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Loans
 12 Months Ended
Dec. 31, 2011
Loans [Abstract]  
Loans

4. LOANS

The loan portfolio of the Company consisted of the following:

 

     AT DECEMBER 31,  
     2011      2010  
     (IN THOUSANDS)  

Commercial

    $ 83,124       $ 78,322   

Commercial loans secured by real estate

      349,778         369,904   

Real estate-mortgage

      212,663         203,317   

Consumer

      18,172         19,233   
  

 

 

     

 

 

  

Loans, net of unearned income

    $ 663,737       $ 670,776   
  

 

 

     

 

 

  

Loan balances at December 31, 2011 and 2010 are net of unearned income of $452,000 and $477,000, respectively. Real estate construction loans comprised 1.9% and 3.9% of total loans net of unearned income at December 31, 2011 and 2010, respectively. The Company has no exposure to subprime mortgage loans in either the loan or investment portfolios. The Company has no direct credit exposure to foreign countries. Additionally, the Company has no significant industry lending concentrations. As of December 31, 2011 and 2010, loans to customers engaged in similar activities and having similar economic characteristics, as defined by standard industrial classifications, did not exceed 10% of total loans. Additionally, the majority of the Company's lending occurs within a 100 mile radius of the Johnstown market.

In the ordinary course of business, the subsidiaries have transactions, including loans, with their officers, directors, and their affiliated companies. In management's opinion, these transactions were on substantially the same terms as those prevailing at the time for comparable transactions with unaffiliated parties and do not involve more than the normal credit risk. These loans totaled $612,000 and $1,028,000 at December 31, 2011 and 2010, respectively. An analysis of these related party loans follows:

 

     YEAR ENDED
DECEMBER 31,		  
     2011     2010  
     (IN THOUSANDS)  

Balance January 1

    $ 1,028      $ 1,183   

New loans

      584        198   

Payments

      (1,000 )      (353 ) 
  

 

 

    

 

 

  

Balance December 31

    $ 612      $ 1,028