Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2014

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Allowance Related to Unallocated Segment

The following tables present, by portfolio segment, the changes in the allowance for loan losses and the loan balances outstanding for the nine months ended September 30, 2014 and 2013.

	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction		Consumer and Other			Unallocated		Total
For the nine months ended September 30, 2014
Allowance for loan losses:
Beginning balance	$	2,841		$	7,559		$	5,224		$	184	$	214		$	506	$	16,528
Charge-offs		(326	)		(1,720	)		(1,329	)		—		(65	)		—		(3,440	)
Recoveries		238			350			216			5		48			—		857
Provision		(1,148	)		1,655			201			176		18			598		1,500
Ending Balance	$	1,605		$	7,844		$	4,312		$	365	$	215		$	1,104	$	15,445

	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction			Consumer and Other			Unallocated		Total
For the nine months ended 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 and Other			Unallocated		Total
For the three months ended September 30, 2014
Allowance for loan losses:
Beginning balance	$	2,067		$	7,988		$	4,439		$	287	$	196		$	418	$	15,395
Charge-offs		(13	)		(146	)		(275	)		—		(22	)		—		(456	)
Recoveries		143			251			95			2		15			—		506
Provision		(592	)		(249	)		53			76		26			686		—
Ending Balance	$	1,605		$	7,844		$	4,312		$	365	$	215		$	1,104	$	15,445

	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction			Consumer and Other			Unallocated		Total
For the three months ended 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 and Other		Unallocated		Total
September 30, 2014
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	655	$	67	$	896	$	—	$	—	$	—	$	1,618
Ending balance:
Collectively evaluated for impairment	$	950	$	7,777	$	3,416	$	365	$	215	$	1,104	$	13,827
Ending Balance	$	1,605	$	7,844	$	4,312	$	365	$	215	$	1,104	$	15,445
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	2,319	$	6,638	$	3,518	$	—	$	6			$	12,481
Ending balance:
Collectively evaluated for impairment	$	104,294	$	438,530	$	262,348	$	55,244	$	14,121			$	874,537
Ending Balance	$	106,613	$	445,168	$	265,866	$	55,244	$	14,127			$	887,018

	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2013
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	1,262	$	445	$	802	$	—	$	—	$	—	$	2,509
Ending balance:
Collectively evaluated for impairment	$	1,579	$	7,114	$	4,422	$	184	$	214	$	506	$	14,019
Ending Balance	$	2,841	$	7,559	$	5,224	$	184	$	214	$	506	$	16,528
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	3,869	$	10,175	$	4,005	$	—	$	8			$	18,057
Ending balance:
Collectively evaluated for impairment	$	112,006	$	433,671	$	246,686	$	39,964	$	10,857			$	843,184
Ending Balance	$	115,875	$	443,846	$	250,691	$	39,964	$	10,865			$	861,241

Credit Exposures by Internally Assigned Grades

	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
September 30, 2014
Pass	$	99,513	$	415,368	$	101,124	$	49,587	$	4,706	$	670,298
Special Mention		3,905		15,534		613		20		—		20,072
Substandard		3,195		14,266		8,897		43		73		26,474
Doubtful		—		—		715		—		—		715
Ending Balance	$	106,613	$	445,168	$	111,349	$	49,650	$	4,779	$	717,559
December 31, 2013
Pass	$	107,923	$	415,938	$	98,700	$	35,495	$	2,252	$	660,308
Special Mention		2,038		9,145		986		21		—		12,190
Substandard		5,914		18,763		8,175		—		70		32,922
Doubtful		—		—		2,349		—		—		2,349
Ending Balance	$	115,875	$	443,846	$	110,210	$	35,516	$	2,322	$	707,769

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 and Other		Total
September 30, 2014
Performing	$	154,464	$	5,594	$	9,348	$	169,406
Nonperforming		53		—		—		53
Total	$	154,517	$	5,594	$	9,348	$	169,459
	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2013
Performing	$	140,481	$	4,448	$	8,543	$	153,472
Nonperforming		—		—		—		—
Total	$	140,481	$	4,448	$	8,543	$	153,472

Aging Analysis of Past Due Loans

The following tables include an aging analysis of the recorded investment of past due loans outstanding as of September 30, 2014 and December 31, 2013.

September 30, 2014	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
Commercial & Agriculture	$	4	$	—	$	208	$	212	$	106,401	$	106,613	$	—
Commercial Real Estate		301		68		1,258		1,627		443,541		445,168		—
Residential Real Estate		810		768		4,164		5,742		260,124		265,866		—
Real Estate Construction		—		—		43		43		55,201		55,244		—
Consumer and Other		43		46		41		130		13,997		14,127		—
Total	$	1,158	$	882	$	5,714	$	7,754	$	879,264	$	887,018	$	—
December 31, 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
Commercial & Agriculture	$	105	$	—	$	443	$	548	$	115,327	$	115,875	$	—
Commercial Real Estate		655		201		2,098		2,954		440,892		443,846		—
Residential Real Estate		3,140		1,084		5,531		9,755		240,936		250,691		—
Real Estate Construction		—		—		—		—		39,964		39,964		—
Consumer and Other		170		20		—		190		10,675		10,865		—
Total	$	4,070	$	1,305	$	8,072	$	13,447	$	847,794	$	861,241	$	—

Summary of Nonaccrual Loans

The following table presents loans on nonaccrual status as of September 30, 2014 and December 31, 2013.

	September 30, 2014		December 31, 2013
Commercial & Agriculture	$	1,148	$	1,590
Commercial Real Estate		5,993		9,609
Residential Real Estate		8,571		9,210
Real Estate Construction		43		—
Consumer and Other		75		50
Total	$	15,830	$	20,459

Schedule of Troubled Debt Restructurings

Loan modifications that are considered TDRs completed during the nine-month periods ended September 30, 2014 and September 30, 2013 were as follows:

	For the Nine-Month Period Ended September 30, 2014						For the Nine-Month Period Ended September 30, 2013
	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
Commercial & Agriculture		—	$	—	$	—		—	$	—	$	—
Commercial Real Estate		—		—		—		2		547		547
Residential Real Estate		5		245		245		—		—		—
Real Estate Construction		—		—		—		—		—		—
Consumer and Other		—		—		—		—		—		—
Total Loan Modifications		5	$	245	$	245		2	$	547	$	547

Loan modifications that are considered TDRs completed during the quarter ended September 30, 2014 and September 30, 2013 were as follows:

	For the Three-Month Period Ended September 30, 2014						For the Three-Month Period Ended September 30, 2013
	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
Commercial & Agriculture		—	$	—	$	—		—	$	—	$	—
Commercial Real Estate		—		—		—		1		422		422
Residential Real Estate		3		97		97		—		—		—
Real Estate Construction		—		—		—		—		—		—
Consumer and Other		—		—		—		—		—		—
Total Loan Modifications		3	$	97	$	97		1	$	422	$	422

Impaired Financing Receivables

The following table includes the recorded investment and unpaid principal balances for impaired financing receivables with the associated allowance amount, if applicable, as of September 30, 2014 and December 31, 2013.

	September 30, 2014						December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial & Agriculture	$	1,379	$	1,504	$	—	$	1,525	$	1,657	$	—
Commercial Real Estate		5,632		6,191		—		5,983		6,214		—
Residential Real Estate		2,115		3,675		—		1,202		2,263		—
Real Estate Construction		—		—		—		—		—		—
Consumer and Other		6		6		—		8		8		—
Total		9,132		11,376		—		8,718		10,142		—
With an allowance recorded:
Commercial & Agriculture		940		1,056		655		2,344		2,437		1,262
Commercial Real Estate		1,006		1,123		67		4,192		4,496		445
Residential Real Estate		1,403		3,017		896		2,803		4,021		802
Real Estate Construction		—		—		—		—		—		—
Consumer and Other		—		—		—		—		—		—
Total		3,349		5,196		1,618		9,339		10,954		2,509
Total:
Commercial & Agriculture		2,319		2,560		655		3,869		4,094		1,262
Commercial Real Estate		6,638		7,314		67		10,175		10,710		445
Residential Real Estate		3,518		6,692		896		4,005		6,284		802
Real Estate Construction		—		—		—		—		—		—
Consumer and Other		6		6		—		8		8		—
Total	$	12,481	$	16,572	$	1,618	$	18,057	$	21,096	$	2,509

The following tables include the average recorded investment and interest income recognized for impaired financing receivables for the three and nine-month periods ended September 30, 2014 and 2013.

For the nine months ended:	September 30, 2014				September 30, 2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	3,570	$	104	$	4,984	$	156
Commercial Real Estate		9,227		239		12,328		438
Residential Real Estate		3,559		220		5,324		287
Real Estate Construction		—		—		377		—
Consumer and Other		7		—		35		—
Total	$	16,363	$	563	$	23,048	$	881

For the three months ended:	September 30, 2014				September 30, 2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	2,829	$	25	$	4,504	$	25
Commercial Real Estate		7,884		17		11,237		29
Residential Real Estate		3,336		74		4,773		18
Real Estate Construction		—		—		240		(11	)
Consumer and Other		6		—		21		—
Total	$	14,055	$	116	$	20,775	$	61