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Allowance for Loan Losses | 6 Months Ended
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Jun. 30, 2013
Allowance for Loan Losses [Abstract] |
Allowance for Loan Losses | Note 5 – Allowance for Loan Losses The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior one to five years. Management believes the five-year historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed. The actual allowance for loan loss activity is provided below.
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30 |  |  | June 30 |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
|  | (Unaudited) |  |  | (Unaudited) |  |  | (Unaudited) |  |  | (Unaudited) |
Balance at beginning of the period |  | $ | 19,565 |  |  | $ | 19,412 |  |  | $ | 18,270 |  |  | $ | 18,882 |
Loans charged-off: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate |  |  | 6 |  |  |  | 3 |  |  |  | 138 |  |  |  | 3 |
Non owner occupied real estate |  |  | 45 |  |  |  | 28 |  |  |  | 191 |  |  |  | 28 |
Residential development |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Development & Spec Land Loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial and industrial |  |  | 774 |  |  |  | 327 |  |  |  | 913 |  |  |  | 327 |
Total commercial |  |  | 825 |  |  |  | 358 |  |  |  | 1,242 |  |  |  | 358 |
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  |  | 416 |  |  |  | 115 |  |  |  | 559 |  |  |  | 204 |
Residential construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage warehouse |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total real estate |  |  | 416 |  |  |  | 115 |  |  |  | 559 |  |  |  | 204 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Direct Installment |  |  | 88 |  |  |  | 58 |  |  |  | 195 |  |  |  | 171 |
Direct Installment Purchased |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Indirect Installment |  |  | 271 |  |  |  | 271 |  |  |  | 624 |  |  |  | 609 |
Home Equity |  |  | 201 |  |  |  | 754 |  |  |  | 639 |  |  |  | 887 |
Total consumer |  |  | 560 |  |  |  | 1,083 |  |  |  | 1,458 |  |  |  | 1,667 |
Total loans charged-off |  |  | 1,801 |  |  |  | 1,556 |  |  |  | 3,259 |  |  |  | 2,229 |
Recoveries of loans previously charged-off: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate |  |  | 14 |  |  |  | 52 |  |  |  | 46 |  |  |  | 352 |
Non owner occupied real estate |  |  | 1 |  |  |  | — |  |  |  | 3 |  |  |  | 7 |
Residential development |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Development & Spec Land Loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial and industrial |  |  | 111 |  |  |  | 28 |  |  |  | 147 |  |  |  | 53 |
Total commercial |  |  | 126 |  |  |  | 80 |  |  |  | 196 |  |  |  | 412 |
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  |  | 5 |  |  |  | 2 |  |  |  | 8 |  |  |  | 32 |
Residential construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage warehouse |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total real estate |  |  | 5 |  |  |  | 2 |  |  |  | 8 |  |  |  | 32 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Direct Installment |  |  | 54 |  |  |  | 20 |  |  |  | 448 |  |  |  | 35 |
Direct Installment Purchased |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Indirect Installment |  |  | 202 |  |  |  | 189 |  |  |  | 372 |  |  |  | 390 |
Home Equity |  |  | — |  |  |  | 18 |  |  |  | 32 |  |  |  | 84 |
Total consumer |  |  | 256 |  |  |  | 227 |  |  |  | 852 |  |  |  | 509 |
Total loan recoveries |  |  | 387 |  |  |  | 309 |  |  |  | 1,056 |  |  |  | 953 |
Net loans charged-off |  |  | 1,414 |  |  |  | 1,247 |  |  |  | 2,203 |  |  |  | 1,276 |
Provision charged to operating expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | (940 | ) |  |  | (391 | ) |  |  | 802 |  |  |  | (305 | )
Real estate |  |  | 675 |  |  |  | 35 |  |  |  | 986 |  |  |  | 646 |
Consumer |  |  | 994 |  |  |  | 565 |  |  |  | 1,025 |  |  |  | 427 |
Total provision charged to operating expense |  |  | 729 |  |  |  | 209 |  |  |  | 2,813 |  |  |  | 768 |
Balance at the end of the period |  | $ | 18,880 |  |  | $ | 18,374 |  |  | $ | 18,880 |  |  | $ | 18,374 |
Certain loans are individually evaluated for impairment, and the Company’s general practice is to proactively charge down impaired loans to the fair value of the underlying collateral. Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except 1-4 family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off 1-4 family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down or specific allocation of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the value is known but no later than when a loan is 180 days past due. Pursuant to such guidelines, the Company also charges-off unsecured open-end loans when the loan is 90 days past due, and charges down to the net realizable value other secured loans when they are 90 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection in full will occur regardless of delinquency status, are not charged off. The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment analysis:
June 30, 2013 |  | Commercial |  |  | Real Estate |  |  | Mortgage Warehousing |  |  | Consumer |  |  | Total |
Allowance For Loan Losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 2,398 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,398 |
Collectively evaluated for impairment |  |  | 5,128 |  |  |  | 3,734 |  |  |  | 1,610 |  |  |  | 6,010 |  |  |  | 16,482 |
Total ending allowance balance |  | $ | 7,526 |  |  | $ | 3,734 |  |  | $ | 1,610 |  |  | $ | 6,010 |  |  | $ | 18,880 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 9,390 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 9,390 |
Collectively evaluated for impairment |  |  | 494,174 |  |  |  | 183,250 |  |  |  | 155,442 |  |  |  | 278,867 |  |  |  | 1,111,733 |
Total ending loans balance |  | $ | 503,564 |  |  | $ | 183,250 |  |  | $ | 155,442 |  |  | $ | 278,867 |  |  | $ | 1,121,123 |
December 31, 2012 |  | Commercial |  |  | Real Estate |  |  | Mortgage Warehousing |  |  | Consumer |  |  | Total |
Allowance For Loan Losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending allowance balance attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 1,945 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,945 |
Collectively evaluated for impairment |  |  | 5,826 |  |  |  | 3,204 |  |  |  | 1,705 |  |  |  | 5,590 |  |  |  | 16,325 |
Total ending allowance balance |  | $ | 7,771 |  |  | $ | 3,204 |  |  | $ | 1,705 |  |  | $ | 5,590 |  |  | $ | 18,270 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 10,597 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 10,597 |
Collectively evaluated for impairment |  |  | 451,243 |  |  |  | 190,292 |  |  |  | 251,928 |  |  |  | 290,174 |  |  |  | 1,183,637 |
Total ending loans balance |  | $ | 461,840 |  |  | $ | 190,292 |  |  | $ | 251,928 |  |  | $ | 290,174 |  |  | $ | 1,194,234 |

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- Definition The entire disclosure for any allowance and reserve accounts (their beginning and ending balances, as well as a reconciliation by type of activity during the period). Alternatively, disclosure of the required information may be within the footnotes to the financial statements or a supplemental schedule to the financial statements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24092-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 09 -Article 12 + Details
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