Note 4 - Allowance for Loan Losses, Nonperforming Assets and Impaired Loans

3 Months Ended

Mar. 31, 2014

Disclosure Text Block Supplement [Abstract]

Allowance for Credit Losses [Text Block]

Note 4:   Allowance for Loan Losses, Nonperforming Assets and Impaired Loans

The allowance for loan losses methodology incorporates individual evaluation of impaired loans and collective evaluation of groups of non-impaired loans. The Company performs ongoing analysis of the loan portfolio to determine credit quality and to identify impaired loans. Credit quality is rated based on the loan’s payment history, the borrower’s current financial situation and the value of the underlying collateral.

Impaired loans are those loans that have been modified in a troubled debt restructure (“TDR” or “restructure”) and larger, non-homogeneous loans that are in nonaccrual or exhibit payment history or financial status that indicate the probability that collection will not occur according to the loan’s terms. Generally, impaired loans are given risk ratings that indicate higher risk, such as “classified” or “other assets especially mentioned.” Impaired loans are individually evaluated to determine appropriate reserves and are measured at the lower of the invested amount or the fair market value. Impaired loans that are not troubled debt restructures and for which fair value measurement indicates an impairment loss are designated nonaccrual. A troubled debt restructure with an impairment loss may accrue interest if the loan shows a satisfactory repayment history for at least 6 months. Please refer to Note 1 of the Company’s 2013 Form 10-K, “Summary of Significant Accounting Policies” for additional information on evaluation of impaired loans and associated specific reserves, and policies regarding nonaccruals, past due status and charge-offs.

Troubled debt restructurings impact the estimation of the appropriate level of the allowance for loan losses. If the restructuring included forgiveness of a portion of principal, the charge-off is included in the historical charge-off rates applied to the collective evaluation methodology. Further, restructured loans are individually evaluated for impairment, with amounts below fair value accrued in the allowance for loan losses. TDRs that experience a payment default are examined to determine whether the default indicates collateral dependency or a decline in estimates of cash flow used in the fair value measurement. TDRs, as well as all impaired loans, that are determined to be collateral dependent are charged down to fair value. Deficiencies indicated by impairment measurements for TDRs that are not collateral dependent may be accrued in the allowance for loan losses or charged off if deemed uncollectible.

The Company evaluated characteristics in the loan portfolio and determined major segments and smaller classes within each segment. These characteristics include collateral type, repayment sources, and (if applicable) the borrower’s business model. The methodology for calculating reserves for collectively-evaluated loans is applied at the class level.

Portfolio Segments and Classes

The segments and classes used in determining the allowance for loan losses are as follows.

Real Estate Construction	Consumer Non Real Estate
Construction, residential	Commercial and Industrial
Construction, other
	Public Sector and IDA
Consumer Real Estate	Public sector and IDA
Equity lines
Residential closed-end first liens	Commercial Non Real Estate
Residential closed-end junior liens	Credit cards
Investor-owned residential real estate	Automobile
	Other consumer loans
Commercial Real Estate
Multifamily real estate
Commercial real estate, owner-occupied
Commercial real estate, other

Historical Loss Rates

The Company’s allowance methodology for collectively-evaluated loans applies historical loss rates by class to current class balances as part of the process of determining required reserves. Class loss rates are calculated as the net charge-offs for the class as a percentage of average class balance. The loss rate for the current quarter is averaged with that of prior periods to obtain the historical loss rate. Two loss rates for each class are calculated: total net charge-offs for the class as a percentage of average class loan balance (“class loss rate”), and total net charge-offs for the class as a percentage of average classified loans in the class (“classified loss rate”). Classified loans are those with risk ratings of “substandard” or higher. Net charge-offs in both calculations include charge-offs and recoveries of classified and non-classified loans as well as those associated with impaired loans. Class historical loss rates are applied to non-classified loan balances at the reporting date, and classified historical loss rates are applied to classified balances at the reporting date.

Risk Factors

In addition to historical loss rates, risk factors pertinent to credit risk for each class are analyzed to estimate reserves for collectively-evaluated loans. Factors include changes in national and local economic and business conditions, the nature and volume of classes within the portfolio, loan quality, loan officers’ experience, lending policies and the Company’s loan review system.

The analysis of certain factors results in standard allocations to all segments and classes. These factors include loan officers’ average years of experience, the risk from changes in lending policies, and the risk from changes in loan review. Factors analyzed for each class, with resultant allocations based upon the level of risk assessed for each class, include levels of past due loans, nonaccrual loans, current class balance as a percentage of total loans, and the percentage of high risk loans (defined to be junior lien mortgages, high loan-to-value loans, and interest only loans) within the class. Additionally, factors specific to each segment are analyzed and result in allocations to the segment.

Real estate construction loans are subject to general risks from changing commercial building and housing market trends and economic conditions that may impact demand for completed properties and the costs of completion. These risks are measured by market-area unemployment rates, bankruptcy rates, housing and commercial building market trends, and interest rates.

The credit quality of consumer real estate is subject to risks associated with the borrower’s repayment ability and collateral value, measured generally by analyzing local unemployment and bankruptcy trends, local housing market trends, and interest rates.

The commercial real estate segment includes loans secured by multifamily residential real estate, commercial real estate occupied by the owner/borrower, and commercial real estate leased to non-owners. Loans in the commercial real estate segment are impacted by economic risks from changing commercial real estate markets, rental markets for multi-family housing and commercial buildings, business bankruptcy rates, local unemployment and interest rate trends that would impact the businesses housed by the commercial real estate.

Commercial non real estate loans are secured by collateral other than real estate, or are unsecured. Credit risk for commercial non real estate loans is subject to economic conditions, generally monitored by local business bankruptcy trends, and interest rates. Public sector and IDA loans are extended to municipalities and related entities. Credit risk is based upon the entity’s ability to repay and interest rate trends.

Consumer non real estate includes credit cards, automobile and other consumer loans. Credit cards and certain other consumer loans are unsecured, while collateral is obtained for automobile loans and other consumer loans. Credit risk stems primarily from the borrower’s ability to repay, measured by average unemployment, average personal bankruptcy rates and interest rates.

Factor allocations applied to each class are increased for loans rated special mention and classified. The Company allocates additional reserves for “high risk” loans.

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, 2014
	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, 2013	$	863		$	1,697		$	3,685		$	989		$	132	$	576		$	285	$	8,227
Charge-offs		(2	)		(54	)		(52	)		---			---		(83	)		---		(191	)
Recoveries		---			---			8			131			---		19			---		158
Provision for loan losses		(11	)		171			53			(259	)		70		17			62		103
Balance, March 31, 2014	$	850		$	1,814		$	3,694		$	861		$	202	$	529		$	347	$	8,297

	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

	Allowance for Loan Losses as of March 31, 2014
	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	$	---	$	9	$	266	$	5	$	---	$	---	$	---	$	280
Collectively evaluated for impairment		850		1,805		3,428		856		202		529		347		8,017
Total	$	850	$	1,814	$	3,694	$	861	$	202	$	529	$	347	$	8,297

	Allowance for Loan Losses as of December 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	$	---	$	10	$	610	$	4	$	---	$	---	$	---	$	624
Collectively evaluated for impairment		863		1,687		3,075		985		132		576		285		7,603
Total	$	863	$	1,697	$	3,685	$	989	$	132	$	576	$	285	$	8,227

	Loans as of March 31, 2014
	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	$	---	$	730	$	11,754	$	94	$	---	$	24	$	---	$	12,602
Collectively evaluated for impairment		42,307		145,623		296,802		31,922		33,706		26,984		---		577,344
Total loans	$	42,307	$	146,353	$	308,556	$	32,016	$	33,706	$	27,008	$	---	$	589,946

	Loans as of December 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	$	---	$	780	$	12,079	$	102	$	---	$	24	$	---	$	12,985
Collectively evaluated for impairment		45,925		144,719		299,187		31,160		34,220		28,399		---		583,610
Total	$	45,925	$	145,499	$	311,266	$	31,262	$	34,220	$	28,423	$	---	$	596,595

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

	Three Months Ended March 31,						Year Ended December 31,
	2014			2013			2013
Ratio of allowance for loan losses to the end of period loans, net of unearned income and deferred fees		1.41	%		1.44	%		1.38	%
Ratio of net charge-offs to average loans, net of unearned income and deferred fees(1)		0.02	%		0.50	%		0.28	%

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

A summary of nonperforming assets follows.

	March 31,						December 31,
	2014			2013			2013
Nonperforming assets:
Nonaccrual loans	$	5,071		$	10,734		$	5,732
Restructured loans in nonaccrual		1,007			1,691			852
Total nonperforming loans		6,078			12,425			6,584
Other real estate owned, net		4,901			1,094			4,712
Total nonperforming assets	$	10,979		$	13,519		$	11,296
Ratio of nonperforming assets to loans, net of unearned income and deferred fees, plus other real estate owned		1.85	%		2.35	%		1.88	%
Ratio of allowance for loan losses to nonperforming loans(1)		136.51	%		66.73	%		124.95	%

⁽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.

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

	March 31,						December 31,
	2014			2013			2013
Loans past due 90 days or more and still accruing	$	163		$	568		$	190
Ratio of loans past due 90 days or more and still accruing to loans, net of unearned income and deferred fees		0.03	%		0.10	%		0.03	%
Accruing restructured loans	$	6,145		$	5,732		$	6,191
Impaired loans:
Impaired loans with no valuation allowance	$	10,139		$	16,263		$	10,372
Impaired loans with a valuation allowance		2,463			995			2,613
Total impaired loans	$	12,602		$	17,258		$	12,985
Valuation allowance		(280	)		(273	)		(624	)
Impaired loans, net of allowance	$	12,322		$	16,985		$	12,361
Average recorded investment in impaired loans(1)	$	13,075		$	17,935		$	16,654
Interest income recognized on impaired loans, after designation as impaired	$	99		$	10		$	267
Amount of income recognized on a cash basis	$	---		$	---		$	---

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

Nonaccrual loans that meet the Company’s balance threshold of $250 and TDRs are designated as impaired. No interest income was recognized on nonaccrual loans for the three months ended March 31, 2014 or March 31, 2013 or for the year ended December 31, 2013.

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, 2014
	Principal Blance		(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)
Residential closed-end first liens	$	399	$	401	$	171	$	230	$	3
Residential closed-end junior liens		253		253		---		253		6
Investor-owned residential real estate		78		78		---		78		---
Commercial Real Estate(2)
Multifamily real estate		3,271		3,268		3,268		---		---
Commercial real estate, owner-occupied		5,346		5,354		3,543		1,811		266
Commercial real estate, other		3,137		3,137		3,137		---		---
Commercial Non Real Estate(2)
Commercial and Industrial		94		94		---		94		5
Consumer Non Real Estate(2)
Automobile		24		24		24		---		---
Total	$	12,602	$	12,609	$	10,143	$	2,466	$	280

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

⁽²⁾     Only classes with impaired loans are shown.

	Impaired Loans as of December 31, 2013
	Principal Blance		(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)
Residential closed-end first liens	$	440	$	442	$	232	$	210	$	3
Residential closed-end junior liens		259		261		---		261		7
Investor-owned residential real estate		81		82		82		---		---
Commercial Real Estate(2)
Multifamily real estate		3,278		3,274		3,274		---		---
Commercial real estate, owner occupied		5,643		5,645		3,864		1,781		610
Commercial real estate, other		3,158		3,158		3,158		---		---
Commercial Non Real Estate(2)
Commercial and Industrial		102		103		1		102		4
Consumer Non Real Estate(2)
Automobile		24		24		24		---		---
Total	$	12,985	$	12,989	$	10,635	$	2,354	$	624

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

⁽²⁾     Only classes with impaired loans are shown.

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

	For the Three Months Ended
	March 31, 2014
	Average Recorded Investment(1)		Interest Income Recognized
Consumer Real Estate(2)
Residential closed-end first liens	$	561	$	4
Residential closed-end junior liens		257		5
Investor-owned residential real estate		79		1
Commercial Real Estate(2)
Multifamily real estate		3,386		---
Commercial real estate, owner occupied		5,515		44
Commercial real estate, other		3,150		44
Commercial Non Real Estate(2)
Commercial and Industrial		101		1
Consumer Non Real Estate(2)
Automobile		26		---
Total	$	13,075	$	99

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

⁽²⁾     Only classes with impaired loans are shown. 

	For the Year Ended December 31, 2013
	Average Recorded Investment(1)		Interest Income Recognized
Real Estate Construction(2)
Construction, residential	$	40	$	---
Construction, other		2,885		---
Commercial Real Estate(2)
Residential closed-end first liens		364		3
Residential closed-end junior liens		280		9
Investor-owned residential real estate		131		6
Commercial Real Estate(2)
Multifamily real estate		4,172		---
Commercial real estate, owner occupied		5,265		136
Commercial real estate, other		3,369		110
Commercial Non Real Estate(2)
Commercial and Industrial		117		3
Consumer Non Real Estate(2)
Automobile		31		---
Total	$	16,654	$	267

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

⁽²⁾     Only classes with impaired loans are shown.

The Company reviews nonaccrual loans on an individual loan basis to determine whether future payments are reasonably assured. To satisfy this criteria, the Company’s evaluation must determine that the underlying cause of the original delinquency or weakness that indicated nonaccrual status has been resolved, such as receipt of new guarantees, increased cash flows that cover the debt service or other resolution. Nonaccrual loans that demonstrate reasonable assurance of future payments and that have made at least six consecutive payments in accordance with repayment terms and timeframes may be returned to accrual status.

A restructured loan for which impairment measurement does not indicate a loss and that maintains current status for at least six months may be returned to accrual status.

An analysis of past due and nonaccrual loans as of March 31, 2014 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	$	163	$	---	$	---	$	---
Construction, other		14		---		---		---
Consumer Real Estate
Equity lines		---		---		---		---
Residential closed-end first liens		1,025		270		148		267
Residential closed-end junior liens		58		---		---		---
Investor-owned residential real estate		334		---		---		17
Commercial Real Estate
Multifamily real estate		728		3,271		---		3,271
Commercial real estate, owner-occupied		128		1,477		---		2,378
Commercial real estate, other		---		---		---		---
Commercial Non Real Estate
Commercial and Industrial		202		43		---		121
Public Sector and IDA
Public sector and IDA		---		---		---		---
Consumer Non Real Estate
Credit cards		2		3		3		---
Automobile		78		36		12		24
Other consumer loans		25		---		---		---
Total	$	2,757	$	5,100	$	163	$	6,078

An analysis of past due and nonaccrual loans follows.

December 31, 2013
	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	$	45	$	---	$	---	$	---
Construction, other		45		---		---		---
Consumer Real Estate
Equity lines		---		---		---		---
Residential closed-end first liens		903		252		128		308
Residential closed-end junior liens		10		---		---		---
Investor-owned residential real estate		422		91		---		91
Commercial Real Estate
Multifamily real estate		430		3,278		---		3,278
Commercial real estate, owner occupied		604		2,519		---		2,756
Commercial real estate, other		32		---		---		---
Commercial Non Real Estate
Commercial and Industrial		196		43		---		128
Public Sector and IDA
Public sector and IDA		---		---		---		---
Consumer Non Real Estate
Credit cards		3		13		13		---
Automobile		217		26		2		23
Other consumer loans		49		46		47		---
Total	$	2,956	$	6,268	$	190	$	6,584

The estimate of credit risk for non-impaired loans is obtained by applying allocations for internal and external factors. The allocations are increased for loans that exhibit greater credit quality risk.

Credit quality indicators, which the Company terms risk grades, are assigned through the Company’s credit review function for larger loans and selective review of loans that fall below credit review thresholds. Loans that do not indicate heightened risk are graded as “pass.” Loans that appear to have elevated credit risk because of frequent or persistent past due status, which is less than 75 days, or that show weakness in the borrower’s financial condition are risk graded “special mention.” Loans with frequent or persistent delinquency exceeding 75 days or that have a higher level of weakness in the borrower’s financial condition are graded “classified.” Classified loans have regulatory risk ratings of “substandard” and “doubtful.” Allocations are increased by 50% and by 100% for loans with grades of “special mention” and “classified,” respectively.

Determination of risk grades was completed for the portfolio as of March 31, 2014 and 2013 and December 31, 2013.

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

March 31, 2014

	Pass		Special Mention		Classified (Excluding Impaired)
Real Estate Construction
Construction, 1-4 family residential	$	14,910	$	163	$	---
Construction, other		27,191		29		14
Consumer Real Estate
Equity lines		15,935		---		15
Closed-end first liens		80,765		658		1,343
Closed-end junior liens		5,279		55		2
Investor-owned residential real estate		41,089		103		379
Commercial Real Estate
Multifamily residential real estate		67,175		---		728
Commercial real estate owner-occupied		131,259		2,175		754
Commercial real estate, other		90,473		1,201		3,037
Commercial Non Real Estate
Commercial and Industrial		30,748		881		293
Public Sector and IDA
States and political subdivisions		33,706		---		---
Consumer Non Real Estate
Credit cards		5,141		---		---
Automobile		11,781		110		22
Other consumer		9,911		12		7
Total	$	565,363	$	5,387	$	6,594

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

December 31, 2013

	Pass		Special Mention (Excluding Impaired)		Classified (Excluding Impaired)
Real Estate Construction
Construction, 1-4 family residential	$	17,702	$	163	$	45
Construction, other		27,971		29		15
Consumer Real Estate
Equity lines		16,146		16		---
Closed-end first liens		82,767		1,007		1,275
Closed-end junior liens		4,813		109		3
Investor-owned residential real estate		38,071		105		407
Commercial Real Estate
Multifamily residential real estate		67,573		---		958
Commercial real estate owner-occupied		134,137		2,206		701
Commercial real estate, other		89,340		1,209		3,063
Commercial Non Real Estate
Commercial and Industrial		29,987		878		295
Public Sector and IDA
States and political subdivisions		24,220		---		---
Consumer Non Real Estate
Credit cards		6,354		---		---
Automobile		11,428		253		34
Other consumer		10,253		17		60
Total	$	570,762	$	5,992	$	6,856

Sales, Purchases and Reclassification of Loans

The Company finances mortgages under “best efforts” contracts with mortgage purchasers. The mortgages are designated as held for sale upon initiation. There have been no major reclassifications from portfolio loans to held for sale. Occasionally, the Company purchases or sells participations in loans. All participation loans purchased met the Company’s normal underwriting standards at the time the participation was entered. Participation loans are included in the appropriate portfolio balances to which the allowance methodology is applied.

Troubled Debt Restructurings

The Company modifies loans in troubled debt restructurings. Total troubled debt restructurings amounted to $7,152 at March 31, 2014, $7,043 at December 31, 2013, and $7,423 at March 31, 2013. The following tables present restructurings by class that occurred during three month period ended March 31, 2014, and the three month period ended March 31, 2013.

Note: Only classes with restructured loans are presented.

	Restructurings That Occurred During the Three Months Ended March 31, 2014
	Number of Contracts		Pre-Modification Outstanding Principal Balance		Post- Modification Outstanding Principal Balance
Commercial Real Estate
Commercial real estate, owner occupied		1	$	184	$	209
Total		1	$	184	$	209

During the three-month period ended March 31, 2014, the Company restructured one loan pursuant to bankruptcy court orders. The restructuring capitalized interest, reduced the interest rate and re-amortized payments. The fair value measurement of the restructured loan resulted in a specific allocation to the allowance for loan losses of $30.

	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

The troubled debt restructurings during the first three months of 2013 provided payment relief to the borrowers without forgiveness of principal or accrued interest. The interest-only period on the real estate construction loan was extended beyond the contract date specified to begin amortization. The commercial real estate loan modification included an extended term, lower interest rate and new funds for debt consolidation to allow the borrower increased debt service ability. As troubled debt restructurings, the loans were individually evaluated under ASC 310. The impairment analysis was based upon the fair value of collateral for the construction loan and upon the present value of cash flows for the commercial real estate loan. The fair value measurements indicated fair values in excess of the loan balances and neither measurement resulted in a specific allocation.

The Company analyzed its TDR portfolio for loans that defaulted during the three-month periods ended March 31, 2014 and March 31, 2013, 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 or foreclosure after the date of restructuring. There were no restructured loans that defaulted and were modified within 12 months prior to default for the three-month period ended March 31, 2014.

The following table presents loans that defaulted and were restructured within 12 months prior to default for the three months ended March 31, 2013:

	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 are individually evaluated for impairment. The fair value measurements for all of the restructured loans that defaulted during the three-month period ended March 31, 2013 were measured using the fair value of collateral and as such, were not significantly affected by the payment default. All were maintained on nonaccrual status as of March 31, 2013.