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Loans by Type
 6 Months Ended
Jun. 30, 2012
Loans By Type Disclosure [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 6 – Loans by Type

A summary of loan categories is as follows:

      June 30,       December 31,
(In thousands) 2012 2011
Commercial and industrial $      168,691 $      136,916
Real estate
       Commercial:
              Mortgage 141,640 140,848
              Construction 9,608 9,067
       Church, church-related:
              Mortgage 341,830 347,726
              Construction 31,505 36,497
Other 138 511
       Total loans $ 693,412 $ 671,565

The following table presents the aging of loans by loan categories at June 30, 2012 and December 31, 2011:

Performing Nonperforming
90 Days
30-59 60-89 and Non Total
(In thousands) Current Days Days Over Accrual Loans
June 30, 2012                                    
Commercial and industrial $      168,644 $      — $      — $      — $      47 $      168,691
Real estate
       Commercial:
              Mortgage 135,955 — — — 5,685 141,640
              Construction 9,608 — — — — 9,608
       Church, church-related:
              Mortgage 341,623 — — — 207 341,830
              Construction 31,505 — — — — 31,505
Other 138 — — — — 138
Total $ 687,473 $ — $ — $ — $ 5,939 $ 693,412
December 31, 2011
Commercial and industrial $ 136,850 $ — $ 10 $ — $ 56 $ 136,916
Real estate
       Commercial:
              Mortgage 139,249 137 — 29 1,433 140,848
              Construction 9,067 — — — — 9,067
       Church, church-related:
              Mortgage 347,506 — — — 220 347,726
              Construction 36,497 — — — — 36,497
Other 511 — — — — 511
Total $ 669,680 $ 137 $ 10 $ 29 $ 1,709 $ 671,565
 

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of June 30, 2012 and December 31, 2011:

Loans Performing Nonperforming
      Subject to       Loans Subject to       Loans Subject to
Normal Special Special        Total
(In thousands) Monitoring1 Monitoring2 Monitoring2 Loans
June 30, 2012
Commercial and industrial $       164,509 $       4,135 $       47 $       168,691
Real estate
       Commercial:
              Mortgage 128,776 7,179 5,685 141,640
              Construction 9,608 — — 9,608
       Church, church-related:
              Mortgage 339,806 1,817 207 341,830
              Construction 31,505 — — 31,505
Other 138 — — 138
Total $ 674,342 $ 13,131 $ 5,939 $ 693,412
December 31, 2011
Commercial and industrial $ 132,475 $ 4,385 $ 56 $ 136,916
Real estate  
       Commercial:
              Mortgage 125,850 13,536 1,462 140,848
              Construction 9,067 — — 9,067
       Church, church-related:
              Mortgage 336,727 10,779 220 347,726
              Construction 36,497 — — 36,497
Other 511 — — 511
Total $ 641,127 $ 28,700 $ 1,738 $ 671,565
 
1 Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation.
2 Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.

 

Impaired loans consist primarily of nonaccrual loans, loans greater than 90 days past due and still accruing interest and troubled debt restructurings, both performing and nonperforming. Troubled debt restructuring involves the granting of a concession to a borrower experiencing financial difficulty resulting in the modification of terms of the loan, such as changes in payment schedule or interest rate. Management measures impairment in accordance with FASB ASC 310, “Allowance for Credit Losses.” At June 30, 2012 and December 31, 2011, all impaired loans were evaluated based on the fair value of the collateral. The fair value of the collateral is based upon an observable market price or current appraised value and therefore, the Company classifies these assets as nonrecurring Level 2. Loans delinquent 90 days or more and still accruing interest at June 30, 2012 and December 31, 2011 were $0 and $29,000, respectively. Loans classified as troubled debt restructuring were $0 and $4,479,000 at June 30, 2012 and December 31, 2011, respectively. There are two foreclosed loans with a book value of $1,689,000 which have been recorded as other real estate owned (included in other assets) as of June 30, 2012 and December 31, 2011.

The following table presents the recorded investment and unpaid principal balance for impaired loans at June 30, 2012 and December 31, 2011:

            Unpaid       Related
Recorded Principal Allowance for
(In thousands) Investment Balance Loan Losses
June 30, 2012
Commercial and industrial:
       Nonaccrual $      47 $      47 $      24
       Troubled debt restructurings still accruing — — —
Real estate  
       Commercial – Mortgage:  
              Nonaccrual 5,685 5,685 728
              Past due 90 days or more and still accruing — — —
              Troubled debt restructurings still accruing — — —
       Church – Mortgage:
              Nonaccrual 207 207 115
Total impaired loans $ 5,939 $ 5,939 $ 867
December 31, 2011
Commercial and industrial:
              Nonaccrual $ 56 $ 56 $ 28
              Troubled debt restructurings still accruing 83 83 8
Real estate
       Commercial – Mortgage:
              Nonaccrual 1,433 1,433 149
              Past due 90 days or more and still accruing 29 29 —
              Troubled debt restructurings still accruing 4,396 4,396 766
       Church – Mortgage:
              Nonaccrual 220 220 115
Total impaired loans $ 6,217 $ 6,217 $ 1,066
 
A summary of the activity in the allowance for loan losses from December 31, 2011 to June 30, 2012 is as follows:
 
December 31, Charge-
(In thousands)       2011       Offs       Recoveries       Provision       June 30, 2012
Commercial and industrial $      2,594 $      — $      107 $      17 $      2,718
Real estate
       Commercial:
              Mortgage 4,776 1,238 — 990 4,528
              Construction 167 — — 5 172
       Church, church-related:    
              Mortgage 4,797     (111 ) 4,686
              Construction 616 — — (99 ) 517
Other 4 — — (2 ) 2
Total $ 12,954 $ 1,238 $ 107 $ 800 $ 12,623