Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Loans Held for Investment, Net of Unearned Income

The following is a summary of the Bank's loans held for investment, net of unearned income of $530 thousand at March 31, 2013 and $736 thousand at December 31, 2012:



(Dollars in thousands)	March 31, 2013		December 31, 2012
Construction and land development loans	$	62,116	$	58,745
Other commercial real estate loans	495,337		484,114
Asset-based loans	35,527		36,679
Other commercial loans	114,598		116,871
Home equity loans	39,047		37,736
Other 1-4 family residential loans	203,260		200,992
Consumer loans	37,772		40,336
Total loans	$	987,657	$	975,473

Schedule of Past Due Status of Loans, by Type

The following table presents a summary of the past due status of all loans, including nonaccrual loans, by type at March 31, 2013:



(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
Construction and land development loans	$	112	$	14	$	694	$	820	$	61,296	$	62,116	$	—
Other commercial real estate loans	865		454		1,464		2,783		492,554		495,337		19
Asset based loans	—		—		81		81		35,446		35,527		—
Other commercial loans	503		37		277		817		113,781		114,598		52
Home equity loans	458		—		—		458		38,589		39,047		—
Other 1-4 family residential loans	2,618		1,657		620		4,895		198,365		203,260		174
Consumer loans	206		44		52		302		37,470		37,772		23
Total	$	4,762	$	2,206	$	3,188	$	10,156	$	977,501	$	987,657	$	268

The following table presents a summary of the past due status of all loans, including nonaccrual loans, by type at December 31, 2012:



(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Total Loans > 90 Days and Accruing
Construction and land development loans	$	369	$	26	$	817	$	1,212	$	57,533	$	58,745	$	—
Other commercial real estate loans	1,255		294		3,647		5,196		478,918		484,114		66
Asset based loans	—		—		81		81		36,598		36,679		—
Other commercial loans	366		50		408		824		116,047		116,871		64
Home equity loans	49		—		31		80		37,656		37,736		31
Other 1-4 family residential loans	1,329		584		791		2,704		198,288		200,992		137
Consumer loans	217		60		23		300		40,036		40,336		23
Total	$	3,585	$	1,014	$	5,798	$	10,397	$	965,076	$	975,473	$	321

Schedule of Nonaccrual Status Loans and Nonperforming Assets

The following table presents a summary of the nonaccrual status of loans by type at March 31, 2013 and December 31, 2012 and other nonperforming assets:



(Dollars in thousands)	March 31, 2013		December 31, 2012
Construction and land development loans	$	891	$	817
Other commercial real estate loans	2,895		4,244
Asset based loans	81		81
Other commercial loans	612		694
Home equity loans	70		72
Other 1-4 family residential loans	2,684		1,524
Consumer loans	44		12
Total nonaccrual loans	$	7,277	$	7,444
Other real estate owned	24,820		25,970
Total nonperforming credit-related assets	$	32,097	$	33,414

Schedule of Loans by Credit Risk Rating

The following table presents a summary of loans by credit risk rating at March 31, 2013.



(Dollars in thousands)
	Construction		Other Commercial Real Estate		Asset-Based		Other Commercial
10 and 20	$	—	$	—	$	—	$	10,972
30-32	44,247		409,985		25,155		95,857
40	7,754		59,427		10,283		6,578
50	9,515		25,925		89		1,121
60	600		—		—		70
Total	$	62,116	$	495,337	$	35,527	$	114,598



(Dollars in thousands)
	Home Equity		Other 1-4 Family		Consumer		Total
10 and 20	$	—	$	51	$	12,544	$	23,567
30-32	37,195		186,763		24,488		823,690
40	807		9,120		538		94,507
50	1,045		7,238		200		45,133
60	—		88		2		760
Total	$	39,047	$	203,260	$	37,772	$	987,657

The following table presents a summary of loans by credit risk rating at December 31, 2012.



(Dollars in thousands)
	Construction		Other Commercial Real Estate		Asset-Based		Other Commercial
10 and 20	$	—	$	—	$	—	$	10,329
30-32	41,560		394,904		25,830		101,937
40	6,847		62,387		10,572		3,253
50	9,738		26,823		277		1,280
60	600		—		—		72
Total	$	58,745	$	484,114	$	36,679	$	116,871



(Dollars in thousands)
	Home Equity		Other 1-4 Family		Consumer		Total
10 and 20	$	—	$	58	$	13,161	$	23,548
30-32	35,848		184,703		26,439		811,221
40	733		9,529		602		93,923
50	1,155		6,613		132		46,018
60	—		89		2		763
Total	$	37,736	$	200,992	$	40,336	$	975,473

Schedule of Loans Individually Reviewed for Impairment Allowances and Averaged Recorded Investment in Impaired Loans

The following table summarizes loans that were individually reviewed for impairment allowances at December 31, 2012:



(Dollars in thousands)
	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans without a specific valuation allowance:
Construction and land development loans	$	6,903	$	9,257	$	—
Other commercial real estate loans	27,156		27,353		—
Asset based loans	—		—		—
Other commercial loans	1,093		1,254		—
Home equity loans	1,084		1,084		—
Other 1-4 family residential loans	6,577		6,687		—
Consumer loans	94		97		—
Loans with a specific valuation allowance:
Construction and land development loans	$	3,435	$	3,435	$	2,036
Other commercial real estate loans	14,766		16,177		2,421
Asset based loans	—		—		—
Other commercial loans	259		259		209
Home equity loans	72		72		36
Other 1-4 family residential loans	1,920		1,920		496
Consumer loans	40		40		40
Total:
Construction and land development loans	$	10,338	$	12,692	$	2,036
Other commercial real estate loans	41,922		43,530		2,421
Asset based loans	—		—		—
Other commercial loans	1,352		1,513		209
Home equity loans	1,156		1,156		36
Other 1-4 family residential loans	8,497		8,607		496
Consumer loans	134		137		40

The following table summarizes the average recorded investment in impaired loans and the amount of interest income recognized for the first quarter of 2012:



(Dollars in thousands)	Average Investment In Impaired Loans		Interest Income Recognized
	Quarter-to-Date		Quarter-to-Date
Loans without a specific valuation allowance:
Construction and land development loans	$	13,900	$	150
Other commercial real estate loans	34,382		408
Asset based loans	—		—
Other commercial loans	673		9
Home equity loans	325		1
Other 1-4 family residential loans	5,280		53
Consumer loans	130		2
Loans with a specific valuation allowance:
Construction and land development loans	$	4,634	$	32
Other commercial real estate loans	9,614		61
Asset based loans	—		—
Other commercial loans	822		6
Home equity loans	327		2
Other 1-4 family residential loans	2,356		31
Consumer loans	47		1
Total:
Construction and land development loans	$	18,534	$	182
Other commercial real estate loans	43,996		469
Asset based loans	—		—
Other commercial loans	1,495		15
Home equity loans	652		3
Other 1-4 family residential loans	7,636		84
Consumer loans	177		3

The following table summarizes the average recorded investment in impaired loans and the amount of interest income recognized for the first quarter of 2013:



(Dollars in thousands)	Average Investment In Impaired Loans		Interest Income Recognized
	Quarter-to-Date		Quarter-to-Date
Loans without a specific valuation allowance:
Construction and land development loans	$	6,343	$	68
Other commercial real estate loans	24,018		257
Asset based loans	—		—
Other commercial loans	942		12
Home equity loans	1,102		13
Other 1-4 family residential loans	6,226		57
Consumer loans	124		—
Loans with a specific valuation allowance:
Construction and land development loans	$	3,893	$	41
Other commercial real estate loans	12,346		147
Asset based loans	—		—
Other commercial loans	331		4
Home equity loans	—		—
Other 1-4 family residential loans	1,689		16
Consumer loans	42		1
Total:
Construction and land development loans	$	10,236	$	109
Other commercial real estate loans	36,364		404
Asset based loans	—		—
Other commercial loans	1,273		16
Home equity loans	1,102		13
Other 1-4 family residential loans	7,915		73
Consumer loans	166		1

Note 4: (Continued)

The following table summarizes loans that were individually reviewed for impairment allowances at March 31, 2012:



(Dollars in thousands)
	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans without a specific valuation allowance:
Construction and land development loans	$	12,869	$	17,072	$	—
Other commercial real estate loans	33,625		36,738		—
Asset based loans	—		—		—
Other commercial loans	579		606		—
Home equity loans	322		322		—
Other 1-4 family residential loans	4,455		4,527		—
Consumer loans	119		130		—
Loans with a specific valuation allowance:
Construction and land development loans	$	4,632	$	7,307	$	1,689
Other commercial real estate loans	9,109		10,137		1,340
Asset based loans	—		—		—
Other commercial loans	814		814		361
Home equity loans	325		325		286
Other 1-4 family residential loans	2,353		2,353		420
Consumer loans	39		39		39
Total:
Construction and land development loans	$	17,501	$	24,379	$	1,689
Other commercial real estate loans	42,734		46,875		1,340
Asset based loans	—		—		—
Other commercial loans	1,393		1,420		361
Home equity loans	647		647		286
Other 1-4 family residential loans	6,808		6,880		420
Consumer loans	158		169		39

The following table summarizes loans that were individually reviewed for impairment allowances at March 31, 2013:



(Dollars in thousands)
	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans without a specific valuation allowance:
Construction and land development loans	$	6,215	$	8,569	$	—
Other commercial real estate loans	19,213		19,656		—
Asset based loans	—		—		—
Other commercial loans	744		744		—
Home equity loans	1,045		1,045		—
Other 1-4 family residential loans	5,596		5,673		—
Consumer loans	150		153		—
Loans with a specific valuation allowance:
Construction and land development loans	$	3,900	$	3,900	$	2,217
Other commercial real estate loans	12,502		13,913		2,351
Asset based loans	—		—		—
Other commercial loans	447		447		299
Home equity loans	—		—		—
Other 1-4 family residential loans	1,730		1,730		359
Consumer loans	52		52		52
Total:
Construction and land development loans	$	10,115	$	12,469	$	2,217
Other commercial real estate loans	31,715		33,569		2,351
Asset based loans	—		—		—
Other commercial loans	1,191		1,191		299
Home equity loans	1,045		1,045		—
Other 1-4 family residential loans	7,326		7,403		359
Consumer loans	202		205		52

Schedule of Allowance for Loan Losses, by Loan Cateogry

The following table summarizes the balance in the allowance for loan losses at December 31, 2012 by loan category:



(Dollars in thousands)
	Construction		Other CRE		Commercial		Residential		Consumer		Unallocated		Total
Balance December 31, 2012	$	4,909	$	5,865	$	3,266	$	2,886	$	566	$	—	$	17,492
Balance December 31, 2012:
Individually evaluated for impairment	$	2,036	$	2,421	$	209	$	532	$	40	$	—	$	5,238
Balance December 31, 2012:
Collectively evaluated for impairment	$	2,873	$	3,444	$	3,057	$	2,354	$	526	$	—	$	12,254
Balance December 31, 2012:
Loans acquired with deteriorated credit quality	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans:
Balance December 31, 2012:	$	58,745	$	484,114	$	153,550	$	238,728	$	40,336	$	—	$	975,473
Balance December 31, 2012:
Individually evaluated for impairment	$	10,338	$	41,922	$	1,352	$	9,653	$	134	$	—	$	63,399
Balance December 31, 2012:
Collectively evaluated for impairment	$	48,407	$	442,192	$	152,198	$	229,075	$	40,202	$	—	$	912,074
Balance December 31, 2012:
Loans acquired with deteriorated credit quality	$	—	$	—	$	—	$	—	$	—	$	—	$	—

The following table summarizes activity in the allowance for loan losses for the three months ended March 31, 2012 by loan category:



(Dollars in thousands)
	Construction			Other CRE			Commercial			Residential			Consumer			Unallocated		Total
Allowance for loan losses:
Balance, beginning of period	$	4,131		$	4,073		$	3,347		$	2,607		$	795		$	—	$	14,953
Provision charged to expense	32			2,446			(355		)	258			(101		)	—		2,280
Losses charged off	(92		)	(1,353		)	(208		)	(239		)	(169		)	—		(2,061		)
Recoveries	355			114			72			320			51			—		912
Balance, end of period	$	4,426		$	5,280		$	2,856		$	2,946		$	576		$	—	$	16,084
Ending balance:
Individually evaluated for impairment	$	1,689		$	1,340		$	361		$	706		$	39		$	—	$	4,135
Ending balance:
Collectively evaluated for impairment	$	2,737		$	3,940		$	2,495		$	2,240		$	537		$	—	$	11,949
Ending balance:
Loans acquired with deteriorated credit quality	$	—		$	—		$	—		$	—		$	—		$	—	$	—
Loans:
Ending balance	$	70,087		$	498,724		$	144,319		$	224,989		$	41,376		$	—	$	979,495
Ending balance:
Individually evaluated for impairment	$	17,501		$	42,734		$	1,393		$	7,455		$	158		$	—	$	69,241
Ending balance:
Collectively evaluated for impairment	$	52,586		$	455,990		$	142,926		$	217,534		$	41,218		$	—	$	910,254
Ending balance:
Loans acquired with deteriorated credit quality	$	—		$	—		$	—		$	—		$	—		$	—	$	—

The following table summarizes activity in the allowance for loan losses for the three months ended March 31, 2013 by loan category:



(Dollars in thousands)
	Construction		Other CRE			Commercial			Residential			Consumer			Unallocated		Total
Allowance for loan losses:
Balance, beginning of period	$	4,909	$	5,865		$	3,266		$	2,886		$	566		$	—	$	17,492
Provision charged to expense	316		863			42			(4		)	63			—		1,280
Losses charged off	—		(361		)	(119		)	(149		)	(118		)	—		(747		)
Recoveries	34		33			110			18			49			—		244
Balance, end of period	$	5,259	$	6,400		$	3,299		$	2,751		$	560		$	—	$	18,269
Ending balance:
Individually evaluated for impairment	$	2,217	$	2,351		$	299		$	359		$	52		$	—	$	5,278
Ending balance:
Collectively evaluated for impairment	$	3,042	$	4,049		$	3,000		$	2,392		$	508		$	—	$	12,991
Ending balance:
Loans acquired with deteriorated credit quality	$	—	$	—		$	—		$	—		$	—		$	—	$	—
Loans:
Ending balance	$	62,116	$	495,337		$	150,125		$	242,307		$	37,772		$	—	$	987,657
Ending balance:
Individually evaluated for impairment	$	10,115	$	31,715		$	1,191		$	8,371		$	202		$	—	$	51,594
Ending balance:
Collectively evaluated for impairment	$	52,001	$	463,622		$	148,934		$	233,936		$	37,570		$	—	$	936,063
Ending balance:
Loans acquired with deteriorated credit quality	$	—	$	—		$	—		$	—		$	—		$	—	$	—

Schedule of Restructured Loan Portfolio

The following table presents information about the Company’s restructured loan portfolio as of March 31, 2013 and December 31, 2012:



(Dollars in thousands)	March 31, 2013				December 31, 2012
	Recorded Balance		Allowance		Recorded Balance		Allowance
Restructured loans with an allowance:
Construction and land development loans	$	398	$	170	$	—	$	—
Other commercial real estate loans	8,559		984		11,038		1,082
Other commercial loans	63		63		—		—
Other 1-4 family residential loans	59		9		59		12
Restructured loans without an allowance:
Construction and land development loans	1,310		—		1,719		—
Other commercial real estate loans	11,751		—		11,115		—
Other commercial loans	—		—		308		—
Other 1-4 family residential loans	565		—		571		—
Total restructured loans	$	22,705	$	1,226	$	24,810	$	1,094

Schedule of Trouble Debt Restructurings

The following table presents loans modified under the terms of a TDR that became 90 days or more delinquent or were foreclosed on during the three month period ended March 31, 2012, that were initially restructured within the prior twelve months:



(Dollars in thousands)	Three Months Ended March 31, 2012
	Number of Loans	Amortized Cost
Other commercial loans	1	335
Other 1-4 family residential loans	1	152
Total subsequent defaults	2	$	487