Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of major classifications of loans held for investment

Major classifications of loans held for investment ("LHFI") are as follows:

	June 30,			December 31,
(In thousands)	2012			2011
Commercial and industrial	$	47,567		$	54,136
Construction		5,934			14,066
Land development		40,614			40,054
Residential real estate		26,556			26,637
Commercial real estate		166,315			182,579
Multi-family		13,008			11,622
Tax certificates		34,094			48,809
Leases		37,775			36,014
Other		973			949
Total gross loans	$	372,836		$	414,866
Deferred fees, net		(491	)		(623	)
Total loans and leases	$	372,345		$	414,243

Schedule of risk ratings for loan portfolio segment

The following tables present risk ratings for each loan portfolio segment at June 30, 2012 and December 31, 2011, excluding LHFS.

June 30, 2012					Special
(In thousands)	Pass		Pass-Watch		Mention		Substandard		Non-accrual		Total
Construction and land development	$	394	$	16,593	$	20,105	$	2,638	$	6,818	$	46,548
Commercial real estate		67,148		69,406		14,965		2,749		12,047		166,315
Commercial & industrial		17,316		11,082		13,526		-		5,643		47,567
Residential real estate		15,256		9,365		610		-		1,325		26,556
Multi-family		7,106		3,206		1,023		-		1,673		13,008
Leases		37,270		314		19		-		172		37,775
Other		894		79		-		-		-		973
Tax certificates		33,201		-		-		-		893		34,094
Subtotal LHFI		178,585		110,045		50,248		5,387		28,571		372,836
Less: Deferred loan fees												(491	)
Total LHFI											$	372,345

December 31, 2011					Special
(In thousands)	Pass		Pass-Watch		Mention		Substandard		Non-accrual		Total
Construction and land development	$	1,303	$	17,493	$	19,936	$	2,374	$	13,014	$	54,120
Commercial real estate		87,308		64,878		13,722		-		16,671		182,579
Commercial & industrial		19,073		12,101		18,242		-		4,720		54,136
Residential real estate		15,335		9,092		1,071		-		1,139		26,637
Multi-family		4,962		3,907		1,050		-		1,703		11,622
Leases		35,355		147		27		-		485		36,014
Other		847		102		-		-		-		949
Tax certificates		47,786		-		-		-		1,023		48,809
Subtotal LHFI		211,969		107,720		54,048		2,374		38,755		414,866
Less: Deferred loan fees												(623	)
Total LHFI											$	414,243

Schedule of analysis of past due payments for loan portfolio segment

The past due status of all classes of loans and leases receivable is determined based on contractual due dates for loan payments. Generally, a loan is placed on non-accruing status when it has been delinquent for a period of 90 days or more. The following tables present an aging analysis of past due payments for each loan portfolio segment at June 30, 2012 and December 31, 2011, excluding LHFS.

June 30, 2012	30-59 Days		60-89 Days		Accruing		Total
(In thousands)	Past Due		Past Due		90+ Days		Non-accrual		Current		Total
Construction and land development	$	289	$	-	$	-	$	6,818	$	39,441	$	46,548
Commercial real estate		2,213		-		-		12,047		152,055		166,315
Commercial & industrial		796		-		-		5,643		41,128		47,567
Residential real estate		299		124		-		1,325		24,808		26,556
Multi-family		-		-		-		1,673		11,335		13,008
Leases		314		19		-		172		37,270		37,775
Other		5		-		-		-		968		973
Tax certificates		-		-		-		893		33,201		34,094
Subtotal LHFI		3,916		143		-		28,571		340,206		372,836
Less: Deferred loan fees												(491	)
Total LHFI											$	372,345

December 31, 2011	30-59 Days		60-89 Days		Accruing		Total
(In thousands)	Past Due		Past Due		90+ Days		Non-accrual		Current		Total
Construction and land development	$	-	$	-	$	-	$	13,014	$	41,106	$	54,120
Real Estate-non-residential		2,837		100		-		16,671		162,971		182,579
Commercial & industrial		148		-		-		4,720		49,268		54,136
Residential real estate		527		382		-		1,139		24,589		26,637
Multi-family		-		-		-		1,703		9,919		11,622
Leasing		147		28		-		485		35,354		36,014
Consumer		-		-		-		-		949		949
Tax certificates		-		-		-		1,023		47,786		48,809
Subtotal LHFI		3,659		510		-		38,755		371,942		414,866
Less: Deferred loan fees												(623	)
Total LHFI											$	414,243

Schedule of composition of the non-accrual loans

The following tables detail the composition of the non-accrual loans at June 30, 2012 and December 31, 2011.

	June 30, 2012				December 31, 2011
(In thousands)	Loan balance		Specific reserves		Loan balance		Specific reserves
Non-accrual loans held for investment
Construction and land development	$	6,818	$	1,243	$	13,014	$	-
Commercial real estate		12,047		-		16,671		-
Commercial & industrial		5,643		139		4,720		-
Residential real estate		1,325		22		1,139		24
Multi-family		1,673		439		1,703		-
Leases		172		32		485		114
Tax certificates		893		-		1,023		-
Total non-accrual LHFI	$	28,571	$	1,875	$	38,755	$	138
Non-accrual loans held for sale
Construction and land development	$	-	$	-	$	8,901	$	-
Commercial real estate		3,574		-		3,634		-
Residential real estate		-		-		34		-
Total non-accrual LHFS	$	3,574	$	-	$	12,569	$	-
Total non-accrual loans	$	32,145	$	1,875	$	51,324	$	138

Schedule of Impaired Loans [Table Text Block]

The following is a summary of information pertaining to impaired loans:

	June 30,		December 31,
(In thousands)	2012		2011
Impaired loans with a valuation allowance	$	4,829	$	1,068
Impaired loans without a valuation allowance		28,126		45,009
Impaired LHFS		3,574		12,569
Total impaired loans	$	36,529	$	58,646

Valuation allowance related to impaired loans	$	1,875	$	138

Schedule of troubled debt restructurings that are on an accrual status and a non-accrual status

The following table details the Company's TDRs that are on an accrual status and a non-accrual status at June 30, 2012.

(In thousands)	Number of loans		Accrual Status		Non-Accrual Status		Total TDRs

Construction and land development		4	$	3,894	$	647	$	4,541
Commercial real estate		2		627		2,595		3,222
Commercial & industrial		1		-		2,666		2,666
Residential real estate		2		-		164		164
Multi-family		1		-		1,673		1,673
Total		10	$	4,521	$	7,745	$	12,266