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

3 Months Ended

Mar. 31, 2013

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 March 31, 2013
	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, 2012	$	1,070		$	2,263		$	3,442		$	959		$	142		$	424		$	49			$	8,349
Charge-offs		(184	)		(53	)		(35	)		(404	)		---			(78	)		---				(754	)
Recoveries		---			---			---			16			---			9			---				25
Provision for loan losses		287			(364	)		(118	)		705			(32	)		230			(37	)			671
Balance, March 31, 2013	$	1,173		$	1,846		$	3,289		$	1,276		$	110		$	585		$	12			$	8,291

	Activity in the Allowance for Loan Losses for the Three Months Ended March 31, 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		---			(95	)		(537	)		---			---			(68	)		---		(700	)
Recoveries		---			---			---			---			---			23			---		23
Provision for loan losses		(405	)		1,102			242			(347	)		(147	)		124			103		672
Balance, March 31, 2012	$	674		$	2,252		$	3,220		$	1,126		$	85		$	482		$	224	$	8,063

	Allowance for Loan Losses as of March 31, 2013
	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		$	---		$	---		$	269		$	1		$	---		$	3		$	---		$	273
Collectively evaluated for impairment			1,173			1,846			3,020			1,275			110			582			12			8,018
Total		$	1,173		$	1,846		$	3,289		$	1,276		$	110		$	585		$	12		$	8,291

	Allowance for Loan Losses as of December 31, 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		$	---		$	43		$	273		$	231		$	---		$	7		$	---		$	554
Collectively evaluated for impairment			1,070			2,220			3,169			728			142			417			49			7,795
Total		$	1,070		$	2,263		$	3,442		$	959		$	142		$	424		$	49		$	8,349

	Loans as of March 31, 2013
	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		$	6,492		$	478		$	9,927		$	318		$	---		$	43		$	---		$	17,258
Collectively evaluated for impairment			44,356			139,216			284,651			35,160			26,686			28,538			---			558,607
Total loans		$	50,848		$	139,694		$	294,578		$	35,478		$	26,686		$	28,581		$	---		$	575,865

	Loans as of December 31, 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		$	6,643		$	864		$	10,329		$	574		$	---		$	46		$	---		$	18,456
Collectively evaluated for impairment			43,670			142,398			293,979			36,775			26,169			31,668			---			574,659
Total		$	50,313		$	143,262		$	304,308		$	37,349		$	26,169		$	31,714		$	---		$	593,115

Summary of ratios for the allowance for loan losses

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

	Three Months Ended March 31,						Year Ended December 31,
	2013			2012			2012
Ratio of allowance for loan losses to the end of period loans, net of unearned income and deferred fees		1.44	%		1.38	%		1.41	%
Ratio of net charge-offs to average loans, net of unearned income and deferred fees(1)		0.50	%		0.46	%		0.49	%

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

Summary of nonperforming assets

A summary of nonperforming assets follows.

	March 31,						December 31,
	2013			2012			2012
Nonperforming assets:
Nonaccrual loans	$	10,734		$	1,789		$	10,870
Restructured loans in nonaccrual		1,691			3,539			2,151
Total nonperforming loans		12,425			5,328			13,021
Other real estate owned, net		1,094			940			1,435
Total nonperforming assets	$	13,519		$	6,268		$	14,456
Ratio of nonperforming assets to loans, net of unearned income and deferred fees, plus other real estate owned		2.35	%		1.07	%		2.44	%
Ratio of allowance for loan losses to nonperforming loans(1)		66.73	%		151.33	%		64.12	%

(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.

	March 31,						December 31,
	2013			2012			2012
Loans past due 90 days or more and still accruing	$	568		$	210		$	170
Ratio of loans past due 90 days or more and still accruing to loans, net of unearned income and deferred fees		0.10	%		0.04	%		0.03	%
Accruing restructured loans	$	5,732		$	3,742		$	2,005
Impaired loans:
Impaired loans with no valuation allowance	$	16,263		$	9,933		$	16,974
Impaired loans with a valuation allowance		995			3,054			1,482
Total impaired loans	$	17,258		$	12,987		$	18,456
Valuation allowance		(273	)		(593	)		(554	)
Impaired loans, net of allowance	$	16,985		$	12,394		$	17,902
Average recorded investment in impaired loans(1)	$	17,935		$	14,555		$	13,540
Interest income recognized on impaired loans, after designation as impaired	$	10		$	24		$	9
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 March 31, 2013
	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	$	123	$	118	$	118	$	---	$	---
Construction, other		6,369		6,334		6,334		---		---
Consumer Real Estate
Equity lines		---		---		---		---		---
Residential closed-end first liens		315		315		315		---		---
Residential closed-end junior liens		80		80		80		---		---
Investor-owned residential real estate		83		84		84		---		---
Commercial Real Estate
Multifamily real estate		4,421		4,417		4,417		---		---
Commercial real estate, owner occupied		5,506		5,513		4,587		926		269
Commercial real estate, other		---		---		---		---		---
Commercial Non Real Estate
Commercial and Industrial		318		318		291		27		1
Public Sector and IDA
Public sector and IDA		---		---		---		---		---
Consumer Non Real Estate
Credit cards		---		---		---		---		---
Automobile		43		43		---		43		3
Other consumer loans		---		---		---		---		---
Total	$	17,258	$	17,222	$	16,226	$	996	$	273

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

	Impaired Loans as of December 31, 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	$	123	$	118	$	118	$	---	$	---
Construction, other		6,520		6,487		6,487		---		---

Consumer Real Estate
Equity lines		---		---		---		---		---
Residential closed-end first liens		783		785		634		151		43
Residential closed-end junior liens		81		81		81		---		---

Commercial Real Estate
Multifamily real estate		5,284		5,288		5,288		---		---
Commercial real estate, owner occupied		5,045		5,043		4,293		750		273
Commercial real estate, other		---		---		---		---		---

Commercial Non Real Estate
Commercial and Industrial		574		574		39		535		231

Public Sector and IDA
Public sector and IDA		---		---		---		---		---

Consumer Non Real Estate
Credit cards		---		---		---		---		---
Automobile		46		46		---		46		7
Other consumer loans		---		---		---		---		---
Total	$	18,456	$	18,422	$	16,940	$	1,482	$	554

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

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

	For the Three Months Ended March 31, 2013
	Average Recorded Investment(1)		Interest Income Recognized
Real Estate Construction
Construction, residential	$	118	$	---
Construction, other		6,486		---
Consumer Real Estate
Equity lines		---		---
Residential closed-end first liens		392		---
Residential closed-end junior liens		142		---
Investor-owned residential real estate		84		---
Commercial Real Estate
Multifamily real estate		4,540		---
Commercial real estate, owner occupied		5,599		10
Commercial real estate, other		---		---
Commercial Non Real Estate
Commercial and Industrial		574		---
Public Sector and IDA
Public sector and IDA		---		---
Consumer Non Real Estate
Credit cards		---		---
Automobile		---		---
Other consumer		---		---
Total	$	17,935	$	10

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

	Average Investment and Interest Income for Impaired Loans
	For the Year Ended December 31, 2012
	Average Recorded Investment(1)		Interest Income Recognized
Real Estate Construction
Construction, residential	$	1,171	$	---
Construction, other		4,290		1

Commercial Real Estate
Equity lines		101		---
Residential closed-end first liens		873		2
Residential closed-end junior liens		234		---

Commercial Real Estate
Multifamily real estate		1,466		5
Commercial real estate, owner occupied		4,806		1
Commercial real estate, other		---		---

Commercial Non Real Estate
Commercial and Industrial		570		---

Public Sector and IDA
Public sector and IDA		---		---

Consumer Non Real Estate
Credit cards		---		---
Automobile		4		---
Other consumer		25		---
Total	$	13,540	$	9

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

Analysis of past due and nonaccrual loans

An analysis of past due and nonaccrual loans as of March 31, 2013 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	$	---	$	123	$	---	$	123
Construction, other		30		---		---		2,869
Consumer Real Estate
Equity lines		22		49		49		---
Residential closed-end first liens		1,236		731		414		626
Residential closed-end junior liens		336		170		51		119
Investor-owned residential real estate		196		---		---		3
Commercial Real Estate
Multifamily real estate		943		254		---		4,421
Commercial real estate, owner occupied		670		2,806		---		3,810
Commercial real estate, other		256		---		---		---
Commercial Non Real Estate
Commercial and Industrial		265		258		---		411
Public Sector and IDA
Public sector and IDA		---		---		---		---
Consumer Non Real Estate
Credit cards		24		6		6		---
Automobile		185		42		42		43
Other consumer loans		132		6		6		---
Total	$	4,295	$	4,445	$	568	$	12,425

An analysis of past due and nonaccrual loans follows:

December 31, 2012
	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	$	---	$	123	$	---	$	123
Construction, other		31		89		---		3,109

Consumer Real Estate
Equity lines		22		30		30		98
Residential closed-end first liens		1,507		605		126		801
Residential closed-end junior liens		121		39		---		120

Commercial Real Estate
Multifamily real estate		671		261		---		4,624
Commercial real estate, owner occupied		1,113		---		---		3,536
Commercial real estate, other		40		2,089		---		---

Commercial Non Real Estate
Commercial and Industrial		291		505		---		561

Public Sector and IDA
Public sector and IDA		---		---		---		---

Consumer Non Real Estate
Credit cards		20		4		4		---
Automobile		142		10		10		49
Other consumer loans		132		---		---		---
Total	$	4,090	$	3,755	$	170	$	13,021

Non-impaired loans by credit quality indicator

The following displays collectively-evaluated loans by credit quality indicator.

March 31, 2013
	Pass		Special Mention		Classified (Excluding Impaired)
Real Estate Construction
Construction, 1-4 family residential	$	15,993	$	158	$	---
Construction, other		28,154		6,086		30
Consumer Real Estate
Equity lines		17,462		---		84
Closed-end first liens		75,434		283		2,739
Closed-end junior liens		5,410		116		143
Investor-owned residential real estate		37,027		48		48
Commercial Real Estate
Multifamily residential real estate		35,328		---		1,178
Commercial real estate owner-occupied		144,248		215		1,239
Commercial real estate other		93,264		3,092		---
Commercial Non Real Estate
Commercial and Industrial		34,725		151		298
Public Sector and IDA
States and political subdivisions		26,686		---		---
Consumer Non Real Estate
Credit cards		6,292		---		---
Automobile		12,171		122		115
Other consumer		9,269		24		68
Total	$	541,463	$	10,295	$	5,942

The following displays collectively-evaluated loans by credit quality indicator.

December 31, 2012
	Pass		Special Mention		Classified (Excluding Impaired)
Real Estate Construction
Construction, 1-4 family residential	$	14,344	$	158	$	---
Construction, other		29,011		---		120

Consumer Real Estate
Equity lines		17,742		100		182
Closed-end first liens		113,893		652		2,413
Closed-end junior liens		6,713		119		138

Commercial Real Estate
Multifamily residential real estate		36,421		---		324
Commercial real estate owner-occupied		160,188		253		1,079
Commercial real estate other		92,628		3,112		---

Commercial Non Real Estate
Commercial and Industrial		36,372		99		318

Public Sector and IDA
States and political subdivisions		26,170		---		---

Consumer Non Real Estate
Credit cards		6,690		---		---
Automobile		12,344		101		56
Other consumer		11,815		45		105
Total	$	564,331	$	4,639	$	4,735

Troubled debt restructurings

The Company modified loans in troubled debt restructurings during the periods ended March 31, 2013 and March 31, 2012. The following tables present restructurings by class that occurred during the periods.

Note: Only classes with restructured loans are presented.

	Restructurings That Occurred During the Three Months Ended March 31, 2013
	Number of Contracts		Pre-Modification Outstanding Principal Balance		Post-Modification Outstanding Principal Balance
Real Estate Construction
Construction, other		1	$	3,500	$	3,500
Commercial Real Estate
Commercial real estate, owner occupied		1		154		239
Total		2	$	3,654	$	3,739

	Restructurings that occurred during the Three Months Ended March 31, 2012
	Number of Contracts		Pre-Modification Outstanding Principal Balance		Post-Modification Outstanding Principal Balance		Impairment Accrued
Consumer Real Estate
Closed-end first liens		3	$	305	$	324	$	47
Closed-end junior liens		1		143		147		109
Commercial Real Estate
Commercial real estate, owner occupied		1		17		22		---
Total		5	$	465	$	493	$	156

The following tables present restructured loans that defaulted during the three-month periods ended March 31, 2013 and March 31, 2012 and that were modified within 12 months prior to default. The company defines default as one or more payments that occur more than 90 days past the due date, or charge-offs after the date of restructuring.

	Restructured Loans That Defaulted During the Three Months Ended March 31, 2013 That Were Modified Within 12 Months Prior to Default
	Number of Contracts	Principal Balance
Consumer Real Estate
Residential closed-end first liens	1	$	101
Residential closed-end junior liens	1		88
Commercial Real Estate
Commercial real estate owner-occupied	1		663
Commercial Non Real Estate
Commercial and industrial	1		219
Total	4	$	1,071

	Restructured Loans That Defaulted During the Three Months Ended March 31, 2012 That Were Modified Within 12 Months Prior to Default
	Number of Contracts	Principal Balance
Consumer Real Estate
Closed-end first liens	1	$	17
Commercial Real Estate
Multifamily	1		250
Commercial Non Real Estate
Commercial and industrial	1		58
Consumer Non Real Estate
Other consumer	1		67
Total	4	$	392