XML 50 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Loans
 3 Months Ended
Mar. 31, 2013
Loans [Abstract]  
Loans

6.  Loans

The following table presents total portfolio loans by portfolio segment and class of financing receivable, based on our risk classification criteria: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

Commercial

Real estate construction one-to-four family

Real estate construction other

Real estate term owner occupied

Real estate term non-owner occupied

Real estate term other

Consumer secured by 1st deeds of trust

Consumer other

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AQR Pass

$
281,060 

$
25,437 

$
20,763 

$
72,265 

$
234,815 

$
30,021 

$
16,332 

$
17,402 

$
698,095 

AQR Special Mention

 
6,681 

 
2,342 

 
1,748 

 
3,897 

 
2,504 

 

 -

 
501 

 
276 

 
17,949 

AQR Substandard

 
1,450 

 
2,505 

 

 -

 
287 

 
2,058 

 
1,605 

 
203 

 
315 

 
8,423 

AQR Doubtful

 
14 

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 
14 

AQR Loss

 
184 

 

 -

 

 -

 
405 

 

 -

 

 -

 

 -

 

 -

 
589 

  Subtotal

$
289,389 

$
30,284 

$
22,511 

$
76,854 

$
239,377 

$
31,626 

$
17,036 

$
17,993 

$
725,070 

Less: Unearned origination fees, net of origination costs

 

 

 

 

 
(3,461)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
721,609 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AQR Pass

$
265,562 

$
28,780 

$
21,061 

$
73,985 

$
230,010 

$
28,304 

$
16,911 

$
17,817 

$
682,430 

AQR Special Mention

 
6,064 

 
1,282 

 

 -

 
2,522 

 
2,546 

 
126 

 
620 

 
238 

 
13,398 

AQR Substandard

 
1,597 

 
2,511 

 

 -

 
1,600 

 
2,087 

 
3,379 

 
183 

 
250 

 
11,607 

AQR Doubtful

 
189 

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 
189 

AQR Loss

 
20 

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 
20 

  Subtotal

$
273,432 

$
32,573 

$
21,061 

$
78,107 

$
234,643 

$
31,809 

$
17,714 

$
18,305 

$
707,644 

Less: Unearned origination fees, net of origination costs

 

 

 

 

 
(3,431)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
704,213 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans are carried at their principal amount outstanding, net of charge-offs, unamortized fees and direct loan origination costs.  Loan balances are charged to the allowance for loan losses (the “Allowance”) when management believes that collection of principal is unlikely.  Interest income on loans is accrued and recognized on the principal amount outstanding except for loans in a nonaccrual status.  All classes of loans are placed on nonaccrual and considered impaired when management believes doubt exists as to the collectability of the interest or principal.  Cash payments received on nonaccrual loans are directly applied to the principal balance.  Generally, a loan may be returned to accrual status when the delinquent principal and interest are brought current in accordance with the terms of the loan agreement.  Additionally, certain ongoing performance criteria, which generally includes a performance period of six months, must be met in order for a loan to be returned to accrual status.  Loans are reported as past due when installment payments, interest payments, or maturity payments are past due based on contractual terms.

Nonaccrual loans totaled $4.3 million and  $4.5 million at March 31, 2013 and December 31, 2012, respectively.  Nonaccrual loans at the periods indicated, by segment are presented below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In  Thousands)

March 31, 2013

 

December 31, 2012

 

Commercial

$
999 

 

$
1,214 

 

Real estate construction one-to-four family

 
1,240 

 

 
1,264 

 

Real estate term non-owner occupied

 
174 

 

 
185 

 

Real estate term other

 
1,448 

 

 
1,451 

 

Consumer secured by 1st deeds of trust

 
203 

 

 
183 

 

Consumer other

 
228 

 

 
234 

 

    Total

$
4,292 

 

$
4,531 

 

 

 

 

 

 

 

 

 

Past due loans and nonaccrual loans at the periods indicated are presented below by loan class:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

30-59 Days
Past Due
Still
Accruing

 

60-89 Days
Past Due
Still
Accruing

 

Greater Than
90 Days
Still
Accruing

 

Nonaccrual

 

Total Past
Due

 

Current

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AQR Pass

$
903 

 

$
61 

 

$

 -

 

$

 -

 

$
964 

 

$
697,131 

 

$
698,095 

AQR Special Mention

 
811 

 

 
405 

 

 
112 

 

 
470 

 

 
1,798 

 

 
16,151 

 

 
17,949 

AQR Substandard

 
195 

 

 

 -

 

 

 -

 

 
3,625 

 

 
3,820 

 

 
4,603 

 

 
8,423 

AQR Doubtful

 

 -

 

 

 -

 

 

 -

 

 
14 

 

 
14 

 

 

 -

 

 
14 

AQR Loss

 

 -

 

 

 -

 

 

 -

 

 
183 

 

 
183 

 

 
406 

 

 
589 

  Subtotal

$
1,909 

 

$
466 

 

$
112 

 

$
4,292 

 

$
6,779 

 

$
718,291 

 

$
725,070 

Less: Unearned origination fees,  net of origination costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(3,461)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
721,609 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AQR Pass

$
401 

 

$

 -

 

$

 -

 

$

 -

 

$
401 

 

$
682,029 

 

$
682,430 

AQR Special Mention

 
534 

 

 

 -

 

 

 -

 

 
596 

 

 
1,130 

 

 
12,268 

 

 
13,398 

AQR Substandard

 

 -

 

 

 -

 

 

 -

 

 
3,726 

 

 
3,726 

 

 
7,881 

 

 
11,607 

AQR Doubtful

 

 -

 

 

 -

 

 

 -

 

 
189 

 

 
189 

 

 

 -

 

 
189 

AQR Loss

 

 -

 

 

 -

 

 

 -

 

 
20 

 

 
20 

 

 

 -

 

 
20 

  Subtotal

$
935 

 

$
0 

 

$

 -

 

$
4,531 

 

$
5,466 

 

$
702,178 

 

$
707,644 

Less: Unearned origination fees,  net of origination costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(3,431)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
704,213 

 

The Company considers a loan to be impaired when it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan agreement.  Once a loan is determined to be impaired, the impairment is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate, except that if the loan is collateral dependent, the impairment is measured by using the fair value of the loan’s collateral.  Nonperforming loans greater than $50,000 are individually evaluated for impairment based upon the borrower’s overall financial condition, resources, and payment record, and the prospects for support from any financially responsible guarantors.

At March 31, 2013 and December 31, 2012, the recorded investment in loans that are considered to be impaired was $11.6 million and  $13.1 million, respectively.  The following table presents information about impaired loans by class as of the periods indicated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

Recorded Investment

 

Unpaid Principal Balance

 

Related Allowance

March 31, 2013

 

 

 

 

 

 

 

 

With no related allowance recorded

 

 

 

 

 

 

 

 

    Commercial - AQR special mention

$
523 

 

$
523 

 

$

 -

    Commercial - AQR substandard

 
941 

 

 
986 

 

 

 -

    Real estate construction one-to-four family - AQR special mention

 
470 

 

 
470 

 

 

 -

    Real estate construction other - AQR pass

 
2,497 

 

 
2,498 

 

 

 -

    Real estate term owner occupied- AQR special mention

 
1,081 

 

 
1,081 

 

 

 -

    Real estate term owner occupied- AQR loss

 
405 

 

 
405 

 

 

 -

    Real estate term non-owner occupied- AQR special mention

 
546 

 

 
546 

 

 

 -

    Real estate term non-owner occupied- AQR substandard

 
1,677 

 

 
1,677 

 

 

 -

    Real estate term other - AQR substandard

 
1,605 

 

 
1,964 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR pass

 
91 

 

 
91 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR special mention

 
86 

 

 
86 

 

 

 -

    Consumer other - AQR substandard

 
230 

 

 
312 

 

 

 -

Subtotal

$
10,152 

 

$
10,639 

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded

 

 

 

 

 

 

 

 

    Commercial - AQR substandard

$
309 

 

$
309 

 

$
244 

    Commercial - AQR loss

 
183 

 

 
183 

 

 
151 

    Real estate construction one-to-four family - AQR substandard

 
770 

 

 
770 

 

 
242 

    Consumer secured by 1st deeds of trust - AQR substandard

 
197 

 

 
197 

 

 
22 

Subtotal

$
1,459 

 

$
1,459 

 

$
659 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

    Commercial - AQR special mention

$
523 

 

$
523 

 

$

 -

    Commercial - AQR substandard

 
1,250 

 

 
1,295 

 

 
244 

    Commercial - AQR loss

 
183 

 

 
183 

 

 
151 

    Real estate construction one-to-four family - AQR special mention

 
470 

 

 
470 

 

 

 -

    Real estate construction one-to-four family - AQR substandard

 
770 

 

 
770 

 

 
242 

    Real estate construction other - AQR pass

 
2,497 

 

 
2,498 

 

 

 -

    Real estate term owner-occupied - AQR special mention

 
1,081 

 

 
1,081 

 

 

 -

    Real estate term owner-occupied - AQR loss

 
405 

 

 
405 

 

 

 -

    Real estate term non-owner occupied - AQR special mention

 
546 

 

 
546 

 

 

 -

    Real estate term non-owner occupied - AQR substandard

 
1,677 

 

 
1,677 

 

 

 -

    Real estate term other - AQR substandard

 
1,605 

 

 
1,964 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR pass

 
91 

 

 
91 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR special mention

 
86 

 

 
86 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR substandard

 
197 

 

 
197 

 

 
22 

    Consumer other - AQR substandard

 
230 

 

 
312 

 

 

 -

Total Impaired Loans

$
11,611 

 

$
12,098 

 

$
659 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

Recorded Investment

 

Unpaid Principal Balance

 

Related Allowance

December 31, 2012

 

 

 

 

 

 

 

 

With no related allowance recorded

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$
53 

 

$
53 

 

$

 -

    Commercial - AQR special mention

 
332 

 

 
332 

 

 

 -

    Commercial - AQR substandard

 
981 

 

 
1,064 

 

 

 -

    Real estate construction one-to-four family - AQR special mention

 
470 

 

 
470 

 

 

 -

    Real estate construction other - AQR pass

 
2,748 

 

 
2,748 

 

 

 -

    Real estate term owner occupied - AQR special mention

 
1,083 

 

 
1,083 

 

 

 -

    Real estate term non-owner occupied - AQR special mention

 
555 

 

 
555 

 

 

 -

    Real estate term non-owner occupied - AQR substandard

 
1,705 

 

 
1,705 

 

 

 -

    Real estate term other - AQR special mention

 
126 

 

 
205 

 

 

 -

    Real estate term other - AQR substandard

 
3,379 

 

 
3,659 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR pass

 
93 

 

 
93 

 

 

 -

    Consumer other - AQR doubtful

 
158 

 

 
240 

 

 

 -

Subtotal

$
11,683 

 

$
12,207 

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded

 

 

 

 

 

 

 

 

    Commercial - AQR substandard

$
427 

 

$
427 

 

$
284 

    Commercial - AQR doubtful

 
189 

 

 
189 

 

 
160 

    Real estate construction one-to-four family - AQR doubtful

 
794 

 

 
794 

 

 
215 

Subtotal

$
1,410 

 

$
1,410 

 

$
659 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$
53 

 

$
53 

 

$

 -

    Commercial - AQR special mention

 
332 

 

 
332 

 

 

 -

    Commercial - AQR substandard

 
1,408 

 

 
1,491 

 

 
284 

    Commercial - AQR doubtful

 
189 

 

 
189 

 

 
160 

    Real estate construction one-to-four family - AQR special mention

 
470 

 

 
470 

 

 

 -

    Real estate construction one-to-four family - AQR doubtful

 
794 

 

 
794 

 

 
215 

    Real estate construction other - AQR pass

 
2,748 

 

 
2,748 

 

 

 -

    Real estate term owner occupied - AQR special mention

 
1,083 

 

 
1,083 

 

 

 -

    Real estate term non-owner occupied - AQR special mention

 
555 

 

 
555 

 

 

 -

    Real estate term non-owner occupied - AQR substandard

 
1,705 

 

 
1,705 

 

 

 -

    Real estate term other - AQR special mention

 
126 

 

 
205 

 

 

 -

    Real estate term other - AQR substandard

 
3,379 

 

 
3,659 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR pass

 
93 

 

 
93 

 

 

 -

    Consumer other - AQR doubtful

 
158 

 

 
240 

 

 

 -

Total Impaired Loans

$
13,093 

 

$
13,617 

 

$
659 

 

 

The unpaid principal balance included in the table above represents the recorded investment at the dates indicated, plus amounts charged off for book purposes.

 

The following table summarizes our average recorded investment and interest income recognized on impaired loans for the three months ended March 31, 2013 and 2012, respectively:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

2013

 

2012

(In Thousands)

Average Recorded Investment

 

Interest Income Recognized

 

Average Recorded Investment

 

Interest Income Recognized

With no related allowance recorded

 

 

 

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$

 -

 

$

 -

 

$
744 

 

$
14 

    Commercial - AQR special mention

 
486 

 

 
11 

 

 
178 

 

 
2 

    Commercial - AQR substandard

 
962 

 

 
14 

 

 
803 

 

 
3 

    Commercial - AQR doubtful

 

 -

 

 

 -

 

 
1,074 

 

 

 -

    Commercial - AQR loss

 

 -

 

 

 -

 

 
112 

 

 

 -

    Real estate construction one-to-four family - AQR special mention

 
470 

 

 

 -

 

 

 -

 

 

 -

    Real estate construction other - AQR pass

 
2,623 

 

 

 -

 

 

 -

 

 

 -

    Real estate term owner occupied- AQR special mention

 
1,082 

 

 
20 

 

 
505 

 

 
7 

    Real estate term owner occupied - AQR doubtful

 

 -

 

 

 -

 

 
373 

 

 

 -

    Real estate term owner occupied- AQR loss

 
406 

 

 
5 

 

 

 -

 

 

 -

    Real estate term non-owner occupied - AQR pass

 

 -

 

 

 -

 

 
1,651 

 

 
31 

    Real estate term non-owner occupied- AQR special mention

 
550 

 

 
9 

 

 

 -

 

 

 -

    Real estate term non-owner occupied- AQR substandard

 
1,691 

 

 
33 

 

 
2,278 

 

 
44 

    Real estate term other - AQR pass

 

 -

 

 

 -

 

 
161 

 

 
6 

    Real estate term other - AQR special mention

 

 -

 

 

 -

 

 
164 

 

 

 -

    Real estate term other - AQR substandard

 
1,607 

 

 
7 

 

 
2,488 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR pass

 
92 

 

 
1 

 

 
96 

 

 
1 

    Consumer secured by 1st deeds of trust - AQR special mention

 
86 

 

 
1 

 

 

 -

 

 

 -

    Consumer other - AQR pass

 

 -

 

 

 -

 

 
121 

 

 
2 

    Consumer other - AQR substandard

 
232 

 

 
1 

 

 
52 

 

 

 -

Subtotal

$
10,287 

 

$
102 

 

$
10,800 

 

$
110 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$

 -

 

$

 -

 

$
180 

 

$

 -

    Commercial - AQR special mention

 

 -

 

 

 -

 

 
258 

 

 

 -

    Commercial - AQR substandard

 
315 

 

 

 -

 

 
207 

 

 

 -

    Commercial - AQR doubtful

 

 -

 

 

 -

 

 
221 

 

 

 -

    Commercial - AQR loss

 
187 

 

 

 -

 

 
218 

 

 

 -

    Real estate construction one-to-four family - AQR substandard

 
782 

 

 

 -

 

 
964 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR substandard

 
199 

 

 

 -

 

 

 -

 

 

 -

Subtotal

$
1,483 

 

$

 -

 

$
2,048 

 

$

 -

Total

 

 

 

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$

 -

 

$

 -

 

$
924 

 

$
14 

    Commercial - AQR special mention

 
486 

 

 
11 

 

 
436 

 

 
2 

    Commercial - AQR substandard

 
1,277 

 

 
14 

 

 
1,010 

 

 
3 

    Commercial - AQR doubtful

 

 -

 

 

 -

 

 
1,295 

 

 

 -

    Commercial - AQR loss

 
187 

 

 

 -

 

 
330 

 

 

 -

    Real estate construction one-to-four family - AQR special mention

 
470 

 

 

 -

 

 

 -

 

 

 -

    Real estate construction one-to-four family - AQR substandard

 
782 

 

 

 -

 

 
964 

 

 

 -

    Real estate construction other - AQR pass

 
2,623 

 

 

 -

 

 

 -

 

 

 -

    Real estate term owner-occupied - AQR special mention

 
1,082 

 

 
20 

 

 
505 

 

 
7 

    Real estate term owner-occupied - AQR doubtful

 

 -

 

 

 -

 

 
373 

 

 

 -

    Real estate term owner-occupied - AQR loss

 
406 

 

 
5 

 

 

 -

 

 

 -

    Real estate term non-owner occupied - AQR pass

 

 -

 

 

 -

 

 
1,651 

 

 
31 

    Real estate term non-owner occupied - AQR special mention

 
550 

 

 
9 

 

 

 -

 

 

 -

    Real estate term non-owner occupied - AQR substandard

 
1,691 

 

 
33 

 

 
2,278 

 

 
44 

    Real estate term other - AQR pass

 

 -

 

 

 -

 

 
161 

 

 
6 

    Real estate term other - AQR special mention

 

 -

 

 

 -

 

 
164 

 

 

 -

    Real estate term other - AQR substandard

 
1,607 

 

 
7 

 

 
2,488 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR pass

 
92 

 

 
1 

 

 
96 

 

 
1 

    Consumer secured by 1st deeds of trust - AQR special mention

 
86 

 

 
1 

 

 

 -

 

 

 -

    Consumer secured by 1st deeds of trust - AQR substandard

 
199 

 

 

 -

 

 

 -

 

 

 -

    Consumer other - AQR pass

 

 -

 

 

 -

 

 
121 

 

 
2 

    Consumer other - AQR substandard

 
232 

 

 
1 

 

 
52 

 

 

 -

Total

$
11,770 

 

$
102 

 

$
12,848 

 

$
110 

 

Loans classified as troubled debt restructurings (“TDR”) totaled $9.9 million and $12.1 million at  March 31, 2013 and December 31, 2012, respectively.  A troubled debt restructuring is a loan to a borrower that is experiencing financial difficulty that has been modified from its original terms and conditions in such a way that the Company is granting the borrower a concession that is would not grant otherwise.  The Company has granted a variety of concessions to borrowers in the form of loan modifications.  The modifications granted can generally be described in the following categories:

Rate Modification:  A modification in which the interest rate is changed.

Term Modification:  A modification in which the maturity date, timing of payments, or frequency of payments is changed.

Payment Modification:  A modification in which the dollar amount of the payment is changed, or in which a loan is converted to interest only payments for a period of time is included in this category.

Combination Modification:  Any other type of modification, including the use of multiple categories above. 

The Company did not have any newly restructured loans during the three months ended March 31, 2013. 

 

 

The loans in the following table are past due, and they are nonaccrual loans.  The following table presents TDRs that occurred during the last twelve months that have subsequently defaulted, for the periods ending March 31, 2013 and 2012, respectively:    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2013

 

March 31, 2012

 

Number

Recorded

 

Recorded

(In  Thousands)

of Contracts

Investment

 

Investment

Troubled Debt Restructurings that Subsequently Defaulted:

 

 

 

 

 

 

    Commercial - AQR substandard

1

$

 -

 

$
138 

    Commercial - AQR doubtful

1

 

 -

 

 
218 

                   Total

2

$

 -

 

$
356 

 

 

 

 

 

 

 

 

AQR pass graded loans included above in the impaired loan data are loans classified as TDRs.  By definition, TDRs are considered impaired loans except in very rare circumstances.  All of the Company’s TDRs are included in impaired loans.  The Company had no commitments to extend additional credit to borrowers owing receivables whose terms have been modified in TDRs.  All TDRs are also classified as impaired loans and are included in the loans individually evaluated for impairment in the calculation of the Allowance.  There were no charge offs in the three months ended March 31, 2013 on loans that were later classified as TDRs.  Four TDRs with a total recorded investment of $1.3 million had a specific impairment amount totaling $637,000 at March 31, 2013.