LOANS (Tables)

3 Months Ended

Mar. 31, 2013

(In thousands)	March 31, 2013			December 31, 2012

Commercial real estate mortgage loans	$	362,886		$	332,782
Multi-family mortgage loans	79,818			66,080
Residential real estate mortgage loans	146,346			143,703
Commercial, financial, and agricultural loans	209,681			197,448
Real estate-construction and land loans	53,242			48,632
Installment/consumer loans	9,042			9,167
Total loans	861,015			797,812
Net deferred loan costs and fees	1,081			634
	862,096			798,446
Allowance for loan losses	(14,924		)	(14,439		)
Net loans	$	847,172		$	784,007

Loans Receivable by Class Categorized by internally assigned credit risk grades

Grades:

March 31, 2013

Pass

Special Mention

Substandard

Doubtful

Total

(In thousands)

Commercial real estate:

Owner occupied

143,616

11,181

10,652

—

165,449

Non-owner occupied

185,064

7,479

4,894

—

197,437

Multi-Family

79,818

—

79,818

Residential real estate:

Residential mortgage

75,518

—

2,833

717

79,068

Home equity

64,760

986

1,414

118

67,278

Commercial:

Secured

83,992

1,771

4,452

—

90,215

Unsecured

116,230

1,564

1,577

119,466

Real estate construction and land loans

49,820

—

3,422

—

53,242

Installment/consumer loans

8,890

107

—

9,042

Total loans

807,708

23,026

29,351

930

861,015

	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	66,080		—		—		—		66,080
Residential real estate:
Residential mortgage	72,157		—		2,846		717		75,720
Home equity	65,956		745		1,282		—		67,983
Commercial:
Secured	81,661		1,447		5,605		—		88,713
Unsecured	105,454		1,948		1,234		99		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

Aging Analysis of Loans Receivable by Class

March 31, 2013	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	$	—	$	—	$	513	$	476	$	989	$	164,460	$	165,449
Non-owner occupied	—		—		—		—		—		197,437		197,437
Multi-Family	—		—		—		—		—		79,818		79,818
Residential real estate:
Residential mortgages	440		—		—		1,358		1,798		77,270		79,068
Home equity	124		554		—		906		1,584		65,694		67,278
Commercial:
Secured	245		—		—		91		336		89,879		90,215
Unsecured	12		—		—		376		388		119,078		119,466
Real estate construction and land loans	—		—		—		—		—		53,242		53,242
Installment/consumer loans	—		50		—		—		50		8,992		9,042
Total loans	$	821	$	604	$	513	$	3,207	$	5,145	$	855,870	$	861,015

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	—		—		—		—		—		66,080		66,080
Residential real estate:
Residential mortgages	—		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

Schedule of impaired loans by class

March 31, 2013	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance
(In thousands)
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,843	$	3,925	$	—
Non-owner occupied	916		916		—
Residential real estate:
Residential mortgages	1,692		2,307		—
Home equity	823		1,292		—
Commercial:
Secured	461		469		—
Total with no related allowance recorded	$	7,735	$	8,909	$	—

With an allowance recorded:
Commercial real estate - Non-owner occupied	$	620	$	620	$	5
Residential real estate - Home equity	83		89		83
Commercial - Unsecured	353		389		235
Total with an allowance recorded:	$	1,056	$	1,098	$	323

Total:
Commercial real estate:
Owner occupied	$	3,843	$	3,925	$	—
Non-owner occupied	1,536		1,536		5
Residential real estate:
Residential mortgages	1,692		2,307		—
Home equity	906		1,381		83
Commercial:
Secured	461		469		—
Unsecured	353		389		235
Total	$	8,791	$	10,007	$	323

December 31, 2012	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance
(In thousands)
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,860	$	3,931	$	—
Non-owner occupied	916		916		—
Residential real estate:
First lien	1,539		2,151		—
Home equity	736		1,094		—
Commercial:
Secured	515		520		—
Unsecured	95		97		—
Total with no related allowance recorded	$	7,661	$	8,709	$	—

With an allowance recorded:
Residential real estate - Home equity	$	274	$	287	$	141
Commercial - Unsecured	273		302		228
Total with an allowance recorded:	$	547	$	589	$	369

Total:
Commercial real estate:
Owner occupied	$	3,860	$	3,931	$	—
Non-owner occupied	916		916		—
Residential real estate:
First lien	1,539		2,151		—
Home equity	1,010		1,381		141
Commercial:
Secured	515		520		—
Unsecured	368		399		228
Total	$	8,208	$	9,298	$	369

	Three months ended March 31,
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
(In thousands)	2013				2012
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,846	$	29	$	4,307	$	41
Non-owner occupied	916		15		916		15
Multi-family	—		—		—		—
Residential real estate:
Residential mortgages	1,641		6		1,541		—
Home equity	891		—		150		—
Commercial:
Secured	477		7		372		4
Unsecured	65		1		—		—
Real estate construction and land loans	—		—		250		—
Total with no related allowance recorded	$	7,836	$	58	$	7,536	$	60

With an allowance recorded:
Commercial real estate - Non-owner occupied	$	207	$	3	$	—	$	—
Residential real estate - Home equity	84		—		891		—
Commercial - Unsecured	358		—		370		—
Total with an allowance recorded:	$	649	$	3	$	1,261	$	—

Total:
Commercial real estate:
Owner occupied	$	3,846	$	29	$	4,307	$	41
Non-owner occupied	1,123		18		916		15
Residential real estate:
Residential mortgages	1,641		6		1,541		—
Home equity	975		—		1,041		—
Commercial:
Secured	477		7		372		4
Unsecured	423		1		370		—
Real estate construction and land loans	—		—		250		—
Installment/consumer loans	—		—		—		—
Total	$	8,485	$	61	$	8,797	$	60

Loans Receivable by class modified as troubled debt restructurings

	For the Three Months Ended
	March 31, 2013
(In thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Commercial real estate:
Non-owner occupied	1	$	620	$	620
Commercial:
Unsecured	1	33		33
Total loans	2	$	653	$	653