LOANS (Tables)

3 Months Ended

Mar. 31, 2015

LOANS

Schedule of the major classifications of loans

(In thousands)	March 31, 2015			December 31, 2014
Commercial real estate mortgage loans	$	625,155		$	595,397
Multi-family mortgage loans	246,485			218,985
Residential real estate mortgage loans	157,204			156,156
Commercial, financial, and agricultural loans	297,625			291,743
Real estate-construction and land loans	63,377			63,556
Installment/consumer loans	10,783			10,124
Total loans	1,400,629			1,335,961
Net deferred loan costs and fees	2,500			2,366
	1,403,129			1,338,327
Allowance for loan losses	(18,260		)	(17,637		)
Net loans	$	1,384,869		$	1,320,690

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

	Grades:
March 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
(In thousands)
Commercial real estate:
Owner occupied	$	249,262	$	5,729	$	5,930	$	—	$	260,921
Non-owner occupied	358,908		1,334		3,992		—		364,234
Multi-Family	246,384		16		85		—		246,485
Residential real estate:
Residential mortgage	88,177		—		936		—		89,113
Home equity	66,353		359		1,379		—		68,091
Commercial:
Secured	91,425		419		2,429		—		94,273
Unsecured	198,053		3,690		1,609		—		203,352
Real estate construction and land loans	63,012		—		365		—		63,377
Installment/consumer loans	10,581		100		102		—		10,783
Total loans	$	1,372,155	$	11,647	$	16,827	$	—	$	1,400,629

	Grades:
December 31, 2014	Pass		Special Mention		Substandard		Doubtful		Total
(In thousands)
Commercial real estate:
Owner occupied	$	243,512	$	7,133	$	5,963	$	—	$	256,608
Non-owner occupied	334,790		171		3,828		—		338,789
Multi-Family	217,855		202		928		—		218,985
Residential real estate:
Residential mortgage	88,405		—		1,613				90,018
Home equity	64,994		212		932				66,138
Commercial:
Secured	91,007		621		2,339		—		93,967
Unsecured	191,942		4,168		1,666		—		197,776
Real estate construction and land loans	63,190		—		366		—		63,556
Installment/consumer loans	9,921		100		103		—		10,124
Total loans	$	1,305,616	$	12,607	$	17,738	$	—	$	1,335,961

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

March 31, 2015	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	$	—	$	—	$	182	$	582	$	764	$	260,157	$	260,921
Non-owner occupied	—		—		—		—		—		364,234		364,234
Multi-Family	—		—				—		—		246,485		246,485
Residential real estate:
Residential mortgages	1		—		—		140		141		88,972		89,113
Home equity	269		275		143		1,127		1,814		66,277		68,091
Commercial and Industrial:
Secured	44		—		—		330		374		93,899		94,273
Unsecured	—		—		—		160		160		203,192		203,352
Real estate construction and land loans	—		—		—		—		—		63,377		63,377
Installment/consumer loans	22		—		—		3		25		10,758		10,783
Total loans	$	336	$	275	$	325	$	2,342	$	3,278	$	1,397,351	$	1,400,629

December 31, 2014	30-59 Days Past Due		60-89 Days Past Due		>90Days 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	$	—	$	184	$	—	$	595	$	779	$	255,829	$	256,608
Non-owner occupied	181		—		10		10		201		338,588		338,789
Multi-Family	—		—		—		—		—		218,985		218,985
Residential real estate:
Residential mortgage	—		—		—		143		143		89,875		90,018
Home equity	919		—		134		374		1,427		64,711		66,138
Commercial and Industrial:
Secured	—		—		—		—		—		93,967		93,967
Unsecured	25		—		—		222		247		197,529		197,776
Real estate construction and land loans	—		—		—		—		—		63,556		63,556
Installment/consumer loans	1		—		—		3		4		10,120		10,124
Total loans	$	1,126	$	184	$	144	$	1,347	$	2,801	$	1,333,160	$	1,335,961

Schedule of individually impaired loans by class

	March 31, 2015						Three Month Ended March 31, 2015
(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	$	3,848	$	4,318	$	—	3,854		$	28
Non-owner occupied	946		946		—		947		15
Residential real estate:
Residential mortgage	140		230		—		141		—
Home equity	977		1,199		—		309		—
Commercial:
Secured	114		114		—		48		1
Unsecured	—		—		—		—		—
Total with no related allowance recorded	$	6,025	$	6,807	$	—	$	5,299	$	44
With an allowance recorded:
Commercial real estate - Non-owner occupied	$	321	$	321	$	21	$	322	$	4
Residential real estate - Home equity	150		150		150		50		—
Commercial - Secured	330		330		253		330		—
Commercial - Unsecured	244		248		4		252		3
Total with an allowance recorded:	$	1,045	$	1,049	$	428	$	954	$	7
Total:
Commercial real estate:
Owner occupied	$	3,848	$	4,318	$	—	$	3,854	$	28
Non-owner occupied	1,267		1,267		21		1,269		19
Residential real estate:
Residential mortgage	140		230		—		141		—
Home equity	1,127		1,349		150		359		—
Commercial:
Secured	444		444		253		378		1
Unsecured	244		248		4		252		3
Total	$	7,070	$	7,856	$	428	$	6,253	$	51

							Three Months Ended
	December 31, 2014						March 31, 2014
December 31, 2014	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	$	3,562	$	3,707	$	—	4,301		$	29
Non-owner occupied	1,251		1,568		—		916		15
Residential real estate:
Residential mortgage	143		231		—		1,128		—
Home equity	169		377		—		593		—
Commercial:
Secured	345		345		—		348		6
Unsecured	—		—		—		172		3
Total with no related allowance recorded	$	5,470	$	6,228	$	—	$	7,458	$	53
With an allowance recorded:
Commercial real estate- Owner occupied	—		—		—		720		—
Commercial real estate- Non owner occupied	323		323		23		—		—
Residential real estate - Residential mortgage							152		—
Residential real estate - Home equity	72		89		72		204		—
Commercial- Unsecured	337		339		79		—		—
Total with an allowance recorded:	$	732	$	751	$	174	$	1,076	$	—
Total:
Commercial real estate:
Owner occupied	$	3,562	$	3,707	$	—	$	5,021	$	29
Non-owner occupied	1,574		1,891		23		916		15
Residential real estate:
Residential mortgage	143		231		—		1,280		—
Home equity	241		466		72		797		—
Commercial:
Secured	345		345		—		348		6
Unsecured	337		339		79		172		3
Total	$	6,202	$	6,979	$	174	$	8,534	$	53

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

	Three Months Ended
(In thousands)	March 31, 2015
Balance at beginning of period	$	8,432
Accretion	(1,252		)
Reclassification from non-accretable difference during the period	380
Accretable discount at end of period	$	7,560