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LOANS (Tables)
 12 Months Ended
Dec. 31, 2014
LOANS [Abstract]  
Major Classifications of Loans
Major classifications of loans at year-end are summarized as follows:

   
2014
  
2013
 
Residential real estate
 $278,212  $216,081 
Multifamily real estate
  30,310   38,456 
Commercial real estate:
        
Owner occupied
  120,861   90,539 
Non owner occupied
  230,750   208,756 
Commercial and industrial
  85,943   85,301 
Consumer
  32,745   25,113 
All other
  100,890   76,524 
   $879,711  $740,770 
Analysis of Activity with Respect to all Director and Executive Officer Loans
An analysis of the 2014 activity with respect to all director and executive officer loans is as follows:

Balance, December 31, 2013
 $11,196 
Additions, including loans now meeting disclosure requirements
  2,486 
Amounts collected and loans no longer meeting disclosure requirements
  (4,726)
Balance, December 31, 2014
 $8,956 
Activity in the Allowance for Loan Losses by Portfolio Segment
Activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2014 was as follows:

Loan Class
 
Balance
Dec 31, 2013
  
Provision for loan losses
  
Loans charged-off
  
Recoveries
  
Balance
Dec 31, 2014
 
                 
Residential real estate
 $2,694  $(244) $(421) $64  $2,093 
Multifamily real estate
  417   (113)  -   -   304 
Commercial real estate:
                    
Owner occupied
  1,407   315   (221)  -   1,501 
Non owner occupied
  2,037   602   (323)  -   2,316 
Commercial and industrial
  2,184   (589)  (168)  17   1,444 
Consumer
  297   47   (161)  60   243 
All other
  1,991   516   (307)  246   2,446 
Total
 $11,027  $534  $(1,601) $387  $10,347 
 
Activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2013 was as follows:

Loan Class
 
Balance
Dec 31, 2012
  
Provision for loan losses
  
Loans charged-off
  
Recoveries
  
Balance
Dec 31, 2013
 
                 
Residential real estate
 $2,163  $803  $(292) $20  $2,694 
Multifamily real estate
  331   86   -   -   417 
Commercial real estate:
                    
Owner occupied
  1,117   123   (132)  299   1,407 
Non owner occupied
  1,888   163   (14)  -   2,037 
Commercial and industrial
  3,046   (918)  (32)  88   2,184 
Consumer
  244   168   (188)  73   297 
All other
  2,699   (800)  (251)  343   1,991 
Total
 $11,488  $(375) $(909) $823  $11,027 

Activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2012 was as follows:

Loan Class
 
Balance
Dec 31, 2011
  
Provision for loan losses
  
Loans charged-off
  
Recoveries
  
Balance
Dec 31, 2012
 
                 
Residential real estate
 $2,134  $709  $(728) $48  $2,163 
Multifamily real estate
  284   47   -   -   331 
Commercial real estate:
                    
Owner occupied
  918   (68)  (15)  282   1,117 
Non owner occupied
  2,381   (198)  (318)  23   1,888 
Commercial and industrial
  1,880   2,419   (1,259)  6   3,046 
Consumer
  298   72   (227)  101   244 
All other
  1,900   1,279   (606)  126   2,699 
Total
 $9,795  $4,260  $(3,153) $586  $11,488 
Purchased Loans
The carrying amount of those loans is as follows at December 31, 2014 and December 31, 2013.

   
2014
  
2013
 
Residential Real Estate
 $-  $183 
Multifamily Real Estate
  497   1,229 
Commercial Real Estate
        
Owner Occupied
  131   250 
Non owner Occupied
  5,695   6,782 
Commercial and industrial
  136   496 
All other
  5,128   4,623 
Total carrying amount
 $11,587  $13,563 
          
Carrying amount, net of allowance
 $10,639  $12,931 
Purchase Loans Accretable Yield, or Income Expected to be Collected
The accretable yield, or income expected to be collected, on the purchased loans above is as follows the three years ended December 31, 2014.  There was no accretable yield on the purchased loans above prior to January 1, 2012.

   
2014
  
2013
  
2012
 
Balance at January 1
 $217  $635  $- 
New loans purchased
  -   -   - 
Accretion of income
  (13)  (26)  (6)
Income recognized upon full repayment
  -   (415)  - 
Reclassifications from non-accretable difference
  -   23   641 
Disposals
  -   -   - 
Balance at December 31
 $204  $217  $635 
Past Due and Non-performing Loans
The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2014 and December 31 2013.  The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition or interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.

December 31, 2014
 
Principal Owed on
Non-accrual Loans
  
Recorded Investment in Non-accrual Loans
  
Loans Past Due Over 90 Days, still accruing
 
           
Residential  real estate
 $1,996  $1,768  $668 
Multifamily real estate
  1,803   1,033   564 
Commercial real estate
            
Owner occupied
  2,115   1,928   - 
Non owner occupied
  2,020   1,819   26 
Commercial and industrial
  2,012   806   8 
Consumer
  213   185   - 
All other
  12,608   5,173   - 
Total
 $22,767  $12,712  $1,266 
              
 
December 31, 2013
 
Principal Owed on
Non-accrual Loans
  
Recorded Investment in Non-accrual Loans
  
Loans Past Due Over 90 Days, still accruing
 
           
Residential  real estate
 $2,021  $1,725  $1,737 
Multifamily real estate
  3,282   1,889   1,369 
Commercial real estate
            
Owner occupied
  1,364   1,147   1,387 
Non owner occupied
  2,683   1,973   3,739 
Commercial and industrial
  6,838   4,961   84 
Consumer
  167   148   16 
All other
  12,212   4,798   146 
Total
 $28,567  $16,641  $8,478 
              
Aging of Recorded Investment in Past Due Loans by Loan Class
The following table presents the aging of the recorded investment in past due loans as of December 31, 2014 by class of loans:
Loan Class
 
Total Loans
  
30-89 Days Past Due
  
Greater than 90 days past due
  
Total Past Due
  
Loans Not Past Due
 
                 
Residential real estate
 $278,212  $5,810  $1,706  $7,516  $270,696 
Multifamily real estate
  30,310   177   1,100   1,277   29,033 
Commercial real estate:
                    
Owner occupied
  120,861   250   1,530   1,780   119,081 
Non owner occupied
  230,750   2,173   1,670   3,843   226,907 
Commercial and industrial
  85,943   1,720   608   2,328   83,615 
Consumer
  32,745   497   71   568   32,177 
All other
  100,890   234   5,127   5,361   95,529 
Total
 $879,711  $10,861  $11,812  $22,673  $857,038 

The following table presents the aging of the recorded investment in past due loans as of December 31, 2013 by class of loans:
Loan Class
 
Total Loans
  
30-89 Days Past Due
  
Greater than 90 days past due
  
Total Past Due
  
Loans Not Past Due
 
                 
Residential real estate
 $216,081  $4,770  $2,431  $7,201  $208,880 
Multifamily real estate
  38,456   367   2,688   3,055   35,401 
Commercial real estate:
                    
Owner occupied
  90,539   516   2,073   2,589   87,950 
Non owner occupied
  208,756   278   5,478   5,756   203,000 
Commercial and industrial
  85,301   1,433   1,438   2,871   82,430 
Consumer
  25,113   421   82   503   24,610 
All other
  76,524   2,510   4,881   7,391   69,133 
Total
 $740,770  $10,295  $19,071  $29,366  $711,404 
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2014:
   
Allowance for Loan Losses
  
Loan Balances
 
Loan Class
 
Individually Evaluated for Impairment
  
Collectively Evaluated for Impairment
  
Acquired with Deteriorated Credit Quality
  
Total
  
Individually Evaluated for Impairment
  
Collectively Evaluated for Impairment
  
Acquired with Deteriorated Credit Quality
  
Total
 
                          
Residential real estate
 $-  $2,093  $-  $2,093  $137  $278,075  $-  $278,212 
Multifamily real estate
  -   304   -   304   536   29,277   497   30,310 
Commercial real estate:
                                
Owner occupied
  107   1,394   -   1,501   2,011   118,719   131   120,861 
Non-owner occupied
  54   2,262   -   2,316   4,874   220,181   5,695   230,750 
Commercial and industrial
  291   1,105   48   1,444   902   84,905   136   85,943 
Consumer
  -   243   -   243   -   32,745   -   32,745 
All other
  -   1,546   900   2,446   1,109   94,653   5,128   100,890 
Total
 $452  $8,947  $948  $10,347  $9,569  $858,555  $11,587  $879,711 

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2013:
   
Allowance for Loan Losses
  
Loan Balances
 
Loan Class
 
Individually Evaluated for Impairment
  
Collectively Evaluated for Impairment
  
Acquired with Deteriorated Credit Quality
  
Total
  
Individually Evaluated for Impairment
  
Collectively Evaluated for Impairment
  
Acquired with Deteriorated Credit Quality
  
Total
 
                          
Residential real estate
 $138  $2,556  $-  $2,694  $2,787  $213,111  $183  $216,081 
Multifamily real estate
  -   417   -   417   1,822   35,405   1,229   38,456 
Commercial real estate:
                                
Owner occupied
  170   1,237   -   1,407   2,386   87,903   250   90,539 
Non-owner occupied
  362   1,675   -   2,037   1,024   200,950   6,782   208,756 
Commercial and industrial
  1,088   964   132   2,184   4,270   80,535   496   85,301 
Consumer
  -   297   -   297   -   25,113   -   25,113 
All other
  102   1,389   500   1,991   3,279   68,622   4,623   76,524 
Total
 $1,860  $8,535  $632  $11,027  $15,568  $711,639  $13,563  $740,770 
Loans Individually Evaluated for Impairment by Class of Loans
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2014.  The table includes $5,673 of loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

   
Unpaid Principal Balance
  
Recorded Investment
  
Allowance for Loan Losses Allocated
 
With no related allowance recorded:
         
Residential  real estate
 $179  $137  $- 
Multifamily real estate
  1,803   1,033   - 
Commercial real estate
            
Owner occupied
  1,404   1,304   - 
Non owner occupied
  4,398   4,190   - 
Commercial and industrial
  1,030   270   - 
All other
  1,144   1,108   - 
    9,958   8,042   - 
With an allowance recorded:
            
Commercial real estate
            
Owner occupied
 $707  $707  $107 
Non owner occupied
  684   684   54 
Commercial and industrial
  929   680   339 
All other
  12,525   5,129   900 
    14,845   7,200   1,400 
Total
 $24,803  $15,242  $1,400 
              

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2013.  The table includes $7,483 of loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

   
Unpaid Principal Balance
  
Recorded Investment
  
Allowance for Loan Losses Allocated
 
With no related allowance recorded:
         
Residential  real estate
 $1,513  $1,314  $- 
Multifamily real estate
  4,449   3,051   - 
Commercial real estate
            
Owner occupied
  2,601   1,986   - 
Non owner occupied
  1,861   1,184   - 
Commercial and industrial
  809   49   - 
All other
  3,185   3,167   - 
    14,418   10,751   - 
With an allowance recorded:
            
Residential  real estate
 $1,668  $1,656  $138 
Commercial real estate
            
Owner occupied
  515   515   170 
Non owner occupied
  810   790   362 
Commercial and industrial
  5,543   4,604   1,220 
All other
  12,132   4,735   602 
    20,668   12,300   2,492 
Total
 $35,086  $23,051  $2,492 
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized
The following table presents by loan class, the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three years ended December 31, 2014.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

   
Year ended Dec 31, 2014
 
Year ended Dec 31, 2013
 
Year ended Dec 31, 2012
 
Loan Class
 
Average Recorded Investment
 
Interest Income Recognized
 
Cash Basis Interest Recognized
 
Average Recorded Investment
 
Interest Income Recognized
 
Cash Basis Interest Recognized
 
Average Recorded Investment
 
Interest Income Recognized
 
Cash Basis Interest Recognized
 
                     
Residential real estate
 $1,964 $267 $267 $4,069 $180 $171 $8,887 $518 $516 
Multifamily real estate
  2,221  782  782  3,810  847  845  6,143  1,408  1,406 
Commercial real estate:
                            
Owner occupied
  2,139  179  174  2,602  168  141  7,195  1,025  1,028 
Non-owner occupied
  2,085  711  704  2,509  9  9  9,785  73  79 
Commercial and industrial
  1,912  657  657  8,425  47  47  10,052  427  417 
Consumer
  -  -  -  -  -  -  29  2  2 
All other
  7,347  149  149  8,796  273  273  7,599  1,019  968 
Total
 $17,668 $2,745 $2,733 $30,211 $1,524 $1,486 $49,690 $4,472 $4,416 
Troubled Debt Restructurings
The following table presents TDR’s as of December 31, 2014 and December 31, 2013:

December 31, 2014
 
TDR’s on Non-accrual
  
Other TDR’s
  
Total TDR’s
 
           
Residential  real estate
 $13  $191  $204 
Commercial real estate
            
Non owner occupied
  -   474   474 
Commercial and industrial
  -   761   761 
All other
  -   1,063   1,063 
Total
 $13  $2,489  $2,502 

December 31, 2013
 
TDR’s on Non-accrual
  
Other TDR’s
  
Total TDR’s
 
           
Residential  real estate
 $23  $296  $319 
Commercial real estate
            
Non owner occupied
  -   506   506 
Commercial and industrial
  -   831   831 
Consumer
  -   5   5 
All other
  -   2,017   2,017 
Total
 $23  $3,655  $3,678 
Troubled Debt Restructuring During the Period
The following table presents TDR’s that occurred during the years ended December 31, 2014 and December 31, 2013.

   
Year ended December 31, 2014
  
Year ended December 31, 2013
 
Loan Class
 
Number of Loans
  
Pre-Modification Outstanding Recorded Investment
  
Post-Modification Outstanding Recorded Investment
  
Number of Loans
  
Pre-Modification Outstanding Recorded Investment
  
Post-Modification Outstanding Recorded Investment
 
                    
All other
  -  $-  $-   1  $16  $16 
Total
  -  $-  $-   1  $16  $16 
Risk Category of Loans by Class of Loans
As of December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class
 
Pass
  
Special Mention
  
Substandard
  
Doubtful
  
Total Loans
 
                 
Residential real estate
 $265,285  $8,292  $4,622  $13  $278,212 
Multifamily real estate
  27,260   2,017   1,033   -   30,310 
Commercial real estate:
                    
Owner occupied
  111,024   6,505   3,332   -   120,861 
Non-owner occupied
  218,971   6,652   5,127   -   230,750 
Commercial and industrial
  83,634   1,007   1,275   27   85,943 
Consumer
  32,364   267   114   -   32,745 
All other
  89,173   4,873   6,844   -   100,890 
                      
Total
 $827,711  $29,613  $22,347  $40  $879,711 

As of December 31, 2013, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class
 
Pass
  
Special Mention
  
Substandard
  
Doubtful
  
Total Loans
 
                 
Residential real estate
 $202,789  $6,204  $7,065  $23  $216,081 
Multifamily real estate
  34,487   918   3,051   -   38,456 
Commercial real estate:
                    
Owner occupied
  79,694   7,431   3,348   66   90,539 
Non-owner occupied
  196,338   8,569   3,849   -   208,756 
Commercial and industrial
  78,205   2,269   4,753   74   85,301 
Consumer
  24,772   204   137   -   25,113 
All other
  62,180   5,947   8,285   112   76,524 
                      
Total
 $678,465  $31,542  $30,488  $275  $740,770