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LOANS (Tables)
 3 Months Ended
Mar. 31, 2015
LOANS [Abstract]  
Major Classifications of Loans
Major classifications of loans at March 31, 2015 and December 31, 2014 are summarized as follows:

   
2015
  
2014
 
Residential real estate
 $277,825  $278,212 
Multifamily real estate
  28,971   30,310 
Commercial real estate:
        
Owner occupied
  124,918   120,861 
Non owner occupied
  224,566   230,750 
Commercial and industrial
  81,113   85,943 
Consumer
  31,182   32,745 
All other
  103,539   100,890 
   $872,114  $879,711 
Activity in the Allowance for Loan Losses by Portfolio Segment
Activity in the allowance for loan losses by portfolio segment for the three months ended  March 31, 2015 was as follows:

Loan Class
 
Balance
Dec 31, 2014
  
Provision (credit) for loan losses
  
Loans charged-off
  
Recoveries
  
Balance
March 31, 2015
 
                 
Residential real estate
 $2,093  $154  $74  $23  $2,196 
Multifamily real estate
  304   (17)  -   -   287 
Commercial real estate:
                    
Owner occupied
  1,501   (11)  2   1   1,489 
Non owner occupied
  2,316   8   -   -   2,324 
Commercial and industrial
  1,444   165   161   2   1,450 
Consumer
  243   18   54   34   241 
All other
  2,446   (248)  59   44   2,183 
Total
 $10,347  $69  $350  $104  $10,170 

Activity in the allowance for loan losses by portfolio segment for the three months ended  March 31, 2014 was as follows:

Loan Class
 
Balance
Dec 31, 2013
  
Provision (credit) for loan losses
  
Loans charged-off
  
Recoveries
  
Balance
March 31, 2014
 
                 
Residential real estate
 $2,694  $(427) $19  $2  $2,250 
Multifamily real estate
  417   (120)  -   -   297 
Commercial real estate:
                    
Owner occupied
  1,407   71   1   -   1,477 
Non owner occupied
  2,037   648   300   -   2,385 
Commercial and industrial
  2,184   (596)  63   2   1,527 
Consumer
  297   (70)  26   19   220 
All other
  1,991   184   37   50   2,188 
Total
 $11,027  $(310) $446  $73  $10,344 
Purchased Loans
The carrying amount of those loans is as follows at March 31, 2015 and December 31, 2014.

   
2015
  
2014
 
Multifamily real estate
 $479  $497 
Commercial real estate
        
Owner occupied
  131   131 
Non owner occupied
  5,658   5,695 
Commercial and industrial
  133   136 
All other
  5,146   5,128 
Total carrying amount
 $11,547  $11,587 
Contractual principal balance
 $21,215  $21,250 
          
Carrying amount, net of allowance
 $10,599  $10,639 
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 March 31, 2015 and March 31, 2014.

   
2015
  
2014
 
Balance at January 1
 $204  $217 
New loans purchased
  -   - 
Accretion of income
  (5)  (3)
Reclassifications from non-accretable difference
  -   - 
Disposals
  -   - 
Balance at December 31
 $199  $214 
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 March 31, 2015 and December 31 2014.  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.

March 31, 2015
 
Principal Owed on Non-accrual Loans
  
Recorded Investment in Non-accrual Loans
  
Loans Past Due Over 90 Days, still accruing
 
           
Residential  real estate
 $2,598  $2,094  $1,060 
Multifamily real estate
  1,801   1,018   173 
Commercial real estate
            
Owner occupied
  989   831   - 
Non owner occupied
  1,988   1,757   - 
Commercial and industrial
  1,761   663   563 
Consumer
  208   181   - 
All other
  12,633   5,199   - 
Total
 $21,978  $11,743  $1,796 
              

December 31, 2014
 
Principal Owed on Non-accrual Loans
  
Recorded Investment in Non-accrual Loans
  
Loans Past Due Over 90 Days, still accruing
 
           
Residential  real estate
 $1,996  $1,768  $668 
Multifamily real estate
  1,803   1,033   564 
Commercial real estate
            
Owner occupied
  2,115   1,928   - 
Non owner occupied
  2,020   1,819   26 
Commercial and industrial
  2,012   806   8 
Consumer
  213   185   - 
All other
  12,608   5,173   - 
Total
 $22,767  $12,712  $1,266 
              
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 March 31, 2015 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
 $277,825  $5,197  $2,248  $7,445  $270,380 
Multifamily real estate
  28,971   1,126   712   1,838   27,133 
Commercial real estate:
                    
Owner occupied
  124,918   2,217   453   2,670   122,248 
Non owner occupied
  224,566   1,827   1,757   3,584   220,982 
Commercial and industrial
  81,113   279   1,115   1,394   79,719 
Consumer
  31,182   414   76   490   30,692 
All other
  103,539   277   5,199   5,476   98,063 
Total
 $872,114  $11,337  $11,560  $22,897  $849,217 
 
 
The following table presents the aging of the recorded investment in past due loans as of December 31, 2014 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
 $278,212  $5,810  $1,706  $7,516  $270,696 
Multifamily real estate
  30,310   177   1,100   1,277   29,033 
Commercial real estate:
                    
Owner occupied
  120,861   250   1,530   1,780   119,081 
Non owner occupied
  230,750   2,173   1,670   3,843   226,907 
Commercial and industrial
  85,943   1,720   608   2,328   83,615 
Consumer
  32,745   497   71   568   32,177 
All other
  100,890   234   5,127   5,361   95,529 
Total
 $879,711  $10,861  $11,812  $22,673  $857,038 
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 March 31, 2015:
   
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
 $-  $2,196  $-  $2,196  $133  $277,692  $-  $277,825 
Multifamily real estate
  -   287   -   287   2,082   26,410   479   28,971 
Commercial real estate:
                                
Owner occupied
  69   1,420   -   1,489   901   123,886   131   124,918 
Non-owner occupied
  33   2,291   -   2,324   4,727   214,181   5,658   224,566 
Commercial and industrial
  359   1,043   48   1,450   975   80,005   133   81,113 
Consumer
  -   241   -   241   -   31,182   -   31,182 
All other
  -   1,283   900   2,183   1,008   97,385   5,146   103,539 
Total
 $461  $8,761  $948  $10,170  $9,826  $850,741  $11,547  $872,114 

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, 2014:
   
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
 $-  $2,093  $-  $2,093  $137  $278,075  $-  $278,212 
Multifamily real estate
  -   304   -   304   536   29,277   497   30,310 
Commercial real estate:
                                
Owner occupied
  107   1,394   -   1,501   2,011   118,719   131   120,861 
Non-owner occupied
  54   2,262   -   2,316   4,874   220,181   5,695   230,750 
Commercial and industrial
  291   1,105   48   1,444   902   84,905   136   85,943 
Consumer
  -   243   -   243   -   32,745   -   32,745 
All other
  -   1,546   900   2,446   1,109   94,653   5,128   100,890 
Total
 $452  $8,947  $948  $10,347  $9,569  $858,555  $11,587  $879,711 
Loans Individually Evaluated for Impairment by Class of Loans
The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2015.  The table includes $5,673,000 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.

   
Unpaid Principal Balance
  
Recorded Investment
  
Allowance for Loan Losses Allocated
 
With no related allowance recorded:
         
Residential real estate
 $175  $133  $- 
Multifamily real estate
  3,343   2,561   - 
Commercial real estate
            
Owner occupied
  549   486   - 
Non owner occupied
  4,336   4,105   - 
Commercial and industrial
  1,325   548   - 
All other
  1,044   1,008   - 
    10,772   8,841   - 
With an allowance recorded:
            
Commercial real estate
            
Owner occupied
  415   415   69 
Non-owner occupied
  622   622   33 
Commercial and industrial
  747   475   407 
All other
  12,543   5,146   900 
    14,327   6,658   1,409 
Total
 $25,099  $15,499  $1,409 
              
 
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2014.  The table includes $5,673,000 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.

   
Unpaid Principal Balance
  
Recorded Investment
  
Allowance for Loan Losses Allocated
 
With no related allowance recorded:
         
Residential  real estate
 $179  $137  $- 
Multifamily real estate
  1,803   1,033   - 
Commercial real estate
            
Owner occupied
  1,404   1,304   - 
Non owner occupied
  4,398   4,190   - 
Commercial and industrial
  1,030   270   - 
All other
  1,144   1,108   - 
    9,958   8,042   - 
With an allowance recorded:
            
Commercial real estate
            
Owner occupied
 $707  $707  $107 
Non owner occupied
  684   684   54 
Commercial and industrial
  929   680   339 
All other
  12,525   5,129   900 
    14,845   7,200   1,400 
Total
 $24,803  $15,242  $1,400 
              
The Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized
The following table presents the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three months ended March 31, 2015 and March 31, 2014.   The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

   
Three months ended March 31, 2015
  
Three months ended March 31, 2014
 
Loan Class
 
Average Recorded Investment
  
Interest Income Recognized
  
Cash Basis Interest Recognized
  
Average Recorded Investment
  
Interest Income Recognized
  
Cash Basis Interest Recognized
 
                    
Residential real estate
 $135  $1  $1  $2,676  $34  $34 
Multifamily real estate
  1,796   -   -   2,708   708   708 
Commercial real estate:
                        
Owner occupied
  1,457   9   8   2,262   16   11 
Non-owner occupied
  4,800   48   48   1,097   627   627 
Commercial and industrial
  987   4   4   2,967   335   335 
All other
  6,195   16   11   7,774   44   44 
Total
 $15,370  $78  $72  $19,484  $1,765  $1,759 
Troubled Debt Restructurings
The following table presents TDR’s as of March 31, 2015 and December 31, 2014:

March 31, 2015
 
TDR’s on Non-accrual
  
Other TDR’s
  
Total TDR’s
 
           
Residential  real estate
 $13  $187  $200 
Multifamily  real estate
  -   1,543   1,543 
Commercial real estate
            
Non owner occupied
  -   469   469 
Commercial and industrial
  -   427   427 
All other
  -   963   963 
Total
 $13  $3,589  $3,602 
              

December 31, 2014
 
TDR’s on Non-accrual
  
Other TDR’s
  
Total TDR’s
 
           
Residential  real estate
 $13  $191  $204 
Commercial real estate
            
Non owner occupied
  -   474   474 
Commercial and industrial
  -   761   761 
All other
  -   1,063   1,063 
Total
 $13  $2,489  $2,502 
              
Troubled Debt Restructuring During the Period
The following table presents TDR’s that occurred during the three months ended March 31, 2015.  There were no TDR’s that occurred during the three months ended March 31, 2014.

   
Three months ended March 31, 2015
 
Loan Class
 
Number of Loans
  
Pre-Modification Outstanding Recorded Investment
  
Post-Modification Outstanding Recorded Investment
 
           
Multifamily Real Estate
  1  $1,543  $1,543 
Total
  1  $1,543  $1,543 
Risk Category of Loans by Class of Loans
As of March 31, 2015, 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
 $265,445  $7,339  $5,028  $13  $277,825 
Multifamily real estate
  24,316   2,094   2,561   -   28,971 
Commercial real estate:
                    
Owner occupied
  116,104   6,327   2,487   -   124,918 
Non-owner occupied
  212,908   6,734   4,924   -   224,566 
Commercial and industrial
  78,958   844   1,259   52   81,113 
Consumer
  30,794   289   99   -   31,182 
All other
  95,605   1,177   6,757   -   103,539 
Total
 $824,130  $24,804  $23,115  $65  $872,114 

As of December 31, 2014, 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
 $265,285  $8,292  $4,622  $13  $278,212 
Multifamily real estate
  27,260   2,017   1,033   -   30,310 
Commercial real estate:
                    
Owner occupied
  111,024   6,505   3,332   -   120,861 
Non-owner occupied
  218,971   6,652   5,127   -   230,750 
Commercial and industrial
  83,634   1,007   1,275   27   85,943 
Consumer
  32,364   267   114   -   32,745 
All other
  89,173   4,873   6,844   -   100,890 
Total
 $827,711  $29,613  $22,347  $40  $879,711