Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2012

The major components of loans in the Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011 are summarized below:


	2012			2011
Commercial	$	2,777		$	5,873
Real estate
Construction and land development		8,692			8,868
Residential, 1-4 families		28,075			26,568
Residential, 5 or more families		3,746			4,717
Farmland		1,275			1,306
Nonfarm, nonresidential		70,681			75,879
Agricultural		39			9
Consumer		937			2,487
Other		4,012			4,765

Gross loans		120,234			130,472
Unearned discount and net deferred loan fees and costs		(310	)		(314	)

Total loans		119,924			130,158
Allowance for loan losses		(2,998	)		(2,867	)

Net loans	$	116,926		$	127,291

Loan Portfolio by Credit Quality Indicator

The following table presents the loan portfolio by credit quality indicator (risk grade) as of June 30, 2012 and December 31, 2011. Those loans with a risk grade above special mention have been combined in the pass column for presentation purposes.


June 30, 2012 (In thousands)	Pass		Special Mention		Sub- Standard		Doubtful		Total Loans
Commercial	$	2,777	$	—	$	—	$	—	$	2,777
Real Estate
Construction and land development		3,613		1,893		3,186		—		8,692
Residential, 1-4 families		27,855		—		220		—		28,075
Residential, 5 or more families		3,746		—		—		—		3,746
Farmland		1,275		—		—		—		1,275
Nonfarm, nonresidential		62,548		1,853		6,280		—		70,681
Agriculture		39		—		—		—		39
Consumer		937		—		—		—		937
Other		4,012		—		—		—		4,012

Total loans	$	106,802	$	3,746	$	9,686	$	—	$	120,234


December 31, 2011 (In thousands)	Pass		Special Mention		Sub- Standard		Doubtful		Total Loans
Commercial	$	3,161	$	—	$	2,712	$	—	$	5,873
Real Estate
Construction and land development		5,671		—		3,197		—		8,868
Residential, 1-4 families		25,730		—		838		—		26,568
Residential, 5 or more families		3,890		827		—		—		4,717
Farmland		1,306		—		—		—		1,306
Nonfarm, nonresidential		64,401		2,436		9,042		—		75,879
Agriculture		9		—		—		—		9
Consumer		2,487		—		—		—		2,487
Other		4,765		—		—		—		4,765

Total loans	$	111,420	$	3,263	$	15,789	$	—	$	130,472

Age Analysis of Past Due Loans and Nonaccrual Loans

The following table represents an age analysis of past due loans and nonaccrual loans, segregated by class of loans, as of June 30, 2012 and December 31, 2011.


	Accruing Loans
June 30, 2012 (In thousands)	30-89 Days Past Due		90 Days or More Past Due		Total Accruing Loans Past Due		Nonaccrual Loans		Current Loans		Total Loans
Commercial	$	7	$	—	$	7	$	—	$	2,770	$	2,777
Real Estate
Construction and land development		—		—		—		3,186		5,506		8,692
Residential, 1-4 families		75		680		755		139		27,181		28,075
Residential, 5 or more families		—		—		—		—		3,746		3,746
Farmland		—		—		—		—		1,275		1,275
Nonfarm, nonresidential		2,070		—		2,070		5,604		63,007		70,681
Agriculture		—		—		—		—		39		39
Consumer		6		—		6		—		931		937
Other		—		—		—		—		4,012		4,012

Total loans	$	2,158	$	680	$	2,838	$	8,929	$	108,467	$	120,234


	Accruing Loans
December 31, 2011 (In thousands)	30-89 Days Past Due		90 Days or More Past Due		Total Accruing Loans Past Due		Nonaccrual Loans		Current Loans		Total Loans
Commercial	$	1	$	2,700	$	2,701	$	—	$	3,172	$	5,873
Real Estate
Construction and land development		—		—		—		3,197		5,671		8,868
Residential, 1-4 families		—		—		—		612		25,956		26,568
Residential, 5 or more families		—		—		—		—		4,717		4,717
Farmland		—		—		—		—		1,306		1,306
Nonfarm, nonresidential		107		—		107		5,489		70,283		75,879
Agriculture		—		—		—		—		9		9
Consumer		3		—		3		—		2,484		2,487
Other		—		—		—		—		4,765		4,765

Total loans	$	111	$	2,700	$	2,811	$	9,298	$	118,363	$	130,472

Impaired Loan Data

The following table details impaired loan data as of June 30, 2012 and December 31, 2011:


June 30, 2012 (In thousands)	Impaired Balance		Related Allowance		Average Recorded Investment		Interest Income Recorded		Interest Income Collected
With No Related Allowance Recorded
Commercial	$	—	$	—	$	—	$	—	$	—
Real Estate
Construction and land development		2,479		—		2,489		49		48
Residential, 1-4 families		139		—		137		2		2
Nonfarm, nonresidential		2,602		—		3,421		12		19

		5,220		—		6,047		63		69

With an Allowance Recorded
Commercial		—		—		—		—		—
Real Estate
Construction and land development		3,186		1,295		3,221		—		—
Residential, 1-4 families		—		—		—		—		—
Nonfarm, nonresidential		4,736		550		4,738		34		33

		7,922		1,845		7,959		34		33

Total
Commercial		—		—		—		—		—
Real Estate
Construction and land development		5,665		1,295		5,710		49		48
Residential, 1-4 families		139		—		137		2		2
Nonfarm, nonresidential		7,338		550		8,159		46		52

	$	13,142	$	1,845	$	14,006	$	97	$	102


December 31, 2011 (In thousands)	Impaired Balance		Related Allowance		Average Recorded Investment		Interest Income Recorded			Interest Income Collected
With No Related Allowance Recorded
Commercial	$	—	$	—	$	—	$	—		$	—
Real Estate
Construction and land development		2,504		—		2,529		87			108
Nonfarm, nonresidential		2,500		—		2,500		(32	)		—

		5,004		—		5,029		55			108

With an Allowance Recorded
Commercial		12		12		12		—			—
Real Estate
Construction and land development		3,197		584		3,902		—			—
Residential, 1-4 families		612		73		791		13			16
Nonfarm, nonresidential		4,961		589		5,233		90			149

		8,782		1,258		9,938		103			165

Total
Commercial		12		12		12		—			—
Real Estate
Construction and land development		5,701		584		6,431		87			108
Residential, 1-4 families		612		73		791		13			16
Nonfarm, nonresidential		7,461		589		7,733		58			149

	$	13,786	$	1,258	$	14,967	$	158$			273

Schedule of Loans Considered as TDRs

The following is a schedule of loans that are considered TDRs at June 30, 2012.


	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
(In thousands)
Real Estate		3	$	6,570	$	6,570

Total		3	$	6,570	$	6,570

Schedule of Loans Previously Restructured and Subsequently Defaulted

The following is a schedule of loans that had been previously restructured and have subsequently defaulted at June 30, 2012.

Number of
Contracts

Pre-Modification
Outstanding
Recorded
Investment

Post-Modification
Outstanding
Recorded
Investment

(In thousands)

Real Estate

—

Total

—

Activity in Allowance for Loan Losses

The following tables detail activity in the allowance for loan losses, segregated by class of loan, for the six month periods ended June 30, 2012 and June 30, 2011. Allocation portion of the allowance to one category of loans does not preclude its activity to absorb losses in other loan categories and periodically may result in reallocation within the provision categories.


June 30, 2012 (In thousands)	Beginning Balance		Charge- Offs		Recoveries		Provision		Ending Balance
Commercial	$	35	$	2,694	$	9	$	2,682	$	32
Real Estate
Construction and land development		1,243		—		10		202		1,455
Residential, 1-4 families		155		97		23		24		105
Residential, 5 or more families		—		—		—		—		—
Farmland		—		—		—		—		—
Nonfarm, nonresidential		1,255		1,119		8		1,080		1,224
Agriculture		3		—		—		—		3
Consumer		50		—		—		—		50
Other		126		—		3		—		129

	$	2,867	$	3,910	$	53	$	3,988	$	2,998


June 30, 2011 (In thousands)	Beginning Balance		Charge- Offs		Recoveries		Provision			Ending Balance
Commercial	$	79	$	50	$	1	$	47		$	77
Real Estate
Construction and land development		1,729		123		—		349			1,955
Residential, 1-4 families		385		295		2		103			195
Residential, 5 or more families		—		—		—		—			—
Farmland		—		—		—		—			—
Nonfarm, nonresidential		710		—		2		(60	)		652
Agriculture		3		—		—		—			3
Consumer		47		—		3		—			50
Other		120		—		2		—			122

	$	3,073	$	468	$	10	$	439		$	3,054

Allocation of Allowance for Loan Losses Based on Loans Evaluated Specifically for Impairment and Loans Evaluated Collectively

The following table indicates the allocation of the allowance for loan losses based on loans evaluated specifically for impairment and loans evaluated collectively for the periods ended June 30, 2012 and December 31, 2011.


June 30, 2012 (In thousands)	Individually Evaluate for Impairment			Ending Balance Collectively Evaluated Impairment			Total
Commercial	$	—		$	32		$	32
Real Estate
Construction and land development		1,295			160			1,455
Residential, 1-4 families		—			105			105
Residential, 5 or more families		—			—			—
Farmland		—			—			—
Nonfarm, nonresidential		550			674			1,224
Agriculture		—			3			3
Consumer		—			50			50
Other		—			129			129

Ending balance of allowance for loan losses	$	1,845		$	1,153		$	2,998

Ending balance of allowance to total allowance		61.54	%		38.46	%		100	%

December 31, 2011 (In thousands)
Commercial	$	12		$	23		$	35
Real Estate
Construction and land development		584			659			1,243
Residential, 1-4 families		73			82			155
Residential, 5 or more families		—			—			—
Farmland		—			—			—
Nonfarm, nonresidential		589			666			1,255
Agriculture		—			3			3
Consumer		—			50			50
Other		—			126			126

Ending Balance	$	1,258		$	1,609		$	2,867

Ending balance of allowance to total allowance		43.88	%		56.12	%		100	%