10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT of 1934

For the Quarterly Period Ended June 30, 2013

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             .

Commission File No. 1-13652

First West Virginia Bancorp, Inc.

(Exact name of registrant as specified in its charter)

West Virginia	55-6051901
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1701 Warwood Avenue

Wheeling, West Virginia 26003

(Address of principal executive offices)

Registrant’s telephone number, including area code: (304) 277-1100

N/A

(Former name, former address and former fiscal year,

if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months ( or for such shorter period that the registrant was required to file such report(s), and (2) has been subject to such filing requirements for the past 90 days.     x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     x  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer , an accelerated filer or a non-accelerated filer or a smaller reporting company. See the definitions of “ large accelerated filer,”“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	¨	Accelerated Filer	¨
Non-accelerated filer	¨	Smaller Reporting Company	x

Indicate by check mark whether the Registrant is a shell company as defined by Rule 12b-2 of the Exchange Act.     ¨  Yes     x   No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.     ¨  Yes     ¨  No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practible date. The number of shares outstanding of the issuer’s common stock as of June 30, 2013: Common Stock, $5.00 Par Value, shares outstanding: 1,728,730 shares

FORM 10-Q INDEX

		Page No.
PART I - Financial Information
Item 1.	Financial Statements		3-28
	Consolidated Balance Sheets at June 30, 2013 (unaudited) and December 31, 2012		4
	Consolidated Statements of Income for the three and six months ended June 30, 2013 and June  30, 2012 (unaudited)		5
	Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June  30, 2013 and June 30, 2012 (unaudited)		6
	Consolidated Statements of Changes in Stockholders’ Equity for the six months ended June  30, 2013 and 2012 (unaudited)		7
	Consolidated Statements of Cash Flows for the six months ended June 30, 2013 and 2012 (unaudited)		8
	Notes to the Consolidated Financial Statements (unaudited)		9-28
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		29-41
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		42
Item 4.	Controls and Procedures		42
PART II - Other Information
Item 1.	Legal Proceedings		43
Item 1A.	Risk Factors		43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		43
Item 3.	Defaults upon Senior Securities		43
Item 4.	Mine Safety Disclosures		43
Item 5.	Other Information		43
Item 6.	Exhibits		43
SIGNATURES			44

2

FIRST WEST VIRGINIA BANCORP, INC.

PART I

FINANCIAL INFORMATION

3

Item 1. Financial Statements

First West Virginia Bancorp, Inc.

CONSOLIDATED BALANCE SHEETS

	June 30, 2013			December 31, 2012
	(Unaudited)
ASSETS
Cash and due from banks	$	5,741,922		$	5,365,856
Due from banks - interest bearing		6,999,891			10,510,655
Total cash and cash equivalents		12,741,813			15,876,511
Investment securities:
Available-for-sale (at fair value)		171,920,470			178,207,974
Loans held for sale		—			109,800
Loans		99,044,147			99,387,344
Less allowance for loan losses		(2,184,786	)		(2,181,451	)
Net loans		96,859,361			97,205,893
Premises and equipment, net		6,740,366			6,499,656
Accrued income receivable		1,096,767			1,127,940
Goodwill		1,644,119			1,644,119
Bank owned life insurance		3,677,733			3,625,013
Other assets		4,395,348			2,250,315
Total assets	$	299,075,977		$	306,547,221
LIABILITIES
Noninterest bearing deposits:
Demand	$	32,124,121		$	33,422,465
Interest bearing deposits:
Demand		45,292,101			48,423,471
Savings		99,741,285			93,903,196
Time		68,240,926			70,712,831
Total deposits		245,398,433			246,461,963
Federal funds purchased and securities sold under agreements to repurchase		17,731,243			18,766,590
Federal Home Loan Bank borrowings		3,561,537			3,606,411
Accrued interest payable		137,775			162,598
Other liabilities		647,285			1,846,886
Total liabilities		267,476,273			270,844,448
STOCKHOLDERS’ EQUITY
Common stock - 2,000,000 shares authorized at $5 par value:
1,728,730 shares issued at June 30, 2013 and December 31, 2012		8,643,650			8,643,650
Surplus		6,966,020			6,966,020
Retained earnings		17,334,375			17,191,740
Treasury stock - 10,000 shares at cost:		(228,100	)		(228,100	)
Accumulated other comprehensive income (loss)		(1,116,241	)		3,129,463
Total stockholders’ equity		31,599,704			35,702,773
Total liabilities and stockholders’ equity	$	299,075,977		$	306,547,221

The accompanying notes are an integral part of the unaudited consolidated financial statements.

4

First West Virginia Bancorp, Inc.

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended, June 30,					Six Months Ended, June 30,
	2013			2012		2013			2012
	(Unaudited)					(Unaudited)
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable	$	1,240,967		$	1,294,620	$	2,426,186		$	2,638,287
Tax-exempt		97,898			118,014		200,460			240,525
Debt securities:
Taxable		534,094			627,610		1,082,730			1,259,597
Tax-exempt		474,171			435,793		929,314			855,849
Other interest and dividend income		10,645			12,694		21,856			25,927
Total interest and dividend income		2,357,775			2,488,731		4,660,546			5,020,185
INTEREST EXPENSE
Deposits		301,827			385,441		615,246			803,140
Federal funds purchased and repurchase agreements		32,073			29,053		62,874			55,961
Federal Home Loan Bank borrowings		42,518			43,283		85,500			87,306
Total interest expense		376,418			457,777		763,620			946,407
Net interest income		1,981,357			2,030,954		3,896,926			4,073,778
PROVISION FOR LOAN LOSSES		—			—		—			—
Net interest income after provision for loan losses		1,981,357			2,030,954		3,896,926			4,073,778
NONINTEREST INCOME
Service charges and other fees		94,449			116,908		192,853			227,563
Net gains on available for sale securities		2,236			342,279		2,250			342,279
Other operating income		157,472			199,150		331,319			396,490
Total noninterest income		254,157			658,337		526,422			966,332
NONINTEREST EXPENSE
Salary and employee benefits		914,214			930,772		1,829,755			1,856,498
Net occupancy expense of premises		396,171			365,320		804,248			758,356
Other operating expenses		580,168			633,599		1,147,163			1,217,939
Total noninterest expense		1,890,553			1,929,691		3,781,166			3,832,793
Income before income taxes		344,961			759,600		642,182			1,207,317
INCOME TAX EXPENSE (BENEFIT)		(69,454	)		89,566		(153,570	)		67,283
Net income	$	414,415		$	670,034	$	795,752		$	1,140,034
WEIGHTED AVERAGE SHARES OUTSTANDING		1,718,730			1,718,730		1,718,730			1,718,730
EARNINGS PER COMMON SHARE	$	0.24		$	0.39	$	0.46		$	0.67
DIVIDENDS PER COMMON SHARE	$	0.19		$	0.18	$	0.38		$	0.37

The accompanying notes are an integral part of the unaudited consolidated financial statements.

5

First West Virginia Bancorp, Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended, June 30,						Six Months Ended, June 30,
	2013			2012			2013			2012
	(Unaudited)						(Unaudited)
Net Income	$	414,415		$	670,034		$	795,752		$	1,140,034
Other comprehensive income (loss):
Investment securities available for sale
Unrealized holding gains (losses) arising during the period		(5,681,819	)		834,077			(6,805,034	)		666,449
Income tax effect		2,138,068			(313,863	)		2,560,734			(250,784	)
Reclassification of gains recognized in earnings		(2,236	)		(342,279	)		(2,250	)		(342,279	)
Income tax effect		841			128,799			846			128,799
Total other comprehensive income (loss)	$	(3,545,146	)	$	306,734		$	(4,245,704	)	$	202,185
Comprehensive income (loss)	$	(3,130,731	)	$	976,768		$	(3,449,952	)	$	1,342,219

The accompanying notes are an integral part of the unaudited consolidated financial statements.

6

First West Virginia Bancorp, Inc.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

													Accumulated
													Other
	Common Stock						Retained			Treasury			Comprehensive
	Shares		Amount		Surplus		Earnings			Stock			Income (Loss)			Total
BALANCE, DECEMBER 31, 2012		1,728,730	$	8,643,650	$	6,966,020	$	17,191,740		$	(228,100	)	$	3,129,463		$	35,702,773
Comprehensive income:
Net Income		—		—		—		795,752			—			—			795,752
Other comprehensive loss														(4,245,704	)		(4,245,704	)
Cash dividend ($.38 per share)		—		—		—		(653,117	)		—			—			(653,117	)
BALANCE, June 30, 2013		1,728,730	$	8,643,650	$	6,966,020	$	17,334,375		$	(228,100	)	$	(1,116,241	)	$	31,599,704
													Accumulated
													Other
	Common Stock						Retained			Treasury			Comprehensive
	Shares		Amount		Surplus		Earnings			Stock			Income			Total
BALANCE, DECEMBER 31, 2011		1,662,814	$	8,314,070	$	6,288,403	$	16,920,319		$	(228,100	)	$	3,231,818		$	34,526,510
Comprehensive income:
Net Income		—		—		—		1,140,034			—			—			1,140,034
Other comprehensive income														202,185			202,185
Cash dividend ($.37 per share)		—		—		—		(628,069	)		—			—			(628,069	)
BALANCE, June 30, 2012		1,662,814	$	8,314,070	$	6,288,403	$	17,432,284		$	(228,100	)	$	3,434,003		$	35,240,660

The accompanying notes are an integral part of the unaudited consolidated financial statements.

7

First West Virginia Bancorp, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended June 30,
	2013			2012
OPERATING ACTIVITIES
Net income	$	795,752		$	1,140,034
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		278,867			249,787
Amortization of investment securities, net		232,617			281,283
Investment security gains		(2,250	)		(342,279	)
Net gains on sales of mortgage loans		(12,460	)		(34,758	)
Loss on disposal of premises and equipment		—			1,052
Increase in cash surrender value of bank-owned life insurance		(52,720	)		(52,377	)
Originations of mortgage loans held for sale		(311,500	)		(870,800	)
Proceeds from sales of mortgage loans		433,760			905,558
Decrease in interest receivable		31,173			1,553
Decrease in interest payable		(24,823	)		(28,183	)
Other, net		(783,053	)		(974,908	)
Net cash provided by operating activities		585,363			275,962
INVESTING ACTIVITIES
Net decrease in loans, net of charge-offs		337,728			3,950,592
Recoveries on loans previously charged-off		8,804			18,425
Proceeds from sales of securities available-for-sale		16,785			9,990,764
Proceeds from maturities of securities available-for-sale		17,706,393			18,515,162
Principal collected on mortgage-backed securities		6,654,578			8,501,343
Purchases of securities available-for-sale		(25,127,904	)		(50,004,940	)
Purchases of premises and equipment		(519,577	)		(537,924	)
Net cash used in investing activities		(923,193	)		(9,566,578	)
FINANCING ACTIVITIES
Net increase (decrease) in deposits		(1,063,530	)		58,625
Dividends paid		(653,117	)		(628,069	)
Increase (decrease) in short-term borrowings		(1,035,347	)		2,426,413
Repayment of Federal Home Loan Bank borrowings		(44,874	)		(42,785	)
Net cash provided by (used in) financing activities		(2,796,868	)		1,814,184
DECREASE IN CASH AND CASH EQUIVALENTS		(3,134,698	)		(7,476,432	)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		15,876,511			20,916,773
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	12,741,813		$	13,440,341
Supplemental Disclosures:
Cash Paid for Interest	$	788,443		$	974,590
Cash Paid for Income Taxes	$	25,000		$	228,750

The accompanying notes are an integral part of the unaudited consolidated financial statements.

8

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting and reporting policies applied in the presentation of the accompanying financial statements follows.

Nature of Operations and Basis of Presentation: First West Virginia Bancorp, Inc. (the “Company”) is a West Virginia Company. The Company provides a variety of banking services to individuals and businesses through the branch network of its affiliate bank (the “Bank”). The Bank operates nine full service branches located in Wheeling (3), Wellsburg, Moundsville, New Martinsville, Buckhannon, and Weston, West Virginia and Bellaire, Ohio. Primary deposit products consist of checking accounts, savings accounts, and certificates of deposit. Primary lending products consist of commercial and residential real estate loans, consumer loans, and business loans.

Principles of Consolidation: The consolidated financial statements of the Company include the financial statements of the parent and its wholly-owned subsidiary, Progressive Bank, N.A. All significant intercompany transactions and accounts have been eliminated in consolidation.

Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for loan losses and the valuation of deferred tax assets.

Cash and cash equivalents: Cash and cash equivalents consist of cash on hand and amounts due from banks and federal funds sold with maturities of less than 90 days.

Investment Securities: Investment securities are classified at the time of purchase, based on management’s intention and ability, as securities available for sale or held to maturity. Debt securities classified as held to maturity are stated at cost adjusted for amortization of premium and accretion of discount which are computed using the interest method and recognized as adjustments of interest income. Certain other debt and equity securities have been classified as available for sale to serve principally as a source of liquidity. Unrealized holding gains and losses for available-for-sale securities are reported as a separate component of stockholders’ equity, net of tax, until realized. Realized securities gains and losses are computed using the specific identification method. Interest and dividends on investment securities are recognized as income when earned.

Securities are periodically reviewed for other-than-temporary impairment based upon a number of factors, including, but not limited to, the length of time and extent to which the market value has been less than cost, the financial condition of the underlying issuer, the ability of the issuer to meet contractual obligations, the likelihood of the security’s ability to recover any decline in its market value, and management’s intent and ability to hold the security for a period of time sufficient to allow for a recovery in market value. Among the factors that are considered in determining management’s intent and ability is a review of the Company’s capital adequacy, interest rate risk position and liquidity. The assessment of a security’s ability to recover any decline in market value, the ability of the issuer to meet contractual obligations and management’s intent and ability requires considerable judgment. Once a decline in value is determined to be other than temporary, if the investor does not intend to sell the security, and it is more-likely-than-not that it will not be required to sell the security, before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference between fair value and amortized cost (the difference defined as the non-credit portion) is recognized in other comprehensive income, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost is charged to earnings. At June 30, 2013 and December 31, 2012, there were no investment securities identified by management to be other-than-temporarily impaired. If investments decline in fair value due to adverse changes in the financial markets, charges to income could occur in future periods.

Common stock of the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank represents ownership interest in institutions that are wholly owned by other financial institutions. These equity securities are accounted for at cost and are classified with other assets. The Bank is a member of the FHLB and, as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and, as such, is classified as restricted stock, carried at cost and evaluated by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared with the capital stock amount and the length of time this situation has persisted, (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB, and (d) the liquidity position of the FHLB.

9

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Loans and Loans Held for Sale: Loans are generally reported at the principal balance outstanding, net of unearned income. Interest income on loans is accrued based on the principal outstanding. It is the Company’s policy to discontinue the accrual of interest when either the principal or interest is past due 90 days or more, unless the loan is both well secured and in the process of collection. It is the Company’s policy not to recognize interest income on specific impaired loans unless the likelihood of future loss is remote. Interest payments received on such loans are applied as a reduction of the loan principal balance. Nonaccrual loans may be returned to accrual status when none of its principal and interest payments are due and there has been a sustained period of repayment performance. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized over the contractual life of the related loans or commitments as an adjustment of the related loan’s yield. Loans held for sale are carried at the lower of cost or estimated market value in the aggregate. There was one loan held for sale at December 31, 2012 amounting to $109,800. There were no loans held for sale as of June 30, 2013.

The Company has entered into an agreement with the Federal Home Loan Bank of Pittsburgh (“FHLB”) under which the bank may sell conforming one-to-four family residential mortgage loans to the FHLB. The current agreement dated December 28, 2011 provides for a maximum commitment of $5,000,000. This commitment expires on December 28, 2013. Loans sold to the FHLB are sold with limited recourse or credit risk based upon utilization of the original commitment. The bank also maintains the servicing of these loans, for which it is paid a servicing fee. The total amount of loans sold and outstanding to the FHLB were $9,869,132 and $10,267,649 as of June 30, 2013 and December 31, 2012, respectively. These loans were also subject to recourse obligation or credit risk in the amount of $342,873 and $346,249 at June 30, 2013 and December 31, 2012, respectively. No liability has been recorded for the recourse obligation as the likelihood of incurring the liability is considered remote. The amount of income recognized as of a result of this agreement was $11,173 and $18,679 for the three months ended June 30, 2013 and 2012, respectively, and $21,935 and $43,276 for the six months ended June 30, 2013 and 2012, respectively.

Allowance for Loan Losses: The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance, and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses that is charged to operations. The provision is based on management’s evaluation of the adequacy of the allowance for loan losses which encompasses the overall risk characteristics of the various portfolio segments, past experience with losses, the impact of economic conditions on borrowers, and other relevant factors. The estimates used in determining the adequacy of the allowance for loan losses, including the amounts and timing of future cash flows expected on impaired loans, are particularly susceptible to significant changes in the near term.

Management tracks and assigns a historical loss percentage for each loan rating category within each loan type. A rolling three-year historical loss ratio is used, calculated on a quarterly basis.

Management currently utilizes nine qualitative factors that are adjusted based on changes in the lending environment and economic conditions. The qualitative factors include the following: levels of and trends in delinquencies, non-accruals, and charge-offs; trends within the loan portfolio; changes in lending policies and procedures; experience of lending personnel and management oversight; national and local economic trends; concentrations of credit; external factors such as legal and regulatory requirements; changes in the quality of loan review and Board oversight; and changes in the value of underlying collateral. The number of qualitative factors can change. Factors can be added for new risks or taken away if the risk no longer applies. Each loan type will have its own risk profile and management will evaluate and adjust each qualitative factor for each loan type quarterly, if necessary. For example, if one area of the loan portfolio is experiencing sharp increases in growth, it is likely the qualitative factor for trends in the loan portfolio would be increased for that loan type. As levels of delinquencies and non-accrual loans decline for commercial real estate and commercial loans it is likely that factor would be reduced.

In terms of the Company’s loan portfolio, the commercial and industrial loans and commercial real estate loans are deemed to have more risk than the consumer real estate loans and other consumer loans in the portfolio. The commercial loans not secured by real estate are highly dependent on financial condition and are more dependent on economic conditions. The commercial loans secured by real estate are also dependent on economic conditions but generally have stronger forms of collateral. More recently, commercial real estate has been negatively impacted by devaluation so these commercial loans carry a higher qualitative factor for changes in the value of collateral. The commercial loans and commercial real estate loans have historically been responsible for the majority of the Company’s delinquencies, non-accrual loans, and charge-offs so both of these categories carry higher qualitative factors than consumer real estate loans and other consumer loans. The Company has historically experienced very low levels of consumer real estate and consumer loan charge-offs so these qualitative factors are set lower than the commercial real estate and commercial and industrial loans.

Mortgage loans secured by one-to-four family properties and all consumer loans are large groups of smaller-balance homogeneous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all circumstances concerning the loan, the credit worthiness and payment history of the borrower, the length of the payment delay, and the amount of shortfall in relation to the principal and interest owed.

Impaired loans are loans for which it is probable the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Company individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap.

10

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Allowance for Loan Losses: (Continued)

The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectibility while not classifying the loan as impaired, provided the loan is not a commercial or commercial real estate classification. Payments received on nonaccrual loans are applied as a reduction of the loan principal balance. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. When foreclosure is probable, impairment is measured based on the fair value of the collateral.

Individual loan reviews are based upon specific quantitative and qualitative criteria, including the size of the loan, loan quality ratings, value of collateral, repayment ability of borrowers, and historical experience factors. The historical experience factors utilized for individual loan reviews are based upon past loss experience, known trends in losses and delinquencies, the growth of loans in particular markets and industries, and known changes in economic conditions in the particular lending markets. Allowances for homogeneous loans (such as residential mortgage loans, personal loans, etc.) are evaluated based upon historical loss experience, trends in losses and delinquencies, growth of loans in particular markets, and known changes in economic conditions in each lending market. There can be no assurance the allowance for loan losses will be adequate to cover all losses, but management believes the allowance for loan losses in the amount of $2,184,786 at June 30, 2013, was adequate to provide for probable losses from existing loans based on information currently available. While management uses available information to provide for loan losses, the ultimate collectibility of a substantial portion of the loan portfolio, and the need for future additions to the allowance, will be based on changes in economic conditions and other relevant factors. As such, an adverse change in economic activity could reduce cash flows for both commercial and individual borrowers, which would likely cause the Company to experience increases in problem assets, delinquencies and losses on loans.

Goodwill: Goodwill resulted from the Company’s purchase of a less-than-whole financial institution (the “branch”). The goodwill value of $1.6 million is supported ultimately by revenue that is driven by the volume of business transacted. A decline in earnings as a result of a lack of growth or the inability to deliver cost effective services over sustained periods can lead to impairment of goodwill that could adversely impact earnings in future periods.

Goodwill is periodically reviewed for impairment. No impairment losses were recognized. Additionally, future events could cause management to conclude that impairment indicators exist and that the goodwill is impaired, which would result in the Company recording an impairment loss. Any resulting impairment loss could have a material, adverse impact on the Company’s financial condition and results of operations.

Mortgage Servicing Rights (“MSRs”): The Company has agreements for the express purpose of selling loans in the secondary market. The Company maintains all servicing rights for these loans. Originated MSRs are recorded by allocating total costs incurred between the loan and servicing rights based on their relative fair values. MSRs are amortized in proportion to the estimated servicing income over the estimated life of the servicing portfolio. Impairment is evaluated based on the fair value of the right, based on portfolio interest rates and prepayment characteristics.

Bank-owned Life Insurance: Bank owned life insurance consists of investments in life insurance policies on executive officers and other members of the bank’s management. The policies are carried at their net cash surrender value. Changes in the policy value are recorded as an adjustment to the carrying value with the corresponding amount recognized as non-interest income or expense. Earnings on these policies are based on the net earnings on the cash surrender value of the policies. The net cash surrender value of bank-owned life insurance was $3,677,733 and $3,625,013 at June 30, 2013 and December 31, 2012, respectively. The death benefit value of the bank-owned life insurance at June 30, 2013 and December 31, 2012 was $8.7 million and $8.8 million, respectively. An agreement has been executed with all officers whereby a $40,000 death benefit is payable upon the participant’s death while employed by the Company to their designated beneficiary.

Advertising Costs: Advertising costs are expensed as the costs are incurred. Advertising expenses amounted to $59,719 and $57,144 for the three months ended June 30, 2013 and June 30, 2012, respectively. For the six month periods ended June 30, 2013 and 2012 advertising expenses amounted to $98,396 and $107,073, respectively.

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Provisions for depreciation and amortization are computed generally using the straight-line method over the estimated useful lives of the assets. When units of property are disposed of, the premises and equipment accounts are relieved of the cost and the accumulated depreciation related to such units. Any resulting gains or losses are credited to or charged against income. Cost of repairs and maintenance is charged to expense as incurred. Additions and improvements are capitalized at cost.

Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

11

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Other Real Estate Owned: Other real estate owned are carried at the lower of cost or their estimated current fair value, less estimated costs to sell and are included in other assets. Other real estate owned consist primarily of properties acquired through, or in lieu of foreclosures. Any subsequent declines in fair value, and gains or losses on the disposition of these assets are credited to or charged against income.

Income Taxes: The Company and its subsidiary file a consolidated federal income tax return. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Statement of Income. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Deferred income tax expenses or benefits are based on the changes in the deferred tax asset or liability from period to period.

Earnings Per Common Share: Earnings per common share are calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the year. The Company has no securities which would be considered potential common stock.

Stock Dividend: In November 2012, the Company declared a 4% stock dividend to stockholders of record on December 19, 2012. The Company also declared a 4% stock dividend in October 2010 to stockholders of record on December 20, 2010. All common share data includes the effect of the stock dividend.

Recent Accounting Pronouncements: In January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The amendments clarify that the scope of Update 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. An entity is required to apply the amendments for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of Update 2011-11. This ASU has been adopted and did not have a significant impact on the Company’s financial statements.

In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this Update require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles (GAAP) to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. For nonpublic entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. The Company has provided the necessary disclosures in Note 8.

In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The objective of the amendments in this Update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. generally accepted accounting principles (GAAP). Examples of obligations within the scope of this Update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. U.S. GAAP does not include specific guidance on accounting for such obligations with joint and several liability, which has resulted in diversity in practice. Some entities record the entire amount under the joint and several liability arrangement on the basis of the concept of a liability and the guidance that must be met to extinguish a liability. Other entities record less than the total amount of the obligation, such as an amount allocated, an amount corresponding to the proceeds received, or the portion of the amount the entity agreed to pay among its co-obligors, on the basis of the guidance for contingent liabilities. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter. This ASU is not expected to have a significant impact on the Company’s financial statements.

In April 2013, the FASB issued ASU 2013-07, Presentation of Financial Statements (Topic 205): Application of the Liquidation Basis of Accounting. The objective of this Update is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2012-210 – Presentation of Financial Statements (Topic 205), which has been deleted. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations.

12

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 2 - INVESTMENT SECURITIES

The amortized cost and estimated fair values of investment securities are as follows at June 30, 2013 and December 31, 2012:

	(Expressed in thousands) June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale:
Obligations of U.S. Government corporations and agencies	$	44,093	$	3	$	(1,576	)	$	42,520
Obligations of states and political subdivisions		51,847		1,862		(783	)		52,926
Mortgage-backed securities		77,589		537		(1,858	)		76,268
Equity securities		180		28		(2	)		206
Total available-for-sale	$	173,709	$	2,430	$	(4,219	)	$	171,920
	(Expressed in thousands) December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale:
Obligations of U.S. Government corporations and agencies		47,101	$	201	$	(7	)	$	47,295
Obligations of states and political subdivisions		48,393		3,692		(55	)		52,030
Mortgage-backed securities		77,513		1,218		(53	)		78,678
Equity securities		183		22		—			205
Total available-for-sale		173,190		5,133		(115	)		178,208

The Company’s investment securities portfolio contains unrealized losses of direct obligations of the U.S. Government agency securities, including mortgage-related instruments issued or backed by the full faith and credit of the United States government or are generally viewed as having the implied guarantee of the U.S. government, and debt obligations of a U.S. state or political subdivision.

On a quarterly basis, the Company evaluates the severity and duration of impairment for its investment securities portfolio and the Company’s ability to hold the securities till they recover. Generally, impairment is considered other than temporary when an investment security has sustained a decline in market value for a period of twelve months. The Company has concluded that any impairment of its investment securities portfolio is not other than temporary but is the result of interest rate changes that are not expected to result in the noncollection of principal and interest during the period. There are 79 positions that are temporarily impaired at June 30, 2013.

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at June 30, 2013 and December 31, 2012:

	(Expressed in thousands)
	June 30, 2013
	Less than Twelve Months					Twelve Months or Greater				Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Government corporations and agencies	$	40,013	$	(1,576	)	$	—	$	—	$	40,013	$	(1,576	)
Obligations of states and political subdivisions		11,646		(783	)		—		—		11,646		(783	)
Mortgage-backed securities		53,704		(1,858	)		—		—		53,704		(1,858	)
Equity securities		41		(2	)		—		—		41		(2	)
Total	$	105,404	$	(4,219	)	$	—	$	—	$	105,404	$	(4,219	)

13

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 2 - INVESTMENT SECURITIES (CONTINUED)

	(Expressed in thousands)
	December 31, 2012
	Less than Twelve Months					Twelve Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Government corporations and agencies		6,993	$	(7	)	$	—	$	—		$	6,993	$	(7	)
Obligations of states and political subdivisions		2,721		(55	)		—		—			2,721		(55	)
Mortgage-backed securities		23,752		(52	)		82		(1	)		23,834		(53	)
Total	$	33,466	$	(114	)	$	82	$	(1	)	$	33,548	$	(115	)

The amortized cost and fair value of investment securities available for sale at June 30, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	(Expressed in thousands)
	June 30, 2013
	Amortized Cost		Fair Value
Due in one year or less	$	781	$	788
Due after one year through five years		1,977		2,066
Due after five years through ten years		66,489		65,331
Due after ten years		26,693		27,261
		95,940		95,446
Mortgage-backed securities		77,589		76,268
Equity securities		180		206
Total	$	173,709	$	171,920

Assets carried at $60,868,000 and $65,418,000 at June 30, 2013 and December 31, 2012, respectively, were pledged to secure United States Government and other public funds and for other purposes as required or permitted by law. Proceeds from sales of securities available-for-sale during the six month periods ended June 30, 2013 and 2012, were $16,785 and $9,990,764, respectively. Gross gains of $2,268 and gross losses of $18 were realized during the six months ended June 30, 2013 and gross gains of $342,594 and gross losses of $315 were realized during the six months ended June 30, 2012. Proceeds from sales of securities available-for-sale during the three month periods ended June 30, 2013 and 2012, were $16,585 and $9,980,534, respectively. Gross gains of $2,254 and gross losses of $18 were realized during the three months ended June 30, 2013 and gross gains of $342,297 and gross losses of $18 were realized during the three months ended June 30, 2012. The maturity distribution using book value including accretion of discounts and amortization of premiums and approximate yield of investment securities at June 30, 2013 and December 31, 2012 are presented in the following table. Tax equivalent yield basis was used on tax exempt obligations. Approximate yield was calculated using a weighted average of yield to maturities. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

14

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 2 - INVESTMENT SECURITIES (CONTINUED)

(dollars in thousands)	June 30, 2013							December 31, 2012
	Amortized Cost		Fair Value		Yield			Amortized Cost		Fair Value		Yield
U.S. Government corporations and agencies
Within One Year	$	1	$	1		0.01	%	$	10	$	10		0.01	%
After One But Within Five Years		—		—		—			6,000		6,034		1.88
After Five But Within Ten Years		44,089		42,516		1.72			41,088		41,248		1.75
After Ten Years		3		3		0.88			3		3		0.87
		44,093		42,520		1.72			47,101		47,295		1.77
States & Political Subdivisions
Within One Year		780		787		5.05			970		990		4.98
After One But Within Five Years		1,977		2,066		6.38			1,101		1,158		5.92
After Five But Within Ten Years		22,400		22,816		5.16			19,439		20,633		5.23
After Ten Years		26,690		27,257		5.83			26,883		29,249		5.90
		51,847		52,926		5.55			48,393		52,030		5.62
Mortgage-Backed Securities		77,589		76,268		2.08			77,513		78,678		2.01
Equity Securities		180		206		2.88			183		205		1.97
Total	$	173,709	$	171,920		3.06	%	$	173,190	$	178,208		3.00	%

NOTE 3 - LOANS AND LEASES

Loans outstanding at June 30, 2013 and December 31, 2012, are as follows:

	(Expressed in Thousands)
	June 30, 2013		December 31, 2012
Consumer Real Estate:
Construction	$	432	$	730
Farmland		194		239
Residential 1-4 Family		23,671		22,439
Home Equity Loans		1,760		1,960
Home Equity Lines of Credit		3,320		3,157
Total Consumer Real Estate		29,377		28,525
Commercial Real Estate:
Non-farm, non-residential		40,888		41,164
Multifamily (5 or more) residential properties		10,112		8,986
Total Commercial Real Estate		51,000		50,150
Commercial and Other Loans:
Commercial		5,801		5,626
Non-rated industrial development obligations		8,853		9,954
Other loans		31		23
Total Commercial and Other Loans		14,685		15,603
Consumer Loans:
Installment and other loans to individuals		3,589		4,668
Credit Cards		518		563
Total Consumer Loans		4,107		5,231
Total loans	$	99,169	$	99,509
Less unearned interest and deferred fees		125		122
Net loans	$	99,044	$	99,387

The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. These policies and procedures are reviewed by management and approved by the Board of Directors on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentration of credit, loan delinquencies and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions.

15

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 3 - LOANS AND LEASES (CONTINUED)

The Company originates direct and indirect consumer loans including principally residential real estate, home equity lines and loans, credit cards, and indirect vehicle loans using a credit analysis as part of the underwriting process. Each loan type has a separate underwriting criteria, which consists of several factors including debt to income, type of collateral, credit history and customer relationship with the Company.

Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably. Underwriting standards are designed to promote relationship banking rather than transactional banking. The Company’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of the borrower, however, may not be as expected and the collateral securing the loan may fluctuate in value. Minimum standards and underwriting guidelines have been established for commercial loan types.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by the general economy or conditions specific to the real estate market such as geography and/or property type.

Non-accrual loans amounted to $3,298,127 and $3,550,640 at June 30, 2013 and December 31, 2012, respectively. The amount of interest income that would have been recognized had the loans performed in accordance with their original terms was $86,807 and $66,646 for the three months ended June 30, 2013 and June 30, 2012, respectively. For the six months ended June 30, 2013 and 2012 and for the year ended December 31, 2012, the amount of interest income that would have been recognized had the loans performed in accordance with their original terms was $129,108, $127,046 and $216,468, respectively.

The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands):

	June 30, 2013
	Current			30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Total Loans			90 Days or more Past Due and Accruing
Commercial and Other Loans	$	14,526		$	137	$	—	$	22	$	159	$	14,685		$	—
Commercial real estate		48,277			30		—		2,693		2,723		51,000			—
Consumer real estate		29,138			15		143		81		239		29,377			—
Consumer		4,098			4		—		5		9		4,107			1
Unearned interest and deferred fees		(125	)		—		—		—		—		(125	)		—
Total loans	$	95,914		$	186	$	143	$	2,801	$	3,130	$	99,044		$	1
Non-accrual loans included above are as follows:
Commercial and Other Loans	$	6		$	—	$	—	$	22	$	22	$	28		$	—
Commercial real estate		173			30		—		2,693		2,723		2,896			—
Consumer real estate		141			—		143		81		224		365			—
Consumer		5			—		—		4		4		9			—
Total non-accrual loans	$	325		$	30	$	143	$	2,800	$	2,973	$	3,298		$	—

16

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 3 - LOANS AND LEASES (CONTINUED)

	December 31, 2012
	Current			30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Total Loans			90 Days or more Past Due and Accruing
Commercial and Other Loans	$	15,515		$	65	$	—	$	23	$	88	$	15,603		$	—
Commercial real estate		47,261			31		—		2,858		2,889		50,150			—
Consumer real estate		28,006			139		295		85		519		28,525			—
Consumer		5,214			4		7		6		17		5,231			—
Unearned interest and deferred fees		(122	)		—		—		—		—		(122	)		—
Total loans	$	95,874		$	239	$	302	$	2,972	$	3,513	$	99,387		$	—
Non-accrual loans included above are as follows:
Commercial and Other Loans	$	8		$	—	$	—	$	23	$	23	$	31		$	—
Commercial real estate		257			—		—		2,858		2,858		3,115			—
Consumer real estate		195			108		—		85		193		388			—
Consumer		10			—		1		6		7		17			—
Total non-accrual loans	$	470		$	108	$	1	$	2,972	$	3,081	$	3,551		$	—

The Company utilizes an internal asset classification system for commercial loans as a means of reporting problem and potential problem loans. Under the Company’s risk rating system, the Company classifies problem and potential problem loans as “Special Mention”, “Substandard”, and “Doubtful.” Substandard loans include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses that deserve management’s close attention are deemed to be Special Mention. Risk ratings are updated any time the situation warrants. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans.

The following tables present the risk category of loans by class of loans based on the most recent analysis performed and the contractual aging as of June 30, 2013 and December 31, 2012 (in thousands):

June 30, 2013	Pass		Special Mention		Substandard		Doubtful		Total
Commercial and Other	$	14,643	$	—	$	42	$	—	$	14,685
Commercial Real Estate		41,399		3,056		6,545		—		51,000
Construction and Land Development		380		—		246		—		626
Total	$	56,422	$	3,056	$	6,833	$	—	$	66,311
Current	$	56,422	$	3,056	$	3,772	$	—	$	63,250
Past Due 30-59 days		—		—		137		—		137
Past Due 60-89 days		—		—		—		—		—
Past Due 90 days or more		—		—		—		—		—
Non- accrual		—		—		2,924		—		2,924
Total	$	56,422	$	3,056	$	6,833	$	—	$	66,311

17

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 3 - LOANS AND LEASES (CONTINUED)

December 31, 2012	Pass		Special Mention		Substandard		Doubtful		Total
Commercial and Other	$	15,572	$	—	$	31	$	—	$	15,603
Commercial Real Estate		39,873		3,465		6,812		—		50,150
Construction and Land Development		969		—		—		—		969
Total	$	56,414	$	3,465	$	6,843	$	—	$	66,722
Current	$	56,349	$	3,465	$	3,728	$	—	$	63,542
Past Due 30-59 days		65		—		—		—		65
Past Due 60-89 days		—		—		—		—		—
Past Due 90 days or more		—		—		—		—		—
Non- accrual		—		—		3,115		—		3,115
Total	$	56,414	$	3,465	$	6,843	$	—	$	66,722

For consumer and consumer real estate loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in those loan classes based on payment activity as of June 30, 2013 and December 31, 2012 (in thousands):

June 30, 2013	Performing		Non-performing		Total
Consumer	$	4,080	$	27	$	4,107
Consumer Real Estate		27,707		1,044		28,751
Total	$	31,787	$	1,071	$	32,858
December 31, 2012	Performing		Non-performing		Total
Consumer	$	5,214	$	17	$	5,231
Consumer Real Estate		28,247		388		28,635
Total	$	33,461	$	405	$	33,866

The Company also evaluates problem loans for impairment. A loan is considered to be impaired if it is probable that the Company will not be able to collect the payments for principal and interest when due according to the contractual terms of the loan agreement. Impaired loans generally include all non-accrual loans and Troubled Debt Restructurings (TDR’s).

Impaired loans at June 30, 2013 and December 31, 2012 are set forth in the following tables (in thousands):

	June 30, 2013
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Commercial and Other Loans	$	33	$	6	$	27	$	33	$	27
Commercial real estate		2,942		459		2,483		2,942		525
Consumer real estate		215		215		—		215		—
Total	$	3,190	$	680	$	2,510	$	3,190	$	552

18

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 3 - LOANS AND LEASES (CONTINUED)

	December 31, 2012
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Commercial and Other Loans	$	31	$	8	$	23	$	31	$	23
Commercial real estate		3,115		537		2,578		3,115		619
Consumer real estate		226		226		—		226		—
Total	$	3,372	$	771	$	2,601	$	3,372	$	642

The average recorded investment in impaired loans are set forth below in the following table. No interest income was recognized on impaired loans subsequent to their classification as impaired (in thousands):

	Average Recorded Investment
	For the three months ended				For the six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Commercial and Other Loans		32		36		33		44
Commercial real estate		3,297		3,294		3,339		3,359
Consumer real estate		240		463		243		468
Total	$	3,569	$	3,793	$	3,615	$	3,871

Loan Modifications

The Company’s loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring (TDR), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonaccrual at the time of restructure and may only be returned to accrual status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. TDR’s on accrual status may remain in accrual status after they have been restructured as long as they continue to perform in accordance with their modified terms. There was one TDR in accrual status at June 30, 2013 and none at December 31, 2012.

When the Company modifies a loan, management evaluates any possible impairment based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral. In these cases management uses the current fair value of the collateral, less selling costs, instead of discounted cash flows. If management determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized by segment or class of loan, as applicable, through an allowance estimate or a charge-off to the allowance. Segment and class status is determined by the loan’s classification at origination.

The Company had one TDR originate during the three and six month periods ended June 30, 2013 and no TDR’s originate during the three and six month periods ended June 30, 2012. The concession granted on this TDR was an extension of the maturity date. The outstanding recorded investment in this TDR pre and post modification was $45,898. There were no TDR’s that defaulted during the three and six month periods ended June 30, 2013 and 2012.

At June 30, 2013, there were funds of $14,102 committed to be advanced to customers whose loans were classified as TDR’s. No additional funds were committed to be advanced to customers whose loans were classified as TDR’s at December 31, 2012.

19

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES

The following table summarizes the primary segments of the ALL, segregated into the amount for loans individually evaluated for impairment by class of loans for the six months ended as of June 30, 2013 and June 30, 2012 (in thousands):

June 30, 2013	Commercial and other		Commercial Real Estate		Consumer Real Estate		Consumer			Total
Allowance for Loan Losses:
Beginning Balance, January 1, 2013	$	179	$	1,762	$	193	$	47		$	2,181
Charge-offs		—		—		—		(5	)		(5	)
Recoveries		—		—		—		9			9
Provision		—		—		—		—			—
Ending Balance, June 30, 2013	$	179	$	1,762	$	193	$	51		$	2,185
Loans individually evaluated for impairment	$	27	$	525	$	—	$	—		$	552
Loans collectively evaluated for impairment		152		1,237		193		51			1,633
Ending Balance	$	179	$	1,762	$	193	$	51		$	2,185

20

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (CONTINUED)

June 30, 2012	Commercial and other			Commercial Real Estate			Consumer Real Estate		Consumer			Total
Allowance for Loan Losses:
Beginning Balance, January 1, 2012	$	179		$	2,082		$	193	$	50		$	2,504
Charge-offs		—			(3	)		—		(5	)		(8	)
Recoveries		—			15			—		3			18
Provision		(9	)		(44	)		61		(8	)		—
Ending Balance, June 30, 2012	$	170		$	2,050		$	254	$	40		$	2,514
Loans individually evaluated for impairment	$	24		$	836		$	—	$	—		$	860
Loans collectively evaluated for impairment		146			1,214			254		40			1,654
Ending Balance	$	170		$	2,050		$	254	$	40		$	2,514

The following table summarizes the primary segments of the ALL for the three months ended as of June 30, 2013 and June 30, 2012 (in thousands):

June 30, 2013	Commercial and other		Commercial Real Estate			Consumer Real Estate		Consumer			Total
Allowance for Loan Losses:
Beginning Balance, April 1, 2013	$	179	$	1,762		$	193	$	44		$	2,178
Charge-offs		—		—			—		—			—
Recoveries		—		—			—		7			7
Provision		—		—			—		—			—
Ending Balance, June 30, 2013	$	179	$	1,762		$	193	$	51		$	2,185
June 30, 2012	Commercial and other		Commercial Real Estate			Consumer Real Estate		Consumer			Total
Allowance for Loan Losses:
Beginning Balance, April 1, 2012	$	148	$	2,072		$	234	$	43		$	2,497
Charge-offs		—		—			—		—			—
Recoveries		—		15			—		2			17
Provision		22		(37	)		20		(5	)		—
Ending Balance, June 30, 2012	$	170	$	2,050		$	254	$	40		$	2,514

The following table presents loans individually and collectively evaluated for impairment by class of loans as of June 30, 2013 and December 31, 2012 (in thousands):

June 30, 2013	Commercial and other		Commercial Real Estate		Consumer Real Estate		Consumer		Unearned Discounts			Total
Loans individually evaluated	$	33	$	2,942	$	215	$	—	$	—		$	3,190
Loans collectively evaluated		14,652		48,058		29,162		4,107		(125	)		95,854
Ending Balance	$	14,685	$	51,000	$	29,377	$	4,107	$	(125	)	$	99,044
December 31, 2012
Loans individually evaluated	$	31	$	3,115	$	226	$	—	$	—		$	3,372
Loans collectively evaluated		15,572		47,035		28,409		5,231		(122	)		96,125
Ending Balance	$	15,603	$	50,150	$	28,635	$	5,231	$	(122	)	$	99,497

21

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 5 - PREMISES AND EQUIPMENT

Premises and equipment are stated at cost, less accumulated depreciation, as follows:

	June 30, 2013		December 31, 2012		Original Useful Life Years
Land	$	1,983,849	$	1,974,527
Land improvements		493,195		493,195	15
Leasehold improvements		1,083,051		1,083,051	15
Buildings		5,809,772		5,440,002	39
Furniture, fixtures & equipment		5,259,344		5,147,358	3 - 7
Total		14,629,211		14,138,133
Less accumulated depreciation		7,888,845		7,638,477
Premises and equipment, net	$	6,740,366	$	6,499,656

Charges to operations for depreciation approximated $137,703 and $126,398 for the three months ended June 30, 2013 and 2012, respectively. Depreciation expenses were $278,867 and $249,787 for the six months ended June 30, 2013 and 2012, respectively.

NOTE 6 - DEPOSITS

The composition of the Bank’s deposits at June 30, 2013 and December 31, 2012 follows:

	(Expressed in Thousands)
	June 30, 2013
	Demand
	Noninterest Bearing		Interest Bearing		Savings		Time
Individuals, partnerships and corporations (includes certified and official checks)	$	31,561	$	39,734	$	95,861	$	64,965
States and political subdivisions		485		5,558		3,850		2,546
Commercial banks and other depository institutions		78		—		30		730
Total	$	32,124	$	45,292	$	99,741	$	68,241
	(Expressed in Thousands)
	December 31, 2012
	Demand
	Noninterest Bearing		Interest Bearing		Savings		Time
Individuals, partnerships and corporations (includes certified and official checks)	$	32,614	$	42,866	$	90,252	$	67,254
States and political subdivisions		646		5,558		3,546		2,969
Commercial banks and other depository institutions		162		—		105		490
Total	$	33,422	$	48,424	$	93,903	$	70,713

A maturity distribution of time certificates of deposit at June 30, 2013 and December 31, 2012, follows:

(dollars in thousands)	Maturities of Time Deposits
	June 30, 2013		December 31, 2012
Due in 2013	$	18,490	$	37,271
Due in 2014		25,577		13,279
Due in 2015		9,264		8,040
Due in 2016		7,050		6,262
Due in 2017		5,768		5,660
Due in 2018 and thereafter		2,092		201
Total	$	68,241	$	70,713

22

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 6 - DEPOSITS - (CONTINUED)

Time deposits include certificates of deposit issued in denominations of $100,000 or more which amounted to $21,304,000 and $22,720,000 at June 30, 2013 and December 31, 2012, respectively. Interest expense on certificates of deposit of $100,000 or more was $66,868 and $79,175 for the three months ended June 30, 2013 and 2012, respectively. Interest expense on certificates of deposit of $100,000 or more was $155,591 and $192,175 for the six months ended June 30, 2013 and 2012, respectively.

The following table presents time deposits of $100,000 or more issued by domestic offices by time remaining until maturity of 3 months or less; over 3 through 6 months; over 6 through 12 months; and over 12 months.

	Maturities of Time Deposits in Excess of $100,000
(dollars in thousands)	June 30, 2013		December 31, 2012
Three Months or Less	$	1,936	$	5,008
Over Three and Less than Six Months		2,981		3,356
Over Six and Less than Twelve Months		6,443		3,039
Over Twelve Months		9,944		11,317
Total	$	21,304	$	22,720

NOTE 7 - FEDERAL HOME LOAN BANK BORROWINGS

The Bank is a member of the Federal Home Loan Bank of Pittsburgh. The FHLB borrowings are secured by a blanket lien by the FHLB on certain residential real estate loans or securities with a market value at least equal to the outstanding balances. The remaining maximum borrowing capacity with the FHLB at June 30, 2013 was approximately $36.9 million subject to the purchase of additional FHLB stock. The subsidiary bank had FHLB borrowings of $3,561,537 and $3,606,411 at June 30, 2013 and December 31, 2012, respectively. At June 30, 2013 the subsidiary bank had three fixed rate amortizing advances which totaled $3,561,537 with a weighted average interest rate of 4.78% of which $2,013,861 will mature in 2018 and $1,547,676 will mature in 2023.

The bank also has a line of credit agreement with the Federal Home Loan Bank. The maximum credit available is $19.4 million under the agreement which matures on May 1, 2014 (issued in April 2013). At December 31, 2012 there was a $7 million line of credit agreement which was closed during the second quarter of 2013. There were no borrowings outstanding under these agreements at June 30, 2013 and December 31, 2012, respectively.

Contractual maturities of FHLB borrowings as of June 30, 2013 were as follows:

Due in 2013	$	45,958
Due in 2014		95,267
Due in 2015		99,919
Due in 2016		104,800
Due in 2017		109,918
Due in 2018 and thereafter		3,105,675
Total	$	3,561,537

23

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 8 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The activity in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2013 and 2012 is as follows:

	Accumulated Other Comprehensive Income (Loss)(1)
	Unrealized Gains (Losses) on Securities Available for Sale
	Three months ended June 30,						Six months ended June 30,
(dollars in thousands)	2013			2012			2013			2012
Beginning Balance	$	2,429		$	3,127		$	3,129		$	3,232
Other comprehensive income (loss) before reclassifications		(3,544	)		520			(4,244	)		415
Amounts reclassified from accumulated other comprehensive income		(1	)		(213	)		(1	)		(213	)
Period Change		(3,545	)		307			(4,245	)		202
Ending Balance	$	(1,116	)	$	3,434		$	(1,116	)	$	3,434

⁽¹⁾  All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal and State income tax rate approximating 39.5%.

	Amount Reclassified from Accumulated Other Comprehensive Income
Details about Accumulated Other Comprehensive Income Components	For the Three months  ended June 30,						Affected Line Item in the Statement of Income
(unaudited in thousands)	2013			2012
Securities available for sale (1):
Net securities gains reclassified into earnings	$	(2	)	$	(342	)	Net securities gains
Related income tax expense		1			129		Provision for income taxes
Net effect on accumulated other comprehensive income for the period	$	(1	)	$	(213	)	Net of tax
Total reclassifications for the period	$	(1	)	$	(213	)	Net of tax
	Amount Reclassified from Accumulated Other Comprehensive Income
Details about Accumulated Other Comprehensive Income Components	For the Six months ended June 30,						Affected Line Item in the Statement of Income
(unaudited in thousands)	2013			2012
Securities available for sale (1):
Net securities gains reclassified into earnings	$	(2	)	$	(342	)	Net securities gains
Related income tax expense		1			129		Provision for income taxes
Net effect on accumulated other comprehensive income for the period	$	(1	)	$	(213	)	Net of tax
Total reclassifications for the period	$	(1	)	$	(213	)	Net of tax

⁽¹⁾  For additional detail related to unrealized gains on securities and related amounts reclassified from accumulated other comprehensive income see Note 2 “Investment Securities.”

24

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 9 - REGULATORY MATTERS

The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk, weighting, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to adjusted total assets (as defined).

As of June 30, 2013, the most recent notifications from the Office of the Comptroller of the Currency categorized the bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes has changed the capital category. The capital ratios of the Company and its subsidiary bank, along with the regulatory framework for adequately capitalized and well capitalized institutions are depicted as set forth in the following table:

(Amounts Expressed in Thousands)	Actual					For Capital Adequacy Purposes					To be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
First West Virginia Bancorp, Inc.
As of June 30, 2013
Total Capital (to Risk Weighted Assets)	$	32,924		22.37	%	$	11,774		8.0	%	$	14,718		10.0	%
Tier I Capital (to Risk Weighted Assets)		31,084		21.12	%		5,887		4.0	%		8,831		6.0	%
Tier I Capital (to Adjusted Total Assets)		31,084		10.36	%		11,998		4.0	%		14,998		5.0	%
As of December 31, 2012
Total Capital (to Risk Weighted Assets)	$	32,792		22.13	%	$	11,856		8.0	%	$	14,821		10.0	%
Tier I Capital (to Risk Weighted Assets)		30,938		20.88	%		5,928		4.0	%		8,892		6.0	%
Tier I Capital (to Adjusted Total Assets)		30,938		10.48	%		11,809		4.0	%		14,761		5.0	%
Progressive Bank, N.A.
As of June 30, 2013
Total Capital (to Risk Weighted Assets)	$	32,753		22.30	%	$	11,750		8.0	%	$	14,687		10.0	%
Tier I Capital (to Risk Weighted Assets)		30,913		21.05	%		5,875		4.0	%		8,812		6.0	%
Tier I Capital (to Adjusted Total Assets)		30,913		10.32	%		11,987		4.0	%		14,984		5.0	%
As of December 31, 2012
Total Capital (to Risk Weighted Assets)	$	32,608		22.04	%	$	11,838		8.0	%	$	14,798		10.0	%
Tier I Capital (to Risk Weighted Assets)		30,754		20.78	%		5,919		4.0	%		8,879		6.0	%
Tier I Capital (to Adjusted Total Assets)		30,754		10.43	%		11,798		4.0	%		14,747		5.0	%

NOTE 10 - FAIR VALUE MEASUREMENTS

The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value. The three broad levels defined by U.S. generally accepted accounting principles are as follows:

Ÿ	Level I:	Quoted prices are available in active markets for identical assets or liabilities as of the reported date.
Ÿ	Level II:	Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed.
Ÿ	Level III:	Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available.

25

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 10 - FAIR VALUE MEASUREMENTS (CONTINUED)

Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral that secure the impaired loans include observable inputs employed by certified appraisers for similar assets classified as Level III inputs. Other real estate owned is measured at fair value, less cost to sell at the date of foreclosure. Valuations are periodically performed by management and the assets are carried at the lower of carrying amount, or fair value less cost to sell.

The following table presents the assets reported on the balance sheet at their fair value as of June 30, 2013 and December 31, 2012, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

(dollars in thousands)	June 30, 2013
	Level I		Level II		Level III		Total
Assets measured on a recurring basis:
Securities available for sale:
U.S. Government corporations and agencies	$	—	$	42,520	$	—	$	42,520
Obligations of states and political subdivisions		—		52,926		—		52,926
Mortgage-backed securities		—		76,268		—		76,268
Equity securities		206		—		—		206
Total securities available for sale:	$	206	$	171,714	$	—	$	171,920
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	3,190	$	3,190
Mortgage servicing rights	$	—	$	—	$	41	$	41
(dollars in thousands)	December 31, 2012
	Level I		Level II		Level III		Total
Assets measured on a recurring basis:
Securities available for sale:
U.S. Government corporations and agencies	$	—	$	47,295	$	—	$	47,295
Obligations of states and political subdivisions		—		52,030		—		52,030
Mortgage-backed securities		—		78,678		—		78,678
Equity securities		205		—		—		205
Total securities available for sale:	$	205	$	178,003	$	—	$	178,208
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	2,730	$	2,730
Mortgage servicing rights	$	—	$	—	$	47	$	47

26

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 11 - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Level 3 inputs were used in determining fair value.

(dollars in thousands)	Quantitative Information about Level 3 Fair Value Measurements
June 30, 2013	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted              Average)
Impaired Loans	$	3,190	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expenses (2)	-36.6% to 6.3% (-2.9%) 1.6% to 24.6% (9.2%)
Mortgage Servicing Rights	$	41	Discounted Cash Flow	Remaining term Discount rate	2.9 years to 7 years (3.49 years) 9.5% to 10.5%(10%)

(1) The fair value is determined through independent appraisals by certified appraisers of the underlying collateral.

(2) Appraisals may be adjusted by management for qualitative factors and estimated liquidation expenses. The range and weighted average of liquidation expenses are expressed as a percent of discounted collateral value and other appraisal adjustments are presented as a percentage of the appraised amounts.

The reported fair values of financial instruments are based on a variety of factors. Where possible, fair values represent quoted market prices for identical or comparable instruments. In other cases, fair values have been estimated based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of risk. Intangible values assigned to customer relationships are not reflected in the reported fair values. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of year end or that will be realized in the future.

The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments:

Cash and Cash Equivalents: The carrying amount for cash and cash equivalents is a reasonable estimate of fair value.

Investment Securities: Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.

Loans Held for Sale: Loans held for sale are carried at cost. The fair value is based on what the secondary market would offer for loans with similar characteristics.

Loans: The fair value for net loans is estimated by discounting future cash flows using current market inputs at which loans with similar terms and qualities would be made to borrowers of similar credit quality. Where quoted market prices were available, primarily for certain residential mortgage loans, such market rates were utilized as estimates for fair value.

Accrued interest receivable: The carrying amount of accrued interest receivable approximates its fair value.

Deposits: Noninterest bearing and interest bearing demand deposits and savings deposits are valued at the amount payable on demand as of year end. The fair values for time deposits are based on discounted value of cash flows. The discount rates are estimated using rates currently offered for similar instruments with similar remaining maturities.

Federal Funds Purchased and Repurchase Agreements: The carrying amount for federal funds purchased and repurchase agreements are considered to be a reasonable estimate of fair value.

27

First West Virginia Bancorp, Inc. and Subsidiary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2013 AND 2012

(Unaudited)

NOTE 11 - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)

Federal Home Loan Bank borrowings: The fair value of Federal Home Loan Bank borrowings is generally carried at amortized cost. We are required to estimate the fair value of these long-term borrowings. The discounted cash flow method is used to estimate the fair value of Federal Home Loan Bank borrowings.

Accrued Interest Payable: The carrying amount of accrued interest payable approximates its fair value.

Off-Balance-Sheet Instruments: The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The amount of fees currently charged on commitments is determined to be insignificant and, therefore, the carrying value and fair value of off-balance-sheet instruments are not shown.

The reported fair values of financial instruments are based on a variety of factors. Where possible, fair values represent quoted market prices for identical or comparable instruments. In other cases, fair values have been estimated based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of risk. Intangible values assigned to customer relationships are not reflected in the reported fair values. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized or that will be realized in the future.

The estimates of fair values of financial instruments are summarized as follows at June 30, 2013 and December 31, 2012:

	June 30, 2013
	Carrying		Estimated Fair Value
(Amounts Expressed in Thousands)	Amount		Level I		Level II		Level III		Total
Financial assets:
Cash and cash equivalents	$	12,742	$	12,742	$	—	$	—	$	12,742
Investment securities		171,920		206		171,714		—		171,920
Loans		96,859		—		—		98,896		98,896
Accrued interest receivable		1,097		1,097		—		—		1,097
Financial liabilities:
Deposits		245,398		158,500		68,603		—		227,103
Federal funds purchased and repurchase agreements		17,731		17,731		—		—		17,731
Federal Home Loan Bank borrowings		3,562		—		3,997		—		3,997
Accrued interest payable		138		138		—		—		138
	December 31, 2012
	Carrying		Estimated Fair Value
(Amounts Expressed in Thousands)	Amount		Level I		Level II		Level III		Total
Financial assets:
Cash and cash equivalents	$	15,877	$	15,877	$	—	$	—	$	15,877
Investment securities		178,208		205		178,003		—		178,208
Loans held for sale		110		—		110		—		110
Loans		97,206		—		—		98,303		98,303
Accrued interest receivable		1,128		1,128		—		—		1,128
Financial liabilities:
Deposits		246,462		163,526		71,510		—		235,036
Federal funds purchased and repurchase agreements		18,767		18,767		—		—		18,767
Federal Home Loan Bank borrowings		3,606		—		4,199		—		4,199
Accrued interest payable		163		163		—		—		163

28

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

Table One

SELECTED FINANCIAL DATA (Dollars in thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,						Years ended December 31,
	2013			2012			2013			2012			2012			2011			2010
SUMMARY OF OPERATIONS
Total interest income	$	2,358		$	2,489		$	4,661		$	5,020		$	9,838		$	11,207		$	11,858
Total interest expense		377			458			764			946			1,789			2,229			3,056
Net interest income		1,981			2,031			3,897			4,074			8,049			8,978			8,802
Provision for loan losses		—			—			—			—			(248	)		600			220
Total other income		254			658			526			966			2,352			2,034			1,977
Total other expenses		1,890			1,929			3,781			3,833			7,604			7,626			7,723
Income before income taxes		345			760			642			1,207			3,045			2,786			2,836
Net income		414			670			796			1,140			2,538			2,454			2,339
PER SHARE DATA (1)
Net income	$	0.24		$	0.39		$	0.46		$	0.67		$	1.48		$	1.43		$	1.36
Cash dividends declared		0.19			0.18			0.38			0.37			0.73			0.73			0.70
Book value per share		18.39			20.50			18.39			20.50			20.77			20.09			18.10
AVERAGE BALANCE SHEET SUMMARY
Total loans, net	$	99,853		$	106,059		$	99,071		$	107,014		$	104,566		$	115,415		$	124,074
Investment securities		173,375			155,019			172,200			150,152			154,755			136,409			116,990
Deposits - interest bearing		215,122			208,169			213,971			207,881			208,308			204,616			198,042
Stockholders’ equity		32,487			31,412			32,492			31,347			31,608			30,498			29,415
Total assets		301,605			293,694			300,843			291,583			293,601			283,734			273,778
SELECTED RATIOS
Return on average assets		0.55	%		0.92	%		0.53	%		0.79	%		0.86	%		0.86	%		0.85	%
Return on average equity		5.11	%		8.58	%		4.94	%		7.31	%		8.03	%		8.05	%		7.95	%
Average equity to average assets		10.77	%		10.70	%		10.80	%		10.75	%		10.77	%		10.75	%		10.74	%
Dividend payout ratio (1)		79.17	%		46.15	%		82.61	%		55.22	%		49.32	%		51.05	%		51.47	%
Loan to Deposit ratio		40.36	%		44.09	%		40.36	%		44.09	%		40.33	%		45.75	%		53.12	%

	June 30,						December 31,
	2013			2012			2012			2011			2010
BALANCE SHEET
Investments	$	171,920		$	164,344			178,208		$	150,961		$	133,169
Loans		99,044			105,470			99,387			109,428			121,367
Allowance for loan losses		(2,185	)		(2,514	)		(2,181	)		(2,504	)		(2,059	)
Other assets		30,297			28,223			31,133			35,373			25,482
Total Assets	$	299,076		$	295,523			306,547		$	293,258		$	277,959
Deposits	$	245,398		$	239,236			246,462		$	239,177		$	228,475
Federal funds purchased and repurchase agreements		17,731			16,440			18,767			14,013			13,477
FHLB borrowings		3,562			3,650			3,606			3,693			3,776
Other liabilities		785			956			2,009			1,848			1,130
Stockholders’ equity		31,600			35,241			35,703			34,527			31,101
Total Liabilities and Stockholders’ equity	$	299,076		$	295,523			306,547		$	293,258		$	277,959

(1) Adjusted for the 4 percent common stock dividend to stockholders of record as of December 19, 2012 and the 4 percent common stock dividend to stockholders of record as of December 20, 2010.

29

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

The following discussion and analysis provides further detail to the financial condition and results of operations of the Company. The section should be read in conjunction with the notes and financial statements presented elsewhere in this report.

The Company’s critical accounting policies involving the significant judgments and assumptions used in the preparation of the Consolidated Financial Statements as of June 30, 2013 have remained unchanged from the disclosures presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 under the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Forward-Looking Information: Certain information contained in this report, which are not historical facts, may be forward-looking statements that involve risks and uncertainties. These statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including without limitation, the effect of changing economic conditions, changes in interest rates, changes in lending activities, changes in state and federal regulations, and other external factors which may materially impact the Company’s operational and financial performance. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements, including without limitation, the effect of changing regional and national economic conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to the parent company and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, the Securities and Exchange Commission, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform; competitive conditions in the financial services industry; rapidly changing technology affecting financial services, and/or other external developments materially impacting the Company’s operational and financial performance. The Company does not assume any duty to update forward-looking statements.

Critical Accounting Policies: The Company’s accounting policies are integral to understanding the results reported. The accounting policies are described in detail in Note 1 of the Consolidated Financial Statements. Our most complex accounting policies require management’s judgment to ascertain the valuation of assets, liabilities, commitments and contingencies. Detailed policies and control procedures have been established and are intended to ensure valuation methods are well controlled and applied consistently from period to period. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The following is a brief description of our current accounting policies involving significant management valuation judgments.

Other Than Temporary Impairment of Investment Securities: Investment securities are evaluated periodically to determine whether a decline in their value is other than temporary. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other than temporary. The term “other than temporary” is not intended to indicate that the decline is permanent. It indicates that the prospects for a near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the investment. Once a decline in value is determined to be other than temporary, the value of the security is reduced and a corresponding charge to earnings is recognized.

Allowance for Loan Losses: Arriving at an appropriate level of allowance for loan losses involves a high degree of judgment. The Company’s allowance for loan losses provides for probable losses based upon evaluations of known, and inherent risks in the loan portfolio. Management uses historical information to assess the adequacy of the allowance for loan losses as well as the prevailing business environment; as it is affected by changing economic conditions and various external factors, which may impact the portfolio in ways currently unforeseen. The allowance is increased by provisions for loan losses and by recoveries of loans previously charged-off and reduced by loans charged-off. For a full discussion of the Company’s methodology of assessing the adequacy of the reserve for loan losses, refer to Note 1 of the Consolidated Financial Statements.

Goodwill and Other Intangible Assets: As discussed in Note 1 of the notes to the Consolidated Financial Statements, the Company must assess goodwill and other intangible assets each year for impairment. This assessment involves estimating cash flows for future periods. If the future cash flows were less than the recorded goodwill and other intangible assets balances, we would be required to take a charge against earnings to write down the assets to the lower value.

Deferred Tax Assets: The Company uses an estimate of future earnings to support its position that the benefit of the deferred tax assets will be realized. If future income should prove non-existent or less than the amount of the deferred tax assets within the tax years to which they may be applied, the asset may not be realized and our net income will be reduced. The deferred tax assets are described further in Note 1 of the Consolidated Financial Statements.

OVERVIEW

The Company reported net income of $795,752 or $.46 per share for the six months ended June 30, 2013 compared to $1,140,034 or $.67 per share for the same period during 2012. The decrease in net income for the six months ended June 30, 2013 as compared to the same period in 2012 of $344,282 or 30.2% was primarily the result of the decrease in net interest income and noninterest income, offset in part by the decrease in noninterest expense and income tax expense. Net interest income decreased $176,852 or 4.3%, primarily due to the decrease in the interest earned on investment securities and in the interest and fees earned on loans, offset in part by the decrease in the interest expense paid on interest bearing liabilities. Noninterest income decreased $439,910 or 45.5% primarily due to the decrease in the net gains on sales of investment securities combined with the decrease in other operating income and in service charges and fees earned on deposit accounts. Noninterest expenses decreased $51,627 or 1.4% during the six month period ended June 30, 2013 as compared to the same period in 2012 primarily due to the decreases in salary and employee benefits expenses and other operating expenses, offset in part by the increase in occupancy expenses. The ROA was .53% for the six months ended June 30, 2013 as compared to .79% for the same period of the prior year. For the six months ended June 30, 2013 compared to June 30, 2012, the ROE was 4.94% and 7.31%, respectively.

30

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

For the second quarter of 2013, net income was $414,415 or $.24 per share as compared to $670,034 or $.39 per share for the same period in 2012. The decrease in net income for the three months ended June 30, 2013 as compared to the same period in 2012 of $255,619 or 38.2% was primarily the result of the decrease in net interest income and noninterest income, offset in part by the decrease in noninterest expense and income tax expense. Net interest income decreased $49,597 or 2.4% primarily due to the decrease in the interest earned on investment securities and in the interest and fees earned on loans, offset in part by the decrease in the interest expense paid on interest bearing liabilities. Noninterest income decreased $404,180 or 61.4% for the three months ended June 30, 2013 as compared to the same period of the prior year primarily due to the decrease in the net gains on sales of investment securities combined with the decrease in other operating income and in service charges and fees earned on deposit accounts. Noninterest expense decreased $39,138 or 2.0% during the three month period ended June 30, 2013 as compared to the same period in 2012 primarily due to the decreases in salary and employee benefits and other operating expenses offset in part by the increase in occupancy expenses.

The sections that follow discuss in more detail the information contained in the summary of Selected Financial Data of the Company.

EARNINGS ANALYSIS - For the six months ended June 30, 2013

Net Interest Income

Net interest income, which is the primary source of earnings for the Company, is the difference between interest earned on loans and investments and interest paid on deposits and other liabilities. Changes in the volume and mix of earning assets and interest bearing liabilities combined with changes in market rates of interest greatly effect net interest income. Table Two presents the average balance sheets and an interest rate analysis for the six months ended June 30, 2013 and 2012.

For the six months ended June 30, 2013, net interest income was $3,896,926, a decrease of $176,852 or 4.3%, from the same period in 2012. Net interest income declined primarily due to the decrease in the taxable equivalent net yield on earning assets offset in part by the increase in average volume of earning assets. The taxable equivalent net yield on earning assets decreased from 3.54% at June 30, 2012 to 3.33% at June 30, 2013. The average earning assets increased approximately $8.2 million or 3.0% from June 30, 2012 to 2013.

Interest income on investment securities during the first six months of 2013 fell $103,402 or 4.9% as compared to the same period of the prior year. The decrease in interest income on investment securities during the first six months of 2013 was primarily due to the decline in the yields earned which was partially offset by a rise in the average volume. The taxable equivalent yield on investment securities fell 36 basis points in 2013, from 3.44% at December 31, 2012 to 3.08% at June 30, 2013 and decreased 52 basis points from June 30, 2012. The average volume of investment securities have increased approximately $17.4 million or 11.3% since December 31, 2012.

Interest and fees on loans decreased $252,166 or 8.8%, from the same period in 2012 primarily due to the decrease in the average loan volume combined with the decline in the average yield on loans. The average loan volume decreased approximately $5.5 million or 5.3% since December 31, 2012. The taxable equivalent yield on loans fell 6 basis points in 2013 from 5.68% at December 31, 2012 to 5.62% at June 30, 2013 and fell 9 basis points from June 30, 2012.

During the six months ended June 30, 2013, interest expense declined $182,787 or 19.3% as compared to the same period in 2012. The decrease in the average yield paid on interest bearing liabilities, partially offset by an increase in the average volume of interest bearing liabilities primarily contributed to the decrease in interest expense during the six month period ended June 30, 2013. The average yield paid on interest bearing liabilities fell 12 basis points from .78% at December 31, 2012 to .66% at June 30, 2013 and decreased 18 basis points since June 30, 2012. The average volume of interest bearing liabilities increased approximately $5.7 million or 2.5% since December 31, 2012.

Noninterest Income

Noninterest income decreased $439,910 or 45.5% for the six months ended June 30, 2013 as compared to same period of the prior year. The decrease in noninterest income was primarily due to the decrease in the net gains on sales of investment securities combined with the decrease in other operating income and service charges and other fee income.

The net gains on investment securities decreased $340,029 or 99.3% for the six month period ended June 30, 2013 as compared to the same period in 2012. The Company’s subsidiary bank sold approximately $9.6 million of mortgage-backed investment securities during the second quarter of 2012 in order to reinvest into mortgage backed investment securities with a slower more stable cash flow for the current market interest rate environment. The Company accounted for securities gains of $2,268 and securities losses of $18 during the six month period ended June 30, 2013 and securities gains of $342,594 and securities losses of $315 during the six month period ended June 30, 2012.

Other operating income represents fees from safe deposit box rentals, sales of checkbooks, sales of cashiers’ checks and money orders, utility collections, ATM charges and card fees, home equity credit line fees, credit life commissions, credit card fees and commissions and various other charges and fees related to normal customer banking relationships. For the six month period ended June 30, 2013, other operating income decreased $65,171 or 16.4% compared to the same period in 2012. The decrease in other operating income was primarily due to decreases in ATM fees, FHLB fee income, and checkbook income, offset in part by increases in other miscellaneous income. There was also a gain on sale of other real estate owned during the six months ended June 30, 2012.

Service charges and other fees represent charges that are earned from assessments made on checking and savings accounts. Service charges and other fee income fell $34,710 in the first six months of 2013 as compared to the same period in 2012, down 15.3%, from 2012.

31

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

Table Two Average Balance Sheets and Interest Rate Analysis (dollars in thousands)

The following table presents an average balance sheet, interest earned on interest bearing assets, interest paid on interest bearing liabilities, average interest rates and interest differentials for the six months ended June 30, 2013 and 2012. Average balance sheet information for the periods ended June 30, 2013 and 2012 was compiled using the daily averages. Loan fees and unearned discounts were included in income for average rate calculation purposes. Average yields on investment securities available for sale have been calculated based on amortized cost. Non-accrual loans were included in the average balance computations; however, no interest was included in income subsequent to the non-accrual status classification.

	For the six months ended								For the six months ended
	June 30, 2013								June 30, 2012
	Average Volume			Interest		Average Rate			Average Volume			Interest		Average Rate
ASSETS:
Investment securities:
U.S. Treasury and U. S. Government agencies	$	44,672		$	387		1.75	%	$	35,914		$	354		1.98	%
Mortgage backed securities		77,387			693		1.81	%		70,913			904		2.56	%
States and political subdivisions		49,956			929		3.75	%		43,211			856		3.98	%
Other securities		185			3		3.27	%		114			1		1.76	%
Total Investment securities:		172,200			2,012		2.36	%		150,152			2,115		2.83	%
Interest bearing deposits		8,598			13		0.30	%		14,561			18		0.25	%
Loans, net of unearned income		99,071			2,627		5.35	%		107,014			2,879		5.41	%
Other earning assets		1,328			9		1.37	%		1,239			8		1.30	%
Total earning assets		281,197			4,661		3.34	%		272,966			5,020		3.70	%
Other assets		21,829								21,120
Allowance for loan losses		(2,183	)							(2,503	)
Total Assets	$	300,843							$	291,583
LIABILITIES
Time deposits	$	69,878		$	429		1.24	%	$	73,275		$	612		1.68	%
Savings deposits		96,669			159		0.33	%		89,727			164		0.37	%
Interest bearing demand deposits		47,424			28		0.12	%		44,879			27		0.12	%
Federal funds purchased and repurchase agreements		17,491			63		0.73	%		16,184			56		0.70	%
FHLB and other long-term borrowings		3,605			85		4.75	%		3,671			87		4.77	%
Total interest bearing liabilities		235,067			764		0.66	%		227,736			946		0.84	%
Demand deposits		32,594								31,502
Other liabilities		690								998
Total Liabilities		268,351								260,236
STOCKHOLDERS’ EQUITY		32,492								31,347
Total Liabilities and Stockholders’ Equity	$	300,843							$	291,583
Net yield on earning assets				$	3,897		2.79	%				$	4,074		3.00	%

The fully taxable equivalent basis of interest income from obligations of states and political subdivisions has been determined using a combined Federal and State corporate income tax rate of 40% for the six months ended June 30, 2013 and 2012, respectively. The effect of this adjustment is presented below.

Investment securities	$	172,200	$	2,632	3.08	%	$	150,152	$	2,686	3.60	%
Loans		99,071		2,760	5.62	%		107,014		3,039	5.71	%
Total earning assets	$	281,197	$	5,414	3.88	%	$	272,966	$	5,751	4.24	%
Taxable equivalent net yield on earning assets			$	4,650	3.33	%			$	4,805	3.54	%

32

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

EARNINGS ANALYSIS - For the six months ended June 30, 2013 (continued)

Noninterest Expense

Noninterest expense decreased $51,627 or 1.3% for the six months ended June 30, 2013 as compared to the same period of the prior year. The decrease in noninterest expense was primarily due to the decreases in salary and employee benefits expenses and in other operating expenses, offset in part by the increase in occupancy expenses.

Net occupancy expenses of premises increased $45,892 or 6.1% during the six months ended June 30, 2013 compared to the same period in 2012. Increases in land lease expenses, depreciation expenses, banking house expenses, utilities, and furniture and fixtures expenses, offset in part by the decline in real estate taxes and building lease expenses contributed to the increase in occupancy expenses in 2013 as compared to 2012.

Other operating expenses for the six months ended June 30 included the following:

	2013		2012		Net Increase (Decrease)			Percent Increase (Decrease)
Directors’ fees	$	47,750	$	54,350	$	(6,600	)		(12.1	)%
Stationery and supplies		71,981		76,165		(4,184	)		(5.5	)%
Regulatory assessment and deposit insurance		135,588		135,577		11			0.0	%
Advertising		98,396		107,073		(8,677	)		(8.1	)%
Postage and transportation		88,801		85,618		3,183			3.7	%
Other taxes		90,142		101,052		(10,910	)		(10.8	)%
Service expense		219,279		221,450		(2,171	)		(1.0	)%
Other		395,226		436,654		(41,428	)		(9.5	)%
Total	$	1,147,163	$	1,217,939	$	(70,776	)		(5.8	)%

The decrease in other expenses was primarily due to a loss of $27,000 on the sale of other real estate owned that occurred during the six months ended June 30, 2012.

Salary and employee benefits expenses fell $26,743 or 1.4% during the six months ended June 30, 2013 over the same period in 2012. Salary and employee benefit expense in 2013 compared to 2012 decreased primarily as a result of a reduction in salary expenses and payroll taxes.

Income Taxes

Income tax benefit for the six month period ended June 30, 2013 was $153,570, decreasing $220,853 or 328.2% compared to the same period in 2012. The decrease in income tax expense was primarily due to the decrease in pre-taxable income offset in part by the increase in tax-exempt income during the first six months of 2013 over the same period in 2012. Components of the income tax benefit for June 30, 2013 were $175,738 for federal tax benefit and $22,168 for West Virginia corporate net income tax expense. Federal income tax rates remain consistent at 34% for the six months ended June 30, 2013 and 2012 and for the year ended December 31, 2012. West Virginia corporate net income tax rates were 7.75% in 2013 and 2012.

33

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

Table Three Average Balance Sheets and Interest Rate Analysis (dollars in thousands)

The following table presents an average balance sheet, interest earned on interest bearing assets, interest paid on interest bearing liabilities, average interest rates and interest differentials for the three months ended June 30, 2013 and 2012. Average balance sheet information for the periods ended June 30, 2013 and 2012 was compiled using the daily averages. Loan fees and unearned discounts were included in income for average rate calculation purposes. Average yields on investment securities available for sale have been calculated based on amortized cost. Non-accrual loans were included in the average balance computations; however, no interest was included in income subsequent to the non-accrual status classification. Average rates were annualized for the three month periods ended June 30, 2013 and 2012.

	For the three months ended								For the three months ended
	June 30, 2013								June 30, 2012
	Average Volume			Interest		Average Rate			Average Volume			Interest		Average Rate
ASSETS:
Investment securities:
U.S. Treasury and other U. S. Government agencies	$	43,378		$	185		1.71	%	$	36,897		$	173		1.89	%
Mortgage backed securities		78,407			348		1.78	%		73,576			453		2.48	%
Obligations of states and political subdivisions		51,407			474		3.70	%		44,435			436		3.95	%
Other securities		183			1		2.19	%		111			1		3.62	%
Total Investment securities:		173,375			1,008		2.33	%		155,019			1,063		2.76	%
Interest bearing deposits		7,596			6		0.32	%		13,316			9		0.27	%
Loans, net of unearned income		99,853			1,339		5.38	%		106,059			1,413		5.36	%
Other earning assets		1,321			5		1.52	%		1,252			4		1.29	%
Total earning assets		282,145			2,358		3.35	%		275,646			2,489		3.63	%
Other assets		21,643								20,551
Allowance for loan losses		(2,183	)							(2,503	)
Total Assets	$	301,605							$	293,694
LIABILITIES
Time deposits	$	69,200		$	206		1.19	%	$	72,736		$	295		1.63	%
Savings deposits		99,246			82		0.33	%		90,774			78		0.35	%
Interest bearing demand deposits		46,676			13		0.11	%		44,659			13		0.12	%
Federal funds purchased and repurchase agreements		17,287			32		0.74	%		16,955			29		0.69	%
FHLB and other long-term borrowings		3,572			43		4.83	%		3,660			43		4.73	%
Total interest bearing liabilities		235,981			376		0.64	%		228,784			458		0.81	%
Demand deposits		32,598								32,576
Other liabilities		539								922
Total Liabilities		269,118								262,282
STOCKHOLDERS’ EQUITY		32,487								31,412
Total Liabilities and Stockholders’ Equity	$	301,605							$	293,694
Net yield on earning assets				$	1,982		2.82	%				$	2,031		2.96	%

The fully taxable equivalent basis of interest income from obligations of states and political subdivisions has been determined using a combined Federal and State corporate income tax rate of 40% for the three months ended June 30, 2013 and 2012, respectively. The effect of this adjustment is presented below.

Investment securities	$	173,375	$	1,324	3.06	%	$	155,019	$	1,354	3.51	%
Loans		99,853		1,404	5.64	%		106,059		1,491	5.65	%
Total earning assets	$	282,145	$	2,739	3.89	%	$	275,646	$	2,858	4.17	%
Taxable equivalent net yield on earning assets			$	2,363	3.36	%			$	2,400	3.50	%

34

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

EARNINGS ANALYSIS - For the three months ended June 30, 2013

Net Interest Income

For the three months ended June 30, 2013, net interest income was $1,981,357, decreasing $49,597 or 2.4%, from the same period in 2012. The decrease in net interest income was primarily due to the decrease in the interest earned on loans combined with the decrease in the interest earned on investment securities, offset in part by the decrease in the interest paid on interest bearing liabilities. The taxable equivalent net yield on earning assets decreased from 3.50% at June 30, 2012 to 3.36% at June 30, 2013. Table Three presents the average balance sheets and an interest rate analysis for three months ended June 30, 2013 and 2012.

Interest and fees on loans decreased $73,769 or 5.2% for the three month period ended June 30, 2013 as compared to the same period in 2012 due to the decline in the average volume of loans combined with the decrease in the average yield on loans. The average loan volume decreased approximately $4.7 million or 4.5% since December 31, 2012. The taxable equivalent yield on loans fell 28 basis points, to 5.64% at June 30, 2013 from 5.68% at December 31, 2012.

Interest income on investment securities decreased $55,138 or 5.2% during the second quarter of 2013 compared to the same period of the prior year. The decrease in interest income on investment securities was primarily due to the decline in the yield earned, offset in part by the rise in the average volume. The investment portfolio increased with the average volume increasing approximately $18.6 million or 12.0% since December 31, 2012 and $18.4 million or 11.8% since June 30, 2012. The taxable equivalent yield earned on investment securities declined 45 basis points, to 3.06% for the three months ended June 30, 2013 as compared to 3.51% for the same period in 2012.

Interest expense paid on interest bearing liabilities fell $81,359 or 17.8% during the three months ended June 30, 2013 as compared to the same period in 2012. The decrease in interest expense was primarily due to the decline in the average yield paid on interest bearing liabilities, which was offset in part by an increase in average balances of interest bearing liabilities. The average yield paid on interest bearing liabilities was down 17 basis points, from .81% at June 30, 2012 to .64% at June 30, 2013. The average volume of interest bearing liabilities rose approximately $7.2 million or 3.1%, from June 30, 2012 to June 30, 2013 primarily due to an increase in the balances maintained in savings deposits, repurchase agreements, and interest bearing demand deposits, offset in part by the decline in time deposits and Federal Home Loan Bank borrowings.

Noninterest Income

Noninterest income decreased $404,180 or 61.4% for the three months ended June 30, 2013 as compared to same period of the prior year. The decrease in noninterest income was primarily due to the decrease in the net gains on sales of investment securities combined with the decrease in other operating income and service charges and other fee income.

The net gains on investment securities decreased $340,043 or 99.3% for the three month period ended June 30, 2013 as compared to the same period in 2012. The Company’s subsidiary bank sold approximately $9.6 million of mortgage-backed investment securities during the second quarter of 2012 in order to reinvest into mortgage-backed investment securities with a slower more stable cash flow for the current market interest rate environment. The Company accounted for securities gains of $2,254 and securities losses of $18 during the three month period ended June 30, 2013 and securities gains of $342,297 and securities losses of $18 during the three month period ended June 30, 2012.

During the second quarter of 2013, other operating income decreased $41,678 or 20.9% as compared to same period of the prior year. The decrease in other operating income during the three month period ended June 30, 2013 as compared to the same period in the prior year was primarily due to decreases in the gain on the sale of other real estate owned property, ATM fees, FHLB fee income, checkbook income and other miscellaneous income, offset in part by increases in filing fee income, credit card fees and earnings related to the cash surrender value of bank owned life insurance.

Noninterest Expense

Noninterest expense decreased $39,138 or 2.0% for the three months ended June 30, 2013 as compared to the same period of the prior year. The decrease in noninterest expense was primarily due to the decreases in salary and employee benefits expenses and in other operating expenses, offset in part by the increase in occupancy expenses.

Net occupancy expenses of premises increased $30,851 or 8.4% during the three months ended June 30, 2013 compared to the same period in 2012. The increase in net occupancy expenses in 2013 as compared to 2012 was primarily due to an increase in depreciation expenses, banking house expenses, and furniture and fixtures expenses, offset in part by the decline in real estate taxes, building lease expenses, and utilities.

Salary and employee benefits expenses fell $16,558 or 1.8% during the three months ended June 30, 2013 over the same period in 2012. Salary and employee benefit expense in 2013 compared to 2012 decreased primarily as a result of a reduction in payroll taxes and employee benefits expenses, offset in part by an increase in salary expenses.

35

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

EARNINGS ANALYSIS - For the three months ended June 30, 2013 (continued)

Noninterest Expense - (continued)

Other operating expenses for the three months ended June 30 included the following:

	2013		2012		Net Increase (Decrease)			Percent Increase (Decrease)
Directors’ fees	$	22,600	$	24,750	$	(2,150	)		(8.7	)%
Stationery and supplies		36,911		39,122		(2,211	)		(5.7	)%
Regulatory assessment and deposit insurance		66,272		67,001		(729	)		(1.1	)%
Advertising		59,719		57,144		2,575			4.5	%
Postage and transportation		43,688		45,378		(1,690	)		(3.7	)%
Other taxes		44,515		54,697		(10,182	)		(18.6	)%
Service expense		109,443		130,416		(20,973	)		(16.1	)%
Other		197,020		215,091		(18,071	)		(8.4	)%
Total	$	580,168	$	633,599	$	(53,431	)		(8.4	)%

Income Taxes

Income tax benefit for the three month period ended June 30, 2013 was $69,454, decreasing $159,020 or 177.5% compared to the same period in 2012. The decrease in income tax expense was primarily due to the decrease in pre-taxable income of $414,639 offset in part by the increase in tax-exempt income during the three month period ended June 30, 2013 over the same period in 2012.

Balance Sheet Analysis

Investments

Investment securities decreased approximately $6.3 million or 3.5% from December 31, 2012 to June 30, 2013. The investment portfolio is managed to attempt to achieve an optimum mix of asset quality, liquidity and maximum yield on investment. The investment portfolio consists of U.S. Government agency and corporation securities, obligations of states and political subdivisions, corporate debt securities, mortgage-backed securities and equity securities. Taxable securities comprised 69.2% of total securities at June 30, 2013, as compared to 70.8% at December 31, 2012. Other than the normal risks inherent in purchasing U.S. Government agency and corporation securities, corporate debt securities, mortgage-backed securities and obligations of states and political subdivisions, i.e., interest rate risk, management has no knowledge of other market risk involved in these investments. The Company does not have any high risk hybrid/derivative instruments.

Investment securities that are classified available for sale are available for sale at any time based upon management’s assessment of changes in economic or financial market conditions. These securities are carried at fair value and the unrealized holding gains and losses, net of taxes, are reflected as a separate component of stockholders’ equity until realized. Available for sale securities, at fair value, represented 100% of the investment portfolio at June 30, 2013 and December 31, 2012. The decrease in the available for sale securities was primarily due to the decline in market value of the securities. The Company did not have any investment securities classified as held to maturity securities at June 30, 2013 and December 31, 2012. As the investment portfolio consists primarily of fixed rate debt securities, changes in the market rates of interest will affect the carrying value of securities available for sale, adjusted upward or downward and represent temporary adjustments in value. The carrying values of securities available for sale was below amortized cost by $1,789,708 at June 30, 2013 and was above amortized cost by $5,017,577 at December 31, 2012, respectively.

Loans

Total loans, net of unearned income, declined $343,197 or .3% from December 31, 2012 to June 30, 2013. The decrease in total loans in 2013 was primarily due to the decreases in consumer loans, and commercial and other loans which decreased $1,124,000 and $918,000, respectively, offset in part by the increase in consumer and commercial real estate which increased $852,000 and $850,000, respectively. The decline in consumer loans was primarily due to the decline in installment loans to individuals as well as a decline in credit cards. Commercial and other loans declined during 2013 primarily in non-rated industrial development obligations, offset in part by an increase in commercial and industrial loans. The increase in consumer real estate loans during the first six months of 2013 was primarily in residential real estate loans and home equity lines of credit, offset in part by declines in construction, farmland, and home equity loans. The increase in commercial real estate loans during 2013 was primarily due to an increase in multifamily residential loans, offset in part by a decline in non-farm, non-residential loans.

Commercial real estate loans which include real estate loans secured by non-farm, non-residential properties and multi-family residential property loans comprised fifty-one percent (51%) of the loan portfolio. Consumer real estate loans which include construction, farmland, real estate residential loans, and home equity loans comprised thirty percent (30%) of the loan portfolio. Commercial and other loans which include commercial and industrial loans and non-rated industrial development obligations comprised fifteen percent (15%) of the loan portfolio. Consumer loans which include installment and other loans to individuals and credit cards comprised four percent (4%) of the loan portfolio. The changes in the composition of the loan portfolio from December 31, 2012 to June 30, 2013 were a 1% increase in consumer real estate loans, a 1% increase in commercial real estate loans, a 1% decrease in consumer loans and a 1% decrease in commercial and other loans.

36

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

Maturities and sensitivities of Loans to Changes in Interest Rates

The following table presents the contractual maturities of loans other than installment loans and residential mortgages as of June 30, 2013 and December 31, 2012:

	(Unaudited)						(Unaudited)
(dollars in thousands)	June 30, 2013						December 31, 2012
	In One Year or Less		After One Year Through Five Years		After Five Years		In One Year or Less		After One Year Through Five Years		After Five Years
Construction	$	247	$	77	$	108	$	5	$	615	$	110
Commercial real estate - nonfarm, nonresidential property		2,616		4,739		33,533		2,802		2,829		35,533
Commercial		1,074		3,191		1,536		634		3,314		1,678
Nonrated industrial development obligations		1,025		1,634		6,194		665		2,762		6,527
Total	$	4,962	$	9,641	$	41,371	$	4,106	$	9,520	$	43,848

The following table presents an analysis of fixed and variable rate loans as of June 30, 2013 and December 31, 2012 along with the contractual maturities of loans other than installment loans and residential mortgages:

	(Unaudited)						(Unaudited)
(dollars in thousands)	June 30, 2013						December 31, 2012
	In One Year or Less		After One Year Through Five Years		After Five Years		In One Year or Less		After One Year Through Five Years		After Five Years
Fixed Rates	$	4,168	$	6,963	$	6,673	$	3,545	$	6,068	$	8,851
Variable Rates		794		2,678		34,698		561		3,452		34,997
Total	$	4,962	$	9,641	$	41,371	$	4,106	$	9,520	$	43,848

Loans Held for Sale

The Company has entered into an agreement with the Federal Home Loan Bank of Pittsburgh (“FHLB”) under which the bank may sell conforming one-to-four family residential mortgage loans to the FHLB. The agreement provides for a maximum commitment of $5,000,000. Loans sold to the FHLB are sold with limited recourse or credit risk based upon utilization of the original commitment. The bank also maintains the servicing of these loans, for which it is paid a servicing fee. The total amount of loans sold under this agreement was $9,869,132 and $10,267,649 as of June 30, 2013 and December 31, 2012, respectively. The loans which were sold were also subject to a recourse obligation or credit risk in the amount of $342,873 and $346,249 at June 30, 2013 and December 31, 2012, respectively.

Non-performing Loans

Non-performing assets include non-accrual loans on which the collectibility of the full amount of interest is uncertain; loans which have been renegotiated to provide for a reduction or deferral of interest on principal because of a deterioration in the financial position of the borrower; loans past due ninety days or more as to principal or interest; and other real estate owned. A summary of nonperforming assets is presented in the following table. Total non-performing loans were $3,299,000 at June 30, 2013 as compared to $3,551,000 at December 31, 2012. The decline in non-performing loans in 2013 was primarily due to decreases in non-accrual loans.

37

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

Non-performing Loans (Continued)

Risk Elements

Loans which are in the process of collection, but are contractually past due 90 days or more as to interest or principal, renegotiated, non-accrual loans and other real estate are as follows:

(dollars in thousands)	June 30,			December 31,
	2013			2012			2011			2010			2009
Past Due 90 Days or More, still accruing:
Commercial and Other Loans	$	—		$	—		$	—		$	—		$	—
Commercial real estate		—			—			—			—			—
Consumer real estate		—			—			—			28			—
Consumer		1			—			—			—			—
		1			—			—			28			—
Non-accrual:
Commercial and Other Loans	$	28		$	31		$	39		$	54		$	2,254
Commercial real estate		2,896			3,115			3,533			4,147			1,195
Consumer real estate		365			388			447			688			624
Consumer		9			17			27			14			19
	$	3,298		$	3,551		$	4,046		$	4,903		$	4,092
Other Real Estate	$	—		$	—		$	138		$	8		$	173
Total non-performing assets	$	3,299		$	3,551		$	4,184		$	4,939		$	4,265
Total non-performing assets to total loans and other real estate		3.33	%		3.57	%		3.82	%		4.07	%		3.31	%

Loans are placed in non-accrual when the principal or interest is past due 90 days or more, unless the loan is both well secured and in the process of collection. Non-accrual loans were $3,298,000 or 3.3% of total loans outstanding as of June 30, 2013, as compared to $3,551,000 or 3.6% of total loans outstanding as of December 31, 2012. Non-accrual loans decreased in 2013 primarily from loan payments. Management continues to monitor the nonperforming assets to ensure against deterioration in collateral values.

Allowance for Loan Losses

In all lending activities there is an inherent risk that borrowers will be unable to repay their obligations. The Company maintains an allowance for loan losses to absorb probable loan losses. The Company has historically maintained the allowance for loan losses at a level greater than actual charge-offs. Although a subjective evaluation is determined by management, the Company believes it has appropriately assessed the risk of loans in the loan portfolio and has provided for an allowance which is adequate based on that assessment. Because the allowance is an estimate, any change in the economic conditions of the Company’s market area could result in new estimates which could affect the Company’s earnings. Management monitors the quality of the loan portfolio through reviews of past due loans and all significant loans which are considered to be potential problem loans on a monthly basis. The internal loan review function provides for an independent review of commercial, real estate, and installment loans in order to measure the asset quality of the portfolio. Management’s review of the loan portfolio has not indicated any material loans, not disclosed in the accompanying tables and discussions which are known to have possible credit problems that cause management to have serious doubts as to the ability of each borrower to comply with their present loan repayment terms. The allowance for loan losses increased $3,335 or .2%, since December 31, 2012. The allowance for loan losses represented 2.2% of outstanding loans as of June 30, 2013 and at December 31, 2012. Charge-offs amounted to $5,469 and recoveries were $8,804 for the six month period ended June 30, 2013. There was no provision made to the allowance for loan losses during the six months ended June 30, 2013 and 2012.

The additions and deletions to the allowance for loan losses are based on management’s evaluation of characteristics of the loan portfolio, current and anticipated economic conditions, past loan experiences, net loans charged-off, specific problem loans and delinquencies, and other factors. The Company has allocated the allowance for possible loan losses to specific portfolio segments based upon historical net charge-off experience, changes in the level of nonperforming assets, local economic conditions and management’s experience as presented in the following table.

38

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

Allowance for Loan Losses (Continued)

Table Seven - Analysis of Allowance for Possible Loan Losses

The following table presents a summary of loans charged off and recoveries of loans previously charged off by type of loan.

(dollars in thousands)	June 30,			December 31,
	2013			2012			2011			2010			2009
Allowance for loan losses:
Balance at beginning of period:	$	2,181		$	2,504		$	2,059		$	1,894		$	1,923
Loans Charged off:
Commercial and Other loans		—			—			8			14			10
Commercial real estate		—			87			156			—			155
Consumer real estate		—			—			28			—			—
Consumer		5			9			19			51			66
Total		5			96			211			65			231
Recoveries:
Commercial and Other loans		—			—			2			1			11
Commercial real estate		—			15			45			—			—
Consumer real estate		—			—			—			—			—
Consumer		9			6			9			9			7
Total		9			21			56			10			18
Net Charge-offs (recoveries)		(4	)		75			155			55			213
Additions Charged to Operations		—			(248	)		600			220			184
Balance at end of period:	$	2,185		$	2,181		$	2,504		$	2,059		$	1,894
Average Loans Outstanding	$	99,071		$	104,566		$	115,415		$	124,074		$	128,206
Ratio of net charge-offs to Average loans outstanding for the period		0.00	%		0.07	%		0.13	%		0.04	%		0.17	%
Ratio of the Allowance for Loan Losses to Loans Outstanding for the period		2.21	%		2.19	%		2.29	%		1.70	%		1.47	%

The following table presents an allocation of the allowance for possible loan losses at June 30, 2013 and each of the four year periods ended December 31, 2012. The allocation presented below is based on the historical average of net charge offs per category combined with the change in loan growth and management’s review of the loan portfolio.

	June 30,					December 31,
	2013					2012					2011					2010					2009
(dollars in thousands)	Amount		Percent of loans in each category to total loans			Amount		Percent of loans in each category to total loans			Amount		Percent of loans in each category to total loans			Amount		Percent of loans in each category to total loans			Amount		Percent of loans in each category to total loans
Commercial and other loans	$	179		14.8	%	$	179		15.7	%	$	179		14.6	%	$	212		16.9	%	$	203		16.1	%
Commercial real estate		1,762		51.5	%		1,762		50.4	%		2,082		51.5	%		1,511		46.5	%		1,345		45.5	%
Consumer real estate		193		29.6	%		193		28.6	%		193		27.4	%		272		28.1	%		267		28.2	%
Consumer		51		4.1	%		47		5.3	%		50		6.5	%		64		8.5	%		79		10.2	%
Total	$	2,185		100.0	%	$	2,181		100.0	%	$	2,504		100.0	%	$	2,059		100.0	%	$	1,894		100.0	%

39

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

Other Assets

Other assets increased approximately $2.1 million during the six month period ended June 30, 2013 primarily due to the change in the deferred tax position from a liability to an asset.

Deposits

A stable core deposit base is the major source of funds for the Company’s subsidiary bank. The deposit mix depends upon many factors including competition from other financial institutions, depositor interest in certain types of deposits, changes in the interest rate and the Company’s need for certain types of deposit growth. Total deposits decreased approximately $1,063,530 during the first six months of 2013. Since year end the decrease in total deposits was primarily due to decreases in noninterest bearing demand deposits, interest bearing demand deposits and certificates of deposit which fell approximately $1.3 million, $3.1 million and $2.5 million, respectively, offset in part by an increase in savings deposits of $5.8 million. At June 30, 2013, noninterest bearing deposits comprised 13% of total deposits and interest bearing deposits which include NOW, money market, savings and time deposits comprised 87% of total deposits. The changes in the composition of the deposit mix since December 31, 2012 were a 1% decrease in noninterest bearing deposits and a 1% increase in interest bearing deposits.

Federal Funds Purchased and Repurchase Agreements

Federal funds purchased and repurchase agreements represent borrowings of a short duration, usually less than 30 days. For repurchase agreements, the securities underlying the agreements remained under the Bank’s control. There were no Federal funds purchased at June 30, 2013. Federal funds purchased were $2,000,000 at December 31, 2012. Repurchase agreements increased $964,653 or 5.8%, from December 31, 2012 to June 30, 2013. The increase in repurchase agreements since year end was primarily due to the increase in the balances maintained by existing commercial customers.

Other Liabilities

Other liabilities decreased approximately $1.2 million during the six month period ended June 30, 2013 primarily due to investment purchases recorded based on trade dates and the change in the deferred tax position from a liability to an asset.

Capital Resources

Stockholders’ equity decreased 11.5% during the six month period ended June 30, 2013 and was primarily due to the 11.9% decrease in accumulated other comprehensive income and the .4% increase from current earnings after quarterly dividends. The decrease in accumulated other comprehensive income is primarily attributable to the effect of the change in the net unrealized gains (losses) on securities available for sale. Stockholders’ equity amounted to 10.6% and 11.6% of total assets at June 30, 2013 and December 31, 2012, respectively. The Company paid dividends of $.38 and $.37 per share during the six month periods ended June 30, 2013 and June 30, 2012, respectively. The Company paid dividends of $.19 and $.18 per share during the three month periods ended June 30, 2013 and June 30, 2012, respectively.

The Company’s primary source of funds for payment of dividends to shareholders is from the dividends from its subsidiary bank. The approval of the Comptroller of the Currency is required to pay dividends if the total of all dividends declared by a national bank in any calendar year exceeds the total of its net profits (as defined) for the year, combined with its retained net profits of the preceding two years. Under this formula, the Company’s subsidiary bank can declare dividends in 2013, without approval of the Comptroller of the Currency, of approximately $2,552,000, plus an additional amount equal to the bank’s net profit for 2013 up to the date of any such dividend declaration.

40

First West Virginia Bancorp, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Holding Company Operations

Liquidity

Liquidity management ensures that funds are available to meet loan commitments, deposit withdrawals, and operating expenses. Funds are provided by loan repayments, investment securities maturities, or deposits, and can be raised by liquidating assets or through additional borrowings. The Company had investment securities with an estimated fair value of $171,920,470 classified as available for sale at June 30, 2013. These securities are available for sale at any time based upon management’s assessment in order to provide necessary liquidity should the need arise. The fair value of temporarily impaired investment securities that the company has the intent and ability to hold until the anticipated recovery in market value is $105,404,000. In addition, the Company’s subsidiary bank, Progressive Bank, N.A., is a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”). Membership in the FHLB provides an additional source of funding in the form of collateralized advances. The remaining maximum borrowing capacity with the FHLB at June 30, 2013 was approximately $36.9 million subject to the purchase of additional FHLB stock. The subsidiary bank had short term lines of credit in the aggregate amount of approximately $19.4 million and $7 million available with the FHLB at June 30, 2013 and December 31, 2012, respectively. There were no short term borrowings outstanding pursuant to these agreements as of June 30, 2013 and December 31, 2012. The subsidiary Bank also has an agreement with a financial institution for an available line of credit in the amount of $4,000,000 to be used for federal funds borrowings. There were no borrowings outstanding related to this agreement as of June 30, 2013 and December 31, 2012. The subsidiary bank also has pledged investment securities in the amount of $17.7 million to secure the ability to borrow from the Federal Reserve discount window should the need arise. There were no borrowings outstanding from the Federal Reserve as of June 30, 2013. At June 30, 2013 and December 31, 2012, the Company had outstanding loan commitments and unused lines of credit totaling $13,955,000 and $20,723,000, respectively. As of June 30, 2013, management placed a high probability for required funding within one year of approximately $6.0 million. Approximately $7.2 million is principally unused home equity and credit card lines on which management places a low probability for required funding.

41

FIRST WEST VIRGINIA BANCORP, INC.

PART I

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company’s subsidiary bank uses an asset/liability model to measure the impact of changes in interest rates on net interest income on a periodic basis. Assumptions are made to simulate the impact of future changes in interest rates and/or changes in balance sheet composition. The effect of changes in future interest rates on the mix of assets and liabilities may cause actual results to differ from simulated results. Guidelines established by the Company’s subsidiary bank provides that the estimated net interest income may not change by more than 10% in a one year period given a +/- 200 basis point parallel shift in interest rates. Excluding the potential effect of interest rate changes on assets and liabilities of the Holding Company which are not deemed material, the anticipated impact on net interest income of the subsidiary bank at June 30, 2013 was as follows: given a 200 basis point increase scenario net interest income would be reduced by approximately 8.8%, and given a 200 basis point decrease scenario net interest income would be decreased by approximately 11.4%. The results using a +/-100 basis point interest rate scenario are also presented. Under the 100 basis point increase scenario net interest income would be decreased by approximately 4.3%, and given a 100 basis point decrease scenario net interest income would be decreased by 2.7%. The projections provided by the model are not intended as an actual forecast of the bank’s performance in a particular rate environment, and should not be relied upon. Actual changes in the interest rate environment normally do not take place instantaneously, but over a period of time, and do not occur in a parallel fashion. Additionally, the balance sheet composition, spread relationships for new dollars invested, non interest income and expenses, investment practices, and deposit practices all change as a result of changes in interest rates and would need to be considered by the Asset Liability committee.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company’s Chairman, President and Chief Executive Officer, Sylvan J. Dlesk, and Executive Vice President, Chief Administrative Officer and Chief Financial Officer, Francie P. Reppy, after evaluating the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) as of a date within 90 days prior to the filing of this report (the “Evaluation Date”), have concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures were adequate and effective to ensure that material information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.

Changes in Internal Controls

During the quarter, there were no significant changes in the Company’s internal controls or in other factors that could significantly affect the Company’s disclosure controls and procedures subsequent to the date of their evaluation, nor were there any significant deficiencies or material weaknesses in the Company’s internal controls. As a result, no corrective actions were required or undertaken.

42

FIRST WEST VIRGINIA BANCORP, INC.

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

The nature of the business of the Holding Company’s subsidiary generates a certain amount of litigation involving matters arising in the ordinary course of business. The Company is unaware of any litigation other than ordinary routine litigation incidental to the business of the Company, to which it or its subsidiary is a party or of which any of their property is subject.

Item 1A. Risk Factors

Not applicable to Smaller Reporting Companies

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Inapplicable

Item 3. Defaults Upon Senior Securities

Inapplicable

Item 4. Mine Safety Disclosures

None

Item 5. Other Information

Inapplicable

Item 6. Exhibits and Reports on Form 8-K

(a) Reports on Form 8-K

On May 2, 2013 a report on Form 8-K was filed which contained a letter from First West Virginia Bancorp Inc.’s independent registered public accounting firm confirming that the client auditor relationship had ceased.

On May 10, 2013 a report on Form 8-K was filed which contained a press release dated May 9, 2013 that reported the announcement of First West Virginia Bancorp Inc.’s first quarter earnings.

On May 10, 2013 a report on Form 8-K was filed which stated that the Audit Committee of First West Virginia Bancorp, Inc. engaged BKD, LLP as its successor independent registered public accounting firm to audit the Company’s financial statements.

On May 17, 2013 a report on Form 8-K was filed which contained the results of the submission of Matters to a vote of Security Holders at First West Virginia Bancorp Inc.’s annual meeting of shareholders held May 14, 2013.

(b) Exhibits

The exhibits listed in the Exhibit Index on page 45 of this FORM 10-Q are incorporated by reference and/or filed herewith.

43

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

First West Virginia Bancorp, Inc.                      (Registrant)
By:	/s/ Sylvan J. Dlesk
	Sylvan J. Dlesk
	Chairman, President and Chief Executive Officer
By:	/s/ Francie P. Reppy
	Francie P. Reppy
	Executive Vice President, Chief Administrative Officer and Chief Financial Officer

Dated: August 14, 2013

44

EXHIBIT INDEX

The following exhibits are filed herewith and/or are incorporated herein by reference.

				Incorprated by Reference
Exhibit Number	Description	Filed Herewith		Form		File No.		Exhibit		Filing Date
3.1	Certificate and Articles of Incorporation of First West Virginia Bancorp, Inc.				10-K		001-13652		3.1		3/31/10
3.2	Amended and Restated Bylaws of First West Virginia Bancorp, Inc.				10-K		001-13652		3.1		3/31/12
10.3	Lease dated July 20, 1993 between Progressive Bank, N.A., formerly known as “First West Virginia Bank, N.A.”, and Angela I. Stauver.				10-K		001-13652		10.3		3/31/10
10.4	Lease dated March 7, 2006 between Progressive Bank, N.A. and O. V. Smith & Sons of Big Chimney, Inc.				10-K		001-13652		10.4		3/31/10
10.5	Lease dated May 12, 2001 between Progressive Bank, N.A. and Sylvan J. Dlesk and Rosalie J. Dlesk doing business as Dlesk Realty & Investment Company.				10-K		001-13652		10.5		3/31/10
10.7	Lease dated December 1, 2009 between Progressive Bank, N.A. and Richard J. Dlesk, Sr. and Sharon G. Neis-Dlesk.				10-K		001-13652		10.7		3/31/10
10.8	Amendment to Lease and Notice of Exercise dated July 3, 2012 between Progressive Bank, N.A., formerly known as “First West Virginia Bank, N.A.”, and Angela I. Stauver.				10-K		001-13652		10.8		3/31/13
11.1	Statement regarding computation of per share earnings.		X
13.3	Summarized Quarterly Financial Information.		X
15	Letter re unaudited interim financial information. See Part 1, Notes to Consolidated Financial Statements.		X
31.1	Rule 13a-14(a) / 15d/14(a) Certifications - Certification of Chief Executive Officer.		X
31.2	Rule 13a-14(a) / 15d/14(a) Certifications - Certification of Chief Financial Officer.		X
32	Section 1350 Certifications of the Chief Executive Officer and Chief Financial Officer.		X
99.1	Independent Accountant’s Report.		X
101	Interactive Data File.		X

45

EX-11.1

EXHIBIT 11.1 - Statement Regarding Computation of Per Share Earnings Computation of Earnings Per Share

The following formula was used to calculate the earnings per share, Consolidated Statements of Income for the three and six months ended June 30, 2013 and 2012, included in this report as Exhibit 13.3.

Earnings Per Share

Net Income / Weighted average shares of common stock outstanding for the period

	Three months ended June 30,
	2013		2012
Weighted Average Shares Outstanding		1,718,730		1,718,730
Net Income	$	414,415	$	670,034
Per Share Amount	$	0.24	$	0.39

	Six months ended June 30,
	2013		2012
Weighted Average Shares Outstanding		1,718,730		1,718,730
Net Income	$	795,752	$	1,140,034
Per Share Amount	$	0.46	$	0.67

No common stock equivalents exist.

EX-13.3

EXHIBIT 13.3 - Summarized Quarterly Financial Information

First West Virginia Bancorp, Inc.

Summarized Quarterly Financial Information

A summary of selected quarterly financial information follows:

2013	First Quarter		Second Quarter
Total interest income	$	2,302,771	$	2,357,775
Total interest expense		387,202		376,418
Net interest income		1,915,569		1,981,357
Provision for loan losses		—		—
Investment securities gain		14		2,236
Total other income		272,251		251,921
Total other expenses		1,890,613		1,890,553
Income before income taxes		297,221		344,961
Net income		381,337		414,415
Net income per share		0.22		0.24

2012	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Total interest income	$	2,531,454	$	2,488,731	$	2,455,071	$	2,363,310
Total interest expense		488,630		457,777		430,492		412,397
Net interest income		2,042,824		2,030,954		2,024,579		1,950,913
Provision for loan losses		—		—		—		(248,000	)
Investment securities gain		—		342,279		1,671		746,753
Total other income		307,995		316,058		304,996		331,860
Total other expenses		1,903,102		1,929,691		1,869,462		1,901,904
Income before income taxes		447,717		759,600		461,784		1,375,621
Net income		470,000		670,034		482,826		914,900
Net income per share (1)		0.28		0.39		0.28		0.53

2011	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Total interest income	$	2,861,756	$	2,882,684	$	2,806,855	$	2,655,920
Total interest expense		602,421		561,942		545,953		518,991
Net interest income		2,359,335		2,320,742		2,260,902		2,136,929
Provision for loan losses		30,000		570,000		—		—
Investment securities gain		172		267,704		375,121		87,900
Total other income		286,336		278,170		346,891		391,637
Total other expenses		1,903,540		1,907,522		1,893,837		1,921,179
Income before income taxes		612,303		389,094		1,089,077		695,287
Net income		549,907		409,135		858,932		636,171
Net income per share (1)		0.32		0.24		0.50		0.37

(1) Adjusted for the 4 percent common stock dividend to stockholders of record as of December 19, 2012.

EX-31.1

EXHIBIT 31.1 - Certification of Chief Executive Officer pursuant to section 302 of the Securities and Exchange Act of 1934.

Certification

I, Sylvan J.Dlesk, certify that:

I have reviewed this quarterly report on Form 10-Q of First West Virginia Bancorp, Inc.;

Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the period covered by this quarterly report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: August 14, 2013

/s/ Sylvan J. Dlesk

Sylvan J. Dlesk

Chairman, President and Chief Executive Officer/Director

(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2 - Certification of Chief Financial Officer pursuant to section 302 of the Securities and Exchange Act of 1934.

Certification

I, Francie P. Reppy, certify that:

I have reviewed this quarterly report on Form 10-Q of First West Virginia Bancorp, Inc.;

Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the period covered by this quarterly report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: August 14, 2013

/s/ Francie P. Reppy

Francie P. Reppy

Executive Vice President, Chief Administrative Officer and Chief Financial Officer

(Principal Financial Officer)

EX-32

EXHIBIT 32 - CERTIFICATION PURSUANT TO 18 U.S.C. §1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE  SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the three months ended June 30, 2013, (the “Report”) of First West Virginia Bancorp, Inc., the (“Company”) as filed with the Securities and Exchange Commission on the date hereof, each of the undersigned, in the capacities and on the dates indicated below certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2013	/s/ Sylvan J. Dlesk
	Sylvan J. Dlesk
	Chairman, President and Chief Executive Officer/Director
	(Principal Executive Officer)

Date: August 14, 2013	/s/ Francie P. Reppy
	Francie P. Reppy
	Executive Vice President, Chief Administrative Officer and Chief Financial Officer
	(Chief Financial Officer)

EX-99.1

EXHIBIT 99.1

BKD, LLP

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Audit Committee

First West Virginia Bancorp, Inc.

Wheeling, West Virginia

We have reviewed the accompanying consolidated balance sheet of First West Virginia Bancorp, Inc. as of June 30, 2013 and the related consolidated statements of income and comprehensive income (loss) for the three-month and six-month periods ended June 30, 2013 and changes in stockholders’ equity and cash flows for the six-month periods ended June 30, 2013. These interim financial statements are the responsibility of the Company’s management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America.

The consolidated financial statements for the year ended December 31, 2012 were audited by other accountants, and they expressed an unqualified opinion on them in their report dated March 29, 2013, but they have not performed any auditing procedures since that date.

/s/ BKD, LLP

Indianapolis, Indiana

August 14, 2013

XML

Regulatory Matters

6 Months Ended

Jun. 30, 2013

Banking And Thrift [Abstract]

Regulatory Matters

NOTE 9 - REGULATORY MATTERS

The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk, weighting, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to adjusted total assets (as defined).

As of June 30, 2013, the most recent notifications from the Office of the Comptroller of the Currency categorized the bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes has changed the capital category. The capital ratios of the Company and its subsidiary bank, along with the regulatory framework for adequately capitalized and well capitalized institutions are depicted as set forth in the following table:

(Amounts Expressed in Thousands)	Actual					For Capital Adequacy Purposes					To be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
First West Virginia Bancorp, Inc.
As of June 30, 2013
Total Capital (to Risk Weighted Assets)	$	32,924		22.37	%	$	11,774		8.0	%	$	14,718		10.0	%
Tier I Capital (to Risk Weighted Assets)		31,084		21.12	%		5,887		4.0	%		8,831		6.0	%
Tier I Capital (to Adjusted Total Assets)		31,084		10.36	%		11,998		4.0	%		14,998		5.0	%
As of December 31, 2012
Total Capital (to Risk Weighted Assets)	$	32,792		22.13	%	$	11,856		8.0	%	$	14,821		10.0	%
Tier I Capital (to Risk Weighted Assets)		30,938		20.88	%		5,928		4.0	%		8,892		6.0	%
Tier I Capital (to Adjusted Total Assets)		30,938		10.48	%		11,809		4.0	%		14,761		5.0	%
Progressive Bank, N.A.
As of June 30, 2013
Total Capital (to Risk Weighted Assets)	$	32,753		22.30	%	$	11,750		8.0	%	$	14,687		10.0	%
Tier I Capital (to Risk Weighted Assets)		30,913		21.05	%		5,875		4.0	%		8,812		6.0	%
Tier I Capital (to Adjusted Total Assets)		30,913		10.32	%		11,987		4.0	%		14,984		5.0	%
As of December 31, 2012
Total Capital (to Risk Weighted Assets)	$	32,608		22.04	%	$	11,838		8.0	%	$	14,798		10.0	%
Tier I Capital (to Risk Weighted Assets)		30,754		20.78	%		5,919		4.0	%		8,879		6.0	%
Tier I Capital (to Adjusted Total Assets)		30,754		10.43	%		11,798		4.0	%		14,747		5.0	%

XML

Federal Home Loan Bank Borrowings - Summary of Contractual Maturities of FHLB borrowings (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Advances From Federal Home Loan Banks [Abstract]
Due in 2013	$ 45,958
Due in 2014	95,267
Due in 2015	99,919
Due in 2016	104,800
Due in 2017	109,918
Due in 2018 and thereafter	3,105,675
Total	$ 3,561,537	$ 3,606,411

XML

Consolidated Statements of Income (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Loans, including fees:
Taxable	$ 1,240,967	$ 1,294,620	$ 2,426,186	$ 2,638,287
Tax-exempt	97,898	118,014	200,460	240,525
Debt securities:
Taxable	534,094	627,610	1,082,730	1,259,597
Tax-exempt	474,171	435,793	929,314	855,849
Other interest and dividend income	10,645	12,694	21,856	25,927
Total interest and dividend income	2,357,775	2,488,731	4,660,546	5,020,185
INTEREST EXPENSE
Deposits	301,827	385,441	615,246	803,140
Federal funds purchased and repurchase agreements	32,073	29,053	62,874	55,961
Federal Home Loan Bank borrowings	42,518	43,283	85,500	87,306
Total interest expense	376,418	457,777	763,620	946,407
Net interest income	1,981,357	2,030,954	3,896,926	4,073,778
PROVISION FOR LOAN LOSSES
Net interest income after provision for loan losses	1,981,357	2,030,954	3,896,926	4,073,778
NONINTEREST INCOME
Service charges and other fees	94,449	116,908	192,853	227,563
Net gains on available for sale securities	2,236	342,279	2,250	342,279
Other operating income	157,472	199,150	331,319	396,490
Total noninterest income	254,157	658,337	526,422	966,332
NONINTEREST EXPENSE
Salary and employee benefits	914,214	930,772	1,829,755	1,856,498
Net occupancy expense of premises	396,171	365,320	804,248	758,356
Other operating expenses	580,168	633,599	1,147,163	1,217,939
Total noninterest expense	1,890,553	1,929,691	3,781,166	3,832,793
Income before income taxes	344,961	759,600	642,182	1,207,317
INCOME TAX EXPENSE (BENEFIT)	(69,454)	89,566	(153,570)	67,283
Net income	$ 414,415	$ 670,034	$ 795,752	$ 1,140,034
WEIGHTED AVERAGE SHARES OUTSTANDING	1,718,730	1,718,730	1,718,730	1,718,730
EARNINGS PER COMMON SHARE	$ 0.24	$ 0.39	$ 0.46	$ 0.67
DIVIDENDS PER COMMON SHARE	$ 0.19	$ 0.18	$ 0.38	$ 0.37

XML

Investment Securities

6 Months Ended

Jun. 30, 2013

Investments Debt And Equity Securities [Abstract]

Investment Securities

NOTE 2 - INVESTMENT SECURITIES

The amortized cost and estimated fair values of investment securities are as follows at June 30, 2013 and December 31, 2012:

	(Expressed in thousands) June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale:
Obligations of U.S. Government corporations and agencies	$	44,093	$	3	$	(1,576	)	$	42,520
Obligations of states and political subdivisions		51,847		1,862		(783	)		52,926
Mortgage-backed securities		77,589		537		(1,858	)		76,268
Equity securities		180		28		(2	)		206
Total available-for-sale	$	173,709	$	2,430	$	(4,219	)	$	171,920
	(Expressed in thousands) December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale:
Obligations of U.S. Government corporations and agencies		47,101	$	201	$	(7	)	$	47,295
Obligations of states and political subdivisions		48,393		3,692		(55	)		52,030
Mortgage-backed securities		77,513		1,218		(53	)		78,678
Equity securities		183		22		—			205
Total available-for-sale		173,190		5,133		(115	)		178,208

The Company’s investment securities portfolio contains unrealized losses of direct obligations of the U.S. Government agency securities, including mortgage-related instruments issued or backed by the full faith and credit of the United States government or are generally viewed as having the implied guarantee of the U.S. government, and debt obligations of a U.S. state or political subdivision.

On a quarterly basis, the Company evaluates the severity and duration of impairment for its investment securities portfolio and the Company’s ability to hold the securities till they recover. Generally, impairment is considered other than temporary when an investment security has sustained a decline in market value for a period of twelve months. The Company has concluded that any impairment of its investment securities portfolio is not other than temporary but is the result of interest rate changes that are not expected to result in the noncollection of principal and interest during the period. There are 79 positions that are temporarily impaired at June 30, 2013.

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at June 30, 2013 and December 31, 2012:

	(Expressed in thousands)
	June 30, 2013
	Less than Twelve Months					Twelve Months or Greater				Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Government corporations and agencies	$	40,013	$	(1,576	)	$	—	$	—	$	40,013	$	(1,576	)
Obligations of states and political subdivisions		11,646		(783	)		—		—		11,646		(783	)
Mortgage-backed securities		53,704		(1,858	)		—		—		53,704		(1,858	)
Equity securities		41		(2	)		—		—		41		(2	)
Total	$	105,404	$	(4,219	)	$	—	$	—	$	105,404	$	(4,219	)

	(Expressed in thousands)
	December 31, 2012
	Less than Twelve Months					Twelve Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Government corporations and agencies		6,993	$	(7	)	$	—	$	—		$	6,993	$	(7	)
Obligations of states and political subdivisions		2,721		(55	)		—		—			2,721		(55	)
Mortgage-backed securities		23,752		(52	)		82		(1	)		23,834		(53	)
Total	$	33,466	$	(114	)	$	82	$	(1	)	$	33,548	$	(115	)

The amortized cost and fair value of investment securities available for sale at June 30, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	(Expressed in thousands)
	June 30, 2013
	Amortized Cost		Fair Value
Due in one year or less	$	781	$	788
Due after one year through five years		1,977		2,066
Due after five years through ten years		66,489		65,331
Due after ten years		26,693		27,261
		95,940		95,446
Mortgage-backed securities		77,589		76,268
Equity securities		180		206
Total	$	173,709	$	171,920

Assets carried at $60,868,000 and $65,418,000 at June 30, 2013 and December 31, 2012, respectively, were pledged to secure United States Government and other public funds and for other purposes as required or permitted by law. Proceeds from sales of securities available-for-sale during the six month periods ended June 30, 2013 and 2012, were $16,785 and $9,990,764, respectively. Gross gains of $2,268 and gross losses of $18 were realized during the six months ended June 30, 2013 and gross gains of $342,594 and gross losses of $315 were realized during the six months ended June 30, 2012. Proceeds from sales of securities available-for-sale during the three month periods ended June 30, 2013 and 2012, were $16,585 and $9,980,534, respectively. Gross gains of $2,254 and gross losses of $18 were realized during the three months ended June 30, 2013 and gross gains of $342,297 and gross losses of $18 were realized during the three months ended June 30, 2012. The maturity distribution using book value including accretion of discounts and amortization of premiums and approximate yield of investment securities at June 30, 2013 and December 31, 2012 are presented in the following table. Tax equivalent yield basis was used on tax exempt obligations. Approximate yield was calculated using a weighted average of yield to maturities. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(dollars in thousands)	June 30, 2013							December 31, 2012
	Amortized Cost		Fair Value		Yield			Amortized Cost		Fair Value		Yield
U.S. Government corporations and agencies
Within One Year	$	1	$	1		0.01	%	$	10	$	10		0.01	%
After One But Within Five Years		—		—		—			6,000		6,034		1.88
After Five But Within Ten Years		44,089		42,516		1.72			41,088		41,248		1.75
After Ten Years		3		3		0.88			3		3		0.87
		44,093		42,520		1.72			47,101		47,295		1.77
States & Political Subdivisions
Within One Year		780		787		5.05			970		990		4.98
After One But Within Five Years		1,977		2,066		6.38			1,101		1,158		5.92
After Five But Within Ten Years		22,400		22,816		5.16			19,439		20,633		5.23
After Ten Years		26,690		27,257		5.83			26,883		29,249		5.90
		51,847		52,926		5.55			48,393		52,030		5.62
Mortgage-Backed Securities		77,589		76,268		2.08			77,513		78,678		2.01
Equity Securities		180		206		2.88			183		205		1.97
Total	$	173,709	$	171,920		3.06	%	$	173,190	$	178,208		3.00	%

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Premises and Equipment (Tables)

6 Months Ended

Jun. 30, 2013

Property Plant And Equipment [Abstract]

Premises and Equipment are Stated at Cost, Less Accumulated Depreciation

Premises and equipment are stated at cost, less accumulated depreciation, as follows:

	June 30, 2013		December 31, 2012		Original Useful Life Years
Land	$	1,983,849	$	1,974,527
Land improvements		493,195		493,195	15
Leasehold improvements		1,083,051		1,083,051	15
Buildings		5,809,772		5,440,002	39
Furniture, fixtures & equipment		5,259,344		5,147,358	3 - 7
Total		14,629,211		14,138,133
Less accumulated depreciation		7,888,845		7,638,477
Premises and equipment, net	$	6,740,366	$	6,499,656

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Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income Components (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Securities available for sale :
Net securities gains reclassified into earnings	$ 2,236	$ 342,279	$ 2,250	$ 342,279
Related income tax expense	(69,454)	89,566	(153,570)	67,283
Net income	414,415	670,034	795,752	1,140,034
Reclassification out of Accumulated Other Comprehensive Income [Member]
Securities available for sale :
Net income	(1,000)	(213,000)	(1,000)	(213,000)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member]
Securities available for sale :
Net securities gains reclassified into earnings	(2,000)	(342,000)	(2,000)	(342,000)
Related income tax expense	1,000	129,000	1,000	129,000
Net income	$ (1,000)	$ (213,000)	$ (1,000)	$ (213,000)

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Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 10 - FAIR VALUE MEASUREMENTS

The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value. The three broad levels defined by U.S. generally accepted accounting principles are as follows:

Ÿ	Level I:	Quoted prices are available in active markets for identical assets or liabilities as of the reported date.
Ÿ	Level II:	Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed.
Ÿ	Level III:	Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available.

Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral that secure the impaired loans include observable inputs employed by certified appraisers for similar assets classified as Level III inputs. Other real estate owned is measured at fair value, less cost to sell at the date of foreclosure. Valuations are periodically performed by management and the assets are carried at the lower of carrying amount, or fair value less cost to sell.

The following table presents the assets reported on the balance sheet at their fair value as of June 30, 2013 and December 31, 2012, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

(dollars in thousands)	June 30, 2013
	Level I		Level II		Level III		Total
Assets measured on a recurring basis:
Securities available for sale:
U.S. Government corporations and agencies	$	—	$	42,520	$	—	$	42,520
Obligations of states and political subdivisions		—		52,926		—		52,926
Mortgage-backed securities		—		76,268		—		76,268
Equity securities		206		—		—		206
Total securities available for sale:	$	206	$	171,714	$	—	$	171,920
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	3,190	$	3,190
Mortgage servicing rights	$	—	$	—	$	41	$	41
(dollars in thousands)	December 31, 2012
	Level I		Level II		Level III		Total
Assets measured on a recurring basis:
Securities available for sale:
U.S. Government corporations and agencies	$	—	$	47,295	$	—	$	47,295
Obligations of states and political subdivisions		—		52,030		—		52,030
Mortgage-backed securities		—		78,678		—		78,678
Equity securities		205		—		—		205
Total securities available for sale:	$	205	$	178,003	$	—	$	178,208
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	2,730	$	2,730
Mortgage servicing rights	$	—	$	—	$	47	$	47

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Deposits - Composition of Bank's Deposits (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule Of Deposits Liabilities Balance Sheet Reported Amounts [Line Items]
Noninterest Bearing Deposit, Demand	$ 32,124,121	$ 33,422,465
Interest Bearing Deposit, Demand	45,292,101	48,423,471
Interest Bearing Deposit, Savings	99,741,285	93,903,196
Interest Bearing Deposit, Time	68,240,926	70,712,831
Individuals, Partnerships and Corporations (Includes Certified and Official Checks) [Member]
Schedule Of Deposits Liabilities Balance Sheet Reported Amounts [Line Items]
Noninterest Bearing Deposit, Demand	31,561,000	32,614,000
Interest Bearing Deposit, Demand	39,734,000	42,866,000
Interest Bearing Deposit, Savings	95,861,000	90,252,000
Interest Bearing Deposit, Time	64,965,000	67,254,000
Obligations of States and Political Subdivisions [Member]
Schedule Of Deposits Liabilities Balance Sheet Reported Amounts [Line Items]
Noninterest Bearing Deposit, Demand	485,000	646,000
Interest Bearing Deposit, Demand	5,558,000	5,558,000
Interest Bearing Deposit, Savings	3,850,000	3,546,000
Interest Bearing Deposit, Time	2,546,000	2,969,000
Commercial Banks And Other Depository Institutions [Member]
Schedule Of Deposits Liabilities Balance Sheet Reported Amounts [Line Items]
Noninterest Bearing Deposit, Demand	78,000	162,000
Interest Bearing Deposit, Savings	30,000	105,000
Interest Bearing Deposit, Time	$ 730,000	$ 490,000

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Regulatory Matters - Schedule of Capital Ratios and Capital Amounts Compliance with Regulatory Framework for Adequately Capitalized and Well Capitalized Institutions, by Company and its Subsidiary Bank (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital (to Risk Weighted Assets)), Actual, Amount	$ 32,924	$ 32,792
Tier I Capital (to Risk Weighted Assets)), Actual, Amount	31,084	30,938
Tier I Capital (to Adjusted Total Assets)), Actual, Amount	31,084	30,938
Total Capital (to Risk Weighted Assets) Actual, Ratio	22.37%	22.13%
Tier I Capital (to Risk Weighted Assets), Actual, Ratio	21.12%	20.88%
Tier I Capital (to Adjusted Total Assets), Actual, Ratio	10.36%	10.48%
Total Capital (to Risk Weighted Assets) Required For Capital Adequacy Purposes, Amount	11,774	11,856
Tier I Capital (to Risk Weighted Assets) Required For Capital Adequacy Purposes, Amount	5,887	5,928
Tier I Capital (to Adjusted Total Assets) Required For Capital Adequacy Purposes, Amount	11,998	11,809
Total Capital (to Risk Weighted Assets) Required For Capital Adequacy Purposes, Ratio	8.00%	8.00%
Tier I Capital (to Risk Weighted Assets) Required For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Tier I Capital (to Adjusted Total Assets) Required For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Total Capital (to Risk Weighted Assets) Required To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	14,718	14,821
Tier I Capital (to Risk Weighted Assets) Required To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	8,831	8,892
Tier I Capital (to Adjusted Total Assets) Required To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	14,998	14,761
Total Capital (to Risk Weighted Assets) Required To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	10.00%	10.00%
Tier I Capital (to Risk Weighted Assets) Required To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.00%	6.00%
Tier I Capital (to Adjusted Total Assets) Required To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	5.00%	5.00%
Progressive Bank N.A. [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital (to Risk Weighted Assets)), Actual, Amount	32,753	32,608
Tier I Capital (to Risk Weighted Assets)), Actual, Amount	30,913	30,754
Tier I Capital (to Adjusted Total Assets)), Actual, Amount	30,913	30,754
Total Capital (to Risk Weighted Assets) Actual, Ratio	22.30%	22.04%
Tier I Capital (to Risk Weighted Assets), Actual, Ratio	21.05%	20.78%
Tier I Capital (to Adjusted Total Assets), Actual, Ratio	10.32%	10.43%
Total Capital (to Risk Weighted Assets) Required For Capital Adequacy Purposes, Amount	11,750	11,838
Tier I Capital (to Risk Weighted Assets) Required For Capital Adequacy Purposes, Amount	5,875	5,919
Tier I Capital (to Adjusted Total Assets) Required For Capital Adequacy Purposes, Amount	11,987	11,798
Total Capital (to Risk Weighted Assets) Required For Capital Adequacy Purposes, Ratio	8.00%	8.00%
Tier I Capital (to Risk Weighted Assets) Required For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Tier I Capital (to Adjusted Total Assets) Required For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Total Capital (to Risk Weighted Assets) Required To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	14,687	14,798
Tier I Capital (to Risk Weighted Assets) Required To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	8,812	8,879
Tier I Capital (to Adjusted Total Assets) Required To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 14,984	$ 14,747
Total Capital (to Risk Weighted Assets) Required To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	10.00%	10.00%
Tier I Capital (to Risk Weighted Assets) Required To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.00%	6.00%
Tier I Capital (to Adjusted Total Assets) Required To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	5.00%	5.00%

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Loans and Leases - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013 TDRs	Jun. 30, 2012	Dec. 31, 2012 TDRs
Loans And Leases Receivable Disclosure [Abstract]
Financing receivable, recorded investment, Non-accrual loans	$ 3,298,127		$ 3,298,127		$ 3,550,640
Financing receivable, interest income lost on Non-accrual loans	86,807	66,646	129,108	127,046	216,468
Interest income recognized on impaired loans			0
TDR's in Accrual status			1		0
Pre and post modification outstanding recorded investment	45,898		45,898
Additional funds			$ 14,102		$ 0

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Activity in Accumulated Other Comprehensive Income (Loss)

The activity in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2013 and 2012 is as follows:

	Accumulated Other Comprehensive Income (Loss)(1)
	Unrealized Gains (Losses) on Securities Available for Sale
	Three months ended June 30,						Six months ended June 30,
(dollars in thousands)	2013			2012			2013			2012
Beginning Balance	$	2,429		$	3,127		$	3,129		$	3,232
Other comprehensive income (loss) before reclassifications		(3,544	)		520			(4,244	)		415
Amounts reclassified from accumulated other comprehensive income		(1	)		(213	)		(1	)		(213	)
Period Change		(3,545	)		307			(4,245	)		202
Ending Balance	$	(1,116	)	$	3,434		$	(1,116	)	$	3,434

⁽¹⁾  All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal and State income tax rate approximating 39.5%.

Accumulated Other Comprehensive Income Components

Amount Reclassified from Accumulated Other Comprehensive Income
Details about Accumulated Other Comprehensive Income Components	For the Three months  ended June 30,						Affected Line Item in the Statement of Income
(unaudited in thousands)	2013			2012
Securities available for sale (1):
Net securities gains reclassified into earnings	$	(2	)	$	(342	)	Net securities gains
Related income tax expense		1			129		Provision for income taxes
Net effect on accumulated other comprehensive income for the period	$	(1	)	$	(213	)	Net of tax
Total reclassifications for the period	$	(1	)	$	(213	)	Net of tax
	Amount Reclassified from Accumulated Other Comprehensive Income
Details about Accumulated Other Comprehensive Income Components	For the Six months ended June 30,						Affected Line Item in the Statement of Income
(unaudited in thousands)	2013			2012
Securities available for sale (1):
Net securities gains reclassified into earnings	$	(2	)	$	(342	)	Net securities gains
Related income tax expense		1			129		Provision for income taxes
Net effect on accumulated other comprehensive income for the period	$	(1	)	$	(213	)	Net of tax
Total reclassifications for the period	$	(1	)	$	(213	)	Net of tax

⁽¹⁾  For additional detail related to unrealized gains on securities and related amounts reclassified from accumulated other comprehensive income see Note 2 “Investment Securities.”

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Federal Home Loan Bank Borrowings (Tables)

6 Months Ended

Jun. 30, 2013

Banking And Thrift [Abstract]

Summary of Contractual Maturities of FHLB Borrowings

Contractual maturities of FHLB borrowings as of June 30, 2013 were as follows:

Due in 2013	$	45,958
Due in 2014		95,267
Due in 2015		99,919
Due in 2016		104,800
Due in 2017		109,918
Due in 2018 and thereafter		3,105,675
Total	$	3,561,537

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Premises and Equipment - Premises and Equipment Are Stated At Cost, Less Accumulated Depreciation (Detail) (USD $)	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Depreciation and Amortization Expenses For Property Plant And Equipment [Line Items]
Total	$ 14,629,211	$ 14,138,133
Less accumulated depreciation	7,888,845	7,638,477
Premises and equipment, net	6,740,366	6,499,656
Land Improvements [Member]
Depreciation and Amortization Expenses For Property Plant And Equipment [Line Items]
Total	493,195	493,195
Original Useful Life Years	15 years
Leasehold Improvements [Member]
Depreciation and Amortization Expenses For Property Plant And Equipment [Line Items]
Total	1,083,051	1,083,051
Original Useful Life Years	15 years
Buildings [Member]
Depreciation and Amortization Expenses For Property Plant And Equipment [Line Items]
Total	5,809,772	5,440,002
Original Useful Life Years	39 years
Furniture, Fixtures & Equipment [Member]
Depreciation and Amortization Expenses For Property Plant And Equipment [Line Items]
Total	5,259,344	5,147,358
Furniture, Fixtures & Equipment [Member] | Minimum [Member]
Depreciation and Amortization Expenses For Property Plant And Equipment [Line Items]
Original Useful Life Years	3 years
Furniture, Fixtures & Equipment [Member] | Maximum [Member]
Depreciation and Amortization Expenses For Property Plant And Equipment [Line Items]
Original Useful Life Years	7 years
Land [Member]
Depreciation and Amortization Expenses For Property Plant And Equipment [Line Items]
Total	$ 1,983,849	$ 1,974,527

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Investment Securities - Gross Unrealized Losses and Fair Value for Investment Securities by Investment Category and Continuous Unrealized Loss Position Time (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Less than Twelve Months, Fair Value	$ 105,404	$ 33,466
Available-for-sale securities, Less than Twelve Months Gross Unrealized Losses	(4,219)	(114)
Available-for-sale securities, Twelve Months or Greater, Fair Value		82
Available-for-sale securities, Twelve Months or Greater Gross Unrealized Losses		(1)
Available-for-sale securities, Total, Fair Value	105,404	33,548
Available-for-sale securities, Total, Gross Unrealized Losses	(4,219)	(115)
U.S. Government Corporations and Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Less than Twelve Months, Fair Value	40,013	6,993
Available-for-sale securities, Less than Twelve Months Gross Unrealized Losses	(1,576)	(7)
Available-for-sale securities, Twelve Months or Greater, Fair Value
Available-for-sale securities, Twelve Months or Greater Gross Unrealized Losses
Available-for-sale securities, Total, Fair Value	40,013	6,993
Available-for-sale securities, Total, Gross Unrealized Losses	(1,576)	(7)
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Less than Twelve Months, Fair Value	11,646	2,721
Available-for-sale securities, Less than Twelve Months Gross Unrealized Losses	(783)	(55)
Available-for-sale securities, Twelve Months or Greater, Fair Value
Available-for-sale securities, Twelve Months or Greater Gross Unrealized Losses
Available-for-sale securities, Total, Fair Value	11,646	2,721
Available-for-sale securities, Total, Gross Unrealized Losses	(783)	(55)
Mortgage-backed securities/ U.S. sponsored entities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Less than Twelve Months, Fair Value	53,704	23,752
Available-for-sale securities, Less than Twelve Months Gross Unrealized Losses	(1,858)	(52)
Available-for-sale securities, Twelve Months or Greater, Fair Value		82
Available-for-sale securities, Twelve Months or Greater Gross Unrealized Losses		(1)
Available-for-sale securities, Total, Fair Value	53,704	23,834
Available-for-sale securities, Total, Gross Unrealized Losses	(1,858)	(53)
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Less than Twelve Months, Fair Value	41
Available-for-sale securities, Less than Twelve Months Gross Unrealized Losses	(2)
Available-for-sale securities, Twelve Months or Greater, Fair Value
Available-for-sale securities, Twelve Months or Greater Gross Unrealized Losses
Available-for-sale securities, Total, Fair Value	41
Available-for-sale securities, Total, Gross Unrealized Losses	$ (2)

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Loans and Leases - Risk Category of Loans by Class of Loan Based on Most Recent Analysis (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Commercial and Other Loans, Gross	$ 14,685	$ 15,603
Commercial Real Estate, Gross	51,000	50,150
Construction and Land Development	626	969
Total Loans	66,311	66,722
Recorded Investment in Loan, risk analysis, Current	63,250	63,542
Recorded Investment in Loan, risk analysis, Past Due 30-59 days	137	65
Recorded Investment in Loan, risk analysis, Past Due 60-89 days
Recorded Investment in Loan, risk analysis, Past Due 90 days or more
Recorded Investment in Loan, risk analysis, Non-accrual	2,924	3,115
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial and Other Loans, Gross	14,643	15,572
Commercial Real Estate, Gross	41,399	39,873
Construction and Land Development	380	969
Total Loans	56,422	56,414
Recorded Investment in Loan, risk analysis, Current	56,422	56,349
Recorded Investment in Loan, risk analysis, Past Due 30-59 days		65
Recorded Investment in Loan, risk analysis, Past Due 60-89 days
Recorded Investment in Loan, risk analysis, Past Due 90 days or more
Recorded Investment in Loan, risk analysis, Non-accrual
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial and Other Loans, Gross
Commercial Real Estate, Gross	3,056	3,465
Construction and Land Development
Total Loans	3,056	3,465
Recorded Investment in Loan, risk analysis, Current	3,056	3,465
Recorded Investment in Loan, risk analysis, Past Due 30-59 days
Recorded Investment in Loan, risk analysis, Past Due 60-89 days
Recorded Investment in Loan, risk analysis, Past Due 90 days or more
Recorded Investment in Loan, risk analysis, Non-accrual
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial and Other Loans, Gross	42	31
Commercial Real Estate, Gross	6,545	6,812
Construction and Land Development	246
Total Loans	6,833	6,843
Recorded Investment in Loan, risk analysis, Current	3,772	3,728
Recorded Investment in Loan, risk analysis, Past Due 30-59 days	137
Recorded Investment in Loan, risk analysis, Past Due 60-89 days
Recorded Investment in Loan, risk analysis, Past Due 90 days or more
Recorded Investment in Loan, risk analysis, Non-accrual	2,924	3,115
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Commercial and Other Loans, Gross
Commercial Real Estate, Gross
Construction and Land Development
Total Loans
Recorded Investment in Loan, risk analysis, Current
Recorded Investment in Loan, risk analysis, Past Due 30-59 days
Recorded Investment in Loan, risk analysis, Past Due 60-89 days
Recorded Investment in Loan, risk analysis, Past Due 90 days or more
Recorded Investment in Loan, risk analysis, Non-accrual

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Deposits - Summary of Maturity Distribution of Time Certificates of Deposits (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Maturities Of Time Deposits [Abstract]
Due in 2013	$ 18,490,000	$ 37,271,000
Due in 2014	25,577,000	13,279,000
Due in 2015	9,264,000	8,040,000
Due in 2016	7,050,000	6,262,000
Due in 2017	5,768,000	5,660,000
Due in 2018 and thereafter	2,092,000	201,000
Total	$ 68,240,926	$ 70,712,831

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	1 Months Ended		3 Months Ended		6 Months Ended
	Dec. 19, 2012	Dec. 20, 2010	Jun. 30, 2013 Store	Jun. 30, 2012	Jun. 30, 2013 Qualitative_Factor Store	Jun. 30, 2012	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Stores			9		9
Affiliated bank branches, locations					Wheeling (3), Wellsburg, Moundsville, New Martinsville, Buckhannon, and Weston, West Virginia and Bellaire, Ohio.
Federal funds sold with maturities of less than, days					90 days
Investment securities identified by management other-than-temporarily impaired			$ 0		$ 0			$ 0
Federal Home Loan Bank stock, par value			$ 100		$ 100
Accrual of interest is discontinued once principal or interest is past due, days			90 days		90 days
Loans held for sale			0		0			109,800
1-4 family residential mortgage loans, maximum commitment to sell to the FHLB, agreement date					Dec. 28, 2011
Maximum commitment under the agreement, to sell 1-4 family residential mortgage loans to the FHLB			5,000,000		5,000,000
1-4 family residential mortgage loans, maximum commitment to sell to the FHLB, agreement expiry					Dec. 28, 2013
1-4 family residential mortgage loans, sale to the Federal Home Loan Bank, amount of loans sold and outstanding			9,869,132		9,869,132			10,267,649
1-4 family residential mortgage loans, sale to the Federal Home Loan Bank, amount of recourse obligation or credit risk			342,873		342,873			346,249
1-4 family residential mortgage loans, sale to the Federal Home Loan Bank, the amount of income recognized			11,173	18,679	21,935	43,276
Qualitative factors utilized by management					9
Period consider for calculation of historical loss					3 years
Loans, credit quality, included factors					The qualitative factors include the following levels of and trends in delinquencies, non-accruals, and charge-offs; trends within the loan portfolio; changes in lending policies and procedures; experience of lending personnel and management oversight; national and local economic trends; concentrations of credit; external factors such as legal and regulatory requirements; changes in the quality of loan review and Board oversight; and changes in the value of underlying collateral.
Allowance for loan losses			2,184,786	2,514,000	2,184,786	2,514,000	2,178,000	2,181,451	2,497,000	2,504,000
Goodwill			1,644,119		1,644,119			1,644,119
Impairment losses					0
The net cash surrender value of bank-owned life insurance			3,677,733		3,677,733			3,625,013
The death benefit value of the bank-owned life insurance			8,700,000		8,700,000			8,800,000
Death benefit agreement, death benefit is payable upon the participant's death			40,000		40,000
Advertising expenses			59,719	57,144	98,396	107,073
Liability for uncertain tax positions			0		0
Unrecognized tax benefits			$ 0		$ 0
Percentage of stock dividend declared	4.00%	4.00%
Maximum [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Family residential mortgage loans to the FHLB			4		4
Consumer loans, lien on one to four family owner residential property					4
Loans that experience insignificant payment delays, days					90 days
Minimum [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Family residential mortgage loans to the FHLB			1		1
Consumer loans, lien on one to four family owner residential property					1

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Loans and Leases - Average Recorded Investment in Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Financing Receivable Modifications Number Of Contracts [Line Items]
Average investment in impaired loans	$ 3,569	$ 3,793	$ 3,615	$ 3,871
Commercial and Other Loans [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Average investment in impaired loans	32	36	33	44
Commercial Real Estate [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Average investment in impaired loans	3,297	3,294	3,339	3,359
Consumer Real Estate [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Average investment in impaired loans	$ 240	$ 463	$ 243	$ 468

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Deposits (Tables)

6 Months Ended

Jun. 30, 2013

Banking And Thrift [Abstract]

Composition of Bank's Deposits

The composition of the Bank’s deposits at June 30, 2013 and December 31, 2012 follows:

	(Expressed in Thousands)
	June 30, 2013
	Demand
	Noninterest Bearing		Interest Bearing		Savings		Time
Individuals, partnerships and corporations (includes certified and official checks)	$	31,561	$	39,734	$	95,861	$	64,965
States and political subdivisions		485		5,558		3,850		2,546
Commercial banks and other depository institutions		78		—		30		730
Total	$	32,124	$	45,292	$	99,741	$	68,241
	(Expressed in Thousands)
	December 31, 2012
	Demand
	Noninterest Bearing		Interest Bearing		Savings		Time
Individuals, partnerships and corporations (includes certified and official checks)	$	32,614	$	42,866	$	90,252	$	67,254
States and political subdivisions		646		5,558		3,546		2,969
Commercial banks and other depository institutions		162		—		105		490
Total	$	33,422	$	48,424	$	93,903	$	70,713

Summary of Maturity Distribution of Time Certificates of Deposits

A maturity distribution of time certificates of deposit at June 30, 2013 and December 31, 2012, follows:

(dollars in thousands)	Maturities of Time Deposits
	June 30, 2013		December 31, 2012
Due in 2013	$	18,490	$	37,271
Due in 2014		25,577		13,279
Due in 2015		9,264		8,040
Due in 2016		7,050		6,262
Due in 2017		5,768		5,660
Due in 2018 and thereafter		2,092		201
Total	$	68,241	$	70,713

Contractual Maturities of Time Deposits of $100,000 or More, Domestic

The following table presents time deposits of $100,000 or more issued by domestic offices by time remaining until maturity of 3 months or less; over 3 through 6 months; over 6 through 12 months; and over 12 months.

	Maturities of Time Deposits in Excess of $100,000
(dollars in thousands)	June 30, 2013		December 31, 2012
Three Months or Less	$	1,936	$	5,008
Over Three and Less than Six Months		2,981		3,356
Over Six and Less than Twelve Months		6,443		3,039
Over Twelve Months		9,944		11,317
Total	$	21,304	$	22,720

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Consolidated Statements of Changes in Stockholders' Equity (USD $)	Total	Common Stock [Member]	Surplus [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
BALANCE at Dec. 31, 2011	$ 34,526,510	$ 8,314,070	$ 6,288,403	$ 16,920,319	$ (228,100)	$ 3,231,818
BALANCE, SHARES at Dec. 31, 2011		1,662,814
Comprehensive income:
Net income	1,140,034			1,140,034
Other comprehensive income (loss)	202,185					202,185
Cash dividend ($.38 and.37 per share for period June 30, 2013 and 2012 respectively)	(628,069)			(628,069)
BALANCE at Jun. 30, 2012	35,240,660	8,314,070	6,288,403	17,432,284	(228,100)	3,434,003
BALANCE, SHARES at Jun. 30, 2012		1,662,814
BALANCE at Dec. 31, 2012	35,702,773	8,643,650	6,966,020	17,191,740	(228,100)	3,129,463
BALANCE, SHARES at Dec. 31, 2012		1,728,730
Comprehensive income:
Net income	795,752			795,752
Other comprehensive income (loss)	(4,245,704)					(4,245,704)
Cash dividend ($.38 and.37 per share for period June 30, 2013 and 2012 respectively)	(653,117)			(653,117)
BALANCE at Jun. 30, 2013	$ 31,599,704	$ 8,643,650	$ 6,966,020	$ 17,334,375	$ (228,100)	$ (1,116,241)
BALANCE, SHARES at Jun. 30, 2013		1,728,730

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Consolidated Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
OPERATING ACTIVITIES
Net income	$ 795,752	$ 1,140,034
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	278,867	249,787
Amortization of investment securities, net	232,617	281,283
Investment security gains	(2,250)	(342,279)
Net gains on sales of mortgage loans	(12,460)	(34,758)
Loss on disposal of premises and equipment		1,052
Increase in cash surrender value of bank-owned life insurance	(52,720)	(52,377)
Originations of mortgage loans held for sale	(311,500)	(870,800)
Proceeds from sales of mortgage loans	433,760	905,558
Decrease in interest receivable	31,173	1,553
Decrease in interest payable	(24,823)	(28,183)
Other, net	(783,053)	(974,908)
Net cash provided by operating activities	585,363	275,962
INVESTING ACTIVITIES
Net decrease in loans, net of charge-offs	337,728	3,950,592
Recoveries on loans previously charged-off	8,804	18,425
Proceeds from sales of securities available-for-sale	16,785	9,990,764
Proceeds from maturities of securities available-for-sale	17,706,393	18,515,162
Principal collected on mortgage-backed securities	6,654,578	8,501,343
Purchases of securities available-for-sale	(25,127,904)	(50,004,940)
Purchases of premises and equipment	(519,577)	(537,924)
Net cash used in investing activities	(923,193)	(9,566,578)
FINANCING ACTIVITIES
Net increase (decrease) in deposits	(1,063,530)	58,625
Dividends paid	(653,117)	(628,069)
Increase (decrease) in short-term borrowings	(1,035,347)	2,426,413
Repayment of Federal Home Loan Bank borrowings	(44,874)	(42,785)
Net cash provided by (used in) financing activities	(2,796,868)	1,814,184
DECREASE IN CASH AND CASH EQUIVALENTS	(3,134,698)	(7,476,432)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	15,876,511	20,916,773
CASH AND CASH EQUIVALENTS, END OF PERIOD	12,741,813	13,440,341
Supplemental Disclosures:
Cash Paid for Interest	788,443	974,590
Cash Paid for Income Taxes	$ 25,000	$ 228,750

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Loans and Leases

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Loans and Leases

NOTE 3 - LOANS AND LEASES

Loans outstanding at June 30, 2013 and December 31, 2012, are as follows:

	(Expressed in Thousands)
	June 30, 2013		December 31, 2012
Consumer Real Estate:
Construction	$	432	$	730
Farmland		194		239
Residential 1-4 Family		23,671		22,439
Home Equity Loans		1,760		1,960
Home Equity Lines of Credit		3,320		3,157
Total Consumer Real Estate		29,377		28,525
Commercial Real Estate:
Non-farm, non-residential		40,888		41,164
Multifamily (5 or more) residential properties		10,112		8,986
Total Commercial Real Estate		51,000		50,150
Commercial and Other Loans:
Commercial		5,801		5,626
Non-rated industrial development obligations		8,853		9,954
Other loans		31		23
Total Commercial and Other Loans		14,685		15,603
Consumer Loans:
Installment and other loans to individuals		3,589		4,668
Credit Cards		518		563
Total Consumer Loans		4,107		5,231
Total loans	$	99,169	$	99,509
Less unearned interest and deferred fees		125		122
Net loans	$	99,044	$	99,387

The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. These policies and procedures are reviewed by management and approved by the Board of Directors on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentration of credit, loan delinquencies and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions.

The Company originates direct and indirect consumer loans including principally residential real estate, home equity lines and loans, credit cards, and indirect vehicle loans using a credit analysis as part of the underwriting process. Each loan type has a separate underwriting criteria, which consists of several factors including debt to income, type of collateral, credit history and customer relationship with the Company.

Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably. Underwriting standards are designed to promote relationship banking rather than transactional banking. The Company’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of the borrower, however, may not be as expected and the collateral securing the loan may fluctuate in value. Minimum standards and underwriting guidelines have been established for commercial loan types.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by the general economy or conditions specific to the real estate market such as geography and/or property type.

Non-accrual loans amounted to $3,298,127 and $3,550,640 at June 30, 2013 and December 31, 2012, respectively. The amount of interest income that would have been recognized had the loans performed in accordance with their original terms was $86,807 and $66,646 for the three months ended June 30, 2013 and June 30, 2012, respectively. For the six months ended June 30, 2013 and 2012 and for the year ended December 31, 2012, the amount of interest income that would have been recognized had the loans performed in accordance with their original terms was $129,108, $127,046 and $216,468, respectively.

The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands):

	June 30, 2013
	Current			30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Total Loans			90 Days or more Past Due and Accruing
Commercial and Other Loans	$	14,526		$	137	$	—	$	22	$	159	$	14,685		$	—
Commercial real estate		48,277			30		—		2,693		2,723		51,000			—
Consumer real estate		29,138			15		143		81		239		29,377			—
Consumer		4,098			4		—		5		9		4,107			1
Unearned interest and deferred fees		(125	)		—		—		—		—		(125	)		—
Total loans	$	95,914		$	186	$	143	$	2,801	$	3,130	$	99,044		$	1
Non-accrual loans included above are as follows:
Commercial and Other Loans	$	6		$	—	$	—	$	22	$	22	$	28		$	—
Commercial real estate		173			30		—		2,693		2,723		2,896			—
Consumer real estate		141			—		143		81		224		365			—
Consumer		5			—		—		4		4		9			—
Total non-accrual loans	$	325		$	30	$	143	$	2,800	$	2,973	$	3,298		$	—

	December 31, 2012
	Current			30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Total Loans			90 Days or more Past Due and Accruing
Commercial and Other Loans	$	15,515		$	65	$	—	$	23	$	88	$	15,603		$	—
Commercial real estate		47,261			31		—		2,858		2,889		50,150			—
Consumer real estate		28,006			139		295		85		519		28,525			—
Consumer		5,214			4		7		6		17		5,231			—
Unearned interest and deferred fees		(122	)		—		—		—		—		(122	)		—
Total loans	$	95,874		$	239	$	302	$	2,972	$	3,513	$	99,387		$	—
Non-accrual loans included above are as follows:
Commercial and Other Loans	$	8		$	—	$	—	$	23	$	23	$	31		$	—
Commercial real estate		257			—		—		2,858		2,858		3,115			—
Consumer real estate		195			108		—		85		193		388			—
Consumer		10			—		1		6		7		17			—
Total non-accrual loans	$	470		$	108	$	1	$	2,972	$	3,081	$	3,551		$	—

The Company utilizes an internal asset classification system for commercial loans as a means of reporting problem and potential problem loans. Under the Company’s risk rating system, the Company classifies problem and potential problem loans as “Special Mention”, “Substandard”, and “Doubtful.” Substandard loans include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses that deserve management’s close attention are deemed to be Special Mention. Risk ratings are updated any time the situation warrants. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans.

The following tables present the risk category of loans by class of loans based on the most recent analysis performed and the contractual aging as of June 30, 2013 and December 31, 2012 (in thousands):

June 30, 2013	Pass		Special Mention		Substandard		Doubtful		Total
Commercial and Other	$	14,643	$	—	$	42	$	—	$	14,685
Commercial Real Estate		41,399		3,056		6,545		—		51,000
Construction and Land Development		380		—		246		—		626
Total	$	56,422	$	3,056	$	6,833	$	—	$	66,311
Current	$	56,422	$	3,056	$	3,772	$	—	$	63,250
Past Due 30-59 days		—		—		137		—		137
Past Due 60-89 days		—		—		—		—		—
Past Due 90 days or more		—		—		—		—		—
Non- accrual		—		—		2,924		—		2,924
Total	$	56,422	$	3,056	$	6,833	$	—	$	66,311

December 31, 2012	Pass		Special Mention		Substandard		Doubtful		Total
Commercial and Other	$	15,572	$	—	$	31	$	—	$	15,603
Commercial Real Estate		39,873		3,465		6,812		—		50,150
Construction and Land Development		969		—		—		—		969
Total	$	56,414	$	3,465	$	6,843	$	—	$	66,722
Current	$	56,349	$	3,465	$	3,728	$	—	$	63,542
Past Due 30-59 days		65		—		—		—		65
Past Due 60-89 days		—		—		—		—		—
Past Due 90 days or more		—		—		—		—		—
Non- accrual		—		—		3,115		—		3,115
Total	$	56,414	$	3,465	$	6,843	$	—	$	66,722

For consumer and consumer real estate loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in those loan classes based on payment activity as of June 30, 2013 and December 31, 2012 (in thousands):

June 30, 2013	Performing		Non-performing		Total
Consumer	$	4,080	$	27	$	4,107
Consumer Real Estate		27,707		1,044		28,751
Total	$	31,787	$	1,071	$	32,858
December 31, 2012	Performing		Non-performing		Total
Consumer	$	5,214	$	17	$	5,231
Consumer Real Estate		28,247		388		28,635
Total	$	33,461	$	405	$	33,866

The Company also evaluates problem loans for impairment. A loan is considered to be impaired if it is probable that the Company will not be able to collect the payments for principal and interest when due according to the contractual terms of the loan agreement. Impaired loans generally include all non-accrual loans and Troubled Debt Restructurings (TDR’s).

Impaired loans at June 30, 2013 and December 31, 2012 are set forth in the following tables (in thousands):

	June 30, 2013
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Commercial and Other Loans	$	33	$	6	$	27	$	33	$	27
Commercial real estate		2,942		459		2,483		2,942		525
Consumer real estate		215		215		—		215		—
Total	$	3,190	$	680	$	2,510	$	3,190	$	552

	December 31, 2012
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Commercial and Other Loans	$	31	$	8	$	23	$	31	$	23
Commercial real estate		3,115		537		2,578		3,115		619
Consumer real estate		226		226		—		226		—
Total	$	3,372	$	771	$	2,601	$	3,372	$	642

The average recorded investment in impaired loans are set forth below in the following table. No interest income was recognized on impaired loans subsequent to their classification as impaired (in thousands):

	Average Recorded Investment
	For the three months ended				For the six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Commercial and Other Loans		32		36		33		44
Commercial real estate		3,297		3,294		3,339		3,359
Consumer real estate		240		463		243		468
Total	$	3,569	$	3,793	$	3,615	$	3,871

Loan Modifications

The Company’s loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring (TDR), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonaccrual at the time of restructure and may only be returned to accrual status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. TDR’s on accrual status may remain in accrual status after they have been restructured as long as they continue to perform in accordance with their modified terms. There was one TDR in accrual status at June 30, 2013 and none at December 31, 2012.

When the Company modifies a loan, management evaluates any possible impairment based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral. In these cases management uses the current fair value of the collateral, less selling costs, instead of discounted cash flows. If management determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized by segment or class of loan, as applicable, through an allowance estimate or a charge-off to the allowance. Segment and class status is determined by the loan’s classification at origination.

The Company had one TDR originate during the three and six month periods ended June 30, 2013 and no TDR’s originate during the three and six month periods ended June 30, 2012. The concession granted on this TDR was an extension of the maturity date. The outstanding recorded investment in this TDR pre and post modification was $45,898. There were no TDR’s that defaulted during the three and six month periods ended June 30, 2013 and 2012.

At June 30, 2013, there were funds of $14,102 committed to be advanced to customers whose loans were classified as TDR’s. No additional funds were committed to be advanced to customers whose loans were classified as TDR’s at December 31, 2012.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting and reporting policies applied in the presentation of the accompanying financial statements follows.

Nature of Operations and Basis of Presentation: First West Virginia Bancorp, Inc. (the “Company”) is a West Virginia Company. The Company provides a variety of banking services to individuals and businesses through the branch network of its affiliate bank (the “Bank”). The Bank operates nine full service branches located in Wheeling (3), Wellsburg, Moundsville, New Martinsville, Buckhannon, and Weston, West Virginia and Bellaire, Ohio. Primary deposit products consist of checking accounts, savings accounts, and certificates of deposit. Primary lending products consist of commercial and residential real estate loans, consumer loans, and business loans.

Principles of Consolidation: The consolidated financial statements of the Company include the financial statements of the parent and its wholly-owned subsidiary, Progressive Bank, N.A. All significant intercompany transactions and accounts have been eliminated in consolidation.

Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for loan losses and the valuation of deferred tax assets.

Cash and cash equivalents: Cash and cash equivalents consist of cash on hand and amounts due from banks and federal funds sold with maturities of less than 90 days.

Investment Securities: Investment securities are classified at the time of purchase, based on management’s intention and ability, as securities available for sale or held to maturity. Debt securities classified as held to maturity are stated at cost adjusted for amortization of premium and accretion of discount which are computed using the interest method and recognized as adjustments of interest income. Certain other debt and equity securities have been classified as available for sale to serve principally as a source of liquidity. Unrealized holding gains and losses for available-for-sale securities are reported as a separate component of stockholders’ equity, net of tax, until realized. Realized securities gains and losses are computed using the specific identification method. Interest and dividends on investment securities are recognized as income when earned.

Securities are periodically reviewed for other-than-temporary impairment based upon a number of factors, including, but not limited to, the length of time and extent to which the market value has been less than cost, the financial condition of the underlying issuer, the ability of the issuer to meet contractual obligations, the likelihood of the security’s ability to recover any decline in its market value, and management’s intent and ability to hold the security for a period of time sufficient to allow for a recovery in market value. Among the factors that are considered in determining management’s intent and ability is a review of the Company’s capital adequacy, interest rate risk position and liquidity. The assessment of a security’s ability to recover any decline in market value, the ability of the issuer to meet contractual obligations and management’s intent and ability requires considerable judgment. Once a decline in value is determined to be other than temporary, if the investor does not intend to sell the security, and it is more-likely-than-not that it will not be required to sell the security, before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference between fair value and amortized cost (the difference defined as the non-credit portion) is recognized in other comprehensive income, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost is charged to earnings. At June 30, 2013 and December 31, 2012, there were no investment securities identified by management to be other-than-temporarily impaired. If investments decline in fair value due to adverse changes in the financial markets, charges to income could occur in future periods.

Common stock of the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank represents ownership interest in institutions that are wholly owned by other financial institutions. These equity securities are accounted for at cost and are classified with other assets. The Bank is a member of the FHLB and, as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and, as such, is classified as restricted stock, carried at cost and evaluated by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared with the capital stock amount and the length of time this situation has persisted, (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB, and (d) the liquidity position of the FHLB.

Loans and Loans Held for Sale: Loans are generally reported at the principal balance outstanding, net of unearned income. Interest income on loans is accrued based on the principal outstanding. It is the Company’s policy to discontinue the accrual of interest when either the principal or interest is past due 90 days or more, unless the loan is both well secured and in the process of collection. It is the Company’s policy not to recognize interest income on specific impaired loans unless the likelihood of future loss is remote. Interest payments received on such loans are applied as a reduction of the loan principal balance. Nonaccrual loans may be returned to accrual status when none of its principal and interest payments are due and there has been a sustained period of repayment performance. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized over the contractual life of the related loans or commitments as an adjustment of the related loan’s yield. Loans held for sale are carried at the lower of cost or estimated market value in the aggregate. There was one loan held for sale at December 31, 2012 amounting to $109,800. There were no loans held for sale as of June 30, 2013.

The Company has entered into an agreement with the Federal Home Loan Bank of Pittsburgh (“FHLB”) under which the bank may sell conforming one-to-four family residential mortgage loans to the FHLB. The current agreement dated December 28, 2011 provides for a maximum commitment of $5,000,000. This commitment expires on December 28, 2013. Loans sold to the FHLB are sold with limited recourse or credit risk based upon utilization of the original commitment. The bank also maintains the servicing of these loans, for which it is paid a servicing fee. The total amount of loans sold and outstanding to the FHLB were $9,869,132 and $10,267,649 as of June 30, 2013 and December 31, 2012, respectively. These loans were also subject to recourse obligation or credit risk in the amount of $342,873 and $346,249 at June 30, 2013 and December 31, 2012, respectively. No liability has been recorded for the recourse obligation as the likelihood of incurring the liability is considered remote. The amount of income recognized as of a result of this agreement was $11,173 and $18,679 for the three months ended June 30, 2013 and 2012, respectively, and $21,935 and $43,276 for the six months ended June 30, 2013 and 2012, respectively.

Allowance for Loan Losses: The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance, and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses that is charged to operations. The provision is based on management’s evaluation of the adequacy of the allowance for loan losses which encompasses the overall risk characteristics of the various portfolio segments, past experience with losses, the impact of economic conditions on borrowers, and other relevant factors. The estimates used in determining the adequacy of the allowance for loan losses, including the amounts and timing of future cash flows expected on impaired loans, are particularly susceptible to significant changes in the near term.

Management tracks and assigns a historical loss percentage for each loan rating category within each loan type. A rolling three-year historical loss ratio is used, calculated on a quarterly basis.

Management currently utilizes nine qualitative factors that are adjusted based on changes in the lending environment and economic conditions. The qualitative factors include the following: levels of and trends in delinquencies, non-accruals, and charge-offs; trends within the loan portfolio; changes in lending policies and procedures; experience of lending personnel and management oversight; national and local economic trends; concentrations of credit; external factors such as legal and regulatory requirements; changes in the quality of loan review and Board oversight; and changes in the value of underlying collateral. The number of qualitative factors can change. Factors can be added for new risks or taken away if the risk no longer applies. Each loan type will have its own risk profile and management will evaluate and adjust each qualitative factor for each loan type quarterly, if necessary. For example, if one area of the loan portfolio is experiencing sharp increases in growth, it is likely the qualitative factor for trends in the loan portfolio would be increased for that loan type. As levels of delinquencies and non-accrual loans decline for commercial real estate and commercial loans it is likely that factor would be reduced.

In terms of the Company’s loan portfolio, the commercial and industrial loans and commercial real estate loans are deemed to have more risk than the consumer real estate loans and other consumer loans in the portfolio. The commercial loans not secured by real estate are highly dependent on financial condition and are more dependent on economic conditions. The commercial loans secured by real estate are also dependent on economic conditions but generally have stronger forms of collateral. More recently, commercial real estate has been negatively impacted by devaluation so these commercial loans carry a higher qualitative factor for changes in the value of collateral. The commercial loans and commercial real estate loans have historically been responsible for the majority of the Company’s delinquencies, non-accrual loans, and charge-offs so both of these categories carry higher qualitative factors than consumer real estate loans and other consumer loans. The Company has historically experienced very low levels of consumer real estate and consumer loan charge-offs so these qualitative factors are set lower than the commercial real estate and commercial and industrial loans.

Mortgage loans secured by one-to-four family properties and all consumer loans are large groups of smaller-balance homogeneous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all circumstances concerning the loan, the credit worthiness and payment history of the borrower, the length of the payment delay, and the amount of shortfall in relation to the principal and interest owed.

Impaired loans are loans for which it is probable the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Company individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap.

The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectibility while not classifying the loan as impaired, provided the loan is not a commercial or commercial real estate classification. Payments received on nonaccrual loans are applied as a reduction of the loan principal balance. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. When foreclosure is probable, impairment is measured based on the fair value of the collateral.

Individual loan reviews are based upon specific quantitative and qualitative criteria, including the size of the loan, loan quality ratings, value of collateral, repayment ability of borrowers, and historical experience factors. The historical experience factors utilized for individual loan reviews are based upon past loss experience, known trends in losses and delinquencies, the growth of loans in particular markets and industries, and known changes in economic conditions in the particular lending markets. Allowances for homogeneous loans (such as residential mortgage loans, personal loans, etc.) are evaluated based upon historical loss experience, trends in losses and delinquencies, growth of loans in particular markets, and known changes in economic conditions in each lending market. There can be no assurance the allowance for loan losses will be adequate to cover all losses, but management believes the allowance for loan losses in the amount of $2,184,786 at June 30, 2013, was adequate to provide for probable losses from existing loans based on information currently available. While management uses available information to provide for loan losses, the ultimate collectibility of a substantial portion of the loan portfolio, and the need for future additions to the allowance, will be based on changes in economic conditions and other relevant factors. As such, an adverse change in economic activity could reduce cash flows for both commercial and individual borrowers, which would likely cause the Company to experience increases in problem assets, delinquencies and losses on loans.

Goodwill: Goodwill resulted from the Company’s purchase of a less-than-whole financial institution (the “branch”). The goodwill value of $1.6 million is supported ultimately by revenue that is driven by the volume of business transacted. A decline in earnings as a result of a lack of growth or the inability to deliver cost effective services over sustained periods can lead to impairment of goodwill that could adversely impact earnings in future periods.

Goodwill is periodically reviewed for impairment. No impairment losses were recognized. Additionally, future events could cause management to conclude that impairment indicators exist and that the goodwill is impaired, which would result in the Company recording an impairment loss. Any resulting impairment loss could have a material, adverse impact on the Company’s financial condition and results of operations.

Mortgage Servicing Rights (“MSRs”): The Company has agreements for the express purpose of selling loans in the secondary market. The Company maintains all servicing rights for these loans. Originated MSRs are recorded by allocating total costs incurred between the loan and servicing rights based on their relative fair values. MSRs are amortized in proportion to the estimated servicing income over the estimated life of the servicing portfolio. Impairment is evaluated based on the fair value of the right, based on portfolio interest rates and prepayment characteristics.

Bank-owned Life Insurance: Bank owned life insurance consists of investments in life insurance policies on executive officers and other members of the bank’s management. The policies are carried at their net cash surrender value. Changes in the policy value are recorded as an adjustment to the carrying value with the corresponding amount recognized as non-interest income or expense. Earnings on these policies are based on the net earnings on the cash surrender value of the policies. The net cash surrender value of bank-owned life insurance was $3,677,733 and $3,625,013 at June 30, 2013 and December 31, 2012, respectively. The death benefit value of the bank-owned life insurance at June 30, 2013 and December 31, 2012 was $8.7 million and $8.8 million, respectively. An agreement has been executed with all officers whereby a $40,000 death benefit is payable upon the participant’s death while employed by the Company to their designated beneficiary.

Advertising Costs: Advertising costs are expensed as the costs are incurred. Advertising expenses amounted to $59,719 and $57,144 for the three months ended June 30, 2013 and June 30, 2012, respectively. For the six month periods ended June 30, 2013 and 2012 advertising expenses amounted to $98,396 and $107,073, respectively.

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Provisions for depreciation and amortization are computed generally using the straight-line method over the estimated useful lives of the assets. When units of property are disposed of, the premises and equipment accounts are relieved of the cost and the accumulated depreciation related to such units. Any resulting gains or losses are credited to or charged against income. Cost of repairs and maintenance is charged to expense as incurred. Additions and improvements are capitalized at cost.

Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Other Real Estate Owned: Other real estate owned are carried at the lower of cost or their estimated current fair value, less estimated costs to sell and are included in other assets. Other real estate owned consist primarily of properties acquired through, or in lieu of foreclosures. Any subsequent declines in fair value, and gains or losses on the disposition of these assets are credited to or charged against income.

Income Taxes: The Company and its subsidiary file a consolidated federal income tax return. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Statement of Income. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Deferred income tax expenses or benefits are based on the changes in the deferred tax asset or liability from period to period.

Earnings Per Common Share: Earnings per common share are calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the year. The Company has no securities which would be considered potential common stock.

Stock Dividend: In November 2012, the Company declared a 4% stock dividend to stockholders of record on December 19, 2012. The Company also declared a 4% stock dividend in October 2010 to stockholders of record on December 20, 2010. All common share data includes the effect of the stock dividend.

Recent Accounting Pronouncements: In January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The amendments clarify that the scope of Update 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. An entity is required to apply the amendments for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of Update 2011-11. This ASU has been adopted and did not have a significant impact on the Company’s financial statements.

In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this Update require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles (GAAP) to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. For nonpublic entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. The Company has provided the necessary disclosures in Note 8.

In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The objective of the amendments in this Update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. generally accepted accounting principles (GAAP). Examples of obligations within the scope of this Update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. U.S. GAAP does not include specific guidance on accounting for such obligations with joint and several liability, which has resulted in diversity in practice. Some entities record the entire amount under the joint and several liability arrangement on the basis of the concept of a liability and the guidance that must be met to extinguish a liability. Other entities record less than the total amount of the obligation, such as an amount allocated, an amount corresponding to the proceeds received, or the portion of the amount the entity agreed to pay among its co-obligors, on the basis of the guidance for contingent liabilities. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter. This ASU is not expected to have a significant impact on the Company’s financial statements.

In April 2013, the FASB issued ASU 2013-07, Presentation of Financial Statements (Topic 205): Application of the Liquidation Basis of Accounting. The objective of this Update is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2012-210 – Presentation of Financial Statements (Topic 205), which has been deleted. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations.

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Loans and Leases - Recorded Investment of Loans by Class of Loan Based on Payment Activity (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Consumer Loans, Gross	$ 4,107	$ 5,231
Consumer Real Estate, Gross	28,751	28,635
Total Loans	32,858	33,866
Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Consumer Loans, Gross	4,080	5,214
Consumer Real Estate, Gross	27,707	28,247
Total Loans	31,787	33,461
Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Consumer Loans, Gross	27	17
Consumer Real Estate, Gross	1,044	388
Total Loans	$ 1,071	$ 405

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Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 2013

Banking And Thrift [Abstract]

Schedule of Capital Ratios and Capital Amounts Compliance with Regulatory Framework for Adequately Capitalized and Well Capitalized Institutions, by Company and its Subsidiary Bank

The capital ratios of the Company and its subsidiary bank, along with the regulatory framework for adequately capitalized and well capitalized institutions are depicted as set forth in the following table:

(Amounts Expressed in Thousands)	Actual					For Capital Adequacy Purposes					To be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
First West Virginia Bancorp, Inc.
As of June 30, 2013
Total Capital (to Risk Weighted Assets)	$	32,924		22.37	%	$	11,774		8.0	%	$	14,718		10.0	%
Tier I Capital (to Risk Weighted Assets)		31,084		21.12	%		5,887		4.0	%		8,831		6.0	%
Tier I Capital (to Adjusted Total Assets)		31,084		10.36	%		11,998		4.0	%		14,998		5.0	%
As of December 31, 2012
Total Capital (to Risk Weighted Assets)	$	32,792		22.13	%	$	11,856		8.0	%	$	14,821		10.0	%
Tier I Capital (to Risk Weighted Assets)		30,938		20.88	%		5,928		4.0	%		8,892		6.0	%
Tier I Capital (to Adjusted Total Assets)		30,938		10.48	%		11,809		4.0	%		14,761		5.0	%
Progressive Bank, N.A.
As of June 30, 2013
Total Capital (to Risk Weighted Assets)	$	32,753		22.30	%	$	11,750		8.0	%	$	14,687		10.0	%
Tier I Capital (to Risk Weighted Assets)		30,913		21.05	%		5,875		4.0	%		8,812		6.0	%
Tier I Capital (to Adjusted Total Assets)		30,913		10.32	%		11,987		4.0	%		14,984		5.0	%
As of December 31, 2012
Total Capital (to Risk Weighted Assets)	$	32,608		22.04	%	$	11,838		8.0	%	$	14,798		10.0	%
Tier I Capital (to Risk Weighted Assets)		30,754		20.78	%		5,919		4.0	%		8,879		6.0	%
Tier I Capital (to Adjusted Total Assets)		30,754		10.43	%		11,798		4.0	%		14,747		5.0	%

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Investment Securities - Amortized Cost and Estimated Fair Values of Investment Securities (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	$ 171,920,000	$ 173,190,000
Available-for-sale securities, Gross Unrealized Gains	2,430,000	5,133,000
Available-for-sale securities, Gross Unrealized Losses	(4,219,000)	(115,000)
Available-for-sale securities, Fair Value	171,920,470	178,207,974
U.S. Government Corporations and Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	44,093,000	47,101,000
Available-for-sale securities, Gross Unrealized Gains	3,000	201,000
Available-for-sale securities, Gross Unrealized Losses	(1,576,000)	(7,000)
Available-for-sale securities, Fair Value	42,520,000	47,295,000
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	51,847,000	48,393,000
Available-for-sale securities, Gross Unrealized Gains	1,862,000	3,692,000
Available-for-sale securities, Gross Unrealized Losses	(783,000)	(55,000)
Available-for-sale securities, Fair Value	52,926,000	52,030,000
Mortgage-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	77,589,000	77,513,000
Available-for-sale securities, Gross Unrealized Gains	537,000	1,218,000
Available-for-sale securities, Gross Unrealized Losses	(1,858,000)	(53,000)
Available-for-sale securities, Fair Value	76,268,000	78,678,000
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	180,000	183,000
Available-for-sale securities, Gross Unrealized Gains	28,000	22,000
Available-for-sale securities, Gross Unrealized Losses	(2,000)
Available-for-sale securities, Fair Value	$ 206,000	$ 205,000

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Loans and Leases - Summary of Loans Outstanding (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Total Consumer Real Estate	$ 28,751,000	$ 28,635,000
Total Commercial Real Estate	51,000,000	50,150,000
Total Commercial and Other Loans	14,685,000	15,603,000
Total Consumer Loans	4,107,000	5,231,000
Total loans	99,169,000	99,509,000
Less unearned interest and deferred fees	125,000	122,000
Net loans	99,044,147	99,387,344
Consumer Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Consumer Real Estate, Construction	432,000	730,000
Consumer Real Estate, Home Equity Lines of Credit	3,320,000	3,157,000
Total Consumer Real Estate	29,377,000	28,525,000
Net loans	29,377,000	28,635,000
Consumer Real Estate [Member] | Farmland [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Consumer Real Estate	194,000	239,000
Consumer Real Estate [Member] | Residential 1-4 Family [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Consumer Real Estate	23,671,000	22,439,000
Consumer Real Estate [Member] | Home Equity Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Consumer Real Estate	1,760,000	1,960,000
Commercial Real Estate [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Commercial Real Estate, Non-farm, non-residential	40,888,000	41,164,000
Commercial Real Estate, Multifamily (5 or more) residential properties	10,112,000	8,986,000
Total Commercial Real Estate	51,000,000	50,150,000
Net loans	51,000,000	50,150,000
Commercial and Other Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Commercial and Other Loans, Commercial	5,801,000	5,626,000
Commercial and Other Loans, Non-rated industrial development obligations	8,853,000	9,954,000
Commercial and Other Loans, Other loans	31,000	23,000
Total Commercial and Other Loans	14,685,000	15,603,000
Net loans	14,685,000	15,603,000
Consumer Loans [Member]
Noncancelable Obligations Future Minimum Payments Due [Line Items]
Consumer Loans, Installment and other loans to individuals	3,589,000	4,668,000
Consumer Loans, Credit Cards	518,000	563,000
Total Consumer Loans	4,107,000	5,231,000
Net loans	$ 4,107,000	$ 5,231,000

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Accumulated Other Comprehensive Income (Loss) - Activity in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 2013
Equity [Abstract]
Federal and State income tax rate	39.50%

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Deposits - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Deposits [Abstract]
Large-denomination time deposit			$ 100,000
Time deposits, $100,000 or more, domestic	21,304,000		21,304,000		22,720,000
Time deposits include certificates of deposit, $100,000 or more, domestic, interest expense	$ 66,868	$ 79,175	$ 155,591	$ 192,175

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Allowance for Loan Losses - Schedule of Loans Which Are Individually Evaluated For Impairment, By Class of Loans (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule Of Financial Receivables [Line Items]
Loans individually evaluated	$ 3,190	$ 3,372,000
Loans collectively evaluated	95,854	96,125,000
Net loans	99,044,147	99,387,344
Commercial and Other Loans [Member]
Schedule Of Financial Receivables [Line Items]
Loans individually evaluated	33,000	31,000
Loans collectively evaluated	14,652,000	15,572,000
Net loans	14,685,000	15,603,000
Commercial Real Estate [Member]
Schedule Of Financial Receivables [Line Items]
Loans individually evaluated	2,942,000	3,115,000
Loans collectively evaluated	48,058,000	47,035,000
Net loans	51,000,000	50,150,000
Consumer Real Estate [Member]
Schedule Of Financial Receivables [Line Items]
Loans individually evaluated	215,000	226,000
Loans collectively evaluated	29,162,000	28,409,000
Net loans	29,377,000	28,635,000
Consumer Loans [Member]
Schedule Of Financial Receivables [Line Items]
Loans collectively evaluated	4,107,000	5,231,000
Net loans	4,107,000	5,231,000
Unearned Discounts [Member]
Schedule Of Financial Receivables [Line Items]
Loans collectively evaluated	(125,000)	(122,000)
Net loans	$ (125,000)	$ (122,000)

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Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Common stock, par value	$ 5	$ 5
Common stock, shares authorized	2,000,000	2,000,000
Common stock, shares issued	1,728,730	1,728,730
Treasury stock, shares	10,000	10,000

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Deposits

6 Months Ended

Jun. 30, 2013

Banking And Thrift [Abstract]

Deposits

NOTE 6 - DEPOSITS

The composition of the Bank’s deposits at June 30, 2013 and December 31, 2012 follows:

	(Expressed in Thousands)
	June 30, 2013
	Demand
	Noninterest Bearing		Interest Bearing		Savings		Time
Individuals, partnerships and corporations (includes certified and official checks)	$	31,561	$	39,734	$	95,861	$	64,965
States and political subdivisions		485		5,558		3,850		2,546
Commercial banks and other depository institutions		78		—		30		730
Total	$	32,124	$	45,292	$	99,741	$	68,241
	(Expressed in Thousands)
	December 31, 2012
	Demand
	Noninterest Bearing		Interest Bearing		Savings		Time
Individuals, partnerships and corporations (includes certified and official checks)	$	32,614	$	42,866	$	90,252	$	67,254
States and political subdivisions		646		5,558		3,546		2,969
Commercial banks and other depository institutions		162		—		105		490
Total	$	33,422	$	48,424	$	93,903	$	70,713

A maturity distribution of time certificates of deposit at June 30, 2013 and December 31, 2012, follows:

(dollars in thousands)	Maturities of Time Deposits
	June 30, 2013		December 31, 2012
Due in 2013	$	18,490	$	37,271
Due in 2014		25,577		13,279
Due in 2015		9,264		8,040
Due in 2016		7,050		6,262
Due in 2017		5,768		5,660
Due in 2018 and thereafter		2,092		201
Total	$	68,241	$	70,713

Time deposits include certificates of deposit issued in denominations of $100,000 or more which amounted to $21,304,000 and $22,720,000 at June 30, 2013 and December 31, 2012, respectively. Interest expense on certificates of deposit of $100,000 or more was $66,868 and $79,175 for the three months ended June 30, 2013 and 2012, respectively. Interest expense on certificates of deposit of $100,000 or more was $155,591 and $192,175 for the six months ended June 30, 2013 and 2012, respectively.

The following table presents time deposits of $100,000 or more issued by domestic offices by time remaining until maturity of 3 months or less; over 3 through 6 months; over 6 through 12 months; and over 12 months.

	Maturities of Time Deposits in Excess of $100,000
(dollars in thousands)	June 30, 2013		December 31, 2012
Three Months or Less	$	1,936	$	5,008
Over Three and Less than Six Months		2,981		3,356
Over Six and Less than Twelve Months		6,443		3,039
Over Twelve Months		9,944		11,317
Total	$	21,304	$	22,720

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Consolidated Statements of Comprehensive Income (Loss) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract]
Net income	$ 414,415	$ 670,034	$ 795,752	$ 1,140,034
Investment securities available for sale
Unrealized holding gains (losses) arising during the period	(5,681,819)	834,077	(6,805,034)	666,449
Income tax effect	2,138,068	(313,863)	2,560,734	(250,784)
Reclassification of gains recognized in earnings	(2,236)	(342,279)	(2,250)	(342,279)
Income tax effect	841	128,799	846	128,799
Total other comprehensive income	(3,545,146)	306,734	(4,245,704)	202,185
Comprehensive income (loss)	$ (3,130,731)	$ 976,768	$ (3,449,952)	$ 1,342,219

XML

Fair Value Measurements - Schedule of Assets Carried at Fair Value on Recurring and Nonrecurring Basis (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	$ 171,920,470	$ 178,207,974
U.S. Government Corporations and Agencies [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	42,520,000	47,295,000
Obligations of States and Political Subdivisions [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	52,926,000	52,030,000
Mortgage-backed securities/ U.S. sponsored entities [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	76,268,000	78,678,000
Equity Securities [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	206,000	205,000
Nonrecurring [Member]
Assets measured on a nonrecurring basis:
Impaired Loans	3,190,000	2,730,000
Mortgage servicing rights	41,000	47,000
Recurring [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	171,920,000	178,208,000
Recurring [Member] | U.S. Government Corporations and Agencies [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	42,520,000	47,295,000
Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	52,926,000	52,030,000
Recurring [Member] | Mortgage-backed securities/ U.S. sponsored entities [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	76,268,000	78,678,000
Recurring [Member] | Equity Securities [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	206,000	205,000
Level I [Member] | Nonrecurring [Member]
Assets measured on a nonrecurring basis:
Impaired Loans
Mortgage servicing rights
Level I [Member] | Recurring [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	206,000	205,000
Level I [Member] | Recurring [Member] | U.S. Government Corporations and Agencies [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale
Level I [Member] | Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale
Level I [Member] | Recurring [Member] | Mortgage-backed securities/ U.S. sponsored entities [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale
Level I [Member] | Recurring [Member] | Equity Securities [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	206,000	205,000
Level II [Member] | Nonrecurring [Member]
Assets measured on a nonrecurring basis:
Impaired Loans
Mortgage servicing rights
Level II [Member] | Recurring [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	171,714,000	178,003,000
Level II [Member] | Recurring [Member] | U.S. Government Corporations and Agencies [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	42,520,000	47,295,000
Level II [Member] | Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	52,926,000	52,030,000
Level II [Member] | Recurring [Member] | Mortgage-backed securities/ U.S. sponsored entities [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale	76,268,000	78,678,000
Level III [Member] | Nonrecurring [Member]
Assets measured on a nonrecurring basis:
Impaired Loans	3,190,000	2,730,000
Mortgage servicing rights	41,000	47,000
Level III [Member] | Recurring [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale
Level III [Member] | Recurring [Member] | U.S. Government Corporations and Agencies [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale
Level III [Member] | Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale
Level III [Member] | Recurring [Member] | Mortgage-backed securities/ U.S. sponsored entities [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale
Level III [Member] | Recurring [Member] | Equity Securities [Member]
Schedule of assets carried at fair value on recurring basis
Assets measured on a recurring basis, Securities available for sale

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Consolidated Balance Sheets (USD $)	Jun. 30, 2013	Dec. 31, 2012
ASSETS
Cash and due from banks	$ 5,741,922	$ 5,365,856
Due from banks - interest bearing	6,999,891	10,510,655
Total cash and cash equivalents	12,741,813	15,876,511
Investment securities:
Available-for-sale (at fair value)	171,920,470	178,207,974
Loans held for sale	0	109,800
Loans	99,044,147	99,387,344
Less allowance for loan losses	(2,184,786)	(2,181,451)
Net loans	96,859,361	97,205,893
Premises and equipment, net	6,740,366	6,499,656
Accrued income receivable	1,096,767	1,127,940
Goodwill	1,644,119	1,644,119
Bank owned life insurance	3,677,733	3,625,013
Other assets	4,395,348	2,250,315
Total assets	299,075,977	306,547,221
Noninterest bearing deposits:
Demand	32,124,121	33,422,465
Interest bearing deposits:
Demand	45,292,101	48,423,471
Savings	99,741,285	93,903,196
Time	68,240,926	70,712,831
Total deposits	245,398,433	246,461,963
Federal funds purchased and securities sold under agreements to repurchase	17,731,243	18,766,590
Federal Home Loan Bank borrowings	3,561,537	3,606,411
Accrued interest payable	137,775	162,598
Other liabilities	647,285	1,846,886
Total liabilities	267,476,273	270,844,448
STOCKHOLDERS' EQUITY
Common stock - 2,000,000 shares authorized at $5 par value: 1,728,730 shares issued at June 30, 2013 and December 31, 2012	8,643,650	8,643,650
Surplus	6,966,020	6,966,020
Retained earnings	17,334,375	17,191,740
Treasury stock - 10,000 shares at cost:	(228,100)	(228,100)
Accumulated other comprehensive income (loss)	(1,116,241)	3,129,463
Total stockholders' equity	31,599,704	35,702,773
Total liabilities and stockholders' equity	$ 299,075,977	$ 306,547,221

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Deposits - Contractual Maturities of Time Deposits of $100,000 or More, Domestic (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Maturities Of Time Deposits [Abstract]
Time deposits, $100,000 or more, domestic, Three Months or Less	$ 1,936	$ 5,008
Time deposits, $100,000 or more, domestic, Over Three and Less than Six Months	2,981	3,356
Time deposits, $100,000 or more, domestic, Over Six and Less than Twelve	6,443	3,039
Time deposits, $100,000 or more, domestic, Over Twelve Months	9,944	11,317
Time deposits, $100,000 or more, domestic, Total	$ 21,304	$ 22,720

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of Assets Carried at Fair Value on Recurring and Nonrecurring Basis

The following table presents the assets reported on the balance sheet at their fair value as of June 30, 2013 and December 31, 2012, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

(dollars in thousands)	June 30, 2013
	Level I		Level II		Level III		Total
Assets measured on a recurring basis:
Securities available for sale:
U.S. Government corporations and agencies	$	—	$	42,520	$	—	$	42,520
Obligations of states and political subdivisions		—		52,926		—		52,926
Mortgage-backed securities		—		76,268		—		76,268
Equity securities		206		—		—		206
Total securities available for sale:	$	206	$	171,714	$	—	$	171,920
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	3,190	$	3,190
Mortgage servicing rights	$	—	$	—	$	41	$	41
(dollars in thousands)	December 31, 2012
	Level I		Level II		Level III		Total
Assets measured on a recurring basis:
Securities available for sale:
U.S. Government corporations and agencies	$	—	$	47,295	$	—	$	47,295
Obligations of states and political subdivisions		—		52,030		—		52,030
Mortgage-backed securities		—		78,678		—		78,678
Equity securities		205		—		—		205
Total securities available for sale:	$	205	$	178,003	$	—	$	178,208
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	2,730	$	2,730
Mortgage servicing rights	$	—	$	—	$	47	$	47

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Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Schedule of Impairment on the Allowance for Loan Losses, by Class of Loans

The following table summarizes the primary segments of the ALL, segregated into the amount for loans individually evaluated for impairment by class of loans for the six months ended as of June 30, 2013 and June 30, 2012 (in thousands):

June 30, 2013	Commercial and other		Commercial Real Estate		Consumer Real Estate		Consumer			Total
Allowance for Loan Losses:
Beginning Balance, January 1, 2013	$	179	$	1,762	$	193	$	47		$	2,181
Charge-offs		—		—		—		(5	)		(5	)
Recoveries		—		—		—		9			9
Provision		—		—		—		—			—
Ending Balance, June 30, 2013	$	179	$	1,762	$	193	$	51		$	2,185
Loans individually evaluated for impairment	$	27	$	525	$	—	$	—		$	552
Loans collectively evaluated for impairment		152		1,237		193		51			1,633
Ending Balance	$	179	$	1,762	$	193	$	51		$	2,185

June 30, 2012	Commercial and other			Commercial Real Estate			Consumer Real Estate		Consumer			Total
Allowance for Loan Losses:
Beginning Balance, January 1, 2012	$	179		$	2,082		$	193	$	50		$	2,504
Charge-offs		—			(3	)		—		(5	)		(8	)
Recoveries		—			15			—		3			18
Provision		(9	)		(44	)		61		(8	)		—
Ending Balance, June 30, 2012	$	170		$	2,050		$	254	$	40		$	2,514
Loans individually evaluated for impairment	$	24		$	836		$	—	$	—		$	860
Loans collectively evaluated for impairment		146			1,214			254		40			1,654
Ending Balance	$	170		$	2,050		$	254	$	40		$	2,514

Schedule of Loans Which are Individually Evaluated for Impairment, by Class of Loans

The following table summarizes the primary segments of the ALL for the three months ended as of June 30, 2013 and June 30, 2012 (in thousands):

June 30, 2013	Commercial and other		Commercial Real Estate			Consumer Real Estate		Consumer			Total
Allowance for Loan Losses:
Beginning Balance, April 1, 2013	$	179	$	1,762		$	193	$	44		$	2,178
Charge-offs		—		—			—		—			—
Recoveries		—		—			—		7			7
Provision		—		—			—		—			—
Ending Balance, June 30, 2013	$	179	$	1,762		$	193	$	51		$	2,185
June 30, 2012	Commercial and other		Commercial Real Estate			Consumer Real Estate		Consumer			Total
Allowance for Loan Losses:
Beginning Balance, April 1, 2012	$	148	$	2,072		$	234	$	43		$	2,497
Charge-offs		—		—			—		—			—
Recoveries		—		15			—		2			17
Provision		22		(37	)		20		(5	)		—
Ending Balance, June 30, 2012	$	170	$	2,050		$	254	$	40		$	2,514

The following table presents loans individually and collectively evaluated for impairment by class of loans as of June 30, 2013 and December 31, 2012 (in thousands):

June 30, 2013	Commercial and other		Commercial Real Estate		Consumer Real Estate		Consumer		Unearned Discounts			Total
Loans individually evaluated	$	33	$	2,942	$	215	$	—	$	—		$	3,190
Loans collectively evaluated		14,652		48,058		29,162		4,107		(125	)		95,854
Ending Balance	$	14,685	$	51,000	$	29,377	$	4,107	$	(125	)	$	99,044
December 31, 2012
Loans individually evaluated	$	31	$	3,115	$	226	$	—	$	—		$	3,372
Loans collectively evaluated		15,572		47,035		28,409		5,231		(122	)		96,125
Ending Balance	$	15,603	$	50,150	$	28,635	$	5,231	$	(122	)	$	99,497

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Allowance for Loan Losses - Schedule of Impairment on Allowance for Loan Losses, By Class of Loans (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Allowance for Loan Losses:
Allowance for loan losses, Beginning balance	$ 2,178,000	$ 2,497,000	$ 2,181,451	$ 2,504,000
Charge-offs			(5,000)	(8,000)
Recoveries	7,000	17,000	8,804	18,425
Provision
Allowance for loan losses, Ending balance	2,184,786	2,514,000	2,184,786	2,514,000
Loans individually evaluated for impairment	552	860,000	552	860,000
Loans collectively evaluated for impairment	1,633	1,654,000	1,633	1,654,000
Commercial and Other Loans [Member]
Allowance for Loan Losses:
Allowance for loan losses, Beginning balance	179,000	148,000	179,000	179,000
Charge-offs
Recoveries
Provision		22,000		(9,000)
Allowance for loan losses, Ending balance	179,000	170,000	179,000	170,000
Loans individually evaluated for impairment	27,000	24,000	27,000	24,000
Loans collectively evaluated for impairment	152,000	146,000	152,000	146,000
Commercial Real Estate [Member]
Allowance for Loan Losses:
Allowance for loan losses, Beginning balance	1,762,000	2,072,000	1,762,000	2,082,000
Charge-offs				(3,000)
Recoveries		15,000		15,000
Provision		(37,000)		(44,000)
Allowance for loan losses, Ending balance	1,762,000	2,050,000	1,762,000	2,050,000
Loans individually evaluated for impairment	525,000	836,000	525,000	836,000
Loans collectively evaluated for impairment	1,237,000	1,214,000	1,237,000	1,214,000
Consumer Real Estate [Member]
Allowance for Loan Losses:
Allowance for loan losses, Beginning balance	193,000	234,000	193,000	193,000
Charge-offs
Recoveries
Provision		20,000		61,000
Allowance for loan losses, Ending balance	193,000	254,000	193,000	254,000
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	193,000	254,000	193,000	254,000
Consumer Loans [Member]
Allowance for Loan Losses:
Allowance for loan losses, Beginning balance	44,000	43,000	47,000	50,000
Charge-offs			(5,000)	(5,000)
Recoveries	7,000	2,000	9,000	3,000
Provision		(5,000)		(8,000)
Allowance for loan losses, Ending balance	51,000	40,000	51,000	40,000
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	$ 51,000	$ 40,000	$ 51,000	$ 40,000

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Accumulated Other Comprehensive Income (Loss) - Activity in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Equity [Abstract]
Accumulated Other Comprehensive Income Unrealized Gains (Losses) on Securities Available for Sale, Beginning Balance	$ 3,129,463	$ 3,127,000	$ 3,129,463	$ 3,232,000
Other comprehensive income (loss) before reclassifications	(3,544,000)	520,000	(4,244,000)	415,000
Amounts reclassified from accumulated other comprehensive income	(1,000)	(213,000)	(1,000)	(213,000)
Total other comprehensive income	(3,545,146)	306,734	(4,245,704)	202,185
Accumulated Other Comprehensive Income Unrealized Gains (Losses) on Securities Available for Sale, Ending Balance	$ (1,116,241)	$ 3,434,000	$ (1,116,241)	$ 3,434,000

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Loans And Leases - Summary of Contractual Aging of Loans in Past Due, by Class of Loans (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 95,914,000	$ 95,874,000
Non-accrual loans	3,298,127	3,550,640
30-59 Days Past Due	186,000	239,000
60-89 Days Past Due	143,000	302,000
90 Days or more Past Due	2,801,000	2,972,000
Total Past Due	3,130,000	3,513,000
90 Days or more Past Due and Accruing	1,000
Total Loans	14,685,000	15,603,000
Commercial real estate, Total Loans	51,000,000	50,150,000
Consumer real estate	28,751,000	28,635,000
Consumer	4,107,000	5,231,000
Unearned interest and deferred fees	(125,000)	(122,000)
Net loans	99,044,147	99,387,344
Commercial and Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	14,526,000	15,515,000
30-59 Days Past Due	137,000	65,000
90 Days or more Past Due	22,000	23,000
Total Past Due	159,000	88,000
90 Days or more Past Due and Accruing
Total Loans	14,685,000	15,603,000
Net loans	14,685,000	15,603,000
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	48,277,000	47,261,000
30-59 Days Past Due	30,000	31,000
90 Days or more Past Due	2,693,000	2,858,000
Total Past Due	2,723,000	2,889,000
90 Days or more Past Due and Accruing
Commercial real estate, Total Loans	51,000,000	50,150,000
Net loans	51,000,000	50,150,000
Consumer Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	29,138,000	28,006,000
30-59 Days Past Due	15,000	139,000
60-89 Days Past Due	143,000	295,000
90 Days or more Past Due	81,000	85,000
Total Past Due	239,000	519,000
90 Days or more Past Due and Accruing
Consumer real estate	29,377,000	28,525,000
Net loans	29,377,000	28,635,000
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	4,098,000	5,214,000
30-59 Days Past Due	4,000	4,000
60-89 Days Past Due		7,000
90 Days or more Past Due	5,000	6,000
Total Past Due	9,000	17,000
90 Days or more Past Due and Accruing	1,000
Consumer	4,107,000	5,231,000
Net loans	4,107,000	5,231,000
Unearned Interest and Deferred Fees [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	(125,000)	(122,000)
90 Days or more Past Due and Accruing
Unearned interest and deferred fees	(125,000)	(122,000)
Non Accrual Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	325,000	470,000
30-59 Days Past Due	30,000	108,000
60-89 Days Past Due	143,000	1,000
90 Days or more Past Due	2,800,000	2,972,000
Total Past Due	2,973,000	3,081,000
90 Days or more Past Due and Accruing
Total Loans	3,298,000	3,551,000
Non Accrual Loans [Member] | Commercial and Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	6,000	8,000
90 Days or more Past Due	22,000	23,000
Total Past Due	22,000	23,000
90 Days or more Past Due and Accruing
Total Loans	28,000	31,000
Non Accrual Loans [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	173,000	257,000
30-59 Days Past Due	30,000
90 Days or more Past Due	2,693,000	2,858,000
Total Past Due	2,723,000	2,858,000
90 Days or more Past Due and Accruing
Total Loans	2,896,000	3,115,000
Non Accrual Loans [Member] | Consumer Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	141,000	195,000
30-59 Days Past Due		108,000
60-89 Days Past Due	143,000
90 Days or more Past Due	81,000	85,000
Total Past Due	224,000	193,000
90 Days or more Past Due and Accruing
Total Loans	365,000	388,000
Non Accrual Loans [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	5,000	10,000
60-89 Days Past Due		1,000
90 Days or more Past Due	4,000	6,000
Total Past Due	4,000	7,000
90 Days or more Past Due and Accruing
Total Loans	9,000
Consumer		$ 17,000

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Investment Securities - Amortized Cost and Fair Value of Securities Available For Sale, By Contractual Maturity (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Due in one year or less, Amortized Cost	$ 781,000
Due after one year through five years, Amortized Cost	1,977,000
Due after five years through ten years, Amortized Cost	66,489,000
Due after ten years, Amortized Cost	26,693,000
Amortized Cost, Total	95,940,000
Available-for-sale securities, Amortized Cost	171,920,000	173,190,000
Due in one year or less, Fair Value	788,000
Due after one year through five years, Fair Value	2,066,000
Due after five years through ten years, Fair Value	65,331,000
Due after ten years, Fair Value	27,261,000
Fair Value, Total	95,446,000
Available-for-sale (at fair value)	171,920,470	178,207,974
Mortgage-backed securities/ U.S. sponsored entities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	77,589,000	77,513,000
Available-for-sale (at fair value)	76,268,000	78,678,000
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	180,000	183,000
Available-for-sale (at fair value)	$ 206,000	$ 205,000

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Investment Securities - Recorded Book Value, Fair Value and Approximate Yield of Investment Securities by Contractual Maturity (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Within One Year, Amortized Cost	$ 781,000
After One But Within Five Years, Amortized Cost	1,977,000
After Five But Within Ten Years, Amortized Cost	66,489,000
After Ten Years, Amortized Cost	26,693,000
Amortized Cost, Total	95,940,000
Available-for-sale (at fair value)	171,920,470	178,207,974
Available-for-sale securities, Amortized Cost	171,920,000	173,190,000
Within One year, Fair Value	788,000
After One But Within Five Years, Fair value	2,066,000
After Five But Within Ten Years, Fair Value	65,331,000
After Ten Years, Fair Value	27,261,000
Fair Value, Total	95,446,000
Available-for-sale securities, Yield	3.06%	3.00%
U.S. Government Corporations and Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Within One Year, Amortized Cost	1,000	10,000
After One But Within Five Years, Amortized Cost		6,000,000
After Five But Within Ten Years, Amortized Cost	44,089,000	41,088,000
After Ten Years, Amortized Cost	3,000	3,000
Amortized Cost, Total	44,093,000	47,101,000
Available-for-sale (at fair value)	42,520,000	47,295,000
Available-for-sale securities, Amortized Cost	44,093,000	47,101,000
Within One Year, Yield	0.01%	0.01%
Within One year, Fair Value	1,000	10,000
After One But Within Five Years, Yield		1.88%
After One But Within Five Years, Fair value		6,034,000
After Five But Within Ten years, Yield	1.72%	1.75%
After Five But Within Ten Years, Fair Value	42,516,000	41,248,000
After Ten Years, Yield	0.88%	0.87%
After Ten Years, Fair Value	3,000	3,000
Yield, total	1.72%	1.77%
Fair Value, Total	42,520,000	47,295,000
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Within One Year, Amortized Cost	780,000	970,000
After One But Within Five Years, Amortized Cost	1,977,000	1,101,000
After Five But Within Ten Years, Amortized Cost	22,400,000	19,439,000
After Ten Years, Amortized Cost	26,690,000	26,883,000
Amortized Cost, Total	51,847,000	48,393,000
Available-for-sale (at fair value)	52,926,000	52,030,000
Available-for-sale securities, Amortized Cost	51,847,000	48,393,000
Within One Year, Yield	5.05%	4.98%
Within One year, Fair Value	787,000	990,000
After One But Within Five Years, Yield	6.38%	5.92%
After One But Within Five Years, Fair value	2,066,000	1,158,000
After Five But Within Ten years, Yield	5.16%	5.23%
After Five But Within Ten Years, Fair Value	22,816,000	20,633,000
After Ten Years, Yield	5.83%	5.90%
After Ten Years, Fair Value	27,257,000	29,249,000
Yield, total	5.55%	5.62%
Fair Value, Total	52,926,000	52,030,000
Mortgage-backed securities/ U.S. sponsored entities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale (at fair value)	76,268,000	78,678,000
Available-for-sale securities, Amortized Cost	77,589,000	77,513,000
Available-for-sale securities, Yield	2.08%	2.01%
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale (at fair value)	206,000	205,000
Available-for-sale securities, Amortized Cost	$ 180,000	$ 183,000
Available-for-sale securities, Yield	2.88%	1.97%

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Premises and Equipment

6 Months Ended

Jun. 30, 2013

Property Plant And Equipment [Abstract]

Premises and Equipment

NOTE 5 - PREMISES AND EQUIPMENT

Premises and equipment are stated at cost, less accumulated depreciation, as follows:

	June 30, 2013		December 31, 2012		Original Useful Life Years
Land	$	1,983,849	$	1,974,527
Land improvements		493,195		493,195	15
Leasehold improvements		1,083,051		1,083,051	15
Buildings		5,809,772		5,440,002	39
Furniture, fixtures & equipment		5,259,344		5,147,358	3 - 7
Total		14,629,211		14,138,133
Less accumulated depreciation		7,888,845		7,638,477
Premises and equipment, net	$	6,740,366	$	6,499,656

Charges to operations for depreciation approximated $137,703 and $126,398 for the three months ended June 30, 2013 and 2012, respectively. Depreciation expenses were $278,867 and $249,787 for the six months ended June 30, 2013 and 2012, respectively.

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Disclosures About Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Level 3 inputs were used in determining fair value.

(dollars in thousands)	Quantitative Information about Level 3 Fair Value Measurements
June 30, 2013	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted              Average)
Impaired Loans	$	3,190	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expenses (2)	-36.6% to 6.3% (-2.9%) 1.6% to 24.6% (9.2%)
Mortgage Servicing Rights	$	41	Discounted Cash Flow	Remaining term Discount rate	2.9 years to 7 years (3.49 years) 9.5% to 10.5%(10%)

(1) The fair value is determined through independent appraisals by certified appraisers of the underlying collateral.

(2) Appraisals may be adjusted by management for qualitative factors and estimated liquidation expenses. The range and weighted average of liquidation expenses are expressed as a percent of discounted collateral value and other appraisal adjustments are presented as a percentage of the appraised amounts.

Estimates of Fair Values of Financial Instruments

The estimates of fair values of financial instruments are summarized as follows at June 30, 2013 and December 31, 2012:

	June 30, 2013
	Carrying		Estimated Fair Value
(Amounts Expressed in Thousands)	Amount		Level I		Level II		Level III		Total
Financial assets:
Cash and cash equivalents	$	12,742	$	12,742	$	—	$	—	$	12,742
Investment securities		171,920		206		171,714		—		171,920
Loans		96,859		—		—		98,896		98,896
Accrued interest receivable		1,097		1,097		—		—		1,097
Financial liabilities:
Deposits		245,398		158,500		68,603		—		227,103
Federal funds purchased and repurchase agreements		17,731		17,731		—		—		17,731
Federal Home Loan Bank borrowings		3,562		—		3,997		—		3,997
Accrued interest payable		138		138		—		—		138
	December 31, 2012
	Carrying		Estimated Fair Value
(Amounts Expressed in Thousands)	Amount		Level I		Level II		Level III		Total
Financial assets:
Cash and cash equivalents	$	15,877	$	15,877	$	—	$	—	$	15,877
Investment securities		178,208		205		178,003		—		178,208
Loans held for sale		110		—		110		—		110
Loans		97,206		—		—		98,303		98,303
Accrued interest receivable		1,128		1,128		—		—		1,128
Financial liabilities:
Deposits		246,462		163,526		71,510		—		235,036
Federal funds purchased and repurchase agreements		18,767		18,767		—		—		18,767
Federal Home Loan Bank borrowings		3,606		—		4,199		—		4,199
Accrued interest payable		163		163		—		—		163

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Loans and Leases - Summary of Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Impaired loans, Unpaid Contractual Principal Balance	$ 3,190	$ 3,372
Impaired loans, Recorded Investment With No Allowance	680	771
Impaired loans, Recorded Investment With Allowance	2,510	2,601
Impaired loans, Total Recorded Investment	3,190	3,372
Impaired loans, Related Allowance	552	642
Commercial and Other Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Impaired loans, Unpaid Contractual Principal Balance	33	31
Impaired loans, Recorded Investment With No Allowance	6	8
Impaired loans, Recorded Investment With Allowance	27	23
Impaired loans, Total Recorded Investment	33	31
Impaired loans, Related Allowance	27	23
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Impaired loans, Unpaid Contractual Principal Balance	2,942	3,115
Impaired loans, Recorded Investment With No Allowance	459	537
Impaired loans, Recorded Investment With Allowance	2,483	2,578
Impaired loans, Total Recorded Investment	2,942	3,115
Impaired loans, Related Allowance	525	619
Consumer Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Impaired loans, Unpaid Contractual Principal Balance	215	226
Impaired loans, Recorded Investment With No Allowance	215	226
Impaired loans, Recorded Investment With Allowance
Impaired loans, Total Recorded Investment	215	226
Impaired loans, Related Allowance

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

NOTE 8 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The activity in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2013 and 2012 is as follows:

	Accumulated Other Comprehensive Income (Loss)(1)
	Unrealized Gains (Losses) on Securities Available for Sale
	Three months ended June 30,						Six months ended June 30,
(dollars in thousands)	2013			2012			2013			2012
Beginning Balance	$	2,429		$	3,127		$	3,129		$	3,232
Other comprehensive income (loss) before reclassifications		(3,544	)		520			(4,244	)		415
Amounts reclassified from accumulated other comprehensive income		(1	)		(213	)		(1	)		(213	)
Period Change		(3,545	)		307			(4,245	)		202
Ending Balance	$	(1,116	)	$	3,434		$	(1,116	)	$	3,434

⁽¹⁾  All amounts are net of tax. Related income tax expense or benefit is calculated using a combined Federal and State income tax rate approximating 39.5%.

	Amount Reclassified from Accumulated Other Comprehensive Income
Details about Accumulated Other Comprehensive Income Components	For the Three months  ended June 30,						Affected Line Item in the Statement of Income
(unaudited in thousands)	2013			2012
Securities available for sale (1):
Net securities gains reclassified into earnings	$	(2	)	$	(342	)	Net securities gains
Related income tax expense		1			129		Provision for income taxes
Net effect on accumulated other comprehensive income for the period	$	(1	)	$	(213	)	Net of tax
Total reclassifications for the period	$	(1	)	$	(213	)	Net of tax
	Amount Reclassified from Accumulated Other Comprehensive Income
Details about Accumulated Other Comprehensive Income Components	For the Six months ended June 30,						Affected Line Item in the Statement of Income
(unaudited in thousands)	2013			2012
Securities available for sale (1):
Net securities gains reclassified into earnings	$	(2	)	$	(342	)	Net securities gains
Related income tax expense		1			129		Provision for income taxes
Net effect on accumulated other comprehensive income for the period	$	(1	)	$	(213	)	Net of tax
Total reclassifications for the period	$	(1	)	$	(213	)	Net of tax

⁽¹⁾  For additional detail related to unrealized gains on securities and related amounts reclassified from accumulated other comprehensive income see Note 2 “Investment Securities.”

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Allowance for Loan Losses

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Allowance for Loan Losses

NOTE 4 - ALLOWANCE FOR LOAN LOSSES

The following table summarizes the primary segments of the ALL, segregated into the amount for loans individually evaluated for impairment by class of loans for the six months ended as of June 30, 2013 and June 30, 2012 (in thousands):

June 30, 2013	Commercial and other		Commercial Real Estate		Consumer Real Estate		Consumer			Total
Allowance for Loan Losses:
Beginning Balance, January 1, 2013	$	179	$	1,762	$	193	$	47		$	2,181
Charge-offs		—		—		—		(5	)		(5	)
Recoveries		—		—		—		9			9
Provision		—		—		—		—			—
Ending Balance, June 30, 2013	$	179	$	1,762	$	193	$	51		$	2,185
Loans individually evaluated for impairment	$	27	$	525	$	—	$	—		$	552
Loans collectively evaluated for impairment		152		1,237		193		51			1,633
Ending Balance	$	179	$	1,762	$	193	$	51		$	2,185

June 30, 2012	Commercial and other			Commercial Real Estate			Consumer Real Estate		Consumer			Total
Allowance for Loan Losses:
Beginning Balance, January 1, 2012	$	179		$	2,082		$	193	$	50		$	2,504
Charge-offs		—			(3	)		—		(5	)		(8	)
Recoveries		—			15			—		3			18
Provision		(9	)		(44	)		61		(8	)		—
Ending Balance, June 30, 2012	$	170		$	2,050		$	254	$	40		$	2,514
Loans individually evaluated for impairment	$	24		$	836		$	—	$	—		$	860
Loans collectively evaluated for impairment		146			1,214			254		40			1,654
Ending Balance	$	170		$	2,050		$	254	$	40		$	2,514

The following table summarizes the primary segments of the ALL for the three months ended as of June 30, 2013 and June 30, 2012 (in thousands):

June 30, 2013	Commercial and other		Commercial Real Estate			Consumer Real Estate		Consumer			Total
Allowance for Loan Losses:
Beginning Balance, April 1, 2013	$	179	$	1,762		$	193	$	44		$	2,178
Charge-offs		—		—			—		—			—
Recoveries		—		—			—		7			7
Provision		—		—			—		—			—
Ending Balance, June 30, 2013	$	179	$	1,762		$	193	$	51		$	2,185
June 30, 2012	Commercial and other		Commercial Real Estate			Consumer Real Estate		Consumer			Total
Allowance for Loan Losses:
Beginning Balance, April 1, 2012	$	148	$	2,072		$	234	$	43		$	2,497
Charge-offs		—		—			—		—			—
Recoveries		—		15			—		2			17
Provision		22		(37	)		20		(5	)		—
Ending Balance, June 30, 2012	$	170	$	2,050		$	254	$	40		$	2,514

The following table presents loans individually and collectively evaluated for impairment by class of loans as of June 30, 2013 and December 31, 2012 (in thousands):

June 30, 2013	Commercial and other		Commercial Real Estate		Consumer Real Estate		Consumer		Unearned Discounts			Total
Loans individually evaluated	$	33	$	2,942	$	215	$	—	$	—		$	3,190
Loans collectively evaluated		14,652		48,058		29,162		4,107		(125	)		95,854
Ending Balance	$	14,685	$	51,000	$	29,377	$	4,107	$	(125	)	$	99,044
December 31, 2012
Loans individually evaluated	$	31	$	3,115	$	226	$	—	$	—		$	3,372
Loans collectively evaluated		15,572		47,035		28,409		5,231		(122	)		96,125
Ending Balance	$	15,603	$	50,150	$	28,635	$	5,231	$	(122	)	$	99,497

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Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash dividend, per share	$ 0.38	$ 0.37
Retained Earnings [Member]
Cash dividend, per share	$ 0.38	$ 0.37

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Federal Home Loan Bank Borrowings - Additional Information (Detail) (USD $)					6 Months Ended
	Jun. 30, 2013 Advance	Dec. 31, 2012	Jun. 30, 2013 Federal Home Loan Bank Advances Mature in 2018 [Member]	Jun. 30, 2013 Federal Home Loan Bank Advances Mature in 2023 [Member]	Jun. 30, 2013 Federal Home Loan Bank Advances Mature In 2014 [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal Home Loan Bank, the remaining maximum borrowing capacity	$ 36,900,000
Federal Home Loan Bank borrowings	3,561,537	3,606,411	2,013,861	1,547,676
Number of fixed rate amortizing advances	3
Subsidiary bank had three fixed rate amortizing advances	3,561,537
Federal Home Loan Bank, advances, weighted average interest rate	4.78%
Advances from Federal Home Loan Banks, Maturity Year			2018	2023
Borrowings outstanding under credit agreement with the federal Home Loan Bank	0	0
Line of credit facility agreement with the Federal Home Loan Bank, the available maximum credit facility	$ 7,000,000				$ 19,400,000
Line of credit facility expiration date					May 01, 2014

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Premises and Equipment - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Property Plant And Equipment [Abstract]
Charges to operations for depreciation	$ 137,703	$ 126,398	$ 278,867	$ 249,787

XML

Investment Securities - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013 Investment	Jun. 30, 2012	Jun. 30, 2013 Investment	Jun. 30, 2012	Dec. 31, 2012
Investments Debt And Equity Securities [Abstract]
Sustained decline in market value considered Impairment, period			12 months
Investment securities in continuous unrealized loss position, positions temporarily impaired	79		79
Proceeds from sales of securities available-for-sale	$ 16,585	$ 9,980,534	$ 16,785	$ 9,990,764
Available-for-sale securities, gross realized gains	2,254	342,297	2,268	342,594
Available-for-sale securities, gross realized losses	18	18	18	315
Assets pledged to secure United States Government and other public funds and for other purposes	$ 60,868,000		$ 60,868,000		$ 65,418,000

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Disclosures About Fair Value of Financial Instruments - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Mortgage servicing rights range weighted average remaining term	3 years 5 months 27 days
Mortgage servicing rights range weighted average discount rate	10.00%
Minimum [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Mortgage servicing rights range weighted average remaining term	2 years 10 months 24 days
Mortgage servicing rights range weighted average discount rate	9.50%
Maximum [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Mortgage servicing rights range weighted average remaining term	7 years
Mortgage servicing rights range weighted average discount rate	10.50%
Unobservable Input Appraisal Adjustments [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Impaired loans range weighted average	(2.90%)
Unobservable Input Appraisal Adjustments [Member] | Minimum [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Impaired loans range weighted average	(36.60%)
Unobservable Input Appraisal Adjustments [Member] | Maximum [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Impaired loans range weighted average	6.30%
Unobservable Input Liquidation Expenses [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Impaired loans range weighted average	9.20%
Unobservable Input Liquidation Expenses [Member] | Minimum [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Impaired loans range weighted average	1.60%
Unobservable Input Liquidation Expenses [Member] | Maximum [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Impaired loans range weighted average	24.60%
Valuation Techniques Appraisal of Collateral [Member] | Fair Value Hedging [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Impaired Loans	$ 3,190
Valuation Techniques Discounted Cash Flow [Member] | Fair Value Hedging [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Mortgage servicing rights	$ 41

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Disclosures About Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Disclosures About Fair Value of Financial Instruments

NOTE 11 - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Level 3 inputs were used in determining fair value.

(dollars in thousands)	Quantitative Information about Level 3 Fair Value Measurements
June 30, 2013	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted              Average)
Impaired Loans	$	3,190	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expenses (2)	-36.6% to 6.3% (-2.9%) 1.6% to 24.6% (9.2%)
Mortgage Servicing Rights	$	41	Discounted Cash Flow	Remaining term Discount rate	2.9 years to 7 years (3.49 years) 9.5% to 10.5%(10%)

(1) The fair value is determined through independent appraisals by certified appraisers of the underlying collateral.

(2) Appraisals may be adjusted by management for qualitative factors and estimated liquidation expenses. The range and weighted average of liquidation expenses are expressed as a percent of discounted collateral value and other appraisal adjustments are presented as a percentage of the appraised amounts.

The reported fair values of financial instruments are based on a variety of factors. Where possible, fair values represent quoted market prices for identical or comparable instruments. In other cases, fair values have been estimated based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of risk. Intangible values assigned to customer relationships are not reflected in the reported fair values. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of year end or that will be realized in the future.

The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments:

Cash and Cash Equivalents: The carrying amount for cash and cash equivalents is a reasonable estimate of fair value.

Investment Securities: Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.

Loans Held for Sale: Loans held for sale are carried at cost. The fair value is based on what the secondary market would offer for loans with similar characteristics.

Loans: The fair value for net loans is estimated by discounting future cash flows using current market inputs at which loans with similar terms and qualities would be made to borrowers of similar credit quality. Where quoted market prices were available, primarily for certain residential mortgage loans, such market rates were utilized as estimates for fair value.

Accrued interest receivable: The carrying amount of accrued interest receivable approximates its fair value.

Deposits: Noninterest bearing and interest bearing demand deposits and savings deposits are valued at the amount payable on demand as of year end. The fair values for time deposits are based on discounted value of cash flows. The discount rates are estimated using rates currently offered for similar instruments with similar remaining maturities.

Federal Funds Purchased and Repurchase Agreements: The carrying amount for federal funds purchased and repurchase agreements are considered to be a reasonable estimate of fair value.

Federal Home Loan Bank borrowings: The fair value of Federal Home Loan Bank borrowings is generally carried at amortized cost. We are required to estimate the fair value of these long-term borrowings. The discounted cash flow method is used to estimate the fair value of Federal Home Loan Bank borrowings.

Accrued Interest Payable: The carrying amount of accrued interest payable approximates its fair value.

Off-Balance-Sheet Instruments: The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The amount of fees currently charged on commitments is determined to be insignificant and, therefore, the carrying value and fair value of off-balance-sheet instruments are not shown.

The reported fair values of financial instruments are based on a variety of factors. Where possible, fair values represent quoted market prices for identical or comparable instruments. In other cases, fair values have been estimated based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of risk. Intangible values assigned to customer relationships are not reflected in the reported fair values. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized or that will be realized in the future.

The estimates of fair values of financial instruments are summarized as follows at June 30, 2013 and December 31, 2012:

	June 30, 2013
	Carrying		Estimated Fair Value
(Amounts Expressed in Thousands)	Amount		Level I		Level II		Level III		Total
Financial assets:
Cash and cash equivalents	$	12,742	$	12,742	$	—	$	—	$	12,742
Investment securities		171,920		206		171,714		—		171,920
Loans		96,859		—		—		98,896		98,896
Accrued interest receivable		1,097		1,097		—		—		1,097
Financial liabilities:
Deposits		245,398		158,500		68,603		—		227,103
Federal funds purchased and repurchase agreements		17,731		17,731		—		—		17,731
Federal Home Loan Bank borrowings		3,562		—		3,997		—		3,997
Accrued interest payable		138		138		—		—		138
	December 31, 2012
	Carrying		Estimated Fair Value
(Amounts Expressed in Thousands)	Amount		Level I		Level II		Level III		Total
Financial assets:
Cash and cash equivalents	$	15,877	$	15,877	$	—	$	—	$	15,877
Investment securities		178,208		205		178,003		—		178,208
Loans held for sale		110		—		110		—		110
Loans		97,206		—		—		98,303		98,303
Accrued interest receivable		1,128		1,128		—		—		1,128
Financial liabilities:
Deposits		246,462		163,526		71,510		—		235,036
Federal funds purchased and repurchase agreements		18,767		18,767		—		—		18,767
Federal Home Loan Bank borrowings		3,606		—		4,199		—		4,199
Accrued interest payable		163		163		—		—		163

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Federal Home Loan Bank Borrowings

6 Months Ended

Jun. 30, 2013

Banking And Thrift [Abstract]

Federal Home Loan Bank Borrowings

NOTE 7 - FEDERAL HOME LOAN BANK BORROWINGS

The Bank is a member of the Federal Home Loan Bank of Pittsburgh. The FHLB borrowings are secured by a blanket lien by the FHLB on certain residential real estate loans or securities with a market value at least equal to the outstanding balances. The remaining maximum borrowing capacity with the FHLB at June 30, 2013 was approximately $36.9 million subject to the purchase of additional FHLB stock. The subsidiary bank had FHLB borrowings of $3,561,537 and $3,606,411 at June 30, 2013 and December 31, 2012, respectively. At June 30, 2013 the subsidiary bank had three fixed rate amortizing advances which totaled $3,561,537 with a weighted average interest rate of 4.78% of which $2,013,861 will mature in 2018 and $1,547,676 will mature in 2023.

The bank also has a line of credit agreement with the Federal Home Loan Bank. The maximum credit available is $19.4 million under the agreement which matures on May 1, 2014 (issued in April 2013). At December 31, 2012 there was a $7 million line of credit agreement which was closed during the second quarter of 2013. There were no borrowings outstanding under these agreements at June 30, 2013 and December 31, 2012, respectively.

Contractual maturities of FHLB borrowings as of June 30, 2013 were as follows:

Due in 2013	$	45,958
Due in 2014		95,267
Due in 2015		99,919
Due in 2016		104,800
Due in 2017		109,918
Due in 2018 and thereafter		3,105,675
Total	$	3,561,537

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Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Summary of Loans Outstanding

Loans outstanding at June 30, 2013 and December 31, 2012, are as follows:

	(Expressed in Thousands)
	June 30, 2013		December 31, 2012
Consumer Real Estate:
Construction	$	432	$	730
Farmland		194		239
Residential 1-4 Family		23,671		22,439
Home Equity Loans		1,760		1,960
Home Equity Lines of Credit		3,320		3,157
Total Consumer Real Estate		29,377		28,525
Commercial Real Estate:
Non-farm, non-residential		40,888		41,164
Multifamily (5 or more) residential properties		10,112		8,986
Total Commercial Real Estate		51,000		50,150
Commercial and Other Loans:
Commercial		5,801		5,626
Non-rated industrial development obligations		8,853		9,954
Other loans		31		23
Total Commercial and Other Loans		14,685		15,603
Consumer Loans:
Installment and other loans to individuals		3,589		4,668
Credit Cards		518		563
Total Consumer Loans		4,107		5,231
Total loans	$	99,169	$	99,509
Less unearned interest and deferred fees		125		122
Net loans	$	99,044	$	99,387

Summary of Contractual Aging of Loans in Past Due, by Class of Loans

The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands):

	June 30, 2013
	Current			30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Total Loans			90 Days or more Past Due and Accruing
Commercial and Other Loans	$	14,526		$	137	$	—	$	22	$	159	$	14,685		$	—
Commercial real estate		48,277			30		—		2,693		2,723		51,000			—
Consumer real estate		29,138			15		143		81		239		29,377			—
Consumer		4,098			4		—		5		9		4,107			1
Unearned interest and deferred fees		(125	)		—		—		—		—		(125	)		—
Total loans	$	95,914		$	186	$	143	$	2,801	$	3,130	$	99,044		$	1
Non-accrual loans included above are as follows:
Commercial and Other Loans	$	6		$	—	$	—	$	22	$	22	$	28		$	—
Commercial real estate		173			30		—		2,693		2,723		2,896			—
Consumer real estate		141			—		143		81		224		365			—
Consumer		5			—		—		4		4		9			—
Total non-accrual loans	$	325		$	30	$	143	$	2,800	$	2,973	$	3,298		$	—

	December 31, 2012
	Current			30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Total Loans			90 Days or more Past Due and Accruing
Commercial and Other Loans	$	15,515		$	65	$	—	$	23	$	88	$	15,603		$	—
Commercial real estate		47,261			31		—		2,858		2,889		50,150			—
Consumer real estate		28,006			139		295		85		519		28,525			—
Consumer		5,214			4		7		6		17		5,231			—
Unearned interest and deferred fees		(122	)		—		—		—		—		(122	)		—
Total loans	$	95,874		$	239	$	302	$	2,972	$	3,513	$	99,387		$	—
Non-accrual loans included above are as follows:
Commercial and Other Loans	$	8		$	—	$	—	$	23	$	23	$	31		$	—
Commercial real estate		257			—		—		2,858		2,858		3,115			—
Consumer real estate		195			108		—		85		193		388			—
Consumer		10			—		1		6		7		17			—
Total non-accrual loans	$	470		$	108	$	1	$	2,972	$	3,081	$	3,551		$	—

Risk Category of Loans by Class of Loan Based on Most Recent Analysis

The following tables present the risk category of loans by class of loans based on the most recent analysis performed and the contractual aging as of June 30, 2013 and December 31, 2012 (in thousands):

June 30, 2013	Pass		Special Mention		Substandard		Doubtful		Total
Commercial and Other	$	14,643	$	—	$	42	$	—	$	14,685
Commercial Real Estate		41,399		3,056		6,545		—		51,000
Construction and Land Development		380		—		246		—		626
Total	$	56,422	$	3,056	$	6,833	$	—	$	66,311
Current	$	56,422	$	3,056	$	3,772	$	—	$	63,250
Past Due 30-59 days		—		—		137		—		137
Past Due 60-89 days		—		—		—		—		—
Past Due 90 days or more		—		—		—		—		—
Non- accrual		—		—		2,924		—		2,924
Total	$	56,422	$	3,056	$	6,833	$	—	$	66,311

December 31, 2012	Pass		Special Mention		Substandard		Doubtful		Total
Commercial and Other	$	15,572	$	—	$	31	$	—	$	15,603
Commercial Real Estate		39,873		3,465		6,812		—		50,150
Construction and Land Development		969		—		—		—		969
Total	$	56,414	$	3,465	$	6,843	$	—	$	66,722
Current	$	56,349	$	3,465	$	3,728	$	—	$	63,542
Past Due 30-59 days		65		—		—		—		65
Past Due 60-89 days		—		—		—		—		—
Past Due 90 days or more		—		—		—		—		—
Non- accrual		—		—		3,115		—		3,115
Total	$	56,414	$	3,465	$	6,843	$	—	$	66,722

Recorded Investment of Loans by Class of Loan Based on Payment Activity

The following table presents the recorded investment in those loan classes based on payment activity as of June 30, 2013 and December 31, 2012 (in thousands):

June 30, 2013	Performing		Non-performing		Total
Consumer	$	4,080	$	27	$	4,107
Consumer Real Estate		27,707		1,044		28,751
Total	$	31,787	$	1,071	$	32,858
December 31, 2012	Performing		Non-performing		Total
Consumer	$	5,214	$	17	$	5,231
Consumer Real Estate		28,247		388		28,635
Total	$	33,461	$	405	$	33,866

Summary of Impaired Loans

Impaired loans at June 30, 2013 and December 31, 2012 are set forth in the following tables (in thousands):

	June 30, 2013
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Commercial and Other Loans	$	33	$	6	$	27	$	33	$	27
Commercial real estate		2,942		459		2,483		2,942		525
Consumer real estate		215		215		—		215		—
Total	$	3,190	$	680	$	2,510	$	3,190	$	552

	December 31, 2012
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
Commercial and Other Loans	$	31	$	8	$	23	$	31	$	23
Commercial real estate		3,115		537		2,578		3,115		619
Consumer real estate		226		226		—		226		—
Total	$	3,372	$	771	$	2,601	$	3,372	$	642

Average Recorded Investment in Impaired Loans

The average recorded investment in impaired loans are set forth below in the following table. No interest income was recognized on impaired loans subsequent to their classification as impaired (in thousands):

	Average Recorded Investment
	For the three months ended				For the six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Commercial and Other Loans		32		36		33		44
Commercial real estate		3,297		3,294		3,339		3,359
Consumer real estate		240		463		243		468
Total	$	3,569	$	3,793	$	3,615	$	3,871

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Nature of Operations and Basis of Presentation

Nature of Operations and Basis of Presentation: First West Virginia Bancorp, Inc. (the “Company”) is a West Virginia Company. The Company provides a variety of banking services to individuals and businesses through the branch network of its affiliate bank (the “Bank”). The Bank operates nine full service branches located in Wheeling (3), Wellsburg, Moundsville, New Martinsville, Buckhannon, and Weston, West Virginia and Bellaire, Ohio. Primary deposit products consist of checking accounts, savings accounts, and certificates of deposit. Primary lending products consist of commercial and residential real estate loans, consumer loans, and business loans.

Principles of Consolidation

Principles of Consolidation: The consolidated financial statements of the Company include the financial statements of the parent and its wholly-owned subsidiary, Progressive Bank, N.A. All significant intercompany transactions and accounts have been eliminated in consolidation.

Use of Estimates

Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for loan losses and the valuation of deferred tax assets.

Cash and Cash Equivalents

Cash and cash equivalents: Cash and cash equivalents consist of cash on hand and amounts due from banks and federal funds sold with maturities of less than 90 days.

Investment Securities

Investment Securities: Investment securities are classified at the time of purchase, based on management’s intention and ability, as securities available for sale or held to maturity. Debt securities classified as held to maturity are stated at cost adjusted for amortization of premium and accretion of discount which are computed using the interest method and recognized as adjustments of interest income. Certain other debt and equity securities have been classified as available for sale to serve principally as a source of liquidity. Unrealized holding gains and losses for available-for-sale securities are reported as a separate component of stockholders’ equity, net of tax, until realized. Realized securities gains and losses are computed using the specific identification method. Interest and dividends on investment securities are recognized as income when earned.

Securities are periodically reviewed for other-than-temporary impairment based upon a number of factors, including, but not limited to, the length of time and extent to which the market value has been less than cost, the financial condition of the underlying issuer, the ability of the issuer to meet contractual obligations, the likelihood of the security’s ability to recover any decline in its market value, and management’s intent and ability to hold the security for a period of time sufficient to allow for a recovery in market value. Among the factors that are considered in determining management’s intent and ability is a review of the Company’s capital adequacy, interest rate risk position and liquidity. The assessment of a security’s ability to recover any decline in market value, the ability of the issuer to meet contractual obligations and management’s intent and ability requires considerable judgment. Once a decline in value is determined to be other than temporary, if the investor does not intend to sell the security, and it is more-likely-than-not that it will not be required to sell the security, before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference between fair value and amortized cost (the difference defined as the non-credit portion) is recognized in other comprehensive income, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost is charged to earnings. At June 30, 2013 and December 31, 2012, there were no investment securities identified by management to be other-than-temporarily impaired. If investments decline in fair value due to adverse changes in the financial markets, charges to income could occur in future periods.

Common stock of the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank represents ownership interest in institutions that are wholly owned by other financial institutions. These equity securities are accounted for at cost and are classified with other assets. The Bank is a member of the FHLB and, as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and, as such, is classified as restricted stock, carried at cost and evaluated by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared with the capital stock amount and the length of time this situation has persisted, (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB, and (d) the liquidity position of the FHLB.

Loans and Loans Held for Sale

Loans and Loans Held for Sale: Loans are generally reported at the principal balance outstanding, net of unearned income. Interest income on loans is accrued based on the principal outstanding. It is the Company’s policy to discontinue the accrual of interest when either the principal or interest is past due 90 days or more, unless the loan is both well secured and in the process of collection. It is the Company’s policy not to recognize interest income on specific impaired loans unless the likelihood of future loss is remote. Interest payments received on such loans are applied as a reduction of the loan principal balance. Nonaccrual loans may be returned to accrual status when none of its principal and interest payments are due and there has been a sustained period of repayment performance. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized over the contractual life of the related loans or commitments as an adjustment of the related loan’s yield. Loans held for sale are carried at the lower of cost or estimated market value in the aggregate. There was one loan held for sale at December 31, 2012 amounting to $109,800. There were no loans held for sale as of June 30, 2013.

The Company has entered into an agreement with the Federal Home Loan Bank of Pittsburgh (“FHLB”) under which the bank may sell conforming one-to-four family residential mortgage loans to the FHLB. The current agreement dated December 28, 2011 provides for a maximum commitment of $5,000,000. This commitment expires on December 28, 2013. Loans sold to the FHLB are sold with limited recourse or credit risk based upon utilization of the original commitment. The bank also maintains the servicing of these loans, for which it is paid a servicing fee. The total amount of loans sold and outstanding to the FHLB were $9,869,132 and $10,267,649 as of June 30, 2013 and December 31, 2012, respectively. These loans were also subject to recourse obligation or credit risk in the amount of $342,873 and $346,249 at June 30, 2013 and December 31, 2012, respectively. No liability has been recorded for the recourse obligation as the likelihood of incurring the liability is considered remote. The amount of income recognized as of a result of this agreement was $11,173 and $18,679 for the three months ended June 30, 2013 and 2012, respectively, and $21,935 and $43,276 for the six months ended June 30, 2013 and 2012, respectively.

Allowance for Loan Losses

Allowance for Loan Losses: The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance, and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses that is charged to operations. The provision is based on management’s evaluation of the adequacy of the allowance for loan losses which encompasses the overall risk characteristics of the various portfolio segments, past experience with losses, the impact of economic conditions on borrowers, and other relevant factors. The estimates used in determining the adequacy of the allowance for loan losses, including the amounts and timing of future cash flows expected on impaired loans, are particularly susceptible to significant changes in the near term.

Management tracks and assigns a historical loss percentage for each loan rating category within each loan type. A rolling three-year historical loss ratio is used, calculated on a quarterly basis.

Management currently utilizes nine qualitative factors that are adjusted based on changes in the lending environment and economic conditions. The qualitative factors include the following: levels of and trends in delinquencies, non-accruals, and charge-offs; trends within the loan portfolio; changes in lending policies and procedures; experience of lending personnel and management oversight; national and local economic trends; concentrations of credit; external factors such as legal and regulatory requirements; changes in the quality of loan review and Board oversight; and changes in the value of underlying collateral. The number of qualitative factors can change. Factors can be added for new risks or taken away if the risk no longer applies. Each loan type will have its own risk profile and management will evaluate and adjust each qualitative factor for each loan type quarterly, if necessary. For example, if one area of the loan portfolio is experiencing sharp increases in growth, it is likely the qualitative factor for trends in the loan portfolio would be increased for that loan type. As levels of delinquencies and non-accrual loans decline for commercial real estate and commercial loans it is likely that factor would be reduced.

In terms of the Company’s loan portfolio, the commercial and industrial loans and commercial real estate loans are deemed to have more risk than the consumer real estate loans and other consumer loans in the portfolio. The commercial loans not secured by real estate are highly dependent on financial condition and are more dependent on economic conditions. The commercial loans secured by real estate are also dependent on economic conditions but generally have stronger forms of collateral. More recently, commercial real estate has been negatively impacted by devaluation so these commercial loans carry a higher qualitative factor for changes in the value of collateral. The commercial loans and commercial real estate loans have historically been responsible for the majority of the Company’s delinquencies, non-accrual loans, and charge-offs so both of these categories carry higher qualitative factors than consumer real estate loans and other consumer loans. The Company has historically experienced very low levels of consumer real estate and consumer loan charge-offs so these qualitative factors are set lower than the commercial real estate and commercial and industrial loans.

Mortgage loans secured by one-to-four family properties and all consumer loans are large groups of smaller-balance homogeneous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all circumstances concerning the loan, the credit worthiness and payment history of the borrower, the length of the payment delay, and the amount of shortfall in relation to the principal and interest owed.

Impaired loans are loans for which it is probable the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Company individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap.

The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectibility while not classifying the loan as impaired, provided the loan is not a commercial or commercial real estate classification. Payments received on nonaccrual loans are applied as a reduction of the loan principal balance. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. When foreclosure is probable, impairment is measured based on the fair value of the collateral.

Individual loan reviews are based upon specific quantitative and qualitative criteria, including the size of the loan, loan quality ratings, value of collateral, repayment ability of borrowers, and historical experience factors. The historical experience factors utilized for individual loan reviews are based upon past loss experience, known trends in losses and delinquencies, the growth of loans in particular markets and industries, and known changes in economic conditions in the particular lending markets. Allowances for homogeneous loans (such as residential mortgage loans, personal loans, etc.) are evaluated based upon historical loss experience, trends in losses and delinquencies, growth of loans in particular markets, and known changes in economic conditions in each lending market. There can be no assurance the allowance for loan losses will be adequate to cover all losses, but management believes the allowance for loan losses in the amount of $2,184,786 at June 30, 2013, was adequate to provide for probable losses from existing loans based on information currently available. While management uses available information to provide for loan losses, the ultimate collectibility of a substantial portion of the loan portfolio, and the need for future additions to the allowance, will be based on changes in economic conditions and other relevant factors. As such, an adverse change in economic activity could reduce cash flows for both commercial and individual borrowers, which would likely cause the Company to experience increases in problem assets, delinquencies and losses on loans.

Goodwill

Goodwill: Goodwill resulted from the Company’s purchase of a less-than-whole financial institution (the “branch”). The goodwill value of $1.6 million is supported ultimately by revenue that is driven by the volume of business transacted. A decline in earnings as a result of a lack of growth or the inability to deliver cost effective services over sustained periods can lead to impairment of goodwill that could adversely impact earnings in future periods.

Goodwill is periodically reviewed for impairment. No impairment losses were recognized. Additionally, future events could cause management to conclude that impairment indicators exist and that the goodwill is impaired, which would result in the Company recording an impairment loss. Any resulting impairment loss could have a material, adverse impact on the Company’s financial condition and results of operations.

Mortgage Servicing Rights ("MSRs")

Mortgage Servicing Rights (“MSRs”): The Company has agreements for the express purpose of selling loans in the secondary market. The Company maintains all servicing rights for these loans. Originated MSRs are recorded by allocating total costs incurred between the loan and servicing rights based on their relative fair values. MSRs are amortized in proportion to the estimated servicing income over the estimated life of the servicing portfolio. Impairment is evaluated based on the fair value of the right, based on portfolio interest rates and prepayment characteristics.

Bank-owned Life Insurance

Bank-owned Life Insurance: Bank owned life insurance consists of investments in life insurance policies on executive officers and other members of the bank’s management. The policies are carried at their net cash surrender value. Changes in the policy value are recorded as an adjustment to the carrying value with the corresponding amount recognized as non-interest income or expense. Earnings on these policies are based on the net earnings on the cash surrender value of the policies. The net cash surrender value of bank-owned life insurance was $3,677,733 and $3,625,013 at June 30, 2013 and December 31, 2012, respectively. The death benefit value of the bank-owned life insurance at June 30, 2013 and December 31, 2012 was $8.7 million and $8.8 million, respectively. An agreement has been executed with all officers whereby a $40,000 death benefit is payable upon the participant’s death while employed by the Company to their designated beneficiary.

Advertising Costs

Advertising Costs: Advertising costs are expensed as the costs are incurred. Advertising expenses amounted to $59,719 and $57,144 for the three months ended June 30, 2013 and June 30, 2012, respectively. For the six month periods ended June 30, 2013 and 2012 advertising expenses amounted to $98,396 and $107,073, respectively.

Premises and Equipment

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Provisions for depreciation and amortization are computed generally using the straight-line method over the estimated useful lives of the assets. When units of property are disposed of, the premises and equipment accounts are relieved of the cost and the accumulated depreciation related to such units. Any resulting gains or losses are credited to or charged against income. Cost of repairs and maintenance is charged to expense as incurred. Additions and improvements are capitalized at cost.

Transfers of Financial Assets

Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Other Real Estate Owned

Other Real Estate Owned: Other real estate owned are carried at the lower of cost or their estimated current fair value, less estimated costs to sell and are included in other assets. Other real estate owned consist primarily of properties acquired through, or in lieu of foreclosures. Any subsequent declines in fair value, and gains or losses on the disposition of these assets are credited to or charged against income.

Income Taxes

Income Taxes: The Company and its subsidiary file a consolidated federal income tax return. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Statement of Income. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Deferred income tax expenses or benefits are based on the changes in the deferred tax asset or liability from period to period.

Earnings Per Common Share

Earnings Per Common Share: Earnings per common share are calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the year. The Company has no securities which would be considered potential common stock.

Stock Dividend

Stock Dividend: In November 2012, the Company declared a 4% stock dividend to stockholders of record on December 19, 2012. The Company also declared a 4% stock dividend in October 2010 to stockholders of record on December 20, 2010. All common share data includes the effect of the stock dividend.

Recent Accounting Pronouncements

Recent Accounting Pronouncements: In January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The amendments clarify that the scope of Update 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. An entity is required to apply the amendments for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of Update 2011-11. This ASU has been adopted and did not have a significant impact on the Company’s financial statements.

In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this Update require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles (GAAP) to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. For nonpublic entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. The Company has provided the necessary disclosures in Note 8.

In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The objective of the amendments in this Update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. generally accepted accounting principles (GAAP). Examples of obligations within the scope of this Update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. U.S. GAAP does not include specific guidance on accounting for such obligations with joint and several liability, which has resulted in diversity in practice. Some entities record the entire amount under the joint and several liability arrangement on the basis of the concept of a liability and the guidance that must be met to extinguish a liability. Other entities record less than the total amount of the obligation, such as an amount allocated, an amount corresponding to the proceeds received, or the portion of the amount the entity agreed to pay among its co-obligors, on the basis of the guidance for contingent liabilities. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter. This ASU is not expected to have a significant impact on the Company’s financial statements.

In April 2013, the FASB issued ASU 2013-07, Presentation of Financial Statements (Topic 205): Application of the Liquidation Basis of Accounting. The objective of this Update is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2012-210 – Presentation of Financial Statements (Topic 205), which has been deleted. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2013
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Entity Registrant Name	FIRST WEST VIRGINIA BANCORP INC
Entity Central Index Key	0000037049
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	1,728,730

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2013

Investments Debt And Equity Securities [Abstract]

Amortized Cost and Estimated Fair Values of Investment Securities

The amortized cost and estimated fair values of investment securities are as follows at June 30, 2013 and December 31, 2012:

	(Expressed in thousands) June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale:
Obligations of U.S. Government corporations and agencies	$	44,093	$	3	$	(1,576	)	$	42,520
Obligations of states and political subdivisions		51,847		1,862		(783	)		52,926
Mortgage-backed securities		77,589		537		(1,858	)		76,268
Equity securities		180		28		(2	)		206
Total available-for-sale	$	173,709	$	2,430	$	(4,219	)	$	171,920
	(Expressed in thousands) December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale:
Obligations of U.S. Government corporations and agencies		47,101	$	201	$	(7	)	$	47,295
Obligations of states and political subdivisions		48,393		3,692		(55	)		52,030
Mortgage-backed securities		77,513		1,218		(53	)		78,678
Equity securities		183		22		—			205
Total available-for-sale		173,190		5,133		(115	)		178,208

Gross Unrealized Losses and Fair Value for Investment Securities by Investment Category and Continuous Unrealized Loss Position Time

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at June 30, 2013 and December 31, 2012:

	(Expressed in thousands)
	June 30, 2013
	Less than Twelve Months					Twelve Months or Greater				Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Government corporations and agencies	$	40,013	$	(1,576	)	$	—	$	—	$	40,013	$	(1,576	)
Obligations of states and political subdivisions		11,646		(783	)		—		—		11,646		(783	)
Mortgage-backed securities		53,704		(1,858	)		—		—		53,704		(1,858	)
Equity securities		41		(2	)		—		—		41		(2	)
Total	$	105,404	$	(4,219	)	$	—	$	—	$	105,404	$	(4,219	)

	(Expressed in thousands)
	December 31, 2012
	Less than Twelve Months					Twelve Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Government corporations and agencies		6,993	$	(7	)	$	—	$	—		$	6,993	$	(7	)
Obligations of states and political subdivisions		2,721		(55	)		—		—			2,721		(55	)
Mortgage-backed securities		23,752		(52	)		82		(1	)		23,834		(53	)
Total	$	33,466	$	(114	)	$	82	$	(1	)	$	33,548	$	(115	)

Amortized Cost and Fair Value of Securities Available For Sale, By Contractual Maturity

The amortized cost and fair value of investment securities available for sale at June 30, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	(Expressed in thousands)
	June 30, 2013
	Amortized Cost		Fair Value
Due in one year or less	$	781	$	788
Due after one year through five years		1,977		2,066
Due after five years through ten years		66,489		65,331
Due after ten years		26,693		27,261
		95,940		95,446
Mortgage-backed securities		77,589		76,268
Equity securities		180		206
Total	$	173,709	$	171,920

Recorded Book Value, Fair Value and Approximate Yield of Investment Securities by Contractual Maturity

The maturity distribution using book value including accretion of discounts and amortization of premiums and approximate yield of investment securities at June 30, 2013 and December 31, 2012 are presented in the following table. Tax equivalent yield basis was used on tax exempt obligations. Approximate yield was calculated using a weighted average of yield to maturities. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(dollars in thousands)	June 30, 2013							December 31, 2012
	Amortized Cost		Fair Value		Yield			Amortized Cost		Fair Value		Yield
U.S. Government corporations and agencies
Within One Year	$	1	$	1		0.01	%	$	10	$	10		0.01	%
After One But Within Five Years		—		—		—			6,000		6,034		1.88
After Five But Within Ten Years		44,089		42,516		1.72			41,088		41,248		1.75
After Ten Years		3		3		0.88			3		3		0.87
		44,093		42,520		1.72			47,101		47,295		1.77
States & Political Subdivisions
Within One Year		780		787		5.05			970		990		4.98
After One But Within Five Years		1,977		2,066		6.38			1,101		1,158		5.92
After Five But Within Ten Years		22,400		22,816		5.16			19,439		20,633		5.23
After Ten Years		26,690		27,257		5.83			26,883		29,249		5.90
		51,847		52,926		5.55			48,393		52,030		5.62
Mortgage-Backed Securities		77,589		76,268		2.08			77,513		78,678		2.01
Equity Securities		180		206		2.88			183		205		1.97
Total	$	173,709	$	171,920		3.06	%	$	173,190	$	178,208		3.00	%

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Disclosures About Fair Value of Financial Instruments - Estimates of Fair Values of Financial Instruments (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Financial assets:
Loans held for sale	$ 0	$ 109,800
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	12,742,000	15,877,000
Investment securities	171,920,000	178,208,000
Loans held for sale		110,000
Loans	96,859,000	97,206,000
Accrued interest receivable	1,097,000	1,128,000
Financial liabilities:
Deposits	245,398,000	246,462,000
Federal funds purchased and repurchase agreements	17,731,000	18,767,000
Federal Home Loan Bank borrowings	3,562,000	3,606,000
Accrued interest payable	138,000	163,000
Level I [Member]
Financial assets:
Cash and cash equivalents	12,742,000	15,877,000
Investment securities	206,000	205,000
Accrued interest receivable	1,097,000	1,128,000
Financial liabilities:
Deposits	158,500,000	163,526,000
Federal funds purchased and repurchase agreements	17,731,000	18,767,000
Accrued interest payable	138,000	163,000
Level II [Member]
Financial assets:
Investment securities	171,714,000	178,003,000
Loans held for sale		110,000
Financial liabilities:
Deposits	68,603,000	71,510,000
Federal Home Loan Bank borrowings	3,997,000	4,199,000
Level III [Member]
Financial assets:
Loans	98,896,000	98,303,000
Fair Value [Member]
Financial assets:
Cash and cash equivalents	12,742,000	15,877,000
Investment securities	171,920,000	178,208,000
Loans held for sale		110,000
Loans	98,896,000	98,303,000
Accrued interest receivable	1,097,000	1,128,000
Financial liabilities:
Deposits	227,103,000	235,036,000
Federal funds purchased and repurchase agreements	17,731,000	18,767,000
Federal Home Loan Bank borrowings	3,997,000	4,199,000
Accrued interest payable	$ 138,000	$ 163,000