Allowance for Loan Losses, Nonperforming Assets and Impaired Loans (Tables)

6 Months Ended

Jun. 30, 2012

Allowance for Loan Losses, Nonperforming Assets and Impaired Loans [Abstract]

Financing receivables and activity in the allowance for credit losses account

A detailed analysis showing the allowance roll-forward by portfolio segment and related loan balance by segment follows.

	Activity in the Allowance for Loan Losses for the Three Months Ended June 30, 2012
	Real Estate Construction			Consumer Real Estate			Commercial Real Estate			Commercial Non Real Estate			Public Sector and IDA		Consumer Non Real Estate			Unallocated			Total
Balance, March 31, 2012	$	674		$	2,252		$	3,220		$	1,126		$	85	$	482		$	224		$	8,063
Charge-offs		(589	)		(150	)		(200	)		(5	)		---		(84	)		---			(1,028	)
Recoveries		13			2			---			1			---		13			---			29
Provision for loan losses		1,298			(194	)		237			(213	)		26		11			(61	)		1,104
Balance, June 30, 2012	$	1,396		$	1,910		$	3,257		$	909		$	111	$	422		$	163		$	8,168

	Activity in the Allowance for Loan Losses for the Six Months Ended June 30, 2012
	Real Estate Construction			Consumer Real Estate			Commercial Real Estate			Commercial Non Real Estate			Public Sector and IDA			Consumer Non Real Estate			Unallocated		Total
Balance, December 31, 2011	$	1,079		$	1,245		$	3,515		$	1,473		$	232		$	403		$	121	$	8,068
Charge-offs		(589	)		(245	)		(737	)		(5	)		---			(152	)		---		(1,728	)
Recoveries		13			2			---			1			---			36			---		52
Provision for loan losses		893			908			479			(560	)		(121	)		135			42		1,776
Balance, June 30, 2012	$	1,396		$	1,910		$	3,257		$	909		$	111		$	422		$	163	$	8,168

	Activity in the Allowance for Loan Losses for the Three Months Ended June 30, 2011
	Consumer Real Estate(1)			Consumer Non Real Estate(1)			Commercial Real Estate(1)			Commercial & Industrial(1)			Construction, Development & Other Land(1)			Unallocated		Total
Balance, March 31, 2011	$	1,102		$	464		$	4,655		$	1,221		$	690		$	113	$	8,245
Charge-offs		(176	)		(60	)		(142	)		(137	)		---			---		(515	)
Recoveries		---			10			---			1			---			---		11
Provision for loan losses		445			69			(180	)		263			(54	)		210		753
Balance, June 30,  2011	$	1,371		$	483		$	4,333		$	1,348		$	636		$	323	$	8,494

(1)Segments at June 30, 2011 are reported using the segmentation method in effect for 2011. The Company began reporting under revised segments beginning in 2012.

	Activity in the Allowance for Loan Losses for the Six Months Ended June 30, 2011
	Consumer Real Estate(1)			Consumer Non Real Estate(1)			Commercial Real Estate(1)			Commercial & Industrial(1)			Construction, Development & Other Land(1)			Unallocated		Total
Balance, December 31, 2010	$	1,059		$	586		$	4,033		$	1,108		$	749		$	129	$	7,664
Charge-offs		(212	)		(150	)		(260	)		(137	)		---			---		(759	)
Recoveries		7			28			---			1			---			---		36
Provision for loan losses		517			19			560			376			(113	)		194		1,553
Balance, June 30,  2011	$	1,371		$	483		$	4,333		$	1,348		$	636		$	323	$	8,494

(1)Segments at June 30, 2011 are reported using the segmentation method in effect for 2011. The Company began reporting under revised segments beginning in 2012.

	Allowance for Loan Losses as of June 30, 2012
	Real Estate Construction			Consumer Real Estate			Commercial Real Estate			Commercial Non Real Estate			Public Sector and IDA			Consumer Non Real Estate			Unallocated			Total
Individually evaluated for impairment		$	---		$	54		$	56		$	243		$	---		$	9		$	---		$	362
Collectively evaluated for impairment			1,396			1,856			3,201			666			111			413			163			7,806
Total		$	1,396		$	1,910		$	3,257		$	909		$	111		$	422		$	163		$	8,168

	Allowance for Loan Losses as of December 31, 2011
	Consumer Real Estate(1)			Consumer Non Real Estate(1)			Commercial Real Estate(1)			Commercial & Industrial(1)			Construction, Development & Other Land(1)			Unallocated			Total
Individually evaluated for impairment		$	---		$	---		$	1,014		$	62		$	47		$	---	$	1,123
Collectively  evaluated for impairment			1,052			401			3,497			973			901			121		6,945
Total		$	1,052		$	401		$	4,511		$	1,035		$	948		$	121	$	8,068

(1)Segments at December 31, 2011 are reported using the segmentation method in effect for 2011. The Company began reporting under revised segments beginning in 2012.

	Loans as of June 30, 2012
	Real Estate Construction			Consumer Real Estate			Commercial Real Estate		Commercial Non Real Estate			Public Sector and IDA			Consumer Non Real Estate			Unallocated			Total
Individually evaluated for impairment		$	4,711		$	1,358	$	7,251		$	546		$	---		$	51		$	---		$	13,917
Collectively evaluated for impairment			47,336			142,166		294,324			38,469			18,121			31,890			---			572,306
Total		$	52,047		$	143,524	$	301,575		$	39,015		$	18,121		$	31,941		$	---		$	586,223

	Loans as of December 31, 2011
	Consumer Real Estate(1)			Consumer Non Real Estate(1)			Commercial Real Estate(1)			Commercial & Industrial(1)			Construction, Development & Other Land(1)			Unallocated			Total
Individually evaluated for impairment		$	238		$	---		$	9,067		$	139		$	3,152		$	---	$	12,596
Collectively  evaluated for impairment			109,843			29,707			357,507			37,584			41,233			---		575,874
Total		$	110,081		$	29,707		$	366,574		$	37,723		$	44,385		$	---	$	588,470

(1)Segments at December 31, 2011 are reported using the segmentation method in effect for 2011. The Company began reporting under revised segments beginning in 2012.

Summary of ratios for the allowance for loan losses

A summary of ratios for the allowance for loan losses follows.

	Six Months Ended June 30,						Year Ended December 31,
	2012			2011			2011
Ratio of allowance for loan losses to the end of period loans, net of unearned income and deferred fees		1.39	%		1.43	%		1.37	%
Ratio of net charge-offs to average loans, net of unearned income and deferred fees(1)		0.57	%		0.25	%		0.43	%

(1)   Net charge-offs are on an annualized basis.

Summary of nonperforming assets

A summary of nonperforming assets follows.

	June 30,						December 31,
	2012			2011			2011
Nonperforming assets:
Nonaccrual loans	$	3,627		$	1,819		$	1,398
Restructured loans in nonaccrual		3,763			5,030			3,806
Total nonperforming loans		7,390			6,849			5,204
Other real estate owned, net		871			1,855			1,489
Total nonperforming assets	$	8,261		$	8,704		$	6,693
Ratio of nonperforming assets to loans, net of unearned income and deferred fees, plus other real estate owned		1.41	%		1.46	%		1.13	%
Ratio of allowance for loan losses to nonperforming loans(1)		110.53	%		124.02	%		155.03	%

(1)           The Company defines nonperforming loans as nonaccrual loans.  Loans 90 days or more past due and still accruing and accruing restructured loans are excluded.

Summary of loans past due 90 days or more and impaired loans

A summary of loans past due 90 days or more and impaired loans follows.

	June 30,						December 31,
	2012			2011			2011
Loans past due 90 days or more and still accruing	$	242		$	572		$	481
Ratio of loans past due 90 days or more and still accruing to loans, net of unearned income and deferred fees		0.04	%		0.10	%		0.08	%
Accruing restructured loans	$	2,035		$	780		$	3,756
Impaired loans:
Impaired loans with no valuation allowance	$	12,374		$	2,377		$	5,505
Impaired loans with a valuation allowance		1,543			5,054			7,091
Total impaired loans	$	13,917		$	7,431		$	12,596
Valuation allowance		(362	)		(1,191	)		(1,123	)
Impaired loans, net of allowance	$	13,555		$	6,240		$	11,473
Average recorded investment in impaired loans(1)	$	14,055		$	7,733		$	8,734
Interest income recognized on impaired loans, after designation as impaired	$	186		$	24		$	141
Amount of income recognized on a cash basis	$	---		$	---		$	---

(1)           Recorded investment includes principal, accrued interest and net deferred fees.

Summary of investment in impaired loans, related allowance, recorded investment and interest income recognized

A detailed analysis of investment in impaired loans, associated reserves and interest income recognized, segregated by loan class follows.

	Impaired Loans as of June 30, 2012
	Principal Balance		(A) Total Recorded Investment(1)		Recorded Investment(1) in (A) for Which There is No Related Allowance		Recorded Investment(1) in (A) for Which There is a Related Allowance		Related Allowance
Real Estate Construction
Construction, residential	$	1,211	$	1,206	$	1,206	$	---	$	---
Construction, other		3,500		3,501		3,501		---		---
Consumer Real Estate
Equity lines		200		202		202		---		---
Residential closed-end first liens		990		990		796		194		54
Residential closed-end junior liens		168		168		168		---		---
Commercial Real Estate
Multifamily real estate		2,092		2,102		1,937		165		35
Commercial real estate, owner occupied		5,159		5,163		4,492		671		21
Commercial real estate, other		---		---		---		---		---
Commercial Non Real Estate
Commercial and industrial		546		547		50		497		243
Public Sector and IDA
Public sector and IDA		---		---		---		---		---
Consumer Non Real Estate
Credit cards		---		---		---		---		---
Automobile		25		25		12		13		9
Other consumer loans		26		26		26		---		---
Total	$	13,917	$	13,930	$	12,390	$	1,540	$	362

(1)           Recorded investment includes the unpaid principal balance and any accrued interest and net deferred fees.

	Impaired Loans as of December 31, 2011(3)
	Principal Balance		(A) Total Recorded Investment(1)		Recorded Investment(1) in (A) for Which There is No Related Allowance		Recorded Investment(1) in (A) for Which There is a Related Allowance		Related Allowance
Consumer Real Estate(2)
Closed-end consumer real estate	$	237	$	237	$	237	$	---	$	---
Commercial Real Estate(2)
College housing		366		366		366		---		---
Office and retail		3,500		3,500		---		3,500		57
Hotel		3,319		3,320		2,794		526		16
Medical professionals		66		67		---		67		66
General contractors		703		703		176		527		402
Other commercial real estate		1,113		1,112		425		687		474
Commercial & Industrial(2)
Commercial and industrial		139		139		---		139		62
Construction, Development and Land(2)
Residential		2,901		2,912		1,256		1,656		46
Commercial		252		252		252		---		---
Total	$	12,596	$	12,608	$	5,506	$	7,102	$	1,123

(1)           Recorded investment includes the unpaid principal balance and any accrued interest and net deferred fees.

(2)           Only classes with impaired loans are shown.

(3)           Segments and classes at December 31, 2011 are reported using the segmentation method in effect for 2011. The Company began reporting under revised segments beginning in 2012.

The following tables show the average investment and interest income recognized for impaired loans.

	Average Investment and Interest Income for Impaired Loans
	For the Three Months Ended June 30, 2012				For the Six Months Ended June 30, 2012
	Average Recorded Investment(1)		Interest Income Recognized		Average Recorded Investment(1)		Interest Income Recognized
Real Estate Construction
Construction, residential	$	1,514	$	---	$	1,513	$	---
Construction, other		6,699		1		5,112		119
Consumer Real Estate
Equity lines		136		---		68		2
Residential closed-end first liens		1,068		---		879		3
Residential closed-end junior liens		258		---		257		---
Commercial Real Estate
Multifamily real estate		1,291		---		914		10
Commercial real estate, owner occupied		5,206		---		4,653		50
Commercial real estate, other		---		---		---		---
Commercial Non Real Estate
Commercial and industrial		553		---		606		2
Public Sector and IDA
Public sector and IDA		---		---		---		---
Consumer Non Real Estate
Credit cards		---		---		---		---
Automobile		---		---		2		---
Other consumer		33		---		51		---
Total	$	14,055	$	186	$	14,055	$	186

(1)           Recorded investment includes the unpaid principal balance and any accrued interest and net deferred fees.

	Average Investment and Interest Income of Impaired Loans For the Year Ended
	December 31, 2011(3)
	Average Recorded Investment(1)		Interest Income Recognized
Consumer Real Estate(2)
Closed-end consumer real estate	$	450	$	3
Commercial Real Estate(2)
College housing		281		7
Office & retail		292		---
Hotel		3,445		41
Medical professionals		67		5
General contractors		112		4
Other commercial real estate		1,139		24
Commercial & Industrial(2)
Commercial and industrial		553		---
Construction, Development and Land(2)
Residential		2,143		49
Commercial		252		8
Total	$	8,734	$	141

(1) Recorded investment includes the unpaid principal balance and any accrued interest and net deferred fees.

(2) Only classes with impaired loans are shown.

(3) Segments at December 31, 2011 are reported using the segmentation method in effect for 2011. The Company began reporting under revised segments beginning in 2012.

Analysis of past due and nonaccrual loans

An analysis of past due and nonaccrual loans as of June 30, 2012 follows.

	30 - 89 Days Past Due		90 or More Days Past Due		90 or More Days Past Due and Still Accruing		Nonaccruals (Including Impaired Nonaccruals)
Real Estate Construction
Construction, residential	$	---	$	1,211	$	---	$	1,211
Construction, other		---		---		---		---
Consumer Real Estate
Equity lines		---		200		200		---
Residential closed-end first liens		938		646		---		910
Residential closed-end junior liens		68		168		---		168
Commercial Real Estate
Multifamily real estate		767		1,325		---		1,325
Commercial real estate, owner occupied		669		2,003		36		3,254
Commercial real estate, other		45		---		---		---
Commercial Non Real Estate
Commercial and industrial		41		100		---		497
Public Sector and IDA
Public sector and IDA		---		---		---		---
Consumer Non Real Estate
Credit cards		17		6		6		---
Automobile		220		25		---		25
Other consumer loans		63		---		---		---
Total	$	2,828	$	5,684	$	242	$	7,390

An analysis of past due and nonaccrual loans as of December 31, 2011(1) follows.

	30 - 89 Days Past Due		90 or More Days Past Due		90 or More Days Past Due and Still Accruing		Nonaccruals (Including Impaired Nonaccruals)
Consumer Real Estate
Equity lines	$	---	$	---	$	---	$	---
Closed-ended consumer real estate		1,735		658		346		313
Consumer construction		---		---		---		---
Consumer Non Real Estate
Credit cards		26		8		8		---
Consumer general		270		38		38		---
Consumer overdraft		---		---		---		---
Commercial Real Estate
College housing		452		250		---		250
Office/retail		---		---		---		---
Nursing homes		---		---		---		---
Hotels		616		526		---		1,397
Municipalities		---		---		---		---
Medical professionals		---		---		---		---
Religious organizations		---		---		---		---
Convenience stores		---		---		---		---
Entertainment and sports		---		---		---		---
Nonprofits		---		---		---		---
Restaurants		---		---		---		---
General contractors		103		---		---		703
Other commercial real estate		815		488		63		1,112
Commercial and Industrial
Commercial and industrial		31		26		26		139
Construction, Development and Land
Residential		---		1,290		---		1,290
Commercial		252		---		---		---
Total	$	4,300	$	3,284	$	481	$	5,204

(1)Segments at December 31, 2011 are reported using the segmentation method in effect for 2011. The Company began reporting under revised segments beginning in 2012.

Non-impaired loans by credit quality indicator

The following displays non-impaired loans by credit quality indicator.

June 30, 2012

	Pass		Special Mention		Classified (Excluding Impaired)
Real Estate Construction
Construction, 1-4 family residential	$	14,005	$	---	$	---
Construction, other		30,370		2,961		---
Consumer Real Estate
Equity lines		18,919		99		---
Closed-end first liens		114,131		515		1,704
Closed-end junior liens		6,495		133		170
Commercial Real Estate
Multifamily residential real estate		35,064		---		---
Commercial real estate owner-occupied		160,866		208		890
Commercial real estate other		94,145		3,151		---
Commercial Non Real Estate
Commercial and industrial		38,158		17		294
Public Sector and IDA
States and political subdivisions		18,121		---		---
Consumer Non Real Estate
Credit cards		6,360		---		---
Automobile		12,792		82		11
Other consumer		12,583		51		11
Total	$	562,009	$	7,217	$	3,080

The following displays non-impaired loans by credit quality indicator.

December 31, 2011(1)

	Pass		Special Mention		Classified (Excluding Impaired)
Consumer Real Estate
Equity lines	$	17,971	$	---	$	14
Closed-ended consumer real estate		87,882		595		1,332
Consumer construction		2,050		---		---
Consumer Non Real Estate
Credit cards		6,594		---		1
Consumer general		22,679		42		105
Consumer overdraft		285		---		1
Commercial Real Estate
College housing		88,157		452		215
Office/retail		73,106		420		267
Nursing homes		16,173		---		---
Hotel		24,498		---		616
Municipalities		19,230		---		---
Medical professionals		18,577		---		---
Religious organizations		15,852		---		---
Convenience stores		10,519		---		---
Entertainment and sports		7,346		---		---
Nonprofit		3,265		3,170		---
Restaurants		6,138		---		387
General contractors		4,550		109		247
Other commercial real estate		63,422		---		790
Commercial and Industrial
Commercial and industrial		37,252		196		137
Construction, Development and Land
Residential		15,732		---		---
Commercial		22,409		2,961		130
Total	$	563,687	$	7,945	$	4,242

(1)Segments at December 31, 2011 are reported using the segmentation method in effect for 2011. The Company began reporting under revised segments beginning in 2012.

Troubled debt restructurings

The Company modified loans that were classified troubled debt restructurings during the six months ended June 30, 2012.  The following table present restructurings by class that occurred during the period.

Note: Only classes with restructured loans are presented.

	Restructurings That Occurred During the Three Months Ended June 30, 2012
	Number of Contracts		Pre-Modification Outstanding Principal Balance		Post-Modification Outstanding Principal Balance		Impairment Accrued
Consumer Real Estate
Residential closed-end first liens		2	$	201	$	146	$	---
Residential closed-end junior liens		1		147		93		---
Commercial Real Estate
Commercial real estate, owner occupied		1		680		680		21
Commercial Non Real Estate
Commercial and industrial		1		400		400		176
Total		5	$	1,428	$	1,319	$	197

	Restructurings That Occurred During the Six Months Ended June 30, 2012
	Number of Contracts		Pre-Modification Outstanding Principal Balance		Post-Modification Outstanding Principal Balance		Impairment Accrued
Consumer Real Estate
Residential closed-end first liens		4	$	351	$	310	$	47
Residential closed-end junior liens		1		147		93		---
Commercial Real Estate
Commercial real estate, owner occupied		2		697		702		21
Commercial Non Real Estate
Commercial and industrial		1		400		400		176
Total		8	$	1,595	$	1,505	$	244

The following table presents restructured loans that were modified between the dates of July 1, 2011 and June 30, 2012 and that experienced payment default during the 3 and six months ended June 30, 2012. The company defines default as one or more payments that occur more than 90 days past the due date.

Restructured loans that were modified between July 1, 2011 and June 30, 2012 and defaulted during the
		3 Months ended June 30, 2012								6 Months Ended June 30, 2012
	Number of Contracts			Principal Balance			Impairment Accrued			Number of Contracts		Principal Balance			Impairment Accrued
Consumer Real Estate
Residential closed-end first liens			2		$	123		$	-		2		$	123		$	-
Residential closed-end junior liens			1			93			-		1			93			-
Commercial Non Real Estate
Commercial and industrial			1			675			21		1			675			21
Total			4		$	891		$	21		4		$	891		$	21