Loans by Type (Tables)

9 Months Ended

Sep. 30, 2013

A summary of loan categories is as follows:

	September 30,		December 31,
*(In thousands)*	2013		2012
Commercial and industrial	$	155,388	$	160,862
Real estate
Commercial:
Mortgage		125,789		134,843
Construction		9,073		7,025
Church, church-related:
Mortgage		337,521		368,118
Construction		6,490		16,450
Other		775		435
Total loans	$	635,036	$	687,733

Schedule of the Aging Loans by Loan Categories

The following table presents the aging of loans by loan categories at September 30, 2013 and December 31, 2012:

	Performing						Nonperforming
							90 Days
			30-59		60-89		and		Non-		Total
*(In thousands)*	Current		Days		Days		Over		accrual		Loans
September 30, 2013
Commercial and industrial	$	155,317	$	-	$	-	$	-	$	71	$	155,388
Real estate
Commercial:
Mortgage		125,307		-		-		-		482		125,789
Construction		9,073		-		-		-		-		9,073
Church, church-related:
Mortgage		336,166		-		-		-		1,355		337,521
Construction		6,490		-		-		-		-		6,490
Other		775		-		-		-		-		775
Total	$	633,128	$	-	$	-	$	-	$	1,908	$	635,036
December 31, 2012
Commercial and industrial	$	159,423	$	-	$	-	$	-	$	1,439	$	160,862
Real estate
Commercial:
Mortgage		129,884		-		-		-		4,959		134,843
Construction		7,025		-		-		-		-		7,025
Church, church-related:
Mortgage		367,944		-		-		-		174		368,118
Construction		16,450		-		-		-		-		16,450
Other		435		-		-		-		-		435
Total	$	681,161	$	-	$	-	$	-	$	6,572	$	687,733

Schedule of Credit Exposure of the Loan Portfolio

The following table presents the credit exposure of the loan portfolio by internally assigned credit grade as of September 30, 2013 and December 31, 2012:

	Loans		Performing		Nonperforming
	Subject to		Loans Subject to		Loans Subject
	Normal		Special		to Special
*(In thousands)*	Monitoring¹		Monitoring ²		Monitoring ²			Total Loans
September 30, 2013
Commercial and industrial	$	152,188	$	3,129	$	71		$	155,388
Real estate
Commercial:
Mortgage		117,491		7,816		482			125,789
Construction		9,073		-		-			9,073
Church, church-related:
Mortgage		334,062		2,104		1,355			337,521
Construction		6,490		-		-			6,490
Other		775		-		-			775
Total	$	620,079	$	13,049	$	1,908		$	635,036
December 31, 2012
Commercial and industrial	$	155,838	$	3,585	$	1,439		$	160,862
Real estate
Commercial:
Mortgage		123,315		6,569		4,959	³		134,843
Construction		7,025		-		-			7,025
Church, church-related:
Mortgage		366,366		1,578		174			368,118
Construction		16,450		-		-			16,450
Other		435		-		-			435
Total	$	669,429	$	11,732	$	6,572		$	687,733

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 obligations.
²	Loans subject to special monitoring possess some credit deficiency or potential weakness which requires a high level of management attention.
³	In February 2013, a payment of $4,115,000 was received for one nonaccrual loan with a balance of $4,198,000. $83,000 was charged off.

Schedule of Recorded Investment and Unpaid Principal Balance for Impaired Loans

The following table presents the recorded investment and unpaid principal balance for impaired loans at September 30, 2013 and December 31, 2012:

				Unpaid			Related
	Recorded			Principal			Allowance for
*(In thousands)*	Investment			Balance			Loan Losses
September 30, 2013
Commercial and industrial:
Nonaccrual	$	71		$	71		$	14
Troubled debt restructurings still accruing		-			-			-
Real estate
Commercial - Mortgage:
Nonaccrual		482			482			89
Past due 90 days or more and still accruing		-			-			-
Troubled debt restructurings still accruing		-			-			-
Church - Mortgage:
Nonaccrual		1,355			1,355			234
Total impaired loans	$	1,908		$	1,908		$	337
December 31, 2012
Commercial and industrial:
Nonaccrual	$	1,439		$	1,439		$	657
Troubled debt restructurings still accruing		-			-			-
Real estate
Commercial - Mortgage:
Nonaccrual		4,959	*		4,959	*		660
Past due 90 days or more and still accruing		-			-			-
Troubled debt restructurings still accruing		-			-			-
Church - Mortgage:
Nonaccrual		174			174			87
Total impaired loans	$	6,572		$	6,572		$	1,404

*	In February 2013, a payment of $4,115,000 was received for one nonaccrual loan with a balance of $4,198,000. $83,000 was charged off.

Summary of the Allowance for Loan Losses

A summary of the activity in the allowance for loan losses from December 31, 2012 to September 30, 2013 is as follows:

	December 31,		Charge-							September 30,
*(In thousands)*	2012		Offs		Recoveries		Provision			2013
Commercial and industrial	$	3,192	$	1,296	$	24	$	892		$	2,812
Real estate
Commercial:
Mortgage		3,784		233		33		(173	)		3,411
Construction		137		-		-		79			216
Church, church-related:
Mortgage		4,903		-		278		(51	)		5,130
Construction		333		-		-		(252	)		81
Other		8		-		-		5			13
Total	$	12,357	$	1,529	$	335	$	500		$	11,663