LOANS (Tables)

9 Months Ended

Sep. 30, 2012

LOANS

Schedule of composition of loans

The composition of loans is as follows (dollars in thousands):

	September 30,		December 31,		September 30,
	2012		2011		2011
Commercial real estate	$	224,061	$	199,201	$	195,079
Commercial, financial, and agricultural	84,073		92,269		84,285
One to four family residential real estate	86,643		77,332		78,759
Construction :
Consumer	6,803		5,774		7,741
Commerical	21,757		19,745		19,771
Consumer	10,621		6,925		6,268
Total loans	$	433,958	$	401,246	$	391,903

Schedule of the allowance for loan losses

An analysis of the allowance for loan losses for the three and nine months ended September 30, 2012, and 2011 is as follows (dollars in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Balance at beginning of period	$	5,083		$	6,155		$	5,251		$	6,613
Recoveries on loans previously charged off	13			22			231			43
Loans charged off	(60		)	(739		)	(1,091		)	(1,818		)
Provision	150			400			795			1,000
Balance at end of period	$	5,186		$	5,838		$	5,186		$	5,838

Schedule of breakdown of the allowance for loan losses and recorded balances in loans

A breakdown of the allowance for loan losses and recorded balances in loans at September 30, 2012 is as follows (dollars in thousands):

				Commercial,						One to four
	Commercial			financial and			Commercial			family residential			Consumer
	real estate			agricultural			construction			real estate			construction		Consumer			Unallocated			Total
Three Months Ended September 30, 2012
Allowance for loan loss reserve:
Beginning balance ALLR	$	2,784		$	888		$	218		$	1,083		$	—	$	—		$	110		$	5,083
Charge-offs	(36		)	—			—			(23		)	—		(1		)	—			(60		)
Recoveries	10			1			—			—			—		2			—			13
Provision	90			(114		)	(33		)	177			—		(1		)	31			150
Ending balance ALLR	$	2,848		$	775		$	185		$	1,237		$	—	$	—		$	141		$	5,186
Nine Months Ended September 30, 2012
Allowance for loan loss reserve:
Beginning balance ALLR	$	2,823		$	1,079		$	207		$	1,114		$	—	$	—		$	28		$	5,251
Charge-offs	(726		)	(24		)	(6		)	(319		)	—		(16		)	—			(1,091		)
Recoveries	27			188			—			5			—		11			—			231
Provision	724			(468		)	(16		)	437			—		5			113			795
Ending balance ALLR	$	2,848		$	775		$	185		$	1,237		$	—	$	—		$	141		$	5,186
At September 30,2012
Loans:
Ending balance	$	224,061		$	84,073		$	21,757		$	86,643		$	6,803	$	10,621		$	—		$	433,958
Ending balance ALLR	(2,848		)	(775		)	(185		)	(1,237		)	—		—			(141		)	(5,186		)
Net loans	$	221,213		$	83,298		$	21,572		$	85,406		$	6,803	$	10,621		$	(141	)	$	428,772
Ending balance ALLR:
Individually evaluated	$	1,198		$	145		$	11		$	277		$	—	$	—		$	—		$	1,631
Collectively evaluated	1,650			630			174			960			—		—			141			3,555
Total	$	2,848		$	775		$	185		$	1,237		$	—	$	—		$	141		$	5,186
Ending balance Loans:
Individually evaluated	$	22,571		$	5,997		$	858		$	1,248		$	—	$	10		$	—		$	30,684
Collectively evaluated	201,490			78,076			20,899			85,395			6,803		10,611			—			403,274
Total	$	224,061		$	84,073		$	21,757		$	86,643		$	6,803	$	10,621		$	—		$	433,958

A breakdown of the allowance for loan losses and recorded balances in loans at December 31, 2011 is as follows (dollars in thousands):

				Commercial,						One to four
	Commercial			financial and			Commercial			family residential			Consumer
	real estate			agricultural			construction			real estate			construction		Consumer			Unallocated			Total
Allowance for loan loss reserve:
Beginning balance ALLR	$	3,460		$	1,018		$	389		$	1,622		$	—	$	—		$	124		$	6,613
Charge-offs	(2,267		)	(579		)	(412		)	(490		)	—		(52		)	—			(3,800		)
Recoveries	32			21			75			1			—		9			—			138
Provision	1,598			619			155			(19		)	—		43			(96		)	2,300
Ending balance ALLR	$	2,823		$	1,079		$	207		$	1,114		$	—	$	—		$	28		$	5,251
Loans:
Ending balance	$	199,201		$	92,269		$	19,745		$	77,332		$	5,774	$	6,925		$	—		$	401,246
Ending balance ALLR	(2,823		)	(1,079		)	(207		)	(1,114		)	—		—			(28		)	(5,251		)
Net loans	$	196,378		$	91,190		$	19,538		$	76,218		$	5,774	$	6,925		$	(28	)	$	395,995
Ending balance ALLR:
Individually evaluated	$	926		$	160		$	—		$	114		$	—	$	—		$	—		$	1,200
Collectively evaluated	1,897			919			207			1,000			—		—			28			4,051
Total	$	2,823		$	1,079		$	207		$	1,114		$	—	$	—		$	28		$	5,251
Ending balance Loans:
Individually evaluated	$	13,628		$	1,707		$	—		$	1,930		$	—	$	—		$	—		$	17,265
Collectively evaluated	185,573			90,562			19,745			75,402			5,774		6,925			—			383,981
Total	$	199,201		$	92,269		$	19,745		$	77,332		$	5,774	$	6,925		$	—		$	401,246

A breakdown of the allowance for loan losses and recorded balances in loans at September 30, 2011 is as follows (dollars in thousands):

				Commercial,						One to four
	Commercial			financial and			Commercial			family residential			Consumer
	real estate			agricultural			construction			real estate			construction		Consumer			Unallocated			Total
Three Months Ended September 30, 2011
Allowance for loan loss reserve:
Beginning balance ALLR	$	2,952		$	1,154		$	263		$	1,786		$	—	$	—		$	—		$	6,155
Charge-offs	(539		)	(155		)	—			(11		)	—		(34		)	—			(739		)
Recoveries	7			12			—			—			—		3			—			22
Provision	1,039			(175		)	(63		)	(432		)	—		31			—			400
Ending balance ALLR	$	3,459		$	836		$	200		$	1,343		$	—	$	—		$	—		$	5,838
Nine Months Ended September 30, 2011
Allowance for loan loss reserve:
Beginning balance ALLR	$	3,460		$	1,018		$	389		$	1,622		$	—	$	—		$	124		$	6,613
Charge-offs	(883		)	(562		)	(62		)	(266		)	—		(45		)	—			(1,818		)
Recoveries	21			14			—			—			—		8			—			43
Provision	861			366			(127		)	(13		)	—		37			(124		)	1,000
Ending balance ALLR	$	3,459		$	836		$	200		$	1,343		$	—	$	—		$	—		$	5,838
At September 30, 2011
Loans:
Ending balance	$	195,079		$	84,285		$	19,771		$	78,759		$	7,741	$	6,268		$	—		$	391,903
Ending balance ALLR	(3,459		)	(836		)	(200		)	(1,343		)	—		—			—			(5,838		)
Net loans	$	191,620		$	83,449		$	19,571		$	77,416		$	7,741	$	6,268		$	—		$	386,065
Ending balance ALLR:
Individually evaluated	$	1,583		$	26		$	16		$	367		$	—	$	—		$	—		$	1,992
Collectively evaluated	1,876			810			184			976			—		—			—			3,846
Total	$	3,459		$	836		$	200		$	1,343		$	—	$	—		$	—		$	5,838
Ending balance Loans:
Individually evaluated	$	15,090		$	1,730		$	1,236		$	2,285		$	—	$	—		$	—		$	20,341
Collectively evaluated	179,989			82,555			18,535			76,474			7,741		6,268			—			371,562
Total	$	195,079		$	84,285		$	19,771		$	78,759		$	7,741	$	6,268		$	—		$	391,903

Schedule of breakdown of loans by risk category

Below is a breakdown of loans by risk category as of September 30, 2012 (dollars in thousands):

	(1)		(2)		(3)		(4)		(5)		(6)		(7)		Rating
	Excellent		Good		Average		Acceptable		Sp. Mention		Substandard		Doubtful		Unassigned		Total
Commercial real estate	$	3,372	$	19,939	$	72,647	$	105,736	$	16,784	$	5,374	$	209	$	—	$	224,061
Commercial, financial and agricultural	4,306		5,517		25,932		42,097		4,320		1,901		—		—		84,073
Commercial construction	—		988		5,039		9,995		761		1,092		—		3,882		21,757
One to four family residential real estate	—		1,979		3,586		4,703		—		709		—		75,666		86,643
Consumer construction	—		—		—		—		—		—		—		6,803		6,803
Consumer	—		362		71		233		—		3		—		9,952		10,621
Total loans	$	7,678	$	28,785	$	107,275	$	162,764	$	21,865	$	9,079	$	209	$	96,303	$	433,958

Below is a breakdown of loans by risk category as of December 31, 2011 (dollars in thousands):

	(1)		(2)		(3)		(4)		(5)		(6)		(7)		Rating
	Excellent		Good		Average		Acceptable		Sp. Mention		Substandard		Doubtful		Unassigned		Total
Commercial real estate	$	3,083	$	16,946	$	47,154	$	118,259	$	5,198	$	7,642	$	919	$	—	$	199,201
Commercial, financial and agricultural	4,416		7,875		17,738		60,498		201		1,541		—		—		92,269
Commercial construction	209		552		4,542		10,415		313		20		—		3,694		19,745
One-to-four family residential real estate	—		—		3,359		5,910		2,023		—		—		66,040		77,332
Consumer construction	—		—		—		—		—		—		—		5,774		5,774
Consumer	—		—		105		599		—		—		—		6,221		6,925
Total loans	$	7,708	$	25,373	$	72,898	$	195,681	$	7,735	$	9,203	$	919	$	81,729	$	401,246

Below is a breakdown of loans by risk category as of September 30, 2011 (dollars in thousands):

	(1)		(2)		(3)		(4)		(5)		(6)		(7)		Rating
	Excellent		Good		Average		Acceptable		Sp. Mention		Substandard		Doubtful		Unassigned			Total
Commercial real estate	$	3,555	$	16,988	$	46,123	$	113,406	$	5,032	$	7,971	$	2,239	$	(235	)	$	195,079
Commercial, financial and agricultural	2,927		9,242		18,403		51,559		206		1,556		—		392			84,285
Commercial construction	212		556		5,968		11,482		1,553		—		—		—			19,771
One to four family residential real estate	—		3,330		3,163		5,992		—		2,289		—		63,985			78,759
Consumer construction	—		—		—		—		—		20		—		7,721			7,741
Consumer	—		—		113		583		—		—		—		5,572			6,268
Total loans	$	6,694	$	30,116	$	73,770	$	183,022	$	6,791	$	11,836	$	2,239	$	77,435		$	391,903

Summary of impaired loans and their effect on interest income

The following is a summary of impaired loans and their effect on interest income (dollars in thousands):

											Three Months Ended				Nine Months Ended
					QTD		YTD				Interest Income		Interest Income		Interest Income		Interest Income
	Nonaccrual		Accrual		Average		Average		Related		Recognized		on		Recognized		on
	Basis		Basis		Investment		Investment		Valuation Reserve		During Impairment		Accrual Basis		During Impairment		Accrual Basis
September  30, 2012
With no valuation reserve:
Commercial real estate	$	530	$	—	$	533	$	1,135	$	—	$	—	$	9	$	—	$	32
Commercial, financial and agricultural	—		—		—		1,063		—		—		—		—		18
Commercial construction	676		—		676		676		—		—		5		—		9
One to four family residential real estate	156		—		384		818		—		—		4		—		28
Consumer construction	15		—		15		16		—		—		—		—		1
Consumer	—		—		—		—		—		—		—		—		—
With a valuation reserve:
Commercial real estate	$	3,161	$	—	$	3,177	$	3,663	$	937	$	17	$	42	$	54	$	136
Commercial, financial and agricultural	287		—		281		398		90		—		4		—		12
Commercial construction	—		—		—		—		—		—		—		—		—
One to four family residential real estate	462		—		267		463		188		—		8		—		10
Consumer construction	—		—		—		—		—		—		—		—		—
Consumer	3		—		1		3		3		—		—		—		—
Total:
Commercial real estate	$	3,691	$	—	$	3,710	$	4,798	$	937	$	17	$	51	$	54	$	168
Commercial, financial and agricultural	287		—		281		1,461		90		—		4		—		30
Commercial construction	676		—		676		676		—		—		5		—		9
One to four family residential real estate	618		—		651		1,281		188		—		12		—		38
Consumer construction	15		—		15		16		—		—		—		—		1
Consumer	3		—		1		3		3		—		—		—		—
Total	$	5,290	$	—	$	5,334	$	8,235	$	1,218	$	17	$	72	$	54	$	246

											Three Months Ended					Nine Months Ended
					QTD		YTD				Interest Income		Interest Income			Interest Income		Interest Income
	Nonaccrual		Accrual		Average		Average		Related		Recognized		on			Recognized		on
	Basis		Basis		Investment		Investment		Valuation Reserve		During Impairment		Accrual Basis			During Impairment		Accrual Basis
September  30, 2011
With no valuation reserve:
Commercial real estate	$	438	$	—	$	269	$	438	$	—	$	—	$	2		$	24	$	16
Commercial, financial and agricultural	—		—		—		—		—		—		(2		)	—		—
Commercial construction	—		—		—		—		—		—		—			—		11
One to four family residential real estate	109		—		111		79		—		—		1			—		3
Consumer construction	20		—		15		6		—		—		—			—		—
Consumer	—		—		—		—		—		—		—			—		—
With a valuation reserve:
Commercial real estate	$	3,195	$	2,531	$	3,313	$	4,856	$	1,414	$	—	$	100		$	43	$	187
Commercial, financial and agricultural	36		1,084		1,395		1,357		41		29		2			29		35
Commercial construction	—		—		—		229		—		—		—			—		—
One to four family residential real estate	2,156		104		3,461		3,103		342		1		(4		)	2		118
Consumer construction	—		—		—		5		—		—		—			—		—
Consumer	—		—		7		3		—		—		—			—		—
Total:
Commercial real estate	$	3,633	$	2,531	$	3,582	$	5,294	$	1,414	$	—	$	102		$	67	$	203
Commercial, financial and agricultural	36		1,084		1,395		1,357		41		29		—			29		35
Commercial construction	—		—		—		229		—		—		—			—		11
One to four family residential real estate	2,265		104		3,572		3,182		342		1		(3		)	2		121
Consumer construction	20		—		15		11		—		—		—			—		—
Consumer	—		—		7		3		—		—		—			—		—
Total	$	5,954	$	3,719	$	8,571	$	10,076	$	1,797	$	30	$	99		$	98	$	370

Summary of past due loans

A summary of past due loans at September 30, 2012, December 31, 2011 and September 30, 2011 is as follows (dollars in thousands):

	September  30,						December 31,						September  30,
	2012						2011						2011
	30-89 days		90+ days				30-89 days		90+ days				30-89 days		90+ days
	Past Due		Past Due/				Past Due		Past Due/				Past Due		Past Due/
	(accruing)		Nonaccrual		Total		(accruing)		Nonaccrual		Total		(accruing)		Nonaccrual		Total
Commercial real estate	$	427	$	3,691	$	4,118	$	15	$	2,362	$	2,377	$	338	$	3,633	$	3,971
Commercial, financial and agricultural	64		287		351		137		1,111		1,248		—		36		36
Commercial construction	47		676		723		—		—		—		30		—		30
One to four family residential real estate	582		618		1,200		188		1,997		2,185		124		2,265		2,389
Consumer construction	—		15		15		—		20		20		—		20		20
Consumer	99		3		102		14		—		14		6		—		6
Total past due loans	$	1,219	$	5,290	$	6,509	$	354	$	5,490	$	5,844	$	498	$	5,954	$	6,452

Schedule of roll-forward of nonaccrual activity

A roll-forward of nonaccrual activity for the three months ended September 30, 2012 (dollars in thousands):

	For the Three Months Ended September  30, 2012
				Commercial,					One to four
	Commercial			Financial and			Commercial		family residential			Consumer
NONACCRUAL	Real Estate			Agricultural			Construction		real estate			Construction		Consumer		Total
Beginning balance	$	3,749		$	278		$	676	$	657		$	15	$	—	$	5,375
Principal payments	(89		)	(1		)	—		(2		)	—		—		(92		)
Charge-offs	—			—			—		(14		)	—		—		(14		)
Advances	—			—			—		—			—		—		—
Class transfers	—			—			—		(329		)	—		—		(329		)
Transfers to OREO	—			—			—		—			—		—		—
Transfers to accruing	—			—			—		—			—		—		—
Transfers from accruing	—			7			—		304			—		3		314
Other	31			3			—		2			—		—		36
Ending balance	$	3,691		$	287		$	676	$	618		$	15	$	3	$	5,290

A roll-forward of nonaccrual activity for the three months ended September 30, 2011 (dollars in thousands):

	For the Three Months Ended September  30, 2011
				Commercial,					One to four
	Commercial			Financial and			Commercial		family residential			Consumer
NONACCRUAL	Real Estate			Agricultural			Construction		real estate			Construction			Consumer			Total
Beginning balance	$	3,116		$	615		$	—	$	3,881		$	—		$	27		$	7,639
Principal payments	(345		)	(185		)	—		(23		)	—			—			(553		)
Charge-offs	(240		)	(144		)	—		(293		)	—			—			(677		)
Advances	—			—			—		—			—			(27		)	(27		)
Class transfers	—			—			—		—			—			—			—
Transfers to OREO	(195		)	(262		)	—		(1,569		)	(1		)	—			(2,027		)
Transfers to accruing	—			—			—		—			—			—			—
Transfers from accruing	1,277			12			—		97			20			—			1,406
Other	20			—			—		172			1			—			193
Ending balance	$	3,633		$	36		$	—	$	2,265		$	20		$	—		$	5,954

A roll-forward of nonaccrual activity for the nine months ended September 30, 2012 (dollars in thousands):

	For the Nine Months Ended September  30, 2012
				Commercial,					One to four
	Commercial			Financial and			Commercial		family residential			Consumer
NONACCRUAL	Real Estate			Agricultural			Construction		real estate			Construction			Consumer		Total
Beginning balance	$	2,362		$	1,111		$	—	$	1,997		$	20		$	—	$	5,490
Principal payments	(1,101		)	(1,383		)	—		(1,054		)	—			—		(3,538		)
Charge-offs	(463		)	—			—		(307		)	(5		)	—		(775		)
Advances	—			—			—		—			—			—		—
Class transfers	—			—			—		—			—			—		—
Transfers to OREO	(465		)	—			—		(548		)	—			—		(1,013		)
Transfers to accruing	—			—			—		—			—			—		—
Transfers from accruing	3,288			566			676		524			—			3		5,057
Other	70			(7		)	—		6			—			—		69
Ending balance	$	3,691		$	287		$	676	$	618		$	15		$	3	$	5,290

A roll-forward of nonaccrual activity for the nine months ended September 30, 2011 (dollars in thousands):

	For the Nine Months Ended September  30, 2011
				Commercial,						One to four
	Commercial			Financial and			Commercial			family residential			Consumer
NONACCRUAL	Real Estate			Agricultural			Construction			real estate			Construction			Consumer			Total
Beginning balance	$	3,522		$	760		$	458		$	1,129		$	52		$	—		$	5,921
Principal payments	(1,283		)	(766		)	(14		)	(43		)	—			—			(2,106		)
Charge-offs	(566		)	(551		)	(62		)	(382		)	—			(27		)	(1,588		)
Advances	—			—			—			—			—			—			—
Class transfers	—			—			—			—			—			—			—
Transfers to OREO	(1,184		)	(609		)	(382		)	(1,901		)	(53		)	—			(4,129		)
Transfers to accruing	(892		)	—			—			—			—			—			(892		)
Transfers from accruing	4,001			856			—			3,273			20			27			8,177
Other	35			346			—			189			1			—			571
Ending balance	$	3,633		$	36		$	—		$	2,265		$	20		$	—		$	5,954

A roll-forward of nonaccrual activity during the year ended December 31, 2011 (dollars in thousands):

				Commercial,						One to four
	Commercial			Financial and			Commercial			family residential			Consumer
NONACCRUAL	Real Estate			Agricultural			Construction			real estate			Construction			Consumer			Total
Beginning balance	$	3,522		$	760		$	458		$	1,129		$	52		$	—		$	5,921
Principal payments	(1,458		)	(767		)	(14		)	(47		)	—			—			(2,286		)
Charge-offs	(1,950		)	(557		)	(62		)	(601		)	—			(27		)	(3,197		)
Advances	—			—			—			—			—			—			—
Class transfers	—			—			—			—			—			—			—
Transfers to OREO	(1,203		)	(262		)	(382		)	(1,948		)	(53		)	—			(3,848		)
Transfers to accruing	(892		)	—			—			—			—			—			(892		)
Transfers from accruing	4,301			1,938			—			3,273			20			27			9,559
Other	42			(1		)	—			191			1			—			233
Ending balance	$	2,362		$	1,111		$	—		$	1,997		$	20		$	—		$	5,490

Summary of troubled debt restructurings

A summary of troubled debt restructurings is as follows (dollars in thousands):

	September  30,			December 31,			September  30,
	2012			2011			2011
	Number of	Recorded		Number of	Recorded		Number of	Recorded
	Modifications	Investment		Modifications	Investment		Modifications	Investment
Commercial real estate	4	$	5,799	1	$	2,400	2	$	2,531
Commercial, financial and agricultural	1	1,221		—	—		1	1,084
Commercial construction	3	858		—	—		—	—
One to four family residential real estate	1	102		1	103		1	104
Consumer construction	—	—		—	—		—	—
Consumer	—	—		—	—		—	—
Total troubled debt restructurings	9	$	7,980	2	$	2,503	4	$	3,719

Schedule of roll-forward of troubled debt restructurings

A roll-forward of troubled debt restructuring during the three months ended September 30, 2012 (dollars in thousands):

				Commercial,				One to four		Consumer and
	Commercial			Financial and		Commercial		family residential		Consumer
ACCRUING	Real Estate			Agricultural		Construction		real estate		Construction		Total
Beginning balance	$	3,645		$	1,221	$	858	$	102	$	—	$	5,826
Principal payments	(14		)	—		—		—		—		(14		)
Charge-offs	—			—		—		—		—		—
Advances	—			—		—		—		—		—
New restructured	—			—		—		—		—		—
Transferred out of TDR	—			—		—		—		—		—
Transfers to nonaccrual	—			—		—		—		—		—
Ending Balance	$	3,631		$	1,221	$	858	$	102	$	—	$	5,812
NONACCRUAL
Beginning balance	$	2,188		$	—	$	—	$	—	$	—	$	2,188
Principal payments	(47		)	—		—		—		—		(47		)
Charge-offs	—			—		—		—		—		—
Advances	27			—		—		—		—		27
New restructured	—			—		—		—		—		—
Transfers to foreclosed properties	—			—		—		—		—		—
Transfers from accruing	—			—		—		—		—		—
Ending Balance	$	2,168		$	—	$	—	$	—	$	—	$	2,168
TOTALS
Beginning balance	$	5,833		$	1,221	$	858	$	102	$	—	8,014
Principal payments	(61		)	—		—		—		—		(61		)
Charge-offs	—			—		—		—		—		—
Advances	27			—		—		—		—		27
New restructured	—			—		—		—		—		—
Transfers out of TDRs	—			—		—		—		—		—
Tansfers to nonaccrual	—			—		—		—		—		—
Transfers to foreclosed properties	—			—		—		—		—		—
Transfers from accruing	—			—		—		—		—		—
Ending Balance	$	5,799		$	1,221	$	858	$	102	$	—	$	7,980

A roll-forward of troubled debt restructuring during the three months ended September 30, 2011 (dollars in thousands):

				Commercial,					One to four		Consumer and
	Commercial			Financial and			Commercial		family residential		Consumer
ACCRUING	Real Estate			Agricultural			Construction		real estate		Construction		Total
Beginning balance	$	600		$	1,098		$	—	$	104	$	—	$	1,802
Principal payments	(1		)	(14		)	—		—		—		(15		)
Charge-offs	—			—			—		—		—		—
Advances	—			—			—		—		—		—
New restructured	2,401			—			—		—		—		2,401
Transferred out of TDRs	—			—			—		—		—		—
Transfers to nonaccrual	(469		)	—			—		—		—		(469		)
Ending Balance	$	2,531		$	1,084		$	—	$	104	$	—	$	3,719
NONACCRUAL
Beginning balance	$	—		$	—		$	—	$	—	$	—	$	—
Principal payments	—			—			—		—		—		—
Charge-offs	—			—			—		—		—		—
Advances	—			—			—		—		—		—
New restructured	—			—			—		—		—		—
Transfers to foreclosed properties	—			—			—		—		—		—
Transfers from accruing	—			—			—		—		—		—
Ending Balance	$	—		$	—		$	—	$	—	$	—	$	—
TOTALS
Beginning balance	$	600		$	1,098		$	—	$	104	$	—	$	1,802
Principal payments	(1		)	(14		)	—		—		—		(15		)
Charge-offs	—			—			—		—		—		—
Advances	—			—			—		—		—		—
New restructured	2,401			—			—		—		—		2,401
Transfers out of TDRs	—			—			—		—		—		—
Tansfers to nonaccrual	(469		)	—			—		—		—		(469		)
Transfers to foreclosed properties	—			—			—		—		—		—
Transfers from accruing	—			—			—		—		—		—
Ending Balance	$	2,531		$	1,084		$	—	$	104	$	—	$	3,719

A roll-forward of troubled debt restructuring during the nine months ended September 30, 2012 (dollars in thousands):

				Commercial,					One to four			Consumer and
	Commercial			Financial and		Commercial			family residential			Consumer
ACCRUING	Real Estate			Agricultural		Construction			real estate			Construction		Total
Beginning balance	$	2,400		$	—	$	—		$	103		$	—	$	2,503
Principal payments	(64		)	—		(2		)	(1		)	—		(67		)
Charge-offs	—			—		—			—			—		—
Advances	—			—		—			—			—		—
New restructured	3,695			1,221		860			—			—		5,776
Transferred out of TDRs	—			—		—			—			—		—
Transfers to nonaccrual	(2,400		)	—		—			—			—		(2,400		)
Ending Balance	$	3,631		$	1,221	$	858		$	102		$	—	$	5,812
NONACCRUAL
Beginning balance	$	—		$	—	$	—		$	—		$	—	$	—
Principal payments	(426		)	—		—			—			—		(426		)
Charge-offs	(772		)	—		—			—			—		(772		)
Advances	47			—		—			—			—		47
New restructured	919			—		—			—			—		919
Transfers to foreclosed properties	—			—		—			—			—		—
Transfers from accruing	2,400			—		—			—			—		2,400
Ending Balance	$	2,168		$	—	$	—		$	—		$	—	$	2,168
TOTALS
Beginning balance	$	2,400		$	—	$	—		$	103		$	—	$	2,503
Principal payments	(490		)	—		(2		)	(1		)	—		(493		)
Charge-offs	(772		)	—		—			—			—		(772		)
Advances	47			—		—			—			—		47
New restructured	4,614			1,221		860			—			—		6,695
Transfers out of TDR	—			—		—			—			—		—
Transfers to nonaccrual	(2,400		)	—		—			—			—		(2,400		)
Transfers to foreclosed properties	—			—		—			—			—		—
Transfer from accruing	2,400			—		—			—			—		2,400
Ending Balance	$	5,799		$	1,221	$	858		$	102		$	—	$	7,980

A roll-forward of troubled debt restructuring during the nine months ended September 30, 2011 (dollars in thousands):

				Commercial,					One to four			Consumer and
	Commercial			Financial and			Commercial		family residential			Consumer
ACCRUING	Real Estate			Agricultural			Construction		real estate			Construction		Total
Beginning balance	$	4,537		$	—		$	—	$	105		$	—	$	4,642
Principal payments	(6		)	(14		)	—		(1		)	—		(21		)
Charge-offs	—			—			—		—			—		—
Advances	—			—			—		—			—		—
New restructured	3,001			1,098			—		—			—		4,099
Transferred out of TDRs	(577		)	—			—		—			—		(577		)
Transfers to nonaccrual	(4,424		)	—			—		—			—		(4,424		)
Ending Balance	$	2,531		$	1,084		$	—	$	104		$	—	$	3,719
NONACCRUAL
Beginning balance	—			—			—		—			—		$	—
Principal payments	—			—			—		—			—		—
Charge-offs	—			—			—		—			—		—
Advances	—			—			—		—			—		—
New restructured	—			—			—		—			—		—
Transfers to foreclosed properties	—			—			—		—			—		—
Transfers from accruing	—			—			—		—			—		—
Ending Balance	$	—		$	—		$	—	$	—		$	—	$	—
TOTALS
Beginning balance	4,537			—			—		105			—		4,642
Principal payments	(6		)	(14		)	—		(1		)	—		(21		)
Charge-offs	—			—			—		—			—		—
Advances	—			—			—		—			—		—
New restructured	3,001			1,098			—		—			—		4,099
Transfers out of TDRs	(577		)	—			—		—			—		(577		)
Transfers to nonaccrual	(4,424		)	—			—		—			—		(4,424		)
Transfers to foreclosed properties	—			—			—		—			—		—
Transfers from accruing	—			—			—		—			—		—
Ending Balance	$	2,531		$	1,084		$	—	$	104		$	—	$	3,719

A roll-forward of troubled debt restructuring during the year ended December 31, 2011 (dollars in thousands):

				Commercial,				One to four			Consumer and
	Commercial			Financial and		Commercial		family residential			Consumer
ACCRUING	Real Estate			Agricultural		Construction		real estate			Construction		Total
Beginning balance	$	4,537		$	—	$	—	$	105		$	—	$	4,642
Principal payments	—			—		—		(2		)	—		(2		)
Charge-offs	—			—		—		—			—		—
Advances	—			—		—		—			—		—
New restructured	2,400			—		—		—			—		2,400
Transferred out of TDRs	(582		)	—		—		—			—		(582		)
Transfers to nonaccrual	(3,955		)	—		—		—			—		(3,955		)
Ending Balance	$	2,400		$	—	$	—	$	103		$	—	$	2,503
NONACCRUAL
Beginning balance	—			—		—		—			—		$	—
Principal payments	—			—		—		—			—		—
Charge-offs	—			—		—		—			—		—
Advances	—			—		—		—			—		—
New restructured	—			—		—		—			—		—
Transfers to foreclosed properties	—			—		—		—			—		—
Transfers from accruing	—			—		—		—			—		—
Ending Balance	$	—		$	—	$	—	$	—		$	—	$	—
TOTALS
Beginning balance	4,537			—		—		105			—		4,642
Principal payments	—			—		—		(2		)	—		(2		)
Charge-offs	—			—		—		—			—		—
Advances	—			—		—		—			—		—
New restructured	2,400			—		—		—			—		2,400
Transfers out of TDRs	(582		)	—		—		—			—		(582		)
Transfers to nonaccrual	(3,955		)	—		—		—			—		(3,955		)
Transfers to foreclosed properties	—			—		—		—			—		—
Transfers from accruing	—			—		—		—			—		—
Ending Balance	$	2,400		$	—	$	—	$	103		$	—	$	2,503

Schedule of activity in insider loans granted to the entity's executive officers and directors, including their families and firms

The Bank, in the ordinary course of business, grants loans to the Corporation’s executive officers and directors, including their families and firms in which they are principal owners. Activity in such loans is summarized below (dollars in thousands):

	September 30,			December 31,			September 30,
	2012			2011			2011
Loans outstanding, beginning of period	$	8,827		$	9,532		$	9,532
New loans	3,401			933			933
Net activity on revolving lines of credit	17			69			27
Principal payments	(1,490		)	(1,707		)	(1,630		)
Loans outstanding, end of period	$	10,755		$	8,827		$	8,862