Loans and the Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2013

Loans and the Allowance for Loan Losses [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

	June 30,		December 31,
	2013		2012
	(in thousands)
Commercial and industrial	$	195,507	$	181,682
Commercial real estate		515,914		497,392
Construction		38,564		40,277
Residential mortgage		152,236		169,094
Installment		438		1,104
Subtotal		902,659		889,549
Net deferred loan costs		163		123
Total loans	$	902,822	$	889,672

Loans Receivable on Non-Accrual Status

Loans Receivable on Non-Accrual Status
	June 30,  2013		December 31, 2012
	(in thousands)
Commercial and industrial	$	103	$	214
Commercial real estate		175		354
Construction		—		319
Residential mortgage		2,230		2,729
Total loans receivable on non-accrual status	$	2,508	$	3,616

Credit Quality Indicators

Credit Quality Indicators
	June 30, 2013
	Pass		Special Mention		Substandard		Doubtful		Total
	(in thousands)
Commercial and industrial	$	191,133	$	2,970	$	1,404	$	—	$	195,507
Commercial real estate		492,688		12,641		10,585		—		515,914
Construction		37,570		—		994		—		38,564
Residential mortgage		147,697		988		3,551		—		152,236
Installment		310		—		128		—		438
Total loans	$	869,398	$	16,599	$	16,662	$	—	$	902,659

	December 31, 2012
	Pass		Special Mention		Substandard		Doubtful		Total
	(in thousands)
Commercial and industrial	$	176,818	$	3,281	$	1,583	$	—	$	181,682
Commercial real estate		462,266		18,945		16,181		—		497,392
Construction		38,303		810		1,164		—		40,277
Residential mortgage		163,769		993		4,332		—		169,094
Installment		967		—		137		—		1,104
Total loans	$	842,123	$	24,029	$	23,397	$	—	$	889,549

Analysis of Impaired Loans

	June 30, 2013
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
	(in thousands)
No Related Allowance Recorded
Commercial real estate	$	1,275	$	1,576	$	—
Total	$	1,275	$	1,576	$	—
With An Allowance Recorded
Commercial real estate	$	175	$	374	$	63
Residential mortgage		1,235		1,235		77
Total	$	1,410	$	1,609	$	140
Total
Commercial real estate	$	1,450	$	1,950	$	63
Residential mortgage		1,235		1,235		77
Total (including related allowance)	$	2,685	$	3,185	$	140
	December 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(in thousands)
No Related Allowance Recorded
Commercial real estate	$	1,500	$	1,950	$	—
Total	$	1,500		1,950	$	—
With An Allowance Recorded
Commercial real estate	$	4,180	$	4,180	$	493
Residential mortgage		1,255		1,255		152
Total	$	5,435	$	5,435	$	645
Total
Commercial real estate	$	5,680	$	6,130	$	493
Residential mortgage		1,255		1,255		152
Total (including related allowance)	$	6,935	$	7,385	$	645

The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2013 and 2012.

	Three Months Ended June 30,								Six Months Ended June 30,
	2013				2012				2013				2012
	Average  Recorded  Investment		Interest  Income  Recognized		Average  Recorded  Investment		Interest  Income  Recognized		Average  Recorded  Investment		Interest  Income  Recognized		Average  Recorded  Investment		Interest  Income  Recognized
Impaired loans with no related allowance recorded:
Commercial real estate	$	1,450	$	19	$	2,250	$	28	$	1,450	$	38	$	2,250	$	58
Total	$	1,450	$	19	$	2,250	$	28	$	1,450	$	38	$	2,250	$	58
Impaired loans with an allowance recorded:
Commercial real estate	$	3,908	$	34	$	4,180	$	34	$	4,087	$	68	$	4,180	$	69
Construction		—		—		2,873		16		—		—		3,093		16
Residential mortgage		1,244		11		4,016		33		1,244		21		4,217		59
Total	$	5,152	$	45	$	11,069	$	83	$	5,331	$	89	$	11,490	$	144
Total impaired loans:
Commercial real estate	$	5,358	$	53	$	6,430	$	62	$	5,537	$	106	$	6,430	$	127
Construction		—		—		2,873		16		—		—		3,093		16
Residential mortgage		1,244		11		4,016		33		1,244		21		4,217		59
Total	$	6,602	$	64	$	13,319	$	111	$	6,781	$	127	$	13,740	$	202

Aging Analysis

Aging Analysis
	June 30, 2013
	30-59 Days  Past Due		60-89 Days  Past Due		Greater Than  90 Days		Total Past Due		Current		Total Loans  Receivable		Loans  Receivable > 90  Days And  Accruing
	(in thousands)
Commercial and Industrial	$	810	$	690	$	103	$	1,603	$	193,904	$	195,507	$	—
Commercial Real Estate		825		—		175		1,000		514,914		515,914		—
Construction		—		—		—		—		38,564		38,564		—
Residential Mortgage		480		—		2,283		2,763		149,473		152,236		53
Installment		8		—		—		8		430		438		—
Total	$	2,123	$	690	$	2,561	$	5,374	$	897,285	$	902,659	$	53
	December 31, 2012
	30-59 Days   Past Due		60-89 Days  Past Due		Greater Than  90 Days		Total Past  Due		Current		Total Loans  Receivable		Loans  Receivable > 90  Days And  Accruing
	(in thousands)
Commercial and Industrial	$	590	$	—	$	216	$	806	$	180,876	$	181,682	$	—
Commercial Real Estate		1,012		703		354		2,069		495,323		497,392		—
Construction		—		—		319		319		39,958		40,277		—
Residential Mortgage		2,017		628		2,784		5,429		163,665		169,094		55
Installment		23		—		—		23		1,081		1,104		—
Total	$	3,642	$	1,331	$	3,673	$	8,646	$	880,903	$	889,549	$	55

Allowance for Loan and Lease Losses

Allowance for loan and lease losses
	June 30, 2013
	C & I		Comm R/E		Construction		Res Mtge		Installment		Unallocated		Total
	(in thousands)
Allowance for loan and lease losses:
Individually evaluated for impairment	$	—	$	63	$	—	$	77	$	—	$	—	$	140
Collectively evaluated for impairment		2,422		5,270		318		1,264		29		759		10,062
Total	$	2,422	$	5,333	$	318	$	1,341	$	29	$	759	$	10,202
Loans Receivable
Individually evaluated for impairment	$	—	$	1,450	$	—	$	1,235	$	—	$	—	$	2,685
Collectively evaluated for impairment		192,613		496,188		37,120		134,364		308		—		860,593
Loans acquired with discounts related to credit quality		2,894		18,276		1,444		16,637		130		—		39,381
Total	$	195,507	$	515,914	$	38,564	$	152,236	$	438	$	—	$	902,659

Allowance for loan and lease losses
	December 31, 2012
	C & I		Comm R/E		Construction		Res Mtge		Installment		Unallocated		Total
	(in thousands)
Allowance for loan and lease losses:
Individually evaluated for impairment	$	—	$	493	$	—	$	152	$	—	$	—	$	645
Collectively evaluated for impairment		2,424		4,830		313		1,380		113		532		9,592
Total	$	2,424	$	5,323	$	313	$	1,532	$	113	$	532	$	10,237
Loans Receivable
Individually evaluated for impairment	$	—	$	5,680	$	—	$	1,255	$	—	$	—	$	6,935
Collectively evaluated for impairment		177,644		470,797		38,172		146,930		973		—		834,516
Loans acquired with discounts related to credit quality		4,038		20,915		2,105		20,909		131		—		48,098
Total	$	181,682	$	497,392	$	40,277	$	169,094	$	1,104	$	—	$	889,549

	Three Months Ended June 30, 2013
	C & I		Comm R/E			Construction		Res Mtge			Installment			Unallocated			Total
	(in thousands)
Balance at April 1,	$	2,083	$	5,353		$	284	$	1,378		$	103		$	1,031		$	10,232
Charge offs		—		(50	)		—		—			(11	)		—			(61	)
Recoveries		21		8			—		—			2			—			31
Provision		318		22			34		(37	)		(65	)		(272	)		—
Balance at June 30,	$	2,422	$	5,333		$	318	$	1,341		$	29		$	759		$	10,202

	Six Months Ended June 30, 2013
	C & I			Comm R/E			Construction		Res Mtge			Installment			Unallocated		Total
	(in thousands)
Balance at January 1,	$	2,424		$	5,323		$	313	$	1,532		$	113		$	532	$	10,237
Charge offs		—			(50	)		—		—			(16	)		—		(66	)
Recoveries		21			8			—		—			2			—		31
Provision		(23	)		52			5		(191	)		(70	)		227		—
Balance at June 30,	$	2,422		$	5,333		$	318	$	1,341		$	29		$	759	$	10,202

	Three Months Ended June 30, 2012
	C & I			Comm R/E		Construction			Res Mtge		Installment			Unallocated		Total
	(in thousands)
Balance at April 1,	$	1,784		$	5,876	$	637		$	1,234	$	54		$	169	$	9,754
Charge offs		—			—		—			—		(5	)		—		(5	)
Recoveries		—			—		540			38		1			—		579
Provision		(37	)		297		(728	)		28		9			324		(107	)
Balance at June 30,	$	1,747		$	6,173	$	449		$	1,300	$	59		$	493	$	10,221

	Six Months Ended June 30, 2012
	C & I		Comm R/E		Construction			Res Mtge			Installment			Unallocated		Total
	(in thousands)
Balance at January 1,	$	1,527	$	5,972	$	707		$	1,263		$	51		$	82	$	9,602
Charge offs		—		—		—			—			(8	)		—		(8	)
Recoveries		—		—		540			85			2			—		627
Provision		220		201		(798	)		(48	)		14			411		—
Balance at June 30,	$	1,747	$	6,173	$	449		$	1,300		$	59		$	493	$	10,221