LOANS (Tables)

12 Months Ended

Dec. 31, 2012

LOANS

Schedule of loans receivable, net

	December 31,
(in thousands)	2012			2011
Residential real estate	$	90,228		$	80,056
Commercial real estate	231,835			256,508
Construction, land acquisition and development	32,502			33,450
Commercial and industrial	110,073			174,233
Consumer	109,783			111,778
State and political subdivisions	23,354			23,496
Total loans, gross	597,775			679,521
Unearned discount	(103		)	(159		)
Net deferred loan fees and costs	260			516
Allowance for loan and lease losses	(18,536		)	(20,834		)
Loans, net	$	579,396		$	659,044

Schedule of activity in allowance for loan and lease losses by loan category

Allowance for Loan and Lease Losses by Loan Category
December 31, 2012

	Real Estate
(in thousands)	Residential Real Estate			Commercial Real Estate			Construction, Land Acquisition and Development			Commercial and Industrial			Consumer			State and Political Subdivisions		Total
Allowance for loan losses:
Beginning Balance, January 1, 2012	$	1,823		$	11,151		$	2,590		3,292			1,526			$	452	$	20,834
Charge-offs	(683		)	(3,298		)	(258		)	(3,389		)	(673		)	—		(8,301		)
Recoveries	35			1,035			265			265			338			—		1,938
Provisions	589			(826		)	(435		)	3,999			517			221		4,065
Ending Balance, December 31, 2012	$	1,764		$	8,062		$	2,162		$	4,167		$	1,708		$	673	$	18,536
Ending balance, December 31, 2012:
Individually evaluated for impairment	$	40		$	268		$	2		$	—		$	—		$	—	$	310
Ending balance, December 31, 2012:
Collectively evaluated for impairment	$	1,724		$	7,794		$	2,160		$	4,167		$	1,708		$	673	$	18,226
Loans receivable:
Ending balance, December 31, 2012	$	90,228		$	231,835		$	32,502		$	110,073		$	109,783		$	23,354	$	597,775
Ending balance, December 31, 2012:
Individually evaluated for impairment	$	2,773		$	11,459		$	993		$	—		$	—		$	—	$	15,225
Ending balance, December 31, 2012:
Collectively evaluated for impairment	$	87,455		$	220,376		$	31,509		$	110,073		$	109,783		$	23,354	$	582,550

Allowance for Loan and Lease Losses by Loan Category
December 31, 2011

	Real Estate									Commercial and Industrial					Consumer
(in thousands)	Residential Real Estate			Commercial Real Estate			Construction, Land Acquisition and Development			Solid Waste Landfills		Commercial and Industrial			Indirect Auto			Installment/ HELOC			State and Political Subdivisions			Total
Allowance for loan losses:
Beginning Balance, January 1, 2011	$	2,176		$	9,640		$	4,170		$	11	$	4,839		597			$	576		$	566		$	22,575
Charge-offs	(1,273		)	(2,395		)	(1,857		)	—		(416		)	(530		)	(209		)	—			(6,680		)
Recoveries	57			93			2,188			—		1,852			219			7			—			4,416
Provisions	863			3,813			(1,911		)	5		(2,999		)	516			350			(114		)	523
Ending Balance, December 31, 2011	$	1,823		$	11,151		$	2,590		$	16	$	3,276		$	802		$	724		$	452		$	20,834
Ending balance, December 31, 2011:
individually evaluated for impairment	$	65		$	545		$	91		$	—	$	—		$	—		$	—		$	—		$	701
Ending balance, December 31, 2011:
collectively evaluated for impairment	$	1,758		$	10,606		$	2,499		$	16	$	3,276		$	802		$	724		$	452		$	20,133
Loans receivable:
																					—
Ending balance, December 31, 2011	$	80,056		$	256,508		$	33,450		$	42,270	$	131,963		$	63,722		$	48,056		$	23,496		$	679,521
Ending balance, December 31, 2011:
individually evaluated for impairment	$	3,615		13,012			2,979			—		4,066			—			31			—			$	23,703
Ending balance, December 31, 2011:
collectively evaluated for impairment	$	76,441		$	243,496		$	30,471		$	42,270	$	127,897		$	63,722		$	48,025		$	23,496		$	655,818

Allowance for Loan and Lease Losses by Loan Category
December 31, 2010

	Real Estate									Commercial & Industrial					Consumer
(in thousands)	Residential Real Estate			Commercial Real Estate			Construction, Land Acquisition and Development			Solid Waste Landfills		Other			Indirect Auto			Installment/ HELOC			State and Political Subdivisions		Total
Allowance for loan losses:
Beginning Balance, January 1, 2010	$	696		$	8,397		$	6,285		—		$	4,507		938			$	1,069		$	566	$	22,458
Charge-offs	(221		)	(5,049		)	(12,893		)	—		(6,883		)	(507		)	(229		)	—		(25,782		)
Recoveries	32			152			303			—		151			189			31			—		858
Provisions	1,669			6,140			10,475			11		7,064			(23		)	(295		)	—		25,041
Ending Balance, December 31, 2010	$	2,176		$	9,640		$	4,170		$	11	$	4,839		$	597		$	576		$	566	$	22,575
Ending balance, December 31, 2010:
individually evaluated for impairment	$	785		372			310			—		339			—			—			—		$	1,806
Ending balance, December 31, 2010:
collectively evaluated for impairment	$	1,391		$	9,268		$	3,860		$	11	$	4,500		$	597		$	576		$	566	$	20,769
Loans receivable:
Ending balance, December 31, 2010	$	87,925		$	256,327		$	77,395		$	52,270	$	145,427		$	63,509		$	47,344		$	27,739	$	757,936
Ending balance, December 31, 2010:
individually evaluated for impairment	$	2,926		9,477			11,365			—		6,029			—			132			—		$	29,929
Ending balance, December 31, 2010:
collectively evaluated for impairment	$	84,999		$	246,850		$	66,030		$	52,270	$	139,398		$	63,509		$	47,212		$	27,739	$	728,007

Credit Quality Indicators

Schedule of details and delinquency status of past due and non-accrual loans

	December 31, 2012
	Delinquency Status
	0-29 Days		30-59 Days		60-89 Days		>/= 90 Days
(in thousands)	Past Due		Past Due		Past Due		Past Due		Total
Performing (Accruing) Loans:
Real Estate:
Residential Real Estate	$	86,301	$	422	$	31	$	30	$	86,784
Commercial Real Estate	226,344		194		—		—		226,538
Construction, Land Acquisition and Development	31,899		29		—		—		31,928
Total Real Estate	344,544		645		31		30		345,250
Commercial and Industrial	109,312		517		20		27		109,876
Consumer	107,821		1,489		333		—		109,643
State and Political Subdivisions	23,354		—		—		—		23,354
Total Peforming (Accruing) Loans	585,031		2,651		384		57		588,123
Non-Accrual Loans:
Real Estate:
Residential Real Estate	953		105		230		2,156		3,444
Commercial Real Estate	250		121		4,352		574		5,297
Construction, Land Acquisition and Development	446		—		—		128		574
Total Real Estate	1,649		226		4,582		2,858		9,315
Commercial and Industrial	61		30		11		95		197
Consumer	2		—		2		136		140
State and Political Subdivisions	—		—		—		—		—
Total Non-Accrual Loans	1,712		256		4,595		3,089		9,652
Total Loans Receivable	$	586,743	$	2,907	$	4,979	$	3,146	$	597,775

	December 31, 2011
	Delinquency Status
	0-29 Days		30-59 Days		60-89 Days		>/= 90 Days
(in thousands)	Past Due		Past Due		Past Due		Past Due		Total
Performing (Accruing) Loans:
Real Estate:
Residential Real Estate	$	74,379	$	1,293	$	248	$	—	$	75,920
Commercial Real Estate	243,873		2,381		1,235		—		247,489
Construction, Land Acquisition and Development	30,945		241		—		—		31,186
Total Real Estate	349,197		3,915		1,483		—		354,595
Commercial and Industrial:
Solid Waste Landfills	42,270		—		—		—		42,270
Other	126,774		667		91		5		127,537
Total Commercial and Industrial	169,044		667		91		5		169,807
Consumer:
Indirect Auto	62,753		845		120		—		63,718
Installment/HELOC	47,617		244		163		—		48,024
Total Consumer	110,370		1,089		283		—		111,742
State and Political Subdivisions	23,464		—		—		—		23,464
Total Peforming (Accruing) Loans	652,075		5,671		1,857		5		659,608
Non-Accrual Loans:
Real Estate:
Residential Real Estate	1,994		964		94		1,084		4,136
Commercial Real Estate	291		220		—		8,508		9,019
Construction, Land Acquisition and Development	426		—		—		1,838		2,264
Total Real Estate	2,711		1,184		94		11,430		15,419
Commercial and Industrial:
Solid Waste Landfills	—		—		—		—		—
Other	4,114		4		126		182		4,426
Total Commercial and Industrial	4,114		4		126		182		4,426
Consumer:
Indirect Auto	—		—		—		4		4
Installment/HELOC	—		—		—		32		32
Total Consumer	—		—		—		36		36
State and Political Subdivisions	—		—		—		32		32
Total Non-Accrual Loans	6,825		1,188		220		11,680		19,913
Total Loans Receivable	$	658,900	$	6,859	$	2,077	$	11,685	$	679,521

Schedule of analysis of impaired loans, which include performing TDRs

	December 31, 2012
(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With No Allowance Recorded:
Real Estate:
Residential Real Estate	$	1,276	$	1,378	$	—
Commercial Real Estate	389		665		—
Construction, Land Acquisition and Development	709		804		—
Total Real Estate Loans	2,374		2,847		—
Commercial and Industrial	—		—		—
Consumer	—		—		—
State and Political Subdivisions	—		—		—
Total Impaired Loans with No Related Allowance Recorded	2,374		2,847		—
With a Related Allowance Recorded:
Real Estate:
Residential Real Estate	1,498		1,512		40
Commercial Real Estate	11,069		11,069		268
Construction, Land Acquisition and Development	285		285		2
Total Real Estate Loans	12,852		12,866		310
Commercial and Industrial	—		—		—
Consumer	—		—		—
State and Political Subdivisions	—		—		—
Total Impaired Loans with a Related Allowance Recorded	12,852		12,866		310
Total of impaired loans
Real Estate:
Residential Real Estate	2,773		2,890		40
Commercial Real Estate	11,459		11,734		268
Construction, Land Acquisition and Development	993		1,088		2
Total Real Estate Loans	15,225		15,712		310
Commercial and Industrial	—		—		—
Consumer	—		—		—
State and Political Subdivisions	—		—		—
Total Impaired Loans	$	15,225	$	15,712	$	310

	December 31, 2011
(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With No Allowance Recorded:
Real Estate:
Residential Real Estate	$	961	$	1,097	$	—
Commercial Real Estate (2)	725		815		—
Construction, Land Acquisition and Development	2,058		5,387		—
Total Real Estate Loans	3,744		7,299		—
Commercial and Industrial:
Solid Waste Landfills	—		—		—
Other	4,066		4,601		—
Total Commercial and Industrial	4,066		4,601		—
Consumer:
Indirect Auto	—		—		—
Installment/HELOC	31		35		—
Total Consumer	31		35		—
State and Political Subdivisions	—		—		—
Total Impaired Loans with No Related Allowance Recorded	7,841		11,935		—
With a Related Allowance Recorded:
Real Estate:
Residential Real Estate	2,654		3,274		65
Commercial Real Estate	12,287		14,187		545
Construction, Land Acquisition and Development	921		984		91
Total Real Estate Loans	15,862		18,445		701
Commercial and Industrial:
Solid Waste Landfills	—		—		—
Other	—		—		—
Total Commercial and Industrial	—		—		—
Consumer:
Indirect Auto	—		—		—
Installment/HELOC	—		—		—
Total Consumer	—		—		—
State and Political Subdivisions	—		—		—
Total Impaired Loans with a Related Allowance Recorded	15,862		18,445		701
Total of impaired loans
Real Estate:
Residential Real Estate	3,615		4,371		65
Commercial Real Estate	13,012		15,002		545
Construction, Land Acquisition and Development	2,979		6,371		91
Total Real Estate Loans	19,606		25,744		701
Commercial and Industrial:
Solid Waste Landfills	—		—		—
Other	4,066		4,601		—
Total Commercial and Industrial	4,066		4,601		—
Consumer:
Indirect Auto	—		—		—
Installment/HELOC	31		35		—
Total Consumer	31		35		—
State and Political Subdivisions	—		—		—
Total Impaired Loans	$	23,703	$	30,380	$	701

Schedule of average balance and interest income recognized on impaired loans

	Year Ended December 31,
	2012				2011				2010
(in thousands)	Average Balance		Interest Income (1)		Average Balance		Interest Income (1)		Average Balance		Interest Income (1)
Real Estate:
Residential Real Estate	$	3,882	$	11	$	2,834	$	7	$	2,491	$	13
Commercial Real Estate	14,196		328		12,827		184		13,456		393
Construction, Land Acquisition & Development	2,340		37		6,445		38		21,707		53
Total Real Estate	20,418		376		22,106		229		37,654		459
Commercial and Industrial:
Solid Waste Landfills	—		—		—		—		—		—
Other	2,521		—		4,971		9		4,081		160
Commercial and Industrial:	2,521		—		4,971		9		4,081		160
Consumer:
Indirect Auto	—		—		—		—		85		—
Installment/HELOC	232		—		58		—		280		—
Total Consumer	232		—		58		—		365		—
State and Political Subdivisions	157		—		—		—		1,105		—
Total Impaired Loans	$	23,328	$	376	$	27,135	$	238	$	43,205	$	619

Schedule of pre- and post- modification recorded investment in loans modified as TDRs

	Year Ended December 31, 2012					Year Ended December 31, 2011
(dollars in thousands)	Number of Contracts	Pre- Modification Outstanding Recorded Investments		Post- Modification Outstanding Recorded Investments		Number of Contracts	Pre- Modification Outstanding Recorded Investments		Post- Modification Outstanding Recorded Investments
Troubled Debt Restructuring:
Residential Real Estate	1	$	624	$	624	6	$	537	$	417
Commercial Real Estate	3	2,428		2,428		—	—		—
Construction, Land Acquisition and Development	1	39		39		6	1,373		1,373
Commercial and Industrial	—	—		—		1	4,681		4,681
Total New Troubled Debt Restructuring	5	$	3,091	$	3,091	13	$	6,591	$	6,471

Schedule of types of modifications made

	Year Ended December 31, 2012
					Construction
					Land Acquisition		Commercial
	Residential		Commercial		and		and
(in thousands)	Real Estate		Real Estate		Development		Industrial		Total
Type of modification
Extension of term	$	624	$	432	$	39	$	—	$	1,095
Extension of term and rate concession			1,996		—		—		1,996
Extension of term and principal forgiveness	—		—		—		—		—
Total TDRs	$	624	$	2,428	$	39	$	—	$	3,091

	Year Ended December 31, 2011
					Construction
					Land Acquisition		Commercial
	Residential		Commercial		and		and
(in thousands)	Real Estate		Real Estate		Development		Industrial		Total
Type of modification
Extension of term	$	362	$	—	$	1,373	$	4,681	$	6,416
Extension of term and rate concession	—		—		—		—		—
Extension of term and principal forgiveness	55		—		—		—		55
Total TDRs	$	417	$	—	$	1,373	$	4,681	$	6,471

Summary of TDRs which have re-defaulted

	Year Ended December 31, 2012			Year Ended December 31, 2011
	Number of	Recorded		Number of	Recorded
(dollars in thousands)	Contracts	Investment		Contracts	Investment
Residential real estate	2	$	196	—	$	—
Commercial real estate	—	—		1	145
Construction, land acquisition and development	1	408
Commercial and industrial	—	—		1	90
Total	3	$	604	2	$	235

Commercial loans

Credit Quality Indicators

Schedule of recorded investment in loans receivable by loan type and credit quality indicator

Commercial Credit Quality Indicators

December 31, 2012

	Real Estate
(in thousands)	Residential Real Estate		Commercial Real Estate		Construction, Land Acquisition and Development		Commercial and Industrial		Consumer		State and Political Subdivisions		Total
Internal Risk Rating
Pass	$	17,138	$	200,147	$	23,052	$	93,864	$	3,324	$	17,580	$	355,105
Special Mention	564		8,587		57		7,437		—		849		17,494
Substandard	2,309		23,101		7,395		3,395		143		4,925		41,268
Doubtful	—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—
Total	$	20,011	$	231,835	$	30,504	$	104,696	$	3,467	$	23,354	$	413,867

Commercial Credit Quality Indicators

December 31, 2011

	Real Estate						Commercial and Industrial
					Construction,						Consumer
(in thousands)	Residential Real Estate		Commercial Real Estate		Land Acquisition and Development		Solid Waste Landfills		Other		Installment/ HELOC		State and Political Subdivisions		Total
Internal Risk Rating
Pass	$	19,267	$	198,730	$	15,924	$	42,270	$	117,104	$	2,489	$	23,464	$	419,248
Special Mention	313		12,908		256		—		3,690		288		—		17,455
Substandard	3,906		44,870		14,090		—		5,532		144		32		68,574
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	23,486	$	256,508	$	30,270	$	42,270	$	126,326	$	2,921	$	23,496	$	505,277

Other loans

Credit Quality Indicators

Schedule of recorded investment in loans receivable by loan type and credit quality indicator

Other Loans Credit Quality Indicators

December 31, 2012

	Accruing		Non-accruing
(in thousands)	Loans		Loans		Total
Residential real estate	$	68,446	$	1,771	$	70,217
Construction, land acquisition and development - residential	1,998		—		1,998
Commercial - indirect auto	5,377		—		5,377
Consumer	106,272		44		106,316
Total	$	182,093	$	1,815	$	183,908

Other Loans Credit Quality Indicators

December 31, 2011

	Accruing		Non-accruing
(in thousands)	Loans		Loans		Total
Residential real estate	$	55,112	$	1,458	$	56,570
Construction, land acquisition and development - residential	3,180		—		3,180
Consumer - indirect auto	63,718		4		63,722
Commercial - indirect auto	5,637		—		5,637
Installment/HELOC	45,103		32		45,135
Total	$	172,750	$	1,494	$	174,244