Note 4 - Allowance for Loan Losses

12 Months Ended

Dec. 31, 2012

Allowance for Credit Losses [Text Block]

Note 4. Allowance for Loan Losses

The following table presents, as of December 31, 2012, the total loans and loans by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment) and the total allowance for loan losses, the allowance by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment).

	Allowance for loan losses																Loans
Class of Loan In thousands of dollars	Beginning balance		Charge- offs			Recoveries		Provisions			Ending balance		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Ending balance		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment
Construction loans:
Residential	$	90	$	—		$	—	$	27		$	117	$	—	$	117	$	5,036	$	—	$	5,036
Land acquisition, development & commercial		953		(519	)		—		377			811		—		811		20,198		3,632		16,566
Real estate:
Residential		538		(151	)		—		338			725		137		588		69,691		810		68,881
Commercial		1,314		(478	)		18		200			1,054		71		983		109,302		10,157		99,145
Commercial, Industrial & agricultural		628		(71	)		—		(98	)		459		—		459		42,382		916		41,466
Equity lines		313		(393	)		—		466			386		—		386		20,504		115		20,389
Consumer		143		(4	)		1		5			145		—		145		7,824		—		7,824
Unallocated		—		—			—		93			93		—		93		—		—		—
Total	$	3,979	$	(1,616	)	$	19	$	1,408		$	3,790	$	208	$	3,582	$	274,937	$	15,630	$	259,307

The following table presents, as of December 31, 2011, the total loans and loans by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment) and the total allowance for loan losses, the allowance by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment).

	Allowance for loan losses																Loans
Class of Loan In thousands of dollars	Beginning balance		Charge- offs			Recoveries		Provisions			Ending balance		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Ending balance		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment
Construction loans:
Residential	$	121	$	(150	)	$	—	$	119		$	90	$	—	$	90	$	3,695	$	—	$	3,695
Land acquisition, development & commercial		1,802		(1,500	)		—		651			953		249		704		23,911		2,975		20,936
Real estate:
Residential		785		(170	)		—		(77			538		—		538		58,070		714		57,356
Commercial		1,556		(356	)		—		114			1,314		292		1,022		102,312		11,588		90,724
Commercial, Industrial & agricultural		702		(139	)		—		65	)		628		—		628		36,297		—		36,297
Equity lines		222		(158	)		—		249			313		88		225		19,018		642		18,376
Consumer		40		(1	)		3		101			143		—		143		5,776		—		5,776
Total	$	5,228	$	(2,474	)	$	3	$	1,222		$	3,979	$	629	$	3,350	$	249,079	$	15,919	$	233,160

Loans by credit quality indicators as of December 31, 2012 were as follows:

(Dollars In Thousands)	Pass		Special Mention		Substandard Accruing		Substandard Nonaccrual		Total
Construction:
Residential	$	5,036	$	–	$	–	$	–	$	5,036
Land acquisition, development & commercial		16,479		–		1,963		1,756		20,198
Real Estate:
Residential		63,299		5,581		229		582		69,691
Commercial		103,010		2,479		3,577		236		109,302
Commercial, industrial & agricultural		41,313		131		938		–		42,382
Equity lines		20,364		25		–		115		20,504
Consumer		7,824		–		–		–		7,824
Total	$	257,325	$	8,216	$	6,707	$	2,689	$	274,937

At December 31, 2012, the Company does not have any loans classified as Doubtful or Loss.

Loans by credit quality indicators as of December 31, 2011 were as follows:

(Dollars In Thousands)	Pass		Special Mention		Substandard Accruing		Substandard Nonaccrual		Doubtful Nonaccrual		Total
Construction:
Residential	$	3,695	$	–	$	–	$	–	$	–	$	3,695
Land acquisition, development & commercial		21,039		–		2,240		433		199		23,911
Real Estate:
Residential		56,767		589		–		714		–		58,070
Commercial		90,421		2,721		9,170		–		–		102,312
Commercial, industrial & agricultural		35,136		178		940		43		–		36,297
Equity lines		18,375		–		–		643		–		19,018
Consumer		5,776		–		–		–		–		5,776
Total	$	231,209	$	3,488	$	12,350	$	1,833	$	199	$	249,079

At December 31, 2011, the Company does not have any loans classified as Loss.