Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2012

Allowance for Loan and Lease Losses, Provision for Loss, Net [Abstract]

Allowance for loan losses by class of financing receivable and allowance

The following table summarizes the composition of the allowance for loan losses, by class of financing receivable and allowance, as of December 31, 2012 and 2011:

As of December 31,	2012		2011
Allowance for Loans Evaluated Individually for Impairment
Commercial
Real estate	$	1,523,000	$	808,000
Construction		969,000		33,000
Other		652,000		402,000
Municipal		-		-
Residential
Term		395,000		478,000
Construction		-		235,000
Home equity line of credit		-		91,000
Consumer		-		11,000
Total	$	3,539,000	$	2,058,000
Allowance for Loans Evaluated Collectively for Impairment
Commercial
Real estate	$	4,342,000	$	4,851,000
Construction		390,000		625,000
Other		1,398,000		1,661,000
Municipal		18,000		19,000
Residential
Term		714,000		681,000
Construction		11,000		20,000
Home equity line of credit		654,000		504,000
Consumer		592,000		573,000
Unallocated		842,000		2,008,000
Total	$	8,961,000	$	10,942,000
Total Allowance for Loan Losses
Commercial
Real estate	$	5,865,000	$	5,659,000
Construction		1,359,000		658,000
Other		2,050,000		2,063,000
Municipal		18,000		19,000
Residential
Term		1,109,000		1,159,000
Construction		11,000		255,000
Home equity line of credit		654,000		595,000
Consumer		592,000		584,000
Unallocated		842,000		2,008,000
Total	$	12,500,000	$	13,000,000

Loan losses by loan segment and allowance element [Table Text Block]

A breakdown of the allowance for loan losses as of December 31, 2012 and 2011, by class of financing receivable and allowance element, is presented in the following tables:

As of December 31, 2012	Specific Reserves on Loans Evaluated Individually for Impairment		General Reserves on Loans Based on Historical Loss Experience		Reserves for Qualitative Factors		Unallocated Reserves		Total Reserves
Commercial
Real estate	$	1,523,000	$	2,369,000	$	1,973,000	$	-	$	5,865,000
Construction		969,000		213,000		177,000		-		1,359,000
Other		652,000		763,000		635,000		-		2,050,000
Municipal		-		-		18,000		-		18,000
Residential
Term		395,000		278,000		436,000		-		1,109,000
Construction		-		4,000		7,000		-		11,000
Home equity line of credit		-		315,000		339,000		-		654,000
Consumer		-		362,000		230,000		-		592,000
Unallocated		-		-		-		842,000		842,000
	$	3,539,000	$	4,304,000	$	3,815,000	$	842,000	$	12,500,000

As of December 31, 2011	Specific Reserves on Loans Evaluated Individually for Impairment		General Reserves on Loans Based on Historical Loss Experience		Reserves for Qualitative Factors		Unallocated Reserves		Total Reserves
Commercial
Real estate	$	808,000	$	2,578,000	$	2,273,000	$	-	$	5,659,000
Construction		33,000		332,000		293,000		-		658,000
Other		402,000		883,000		778,000		-		2,063,000
Municipal		-		-		19,000		-		19,000
Residential
Term		478,000		222,000		459,000		-		1,159,000
Construction		235,000		6,000		14,000		-		255,000
Home equity line of credit		91,000		149,000		355,000		-		595,000
Consumer		11,000		331,000		242,000		-		584,000
Unallocated		-		-		-		2,008,000		2,008,000
	$	2,058,000	$	4,501,000	$	4,433,000	$	2,008,000	$	13,000,000

Summary of Risk Ratings for Loans

The following table summarizes the risk ratings for the Company's commercial construction, commercial real estate, commercial other and municipal loans as of December 31, 2012:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	19,000	$	-	$	271,000	$	1,731,000	$	2,021,000
2 Above average		13,871,000		1,274,000		4,084,000		7,061,000		26,290,000
3 Satisfactory		34,454,000		2,312,000		14,578,000		3,487,000		54,831,000
4 Average		99,712,000		12,322,000		28,618,000		2,425,000		143,077,000
5 Watch		43,369,000		1,721,000		19,524,000		-		64,614,000
6 OAEM		26,302,000		79,000		5,300,000		-		31,681,000
7 Substandard		33,153,000		4,709,000		8,806,000		-		46,668,000
8 Doubtful		455,000		-		2,000		-		457,000
Total	$	251,335,000	$	22,417,000	$	81,183,000	$	14,704,000	$	369,639,000

The following table summarizes the risk ratings for the Company's commercial construction, commercial real estate, commercial other and municipal loans as of December 31, 2011:

	Commercial Real Estate		Commercial Construction		Commercial Other		Municipal Loans		All Risk- Rated Loans
1 Strong	$	23,000	$	-	$	465,000	$	2,158,000	$	2,646,000
2 Above average		21,334,000		-		4,229,000		7,509,000		33,072,000
3 Satisfactory		33,119,000		1,365,000		10,981,000		3,861,000		49,326,000
4 Average		106,171,000		17,125,000		31,600,000		2,693,000		157,589,000
5 Watch		44,215,000		3,287,000		17,893,000		-		65,395,000
6 OAEM		18,309,000		2,320,000		5,303,000		-		25,932,000
7 Substandard		31,575,000		7,323,000		16,362,000		-		55,260,000
8 Doubtful		678,000		1,154,000		149,000		-		1,981,000
Total	$	255,424,000	$	32,574,000	$	86,982,000	$	16,221,000	$	391,201,000

Allowance for Loan Losses Transactions

There were no changes to the Company's accounting policies or methodology used to estimate the allowance for loan losses during the year ended December 31, 2012. Allowance for loan losses transactions for the years ended December 31, 2012, 2011 and 2010 were as follows:

For the year ended	Commercial						Municipal			Residential				Home Equity		Consumer		Unallocated			Total
December 31, 2012	Real Estate		Construction		Other					Term		Construction		Line of Credit
Allowance for loan losses:
Beginning balance	$	5,659,000	$	658,000	$	2,063,000	$	19,000		$	1,159,000	$	255,000	$	595,000	$	584,000	$	2,008,000		$	13,000,000
Charge offs		1,394,000		928,000		3,215,000		-			1,911,000		389,000		688,000		555,000		-			9,080,000
Recoveries		13,000		246,000		113,000		-			110,000		54,000		1,000		208,000		-			745,000
Provision		1,587,000		1,383,000		3,089,000		(1,000	)		1,751,000		91,000		746,000		355,000		(1,166,000	)		7,835,000
Ending balance	$	5,865,000	$	1,359,000	$	2,050,000	$	18,000		$	1,109,000	$	11,000	$	654,000	$	592,000	$	842,000		$	12,500,000
Ending balance specifically evaluated for impairment	$	1,523,000	$	969,000	$	652,000	$	-		$	395,000	$	-	$	-	$	-	$	-		$	3,539,000
Ending balance collectively evaluated for impairment	$	4,342,000	$	390,000	$	1,398,000	$	18,000		$	714,000	$	11,000	$	654,000	$	592,000	$	842,000		$	8,961,000
Related loan balances:
Ending balance	$	251,335,000	$	22,417,000	$	81,183,000	$	14,704,000		$	379,447,000	$	6,459,000	$	99,082,000	$	14,657,000	$	-		$	869,284,000
Ending balance specifically evaluated for impairment	$	15,774,000	$	3,354,000	$	5,861,000	$	-		$	19,444,000	$	-	$	1,311,000	$	-	$	-		$	45,744,000
Ending balance collectively evaluated for impairment	$	235,561,000	$	19,063,000	$	75,322,000	$	14,704,000		$	360,003,000	$	6,459,000	$	97,771,000	$	14,657,000	$	-		$	823,540,000

For the year ended	Commercial							Municipal		Residential				Home Equity		Consumer		Unallocated		Total
December 31, 2011	Real Estate		Construction			Other				Term		Construction		Line of Credit
Allowance for loan losses:
Beginning balance	$	5,260,000	$	1,012,000		$	2,377,000	$	19,000	$	1,408,000	$	44,000	$	670,000	$	646,000	$	1,880,000	$	13,316,000
Charge offs		1,619,000		346,000			6,492,000		-		1,421,000		505,000		415,000		381,000		-		11,179,000
Recoveries		23,000		-			60,000		-		7,000		-		1,000		222,000		-		313,000
Provision		1,995,000		(8,000	)		6,118,000		-		1,165,000		716,000		339,000		97,000		128,000		10,550,000
Ending balance	$	5,659,000	$	658,000		$	2,063,000	$	19,000	$	1,159,000	$	255,000	$	595,000	$	584,000	$	2,008,000	$	13,000,000
Ending balance specifically evaluated for impairment	$	808,000	$	33,000		$	402,000	$	-	$	478,000	$	235,000	$	91,000	$	11,000	$	-	$	2,058,000
Ending balance collectively evaluated for impairment	$	4,851,000	$	625,000		$	1,661,000	$	19,000	$	681,000	$	20,000	$	504,000	$	573,000	$	2,008,000	$	10,942,000
Related loan balances:
Ending balance	$	255,424,000	$	32,574,000		$	86,982,000	$	16,221,000	$	341,286,000	$	10,469,000	$	105,244,000	$	16,788,000	$	-	$	864,988,000
Ending balance specifically evaluated for impairment	$	10,141,000	$	5,702,000		$	7,042,000	$	-	$	16,821,000	$	1,198,000	$	1,163,000	$	53,000	$	-	$	42,120,000
Ending balance collectively evaluated for impairment	$	245,283,000	$	26,872,000		$	79,940,000	$	16,221,000	$	324,465,000	$	9,271,000	$	104,081,000	$	16,735,000	$	-	$	822,868,000

For the year ended	Commercial						Municipal			Residential				Home Equity		Consumer		Unallocated		Total
December 31, 2010	Real Estate		Construction		Other					Term		Construction		Line of Credit
Allowance for loan losses:
Beginning balance	$	4,986,000	$	807,000	$	3,363,000	$	23,000		$	1,198,000	$	174,000	$	515,000	$	717,000	$	1,854,000	$	13,637,000
Charge offs		4,005,000		175,000		1,125,000		-			392,000		2,361,000		8,000		951,000		-		9,017,000
Recoveries		4,000		-		69,000		-			4,000		-		-		219,000		-		296,000
Provision		4,275,000		380,000		70,000		(4,000	)		598,000		2,231,000		163,000		661,000		26,000		8,400,000
Ending balance	$	5,260,000	$	1,012,000	$	2,377,000	$	19,000		$	1,408,000	$	44,000	$	670,000	$	646,000	$	1,880,000	$	13,316,000
Ending balance specifically evaluated for impairment	$	192,000	$	152,000	$	291,000	$	-		$	432,000	$	-	$	122,000	$	67,000	$	-	$	1,256,000
Ending balance collectively evaluated for impairment	$	5,068,000	$	860,000	$	2,086,000	$	19,000		$	976,000	$	44,000	$	548,000	$	579,000	$	1,880,000	$	12,060,000
Related loan balances:
Ending balance	$	245,540,000	$	41,869,000	$	101,462,000	$	21,833,000		$	337,927,000	$	15,512,000	$	105,297,000	$	18,156,000	$	-	$	887,596,000
Ending balance specifically evaluated for impairment	$	5,946,000	$	937,000	$	1,753,000	$	-		$	12,455,000	$	3,567,000	$	519,000	$	106,000	$	-	$	25,283,000
Ending balance collectively evaluated for impairment	$	239,594,000	$	40,932,000	$	99,709,000	$	21,833,000		$	325,472,000	$	11,945,000	$	104,778,000	$	18,050,000	$	-	$	862,313,000

Troubled debt restructurings by class and specific reserve

The following table shows TDRs by class and the specific reserve as of December 31, 2012:

	Number of Loans		Balance		Specific Reserves
Commercial
Real estate		18	$	11,961,000	$	823,000
Construction		3		3,319,000		969,000
Other		23		3,074,000		574,000
Municipal		-		-		-
Residential
Term		53		10,945,000		224,000
Construction		-		-		-
Home equity line of credit		4		656,000		-
Consumer		-		-		-
		101	$	29,955,000	$	2,590,000

The following table shows TDRs by class and the specific reserve as of December 31, 2011:

	Number of Loans		Balance		Specific Reserves
Commercial
Real estate		4	$	3,078,000	$	273,000
Construction		3		4,506,000		-
Other		9		5,350,000		97,000
Municipal		-		-		-
Residential
Term		43		9,924,000		363,000
Construction		-		-		-
Home equity line of credit		-		-		-
Consumer		-		-		-
		59	$	22,858,000	$	733,000

Loans placed on troubled debt restructurings by class and specific reserve

As of December 31, 2012, 12 of the loans classified as TDRs with a total balance of $2,413,000 were more than 30 days past due. Of these loans, six loans with an outstanding balance of $1,059,000 had been placed on TDR status in the previous 12 months. The following table shows past-due TDRs by class and the associated specific reserves included in the allowance for loan losses as of December 31, 2012:

	Number of Loans		Balance		Specific Reserves
Commercial
Real estate		3	$	760,000	$	-
Construction		-		-		-
Other		-		-		-
Municipal		-		-		-
Residential
Term		8		1,624,000		67,000
Construction		-		-		-
Home equity line of credit		1		29,000		-
Consumer		-		-		-
		12	$	2,413,000	$	67,000

As of December 31, 2011, 14 of the loans classified as TDRs with a total balance of $2,841,000 were more than 30 days past due. Of these loans, six loans with an outstanding balance of $1,588,000 had been placed on TDR status in the previous 12 months. The following table shows past-due TDRs by class and the associated specific reserves included in the allowance for loan losses as of December 31, 2011:

	Number of Loans		Balance		Specific Reserves
Commercial
Real estate		-	$	-	$	-
Construction		1		1,154,000		-
Other		3		96,000		47,000
Municipal		-		-		-
Residential
Term		10		1,591,000		52,000
Construction		-		-		-
Home equity line of credit		-		-		-
Consumer		-		-		-
		14	$	2,841,000	$	99,000

During the year ended December 31, 2012, 52 loans were placed on TDR status with an outstanding balance of $14,657,000. These were considered TDRs because concessions had been granted to borrowers experiencing financial difficulties. Concessions include reductions in interest rates, principal and/or interest forbearance, payment extensions, or combinations thereof. The following table shows loans placed on TDR status during the year ended December 31, 2012, by class of loan and the associated specific reserve included in the allowance for loan losses as of December 31, 2012:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Specific Reserves
Commercial
Real estate		13	$	6,821,000	$	7,149,000	$	180,000
Construction		3		3,319,000		3,333,000		969,000
Other		19		1,887,000		1,903,000		543,000
Municipal		-		-		-		-
Residential
Term		13		1,974,000		1,989,000		77,000
Construction		-		-		-		-
Home equity line of credit		4		656,000		656,000		-
Consumer		-		-		-		-
		52	$	14,657,000	$	15,030,000	$	1,769,000

During the year ended December 31, 2011, 31 loans were placed on TDR status with an outstanding balance of $18,325,000. These were considered to be TDRs because concessions had been granted to borrowers experiencing financial difficulties. Concessions include reductions in interest rates, principal and/or interest forbearance, payment extensions, or combinations thereof. The following table shows loans placed on TDR status in 2011 by type of loan and the associated specific reserve included in the allowance for loan losses as of December 31, 2011:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Specific Reserves
Commercial
Real estate		4	$	3,078,000	$	3,078,000	$	273,000
Construction		3		4,506,000		4,506,000		-
Other		9		5,350,000		5,350,000		97,000
Municipal		-		-		-		-
Residential
Term		15		5,391,000		5,391,000		258,000
Construction		-		-		-		-
Home equity line of credit		-		-		-		-
Consumer		-		-		-		-
Unallocated		-		-		-		-
		31	$	18,325,000	$	18,325,000	$	628,000