LOANS (Tables)

12 Months Ended

Dec. 31, 2012

December 31,	2012			2011
(In thousands)
Commercial real estate mortgage loans	$	332,782		$	283,917
Multi-family mortgage loans	66,080			21,402
Residential real estate mortgage loans	143,703			141,027
Commercial, financial and agricultural loans	197,448			116,319
Real estate construction and land loans	48,632			40,543
Installment/consumer loans	9,167			8,565
Total loans	797,812			611,773
Net deferred loan costs and fees	634			370
	798,446			612,143
Allowance for loan losses	(14,439		)	(10,837		)
Net loans	$	784,007		$	601,306

Schedule of changes in the allowance for loan losses

December 31,	2012			2011			2010
(In thousands)
Allowance for loan losses balance at beginning of period	$	10,837		$	8,497		$	6,045
Charge-offs	(1,510		)	(1,681		)	(1,120		)
Recoveries	112			121			72
Net charge-offs	(1,398		)	(1,560		)	(1,048		)
Provision for loan losses charged to operations	5,000			3,900			3,500
Balance at end of period	$	14,439		$	10,837		$	8,497

Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method

December 31, 2012	Commercial Real Estate Mortgage Loans		Multi-family Loans		Residential Real Estate Mortgage Loans			Commercial, Financial and Agricultural Loans			Real Estate Construction and Land Loans			Installment/ Consumer Loans			Total
(In thousands)
Allowance for Loan Losses
Beginning balance	$	3,530	$	395	$	2,280		$	2,895		$	1,465		$	272		$	10,837
Charge-offs	—		—		(1,210		)	(285		)	—			(15		)	(1,510		)
Recoveries	—		—		7			83			—			22			112
Provision	915		844		1,726			1,656			(90		)	(51		)	5,000
Ending balance	$	4,445	$	1,239	$	2,803		$	4,349		$	1,375		$	228		$	14,439

Ending balance: individually evaluated for impairment	$	—	$	—	$	141		$	228		$	—		$	—		$	369

Ending balance: collectively evaluated for impairment	$	4,445	$	1,239	$	2,662		$	4,121		$	1,375		$	228		$	14,070

Loans	$	332,782	$	66,080	$	143,703		$	197,448		$	48,632		$	9,167		$	797,812

Ending balance: individually evaluated for impairment	$	4,776	$	—	$	2,549		$	883		$	—		$	—		$	8,208

Ending balance: collectively evaluated for impairment	$	327,282	$	66,080	$	141,154		$	196,350		$	48,331		$	9,167		$	788,364

Ending balance: loans acquired with deteriorated credit quality	$	724	$	—	$	—		$	215		$	301		$	—		$	1,240

December 31, 2011	Commercial Real Estate Mortgage Loans		Multi-family Loans		Residential Real Estate Mortgage Loans			Commercial, Financial and Agricultural Loans			Real Estate Construction and Land Loans			Installment/ Consumer Loans			Total
(In thousands)
Allowance for Loan Losses
Beginning balance	$	3,310	$	133	$	1,642		$	2,804		$	185		$	423		$	8,497
Charge-offs	—		—		(259		)	(372		)	(864		)	(186		)	(1,681)
Recoveries	—		—		6			96			—			19			121
Provision	220		262		891			367			2,144			16			3,900
Ending balance	$	3,530	$	395	$	2,280		$	2,895		$	1,465		$	272		$	10,837

Ending balance: individually evaluated for impairment	$	—	$	—	$	105		$	162		$	—		$	—		$	267

Ending balance: collectively evaluated for impairment	$	3,530	$	395	$	2,175		$	2,733		$	1,465		$	272		$	10,570

Loans	$	283,917	$	21,402	$	141,027		$	116,319		$	40,543		$	8,565		$	611,773

Ending balance: individually evaluated for impairment	$	5,079	$	—	$	2,942		$	752		$	250		$	—		$	9,023

Ending balance: collectively evaluated for impairment	$	278,202	$	21,402	$	138,085		$	115,364		$	40,029		$	8,565		$	601,647

Ending balance: loans acquired with deteriorated credit quality	$	636	$	—	$	—		$	203		$	264		$	—		$	1,103

Loans Receivable by Class Categorized by internally assigned credit risk grades

Grades:

December 31, 2012

Pass

Special Mention

Substandard

Doubtful

Total

(In thousands)

Commercial real estate:

Owner occupied

138,675

11,285

11,039

—

160,999

Non-owner occupied

159,967

7,523

4,293

—

171,783

Multi-family loans

66,080

—

66,080

Residential real estate:

First lien

72,158

—

2,846

717

75,721

Home equity

65,955

745

1,282

—

67,982

Commercial:

Secured

81,661

1,447

5,605

—

88,713

Unsecured

105,454

1,948

1,234

108,735

Real estate construction and land loans

45,178

—

3,454

—

48,632

Installment/consumer loans

9,058

—

109

—

9,167

Total loans

744,186

22,948

29,862

816

797,812

	Grades:
December 31, 2011	Pass		Special Mention		Substandard		Doubtful		Total
(In thousands)
Commercial real estate:
Owner occupied	$	120,662	$	14,975	$	9,839	$	—	$	145,476
Non-owner occupied	126,016		9,443		2,982		—		138,441
Multi-family loans	21,402		—		—		—		21,402
Residential real estate:
First lien	64,725		—		1,351		1,223		67,299
Home equity	70,947		584		1,972		225		73,728
Commercial:
Secured	52,686		4,258		3,208		—		60,152
Unsecured	53,421		1,613		1,124		9		56,167
Real estate construction and land loans	35,979		—		4,314		250		40,543
Installment/consumer loans	8,283		264		18		—		8,565
Total loans	$	554,121	$	31,137	$	24,808	$	1,707	$	611,773

Aging Analysis of Loans Receivable by Class

December 31, 2012	30-59 Days Past Due		60-89 Days Past Due		>90 Days Past Due And Accruing		Nonaccrual Including 90 Days or More Past Due		Total Past Due and Nonaccrual		Current		Total Loans
(In thousands)
Commercial real estate:
Owner occupied	$	—	$	1,265	$	491	$	492	$	2,248	$	158,751	$	160,999
Non-owner occupied	—		—		—		—		—		171,783		171,783
Multi-family loans	—		—		—		—		—		66,080		66,080
Residential real estate:
First lien	—		158		—		1,203		1,361		74,360		75,721
Home equity	965		—		—		1,010		1,975		66,007		67,982
Commercial:
Secured	—		—		—		136		136		88,577		88,713
Unsecured	22		—		—		426		448		108,287		108,735
Real estate construction and land loans	—		—		—		22		22		48,610		48,632
Installment/consumer loans	—		—		—		—		—		9,167		9,167
Total loans	$	987	$	1,423	$	491	$	3,289	$	6,190	$	791,622	$	797,812

December 31, 2011	30-59 Days Past Due		60-89 Days Past Due		>90 Days Past Due And Accruing		Nonaccrual Including 90 Days or More Past Due		Total Past Due and Nonaccrual		Current		Total Loans
(In thousands)
Commercial real estate:
Owner occupied	$	485	$	1,281	$	406	$	449	$	2,621	$	142,855	$	145,476
Non-owner occupied	—		—		—		—		—		138,441		138,441
Multi-family loans	—		—		—		—		—		21,402		21,402
Residential real estate:
First lien	—		—		—		1,561		1,561		65,738		67,299
Home equity	448		255		—		1,382		2,085		71,643		73,728
Commercial:
Secured	—		—		—		479		479		59,673		60,152
Unsecured	—		53		—		40		93		56,074		56,167
Real estate construction and land loans	—		—		—		250		250		40,293		40,543
Installment/consumer loans	1		—		5		—		6		8,559		8,565
Total loans	$	934	$	1,589	$	411	$	4,161	$	7,095	$	604,678	$	611,773

Schedule of impaired loans by class

December 31, 2012	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized
(In thousands)
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,860	$	3,931	$	—	$	3,816	$	116
Non-owner occupied	916		916		—		916		61
Multi-family loans	—		—		—		—		—
Residential real estate:
First lien	1,539		2,151		—		1,484		35
Home equity	736		1,094		—		768		—
Commercial:
Secured	515		520		—		281		14
Unsecured	95		97		—		42		—
Real estate construction and land loans	—		—		—		2		—
Installment/consumer loans	—		—		—		—		—
Total with no related allowance recorded	7,661		8,709		—		7,309		226

With an allowance recorded:
Residential real estate – Home equity	274		287		141		244		—
Commercial – Unsecured	273		302		228		236		—
Total with an allowance recorded	547		589		369		480		—

Total:
Commercial real estate:
Owner occupied	3,860		3,931		—		3,816		116
Non-owner occupied	916		916		—		916		61
Multi-family loans	—		—		—		—		—
Residential real estate:
First lien	1,539		2,151		—		1,484		35
Home equity	1,010		1,381		141		1,012		—
Commercial:
Secured	515		520		—		281		14
Unsecured	368		399		228		278		—
Real estate construction and land loans	—		—		—		2		—
Installment/consumer loans	—		—		—		—		—
Total	$	8,208	$	9,298	$	369	$	7,789	$	226

December 31, 2011	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized
(In thousands)
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	4,163	$	4,206	$	—	$	4,208	$	415
Non-owner occupied	916		916		—		929		15
Multi-family loans	—		—		—		—		—
Residential real estate:
First lien	338		344		—		346		—
Home equity	688		860		—		778		—
Commercial:
Secured	533		533		—		535		7
Unsecured	—		—		—		—		—
Real estate construction and land loans	250		371		—		250		—
Installment/consumer loans	—		—		—		—		—
Total with no related allowance recorded	6,888		7,230		—		7,046		437

With an allowance recorded:
Residential real estate – First lien	1,223		1,329		76		1,241		—
Residential real estate – Home equity	693		700		29		694		—
Commercial – Secured	219		229		162		235		—
Total with an allowance recorded	2,135		2,258		267		2,170		—

Total:
Commercial real estate:
Owner occupied	4,163		4,206		—		4,208		415
Non-owner occupied	916		916		—		929		15
Multi-family loans	—		—		—		—		—
Residential real estate:
First lien	1,561		1,673		76		1,587		—
Home equity	1,381		1,560		29		1,472		—
Commercial:
Secured	752		762		162		770		7
Unsecured	—		—		—		—		—
Real estate construction and land loans	250		371		—		250		—
Installment/consumer loans	—		—		—		—		—
Total	$	9,023	$	9,488	$	267	$	9,216	$	437

Loans Receivable by class modified as troubled debt restructurings

	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
(In thousands)
Troubled Debt Restructurings
Commercial real estate:
Owner occupied	1	$	163	$	160
Non-owner occupied	—	—		—
Multi-Family	—	—		—
Residential real estate:
First lien	—	—		—
Home equity	—	—		—
Commercial:
Secured	1	387		380
Unsecured	1	42		39
Real estate construction and land loans	—	—		—
Installment/consumer loans	—	—		—
Total loans	3	$	592	$	579

Schedule of selected information about related party loans

	Balance Outstanding
(In thousands)
Balance at December 31, 2011	$	1,050
New loans	—
Effective change in related parties	—
Advances	745
Repayments	(524		)
Balance at December 31, 2012	$	1,271