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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Components of Loan Portfolio Disaggregated by Class of Loan and Percentage Change in Total Loans

The components of our loan portfolio disaggregated by class of loan within the loan portfolio segments at September 30, 2013 and December 31, 2012, and the percentage change in loans from the end of 2012 to the end of the third quarter of 2013, are as follows:

																		Percent
		September 30, 2013								December 31, 2012								Increase
		Balance				%				Balance				%				(Decrease)
Commercial:
Commercial and industrial		$	286,887,000				26.7	%		$	285,322,000				27.4	%			0.5	%
Vacant land, land development, and residential construction			40,741,000				3.8				48,099,000				4.6				(15.3	)
Real estate – owner occupied			258,656,000				24.1				259,277,000				24.9				(0.2	)
Real estate – non-owner occupied			368,301,000				34.2				324,886,000				31.2				13.4
Real estate – multi-family and residential rental			53,178,000				4.9				50,922,000				4.9				4.4
Total commercial			1,007,763,000				93.7				968,506,000				93.0				4.1
Retail:
Home equity and other			36,575,000				3.4				38,917,000				3.7				(6.0	)
1-4 family mortgages			31,149,000				2.9				33,766,000				3.3				(7.8	)
Total retail			67,724,000				6.3				72,683,000				7.0				(6.8	)
Total loans		$	1,075,487,000				100.0	%		$	1,041,189,000				100.0	%			3.3	%

Nonperforming Loans

Nonperforming loans as of September 30, 2013 and December 31, 2012 were as follows:

		September 30, 2013				December 31, 2012
Loans past due 90 days or more still accruing interest		$	0			$	0
Nonaccrual loans			10,526,000				18,970,000
Total nonperforming loans		$	10,526,000			$	18,970,000

Recorded Principal Balance of Nonaccrual Loans

The recorded principal balance of nonaccrual loans was as follows:

		September 30, 2013				December 31, 2012
Commercial:
Commercial and industrial		$	1,581,000			$	1,677,000
Vacant land, land development, and residential construction			922,000				2,194,000
Real estate – owner occupied			570,000				2,087,000
Real estate – non-owner occupied			4,642,000				9,010,000
Real estate – multi-family and residential rental			764,000				2,021,000
Total commercial			8,479,000				16,989,000
Retail:
Home equity and other			805,000				889,000
1-4 family mortgages			1,242,000				1,092,000
Total retail			2,047,000				1,981,000
Total nonaccrual loans		$	10,526,000			$	18,970,000

Age Analysis of Past Due Loans

An age analysis of past due loans is as follows as of September 30, 2013:

		30 – 59 Days Past Due				60 – 89 Days Past Due				Greater Than 89 Days Past Due				Total Past Due				Current				Total Loans				Recorded Balance > 89 Days and Accruing
Commercial:
Commercial and industrial		$	22,000			$	0			$	631,000			$	653,000			$	286,234,000			$	286,887,000			$	0
Vacant land, land development, and residential construction			0				0				85,000				85,000				40,656,000				40,741,000				0
Real estate – owner occupied			0				0				53,000				53,000				258,603,000				258,656,000				0
Real estate – non-owner occupied			0				0				1,860,000				1,860,000				366,441,000				368,301,000				0
Real estate – multi-family and residential rental			0				0				264,000				264,000				52,914,000				53,178,000				0
Total commercial			22,000				0				2,893,000				2,915,000				1,004,848,000				1,007,763,000				0
Retail:
Home equity and other			0				0				0				0				36,575,000				36,575,000				0
1-4 family mortgages			25,000				0				463,000				488,000				30,661,000				31,149,000				0
Total retail			25,000				0				463,000				488,000				67,236,000				67,724,000				0
Total past due loans		$	47,000			$	0			$	3,356,000			$	3,403,000			$	1,072,084,000			$	1,075,487,000			$	0

An age analysis of past due loans is as follows as of December 31, 2012:

		30 – 59 Days Past Due				60 – 89 Days Past Due				Greater Than 89 Days Past Due				Total Past Due				Current				Total Loans				Recorded Balance > 89 Days and Accruing
Commercial:
Commercial and industrial		$	80,000			$	0			$	871,000			$	951,000			$	284,371,000			$	285,322,000			$	0
Vacant land, land development, and residential construction			289,000				0				614,000				903,000				47,196,000				48,099,000				0
Real estate – owner occupied			199,000				0				1,337,000				1,536,000				257,741,000				259,277,000				0
Real estate – non-owner occupied			303,000				0				1,123,000				1,426,000				323,460,000				324,886,000				0
Real estate – multi-family and residential rental			0				0				613,000				613,000				50,309,000				50,922,000				0
Total commercial			871,000				0				4,558,000				5,429,000				963,077,000				968,506,000				0
Retail:
Home equity and other			1,000				0				13,000				14,000				38,903,000				38,917,000				0
1-4 family mortgages			47,000				190,000				437,000				674,000				33,092,000				33,766,000				0
Total retail			48,000				190,000				450,000				688,000				71,995,000				72,683,000				0
Total past due loans		$	919,000			$	190,000			$	5,008,000			$	6,117,000			$	1,035,072,000			$	1,041,189,000			$	0

Impaired Loans

Impaired loans as of September 30, 2013, and average impaired loans for the three and nine months ended September 30, 2013, were as follows:

		Unpaid Contractual Principal Balance				Recorded Principal Balance				Related Allowance		Third Quarter Average Recorded Principal Balance				Year-To-Date Average Recorded Principal Balance
With no related allowance recorded:
Commercial:
Commercial and industrial		$	2,632,000			$	1,063,000					$	1,170,000			$	1,378,000
Vacant land, land development and residential construction			1,200,000				804,000						907,000				1,148,000
Real estate – owner occupied			575,000				347,000						865,000				1,159,000
Real estate – non-owner occupied			5,135,000				4,108,000						4,651,000				4,878,000
Real estate – multi-family and residential rental			1,008,000				337,000						425,000				487,000
Total commercial			10,550,000				6,659,000						8,018,000				9,050,000
Retail:
Home equity and other			508,000				464,000						466,000				474,000
1-4 family mortgages			1,398,000				754,000						715,000				746,000
Total retail			1,906,000				1,218,000						1,181,000				1,220,000
Total with no related allowance recorded		$	12,456,000			$	7,877,000					$	9,199,000			$	10,270,000

		Unpaid Contractual Principal Balance				Recorded Principal Balance				Related Allowance				Third Quarter Average Recorded Principal Balance				Year-To-Date Average Recorded Principal Balance
With an allowance recorded:
Commercial:
Commercial and industrial		$	2,002,000			$	1,941,000			$	1,035,000			$	1,764,000			$	1,990,000
Vacant land, land development and residential construction			4,557,000				4,418,000				1,216,000				4,466,000				3,158,000
Real estate – owner occupied			2,368,000				2,310,000				901,000				2,330,000				2,810,000
Real estate – non-owner occupied			28,358,000				28,346,000				9,785,000				28,789,000				30,216,000
Real estate – multi-family and residential rental			2,820,000				2,752,000				923,000				2,639,000				2,973,000
Total commercial			40,105,000				39,767,000				13,860,000				39,988,000				41,147,000
Retail:
Home equity and other			322,000				293,000				102,000				309,000				339,000
1-4 family mortgages			2,370,000				2,340,000				1,101,000				2,480,000				1,477,000
Total retail			2,692,000				2,633,000				1,203,000				2,789,000				1,816,000
Total with an allowance recorded		$	42,797,000			$	42,400,000			$	15,063,000			$	42,777,000			$	42,963,000
Total impaired loans:
Commercial		$	50,655,000			$	46,426,000			$	13,860,000			$	48,006,000			$	50,197,000
Retail			4,598,000				3,851,000				1,203,000				3,970,000				3,036,000
Total impaired loans		$	55,253,000			$	50,277,000			$	15,063,000			$	51,976,000			$	53,233,000

Impaired loans as of December 31, 2012, and average impaired loans for the three and nine months ended September 30, 2012, were as follows:

		Unpaid Contractual Principal Balance				Recorded Principal Balance				Related Allowance		Third Quarter Average Recorded Principal Balance				Year-To-Date Average Recorded Principal Balance
With no related allowance recorded:
Commercial:
Commercial and industrial		$	1,926,000			$	1,617,000					$	3,209,000			$	3,521,000
Vacant land, land development and residential construction			2,356,000				1,401,000						1,480,000				1,959,000
Real estate – owner occupied			2,368,000				1,557,000						3,391,000				3,535,000
Real estate – non-owner occupied			9,984,000				5,492,000						5,832,000				6,850,000
Real estate – multi-family and residential rental			1,188,000				413,000						918,000				841,000
Total commercial			17,822,000				10,480,000						14,830,000				16,706,000
Retail:
Home equity and other			580,000				483,000						482,000				603,000
1-4 family mortgages			1,636,000				789,000						715,000				715,000
Total retail			2,216,000				1,272,000						1,197,000				1,318,000
Total with no related allowance recorded		$	20,038,000			$	11,752,000					$	16,027,000			$	18,024,000

		Unpaid Contractual Principal Balance				Recorded Principal Balance				Related Allowance				Third Quarter Average Recorded Principal Balance				Year-To-Date Average Recorded Principal Balance
With an allowance recorded:
Commercial:
Commercial and industrial		$	3,221,000			$	1,926,000			$	924,000			$	3,528,000			$	3,406,000
Vacant land, land development and residential construction			2,333,000				2,219,000				1,367,000				2,981,000				3,529,000
Real estate – owner occupied			4,307,000				3,626,000				1,388,000				4,120,000				5,235,000
Real estate – non-owner occupied			33,818,000				32,964,000				11,773,000				25,220,000				23,085,000
Real estate – multi-family and residential rental			4,471,000				3,923,000				1,408,000				4,748,000				8,306,000
Total commercial			48,150,000				44,658,000				16,860,000				40,597,000				43,561,000
Retail:
Home equity and other			423,000				394,000				204,000				291,000				259,000
1-4 family mortgages			555,000				475,000				125,000				503,000				484,000
Total retail			978,000				869,000				329,000				794,000				743,000
Total with an allowance recorded		$	49,128,000			$	45,527,000			$	17,189,000			$	41,391,000			$	44,304,000
Total impaired loans:
Commercial		$	65,972,000			$	55,138,000			$	16,860,000			$	55,427,000			$	60,267,000
Retail			3,194,000				2,141,000				329,000				1,991,000				2,061,000
Total impaired loans		$	69,166,000			$	57,279,000			$	17,189,000			$	57,418,000			$	62,328,000

Loans by Credit Quality Indicators

Loans by credit quality indicators were as follows as of September 30, 2013:

Commercial credit exposure – credit risk profiled by internal credit risk grades:

		Commercial and Industrial				Commercial Vacant Land, Land Development, and Residential Construction				Commercial Real Estate – Owner Occupied				Commercial Real Estate – Non-Owner Occupied				Commercial Real Estate – Multi-Family and Residential Rental
Internal credit risk grade groupings:
Grades 1 – 4		$	208,750,000			$	8,089,000			$	157,824,000			$	205,586,000			$	31,755,000
Grades 5 – 7			75,339,000				27,022,000				97,819,000				130,040,000				18,230,000
Grades 8 – 9			2,798,000				5,630,000				3,013,000				32,675,000				3,193,000
Total commercial		$	286,887,000			$	40,741,000			$	258,656,000			$	368,301,000			$	53,178,000

Retail credit exposure – credit risk profiled by collateral type:

		Retail Home Equity and Other				Retail 1-4 Family Mortgages
Total retail		$	36,575,000			$	31,149,000

Loans by credit quality indicators were as follows as of December 31, 2012:

Commercial credit exposure – credit risk profiled by internal credit risk grades:

		Commercial and Industrial				Commercial Vacant Land, Land Development, and Residential Construction				Commercial Real Estate – Owner Occupied				Commercial Real Estate – Non-Owner Occupied				Commercial Real Estate – Multi-Family and Residential Rental
Internal credit risk grade groupings:
Grades 1 – 4		$	180,314,000			$	6,526,000			$	150,467,000			$	154,127,000			$	24,015,000
Grades 5 – 7			101,832,000				37,697,000				102,988,000				128,041,000				22,082,000
Grades 8 – 9			3,176,000				3,876,000				5,822,000				42,718,000				4,825,000
Total commercial		$	285,322,000			$	48,099,000			$	259,277,000			$	324,886,000			$	50,922,000

Retail credit exposure – credit risk profiled by collateral type:

		Retail Home Equity and Other				Retail 1-4 Family Mortgages
Total retail		$	38,917,000			$	33,766,000

Activity in Allowance for Loan Losses and the Recorded Investments in Loans

Activity in the allowance for loan losses and the recorded investments in loans as of and during the three and nine months ended September 30, 2013 are as follows:

		Commercial Loans				Retail Loans				Unallocated				Total
Allowance for loan losses:
Balance at June 30, 2013		$	22,382,000			$	2,559,000			$	6,000			$	24,947,000
Provision for loan losses			(1,730,000	)			(7,000	)			37,000				(1,700,000	)
Charge-offs			0				(85,000	)			0				(85,000	)
Recoveries			2,002,000				31,000				0				2,033,000
Ending balance		$	22,654,000			$	2,498,000			$	43,000			$	25,195,000
Allowance for loan losses:
Balance at December 31, 2012		$	26,043,000			$	2,645,000			$	(11,000	)		$	28,677,000
Provision for loan losses			(4,375,000	)			(379,000	)			54,000				(4,700,000	)
Charge-offs			(2,774,000	)			(107,000	)			0				(2,881,000	)
Recoveries			3,760,000				339,000				0				4,099,000
Ending balance		$	22,654,000			$	2,498,000			$	43,000			$	25,195,000
Ending balance: individually evaluated for impairment		$	13,860,000			$	1,203,000			$	0			$	15,063,000
Ending balance: collectively evaluated for impairment		$	8,794,000			$	1,295,000			$	43,000			$	10,132,000
Total loans:
Ending balance		$	1,007,763,000			$	67,724,000							$	1,075,487,000
Ending balance: individually evaluated for impairment		$	46,426,000			$	3,851,000							$	50,277,000
Ending balance: collectively evaluated for impairment		$	961,337,000			$	63,873,000							$	1,025,210,000

Activity in the allowance for loan losses and the recorded investments in loans as of and during the three and nine months ended September 30, 2012 are as follows:

		Commercial Loans				Retail Loans				Unallocated				Total
Allowance for loan losses:
Balance at June 30, 2012		$	26,471,000			$	3,167,000			$	51,000			$	29,689,000
Provision for loan losses			(355,000	)			(35,000	)			(10,000	)			(400,000	)
Charge-offs			(1,548,000	)			(343,000	)			0				(1,891,000	)
Recoveries			326,000				38,000				0				364,000
Ending balance		$	24,894,000			$	2,827,000			$	41,000			$	27,762,000
Allowance for loan losses:
Balance at December 31, 2011		$	33,431,000			$	3,019,000			$	82,000			$	36,532,000
Provision for loan losses			(3,480,000	)			121,000				(41,000	)			(3,400,000	)
Charge-offs			(10,662,000	)			(513,000	)			0				(11,175,000	)
Recoveries			5,605,000				200,000				0				5,805,000
Ending balance		$	24,894,000			$	2,827,000			$	41,000			$	27,762,000
Ending balance: individually evaluated for impairment		$	15,498,000			$	305,000			$	0			$	15,803,000
Ending balance: collectively evaluated for impairment		$	9,396,000			$	2,522,000			$	41,000			$	11,959,000
Total loans:
Ending balance		$	957,411,000			$	77,877,000							$	1,035,288,000
Ending balance: individually evaluated for impairment		$	61,378,000			$	1,836,000							$	63,214,000
Ending balance: collectively evaluated for impairment		$	896,033,000			$	76,041,000							$	972,074,000

Loans Modified as Troubled Debt Restructurings

Loans modified as troubled debt restructurings during the three months ended September 30, 2013 were as follows:

		Number of Contracts				Pre- Modification Recorded Principal Balance				Post- Modification Recorded Principal Balance
Commercial:
Commercial and industrial			1			$	553,000			$	553,000
Vacant land, land development and residential construction			0				0				0
Real estate – owner occupied			0				0				0
Real estate – non-owner occupied			2				171,000				171,000
Real estate – multi-family and residential rental			2				346,000				346,000
Total commercial			5				1,070,000				1,070,000
Retail:
Home equity and other			0				0				0
1-4 family mortgages			0				0				0
Total retail			0				0				0
Total			5			$	1,070,000			$	1,070,000

Loans modified as troubled debt restructurings during the nine months ended September 30, 2013 were as follows:

		Number of Contracts				Pre- Modification Recorded Principal Balance				Post- Modification Recorded Principal Balance
Commercial:
Commercial and industrial			2			$	613,000			$	613,000
Vacant land, land development and residential construction			2				3,247,000				3,247,000
Real estate – owner occupied			3				909,000				909,000
Real estate – non-owner occupied			4				2,239,000				2,239,000
Real estate – multi-family and residential rental			2				346,000				346,000
Total commercial			13				7,354,000				7,354,000
Retail:
Home equity and other			0				0				0
1-4 family mortgages			1				1,879,000				1,879,000
Total retail			1				1,879,000				1,879,000
Total			14			$	9,233,000			$	9,233,000

Loans modified as troubled debt restructurings during the three months ended September 30, 2012 were as follows:

		Number of Contracts				Pre- Modification Recorded Principal Balance				Post- Modification Recorded Principal Balance
Commercial:
Commercial and industrial			1			$	133,000			$	128,000
Vacant land, land development and residential construction			0				0				0
Real estate – owner occupied			0				0				0
Real estate – non-owner occupied			5				18,042,000				18,042,000
Real estate – multi-family and residential rental			0				0				0
Total commercial			6				18,175,000				18,170,000
Retail:
Home equity and other			0				0				0
1-4 family mortgages			0				0				0
Total retail			0				0				0
Total			6			$	18,175,000			$	18,170,000

Loans modified as troubled debt restructurings during the nine months ended September 30, 2012 were as follows:

		Number of Contracts				Pre- Modification Recorded Principal Balance				Post- Modification Recorded Principal Balance
Commercial:
Commercial and industrial			6			$	850,000			$	843,000
Vacant land, land development and residential construction			0				0				0
Real estate – owner occupied			5				1,588,000				1,587,000
Real estate – non-owner occupied			6				22,433,000				22,433,000
Real estate – multi-family and residential rental			0				0				0
Total commercial			17				24,871,000				24,863,000
Retail:
Home equity and other			0				0				0
1-4 family mortgages			0				0				0
Total retail			0				0				0
Total			17			$	24,871,000			$	24,863,000

Loans, Modified as Troubled Debt Restructurings within Previous Twelve Months, that Became Over 30 Days Past Due

The following loans, modified as troubled debt restructurings within the previous twelve months, became over 30 days past due within the three months ended September 30, 2013 (amounts as of period end):

		Number of Contracts				Recorded Principal Balance
Commercial:
Commercial and industrial			0			$	0
Vacant land, land development and residential construction			0				0
Real estate – owner occupied			0				0
Real estate – non-owner occupied			0				0
Real estate – multi-family and residential rental			0				0
Total commercial			0				0
Retail:
Home equity and other			0				0
1-4 family mortgages			0				0
Total retail			0				0
Total			0			$	0

The following loans, modified as troubled debt restructurings within the previous twelve months, became over 30 days past due within the nine months ended September 30, 2013 (amounts as of period end):

		Number of Contracts				Recorded Principal Balance
Commercial:
Commercial and industrial			0			$	0
Vacant land, land development and residential construction			0				0
Real estate – owner occupied			0				0
Real estate – non-owner occupied			0				0
Real estate – multi-family and residential rental			0				0
Total commercial			0				0
Retail:
Home equity and other			0				0
1-4 family mortgages			0				0
Total retail			0				0
Total			0			$	0

The following loans, modified as troubled debt restructurings within the previous twelve months, became over 30 days past due within the three months ended September 30, 2012 (amounts as of period end):

		Number of Contracts				Recorded Principal Balance
Commercial:
Commercial and industrial			0			$	0
Vacant land, land development and residential construction			0				0
Real estate – owner occupied			0				0
Real estate – non-owner occupied			0				0
Real estate – multi-family and residential rental			0				0
Total commercial			0				0
Retail:
Home equity and other			0				0
1-4 family mortgages			0				0
Total retail			0				0
Total			0			$	0

The following loans, modified as troubled debt restructurings within the previous twelve months, became over 30 days past due within the nine months ended September 30, 2012 (amounts as of period end):

		Number of Contracts				Recorded Principal Balance
Commercial:
Commercial and industrial			0			$	0
Vacant land, land development and residential construction			0				0
Real estate – owner occupied			0				0
Real estate – non-owner occupied			0				0
Real estate – multi-family and residential rental			0				0
Total commercial			0				0
Retail:
Home equity and other			0				0
1-4 family mortgages			0				0
Total retail			0				0
Total			0			$	0

Activity for Loans Categorized as Troubled Debt Restructurings

Activity for loans categorized as troubled debt restructurings during the three months ended September 30, 2013 is as follows:

		Commercial and Industrial				Commercial Vacant Land, Land Development, and Residential Construction				Commercial Real Estate – Owner Occupied				Commercial Real Estate – Non-Owner Occupied				Commercial Real Estate – Multi-Family and Residential Rental
Commercial Loan Portfolio:
Beginning Balance		$	2,266,000			$	5,440,000			$	3,580,000			$	34,424,000			$	2,775,000
Charge-Offs			0				0				0				0				0
Payments			(324,000	)			(303,000	)			(271,000	)			(1,690,000	)			(295,000	)
Transfers to ORE			0				0				0				(350,000	)			0
Net Additions/Deletions			466,000				0				(652,000	)			68,000				343,000
Ending Balance		$	2,408,000			$	5,137,000			$	2,657,000			$	32,452,000			$	2,823,000

		Retail Home Equity and Other				Retail 1-4 Family Mortgages
Retail Loan Portfolio:
Beginning Balance		$	2,029,000			$	0
Charge-Offs			0				0
Payments			(16,000	)			0
Transfers to ORE			0				0
Net Additions/Deletions			0				0
Ending Balance		$	2,013,000			$	0

Activity for loans categorized as troubled debt restructurings during the nine months ended September 30, 2013 is as follows:

		Commercial and Industrial				Commercial Vacant Land, Land Development, and Residential Construction				Commercial Real Estate – Owner Occupied				Commercial Real Estate – Non-Owner Occupied				Commercial Real Estate – Multi-Family and Residential Rental
Commercial Loan Portfolio:
Beginning Balance		$	2,721,000			$	3,071,000			$	4,116,000			$	37,672,000			$	3,026,000
Charge-Offs			(35,000	)			(725,000	)			(70,000	)			(716,000	)			(15,000	)
Payments			(1,902,000	)			(456,000	)			(1,310,000	)			(5,475,000	)			(530,000	)
Transfers to ORE			(74,000	)			0				(363,000	)			(1,153,000	)			0
Net Additions/Deletions			1,698,000				3,247,000				284,000				2,124,000				342,000
Ending Balance		$	2,408,000			$	5,137,000			$	2,657,000			$	32,452,000			$	2,823,000

		Retail Home Equity and Other				Retail 1-4 Family Mortgages
Retail Loan Portfolio:
Beginning Balance		$	155,000			$	0
Charge-Offs			0				0
Payments			(21,000	)			0
Transfers to ORE			0				0
Net Additions/Deletions			1,879,000				0
Ending Balance		$	2,013,000			$	0

Activity for loans categorized as troubled debt restructurings during the three months ended September 30, 2012 is as follows:

		Commercial and Industrial				Commercial Vacant Land, Land Development, and Residential Construction				Commercial Real Estate – Owner Occupied				Commercial Real Estate – Non-Owner Occupied				Commercial Real Estate – Multi-Family and Residential Rental
Commercial Loan Portfolio:
Beginning Balance		$	4,665,000			$	3,250,000			$	6,809,000			$	16,881,000			$	4,985,000
Charge-Offs			(60,000	)			0				(12,000	)			(474,000	)			0
Payments			(268,000	)			(55,000	)			(2,750,000	)			(178,000	)			(263,000	)
Transfers to ORE			(45,000	)			0				0				(579,000	)			0
Net Additions/Deletions			123,000				0				105,000				18,043,000				0
Ending Balance		$	4,415,000			$	3,195,000			$	4,152,000			$	33,693,000			$	4,722,000

		Retail Home Equity and Other				Retail 1-4 Family Mortgages
Retail Loan Portfolio:
Beginning Balance		$	159,000			$	0
Charge-Offs			0				0
Payments			(2,000	)			0
Transfers to ORE			0				0
Net Additions/Deletions			0				0
Ending Balance		$	157,000			$	0

Activity for loans categorized as troubled debt restructurings during the nine months ended September 30, 2012 is as follows:

		Commercial and Industrial				Commercial Vacant Land, Land Development, and Residential Construction				Commercial Real Estate – Owner Occupied				Commercial Real Estate – Non-Owner Occupied				Commercial Real Estate – Multi-Family and Residential Rental
Commercial Loan Portfolio:
Beginning Balance		$	4,553,000			$	5,100,000			$	6,183,000			$	12,037,000			$	12,626,000
Charge-Offs			(172,000	)			0				(426,000	)			(499,000	)			(2,180,000	)
Payments			(763,000	)			(1,952,000	)			(3,317,000	)			(689,000	)			(5,914,000	)
Transfers to ORE			(96,000	)			(351,000	)			0				(579,000	)			0
Net Additions/Deletions			893,000				398,000				1,712,000				23,423,000				190,000
Ending Balance		$	4,415,000			$	3,195,000			$	4,152,000			$	33,693,000			$	4,722,000

		Retail Home Equity and Other				Retail 1-4 Family Mortgages
Retail Loan Portfolio:
Beginning Balance		$	164,000			$	0
Charge-Offs			0				0
Payments			(7,000	)			0
Transfers to ORE			0				0
Net Additions/Deletions			0				0
Ending Balance		$	157,000			$	0

Allowance Related to Loans Categorized as Troubled Debt Restructurings

The allowance related to loans categorized as troubled debt restructurings was as follows:

		September 30, 2013				December 31, 2012
Commercial:
Commercial and industrial		$	619,000			$	772,000
Vacant land, land development, and residential construction			1,208,000				713,000
Real estate – owner occupied			893,000				1,116,000
Real estate – non-owner occupied			9,639,000				9,751,000
Real estate – multi-family and residential rental			885,000				745,000
Total commercial			13,244,000				13,097,000
Retail:
Home equity and other			0				0
1-4 family mortgages			920,000				0
Total retail			920,000				0
Total related allowance		$	14,164,000			$	13,097,000

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