		27		3,525		3,552
Total	$	3,463	$	880	$	7,939	$	12,282	$	661,502	$	673,784

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
December 31, 2014
Commercial real estate
Owner occupied	$	0	$	0	$	3,359	$	3,359	$	71,272	$	74,631
Non-owner occupied		0		0		41		41		121,872		121,913
Other		0		0		0		0		26,029		26,029
Commercial		0		0		1,645		1,645		118,505		120,150
Residential real estate								0				-
1-4 family residential		1,892		546		2,937		5,375		147,223		152,598
Home equity lines of credit		205		92		179		476		30,779		31,255
Consumer								0				-
Indirect		2,136		406		283		2,825		121,754		124,579
Direct		108		18		36		162		8,909		9,071
Other		17		6		1		24		3,602		3,626
Total	$	4,358	$	1,068	$	8,481	$	13,907	$	649,945	$	663,852