Loan Quality (Tables)

12 Months Ended

Dec. 31, 2014

Internal Credit Rating For The Loan Portfolio




(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total

December 31, 2014
Residential Real Estate 1-4 Family
First liens	$	155,676	$	1,919	$	3,719	$	-	$	161,314
Junior liens and lines of credit		43,559		29		207		-		43,795
Total		199,235		1,948		3,926		-		205,109
Residential real estate - construction		8,784		-		931		-		9,715
Commercial real estate		301,149		10,578		14,755		-		326,482
Commercial		170,774		5,413		2,884		-		179,071
Consumer		6,137		-		17		-		6,154
Total	$	686,079	$	17,939	$	22,513	$	-	$	726,531



December 31, 2013
Residential Real Estate 1-4 Family
First liens	$	150,762	$	3,653	$	7,624	$	-	$	162,039
Junior liens and lines of credit		40,102		66		407		-		40,575
Total		190,864		3,719		8,031		-		202,614
Residential real estate - construction		10,955		-		1,564		-		12,519
Commercial real estate		281,857		11,861		35,655		-		329,373
Commercial		154,888		3,393		12,046		-		170,327
Consumer		8,570		-		10		-		8,580
Total	$	647,134	$	18,973	$	57,306	$	-	$	723,413

Aging Of Payments Of The Loan Portfolio



(Dollars in thousands)			Loans Past Due and Still Accruing										Total
	Current		30-59 Days		60-89 Days		90 Days+		Total		Non-Accrual		Loans
December 31, 2014
Residential Real Estate 1-4 Family
First liens	$	158,197	$	1,531	$	297	$	165	$	1,993	$	1,124	$	161,314
Junior liens and lines of credit		43,424		174		28		-		202		169		43,795
Total		201,621		1,705		325		165		2,195		1,293		205,109
Residential real estate - construction		8,784		-		-		-		-		931		9,715
Commercial real estate		317,576		336		-		140		476		8,430		326,482
Commercial		177,407		12		15		-		27		1,637		179,071
Consumer		6,056		59		22		17		98		-		6,154
Total	$	711,444	$	2,112	$	362	$	322	$	2,796	$	12,291	$	726,531



December 31, 2013
Residential Real Estate 1-4 Family
First liens	$	156,916	$	1,725	$	497	$	302	$	2,524	$	2,599	$	162,039
Junior liens and lines of credit		40,204		204		19		41		264		107		40,575
Total		197,120		1,929		516		343		2,788		2,706		202,614
Residential real estate - construction		11,458		523		-		-		523		538		12,519
Commercial real estate		309,531		634		-		207		841		19,001		329,373
Commercial		167,747		78		60		44		182		2,398		170,327
Consumer		8,430		117		23		10		150		-		8,580
Total	$	694,286	$	3,281	$	599	$	604	$	4,484	$	24,643	$	723,413

Schedule Of Financing Receivables, Non Accrual Status

December 31, 2014

(Dollars in thousands)

ALL

Nonaccrual

TDR

Last

Balance

Reserve

Date

Status

Collateral

Location

Appraisal(1)

Credit 1 - Commercial real estate

3,040

Dec-10

1st lien on 90 acres undeveloped commercial real estate

Nov-14

5,855

Credit 2 - Residential real estate and commercial real estate

864

Aug-11

1st lien on commercial and residential properties and 70 acres of farm land

Aug-14

1,290

Credit 3 - Residential real estate

1,985

Mar-12

1st and 2nd liens on commercial real estate, residential real estate and business assets

Oct-14

3,895

Credit 4 - Commercial real estate

1,756

Dec-14

Hotel and entertainment complex

Feb-14

4,007

Credit 5 - Commercial / commercial real estate

1,831

162

Mar-13

Liens on land, commercial and residential real estate and business assets

Sep-14

2,965

Credit 6 - Commercial real estate

729

Mar-14

1st lien on commercial real estate

Jun-13

1,550

10,205

162

(1) Appraisal value, as reported, does not reflect the pay-off of any senior liens or the cost to liquidate the collateral, but does reflect only the Bank’s share of the collateral if it is a participated loan.

Impaired Financing Receivables

The following table for additional information on impaired loans.



	Impaired Loans
	With No Allowance				With Allowance
(Dollars in thousands)			Unpaid						Unpaid
	Recorded		Principal		Recorded		Principal			Related
December 31, 2014	Investment		Balance		Investment		Balance			Allowance
Residential Real Estate 1-4 Family
First liens	$	1,804	$	2,002	$	-	$	-		$	-
Junior liens and lines of credit		169		195		-		-			-
Total		1,973		2,197		-		-			-
Residential real estate - construction		931		977		-		-			-
Commercial real estate		21,487		25,744		862		1,001			60
Commercial		78		80		1,274		1,990			171
Consumer		-		-		-		-			-
Total	$	24,469	$	28,998	$	2,136	$	2,991		$	231



December 31, 2013
Residential Real Estate 1-4 Family
First liens	$	3,030	$	3,500	$	9	$	39	$	9
Junior liens and lines of credit		108		127		-		-		-
Total		3,138		3,627		9		39		9
Residential real estate - construction		537		556		-		-		-
Commercial real estate		24,188		30,334		966		1,043		89
Commercial		88		89		1,970		2,043		1,002
Consumer		-		-		-		-		-
Total	$	27,951	$	34,606	$	2,945	$	3,125	$	1,100



	Twelve Months Ended				Twelve Months Ended
	December 31, 2014				December 31, 2013
	Average		Interest		Average		Interest
(Dollars in thousands)	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Residential Real Estate 1-4 Family
First liens	$	2,619	$	4	$	3,365	$	4
Junior liens and lines of credit		136		-		417		-
Total		2,755		4		3,782		4
Residential real estate - construction		686		-		544		-
Commercial real estate		23,801		118		31,730		118
Commercial		1,890		-		2,112		-
Consumer		-		-		-		-
Total	$	29,132	$	122	$	38,168	$	122

Troubled Debt Restructuring Loans



								Troubled Debt Restructurings
								That Have Defaulted on
(Dollars in thousands)	Troubled Debt Restructurings							Modified Terms YTD
	Number of	Recorded						Number of	Recorded
	Contracts	Investment			Performing*		Nonperforming*	Contracts	Investment
December 31, 2014
Residential real estate - construction	1	$	521	$	-	$	521	-	$	-
Residential real estate	5		699		673		26	-		-
Commercial real estate	12		15,748		14,283		1,465	-		-
Total	18	$	16,968	$	14,956	$	2,012	-	$	-



December 31, 2013
Residential real estate - construction	1	$	537	$	-	$	537	-	$	-
Residential real estate	5		625		625		-	-		-
Commercial	12		15,877		14,318		1,559	-		-
Total	18	$	17,039	$	14,943	$	2,096	-	$	-

*The performing status is determined by the loans compliance with the modified terms.

The following table reports new TDR loans made during 2014, concession granted and the recorded investment at December 31, 2014.



(Dollars in thousands)	New During Period
	Number of	Pre-TDR		After-TDR		Recorded
Twelve Months Ended December 31, 2014	Contracts	Modification		Modification		Investment		Concession
Residential real estate	1	$	168	$	158	$	158	multiple
Total	1	$	168	$	158	$	158

The following table reports new TDR loans made during 2013, concession granted and the recorded investment as of December 31, 2013.



(Dollars in thousands)	New During Period
	Number of	Pre-TDR		After-TDR		Recorded
Twelve Months Ended December 31, 2013	Contracts	Modification		Modification		Investment		Concession
Residential real estate	2	$	286	$	323	$	311	multiple
Commercial real estate	2		10,458		10,745		10,493	multiple
Total	4	$	10,744	$	11,068	$	10,804

Schedule Of Other Real Estate Owned



December 31, 2014

(Dollars in thousands)	Date						Last
	Acquired		Balance	Collateral	Location		Appraisal

Property 1 (2 properties)	2011	$	488	Unimproved and improved real estate for residential development - 1 tract with 23 acres	PA		Jan-14
						$	585

Property 2	2012		2,758	1st, 2nd, and 3rd liens residential development land - 4 tracts with 196 acres	PA		Apr-14
						$	2,950
		$	3,246

Allowance For Loan Losses, By Loan Segment

The following table shows, by loan class, the activity in the ALL, for the years ended December 31, 2014, 2013 and 2012.



							Commercial
	Residential Real Estate 1-4 Family						Industrial &		Commercial
			Junior Liens &				Agricultural		Industrial &
(Dollars in thousands)	First Liens		Lines of Credit		Construction		Real Estate		Agricultural		Consumer		Total

Allowance at December 31, 2011	$	1,049	$	308	$	1,222	$	5,257	$	1,651	$	236	$	9,723
Charge-offs		(251)		(71)		-		(3,298)		(861)		(236)		(4,717)
Recoveries		1		25		-		13		21		88		148
Provision		114		44		(323)		4,478		809		103		5,225
Allowance at December 31, 2012	$	913	$	306	$	899	$	6,450	$	1,620	$	191	$	10,379

Allowance at December 31, 2012	$	913	$	306	$	899	$	6,450	$	1,620	$	191	$	10,379
Charge-offs		(547)		(45)		-		(2,855)		(363)		(162)		(3,972)
Recoveries		13		-		-		203		100		59		375
Provision		729		17		(608)		1,773		949		60		2,920
Allowance at December 31, 2013	$	1,108	$	278	$	291	$	5,571	$	2,306	$	148	$	9,702

Allowance at December 31, 2013	$	1,108	$	278	$	291	$	5,571	$	2,306	$	148	$	9,702
Charge-offs		(291)		-		(41)		(408)		(644)		(189)		(1,573)
Recoveries		21		-		-		50		65		82		218
Provision		387		56		(24)		204		46		95		764
Allowance at December 31, 2014	$	1,225	$	334	$	226	$	5,417	$	1,773	$	136	$	9,111

The following table shows, by loan class, the loans that were evaluated for the ALL under a specific reserve (individually) and those that were evaluated under a general reserve (collectively), and the amount of the allowance established in each category as of December 31, 2014 and 2013.



							Commercial
	Residential Real Estate 1-4 Family						Industrial &		Commercial
			Junior Liens &				Agricultural		Industrial &
(Dollars in thousands)	First Liens		Lines of Credit		Construction		Real Estate		Agricultural		Consumer		Total

December 31, 2014
Loans evaluated for allowance:
Individually	$	1,171	$	51	$	931	$	22,307	$	1,298	$	-	$	25,758
Collectively		160,143		43,744		8,784		304,175		177,773		6,154		700,773
Total	$	161,314	$	43,795	$	9,715	$	326,482	$	179,071	$	6,154	$	726,531

Allowance established for loans evaluated:
Individually	$	-	$	-	$	-	$	60	$	171	$	-	$	231
Collectively		1,225		334		226		5,357		1,602		136		8,880
Allowance at December 31, 2014	$	1,225	$	334	$	226	$	5,417	$	1,773	$	136	$	9,111

December 31, 2013
Loans evaluated for allowance:
Individually	$	2,354	$	50	$	537	$	25,107	$	1,996	$	-	$	30,044
Collectively		159,685		40,525		11,982		304,266		168,331		8,580		693,369
Total	$	162,039	$	40,575	$	12,519	$	329,373	$	170,327	$	8,580	$	723,413

Allowance established for loans evaluated:
Individually	$	9	$	-	$	-	$	89	$	1,002	$	-	$	1,100
Collectively		1,099		278		291		5,482		1,304		148		8,602
Allowance at December 31, 2013	$	1,108	$	278	$	291	$	5,571	$	2,306	$	148	$	9,702