8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)

3 Months Ended

Mar. 31, 2013

Allowance For Loans and Lease Losses [Abstract]

Concentration Risk, Credit Risk, Loan Products

March 31, 2013	Credit Risk Profile by Internally Assigned Grade
(dollars in thousands)			Real Estate
	Commercial		Commercial		Multi-family		Construction		Residential
Grade:
Pass	$	23,187	$	134,145	$	8,188	$	2,262	$	14,675
Watch		1,666		13,953		1,175		3,068		2,366
Special mention		578		14,324		436		602		1,152
Substandard		1,650		14,500		512		—		695
Doubtful		246		—		—		—		—
Total	$	27,327	$	176,922	$	10,311	$	5,932	$	18,888

December 31, 2012	Credit Risk Profile by Internally Assigned Grade
(dollars in thousands)			Real Estate
		Commercial		Commercial		Multi-family		Construction		Residential
Grade:
Pass	$	25,670	$	134,969	$	7,018	$	3,049	$	13,283
Watch		1,994		14,613		1,181		3,262		2,518
Special mention		653		16,041		441		607		1,163
Substandard		1,804		14,503		515		—		737
Doubtful		690		—		—		—		—
Total	$	30,811	$	180,126	$	9,155	$	6,918	$	17,701

Concentration Risk, Other Risk

	Credit Risk Profile by Internally Assigned Grade  Other Credit Exposure
	Leases		Agriculture		Consumer		Total
Grade:
Pass	$	1,332	$	2,928	$	6,340	$	193,057
Watch		—		—		598		22,826
Special mention		—		399		194		17,685
Substandard		1		—		456		17,814
Doubtful		—		—		—		246
Total	$	1,333	$	3,327	$	7,588	$	251,628

	Credit Risk Profile by Internally Assigned Grade Other Credit Exposure
	Leases		Agriculture		Consumer		Total
Grade:
Pass	$	1,506	$	2,938	$	7,696	$	196,129
Watch		—		—		251		23,819
Special mention		—		402		153		19,460
Substandard		3		—		469		18,031
Doubtful		—		—		—		690
Total	$	1,509	$	3,340	$	8,569	$	258,129

Schedule of allowance for loan and lease losses by portfolio segment and by impairment methodology

March 31, 2013
(dollars in thousands)				Real Estate										Other
	Commercial			Commercial		Multi-Family		Construction			Residential			Leases		Agriculture		Consumer			Unallocated		Total
Allowance for Loan and Lease Losses
Beginning balance, January 1, 2013	$	1,351		$	2,526	$	238	$	594		$	477		$	3	$	87	$	262		$	243	$	5,781
Provision for loan losses		(84	)		140		18		(164	)		62			—		4		(8	)		132		100
Loans charged-off		(10	)		—		—		—			(38	)		—		—		(5	)				(53	)
Recoveries		74			1		—		—			—			—		—		—					75
Ending balance, March 31, 2013	$	1,331		$	2,667	$	256	$	430		$	501		$	3	$	91	$	249		$	375	$	5,903
Ending balance:
Individually evaluated for impairment	$	542		$	871	$	125	$	—		$	165		$	—	$	—	$	30		$	—	$	1,733
Ending balance:
Collectively evaluated for impairment	$	789		$	1,796	$	131	$	430		$	336		$	3	$	91	$	219		$	375	$	4,170
Loans
Ending balance	$	27,327		$	176,922	$	10,311	$	5,932		$	18,888		$	1,333	$	3,327	$	7,588		$	—	$	251,628
Ending balance:
Individually evaluated for impairment	$	2,390		$	17,531	$	1,673	$	259		$	2,382		$	—	$	—	$	242		$	—	$	24,477
Ending balance:
Collectively evaluated for impairment	$	24,937		$	159,391	$	8,638	$	5,673		$	16,506		$	1,333	$	3,327	$	7,346		$	—	$	227,151

December 31, 2012
(dollars in thousands)			Real Estate								Other
	Commercial		Commercial		Multi-Family		Construction		Residential		Leases		Agriculture		Consumer		Unallocated		Total
Ending balance:
Individually evaluated for impairment	$	480	$	786	$	122	$	—	$	179	$	—	$	—	$	28	$	—	$	1,595
Ending balance:
Collectively evaluated for impairment	$	871	$	1,740	$	116	$	594	$	298	$	3	$	87	$	234	$	243	$	4,186
Loans
Ending balance	$	30,811	$	180,126	$	9,155	$	6,918	$	17,701	$	1,509	$	3,340	$	8,569	$	—	$	258,129
Ending balance:
Individually evaluated for impairment	$	2,828	$	19,105	$	1,681	$	263	$	2,429	$	—	$	—	$	247	$	—	$	26,553
Ending balance:
Collectively evaluated for impairment	$	27,983	$	161,021	$	7,474	$	6,655	$	15,272	$	1,509	$	3,340	$	8,322	$	—	$	231,576

March 31, 2012
(dollars in thousands)				Real Estate												Other
	Commercial			Commercial			Multi-Family			Construction			Residential			Leases			Agriculture			Consumer			Unallocated			Total
Allowance for Loan and Lease Losses
Beginning balance, January 1, 2012	$	1,536		$	3,156		$	198		$	582		$	609		$	79		$	167		$	348		$	366		$	7,041
Provision for loan losses		(543	)		370			102			(111	)		217			(64	)		289			435			(115	)		580
Loans charged-off		(48	)		(611	)		(8	)		(4	)		(113	)		(8	)		(202	)		(410	)					(1,404	)
Recoveries		—			44			4			—			—			—			—			—						48
Ending balance, March 31, 2012	$	945		$	2,959		$	296		$	467		$	713		$	7		$	254		$	373		$	251		$	6,265

Scheule of analysis of the loan and lease portfolio

March 31, 2013													Past Due
(dollars in thousands)					Past Due								Greater Than
	30-59 Days		60-89 Days		Greater Than		Total Past						90 Days and
	Past Due		Past Due		90 Days		Due		Current		Total Loans		Accruing		Nonaccrual
Commercial:
Commercial	$	7	$	—	$	1,771	$	1,778	$	25,549	$	27,327		—	$	1,822
Real estate:
Commercial		2,115		—		633		2,748		174,174		176,922		—		2,600
Multi-family		—		—		—		—		10,311		10,311		—		—
Construction		—		—		—		—		5,932		5,932		—		—
Residential		571		—		172		743		18,145		18,888		—		172
Other:
Leases		—		—		1		1		1,332		1,333		—		1
Agriculture		—		—		—		—		3,327		3,327		—		—
Consumer		225		45		67		337		7,251		7,588		—		216
Total	$	2,918	$	45	$	2,644	$	5,607	$	246,021	$	251,628	$	—	$	4,811

December 31, 2012													Past Due
(dollars in thousands)					Past Due								Greater Than
	30-59 Days		60-89 Days		Greater Than		Total Past						90 Days and
	Past Due		Past Due		90 Days		Due		Current		Total Loans		Accruing		Nonaccrual
Commercial:
Commercial	$	804	$	—	$	1,497	$	2,301	$	28,510	$	30,811		—	$	2,352
Real estate:
Commercial		—		703		700		1,403		178,723		180,126		—		2,687
Multi-family		—		—		—		—		9,155		9,155		—		—
Construction		—		—		—		—		6,918		6,918		—		—
Residential		—		—		210		210		17,491		17,701		—		210
Other:
Leases		—		—		3		3		1,506		1,509		—		3
Agriculture		—		—		—		—		3,340		3,340		—		—
Consumer		—		60		114		174		8,395		8,569		—		222
Total	$	804	$	763	$	2,524	$	4,091	$	254,038	$	258,129	$	—	$	5,474