Allowance For Loan Losses

6 Months Ended

Jun. 30, 2011

Allowance For Loan Losses

Allowance For Loan Losses

5. Allowance for Loan Losses

     The following table details activity in the Allowance for Loan Losses ("Allowance") for the six month period ending June 30, 2011:

									Home equity
				Real estate					lines and other
Six months ended June 30, 2011	Commercial			construction		Real estate term			consumer			Unallocated			Total
						(In Thousands)
Balance, beginning of period	$	6,374		$	1,035	$	4,270		$	741		$	1,986		$	14,406
Charge-Offs		(564	)		—		(90	)		(65	)		—			(719	)
Recoveries		699			13		53			23			—			788
Provision		194			584		737			220			(636	)		1,099
Balance, end of period	$	6,703		$	1,632	$	4,970		$	919		$	1,350		$	15,574
Balance, end of period: Individually evaluated for impairment	$	513		$	183	$	—		$	—		$	—		$	696
Balance, end of period: Collectively evaluated for impairment	$	6,190		$	1,449	$	4,970		$	919		$	1,350		$	14,878

     The following is a detail of the recorded investment in the loan portfolio, segregated by amounts evaluated individually or collectively in the Allowance at June 30, 2011:

							Home equity
			Real estate				lines and other
	Commercial		construction		Real estate term		consumer		Total
					(In Thousands)
Balance, end of period	$	232,765	$	47,639	$	314,093	$	42,458	$	636,955
Balance, end of period: Individually evaluated for impairment	$	4,843	$	2,949	$	4,688	$	209	$	12,689
Balance, end of period: Collectively evaluated for impairment	$	227,922	$	44,690	$	309,405	$	42,249	$	624,266

     The following represents the balance of the Allowance as June 30, 2011 segregated by segment and class:

									Home equity
					Real estate		Real estate		lines and other
	Total		Commercial		Construction		term		consumer		Unallocated
					(In Thousands)
Individually evaluated for impairment:
Risk Code 6 - Substandard	$	240	$	57	$	183	$	—	$	—	$	—
Risk Code 7 - Doubtful	$	456		456		—		—		—		—
Collectively evaluated for impairment:
Risk Code 3 - Satisfactory		9,512		3,809		1,041		4,094		568		—
Risk Code 4 - Watch		513		143		68		13		289		—
Risk Code 5 - Special Mention		2,271		2,180		—		31		60		—
Risk Code 6 - Substandard		1,232		58		340		832		2		—
Risk Code 7 - Doubtful		—		—		—		—		—		—
Unallocated		1,350		—		—		—		—		1,350
	$	15,574	$	6,703	$	1,632	$	4,970	$	919	$	1,350

     At June 30, 2011, the Allowance was $15.6 million, and the Company's ratio of nonperforming loans compared to portfolio loans was 1.85%. The Company's ratio of Allowance compared to portfolio loans at June 30, 2011 was 2.46%.