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Loans and Allowance for Loan Losses | 12 Months Ended
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Dec. 31, 2013
Receivables [Abstract] |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] |
| Note 5. | Loans and Allowance for Loan Losses
At December 31, 2013 and 2012, the Bank's loans consist of the following (in thousands):
|  | 2013 |  |  | 2012 |
Commercial real estate-mortgage: |  |  |  |  |  |  |  |
Owner-occupied |  | $ | 65,747 |  |  | $ | 58,425 |
All other |  |  | 64,052 |  |  |  | 66,747 |
Consumer real estate-mortgage |  |  | 76,315 |  |  |  | 71,195 |
Construction and land development |  |  | 41,597 |  |  |  | 38,557 |
Commercial and industrial |  |  | 38,999 |  |  |  | 40,140 |
Consumer and other |  |  | 2,730 |  |  |  | 1,927 |
Total loans |  |  | 289,440 |  |  |  | 276,991 |
Less: Allowance for loan losses |  |  | (3,203 | ) |  |  | (6,141 | )
Loans, net |  | $ | 286,237 |  |  | $ | 270,850 |
The following describe risk characteristics relevant to each of the portfolio segments: Real estate: As discussed below, Cornerstone offers various types of real estate loan products. All loans within this portfolio segment are particularly sensitive to the valuation of real estate:
| § | Commercial real estate-mortgage loans include owner-occupied commercial real estate loans and other commercial real estate loans. Owner-occupied commercial real estate loans to operating businesses are long-term financing of land and buildings. Other commercial real estate loans are generally secured by income producing properties.
| § | Consumer real estate-mortgage loans include loans secured by 1-4 family and multifamily residential properties. These loans are repaid by various means such as a borrower’s income, sale of the property, or rental income derived from the property.
| § | Construction and land development loans include extensions of credit to real estate developers or investors where repayment is dependent on the sale of the real estate or income generated from the real estate collateral. These loans are repaid through cash flow related to the operations, sale, or refinance of the underlying property. This portfolio segment also includes owner-occupied construction loans for commercial businesses for the development of land or construction of a building. These loans are repaid by cash flow generated from the business operation. Real estate loans for income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers are repaid from rent income derived from the properties.
Commercial and industrial: The commercial and industrial loans include those loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or expansion projects. Loans are repaid by business cash flows. Collection risk in this portfolio is driven by the creditworthiness of the underlying borrower, particularly cash flows from the customers’ business operations. Consumer and other: The consumer loan portfolio segment includes direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. Loans in this portfolio are sensitive to unemployment and other key consumer economic measures. An analysis of the allowance for loan losses follows:
|  | 2013 |  |  | 2012 |  |  | 2011 |
Balance, beginning of year |  | $ | 6,141,281 |  |  | $ | 7,400,049 |  |  | $ | 9,132,171 |
Provision for loan losses |  |  | 300,000 |  |  |  | 430,000 |  |  |  | 445,000 |
Charge-offs |  |  | (4,708,605 | ) |  |  | (2,868,576 | ) |  |  | (3,148,314 | )
Recoveries |  |  | 1,470,482 |  |  |  | 1,179,808 |  |  |  | 971,192 |
Balance, end of year |  | $ | 3,203,158 |  |  | $ | 6,141,281 |  |  | $ | 7,400,049 |
Cornerstone follows the loan impairment accounting guidance in ASC Topic 310. A loan is considered impaired when, based on current information and events, it is probable that Cornerstone will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans and loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in interest rates, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collections. The composition of loans by loan classification for impaired and performing loans at December 31, 2013 and 2012, is summarized in the tables below (in thousands): As of December 31, 2013:
|  | Commercial |  |  | Consumer |  |  | Construction |  |  | Commercial |  |  |  |  |  |  |
|  | Real Estate- |  |  | Real Estate- |  |  | and Land |  |  | and |  |  | Consumer |  |  |  |
|  | Mortgage |  |  | Mortgage |  |  | Development |  |  | Industrial |  |  | and Other |  |  | Total |
Performing loans |  | $ | 121,817 |  |  | $ | 72,868 |  |  | $ | 41,228 |  |  | $ | 37,007 |  |  | $ | 2,730 |  |  | $ | 275,650 |
Impaired loans |  |  | 7,982 |  |  |  | 3,447 |  |  |  | 369 |  |  |  | 1,992 |  |  |  | - |  |  |  | 13,790 |
Total |  | $ | 129,799 |  |  | $ | 76,315 |  |  | $ | 41,597 |  |  | $ | 38,999 |  |  | $ | 2,730 |  |  | $ | 289,440 |
As of December 31, 2012:
|  | Commercial |  |  | Consumer |  |  | Construction |  |  | Commercial |  |  |  |  |  |  |
|  | Real Estate- |  |  | Real Estate- |  |  | and Land |  |  | and |  |  | Consumer |  |  |  |
|  | Mortgage |  |  | Mortgage |  |  | Development |  |  | Industrial |  |  | and Other |  |  | Total |
Performing loans |  | $ | 115,959 |  |  | $ | 69,329 |  |  | $ | 37,607 |  |  | $ | 36,980 |  |  | $ | 1,927 |  |  | $ | 261,802 |
Impaired loans |  |  | 9,213 |  |  |  | 1,866 |  |  |  | 950 |  |  |  | 3,160 |  |  |  | - |  |  |  | 15,189 |
Total |  | $ | 125,172 |  |  | $ | 71,195 |  |  | $ | 38,557 |  |  | $ | 40,140 |  |  | $ | 1,927 |  |  | $ | 276,991 |
The following tables show the allowance for loan losses allocation by loan classification for impaired and performing loans as of December 31, 2013 and 2012 (in thousands): As of December 31, 2013:
|  | Commercial |  |  | Consumer |  |  | Construction |  |  | Commercial |  |  |  |  |  |  |
|  | Real Estate- |  |  | Real Estate- |  |  | and Land |  |  | and |  |  | Consumer |  |  |  |
|  | Mortgage |  |  | Mortgage |  |  | Development |  |  | Industrial |  |  | and Other |  |  | Total |
Allowance related to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing loans |  | $ | 1,051 |  |  | $ | 927 |  |  | $ | 319 |  |  | $ | 297 |  |  | $ | 45 |  |  | $ | 2,639 |
Impaired loans |  |  | 498 |  |  |  | 11 |  |  |  | - |  |  |  | 55 |  |  |  | - |  |  |  | 564 |
Total |  | $ | 1,549 |  |  | $ | 938 |  |  | $ | 319 |  |  | $ | 352 |  |  | $ | 45 |  |  | $ | 3,203 |
As of December 31, 2012:
|  | Commercial |  |  | Consumer |  |  | Construction |  |  | Commercial |  |  |  |  |  |  |
|  | Real Estate- |  |  | Real Estate- |  |  | and Land |  |  | and |  |  | Consumer |  |  |  |
|  | Mortgage |  |  | Mortgage |  |  | Development |  |  | Industrial |  |  | and Other |  |  | Total |
Allowance related to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing loans |  | $ | 319 |  |  | $ | 952 |  |  | $ | 781 |  |  | $ | 29 |  |  | $ | 14 |  |  | $ | 2,095 |
Impaired loans |  |  | 2,230 |  |  |  | 576 |  |  |  | 460 |  |  |  | 780 |  |  |  | - |  |  |  | 4,046 |
Total |  | $ | 2,549 |  |  | $ | 1,528 |  |  | $ | 1,241 |  |  | $ | 809 |  |  | $ | 14 |  |  | $ | 6,141 |
The following tables detail the changes in the allowance for loan losses during December 31, 2013 and 2012, by loan classification (in thousands): As of December 31, 2013:
|  | Commercial |  |  | Consumer |  |  | Construction |  |  | Commercial |  |  |  |  |  |  |
|  | Real Estate- |  |  | Real Estate- |  |  | and Land |  |  | and |  |  | Consumer |  |  |  |
|  | Mortgage |  |  | Mortgage |  |  | Development |  |  | Industrial |  |  | and Other |  |  | Total |
Balance, beginning of year |  | $ | 2,549 |  |  | $ | 1,528 |  |  | $ | 1,241 |  |  | $ | 809 |  |  | $ | 14 |  |  | $ | 6,141 |
Provision for loan losses |  |  | 811 |  |  |  | 11 |  |  |  | (787 | ) |  |  | 143 |  |  |  | 122 |  |  |  | 300 |
Charge-offs |  |  | (1,879 | ) |  |  | (842 | ) |  |  | (1,193 | ) |  |  | (699 | ) |  |  | (96 | ) |  |  | (4,709 | )
Recoveries |  |  | 68 |  |  |  | 241 |  |  |  | 1,058 |  |  |  | 99 |  |  |  | 5 |  |  |  | 1,471 |
Balance, end of year |  | $ | 1,549 |  |  | $ | 938 |  |  | $ | 319 |  |  | $ | 352 |  |  | $ | 45 |  |  | $ | 3,203 |
As of December 31, 2012:
|  | Commercial |  |  | Consumer |  |  | Construction |  |  | Commercial |  |  |  |  |  |  |
|  | Real Estate- |  |  | Real Estate- |  |  | and Land |  |  | and |  |  | Consumer |  |  |  |
|  | Mortgage |  |  | Mortgage |  |  | Development |  |  | Industrial |  |  | and Other |  |  | Total |
Balance, beginning of year |  | $ | 3,557 |  |  | $ | 2,518 |  |  | $ | 827 |  |  | $ | 482 |  |  | $ | 16 |  |  | $ | 7,400 |
Provision for loan losses |  |  | (888 | ) |  |  | (4 | ) |  |  | 1,051 |  |  |  | 257 |  |  |  | 14 |  |  |  | 430 |
Charge-offs |  |  | (958 | ) |  |  | (1,022 | ) |  |  | (782 | ) |  |  | (74 | ) |  |  | (33 | ) |  |  | (2,869 | )
Recoveries |  |  | 838 |  |  |  | 36 |  |  |  | 145 |  |  |  | 144 |  |  |  | 17 |  |  |  | 1,180 |
Balance, end of year |  | $ | 2,549 |  |  | $ | 1,528 |  |  | $ | 1,241 |  |  | $ | 809 |  |  | $ | 14 |  |  | $ | 6,141 |
Credit quality indicators: Federal regulations require the Bank to review and classify its assets on a regular basis. To fulfill this requirement, the Bank systematically reviews its loan portfolio to ensure the Bank’s large loan relationships are being maintained within its loan policy guidelines, remain properly underwritten, and are properly classified by loan grade. This review process is performed by the Bank's management, internal and external loan review, internal auditors, and state and federal regulators. The Bank’s loan grading process is as follows:
| § | All loans are assigned a loan grade at the time of origination by the relationship manager. Typically, a loan is assigned a loan grade of “pass” at origination.
| § | Loans relationships greater than or equal to $500 thousand are reviewed by the Bank’s external loan review provider on an annual basis.
| § | Additionally, the Bank's external loan review provider samples other loan relationships between $100 thousand and $500 thousand with an emphasis on commercial and commercial real estate loans and insider loans.
| § | The Bank’s internal loan review department samples approximately 33 percent of all loan relationships less than $500 thousand on an annual basis for review.
| § | If a loan is delinquent 60 days or more or a pattern of delinquency exists, the loan will be selected for review.
| § | Generally, all loans on the Bank’s internal watchlist are reviewed annually by internal loan review or external loan review providers.
If a loan is classified as a problem asset, it will be assigned one of the following loan grades: substandard, doubtful, and loss. “Substandard” assets must have one or more defined weaknesses and are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. “Doubtful” assets have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss. An asset classified “loss” is considered uncollectible and of such little value that continuance as an asset of the institution is not warranted. The regulations also provide for a “special mention” category, described as assets which do not currently expose an institution to a sufficient degree of risk to warrant classification but do possess credit deficiencies or potential weaknesses deserving close attention. When the Bank classifies an asset as substandard or doubtful, a specific allowance for loan losses may be established. The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of December 31, 2013 and 2012 (in thousands): As of December 31, 2013:
|  | Commercial |  |  | Consumer |  |  | Construction |  |  | Commercial |  |  |  |  |  |  |
|  | Real Estate- |  |  | Real Estate- |  |  | and Land |  |  | and |  |  | Consumer |  |  |  |
|  | Mortgage |  |  | Mortgage |  |  | Development |  |  | Industrial |  |  | and Other |  |  | Total |
Pass |  | $ | 119,398 |  |  | $ | 67,444 |  |  | $ | 40,850 |  |  | $ | 33,394 |  |  | $ | 2,730 |  |  | $ | 263,816 |
Special mention |  |  | 3,538 |  |  |  | 3,536 |  |  |  | 73 |  |  |  | 3,468 |  |  |  | - |  |  |  | 10,615 |
Substandard |  |  | 6,863 |  |  |  | 5,335 |  |  |  | 674 |  |  |  | 2,137 |  |  |  | - |  |  |  | 15,009 |
|  | $ | 129,799 |  |  | $ | 76,315 |  |  | $ | 41,597 |  |  | $ | 38,999 |  |  | $ | 2,730 |  |  | $ | 289,440 |
As of December 31, 2012:
|  | Commercial |  |  | Consumer |  |  | Construction |  |  | Commercial |  |  |  |  |  |  |
|  | Real Estate- |  |  | Real Estate- |  |  | and Land |  |  | and |  |  | Consumer |  |  |  |
|  | Mortgage |  |  | Mortgage |  |  | Development |  |  | Industrial |  |  | and Other |  |  | Total |
Pass |  | $ | 111,313 |  |  | $ | 57,959 |  |  | $ | 36,802 |  |  | $ | 36,482 |  |  | $ | 1,904 |  |  | $ | 244,460 |
Special mention |  |  | 4,145 |  |  |  | 8,401 |  |  |  | 198 |  |  |  | 330 |  |  |  | 18 |  |  |  | 13,092 |
Substandard |  |  | 9,714 |  |  |  | 4,835 |  |  |  | 1,557 |  |  |  | 3,328 |  |  |  | 5 |  |  |  | 19,439 |
|  | $ | 125,172 |  |  | $ | 71,195 |  |  | $ | 38,557 |  |  | $ | 40,140 |  |  | $ | 1,927 |  |  | $ | 276,991 |
After the Bank’s independent loan review department completes the loan grade assignment, a loan impairment analysis is performed on loans graded substandard or worse. The following tables present summary information pertaining to impaired loans by loan classification as of December 31, 2013, 2012, and 2011 (in thousands):
|  |  |  |  |  |  |  |  |  |  | For the Year Ended |
|  | At December 31, 2013 |  |  | December 31, 2013 |
|  |  |  |  | Unpaid |  |  |  |  |  | Average |  |  | Interest |
|  | Recorded |  |  | Principal |  |  | Related |  |  | Recorded |  |  | Income |
|  | Investment |  |  | Balance |  |  | Allowance |  |  | Investment |  |  | Recognized |
Impaired loans without a valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate – mortgage |  | $ | 5,786 |  |  | $ | 5,854 |  |  | $ | - |  |  | $ | 4,657 |  |  | $ | 340 |
Consumer real estate – mortgage |  |  | 2,177 |  |  |  | 2,202 |  |  |  | - |  |  |  | 2,669 |  |  |  | 96 |
Construction and land development |  |  | 369 |  |  |  | 383 |  |  |  | - |  |  |  | 358 |  |  |  | 23 |
Commercial and industrial |  |  | 1,563 |  |  |  | 1,621 |  |  |  | - |  |  |  | 1,857 |  |  |  | 60 |
Consumer and other |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  |  | 9,895 |  |  |  | 10,060 |  |  |  | - |  |  |  | 9,541 |  |  |  | 519 |
Impaired loans with a valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate – mortgage |  |  | 2,196 |  |  |  | 2,285 |  |  |  | 498 |  |  |  | 4,869 |  |  |  | 118 |
Consumer real estate – mortgage |  |  | 1,270 |  |  |  | 1,281 |  |  |  | 11 |  |  |  | 1,353 |  |  |  | 90 |
Construction and land development |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 177 |  |  |  | - |
Commercial and industrial |  |  | 429 |  |  |  | 430 |  |  |  | 55 |  |  |  | 597 |  |  |  | 53 |
Consumer and other |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  |  | 3,895 |  |  |  | 3,996 |  |  |  | 564 |  |  |  | 6,996 |  |  |  | 261 |
Total impaired loans |  | $ | 13,790 |  |  | $ | 14,056 |  |  | $ | 564 |  |  | $ | 16,537 |  |  | $ | 780 |
|  |  |  |  |  |  |  |  |  |  | For the Year Ended |
|  | At December 31, 2012 |  |  | December 31, 2012 |
|  |  |  |  | Unpaid |  |  |  |  |  | Average |  |  | Interest |
|  | Recorded |  |  | Principal |  |  | Related |  |  | Recorded |  |  | Income |
|  | Investment |  |  | Balance |  |  | Allowance |  |  | Investment |  |  | Recognized |
Impaired loans without a valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate – mortgage |  | $ | 3,406 |  |  | $ | 3,453 |  |  | $ | - |  |  | $ | 4,389 |  |  | $ | 180 |
Consumer real estate – mortgage |  |  | 513 |  |  |  | 540 |  |  |  | - |  |  |  | 1,538 |  |  |  | 52 |
Construction and land development |  |  | 244 |  |  |  | 251 |  |  |  | - |  |  |  | 358 |  |  |  | 19 |
Commercial and industrial |  |  | 2,111 |  |  |  | 2,155 |  |  |  | - |  |  |  | 2,277 |  |  |  | 55 |
Consumer and other |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  |  | 6,274 |  |  |  | 6,399 |  |  |  | - |  |  |  | 8,562 |  |  |  | 306 |
Impaired loans with a valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate – mortgage |  |  | 5,807 |  |  |  | 5,848 |  |  |  | 2,230 |  |  |  | 6,616 |  |  |  | 215 |
Consumer real estate – mortgage |  |  | 1,353 |  |  |  | 1,353 |  |  |  | 576 |  |  |  | 2,606 |  |  |  | 61 |
Construction and land development |  |  | 706 |  |  |  | 706 |  |  |  | 460 |  |  |  | 642 |  |  |  | 49 |
Commercial and industrial |  |  | 1,049 |  |  |  | 1,049 |  |  |  | 780 |  |  |  | 700 |  |  |  | 132 |
Consumer and other |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  |  | 8,915 |  |  |  | 8,956 |  |  |  | 4,046 |  |  |  | 10,564 |  |  |  | 457 |
Total impaired loans |  | $ | 15,189 |  |  | $ | 15,355 |  |  | $ | 4,046 |  |  | $ | 19,126 |  |  | $ | 763 |
|  |  |  |  |  |  |  |  |  |  | For the Year Ended |
|  | At December 31, 2011 |  |  | December 31, 2011 |
|  |  |  |  | Unpaid |  |  |  |  |  | Average |  |  | Interest |
|  | Recorded |  |  | Principal |  |  | Related |  |  | Recorded |  |  | Income |
|  | Investment |  |  | Balance |  |  | Allowance |  |  | Investment |  |  | Recognized |
Impaired loans without a valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate – mortgage |  | $ | 4,354 |  |  | $ | 4,354 |  |  | $ | - |  |  | $ | 5,378 |  |  | $ | 330 |
Consumer real estate – mortgage |  |  | 322 |  |  |  | 322 |  |  |  | - |  |  |  | 3,589 |  |  |  | 21 |
Construction and land development |  |  | 829 |  |  |  | 1,023 |  |  |  | - |  |  |  | 1,099 |  |  |  | 59 |
Commercial and industrial |  |  | 2,691 |  |  |  | 2,691 |  |  |  | - |  |  |  | 1,207 |  |  |  | 165 |
Consumer and other |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  |  | 8,196 |  |  |  | 8,390 |  |  |  | - |  |  |  | 11,273 |  |  |  | 575 |
Impaired loans with a valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate – mortgage |  |  | 9,639 |  |  |  | 9,694 |  |  |  | 2,605 |  |  |  | 5,912 |  |  |  | 645 |
Consumer real estate – mortgage |  |  | 6,195 |  |  |  | 6,257 |  |  |  | 1,254 |  |  |  | 5,333 |  |  |  | 294 |
Construction and land development |  |  | 879 |  |  |  | 879 |  |  |  | 653 |  |  |  | 294 |  |  |  | 62 |
Commercial and industrial |  |  | 508 |  |  |  | 508 |  |  |  | 464 |  |  |  | 784 |  |  |  | 65 |
Consumer and other |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  |  | 17,221 |  |  |  | 17,338 |  |  |  | 4,976 |  |  |  | 12,323 |  |  |  | 1,066 |
Total impaired loans |  | $ | 25,417 |  |  | $ | 25,728 |  |  | $ | 4,976 |  |  | $ | 23,596 |  |  | $ | 1,641 |
The following tables present an aged analysis of past due loans as of December 31, 2013 and 2012 (in thousands): As of December 31, 2013:
|  | 30-89 Days |  |  | Past Due 90 |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Past Due and |  |  | Days or More |  |  |  |  |  | Total |  |  | Current |  |  | Total |
|  | Accruing |  |  | and Accruing |  |  | Nonaccrual |  |  | Past Due |  |  | Loans |  |  | Loans |
Commercial real estate-mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  | $ | 678 |  |  | $ | - |  |  | $ | 838 |  |  | $ | 1,516 |  |  | $ | 64,231 |  |  | $ | 65,747 |
All other |  |  | 867 |  |  |  | - |  |  |  | 44 |  |  |  | 911 |  |  |  | 63,141 |  |  |  | 64,052 |
Consumer real estate-mortgage |  |  | 419 |  |  |  | - |  |  |  | 1,006 |  |  |  | 1,425 |  |  |  | 74,890 |  |  |  | 76,315 |
Construction and land development |  |  | 50 |  |  |  | - |  |  |  | 47 |  |  |  | 97 |  |  |  | 41,500 |  |  |  | 41,597 |
Commercial and industrial |  |  | 201 |  |  |  | - |  |  |  | 1,631 |  |  |  | 1,832 |  |  |  | 37,167 |  |  |  | 38,999 |
Consumer and other |  |  | 35 |  |  |  | - |  |  |  | - |  |  |  | 35 |  |  |  | 2,695 |  |  |  | 2,730 |
Total |  | $ | 2,250 |  |  | $ | - |  |  | $ | 3,566 |  |  | $ | 5,816 |  |  | $ | 283,624 |  |  | $ | 289,440 |
As of December 31, 2012:
|  | 30-89 Days |  |  | Past Due 90 |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Past Due and |  |  | Days or More |  |  |  |  |  | Total |  |  | Current |  |  | Total |
|  | Accruing |  |  | and Accruing |  |  | Nonaccrual |  |  | Past Due |  |  | Loans |  |  | Loans |
Commercial real estate-mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner-occupied |  | $ | 2,738 |  |  | $ | - |  |  | $ | 956 |  |  | $ | 3,694 |  |  | $ | 54,731 |  |  | $ | 58,425 |
All other |  |  | 636 |  |  |  | - |  |  |  | 1,913 |  |  |  | 2,549 |  |  |  | 64,198 |  |  |  | 66,747 |
Consumer real estate-mortgage |  |  | 1,858 |  |  |  | - |  |  |  | 616 |  |  |  | 2,474 |  |  |  | 68,721 |  |  |  | 71,195 |
Construction and land development |  |  | 100 |  |  |  | - |  |  |  | 53 |  |  |  | 153 |  |  |  | 38,404 |  |  |  | 38,557 |
Commercial and industrial |  |  | 1,227 |  |  |  | - |  |  |  | 2,467 |  |  |  | 3,694 |  |  |  | 36,446 |  |  |  | 40,140 |
Consumer and other |  |  | 35 |  |  |  | - |  |  |  | - |  |  |  | 35 |  |  |  | 1,892 |  |  |  | 1,927 |
Total |  | $ | 6,594 |  |  | $ | - |  |  | $ | 6,005 |  |  | $ | 12,599 |  |  | $ | 264,392 |  |  | $ | 276,991 |
Impaired loans also include loans that the Bank has elected to formally restructure when, due to the weakening credit status of a borrower, the restructuring may facilitate a repayment plan that seeks to minimize the potential losses that the Bank may have to otherwise incur. At December 31, 2013 and 2012, the Bank has loans of approximately $5,753,000 and $9,403,000, respectively, that were modified in troubled debt restructurings. Troubled commercial loans are restructured by specialists within our Special Asset department and all restructurings are approved by committees and credit officers separate and apart from the normal loan approval process. These specialists are trained to reduce the Bank’s overall risk and exposure to loss in the event of a restructuring through obtaining either or all of the following: improved documentation, additional guaranties, increase in curtailments, reduction in collateral terms, additional collateral, or other similar strategies. The following tables present a summary of loans that were modified as troubled debt restructurings during the years ended December 31, 2013, 2012, and 2011 (amounts in thousands): During the year ended December 31, 2013:
|  |  |  |  | Pre-Modification |  |  | Post-Modification |
|  |  | Number of |  |  | Outstanding Recorded |  |  | Outstanding Recorded |
|  |  | Contracts |  |  | Investment |  |  | Investment |
Commercial real estate-mortgage |  |  | 2 |  |  | $ | 2,073 |  |  | $ | 2,073 |
Consumer real estate-mortgage |  |  | 2 |  |  |  | 239 |  |  |  | 239 |
Construction and land development |  |  | 3 |  |  |  | 728 |  |  |  | 728 |
Commercial and industrial |  |  | 3 |  |  |  | 2,389 |  |  |  | 2,389 |
During the year ended December 31, 2012:
|  |  |  |  | Pre-Modification |  |  | Post-Modification |
|  |  | Number of |  |  | Outstanding Recorded |  |  | Outstanding Recorded |
|  |  | Contracts |  |  | Investment |  |  | Investment |
Commercial real estate-mortgage |  |  | 5 |  |  | $ | 5,971 |  |  | $ | 5,971 |
Consumer real estate-mortgage |  |  | 1 |  |  |  | 65 |  |  |  | 65 |
Construction and land development |  |  | 3 |  |  |  | 1,178 |  |  |  | 1,178 |
Commercial and industrial |  |  | 5 |  |  |  | 2,432 |  |  |  | 2,432 |
During the year ended December 31, 2011:
|  |  |  |  | Pre-Modification |  |  | Post-Modification |
|  |  | Number of |  |  | Outstanding Recorded |  |  | Outstanding Recorded |
|  |  | Contracts |  |  | Investment |  |  | Investment |
Consumer real estate-mortgage |  |  | 5 |  |  | $ | 3,573 |  |  | $ | 3,573 |
Construction and land development |  |  | 2 |  |  |  | 778 |  |  |  | 778 |
Commercial and industrial |  |  | 1 |  |  |  | 20 |  |  |  | 20 |
The Bank did not have any loans modified as troubled debt restructurings over the last twelve months that subsequently defaulted during the years ended December 31, 2013 and 2012. The following table presents those loans modified as a troubled debt restructuring over the last twelve months that subsequently defaulted during the year ended December 31, 2011 (amounts in thousands): Consumer real estate-mortgage
|  |  | Number of |  |  | Recorded |
|  |  | Contracts |  |  | Investment |
|  |  | 2 |  |  | $ | 90 |
In the ordinary course of business, the Bank has granted loans to principal officers and directors and their affiliates. Annual activity of these related party loans were as follows:
|  | 2013 |  |  | 2012 |
Beginning balance |  | $ | 1,833,982 |  |  | $ | 1,514,908 |
New loans |  |  | 50,384 |  |  |  | 436,051 |
Repayments |  |  | (504,196 | ) |  |  | (116,977 | )
Ending balance |  | $ | 1,380,170 |  |  | $ | 1,833,982 |

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