Loans are comprised of the following:	March 31,		December 31,
	2012		2011
Residential real estate	$	225,271	$	226,489
Commercial real estate:
Owner-occupied		125,305		142,566
Nonowner-occupied		52,899		55,419
Construction		22,318		21,471
Commercial and industrial		43,820		45,200
Consumer:
Automobile		43,736		45,702
Home equity		19,928		20,507
Other		39,083		40,954
		572,360		598,308
Less: Allowance for loan losses		6,847		7,344

Loans, net	$	565,513	$	590,964

March 31, 2012	Residential Real Estate			Commercial Real Estate			Commercial and Industrial			Consumer			Total
Allowance for loan losses:
Beginning balance	$	1,730		$	3,623		$	636		$	1,355		$	7,344
Provision for loan losses		277			892			(88	)		235			1,316
Loans charged off		(593	)		(1,096	)		(70	)		(519	)		(2,278	)
Recoveries		77			4			145			239			465
Total ending allowance balance	$	1,491		$	3,423		$	623		$	1,310		$	6,847

March 31, 2011	Residential Real Estate			Commercial Real Estate			Commercial and Industrial			Consumer			Total
Allowance for loan losses:
Beginning balance	$	993		$	3,141		$	3,795		$	1,457		$	9,386
Provision for loan losses		471			1,155			1,184			134			2,944
Loans charged-off		(247	)		(40	)		(3,839	)		(417	)		(4,543	)
Recoveries		8			107			----			150			265
Total ending allowance balance	$	1,225		$	4,363		$	1,140		$	1,324		$	8,052

March 31, 2012	Residential Real Estate		Commercial Real Estate		Commercial and Industrial		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	----	$	758	$	----	$	----	$	758
Collectively evaluated for impairment		1,491		2,665		623		1,310		6,089
Total ending allowance balance	$	1,491	$	3,423	$	623	$	1,310	$	6,847

Loans:
Loans individually evaluated for impairment	$	1,055	$	13,996	$	329	$	256	$	15,636
Loans collectively evaluated for impairment		224,216		186,526		43,491		102,491		556,724
Total ending loans balance	$	225,271	$	200,522	$	43,820	$	102,747	$	572,360

December 31, 2011	Residential Real Estate		Commercial Real Estate		Commercial and Industrial		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	----	$	655	$	----	$	----	$	655
Collectively evaluated for impairment		1,730		2,968		636		1,355		6,689
Total ending allowance balance	$	1,730	$	3,623	$	636	$	1,355	$	7,344

Loans:
Loans individually evaluated for impairment	$	1,085	$	10,153	$	334	$	----	$	11,572
Loans collectively evaluated for impairment		225,404		209,303		44,866		107,163		586,736
Total ending loans balance	$	226,489	$	219,456	$	45,200	$	107,163	$	598,308

Three months ended March 31, 2012	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Impaired Loans		Interest Income Recognized		Cash Basis Interest Recognized
With no related allowance recorded:
Residential real estate	$	1,247	$	1,055	$	----	$	1,070	$	7	$	6
Commercial real estate:
Owner-occupied		9,984		9,737		----		7,604		166		143
Nonowner-occupied		3,440		2,293		----		2,458		24		22
Construction		674		395		----		535		5		5
Commercial and industrial		614		329		----		331		10		9
Consumer:
Automobile		36		36		----		18		1		1
Home equity		220		220		----		110		3		3
With an allowance recorded:
Commercial real estate:
Owner-occupied		1,571		1,571		758		996		27		18
Total	$	17,786	$	15,636	$	758	$	13,122	$	243	$	207

Three months ended March 31, 2011	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Impaired Loans		Interest Income Recognized		Cash Basis Interest Recognized
With no related allowance recorded:
Residential real estate	$	1,364	$	1,303	$	----	$	1,311	$	15	$	8
Commercial real estate:
Owner-occupied		4,422		4,422		----		4,424		62		50
Nonowner-occupied		2,987		992		----		992		4		4
Construction		679		679		----		680		10		9
Commercial and industrial		10,123		3,469		----		6,043		104		74
With an allowance recorded:
Residential real estate		287		287		103		287		5		4
Commercial real estate:
Owner-occupied		5,289		4,804		1,315		4,805		89		82
Nonowner-occupied		2,759		2,759		564		2,759		51		37
Commercial and industrial		488		488		488		500		5		4
Total	$	28,398	$	19,203	$	2,470	$	21,801	$	345	$	272

Year ended December 31, 2011	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Impaired Loans		Interest Income Recognized		Cash Basis Interest Recognized
With no related allowance recorded:
Residential real estate	$	1,136	$	1,085	$	----	$	748	$	36	$	31
Commercial real estate:
Owner-occupied		5,713		5,470		----		5,510		325		317
Nonowner-occupied		1,192		1,192		----		1,247		56		49
Commercial and industrial		614		334		----		483		40		40
With an allowance recorded:
Commercial real estate:
Owner-occupied		420		420		130		84		27		22
Nonowner-occupied		2,396		2,396		437		2,414		128		118
Construction		675		675		88		677		35		31
Total	$	12,146	$	11,572	$	655	$	11,163	$	647	$	608

March 31, 2012	Loans Past Due 90 Days And Still Accruing		Nonaccrual

Residential real estate	$	463	$	2,391
Commercial real estate:
Owner-occupied		----		39
Nonowner-occupied		----		1,398
Construction		----		395
Commercial and industrial		----		47
Consumer:
Automobile		----		3
Home equity		----		5
Total	$	463	$	4,278

December 31, 2011	Loans Past Due 90 Days And Still Accruing		Nonaccrual

Residential real estate	$	439	$	2,450
Commercial real estate:
Owner-occupied		----		125
Nonowner-occupied		----		86
Consumer:
Automobile		13		12
Home equity		----		5
Other		7		----
Total	$	459	$	2,678

March 31, 2012	30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Loans Not Past Due		Total

Residential real estate	$	2,656	$	806	$	2,854	$	6,316	$	218,955	$	225,271
Commercial real estate:
Owner-occupied		401		----		38		439		124,866		125,305
Nonowner-occupied		----		----		314		314		52,585		52,899
Construction		503		1,115		----		1,618		20,700		22,318
Commercial and industrial		582		----		----		582		43,238		43,820
Consumer:
Automobile		717		115		----		832		42,904		43,736
Home equity		19		40		5		64		19,864		19,928
Other		453		83		----		536		38,547		39,083
Total	$	5,331	$	2,159	$	3,211	$	10,701	$	561,659	$	572,360

December 31, 2011	30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Loans Not Past Due		Total

Residential real estate	$	3,662	$	1,144	$	2,889	$	7,695	$	218,794	$	226,489
Commercial real estate:
Owner-occupied		182		----		125		307		142,259		142,566
Nonowner-occupied		69		232		86		387		55,032		55,419
Construction		204		----		----		204		21,267		21,471
Commercial and industrial		171		14		----		185		45,015		45,200
Consumer:
Automobile		864		110		13		987		44,715		45,702
Home equity		75		76		5		156		20,351		20,507
Other		506		162		7		675		40,279		40,954
Total	$	5,733	$	1,738	$	3,125	$	10,596	$	587,712	$	598,308

A troubled debt restructuring (“TDR”) occurs when the Company has agreed to a loan modification in the form of a concession for a borrower who is experiencing financial difficulty. All TDR's are considered to be impaired. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a reduction in the contractual principal and interest payments of the loan; or short-term interest-only payment terms.

	TDR’s Performing to Modified Terms		TDR’s Not Performing to Modified Terms		Total TDR’s
March 31, 2012
Residential real estate
Interest only payments	$	----	$	252	$	252
Commercial real estate:
Owner-occupied
Interest only payments		3,617		----		3,617
Rate reduction		865		----		865
Maturity extension at lower stated rate than market rate		214		----		214
Reduction of principal and interest payments		4,286		----		4,286
Nonowner-occupied
Interest only payments		960		1,085		2,045
Construction
Interest only payments		----		395		395
Commercial and industrial
Interest only payments		330		----		330
Total TDR’s	$	10,272	$	1,732	$	12,004

	TDR’s Performing to Modified Terms		TDR’s Not Performing to Modified Terms		Total TDR’s
December 31, 2011
Residential real estate
Interest only payments	$	----	$	283	$	283
Commercial real estate:
Owner-occupied
Interest only payments		3,619		----		3,619
Rate reduction		869		----		869
Maturity extension at lower stated rate than market rate		219		----		219
Nonowner-occupied
Interest only payments		3,357		----		3,357
Construction
Interest only payments		674		----		674
Commercial and industrial
Interest only payments		334		----		334
Total TDR’s	$	9,072	$	283	$	9,355

At March 31, 2012, the balance in TDR loans increased $2,649, or 28.3%, from year-end 2011. The increase was largely due to the modification of one commercial real estate loan totaling $4,286 during the first quarter of 2012. The loan’s contractual principal and interest payments were reduced, which created a concession to the borrower. At March 31, 2012 and December 31, 2011, 86% and 97% of the Company’s TDR’s were performing according to their modified terms. The Company allocated $128 and $655 in reserves to customers whose loan terms have been modified in TDR’s as of March 31, 2012 and December 31, 2011, respectively. At March 31, 2012, the Company had $86 in commitments to lend additional amounts to customers with outstanding loans that are classified as TDR’s, as compared to $81 at December 31, 2011.

	TDR’s Performing to Modified Terms		TDR’s Not Performing to Modified Terms		Total TDR’s
March 31, 2012
Commercial real estate:
Owner-occupied
Reduction of principal and interest payments	$	4,286	$	----	$	4,286
Total TDR’s	$	4,286	$	----	$	4,286

All of the Company’s TDR’s that occurred during the three months ended March 31, 2012 were performing in accordance with their modified terms. Furthermore, there were no TDR’s at March 31, 2012 that experienced any payment defaults within twelve months following their loan modification. A default is considered to have occurred once the TDR is past due 90 days or more or it has been placed on nonaccrual. TDR loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The TDR’s described above had no impact on the allowance for loan losses or charge-offs during the three months ended March 31, 2012. As of March 31, 2012, the Company had no allocation of reserves to customers whose loan terms have been modified during the first three months of 2012.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. These risk categories are represented by a loan grading scale from 1 through 10. The Company analyzes loans individually with a higher credit risk rating and groups these loans into categories called “criticized” and “classified" assets. The Company considers its criticized assets to be loans that are graded 8 and its classified assets to be loans that are graded 9 through 10. The Company's risk categories are reviewed at least annually on loans that have aggregate borrowing amounts that meet or exceed $500.

Special Mention (Loan Grade 8). Loans classified as special mention indicate considerable risk due to deterioration of repayment (in the earliest stages) due to potential weak primary repayment source, or payment delinquency. These loans will be under constant supervision, are not classified and do not expose the institution to sufficient risks to warrant classification. These deficiencies should be correctable within the normal course of business, although significant changes in company structure or policy may be necessary to correct the deficiencies. These loans are considered bankable assets with no apparent loss of principal or interest envisioned. The perceived risk in continued lending is considered to have increased beyond the level where such loans would normally be granted. Credits that are defined as a troubled debt restructuring should be graded no higher than special mention until they have been reported as performing over one year after restructuring.

Substandard (Loan Grade 9). Loans classified as substandard represent very high risk, serious delinquency, nonaccrual, or unacceptable credit. Repayment through the primary source of repayment is in jeopardy due to the existence of one or more well defined weaknesses and the collateral pledged may inadequately protect collection of the loans. Loss of principal is not likely if weaknesses are corrected, although financial statements normally reveal significant weakness. Loans are still considered collectible, although loss of principal is more likely than with special mention loan grade 8 loans. Collateral liquidation is considered likely to satisfy debt.

Doubtful (Loan Grade 10). Loans classified as doubtful display a high probability of loss, although the amount of actual loss at the time of classification is undetermined. This should be a temporary category until such time that actual loss can be identified, or improvements made to reduce the seriousness of the classification. These loans exhibit all substandard characteristics with the addition that weaknesses make collection or liquidation in full highly questionable and improbable. This classification consists of loans where the possibility of loss is high after collateral liquidation based upon existing facts, market conditions, and value. Loss is deferred until certain important and reasonable specific pending factors which may strengthen the credit can be more accurately determined. These factors may include proposed acquisitions, liquidation procedures, capital injection, receipt of additional collateral, mergers, or refinancing plans. A doubtful classification for an entire credit should be avoided when collection of a specific portion appears highly probable with the adequately secured portion graded substandard.

Criticized and classified loans will mostly consist of commercial and industrial and commercial real estate loans. The Company considers its loans that do not meet the criteria for a criticized and classified asset rating as pass rated loans, which will include loans graded from 1 (Prime) to 7 (Watch). All commercial loans are categorized into a risk category either at the time of origination or reevaluation date. As of March 31, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of commercial loans by class of loans is as follows:

March 31, 2012	Pass		Criticized		Classified		Total
Commercial real estate:
Owner-occupied	$	97,370	$	14,256	$	13,679	$	125,305
Nonowner-occupied		34,034		10,556		8,309		52,899
Construction		20,700		----		1,618		22,318
Commercial and industrial		35,820		2,832		5,168		43,820
Total	$	187,924	$	27,644	$	28,774	$	244,342

December 31, 2011	Pass		Criticized		Classified		Total
Commercial real estate:
Owner-occupied	$	113,118	$	15,664	$	13,784	$	142,566
Nonowner-occupied		31,697		12,815		10,907		55,419
Construction		19,519		----		1,952		21,471
Commercial and industrial		36,633		3,250		5,317		45,200
Total	$	200,967	$	31,729	$	31,960	$	264,656

The Company also obtains the credit scores of its borrowers upon origination (if available by the credit bureau), but the scores are not updated. The Company focuses mostly on the performance and repayment ability of the borrower as an indicator of credit risk and does not consider a borrower's credit score to be a significant influence in the determination of a loan's credit risk grading.

The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. Nonperforming loans are defined as loans that are past due 90 days and still accruing or loans that have been placed on nonaccrual. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment of residential and consumer loans by class of

March 31, 2012	Consumer
	Automobile		Home Equity		Other		Residential Real Estate		Total

Performing	$	43,733	$	19,923	$	39,083	$	222,417	$	325,156
Nonperforming		3		5		----		2,854		2,862
Total	$	43,736	$	19,928	$	39,083	$	225,271	$	328,018

December 31, 2011	Consumer
	Automobile		Home Equity		Other		Residential Real Estate		Total

Performing	$	45,677	$	20,502	$	40,947	$	223,600	$	330,726
Nonperforming		25		5		7		2,889		2,926
Total	$	45,702	$	20,507	$	40,954	$	226,489	$	333,652

The Company, through its subsidiaries, grants residential, consumer, and commercial loans to customers located primarily in the southeastern areas of Ohio as well as the western counties of West Virginia. Approximately 4.02% of total loans were unsecured at March 31, 2012, up from 3.98% at December 31, 2011.