Loans:

Loan balances were as follows:

(In Thousands of Dollars)	March 31, 2014			December 31, 2013
Commercial real estate
Owner occupied	$	84,768		$	86,286
Non-owner occupied		105,192			107,625
Other		30,329			24,381
Commercial		101,225			105,023
Residential real estate
1-4 family residential		143,309			144,225
Home equity lines of credit		25,381			26,448
Consumer
Indirect		121,446			121,446
Direct		9,809			10,237
Other		2,746			3,031
Subtotal	$	624,205		$	628,702
Net deferred loan (fees) costs		1,981			1,982
Allowance for loan losses		(7,387	)		(7,568	)
Net loans	$	618,799		$	623,116

The following tables present the activity in the allowance for loan losses by portfolio segment for the three month periods ended March 31, 2014 and 2013:

Three Months Ended March 31, 2014

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Unallocated		Total
Allowance for loan losses
Beginning balance	$	2,752		$	1,219		$	1,964		$	1,419		$	214	$	7,568
Provision for loan losses		22			(162	)		(228	)		518			180		330
Loans charged off		(57	)		0			(70	)		(709	)		0		(836	)
Recoveries		34			8			15			268			0		325
Total ending allowance balance	$	2,751		$	1,065		$	1,681		$	1,496		$	394	$	7,387

Three Months Ended March 31, 2013

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Unallocated		Total
Allowance for loan losses
Beginning balance	$	3,392		$	1,453		$	1,569		$	951		$	264	$	7,629
Provision for loan losses		(56	)		1			35			250			25		255
Loans charged off		(81	)		(80	)		(102	)		(400	)		0		(663	)
Recoveries		102			11			8			166			0		287
Total ending allowance balance	$	3,357		$	1,385		$	1,510		$	967		$	289	$	7,508

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2014 and December 31, 2013. The recorded investment in loans includes the unpaid principal balance and unamortized loan origination fees and costs, but excludes accrued interest receivable, which is not considered to be material:

March 31, 2014

(In Thousands of Dollars)	Commercial Real Estate		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	190	$	14	$	184	$	0	$	0	$	388
Collectively evaluated for impairment		2,561		1,051		1,497		1,496		394		6,999
Total ending allowance balance	$	2,751	$	1,065	$	1,681	$	1,496	$	394	$	7,387

Loans:
Loans individually evaluated for impairment	$	6,026	$	2,265	$	3,230	$	220	$	0	$	11,741
Loans collectively evaluated for impairment		213,295		98,961		164,957		137,232		0		614,445
Total ending loans balance	$	219,321	$	101,226	$	168,187	$	137,452	$	0	$	626,186

December 31, 2013

(In Thousands of Dollars)	Commercial Real Estate		Commercial		Residential Real Estate		Consumer		Unallocated		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	166	$	110	$	202	$	82	$	0	$	560
Collectively evaluated for impairment		2,586		1,109		1,762		1,337		214		7,008
Total ending allowance balance	$	2,752	$	1,219	$	1,964	$	1,419	$	214	$	7,568

Loans:
Loans individually evaluated for impairment	$	6,623	$	2,430	$	2,554	$	363	$	0	$	11,970
Loans collectively evaluated for impairment		210,739		102,593		167,597		137,785		0		618,714
Total ending loans balance	$	217,362	$	105,023	$	170,151	$	138,148	$	0	$	630,684

The following tables present information related to impaired loans by class of loans as of March 31, 2014, December 31, 2013 and March 31, 2013:

(In Thousands of Dollars)	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized
March 31, 2014
With no related allowance recorded:
Commercial real estate
Owner occupied	$	2,409	$	2,041	$	0	$	2,575	$	5
Non-owner occupied		511		410		0		391		0
Other		0		0		0		0		0
Commercial		1,110		911		0		931		5
Residential real estate
1-4 family residential		1,625		1,533		0		1,332		14
Home equity lines of credit		157		148		0		115		2
Consumer		307		220		0		239		0
Subtotal		6,119		5,263		0		5,583		26

With an allowance recorded:
Commercial real estate
Owner occupied		2,186		1,993		119		1,654	25
Non-owner occupied		1,586		1,582		71		1,586		20
Other		0		0		0		0		0
Commercial		1,356		1,354		14		1,391		1
Residential real estate
1-4 family residential		1,516		1,403		174		1,390		11
Home equity lines of credit		147		146		10		146		1
Consumer		0		0		0		0		0
Subtotal		6,791		6,478		388		6,167		58
Total	$	12,910	$	11,741	$	388	$	11,750	$	84

	December 31, 2013						For three months ended March 31, 2013
(In Thousands of Dollars)	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment
With no related allowance recorded:
Commercial real estate
Owner occupied	$	4,302	$	3,762	$	0	$	2,692
Non-owner occupied		491		389		0		453
Other		0		0		0		0
Commercial		1,007		971		0		1,384
Residential real estate
1-4 family residential		1,026		961		0		940
Home equity lines of credit		107		99		0		175
Consumer		111		112		0		0
Subtotal		7,044		6,294		0		5,644

With an allowance recorded:
Commercial real estate
Owner occupied		886		884		91		2,770
Non-owner occupied		1,593		1,588		75		2,029
Other		0		0		0		0
Commercial		1,462		1,459		110		496
Residential real estate
1-4 family residential		1,458		1,347		190		0
Home equity lines of credit		148		147		12		0
Consumer		247		251		82		0
Subtotal		5,794		5,676		560		5,295
Total	$	12,838	$	11,970	$	560	$	10,939

Cash basis interest recognized during the three month period ended March 31, 2014 was materially equal to interest income recognized. Interest income recognized and cash basis interest recognized during impairment for the three month period ended March 31, 2013 was immaterial.

Nonaccrual loans and loans past due 90 days or more still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following table presents the recorded investment in nonaccrual and loans past due 90 days or more still on accrual by class of loans as of March 31, 2014 and December 31, 2013:

	March 31, 2014				December 31, 2013
(In Thousands of Dollars)	Nonaccrual		Loans Past Due 90 Days or More Still Accruing		Nonaccrual		Loans Past Due 90 Days or More Still Accruing
Commercial real estate
Owner occupied	$	2,499	$	0	$	2,806	$	0
Non-owner occupied		424		0		405		0
Other		0		0		0		0
Commercial		1,875		0		1,993		13
Residential real estate
1-4 family residential		2,588		490		2,584		526
Home equity lines of credit		275		0		280		0
Consumer
Indirect		179		96		308		94
Direct		41		3		55		3
Other		0		8		0		10
Total	$	7,881	$	597	$	8,431	$	646

The following table presents the aging of the recorded investment in past due loans as of March 31, 2014 and December 31, 2013 by class of loans:

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
March 31, 2014
Commercial real estate
Owner occupied	$	0	$	0	$	2,499	$	2,499	$	81,896	$	84,395
Non-owner occupied		0		0		424		424		104,306		104,730
Other		0		0		0		0		30,196		30,196
Commercial		0		0		1,875		1,875		99,351		101,226
Residential real estate
1-4 family residential		238		7		3,078		3,323		139,483		142,806
Home equity lines of credit		0		36		275		311		25,070		25,381
Consumer
Indirect		1,728		353		275		2,356		122,541		124,897
Direct		142		4		44		190		9,619		9,809
Other		6		9		8		23		2,723		2,746
Total	$	2,114	$	409	$	8,478	$	11,001	$	615,185	$	626,186

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
December 31, 2013
Commercial real estate
Owner occupied	$	48	$	0	$	2,806	$	2,854	$	83,065	$	85,919
Non-owner occupied		0		0		405		405		106,762		107,167
Other		0		0		0		0		24,276		24,276
Commercial		14		0		2,006		2,020		103,003		105,023
Residential real estate
1-4 family residential		573		141		3,110		3,824		139,879		143,703
Home equity lines of credit		35		0		280		315		26,133		26,448
Consumer
Indirect		2,004		539		402		2,945		121,935		124,880
Direct		204		31		58		293		9,944		10,237
Other		63		6		10		79		2,952		3,031
Total	$	2,941	$	717	$	9,077	$	12,735	$	617,949	$	630,684