XML 55 R12.htm IDEA: XBRL DOCUMENT

Allowance for Loan Losses

9 Months Ended

Sep. 30, 2012

Allowance for Loan Losses [Abstract]

Note 4. Allowance for Loan Losses

Transactions in the allowance for loan losses for the nine months ended September 30, 2012 and 2011 and for the year ended December 31, 2011 were as follows:


	(in thousands)
	September 30, 2012			December 31, 2011			September 30, 2011
Balance at beginning of year	$	12,937		$	16,036		$	16,036
Provision charged to operating expense		3,455			12,380			9,395
Loan recoveries		240			310			208
Loan charge-offs		(2,583	)		(15,789	)		(7,137	)

Balance at end of period	$	14,049		$	12,937		$	18,502

The following tables present, as of September 30, 2012 and December 31, 2011, the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology.


	September 30, 2012
	(in thousands)
	Construction and Land Development			Secured by 1-4 Family Residential			Other Real Estate			Commercial and Industrial			Consumer and Other Loans			Total
Allowance for loan losses:
Beginning Balance, December 31, 2011	$	2,843		$	3,766		$	5,192		$	963		$	173		$	12,937
Charge-offs		(369	)		(761	)		(1,042	)		(261	)		(150	)		(2,583	)
Recoveries		1			2			58			24			155			240
Provision for loan losses		1,059			992			1,531			(75	)		(52	)		3,455

Ending Balance, September 30, 2012	$	3,534		$	3,999		$	5,739		$	651		$	126		$	14,049

Ending Balance:
Individually evaluated for impairment		1,728			709			762			40			—			3,239
Collectively evaluated for impairment		1,806			3,290			4,977			611			126			10,810

Loans:
Ending Balance		44,725			128,354			175,122			24,216			8,335			380,752

Individually evaluated for impairment		6,353			4,758			8,597			164			—			19,872
Collectively evaluated for impairment		38,372			123,596			166,525			24,052			8,335			360,880

	December 31, 2011
	(in thousands)
	Construction and Land Development			Secured by 1-4 Family Residential			Other Real Estate			Commercial and Industrial			Consumer and Other Loans			Total
Allowance for loan losses:
Beginning Balance, December 31, 2010	$	4,050		$	1,681		$	9,187		$	858		$	260		$	16,036
Charge-offs		(2,983	)		(4,639	)		(7,551	)		(348	)		(268	)		(15,789	)
Recoveries		50			6			—			3			251			310
Provision for loan losses		1,726			6,718			3,556			450			(70	)		12,380

Ending Balance, December 31, 2011	$	2,843		$	3,766		$	5,192		$	963		$	173		$	12,937

Ending Balance:
Individually evaluated for impairment		930			848			351			309			—			2,438
Collectively evaluated for impairment		1,913			2,918			4,841			654			173			10,499

Loans:
Ending Balance		48,363			122,339			181,141			29,446			11,151			392,440

Individually evaluated for impairment		7,640			6,860			10,940			480			—			25,920
Collectively evaluated for impairment		40,723			115,479			170,201			28,966			11,151			366,520

Impaired loans and the related allowance at September 30, 2012 and December 31, 2011, were as follows:


	September 30, 2012
	(in thousands)
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Real estate loans:
Construction and land development	$	6,683	$	596	$	5,758	$	6,353	$	1,728	$	5,516	$	238
Secured by 1-4 family		5,801		1,955		2,803		4,758		709		5,244		143
Other real estate loans		12,673		5,569		3,027		8,597		762		10,155		88
Commercial and industrial		165		—		164		164		40		386		6
Consumer and other loans		—		—		—		—		—		—		—

Total	$	25,322	$	8,120	$	11,752	$	19,872	$	3,239	$	21,302	$	475


	December 31, 2011
	(in thousands)
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Real estate loans:
Construction and land development	$	8,106	$	3,531	$	4,109	$	7,640	$	930	$	7,077	$	367
Secured by 1-4 family		8,566		3,495		3,365		6,860		848		6,519		301
Other real estate loans		15,165		8,135		2,805		10,940		351		23,918		396
Commercial and industrial		480		—		480		480		309		660		27
Consumer and other loans		—		—		—		—		—		—		—

Total	$	32,317	$	15,161	$	10,758	$	25,920	$	2,438	$	38,174	$	1,091

The “Recorded Investment” amounts in the table above represent the outstanding principal balance on each loan represented in the table. The “Unpaid Principal Balance” represents the outstanding principal balance on each loan represented in the table plus any amounts that have been charged off on each loan and/or payments that have been applied towards principal on non-accrual loans.

As of September 30, 2012, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled $5.4 million. At September 30, 2012, $1.6 million of the loans classified as TDRs were performing under the restructured terms and were not considered non-performing assets. There were $11.4 million in TDRs at December 31, 2011. The following tables provide further information regarding loans modified under TDRs during the three and nine month periods ended September 30, 2012 and 2011:


	For the three months ended September 30, 2012						For the three months ended September 30, 2011
	(dollars in thousands)						(dollars in thousands)
	Number of Contracts		Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment		Number of Contracts		Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment
Real estate loans:
Construction		—	$	—	$	—		1	$	701	$	357
Secured by 1-4 family		1		183		183		—		—		—
Other real estate loans		—		—		—		—		—		—
Commercial and industrial		—		—		—		—		—		—
Consumer and other loans		—		—		—		—		—		—

Total		1	$	183	$	183		1	$	701	$	357


	For the nine months ended September 30, 2012						For the nine months ended September 30, 2011
	(dollars in thousands)						(dollars in thousands)
	Number of Contracts		Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment		Number of Contracts		Pre- modification outstanding recorded investment		Post- modification outstanding recorded investment
Real estate loans:
Construction		—	$	—	$	—		1	$	701	$	357
Secured by 1-4 family		1		183		183		2		575		575
Other real estate loans		1		2,426		2,426		12		11,724		11,750
Commercial and industrial		—		—		—		—		—		—
Consumer and other loans		—		—		—		—		—		—

Total		2	$	2,609	$	2,609		15	$	13,000	$	12,682

For the three and nine months ended September 30, 2012 and 2011, there were no troubled debt restructurings that subsequently defaulted within twelve months of the loan modification. Management defines default as over ninety days past due during the twelve month period subsequent to the modification.