Credit Quality Assessment (Tables)

9 Months Ended

Sep. 30, 2012

Receivables [Abstract]

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

Summary information on the allowance for credit loss activity for the nine months ended September 30, 2012 and September 30, 2011 is provided in the following table:

	Unaudited
	Nine months ended
	September 30,
(in thousands)	2012			2011
Balance at beginning of year	$	3,433		$	3,523
Provision for credit losses		650			740
Loan and lease charge-offs		(1,480	)		(553	)
Loan and lease recoveries		130			306
Balance at period end	$	2,733		$	4,016

Allowance for Loan and Lease Losses [Table Text Block]

The following tables provides information on the activity in the allowance for credit losses by the respective loan portfolio segment for the three months and nine months ended September 30, 2012 and September 30, 2011, and for the year ended December 31, 2011:

	September 30, 2012 - Unaudited
									Commercial		Commercial			Commercial
	Construction		Residential			Residential			owner		non-owner			loans			Consumer
(in thousands)	and land		first lien			junior lien			occupied		occupied			and leases			loans			Total
Allowance for credit losses:
Nine months ended September 30, 2012
Beginning balance	$	174	$	111		$	64		$	611	$	197		$	2,233		$	43		$	3,433
Charge-offs		-		(23	)		(44	)		-		(268	)		(1,130	)		(15	)		(1,480	)
Recoveries		-		-			-			-		63			65			2			130
Provision for credit losses		18		17			2			40		357			215			1			650
Ending balance	$	192	$	105		$	22		$	651	$	349		$	1,383		$	31		$	2,733
Three months ended September 30, 2012
Beginning balance	$	99	$	65		$	42		$	553	$	532		$	1,744		$	41		$	3,076
Charge-offs		-		-			-			-		(268	)		(463	)		-			(731	)
Recoveries		-		-			-			-		63			16			1			80
Provision for credit losses		93		40			(20	)		98		22			86			(11	)		308
Ending balance	$	192	$	105		$	22		$	651	$	349		$	1,383		$	31		$	2,733
Ending balance:
individually evaluated for impairment		103		73			-			-		-			257			-			433
collectively evaluated for impairment		89		32			22			651		349			1,126			31			2,300
Loans:
Ending balance		35,889		23,074			8,162			58,793		86,116			85,409			1,371			298,814
Ending balance:
individually evaluated for impairment		432		471			-			-		3,146			1,978			-			6,027
collectively evaluated for impairment		35,457		22,603			8,162			58,793		82,970			83,431			1,371			292,787

	September 30, 2011 - Unaudited
							Commercial			Commercial		Commercial
	Construction		Residential		Residential		owner			non-owner		loans			Consumer
(in thousands)	and land		first lien		junior lien		occupied			occupied		and leases			loans			Total
Allowance for credit losses:
Nine months ended September 30, 2011
Beginning balance	$	143	$	16	$	20	$	892		$	124	$	2,294		$	34		$	3,523
Charge-offs		-		-		-		-			-		(531	)		(21	)		(552	)
Recoveries		-		-		-		-			-		304			1			305
Provision for credit losses		26		1		-		229			12		443			29			740
Ending balance	$	169	$	17	$	20	$	1,121		$	136	$	2,510		$	43		$	4,016
Three months ended September 30, 2011
Beginning balance	$	160	$	17	$	20	$	1,146		$	123	$	2,366		$	36		$	3,868
Charge-offs		-		-		-		-			-		(394	)		(16	)		(410	)
Recoveries		-		-		-		-			-		-			-			-
Provision for credit losses		9		-		-		(25	)		13		538			23			558
Ending balance	$	169	$	17	$	20	$	1,121		$	136	$	2,510		$	43		$	4,016
Ending balance:
individually evaluated for impairment		-		-		-		1,033			-		112			-			1,145
collectively evaluated for impairment		169		17		20		88			136		2,398			43			2,871
Loans:
Ending balance		36,809		23,365		10,089		46,513			70,816		82,405			1,212			271,209
Ending balance:
individually evaluated for impairment		-		475		-		2,122			-		1,243			-			3,840
collectively evaluated for impairment		36,809		22,890		10,089		44,391			70,816		81,162			1,212			267,369

	December 31, 2011
							Commercial			Commercial		Commercial
	Construction		Residential		Residential		owner			non-owner		loans			Consumer
(in thousands)	and land		first lien		junior lien		occupied			occupied		and leases			loans			Total
Allowance for credit losses:
Beginning balance	$	143	$	16	$	20	$	892		$	124	$	2,294		$	34		$	3,523
Charge-offs		-		-		-		(1,033	)		-		(562	)		(21	)		(1,616	)
Recoveries		-		-		-		-			-		361			1			362
Provision for credit losses		31		95		44		752			73		140			29			1,164
Ending balance	$	174	$	111	$	64	$	611		$	197	$	2,233		$	43		$	3,433
Ending balance:
individually evaluated for impairment		-		68		44		-			-		1,161			-			1,273
collectively evaluated for impairment		174		43		20		611			197		1,072			43			2,160
Loans:
Ending balance		39,268		22,087		9,242		46,588			76,880		81,243			1,223			276,531
Ending balance:
individually evaluated for impairment		-		611		44		1,988			2,783		3,498			9			8,933
collectively evaluated for impairment		39,268		21,476		9,198		44,600			74,097		77,745			1,214			267,598

Financing Receivable Credit Quality Indicators [Table Text Block]

Credit risk profile by portfolio segment based upon internally assigned risk assignments are presented below:

	September 30, 2012 - Unaudited
							Commercial		Commercial		Commercial
	Construction		Residential		Residential		owner		non-owner		loans		Consumer
(in thousands)	and land		first lien		junior lien		occupied		occupied		and leases		loans		Total
Credit quality indicators:
Not classified	$	35,457	$	22,841	$	8,162	$	58,793	$	85,726	$	83,867	$	1,371	$	296,217
Special mention		-		-		-		-		-		-		-		-
Substandard		432		233		-		-		390		1,542		-		2,597
Doubtful		-		-		-		-		-		-		-		-
Total	$	35,889	$	23,074	$	8,162	$	58,793	$	86,116	$	85,409	$	1,371	$	298,814

	December 31, 2011
							Commercial		Commercial		Commercial
	Construction		Residential		Residential		owner		non-owner		loans		Consumer
(in thousands)	and land		first lien		junior lien		occupied		occupied		and leases		loans		Total
Credit quality indicators:
Not classified	$	39,268	$	21,476	$	9,198	$	44,600	$	76,880	$	78,014	$	1,214	$	270,650
Special mention		-		-		-		-		-		-		-		-
Substandard		-		611		44		1,988		-		3,229		9		5,881
Doubtful		-		-		-		-		-		-		-		-
Total	$	39,268	$	22,087	$	9,242	$	46,588	$	76,880	$	81,243	$	1,223	$	276,531

Past Due Financing Receivables [Table Text Block]

An aged analysis of past due loans are as follows:

	September 30, 2012 - Unaudited
							Commercial		Commercial		Commercial
	Construction		Residential		Residential		owner		non-owner		loans		Consumer
(in thousands)	and land		first lien		junior lien		occupied		occupied		and leases		loans		Total
Analysis of past due loans:
Accruing loans current	$	35,457	$	22,395	$	8,121	$	58,793	$	85,726	$	83,757	$	1,371	$	295,620
Accruing loans past due:
31-59 days past due		-		238		41		-		-		110		-		389
60-89 days past due		-		208				-		-		-		-		208
Greater than 90 days past due		-		-		-		-		-		-		-		-
Total past due	$	-	$	446	$	41	$	-	$	-	$	110	$	-	$	597
Non-accrual loans		432		233		-		-		390		1,542		-		2,597
Total loans	$	35,889	$	23,074	$	8,162	$	58,793	$	86,116	$	85,409	$	1,371	$	298,814

	December 31, 2011
							Commercial		Commercial		Commercial
	Construction		Residential		Residential		owner		non-owner		loans		Consumer
(in thousands)	and land		first lien		junior lien		occupied		occupied		and leases		loans		Total
Analysis of past due loans:
Accruing loans current	$	39,268	$	21,719	$	9,198	$	44,600	$	75,790	$	77,951	$	1,214	$	269,740
Accruing loans past due:
31-59 days past due		-		-		-		-		-		-		-		-
60-89 days past due		-		-		-		-		1,000		63		-		1,063
Greater than 90 days past due		-		-		-		-		90		-		-		90
Total past due	$	-	$	-	$	-	$	-	$	1,090	$	63	$	-	$	1,153
Non-accrual loans		-		368		44		1,988		-		3,229		9		5,638
Total loans	$	39,268	$	22,087	$	9,242	$	46,588	$	76,880	$	81,243	$	1,223	$	276,531

Impaired Financing Receivables [Table Text Block]

The impaired loans for the nine months ended September 30, 2012 and the year ended December 31, 2011 are as follows:

	September 30, 2012 - Unaudited
							Commercial		Commercial		Commercial
	Construction		Residential		Residential		owner		non-owner		loans		Consumer
(in thousands)	& land		first lien		junior lien		occupied		occupied		and leases		loans		Total
Impaired loans:
Recorded investment	$	432	$	471	$	-	$	-	$	3,146	$	1,978	$	-	$	6,027
With an allowance recorded		432		233		-		-		-		584		-		1,249
With no related allowance recorded		-		238		-		-		3,146		1,394		-		4,778
Related allowance		103		73		-		-		-		257		-		433
Un-paid principal		432		471		-		-		3,081		2,134		-		6,118
Nine months ended September 30, 2012
Average balance of impaired loans		441		472		-		-		3,517		2,418		-		6,848
Interest income recognized		18		7		-		-		155		88		-		268
Three months ended September 30, 2012
Average balance of impaired loans		432		472		-		-		3,510		2,265		-		6,679
Interest income recognized	$	18	$	-	$	-	$	-	$	48	$	69	$	-	$	135

	December 31, 2011
							Commercial		Commercial		Commercial
	Construction		Residential		Residential		owner		non-owner		loans		Consumer
(in thousands)	& land		first lien		junior lien		occupied		occupied		and leases		loans		Total
Impaired loans:
Recorded investment	$	-	$	611	$	44	$	1,988	$	2,783	$	3,498	$	9	$	8,933
With an allowance recorded		-		368		44		-		-		1,884		-		2,296
With no related allowance recorded		-		243		-		1,988		2,783		1,614		9		6,637
Related allowance		-		68		44		-		-		1,161		-		1,273
Un-paid principal		-		611		44		3,021		2,783		3,533		9		10,001
Average balance of impaired loans		-		609		44		3,044		2,778		3,593		9		10,078
Interest income recognized	$	-	$	23	$	2	$	52	$	114	$	157	$	-	$	348

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The trouble debt restructured loans (“TDRs”) for September 30, 2012 and December 31, 2011 are as follows:

	September 30, 2012 - Unaudited
	Number		Non-Accrual		Number		Accrual		Total
(dollars in thousands)	of Loans		Status		of Loans		Status		TDR's
Residential real estate - first lien		-	$	-		-	$	-	$	-
Commercial real estate non-owner occupied		-		-		-		-		-
Commercial loans		3		637		-		-		637
		3	$	637		-	$	-	$	637

	December 31, 2011
	Number		Non-Accrual		Number		Accrual		Total
(dollars in thousands)	of Loans		Status		of Loans		Status		TDR's
Residential real estate - first lien		-	$	-		1	$	240	$	240
Commercial real estate non-owner occupied		-		-		-		-		-
Commercial loans		5		751		-		-		751
		5	$	751		1	$	240	$	991

Summary of Troubled Debt Restructuring Outstanding and Performance [Table Text Block]

A summary of TDRs modifications outstanding and performance under modified terms are as follows:

	September 30, 2012 - Unaudited
	Not Performing		Performing
	to Modified		to Modified		Total
(in thousands)	Terms		Terms		TDR's
Residential real estate - first lien
Interest only payments	$	-	$	-	$	-
Rate modification		-		-		-
Forberance		-		-		-
Extension or other modification		-		-		-
Total residential real estate		-		-		-
Commercial loans
Interest only payments	$	-	$	-	$	-
Rate modification		-		-		-
Forberance		-		-		-
Extension or other modification		637		-		637
Total commercial		637		-		637
Total TDR's	$	637	$	-	$	637

	December 31, 2011
	Not Performing		Performing
	to Modified		to Modified		Total
(in thousands)	Terms		Terms		TDR's
Residential real estate - first lien
Interest only payments	$	-	$	-	$	-
Rate modification		-		-		-
Forberance		-		-		-
Extension or other modification		-		240		240
Total residential real estate		-		240		240
Commercial loans
Interest only payments	$	-	$	-	$	-
Rate modification		-		-		-
Forberance		353		-		353
Extension or other modification		398		-		398
Total commercial		751		-		751
Total TDR's	$	751	$	240	$	991