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Loans
3 Months Ended
Mar. 31, 2013
Loans [Abstract]  
Loans
(3)  Loans

The following table presents the composition of loans segregated by class of loans, as of March 31, 2013 and December 31, 2012.

 
March 31, 2013
 
 
December 31, 2012
 
Commercial and Agricultural
 
 
 
 
 
 
     Commercial
 
$
52,906
 
 
$
55,684
 
     Agricultural
 
 
7,856
 
 
 
6,211
 
 
 
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
     Commercial Construction
 
 
52,094
 
 
 
53,808
 
     Residential Construction
 
 
7,570
 
 
 
5,852
 
     Commercial
 
 
328,852
 
 
 
334,386
 
     Residential
 
 
204,658
 
 
 
203,845
 
     Farmland
 
 
48,208
 
 
 
49,057
 
 
 
 
 
 
 
 
 
Consumer and Other
 
 
 
 
 
 
 
 
     Consumer
 
 
28,379
 
 
 
29,778
 
     Other
 
 
6,297
 
 
 
8,429
 
 
 
 
 
 
 
 
 
Total Loans
 
$
736,820
 
 
$
747,050
 
 
Commercial and industrial loans are extended to a diverse group of businesses within the Company's market area.  These loans are often underwritten based on the borrower's ability to service the debt from income from the business.  Real estate construction loans often require loan funds to be advanced prior to completion of the project.  Due to uncertainties inherent in estimating construction costs, changes in interest rates and other economic conditions, these loans often pose a higher risk than other types of loans.  Consumer loans are originated at the bank level.  These loans are generally smaller loan amounts spread across many individual borrowers to help minimize risk.

Credit Quality Indicators.  As part of the ongoing monitoring of the credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grade assigned to commercial and consumer loans, (ii) the level of classified commercial loans, (iii) net charge-offs, (iv) nonperforming loans, and (v) the general economic conditions in the Company's geographic markets.
 
The Company uses a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 8. A description of the general characteristics of the grades is as follows:

·
Grades 1 and 2 – Borrowers with these assigned grades range in risk from virtual absence of risk to minimal risk. Such loans may be secured by Company-issued and controlled certificates of deposit or properly margined equity securities or bonds. Other loans comprising these grades are made to companies that have been in existence for a long period of time with many years of consecutive profits and strong equity, good liquidity, excellent debt service ability and unblemished past performance, or to exceptionally strong individuals with collateral of unquestioned value that fully secures the loans. Loans in this category fall into the "pass" classification.

·
Grades 3 and 4 – Loans assigned these "pass" risk grades are made to borrowers with acceptable credit quality and risk. The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to acceptable loans with one or more risk factors considered to be more than average.

·
Grade 5 – This grade includes "special mention" loans on management's watch list and is intended to be used on a temporary basis for pass grade loans where risk-modifying action is intended in the short-term.

·
Grade 6 – This grade includes "substandard" loans in accordance with regulatory guidelines. This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms. Loans considered to be impaired are assigned this grade, and these loans often have assigned loss allocations as part of the allowance for loan and lease losses. Generally, loans on which interest accrual has been stopped would be included in this grade.
·
Grades 7 and 8 – These grades correspond to regulatory classification definitions of "doubtful" and "loss," respectively. In practice, any loan with these grades would be for a very short period of time, and generally the Company has no loans with these assigned grades. Management manages the Company's problem loans in such a way that uncollectible loans or uncollectible portions of loans are charged off immediately with any residual, collectible amounts assigned a risk grade of 6.
 
The following table presents the loan portfolio by credit quality indicator (risk grade) as of March 31, 2013 and December 31, 2012.  Those loans with a risk grade of 1, 2, 3 or 4 have been combined in the pass column for presentation purposes.
 
March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
 
 
Special Mention
 
 
Substandard
 
 
Total Loans
 
Commercial and Agricultural
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial
 
$
47,848
 
 
$
1,821
 
 
$
3,237
 
 
$
52,906
 
     Agricultural
 
 
7,775
 
 
 
16
 
 
 
65
 
 
 
7,856
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial Construction
 
 
39,650
 
 
 
1,965
 
 
 
10,479
 
 
 
52,094
 
     Residential Construction
 
 
7,401
 
 
 
169
 
 
 
--
 
 
 
7,570
 
     Commercial
 
 
302,856
 
 
 
9,062
 
 
 
16,934
 
 
 
328,852
 
     Residential
 
 
185,951
 
 
 
10,126
 
 
 
8,581
 
 
 
204,658
 
     Farmland
 
 
44,378
 
 
 
1,278
 
 
 
2,552
 
 
 
48,208
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Consumer
 
 
27,267
 
 
 
366
 
 
 
746
 
 
 
28,379
 
     Other
 
 
6,229
 
 
 
4
 
 
 
64
 
 
 
6,297
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Loans
 
$
669,355
 
 
$
24,807
 
 
$
42,658
 
 
$
736,820
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
 
 
Special Mention
 
 
Substandard
 
 
Total Loans
 
Commercial and Agricultural
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial
 
$
49,947
 
 
$
1,418
 
 
$
4,319
 
 
$
55,684
 
     Agricultural
 
 
6,156
 
 
 
--
 
 
 
55
 
 
 
6,211
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial Construction
 
 
37,256
 
 
 
1,664
 
 
 
14,888
 
 
 
53,808
 
     Residential Construction
 
 
5,749
 
 
 
103
 
 
 
--
 
 
 
5,852
 
     Commercial
 
 
298,222
 
 
 
9,759
 
 
 
26,405
 
 
 
334,386
 
     Residential
 
 
183,222
 
 
 
11,413
 
 
 
9,210
 
 
 
203,845
 
     Farmland
 
 
45,495
 
 
 
914
 
 
 
2,648
 
 
 
49,057
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Consumer
 
 
28,840
 
 
 
293
 
 
 
645
 
 
 
29,778
 
     Other
 
 
8,351
 
 
 
9
 
 
 
69
 
 
 
8,429
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Loans
 
$
663,238
 
 
$
25,573
 
 
$
58,239
 
 
$
747,050
 
 
A loan's risk grade is assigned at the inception of the loan and is based on the financial strength of the borrower and the type of collateral.  Loan risk grades are subject to reassessment at various times throughout the year as part of the Company's ongoing loan review process.  Loans with an assigned risk grade of 6 or below and an outstanding balance of $250,000 or more are reassessed on a quarterly basis.  During this reassessment process individual reserves may be identified and placed against certain loans which are not considered impaired.

In assessing the overall economic condition of the markets in which it operates, the Company monitors the unemployment rates for its major service areas.  The unemployment rates are reviewed on a quarterly basis as part of the allowance for loan loss determination.

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due.  Generally, loans are placed on nonaccrual status if principal or interest payments become 90 days past due or when, in management's opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provision.  Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due.  Nonaccrual loans totaled $20,439 and $29,851 as of March 31, 2013 and December 31, 2012, respectively, and total recorded investment in loans past due 90 days or more and still accruing interest approximated $0 and $4, respectively.  During its review of impaired loans, the company determined the majority of its exposures on these loans were known losses.  As a result, the exposures were charged off, reducing the specific allowances on impaired loans.

The following table represents an age analysis of past due loans and nonaccrual loans, segregated by class of loans, as of March 31, 2013 and December 31, 2012:

March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accruing Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90 Days
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30-89 Days
 
 
or More
 
 
Total Accruing
 
 
Nonaccrual
 
 
 
 
 
 
 
 
Past Due
 
 
Past Due
 
 
Loans Past Due
 
 
Loans
 
 
Current Loans
 
 
Total Loans
 
Commercial and Agricultural
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial
 
$
604
 
 
$
--
 
 
$
604
 
 
$
33
 
 
$
52,269
 
 
$
52,906
 
     Agricultural
 
 
--
 
 
 
--
 
 
 
--
 
 
 
39
 
 
 
7,817
 
 
 
7,856
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial Construction
 
 
1,498
 
 
 
--
 
 
 
1,498
 
 
 
9,652
 
 
 
40,944
 
 
 
52,094
 
     Residential Construction
 
 
--
 
 
 
--
 
 
 
--
 
 
 
--
 
 
 
7,570
 
 
 
7,570
 
     Commercial
 
 
3,691
 
 
 
--
 
 
 
3,691
 
 
 
3,761
 
 
 
321,400
 
 
 
328,852
 
     Residential
 
 
3,426
 
 
 
--
 
 
 
3,426
 
 
 
4,189
 
 
 
197,043
 
 
 
204,658
 
     Farmland
 
 
1,460
 
 
 
--
 
 
 
1,460
 
 
 
2,548
 
 
 
44,200
 
 
 
48,208
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Consumer
 
 
652
 
 
 
--
 
 
 
652
 
 
 
217
 
 
 
27,510
 
 
 
28,379
 
     Other
 
 
--
 
 
 
--
 
 
 
--
 
 
 
--
 
 
 
6,297
 
 
 
6,297
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Loans
 
$
11,331
 
 
$
--
 
 
$
11,331
 
 
$
20,439
 
 
$
705,050
 
 
$
736,820
 

December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accruing Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90 Days
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30-89 Days
 
 
or More
 
 
Total Accruing
 
 
Nonaccrual
 
 
 
 
 
 
 
 
Past Due
 
 
Past Due
 
 
Loans Past Due
 
 
Loans
 
 
Current Loans
 
 
Total Loans
 
Commercial and Agricultural
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial
 
$
798
 
 
$
--
 
 
$
798
 
 
$
1,033
 
 
$
53,853
 
 
$
55,684
 
     Agricultural
 
 
28
 
 
 
--
 
 
 
28
 
 
 
39
 
 
 
6,144
 
 
 
6,211
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial Construction
 
 
1,310
 
 
 
--
 
 
 
1,310
 
 
 
14,032
 
 
 
38,466
 
 
 
53,808
 
     Residential Construction
 
 
--
 
 
 
--
 
 
 
--
 
 
 
--
 
 
 
5,852
 
 
 
5,852
 
     Commercial
 
 
3,771
 
 
 
--
 
 
 
3,771
 
 
 
6,630
 
 
 
323,985
 
 
 
334,386
 
     Residential
 
 
8,223
 
 
 
--
 
 
 
8,223
 
 
 
5,430
 
 
 
190,192
 
 
 
203,845
 
     Farmland
 
 
140
 
 
 
--
 
 
 
140
 
 
 
2,413
 
 
 
46,504
 
 
 
49,057
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Consumer
 
 
637
 
 
 
4
 
 
 
641
 
 
 
256
 
 
 
28,881
 
 
 
29,778
 
     Other
 
 
5
 
 
 
--
 
 
 
5
 
 
 
18
 
 
 
8,406
 
 
 
8,429
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Loans
 
$
14,912
 
 
$
4
 
 
$
14,916
 
 
$
29,851
 
 
$
702,283
 
 
$
747,050
 
 
The following table details impaired loan data as of March 31, 2013:
 
March 31, 2013
Unpaid
Contractual
Average
Interest
Interest
Principal
Impaired
Related
Recorded
Income
Income
Balance
Balance
Allowance
Investment
Recognized
Collected
With No Related Allowance Recorded
     Commercial
$
264
$
122
$
--
$
122
$
3
$
4
     Agricultural
39
39
--
39
--
--
     Commercial Construction
9,002
4,962
--
4,962
4
5
     Residential Construction
--
--
--
--
--
--
     Commercial Real Estate
15,405
15,331
--
15,331
102
129
     Residential Real Estate
2,726
2,382
--
2,382
10
18
     Farmland
2,590
2,548
--
2,548
(1
)
3
     Consumer
229
217
--
217
--
2
     Other
--
--
--
--
--
--
30,255
25,601
--
25,601
118
161
With An Allowance Recorded
     Commercial
1,465
1,465
456
1,465
20
17
     Agricultural
--
--
--
--
--
--
     Commercial Construction
5,339
4,690
1,493
4,690
--
1
     Residential Construction
--
--
--
--
--
--
     Commercial Real Estate
10,077
9,917
1,426
9,917
73
91
     Residential Real Estate
6,959
5,916
1,118
5,916
40
36
     Farmland
--
--
--
--
--
--
     Consumer
--
--
--
--
--
--
     Other
--
--
--
--
--
--
23,840
21,988
4,493
21,988
133
145
Total
     Commercial
1,729
1,587
456
1,587
23
21
     Agricultural
39
39
--
39
--
--
     Commercial Construction
14,341
9,652
1,493
9,652
4
6
     Residential Construction
--
--
--
--
--
--
     Commercial Real Estate
25,482
25,248
1,426
25,248
175
220
     Residential Real Estate
9,685
8,298
1,118
8,298
50
54
     Farmland
2,590
2,548
--
2,548
(1
)
3
     Consumer
229
217
--
217
--
2
     Other
--
--
--
--
--
--
$
54,095
$
47,589
$
4,493
$
47,589
$
251
$
306

The following table details impaired loan data as of December 31, 2012:
 
December 31, 2012
Unpaid
Contractual
Average
Interest
Interest
Principal
Impaired
Related
Recorded
Income
Income
Balance
Balance
Allowance
Investment
Recognized
Collected
With No Related Allowance Recorded
     Commercial
$
1,508
$
1,042
$
--
$
1,053
$
27
$
28
     Agricultural
39
39
--
58
--
--
     Commercial Construction
10,625
6,415
--
9,194
27
52
     Residential Construction
--
--
--
--
--
--
     Commercial Real Estate
16,566
15,506
--
26,482
430
421
     Residential Real Estate
4,450
4,132
--
3,096
89
123
     Farmland
2,829
2,413
--
2,326
43
55
     Consumer
297
255
--
228
10
13
     Other
18
18
--
24
1
1
36,332
29,820
--
42,461
627
693
With An Allowance Recorded
     Commercial
1,493
1,493
463
943
92
88
     Agricultural
--
--
--
--
--
--
     Commercial Construction
8,267
7,618
1,733
10,534
--
--
     Residential Construction
--
--
--
--
--
--
     Commercial Real Estate
12,759
12,745
1,236
6,399
384
366
     Residential Real Estate
5,515
4,422
840
4,288
145
117
     Farmland
--
--
--
65
--
--
     Consumer
--
--
--
--
--
--
     Other
--
--
--
--
--
--
28,034
26,278
4,272
22,229
621
571
Total
     Commercial
3,001
2,535
463
1,996
119
116
     Agricultural
39
39
--
58
--
--
     Commercial Construction
18,892
14,033
1,733
19,728
27
52
     Residential Construction
--
--
--
--
--
--
     Commercial Real Estate
29,325
28,251
1,236
32,881
814
787
     Residential Real Estate
9,965
8,554
840
7,384
234
240
     Farmland
2,829
2,413
--
2,391
43
55
     Consumer
297
255
--
228
10
13
     Other
18
18
--
24
1
1
$
64,366
$
56,098
$
4,272
$
64,690
$
1,248
$
1,264

The following table details impaired loan data as of March 31, 2012:
 
March 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
Interest
 
 
Interest
 
 
Impaired
 
 
Related
 
 
Recorded
 
 
Income
 
 
Income
 
 
Balance
 
 
Allowance
 
 
Investment
 
 
Recognized
 
 
Collected
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With No Related Allowance Recorded
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial
 
$
1,679
 
 
$
--
 
 
$
1,679
 
 
$
25
 
 
$
26
 
     Agricultural
 
 
39
 
 
 
--
 
 
 
39
 
 
 
--
 
 
 
--
 
     Commercial Construction
 
 
12,463
 
 
 
--
 
 
 
12,463
 
 
 
1
 
 
 
4
 
     Residential Construction
--
--
--
--
--
     Commercial Real Estate
 
 
32,018
 
 
 
--
 
 
 
32,018
 
 
 
300
 
 
 
296
 
     Residential Real Estate
 
 
2,407
 
 
 
--
 
 
 
2,407
 
 
 
23
 
 
 
18
 
     Farmland
 
 
2,297
 
 
 
--
 
 
 
2,297
 
 
 
32
 
 
 
--
 
     Consumer
 
 
212
 
 
 
--
 
 
 
212
 
 
 
2
 
 
 
3
 
     Other
 
 
44
 
 
 
--
 
 
 
44
 
 
 
--
 
 
 
--
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
51,159
 
 
 
--
 
 
 
51,159
 
 
 
383
 
 
 
347
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With An Allowance Recorded
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial
 
 
310
 
 
 
304
 
 
 
310
 
 
 
2
 
 
 
5
 
     Agricultural
 
 
--
 
 
 
--
 
 
 
--
 
 
 
--
 
 
 
--
 
     Commercial Construction
 
 
10,942
 
 
 
2,755
 
 
 
10,942
 
 
 
(9
)
 
 
--
 
     Residential Construction
--
--
--
--
--
     Commercial Real Estate
 
 
3,647
 
 
 
1,023
 
 
 
3,647
 
 
 
20
 
 
 
20
 
     Residential Real Estate
 
 
4,045
 
 
 
788
 
 
 
4,045
 
 
 
25
 
 
 
26
 
     Farmland
 
 
260
 
 
 
12
 
 
 
260
 
 
 
--
 
 
 
--
 
     Consumer
 
 
--
 
 
 
--
 
 
 
--
 
 
 
--
 
 
 
--
 
     Other
 
 
--
 
 
 
--
 
 
 
--
 
 
 
--
 
 
 
--
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19,204
 
 
 
4,882
 
 
 
19,204
 
 
 
38
 
 
 
51
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial
 
 
1,989
 
 
 
304
 
 
 
1,989
 
 
 
27
 
 
 
31
 
     Agricultural
 
 
39
 
 
 
--
 
 
 
39
 
 
 
--
 
 
 
--
 
     Commercial Construction
 
 
23,405
 
 
 
2,755
 
 
 
23,405
 
 
 
(8
)
 
 
4
 
     Residential Construction
--
--
--
--
--
     Commercial Real Estate
 
 
35,665
 
 
 
1,023
 
 
 
35,665
 
 
 
320
 
 
 
316
 
     Residential Real Estate
 
 
6,452
 
 
 
788
 
 
 
6,452
 
 
 
48
 
 
 
44
 
     Farmland
 
 
2,557
 
 
 
12
 
 
 
2,557
 
 
 
32
 
 
 
--
 
     Consumer
 
 
212
 
 
 
--
 
 
 
212
 
 
 
2
 
 
 
3
 
     Other
 
 
44
 
 
 
--
 
 
 
44
 
 
 
--
 
 
 
--
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
70,363
 
 
$
4,882
 
 
$
70,363
 
 
$
421
 
 
$
398
 
 
Troubled Debt Restructurings (TDRs) are troubled loans on which the original terms of the loan have been modified in favor of the borrower due to deterioration in the borrower's financial condition.  Each potential loan modification is reviewed individually and the terms of the loan are modified to meet the borrower's specific circumstances at a point in time.  Not all loan modifications are TDRs.  Loan modifications are reviewed and approved by the Company's senior lending staff, who then determine whether the loan meets the criteria for a TDR.  Generally, the types of concessions granted to borrowers that are evaluated in determining whether a loan is classified as a TDR include:

·  
Interest rate reductions – Occur when the stated interest rate is reduced to a nonmarket rate or a rate the borrower would not be able to obtain elsewhere under similar circumstances.

·  
Amortization or maturity date changes – Result when the amortization period of the loan is extended beyond what is considered a normal amortization period for loans of similar type with similar collateral.

·  
Principal reductions – These are often the result of commercial real estate loan workouts where two new notes are created.  The primary note is underwritten based upon our normal underwriting standards and is structured so that the projected cash flows are sufficient to repay the contractual principal and interest of the newly restructured note.  The terms of the secondary note vary by situation and often involve that note being charged-off, or the principal and interest payments being deferred until after the primary note has been repaid.  In situations where a portion of the note is charged-off during modification there is often no specific reserve allocated to those loans.  This is due to the fact that the amount of the charge-off usually represents the excess of the original loan balance over the collateral value and the Company has determined there is no additional exposure on those loans.

As discussed in Note 1, Summary of Significant Accounting Policies, once a loan is identified as a TDR, it is accounted for as an impaired loan.  The Company had no unfunded commitments to lend to a customer that has a troubled debt restructured loan as of March 31, 2013.  The following tables present the number of loan contracts restructured during the three month period ended March 31, 2013.  It shows the pre- and post-modification recorded investment as well as the number of contracts and the recorded investment for those TDRs modified during the previous twelve months which subsequently defaulted during the period.  Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes 90 days past due.
 
 
Three Months Ending March 31, 2013
 
 
Three Months Ending March 31, 2012
 
Troubled Debt Restructurings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
# of Contracts
 
 
Pre-Modification
 
 
Post-Modification
 
 
# of Contracts
 
 
Pre-Modification
 
 
Post-Modification
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
1
 
 
$
84
 
 
$
81
 
 
 
1
 
 
$
57
 
 
$
57
 
Residential RE
 
 
2
 
 
 
1,024
 
 
 
1,001
 
 
 
1
 
 
 
227
 
 
 
224
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Loans
 
 
3
 
 
$
1,108
 
 
$
1,082
 
 
 
2
 
 
$
284
 
 
$
281
 
 
 
Three Months Ending March 31, 2013
 
 
Three Months Ending March 31, 2012
 
Troubled Debt Restructurings
 
 
 
 
 
 
 
 
 
 
 
 
That Subsequently Defaulted
 
 
 
 
 
 
 
 
 
 
 
 
 
# of Contracts
 
 
Recorded Investment
 
 
# of Contracts
 
 
Recorded Investment
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Construction
 
 
----
 
 
$
----
 
 
 
1
 
 
$
64
 
Residential RE
 
 
----
 
 
 
----
 
 
 
1
 
 
 
50
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Loans
 
 
----
 
 
$
----
 
 
 
2
 
 
$
114
 
 
At March 31, 2013 all restructured loans were performing as agreed.