LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Mar. 31, 2013

LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract]

Composition of Loan Portfolio, Excluding Residential Loans Held for Sale

	March 31, 2013			December 31, 2012
Residential real estate loans	$	572,562		$	572,768
Commercial real estate loans		505,992			506,231
Commercial loans		191,292			190,454
Home equity loans		291,690			278,375
Consumer loans		17,259			16,633
Deferred loan fees net of costs		(628	)		(595	)
Total loans	$	1,578,167		$	1,563,866

Summary of Activity in Allowance for Loan Losses

The following table presents activity in the ALL for the three months ended March 31, 2013:

	Residential Real Estate			Commercial Real Estate			Commercial			Home Equity			Consumer			Unallocated			Total
ALL:
Beginning balance	$	6,996		$	4,549		$	5,933		$	2,520		$	184		$	2,862		$	23,044
Loans charged off		(145	)		(80	)		(277	)		(28	)		(57	)		-			(587	)
Recoveries		3			75			129			2			19			-			228
Provision (reduction)		415			(942	)		415			864			76			(144	)		684
Ending balance	$	7,269		$	3,602		$	6,200		$	3,358		$	222		$	2,718		$	23,369
ALL balance attributable to loans:
Individually evaluated for impairment	$	2,468		$	197		$	325		$	469		$	82		$	-		$	3,541
Collectively evaluated for impairment		4,801			3,405			5,875			2,889			140			2,718			19,828
Total ending ALL	$	7,269		$	3,602		$	6,200		$	3,358		$	222		$	2,718		$	23,369
Loans:
Individually evaluated for impairment	$	13,754		$	7,633		$	3,329		$	1,855		$	488		$	-		$	27,059
Collectively evaluated for impairment		558,180			498,359			187,963			289,835			16,771			-			1,551,108
Total ending loans balance	$	571,934		$	505,992		$	191,292		$	291,690		$	17,259		$	-		$	1,578,167

The following table presents activity in the ALL for the three months ended March 31, 2012:

	Residential Real Estate			Commercial Real Estate			Commercial			Home Equity			Consumer			Unallocated		Total
ALL:
Beginning balance	$	6,398		$	5,702		$	4,846		$	2,704		$	420		$	2,941	$	23,011
Loans charged off		(308	)		(179	)		(191	)		(387	)		(24	)		-		(1,089	)
Recoveries		5			21			64			-			7			-		97
Provision (reduction)		8			169			474			157			120			63		991
Ending balance	$	6,103		$	5,713		$	5,193		$	2,474		$	523		$	3,004	$	23,010
ALL balance attributable to loans:
Individually evaluated for impairment	$	754		$	479		$	567		$	-		$	-		$	-	$	1,800
Collectively evaluated for impairment		5,349			5,234			4,626			2,474			523			3,004		21,210
Total ending ALL	$	6,103		$	5,713		$	5,193		$	2,474		$	523		$	3,004	$	23,010
Loans:
Individually evaluated for impairment	$	7,039		$	4,058		$	866		$	868		$	8		$	-	$	12,839
Collectively evaluated for impairment		566,245			476,004			178,931			269,454			12,708			-		1,503,342
Total ending loans balance	$	573,284		$	480,062		$	179,797		$	270,322		$	12,716		$	-	$	1,516,181

The following table presents the activity in the ALL and select loan information by portfolio segment for the year ended December 31, 2012:

	Residential Real Estate			Commercial Real Estate			Commercial			Home Equity			Consumer			Unallocated			Total
ALL:
Beginning balance	$	6,398		$	5,702		$	4,846		$	2,704		$	420		$	2,941		$	23,011
Loans charged off		(1,197	)		(593	)		(1,393	)		(1,234	)		(85	)		-			(4,502	)
Recoveries		73			222			406			23			20			-			744
Provision (reduction)		1,722			(782	)		2,074			1,027			(171	)		(79	)		3,791
Ending balance	$	6,996		$	4,549		$	5,933		$	2,520		$	184		$	2,862		$	23,044
ALL balance attributable to loans:
Individually evaluated for impairment	$	2,255		$	265		$	286		$	261		$	39		$	-		$	3,106
Collectively evaluated for impairment		4,741			4,284			5,647			2,259			145			2,862			19,938
Total ending ALL	$	6,996		$	4,549		$	5,933		$	2,520		$	184		$	2,862		$	23,044
Loans:
Individually evaluated for impairment	$	13,805		$	7,968		$	3,610		$	1,515		$	259		$	-		$	27,157
Collectively evaluated for impairment		558,368			498,263			186,844			276,860			16,374			-			1,536,709
Total ending loans balance	$	572,173		$	506,231		$	190,454		$	278,375		$	16,633		$	-		$	1,563,866

Credit Risk Exposure Indicators by Portfolio Segment

	Residential Real Estate		Commercial Real Estate		Commercial		Home Equity		Consumer
March 31, 2013
Pass (Grades 1-6)	$	554,001	$	443,508	$	167,725	$	-	$	-
Performing		-		-		-		289,835		16,773
Special Mention (Grade 7)		2,749		16,875		7,603		-		-
Substandard (Grade 8)		15,184		45,609		15,964		-		-
Non-performing		-		-		-		1,855		486
Total	$	571,934	$	505,992	$	191,292	$	291,690	$	17,259
December 31, 2012
Pass (Grades 1-6)	$	555,444	$	440,610	$	165,460	$	-	$	-
Performing		-		-		-		276,742		16,376
Special Mention (Grade 7)		1,291		17,069		7,449		-		-
Substandard (Grade 8)		15,438		48,552		17,545		-		-
Non-performing		-		-		-		1,633		257
Total	$	572,173	$	506,231	$	190,454	$	278,375	$	16,633

Loan Aging Analysis by Portfolio Segment (Including Loans Past Due Over Ninety Days and Non Accrual Loans) and Summary of Non Accrual Loans, Which Include Troubled Debt Restructured Loans, and Loans Past Due Over Ninety Days and Accruing

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Outstanding		Loans > 90 Days Past Due and Accruing		Non-Accrual Loans
March 31, 2013
Residential real estate	$	1,404	$	615	$	7,955	$	9,974	$	561,960	$	571,934	$	-	$	10,311
Commercial real estate		3,125		797		4,781		8,703		497,289		505,992		49		5,782
Commercial		769		490		2,434		3,693		187,599		191,292		-		3,134
Home equity		983		101		1,602		2,686		289,004		291,690		-		1,855
Consumer		37		14		486		537		16,722		17,259		-		486
Total	$	6,318	$	2,017	$	17,258	$	25,593	$	1,552,574	$	1,578,167	$	49	$	21,568
December 31, 2012
Residential real estate	$	1,459	$	850	$	8,410	$	10,719	$	561,454	$	572,173	$	193	$	10,584
Commercial real estate		896		2,227		5,380		8,503		497,728		506,231		138		6,719
Commercial		1,079		68		2,969		4,116		186,338		190,454		160		3,409
Home equity		2,230		355		1,105		3,690		274,685		278,375		118		1,514
Consumer		342		199		259		800		15,833		16,633		2		257
Total	$	6,006	$	3,699	$	18,123	$	27,828	$	1,536,038	$	1,563,866	$	611	$	22,483

Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment

	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Current Balance
March 31, 2013
Residential real estate		21	$	3,538	$	3,669	$	3,508
Commercial real estate		9		2,844		2,897		2,734
Commercial		4		284		284		228
Consumer		1		3		3		2
Total		35	$	6,669	$	6,853	$	6,472
December 31, 2012
Residential real estate		20	$	3,305	$	3,434	$	3,286
Commercial real estate		6		2,602		2,649		2,344
Commercial		3		303		303		236
Consumer		1		3		3		2
Total		30	$	6,213	$	6,389	$	5,868

Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment

							Three Months Ended
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
March 31, 2013
With an allowance recorded:
Residential real estate	$	10,904	$	10,904	$	2,468	$	8,689	$	29
Commercial real estate		3,680		3,680		197		4,343		3
Commercial		3,002		3,002		325		2,788		2
Home equity		1,319		1,319		469		1,528		-
Consumer		486		486		82		457		-
Ending Balance	$	19,391	$	19,391	$	3,541	$	17,805	$	34
Without allowance recorded:
Residential real estate	$	2,850	$	3,672	$	-	$	5,028	$	7
Commercial real estate		3,953		4,217		-		3,516		22
Commercial		327		421		-		558		1
Home equity		536		807		-		364		-
Consumer		2		2		-		2		-
Ending Balance	$	7,668	$	9,119	$	-	$	9,468	$	30
Total impaired loans	$	27,059	$	28,510	$	3,541	$	27,273	$	64

							Year Ended
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
December 31, 2012
With related allowance recorded:
Residential real estate	$	11,021	$	11,021	$	2,255	$	10,585	$	114
Commercial real estate		4,296		4,296		265		5,551		-
Commercial		2,971		2,971		286		3,927		-
Home equity		1,236		1,236		261		1,289		-
Consumer		257		257		39		239		-
Ending Balance	$	19,781	$	19,781	$	3,106	$	21,591	$	114
Without related allowance recorded:
Residential real estate	$	2,784	$	3,841	$	-	$	2,548	$	26
Commercial real estate		3,672		4,127		-		2,056		33
Commercial		639		956		-		389		13
Home equity		279		550		-		617		-
Consumer		2		2		-		6		-
Ending Balance	$	7,376	$	9,476	$	-	$	5,616	$	72
Total impaired loans	$	27,157	$	29,257	$	3,106	$	27,207	$	186