Allowance for Loan Losses

3 Months Ended

Mar. 31, 2012

Allowance For Loan Losses Disclosure [Abstract]

Allowance for Credit Losses [Text Block]

5.	Allowance for Loan Losses
	The following is a summary of transactions (in thousands) in the allowance for loan losses:

	March 31,			December 31,			March 31,
	2012			2011			2011
Balance at beginning of period	$	4 484		$	5 012		$	5 012
Provision charged to operating expense		309			3 343			423
Recoveries added to the allowance		66			183			52
Loan losses charged to the allowance		(458	)		(4 054	)		(642	)
Balance at end of period	$	4 401		$	4 484		$	4 845

Allowance for Loan Losses – By Segment
March 31, 2012
(in thousands)

							Commercial												All
	Farmland			Commercial			Real Estate			Construction			Consumer			Residential			Other		Unallocated		Total
Beginning balance	$	17		$	156		$	882		$	506		$	84		$	2 839		$	- -	$	- -	$	4 484
Charge-offs		- -			- -			- -			(354	)		(54	)		(50	)		- -		- -		(458	)
Recoveries		- -			6			2			2			54			2			- -		- -		66
Provision		(1	)		(6	)		(44	)		325			(19	)		54			- -		- -		309
Ending balance	$	16		$	156		$	840		$	479		$	65		$	2 845		$	- -	$	- -	$	4 401
Individually evaluated
for impairment	$	- -		$	159		$	100		$	125		$	33		$	510		$	- -	$	- -	$	927
Collectively evaluated
for impairment		16			(3	)		740			354			32			2 335			- -		- -		3 474
	$	16		$	156		$	840		$	479		$	65		$	2 845		$	- -	$	- -	$	4 401
Financing receivables:
Ending balance	$	561		$	7 618		$	78 032		$	16 149		$	5 956		$	96 851		$	79	$	- -	$	205 246
Ending balance:
Individually evaluated
for impairment	$	- -		$	159		$	6 698		$	3 705		$	101		$	6 485		$	- -	$	- -	$	17 148
Collectively evaluated
for impairment		561			7 459			71 334			12 444			5 855			90 366		79			- -		188 098
Total	$	561		$	7 618		$	78 032		$	16 149		$	5 956		$	96 851		$	79	$	- -	$	205 246

Allowance for Loan Losses – By Segment
December 31, 2011
(in thousands)

							Commercial												All
	Farmland			Commercial			Real Estate			Construction			Consumer			Residential			Other			Unallocated			Total
Beginning balance	$	166		$	239		$	859		$	2 022		$	20		$	1 691		$	1		$	14		$	5 012
Charge-offs		- -			(20	)		(653	)		(1 673	)		(172	)		(1 536	)		- -			- -			(4 054	)
Recoveries		- -			30			6			5			131			11			- -			- -			183
Provision		(149	)		(93	)		670			152			105			2 673			(1	)		(14	)		3 343
Ending balance	$	17		$	156		$	882		$	506		$	84		$	2 839		$	- -		$	- -		$	4 484
Individually evaluated
for impairment	$	- -		$	161		$	122		$	102		$	39		$	349		$	- -		$	- -		$	773
Collectively evaluated
for impairment		17			(5	)		760			404			45			2 490			- -			- -			3 711
	$	17		$	156		$	882		$	506		$	84		$	2 839		$	- -		$	- -		$	4 484
Financing receivables:
Ending balance	$	598		$	8 361		$	76 882		$	19 179		$	6 165		$	95 944		$	116		$	- -		$	207 245
Ending balance:
Individually evaluated
for impairment	$	- -		$	161		$	6 995		$	5 250		$	109		$	5 662		$	- -		$	- -		$	18 177
Collectively evaluated
for impairment		598			8 200			69 887			13 929			6 056			90 282			116			- -			189 068
Total	$	598		$	8 361		$	76 882		$	19 179		$	6 165		$	95 944		$	116		$	- -		$	207 245

Credit Quality Information – By Class
March 31, 2012
(in thousands)

			Special		Sub-
Internal Risk Rating Grades	Pass		Mention		Standard		Doubtful		Loss
Commercial – non real estate
Commercial and industrial	$	5 566	$	1 893	$	159	$	- -	$	- -
Commercial real estate
Owner occupied		39 066		12 405		9 287		- -		- -
Non-owner occupied		16 085		608		581		- -		- -
Construction
Residential		2 077		- -		229		- -		- -
Commercial		8 668		1 861		3 220		94		- -
Real estate
Farmland		561		- -		- -		- -		- -
Consumer
Titled vehicles		N/A		N/A		N/A		N/A		N/A
Deposit accounts		N/A		N/A		N/A		N/A		N/A
All other		N/A		N/A		N/A		N/A		N/A
Residential
Revolving open end		N/A		1 269		285		N/A		N/A
1-4 family – first liens		N/A		1 630		3 214		58		- -
1-4 family – junior liens		N/A		- -		265		- -		- -
5 or more family		N/A		- -		- -		- -		- -
Totals	$	72 023	$	19 666	$	17 240	$	152	$	- -

As a matter of practice, we do not risk rate consumer or residential mortgage loans. Any of these loans listed in the risk rating table above are associated with commercial loans that have been risk rated as per our policy. When a loan is designated as a loss, the loss portion is charged off, and if applicable the remaining balance classified as substandard.

Credit Quality Information – By Class
March 31, 2012
(in thousands)

Non Risk Rated Loans	Performing		Nonperforming
Consumer – non real estate
Titled vehicles	$	2 484	$	4
Deposit accounts		584		- -
All other		2 882		2
Residential
Revolving open end		3 059		15
1-4 family – first liens		75 859		1 208
1-4 Family – junior liens		6 924		- -
5 or more family		3 065		- -
All other		79		- -
Totals	$	94 936	$	1 229

Credit Quality Information – By Class
December 31, 2011
(in thousands)

			Special		Sub-
Internal Risk Rating Grades	Pass		Mention		Standard		Doubtful		Loss
Commercial – non real estate
Commercial and industrial	$	8 094	$	105	$	162	$	- -	$	- -
Commercial real estate
Owner occupied		39 405		12 768		8 817		96		- -
Non-owner occupied		14 824		333		583		56		- -
Construction
Residential		1 986		- -		506		- -		- -
Commercial		10 077		2 123		4 397		90		- -
Real estate
Farmland		598		- -		- -		- -		- -
Consumer
Titled vehicles		N/A		N/A		N/A		N/A		N/A
Deposit accounts		N/A		N/A		N/A		N/A		N/A
All other		N/A		25		N/A		N/A		N/A
Residential
Revolving open end		N/A		1 276		224		N/A		N/A
1-4 family – first liens		N/A		2 894		2 351		N/A		N/A
1-4 family – junior liens		N/A		172		94		N/A		N/A
5 or more family		N/A		N/A		N/A		N/A		N/A
Totals	$	74 984	$	19 696	$	17 134	$	242	$	- -

Credit Quality Information – By Class
December 31, 2011
(in thousands)

Non Risk Rated Loans	Performing		Nonperforming
Consumer – non real estate
Titled vehicles	$	2 645	$	5
Deposit accounts		617		- -
All other		2 870		3
Residential
Revolving open end		3 498		17
1-4 family – first liens		74 227		839
1-4 Family – junior liens		7 264		- -
5 or more family		3 088		- -
All other		116		- -
Totals	$	94 325	$	864

Impaired Loans – By Class
March 31, 2012
(in thousands)

With no related allowance:
							Average		Interest
	Unpaid		Recorded		Related		Recorded		Income
	Principal		Investment		Allowance		Investment		Recognized
Commercial – non real estate
Commercial and industrial	$	- -	$	- -	$	N/A	$	48	$	- -
Commercial real estate
Owner occupied		4 291		4 089		N/A		3 734		39
Non-owner occupied		584		582		N/A		233		9
Construction
Residential		110		110		N/A		584		1
Commercial		3 175		2 810		N/A		3 389		4
Real estate
Farmland		- -		- -		N/A		- -		- -
Residential
Revolving open end		285		285		N/A		217		5
1 to 4 family –first liens		516		438		N/A		1 096		3
1 to 4 family – junior liens		- -		- -		N/A		142		- -
5 or more family		- -		- -		N/A		- -		- -
Consumer
Titled vehicles		- -		- -		N/A		4		- -
Deposit accounts		- -		- -		N/A		- -		- -
All other consumer		- -		- -		N/A		- -		- -
All other		- -		- -		N/A		- -		- -
	$	8 961	$	8 314	$	N/A	$	9 447	$	61
With an allowance recorded:
							Average		Interest
	Unpaid		Recorded		Related		Recorded		Income
	Principal		Investment		Allowance		Investment		Recognized
Commercial – non real estate
Commercial and industrial	$	162	$	159	$	159	$	164	$	1
Commercial real estate
Owner occupied		2 042		2 027		100		4 177		30
Non-owner occupied		- -		- -		- -		162		- -
Construction
Residential		121		119		29		450		- -
Commercial		669		666		96		1 596		11
Real estate
Farmland		- -		- -		- -		- -		- -
Residential
Revolving open end		1 272		1 269		33		585		16
1 to 4 family – first liens		3 612		3 584		435		2 780		33
1 to 4 family – junior liens		915		909		42		480		18
5 or more family		- -		- -		- -		- -		- -
Consumer
Titled vehicles		- -		- -		- -		- -		- -
Deposit accounts		- -		- -		- -		- -		- -
All other consumer		102		101		33		57		2
All other		- -		- -		- -		- -		- -
	$	8 895	$	8 834	$	927	$	10 451	$	111
Totals:
Commercial – non real estate	$	162	$	159	$	159	$	212	$	1
Commercial real estate		6 917		6 698		100		8 306		78
Construction		4 075		3 705		125		6 019		16
Real estate –farmland		- -		- -		- -		- -		- -
Residential		6 600		6 485		510		5 300		75
Consumer		102		101		33		61		2
All other		- -		- -		- -		- -		- -
	$	17 856	$	17 148	$	927	$	19 898	$	172

Impaired Loans – By Class
December 31, 2011
(in thousands)

With no related allowance:
							Average		Interest
	Unpaid		Recorded		Related		Recorded		Income
	Principal		Investment		Allowance		Investment		Recognized
Commercial – non real estate
Commercial and industrial	$	- -	$	- -	$	N/A	$	67	$	- -
Commercial real estate
Owner occupied		4 622		4 440		N/A		3 752		217
Non-owner occupied		587		583		N/A		132		11
Construction
Residential		512		506		N/A		799		14
Commercial		4 106		3 976		N/A		3 353		168
Real estate
Farmland		- -		- -		N/A		- -		- -
Residential
Revolving open end		225		224		N/A		160		15
1 to 4 family –first liens		948		870		N/A		1 257		26
1 to 4 family – junior liens		- -		- -		N/A		177		- -
5 or more family		- -		- -		N/A		- -		- -
Consumer
Titled vehicles		- -		- -		N/A		- -		- -
Deposit accounts		- -		- -		N/A		- -		- -
All other consumer		- -		- -		N/A		4		- -
All other		- -		- -		N/A		- -		- -
	$	11 000	$	10 599	$	N/A	$	9 701	$	451
With an allowance recorded:
							Average		Interest
	Unpaid		Recorded		Related		Recorded		Income
	Principal		Investment		Allowance		Investment		Recognized
Commercial – non real estate
Commercial and industrial	$	163	$	161	$	161	$	187	$	8
Commercial real estate
Owner occupied		1 989		1 972		122		4 800		93
Non-owner occupied		- -		- -		- -		163		- -
Construction
Residential		- -		- -		- -		979		- -
Commercial		771		768		102		2 443		30
Real estate
Farmland		- -		- -		- -		108		- -
Residential
Revolving open end		1 277		1 274		31		331		65
1 to 4 family – first liens		2 550		2 540		299		2 342		102
1 to 4 family – junior liens		758		754		19		311		28
5 or more family		- -		- -		- -		- -		- -
Consumer
Titled vehicles		- -		- -		- -		- -		- -
Deposit accounts		- -		- -		- -		- -		- -
All other consumer		109		109		39		37		3
All other		- -		- -		- -		- -		- -
	$	7 617	$	7 578	$	773	$	11 701	$	329
Totals:
Commercial – non real estate	$	163	$	161	$	161	$	254	$	8
Commercial real estate		7 198		6 995		122		8 847		321
Construction		5 389		5 250		102		7 574		212
Real estate –farmland		- -		- -		- -		108		- -
Residential		5 758		5 662		349		4 578		236
Consumer		109		109		39		41		3
All other		- -		- -		- -		- -		- -
	$	18 617	$	18 177	$	773	$	21 402	$	780

Modifications
(in thousands except number of contracts)

For the Three Months Ended
March 31, 2012

		Pre-		Post-
		Modification		Modification
	Number	Outstanding		Outstanding
	Of	Recorded		Recorded
	Contracts	Investment		Investment
Troubled Debt Restructurings
Commercial – non real estate
Commercial and industrial	- -	$	- -	$	- -
Commercial real estate
Owner occupied	- -		- -		- -
Non owner occupied	- -		- -		- -
Construction
Residential	- -		- -		- -
Commercial	- -		- -		- -
Real Estate
Farmland	- -		- -		- -
Residential
Revolving open end 1 to 4 family	- -		- -		- -
1 to 4 family – first liens	1		227		226
1 to 4 family – junior liens	- -		- -		- -
5 or more family	- -		- -		- -
Consumer
Titled vehicles	- -		- -		- -
Deposit accounts	- -		- -		- -
All other consumer	- -		- -		- -
All other	- -		- -		- -
Totals	1	$	227	$	226

For the Three Months
Ended March 31,2012

	Number	Outstanding
	Of	Recorded
	Contracts	Investment
Troubled Debt Restructurings
That Subsequently Defaulted
Commercial – non real estate
Commercial and industrial	- -	$	- -
Commercial real estate
Owner occupied	- -		- -
Non owner occupied	- -		- -
Construction
Residential	- -		- -
Commercial	- -		- -
Real Estate
Farmland	- -		- -
Residential
Revolving open end 1 to 4 family	- -		- -
1 to 4 family – first liens	5		715
1 to 4 family – junior liens	3		110
5 or more family	- -		- -
Consumer
Titled vehicles	- -		- -
Deposit accounts	- -		- -
All other consumer	- -		- -
All other	- -		- -
Totals	8	$	825

Total Troubled Debt Restructurings as of March 31, 2012 were $12.0 million.

Nonaccrual and Past Due Loans – By Class
March 31, 2012
(in thousands)

													90 Days
	30-59		60-89		90 Days								Past Due
	Days		Days		or more		Total				Total		Still		Non-
	Past Due		Past Due		Past Due		Past Due		Current		Loans		Accruing		Accrual
Commercial – non real estate
Commercial and industrial	$	79	$	- -	$	- -	$	79	$	7 539	$	7 618	$	- -	$	91
Commercial real estate
Owner occupied		224		- -		1 244		1 468		59 290		60 758		- -		1 333
Non owner occupied		- -		330		179		509		16 765		17 274		- -		179
Construction
Residential		- -		- -		- -		- -		2 306		2 306		- -		119
Commercial		480		231		2 216		2 927		10 916		13 843		- -		2 566
Real Estate
Farmland		- -		- -		- -		- -		561		561		- -		- -
Residential
Revolving open end		- -		- -		- -		- -		4 628		4 628		- -		16
1 to 4 family – first liens		301		217		522		1 040		80 929		81 969		- -		1 998
1 to 4 family – junior liens		167		172		- -		339		6 850		7 189		- -		- -
5 or more family		- -		- -		- -		- -		3 065		3 065		- -		- -
Consumer
Titled vehicles		5		- -		- -		5		2 483		2 488		- -		4
Deposit accounts		- -		- -		- -		- -		584		584		- -		- -
All other consumer		3		- -		2		5		2 879		2 884		- -		2
All other		- -		- -		- -		- -		79		79		- -		- -
Totals	$	1 259	$	950	$	4 163	$	6 372	$	198 874	$	205 246	$	- -	$	6 308
Percentage to Total Loans		.61%		0.46%		2.03%		3.10%		96.90%				0.00%		3.07%

Included in the 30 or more days past due loans are non-accrual loans in the amount of $4.9 million. The remaining $1.4 million are in current status.

Nonaccrual and Past Due Loans – By Class
March 31, 2012
(in thousands)

													90 Days
	30-59		60-89		90 Days								Past Due
	Days		Days		or more		Total				Total		Still		Non-
	Past Due		Past Due		Past Due		Past Due		Current		Loans		Accruing		Accrual
Commercial – non real estate
Commercial and industrial	$	79	$	- -	$	- -	$	79	$	7 539	$	7 618	$	- -	$	91
Commercial real estate
Owner occupied		224		- -		1 244		1 468		59 290		60 758		- -		1 333
Non owner occupied		- -		330		179		509		16 765		17 274		- -		179
Construction
Residential		- -		- -		- -		- -		2 306		2 306		- -		119
Commercial		480		231		2 216		2 927		10 916		13 843		- -		2 566
Real Estate
Farmland		- -		- -		- -		- -		561		561		- -		- -
Residential
Revolving open end		- -		- -		- -		- -		4 628		4 628		- -		16
1 to 4 family – first liens		301		217		522		1 040		80 929		81 969		- -		1 998
1 to 4 family – junior liens		167		172		- -		339		6 850		7 189		- -		- -
5 or more family		- -		- -		- -		- -		3 065		3 065		- -		- -
Consumer
Titled vehicles		5		- -		- -		5		2 483		2 488		- -		4
Deposit accounts		- -		- -		- -		- -		584		584		- -		- -
All other consumer		3		- -		2		5		2 879		2 884		- -		2
All other		- -		- -		- -		- -		79		79		- -		- -
Totals	$	1 259	$	950	$	4 163	$	6 372	$	198 874	$	205 246	$	- -	$	6 308
Percentage to Total Loans		.61%		0.46%		2.03%		3.10%		96.90%				0.00%		3.07%

Included in the 30 or more days past due loans are non-accrual loans in the amount of $4.9 million. The remaining $1.4 million are in current status.

Nonaccrual and Past Due Loans – By Class
December 31, 2011
(in thousands)

													90 Days
	30-59		60-89		90 Days								Past Due
	Days		Days		or more		Total				Total		Still		Non-
	Past Due		Past Due		Past Due		Past Due		Current		Loans		Accruing		Accrual
Commercial – non real estate
Commercial and industrial	$	- -	$	6	$	- -	$	6	$	8 355	$	8 361	$	- -	$	93
Commercial real estate
Owner occupied		2 376		996		344		3 716		57 370		61 086		- -		1 339
Non owner occupied		- -		- -		179		179		15 617		15 796		- -		179
Construction
Residential		- -		- -		385		385		2 107		2 492		- -		506
Commercial		19		44		1 602		1 665		15 022		16 687		143		3 693
Real Estate
Farmland		- -		- -		- -		- -		598		598		- -		- -
Residential
Revolving open end		- -		- -		- -		- -		5 015		5 015		- -		17
1 to 4 family – first liens		1 386		139		360		1 885		78 426		80 311		61		1 408
1 to 4 family – junior liens		176		- -		- -		176		7 354		7 530		- -		- -
5 or more family		- -		- -		- -		- -		3 088		3 088		- -		- -
Consumer
Titled vehicles		1		15		- -		16		2 634		2 650		- -		5
Deposit accounts		- -		- -		- -		- -		617		617		- -		- -
All other consumer		8		4		3		15		2 883		2 898		- -		3
All other		- -		- -		- -		- -		116		116		- -		- -
Totals	$	3 966	$	1 204	$	2 873	$	8 043	$	199 202	$	207 245	$	204	$	7 243
Percentage to Total Loans		1.91%		0.58%		1.39%		3.88%		96.12%				.10%		3.49%

Included in the 30 or more days past due loans are non-accrual loans in the amount of $3.7 million. The remaining non-accrual loans of $3.5 million are in current status.

The past due policy of the bank is to report all classes of loans past due in the following categories:

• 30 to 59 days past due (principal or interest)
• 60 to 89 days past due (principal or interest)
• 90 days or more past due (principal or interest)
• Nonaccrual status.