XML 44 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
Loans
 9 Months Ended
Sep. 30, 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AQR Pass

$
296,308 

$
28,801 

$
26,118 

$
79,677 

$
234,131 

$
31,169 

$
16,201 

$
17,718 

$
730,123 

AQR Special Mention

 
7,293 

 
4,542 

 
985 

 
2,628 

 
7,596 

 

 -

 
401 

 
153 

 
23,598 

AQR Substandard

 
780 

 

 -

 

 -

 
375 

 
1,338 

 
1,293 

 
213 

 
293 

 
4,292 

AQR Doubtful

 
150 

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 
150 

AQR Loss

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

  Subtotal

$
304,531 

$
33,343 

$
27,103 

$
82,680 

$
243,065 

$
32,462 

$
16,815 

$
18,164 

$
758,163 

Less: Unearned origination fees, net of origination costs

 

 

 

 

 
(3,808)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
754,355 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 applied directly 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 $2.9 million and  $4.5 million at September 30, 2013 December 31, 2012, respectively.  Nonaccrual loans at the periods indicated, by segment are presented below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In  Thousands)

September 30, 2013

 

December 31, 2012

 

Commercial

$
623 

 

$
1,214 

 

Real estate construction one-to-four family

 
470 

 

 
1,264 

 

Real estate term owner occupied

 
92 

 

 

 -

 

Real estate term non-owner occupied

 
153 

 

 
185 

 

Real estate term other

 
1,137 

 

 
1,451 

 

Consumer secured by 1st deeds of trust

 
190 

 

 
183 

 

Consumer other

 
239 

 

 
234 

 

    Total

$
2,904 

 

$
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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AQR Pass

$
31 

 

$

 -

 

$

 -

 

$
470 

 

$
501 

 

$
729,622 

 

$
730,123 

AQR Special Mention

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 
23,598 

 

 
23,598 

AQR Substandard

 

 -

 

 

 -

 

 

 -

 

 
2,284 

 

 
2,284 

 

 
2,008 

 

 
4,292 

AQR Doubtful

 

 -

 

 

 -

 

 

 -

 

 
150 

 

 
150 

 

 

 -

 

 
150 

AQR Loss

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

  Subtotal

$
31 

 

$

 -

 

$

 -

 

$
2,904 

 

$
2,935 

 

$
755,228 

 

$
758,163 

Less: Unearned origination fees,  net of origination costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(3,808)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
754,355 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

 

$

 -

 

$

 -

 

$
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 September 30, 2013 and December 31, 2012, the recorded investment in loans that are considered to be impaired was $11.0 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

September 30, 2013

 

 

 

 

 

 

 

 

With no related allowance recorded

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$
182 

 

$
182 

 

$

 -

    Commercial - AQR special mention

 
325 

 

 
325 

 

 

 -

    Commercial - AQR substandard

 
637 

 

 
682 

 

 

 -

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

 
470 

 

 
470 

 

 

 -

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

 
353 

 

 
353 

 

 

 -

    Real estate construction other - AQR pass

 
1,998 

 

 
1,998 

 

 

 -

    Real estate construction other - AQR special mention

 
850 

 

 
850 

 

 

 -

    Real estate term owner occupied- AQR pass

 
515 

 

 
515 

 

 

 -

    Real estate term owner occupied- AQR special mention

 
913 

 

 
913 

 

 

 -

    Real estate term owner occupied- AQR substandard

 
375 

 

 
375 

 

 

 -

    Real estate term non-owner occupied- AQR pass

 
351 

 

 
352 

 

 

 -

    Real estate term non-owner occupied- AQR special mention

 
804 

 

 
804 

 

 

 -

    Real estate term non-owner occupied- AQR substandard

 
1,328 

 

 
1,328 

 

 

 -

    Real estate term other - AQR substandard

 
1,293 

 

 
1,572 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR pass

 
89 

 

 
89 

 

 

 -

    Consumer other - AQR substandard

 
66 

 

 
66 

 

 

 -

Subtotal

$
10,549 

 

$
10,874 

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded

 

 

 

 

 

 

 

 

    Commercial - AQR doubtful

$
150 

 

$
150 

 

$
150 

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

 
190 

 

 
190 

 

 
15 

    Consumer other - AQR substandard

 
158 

 

 
240 

 

 
19 

Subtotal

$
498 

 

$
580 

 

$
184 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$
182 

 

$
182 

 

$

 -

    Commercial - AQR special mention

 
325 

 

 
325 

 

 

 -

    Commercial - AQR substandard

 
637 

 

 
682 

 

 

 -

    Commercial - AQR doubtful

 
150 

 

 
150 

 

 
150 

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

 
470 

 

 
470 

 

 

 -

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

 
353 

 

 
353 

 

 

 -

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

 
190 

 

 
190 

 

 
15 

    Real estate construction other - AQR pass

 
1,998 

 

 
1,998 

 

 

 -

    Real estate construction other - AQR special mention

 
850 

 

 
850 

 

 

 -

    Real estate term owner-occupied - AQR pass

 
515 

 

 
515 

 

 

 -

    Real estate term owner-occupied - AQR special mention

 
913 

 

 
913 

 

 

 -

    Real estate term owner-occupied - AQR substandard

 
375 

 

 
375 

 

 

 -

    Real estate term non-owner occupied - AQR pass

 
351 

 

 
352 

 

 

 -

    Real estate term non-owner occupied - AQR special mention

 
804 

 

 
804 

 

 

 -

    Real estate term non-owner occupied - AQR substandard

 
1,328 

 

 
1,328 

 

 

 -

    Real estate term other - AQR substandard

 
1,293 

 

 
1,572 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR pass

 
89 

 

 
89 

 

 

 -

    Consumer other - AQR substandard

 
224 

 

 
306 

 

 
19 

Total Impaired Loans

$
11,047 

 

$
11,454 

 

$
184 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 and nine month periods ended September 30, 2013 and 2012, respectively:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

2013

 

2012

(In Thousands)

Average Recorded Investment

 

Interest Income Recognized

 

Average Recorded Investment

 

Interest Income Recognized

With no related allowance recorded

 

 

 

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$
183 

 

$
4 

 

$
159 

 

$
2 

    Commercial - AQR special mention

 
327 

 

 
8 

 

 
330 

 

 
6 

    Commercial - AQR substandard

 
646 

 

 
5 

 

 
735 

 

 
4 

    Commercial - AQR doubtful

 

 -

 

 

 -

 

 
441 

 

 

 -

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

 
470 

 

 

 -

 

 

 -

 

 

 -

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

 
353 

 

 

 -

 

 

 -

 

 

 -

    Real estate construction other - AQR pass

 
2,123 

 

 

 -

 

 
2,787 

 

 

 -

    Real estate construction other - AQR special mention

 
797 

 

 
29 

 

 

 -

 

 

 -

    Real estate term owner occupied- AQR pass

 
517 

 

 
12 

 

 

 -

 

 

 -

    Real estate term owner occupied- AQR special mention

 
917 

 

 
19 

 

 
527 

 

 
11 

    Real estate term owner occupied- AQR substandard

 
380 

 

 
6 

 

 

 -

 

 

 -

    Real estate term non-owner occupied - AQR pass

 
356 

 

 
6 

 

 
1,594 

 

 
32 

    Real estate term non-owner occupied- AQR special mention

 
816 

 

 
23 

 

 
393 

 

 
7 

    Real estate term non-owner occupied- AQR substandard

 
1,347 

 

 
20 

 

 
362 

 

 
11 

    Real estate term other - AQR special mention

 

 -

 

 

 -

 

 
2,033 

 

 
33 

    Real estate term other - AQR substandard

 
1,386 

 

 
4 

 

 

 -

 

 

 -

    Consumer secured by 1st deeds of trust - AQR pass

 
90 

 

 
1 

 

 
94 

 

 
1 

    Consumer other - AQR pass

 

 -

 

 

 -

 

 
172 

 

 
2 

    Consumer other - AQR substandard

 
68 

 

 

 -

 

 

 -

 

 

 -

Subtotal

$
10,776 

 

$
137 

 

$
9,627 

 

$
109 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$

 -

 

$

 -

 

$
83 

 

$

 -

    Commercial - AQR special mention

 

 -

 

 

 -

 

 
160 

 

 

 -

    Commercial - AQR doubtful

 
255 

 

 

 -

 

 
201 

 

 

 -

    Commercial - AQR loss

 

 -

 

 

 -

 

 
204 

 

 

 -

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

 

 -

 

 

 -

 

 
826 

 

 

 -

    Real estate term other - AQR substandard

 

 -

 

 

 -

 

 
2,141 

 

 
7 

    Consumer secured by 1st deed of trust - AQR pass

 

 -

 

 

 -

 

 
175 

 

 

 -

    Consumer secured by 1st deed of trust - AQR substandard

 
192 

 

 

 -

 

 

 -

 

 

 -

    Consumer other - AQR substandard

 
158 

 

 

 -

 

 

 -

 

 

 -

Subtotal

$
605 

 

$

 -

 

$
3,790 

 

$
7 

Total

 

 

 

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$
183 

 

$
4 

 

$
242 

 

$
2 

    Commercial - AQR special mention

 
327 

 

 
8 

 

 
490 

 

 
6 

    Commercial - AQR substandard

 
646 

 

 
5 

 

 
735 

 

 
4 

    Commercial - AQR doubtful

 
255 

 

 

 -

 

 
642 

 

 

 -

    Commercial - AQR loss

 

 -

 

 

 -

 

 
204 

 

 

 -

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

 
470 

 

 

 -

 

 

 -

 

 

 -

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

 
353 

 

 

 -

 

 

 -

 

 

 -

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

 

 -

 

 

 -

 

 
826 

 

 

 -

    Real estate construction other - AQR pass

 
2,123 

 

 

 -

 

 
2,787 

 

 

 -

    Real estate construction other - AQR special mention

 
797 

 

 
29 

 

 

 -

 

 

 -

    Real estate term owner-occupied - AQR pass

 
517 

 

 
12 

 

 

 -

 

 

 -

    Real estate term owner-occupied - AQR special mention

 
917 

 

 
19 

 

 
527 

 

 
11 

    Real estate term owner-occupied - AQR substandard

 
380 

 

 
6 

 

 

 -

 

 

 -

    Real estate term non-owner occupied - AQR pass

 
356 

 

 
6 

 

 
1,594 

 

 
32 

    Real estate term non-owner occupied - AQR special mention

 
816 

 

 
23 

 

 
393 

 

 
7 

    Real estate term non-owner occupied - AQR substandard

 
1,347 

 

 
20 

 

 
362 

 

 
11 

    Real estate term other - AQR special mention

 

 -

 

 

 -

 

 
2,033 

 

 
33 

    Real estate term other - AQR substandard

 
1,386 

 

 
4 

 

 
2,141 

 

 
7 

    Consumer secured by 1st deeds of trust - AQR pass

 
90 

 

 
1 

 

 
269 

 

 
1 

    Consumer secured by 1st deeds of trust - AQR substandard

 
192 

 

 

 -

 

 

 -

 

 

 -

    Consumer other - AQR pass

 

 -

 

 

 -

 

 
172 

 

 
2 

    Consumer other - AQR substandard

 
226 

 

 

 -

 

 

 -

 

 

 -

Total Impaired Loans

$
11,381 

 

$
137 

 

$
13,417 

 

$
116 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

2013

 

2012

(In Thousands)

Average Recorded Investment

 

Interest Income Recognized

 

Average Recorded Investment

 

Interest Income Recognized

With no related allowance recorded

 

 

 

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$
123 

 

$
8 

 

$
226 

 

$
9 

    Commercial - AQR special mention

 
381 

 

 
28 

 

 
325 

 

 
21 

    Commercial - AQR substandard

 
814 

 

 
25 

 

 
888 

 

 
4 

    Commercial - AQR doubtful

 

 -

 

 

 -

 

 
543 

 

 

 -

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

 
158 

 

 

 -

 

 

 -

 

 

 -

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

 
431 

 

 

 -

 

 

 -

 

 

 -

    Real estate construction other - AQR pass

 
2,371 

 

 

 -

 

 
2,861 

 

 

 -

    Real estate construction other - AQR special mention

 
269 

 

 
29 

 

 

 -

 

 

 -

    Real estate term owner occupied- AQR pass

 
347 

 

 
23 

 

 

 -

 

 

 -

    Real estate term owner occupied- AQR special mention

 
980 

 

 
57 

 

 
502 

 

 
29 

    Real estate term owner occupied- AQR substandard

 
223 

 

 
6 

 

 

 -

 

 

 -

    Real estate term owner occupied- AQR loss

 
134 

 

 

 -

 

 

 -

 

 

 -

    Real estate term non-owner occupied- AQR pass

 
120 

 

 
6 

 

 
1,614 

 

 
95 

    Real estate term non-owner occupied- AQR special mention

 
857 

 

 
61 

 

 
401 

 

 
21 

    Real estate term non-owner occupied- AQR substandard

 
1,468 

 

 
65 

 

 
376 

 

 
33 

    Real estate term other - AQR special mention

 

 -

 

 

 -

 

 
2,044 

 

 
99 

    Real estate term other - AQR substandard

 
1,490 

 

 
17 

 

 

 -

 

 

 -

    Consumer secured by 1st deeds of trust - AQR pass

 
91 

 

 
4 

 

 
95 

 

 
4 

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

 
28 

 

 
1 

 

 

 -

 

 

 -

    Consumer other - AQR pass

 

 -

 

 

 -

 

 
179 

 

 
5 

    Consumer other - AQR substandard

 
176 

 

 
3 

 

 

 -

 

 

 -

Subtotal

$
10,461 

 

$
333 

 

$
10,054 

 

$
320 

 

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded

 

 

 

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$

 -

 

$

 -

 

$
86 

 

$
4 

    Commercial - AQR special mention

 

 -

 

 

 -

 

 
170 

 

 

 -

    Commercial - AQR substandard

 
146 

 

 

 -

 

 

 -

 

 

 -

    Commercial - AQR doubtful

 
86 

 

 

 -

 

 
205 

 

 

 -

    Commercial - AQR loss

 
61 

 

 

 -

 

 
212 

 

 

 -

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

 
510 

 

 

 -

 

 
908 

 

 

 -

    Real estate term other - AQR substandard

 

 -

 

 

 -

 

 
2,461 

 

 
20 

    Consumer secured by 1st deeds of trust - AQR pass

 

 -

 

 

 -

 

 
176 

 

 

 -

    Consumer secured by 1st deeds of trust - AQR substandard

 
195 

 

 

 -

 

 

 -

 

 

 -

    Consumer other - AQR substandard

 
53 

 

 

 -

 

 

 -

 

 

 -

Subtotal

$
1,051 

 

$

 -

 

$
4,218 

 

$
24 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

    Commercial - AQR pass

$
123 

 

$
8 

 

$
312 

 

$
13 

    Commercial - AQR special mention

 
381 

 

 
28 

 

 
495 

 

 
21 

    Commercial - AQR substandard

 
960 

 

 
25 

 

 
888 

 

 
4 

    Commercial - AQR doubtful

 
86 

 

 

 -

 

 
748 

 

 

 -

    Commercial - AQR loss

 
61 

 

 

 -

 

 
212 

 

 

 -

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

 
158 

 

 

 -

 

 

 -

 

 

 -

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

 
431 

 

 

 -

 

 

 -

 

 

 -

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

 
510 

 

 

 -

 

 
908 

 

 

 -

    Real estate construction other - AQR pass

 
2,371 

 

 

 -

 

 
2,861 

 

 

 -

    Real estate construction other - AQR special mention

 
269 

 

 
29 

 

 

 -

 

 

 -

    Real estate term owner-occupied - AQR pass

 
347 

 

 
23 

 

 

 -

 

 

 -

    Real estate term owner-occupied - AQR special mention

 
980 

 

 
57 

 

 
502 

 

 
29 

    Real estate term owner-occupied - AQR substandard

 
223 

 

 
6 

 

 

 -

 

 

 -

    Real estate term owner-occupied - AQR loss

 
134 

 

 

 -

 

 

 -

 

 

 -

    Real estate term non-owner occupied - AQR pass

 
120 

 

 
6 

 

 
1,614 

 

 
95 

    Real estate term non-owner occupied - AQR special mention

 
857 

 

 
61 

 

 
401 

 

 
21 

    Real estate term non-owner occupied - AQR substandard

 
1,468 

 

 
65 

 

 
376 

 

 
33 

    Real estate term other - AQR special mention

 

 -

 

 

 -

 

 
2,044 

 

 
99 

    Real estate term other - AQR substandard

 
1,490 

 

 
17 

 

 
2,461 

 

 
20 

    Consumer secured by 1st deeds of trust - AQR pass

 
91 

 

 
4 

 

 
271 

 

 
4 

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

 
28 

 

 
1 

 

 

 -

 

 

 -

    Consumer secured by 1st deeds of trust - AQR substandard

 
195 

 

 

 -

 

 

 -

 

 

 -

    Consumer other - AQR pass

 

 -

 

 

 -

 

 
179 

 

 
5 

    Consumer other - AQR substandard

 
229 

 

 
3 

 

 

 -

 

 

 -

Total Impaired Loans

$
11,512 

 

$
333 

 

$
14,272 

 

$
344 

 

Loans classified as troubled debt restructurings (“TDR”) totaled $8.9 million and $12.1 million  at  September 30, 2013 and December 31, 2012, respectively.  A TDR 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 it 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 following table presents newly restructured loans that occurred during the  three months ended September 30, 2013.  There were no newly restructured loans in the first six months of 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrual

 

Nonaccrual

 

Total

(In Thousands)

 

Status

 

Status

 

Modifications

New Troubled Debt Restructurings

 

 

 

 

 

 

 

 

 

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

 

$
353 

 

$

 -

 

$
353 

                   Subtotal

 

$
353 

 

$

 -

 

$
353 

 

 

 

 

 

 

 

 

 

 

Existing Troubled Debt Restructurings

 

 
6,762 

 

 
1,750 

 

 
8,512 

                   Total

 

$
7,115 

 

$
1,750 

 

$
8,865 

 

 

 

 

 

 

 

 

 

 

The following table presents newly restructured loans that occurred during the nine months ended September 30, 2013 by concession (terms modified):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

 

Number of

 

Rate

 

Term

 

Payment

 

Combination

 

Total

(In Thousands)

Contracts

 

Modification

 

Modification

 

Modification

 

Modification

 

Modifications

Pre-Modification Outstanding Recorded Investment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate construction one-to-four family -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    AQR special mention

1

 

$

 -

 

$

 -

 

$
353 

 

$

 -

 

$
353 

Total

1

 

$

 -

 

$

 -

 

$
353 

 

$

 -

 

$
353 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Post-Modification Outstanding Recorded Investment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate construction one-to-four family -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    AQR special mention

1

 

$

 -

 

$

 -

 

$
353 

 

$

 -

 

$
353 

Total

1

 

$

 -

 

$

 -

 

$
353 

 

$

 -

 

$
353 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The loans in the following table are past due, and they are nonaccrual loans.  The following table presents TDRs that occurred during the twelve month periods ending September 30, 2013 and 2012, respectively, that subsequently defaulted during the nine-months ended September 30, 2013 and 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

 

September 30, 2012

 

Number

 

 

Number

 

(In  Thousands)

of Contracts

Recorded Investment

 

of Contracts

Recorded Investment

Troubled Debt Restructurings that Subsequently Defaulted:

 

 

 

 

 

 

 

    Commercial - AQR pass

 -

$

 -

 
1 

$
125 

    Commercial - AQR substandard

 -

 

 -

 
1 

 
123 

    Commercial - AQR doubtful

 -

 

 -

 
2 

 
506 

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

 -

 

 -

 
1 

 
810 

    Real estate term non-owner occupied - AQR pass

 -

 

 -

 
1 

 
864 

    Real estate term other - AQR substandard
2 

 
1,137 

 

 -

 

 -

    Consumer secured by 1st deeds of trust - AQR pass
1 

 
89 

 
1 

 
93 

                   Total
3 

$
1,226 

 
7 

$
2,521 

 

 

 

 

 

 

 

 

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 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 nine months ended September 30, 2013 on loans that were later classified as TDRs.    There were no TDRs with specific impairment at  September 30, 2013.