Allowance for Credit Losses

12 Months Ended

Dec. 31, 2011

Allowance for Credit Losses [Abstract]

ALLOWANCE FOR CREDIT LOSSES

(4)    ALLOWANCE FOR CREDIT LOSSES

        Changes in the allowance for credit losses, for the years indicated, are as follows:

	Year Ended December 31
(Dollars in thousands)	2011			2010
Beginning balance	$	5,884		$	5,477
Provision		1,480			2,216
Loans charged off		(1,112	)		(1,307	)
Leases charged off		(200	)		(548	)
Recoveries		112			46
Net charge-offs		(1,200	)		(1,809	)
Ending balance	$	6,164		$	5,884
Reserve for unfunded loan commitments	$	99		$	150

        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 December 31, 2011 and December 31, 2010:

Age Analysis of Past Due Loans Receivables

					December 31, 2011
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivables		Loans Receivable > 90 Days and Accruing
Residential mortgage	$	692	$	—	$	1,873	$	2,565	$	23,896	$	26,461	$	—
Commercial mortgage		257		—		2,324		2,581		229,716		232,297		210
Commercial:
Commercial term		—		54		200		254		76,048		76,302		—
Commercial construction		—		—		312		312		24,506		24,818		—
Lease financing		—		—		61		61		130		191		—
Consumer:
Home equity		175		—		60		235		35,807		36,042		—
Other		15		—		21		36		7,537		7,573		—
Total	$	1,139	$	54	$	4,851	$	6,044	$	397,640	$	403,684	$	210

					December 31, 2010
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivables		Loans Receivable > 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

	December 31
(Dollars in thousands)	2011		2010
Non-accrual loans:
Residential mortgage	$	1,873	$	2,334
Commercial mortgage		2,114		834
Commercial		3,233		3,722
Lease financing		61		273
Consumer		151		60
Total non-accrual loans		7,432		7,223
Loans 90 days past due and still accruing (*)		210		—
Troubled debt restructurings		—		—
Total non-performing loans		7,642		7,223
Other real estate owned & other repossessed property		3,974		4,324
Total non-performing assets	$	11,616	$	11,547

        The following tables summarize information in regards to impaired loans by loan portfolio class as of December 31, 2011 and December 31, 2010 and for the years then ended.

Impaired Loans

	December 31, 2011
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential mortgage	$	2,014	$	2,413	$	—	$	1,095	$	—
Commercial mortgage		—		—		—		821		58
Commercial:
Commercial term		202		566		—		206		1
Commercial construction		312		634		—		339		—
Lease financing		61		74		—		123		—
Consumer		151		152		—		79		—
With allowance recorded:
Residential mortgage		—		—		—		959		—
Commercial mortgage		2,114		2,116		826		444		—
Commercial:
Commercial term		—		—		—		450		—
Commercial construction		2,720		2,833		359		2,813		—
Lease financing		—		—		—		27		—
Consumer		—		—		—		—		—
Total:
Residential mortgage		2,014		2,413		—		2,054		—
Commercial mortgage		2,114		2,116		826		1,265		58
Commercial:
Commercial term		202		566		—		656		1
Commercial construction		3,032		3,467		359		3,152		—
Lease financing		61		74		—		150		—
Consumer		151		152		—		79		—
Total	$	7,574	$	8,788	$	1,185	$	7,356	$	59

	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 DNB's internal risk rating system as of December 31, 2011 and December 31, 2010.

Credit Quality Indicators

	December 31, 2011
(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Residential mortgage	$	24,589	$	—	$	1,872	$	—	$	26,461
Commercial mortgage		214,086		11,346		4,834		2,031		232,297
Commercial:
Commercial term		74,961		690		586		65		76,302
Commercial construction		17,624		—		7,194		—		24,818
Lease financing		191		—		—		—		191
Consumer:
Home equity		35,976		—		66		—		36,042
Other		7,573		—		—		—		7,573
Total	$	375,000	$	12,036	$	14,552	$	2,096	$	403,684

	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 set forth the activity and composition of DNB's allowance for credit losses at the dates indicated.

Allowance for Credit Losses and Recorded Investment in Financing Receivables

	Year Ended December 31, 2011
(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		(768	)		(200	)		(280	)		(64	)		—		(1,312	)
Recoveries		9			3			79			21			—		112
Provisions		1,317			121			130			(179	)		91		1,480
Ending balance — December 31, 2011	$	4,945		$	10		$	383		$	260		$	566	$	6,164
Ending balance: individually evaluated for impairment	$	1,185		$	—		$	—		$	—		$	—	$	1,185
Ending balance: collectively evaluated for impairment	$	3,760		$	10		$	383		$	260		$	566	$	4,979
Loans receivables:
Ending balance	$	333,417		$	191		$	26,461		$	43,615				$	403,684
Ending balance: individually evaluated for impairment	$	5,348		$	61		$	2,014		$	151				$	7,574
Ending balance: collectively evaluated for impairment	$	328,069		$	130		$	24,447		$	43,464				$	396,110
Reserve for unfunded loan commitments	$	90		$	—		$	—		$	9				$	99

	Year Ended December 31, 2010
(Dollars in thousands)	Commercial			Lease Financing			Residential Mortgage			Consumer			Unallocated		Total
Allowance for credit losses:
Beginning balance — January 1, 2010	$	3,800		$	150		$	648		$	473		$	406	$	5,884
Charge-offs		(577	)		(548	)		(520	)		(210	)		—		(1,855	)
Recoveries		11			20			15			—			—		46
Provisions		1,153			464			311			219			69		2,216
Ending balance — December 31, 2010	$	4,387		$	86		$	454		$	482		$	475	$	5,884