The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the past due status as of June 30, 2011 and December 31, 2010:

Age Analysis of Past Due Loans Receivables

									June 30, 2011
													Loans Receivable
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivables		> 90 Days and Accruing
Residential mortgage	$	109	$	—	$	1,918	$	2,027	$	26,860	$	28,887	$	—
Commercial mortgage		48		—		733		781		231,810		232,591		—
Commercial:
Commercial term		6		—		885		891		79,210		80,101		—
Commercial construction		—		—		3,185		3,185		25,129		28,314		—
Lease financing		—		—		77		77		308		385		1
Consumer:
Home equity		61		3		58		122		39,027		39,149		—
Other		80		121		25		226		7,820		8,046		22
Total	$	304	$	124	$	6,881	$	7,309	$	410,164	$	417,473	$	23

									December 31, 2010
													Loans Receivable
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivables		> 90 Days and Accruing
Residential mortgage	$	77	$	110	$	2,334	$	2,521	$	28,408	$	30,929	$	—
Commercial mortgage		175		—		834		1,009		217,090		218,099		—
Commercial:
Commercial term		73		182		360		615		69,965		70,580		—
Commercial construction		—		—		3,180		3,180		23,784		26,964		—
Lease financing		41		—		273		314		584		898		—
Consumer:
Home equity		33		—		58		91		40,306		40,397		—
Other		71		—		2		73		8,231		8,304		—
Total	$	470	$	292	$	7,041	$	7,803	$	388,368	$	396,171	$	—

The following table sets forth those assets that are: (i) placed on non-accrual status, (ii) contractually delinquent by 90 days or more and still accruing, (iii) troubled debt restructurings other than those included in items (i) and (ii), and (iv) OREO as a result of foreclosure or voluntary transfer to DNB as well as other repossessed assets.

Non-Performing Assets

(Dollars in thousands)	June 30 2011		Dec. 31 2010
Non-accrual loans:
Residential mortgage	$	1,918	$	2,334
Commercial mortgage		733		834
Commercial		4,076		3,722
Lease financing		76		273
Consumer		63		60
Total non-accrual loans		6,866		7,223
Loans 90 days past due and still accruing (*)		23		—
Troubled debt restructurings		—		—
Total non-performing loans		6,889		7,223
Other real estate owned & other repossessed property		3,966		4,324
Total non-performing assets	$	10,855	$	11,547

Asset quality ratios:

Non-performing loans to total loans	1.65	%	1.82	%
Non-performing assets to total assets	1.72		1.92
Allowance for credit losses to:
Total loans and leases	1.54		1.49
Non-performing loans and leases	93.5		81.5

(*) One loan at December 31, 2010 had a balance less than $1,000

The following tables summarize information in regards to impaired loans by loan portfolio class as of and for the three and six months ended June 30, 2011 and as of and for the year ended December 31, 2010.

Impaired Loans

June 30, 2011

(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment 3 months ended June 30, 2011		Average Recorded Investment 6 months ended June 30, 2011		Interest Income Recognized 3 months ended June 30, 2011		Interest Income Recognized 6 months ended June 30, 2011
With no related allowance recorded:
Residential mortgage	$	2,031	$	2,387	$	—	$	323	$	430	$	—	$	—
Commercial mortgage		681		683		—		641		688		—		5
Commercial:
Commercial term		157		157		—		201		199		—		1
Commercial construction		—		—		—		462		462		—		—
Lease financing		76		76		—		108		163		—		—
Consumer		60		61		—		61		61		—		—
With allowance recorded:
Residential mortgage		—		—		—		1,578		1,648		—		—
Commercial mortgage		52		52		25		26		35		—		—
Commercial:
Commercial term		735		757		377		761		623		—		—
Commercial construction		3,184		3,506		176		2,720		2,720		—		—
Lease financing		—		—		—		66		44		—		—
Consumer		—		—		—		—		—		—		—
Total:
Residential mortgage		2,031		2,387		—		1,901		2,078		—		—
Commercial mortgage		733		735		25		667		723		—		5
Commercial:
Commercial term		892		914		377		962		822		—		1
Commercial construction		3,184		3,506		176		3,182		3,182		—		—
Lease financing		76		76		—		174		207		—		—
Consumer		60		61		—		61		61		—		—
Total	$	6,976	$	7,679	$	578		6,947	$	7,073	$	—	$	6

	December 31, 2010
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential mortgage	$	638	$	780	$	—	$	1,092	$	—
Commercial mortgage		782		792		—		916		70
Commercial:
Commercial term		197		250		—		282		3
Commercial construction		460		895		—		818		31
Lease financing		273		826		—		335		7
Consumer		60		61		—		43		1
With allowance recorded:
Residential mortgage		1,696		2,071		103		1,606		—
Commercial mortgage		52		52		22		39		—
Commercial:
Commercial term		345		345		145		369		1
Commercial construction		2,720		2,720		223		3,063		—
Lease financing		—		—		—		—		—
Consumer		—		—		—		—		—
Total:
Residential mortgage		2,334		2,851		103		2,698		—
Commercial mortgage		834		844		22		955		70
Commercial:
Commercial term		542		595		145		651		4
Commercial construction		3,180		3,615		223		3,881		31
Lease financing		273		826		—		335		7
Consumer		60		61		—		43		1
Total	$	7,223	$	8,792	$	493	$	8,563	$	113

The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the DNB's internal risk rating system as of June 30, 2011 and December 31, 2010.

Credit Quality Indicators

	June 30, 2011
(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Residential mortgage	$	27,339	$	—	$	1,548	$	—	$	28,887
Commercial mortgage		215,560		7,639		9,392		—		232,591
Commercial:
Commercial term		78,512		214		978		397		80,101
Commercial construction		19,431		—		8,883		—		28,314
Lease financing		385		—		—		—		385
Consumer:
Home equity		39,081		—		68		—		39,149
Other		8,046		—		—		—		8,046
Total	$	388,354	$	7,853	$	20,869	$	397	$	417,473

December 31, 2010

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Residential mortgage	$	28,595	$	—	$	2,334	$	—	$	30,929
Commercial mortgage		202,062		10,054		5,983		—		218,099
Commercial:
Commercial term		68,916		241		1,423		—		70,580
Commercial construction		18,294		—		8,670		—		26,964
Lease financing		765		—		—		133		898
Consumer:
Home equity		40,386		—		11		—		40,397
Other		8,304		—		—		—		8,304
Total	$	367,322	$	10,295	$	18,421	$	133	$	396,171

The following tables sets forth the composition of DNB's allowance for credit losses as of June 30, 2011 and activity for the quarter and six months ended June 30, 2011.

Allowance for Credit Losses and Recorded Investment in Loans Receivables

(Dollars in thousands)	Commercial			Lease financing			Residential mortgage			Consumer			Unallocated		Total
Allowance for credit losses:
Beginning balance - April 1, 2011	$	4,472		$	121		$	521		$	486		$	707	$	6,307
Charge-offs		(6	)		(187	)		(126	)		—			—		(319	)
Recoveries		1			—			16			12			—		29
Provisions		218			85			(25	)		(16	)		164		426
Ending balance - June 30, 2011	$	4,685		$	19		$	386		$	482		$	871	$	6,443

(Dollars in thousands)	Commercial			Lease financing			Residential mortgage			Consumer			Unallocated		Total
Allowance for credit losses:
Beginning balance - January 1, 2011	$	4,387		$	86		$	454		$	482		$	475	$	5,884
Charge-offs		(20	)		(187	)		(166	)		—			—		(373	)
Recoveries		5			1			62			12			—		80
Provisions		313			119			36			(12	)		396		852
Ending balance - June 30, 2011	$	4,685		$	19		$	386		$	482		$	871	$	6,443
Ending balance: individually evaluated for impairment	$	578		$	—		$	—		$	—		$	—	$	578
Ending balance: collectively evaluated for impairment	$	4,107		$	19		$	386		$	482		$	871	$	5,865
Loans receivables:
Ending balance	$	341,006		$	385		$	28,887		$	47,195				$	417,473
Ending balance: individually evaluated for impairment	$	4,809		$	76		$	2,031		$	60				$	6,976
Ending balance: collectively evaluated for impairment	$	336,197		$	309		$	26,856		$	47,135				$	410,497
Reserve for unfunded loan commitments	$	95		$	—		$	—		$	18				$	113