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Loans by Type
 3 Months Ended
Mar. 31, 2013
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:

March 31, December 31,
(In thousands)        2013        2012
Commercial and industrial $         179,021 $         160,862
Real estate
       Commercial:
                     Mortgage 125,204   134,843
                     Construction 6,836 7,025
       Church, church-related:    
                     Mortgage 350,674 368,118
                     Construction 17,994 16,450
Other 161   435
              Total loans $ 679,890 $ 687,733
 

The following table presents the aging of loans by loan categories at March 31, 2013 and December 31, 2012:

Performing Nonperforming
90 Days
30-59 60-89 and Non- Total
(In thousands)       Current       Days       Days       Over       accrual       Loans
March 31, 2013
Commercial and industrial $        178,885 $        — $        — $        — $        136 $        179,021
Real estate
       Commercial:
              Mortgage 124,600 — — — 604 125,204
              Construction 6,836 — — — — 6,836
       Church, church-related:
              Mortgage   349,355 1,151 — — 168 350,674
              Construction 17,994 —   — —   — 17,994
Other 161   — —   — —   161
Total $ 677,831 $ 1,151 $ — $ — $ 908 $ 679,890
December 31, 2012  
Commercial and industrial $ 159,423   $ — $ — $ — $ 1,439 $ 160,862
Real estate  
       Commercial:  
              Mortgage 129,884 — — — 4,959 134,843
              Construction 7,025 — — — — 7,025
       Church, church-related:
              Mortgage 367,944 — — — 174 368,118
              Construction 16,450 — — — — 16,450
Other 435 — — — — 435
Total $ 681,161 $ — $ — $ — $ 6,572 $ 687,733

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of March 31, 2013 and December 31, 2012:
Loans Performing Nonperforming
Subject to Loans Subject to Loans Subject to
Normal Special Special Total
(In thousands)        Monitoring1        Monitoring2        Monitoring2 Loans
March 31, 2013       
Commercial and industrial $     175,369 $     3,516 $     136 $     179,021
Real estate  
       Commercial:
              Mortgage 116,618 7,982 604 125,204
              Construction 6,836 — — 6,836
       Church, church-related:
              Mortgage 347,173 3,333 168 350,674
              Construction 17,994 — — 17,994
Other   161 — — 161
Total $ 664,151 $ 14,831 $ 908 $ 679,890
December 31, 2012  
Commercial and industrial $ 155,838 $ 3,585 $ 1,439 $ 160,862
Real estate  
       Commercial:      
              Mortgage 123,315 6,569 4,959  3 134,843
              Construction   7,025 — —     7,025
       Church, church-related:
              Mortgage 366,366 1,578 174 368,118
              Construction 16,450 — — 16,450
Other 435 — — 435
Total $ 669,429 $ 11,732 $ 6,572 $ 687,733
____________________

1Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation.
2Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.
3In February 2013, a payment of $4,115,000 was received for one nonaccrual loan with a balance of $4,198,000. $83,000 was charged off.

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 March 31, 2013 and December 31, 2012, 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 3. Loans delinquent 90 days or more and still accruing interest at March 31, 2013 and December 31, 2012 were $0. Loans classified as troubled debt restructuring were $0 at March 31, 2013 and December 31, 2012.

There are two foreclosed loans with an aggregate book value of $1,322,000 which have been recorded as other real estate owned (included in other assets) as of March 31, 2013 and there were two foreclosed loans with an aggregate book value of $1,322,000 as of December 31, 2012.

The following table presents the recorded investment and unpaid principal balance for impaired loans at March 31, 2013 and December 31, 2012:

Unpaid Related
      Recorded       Principal Allowance for
(In thousands) Investment Balance Loan Losses
March 31, 2013      
Commercial and industrial:
              Nonaccrual $     136 $     136 $     68
              Troubled debt restructurings still accruing — — —
Real estate
       Commercial – Mortgage:
              Nonaccrual 604 604 144
              Past due 90 days or more and still accruing — — —
              Troubled debt restructurings still accruing — — —
       Church – Mortgage:
              Nonaccrual 168 168 84
Total impaired loans $ 908 $ 908 $ 296
December 31, 2012
Commercial and industrial:
              Nonaccrual $ 1,439 $ 1,439 $ 657
              Troubled debt restructurings still accruing — — —
Real estate
       Commercial – Mortgage:
              Nonaccrual 4,959  * 4,959  * 660
              Past due 90 days or more and still accruing — — —
              Troubled debt restructurings still accruing — — —
       Church – Mortgage:
              Nonaccrual 174 174 87
Total impaired loans $ 6,572 $ 6,572 $ 1,404
____________________ 

*In February 2013, a payment of $4,115,000 was received for one nonaccrual loan with a balance of $4,198,000. $83,000 was charged off.

A summary of the activity in the allowance for loan losses from December 31, 2012 to March 31, 2013 is as follows:

December 31, Charge- March 31,
(In thousands)       2012       Offs       Recoveries       Provision       2012
Commercial and industrial $     3,192 $     1,296 $     2 $     724 $     2,622
Real estate
       Commercial:
              Mortgage 3,784 233 — (379 ) 3,172
              Construction 137 — — (3 ) 134
       Church, church-related:
              Mortgage 4,903 — 2 (124 ) 4,781
              Construction 333 — — (12 ) 321
Other 8 — — (6 ) 2
Total $ 12,357 $ 1,529 $ 4 $ 200 $ 11,032