LOANS (Tables)

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Composition of loans receivable and loans held-for-sale

(in thousands)	June 30, 2014			December 31, 2013
Residential 1-4 family	$	239,258		$	231,113
Residential 5+ multifamily		4,866			4,848
Construction of residential 1-4 family		2,272			1,876
Home equity credit		34,438			34,139
Residential real estate		280,834			271,976
Commercial		95,523			91,853
Construction of commercial		14,352			10,948
Commercial real estate		109,875			102,801
Farm land		3,332			3,402
Vacant land		8,891			9,067
Real estate secured		402,932			387,246
Commercial and industrial		49,368			46,292
Municipal		4,421			4,252
Consumer		3,765			3,889
Loans receivable, gross		460,486			441,679
Deferred loan origination fees and costs, net		1,243			1,182
Allowance for loan losses		(5,102	)		(4,683	)
Loans receivable, net	$	456,627		$	438,178
Loans held-for-sale
Residential 1-4 family	$	—		$	173

Composition of loans receivable by risk rating grade

(in thousands)	Pass		Special mention		Substandard		Doubtful		Loss		Total
June 30, 2014
Residential 1-4 family	$	221,887	$	11,320	$	5,957	$	94	$	—	$	239,258
Residential 5+ multifamily		2,710		1,086		1,070		—		—		4,866
Construction of residential 1-4 family		2,272		—		—		—		—		2,272
Home equity credit		31,677		1,388		1,373		—		—		34,438
Residential real estate		258,546		13,794		8,400		94		—		280,834
Commercial		73,809		13,198		8,516		—		—		95,523
Construction of commercial		13,186		583		583		—		—		14,352
Commercial real estate		86,995		13,781		9,099		—		—		109,875
Farm land		828		1,387		1,117		—		—		3,332
Vacant land		5,479		254		3,158		—		—		8,891
Real estate secured		351,848		29,216		21,774		94		—		402,932
Commercial and industrial		41,283		7,172		913		—		—		49,368
Municipal		4,421		—		—		—		—		4,421
Consumer		3,647		88		30		—		—		3,765
Loans receivable, gross	$	401,199	$	36,476	$	22,717	$	94	$	—	$	460,486
(in thousands)	Pass		Special mention		Substandard		Doubtful		Loss		Total
December 31, 2013
Residential 1-4 family	$	212,683	$	12,338	$	5,997	$	95	$	—	$	231,113
Residential 5+ multifamily		2,674		1,199		975		—		—		4,848
Construction of residential 1-4 family		1,876		—		—		—		—		1,876
Home equity credit		31,444		1,355		1,340		—		—		34,139
Residential real estate		248,677		14,892		8,312		95		—		271,976
Commercial		67,554		16,044		8,255		—		—		91,853
Construction of commercial		10,257		102		589		—		—		10,948
Commercial real estate		77,811		16,146		8,844		—		—		102,801
Farm land		847		1,421		1,134		—		—		3,402
Vacant land		5,640		288		3,139		—		—		9,067
Real estate secured		332,975		32,747		21,429		95		—		387,246
Commercial and industrial		37,860		7,452		980		—		—		46,292
Municipal		4,252		—		—		—		—		4,252
Consumer		3,739		113		37		—		—		3,889
Loans receivable, gross	$	378,826	$	40,312	$	22,446	$	95	$	—	$	441,679

Composition of loans receivable by delinquency status

				Past due
												180		30		Accruing 90
												days		days		days
				1-29		30-59		60-89		90-179		and		and		and		Non-
(in thousands)		Current		days		days		days		days		over		over		over		accrual
June 30, 2014
Residential 1-4 family	$	232,521	$	4,317	$	287	$	1,034	$	868	$	230	$	2,419	$	—	$	2,495
Residential 5+ multifamily		4,771		—		—		—		95		—		95		—		—
Construction of residential 1-4 family		2,272		—		—		—		—		—		—		—		—
Home equity credit		33,100		273		761		162		44		99		1,066		—		485
Residential real estate		272,664		4,590		1,048		1,196		1,007		329		3,580		—		2,980
Commercial		92,816		1,413		53		—		—		1,241		1,294		—		1,892
Construction of commercial		14,014		205		—		—		133		—		133		—		133
Commercial real estate		106,830		1,618		53		—		133		1,241		1,427		—		2,025
Farm land		2,197		733		18		—		—		384		402		—		384
Vacant land		5,920		76		—		26		—		2,869		2,895		26		2,869
Real estate secured		387,611		7,017		1,119		1,222		1,140		4,823		8,304		26		8,258
Commercial and industrial		48,197		1,044		122		5		—		—		127		—		99
Municipal		4,421		—		—		—		—		—		—		—		—
Consumer		3,663		94		6		2		—		—		8		—		22
Loans receivable, gross	$	443,892	$	8,155	$	1,247	$	1,229	$	1,140	$	4,823	$	8,439	$	26	$	8,379
December 31, 2013
Residential 1-4 family	$	222,356	$	3,853	$	1,795	$	2,622	$	353	$	134	$	4,904	$	—	$	1,525
Residential 5+ multifamily		4,749		—		—		99		—		—		99		—		—
Construction of residential 1-4 family		1,876		—		—		—		—		—		—		—		—
Home equity credit		33,391		129		361		125		—		133		619		—		402
Residential real estate		262,372		3,982		2,156		2,846		353		267		5,622		—		1,927
Commercial		89,434		566		371		108		235		1,139		1,853		—		1,857
Construction of commercial		9,784		1,025		—		139		—		—		139		—		—
Commercial real estate		99,218		1,591		371		247		235		1,139		1,992		—		1,857
Farm land		2,995		23		—		—		—		384		384		—		384
Vacant land		6,058		139		—		—		—		2,870		2,870		—		2,870
Real estate secured		370,643		5,735		2,527		3,093		588		4,660		10,868		—		7,038
Commercial and industrial		45,897		262		112		—		—		21		133		—		134
Municipal		4,252		—		—		—		—		—		—		—		—
Consumer		3,746		113		29		1		—		—		30		—		—
Loans receivable, gross	$	424,538	$	6,110	$	2,668	$	3,094	$	588	$	4,681	$	11,031	$	—	$	7,172

Troubled debt restructurings

	Three months ended June 30, 2014						Six months ended June 30, 2014
(in thousands)	Quantity		Pre-modification balance		Post-modification balance		Quantity		Pre-modification balance		Post-modification balance
Residential real estate		—	$	—	$	—		1	$	30	$	30
Commercial real estate		1		197		197		2		447		447
Home equity credit		1		24		24		2		72		72
Troubled debt restructurings		2	$	221	$	221		5	$	549	$	549
Interest only and term extension		—	$	—	$	—		1	$	48	$	48
Debt consolidation and term extension		1		197		197		2		447		447
Interest only		1		24		24		2		54		54
Troubled debt restructurings		2	$	221	$	221		5	$	549	$	549

Changes in allowance for loan losses

	Three months ended June 30, 2014												Six months ended June 30, 2014
		Beginning		Provision			Charge-			Reco-		Ending		Beginning		Provision			Charge-			Reco-		Ending
(in thousands)		balance		(benefit)			offs			veries		balance		balance		(benefit)			offs			veries		balance
Residential	$	1,930	$	75		$	(31	)	$	—	$	1,974	$	1,938	$	137		$	(103	)	$	2	$	1,974
Commercial		1,491		132			(1	)		—		1,622		1,385		289			(52	)		—		1,622
Land		226		48			(90	)		—		184		226		49			(91	)		—		184
Real estate		3,647		255			(122	)		—		3,780		3,549		475			(246	)		2		3,780
Commercial and industrial		577		(6	)		—			13		584		561		11			(1	)		13		584
Municipal		40		4			—			—		44		43		1			—			—		44
Consumer		56		(10	)		(7	)		10		49		105		(56	)		(18	)		18		49
Unallocated		574		71						—		645		425		220								645
Totals	$	4,894	$	314		$	(129	)	$	23	$	5,102	$	4,683	$	651		$	(265	)	$	33	$	5,102

Composition of loans receivable and allowance for loan losses

		Collectively evaluated				Individually evaluated				Total portfolio
(in thousands)		Loans		Allowance		Loans		Allowance		Loans		Allowance
June 30, 2014
Residential 1-4 family	$	233,203	$	922	$	6,055	$	598	$	239,258	$	1,520
Residential 5+ multifamily		3,828		18		1,038		—		4,866		18
Construction of residential 1-4 family		2,272		12		—		—		2,272		12
Home equity credit		33,905		360		533		64		34,438		424
Residential real estate		273,208		1,312		7,626		662		280,834		1,974
Commercial		90,727		1,018		4,796		449		95,523		1,467
Construction of commercial		14,219		155		133		—		14,352		155
Commercial real estate		104,946		1,173		4,929		449		109,875		1,622
Farm land		2,948		61		384		—		3,332		61
Vacant land		5,801		63		3,090		60		8,891		123
Real estate secured		386,903		2,609		16,029		1,171		402,932		3,780
Commercial and industrial		48,725		552		643		32		49,368		584
Municipal		4,421		44		—		—		4,421		44
Consumer		3,686		35		79		14		3,765		49
Unallocated allowance		—		645		—		—		—		645
Totals	$	443,735	$	3,885	$	16,751	$	1,217	$	460,486	$	5,102
		Collectively evaluated				Individually evaluated				Total portfolio
(in thousands)		Loans		Allowance		Loans		Allowance		Loans		Allowance
December 31, 2013
Residential 1-4 family	$	225,419	$	897	$	5,694	$	617	$	231,113	$	1,514
Residential 5+ multifamily		3,894		20		954		—		4,848		20
Construction of residential 1-4 family		1,876		11		—		—		1,876		11
Home equity credit		33,689		363		450		30		34,139		393
Residential real estate		264,878		1,291		7,098		647		271,976		1,938
Commercial		87,059		977		4,794		282		91,853		1,259
Construction of commercial		10,948		126		—		—		10,948		126
Commercial real estate		98,007		1,103		4,794		282		102,801		1,385
Farm land		3,018		61		384		—		3,402		61
Vacant land		5,972		64		3,095		101		9,067		165
Real estate secured		371,875		2,519		15,371		1,030		387,246		3,549
Commercial and industrial		45,584		519		708		42		46,292		561
Municipal		4,252		43		—		—		4,252		43
Consumer		3,710		36		179		69		3,889		105
Unallocated allowance		—		—		—		—		—		425
Totals	$	425,421	$	3,117	$	16,258	$	1,141	$	441,679	$	4,683

Credit quality segments of loans receivable and allowance for loan losses

		Collectively evaluated				Individually evaluated				Total portfolio
(in thousands)		Loans		Allowance		Loans		Allowance		Loans		Allowance
June 30, 2014
Performing loans	$	435,405	$	2,963	$	57	$	14	$	435,462	$	2,977
Potential problem loans		8,330		277		14		—		8,344		277
Impaired loans		—		—		16,680		1,203		16,680		1,203
Unallocated allowance		—		645		—		—		—		645
Totals	$	443,735	$	3,885	$	16,751	$	1,217	$	460,486	$	5,102
December 31, 2013
Performing loans	$	416,734	$	2,835	$	157	$	69	$	416,891	$	2,904
Potential problem loans		8,687		282		429		19		9,116		301
Impaired loans		—		—		15,672		1,053		15,672		1,053
Unallocated allowance		—		425		—		—		—		425
Totals	$	425,421	$	3,542	$	16,258	$	1,141	$	441,679	$	4,683

Certain data with respect to loans individually evaluated for impairment

	Impaired loans with specific allowance										Impaired loans with no specific allowance
	Loan balance						Specific		Income		Loan balance						Income
(in thousands)	Book		Note		Average		allowance		recognized		Book		Note		Average		recognized
June 30, 2014
Residential	$	4,066	$	4,143	$	4,335	$	598	$	58	$	3,027	$	3,140	$	2,817	$	45
Home equity credit		179		184		80		64		—		354		365		448		2
Residential real estate		4,245		4,327		4,415		662		58		3,381		3,505		3,265		47
Commercial		3,652		3,834		3,060		449		62		1,144		1,335		1,626		25
Construction of commercial		—		—		—		—		—		133		136		116		4
Farm land		—		—		—		—		—		384		384		384		—
Vacant land		3,090		3,975		3,093		60		7		—		—		—		—
Real estate secured		10,987		12,136		10,568		1,171		127		5,042		5,360		5,391		76
Commercial and industrial		102		140		111		32		—		527		529		542		15
Consumer		—		—		—		—		—		22		22		22		—
Totals	$	11,089	$	12,276	$	10,679	$	1,203	$	127	$	5,591	$	5,911	$	5,955	$	91
December 31, 2013
Residential	$	4,409	$	4,516	$	3,995	$	598	$	99	$	2,073	$	2,522	$	2,285	$	54
Home equity credit		72		72		101		30		2		378		428		251		4
Residential real estate		4,481		4,588		4,096		628		101		2,451		2,950		2,536		58
Commercial		2,777		2,835		2,349		282		127		1,771		2,299		2,411		47
Construction of commercial		—		—		3		—		—		—		20		8		—
Farm land		—		—		—		—		—		384		384		118		—
Vacant land		3,095		3,889		1,853		101		—		—		100		1,430		—
Real estate secured		10,353		11,312		8,301		1,011		228		4,606		5,753		6,503		105
Commercial and industrial		119		154		233		42		1		573		975		595		36
Consumer		—		—		—		—		—		22		22		—		—
Totals	$	10,472	$	11,466	$	8,534	$	1,053	$	229	$	5,201	$	6,750	$	7,098	$	141