Loans (Tables)

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Composition of Loan Portfolio by Type of Loan

At September 30, 2013 and December 31, 2012, there were no concentrations of loans exceeding 10% of total loans other than as disclosed below:

	September 30, 2013			September 30, 2013			December 31, 2012			December 31, 2012
	Amount			Percent			Amount			Percent
	(Dollars in thousands, except percentages)
Real estate loans:
One-to-four family (closed end) first mortgages	$	157,857			29.2	%	$	162,335			30.3	%
Second mortgages (closed end)		3,576			0.7	%		4,336			0.8	%
Home equity lines of credit		35,072			6.5	%		37,083			6.9	%
Multi-family		28,433			5.2	%		33,056			6.2	%
Construction		9,358			1.7	%		18,900			3.5	%
Land		37,647			6.9	%		45,906			8.6	%
Farmland		50,908			9.4	%		46,799			8.7	%
Non-residential real estate		151,495			28.0	%		122,637			22.9	%
Total mortgage loans		474,346			87.6	%		471,052			87.9	%
Consumer loans		12,379			2.3	%		13,886			2.6	%
Commercial loans		54,735			10.1	%		50,549			9.5	%
Total other loans		67,114			12.4	%		64,435			12.1	%
Total loans, gross		541,460			100.0	%		535,487			100.0	%
Deferred loan costs (fees), net of income		(29	)					146
Less allowance for loan losses		(9,418	)					(10,648	)
Total loans	$	532,013					$	524,985

Non-residential Real Estate Loan Portfolio

At September 30, 2013, and December 31, 2012, the Company’s non-residential real estate loan portfolio was made up of the following loan types:

	September 30, 2013		December 31, 2012
	(Dollars in Thousands)
Land	$	37,647		45,906
Manufacturing		4,102		3,856
Professional, Technical		1,884		2,025
Retail Trade		11,768		12,391
Other Services		19,419		18,303
Finance & Insurance		1,886		386
Agricultural, Forestry, Fishing & Hunting		47,421		42,420
Real Estate and Rental and Leasing		53,221		48,249
Wholesale Trade		21,745		8,891
Arts, Entertainment & Recreation		3,127		3,461
Accommodations / Food Service		26,002		17,152
Healthcare and Social Assistance		6,972		7,932
Transportation & Warehousing		1,152		1,295
Information		2,469		2,488
Non-industry		863		46
Admin Support / Waste Mgmt		372		541
Total	$	240,050		215,342

Non-accrual Loans

The following table indicates the type and level of non-accrual loans at the dates indicated below:

	September 30, 2013		December 31, 2012		September 30, 2012
	(Dollars in Thousands)
One-to-four family mortgages	$	865		2,243		2,795
Home equity line of credit		275		66		24
Junior lien		2		4		—
Multi-family		—		38		190
Construction		—		—		—
Land		2,257		2,768		3,279
Non-residential real estate		7,187		1,134		1,268
Farmland		744		648		49
Consumer loans		316		145		59
Commercial loans		482		617		2,160
Total non-accrual loans	$	12,128		7,663		9,824

Allowance for Loan Loss Account by Loan

The following table provides a detail of the Company’s activity in the allowance for loan loss account by loan type for the nine month period ended September 30, 2013:

	Balance 12/31/2012		Charge off 2013			Recovery 2013		General Provision 2013			Specific Provision 2013			Ending Balance 9/30/2013
	(Dollars in Thousands)
One-to-four family mortgages	$	2,490		(432	)		47		(350	)		386			2,141
Home equity line of credit		374		(21	)		9		(80	)		2			284
Junior liens		230		(119	)		27		43			(79	)		102
Multi-family		524		(38	)		164		(136	)		(164	)		350
Construction		256		—			—		(187	)		—			69
Land		2,184		(393	)		7		(954	)		282			1,126
Non-residential real estate		2,914		(1,040	)		14		431			1,359			3,678
Farmland		719		—			—		(96	)		(184	)		439
Consumer loans		338		(535	)		146		242			387			578
Commercial loans		619		(280	)		6		296			10			651
Total	$	10,648		(2,858	)		420		(791	)		1,999			9,418

The following table provides a detail of the Company’s activity in the allowance for loan loss account by loan type for the year ended December 31, 2012:

	Balance 12/31/2011		Charge off 2012			Recovery 2012		General Provision 2012			Specific Provision 2012			Balance 12/31/2012
	(Dollars in Thousands)
One-to-four family mortgages	$	2,640		(379	)		81		324			(176	)		2,490
Home equity line of credit		408		(67	)		6		6			21			374
Junior liens		277		(1	)		4		—			(50	)		230
Multi-family		1,201		(417	)		—		429			(689	)		524
Construction		139		—			—		117			—			256
Land		1,332		(1,033	)		405		635			845			2,184
Non-residential real estate		3,671		(1,120	)		137		718			(492	)		2,914
Farmland		—		—			—		315			404			719
Consumer loans		262		(510	)		150		404			32			338
Commercial loans		1,332		(157	)		12		(171	)		(397	)		619
Total	$	11,262		(3,684	)		795		2,777			(502	)		10,648

Past Due and Non-accrual Balances by Loan Classification

The table below presents currently performing, past due and non-accrual balances at September 30, 2013, by loan classification allocated between performing and non-performing:

	Currently		30 - 89 Days		Non-accrual		Special		Impaired Loans Currently Performing
September 30, 2013	Performing		Past Due		Loans		Mention		Substandard		Doubtful		Total
	(Dollars in Thousands)
One-to-four family mortgages	$	148,481		1,682		865		1,423		5,406		—		157,857
Home equity line of credit		33,672		248		275		—		877		—		35,072
Junior liens		3,128		33		2		44		369		—		3,576
Multi-family		28,433		—		—		—		—		—		28,433
Construction		9,007		175		—		176		—		—		9,358
Land		17,259		133		2,257		1,789		16,209		—		37,647
Non-residential real estate		127,731		90		7,187		2,183		14,304		—		151,495
Farmland		44,428		103		744		807		4,826		—		50,908
Consumer loans		11,376		151		316		—		536		—		12,379
Commercial loans		51,324		91		482		96		2,742		—		54,735
Total	$	474,839		2,706		12,128		6,518		45,269		—		541,460

The table below presents currently performing, past due and non-accrual balances at December 31, 2012, by loan classification allocated between performing and non-performing:

	Currently		30 - 89 Days		Non-accrual		Special		Impaired Loans Currently Performing
December 31, 2012	Performing		Past Due		Loans		Mention		Substandard		Doubtful		Total
	(Dollars in Thousands)
One-to-four family mortgages	$	155,936		1,339		2,243		779		2,038		—		162,335
Home equity line of credit		34,732		5		66		1,109		1,171		—		37,083
Junior liens		3,584		237		4		47		464		—		4,336
Multi-family		27,463		—		38		1,478		4,077		—		33,056
Construction		13,876		176		—		—		4,848		—		18,900
Land		14,237		137		2,768		7,683		21,081		—		45,906
Non-residential real estate		101,894		293		1,134		1,230		18,647		—		123,198
Farmland		44,256		—		648		669		665		—		46,238
Consumer loans		13,266		74		145		—		401		—		13,886
Commercial loans		43,961		230		617		516		5,225		—		50,549
Total	$	453,205		2,491		7,663		13,511		58,617		—		535,487

Bank's Allowance for Loan Losses

The table on the below sets forth an analysis of the Bank’s allowance for loan losses for the periods presented:

	Nine month period ended September 30, 2013			Year ended December 31, 2012			Nine month period ended September 30, 2012
	(Dollars in Thousands, Except Percentages)
Beginning balance, allowance for loan loss	$	10,648			11,262			11,262
Charge offs
One-to-four family mortgages		(432	)		(379	)		(282	)
Home equity line of credit		(21	)		(67	)		(65	)
Junior liens		(119	)		(1	)		(1	)
Multi-family		(38	)		(417	)		(416	)
Construction		—			—			—
Land		(393	)		(1,033	)		(1,033	)
Non-residential real estate		(1,040	)		(1,120	)		(799	)
Consumer loans		(535	)		(510	)		(284	)
Commercial loans		(280	)		(157	)		(206	)
Total charge offs		(2,858	)		(3,684	)		(3,086	)
Recoveries
One-to-four family mortgages		47			81			77
Home equity line of credit		9			6			5
Junior liens		27			4			3
Multi-family		164			—			—
Construction		—			—			—
Land		7			405			234
Non-residential real estate		14			137			100
Consumer loans		146			150			110
Commercial loans		6			12			10
Total recoveries		420			795			539
Net Charge offs		(2,438	)		(2,889	)		(2,547	)
Provision for loan losses		1,208			2,275			1,775
Ending balance		9,418			10,648			10,490
Average loan balance, gross	$	537,233			533,081			556,332
Ratio of net charge offs to average outstanding loans during the period		0.61	%		0.52	%		0.61	%

Summary of Company's Impaired Loans

A summary of the Company’s impaired loans, including their respective regulatory classification and their respective specific reserve at September 30, 2013, were as follows:

			Special		Impaired Loans						Specific Allowance for		Allowance for Performing
September 30, 2013	Pass		Mention		Substandard		Doubtful		Total		Impairment		Loans
	(Dollars in Thousands)
One-to-four family mortgages	$	151,028		1,423		5,406		—		157,857		755		1,386
Home equity line of credit		34,195		—		877		—		35,072		66		218
Junior liens		3,163		44		369		—		3,576		17		85
Multi-family		28,433		—		—		—		28,433		—		350
Construction		9,182		176		—		—		9,358		—		69
Land		19,649		1,789		16,209		—		37,647		828		298
Non-residential real estate		135,008		2,183		14,304		—		151,495		1,573		2,105
Farmland		45,275		807		4,826		—		50,908		—		439
Consumer loans		11,839		—		540		—		12,379		119		459
Commercial loans		51,893		96		2,746		—		54,735		44		607
Total	$	489,665		6,518		45,277		—		541,460		3,402		6,016

A summary of the Company’s impaired loans and their respective reserve at December 31, 2012, were as follows:

			Special		Impaired Loans						Specific Allowance for		Allowance for Performing
	Pass		Mention		Substandard		Doubtful		Total		Impairment		Loans
	(Dollars in Thousands)
One-to-four family mortgages	$	156,961		779		4,595		—		162,335		754		1,736
Home equity line of credit		34,737		1,109		1,237		—		37,083		76		298
Junior liens		3,821		47		468		—		4,336		188		42
Multi-family		27,463		1,478		4,115		—		33,056		38		486
Construction		14,052		—		4,848		—		18,900		—		256
Land		14,374		7,683		23,849		—		45,906		932		1,252
Non-residential real estate		107,947		669		14,021		—		122,637		1,240		1,681
Farmland		38,496		1,230		7,073		—		46,799		184		528
Consumer loans		13,330		—		556		—		13,886		121		217
Commercial loans		44,191		516		5,842		—		50,549		308		311
Total	$	455,372		13,511		66,604		—		535,487		3,841		6,807

Impaired Loans by Classification Type

Impaired loans by classification type and the related valuation allowance amounts at September 30, 2013, were as follows:

							For the nine month period ended
	At September 30, 2013						September 30, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
Impaired loans with no recorded reserve:
One-to-four family mortgages	$	2,310		2,310		—		2,087		4
Home equity line of credit		602		602		—		539		3
Junior liens		2		2		—		239		—
Multi-family		—		—		—		1,321		—
Construction		—		—		—		1,371		—
Land		12,663		12,663		—		10,446		96
Farmland		4,826		4,826		—		4,669		115
Non-residential real estate		8,495		8,495		—		7,058		20
Consumer loans		64		64		—		44		7
Commercial loans		2,623		2,623		—		2,500		51
Total	$	31,585		31,585		—		30,274		296
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
Impaired loans with recorded reserve:
One-to-four family mortgages	$	3,096		3,220		755		2,701		26
Home equity line of credit		275		275		66		372		1
Junior liens		367		367		17		151		1
Multi-family		—		—		—		—		—
Construction		—		—		—		—		—
Land		3,546		3,546		828		4,351		20
Farmland		—		—		—		151		—
Non-residential real estate		5,809		6,842		1,573		4,150		3
Consumer loans		476		476		119		373		—
Commercial loans		123		212		44		536		1
Total	$	13,692		14,938		3,402		12,785		52
Total impaired loans	$	45,277		46,523		3,402		43,059		348

Impaired loans by classification type and the related valuation allowance amounts at December 31, 2012, were as follows:

	At December 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans with no recorded reserve:
One-to-four family mortgages	$	1,759		1,759		—		5,279		107
Home equity line of credit		1,169		1,169		—		869		50
Junior liens		—		—		—		281		3
Multi-family		4,077		4,077		—		3,626		219
Construction		4,848		4,848		—		3,133		174
Land		20,279		20,279		—		19,857		504
Farmland		5,701		5,701		—		5,701		202
Non-residential real estate		9,662		9,662		—		14,235		653
Consumer loans		81		81		—		66		5
Commercial loans		1,617		1,617		—		2,701		165
Total	$	49,193		49,193		—		55,748		2,082
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans with recorded reserve:
One-to-four family mortgages		2,836		2,836		754		3,135		145
Home equity line of credit		68		68		76		162		3
Junior liens		468		468		188		365		38
Multi-family		38		38		38		2,640		4
Construction		—		—		—		1,095		—
Land		3,570		3,570		932		4,848		213
Farmland		1,372		1,372		184		1,372		92
Non-residential real estate		4,359		4,359		1,240		5,206		231
Consumer loans		475		475		121		223		1
Commercial loans		4,225		4,225		308		4,470		28
Total		17,411		17,411		3,841		23,516		755
Total impaired loans	$	66,604		66,604		3,841		79,264		2,837

Company's Loans Classified as Troubled Debt Restructurings (TDR's)

A summary of the Company’s loans classified as Troubled Debt Restructurings (TDR’s) that are reported as performing at September 30, 2013 and December 31, 2012, is below:

	September 30, 2013		December 31, 2012
	(Dollars in Thousands)
TDR by Loan Type:
One-to-four family mortgages	$	—		1,888
Home equity line of credit		—		—
Junior lien		—		196
Multi-family		—		234
Construction		—		4,112
Land		—		3,424
Non-residential real estate		—		3,173
Farmland		—		909
Consumer loans		—		5
Commercial loans		—		128
Total TDR		—		14,069
Less:
TDR in non-accrual status
One-to-four family mortgages		—		—
Home equity line of credit		—		—
Junior lien		—		(100	)
Multi-family		—		—
Construction		—		—
Land		—		(2,768	)
Non-residential real estate		—		(44	)
Farmland		—		—
Consumer loans		—		—
Commercial loans		—		(119	)
Total non-accrual TDR		—		(3,031	)
Total performing TDR	$	—		11,038