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LOANS
 6 Months Ended
Jun. 30, 2012
Receivables [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
4. LOANS

 

Loans are summarized as follows:

 

    June 30,     December 31,  
(Dollars in thousands)   2012     2011  
             
Commercial   $ 24,865     $ 30,135  
Commercial Real Estate:                
Land Development     29,772       35,924  
Building Lots     2,742       3,880  
Other     349,301       418,981  
Real estate construction     3,950       4,925  
Residential mortgage     143,273       151,866  
Consumer and home equity     64,197       69,971  
Indirect consumer     19,500       21,892  
      637,600       737,574  
Less:                
Loans held for sale in probable branch divestiture     (101,325 )     (46,112 )
Net deferred loan origination fees     (109 )     (209 )
Allowance for loan losses     (15,300 )     (17,181 )
      (116,734 )     (63,502 )
                 
Net Loans   $ 520,866     $ 674,072  

 

The following tables present the activity in the allowance for loan losses by portfolio segment for the quarter and six months ending June 30, 2012 and 2011:

 

Three Months Ended                                          
June 30, 2012         Commercial     Real Estate     Residential     Consumer &     Indirect        
    Commercial     Real Estate     Construction     Mortgage     Home Equity     Consumer     Total  
(Dollars in thousands)                                          
Allowance for loan losses:                                                        
Beginning Balance   $ 1,723     $ 13,628     $ 103     $ 882     $ 643     $ 350     $ 17,329  
Provision for loan losses     (255 )     1,189       (14 )     (34 )     23       6       915  
Allowance associated with probable branch divestitures     (25 )     (581 )     -       (14 )     (62 )     -       (682 )
Charge-offs     -       (2,191 )     -       (31 )     (102 )     (55 )     (2,379 )
Recoveries     40       35       -       -       23       19       117  
Total ending allowance balance   $ 1,483     $ 12,080     $ 89     $ 803     $ 525     $ 320     $ 15,300  

 

Six Months Ended                                          
June 30, 2012         Commercial     Real Estate     Residential     Consumer &     Indirect        
    Commercial     Real Estate     Construction     Mortgage     Home Equity     Consumer     Total  
(Dollars in thousands)                                          
Allowance for loan losses:                                                        
Beginning Balance   $ 1,422     $ 13,727     $ 103     $ 922     $ 610     $ 397     $ 17,181  
Provision for loan losses     222       1,687       (14 )     (52 )     98       (14 )     1,927  
Allowance associated with probable branch divestitures     (25 )     (581 )     -       (6 )     (57 )     -       (669 )
Charge-offs     (187 )     (2,804 )     -       (62 )     (176 )     (99 )     (3,328 )
Recoveries     51       51       -       1       50       36       189  
Total ending allowance balance   $ 1,483     $ 12,080     $ 89     $ 803     $ 525     $ 320     $ 15,300  

  

Three Months Ended                                          
June 30, 2011         Commercial     Real Estate     Residential     Consumer &     Indirect        
    Commercial     Real Estate     Construction     Mortgage     Home Equity     Consumer     Total  
(Dollars in thousands)                                          
Allowance for loan losses:                                                        
Beginning Balance   $ 1,679     $ 20,536     $ 104     $ 776     $ 742     $ 754     $ 24,591  
Provision for loan losses     (225 )     9,655       -       131       (29 )     (15 )     9,517  
Charge-offs     (100 )     (16,068 )     (9 )     (205 )     (38 )     (56 )     (16,476 )
Recoveries     17       10       -       -       15       34       76  
Total ending allowance balance   $ 1,371     $ 14,133     $ 95     $ 702     $ 690     $ 717     $ 17,708  

 

Six Months Ended                                          
June 30, 2011         Commercial     Real Estate     Residential     Consumer &     Indirect        
    Commercial     Real Estate     Construction     Mortgage     Home Equity     Consumer     Total  
(Dollars in thousands)                                          
Allowance for loan losses:                                                        
Beginning Balance   $ 1,657     $ 18,595     $ 158     $ 751     $ 708     $ 796     $ 22,665  
Provision for loan losses     (203 )     13,006       -       174       55       (50 )     12,982  
Charge-offs     (142 )     (17,684 )     (63 )     (224 )     (136 )     (87 )     (18,336 )
Recoveries     59       216       -       1       63       58       397  
Total ending allowance balance   $ 1,371     $ 14,133     $ 95     $ 702     $ 690     $ 717     $ 17,708  

 

We did not implement any changes to our allowance related accounting policies or methodology during the current period.

 

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of June 30, 2012 and 2011 and December 31, 2011:

 

June 30, 2012         Commercial     Real Estate     Residential     Consumer &     Indirect        
    Commercial     Real Estate     Construction     Mortgage     Home Equity     Consumer     Total  
(Dollars in thousands)                                          
Allowance for loan losses:                                                        
Ending allowance balance attributable to loans:                                                        
Individually evaluated for impairment   $ 332     $ 4,609       -     $ 383     $ 126     $ 6     $ 5,456  
Collectively evaluated for impairment     1,151       7,471       89       420       399       314       9,844  
Loans held for sale     -       -       -       -       -       -       -  
                                                         
Total ending allowance balance   $ 1,483     $ 12,080       89     $ 803     $ 525     $ 320     $ 15,300  
                                                         
Loans:                                                        
Loans individually evaluated for impairment   $ 1,396     $ 56,493     $ -     $ 1,098     $ 302     $ 38     $ 59,327  
Loans collectively evaluated for impairment     23,469       325,322       3,950       142,175       63,895       19,462       578,273  
Loans held for sale     (2,520 )     (58,767 )     -       (29,232 )     (10,806 )     -       (101,325 )
                                                         
Total ending loans balance   $ 22,345     $ 323,048     $ 3,950     $ 114,041     $ 53,391     $ 19,500     $ 536,275  

 

December 31, 2011         Commercial     Real Estate     Residential     Consumer &     Indirect        
    Commercial     Real Estate     Construction     Mortgage     Home Equity     Consumer     Total  
(Dollars in thousands)                                          
Allowance for loan losses:                                                        
Ending allowance balance attributable to loans:                                                        
Individually evaluated for impairment   $ 410     $ 3,403       -     $ 481     $ 109     $ 39     $ 4,442  
Collectively evaluated for impairment     1,012       10,324       103       441       501       358       12,739  
Loans held for sale     -       -       -       -       -       -       -  
                                                         
Total ending allowance balance   $ 1,422     $ 13,727       103     $ 922     $ 610     $ 397     $ 17,181  
                                                         
Loans:                                                        
Loans individually evaluated for impairment   $ 3,230     $ 61,345     $ -     $ 1,681     $ 193     $ 123     $ 66,572  
Loans collectively evaluated for impairment     26,905       397,440       4,925       150,185       69,778       21,769       671,002  
Loans held for sale     (18 )     (11,411 )     -       (29,520 )     (5,163 )     -       (46,112 )
                                                         
Total ending loans balance   $ 30,117     $ 447,374     $ 4,925     $ 122,346     $ 64,808     $ 21,892     $ 691,462  

  

June 30, 2011         Commercial     Real Estate     Residential     Consumer &     Indirect        
    Commercial     Real Estate     Construction     Mortgage     Home Equity     Consumer     Total  
(Dollars in thousands)                                          
Allowance for loan losses:                                                        
Ending allowance balance attributable to loans:                                                        
Individually evaluated for impairment   $ 566     $ 6,796       -     $ 220     $ 130     $ 33     $ 7,745  
Collectively evaluated for impairment     805       7,337       95       482       560       684       9,963  
                                                         
Total ending allowance balance   $ 1,371     $ 14,133       95     $ 702     $ 690     $ 717     $ 17,708  
                                                         
                                                         
Loans:                                                        
Loans individually evaluated for impairment   $ 4,102     $ 78,005     $ 998     $ 1,311     $ 247     $ 176     $ 84,839  
Loans collectively evaluated for impairment     27,331       425,295       6,358       156,084       74,278       25,563       714,909  
                                                         
Total ending loans balance   $ 31,433     $ 503,300     $ 7,356     $ 157,395     $ 74,525     $ 25,739     $ 799,748  

 

The following table presents loans individually evaluated for impairment by class of loans as of June 30, 2012 and 2011 and December 31, 2011. The difference between the unpaid principal balance and recorded investment represents partial write downs/charge offs taken on individual impaired credits. The recorded investment and average recorded investment in loans excludes accrued interest receivable and loan origination fees.

 

                      Three Months Ended     Six Months Ended  
                      June 30, 2012     June 30, 2012  
June 30, 2012   Unpaid           Allowance for     Average     Interest     Cash Basis     Average     Interest     Cash Basis  
    Principal     Recorded     Loan Losses     Recorded     Income     Interest     Recorded     Income     Interest  
(Dollars in thousands)   Balance     Investment     Allocated     Investment     Recognized     Recognized     Investment     Recognized     Recognized  
                                                       
With no related allowance recorded:                                                                        
Commercial   $ 1,111     $ 991     $ -     $ 944     $ 31     $ 31     $ 1,347     $ 53     $ 53  
Commercial Real Estate:                                                                        
Land Development     11,532       5,771       -       5,176       185       185       5,825       214       214  
Building Lots     1,061       1,030       -       924       26       26       1,051       17       17  
Other     32,183       28,726       -       30,254       1,120       1,120       30,948       1,173       1,173  
Real Estate Construction     -       -       -       -       -       -       -       -       -  
Residential Mortgage     -       -       -       -       -       -       -       -       -  
Consumer and Home Equity     -       -       -       -       -       -       -       -       -  
Indirect Consumer     -       -       -       -       -       -       -       -       -  
                                                                         
With an allowance recorded:                                                                        
Commercial     407       405       332       477       16       16       676       27       27  
Commercial Real Estate:                                                                        
Land Development     786       740       190       2,303       82       82       2,519       93       93  
Building Lots     -       -       -       238       7       7       318       5       5  
Other     20,226       20,226       4,419       15,576       576       576       16,101       610       610  
Real Estate Construction     -       -       -       -       -       -       -       -       -  
Residential Mortgage     1,219       1,098       383       1,485       50       50       1,550       47       47  
Consumer and Home Equity     324       302       126       332       10       10       285       6       6  
Indirect Consumer     38       38       6       46       -       -       71       1       1  
                                                                         
Total   $ 68,887     $ 59,327     $ 5,456     $ 57,755     $ 2,103     $ 2,103     $ 60,691     $ 2,246     $ 2,246  

 

December 31, 2011   Unpaid           Allowance for  
    Principal     Recorded     Loan Losses  
(Dollars in thousands)   Balance     Investment     Allocated  
                   
With no related allowance recorded:                        
Commercial   $ 2,154     $ 2,154     $ -  
Commercial Real Estate:                        
Land Development     12,719       7,124       -  
Building Lots     3,662       1,305       -  
Other     36,475       32,337       -  
Real Estate Construction     -       -       -  
Residential Mortgage     -       -       -  
Consumer and Home Equity     -       -       -  
Indirect Consumer     -       -       -  
                         
With an allowance recorded:                        
Commercial     1,076       1,076       410  
Commercial Real Estate:                        
Land Development     2,952       2,952       442  
Building Lots     477       477       265  
Other     17,518       17,150       2,696  
Real Estate Construction     -       -       -  
Residential Mortgage     1,802       1,681       481  
Consumer and Home Equity     193       193       109  
Indirect Consumer     123       123       39  
                         
Total   $ 79,151     $ 66,572     $ 4,442  

 

                      Three Months Ended     Six Months Ended  
                      June 30, 2011     June 30, 2011  
June 30, 2011   Unpaid           Allowance for     Average     Interest     Cash Basis     Average     Interest     Cash Basis  
    Principal     Recorded     Loan Losses     Recorded     Income     Interest     Recorded     Income     Interest  
(Dollars in thousands)   Balance     Investment     Allocated     Investment     Recognized     Recognized     Investment     Recognized     Recognized  
                                                       
With no related allowance recorded:                                                                        
Commercial   $ 3,115     $ 3,114     $ -     $ 1,689     $ 80     $ 80     $ 1,230     $ 58     $ 58  
Commercial Real Estate:                                                                        
Land Development     22,165       13,012       -       9,019       188       188       7,869       164       164  
Building Lots     -       -       -       -       -       -       -       -       -  
Other     40,640       38,311       -       41,228       1,680       1,680       38,263       1,593       1,593  
Real Estate Construction     1,717       998       -       644       8       8       491       17       17  
Residential Mortgage     -       -       -       -       -       -       -       -       -  
Consumer and Home Equity     -       -       -       -       -       -       -       -       -  
Indirect Consumer     -       -       -       -       -       -       -       -       -  
                                                                         
With an allowance recorded:                                                                        
Commercial     988       988       566       1,326       63       63       1,403       67       67  
Commercial Real Estate:                                                                        
Land Development     817       817       1,042       9,481       198       198       12,096       253       253  
Building Lots     3,663       1,654       348       2,542       7       7       2,838       5       5  
Other     24,211       24,211       5,406       25,419       1,036       1,036       26,143       1,088       1,088  
Real Estate Construction     -       -       -       -       -       -       361       13       13  
Residential Mortgage     1,406       1,311       220       1,591       24       24       1,597       3       3  
Consumer and Home Equity     247       247       130       273       -       -       294       -       -  
Indirect Consumer     176       176       33       157       1       1       135       -       -  
                                                                         
Total   $ 99,145     $ 84,839     $ 7,745     $ 93,369     $ 3,285     $ 3,285     $ 92,720     $ 3,261     $ 3,261  

 

The following table presents the recorded investment in restructured, nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2012 and December 31, 2011.

 

                Loans Past Due        
June 30, 2012               Over 90 Days     Non-accrual  
    Restructured on     Restructured on     Still     excluding  
(Dollars in thousands)   Non-Accrual Status     Accrual Status     Accruing     Restructured  
                         
Commercial   $ -     $ 1,273       -     $ 672  
Commercial Real Estate:                                
Land Development     679       3,577       -       1,084  
Building Lots     -       613       -       417  
Other     21,165       4,326       -       13,138  
Real Estate Construction     -       -       -       -  
Residential Mortgage     -       303       -       681  
Consumer and Home Equity     -       24       -       183  
Indirect Consumer     -       -       -       42  
                                 
Total   $ 21,844     $ 10,116       -     $ 16,217  

 

                Loans Past Due        
December 31, 2011               Over 90 Days     Non-accrual  
    Restructured on     Restructured on     Still     excluding  
(Dollars in thousands)   Non-Accrual Status     Accrual Status     Accruing     Restructured  
                         
Commercial   $ 31     $ 195       -     $ 584  
Commercial Real Estate:                                
Land Development     1,705       -       -       3,184  
Building Lots     -       -       -       1,782  
Other     15,961       15,522       -       14,879  
Real Estate Construction     -       -       -       -  
Residential Mortgage     335       305       -       969  
Consumer and Home Equity     -       25       -       234  
Indirect Consumer     -       -       -       86  
                                 
Total   $ 18,032     $ 16,047       -     $ 21,718  

  

The following table presents the aging of the unpaid principal in past due loans as of June 30, 2012 and December 31, 2011 by class of loans:

 

June 30, 2012   30-59     60-89     Greater than                    
    Days     Days     90 Days     Total     Loans Not        
(Dollars in thousands)   Past Due     Past Due     Past Due     Past Due     Past Due     Total  
                                     
Commercial   $ 148     $ -     $ 837     $ 985     $ 23,880     $ 24,865  
Commercial Real Estate:                                                
Land Development     1,950       352       1,617       3,919       25,853       29,772  
Building Lots     -       -       417       417       2,325       2,742  
Other     2,837       5,303       26,061       34,201       315,100       349,301  
Real Estate Construction     -       -       -       -       3,950       3,950  
Residential Mortgage     1,133       736       2,028       3,897       139,376       143,273  
Consumer and Home Equity     341       93       322       756       63,441       64,197  
Indirect Consumer     221       71       39       331       19,169       19,500  
                                                 
Total (1)   $ 6,630     $ 6,555     $ 31,321     $ 44,506     $ 593,094     $ 637,600  

 

(1) Includes loans held for sale in probable branch divestiture

 

December 31, 2011   30-59     60-89     Greater than                    
    Days     Days     90 Days     Total     Loans Not        
(Dollars in thousands)   Past Due     Past Due     Past Due     Past Due     Past Due     Total  
                                     
Commercial   $ 424     $ 469     $ 1,426     $ 2,319     $ 27,816     $ 30,135  
Commercial Real Estate:                                                
Land Development     -       -       2,420       2,420       33,504       35,924  
Building Lots     -       -       1,782       1,782       2,098       3,880  
Other     5,333       6,467       17,815       29,615       389,366       418,981  
Real Estate Construction     -       -       -       -       4,925       4,925  
Residential Mortgage     331       812       3,677       4,820       147,046       151,866  
Consumer and Home Equity     310       261       638       1,209       68,762       69,971  
Indirect Consumer     327       95       86       508       21,384       21,892  
                                                 
Total (1)   $ 6,725     $ 8,104     $ 27,844     $ 42,673     $ 694,901     $ 737,574  

 

(1) Includes loans held for sale in probable branch divestiture and probable loan sale

 

Troubled Debt Restructurings:

 

We have allocated $859,000 and $937,000 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of June 30, 2012 and December 31, 2011. We are not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring. Specific reserves are generally assessed prior to loans being modified as a TDR, as most of these loans migrate from our internal watch list and have been specifically reserved for as part of our normal reserving methodology.

 

During the quarter and six month periods ending June 30, 2012, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan.

 

Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from six months to one year. Modifications involving an extension of the maturity date were for periods ranging from three to six months.

  

The following tables present loans by class modified as troubled debt restructurings that occurred during the periods ending June 30, 2012 and 2011:

 

    Three Months Ended     Three Months Ended  
    June 30, 2012     June 30, 2011  
          Pre-Modification     Post-Modification           Pre-Modification     Post-Modification  
          Outstanding     Outstanding           Outstanding     Outstanding  
    Number     Recorded     Recorded     Number     Recorded     Recorded  
(Dollars in thousands)   of Loans     Investment     Investment     of Loans     Investment     Investment  
                                                 
Troubled Debt Restructurings:                                                
Commercial     -     $ -     $ -       -     $ -     $ -  
Commercial Real Estate:                                                
Land Development     1       2,853       2,853       -       -       -  
Building Lots     2       613       613       -       -       -  
Other     3       1,088       1,088       2       10,133       10,133  
Real Estate Construction     -       -       -       -       -       -  
Residential Mortgage     -       -       -       1       197       197  
Consumer and Home Equity     -       -       -       -       -       -  
Indirect Consumer     -       -       -       -       -       -  
                                                 
Total     6     $ 4,554     $ 4,554       3     $ 10,330     $ 10,330  

 

    Six Months Ended     Six Months Ended  
    June 30, 2012     June 30, 2011  
          Pre-Modification     Post-Modification           Pre-Modification     Post-Modification  
          Outstanding     Outstanding           Outstanding     Outstanding  
    Number     Recorded     Recorded     Number     Recorded     Recorded  
(Dollars in thousands)   of Loans     Investment     Investment     of Loans     Investment     Investment  
                                                 
Troubled Debt Restructurings:                                                
Commercial     1     $ 1,094     $ 1,094       1     $ 175     $ 175  
Commercial Real Estate:                                                
Land Development     3       4,251       4,110       -       -       -  
Building Lots     2       613       613       -       -       -  
Other     5       1,139       1,139       7       24,349       24,205  
Real Estate Construction     -       -       -       -       -       -  
Residential Mortgage     -       -       -       2       652       557  
Consumer and Home Equity     -       -       -       -       -       -  
Indirect Consumer     -       -       -       -       -       -  
                                                 
Total     11     $ 7,097     $ 6,956       10     $ 25,176     $ 24,937  

 

The troubled debt restructurings described above increased the allowance for loan losses allocated to troubled debt restructurings by $67,000 and $316,000 for the three months ended June 30, 2012 and 2011, and by $256,000 and $3.9 million for the six months ended June 30, 2012 and 2011. Typically, these loans have been allocated an allowance prior to their formal modification. The troubled debt restructurings described above resulted in charge-offs of $141,000 for the three and six month periods ended June 30, 2012 and $239,000 for the three and six month periods ended June 30, 2011.

  

The following tables present loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the periods ending June 30, 2012 and 2011:

 

    Three Months Ended     Three Months Ended  
    June 30, 2012     June 30, 2011  
    Number     Recorded     Number     Recorded  
(Dollars in thousands)   of Loans     Investment     of Loans     Investment  
                         
Troubled Debt Restructurings:                                
Commercial     -     $ -       -     $ -  
Commercial Real Estate:                                
Land Development     1       533       -       -  
Building Lots     -       -       -       -  
Other     1       10,068       1       844  
Real Estate Construction     -       -       -       -  
Residential Mortgage     -       -       1       361  
Consumer and Home Equity     -       -       -       -  
Indirect Consumer     -       -       -       -  
                                 
Total     2     $ 10,601       2     $ 1,205  

 

    Six Months Ended     Six Months Ended  
    June 30, 2012     June 30, 2011  
    Number     Recorded     Number     Recorded  
(Dollars in thousands)   of Loans     Investment     of Loans     Investment  
                         
Troubled Debt Restructurings:                                
Commercial     -     $ -       1     $ 8  
Commercial Real Estate:                                
Land Development     2       3,386       -       -  
Building Lots     -       -       -       -  
Other     1       10,068       1       844  
Real Estate Construction     -       -       -       -  
Residential Mortgage     -       -       1       361  
Consumer and Home Equity     -       -       -       -  
Indirect Consumer     -       -       -       -  
                                 
Total     3     $ 13,454       3     $ 1,213  

 

For disclosure purposes, a loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. The troubled debt restructurings that subsequently defaulted described above increased the allowance for loan losses by $309,000 and $9,000 for the three months ended June 30, 2012 and 2011, and by $309,000 and $13,000 for the six months ended June 30, 2012 and 2011. The troubled debt restructurings described above resulted in charge-offs of $141,000 for the three and six months periods ended June 30, 2012 and $220,000 for the three and six month periods ended June 30, 2011.

  

Credit Quality Indicators:

 

We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. This analysis includes commercial and commercial real estate loans. We also evaluate credit quality on residential mortgage, consumer and home equity and indirect consumer loans based on the aging status and payment activity of the loan. This analysis is performed on a monthly basis. We use the following definitions for risk ratings:

 

Criticized: Loans classified as criticized have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in our credit position at some future date.

 

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

 

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

 

Loss: Loans classified as loss are considered non-collectible and their continuance as bankable assets is not warranted.

 

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are included in groups of homogeneous loans. For our residential mortgage, consumer and home equity, and indirect consumer homogeneous loans, we also evaluate credit quality based on the aging status of the loan, which was previously presented, and by payment activity.

 

As of June 30, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

 

June 30, 2012                                          
(Dollars in thousands)   Not Rated     Pass     Criticized     Substandard     Doubtful     Loss     Total  
                                           
Commercial   $ -     $ 19,855     $ 3,614     $ 1,396     $ -     $ -     $ 24,865  
Commercial Real Estate:                                                        
Land Development     -       18,505       4,756       6,511       -       -       29,772  
Building Lots     -       1,190       522       1,030       -       -       2,742  
Other     -       278,806       16,658       53,837       -       -       349,301  
Real Estate Construction     -       3,950       -       -       -       -       3,950  
Residential Mortgage     138,069       -       457       4,747       -       -       143,273  
Consumer and Home Equity     62,587       -       696       914       -       -       64,197  
Indirect Consumer     19,346       -       20       134       -       -       19,500  
                                                         
Total (1)   $ 220,002     $ 322,306     $ 26,723     $ 68,569     $ -     $ -     $ 637,600  

 

(1) Includes loans held for sale in probable branch divestiture

 

December 31, 2011                                          
(Dollars in thousands)   Not Rated     Pass     Criticized     Substandard     Doubtful     Loss     Total  
                                           
Commercial   $ -     $ 24,082     $ 1,634     $ 4,389     $ 30     $ -     $ 30,135  
Commercial Real Estate:                                                        
Land Development     -       20,656       5,192       10,076       -       -       35,924  
Building Lots     -       1,549       549       1,782       -       -       3,880  
Other     -       338,483       22,746       57,752       -       -       418,981  
Real Estate Construction     -       4,925       -       -       -       -       4,925  
Residential Mortgage     146,003       -       573       5,290       -       -       151,866  
Consumer and Home Equity     68,101       -       729       1,141       -       -       69,971  
Indirect Consumer     21,627       -       4       261       -       -       21,892  
                                                         
Total (1)   $ 235,731     $ 389,695     $ 31,427     $ 80,691     $ 30     $ -     $ 737,574  

 

(1) Includes loans held for sale in probable branch divestiture and probable loan sale

 

The following table presents the unpaid principal balance in residential mortgage, consumer and home equity and indirect consumer loans based on payment activity as of June 30, 2012 and December 31, 2011:

 

June 30, 2012   Residential     Consumer &     Indirect  
(Dollars in thousands)   Mortgage     Home Equity     Consumer  
                   
Performing   $ 142,592     $ 64,014     $ 19,458  
Restructured on non-accrual     -       -       -  
Non-accrual     681       183       42  
                         
Total   $ 143,273     $ 64,197     $ 19,500  

 

December 31, 2011   Residential     Consumer &     Indirect  
(Dollars in thousands)   Mortgage     Home Equity     Consumer  
                   
Performing   $ 150,562     $ 69,737     $ 21,806  
Restructured on non-accrual     335       -       -  
Non-accrual     969       234       86  
                         
Total   $ 151,866     $ 69,971     $ 21,892