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LOANS (Tables)
 12 Months Ended
Dec. 31, 2013
LOANS [Abstract]  
Major Classifications of Loans
Major classifications of loans at year-end are summarized as follows:

   
2013
  
2012
 
Residential real estate
 $216,081  $214,743 
Multifamily real estate
  38,456   28,673 
Commercial real estate:
        
Owner occupied
  90,539   91,902 
Non owner occupied
  208,756   178,849 
Commercial and industrial
  85,301   84,430 
Consumer
  25,113   28,128 
All other
  76,524   77,900 
   $740,770  $704,625 
Analysis of Activity with Respect to all Director and Executive Officer Loans
An analysis of the 2013 activity with respect to all director and executive officer loans is as follows:

Balance, December 31, 2012
 $16,639 
Additions, including loans now meeting disclosure requirements
  1,530 
Amounts collected and loans no longer meeting disclosure requirements
  (6,973)
Balance, December 31, 2013
 $11,196 
Activity in the Allowance for Loan Losses by Portfolio Segment
Activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2013 was as follows:

Loan Class
 
Balance
Dec 31, 2012
  
Provision for loan losses
  
Loans charged-off
  
Recoveries
  
Balance
 Dec 31, 2013
 
                 
Residential real estate
 $2,163  $803  $(292) $20  $2,694 
Multifamily real estate
  331   86   -   -   417 
Commercial real estate:
                    
Owner occupied
  1,117   123   (132)  299   1,407 
Non owner occupied
  1,888   163   (14)  -   2,037 
Commercial and industrial
  3,046   (918)  (32)  88   2,184 
Consumer
  244   168   (188)  73   297 
All other
  2,699   (800)  (251)  343   1,991 
Total
 $11,488  $(375) $(909) $823  $11,027 

Activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2012 was as follows:

Loan Class
 
Balance
Dec 31, 2011
  
Provision for loan losses
  
Loans charged-off
  
Recoveries
  
Balance
Dec 31, 2012
 
                 
Residential real estate
 $2,134  $709  $(728) $48  $2,163 
Multifamily real estate
  284   47   -   -   331 
Commercial real estate:
                    
Owner occupied
  918   (68)  (15)  282   1,117 
Non owner occupied
  2,381   (198)  (318)  23   1,888 
Commercial and industrial
  1,880   2,419   (1,259)  6   3,046 
Consumer
  298   72   (227)  101   244 
All other
  1,900   1,279   (606)  126   2,699 
Total
 $9,795  $4,260  $(3,153) $586  $11,488 

Activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2011 was as follows:

Loan Class
 
Balance
Dec 31, 2010
  
Provision for loan losses
  
Loans charged-off
  
Recoveries
  
Balance
Dec 31, 2011
 
                 
Residential real estate
 $2,666  $(241) $(347) $56  $2,134 
Multifamily real estate
  252   11   -   21   284 
Commercial real estate:
                    
Owner occupied
  1,141   (52)  (171)  -   918 
Non owner occupied
  1,644   1,081   (382)  38   2,381 
Commercial and industrial
  2,421   (555)  (23)  37   1,880 
Consumer
  366   (4)  (152)  88   298 
All other
  1,375   3,390   (2,951)  86   1,900 
Total
 $9,865  $3,630  $(4,026) $326  $9,795 
Purchased Loans
The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2013 and December 31 2012.  The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition and interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.

December 31, 2013
 
Principal Owed on Non-accrual Loans
  
Recorded Investment in Non-accrual Loans
  
Loans Past Due Over 90 Days, still accruing
 
           
Residential  real estate
 $2,021  $1,725  $1,737 
Multifamily real estate
  3,282   1,889   1,369 
Commercial real estate
            
Owner occupied
  1,364   1,147   1,387 
Non owner occupied
  2,683   1,973   3,739 
Commercial and industrial
  6,838   4,961   84 
Consumer
  167   148   16 
All other
  12,212   4,798   146 
Total
 $28,567  $16,641  $8,478 
              

December 31, 2012
 
Principal Owed on Non-accrual Loans
  
Recorded Investment in Non-accrual Loans
  
Loans Past Due Over 90 Days, still accruing
 
           
Residential  real estate
 $3,145  $2,813  $208 
Multifamily real estate
  5,501   4,390   227 
Commercial real estate
            
Owner occupied
  1,153   976   783 
Non owner occupied
  3,207   2,174   74 
Commercial and industrial
  11,407   9,897   555 
Consumer
  278   267   - 
All other
  5,468   5,289   2,043 
Total
 $30,159  $25,806  $3,890 
              
Purchase Loans Accretable Yield, or Income Expected to be Collected
The accretable yield, or income expected to be collected, on the purchased loans above is as follows at December 31 2013 and December 31, 2012.  There was no accretable yield on the purchased loans above prior to January 1, 2012.

   
2013
  
2012
 
Balance at January 1
 $635  $- 
New loans purchased
  -   - 
Accretion of income
  (26)  (6)
Income recognized upon full repayment
  (415)  - 
Reclassifications from non-accretable difference
  23   641 
Disposals
  -   - 
Balance at December 31
 $217  $635 
Past Due and Non-performing Loans
The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2013 and December 31 2012.  The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition and interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.

December 31, 2013
 
Principal Owed on Non-accrual Loans
  
Recorded Investment in Non-accrual Loans
  
Loans Past Due Over 90 Days, still accruing
 
           
Residential  real estate
 $2,021  $1,725  $1,737 
Multifamily real estate
  3,282   1,889   1,369 
Commercial real estate
            
Owner occupied
  1,364   1,147   1,387 
Non owner occupied
  2,683   1,973   3,739 
Commercial and industrial
  6,838   4,961   84 
Consumer
  167   148   16 
All other
  12,212   4,798   146 
Total
 $28,567  $16,641  $8,478 
              

December 31, 2012
 
Principal Owed on Non-accrual Loans
  
Recorded Investment in Non-accrual Loans
  
Loans Past Due Over 90 Days, still accruing
 
           
Residential  real estate
 $3,145  $2,813  $208 
Multifamily real estate
  5,501   4,390   227 
Commercial real estate
            
Owner occupied
  1,153   976   783 
Non owner occupied
  3,207   2,174   74 
Commercial and industrial
  11,407   9,897   555 
Consumer
  278   267   - 
All other
  5,468   5,289   2,043 
Total
 $30,159  $25,806  $3,890 
              
Aging of Recorded Investment in Past Due Loans by Loan Class
The following table presents the aging of the recorded investment in past due loans as of December 31, 2013 by class of loans:
 
Loan Class
 
Total Loans
  
30-89 Days Past Due
  
Greater than 90 days past due
  
Total Past Due
  
Loans Not Past Due
 
                 
Residential real estate
 $216,081  $4,770  $2,431  $7,201  $208,880 
Multifamily real estate
  38,456   367   2,688   3,055   35,401 
Commercial real estate:
                    
Owner occupied
  90,539   516   2,073   2,589   87,950 
Non owner occupied
  208,756   278   5,478   5,756   203,000 
Commercial and industrial
  85,301   1,433   1,438   2,871   82,430 
Consumer
  25,113   421   82   503   24,610 
All other
  76,524   2,510   4,881   7,391   69,133 
Total
 $740,770  $10,295  $19,071  $29,366  $711,404 

The following table presents the aging of the recorded investment in past due loans as of December 31, 2012 by class of loans:
 
Loan Class
 
Total Loans
  
30-89 Days Past Due
  
Greater than 90 days past due
  
Total Past Due
  
Loans Not Past Due
 
                 
Residential real estate
 $214,743  $9,356  $2,040  $11,396  $203,347 
Multifamily real estate
  28,673   695   3,893   4,588   24,085 
Commercial real estate:
                    
Owner occupied
  91,902   6,212   1,129   7,341   84,561 
Non owner occupied
  178,849   5,267   2,248   7,515   171,334 
Commercial and industrial
  84,430   2,306   2,485   4,791   79,639 
Consumer
  28,128   602   176   778   27,350 
All other
  77,900   468   7,332   7,800   70,100 
Total
 $704,625  $24,906  $19,303  $44,209  $660,416 
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2013:
   
Allowance for Loan Losses
  
Loan Balances
 
Loan Class
 
Individually Evaluated for Impairment
  
Collectively Evaluated for Impairment
  
Acquired with Deteriorated Credit Quality
  
Total
  
Individually Evaluated for Impairment
  
Collectively Evaluated for Impairment
  
Acquired with Deteriorated Credit Quality
  
Total
 
                          
Residential real estate
 $138  $2,556  $-  $2,694  $2,787  $213,111  $183  $216,081 
Multifamily real estate
  -   417   -   417   1,822   35,405   1,229   38,456 
Commercial real estate:
                                
Owner occupied
  170   1,237   -   1,407   2,386   87,903   250   90,539 
Non-owner occupied
  362   1,675   -   2,037   1,024   200,950   6,782   208,756 
Commercial and industrial
  1,088   964   132   2,184   4,270   80,535   496   85,301 
Consumer
  -   297   -   297   -   25,113   -   25,113 
All other
  102   1,389   500   1,991   3,279   68,622   4,623   76,524 
Total
 $1,860  $8,535  $632  $11,027  $15,568  $711,639  $13,563  $740,770 

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2012:
   
Allowance for Loan Losses
  
Loan Balances
 
Loan Class
 
Individually Evaluated for Impairment
  
Collectively Evaluated for Impairment
  
Acquired with Deteriorated Credit Quality
  
Total
  
Individually Evaluated for Impairment
  
Collectively Evaluated for Impairment
  
Acquired with Deteriorated Credit Quality
  
Total
 
                          
Residential real estate
 $358  $1,805  $-  $2,163  $4,609  $209,932  $202  $214,743 
Multifamily real estate
  -   331   -   331   1,670   23,830   3,173   28,673 
Commercial real estate:
                                
Owner occupied
  74   1,043   -   1,117   2,511   89,120   271   91,902 
Non-owner occupied
  362   1,526   -   1,888   2,627   170,326   5,896   178,849 
Commercial and industrial
  2,173   873   -   3,046   10,799   73,120   511   84,430 
Consumer
  -   244   -   244   -   28,128   -   28,128 
All other
  375   1,824   500   2,699   4,271   69,133   4,496   77,900 
Total
 $3,342  $7,646  $500  $11,488  $26,487  $663,589  $14,549  $704,625 
Loans Individually Evaluated for Impairment by Class of Loans
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2013.  The table includes $7,483 of loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

   
Unpaid Principal Balance
  
Recorded Investment
  
Allowance for Loan Losses Allocated
 
With no related allowance recorded:
         
Residential  real estate
 $1,513  $1,314  $- 
Multifamily real estate
  4,449   3,051   - 
Commercial real estate
            
Owner occupied
  2,601   1,986   - 
Non owner occupied
  1,861   1,184   - 
Commercial and industrial
  809   49   - 
All other
  3,185   3,167   - 
    14,418   10,751   - 
With an allowance recorded:
            
Residential  real estate
 $1,668  $1,656  $138 
Commercial real estate
            
Owner occupied
  515   515   170 
Non owner occupied
  810   790   362 
Commercial and industrial
  5,543   4,604   1,220 
All other
  12,132   4,735   602 
    20,668   12,300   2,492 
Total
 $35,086  $23,051  $2,492 
              

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2012.  The table includes $9,421 of loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

   
Unpaid Principal Balance
  
Recorded Investment
  
Allowance for Loan Losses Allocated
 
With no related allowance recorded:
         
Residential  real estate
 $1,886  $1,714  $- 
Multifamily real estate
  6,332   4,533   - 
Commercial real estate
            
Owner occupied
  2,876   2,196   - 
Non owner occupied
  3,912   2,916   - 
Commercial and industrial
  2,031   837   - 
All other
  3,426   3,427   - 
    20,463   15,623   - 
With an allowance recorded:
            
Residential  real estate
 $3,118  $3,097  $358 
Commercial real estate
            
Owner occupied
  586   586   74 
Non owner occupied
  809   789   362 
Commercial and industrial
  10,771   10,473   2,173 
All other
  5,517   5,340   875 
    20,801   20,285   3,842 
Total
 $41,264  $35,908  $3,842 
              
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized
The following table presents by loan class, the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three years ended December 31, 2013.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

   
Year ended Dec 31, 2013
 
Year ended Dec 31, 2012
 
Year ended Dec 31, 2011
Loan Class
 
Average Recorded Investment
 
Interest Income Recognized
 
Cash Basis Interest Recognized
 
Average Recorded Investment
 
Interest Income Recognized
 
Cash Basis Interest Recognized
 
Average Recorded Investment
 
Interest Income Recognized
 
Cash Basis Interest Recognized
                                     
Residential real estate
 
 $    4,069
 
 $        180
 
 $      171
 
 $    8,887
 
 $        518
 
 $        516
 
 $    2,227
 
 $        84
 
 $        81
Multifamily real estate
 
3,810
 
847
 
845
 
6,143
 
1,408
 
1,406
 
8,428
 
150
 
151
Commercial real estate:
                                   
Owner occupied
 
2,602
 
168
 
141
 
7,195
 
1,025
 
1,028
 
12,653
 
1,083
 
1,082
Non-owner occupied
 
2,509
 
9
 
9
 
9,785
 
73
 
79
 
11,417
 
113
 
84
Commercial and industrial
 
8,425
 
47
 
47
 
10,052
 
427
 
417
 
7,196
 
217
 
211
Consumer
 
-
 
-
 
-
 
29
 
2
 
2
 
43
 
5
 
5
All other
 
8,796
 
273
 
273
 
7,599
 
1,019
 
968
 
11,755
 
184
 
188
Total
 
 $30,211
 
 $      1,524
 
 $    1,486
 
 $49,690
 
 $     4,472
 
 $    4,416
 
 $53,719
 
 $     1,836
 
 $    1,802
Troubled Debt Restructurings
The following table presents TDR’s as of December 31, 2013 and December 31, 2012:

December 31, 2013
 
TDR’s on Non-accrual
  
Other TDR’s
  
Total TDR’s
 
           
Residential  real estate
 $23  $296  $319 
Commercial real estate
            
Non owner occupied
  -   506   506 
Commercial and industrial
  -   831   831 
Consumer
  -   5   5 
All other
  -   2,017   2,017 
Total
 $23  $3,655  $3,678 

December 31, 2012
 
TDR’s on Non-accrual
  
Other TDR’s
  
Total TDR’s
 
           
Residential  real estate
 $1,020  $240  $1,260 
Commercial real estate
            
Owner occupied
  -   4,224   4,224 
Non owner occupied
  -   4,920   4,920 
Commercial and industrial
  2   2,525   2,527 
All other
  -   2,197   2,197 
Total
 $1,022  $14,106  $15,128 
Troubled Debt Restructuring During the Period
The following table presents TDR’s that occurred during the years ended December 31, 2013 and December 31, 2012.

   
Year ended December 31, 2013
  
Year ended December 31, 2012
 
Loan Class
 
Number of Loans
  
Pre-Modification Outstanding Recorded Investment
  
Post-Modification Outstanding Recorded Investment
  
Number of Loans
  
Pre-Modification Outstanding Recorded Investment
  
Post-Modification Outstanding Recorded Investment
 
                    
Commercial real estate
                  
Non-owner occupied
  -  $-  $-   1  $519  $519 
Commercial and industrial
  -   -   -   1   1,809   1,809 
All other
  1   16   16   1   190   190 
Total
  1  $16  $16   3  $2,518  $2,518 
Risk Category of Loans by Class of Loans
As of December 31, 2013, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class
 
Pass
  
Special Mention
  
Substandard
  
Doubtful
  
Total Loans
 
                 
Residential real estate
 $202,789  $6,204  $7,065  $23  $216,081 
Multifamily real estate
  34,487   918   3,051   -   38,456 
Commercial real estate:
                    
Owner occupied
  79,694   7,431   3,348   66   90,539 
Non-owner occupied
  196,338   8,569   3,849   -   208,756 
Commercial and industrial
  78,205   2,269   4,753   74   85,301 
Consumer
  24,772   204   137   -   25,113 
All other
  62,180   5,947   8,285   112   76,524 
                      
Total
 $678,465  $31,542  $30,488  $275  $740,770 

As of December 31, 2012, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class
 
Pass
  
Special Mention
  
Substandard
  
Doubtful
  
Total Loans
 
                 
Residential real estate
 $195,210  $10,115  $9,327  $91  $214,743 
Multifamily real estate
  19,747   1,912   7,014   -   28,673 
Commercial real estate:
                    
Owner occupied
  74,529   8,994   8,379   -   91,902 
Non-owner occupied
  163,337   7,685   7,827   -   178,849 
Commercial and industrial
  70,180   2,739   11,508   3   84,430 
Consumer
  27,931   123   74   -   28,128 
All other
  64,009   814   12,386   691   77,900 
                      
Total
 $614,943  $32,382  $56,515  $785  $704,625