Loans (Tables)

9 Months Ended

Sep. 30, 2012

Composition of Net Loans

The following table sets forth the composition of net loans as of the dates indicated:

	September 30, 2012		December 31, 2011
(Dollars in thousands)	(Unaudited)
Construction & Development	$	66,709	$	51,078
Residential Real Estate		49,841		40,826
Commercial Real Estate		250,160		231,819
Real Estate Loans		366,710		323,723
Commercial & Industrial Loans		93,893		94,876
Consumer Loans		1,941		2,037
Total Loans		462,544		420,636
Less: Unearned Fees, net		542		699
Less: Allowance for Loan Losses		6,158		4,932
Net Loans	$	455,844	$	415,005

Age analysis of Composition of Past Due Loans and Non-Accrual Loans by Class of Loans

The following tables set forth the aging analysis of the composition of past due loans and non-accrual loans by class of loans, as of dates indicated:

September 30, 2012	30-59 Days Past Due		60-89 Days Past Due		Non-Accrual		Total Past Due		Current Loans		Total Loans
(Dollars in thousands)	(Unaudited)
Commercial & Industrial Loans	$	62	$	—	$	1,408	$	1,470	$	92,423	$	93,893
Construction & Development		—		—		409		409		66,300		66,709
Commercial Real Estate		1,648		—		2,802		4,450		245,710		250,160
Residential Real Estate		151		1,559		—		1,710		48,131		49,841
Consumer Loans		19		—		—		19		1,922		1,941
Balance at end of period	$	1,880	$	1,559	$	4,619	$	8,058	$	454,486	$	462,544

December 31, 2011	30-59 Days Past Due		60-89 Days Past Due		Non-Accrual		Total Past Due		Current Loans		Total Loans
(Dollars in thousands)
Commercial & Industrial Loans	$	226	$	242	$	1,237	$	1,705	$	93,171	$	94,876
Construction & Development		819		—		740		1,559		49,519		51,078
Commercial Real Estate		3,152		3,763		1,101		8,016		223,803		231,819
Residential Real Estate		961		—		—		961		39,865		40,826
Consumer Loans		—		—		—		—		2,037		2,037
Balance at end of period	$	5,158	$	4,005	$	3,078	$	12,241	$	408,395	$	420,636

Risk Category of Loans

The following tables present the risk categories of loans as of the dates indicated:

September 30, 2012	Pass		Watch		Special Mention		Substandard		Doubtful		Total
(Dollars in thousands)	(Unaudited)
Commercial & Industrial Loans	$	85,196	$	3,405	$	3,752	$	1,540	$	—	$	93,893
Construction & Development		66,038		262		—		409		—		66,709
Commercial Real Estate		234,314		1,847		8,078		4,820		1,101		250,160
Residential Real Estate		47,591		575		725		950		—		49,841
Consumer Loans		1,735		187		19		—		—		1,941
Balance at end of period	$	434,874	$	6,276	$	12,574	$	7,719	$	1,101	$	462,544

December 31, 2011	Pass		Watch		Special Mention		Substandard		Doubtful		Total
(Dollars in thousands)
Commercial & Industrial Loans	$	84,109	$	5,644	$	4,383	$	740	$	—	$	94,876
Construction & Development		48,687		1,154		—		1,237		—		51,078
Commercial Real Estate		214,339		1,820		9,629		6,031		—		231,819
Residential Real Estate		39,391		1,293		—		142		—		40,826
Consumer Loans		1,813		224		—		—		—		2,037
Balance at end of period	$	388,339	$	10,135	$	14,012	$	8,150	$	—	$	420,636

Breakdown of Non-accrual Loans

The following table presents a breakdown of non-accrual loans as of the dates indicated:

	September 30, 2012		December 31, 2011
(Dollars in thousands)	(Unaudited)
Commercial & Industrial	$	1,408	$	1,237
Construction		—		—
Other		1,408		1,237
Construction & Development		409		740
Owner Occupied		—		—
Other		409		740
Commercial Real Estate		2,802		1,101
Owner Occupied		1,101		1,101
Other		1,701		—
Consumer		—		—
Total Non-Accrual Loans	$	4,619	$	3,078

Troubled Debt Restructurings

The following table presents information regarding troubled debt restructurings as of the dates indicated:

	September 30, 2012						December 31, 2011
	Number of Loans		Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance		Number of Loans		Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance
(Dollars in thousands)	(Unaudited)
Commercial & Industrial Loans		—	$	—	$	—		1	$	430	$	430
Construction & Development		—		—		—		—		—		—
Commercial Real Estate		3		2,229		2,229		3		2,198		2,198
Residential Real Estate		5		968		968		1		142		142
Consumer		1		19		19		—		—		—
Total Loans		9	$	3,216	$	3,216		5	$	2,770	$	2,770

Information by Class Regarding Troubled Debt Restructurings which had Payments Default

The following table presents loan information by class regarding TDRs which had payments defaults during the nine months ended September 30, 2012 and year ended December 31, 2011:

	September 30, 2012						December 31, 2011
(Dollars in thousands)	Number of Loans		Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance		Number of Loans		Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance
	(Unaudited)
Commercial & Industrial Loans		5	$	274	$	274		—	$	—	$	—
Construction & Development		1		553		409		1		573		418
Commercial Real Estate		1		1,701		1,701		1		46		46
Residential Real Estate		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total Loans		7	$	2,528	$	2,384		2	$	619	$	464

Non-Performing Assets

Non-performing assets were as follows as of the dates indicated:

	September 30, 2012		December 31, 2011
(Dollars in thousands)	(Unaudited)
Non-accrual loans	$	4,619	$	3,078
Loans 90-days past due and accruing		—		—
Trouble Debt Restructurings		3,216		3,226
Asset-backed security		68		68
Other Real Estate Owned		1,610		615
Total Non-Performing Loans and Assets	$	9,513	$	6,987