Loans (Tables)

12 Months Ended

Dec. 31, 2012

Loans [Abstract]

Composition of loan portfolio, by loan class

The composition of the Company's loan portfolio, by loan class, at December 31, is as follows:

	2012			2011
Commercial	$	88,810		$	91,914
Commercial Real Estate		188,426			175,793
Agriculture		52,747			52,064
Residential Mortgage		51,266			51,586
Residential Construction		7,586			7,492
Consumer		59,393			64,150
		448,228			442,999
Allowance for loan losses		(8,554	)		(10,408	)
Net deferred origination fees and costs		775			198
Loans, net	$	440,449		$	432,789

Non-accrual loans by loan class

Non-accrual and Past Due Loans

The Company's non-accrual loans by loan class, at December 31, are as follows:

	2012		2011
Commercial	$	2,853	$	2,905
Commercial Real Estate		1,879		3,071
Agriculture		—		992
Residential Mortgage		2,095		1,334
Residential Construction		—		48
Consumer		441		360
	$	7,268	$	8,710

Age analysis of past due loans, segregated by loan class

An aging analysis of past due loans, segregated by loan class, as of December 31, 2012 and December 31, 2011 is as follows:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Total Loans
December 31, 2012
Commercial	$	2,255	$	—	$	170	$	2,425	$	86,385	$	88,810
Commercial Real Estate		1,272		—		566		1,838		186,588		188,426
Agriculture		—		—		—		—		52,747		52,747
Residential Mortgage		570		103		335		1,008		50,258		51,266
Residential Construction		53		—		—		53		7,533		7,586
Consumer		8		747		126		881		58,512		59,393
Total	$	4,158	$	850	$	1,197	$	6,205	$	442,023	$	448,228
December 31, 2011
Commercial	$	1,051	$	166	$	113	$	1,330	$	90,584	$	91,914
Commercial Real Estate		—		2,746		446		3,192		172,601		175,793
Agriculture		—		—		991		991		51,073		52,064
Residential Mortgage		792		420		426		1,638		49,948		51,586
Residential Construction		273		—		48		321		7,171		7,492
Consumer		20		212		225		457		63,693		64,150
Total	$	2,136	$	3,544	$	2,249	$	7,929	$	435,070	$	442,999

Impaired loans, segregated by loan class

Impaired loans, segregated by loan class, as of December 31, 2012 and December 31, 2011 were as follows:

	Unpaid Contractual Principal Balance		Recorded Investment with no Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance
December 31, 2012
Commercial	$	3,628	$	2,769	$	519	$	3,288	$	95
Commercial Real Estate		3,629		1,872		1,170		3,042		26
Agriculture		—		—		—		—		—
Residential Mortgage		5,831		1,860		2,963		4,823		417
Residential Construction		1,148		—		1,097		1,097		433
Consumer		1,416		502		629		1,131		101
Total	$	15,652	$	7,003	$	6,378	$	13,381	$	1,072
December 31, 2011
Commercial	$	4,694	$	2,919	$	569	$	3,488	$	101
Commercial Real Estate		4,856		3,071		1,198		4,269		22
Agriculture		3,847		3,598		—		3,598		—
Residential Mortgage		5,336		1,875		3,194		5,069		731
Residential Construction		1,147		48		1,099		1,147		668
Consumer		985		309		346		655		126
Total	$	20,865	$	11,820	$	6,406	$	18,226	$	1,648

Interest income on impaired loans recognized using cash basis method of accounting

Interest income on impaired loans recognized using a cash-basis method of accounting during the years ended December 31, 2012, 2011, and 2010 was as follows:

($ in thousands)	December 31, 2012				December 31, 2011				December 31, 2010
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial	$	3,639	$	44	$	3,366	$	107	$	2,507	$	158
Commercial Real Estate		4,438		113		7,750		505		8,518		212
Agriculture		737		35		1,963		27		2,834		19
Residential Mortgage		4,312		107		5,593		186		5,752		213
Residential Construction		1,166		52		1,492		67		2,599		47
Consumer		1,003		38		492		9		308		2
Total	$	15,295	$	389	$	20,656	$	901	$	22,518	$	651

Loans modified as troubled debt restructurings

Loans modified as troubled debt restructurings during the year ended December 31, 2012 and December 31, 2011 were as follows:

($ in thousands)	Year Ended December 31, 2012
	Number of Contracts		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Commercial		5	$	470	$	470
Consumer		7		633		633
Total		12	$	1,103	$	1,103

($ in thousands)	Year Ended December 31, 2011
	Number of Contracts		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Commercial		3	$	445	$	445
Residential Mortgage		1		404		404
Residential Construction		2		221		162
Consumer		1		295		295
Total		7	$	1,365	$	1,306

Risk ratings by loan class

The following table presents the risk ratings by loan class as of December 31, 2012 and December 31, 2011.

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2012
Commercial	$	78,078	$	4,393	$	6,339	$	—	$	—	$	88,810
Commercial Real Estate		170,676		9,049		8,701		—		—		188,426
Agriculture		49,613		172		2,962		—		—		52,747
Residential Mortgage		45,962		604		4,700		—		—		51,266
Residential Construction		5,512		1,212		862		—		—		7,586
Consumer		51,444		4,822		3,054		73		—		59,393
Total	$	401,285	$	20,252	$	26,618	$	73	$	—	$	448,228
December 31, 2011
Commercial	$	71,229	$	8,444	$	11,804	$	437	$	—	$	91,914
Commercial Real Estate		148,317		16,492		10,984		—		—		175,793
Agriculture		48,330		—		3,734		—		—		52,064
Residential Mortgage		42,845		1,830		6,911		—		—		51,586
Residential Construction		5,140		927		1,425		—		—		7,492
Consumer		58,239		2,824		3,087		—		—		64,150
Total	$	374,100	$	30,517	$	37,945	$	437	$	—	$	442,999

Allowance for loan losses

Allowance for Loan Losses

The following table details activity in the allowance for loan losses by loan category for the years ended December 31, 2012 and December 31, 2011.

	Commercial			Commercial Real Estate			Agriculture			Residential Mortgage			Residential Construction			Consumer			Unallocated		Total
Balance as of December 31, 2011	$	3,598		$	1,747		$	1,934		$	1,135		$	1,198		$	796		$	—	$	10,408
Provision for loan losses		2,493			351			(907	)		877			(648	)		1,075			35		3,276
Charge-offs		(3,498	)		(375	)		(116	)		(864	)		(167	)		(875	)		—		(5,895	)
Recoveries		306			—			4			—			341			114			—		765
Net charge-offs		(3,192	)		(375	)		(112	)		(864	)		174			(761	)		—		(5,130	)
Ending Balance		2,899			1,723			915			1,148			724			1,110			35		8,554
Period-end amount allocated to:
Loans individually evaluated for impairment		95			26			—			417			433			101			—		1,072
Loans collectively evaluated for impairment		2,804			1,697			915			731			291			1,009			35		7,482
Balance as of December 31, 2012	$	2,899		$	1,723		$	915		$	1,148		$	724		$	1,110		$	35	$	8,554

	Commercial			Commercial Real Estate			Agriculture			Residential Mortgage			Residential Construction			Consumer			Unallocated			Total
Balance as of December 31, 2010	$	3,761		$	1,957		$	2,141		$	830		$	1,719		$	556		$	75		$	11,039
Provision for loan losses		2,033			1,502			511			566			(395	)		996			(75	)		5,138
Charge-offs		(2,381	)		(2,000	)		(860	)		(272	)		(197	)		(932	)		—			(6,642	)
Recoveries		185			288			142			11			71			176			—			873
Net charge-offs		(2,196	)		(1,712	)		(718	)		(261	)		(126	)		(756	)		—			(5,769	)
Ending Balance		3,598			1,747			1,934			1,135			1,198			796			—			10,408
Period-end amount allocated to:
Loans individually evaluated for impairment		101			22			—			731			668			126			—			1,648
Loans collectively evaluated for impairment		3,497			1,725			1,934			404			530			670			—			8,760
Balance as of December 31, 2011	$	3,598		$	1,747		$	1,934		$	1,135		$	1,198		$	796		$	—		$	10,408

	Commercial			Commercial Real Estate			Agriculture			Residential Mortgage			Residential Construction			Consumer			Unallocated			Total
Balance as of December 31, 2009	$	4,036		$	2,706		$	1,681		$	735		$	1,611		$	506		$	641		$	11,916
Provision for loan losses		1,115			741			1,118			788			932			786			(566	)		4,914
Charge-offs		(1,930	)		(1,491	)		(736	)		(715	)		(830	)		(914	)		—			(6,616	)
Recoveries		540			1			78			22			6			178			—			825
Net charge-offs		(1,390	)		(1,490	)		(658	)		(693	)		(824	)		(736	)		—			(5,791	)
Ending Balance		3,761			1,957			2,141			830			1,719			556			75			11,039
Period-end amount allocated to:
Loans individually evaluated for impairment		89			22			41			543			575			12			—			1,282
Loans collectively evaluated for impairment		3,672			1,935			2,100			287			1,144			544			75			9,757
Balance as of December 31, 2010	$	3,761		$	1,957		$	2,141		$	830		$	1,719		$	556		$	75		$	11,039

The Company's investment in loans as of December 31, 2012, 2011, and 2010 related to each balance in the allowance for loan losses by loan category and disaggregated on the basis of the Company's impairment methodology was as follows:

($ in thousands)	Commercial		Commercial Real Estate		Agriculture		Residential Mortgage		Residential Construction		Consumer		Total
December 31, 2012
Loans individually evaluated for impairment	$	3,288	$	3,042	$	—	$	4,823	$	1,097	$	1,131	$	13,381
Loans collectively evaluated for impairment		85,522		185,384		52,747		46,443		6,489		58,262		434,847
Ending Balance	$	88,810	$	188,426	$	52,747	$	51,266	$	7,586	$	59,393	$	448,228
December 31, 2011
Loans individually evaluated for impairment	$	3,488	$	4,269	$	3,598	$	5,069	$	1,147	$	655	$	18,226
Loans collectively evaluated for impairment		88,426		171,524		48,466		46,517		6,345		63,495		424,773
Ending Balance	$	91,914	$	175,793	$	52,064	$	51,586	$	7,492	$	64,150	$	442,999
December 31, 2010
Loans individually evaluated for impairment	$	2,994	$	7,088	$	2,135	$	6,033	$	1,621	$	294	$	20,165
Loans collectively evaluated for impairment		79,821		179,317		50,905		46,314		8,625		68,080		433,062
Ending Balance	$	82,815	$	186,405	$	53,040	$	52,347	$	10,246	$	68,374	$	453,227