Loan Quality (Tables)

3 Months Ended

Mar. 31, 2014

Allowance For Loan Losses, By Loan Segment

The following table presents, by class, the Allowance for Loan Losses (ALL) for the periods ended:




	Residential Real Estate 1-4 Family
			Junior Liens &				Commercial
(Dollars in thousands)	First Liens		Lines of Credit		Construction		Real Estate		Commercial		Consumer		Total

Allowance at December 31, 2013	$	1,108	$	278	$	291	$	5,571	$	2,306	$	148	$	9,702
Charge-offs		(16)		-		(27)		(114)		(1)		(43)		(201)
Recoveries		3		-		-		-		20		23		46
Provision		38		(2)		110		52		(16)		16		198
Allowance at March 31, 2014	$	1,133	$	276	$	374	$	5,509	$	2,309	$	144	$	9,745

Allowance at December 31, 2012	$	913	$	306	$	899	$	6,450	$	1,620	$	191	$	10,379
Charge-offs		-		(45)		-		(171)		(7)		(44)		(267)
Recoveries		8		-		-		-		7		13		28
Provision		52		35		(62)		403		352		23		803
Allowance at March 31, 2013	$	973	$	296	$	837	$	6,682	$	1,972	$	183	$	10,943

The following table presents, by class, loans that were evaluated for the ALL under the specific reserve (individually) and those that were evaluated under the general reserve (collectively) and the amount of the ALL established in each class as of March 31, 2014 and December 31, 2013:




	Residential Real Estate 1-4 Family
			Junior Liens &				Commercial
(Dollars in thousands)	First Liens		Lines of Credit		Construction		Real Estate		Commercial		Consumer		Total

March 31, 2014
Loans evaluated for allowance:
Individually	$	2,310	$	51	$	530	$	25,029	$	1,953	$	-	$	29,873
Collectively		162,799		39,893		11,223		297,421		177,033		7,816		696,185
Total	$	165,109	$	39,944	$	11,753	$	322,450	$	178,986	$	7,816	$	726,058

Allowance established for loans evaluated:
Individually	$	-	$	-	$	-	$	247	$	968	$	-	$	1,215
Collectively		1,133		276		374		5,262		1,341		144		8,530
Allowance at March 31, 2014	$	1,133	$	276	$	374	$	5,509	$	2,309	$	144	$	9,745

December 31, 2013
Loans evaluated for allowance:
Individually	$	2,354	$	50	$	537	$	25,107	$	1,996	$	-	$	30,044
Collectively		159,685		40,525		11,982		304,266		168,331		8,580		693,369
Total	$	162,039	$	40,575	$	12,519	$	329,373	$	170,327	$	8,580	$	723,413

Allowance established for loans evaluated:
Individually	$	9	$	-	$	-	$	89	$	1,002	$	-	$	1,100
Collectively		1,099		278		291		5,482		1,304		148		8,602
Allowance at December 31, 2013	$	1,108	$	278	$	291	$	5,571	$	2,306	$	148	$	9,702

Impaired Financing Receivables

The following table shows additional information about those loans considered to be impaired at March 31, 2014 and December 31, 2013:



	Impaired Loans
	With No Allowance				With Allowance
(Dollars in thousands)			Unpaid					Unpaid
	Recorded		Principal		Recorded		Principal		Related
March 31, 2014	Investment		Balance		Investment		Balance		Allowance
Residential Real Estate 1-4 Family
First liens	$	3,181	$	3,649	$	-	$	-	$	-
Junior liens and lines of credit		110		135		-		-		-
Total		3,291		3,784		-		-		-
Residential real estate - construction		530		553		-		-		-
Commercial real estate		23,607		28,724		1,468		2,362		247
Commercial		140		144		1,928		2,029		968
Consumer		-		-		-		-		-
Total	$	27,568	$	33,205	$	3,396	$	4,391	$	1,215



December 31, 2013
Residential Real Estate 1-4 Family
First liens	$	3,030	$	3,500	$	9	$	39	$	9
Junior liens and lines of credit		108		127		-		-		-
Total		3,138		3,627		9		39		9
Residential real estate - construction		537		556		-		-		-
Commercial real estate		24,188		30,334		966		1,043		89
Commercial		88		89		1,970		2,043		1,002
Consumer		-		-		-		-		-
Total	$	27,951	$	34,606	$	2,945	$	3,125	$	1,100

The following table shows the average of impaired loans and related interest income for the three months ended March 31, 2014 and 2013:



	Three Months Ended				Three Months Ended
	March 31, 2014				March 31, 2013
	Average		Interest		Average		Interest
(Dollars in thousands)	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Residential Real Estate 1-4 Family
First liens	$	3,218	$	14	$	3,626	$	4
Junior liens and lines of credit		126		4		742		1
Total		3,344		18		4,368		5
Residential real estate - construction		532		5		556		-
Commercial real estate		25,665		244		30,087		38
Commercial		2,092		31		4,480		-
Consumer		-		-		-		-
Total	$	31,633	$	298	$	39,491	$	43

Aging Of Payments Of The Loan Portfolio



(Dollars in thousands)			Loans Past Due and Still Accruing										Total
	Current		30-59 Days		60-89 Days		90 Days+		Total		Non-Accrual		Loans
March 31, 2014
Residential Real Estate 1-4 Family
First liens	$	161,013	$	1,514	$	9	$	229	$	1,752	$	2,344	$	165,109
Junior liens and lines of credit		39,618		163		13		59		235		91		39,944
Total		200,631		1,677		22		288		1,987		2,435		205,053
Residential real estate - construction		10,641		373		209		-		582		530		11,753
Commercial real estate		300,573		2,912		-		-		2,912		18,965		322,450
Commercial		176,392		47		140		-		187		2,407		178,986
Consumer		7,703		93		13		7		113		-		7,816
Total	$	695,940	$	5,102	$	384	$	295	$	5,781	$	24,337	$	726,058



December 31, 2013
Residential Real Estate 1-4 Family
First liens	$	156,916	$	1,725	$	497	$	302	$	2,524	$	2,599	$	162,039
Junior liens and lines of credit		40,204		204		19		41		264		107		40,575
Total		197,120		1,929		516		343		2,788		2,706		202,614
Residential real estate - construction		11,458		523		-		-		523		538		12,519
Commercial real estate		309,531		634		-		207		841		19,001		329,373
Commercial		167,747		78		60		44		182		2,398		170,327
Consumer		8,430		117		23		10		150		-		8,580
Total	$	694,286	$	3,281	$	599	$	604	$	4,484	$	24,643	$	723,413

Internal Credit Rating For The Loan Portfolio




(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total

March 31, 2014
Residential Real Estate 1-4 Family
First liens	$	156,291	$	2,513	$	6,305	$	-	$	165,109
Junior liens and lines of credit		39,548		40		356		-		39,944
Total		195,839		2,553		6,661		-		205,053
Residential real estate - construction		10,148		-		1,605		-		11,753
Commercial real estate		283,566		4,508		34,376		-		322,450
Commercial		163,184		3,228		12,574		-		178,986
Consumer		7,809		-		7		-		7,816
Total	$	660,546	$	10,289	$	55,223	$	-	$	726,058



December 31, 2013
Residential Real Estate 1-4 Family
First liens	$	150,762	$	3,653	$	7,624	$	-	$	162,039
Junior liens and lines of credit		40,102		66		407		-		40,575
Total		190,864		3,719		8,031		-		202,614
Residential real estate - construction		10,955		-		1,564		-		12,519
Commercial real estate		281,857		11,861		35,655		-		329,373
Commercial		154,888		3,393		12,046		-		170,327
Consumer		8,570		-		10		-		8,580
Total	$	647,134	$	18,973	$	57,306	$	-	$	723,413

Troubled Debt Restructuring Loans

The following table presents information on the Bank’s Troubled Debt Restructuring (TDR) loans:


					Troubled Debt Restructings
					That Have Defaulted on
(Dollars in thousands)	Troubled Debt Restructings				Modified Terms YTD
	Number of	Recorded			Number of	Recorded
	Contracts	Investment	Performing*	Nonperforming*	Contracts	Investment
March 31, 2014
Residential real estate - construction	1	$ 530	$ -	$ 530	-	$ -
Residential real estate	5	608	608	-	-	-
Commercial real estate	12	15,723	14,188	1,535	-	-
Total	18	$ 16,861	$ 14,796	$ 2,065	-	$ -


December 31, 2013
Residential real estate - construction	1	$ 537	$ -	$ 537	-	$ -
Residential real estate	5	625	625	-	-
Commercial real estate	12	15,877	14,318	1,559	-	-
Total	18	$ 17,039	$ 14,943	$ 2,096	-	$ -

*The performing status is determined by the loan’s compliance with the modified terms.

There were no new TDR loans made during 2014.

The following table reports TDR loans during 2013, concession granted and the recorded investment as of March 31, 2013:


	New During Period
	Number of	Pre-TDR	After-TDR	Recorded
Three Months Ended March 31, 2013	Contracts	Modification	Modification	Investment	Concession
Commercial real estate	1	$ 2,444	$ 2,731	$ 2,727	multiple