LOANS (Tables)

3 Months Ended

Mar. 31, 2014

Schedule of the major classifications of loans

(In thousands)	March 31, 2014			December 31, 2013
Commercial real estate mortgage loans	$	521,758		$	484,900
Multi-family mortgage loans	144,297			107,488
Residential real estate mortgage loans	164,596			153,417
Commercial, financial, and agricultural loans	248,004			209,452
Real estate-construction and land loans	44,634			46,981
Installment/consumer loans	10,702			9,287
Total loans	1,133,991			1,011,525
Net deferred loan costs and fees	1,739			1,738
	1,135,730			1,013,263
Allowance for loan losses	(16,369		)	(16,001		)
Net loans	$	1,119,361		$	997,262

Schedule of loans by class categorized by internally assigned credit risk grades

Grades:

March 31, 2014

Pass

Special Mention

Substandard

Doubtful

Total

(In thousands)

Commercial real estate:

Owner occupied

189,319

11,444

8,787

—

209,550

Non-owner occupied

302,759

5,537

3,912

—

312,208

Multi-Family

138,310

2,674

3,313

—

144,297

Residential real estate:

Residential mortgage

92,900

259

2,504

95,663

Home equity

65,965

1,081

1,887

68,933

Commercial:

Secured

81,683

2,958

2,172

—

86,813

Unsecured

155,903

4,286

1,002

—

161,191

Real estate construction and land loans

44,264

—

370

—

44,634

Installment/consumer loans

10,459

144

—

10,702

Total loans

1,081,562

28,383

24,046

—

1,133,991

	Grades:
December 31, 2013	Pass		Special Mention		Substandard		Doubtful		Total
(In thousands)
Commercial real estate:
Owner occupied	$	164,502	$	11,828	$	7,336	$	—	$	183,666
Non-owner occupied	291,758		5,490		3,986		—		301,234
Multi-family loans	107,488		—		—		—		107,488
Residential real estate:
First lien	87,288		264		2,847		—		90,399
Home equity	60,285		1,014		1,719		—		63,018
Commercial:
Secured	69,475		4,320		2,175		—		75,970
Unsecured	128,655		3,749		1,078		—		133,482
Real estate construction and land loans	46,311		—		670		—		46,981
Installment/consumer loans	9,144		44		99		—		9,287
Total loans	$	964,906	$	26,709	$	19,910	$	—	$	1,011,525

Schedule of the aging of the recorded investment in past due loans by class of loans

March 31, 2014

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

—

195

585

1,662

2,442

207,108

209,550

Non-owner occupied

192

370

—

655

311,553

312,208

Multi-Family

983

—

488

—

1,471

142,826

144,297

Residential real estate:

Residential mortgages

—

1,279

94,384

95,663

Home equity

337

155

797

1,339

67,594

68,933

Commercial:

Secured

—

86,766

86,813

Unsecured

712

—

747

160,444

161,191

Real estate construction and land loans

—

44,634

Installment/consumer loans

—

10,641

10,702

Total loans

2,179

468

1,598

3,796

8,041

1,125,950

1,133,991

December 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	$	327	$	201	$	1	$	1,072	$	1,601	$	182,065	$	183,666
Non-owner occupied	—		193		—		617		810		300,424		301,234
Multi-family loans	—		—		—		—		—		107,488		107,488
Residential real estate:
First lien	329		—		—		1,286		1,615		88,784		90,399
Home equity	341		127		—		767		1,235		61,783		63,018
Commercial:
Secured	—		—		—		58		58		75,912		75,970
Unsecured	—		20		—		21		41		133,441		133,482
Real estate construction and land loans	—		—		—		—		—		46,981		46,981
Installment/consumer loans	5		6		—		—		11		9,276		9,287
Total loans	$	1,002	$	547	$	1	$	3,821	$	5,371	$	1,006,154	$	1,011,525

Schedule of individually impaired loans by class

	March 31, 2014						Three Months Ended March 31, 2014
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	4,285	$	4,670	$	—	$	4,301	$	29
Non-owner occupied	916		916		—		916		15
Residential real estate:
Residential mortgages	1,127		1,882		—		1,128		—
Home equity	593		950		—		593		—
Commercial:
Secured	345		345		—		348		6
Unsecured	169		169		—		172		3
Real estate construction and land loans	—		—		—		—		—
Installment/consumer loans	—		—		—		—		—
Total with no related allowance recorded		7,435		8,932		—		7,458		53

With an allowance recorded:
Commercial real estate - Owner occupied		720		720		95		720		—
Residential real estate - Residential mortgage	152		156		44		152		—
Residential real estate - Home equity	204		216		91		204		—
Total with an allowance recorded:		1,076		1,092		230		1,076		—

Total:
Commercial real estate:
Owner occupied		5,005		5,390		95		5,021		29
Non-owner occupied	916		916		—		916		15
Residential real estate:
Residential mortgages	1,279		2,038		44		1,280		—
Home equity	797		1,166		91		797		—
Commercial:
Secured	345		345		—		348		6
Unsecured	169		169		—		172		3
Real estate construction and land loans	—		—		—		—		—
Installment/consumer loans	—		—		—		—		—
Total	$	8,511	$	10,024	$	230	$	8,534	$	53

							Three Months Ended
	December 31, 2013						March 31, 2013
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,696	$	3,805	$	—	$	3,846	$	29
Non-owner occupied	917		917		—		916		15
Residential real estate:
First lien	1,463		2,213		—		1,641		6
Home equity	689		1,046		—		891		—
Commercial:
Secured	352		352		—		477		7
Unsecured	174		—		—		65		1
Total with no related allowance recorded	7,291		8,333		—		7,836		58

With an allowance recorded:
Commercial real estate - Owner occupied	720		720		94		—		—
Commercial real estate - Non-owner occupied	617		617		22		207		3
Residential real estate - First lien	152		156		42		—		—
Residential real estate - Home equity	78		89		80		84		—
Commercial - Unsecured	—		—		—		358		—
Total with an allowance recorded:	1,567		1,582		238		649		3

Total:
Commercial real estate:
Owner occupied	4,416		4,525		94		3,846		29
Non-owner occupied	1,534		1,534		22		1,123		18
Residential real estate:
First lien	1,615		2,369		42		1,641		6
Home equity	767		1,135		80		975		—
Commercial:
Secured	352		352		—		477		7
Unsecured	174		—		—		423		1
Total	$	8,858	$	9,915	$	238	$	8,485	$	61

Schedule of loans receivable by class modified as troubled debt restructurings

	Three Months Ended March 31,
	2014					2013
(In thousands)	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post - Modification Outstanding Recorded Investment		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

Summary of activity in the accretable yield for the purchased credit impaired loans

	Three Months Ended
(In thousands)	March 31, 2014
Balance at beginning of period	$	—
Accretable discount arising from acquisition of PCI loans	7,154
Accretion	(288		)
Reclassification from (to) non-accretable difference during the period	—
Other changes in expected cash flows	—
Accretable discount at end of period	$	6,866