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Loans Receivable | 6 Months Ended
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Jun. 30, 2013
Receivables [Abstract] |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] |
Note 4 - Loans Receivable Year end loans are summarized below:
|  | (Dollars in thousands) |
|  | June 30, 2013 |  | December 31, 2012 |
Loans secured by real estate: |  |  |  |  |  |  |
Construction and land development |  | $ | 15,808 |  | $ | 23,984 |
Residential, including home equity |  |  | 159,454 |  |  | 154,945 |
Commercial real estate and other dwelling |  |  | 183,641 |  |  | 179,825 |
Total loans secured by real estate |  |  | 358,903 |  |  | 358,754 |
Consumer loans |  |  | 271 |  |  | 350 |
Commercial business |  |  | 61,626 |  |  | 69,310 |
Government and other |  |  | 13,670 |  |  | 8,869 |
Subtotal |  |  | 434,470 |  |  | 437,283 |
Less: |  |  |  |  |  |  |
Net deferred loan origination fees |  |  | (234) |  |  | (251) |
Undisbursed loan funds |  |  | (96) |  |  | (51) |
Loans receivable |  | $ | 434,140 |  | $ | 436,981 |
(Dollars in thousands) |  | Residential Real Estate, Including Home Equity |  | Consumer Loans |  | Commercial Real Estate, Construction & Land Development, and Other Dwellings |  | Commercial Participations Purchased |  | Commercial Business Loans |  | Government Loans |  | Total |
The Bancorp's activity in the allowance for loan losses is summarized below for the six months ended June 30, 2013: |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 1,024 |  | $ | 19 |  | $ | 4,550 |  | $ | 1,608 |  | $ | 1,220 |  | $ | - |  | $ | 8,421 |
Charge-offs |  |  | (117) |  |  | (6) |  |  | (333) |  |  | - |  |  | (438) |  |  | - |  |  | (894) |
Recoveries |  |  | 1 |  |  | 3 |  |  | - |  |  | - |  |  | 3 |  |  | - |  |  | 7 |
Provisions |  |  | 542 |  |  | (1) |  |  | 122 |  |  | (757) |  |  | 297 |  |  | 27 |  |  | 230 |
Ending Balance |  | $ | 1,450 |  | $ | 15 |  | $ | 4,339 |  | $ | 851 |  | $ | 1,082 |  | $ | 27 |  | $ | 7,764 |
The Bancorp's activity in the allowance for loan losses is summarized below for the six months ended June 30, 2012: |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 1,161 |  | $ | 15 |  | $ | 3,329 |  | $ | 2,399 |  | $ | 1,101 |  | $ | - |  | $ | 8,005 |
Charge-offs |  |  | (205) |  |  | (9) |  |  | (381) |  |  | (484) |  |  | - |  |  | - |  |  | (1,079) |
Recoveries |  |  | - |  |  | 4 |  |  | 9 |  |  | - |  |  | 30 |  |  | - |  |  | 43 |
Provisions |  |  | 210 |  |  | 22 |  |  | 978 |  |  | 121 |  |  | (256) |  |  | - |  |  | 1,075 |
Ending Balance |  | $ | 1,166 |  | $ | 32 |  | $ | 3,935 |  | $ | 2,036 |  | $ | 875 |  | $ | - |  | $ | 8,044 |
The Bancorp's allowance for loan losses impairment evaluation and financing receivables are summarized below at June 30, 2013: |  |  |  |  |  |  |
Ending balance: individually evaluated for impairment |  | $ | 22 |  | $ | - |  | $ | 1,437 |  | $ | - |  | $ | - |  | $ | - |  | $ | 1,459 |
Ending balance: collectively evaluated for impairment |  | $ | 1,428 |  | $ | 15 |  | $ | 2,902 |  | $ | 851 |  | $ | 1,082 |  | $ | 27 |  | $ | 6,305 |
FINANCING RECEIVABLES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 159,171 |  | $ | 267 |  | $ | 183,319 |  | $ | 16,130 |  | $ | 61,583 |  | $ | 13,670 |  | $ | 434,140 |
Ending balance: individually evaluated for impairment |  | $ | 1,154 |  | $ | - |  | $ | 10,301 |  | $ | 5,235 |  | $ | 1,299 |  | $ | - |  | $ | 17,989 |
Ending balance: collectively evaluated for impairment |  | $ | 158,017 |  | $ | 267 |  | $ | 173,018 |  | $ | 10,895 |  | $ | 60,284 |  | $ | 13,670 |  | $ | 416,151 |
The Bancorp's allowance for loan losses impairment evaluation and financing receivables are summarized below at December 31, 2012: |  |  |  |  |  |  |
Ending balance: individually evaluated for impairment |  | $ | 9 |  | $ | - |  | $ | 1,783 |  | $ | - |  | $ | 209 |  | $ | - |  | $ | 2,001 |
Ending balance: collectively evaluated for impairment |  | $ | 1,015 |  | $ | 19 |  | $ | 2,767 |  | $ | 1,608 |  | $ | 1,011 |  | $ | - |  | $ | 6,420 |
FINANCING RECEIVABLES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  | $ | 154,627 |  | $ | 347 |  | $ | 175,769 |  | $ | 28,040 |  | $ | 69,329 |  | $ | 8,869 |  | $ | 436,981 |
Ending balance: individually evaluated for impairment |  | $ | 692 |  | $ | - |  | $ | 10,778 |  | $ | 6,378 |  | $ | 2,032 |  | $ | - |  | $ | 19,880 |
Ending balance: collectively evaluated for impairment |  | $ | 153,935 |  | $ | 347 |  | $ | 164,991 |  | $ | 21,662 |  | $ | 67,297 |  | $ | 8,869 |  | $ | 417,101 |
The Bancorp's credit quality indicators, are summarized below at June 3 0, 2013 and December 31, 2012:
|  | (Dollars in thousands) |
|  | Corporate Credit Exposure - Credit Risk Portfolio By Creditworthiness Category |
|  | Commercial Real Estate, Construction & Land Development, and Other Dwellings |  | Commercial Participations Purchased |  | Commercial Business Loans |  | Government Loans |
Loan Grades |  | 2013 |  | 2012 |  | 2013 |  | 2012 |  | 2013 |  |  | 2012 |  | 2013 |  | 2012 |
2 Moderate risk |  | $ | 16 |  | $ | 19 |  | $ | - |  | $ | - |  | $ | 5,125 |  |  | $ | 5,674 |  | $ | - |  | $ | - |
3 Acceptable risk |  |  | 118,623 |  |  | 110,416 |  |  | 5,506 |  |  | 15,585 |  |  | 41,251 |  |  |  | 45,202 |  |  | 13,670 |  |  | 8,869 |
4 Pass/monitor |  |  | 51,156 |  |  | 51,100 |  |  | 4,570 |  |  | 1,029 |  |  | 12,764 |  |  |  | 13,500 |  |  | - |  |  | - |
5 Special mention (watch) |  |  | 3,218 |  |  | 3,630 |  |  | 1,732 |  |  | 5,984 |  |  | 1,101 |  |  |  | 3,300 |  |  | - |  |  | - |
6 Substandard |  |  | 10,306 |  |  | 10,604 |  |  | 4,322 |  |  | 5,442 |  |  | 1,342 |  |  |  | 1,653 |  |  | - |  |  | - |
7 Doubtful |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  |  | - |  |  | - |  |  | - |
Total |  | $ | 183,319 |  | $ | 175,769 |  | $ | 16,130 |  | $ | 28,040 |  | $ | 61,583 |  |  | $ | 69,329 |  | $ | 13,670 |  | $ | 8,869 |
|  | (Dollars in thousands) |
|  | Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity |
|  | Residential Real Estate, Including Home Equity |  | Consumer Loans |
|  | 2013 |  | 2012 |  | 2013 |  | 2012 |
Performing |  | $ | 156,066 |  | $ | 152,838 |  | $ | 267 |  | $ | 337 |
Non-performing |  |  | 3,105 |  |  | 1,789 |  |  | - |  |  | 10 |
Total |  | $ | 159,171 |  | $ | 154,627 |  | $ | 267 |  | $ | 347 |
The Bancorp has established a standard loan grading system to assist management, lenders and review personnel in their analysis and supervision of the loan portfolio. The use and application of theses grades by the Bancorp is uniform and conforms to regulatory definitions. The loan grading system is as follows: 2 – Moderate risk Borrower consistently internally generates sufficient cash flow to fund debt service, working assets, and some capital expenditures. Risk of default considered low. 3 – Acceptable risk Borrower generates sufficient cash flow to fund debt service, but most working asset and all capital expansion needs are provided from external sources. Profitability ratios and key balance sheet ratios are usually close to peers but one or more ratios (e.g. leverage) may be higher than peer. Earnings may be trending down over the last three years. Borrower may be able to obtain similar financing from other banks with comparable or less favorable terms. Risk of default is acceptable but requires collateral protection. 4 – Pass/monitor The borrower has significant weaknesses resulting from performance trends or management concerns. The financial condition of the company has taken a negative turn and may be temporarily strained. Cash flow may be weak but cash reserves remain adequate to meet debt service. Management weaknesses are evident. Borrowers in this category will warrant more than the normal level of supervision and more frequent reporting. 5 – Special mention (watch) Special mention credits are considered bankable assets with no apparent loss of principal or interest envisioned but requiring a high level of management attention. Assets in this category are currently protected but are potentially weak. These borrowers are subject to economic, industry, or management factors having an adverse impact upon their prospects for orderly service of debt. The perceived risk in continued lending is considered to have increased beyond the level where such loans would normally be granted. These assets constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of Substandard. 6 – Substandard This classification consists of loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. Financial statements normally reveal some or all of the following: poor trends, lack of earnings and cash flow, excessive debt, lack of liquidity, and the absence of creditor protection. Loans are still considered collectible, but due to increased risks and defined weaknesses of the credit, some loss could be incurred in collection if the deficiencies are not corrected. 7 – Doubtful This classification consists of loans where the possibility of loss is high after collateral liquidation based upon existing facts, market conditions, and value. Loss is deferred until certain important and reasonably specific pending factors which may strengthen the credit can be exactly determined. These factors may include proposed acquisitions, liquidation procedures, capital injection and receipt of additional collateral, mergers or refinancing plans. Performing loans are loans that are paying as agreed and are less than ninety days past due on payments of interest and principal. The Bancorp's troubled debt restructurings for the six month periods presented are summarized below:
|  | (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 |
|  | June 30, 2013 |  | June 30, 2012 |
Troubled debt restructurings during the period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate, including home equity |  |  | 4 |  | $ | 549 |  | $ | 533 |  |  | - |  | $ | - |  | $ | - |
Consumer loans |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Commercial real estate, construction & land development, and other dwellings |  |  | - |  |  | - |  |  | - |  |  | 2 |  |  | 893 |  |  | 893 |
Commercial participations purchased |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Commercial business loans |  |  | - |  |  | - |  |  | - |  |  | 1 |  |  | 108 |  |  | 11 |
Government loans |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
No troubled debt restructurings have subsequently defaulted during the periods presented. All of the loans classified as troubled debt restructurings are also considered impaired. The valuation basis for the Bancorp 's troubled debt restructurings is based on the present value of cash flows, unless consistent cash flows are not present, then the fair value of the collateral securing the loan is the basis for valuation. Troubled debt restructurings that subsequently defaulted during the period are loans that were restructured and, subsequent to restructuring, were moved to nonaccrual status and failed to comply with the guidelines of the restructured note. Troubled debt restructurings that subsequently defaulted are presented for comparison purposes and are relevant only to the period in which the subsequent default occurred. The Bancorp's individually evaluated impaired loans are summarized below:
|  | As of June 30, 2013 |  | For the six months ended June 30, 2013 |
(Dollars in thousands) |  | Recorded Investment |  | Unpaid Principal Balance |  | Related Allowance |  | Average Recorded Investment |  | Interest Income Recognized |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate, including home equity. |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |
Commercial real estate, construction & land development, and other dwellings |  |  | 610 |  |  | 610 |  |  | - |  |  | 791 |  |  | 15 |
Commercial participations purchased |  |  | 5,235 |  |  | 5,576 |  |  | - |  |  | 5,507 |  |  | 29 |
Commercial business loans |  |  | 1,298 |  |  | 2,009 |  |  | - |  |  | 1,037 |  |  | 4 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate, including home equity |  |  | 1,155 |  |  | 1,167 |  |  | 22 |  |  | 831 |  |  | 12 |
Commercial real estate, construction & land development, and other dwellings |  |  | 9,595 |  |  | 9,679 |  |  | 1,437 |  |  | 10,004 |  |  | 142 |
Commercial participations purchased |  |  | - |  |  | - |  |  | - |  |  | 189 |  |  | - |
Commercial business loans |  |  | 96 |  |  | 96 |  |  | - |  |  | 652 |  |  | 4 |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate, including home equity |  | $ | 1,155 |  | $ | 1,167 |  | $ | 22 |  | $ | 831 |  | $ | 12 |
Commercial real estate, construction & land development, and other dwellings |  | $ | 10,205 |  | $ | 10,289 |  | $ | 1,437 |  | $ | 10,795 |  | $ | 157 |
Commercial participations purchased |  | $ | 5,235 |  | $ | 5,576 |  | $ | - |  | $ | 5,696 |  | $ | 29 |
Commercial business loans |  | $ | 1,394 |  | $ | 2,105 |  | $ | - |  | $ | 1,689 |  | $ | 8 |
|  | As of December 31, 2012 |  | For the six months ended June 30, 2012 |
(Dollars in thousands) |  | Recorded Investment |  | Unpaid Principal Balance |  | Related Allowance |  | Average Recorded Investment |  | Interest Income Recognized |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate, including home equity |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |
Commercial real estate, construction & land development, and other dwellings |  |  | 591 |  |  | 591 |  |  | - |  |  | 708 |  |  | 2 |
Commercial participations purchased |  |  | 6,378 |  |  | 11,047 |  |  | - |  |  | 3,501 |  |  | - |
Commercial business loans |  |  | 727 |  |  | 1,000 |  |  | - |  |  | 645 |  |  | 17 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate, including home equity |  |  | 692 |  |  | 692 |  |  | 9 |  |  | 596 |  |  | 6 |
Commercial real estate, construction & land development, and other dwellings |  |  | 10,187 |  |  | 10,271 |  |  | 1,783 |  |  | 9,817 |  |  | - |
Commercial participations purchased |  |  | - |  |  | - |  |  | - |  |  | 5,406 |  |  | 144 |
Commercial business loans |  |  | 1,305 |  |  | 1,305 |  |  | 209 |  |  | 1,103 |  |  | 29 |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate, including home equity |  | $ | 692 |  | $ | 692 |  | $ | 9 |  | $ | 596 |  | $ | 6 |
Commercial real estate, construction & land development, and other dwellings |  | $ | 10,778 |  | $ | 10,862 |  | $ | 1,783 |  | $ | 10,525 |  | $ | 2 |
Commercial participations purchased |  | $ | 6,378 |  | $ | 11,047 |  | $ | - |  | $ | 8,907 |  | $ | 144 |
Commercial business loans |  | $ | 2,032 |  | $ | 2,305 |  | $ | 209 |  | $ | 1,748 |  | $ | 46 |
The Bancorp's age analysis of past due loans is summarized below:
|  | (Dollars in thousands) |
|  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | Greater Than 90 Days Past Due |  | Total Past Due |  | Current |  | Total Loans |  | Recorded Investments Greater than 90 Days and Accruing |
June 30, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate, including home equity |  | $ | 2,801 |  | $ | 621 |  | $ | 2,082 |  | $ | 5,504 |  | $ | 153,667 |  | $ | 159,171 |  | $ | 4 |
Consumer loans |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 267 |  |  | 267 |  |  | - |
Commercial real estate, construction & land development, and other dwellings |  |  | 729 |  |  | 2,512 |  |  | 2,467 |  |  | 5,708 |  |  | 177,611 |  |  | 183,319 |  |  | - |
Commercial participations purchased |  |  | 109 |  |  | - |  |  | 4,322 |  |  | 4,431 |  |  | 11,699 |  |  | 16,130 |  |  | - |
Commercial business loans |  |  | 466 |  |  | - |  |  | 1,298 |  |  | 1,764 |  |  | 59,819 |  |  | 61,583 |  |  | - |
Government loans |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 13,670 |  |  | 13,670 |  |  | - |
Total |  | $ | 4,105 |  | $ | 3,133 |  | $ | 10,169 |  | $ | 17,407 |  | $ | 416,733 |  | $ | 434,140 |  | $ | 4 |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate, including home equity |  | $ | 4,172 |  | $ | 1,145 |  | $ | 1,448 |  | $ | 6,765 |  | $ | 147,862 |  | $ | 154,627 |  | $ | - |
Consumer loans |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 347 |  |  | 347 |  |  | - |
Commercial real estate, construction & land development, and other dwellings |  |  | 4,044 |  |  | 390 |  |  | 1,993 |  |  | 6,427 |  |  | 169,342 |  |  | 175,769 |  |  | 229 |
Commercial participations purchased |  |  | 5 |  |  | - |  |  | 5,442 |  |  | 5,447 |  |  | 22,593 |  |  | 28,040 |  |  | - |
Commercial business loans |  |  | 689 |  |  | 116 |  |  | 1,525 |  |  | 2,330 |  |  | 66,999 |  |  | 69,329 |  |  | - |
Government loans |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 8,869 |  |  | 8,869 |  |  | - |
Total |  | $ | 8,910 |  | $ | 1,651 |  | $ | 10,408 |  | $ | 20,969 |  | $ | 416,012 |  | $ | 436,981 |  | $ | 229 |
The Bancorp's loans on nonaccrual status are summarized below:
|  | (Dollars in thousands) |
|  | June 30, 2013 |  | December 31, 2012 |
Residential real estate, including home equity |  | $ | 2,850 |  | $ | 1,846 |
Consumer loans |  |  | - |  |  | 10 |
Commercial real estate, construction & land development, and other dwellings |  |  | 2,994 |  |  | 2,311 |
Commercial participations purchased |  |  | 4,322 |  |  | 5,442 |
Commercial business loans |  |  | 1,549 |  |  | 1,644 |
Government loans |  |  | - |  |  | - |
Total |  | $ | 11,715 |  | $ | 11,253 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=28368275&loc=d3e5074-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=28368275&loc=d3e5066-111524 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=28368275&loc=d3e5162-111524 + Details
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