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Loans by Type
 6 Months Ended
Jun. 30, 2014
Loans by Type [Abstract]  
Loans by Type

Note 6 - Loans by Type

A summary of loan categories is as follows:

    June 30,   December 31,
(In thousands)       2014       2013
Commercial and industrial   $      202,255   $ 171,304
Real estate            
       Commercial:            
                     Mortgage     120,536     128,358
                     Construction     6,712     6,632
       Church, church-related:            
                     Mortgage     313,793     326,832
                     Construction     14,061     9,817
Industrial Revenue Bond     8,266     9,167
Other     80     67
              Total loans   $ 665,703   $ 652,177

The following table presents the aging of loans by loan categories at June 30, 2014 and December 31, 2013:

    Performing   Nonperforming      
                      90 Days            
          30-59   60-89   and   Non-   Total
(In thousands)       Current       Days       Days       Over       accrual       Loans
June 30, 2014                                    
Commercial and industrial   $      202,255   $      -   $      -   $         -   $      -   $      202,255
Real estate                                    
       Commercial:                                    
              Mortgage     120,168     -     -     -     368     120,536
              Construction     6,712     -     -     -     -     6,712
       Church, church-related:                                    
              Mortgage     312,642     -     -     -     1,151     313,793
              Construction     14,061     -     -     -     -     14,061
Industrial Revenue Bond     8,266     -     -     -     -     8,266
Other     80     -     -     -     -     80
Total   $ 664,184   $ -   $ -   $ -   $ 1,519   $ 665,703
December 31, 2013                                    
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 credit exposure of the loan portfolio by internally assigned credit grade as of June 30, 2014 and 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
June 30, 2014                        
Commercial and industrial   $ 198,643   $ 3,612   $ -   $ 202,255
Real estate                        
Commercial:                        
              Mortgage     103,658     16,510     368     120,536
              Construction     6,712     -     -     6,712
       Church, church-related:                        
              Mortgage     312,126     516     1,151     313,793
              Construction     14,061     -     -     14,061
Industrial Revenue Bond     8,266     -     -     8,266
Other     80     -     -     80
Total   $ 643,546   $ 20,638   $ 1,519   $ 665,703
December 31, 2013                        
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 obligations.
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 June 30, 2014 and December 31, 2013, 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 3. There were no loans delinquent 90 days or more and still accruing interest at June 30, 2014 and December 31, 2013. There were no loans classified as troubled debt restructuring at June 30, 2014 and December 31, 2013.

There were no foreclosed loans recorded as other real estate owned (included in other assets) as of June 30, 2014, and December 31, 2013.

The following table presents the recorded investment and unpaid principal balance for impaired loans at June 30, 2014 and December 31, 2013:


          Unpaid   Related
    Recorded   Principal   Allowance for
(In thousands)       Investment       Balance       Loan Losses
June 30, 2014                  
Commercial and industrial:                  
              Nonaccrual   $ -   $ -   $ -
Real estate                  
       Commercial - Mortgage:                  
              Nonaccrual     368     368     -
       Church - Mortgage:                  
              Nonaccrual     1,151     1,151     171
Total impaired loans   $ 1,519   $ 1,519   $ 171
December 31, 2013                  
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

A summary of the activity in the allowance for loan losses from December 31, 2013 to June 30, 2014 is as follows:

    December 31,   Charge-                 June 30,
(In thousands)       2013       Offs       Recoveries       Provision       2014
Commercial and industrial   $ 3,036   $ 3   $ 30   $ 18     $      3,081
Real estate                                
       Commercial:                                
              Mortgage     3,946     -     221     335       4,502
              Construction     151     -     -     (8 )     143
       Church, church-related:                                
              Mortgage     4,354     76     2     (384 )     3,896
              Construction     124     -     -     49       173
Industrial Revenue Bond     68     -     -     (11 )     57
Other     -     -     -     1       1
Total   $ 11,679   $ 79   $ 253   $ 0     $ 11,853