Note 4: Loans
Major classifications of loans at December 31 were as follows:
|
|
2011 |
|
2010 |
|
Commercial |
|
$ |
98,099 |
|
$ |
149,552 |
|
Real estate - commercial |
|
704,492 |
|
821,101 |
|
Real estate - construction |
|
71,436 |
|
129,601 |
|
Real estate - residential |
|
477,200 |
|
557,635 |
|
Consumer |
|
3,789 |
|
4,949 |
|
Overdraft |
|
457 |
|
739 |
|
Lease financing receivables |
|
2,087 |
|
2,774 |
|
Other |
|
11,498 |
|
24,487 |
|
|
|
$ |
1,369,058 |
|
$ |
1,690,838 |
|
Net deferred loan fees and costs |
|
(73 |
) |
(709 |
) |
|
|
$ |
1,368,985 |
|
$ |
1,690,129 |
|
It is the policy of the Company to review each prospective credit in order to determine an adequate level of security or collateral was obtained prior to making a loan. The type of collateral, when required, will vary from liquid assets to real estate. The Company’s access to collateral, in the event of borrower default, is assured through adherence to state lending laws, the Company’s lending standards and credit monitoring procedures. The Bank generally makes loans within its market area. There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector, although the real estate related categories listed above represent 91.5% and 89.2% of the portfolio at December 31, 2011, and December 31, 2010, respectively. In spite of this increase, the Company remains committed to overseeing and managing its loan portfolio to reduce its real estate credit concentrations in accordance with the requirements of the Consent Order with the Bank and the OCC. Consistent with that commitment, management has updated its asset diversification plan and policy and anticipates that the percentage of real estate lending to the overall portfolio will decrease in the future as a result of that process. Regulatory and Capital matters including the Consent Order are discussed in more detail in Note 19 of the consolidated financial statements included in this report.
Aged analysis of past due loans by class of loans as of December 31, 2011 and December 31, 2010 were as follows:
December 31, 2011 |
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
90 Days or
Greater Past
Due |
|
Total Past
Due |
|
Current |
|
Nonaccrual |
|
Total
Financing
Receivables |
|
Recorded
Investment
90 days or
Greater Past
Due and
Accruing |
|
Commercial |
|
$ |
161 |
|
$ |
20 |
|
$ |
— |
|
$ |
181 |
|
$ |
98,840 |
|
$ |
1,165 |
|
$ |
100,186 |
|
$ |
— |
|
Real estate - commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner occupied general purpose |
|
912 |
|
— |
|
— |
|
912 |
|
137,250 |
|
12,744 |
|
150,906 |
|
— |
|
Owner occupied special purpose |
|
— |
|
39 |
|
— |
|
39 |
|
172,624 |
|
16,564 |
|
189,227 |
|
— |
|
Non-owner occupied general purpose |
|
471 |
|
— |
|
318 |
|
789 |
|
147,099 |
|
12,893 |
|
160,781 |
|
318 |
|
Non-owner occupied special purpose |
|
— |
|
— |
|
— |
|
— |
|
107,425 |
|
1,814 |
|
109,239 |
|
— |
|
Retail properties |
|
— |
|
— |
|
— |
|
— |
|
42,535 |
|
15,897 |
|
58,432 |
|
— |
|
Farm |
|
197 |
|
— |
|
— |
|
197 |
|
34,136 |
|
1,574 |
|
35,907 |
|
— |
|
Real estate - construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
Homebuilder |
|
— |
|
— |
|
— |
|
— |
|
8,725 |
|
10,193 |
|
18,918 |
|
— |
|
Land |
|
— |
|
— |
|
— |
|
— |
|
7,976 |
|
2,025 |
|
10,001 |
|
— |
|
Commercial speculative |
|
— |
|
669 |
|
— |
|
669 |
|
5,154 |
|
14,217 |
|
20,040 |
|
— |
|
All other |
|
— |
|
74 |
|
— |
|
74 |
|
17,714 |
|
4,689 |
|
22,477 |
|
— |
|
Real estate - residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
Investor |
|
338 |
|
3,562 |
|
— |
|
3,900 |
|
162,101 |
|
15,111 |
|
181,112 |
|
— |
|
Owner occupied |
|
3,414 |
|
573 |
|
— |
|
3,987 |
|
119,266 |
|
15,059 |
|
138,312 |
|
— |
|
Revolving and junior liens |
|
1,525 |
|
166 |
|
— |
|
1,691 |
|
153,244 |
|
2,841 |
|
157,776 |
|
— |
|
Consumer |
|
8 |
|
— |
|
— |
|
8 |
|
3,781 |
|
— |
|
3,789 |
|
— |
|
All other |
|
— |
|
— |
|
— |
|
— |
|
11,882 |
|
— |
|
11,882 |
|
— |
|
|
|
$ |
7,026 |
|
$ |
5,103 |
|
$ |
318 |
|
$ |
12,447 |
|
$ |
1,229,752 |
|
$ |
126,786 |
|
$ |
1,368,985 |
|
$ |
318 |
|
December 31, 2010 |
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
90 Days or
Greater Past
Due |
|
Total Past
Due |
|
Current |
|
Nonaccrual |
|
Total
Financing
Receivables |
|
Recorded
Investment
90 days or
Greater Past
Due and
Accruing |
|
Commercial |
|
$ |
375 |
|
$ |
391 |
|
$ |
216 |
|
$ |
982 |
|
$ |
147,676 |
|
$ |
3,668 |
|
$ |
152,326 |
|
$ |
216 |
|
Real estate - commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner occupied general purpose |
|
1,156 |
|
2 |
|
— |
|
1,158 |
|
158,189 |
|
18,610 |
|
177,957 |
|
— |
|
Owner occupied special purpose |
|
897 |
|
— |
|
328 |
|
1,225 |
|
181,845 |
|
25,987 |
|
209,057 |
|
328 |
|
Non-owner occupied general purpose |
|
884 |
|
499 |
|
— |
|
1,383 |
|
148,406 |
|
25,623 |
|
175,412 |
|
— |
|
Non-owner occupied special purpose |
|
— |
|
— |
|
— |
|
— |
|
104,791 |
|
11,612 |
|
116,403 |
|
— |
|
Retail properties |
|
— |
|
— |
|
— |
|
— |
|
74,564 |
|
24,374 |
|
98,938 |
|
— |
|
Farm |
|
148 |
|
999 |
|
— |
|
1,147 |
|
41,446 |
|
741 |
|
43,334 |
|
— |
|
Real estate - construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilder |
|
217 |
|
— |
|
— |
|
217 |
|
14,676 |
|
22,001 |
|
36,894 |
|
— |
|
Land |
|
— |
|
586 |
|
— |
|
586 |
|
12,324 |
|
20,617 |
|
33,527 |
|
— |
|
Commercial speculative |
|
— |
|
— |
|
— |
|
— |
|
21,603 |
|
14,881 |
|
36,484 |
|
— |
|
All other |
|
65 |
|
73 |
|
— |
|
138 |
|
16,545 |
|
6,013 |
|
22,696 |
|
— |
|
Real estate - residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor |
|
2,221 |
|
— |
|
469 |
|
2,690 |
|
200,011 |
|
21,223 |
|
223,924 |
|
469 |
|
Owner occupied |
|
4,450 |
|
656 |
|
— |
|
5,106 |
|
139,457 |
|
15,309 |
|
159,872 |
|
— |
|
Revolving and junior liens |
|
284 |
|
6 |
|
— |
|
290 |
|
171,990 |
|
1,559 |
|
173,839 |
|
— |
|
Consumer |
|
9 |
|
2 |
|
— |
|
11 |
|
4,931 |
|
7 |
|
4,949 |
|
— |
|
All other |
|
— |
|
— |
|
— |
|
— |
|
24,517 |
|
— |
|
24,517 |
|
— |
|
|
|
$ |
10,706 |
|
$ |
3,214 |
|
$ |
1,013 |
|
$ |
14,933 |
|
$ |
1,462,971 |
|
$ |
212,225 |
|
$ |
1,690,129 |
|
$ |
1,013 |
|
Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.
Additional details and discussion related to past due, nonaccrual and restructured loans is found in the “Provision for Loan Losses” section of the “Management Discussion and Analysis” section of this report. The Bank had no commitments to any borrower whose loans were classified as impaired at December 31, 2011
Credit Quality Indicators:
The Company categorizes loans into Credit risk categories based on current financial information, overall debt service coverage, comparison against industry averages, historical payment experience, and current economic trends. Each loan and loan relationship is examined. This analysis includes loans with outstanding loans or commitments greater than $50,000 and excludes homogeneous loans such as home equity line of credit and residential mortgages. Loans with a classified risk rating are reviewed quarterly regardless of size or loan type. The Company uses the following definitions for classified risk ratings:
Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan at some future date.
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
Credits that are not covered by the definitions above are pass credits, which are not considered to be adversely rated. Loans listed as not rated have outstanding loans or commitments less than $50,000 or are included in groups of homogeneous loans.
Credit Quality Indicators by class of loans as of December 31, 2011 and December 31, 2010 were as follows:
December 31, 2011 |
|
Pass |
|
Special
Mention |
|
Substandard (1) |
|
Doubtful |
|
Total |
|
Commercial |
|
$ |
94,456 |
|
$ |
3,350 |
|
$ |
2,380 |
|
$ |
— |
|
$ |
100,186 |
|
Real estate - commercial |
|
|
|
|
|
|
|
|
|
|
|
Owner occupied general purpose |
|
115,175 |
|
11,695 |
|
24,036 |
|
— |
|
150,906 |
|
Owner occupied special purpose |
|
154,650 |
|
5,254 |
|
29,323 |
|
— |
|
189,227 |
|
Non-owner occupied general purpose |
|
102,178 |
|
19,292 |
|
39,311 |
|
— |
|
160,781 |
|
Non-owner occupied special purpose |
|
85,931 |
|
6,017 |
|
17,291 |
|
— |
|
109,239 |
|
Retail properties |
|
26,391 |
|
11,660 |
|
20,381 |
|
— |
|
58,432 |
|
Farm |
|
26,629 |
|
5,605 |
|
3,673 |
|
— |
|
35,907 |
|
Real estate - construction |
|
|
|
|
|
|
|
|
|
|
|
Homebuilder |
|
4,206 |
|
2,905 |
|
11,807 |
|
— |
|
18,918 |
|
Land |
|
3,755 |
|
3,032 |
|
3,214 |
|
— |
|
10,001 |
|
Commercial speculative |
|
1,306 |
|
— |
|
18,734 |
|
— |
|
20,040 |
|
All other |
|
17,448 |
|
303 |
|
4,726 |
|
— |
|
22,477 |
|
Real estate - residential |
|
|
|
|
|
|
|
|
|
|
|
Investor |
|
119,494 |
|
28,478 |
|
33,140 |
|
— |
|
181,112 |
|
Owner occupied |
|
118,658 |
|
271 |
|
19,383 |
|
— |
|
138,312 |
|
Revolving and junior leins |
|
151,928 |
|
821 |
|
5,027 |
|
— |
|
157,776 |
|
Consumer |
|
3,776 |
|
— |
|
13 |
|
— |
|
3,789 |
|
All other |
|
10,755 |
|
1,127 |
|
— |
|
— |
|
11,882 |
|
Total |
|
$ |
1,036,736 |
|
$ |
99,810 |
|
$ |
232,439 |
|
$ |
— |
|
$ |
1,368,985 |
|
December 31, 2010 |
|
Pass |
|
Special
Mention |
|
Substandard (1) |
|
Doubtful |
|
Total |
|
Commercial |
|
$ |
130,564 |
|
$ |
4,122 |
|
$ |
17,640 |
|
$ |
— |
|
$ |
152,326 |
|
Real estate - commercial |
|
|
|
|
|
|
|
|
|
|
|
Owner occupied general purpose |
|
127,527 |
|
6,633 |
|
43,797 |
|
— |
|
177,957 |
|
Owner occupied special purpose |
|
143,165 |
|
9,762 |
|
56,130 |
|
— |
|
209,057 |
|
Non-owner occupied general purpose |
|
126,316 |
|
5,414 |
|
43,682 |
|
— |
|
175,412 |
|
Non-owner occupied special purpose |
|
91,737 |
|
— |
|
24,666 |
|
— |
|
116,403 |
|
Retail properties |
|
48,661 |
|
8,304 |
|
41,973 |
|
— |
|
98,938 |
|
Farm |
|
30,812 |
|
— |
|
12,522 |
|
— |
|
43,334 |
|
Real estate - construction |
|
|
|
|
|
|
|
|
|
|
|
Homebuilder |
|
6,470 |
|
2,780 |
|
27,644 |
|
— |
|
36,894 |
|
Land |
|
9,327 |
|
3,036 |
|
21,164 |
|
— |
|
33,527 |
|
Commercial speculative |
|
15,937 |
|
567 |
|
19,980 |
|
— |
|
36,484 |
|
All other |
|
15,024 |
|
— |
|
7,672 |
|
— |
|
22,696 |
|
Real estate - residential |
|
|
|
|
|
|
|
|
|
|
|
Investor |
|
166,465 |
|
15,487 |
|
41,972 |
|
— |
|
223,924 |
|
Owner occupied |
|
132,833 |
|
545 |
|
26,494 |
|
— |
|
159,872 |
|
Revolving and junior leins |
|
168,596 |
|
599 |
|
4,644 |
|
— |
|
173,839 |
|
Consumer |
|
4,793 |
|
62 |
|
94 |
|
— |
|
4,949 |
|
All other |
|
24,376 |
|
141 |
|
— |
|
— |
|
24,517 |
|
Total |
|
$ |
1,242,603 |
|
$ |
57,452 |
|
$ |
390,074 |
|
$ |
— |
|
$ |
1,690,129 |
|
(1) The substandard credit quailty indicator includes both potential problem loans that are currently performing and nonperforming loans
Impaired loans by class of loan as of December 31, 2011 were as follows:
|
|
|
|
|
|
|
|
Year to date |
|
|
|
|
|
|
|
|
|
December 31, 2011 |
|
|
|
Recorded
Investment |
|
Unpaid
Principal
Balance |
|
Related
Allowance |
|
Average
Recorded
Investment |
|
Interest
Income
Recognized |
|
With no related allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
512 |
|
$ |
560 |
|
$ |
— |
|
$ |
271 |
|
$ |
— |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
Owner occupied general purpose |
|
4,759 |
|
6,538 |
|
— |
|
5,632 |
|
— |
|
Owner occupied special purpose |
|
12,606 |
|
15,862 |
|
— |
|
11,659 |
|
— |
|
Non-owner occupied general purpose |
|
8,301 |
|
11,734 |
|
— |
|
9,659 |
|
218 |
|
Non-owner occupied special purpose |
|
1,380 |
|
1,545 |
|
— |
|
2,563 |
|
— |
|
Retail properties |
|
4,586 |
|
5,920 |
|
— |
|
7,416 |
|
— |
|
Farm |
|
1,078 |
|
1,198 |
|
— |
|
910 |
|
— |
|
Construction |
|
|
|
|
|
|
|
|
|
|
|
Homebuilder |
|
10,672 |
|
17,643 |
|
— |
|
15,540 |
|
134 |
|
Land |
|
2,025 |
|
6,222 |
|
— |
|
5,799 |
|
— |
|
Commercial speculative |
|
9,549 |
|
27,134 |
|
— |
|
9,629 |
|
— |
|
All other |
|
4,309 |
|
6,576 |
|
— |
|
4,979 |
|
— |
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
Investor |
|
2,981 |
|
11,927 |
|
— |
|
7,594 |
|
— |
|
Owner occupied |
|
11,880 |
|
13,487 |
|
— |
|
13,552 |
|
99 |
|
Revolving and junior liens |
|
1,489 |
|
1,693 |
|
— |
|
1,231 |
|
— |
|
Consumer |
|
— |
|
— |
|
|
|
4 |
|
— |
|
Total impaired loans with no recorded allowance |
|
76,127 |
|
128,039 |
|
— |
|
96,438 |
|
451 |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
653 |
|
740 |
|
392 |
|
2,144 |
|
— |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
Owner occupied general purpose |
|
7,985 |
|
8,291 |
|
1,397 |
|
10,045 |
|
— |
|
Owner occupied special purpose |
|
3,958 |
|
5,448 |
|
407 |
|
9,616 |
|
— |
|
Non-owner occupied general purpose |
|
8,397 |
|
9,942 |
|
2,187 |
|
11,501 |
|
— |
|
Non-owner occupied special purpose |
|
434 |
|
437 |
|
98 |
|
4,375 |
|
— |
|
Retail properties |
|
11,311 |
|
12,389 |
|
3,506 |
|
12,719 |
|
— |
|
Farm |
|
496 |
|
496 |
|
28 |
|
248 |
|
— |
|
Construction |
|
|
|
|
|
|
|
|
|
|
|
Homebuilder |
|
2,204 |
|
2,816 |
|
376 |
|
4,149 |
|
— |
|
Land |
|
— |
|
— |
|
— |
|
5,522 |
|
— |
|
Commercial speculative |
|
4,668 |
|
5,371 |
|
1,683 |
|
4,920 |
|
— |
|
All other |
|
380 |
|
422 |
|
225 |
|
373 |
|
— |
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
Investor |
|
12,287 |
|
12,844 |
|
1,808 |
|
10,909 |
|
13 |
|
Owner occupied |
|
8,373 |
|
9,762 |
|
626 |
|
9,316 |
|
164 |
|
Revolving and junior liens |
|
1,352 |
|
1,656 |
|
321 |
|
969 |
|
— |
|
Consumer |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Total impaired loans with a recorded allowance |
|
62,498 |
|
70,614 |
|
13,054 |
|
86,806 |
|
177 |
|
Total impaired loans |
|
$ |
138,625 |
|
$ |
198,653 |
|
$ |
13,054 |
|
$ |
183,244 |
|
$ |
628 |
|
Impaired loans by class of loan as of December 31, 2010 were as follows:
|
|
Recorded
Investment |
|
Unpaid
Principal
Balance |
|
Related
Allowance |
|
With no related allowance recorded |
|
|
|
|
|
|
|
Commercial |
|
$ |
31 |
|
$ |
994 |
|
$ |
— |
|
Commercial real estate |
|
|
|
|
|
|
|
Owner occupied general purpose |
|
6,505 |
|
7,238 |
|
— |
|
Owner occupied special purpose |
|
10,713 |
|
12,935 |
|
— |
|
Non-owner occupied general purpose |
|
11,017 |
|
15,030 |
|
— |
|
Non-owner occupied special purpose |
|
3,745 |
|
6,621 |
|
— |
|
Retail properties |
|
10,247 |
|
15,354 |
|
— |
|
Farm |
|
741 |
|
862 |
|
— |
|
Construction |
|
|
|
|
|
|
|
Homebuilder |
|
20,409 |
|
34,569 |
|
— |
|
Land |
|
9,572 |
|
20,234 |
|
— |
|
Commercial speculative |
|
9,710 |
|
26,650 |
|
— |
|
All other |
|
5,648 |
|
8,227 |
|
— |
|
Residential |
|
|
|
|
|
|
|
Investor |
|
12,207 |
|
16,750 |
|
— |
|
Owner occupied |
|
15,224 |
|
16,749 |
|
— |
|
Revolving and junior leins |
|
973 |
|
1,010 |
|
— |
|
Consumer |
|
7 |
|
14 |
|
|
|
Total impaired loans with no recorded allowance |
|
116,749 |
|
183,237 |
|
— |
|
With an allowance recorded |
|
|
|
|
|
|
|
Commercial |
|
3,635 |
|
3,671 |
|
1,349 |
|
Commercial real estate |
|
|
|
|
|
|
|
Owner occupied general purpose |
|
12,105 |
|
14,912 |
|
1,742 |
|
Owner occupied special purpose |
|
15,274 |
|
18,886 |
|
3,933 |
|
Non-owner occupied general purpose |
|
14,606 |
|
16,946 |
|
6,063 |
|
Non-owner occupied special purpose |
|
8,315 |
|
8,615 |
|
1,560 |
|
Retail properties |
|
14,127 |
|
15,215 |
|
1,769 |
|
Farm |
|
— |
|
— |
|
— |
|
Construction |
|
|
|
|
|
|
|
Homebuilder |
|
6,093 |
|
9,291 |
|
1,020 |
|
Land |
|
11,045 |
|
11,523 |
|
978 |
|
Commercial speculative |
|
5,171 |
|
8,363 |
|
1,674 |
|
All other |
|
366 |
|
502 |
|
25 |
|
Residential |
|
|
|
|
|
|
|
Investor |
|
9,532 |
|
10,441 |
|
1,520 |
|
Owner occupied |
|
10,259 |
|
10,589 |
|
1,096 |
|
Revolving and junior leins |
|
585 |
|
664 |
|
258 |
|
Consumer |
|
— |
|
— |
|
— |
|
Total impaired loans with a recorded allowance |
|
111,113 |
|
129,618 |
|
22,987 |
|
Total Impaired Loans |
|
$ |
227,862 |
|
$ |
312,855 |
|
$ |
22,987 |
|
Troubled debt restructurings (“TDR”) are loans for which the contractual terms have been modified and both of these conditions exist: (1) there is a concession of principal or interest and (2) the borrower is experiencing financial difficulties. Loans are restructured on a case-by-case basis during the loan collection process with modifications generally initiated at the request of the borrower. These modifications may include reduction in interest rates, extension of term, deferrals of principal, and other modifications. The Bank does participate in the U.S. Department of the Treasury (the “Treasury”)’s Home Affordable Modification Program (“HAMP”) which gives qualifying homeowners an opportunity to refinance into more affordable monthly payments.
The specific allocation of the allowance for loan losses on TDRs is determined by discounting the modified cash flows at the original effective rate of the loan before modification or is based on the underlying collateral value less costs to sell, if repayment of the loan is collateral-dependent. If the resulting amount is less than the recorded book value, the Bank either establishes a valuation allowance (i.e. specific reserve) as a component of the allowance for loan losses or charges off the impaired balance if it determines that such amount is a confirmed loss. This method is used consistently for all segments of the portfolio. The allowance for loan losses also includes an allowance based on a loss migration analysis for each loan category for loans that are not individually evaluated for specific impairment. All loans charged-off, including TDRs charged-off, are factored into this calculation by portfolio segment.
TDR’s outstanding by class are summarized as follows:
|
|
As of December 31, 2011 |
|
|
|
TDR Modifications |
|
TDR Modifications |
|
|
|
Accruing interest |
|
Nonaccrual |
|
|
|
# of
contracts |
|
Recorded
investment |
|
# of
contracts |
|
Recorded
investment |
|
Troubled debt restructurings |
|
|
|
|
|
|
|
|
|
Commercial |
|
— |
|
$ |
— |
|
1 |
|
$ |
17 |
|
Real estate - commercial |
|
|
|
|
|
|
|
|
|
Owner occupied general purpose |
|
— |
|
— |
|
2 |
|
147 |
|
Owner occupied special purpose |
|
— |
|
— |
|
2 |
|
377 |
|
Non-owner occupied general purpose |
|
2 |
|
3,805 |
|
4 |
|
2,488 |
|
Non-owner occupied special purpose |
|
— |
|
— |
|
1 |
|
434 |
|
Real estate - construction |
|
|
|
|
|
|
|
|
|
Homebuilder |
|
2 |
|
2,683 |
|
6 |
|
4,474 |
|
Land |
|
— |
|
— |
|
1 |
|
737 |
|
Commercial speculative |
|
— |
|
— |
|
1 |
|
65 |
|
Real estate - residential |
|
|
|
|
|
|
|
|
|
Investor |
|
1 |
|
157 |
|
6 |
|
1,931 |
|
Owner occupied |
|
34 |
|
5,194 |
|
30 |
|
5,519 |
|
|
|
39 |
|
$ |
11,839 |
|
54 |
|
$ |
16,189 |
|
TDR’s that were modified during the period are summarized as follows:
|
|
TDR Modifications |
|
|
|
Twelve months ended 12/31/11 |
|
Accruing interest: |
|
# of
contracts |
|
Pre-modification
recorded investment |
|
Post-modification
recorded investment |
|
Troubled debt restructurings |
|
|
|
|
|
|
|
Real estate - Commercial |
|
|
|
|
|
|
|
Bifurcate(1) |
|
1 |
|
1,150 |
|
1,137 |
|
Real estate - construction |
|
|
|
|
|
|
|
Bifurcate(1) |
|
1 |
|
688 |
|
688 |
|
Real estate - residential |
|
|
|
|
|
|
|
Investor |
|
|
|
|
|
|
|
HAMP(2) |
|
1 |
|
306 |
|
157 |
|
Owner occupied |
|
|
|
|
|
|
|
HAMP(2) |
|
3 |
|
515 |
|
405 |
|
Deferral(3) |
|
2 |
|
264 |
|
265 |
|
|
|
8 |
|
$ |
2,923 |
|
$ |
2,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TDR Modifications |
|
|
|
Twelve months ended 12/31/11 |
|
Nonaccrual: |
|
# of
contracts |
|
Pre-modification
recorded investment |
|
Post-modification
recorded investment |
|
Troubled debt restructurings |
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
Deferral(3) |
|
1 |
|
41 |
|
17 |
|
Real estate - commercial |
|
|
|
|
|
|
|
Deferral(3) |
|
4 |
|
2,160 |
|
587 |
|
Bifurcate(1) |
|
1 |
|
400 |
|
376 |
|
Real estate - construction |
|
|
|
|
|
|
|
Deferral(3) |
|
1 |
|
68 |
|
66 |
|
Real estate - residential |
|
|
|
|
|
|
|
Investor |
|
|
|
|
|
|
|
Deferral(3) |
|
1 |
|
1,052 |
|
969 |
|
|
|
8 |
|
$ |
3,721 |
|
$ |
2,015 |
|
|
|
|
|
|
|
|
|
|
|
(1) Bifurcate: Refers to an “A/B” restructure separated into two notes, charging off the entire B portion of the note.
(2) HAMP: Home Affordable Modification Program
(3) Deferral: Refers to the deferral of principal
TDR’s are classified as being in default on a case-by-case when they fail to be in compliance with the modified terms. The following table presents TDR’s that defaulted during the periods shown and were restructured within the 12 month period prior to default:
|
|
TDR Default Activity |
|
|
|
Twelve Months ending 12/31/11 |
|
Troubled debt restructurings that
Subsequently Defaulted |
|
# of
contracts |
|
Pre-modification outstanding
recorded investment |
|
Commercial |
|
— |
|
— |
|
Real estate - commercial |
|
|
|
|
|
Owner occupied general purpose |
|
2 |
|
1,702 |
|
Owner occupied special purpose |
|
— |
|
— |
|
Non-owner occupied general purpose |
|
1 |
|
331 |
|
Non-owner occupied special purpose |
|
— |
|
— |
|
Retail Properties |
|
— |
|
— |
|
Farm |
|
— |
|
— |
|
Real estate - construction |
|
|
|
|
|
Homebuilder |
|
— |
|
— |
|
Land |
|
— |
|
— |
|
Commercial speculative |
|
1 |
|
68 |
|
All other |
|
— |
|
— |
|
Real estate - residential |
|
|
|
|
|
Investor |
|
2 |
|
1,248 |
|
Owner occupied |
|
11 |
|
1,803 |
|
Revolving and junior liens |
|
— |
|
— |
|
Consumer |
|
— |
|
— |
|
All other |
|
— |
|
— |
|
|
|
17 |
|
$ |
5,152 |
|
|
|
|
|
|
|
|
The Bank had no commitments to borrowers whose loans were classified as TDR’s at December 31, 2011.
Loans to principal officers, directors, and their affiliates, which are made in the ordinary course of business, were as follows at December 31:
|
|
2011 |
|
2010 |
|
Beginning balance |
|
$ |
6,171 |
|
$ |
7,584 |
|
New loans |
|
9,306 |
|
829 |
|
Repayments and other reductions |
|
(9,461 |
) |
(1,794 |
) |
Change in related party status |
|
(1,698 |
) |
(448 |
) |
Ending balance |
|
$ |
4,318 |
|
$ |
6,171 |
|
The decrease in related party loans was related to the retirement of one director. No loans to principal officers, directors, and their affiliates were past due greater than 90 days at December 31, 2011 or 2010. |