Loans (Tables)

12 Months Ended

Dec. 31, 2013

A summary of loan categories is as follows:

	December 31,
(In thousands)	2013		2012
Commercial and industrial	$	171,304	160,862
Real estate
Commercial:
Mortgage		128,358	134,843
Construction		6,632	7,025
Church, church-related:
Mortgage		326,832	368,118
Construction		9,817	16,450
Industrial Revenue Bond		9,167	-
Other		67	435
Total loans	$	652,177	687,733

Schedule of the Aging Loans by Loan Categories

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

	Performing						Nonperforming
							90 Days
			30-59		60-89		and		Non		Total
(In thousands)	Current		Days		Days		Over		Accrual		Loans
Commercial and industrial	$	171,293	$	-	$	-	$	-	$	11	$	171,304
Real estate
Commercial:
Mortgage		127,879				-		-		479		128,358
Construction		6,632		-		-		-		-		6,632
Church, church-related:
Mortgage		325,091		434		-		-		1,307		326,832
Construction		9,817		-		-		-		-		9,817
Industrial Revenue Bond		9,167		-		-		-		-		9,167
Other		67		-		-		-		-		67
Total	$	649,946	$	434	$	-	$	-	$	1,797	$	652,177

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

	Performing						Nonperforming
							90 Days
			30-59		60-89		and		Non		Total
(In thousands)	Current		Days		Days		Over		Accrual		Loans
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
Industrial Revenue Bond		-		-		-		-		-		-
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 December 31, 2013:

	Loans		Performing		Nonperforming
	Subject to		Loans Subject to		Loans Subject
	Normal		Special		to Special
(In thousands)	Monitoring¹		Monitoring ²		Monitoring ²		Total Loans
Commercial and industrial	$	167,878	$	3,415	$	11	$	171,304
Real estate
Commercial:
Mortgage		119,521		8,358		479		128,358
Construction		6,632		-		-		6,632
Church, church-related:
Mortgage		323,291		2,234		1,307		326,832
Construction		9,817		-		-		9,817
Industrial Revenue Bond		9,167		-		-		9,167
Other		67		-		-		67
Total	$	636,373	$	14,007	$	1,797	$	652,177

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.

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

	Loans		Performing		Nonperforming
	Subject to		Loans Subject to		Loans Subject to
	Normal		Special		Special			Total
(In thousands)	Monitoring¹		Monitoring ²		Monitoring ²			Loans
Commercial and industrial	$	155,838	$	3,585	$	1,439		$	160,862
Real estate
Commercial:
Mortgage		123,315		6,569		4,959	*		134,843
Construction		7,025		-		-			7,025
Church, church-related:
Mortgage		366,366		1,578		174			368,118
Construction		16,450		-		-			16,450
Industrial Revenue Bond		-		-		-			-
Other		435		-		-			435
Total	$	669,429	$	11,732	$	6,572		$	687,733

*	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.
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.

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 December 31, 2013:

					Related
			Unpaid		Allowance
	Recorded		Principal		for Loan
(In thousands)	Investment		Balance		Losses
Commercial and industrial:
Nonaccrual	$	11	$	11	$	6
Real estate
Commercial - Mortgage:
Nonaccrual		479		479		89
Church - Mortgage:
Nonaccrual		1,307		1,307		223
Total impaired loans	$	1,797	$	1,797	$	318

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

							Related
				Unpaid			Allowance
	Recorded			Principal			for Loan
(In thousands)	Investment			Balance			Losses
Commercial and industrial:
Nonaccrual	$	1,439		$	1,439		$	657
Real estate
Commercial - Mortgage:
Nonaccrual		4,959	*		4,959	*		660
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 is as follows:

	December 31,		Charge-							December 31,
(In thousands)	2012		Offs		Recoveries		Provision			2013
Commercial and industrial	$	3,192	$	1,307	$	47	$	1,104		$	3,036
Real estate
Commercial:
Mortgage		3,784		233		35		360			3,946
Construction		137		-		-		14			151
Church, church-related:
Mortgage		4,903		-		280		(829	)		4,354
Construction		333		-		-		(209	)		124
Industrial Revenue Bond		-		-		-		68			68
Other		8		-		-		(8	)		-
Total	$	12,357	$	1,540	$	362	$	500		$	11,679