LOANS (Tables)

6 Months Ended

Jun. 30, 2013

LOANS

Loans Receivable Composition by Segment

(In thousands)	June 30, 2013			December 31, 2012
Commercial real estate mortgage loans	$	393,394		$	332,782
Multi-family mortgage loans	92,424			66,080
Residential real estate mortgage loans	146,940			143,703
Commercial, financial, and agricultural loans	205,565			197,448
Real estate-construction and land loans	52,279			48,632
Installment/consumer loans	8,970			9,167
Total loans	899,572			797,812
Net deferred loan costs and fees	1,371			634
	900,943			798,446
Allowance for loan losses	(15,130		)	(14,439		)
Net loans	$	885,813		$	784,007

Loans Receivable by Class Categorized by internally assigned credit risk grades

	Grades:
June 30, 2013	Pass		Special Mention		Substandard		Doubtful		Total
(In thousands)
Commercial real estate:
Owner occupied	$	153,526	$	10,885	$	10,512	$	—	$  174,923
Non-owner occupied	207,172		7,434		3,865		—		218,471
Multi-Family	92,424		—		—		—		92,424
Residential real estate:
Residential mortgage	75,477		427		2,813		617		79,334
Home equity	65,066		1,028		1,396		116		67,606
Commercial:
Secured	84,197		1,247		4,367		—		89,811
Unsecured	112,848		1,690		1,216		—		115,754
Real estate construction and land loans	48,870		—		3,409		—		52,279
Installment/consumer loans	8,826		45		99		—		8,970
Total loans	$	848,406	$	22,756	$	27,677	$	733	$  899,572

	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	72,158		—		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		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

June 30, 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	$	1,260	$	—	$	534	$	1,103	$	2,897	$ 172,026	$ 174,923
Non-owner occupied	1,924		—		—		—		1,924		216,547	218,471
Multi-Family	—		—		—		—		—		92,424	92,424
Residential real estate:
Residential mortgages	81		—		—		1,245		1,326		78,008	79,334
Home equity	139		291		—		902		1,332		66,274	67,606
Commercial:
Secured	245		73		—		99		417		89,394	89,811
Unsecured	17		—		—		176		193		115,561	115,754
Real estate construction and land loans	—		—		—		—		—		52,279	52,279
Installment/consumer loans	3		—		—		—		3		8,967	8,970
Total loans	$	3,669	$	364	$	534	$	3,525	$	8,092	$ 891,480	$ 899,572

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

June 30, 2013	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance
(In thousands)
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,729	$	3,818	$	—
Non-owner occupied	916		916		—
Residential real estate:
Residential mortgages	1,424		2,145		—
Home equity	820		1,292		—
Commercial:
Secured	359		419		—
Unsecured	155		190		—
Total with no related allowance recorded	$	7,403	$	8,780	$	—
With an allowance recorded:
Commercial real estate - Owner occupied	$	720	$	720	$	111
Commercial real estate - Non-owner occupied	617		617		5
Residential real estate - Residential mortgage	153		156		37
Residential real estate - Home equity	82		89		82
Total with an allowance recorded:	$	1,572	$	1,582	$	235
Total:
Commercial real estate:
Owner occupied	$	4,449	$	4,538	$	111
Non-owner occupied	1,533		1,533		5
Residential real estate:
Residential mortgages	1,577		2,301		37
Home equity	902		1,381		82
Commercial:
Secured	359		419		—
Unsecured	155		190		—
Total	$	8,975	$	10,362	$	235

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 June 30,
	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	$	3,740	$	29	$	4,312	$	44
Non-owner occupied	916		15		916		15
Residential real estate:
Residential mortgages	1,495		6		1,470		9
Home equity	821		—		801		—
Commercial:
Secured	446		7		370		5
Unsecured	240		1		—		—
Real estate construction and land loans	—		—		250		—
Total with no related allowance recorded	$	7,658	$	58	$	8,119	$	73
With an allowance recorded:
Commercial real estate:
Owner occupied	$	240	$	—	$	—	$	—
Non-owner occupied	618		9		—		—
Residential real estate:
Residential mortgages	155		—		—		—
Home equity	82		—		471		—
Commercial:
Secured	—		—		152		—
Unsecured	—		—		202		—
Total with an allowance recorded:	$	1,095	$	9	$	825	$	—
Total:
Commercial real estate:
Owner occupied	$	3,980	$	29	$	4,312	$	44
Non-owner occupied	1,534		24		916		15
Residential real estate:
Residential mortgages	1,650		6		1,470		9
Home equity	903		—		1,272		—
Commercial:
Secured	446		7		522		5
Unsecured	240		1		202		—
Real estate construction and land loans	—		—		250		—
Total	$	8,753	$	67	$	8,944	$	73

	Six months ended June 30,
	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	$	3,753	$	59	$	4,310	$	86
Non-owner occupied	916		29		916		30
Residential real estate:
Residential mortgages	1,515		13		1,506		15
Home equity	856		—		822		—
Commercial:
Secured	462		13		371		10
Unsecured	245		2		—		—
Real estate construction and land loans	—		—		250		—
Total with no related allowance recorded	$	7,747	$	116	$	8,175	$	141
With an allowance recorded:
Commercial real estate:
Owner occupied	$	120	$	—	$	—	$	—
Non-owner occupied	412		12		—		—
Residential real estate:
Residential mortgages	130		—		—		—
Home equity	83		—		472		—
Commercial:
Secured	—		—		155		—
Unsecured	—		—		208		—
Total with an allowance recorded:	$	745	$	12	$	835	$	—
Total:
Commercial real estate:
Owner occupied	$	3,873	$	59	$	4,310	$	86
Non-owner occupied	1,328		41		916		30
Residential real estate:
Residential mortgages	1,645		13		1,506		15
Home equity	939		—		1,294		—
Commercial:
Secured	462		13		526		10
Unsecured	245		2		208		—
Real estate construction and land loans	—		—		250		—
Total	$	8,492	$	128	$	9,010	$	141

Loans Receivable by class modified as troubled debt restructurings

	For the Six Months Ended
	June 30, 2013
(In thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Commercial real estate:
Owner occupied	—	$	—	$	—
Non-owner occupied	1	620		620
Multi-Family	—	—		—
Residential real estate:
First lien	—	—		—
Home equity	—	—		—
Commercial:
Secured	—	—		—
Unsecured	1	33		33
Installment/consumer loans	—	—		—
Real estate construction and land loans	—	—		—
Total loans	2	$	653	$	653

	For the Six Months Ended
	June 30, 2012
(In thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Originated loans
Commercial real estate:
Owner occupied	1	$	163	$	163
Non-owner occupied	—	—		—
Multi-Family	—	—		—
Residential real estate:
First lien	—	—		—
Home equity	—	—		—
Commercial:
Secured	—	—		—
Unsecured	—	—		—
Installment/consumer loans	—	—		—
Real estate construction and land loans	—	—		—
Total loans	1	$	163	$	163