Loans and Related Party Transactions

12 Months Ended

Dec. 31, 2011

Loans Receivable Disclosure [Abstract]

Loans Receivable Disclosure

Note 3. Loans and Related Party Transactions

The loan portfolio, stated at face amount is composed of the following:

	December 31
	2011		2010
	(in thousands)
Commercial – non real estate
Commercial and industrial	$	8 361	$	7 920
Commercial real estate
Owner occupied		61 086		67 517
Non-owner occupied		15 796		12 098
Construction
Residential		2 492		5 922
Commercial		16 687		18 252
Real Estate
Farmland		598		792
Residential
Revolving open end		5 015		5 975
1 to 4 family – first liens		80 311		82 691
1 to 4 family – junior liens		7 530		8 871
5 or more family		3 088		1 976
Consumer loans
Titled vehicles		2 650		3 713
Deposit accounts		617		737
All other consumer loans		2 898		2 350
All other loans		116		436
Total loans	$	207 245	$	219 250
Less: allowance for loan losses		4 484		5 012
	$	202 761	$	214 238

At December 31, 2011 and 2010, overdraft demand deposits reclassified to loans totaled $116 thousand and $186 thousand, respectively.

Loans to directors and executive officers of the company or to their associates at December 31, 2011 and 2010 totaled $2.9 and $3.1 million, respectively. Such loans were made on substantially the same terms as those prevailing for comparable transactions with similar risks. During 2011, total principal additions were $0.4 million and total principal payments were $0.6 million.

The FHLB of Pittsburgh has a blanket lien on all the company’s loans except those loans specifically pledged to the Federal Reserve and removed from the FHLB lien. Currently, the FHLB lien is securing an advance to the company in the amount of $1.5 million and letters of credit issued on behalf of a customer of the company in the amount of $11 million.