XML 51 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Allowance for Loan Losses
 3 Months Ended
Mar. 31, 2013
Allowance for Loan Losses [Abstract]  
Allowance for loan losses
Note 4: Allowance for Loan Losses

A disaggregation of and an analysis of the change in the allowance for loan losses by segment is shown below.

Allowance for Loan Losses by Portfolio Segment

For the three months ended March 31, 2013 (unaudited)

 

                                                                                 
    Construction,
Land and
Land
Development		     Farmland     Commercial
Mortgages
(Non
Owner
Occupied) 		    Commercial
Mortgages
(Owner
Occupied)		     Residential
First
Mortgages		     Residential
Junior
Mortgages		     Commercial
and
Industrial		     Consumer
Loans		     Unallocated     Total  
ALLOWANCE FOR LOAN LOSSES:                                                                                

Beginning Balance

   $ 191,882     $ 2,000     $ 106,000     $ 545,084     $ 1,209,454     $ 517,253     $ 262,000     $ 252,210     $ 7,740     $ 3,093,623  

(Charge-offs)

     —         —         —         —         (167,554 )      —         —         (28,375 )              (195,929 ) 

Recoveries

     11,896       —         15,889       —         23,385       —          35       2,508               53,713  
                     

Provision

     3.682       (1,000 )      (36,889 )      (86,225 )      (6,900 )      169,240       43,965       4,867       (7,740 )      83,000  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending Balance

   $ 207,460     $ 1,000     $ 85,000     $ 458,859     $ 1,058,385     $ 686,493     $ 306,000     $ 231,210     $ —       $ 3,034,407  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
                     

Individually evaluated for impairment

   $ 23,618     $ —       $ —       $ 115,859     $ 353,385     $ 321,493     $ —       $ 74,210     $ —       $ 888,565  

Collectively evaluated for impairment

   $ 183,842     $ 1,000     $ 85,000     $ 343,000     $ 705,000     $ 365,000     $ 306,000     $ 157,000     $ —       $ 2,145,842  
                     
LOAN RECEIVABLES:                                                                                

Ending Balance:

                                                                                

Individually evaluated for impairment

   $ 213,420     $ —       $ —       $ 1,282,324     $ 4,294,251     $ 1,224,588     $ —       $ 73,130             $ 7,087,713  

Collectively evaluated for impairment

     28,352,073       1,421,060       13,511,592       32,805,787       102,293,374       25,364,177       17,876,966       6,163,193               227,788,222  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

            

 

 

  
                     

Total Gross Loans

   $ 28,565,493     $ 1,421,060     $ 13,511,592     $ 34,088,111     $ 106,587,625     $ 26,588,765     $ 17,876,966     $ 6,236,323             $ 234,875,935  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

            

 

 

  

Provision is negative for the Commercial Mortgages segments due mainly to a reduction in the total level of allowance required for these segments. Provision is negative for the Residential First Mortgages segment due mainly to a reduction in the level of individual impaired allowance required for this segment.

 

Allowance for Loan Losses by Portfolio Segment

For the Year Ended December 31, 2012

 

                                                                                 
    Construction,
Land and
Land
Development		     Farmland     Commercial
Mortgages
(Non
Owner
Occupied) 		    Commercial
Mortgages
(Owner
Occupied)		     Residential
First
Mortgages		     Residential
Junior
Mortgages		     Commercial
and
Industrial		     Consumer
Loans		     Unallocated     Total  
ALLOWANCE FOR LOAN LOSSES:                                                                                

Beginning Balance

   $ 190,500     $ —       $ 88,000     $ 554,318     $ 1,161,551     $ 719,121     $ 281,650     $ 185,000     $ 8,401     $ 3,188,541  

(Charge-offs)

     (200,278 )      —         (283,569 )      —         (787,108 )      (527,857 )      (388,026 )      (188,724 )      —         (2,375562 ) 

Recoveries

     —         —         285,326       —         4,059       —         18,369       78,205       —         385,959  

Provision

     201,660       2,000       16,243       (9,234 )      830,952       325,989       350,007       177,729       (661 )      1,894,685  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
                     

Ending Balance

   $ 191,882     $ 2,000     $ 106,000     $ 545,084     $ 1,209,454     $ 517,253     $ 262,000     $ 252,210     $ 7,740     $ 3,093,623  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
                     

Individually evaluated

for impairment

   $ 25,882     $ —       $ —       $ 165,084     $ 467,454     $ 101,253     $ —       $ 74,210     $ —        $ 833,883  

Collectively evaluated

for impairment

   $ 166,000     $ 2,000     $ 106,000     $ 380,000     $ 742,000     $ 416,000     $ 262,000     $ 178,000     $ 7,740     $ 2,259,740  
                     
LOAN RECEIVABLES:                                                                                

Ending Balance:

                                                                                

Individually evaluated

for impairment

   $ 275,650     $ —       $ —       $ 1,617,001     $ 4,278,290     $ 1,336,761     $ —       $ 73,978             $ 7,581,680  

Collectively evaluated

for impairment

     28,748,644       1,442,757       13,420,551       32,017,383       103,277,404       25,645,751       20,524,547       6,579,432               231,656,469  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

            

 

 

  
                     

Total Gross Loans

   $ 29,024,294     $ 1,442,757     $ 13,420,551     $ 33,634,384     $ 107,555,694     $ 26,982,512     $ 20,524,547     $ 6,653,410             $ 239,238,149  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

            

 

 

  

Internal risk rating grades are assigned to commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, loans to real estate developers and contractors, and consumer loans greater than $250,000 with chronic delinquency, as shown in the following table. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades are evaluated as new information becomes available for each borrowing relationship or at least quarterly.

 

                                                 

As of March 31, 2013 (unaudited)

INTERNAL RISK RATING GRADES

   Construction,
Land and
Land
Development		     Farmland     Commercial
Mortgages
(Non-Owner
Occupied) 		    Commercial
Mortgages
(Owner
Occupied)		     Commercial
and
Industrial		     Total  

Grade:

                                                

Pass

   $ 21,242,528     $ 1,421,060     $ 7,126,309     $ 24,423,756     $ 13,919,104     $ 68,132,757  

Watch

     4,754,949       —         3,470,529       6,723,733       2,652,893       17,602,104  

Special mention

     1,337,558       —         2,574,371       336,282       1,068,734       5,316,945  

Substandard

     1,030,458       —         340,383       2,604,340       236,235       4,211,416  
             

Doubtful

     200,000       —         —         —         —         200,000  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 28,565,493     $ 1,421,060     $ 13,511,592     $ 34,088,111     $ 17,876,966     $ 95,463,222  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

                                                 

As of December 31, 2012

INTERNAL RISK RATING GRADES

   Construction,
Land and
Land
Development		     Farmland     Commercial
Mortgages
(Non-Owner
Occupied)		     Commercial
Mortgages
(Owner
Occupied)		     Commercial
and
Industrial		     Total  

Grade:

                                                

Pass

   $ 21,877,355     $ 1,442,757     $ 7,362,289     $ 23,974,131     $ 16,418,910     $ 71,075,442  

Watch

     4,746,266       —         2,824,575       6,680,142       2,866,739       17,117,722  

Special mention

     1,162,388       —         2,574,371       338,902       759,554       4,835,215  

Substandard

     1,038,285       —         659,316       2,641,209       479,344       4,818,154  
             

Doubtful

     200,000       —         —         —         —         200,000  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 29,024,294     $ 1,442,757     $ 13,420,551     $ 33,634,384     $ 20,524,547     $ 98,046,533  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

Loans not assigned internal risk rating grades are comprised of residential mortgages and smaller consumer loans. Payment activity of these loans is reviewed monthly by management. Loans are considered to be nonperforming when they are delinquent by 90 days or more or on nonaccrual, as shown in the table below.

 

                                 

As of March 31, 2013 (unaudited)

PAYMENT ACTIVITY STATUS

   Residential
First
Mortgages		     Residential
Revolving
and Junior
Mortgages		     Consumer
Loans		     Total  

Performing

   $ 104,385,779     $ 25,434,177     $ 6,232,685     $ 136,052,641  
         

Nonperforming

     2,201,846       1,154,588       3,638       3,360,072  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 106,587,625     $ 26,588,765     $ 6,236,323     $ 139,412,713  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

As of December 31, 2012

PAYMENT ACTIVITY STATUS

   Residential
First
Mortgages		     Residential
Revolving
And Junior
Mortgages		     Consumer
Loans		     Total  

Performing

   $ 104,877,404     $ 25,724,597     $ 6,648,243     $ 137,250,244  
         

Nonperforming

     2,678,290       1,257,915       5,167       3,941,372  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 107,555,694     $ 26,982,512     $ 6,653,410     $ 141,191,616  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

The following table shows the Company’s recorded investment and the customers’ unpaid principal balances for impaired loans, with the associated allowance amount, if applicable. Also shown are the average recorded investments in impaired loans and the related amount of interest recognized and collected during the time the loans were impaired.

IMPAIRED LOANS

As of March 31, 2013 (unaudited)

 

                                                 
     Recorded
Investment		     Customers’ Unpaid
Principal Balance		     Related
Allowance		     Average
Recorded
Investment		     Interest
Income
Recognized		     Interest
Income
Collected		  

With no related allowance:

                                                

Construction, land & land development

   $ 13,420     $ 13,806     $ —       $ 13,855     $ —       $ —    

Farmland

     —         —         —         —         —         —    

Residential First Mortgages

     1,478,276       1,492,465       —         1,487,094       3,325       3,383  

Residential Revolving and Junior Mortgages (1)

     96,341       98,153       —         97,247       —          —    

Commercial Mortgages (Non-owner occupied)

     —         —         —         —         —         —    

Commercial Mortgages (Owner occupied)

     752,170       757,329       —         755,281       6,934       4,547  

Commercial & industrial

     —         —         —         —         —         —    

Consumer (2)

     —         —         —         —         —         —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 2,340,207     $ 2,361,753     $ —       $ 2,353,477     $ 10,259     $ 7,930  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             

With an allowance recorded:

                                                

Construction, land & land development

   $ 200,000     $ 200,000     $ 23,618     $ 200,000     $ —       $ —    

Farmland

     —         —         —         —         —         —    

Residential First Mortgages

     2,815,975       2,815,975       353,385       2,511,351       28,504       26,774  

Residential Revolving and Junior Mortgages (1)

     1,128,247       1,936,968       321,493       1,041,632       1,756       1,547  

Commercial Mortgages (Non-owner occupied)

     —         —         —         —         —         —    

Commercial Mortgages (Owner occupied)

     530,154       538,307       115,859       535,173       —         —    

Commercial & industrial

     —         —         —         —         —         —    

Consumer (2)

     73,130       73,130       74,210       73,554       1,369       892  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 4,747,506     $ 5,564,380     $ 888,565     $ 4,361,710     $ 31,629     $ 29,213  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             

Total Impaired Loans:

                                                

Construction, land & land development

   $ 213,420     $ 213,806     $ 23,618     $ 213,855     $ —       $ —    

Farmland

     —         —         —         —         —         —    

Residential First Mortgages

     4,294,251       4,308,440       353,385       3,998,445       31,829       30,157  

Residential Revolving and Junior Mortgages (1)

     1,224,588       2,035,121       321,493       1,138,879       1,756       1,547  

Commercial Mortgages (Non-owner occupied)

     —         —         —         —         —         —    

Commercial Mortgages (Owner occupied)

     1,282,324       1,295,636       115,859       1,290,454       6,934       4,547  

Commercial & industrial

     —         —         —         —         —         —    

Consumer (2)

     73,130       73,130       74,210       73,554       1,369       892  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 7,087,713     $ 7,926,133     $ 888,565     $ 6,715,187     $ 41,888     $ 37,143  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Junior mortgages include equity lines
(2) includes credit cards

 

IMPAIRED LOANS

As of December 31, 2012

 

                                                 
    Recorded
Investment		     Customers’
Unpaid
Principal Balance		     Related
Allowance		     Average
Recorded
Investment		     Interest
Income
Recognized		     Interest
Income
Collected		  

With no related allowance:

                                                

Construction, land & land development

   $ 213,768     $ 213,914     $ —       $ 202,754     $ 162     $ 130  

Farmland

     —                 —         —         —         —    

Residential First Mortgages

     1,495,910       1,495,910       —         1,372,196       44,756       59,727  

Residential Junior Mortgages

     971,654       1,785,259       —         1,380,596       3,750       2,488  

Commercial Mortgages (Non-owner occupied)

     —         —         —         —         —         —    

Commercial Mortgages (Owner occupied)

     758,391       758,391       —         429,600       30,518       34,754  

Commercial & industrial

     —         —         —         —         —         —    

Consumer

     —         —         —         —         —         —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 3,439,723     $ 4,253,474     $ —       $ 3,385,145     $ 79,186     $ 97,099  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             

With an allowance recorded:

                                                

Construction, land & land development

   $ 61,882     $ 65,566     $ 25,882     $ 63,761     $ —       $ —    

Farmland

     —         —         —         —         —         —    

Residential First Mortgages

     2,782,380       2,807,875       467,454       1,803,730       90,030       82,370  

Residential Junior Mortgages

     365,107       381,452       101,253       310,726       1,953       1,205  

Commercial Mortgages (Non-owner occupied)

     —         —         —         —         —         —    

Commercial Mortgages (Owner occupied)

     858,610       858,610       165,084       863,479       15,900       11,961  

Commercial & industrial

     —         —         —         —         —         —    

Consumer

     73,978       73,978       74,210       67,322       8,385       8,678  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 4,141,957     $ 4,187,481     $ 833,883     $ 3,109,017     $ 116,268     $ 104,214  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             

Total Impaired Loans:

                                                

Construction, land & land development

   $ 275,650     $ 279,480     $ 25,882     $ 266,515     $ 162     $ 130  

Farmland

     —         —         —         —         —         —    

Residential First Mortgages

     4,278,290       4,303,785       467,454       3,175,925       134,786       142,097  

Residential Junior Mortgages

     1,336,761       2,166,711       101,253       1,691,321       5,703       3,693  

Commercial Mortgages (Non-owner occupied)

     —         —         —         —         —         —    

Commercial Mortgages (Owner occupied)

     1,617,001       1,617,001       165,084       1,293,079       46,418       46,715  

Commercial & industrial

     —         —         —         —         —         —    

Consumer

     73,978       73,978       74,210       67,322       8,385       8,678  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 7,581,680     $ 8,440,955     $ 833,883     $ 6,494,162     $ 195,454     $ 201,313  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Junior mortgages include equity lines
(2) includes credit cards

At March 31, 2013 and December 31, 2012, nonaccruing loans excluded from impaired loan disclosure totaled $768,649 and $721,951, respectively. If interest on these nonaccruing loans had been accrued, such income would have approximated $10,828 during the three months ended March 31, 2013 and $16,139 during the year ended December 31, 2012.

 

The following table presents, by segments of loans, information related to loans modified as Troubled Debt Restructurings (“TDR’s”) during the three months ended March 31, 2013 and 2012.

 

                         
    For the three months ended March 31, 2013 (unaudited)  
    Number of     Pre-Modification Outstanding     Post-Modification Outstanding  

TROUBLED DEBT RESTRUCTURINGS

   Number of Loans     Recorded Investment     Recorded Investment  

Residential First Mortgages

     2     $ 314,889     $ 314,655  

No loans were modified as TDR’s during the three months ended March 31, 2012. There were no loans modified as TDR’s within 12 months prior to a default that subsequently defaulted (i.e. 90 days or more past due following a modification) during the three months ended March 31, 2013.