XML 49 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Allowance for Loan Losses
 3 Months Ended
Mar. 31, 2013
Allowance for Loan Losses [Abstract]  
Allowance for Loan Losses
Note 5.
Allowance for Loan Losses

As a result of improving trends in non accrual loans and improved risk ratings for several loans during the quarter, the Company recorded a recovery of loan losses of $188,000 for the three months ended March 31, 2013, compared to a provision for loan losses of $792,000 for the three months ended March 31, 2012. Non-accruals as a percentage of total loans have decreased from 3.26% in the quarter ended March 31, 2012 to 2.84% in the quarter ended March 31, 2013. The recovery of loan losses allowed the reserve ratio to decrease to 1.89% of portfolio loans at March 31, 2013 from 2.02% at December 31, 2012.

The following tables present a rollforward of the changes in the allowance for loan losses balance by class of loan, the balances in the allowance for loan losses and the recorded investment in loans by class of loan and, for the ending loan balances, based on impairment evaluation method as of March 31, 2013 and December 31, 2012.

 
March 31, 2013
        
(In Thousands)
      
 
Real Estate
Construction
 
Real Estate
Secured by
Farmland
 
Real Estate
Secured by 1-4
Family Residential
 
Other Real
Estate Loans
 
Commercial
 
Consumer
 
Total
Allowance for loan losses:
                    
Balances as of December 31, 2012
$
1,258
   
$
135
   
$
6,276
   
$
4,348
   
$
2,098
   
$
196
   
$
14,311
 
Chargeoffs
(87
)
 
—
   
(489
)
 
(97
)
 
(38
)
 
(8
)
 
(719
)
Recoveries
37
   
—
   
50
   
9
   
5
   
3
   
104
 
Provision
32
   
(10
)
 
(29
)
 
(161
)
 
(18
)
 
(2
)
 
(188
)
Balances as of March 31, 2013
$
1,240
   
$
125
   
$
5,808
   
$
4,099
   
$
2,047
   
$
189
   
$
13,508
 
Ending allowance balance:
                    
Ending allowance balance attributable to loans:
                    
Individually evaluated for impairment
$
484
   
$
—
   
$
2,035
   
$
964
   
$
791
   
$
30
   
$
4,304
 
Collectively evaluated for impairment
756
   
125
   
3,773
   
3,135
   
1,256
   
159
   
9,204
 
Total ending allowance balances
$
1,240
   
$
125
   
$
5,808
   
$
4,099
   
$
2,047
   
$
189
   
$
13,508
 
Ending loan recorded investment balances:
                    
Individually evaluated for impairment
$
2,896
   
$
—
   
$
10,177
   
$
9,424
   
$
2,836
   
$
30
   
$
25,363
 
Collectively evaluated for impairment
43,193
   
11,805
   
258,593
   
249,979
   
113,185
   
12,468
   
689,223
 
Total ending loan balances
$
46,089
   
$
11,805
   
$
268,770
   
$
259,403
   
$
116,021
   
$
12,498
   
$
714,586
 
 
 
December 31, 2012
        
(In Thousands)
      
 
Real Estate
Construction
 
Real Estate
Secured by
Farmland
 
Real Estate
Secured by 1-4
Family Residential
 
Other Real
Estate Loans
 
Commercial
 
Consumer
 
Total
Allowance for loan losses:
                    
Balances at December 31, 2011
$
897
   
$
110
   
$
7,465
   
$
4,385
   
$
1,621
   
$
145
   
$
14,623
 
Chargeoffs
(2,152
)
 
—
   
(893
)
 
(760
)
 
(394
)
 
(72
)
 
(4,271
)
Recoveries
2
   
—
   
388
   
86
   
12
   
33
   
521
 
Provision
2,511
   
25
   
(684
)
 
637
   
859
   
90
   
3,438
 
Balances at December 31, 2012
$
1,258
   
$
135
   
$
6,276
   
$
4,348
   
$
2,098
   
$
196
   
$
14,311
 
Ending allowance balance:
                    
Ending allowance balance attributable to loans:
                    
Individually evaluated for impairment
$
166
   
$
—
   
$
2,724
   
$
1,045
   
$
338
   
$
30
   
$
4,303
 
Collectively evaluated for impairment
1,092
   
135
   
3,552
   
3,303
   
1,760
   
166
   
10,008
 
Total ending allowance balances
$
1,258
   
$
135
   
$
6,276
   
$
4,348
   
$
2,098
   
$
196
   
$
14,311
 
Ending loan recorded investment balances:
                    
Individually evaluated for impairment
$
2,969
   
$
—
   
$
10,792
   
$
10,640
   
$
2,364
   
$
30
   
$
26,795
 
Collectively evaluated for impairment
47,249
   
11,876
   
249,828
   
244,290
   
116,209
   
13,230
   
682,682
 
Total ending loan balances
$
50,218
   
$
11,876
   
$
260,620
   
$
254,930
   
$
118,573
   
$
13,260
   
$
709,477