Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2014

Loans and Allowance for Loan Losses [Abstract]

Allowance for Loan Losses and Recorded Investment in Loans Receivable

				As of and for the Six Months Ended June 30, 2014
(In thousands)	Commercial and Industrial			Commercial Real Estate			Construction and Land		Consumer			Student			Residential Real Estate		Home Equity Line of Credit			Unallocated		Total
Allowance for Loan Losses
Beginning balance at 12/31/2013	$	964		$	2,320		$	412	$	18		$	196		$	1,261	$	1,314		$	182	$	6,667
Charge-offs		(9	)		-			-		(4	)		(53	)		-		-			-		(66	)
Recoveries		82			-			65		2			-			2		1			-		152
Provision		(280	)		(488	)		528		(2	)		(8	)		311		(235	)		174		-
Ending balance at 6/30/2014	$	757		$	1,832		$	1,005	$	14		$	135		$	1,574	$	1,080		$	356	$	6,753

Ending balances individually evaluated for impairment	$	342		$	545		$	905	$	-		$	-		$	521	$	-		$	-	$	2,313

Ending balances collectively evaluated for impairment	$	415		$	1,287		$	100	$	14		$	135		$	1,053	$	1,080		$	356	$	4,440

Loans Receivable
Individually evaluated for impairment	$	512		$	4,728		$	3,954	$	-		$	-		$	2,445	$	70				$	11,709
Collectively evaluated for impairment		24,679			164,150			28,659		3,281			24,628			141,744		44,455					431,596
Ending balance at 6/30/2014	$	25,191		$	168,878		$	32,613	$	3,281		$	24,628		$	144,189	$	44,525				$	443,305

				As of and for the Year Ended December 31, 2013
(In thousands)	Commercial and Industrial			Commercial Real Estate			Construction and Land		Consumer			Student		Residential Real Estate			Home Equity Line of Credit			Unallocated		Total
Allowance for Loan Losses
Beginning balance at 12/31/2012	$	932		$	1,685		$	402	$	40		$	-	$	1,691		$	1,336		$	172	$	6,258
Charge-offs		(257	)		(686	)		-		(104	)		-		(284	)		(174	)		-		(1,505	)
Recoveries		76			-			-		25			-		2			11			-		114
Provision		213			1,321			10		57			196		(148	)		141			10		1,800
Ending balance at 12/31/2013	$	964		$	2,320		$	412	$	18		$	196	$	1,261		$	1,314		$	182	$	6,667

Ending balances individually evaluated for impairment	$	211		$	505		$	321	$	-		$	-	$	276		$	-		$	-	$	1,313

Ending balances collectively evaluated for impairment	$	753		$	1,815		$	91	$	18		$	196	$	985		$	1,314		$	182	$	5,354

Loans Receivable
Individually evaluated for impairment	$	477		$	4,177		$	3,980	$	-		$	-	$	2,100		$	70				$	10,804
Collectively evaluated for impairment		24,269			172,143			28,827		3,810			27,962		140,156			43,406					440,573
Ending balance at 12/31/2013	$	24,746		$	176,320		$	32,807	$	3,810		$	27,962	$	142,256		$	43,476				$	451,377

Credit Quality Indicators

The Company's allowance for loan losses has three basic components: the specific allowance, the general allowance, and the unallocated components. The specific allowance is used to individually allocate an allowance for larger balance, non-homogeneous loans identified as impaired. The general allowance is used for estimating the loss on pools of smaller-balance, homogeneous loans; including 1-4 family mortgage loans, installment loans and other consumer loans. Also, the general allowance is used for the remaining pool of larger balance, non-homogeneous loans which were not identified as impaired. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodolgies for estimating specific and general losses in the portfolio.

Credit Quality Indicators

	As of June 30, 2014
(In thousands)	Commercial and Industrial		Commercial Real Estate		Construction and Land		Consumer		Student		Residential Real Estate		Home Equity Line of Credit		Total
Grade:
Pass	$	22,554	$	154,722	$	28,659	$	3,274	$	24,628	$	131,968	$	39,250	$	405,055
Special mention		598		3,947		-		-		-		2,449		2,612		9,606
Substandard		2,039		10,209		3,954		7		-		9,713		2,663		28,585
Doubtful	$	-		-		-		-		-		59		-		59
Loss		-		-		-		-		-		-		-		-
Total	$	25,191	$	168,878	$	32,613	$	3,281	$	24,628	$	144,189	$	44,525	$	443,305

			As of December 31, 2013
(In thousands)	Commercial and Industrial		Commercial Real Estate		Construction and Land		Consumer		Student		Residential Real Estate		Home Equity Line of Credit		Total
Grade:
Pass	$	21,524	$	153,940	$	28,827	$	3,803	$	27,962	$	129,677	$	39,654	$	405,387
Special mention		551		9,888		-		-		-		2,282		1,051		13,772
Substandard		2,498		12,492		3,980		7		-		9,623		2,771		31,371
Doubtful		173		-		-		-		-		674		-		847
Loss		-		-		-		-		-		-		-		-
Total	$	24,746	$	176,320	$	32,807	$	3,810	$	27,962	$	142,256	$	43,476	$	451,377

Age Analysis of Past Due Loans Receivable

	As of June 30, 2014
(In thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Financing Receivables		Carrying Amount > 90 Days and Accruing		Nonaccruals
Commercial and industrial	$	220	$	28	$	-	$	248	$	24,943	$	25,191	$	-	$	361
Commercial real estate		1,779		-		-		1,779		167,099		168,878		-		-
Construction and land		904		3		-		907		31,706		32,613		-		-
Consumer		6		5		1		12		3,269		3,281		1		-
Student (U.S. Government guaranteed)		1,434		1,018		2,949		5,401		19,227		24,628		2,949		-
Residential real estate		954		1,412		744		3,110		141,079		144,189		-		1,849
Home equity line of credit		67		66		-		133		44,392		44,525		-		-
Total	$	5,364	$	2,532	$	3,694	$	11,590	$	431,715	$	443,305	$	2,950	$	2,210

	As of December 31, 2013
(In thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Financing Receivables		Carrying Amount > 90 Days and Accruing		Nonaccruals
Commercial and industrial	$	409	$	69	$	161	$	639	$	24,107	$	24,746	$	-	$	379
Commercial real estate		426		-		442		868		175,452		176,320		-		442
Construction and land		5		-		338		343		32,464		32,807		338		-
Consumer		18		-		-		18		3,792		3,810		-		-
Student (U.S. Government guaranteed)		2,851		761		7,917		11,529		16,433		27,962		7,917		-
Residential real estate		-		738		780		1,518		140,738		142,256		168		1,363
Home equity line of credit		497		-		-		497		42,979		43,476		-		-
Total	$	4,206	$	1,568	$	9,638	$	15,412	$	435,965	$	451,377	$	8,423	$	2,184

The Company began purchasing rehabilitated student loans under the Federal Rehabilitated Student Loan Program during the quarter ended December 31, 2012. The repayment of both principal and accrued interest are 98% guaranteed by the U.S. Department of Education. At June 30, 2014, $2.9 million of the student loans were 90 days or more past due and still accruing.

Impaired Loans Receivable

	June 30, 2014
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no specific allowance recorded:
Commercial and industrial	$	34	$	56	$	-	$	40	$	-
Commercial real estate		1,900		1,900		-		1,900		48
Construction and land		1,184		1,184		-		1,188		30
Student (U.S. Govenment guaranteed)		-		-		-		-		-
Residential real estate		1,322		1,444		-		1,338		15
Home equity line of credit		70		70		-		70		1
Consumer		-		-		-		-		-

With an allowance recorded:
Commercial and industrial	$	478	$	513	$	342	$	478	$	5
Commercial real estate		2,828		2,828		545		2,828		80
Construction and land		2,770		2,770		905		2,778		63
Student (U.S. Government guaranteed)		-		-		-		-		-
Residential real estate		1,123		1,123		521		1,148		15
Home equity line of credit		-		-		-		-		-
Consumer		-		-		-		-		-

Total:
Commercial and industrial	$	512	$	569	$	342	$	518	$	5
Commercial real estate		4,728		4,728		545		4,728		128
Construction and land		3,954		3,954		905		3,966		93
Student (U.S. Government guaranteed)		-		-		-		-		-
Residential real estate		2,445		2,567		521		2,486		30
Home equity line of credit		70		70		-		70		1
Consumer		-		-		-		-		-
Total	$	11,709	$	11,888	$	2,313	$	11,768	$	257

	December 31, 2013
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no specific allowance recorded:
Commercial and industrial	$	156	$	176	$	-	$	175	$	4
Commercial real estate		2,182		2,182		-		2,197		88
Construction and land		1,984		1,984		-		2,011		99
Student (U.S. Government guaranteed)		-		-		-		-		-
Residential real estate		1,188		1,286		-		1,236		17
Home equity line of credit		70		70		-		69		-
Consumer		-		-		-		-		-

With an allowance recorded:
Commercial and industrial	$	321	$	365	$	211	$	340	$	2
Commercial real estate		1,995		2,009		505		2,002		92
Construction and land		1,996		1,996		321		1,998		88
Student (U.S. Government guaranteed)		-		-		-		-		-
Residential real estate		912		912		276		940		16
Home equity line of credit		-		-		-		-		-
Consumer		-		-		-		-		-

Total:
Commercial and industrial	$	477	$	541	$	211	$	515	$	6
Commercial real estate		4,177		4,191		505		4,199		180
Construction and land		3,980		3,980		321		4,009		187
Student (U.S. Government guaranteed)		-		-		-		-		-
Residential real estate		2,100		2,198		276		2,176		33
Home equity line of credit		70		70		-		69		-
Consumer		-		-		-		-		-
Total	$	10,804	$	10,980	$	1,313	$	10,968	$	406

Troubled Debt Restructurings

	Three Months Ended June 30, 2014						Three Months Ended June 30, 2013
			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
	Number		Outstanding		Outstanding		Number		Outstanding		Outstanding
	of		Recorded		Recorded		of		Recorded		Recorded
(Dollars in thousands)	Contracts		Investment		Investment		Contracts		Investment		Investment
Troubled Debt Restructurings
Commercial and industrial		2	$	198	$	198		-	$	-	$	-
Commercial real estate		-		-		-		-		-		-
Construction and land		-		-		-		1		808		808
Consumer		-		-		-		-		-		-
Student		-		-		-		-		-		-
Residential real estate		-		-		-		1		300		300
Home equity line of credit		-		-		-		-		-		-

Troubled Debt Restructurings That Subsequently Defaulted												-
Commercial and industrial		-		-		-		-		-		-
Commercial real estate		-		-		-		-		-		-
Construction and land		-		-		-		-		-		-
Consumer		-		-		-		-		-		-
Student		-		-		-		-		-		-
Residential real estate		-		-		-		-		-		-
Home equity line of credit		-		-		-		-		-		-

	Six Months Ended June 30, 2014						Six Months Ended June 30, 2013
			Pre-Modification		Post-Modification				Pre-Modification		Post-Modification
	Number		Outstanding		Outstanding		Number		Outstanding		Outstanding
	of		Recorded		Recorded		of		Recorded		Recorded
(Dollars in thousands)	Contracts		Investment		Investment		Contracts		Investment		Investment
Troubled Debt Restructurings
Commercial and industrial		2	$	198	$	198		-	$	-	$	-
Commercial real estate		-		-		-		2		2,010		2,010
Construction and land		-		-		-		1		808		808
Consumer		-		-		-		-		-		-
Student		-		-		-		-		-		-
Residential real estate		-		-		-		1		300		300
Home equity line of credit		-		-		-		-		-		-

Troubled Debt Restructurings That Subsequently Defaulted
Commercial and industrial		-		-		-		1		237		237
Commercial real estate		-		-		-		-		-		-
Construction and land		-		-		-		-		-		-
Consumer		-		-		-		-		-		-
Student		-		-		-		-		-		-
Residential real estate		-		-		-		-		-		-
Home equity line of credit		-		-		-		-		-		-

Non-performing Assets, Restructured Loans Still Accruing, and Loans Contractually Past Due

(Dollars in thousands)	June 30, 2014			December 31, 2013			June 30, 2013
Non-accrual loans	$	2,210		$	2,184		$	6,698
Other real estate owned		1,406			4,085			1,406
Non-performing corporate bond investments, at fair value		1,222			1,300			96
Total non-performing assets		4,838			7,569			8,200
Restructured loans still accruing		8,343			8,613			8,484
Student loans (U.S. Government guaranteed) past due 90 days or more and still accruing		2,949			7,917			3,220
Loans past due 90 or more days and still accruing		1			506			355
Total non-performing and other risk assets	$	16,131		$	24,605		$	20,259

Allowance for loan losses to total loans		1.52	%		1.48	%		1.54	%
Non-accrual loans to total loans		0.50	%		0.48	%		1.51	%
Allowance for loan losses to non-accrual loans		305.57	%		305.27	%		102.06	%
Total non-accrual loans and restructured loans still accruing to total loans		2.38	%		2.39	%		3.43	%
Allowance for loan losses to non-accrual loans and restructured loans still accruing		63.99	%		61.75	%		45.03	%
Total non-performing assets to total assets		0.81	%		1.23	%		1.39	%

Restructured loans on non-accrual status are included with non-accrual loans and not with restructured loans in the above table.