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LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)
 6 Months Ended
Jun. 30, 2013
Loans Receivable And Allowance For Loan Losses Tables  
Schedule of composition of loans categorized by the type of loan

The composition of loans categorized by the type of the loan, is as follows:

 

   June 30, 2013  December 31, 2012
       
Commercial, industrial, and municipal  $131,243   $132,633 
Commercial real estate mortgage   196,854    183,818 
Commercial construction and development   25,744    28,482 
Residential real estate mortgage   123,958    105,579 
Residential construction and development   15,056    15,247 
Residential real estate home equity   20,618    21,756 
Consumer and individual   4,403    4,715 
           
Subtotals – Gross loans   517,876    492,230 
Loans in process of disbursement   (4,673)   (7,039)
           
Subtotals – Disbursed loans   513,203    485,191 
Net deferred loan costs   280    231 
Allowance for loan losses   (7,640)   (7,431)
           
Net loans receivable  $505,843   $477,991
Schedule of summary of impaired loans

The following is a summary of information pertaining to impaired loans at period-end:

 

   June 30, 2013  December 31, 2012
       
Impaired loans without a valuation allowance  $4,977   $3,410 
Impaired loans with a valuation allowance   7,007    9,029 
           
Total impaired loans before valuation allowances   11,984    12,439 
Valuation allowance related to impaired loans   2,631    2,434 
           
Net impaired loans  $9,353   $10,005
Schedule of allowance for loan losses

Activity in the allowance for loans losses during the six months ended June 30, 2013 follows:

 

Allowance for loan losses:  Commercial  Commercial
Real Estate		  Residential
Real Estate		  Consumer  Unallocated  Total
                   
Beginning Balance  $3,014   $2,803   $1,511   $103   $—   $7,431 
Provision   252    336    73    14    —    675 
Recoveries   2         2    10    —    14 
Charge offs   (130)   (27)   (283)   (40)   —    (480)
                               
Ending balance  $3,138   $3,112   $1,303   $87   $—   $7,640 
Individually evaluated for impairment  $1,415   $836   $358   $22   $—   $2,631 
Collectively evaluated for impairment  $1,723   $2,276   $945   $65   $—   $5,009 
                               
Loans receivable (gross):                              
                               
Individually evaluated for impairment  $4,784   $4,507   $2,671   $22   $—   $11,984 
Collectively evaluated for impairment  $126,459   $218,091   $156,961   $4,381   $—   $505,892 

Activity in the allowance for loans losses during the six months ended June 30, 2012, follows:

 

Allowance for loan losses:  Commercial  Commercial
Real Estate		  Residential
Real Estate		  Consumer  Unallocated  Total
                   
Beginning Balance  $3,406   $3,175   $1,242   $118   $—   $7,941 
Provision   (390)   (15)   717    13    —    325 
Recoveries   6    3    2    2    —    13 
Charge offs   (105)   (115)   (388)   (23)   —    (631)
                               
Ending balance  $2,917   $3,048   $1,573   $110   $—   $7,648 
Individually evaluated for impairment  $1,244   $815   $495   $16   $—   $2,570 
Collectively evaluated for impairment  $1,673   $2,233   $1,078   $94   $—   $5,078 
                               
Loans receivable (gross):                              
                               
Individually evaluated for impairment  $5,770   $8,216   $2,518   $71   $—   $16,575 
Collectively evaluated for impairment  $132,057   $192,307   $132,198   $5,495   $—   $462,057
Schedule of commercial credit exposure

The commercial credit exposure based on internally assigned credit grade at June 30, 2013, follows:

 

      Commercial  Construction         
   Commercial  Real Estate  & Development  Agricultural  Government  Total
                   
High quality (risk rating 1)  $58   $—   $—   $—   $—   $58 
Minimal risk (2)   20,939    20,689    145    991    87    42,851 
Average risk (3)   47,478    123,235    20,203    3,147    8,521    202,584 
Acceptable risk (4)   30,137    37,984    3,070    211    3,467    74,869 
Watch risk (5)   10,529    8,368    1,734    —    —    20,631 
Substandard risk (6)   894    2,286    377    —    —    3,557 
Impaired loans (7)   4,606    4,292    215    178    —    9,291 
                               
Total  $114,641   $196,854   $25,744   $4,527   $12,075   $353,841 

 

The commercial credit exposure based on internally assigned credit grade at December 31, 2012, follows:

 

      Commercial  Construction         
   Commercial  Real Estate  & Development  Agricultural  Government  Total
                   
High quality (risk rating 1)  $38   $—   $—   $—   $—   $38 
Minimal risk (2)   16,360    20,193    305    559    1,575    38,992 
Average risk (3)   51,846    103,454    22,573    3,336    12,550    193,759 
Acceptable risk (4)   32,002    45,699    3,318    216    —    81,235 
Watch risk (5)   8,271    8,291    1,757    —    —    18,319 
Substandard risk (6)   617    2,179    327    —    —    3,123 
Impaired loans (7)   5,109    4,002    202    154    —    9,467 
                               
Total  $114,243   $183,818   $28,482   $4,265   $14,125   $344,933
Schedule of consumer credit exposure

The consumer credit exposure based on payment activity and internally assigned credit grade at June 30, 2013, follows:

 

   Residential-  Residential-  Construction and      
   Prime  HELOC  Development  Consumer  Total
                
Performing  $121,928   $20,160   $14,873   $4,381   $161,342 
Impaired loans   2,030    458    183    22    2,693 
                          
Total  $123,958   $20,618   $15,056   $4,403   $164,035 

 

The consumer credit exposure based on payment activity and internally assigned credit grade at December 31, 2012, follows:

 

   Residential-  Residential-  Construction and      
   Prime  HELOC  Development  Consumer  Total
                
Performing  $103,292   $21,250   $15,094   $4,689   $144,325 
Impaired loans   2,287    506    153    26    2,972 
                          
Total  $105,579   $21,756   $15,247   $4,715   $147,297
Schedule of payment age analysis of loans receivable

The payment age analysis of loans receivable disbursed at June 30, 2013, follows:

 

   30-59  60-89  90+  Total     Total  90+ and
Loan Class  Days  Days  Days  Past Due  Current  Loans  Accruing
                      
Commercial:                                   
                                    
Commercial and industrial  $390   $145   $1,040   $1,575   $113,066   $114,641   $— 
Agricultural   —    —    178    178    4,349    4,527    — 
Government   —    —    —    —    12,075    12,075    — 
                                    
Commercial real estate:                                   
                                    
Commercial real estate   700    113    1,100    1,913    194,941    196,854    — 
Commercial construction and development   —    —    —    —    24,457    24,457    — 
                                    
Residential real estate:                                   
                                    
Residential – Prime   241    102    1,340    1,683    122,275    123,958    — 
Residential – HELOC   141    42    282    465    20,153    20,618    — 
Residential – construction and development   12    32    133    177    11,493    11,670    — 
                                    
Consumer   17    8    3    28    4,375    4,403    — 
                                    
Total  $1,501   $442   $4,076   $6,019   $507,184   $513,203   $— 

 

The payment age analysis of loans receivable disbursed at December 31, 2012, follows:

 

   30-59  60-89  90+  Total     Total  90+ and
Loan Class  Days  Days  Days  Past Due  Current  Loans  Accruing
                      
Commercial:                                   
                                    
Commercial and industrial  $375   $83   $1,795   $2,253   $111,990   $114,243   $— 
Agricultural   —    154    —    154    4,111    4,265    — 
Government   —    —    —    —    14,125    14,125    — 
                                    
Commercial real estate:                                   
                                    
Commercial real estate   936    76    1,028    2,040    181,778    183,818    — 
Commercial construction and development   —    20    —    20    25,340    25,360    — 
                                    
Residential real estate:                                   
                                    
Residential – prime   950    274    1,344    2,568    103,011    105,579    — 
Residential – HELOC   64    —    335    399    21,357    21,756    — 
Residential – construction and development   —    —    133    133    11,197    11,330    — 
                                    
Consumer   21    3    15    39    4,676    4,715    — 
                                    
Total  $2,346   $610   $4,650   $7,606   $477,585   $485,191   $—
Schedule of impaired loans, by loan class

Impaired loans as of June 30, 2013, and during the six months then ended, by loan class, follows:

 

   Unpaid        Average  Interest
   Principal  Related  Recorded  Recorded  Income
   Balance  Allowance  Investment  Investment  Recognized
                
With no related allowance recorded:                         
                          
Commercial & industrial  $2,057   $—   $1,943   $1,713   $44 
Commercial real estate   1,826    —    1,648    1,376    15 
Commercial construction & development   3    —    —    —    — 
Residential – prime   1,495    —    1,366    1,095    6 
Residential – HELOC   20    —    20    10    1 
                          
With an allowance recorded:                         
                          
Commercial & industrial  $2,887   $1,335   $2,663   $3,145   $25 
Commercial real estate   2,718    768    2,644    2,772    43 
Commercial construction & development   216    68    215    209    6 
Agricultural   179    80    178    166    — 
Residential – prime   678    173    664    1,064    1 
Residential – HELOC   447    130    438    472    2 
Residential construction & development   184    55    183    168    1 
Consumer   22    22    22    24    — 
                          
Totals:                         
                          
Commercial & industrial  $4,944   $1,335   $4,606   $4,858   $69 
Commercial real estate   4,544    768    4,292    4,148    58 
Commercial construction & development   219    68    215    209    6 
Agricultural   179    80    178    166    — 
Residential – prime   2,173    173    2,030    2,159    7 
Residential – HELOC   467    130    458    482    3 
Residential construction & development   184    55    183    168    1 
Consumer   22    22    22    24    — 

The impaired loans at December 31, 2012, and during the year then ended, by loan class, follows:

 

   Unpaid        Average  Interest
   Principal  Related  Recorded  Recorded  Income
   Balance  Allowance  Investment  Investment  Recognized
                
With no related allowance recorded:                         
                          
Commercial and industrial  $1,521   $—   $1,483   $1,545   $88 
Commercial real estate   1,176    —    1,103    2,405    194 
Commercial construction and development   —    —    —    —    33 
Residential – Prime   881    —    824    493    9 
Residential – HELOC   —    —    —    —    3 
                          
With an allowance recorded:                         
                          
Commercial and industrial  $3,960   $1,287   $3,626   $4,238   $62 
Commercial real estate   3,035    643    2,899    3,303    105 
Commercial construction and development   205    31    202    427    21 
Agricultural   154    40    154    91    10 
Residential – Prime   1,511    277    1,463    1,746    22 
Residential – HELOC   510    126    506    387    15 
Residential construction and development   153    4    153    149    5 
Consumer   26    26    26    48    2 
                          
Totals:                         
                          
Commercial and industrial  $5,481   $1,287   $5,109   $5,783   $150 
Commercial real estate   4,211    643    4,002    5,708    299 
Commercial construction and development   205    31    202    427    54 
Agricultural   154    40    154    91    10 
Residential – Prime   2,392    277    2,287    2,239    31 
Residential – HELOC   510    126    506    387    18 
Residential construction and development   153    4    153    149    5 
Consumer   26    26    26    48    2
Schedule of loans on nonaccrual status

Loans on nonaccrual status at period-end, follows:

 

   June 30, 2013  December 31, 2012
       
Commercial:          
           
Commercial and industrial  $2,353   $3,023 
Agricultural   178    154 
           
Commercial real estate:          
           
Commercial real estate   2,069    2,001 
Commercial construction and development   19    1 
           
Residential real estate:          
           
Residential – prime   1,863    2,021 
Residential – HELOC   346    365 
Residential construction and development   165    133 
           
Consumer   14    17 
           
Total  $7,007   $7,715
Schedule of modifications of troubled debt

The following table presents information concerning modifications of troubled debt made during the quarter ended June 30, 2013:

 

      Pre-modification  Post-modification
   Number of  outstanding recorded  outstanding recorded
As of June 30, 2013 ($000s)  contracts  investment  investment at period-end
          
Commercial & industrial  2  $358  $354
Residential real estate – prime  1  $90  $90

 

The following table presents information concerning modifications of troubled debt made during the quarter ended June 30, 2012:

 

      Pre-modification  Post-modification
   Number of  outstanding recorded  outstanding recorded
As of June 30, 2012 ($000s)  contracts  investment  investment at period-end
          
Commercial real estate  1  $148  $144

The following table presents information concerning modifications of troubled debt made during the six months ended June 30, 2013:

 

      Pre-modification  Post-modification
   Number of  outstanding recorded  outstanding recorded
As of June 30, 2013 ($000s)  contracts  investment  investment at period-end
          
Commercial & industrial  3  $396  $390
Commercial real estate  2  $221  $214
Residential real estate – prime  1  $90  $  90

 

The following table presents information concerning modifications of troubled debt made during the six months ended June 30, 2012:

 

      Pre-modification  Post-modification
   Number of  outstanding recorded  outstanding recorded
As of June 30, 2012 ($000s)  contracts  investment  investment at period-end
          
Commercial & industrial  3  $180  $173
Commercial real estate  2  $527  $516

 

The following table outlines past troubled debt restructurings that subsequently defaulted within twelve months of the last restructuring date. For purposes of this table, default is defined as 90 days or more past due on restructured payments. No past troubled debt restructurings subsequently defaulted within twelve months of the last restructuring during the quarter ended June 30, 2013.

       
Default during the quarter ended  Number of  Recorded
June 30, 2012 ($000s)  contracts  investment
       
Commercial & industrial  1  $23

 

       
Default during the six months ended  Number of  Recorded
June 30, 2013 ($000s)  contracts  investment
       
Commercial real estate  1  $74
Residential – prime  1  $90

 

       
Default during the six months ended  Number of  Recorded
June 30, 2012 ($000s)  contracts  investment
       
Commercial & industrial  1  $23