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Loans
 12 Months Ended
Dec. 31, 2012
Loans [Abstract]  
Loans

Note 3. Loans

Loans at December 31, 2012 and 2011 are summarized as follows:

 

                 
    (in thousands)  
    2012     2011  

Real estate loans:

                

Construction and land development

   $ 43,524     $ 48,363  

Secured by 1-4 family residential

     134,964       122,339  

Other real estate loans

     174,220       181,141  

Commercial and industrial

     23,071       29,446  

Consumer and other loans

     7,815       11,151  
   

 

 

    

 

 

  

Total loans

   $ 383,594     $ 392,440  

Allowance for loan losses

     13,075       12,937  
   

 

 

    

 

 

  

Loans, net

   $ 370,519     $ 379,503  
   

 

 

    

 

 

  

Consumer and other loans included $153 thousand and $325 thousand of demand deposit overdrafts at December 31, 2012 and 2011, respectively.

The following tables provide a summary of loan classes and an aging of past due loans as of December 31, 2012 and 2011:

 

                                                                 
    December 31, 2012  
    (in thousands)  
    30-59
Days Past
Due		     60-89
Days
Past
Due		     > 90
Days
Past Due		     Total
Past
Due		     Current     Total
Loans		     Non-
Accrual
Loans		     90 Days
or More
Past Due
and
Accruing		  

Real estate loans:

                                                                

Construction and land development

   $ 77     $ 701     $ 89     $ 867     $ 42,657     $ 43,524     $ 646     $ —    

1-4 family residential

     2,741       —         476       3,217       131,747       134,964       968       129  

Other real estate loans

     1,347       686       1,476       3,509       170,711       174,220       6,752       —    

Commercial and industrial

     428       408       99       935       22,136       23,071       14       99  

Consumer and other loans

     43       5       8       56       7,759       7,815       13       —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 4,636     $ 1,800     $ 2,148     $ 8,584     $ 375,010     $ 383,594     $ 8,393     $ 228  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   
    December 31, 2011  
    (in thousands)  
    30-59
Days Past
Due		     60-89
Days
Past
Due		     > 90
Days
Past Due		     Total
Past
Due		     Current     Total
Loans		     Non-
Accrual
Loans		     90 Days
or More
Past Due
and
Accruing		  

Real estate loans:

                                                                

Construction and land development

   $ 2,267     $ 1,029     $ 235     $ 3,531     $ 44,832     $ 48,363     $ 235     $ —    

1-4 family residential

     4,179       471       688       5,338       117,001       122,339       3,043       98  

Other real estate loans

     3,863       562       722       5,147       175,994       181,141       8,367       361  

Commercial and industrial

     950       93       5       1,048       28,398       29,446       163       —    

Consumer and other loans

     94       19       14       127       11,024       11,151       33       —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 11,353     $ 2,174     $ 1,664     $ 15,191     $ 377,249     $ 392,440     $ 11,841     $ 459  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

Credit Quality Indicators

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grading of specified classes of loans. The Company utilizes a risk grading matrix to assign a rating to each of its loans. The loan ratings are summarized into the following categories: pass, special mention, substandard, doubtful and loss. Pass rated loans include all risk rated credits other than those included in special mention, substandard or doubtful. Loans classified as loss are charged-off. Loan officers assign risk grades to loans at origination and as renewals arise. The Bank’s Credit Administration department reviews risk grades for accuracy on a quarterly basis and as credit issues arise. In addition, a certain amount of loans are reviewed each year through the Company’s internal and external loan review process. A description of the general characteristics of the loan grading categories is as follows:

Pass – Loans classified as pass exhibit acceptable operating trends, balance sheet trends, and liquidity. Sufficient cash flow exists to service the loan. All obligations have been paid by the borrower in an as agreed manner.

Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Bank’s credit position at some future date.

Substandard – Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful – Loans classified as doubtful have all the weakness inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The Company considers all doubtful loans to be impaired and places the loan on non-accrual status.

Loss – Loans classified as loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted.

The following tables provide an analysis of the credit risk profile of each loan class as of December 31, 2012 and 2011:

 

                                         
    December 31, 2012
(in thousands)		  
    Pass     Special
Mention		     Substandard     Doubtful     Total  

Real estate loans:

                                        

Construction and land development

   $ 22,384     $ 5,176     $ 15,964     $ —       $ 43,524  

Secured by 1-4 family residential

     120,692       6,055       8,217       —         134,964  

Other real estate loans

     134,701       14,513       25,006       —         174,220  

Commercial and industrial

     18,831       798       3,442       —         23,071  

Consumer and other loans

     7,743       72       —         —         7,815  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 304,351     $ 26,614     $ 52,629     $ —       $ 383,594  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   
    December 31, 2011
(in thousands)		  
    Pass     Special
Mention		     Substandard     Doubtful     Total  

Real estate loans:

                                        

Construction and land development

   $ 23,172     $ 7,504     $ 17,452     $ 235     $ 48,363  

Secured by 1-4 family residential

     108,240       5,645       8,266       188       122,339  

Other real estate loans

     138,255       17,123       22,348       3,415       181,141  

Commercial and industrial

     23,451       949       4,976       70       29,446  

Consumer and other loans

     11,058       79       —         14       11,151  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 304,176     $ 31,300     $ 53,042     $ 3,922     $ 392,440