Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2012

Allowance for Loan Losses [Abstract]

Allowance for loan losses, segregated by class of loan

The following tables detail activity in the allowance for loan losses, segregated by class of loan, for the nine month period ended September 30, 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other loan categories and periodically may result in reallocation within the provision categories.

September 30, 2012
	Beginning									Ending
	Balance		Charge-Offs			Recoveries		Provision		Balance
Commercial and Agricultural
Commercial	$	1,071	$	(407	)	$	105	$	153	$	922
Agricultural		297		(3	)		--		--		294
Real Estate
Commercial Construction		3,123		(1,929	)		74		836		2,104
Residential Construction		138		--			--		--		138
Commercial		6,448		(4,273	)		217		4,165		6,557
Residential		3,695		(632	)		9		413		3,485
Farmland		365		(39	)		5		--		331
Consumer and Other
Consumer		205		(75	)		63		60		253
Other		308		(11	)		8		--		305
	$	15,650	$	(7,369	)	$	481	$	5,627	$	14,389

The following table details activity in the allowance for loan losses, segregated by class of loan, for the nine month period ended September 30, 2011. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other loan categories and periodically may result in reallocation within the provision categories.

September 30, 2011
	Beginning										Ending
	Balance		Charge-Offs			Recoveries		Provision			Balance
Commercial and Agricultural
Commercial	$	4,415	$	(718	)	$	124	$	(1,591	)	$	2,230
Agricultural		698		(455	)		401		(257	)		387
Real Estate
Commercial Construction		4,126		(4,218	)		548		4,217			4,673
Residential Construction		520		--			--		(159	)		361
Commercial		8,030		(12,175	)		517		6,730			3,102
Residential		5,942		(1,291	)		120		(910	)		3,861
Farmland		944		(61	)		1		(317	)		567
Consumer and Other
Consumer		3,074		(192	)		123		(1,371	)		1,634
Other		531		(100	)		6		(342	)		95
	$	28,280	$	(19,210	)	$	1,840	$	6,000		$	16,910

Allowance for loan losses, segregated by impairment methodology

The Company determines its individual reserves during its quarterly review of substandard loans. This process involves reviewing all loans with a risk grade of 6 or below and an outstanding balance of $50,000 or more. At September 30, 2012 and 2011, impaired loans totaling $944 and $881 were below the $50,000 review threshold and were not individually reviewed for impairment. Those loans were subject to the bank's general loan loss reserve methodology and are included in the "Collectively Evaluated for Impairment" column of the following tables. Since not all loans in the substandard category are considered impaired, this quarterly assessment often results in the identification of individual reserves which are placed against certain loans as part of management's allowance for loan loss calculation. The total of these loans and the related reserves are presented in the column titled "Substandard Loans Individually Reviewed for Impairment" in the following tables. The following tables present breakdowns of the allowance for loan losses, segregated by impairment methodology for September 30, 2012 and 2011:

September 30, 2012
					Ending Allowance Balance
	Nonaccrual/TDR		Substandard		Total
	Individually		Individually		Individually		Collectively
	Evaluated for		Evaluated for		Evaluated for		Evaluated for
	Impairment		Impairment		Impairment		Impairment		Total
Commercial and Agricultural
Commercial	$	514	$	214	$	728	$	194	$	922
Agricultural		--		--		--		294		294
Real Estate
Commercial Construction		1,786		58		1,844		260		2,104
Residential Construction		--		--		--		138		138
Commercial		864		376		1,240		5,317		6,557
Residential		1,050		566		1,616		1,869		3,485
Farmland		--		--		--		331		331
Consumer and Other
Consumer		--		--		--		253		253
Other		--		--		--		305		305
Total End of Period Allowance Balance	$	4,214	$	1,214	$	5,428	$	8,961	$	14,389

September 30, 2012
					Ending Loan Balance
	Nonaccrual/TDR		Substandard		Total
	Individually		Individually		Individually		Collectively
	Evaluated for		Evaluated for		Evaluated for		Evaluated for
	Impairment		Impairment		Impairment		Impairment		Total
Commercial and Agricultural
Commercial	$	1,701	$	2,390	$	4,091	$	50,190	$	54,281
Agricultural		--		--		--		12,594		12,594
Real Estate
Commercial Construction		18,743		1,793		20,536		33,516		54,052
Residential Construction		--		--		--		6,038		6,038
Commercial		34,165		6,069		40,234		271,159		311,393
Residential		7,751		2,900		10,651		186,608		197,259
Farmland		2,277		263		2,540		46,938		49,478
Consumer and Other
Consumer		11		6		17		29,568		29,585
Other		--		18		18		11,824		11,842
Total End of Period Loan Balance	$	64,648	$	13,439	$	78,087	$	648,435	$	726,522

September 30, 2011
					Ending Allowance Balance
	Nonaccrual/TDR		Substandard		Total
	Individually		Individually		Individually		Collectively
	Evaluated for		Evaluated for		Evaluated for		Evaluated for
	Impairment		Impairment		Impairment		Impairment		Total
Commercial and Agricultural
Commercial	$	39	$	647	$	686	$	1,544	$	2,230
Agricultural		7		--		7		380		387
Real Estate
Commercial Construction		4,323		256		4,579		94		4,673
Residential Construction		--		--		--		361		361
Commercial		689		408		1,097		2,005		3,102
Residential		2,036		958		2,994		867		3,861
Farmland		--		11		11		556		567
Consumer and Other
Consumer		5		63		68		1,566		1,634
Other		--		--		--		95		95
Total End of Period Allowance Balance	$	7,099	$	2,343	$	9,442	$	7,468	$	16,910

September 30, 2011
					Ending Loan Balance
	Nonaccrual/TDR		Substandard		Total
	Individually		Individually		Individually		Collectively
	Evaluated for		Evaluated for		Evaluated for		Evaluated for
	Impairment		Impairment		Impairment		Impairment		Total
Commercial and Agricultural
Commercial	$	1,609	$	2,881	$	4,490	$	47,162	$	51,652
Agricultural		152		221		373		13,399		13,772
Real Estate
Commercial Construction		29,064		1,650		30,714		32,390		63,104
Residential Construction		--		--		--		2,628		2,628
Commercial		34,888		4,533		39,421		280,701		320,122
Residential		8,692		4,970		13,662		181,771		195,433
Farmland		487		380		867		46,819		47,686
Consumer and Other
Consumer		16		40		56		30,882		30,938
Other		--		31		31		15,633		15,664
Total End of Period Loan Balance	$	74,908	$	14,706	$	89,614	$	651,385	$	740,999