Loans (Tables)

12 Months Ended

Dec. 31, 2012

The following table shows the composition of the Company's loan portfolio as of December 31, 2012 and 2011:

	December 31, 2012				December 31, 2011
Commercial
Real estate	$	251,335,000	28.9	%	$	255,424,000	29.5	%
Construction		22,417,000	2.6	%		32,574,000	3.8	%
Other		81,183,000	9.3	%		86,982,000	10.1	%
Municipal		14,704,000	1.7	%		16,221,000	1.9	%
Residential
Term		379,447,000	43.7	%		341,286,000	39.5	%
Construction		6,459,000	0.7	%		10,469,000	1.2	%
Home equity line of credit		99,082,000	11.4	%		105,244,000	12.1	%
Consumer		14,657,000	1.7	%		16,788,000	1.9	%
Total loans	$	869,284,000	100.0	%	$	864,988,000	100.0	%

Loans to Directors, Officers and Employees which exceed $60,000

Loans to directors, officers and employees totaled $28,707,000 at December 31, 2012 and $37,935,000 at December 31, 2011. A summary of loans to directors and executive officers, which in the aggregate exceed $60,000, is as follows:

For the years ended December 31,	2012			2011
Balance at beginning of year	$	24,551,000		$	25,525,000
New loans		275,000			237,000
Repayments		(9,909,000	)		(1,211,000	)
Balance at end of year	$	14,917,000		$	24,551,000

Past Due Loans Aging

Information on the past-due status of loans as of December 31, 2012, is presented in the following table:

	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate	$	2,172,000	$	346,000	$	2,380,000	$	4,898,000	$	246,437,000	$	251,335,000	$	102,000
Construction				29,000		35,000		64,000		22,353,000		22,417,000		-
Other		658,000		218,000		2,306,000		3,182,000		78,001,000		81,183,000		2,000
Municipal		136,000		-		-		136,000		14,568,000		14,704,000		-
Residential
Term		2,404,000		1,082,000		9,298,000		12,784,000		366,663,000		379,447,000		363,000
Construction		188,000		-		-		188,000		6,271,000		6,459,000		-
Home equity line of credit		430,000		133,000		1,136,000		1,699,000		97,383,000		99,082,000		539,000
Consumer		101,000		70,000		45,000		216,000		14,441,000		14,657,000		45,000
Total	$	6,089,000	$	1,878,000	$	15,200,000	$	23,167,000	$	846,117,000	$	869,284,000	$	1,051,000

Information on the past-due status of loans as of December 31, 2011, is presented in the following table:

	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		All Past Due		Current		Total		90+ Days & Accruing
Commercial
Real estate	$	1,367,000	$	1,505,000	$	3,992,000	$	6,864,000	$	248,560,000	$	255,424,000	$	-
Construction		-		174,000		1,603,000		1,777,000		30,797,000		32,574,000		-
Other		665,000		766,000		1,192,000		2,623,000		84,359,000		86,982,000		52,000
Municipal		-		-		-		-		16,221,000		16,221,000		-
Residential
Term		1,933,000		1,398,000		8,843,000		12,174,000		329,112,000		341,286,000		1,118,000
Construction		-		-		1,198,000		1,198,000		9,271,000		10,469,000		-
Home equity line of credit		480,000		-		1,134,000		1,614,000		103,630,000		105,244,000		-
Consumer		230,000		101,000		16,000		347,000		16,441,000		16,788,000		-
Total	$	4,675,000	$	3,944,000	$	17,978,000	$	26,597,000	$	838,391,000	$	864,988,000	$	1,170,000

Nonaccrual Loans

Information on nonaccrual loans as of December 31, 2012 and 2011 is presented in the following table:

	As of December 31
	2012		2011
Commercial
Real estate	$	4,603,000	$	7,064,000
Construction		101,000		2,350,000
Other		3,459,000		5,784,000
Municipal		-		-
Residential
Term		10,333,000		10,194,000
Construction		-		1,198,000
Home equity line of credit		654,000		1,163,000
Consumer		-		53,000
Total	$	19,150,000	$	27,806,000

Impaired Loans

Information regarding impaired loans is as follows:

For the years ended December 31,	2012		2011		2010
Average investment in impaired loans	$	45,019,000	$	28,777,000	$	25,836,000
Interest income recognized on impaired loans, all on cash basis		1,039,000		598,000		143,000

As of December 31,	2012			2011
Balance of impaired loans	$	45,744,000		$	42,120,000
Less portion for which no allowance for loan losses is allocated		(28,282,000	)		(27,897,000	)
Portion of impaired loan balance for which an allowance for loan losses is allocated	$	17,462,000		$	14,223,000
Portion of allowance for loan losses allocated to the impaired loan balance	$	3,539,000		$	2,058,000

Impaired Loans by class of financing receivable

A breakdown of impaired loans by category as of December 31, 2012, is presented in the following table:

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Recognized Interest Income
With No Related Allowance
Commercial
Real estate	$	9,386,000	$	9,963,000	$	-	$	10,102,000	$	199,000
Construction		101,000		115,000		-		2,533,000		-
Other		4,737,000		5,345,000		-		2,877,000		53,000
Municipal		-		-		-		-		-
Residential
Term		12,747,000		14,440,000		-		9,801,000		189,000
Construction		-		-		-		560,000		-
Home equity line of credit		1,311,000		1,440,000		-		961,000		27,000
Consumer		-		-		-		3,000		-
	$	28,282,000	$	31,303,000	$	-	$	26,837,000	$	468,000
With an Allowance Recorded
Commercial
Real estate	$	6,388,000	$	7,018,000	$	1,523,000	$	4,614,000	$	211,000
Construction		3,253,000		3,253,000		969,000		1,816,000		85,000
Other		1,124,000		1,126,000		652,000		1,974,000		38,000
Municipal		-		-		-		-		-
Residential
Term		6,697,000		6,842,000		395,000		9,066,000		237,000
Construction		-		-		-		261,000		-
Home equity line of credit		-		-		-		442,000		-
Consumer		-		-		-		9,000		-
	$	17,462,000	$	18,239,000	$	3,539,000	$	18,182,000	$	571,000
Total
Commercial
Real estate	$	15,774,000	$	16,981,000	$	1,523,000	$	14,716,000	$	410,000
Construction		3,354,000		3,368,000		969,000		4,349,000		85,000
Other		5,861,000		6,471,000		652,000		4,851,000		91,000
Municipal		-		-		-		-		-
Residential
Term		19,444,000		21,282,000		395,000		18,867,000		426,000
Construction		-		-		-		821,000		-
Home equity line of credit		1,311,000		1,440,000		-		1,403,000		27,000
Consumer		-		-		-		12,000		-
	$	45,744,000	$	49,542,000	$	3,539,000	$	45,019,000	$	1,039,000

A breakdown of impaired loans by category as of December 31, 2011, is presented in the following table:

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Recognized Interest Income
With No Related Allowance
Commercial
Real estate	$	5,584,000	$	5,584,000	$	-	$	5,212,000	$	23,000
Construction		5,172,000		5,172,000		-		1,072,000		143,000
Other		6,022,000		6,022,000		-		1,918,000		28,000
Municipal		-		-		-		-		-
Residential
Term		9,875,000		9,875,000		-		9,493,000		54,000
Construction		468,000		468,000		-		961,000		-
Home equity line of credit		739,000		739,000		-		646,000		-
Consumer		37,000		37,000		-		39,000		-
	$	27,897,000	$	27,897,000	$	-	$	19,341,000	$	248,000
With an Allowance Recorded
Commercial
Real estate	$	4,557,000	$	4,557,000	$	808,000	$	2,307,000	$	103,000
Construction		530,000		530,000		33,000		247,000		-
Other		1,020,000		1,020,000		402,000		681,000		19,000
Municipal		-		-		-		-		-
Residential
Term		6,946,000		6,946,000		478,000		5,628,000		228,000
Construction		730,000		730,000		235,000		244,000		-
Home equity line of credit		424,000		424,000		91,000		272,000		-
Consumer		16,000		16,000		11,000		57,000		-
	$	14,223,000	$	14,223,000	$	2,058,000	$	9,436,000	$	350,000
Total
Commercial
Real estate	$	10,141,000	$	10,141,000	$	808,000	$	7,519,000	$	126,000
Construction		5,702,000		5,702,000		33,000		1,318,000		143,000
Other		7,042,000		7,042,000		402,000		2,600,000		47,000
Municipal		-		-		-		-		-
Residential
Term		16,821,000		16,821,000		478,000		15,121,000		282,000
Construction		1,198,000		1,198,000		235,000		1,205,000		-
Home equity line of credit		1,163,000		1,163,000		91,000		918,000		-
Consumer		53,000		53,000		11,000		96,000		-
	$	42,120,000	$	42,120,000	$	2,058,000	$	28,777,000	$	598,000