Loans by Type

9 Months Ended

Sep. 30, 2012

Loans By Type Disclosure [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 6 – Loans by Type

A summary of loan categories is as follows:

	September 30,		December 31,
(In thousands)	2012		2011
Commercial and industrial	$	158,050	$	136,916
Real estate
Commercial:
Mortgage		138,088		140,848
Construction		10,133		9,067
Church, church-related:
Mortgage		360,013		347,726
Construction		14,748		36,497
Other		142		511
Total loans	$	681,174	$	671,565

The following table presents the aging of loans by loan categories at September 30, 2012 and December 31, 2011:

	Performing						Nonperforming
							90 Days
			30-59		60-89		and		Non		Total
(In thousands)	Current		Days		Days		Over		Accrual		Loans
September 30, 2012
Commercial and industrial	$	158,009	$	—	$	—	$	—	$	41	$	158,050
Real estate
Commercial:
Mortgage		133,417		19		—		—		4,652		138,088
Construction		10,133		—		—		—		—		10,133
Church, church-related:
Mortgage		358,629		1,184		—		—		200		360,013
Construction		14,748		—		—		—		—		14,748
Other		142		—		—		—		—		142
Total	$	675,078	$	1,203	$	—	$	—	$	4,893	$	681,174
December 31, 2011
Commercial and industrial	$	136,850	$	—	$	10	$	—	$	56	$	136,916
Real estate
Commercial:
Mortgage		139,249		137		—		29		1,433		140,848
Construction		9,067		—		—		—		—		9,067
Church, church-related:
Mortgage		347,506		—		—		—		220		347,726
Construction		36,497		—		—		—		—		36,497
Other		511		—		—		—		—		511
Total	$	669,680	$	137	$	10	$	29	$	1,709	$	671,565

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of September 30, 2012 and December 31, 2011:

	Loans		Performing		Nonperforming
	Subject to		Loans Subject to		Loans Subject to
	Normal		Special		Special		Total
(In thousands)	Monitoring1		Monitoring2		Monitoring2		Loans
September 30, 2012
Commercial and industrial	$	153,816	$	4,193	$	41	$	158,050
Real estate
Commercial:
Mortgage		126,473		6,963		4,652		138,088
Construction		10,133		—		—		10,133
Church, church-related:
Mortgage		357,594		2,219		200		360,013
Construction		14,748		—		—		14,748
Other		142		—		—		142
Total	$	662,906	$	13,375	$	4,893	$	681,174
December 31, 2011
Commercial and industrial	$	132,475	$	4,385	$	56	$	136,916
Real estate
Commercial:
Mortgage		125,850		13,536		1,462		140,848
Construction		9,067		—		—		9,067
Church, church-related:
Mortgage		336,727		10,779		220		347,726
Construction		36,497		—		—		36,497
Other		511		—		—		511
Total	$	641,127	$	28,700	$	1,738	$	671,565

1	Loans subject to normal monitoring involve borrowers of acceptable-to-strong credit quality and risk, who have the apparent ability to satisfy their loan obligation.
2	Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.

Impaired loans consist primarily of nonaccrual loans, loans greater than 90 days past due and still accruing interest and troubled debt restructurings, both performing and nonperforming. Troubled debt restructuring involves the granting of a concession to a borrower experiencing financial difficulty resulting in the modification of terms of the loan, such as changes in payment schedule or interest rate. Management measures impairment in accordance with FASB ASC 310, “Allowance for Credit Losses.” At September 30, 2012 and December 31, 2011, all impaired loans were evaluated based on the fair value of the collateral. The fair value of the collateral is based upon an observable market price or current appraised value and therefore, the Company classifies these assets as nonrecurring Level 2. Loans delinquent 90 days or more and still accruing interest at September 30, 2012 and December 31, 2011 were $0 and $29,000, respectively. Loans classified as troubled debt restructuring were $0 and $4,479,000 at September 30, 2012 and December 31, 2011, respectively.

There are two foreclosed loans with a book value of $1,322,000 which have been recorded as other real estate owned (included in other assets) as of September 30, 2012 and there were two foreclosed loans with a book value of $1,689,000 as of December 31, 2011. During the three months ended September 30, 2012, one property located in St. Louis County, Missouri, was sold resulting in a net gain of $2,000 and a property relating to a loan secured by commercial real estate, also located in St. Louis County, Missouri, was added through foreclosure.

The following table presents the recorded investment and unpaid principal balance for impaired loans at September 30, 2012 and December 31, 2011:

			Unpaid		Related
	Recorded		Principal		Allowance for
(In thousands)	Investment		Balance		Loan Losses
September 30, 2012
Commercial and industrial:
Nonaccrual	$	41	$	41	$	21
Troubled debt restructurings still accruing		—		—		—
Real estate
Commercial – Mortgage:
Nonaccrual		4,652		4,652		465
Past due 90 days or more and still accruing		—		—		—
Troubled debt restructurings still accruing		—		—		—
Church – Mortgage:
Nonaccrual		200		200		115
Total impaired loans	$	4,893	$	4,893	$	601
December 31, 2011
Commercial and industrial:
Nonaccrual	$	56	$	56	$	28
Troubled debt restructurings still accruing		83		83		8
Real estate
Commercial – Mortgage:
Nonaccrual		1,433		1,433		149
Past due 90 days or more and still accruing		29		29		—
Troubled debt restructurings still accruing		4,396		4,396		766
Church – Mortgage:
Nonaccrual		220		220		115
Total impaired loans	$	6,217	$	6,217	$	1,066

A summary of the activity in the allowance for loan losses from December 31, 2011 to September 30, 2012 is as follows:

	December 31,		Charge-							September 30,
(In thousands)	2011		Offs		Recoveries		Provision			2012
Commercial and industrial	$	2,594	$	—	$	109	$	(126	)	$	2,577
Real estate
Commercial:
Mortgage		4,776		1,542		—		1,076			4,310
Construction		167		—		—		39			206
Church, church-related:
Mortgage		4,797		—		—		107			4,904
Construction		616		—		—		(294	)		322
Other		4		—		—		(2	)		2
Total	$	12,954	$	1,542	$	109	$	800		$	12,321