LOANS (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Loans Evaluated on an Individual and Collective Basis for Impairment and the Related Allowance for Loan Losses

The following tables set forth by class of loans as of December 31, 2012, 2011 and 2010: (1) the amount of loans individually evaluated for impairment and the portion of the allowance for loan losses allocable to such loans; and (2) the amount of loans collectively evaluated for impairment and the portion of the allowance for loan losses allocable to such loans. The tables also set forth by class of loans the activity in the allowance for loan losses for the years ended December 31, 2012, 2011 and 2010. Construction and land development loans, if any, are included with commercial mortgages in the following tables.

	2012
			Commercial Mortgages								Residential Mortgages
	Commercial							Owner			Closed		Revolving Home
	& Industrial		Multifamily		Other			Occupied			End		Equity		Consumer			Total
	(in thousands)
Loans:
Individually evaluated for impairment	$	48	$	1,105	$	1,773		$	174		$	5,028	$	382	$	-		$	8,510
Collectively evaluated for impairment		54,291		276,772		140,179			83,716			494,407		80,742		4,335			1,134,442
	$	54,339	$	277,877	$	141,952		$	83,890		$	499,435	$	81,124	$	4,335		$	1,142,952
Allocation of allowance for loan losses:
Individually evaluated for impairment	$	-	$	-	$	-		$	-		$	567	$	-	$	-		$	567
Collectively evaluated for impairment		834		5,342		1,978			1,163			7,162		1,453		125			18,057
	$	834	$	5,342	$	1,978		$	1,163		$	7,729	$	1,453	$	125		$	18,624
Activity in allowance for loan losses:
Beginning balance	$	699	$	5,365	$	2,316		$	1,388		$	5,228	$	1,415	$	161		$	16,572
Chargeoffs		5		501		-			-			659		450		4			1,619
Recoveries		4		4		19			-			10		-		6			43
Provision for loan losses (credit)		136		474		(357	)		(225	)		3,150		488		(38	)		3,628
Ending balance	$	834	$	5,342	$	1,978		$	1,163		$	7,729	$	1,453	$	125		$	18,624

	2011
Loans:
Individually evaluated for impairment	$	12		$	2,133	$	1,816	$	-		$	4,548	$	975	$	-	$	9,484
Collectively evaluated for impairment		42,560			227,160		138,813		89,953			380,826		89,641		4,596		973,549
	$	42,572		$	229,293	$	140,629	$	89,953		$	385,374	$	90,616	$	4,596	$	983,033
Allocation of allowance for loan losses:
Individually evaluated for impairment	$	1		$	312	$	45	$	-		$	676	$	-	$	-	$	1,034
Collectively evaluated for impairment		698			5,053		2,271		1,388			4,552		1,415		161		15,538
	$	699		$	5,365	$	2,316	$	1,388		$	5,228	$	1,415	$	161	$	16,572
Activity in allowance for loan losses:
Beginning balance	$	803		$	3,848	$	2,303	$	1,529		$	4,059	$	1,415	$	57	$	14,014
Chargeoffs		-			1,257		233		-			8		100		36		1,634
Recoveries		115			9		-		-			1		-		6		131
Provision for loan losses (credit)		(219	)		2,765		246		(141	)		1,176		100		134		4,061
Ending balance	$	699		$	5,365	$	2,316	$	1,388		$	5,228	$	1,415	$	161	$	16,572

	2010
Loans:
Individually evaluated for impairment	$	27		$	2,314	$	-	$	-		$	945	$	-	$	-	$	3,286
Collectively evaluated for impairment		39,028			205,785		125,461		83,386			344,344		93,308		5,790		897,102
	$	39,055		$	208,099	$	125,461	$	83,386		$	345,289	$	93,308	$	5,790	$	900,388
Allocation of allowance for loan losses:
Individually evaluated for impairment	$	27		$	870	$	-	$	-		$	-	$	-	$	-	$	897
Collectively evaluated for impairment		776			2,978		2,303		1,529			4,059		1,415		57		13,117
	$	803		$	3,848	$	2,303	$	1,529		$	4,059	$	1,415	$	57	$	14,014
Activity in allowance for loan losses:
Beginning balance	$	971		$	2,685	$	1,687	$	1,603		$	2,242	$	1,102	$	56	$	10,346
Chargeoffs		-			325		-		-			-		22		30		377
Recoveries		46			-		-		-			-		-		26		72
Provision for loan losses (credit)		(214	)		1,488		616		(74	)		1,817		335		5		3,973
Ending balance	$	803		$	3,848	$	2,303	$	1,529		$	4,059	$	1,415	$	57	$	14,014

Impaired Financing Receivables

For individually impaired loans, the following tables set forth by class of loans at December 31, 2012, 2011 and 2010 the recorded investment, unpaid principal balance and related allowance. The tables also set forth the average recorded investment of individually impaired loans and interest income recognized while the loans were impaired during the years ended December 31, 2012, 2011 and 2010. The recorded investment for individually impaired loans is the unpaid principal balance.

	2012
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(in thousands)
With no related allowance recorded:
Commercial and industrial	$	48	$	48	$	-	$	49	$	1
Commercial mortgages:
Multifamily		1,105		1,105		-		1,132		42
Other		1,773		1,773		-		1,793		103
Owner-occupied		174		174		-		181		-
Residential mortgages:
Closed end		1,043		1,043		-		1,444		4
Revolving home equity		382		382		-		386		1

With an allowance recorded:
Residential mortgages - closed end		3,985		3,985		567		4,024		131

Total:
Commercial and industrial		48		48		-		49		1
Commercial mortgages:
Multifamily		1,105		1,105		-		1,132		42
Other		1,773		1,773		-		1,793		103
Owner-occupied		174		174		-		181		-
Residential mortgages:
Closed end		5,028		5,028		567		5,468		135
Revolving home equity		382		382		-		386		1
	$	8,510	$	8,510	$	567	$	9,009	$	282

		2011
With no related allowance recorded:
Commercial mortgages:
Multifamily	$	740	$	740	$	-	$	743	$	32
Other		39		39		-		40		-
Residential mortgages:
Closed end		174		174		-		174		1
Revolving home equity		975		975		-		1,126		3

With an allowance recorded:
Commercial and industrial		12		12		1		20		2
Commercial mortgages:
Multifamily		1,393		1,393		312		1,419		-
Other		1,777		1,777		45		1,777		5
Residential mortgages - closed end		4,374		4,374		676		4,244		140

Total:
Commercial and industrial		12		12		1		20		2
Commercial mortgages:
Multifamily		2,133		2,133		312		2,162		32
Other		1,816		1,816		45		1,817		5
Residential mortgages:
Closed end		4,548		4,548		676		4,418		141
Revolving home equity		975		975		-		1,126		3
	$	9,484	$	9,484	$	1,034	$	9,543	$	183

	2010
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(in thousands)
With no related allowance recorded:
Commercial mortgages - multifamily	$	447	$	447	$	-	$	451	$	20
Residential mortgages - closed end		945		945		-		945		22

With an allowance recorded:
Commercial and industrial		27		27		27		31		2
Commercial mortgages - multifamily		1,867		1,867		870		1,867		99

Total:
Commercial and industrial		27		27		27		31		2
Commercial mortgages - multifamily		2,314		2,314		870		2,318		119
Residential mortgages - closed end		945		945		-		945		22
	$	3,286	$	3,286	$	897	$	3,294	$	143

Aging of Loans

Aging of Loans. The following tables present the aging of the recorded investment in loans by class of loans.

		December 31, 2012
						Past Due				Total Past
						90 Days or				Due Loans &
		30-59 Days		60-89 Days		More and		Nonaccrual		Nonaccrual				Total
		Past Due		Past Due		Still Accruing		Loans		Loans		Current		Loans
		(in thousands)
Commercial and industrial		$	-	$	-	$	-	$	-	$	-	$	54,339	$	54,339
Commercial mortgages:
Multifamily			-		-		-		379		379		277,498		277,877
Other			-		-		-		-		-		141,952		141,952
Owner occupied			264		-		-		174		438		83,452		83,890
Residential mortgages:
Closed end			369		-		-		3,163		3,532		495,903		499,435
Revolving home equity			248		-		-		382		630		80,494		81,124
Consumer			3		-		-		-		3		4,332		4,335
		$	884	$	-	$	-	$	4,098	$	4,982	$	1,137,970	$	1,142,952

	December 31, 2011
Commercial and industrial		$	-	$	-	$	-	$	-	$	-	$	42,572	$	42,572
Commercial mortgages:
Multifamily			-		-		-		1,393		1,393		227,900		229,293
Other			-		-		-		-		-		140,629		140,629
Owner occupied			-		-		-		-		-		89,953		89,953
Residential mortgages:
Closed end			649		-		-		768		1,417		383,957		385,374
Revolving home equity			88		-		-		1,050		1,138		89,478		90,616
Consumer			3		-		-		-		3		4,593		4,596
		$	740	$	-	$	-	$	3,211	$	3,951	$	979,082	$	983,033

Troubled Debt Restructurings

The following table presents information about loans modified in troubled debt restructurings during the years ended December 31, 2012 and 2011:

	2012
			Pre-modification		Post-modification
	Number		Outstanding		Outstanding
	of		Recorded		Recorded
	Loans		Investment		Investment
	(dollars in thousands)

Commercial and industrial		1	$	49	$	49
Residential mortgage - closed end		1		129		129
		2	$	178	$	178

	2011
Commercial mortgages:
Multifamily		2	$	1,420	$	1,420
Other		1		40		40
Residential mortgage - closed end		2		1,393		1,393
		5	$	2,853	$	2,853

Recorded Investment by Class and Credit Quality Indicators

The following tables present the recorded investment in commercial and industrial loans and commercial real estate loans by class of loans and risk rating at December 31, 2012 and 2011.

	2012
	Internally Assigned Risk Rating
									Special
	1 - 2		3 - 4		5 - 6		Watch		Mention		Substandard		Doubtful		Total
	(in thousands)
Commercial and industrial	$	4,401	$	6,225	$	42,007	$	1,268	$	390	$	48	$	-	$	54,339
Commercial mortgages:
Multifamily		-		-		273,592		2,495		685		1,105		-		277,877
Other		-		1,899		131,924		3,457		2,899		1,773		-		141,952
Owner occupied		-		-		72,546		5,237		965		5,142		-		83,890
	$	4,401	$	8,124	$	520,069	$	12,457	$	4,939	$	8,068	$	-	$	558,058

	2011
	Internally Assigned Risk Rating
									Special
	1 - 2		3 - 4		5 - 6		Watch		Mention		Substandard		Doubtful		Total
	(in thousands)
Commercial and industrial	$	4,911	$	3,720	$	33,604	$	325	$	-	$	12	$	-	$	42,572
Commercial mortgages:
Multifamily		-		-		222,136		5,024		-		2,133		-		229,293
Other		-		1,986		130,476		4,699		1,652		1,816		-		140,629
Owner occupied		-		-		82,870		1,018		537		5,528		-		89,953
	$	4,911	$	5,706	$	469,086	$	11,066	$	2,189	$	9,489	$	-	$	502,447

The following tables present the recorded investment in residential mortgages, home equity lines, and other consumer loans by class of loans and risk rating at December 31, 2012 and 2011.

	2012
	Internally Assigned Risk Rating
									Special
	1		2		3		Watch		Mention		Substandard		Doubtful		Total
	(in thousands)
Residential mortgages:
Closed end	$	451,985	$	25,160	$	16,761	$	501	$	-	$	5,028	$	-	$	499,435
Revolving home equity		66,673		6,630		6,665		774		-		382		-		81,124
Consumer		2,861		702		140		-		-		-		-		3,703
	$	521,519	$	32,492	$	23,566	$	1,275	$	-	$	5,410	$	-	$	584,262

		2011
Residential mortgages:
Closed end	$	346,752	$	19,977	$	13,389	$	731	$	126	$	4,399	$	-	$	385,374
Revolving home equity		74,831		8,655		5,726		280		-		1,124		-		90,616
Consumer		3,600		612		128		-		-		-		-		4,340
	$	425,183	$	29,244	$	19,243	$	1,011	$	126	$	5,523	$	-	$	480,330