Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2012

Loans and Allowance for Loan Losses [Abstract]

Schedule details the loans of the Company

	(In Thousands)
	June 30, 2012			December 31, 2011
Mortgage loans on real estate
Residential 1-4 family	$	338,045			344,029
Multifamily		10,497			9,791
Commercial		443,747			422,531
Construction and land development		181,963			166,460
Farmland		26,754			35,691
Second mortgages		13,502			14,711
Equity lines of credit		38,007			39,307
Total mortgage loans on real estate		1,052,515			1,032,520
Commercial loans		35,884			38,736
Agricultural loans		2,476			2,556
Consumer installment loans:
Personal		39,054			41,521
Credit cards		2,959			3,168
Total consumer installment loans		42,013			44,689
Other loans		3,713			6,788
		1,136,601			1,125,289
Net deferred loan fees		(2,366	)		(2,031	)
Total loans, net of deferred loan fees		1,134,235			1,123,258
Less: Allowance for loan losses		(25,267	)		(24,525	)
Net Loans	$	1,108,968		$	1,098,733

Transactions in the allowance for loan losses

	(In Thousands)
	Residential 1-4 Family			Multifamily		Commercial Real Estate			Construction			Farmland			Second Mortgages			Equity Lines of Credit			Commercial			Agricultural		Installment and Other			Total
June 30, 2012
Allowance for loan losses:
Beginning balance	$	5,414			54		8,242			6,223			1,829			326			653			1,309			19		456			24,525
Provision		773			4		2,211			1,889			162			14			(32	)		(610	)		7		48			4,466
Charge-offs		(475	)		—		(1,233	)		(1,567	)		(424	)		(47	)		(41	)		(208	)		—		(144	)		(4,139	)
Recoveries		33			—		63			164			7			—			—			54			—		94			415
Ending balance	$	5,745			58		9,283			6,709			1,574			293			580			545			26		454			25,267
Ending balance individually evaluated for impairment	$	1,350			—		3,422			1,957			1,048			49			36			160			—		—			8,022
Ending balance collectively evaluated for impairment	$	4,395			58		5,861			4,752			526			244			544			385			26		454			17,245
Ending balance loans acquired with deteriorated credit quality	$	—			—		—			—			—			—			—			—			—		—			—
Loans:
Ending balance	$	338,045			10,497		443,747			181,963			26,754			13,502			38,007			35,884			2,476		45,726			1,136,601
Ending balance individually evaluated for impairment	$	10,686			—		21,433			14,999			2,847			882			275			245			—		—			51,367
Ending balance collectively evaluated for impairment	$	327,359			10,497		422,314			166,964			23,907			12,620			37,732			35,639			2,476		45,726			1,085,234
Ending balance loans acquired with deteriorated credit quality	$	—			—		—			—			—			—			—			—			—		—			—

	(In Thousands)
	Residential 1-4 Family			Multifamily		Commercial Real Estate			Construction			Farmland			Second Mortgages			Equity Lines of Credit			Commercial			Agricultural			Installment and Other			Total
December 31, 2011
Allowance for loan losses:
Beginning balance	$	5,140			46		7,285			5,558			988			276			767			1,163			67			887			22,177
Provision		2,311			8		2,228			2,279			1,137			311			18			640			(47	)		(207	)		8,678
Charge-offs		(2,108	)		—		(1,283	)		(1,681	)		(296	)		(268	)		(148	)		(516	)		(1	)		(461	)		(6,762	)
Recoveries		71			—		12			67			—			7			16			22			—			237			432
Ending balance	$	5,414			54		8,242			6,223			1,829			326			653			1,309			19			456			24,525
Ending balance individually evaluated for impairment	$	1,053			—		3,744			2,228			1,193			41			15			754			—			—			9,028
Ending balance collectively evaluated for impairment	$	4,361			54		4,498			3,995			636			285			638			555			19			456			15,497
Ending balance loans acquired with deteriorated credit quality	$	—			—		—			—			-6			—			—			—			—			—			—
Loans:
Ending balance	$	344,029			9,791		422,531			166,460			35.6916			14,711			39,307			38,736			2,556			51,477			1,125,289
Ending balance individually evaluated for impairment	$	11,573			412		23,682			16,633			.4,2616			922			170			849			—			—			58,502
Ending balance collectively evaluated for impairment	$	332,456			9,379		398,849			149,827			,31.4306			13,789			39,137			37.887			2,556			51,477			1,066,787
Ending balance loans acquired with deteriorated credit quality	$	—			—		—			—			-6			—			—			—			—			—			—

Company's impaired loans

	In Thousands
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
June 30, 2012
With no related allowance recorded:
Residential 1-4 family	$	4,479		4,479		—		4,853		120
Multifamily		—		—		—		205		—
Commercial real estate		5,500		5,500		—		6,003		64
Construction		9,430		9,430		—		9,306		34
Farmland		—		—		—		74		—
Second mortgages		728		728		—		729		4
Equity lines of credit		—		—		—		—		—
Commercial		—		—		—		—		—
Agricultural		—		—		—		—		—
	$	20,137		20,137		—		21,170		222
With allowance recorded:
Residential 1-4 family	$	6,207		6,207		1,350		5,831		137
Multifamily		—		—		—		—		—
Commercial real estate		15,933		15,933		3,422		16,466		261
Construction		5,569		5,568		1,957		7,008		31
Farmland		2,847		2,847		1,048		3,477		27
Second mortgages		154		154		49		155		—
Equity lines of credit		275		275		36		223		8
Commercial		245		245		160		433		—
Agricultural		—		—		—		—		—
	$	31,230		31,229		8,022		33,593		464
Total
Residential 1-4 family	$	10,686		10,686		1,350		10,684		257
Multifamily		—		—		—		205		—
Commercial real estate		21,433		21,433		3,422		22,469		325
Construction		14,999		14,998		1,957		16,314		65
Farmland		2,847		2,847		1,048		3,551		27
Second mortgages		882		882		49		884		4
Equity lines of credit		275		275		36		223		8
Commercial		245		245		160		433		—
Agricultural		—		—		—		—		—
	$	51,367		51,366		8,022		54,763		686

	In Thousands
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
December 31, 2011
With no related allowance recorded:
Residential 1-4 family	$	6,263		6,439		—		4,670		271
Multifamily		412		412		—		414		23
Commercial real estate		6,711		6,711		—		4,461		268
Construction		8,418		8,918		—		7,327		186
Farmland		—		—		—		1,366		—
Second mortgages		606		606		—		606		—
Equity lines of credit		—		—		—		93		—
Commercial		—		176		—		51		—
Agricultural		—		—		—		—		—
	$	22,410		23,262		—		18,988		748
With allowance recorded:
Residential 1-4 family	$	5,310		5,310		1,053		7,361		262
Multifamily		—		—		—		—		—
Commercial real estate		16,971		16,971		3,744		15,826		673
Construction		8,215		8,215		2,228		12,250		137
Farmland		4,261		4,261		1,193		3,181		129
Second mortgages		316		316		41		199		10
Equity lines of credit		170		170		15		43		8
Commercial		849		849		754		928		32
Agricultural		—		—		—		—		—
	$	36,092		36,092		9,028		39,788		1,251
Total
Residential 1-4 family	$	11,573		11,749		1,053		12,031		533
Multifamily		412		412		—		414		23
Commercial real estate		23,682		23,682		3,744		20,287		941
Construction		16,633		17,133		2,228		19,577		323
Farmland		4,261		4,261		1,193		4,547		129
Second mortgages		922		922		41		805		10
Equity lines of credit		170		170		15		136		8
Commercial		849		1,025		754		979		32
Agricultural		—		—		—		—		—
	$	58,502	$	59,354		9,028		58,776		1,999

Troubled debt restructuring categorized by loan

	June 30, 2012						December 31, 2011
					Post						Post
					Modification						Modification
			Pre Modification Outstanding Recorded		Outstanding				Pre Modification Outstanding Recorded		Outstanding
					Recorded						Recorded
					Investment,						Investment,
	Number of				Net of Related		Number of				Net of Related
	Contracts		Investment		Allowance		Contracts		Investment		Allowance
Residential 1-4 family		1	$	404	$	404		1	$	3,938	$	3,088
Multifamily		—		—		—		—		—		—
Commercial real estate		1		421		421		—		—		—
Construction		—		—		—		—		—		—
Farmland		—		—		—		—		—		—
Second mortgages		—		—		—		—		—		—
Equity lines of credit		—		—		—		—		—		—
Commercial		—		—		—		1		245		95
Agricultural, installment and other		—		—		—		—		—		—
Total		2	$	825	$	825		1	$	4,183	$	3,088

Credit quality indicators

	(In Thousands)
	Residential 1-4 Family		Multifamily		Commercial Real Estate		Construction		Farmland		Second Mortgages		Equity Lines of Credit		Commercial		Agricultural		Installment and Other		Total
June 30, 2012
Credit Risk Profile by Internally Assigned Grade
Pass	$	321,119		10,444		421,834		166,614		23,694		12,008		37,385		35,528		2,449		45,150		1,076,225
Special Mention		9,900		53		6,346		249		77		657		445		35		5		202		17,969
Substandard		7,026		—		15,567		15,100		2,983		837		177		321		22		374		42,407
Doubtful		—		—		—		—		—		—		—		—		—		—		—
Total	$	338,045		10,497		443,747		181,963		26,754		13,502		38,007		35,884		2,476		45,726		1,136,601
December 31, 2011
Credit Risk Profile by Internally Assigned Grade
Pass	$	326,406		9,245		398,459		149,451		31,251		13,158		38,803		37,691		2,534		51,010		1,058,008
Special Mention		9,537		53		7,963		459		76		517		316		37		—		157		19,115
Substandard		8,086		493		16,109		16,550		4,364		1,036		188		1,008		22		310		48,166
Doubtful		—		—		—		—		—		—		—		—		—		—		—
Total	$	344,029		9,791		422,531		166,460		35,691		14,711		39,307		38,736		2,556		51,477		1,125,289