LOANS (Tables)

6 Months Ended

Jun. 30, 2014

LOANS

Schedule of the major classifications of loans

(In thousands)	June 30, 2014			December 31, 2013
Commercial real estate mortgage loans	$	546,444		$	484,900
Multi-family mortgage loans	173,503			107,488
Residential real estate mortgage loans	160,202			153,417
Commercial, financial, and agricultural loans	261,925			209,452
Real estate-construction and land loans	46,204			46,981
Installment/consumer loans	10,604			9,287
Total loans	1,198,882			1,011,525
Net deferred loan costs and fees	1,979			1,738
	1,200,861			1,013,263
Allowance for loan losses	(16,680		)	(16,001		)
Net loans	$	1,184,181		$	997,262

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

	Grades:
June 30, 2014	Pass		Special Mention		Substandard		Doubtful		Total
(In thousands)
Commercial real estate:
Owner occupied	$	218,953	$	11,127	$	6,693	$	—	$	236,773
Non-owner occupied	302,406		2,444		4,821		—		309,671
Multi-Family	168,679		2,359		2,465		—		173,503
Residential real estate:
Residential mortgage	90,200		180		2,327		—		92,707
Home equity	64,757		1,022		1,716		—		67,495
Commercial:
Secured	89,868		1,197		2,136		—		93,201
Unsecured	163,322		4,472		930		—		168,724
Real estate construction and land loans	45,835		—		369		—		46,204
Installment/consumer loans	10,362		142		100		—		10,604
Total loans	$	1,154,382	$	22,943	$	21,557	$	—	$	1,198,882

	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

June 30, 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	$	—	$	191	$	603	$	676	$	1,470	$	235,303	$	236,773
Non-owner occupied	188		—		103		—		291		309,380		309,671
Multi-Family	—		—		472		—		472		173,031		173,503
Residential real estate:
Residential mortgages	8		—		—		843		851		91,856		92,707
Home equity	124		291		124		745		1,284		66,211		67,495
Commercial:
Secured	—		—		—		47		47		93,154		93,201
Unsecured	115		—		—		10		125		168,599		168,724
Real estate construction and land loans	—		—		—		—		—		46,204		46,204
Installment/consumer loans	7		—		—		6		13		10,591		10,604
Total loans	$	442	$	482	$	1,302	$	2,327	$	4,553	$	1,194,329	$	1,198,882

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

	June 30, 2014						Three Months Ended June 30, 2014				Six Months Ended June 30, 2014
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,647	$	3,773	$	—	$	3,957	$	28	$	4,061	$	56
Non-owner occupied	1,261		1,529		—		965		16		967		32
Residential real estate:
Residential mortgages	692		1,407		—		834		—		981		—
Home equity	543		950		—		576		—		584		—
Commercial:
Secured	357		357		—		358		6		359		13
Unsecured	158		158		—		162		3		167		6
Total with no related allowance recorded	6,658		8,174		—		6,852		53		7,119		107
With an allowance recorded:
Residential real estate - Residential mortgage	151		155		77		152		—		152		—
Residential real estate - Home equity	202		216		93		202		—		203		—
Total with an allowance recorded:	353		371		170		354		—		355		—
Total:
Commercial real estate:
Owner occupied	3,647		3,773		—		3,957		28		4,061		56
Non-owner occupied	1,261		1,529		—		965		16		967		32
Residential real estate:
Residential mortgages	843		1,562		77		986		—		1,133		—
Home equity	745		1,166		93		778		—		787		—
Commercial:
Secured	357		357		—		358		6		359		13
Unsecured	158		158		—		162		3		167		6
Total	$	7,011	$	8,545	$	170	$	7,206	$	53	$	7,474	$	107

							Three Months Ended				Six Months Ended
	December 31, 2013						June 30, 2013				June 30, 2013
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allocated Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate:
Owner occupied	$	3,696	$	3,805	$	—	$	3,740	$	29	$	3,753	$	59
Non-owner occupied	917		917		—		916		15		916		29
Residential real estate:
First lien	1,463		2,213		—		1,495		6		1,515		13
Home equity	689		1,046		—		821		—		856		—
Commercial:
Secured	352		352		—		446		7		462		13
Unsecured	174		—		—		240		1		245		2
Total with no related allowance recorded	7,291		8,333		—		7,658		58		7,747		116
With an allowance recorded:
Commercial real estate - Owner occupied	720		720		94		240		—		120		—
Commercial real estate - Non-owner occupied	617		617		22		618		9		412		12
Residential real estate - First lien	152		156		42		155		—		130		—
Residential real estate - Home equity	78		89		80		82		—		83		—
Commercial - Secured	—		—		—		—		—		—		—
Commercial - Unsecured	—		—		—		—		—		—		—
Total with an allowance recorded:	1,567		1,582		238		1,095		9		745		12
Total:
Commercial real estate:
Owner occupied	4,416		4,525		94		3,980		29		3,873		59
Non-owner occupied	1,534		1,534		22		1,534		24		1,328		41
Residential real estate:
First lien	1,615		2,369		42		1,650		6		1,645		13
Home equity	767		1,135		80		903		—		939		—
Commercial:
Secured	352		352		—		446		7		462		13
Unsecured	174		—		—		240		1		245		2
Total	$	8,858	$	9,915	$	238	$	8,753	$	67	$	8,492	$	128

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

	Six Months Ended
(In thousands)	June 30, 2014
Balance at beginning of period	$	6,866
Accretable discount arising from acquisition of PCI loans	—
Accretion	(488		)
Reclassification from (to) nonaccretable difference during the period	1,307
Other changes in expected cash flows	—
Other	(71		)
Accretable discount at end of period	$	7,614