Credit Quality Indicators:

6 Months Ended

Jun. 30, 2011

Credit Quality Indicators: [Abstract]

Credit Quality Indicators:

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of June 30, 2011 and December 31, 2010, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

June 30, 2011

			Special		Sub-
(In Thousands of Dollars)	Pass		Mention		standard		Doubtful		Not Rated		Total
Commercial real estate
Owner occupied	$	87,297	$	5,902	$	12,260	$	—	$	—	$	105,459
Non-owner occupied		62,191		1,162		10,911		—		—		74,264
Other		12,639		597		2,419		—		—		15,655
Commercial		66,646		4,302		3,852		—		—		74,800
Total	$	228,773	$	11,963	$	29,442	$	—	$	—	$	270,178

December 31, 2010

			Special		Sub-
(In Thousands of Dollars)	Pass		Mention		standard		Doubtful		Not Rated		Total
Commercial real estate
Owner occupied	$	91,976	$	3,893	$	15,098	$	—	$	—	$	110,967
Non-owner occupied		63,502		1,075		11,812		—		—		76,389
Other		12,005		786		3,747		—		—		16,538
Commercial		65,358		4,076		7,201		—		—		76,635
Total	$	232,841	$	9,830	$	37,858	$	—	$	—	$	280,529

The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential, consumer and indirect 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 residential, consumer and indirect auto loans based on payment activity as of June 30, 2011 and December 31, 2010. Nonperforming loans are loans past due 90 days and still accruing interest and nonaccrual loans.

June 30, 2011

	Residential Real Estate				Consumer
			Home Equity
	1-4 Family		Lines of
(In Thousands of Dollars)	Residential		Credit		Indirect		Direct		Other
Performing	$	142,891	$	21,707	$	116,186	$	11,469	$	1,465
Nonperforming		3,755		951		65		38		—
Total	$	146,646	$	22,658	$	116,251	$	11,507	$	1,465

	Residential Real Estate				Consumer
			Home Equity
	1-4 Family		Lines of
(In Thousands of Dollars)	Residential		Credit		Indirect		Direct		Other
Performing	$	149,891	$	22,799	$	119,903	$	11,255	$	1,461
Nonperforming		3,552		825		80		48		24
Total	$	153,443	$	23,624	$	119,983	$	11,303	$	1,485