LOANS (Tables)

9 Months Ended

Sep. 30, 2012

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Following is a summary of loans at September 30, 2012 and December 31, 2011:

	2012						2011
				Percent						Percent
	Amount			of total			Amount			of total
	(In thousands)
Real estate loans:
1-to-4 family residential	$	47,076			12.19	%	$	52,182			12.49	%
Commercial real estate		189,598			49.11	%		192,047			45.98	%
Multi-family residential		21,296			5.52	%		23,377			5.60	%
Construction		51,443			13.32	%		70,846			16.96	%
Home equity lines of credit (“HELOC”)		34,988			9.06	%		38,702			9.27	%
Total real estate loans		344,401			89.20	%		377,154			90.30	%
Other loans:
Commercial and industrial		33,175			8.59	%		33,146			7.94	%
Loans to individuals & overdrafts		8,946			2.32	%		7,671			1.84	%
Total other loans		42,121			10.91	%		40,817			9.78	%
Gross loans		386,522						417,971
Less deferred loan origination fees, net		(426	)		(.11	)%		(347	)		(.08	)%
Total loans		386,096			100.00	%		417,624			100.00	%
Allowance for loan losses		(8,588	)					(10,034	)
Total loans, net	$	377,508					$	407,590

Past Due Financing Receivables [Table Text Block]

The following tables present an age analysis of past due loans, segregated by class of loans as of September 30, 2012 and December 31, 2011, respectively:

	September 30, 2012
	30+		Non-		Total
	Days		Accrual		Past				Total
	Past Due		Loans		Due		Current		Loans
	(In thousands)
Commercial and industrial	$	157	$	240	$	397	$	32,778	$	33,175
Construction		437		2,714		3,151		48,292		51,443
Multi-family residential		-		1,515		1,515		19,781		21,296
Commercial real estate		506		8,424		8,930		180,668		189,598
Loans to individuals & overdrafts		43		101		144		8,802		8,946
1-to-4 family residential		646		1,357		2,003		45,073		47,076
HELOC		30		637		667		34,321		34,988
Deferred loan (fees) cost, net										(426	)
	$	1,819	$	14,988	$	16,807	$	369,715	$	386,096

At September 30, 2012, there was one loan with a balance of $15,000 that was more than 90 days past due and still accruing interest.

	December 31, 2011
	30+		Non-		Total
	Days		Accrual		Past				Total
	Past Due		Loans		Due		Current		Loans
	(In thousands)
Commercial and industrial	$	48	$	171	$	219	$	32,927	$	33,146
Construction		568		4,072		4,640		66,206		70,846
Multi-family residential		1,540		-		1,540		21,837		23,377
Commercial real estate		1,013		10,425		11,438		180,609		192,047
Loans to individuals & overdrafts		10		176		186		7,485		7,671
1-to-4 family residential		735		1,875		2,610		49,572		52,182
HELOC		333		904		1,237		37,465		38,702
Deferred loan (fees) cost, net										(347	)
	$	4,247	$	17,623	$	21,870	$	396,101	$	417,624

Impaired Financing Receivables [Table Text Block]

The following tables present information on loans that were considered to be impaired as of September 30, 2012 and December 31, 2011:

							Three months ended				Nine months ended
							September 30, 2012				September 30, 2012
			Contractual						Interest Income				Interest Income
			Unpaid				Average		Recognized on		Average		Recognized on
	Recorded		Principal		Related		Recorded		Impaired		Recorded		Impaired
	Investment		Balance		Allowance		Investment		Loans		Investment		Loans
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	494	$	785	$	-	$	503	$	4	$	483	$	17
Construction		2,787		3,567		-		2,550		10		2,017		16
Commercial real estate		9,140		10,324		-		11,411		-		10,989		233
Loans to individuals & overdrafts		96		107		-		108		-		153		-
Multi-family residential		1,475		1,475		-		1,492		-		1,516		-
1 to 4 family residential		1,549		1,830		-		1,616		26		1,800		39
HELOC		699		813		-		1,018		-		954		5
Subtotal:		16,240		18,901		-		18,698		40		17,912		310
With an allowance recorded:
Commercial and industrial		209		209		124		108		10		84		10
Construction		274		274		60		733		-		1,631		5
Commercial real estate		4,133		4,616		532		2,492		40		3,165		53
Loans to individuals & overdrafts		28		28		5		22		2		29		2
Multi-family residential		40		40		9		41		-		21		-
1 to 4 family residential		2,195		2,216		328		1,503		63		1,129		87
HELOC		75		75		16		128		-		249		3
Subtotal:		6,954		7,458		1,074		5,027		115		6,308		160
Totals:
Commercial		18,552		21,290		725		19,330		64		19,906		334
Consumer		124		135		5		130		2		182		2
Residential		4,518		4,934		344		4,265		89		4,132		134
Grand Total:	$	23,194	$	26,359	$	1,074	$	23,725	$	155	$	24,220	$	470

							December 31, 2011
			Contractual				Year to Date
			Unpaid				Average		Interest Income
	Recorded		Principal		Related		Recorded		Recognized on
	Investment		Balance		Allowance		Investment		Impaired Loans
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	478	$	808	$	-	$	290	$	25
Construction		1,011		1,166		-		1,539		23
Commercial real estate		9,195		10,085		-		7,889		158
Loans to individuals & overdrafts		217		234		-		175		4
Multi-family residential		1,540		1,540		-		1,041		102
1-to-4 family residential		2,100		2,930		-		1,746		33
HELOC		730		823		-		406		-
Subtotal:		15,271		17,586		-		13,086		345
With an allowance recorded:
Commercial and industrial		-		-		-		272		-
Construction		3,365		4,085		674		1,269		4
Commercial real estate		5,039		5,929		498		4,043		71
Loans to individuals & overdrafts		16		16		15		102		1
Multi-family residential		-		-		-		-		-
1-to-4 family residential		736		774		170		1,999		35
HELOC		408		435		158		321		10
Subtotal:		9,564		11,239		1,515		8,006		121
Totals:
Commercial		20,628		23,613		1,172		16,343		383
Consumer		233		250		15		277		5
Residential		3,974		4,962		328		4,472		78
Grand Total:	$	24,835	$	28,825	$	1,515	$	21,092	$	466

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following table presents loans that were modified as troubled debt restructurings (“TDRs”) for which there was a payment default together with a breakdown of the types of concessions made by loan class during the previous twelve months:

	Twelve months ended September 30, 2012
			Pre-		Post-
			Modification		Modification
			Outstanding		Outstanding
	Number		Recorded		Recorded
	of loans		Investment		Investment
	(Dollars in thousands)
Below market interest rate:
Commercial and industrial		-	$	-	$	-
Construction		-		-		-
Commercial real estate		-		-		-
Loans to individuals & overdrafts		-		-		-
1-to-4 family residential		-		-		-
Multi-family residential		-		-		-
HELOC		-		-		-
Total		-		-		-
Extended payment terms:
Commercial and industrial		1		116		114
Construction		-		-		-
Commercial real estate		4		1,281		1,127
Loans to individuals & overdrafts		-		-		-
1-to-4 family residential		3		211		206
Multi-family residential		1		1,524		1,514
HELOC		-		-		-
Total		9		3,132		2,961
Forgiveness of principal:
Commercial and industrial		-		-		-
Construction		-		-		-
Commercial real estate		-		-		-
Loans to individuals & overdrafts		-		-		-
1- to-4 family residential		-		-		-
Multi-family residential		-		-		-
HELOC		-		-		-
Total		-		-		-
Total		9	$	3,132	$	2,961

The following table presents loans that were modified as TDRs with a breakdown of the types of concessions made by loan class during the three months and nine months ended September 30, 2012:

	Three months ended				Nine months ended
	September 30, 2012				September 30, 2012
	Number		Recorded		Number		Recorded
	of loans		investment		of loans		investment
	(Dollars in thousands)
Below market interest rate:
Commercial and industrial		-	$	-		-	$	-
Construction		-		-		-		-
Commercial real estate		-		-		-		-
Loans to individuals & overdrafts		-		-		-		-
1-to-4 family residential		-		-		-		-
Multi-family residential		-		-		-		-
HELOC		-		-		-		-
Total		-		-		-		-
Extended payment terms:
Commercial and industrial		-		-		1		114
Construction		-		-		2		286
Commercial real estate		-		-		4		1,128
Loans to individuals & overdrafts		-		-		-		-
1-to-4 family residential		2		96		2		96
Multi-family residential		1		1,514		1		1,514
HELOC		-		-		-		-
Total		3		1,610		10		3,138
Forgiveness of principal:
Commercial and industrial		-		-		-		-
Construction		-		-		-		-
Commercial real estate		-		-		-		-
Loans to individuals and overdrafts		-		-		-		-
1-to-4 family residential		-		-		-		-
Multi-family residential		-		-		-		-
HELOC		-		-		-		-
Total		-		-		-		-
Other:
Commercial and industrial		-		-		-		-
Construction		-		-		-		-
Commercial real estate		-		-		2		842
Loans to individuals and overdrafts		-		-		-		-
1-to-4 family residential		1		79		5		241
Multi-family residential		-		-		-		-
HELOC		-		-		-		-
Total		1		79		7		1,083
Total		4	$	1,689	$	17	$	4,221

Schedule Of Types Of Modifications [Table Text Block]

The following table presents the successes and failures of the types of modifications within the previous nine months as of September 30, 2012:

	Paid in full				Paying as restructured				Converted to non-accrual				Foreclosure/Default
	Number		Recorded		Number		Recorded		Number		Recorded		Number		Recorded
	of loans		Investment		of loans		Investment		of loans		Investment		of loans		Investment
	(In thousands)
Below market interest rate		-	$	-		-	$	-		-	$	-		-	$	-
Extended payment terms		-		-		2		286		7		2,577		1		275
Forgiveness of principal		-		-		-		-		-		-		-		-
Other		-		-		7		1,083		-		-		-		-
Total		-	$	-		9	$	1,369		7	$	2,577		1	$	275

Financing Receivable Credit Quality Indicators [Table Text Block]

The following tables present information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class as of September 30, 2012 and December 31, 2011, respectively:

September 30, 2012
Commercial
Credit
Exposure By	Commercial				Commercial
Internally	and				real		Multi-family
Assigned Grade	industrial		Construction		estate		residential
			(In thousands)
Superior	$	421	$	53	$	-	$	-
Very good		28		3		304		-
Good		6,377		703		14,481		1,670
Acceptable		10,987		5,024		61,276		7,126
Acceptable with care		13,500		38,292		76,193		9,959
Special mention		1,157		4,194		22,039		1,026
Substandard		705		3,174		15,305		1,515
Doubtful		-		-		-		-
Loss		-		-		-		-
	$	33,175	$	51,443	$	189,598	$	21,296

Consumer Credit
Exposure By
Internally	1-to-4 family
Assigned Grade	residential		HELOC
Pass	$	39,842	$	32,702
Special mention		3,175		1,213
Substandard		4,059		1,073
	$	47,076	$	34,988

Consumer Credit
Exposure Based	Loans to
On Payment	individuals &
Activity	overdrafts
Pass	$	8,390
Non –pass		556
	$	8,946

December 31, 2011
Commercial
Credit
Exposure By	Commercial				Commercial
Internally	and				real		Multi-family
Assigned Grade	industrial		Construction		estate		residential
			(In thousands)
Superior	$	722	$	59	$	-	$	-
Very good		154		6		429		-
Good		5,184		2,369		16,510		1,064
Acceptable		8,224		6,685		67,922		12,828
Acceptable with care		15,048		54,087		60,604		7,820
Special mention		3,062		2,671		27,177		125
Substandard		752		4,969		19,405		1,540
Doubtful		-		-		-		-
Loss		-		-		-		-
	$	33,146	$	70,846	$	192,047	$	23,377
Consumer Credit
Exposure By
Internally		1-to-4 family
Assigned Grade		residential		HELOC
Pass	$	43,647	$	35,127
Special mention		2,925		1,391
Substandard		5,610		2,184
	$	52,182	$	38,702
Consumer Credit
Exposure Based		Loans to
On Payment		individuals &
Activity		overdrafts
Pass	$	7,447
Non-pass		224
	$	7,671

Schedule Of Non Performing Asset [Table Text Block]

Non-performing assets at September 30, 2012 and December 31, 2011 consist of the following:

	September 30, 2012		December 31, 2011
	(In thousands)
Non-accrual loans	$	14,988	$	17,623
Accruing TDRs		3,625		2,013
Total non-performing loans		18,613		19,636
Foreclosed real estate		2,849		3,031
Total non-performing assets	$	21,462	$	22,667

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The following tables present a roll forward of the Company’s allowance for loan losses by loan class for the three month and nine month periods ended September 30, 2012 and September 30, 2011, respectively:

	Three months ended  September 30, 2012
	Commercial									1-to-4						Loans to			Multi-
	and						Commercial			family						individuals &			family
Allowance for loan losses	industrial			Construction			real estate			residential			HELOC			overdrafts			residential		Total
										(In thousands)
Balance, beginning of period 6/30/2012	$	386		$	482		$	5,228		$	1,314		$	897		$	80		$	123	$	8,510
Provision (recovery) for loan losses		31			664			(192	)		(166	)		(150	)		(6	)		8		189
Loans charged-off		(7	)		(187	)		(50	)		(63	)		(83	)		(8	)		-		(398	)
Recoveries		13			3			120			91			51			9			-		287
Balance, end of period 9/30/2012	$	423		$	962		$	5,106		$	1,176		$	715		$	75		$	131	$	8,588
Ending balance: individually evaluated for impairment	$	124		$	60		$	532		$	328		$	16		$	5		$	9	$	1,074
Ending balance: collectively evaluated for impairment	$	299		$	902		$	4,574		$	848		$	699		$	70		$	122	$	7,514
Loans:
Ending balance	$	33,175		$	51,443		$	189,598		$	47,076		$	34,988		$	8,946		$	21,296	$	386,522
Ending balance: individually evaluated for impairment	$	703		$	3,061		$	13,273		$	3,744		$	774		$	124		$	1,515	$	23,194
Ending balance: collectively evaluated for impairment	$	32,472		$	48,382		$	176,325		$	43,332		$	34,214		$	8,822		$	19,781	$	363,328

	Nine months ended September 30, 2012
	Commercial									1-to-4						Loans to			Multi-
	and						Commercial			family						individuals &			family
Allowance for loan losses	industrial			Construction			real estate			residential			HELOC			overdrafts			residential		Total
										(In thousands)
Balance, beginning of period 1/1/2012	$	719		$	1,540		$	4,771		$	1,661		$	1,122		$	94		$	127	$	10,034
Provision (recovery) for loan losses		(2,925	)		(247	)		1,165			(535	)		(16	)		(43	)		4		(2,597	)
Loans charged-off		(58	)		(645	)		(1,031	)		(162	)		(459	)		(62	)		-		(2,417	)
Recoveries		2,687			314			201			212			68			86			-		3,568
Balance, end of period 9/30/2012	$	423		$	962		$	5,106		$	1,176		$	715		$	75		$	131	$	8,588
Ending balance: individually evaluated for impairment	$	124		$	60		$	532		$	328		$	16		$	5		$	9	$	1,074
Ending balance: collectively evaluated for impairment	$	299		$	902		$	4,574		$	848		$	699		$	70		$	122	$	7,514
Loans:
Ending balance	$	33,175		$	51,443		$	189,598		$	47,076		$	34,988		$	8,946		$	21,296	$	386,522
Ending balance: individually evaluated for impairment	$	703		$	3,061		$	13,273		$	3,744		$	774		$	124		$	1,515	$	23,194
Ending balance: collectively evaluated for impairment	$	32,472		$	48,382		$	176,325		$	43,332		$	34,214		$	8,822		$	19,781	$	363,328

During the nine months ended September 30, 2012 the Company recorded recoveries on loans previously charged-off in the amount of $3.6 million. These recoveries were primarily a result of $2.7 million in recoveries on commercial and industrial loans during the nine month period These recoveries combined with the decrease in total loans outstanding at September 30, 2012 resulted in a $2.6 million recovery in the provision for loan losses.

	December 31, 2011
	Commercial						1-to-4				Loans to		Multi-
	and				Commercial		family				individuals &		family
Allowance for loan losses	industrial		Construction		real estate		residential		HELOC		overdrafts		residential		Total
							(In thousands)
Loans:
Ending Balance	$	33,146	$	70,846	$	192,047	$	52,182	$	38,702	$	7,671	$	23,377	$	417,971
Ending Balance: individually evaluated for impairment	$	478	$	4,376	$	14,234	$	2,836	$	1,138	$	233	$	1,540	$	24,835
Ending Balance: collectively evaluated for impairment	$	32,668	$	66,470	$	177,813	$	49,346	$	37,564	$	7,438	$	21,837	$	393,136

	Three Months Ended September 30, 2011
	Commercial									1-to-4						Loans to			Multi-
	and						Commercial			family						individuals &			family
Allowance for loan losses	industrial			Construction			real estate			residential			HELOC			overdrafts			residential			Total
										(In thousands)
Balance, beginning of period 6/30/2011	$	1,052		$	1,172		$	4,502		$	1,892		$	1,450		$	136		$	174		$	10,378
Provision (recovery) for loan losses		(134	)		4			1,068			742			481			55			(22	)		2,194
Other		(5	)		(10	)		(26	)		(13	)		-			(1	)		(4	)		(59	)
Loans charged-off		(186	)		(83	)		(783	)		(695	)		(497	)		(53	)		-			(2,297	)
Recoveries		19			9			34			33			9			18			-			122
Balance, end of period 9/30/2011	$	746		$	1,092		$	4,795		$	1,959		$	1,443		$	155		$	148		$	10,338
Ending balance: individually evaluated for impairment	$	50		$	116		$	440		$	604		$	-		$	70		$	-		$	1,280
Ending balance: collectively evaluated for impairment	$	696		$	976		$	4,355		$	1,355		$	1,443		$	85		$	148		$	9,058
Loans:
Ending balance	$	36,691		$	72,858		$	200,681		$	56,615		$	38,829		$	8,013		$	26,078		$	439,765
Ending balance: individually evaluated for impairment	$	381		$	4,140		$	14,557		$	4,558		$	-		$	251		$	1,543		$	25,430
Ending balance: collectively evaluated for impairment	$	36,310		$	68,718		$	186,124		$	52,057		$	38,829		$	7,762		$	24,535		$	414,335

	Nine months ended September 30, 2011
	Commercial									1-to-4						Loans to			Multi-
	and						Commercial			family						individuals &			family
Allowance for loan losses	industrial			Construction			real estate			residential			HELOC			overdrafts			residential			Total
										(In thousands)
Balance, beginning of period 1/1/2011	$	1,052		$	349		$	3,111		$	1,985		$	1,348		$	1,530		$	640		$	10,015
Provision (recovery) for loan losses		26			1,718			4,201			1,038			712			(1,307	)		(488	)		5,900
Other		(5	)		(10	)		(79	)		(13	)		-			(1	)		(4	)		(112	)
Loans charged-off		(4,066	)		(974	)		(2,482	)		(1,295	)		(631	)		(140	)		-			(9,588	)
Recoveries		3,739			9			44			244			14			73			-			4,123
Balance, end of period 9/30/2011	$	746		$	1,092		$	4,795		$	1,959		$	1,443		$	155		$	148		$	10,338
Ending balance: individually evaluated for impairment	$	50		$	116		$	440		$	604		$	-		$	70		$	-		$	1,280
Ending balance: collectively evaluated for impairment	$	696		$	976		$	4,355		$	1,355		$	1,443		$	85		$	148		$	9,058
Loans:
Ending balance	$	36,691		$	72,858		$	200,681		$	56,615		$	38,829		$	8,013		$	26,078		$	439,765
Ending balance: individually evaluated for impairment	$	381		$	4,140		$	14,557		$	4,558		$	-		$	251		$	1,543		$	25,430
Ending balance: collectively evaluated for impairment	$	36,310		$	68,718		$	186,124		$	52,057		$	38,829		$	7,762		$	24,535		$	414,335