Loans (Tables)

6 Months Ended

Jun. 30, 2012

Loans [Abstract]

Schedule of loans, excluding loans held for sale

Loans, excluding loans held for sale, were comprised of the following:

	June 30,		December 31,
(in thousands)	2012		2011
Commercial	$	128,846	$	134,166
Commercial real estate:
Construction and land development		50,913		54,433
Commercial real estate		354,441		351,961
Residential real estate:
Residential		170,893		179,812
Home equity		95,522		96,195
Consumer		7,454		8,191
Total loans	$	808,069	$	824,758

Schedule stating outstanding principal balance and the carrying amount of loan acquired

Interest income, including accretion, on loans acquired from MidCarolina for the three months ended June 30, 2012 was approximately $7.7 million and $12.9 million for the six months ended June 30, 2012. The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheet at June 30, 2012 and December 31, 2011 are as follows:

	June 30,		December 31,
(in thousands)	2012		2011
Oustanding principal balance	$	275,667	$	321,002
Carrying amount		255,840		293,569

The outstanding principal balance and related carrying amount of acquired loans, for which the Company applies ASC 310-30 (formerly SOP 03-3), to account for interest earned, at June 30, 2012 and December 31, 2011 are as follows:

	June 30,		December 31,
(in thousands)	2012		2011
Oustanding principal balance	$	32,307	$	45,760
Carrying amount		24,633		34,027

Schedule of changes in the accretable discount on acquired loans

The following table presents changes in the accretable discount on acquired loans, for which the Company applies ASC 310-30 (formerly SOP 03-3), for the six months ended June 30, 2012. The accretion reflected below includes $1,686,000 related to loan payoffs.

	Accretable
(in thousands)	Discount
Balance at December 31, 2011	$	1,056
Accretion		(1,738	)
Reclassification from nonaccretable difference		1,917
Balance at June 30, 2012	$	1,235

Schedule of analysis by portfolio segment of the entity's past due loans

The following table shows an analysis by portfolio segment of the Company's past due loans at June 30, 2012.

					90 Days +
	30- 59		60-89		Past Due		Non-		Total
	Days		Days		and Still		Accrual		Past				Total
(in thousands)	Past Due		Past Due		Accruing		Loans		Due		Current		Loans
Commercial	$	170	$	128	$	-	$	1,095	$	1,393	$	127,453	$	128,846
Commercial real estate:
Construction and land development		-		-		-		1,257		1,257		49,656		50,913
Commercial real estate		981		1,596		-		1,996		4,573		349,868		354,441
Residential:
Residential		719		176		-		3,095		3,990		166,903		170,893
Home equity		308		13		-		551		872		94,650		95,522
Consumer		17		50		-		1		68		7,386		7,454
Total	$	2,195	$	1,963	$	-	$	7,995	$	12,153	$	795,916	$	808,069

The following table shows an analysis by portfolio segment of the Company's past due loans at December 31, 2011.

					90 Days +
	30- 59		60-89		Past Due		Non-		Total
	Days		Days		and Still		Accrual		Past				Total
(in thousands)	Past Due		Past Due		Accruing		Loans		Due		Current		Loans
Commercial	$	98	$	99	$	-	$	1,820	$	2,017	$	132,149	$	134,166
Commercial real estate:
Construction and land development		1,086		1,163		-		5,819		8,066		46,367		54,433
Commercial real estate		1,052		471		-		2,115		3,638		348,323		351,961
Residential:
Residential		1,519		741		-		3,476		5,735		174,077		179,812
Home equity		270		243		197		244		954		95,241		96,195
Consumer		126		7		-		49		181		8,010		8,191
Total	$	4,151	$	2,724	$	197	$	13,523	$	20,591	$	804,167	$	824,758

Schedule of impaired loan balances by portfolio segment

The following table presents the Company's impaired loan balances by portfolio segment excluding loans acquired with deteriorated credit quality at June 30, 2012.

			Unpaid				Average		Interest
(in thousands)	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
With no related allowance recorded:
Commercial	$	214	$	382	$	-	$	210	$	-
Commercial real estate:
Construction and land development		2,081		701		-		1,407		15
Commercial real estate		153		153		-		765		5
Residential:
Residential		1,029		1,327		-		1,149		-
Home equity		-		-		-		-		-
Consumer		-		-		-		-		-
	$	3,477	$	2,563	$	-	$	3,531	$	20
With an related allowance recorded:
Commercial		259		259		158		14		7
Commercial real estate:
Construction and land development		-		-		-		-		-
Commercial real estate		233		233		69		19		8
Residential		289		289		114		48		-
Home equity		-		-		-		-		-
Consumer		-		-		-		-		-
	$	781	$	781	$	341	$	81	$	15
Total:
Commercial	$	473	$	641	$	158	$	224	$	7
Commercial real estate:
Construction and land development		2,081		701		-		1,407		15
Commercial real estate		386		386		69		784		13
Residential:
Residential		1,318		1,616		114		1,197		-
Home equity		-		-		-		-		-
Consumer		-		-		-		-		-
	$	4,258	$	3,344	$	341	$	3,612	$	35

The following table presents the Company's impaired loan balances by portfolio segment excluding loans acquired with deteriorated credit quality at December 31, 2011.

			Unpaid				Average		Interest
(in thousands)	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
With no related allowance recorded:
Commercial	$	-	$	-	$	-	$	48	$	-
Commercial real estate:
Construction and land development		364		391		-		292		-
Commercial real estate		279		279		-		207		17
Residential:
Residential		1,185		1,276		-		376		2
Home equity		89		89		-		50		3
Consumer		49		56		-		17		-
	$	1,966	$	2,091	$	-	$	990	$	22
With an related allowance recorded:
Commercial	$	-	$	-	$	-	$	-	$	-
Commercial real estate:
Construction and land development		363		363		49		139		-
Commercial real estate		888		888		80		75		-
Residential:
Residential		21		21		1		7		-
Home equity		-		-		-		-		-
Consumer		-		-		-		-		-
	$	1,272	$	1,272	$	130	$	221	$	-
Total:
Commercial	$	-	$	-	$	-	$	48	$	-
Commercial real estate:
Construction and land development		727		754		49		431		-
Commercial real estate		1,167		1,167		80		282		17
Residential:
Residential		1,206		1,297		1		383		2
Home equity		89		89		-		50		3
Consumer		49		56		-		17		-
	$	3,238	$	3,363	$	130	$	1,211	$	22

Schedule of detail of loans modified as troubled debt restructurings

The following table shows the detail of loans modified as troubled debt restructurings ("TDRs") included in the impaired loan balances for the three and six month periods ended June 30, 2012.

	Loans Modified as a TDR for the
	Three Months Ended June 30, 2012
			Pre-Modification		Post-Modification
	Number of		Outstanding Recorded		Oustanding Recorded
(dollars in thousands)	Contracts		Investment		Investment
Commercial		1	$	11	$	11
Commercial real estate:
Construction and land development		2		1,411		1,411
Commercial real estate		1		4		4
Total		4	$	1,426	$	1,426

	Loans Modified as a TDR for the
	Six Months Ended June 30, 2012
			Pre-Modification		Post-Modification
	Number of		Outstanding Recorded		Oustanding Recorded
(dollars in thousands)	Contracts		Investment		Investment
Commercial		1	$	11	$	11
Commercial real estate:
Construction and land development		7		2,188		2,081
Commercial real estate		1		4		4
Total		9	$	2,203	$	2,096

Schedule of commercial loan portfolio broken down by internal risk grading

        The following table shows the Company's commercial loan portfolio broken down by internal risk grading as of June 30, 2012.

(in thousands)
Commercial and Consumer Credit Exposure
Credit Risk Profile by Internally Assigned Grade
			Commercial		Commercial
			Real Estate		Real Estate				Home
	Commercial		Construction		Other		Residential		Equity
Pass	$	126,558	$	39,464	$	333,636	$	153,437	$	92,960
Special Mention		1,097		2,170		12,261		10,932		1,366
Substandard		1,191		9,279		8,544		6,524		1,196
Doubtful		-		-		-		-		-
Total	$	128,846	$	50,913	$	354,441	$	170,893	$	95,522
Consumer Credit Exposure
Credit Risk Profile Based on Payment Activity
	Consumer
Performing	$	7,365
Nonperforming		89
Total	$	7,454

The following table shows the Company's commercial loan portfolio broken down by internal risk grading as of December 31, 2011.

(in thousands)
Commercial and Consumer Credit Exposure
Credit Risk Profile by Internally Assigned Grade
			Commercial		Commercial
			Real Estate		Real Estate				Home
	Commercial		Construction		Other		Residential		Equity
Pass	$	130,603	$	35,265	$	321,370	$	161,158	$	93,193
Special Mention		1,349		3,401		19,072		10,166		1,606
Substandard		2,214		15,767		11,519		8,488		1,396
Doubtful		-		-		-		-		-
Total	$	134,166	$	54,433	$	351,961	$	179,812	$	96,195
Consumer Credit Exposure
Credit Risk Profile Based on Payment Activity
	Consumer
Performing	$	8,050
Nonperforming		141
Total	$	8,191