Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2013


	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction			Consumer			Unallocated		Total
For the nine months ending September 30, 2013
Allowance for loan losses:
Beginning balance	$	2,811		$	10,139		$	5,780		$	349		$	246		$	417	$	19,742
Charge-offs		(301	)		(1,266	)		(2,579	)		(136	)		(183	)		—		(4,465	)
Recoveries		123			257			364			107			69			—		920
Provision		418			(1,221	)		1,312			(160	)		27			724		1,100

Ending Balance	$	3,051		$	7,909		$	4,877		$	160		$	159		$	1,141	$	17,297


	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction			Consumer			Unallocated		Total
For the nine months ending September 30, 2012
Allowance for loan losses:
Beginning balance	$	2,876		$	10,571		$	5,796		$	974		$	719		$	321	$	21,257
Charge-offs		(610	)		(2,463	)		(2,803	)		(297	)		(174	)		—		(6,347	)
Recoveries		280			371			208			104			51			—		1,014
Provision		23			2,748			2,758			284			(343	)		95		5,565

Ending Balance	$	2,569		$	11,227		$	5,959		$	1,065		$	253		$	416	$	21,489


	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction			Consumer			Unallocated		Total
For the three months ending September 30, 2013
Allowance for loan losses:
Beginning balance	$	3,775		$	9,156		$	5,169		$	184		$	149		$	972	$	19,405
Charge-offs		(210	)		(635	)		(1,558	)		(136	)		(61	)		—		(2,600	)
Recoveries		62			34			63			1			32			—		192
Provision		(576	)		(646	)		1,203			111			39			169		300

Ending Balance	$	3,051		$	7,909		$	4,877		$	160		$	159		$	1,141	$	17,297


	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction			Consumer			Unallocated			Total
For the three months ending September 30, 2012
Allowance for loan losses:
Beginning balance	$	2,537		$	11,701		$	6,379		$	1,095		$	262		$	(43	)	$	21,931
Charge-offs		(192	)		(824	)		(1,334	)		(192	)		(49	)		—			(2,591	)
Recoveries		180			196			47			(9	)		35			—			449
Provision		44			154			867			171			5			459			1,700

Ending Balance	$	2,569		$	11,227		$	5,959		$	1,065		$	253		$	416		$	21,489


September 30, 2013	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer		Unallocated		Total
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	1,054	$	454	$	204	$	—	$	1	$	—	$	1,713
Ending balance:
Collectively evaluated for impairment	$	1,997	$	7,455	$	4,673	$	160	$	158	$	1,141	$	15,584

Ending Balance	$	3,051	$	7,909	$	4,877	$	160	$	159	$	1,141	$	17,297

Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	3,920	$	9,813	$	4,025	$	—	$	21			$	17,779
Ending balance:
Collectively evaluated for impairment	$	101,910	$	421,920	$	240,368	$	26,661	$	10,933			$	801,792

Ending Balance	$	105,830	$	431,733	$	244,393	$	26,661	$	10,954			$	819,571


December 31, 2012	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer		Unallocated		Total
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	286	$	2,354	$	1,199	$	107	$	60	$	—	$	4,006
Ending balance:
Collectively evaluated for impairment	$	2,525	$	7,785	$	4,581	$	242	$	186	$	417	$	15,736

Ending Balance	$	2,811	$	10,139	$	5,780	$	349	$	246	$	417	$	19,742

Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	5,420	$	13,941	$	6,127	$	541	$	61			$	26,090
Ending balance:
Collectively evaluated for impairment	$	95,241	$	420,867	$	244,471	$	19,136	$	9,748			$	789,463

Ending Balance	$	100,661	$	434,808	$	250,598	$	19,677	$	9,809			$	815,553

Credit Exposures by Internally Assigned Grades


September 30, 2013	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer		Total
Pass	$	97,258	$	406,253	$	95,677	$	22,295	$	2,289	$	623,772
Special Mention		2,804		7,714		996		21		—		11,535
Substandard		5,768		17,766		10,289		—		90		33,913
Doubtful		—		—		—		—		—		—

Ending Balance	$	105,830	$	431,733	$	106,962	$	22,316	$	2,379	$	669,220


December 31, 2012	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer		Total
Pass	$	90,159	$	397,657	$	89,896	$	16,594	$	994	$	595,300
Special Mention		1,653		6,371		1,944		352		—		10,320
Substandard		8,849		30,780		12,873		1,001		106		53,609
Doubtful		—		—		—		—		—		—

Ending Balance	$	100,661	$	434,808	$	104,713	$	17,947	$	1,100	$	659,229

Performing and Nonperforming Loans

Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.


	Residential Real Estate		Real Estate Construction		Consumer		Total
September 30, 2013
Performing	$	137,431	$	4,345	$	8,575	$	150,351
Nonperforming		—		—		—		—

Total	$	137,431	$	4,345	$	8,575	$	150,351


	Residential Real Estate		Real Estate Construction		Consumer		Total
December 31, 2012
Performing	$	145,879	$	1,730	$	8,696	$	156,305
Nonperforming		6		—		13		19

Total	$	145,885	$	1,730	$	8,709	$	156,324

Aging Analysis of Past Due Loans

The following tables includes an aging analysis of the recorded investment of past due loans outstanding as of September 30, 2013 and December 31, 2012.


September 30, 2013	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commericial & Agriculture	$	—	$	4	$	304	$	308	$	105,522	$	105,830	$	—
Commercial Real Estate		271		653		2,929		3,853		427,880		431,733		—
Residential Real Estate		733		393		5,412		6,538		237,855		244,393		—
Real Estate Construction		—		—		—		—		26,661		26,661		—
Consumer		60		8		25		93		10,861		10,954		—

Total	$	1,064	$	1,058	$	8,670	$	10,792	$	808,779	$	819,571	$	—


December 31, 2012	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commericial & Agriculture	$	31	$	72	$	553	$	656	$	100,005	$	100,661	$	—
Commercial Real Estate		1,000		533		6,794		8,327		426,481		434,808		80
Residential Real Estate		2,843		1,214		8,527		12,584		238,014		250,598		—
Real Estate Construction		43		—		416		459		19,218		19,677		—
Consumer		127		20		29		176		9,633		9,809		—

Total	$	4,044	$	1,839	$	16,319	$	22,202	$	793,351	$	815,553	$	80

Summary of Nonaccrual Loans

The following table presents loans on nonaccrual status as of September 30, 2013 and December 31, 2012.


	September 30, 2013		December 31, 2012
Commericial & Agriculture	$	1,599	$	2,869
Commercial Real Estate		9,562		16,250
Residential Real Estate		9,458		9,701
Real Estate Construction		—		958
Consumer		75		77

Total	$	20,694	$	29,855

Schedule of Troubled Debt Restructurings

Loan modifications that are considered TDRs completed during the nine month periods ended September 30, 2013 and September 30, 2012 were as follows:


	For the Nine-Month Period Ended September 30, 2013						For the Nine-Month Period Ended September 30, 2012
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commericial & Agriculture		—	$	—	$	—		6	$	983	$	976
Commercial Real Estate		2		547		547		3		1,206		1,206
Residential Real Estate		—		—		—		21		1,250		1,171
Real Estate Construction		—		—		—		—		—		—
Consumer and Other		—		—		—		5		66		66

Total Loan Modifications		2	$	547	$	547		35	$	3,505	$	3,419

Loan modifications that are considered TDRs completed during the quarter ended September 30, 2013 and September 30, 2012 were as follows:


	For the Three-Month Period Ended September 30, 2013						For the Three-Month Period Ended September 30, 2012
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commericial & Agriculture		—	$	—	$	—		2	$	197	$	497
Commercial Real Estate		1		422		422		—		—		—
Residential Real Estate		—		—		—		1		385		385
Real Estate Construction		—		—		—		—		—		—
Consumer and Other		—		—		—		1		19		19

Total Loan Modifications		1	$	422	$	422		4	$	601	$	901

Impaired Financing Receivables

The following tables include the recorded investment and unpaid principal balances for impaired financing receivables with the associated allowance amount, if applicable, as of September 30, 2013 and December 31, 2012.


	September 30, 2013						December 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial & Agriculture	$	1,206	$	1,326	$	—	$	5,053	$	5,226	$	—
Commercial Real Estate		5,341		6,260		—		5,446		8,114		—
Residential Real Estate		3,049		5,108		—		2,566		5,346		—
Real Estate Construction		—		—		—		—		521		—
Consumer and Other		—		—		—		1		1		—

Total		9,596		12,694		—		13,066		19,208		—

With an allowance recorded:
Commercial & Agriculture		2,714		3,031		1,054		367		385		286
Commercial Real Estate		4,472		4,755		454		8,495		8,681		2,354
Residential Real Estate		976		1,003		204		3,561		4,554		1,199
Real Estate Construction		—		—		—		541		547		107
Consumer and Other		21		21		1		60		60		60

Total		8,183		8,810		1,713		13,024		14,227		4,006

Total:
Commercial & Agriculture		3,920		4,357		1,054		5,420		5,611		286
Commercial Real Estate		9,813		11,015		454		13,941		16,795		2,354
Residential Real Estate		4,025		6,111		204		6,127		9,900		1,199
Real Estate Construction		—		—		—		541		1,068		107
Consumer and Other		21		21		1		61		61		60

Total	$	17,779	$	21,504	$	1,713	$	26,090	$	33,435	$	4,006

The following tables include the average recorded investment and interest income recognized for impaired financing receivables for the three-month and nine-month periods ended September 30, 2013 and 2012.


For the nine months ended:	September 30, 2013				September 30, 2012
For the nine months ended:	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	4,984	$	156	$	4,631	$	205
Commercial Real Estate		12,328		438		17,060		995
Residential Real Estate		5,324		287		4,628		391
Real Estate Construction		377		—		531		11
Consumer and Other		35		—		28		1

Total	$	23,048	$	881	$	26,878	$	1,603


For the three months ended:	September 30, 2013					September 30, 2012
For the three months ended:	Average Recorded Investment		Interest Income Recognized			Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	4,504	$	25		$	5,366	$	26
Commercial Real Estate		11,237		29			16,448		329
Residential Real Estate		4,773		18			5,227		145
Real Estate Construction		240		(11	)		608		11
Consumer and Other		21		—			54		1

Total	$	20,775	$	61		$	27,703	$	512