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Concentration Of Credit Risk
12 Months Ended
Dec. 31, 2012
Concentration Of Credit Risk [Abstract]  
Concentration Of Credit Risk

Note 20 – Concentration of credit risk

The Bank has a diversified loan portfolio consisting of commercial, real estate and consumer (installment) loans.  Substantially all of the Banks customers are residents or operate business ventures in its market area consisting primarily of the Lynchburg metropolitan area.  Therefore, a substantial portion of its debtors ability to honor their contracts and the Banks ability to realize the value of any underlying collateral, if needed, is influenced by the economic conditions in this market area.

The Bank maintains a significant portion of its cash balances with one financial institution.  At December 31, 2012, accounts at this institution were 100% secured by the Federal Deposit Insurance Corporation as a result of

 

the temporary FDIC insurance limit increases promulgated by the Emergency Economic Stabilization Act of 2008.  The temporary FDIC limits were allowed to expire as of January 1, 2013. Uninsured cash balances were approximately $1,475 and $398, which consisted of the total balances in 2 accounts at the Federal Home Loan Bank of Atlanta, at December 31, 2012 and 2011, respectively.