Loans and the Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2013

Loans and the Allowance for Loan Losses [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The following table sets forth the composition of the Corporation’s loan portfolio including net deferred fees and costs, at December 31, 2013 and 2012, respectively:

	2013		2012
	(Dollars in Thousands)
Commercial and industrial	$	229,688	$	181,682
Commercial real estate		536,539		497,392
Construction		42,722		40,277
Residential mortgage		150,571		169,094
Installment		1,084		1,104
Subtotal		960,604		889,549
Net deferred loan costs		339		123
Total loans	$	960,943	$	889,672

Schedule of Future Minimum Lease Payments for Capital Leases

Minimum future lease receipts of the direct financing lease are as follows:

For years ending December 31,	(Dollars in Thousands)
2014	$	216
2015		228
2016		265
2017		265
2018		265
Thereafter		2,511
Total minimum future lease receipts	$	3,750

Loans Receivable on Non-Accrual Status

The following table presents information about loan receivables on non-accrual status at December 31, 2013 and 2012:

	2013		2012
	(Dollars in Thousands)
Commercial and industrial	$	753	$	214
Commercial real estate		744		354
Construction		—		319
Residential mortgage		1,640		2,729
Total loans receivable on non-accrual status	$	3,137	$	3,616

Credit Quality Indicators

The following table presents information about the loan credit quality at December 31, 2013 and 2012:

Credit Quality Indicators

	December 31, 2013
	(Dollars in Thousands)
	Pass		Special Mention		Substandard		Doubtful		Total
Commercial and industrial	$	226,013	$	1,719	$	1,284	$	672	$	229,688
Commercial real estate		509,679		14,544		12,316		—		536,539
Construction		41,492		—		1,230		—		42,722
Residential mortgage		147,379		978		2,214		—		150,571
Installment		964		—		120		—		1,084
Total loans	$	925,527	$	17,241	$	17,164	$	672	$	960,604

Credit Quality Indicators

	December 31, 2012
	(Dollars in Thousands)
	Pass		Special Mention		Substandard		Doubtful		Total
Commercial and industrial	$	176,818	$	3,281	$	1,583	$	—	$	181,682
Commercial real estate		462,266		18,945		16,181		—		497,392
Construction		38,303		810		1,164		—		40,277
Residential mortgage		163,769		993		4,332		—		169,094
Installment		967		—		137		—		1,104
Total loans	$	842,123	$	24,029	$	23,397	$	—	$	889,549

Analysis of Impaired Loans

The following table provides an analysis of the impaired loans at December 31, 2013 and 2012:

	December 31, 2013
	(Dollars in Thousands)
No Related Allowance Recorded	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Commercial and industrial	$	449	$	449	$	—	$	494	$	25
Commercial real estate		10,482		10,783		—		10,658		496
Residential mortgage		1,858		2,000		—		1,892		94
Installment		120		120		—		128		6
Total	$	12,909	$	13,352	$	—	$	13,172	$	621

With An Allowance Recorded	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Commercial and industrial	$	672	$	672	$	300	$	687	$	43
Commercial real estate		4,344		4,344		115		4,359		200
Total	$	5,016	$	5,016	$	415	$	5,046	$	243
Total
Commercial and industrial	$	1,121	$	1,121	$	300	$	1,181	$	68
Commercial real estate		14,826		15,127		115		15,017		696
Residential mortgage		1,858		2,000		—		1,892		94
Installment		120		120		—		128		6
Total (including related     allowance)	$	17,925	$	18,368	$	415	$	18,218	$	864

	December 31, 2012
	(Dollars in Thousands)
No Related Allowance Recorded	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Commercial and industrial	$	731	$	731	$	—	$	834	$	46
Commercial real estate		5,886		6,187		—		6,182		349
Construction		3,600		3,600		—		3,600		92
Residential mortgage		422		422		—		439		22
Total	$	10,639	$	10,940	$	—	$	11,055	$	509

With An Allowance Recorded	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Commercial real estate	$	4,180	$	4,180	$	493	$	4,179	$	138
Residential mortgage		1,255		1,255		152		1,289		40
Total	$	5,435	$	5,435	$	645	$	5,468	$	178
Total
Commercial and industrial	$	731	$	731	$	—	$	834	$	46
Commercial real estate		10,066		10,367		493		10,361		487
Construction		3,600		3,600		—		3,600		92
Residential mortgage		1,677		1,677		152		1,728		62
Total (including related     allowance)	$	16,074	$	16,375	$	645	$	16,523	$	687

Aging Analysis

The following table provides an analysis of the aging of loans, excluding deferred fees and costs, that are past due at December 31, 2013 and 2012:

Aging Analysis

	December 31, 2013
	(Dollars in Thousands)
	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable > 90 Days And Accruing
Commercial and     Industrial	$	18	$	—	$	753	$	771	$	228,917	$	229,688	$	—
Commercial Real     Estate		221		—		744		965		535,574		536,539		—
Construction		—		—		—		—		42,722		42,722		—
Residential     Mortgage		990		258		1,640		2,888		147,683		150,571		—
Installment		5		—		—		5		1,079		1,084		—
Total	$	1,234	$	258	$	3,137	$	4,629	$	955,975	$	960,604	$	—

Aging Analysis

	December 31, 2012
	(Dollars in Thousands)
	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Loans Receivable > 90 Days And Accruing
Commercial and     Industrial	$	590	$	—		216		806	$	180,876	$	181,682	$	—
Commercial Real     Estate		1,012		703		354		2,069		495,323		497,392		—
Construction		—		—		319		319		39,958		40,277		—
Residential     Mortgage		2,017		628		2,784		5,429		163,665		169,094		55
Installment		23		—		—		23		1,081		1,104		—
Total	$	3,642	$	1,331	$	3,673	$	8,646	$	880,903	$	889,549	$	55

Allowance for Loan and Lease Losses

The following table details the amount of loans receivable that are evaluated individually, and collectively, for impairment, and the related portion of the allowance for loan loss that is allocated to each loan portfolio segment:

Allowance for loan and lease losses

	December 31, 2013 (Dollars in Thousands)
	C & I		Comm R/E		Construction		Res Mtge		Installment		Unallocated		Total
Allowance for     loan and lease     losses:
Individually     evaluated for     impairment	$	300	$	115	$	—	$	—	$	—	$	—	$	415
Collectively     evaluated for     impairment		1,398		5,631		362		990		146		1,391		9,918
Total	$	1,698	$	5,746	$	362	$	990	$	146	$	1,391	$	10,333
Loans Receivable
Individually     evaluated for     impairment	$	1,121	$	14,826	$	—	$	1,858	$	120	$	—	$	17,925
Collectively     evaluated for     impairment		226,450		505,361		41,493		135,031		839		—		909,174
Loans acquired     with discounts     related to credit     quality		2,117		16,352		1,229		13,682		125		—		33,505
Total	$	229,688	$	536,539	$	42,722	$	150,571	$	1,084	$	—	$	960,604

Allowance for loan and lease losses

	December 31, 2012 (Dollars in Thousands)
	C & I		Comm R/E		Construction		Res Mtge		Installment		Unallocated		Total
Allowance for     loan and lease     losses:
Individually     evaluated for     impairment	$	—	$	493	$	—	$	152	$	—	$	—	$	645
Collectively     evaluated for     impairment		2,419		4,719		313		1,376		114		651		9,592
Total	$	2,419	$	5,212	$	313	$	1,528	$	114	$	651	$	10,237
Loans Receivable
Individually     evaluated for     impairment	$	731	$	10,066	$	3,600	$	1,677	$	—	$	—	$	16,074
Collectively     evaluated for     impairment		176,913		466,411		34,572		146,508		973		—		825,377
Loans acquired     with discounts     related to credit     quality		4,038		20,915		2,105		20,909		131		—		48,098
Total	$	181,682	$	497,392	$	40,277	$	169,094	$	1,104	$	—	$	889,549

A summary of the activity in the allowance for loan losses is as follows:

	Year Ended December 31, 2013
	(Dollars in thousands)
	C & I		Comm R/E		Construction		Res Mtg		Installment		Unallocated		Total
Balance at January 1,	$	2,424	$	5,323	$	313	$	1,532	$	113	$	532	$	10,237
Loans charged-off		(6)		(126)		—		(175)		(22)		—		(329)
Recoveries		41		28		—		—		6		—		75
Provision for loan losses		(761)		521		49		(367)		49		859		350
Balance at December 31,	$	1,698	$	5,746	$	362	$	990	$	146	$	1,391	$	10,333

	Year Ended December 31, 2012
	(Dollars in thousands)
	C & I		Comm R/E		Construction		Res Mtg		Installment		Unallocated		Total
Balance at January 1,	$	1,527	$	5,972	$	707	$	1,263	$	51	$	82	$	9,602
Loans charged-off		—		(57)		—		(454)		(16)		—		(527)
Recoveries		—		80		540		210		7		—		837
Provision for loan losses		892		(783)		(934)		509		72		569		325
Balance at December 31,	$	2,419	$	5,212	$	313	$	1,528	$	114	$	651	$	10,237

	For the Year Ended December 31,
	2013		2012		2011
	(Dollars in Thousands)
Balance at the beginning of year	$	10,237	$	9,602	$	8,867
Provision for loan losses		350		325		2,448
Loans charged-off		(329)		(527)		(2,028)
Recoveries on loans previously charged-off		75		837		315
Balance at the end of year	$	10,333	$	10,237	$	9,602

Schedule of Troubled Debt Restructuring by Class

The following tables present information about the troubled debt restructurings (TDRs) by class transacted during the period indicated:

	Year Ended December 31, 2013
	Number of Loans		Pre-restructuring Outstanding Recorded Investment		Post-restructuring Outstanding Recorded Investment
	(Dollars in Thousands)
Troubled debt restructurings:
Commercial Real Estate		—	$	—	$	—
Residential Mortgage		—		—		—
Installment		—		—		—
Total		—	$	—	$	—

	Year Ended December 31, 2012
	Number of Loans		Pre-restructuring Outstanding Recorded Investment		Post-restructuring Outstanding Recorded Investment
	(Dollars in Thousands)
Troubled debt restructurings:
Commercial Real Estate		1	$	225	$	225
Residential Mortgage		1		714		675
Installment		1		1,354		1,354
Total		3	$	2,293	$	2,254