XML 67 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
NOTE 3 - LOANS
 6 Months Ended
Jun. 30, 2013
Loans Receivable, Net [Abstract]  
LOANS

NOTE 3 – LOANS

 

The Company originates loans for business, consumer and real estate activities and for equipment purchases. Such loans are concentrated in the Company’s market areas which consist of Yolo, Placer, Sonoma, Shasta, Humboldt, Mendocino, Trinity and Del Norte Counties and neighboring communities. Major classifications of loans were as follows (in thousands):

 

    June 30,     December 31,  
    2013     2012  
Commercial   $ 49,054     $ 46,078  
Real estate - commercial     319,206       295,630  
Real estate - construction     18,535       23,003  
Real estate - mortgage     68,637       74,353  
Installment     6,026       6,689  
Other     42,547       45,941  
Gross loans     504,005       491,694  
Deferred loan fees, net     269       517  
Allowance for loan losses     (9,527 )     (10,458 )
Total loans, net   $ 494,747     $ 481,753  

 

Certain real estate loans receivable are pledged as collateral for available borrowings with the FHLB, FRB, and certain correspondent banks. Pledged loans totaled $101,239,000 and $116,929,000 at June 30, 2013 and December 31, 2012, respectively.

 

The following table presents impaired loans and the related allowance for loan losses as of the dates indicated (in thousands):

 

    As of June 30,  2013     As of December 31, 2012  
    Recorded Investment     Unpaid Principal Balance     Related Allowance     Recorded Investment     Unpaid Principal Balance     Related Allowance  
With no allocated allowance                                        
Commercial   $ 175     $ 175     $ —     $ 585     $ 586     $ —  
Real estate - commercial     5,002       5,309       —       2,778       2,974       —  
Real estate - construction     860       870       —       1,210       1,273       —  
Real estate - mortgage     1,173       1,203       —       684       736       —  
Installment     116       134       —       122       138       —  
Other     253       266       —       111       120       —  
    Subtotal     7,579       7,957       —       5,490       5,827       —  
                                                 
With allocated allowance                                        
Commercial     473       485       88       —       —       —  
Real estate - commercial     —       —       —       184       217       171  
Real estate - construction     —       —       —       161       161       18  
Real estate - mortgage     164       164       164       —       —       —  
Other     140       140       140       —       —       —  
Subtotal     777       789       392       345       378       189  
Total Impaired Loans   $ 8,356     $ 8,746     $ 392     $ 5,835     $ 6,205     $ 189  

 

The following table presents the average balance and interest income recognized related to impaired loans for the period indicated (in thousands):

 

    For the three months ended June 30,  
    2013     2012  
         
      Average Book
Balance		       Interest Income
Recognized		       Average Book
Balance		       Interest Income
Recognized		  
                                 
Commercial   $ 438     $ —     $ 1,143     $ —  
Real estate - commercial     5,357       21       5,989       —  
Real estate - construction     874       6       8,388       —  
Real estate - mortgage     1,371       10       950       —  
Installment     144       1       140       —  
Other     407       —       124       —  
    Total   $ 8,591     $ 38     $ 16,734     $ —  

 

    For the six months ended June 30,  
    2013     2012  
    Average
Book
Balance		     Interest
Income Recognized		     Average
Book
Balance		     Interest
Income Recognized		  
                 
Commercial   $ 455     $ —     $ 1,173     $ —  
Real estate - commercial     5,370       41       6,119       —  
Real estate - construction     877       13       8,394       —  
Real estate - mortgage     1,379       20       964       —  
Installment     145       2       144       —  
Other     408       —       138       —  
    Total   $ 8,634     $ 76     $ 16,932     $ —  

  

Nonperforming loans include all such loans that are either on nonaccrual status or are 90 days past due as to principal or interest but still accrue interest because such loans are well-secured and in the process of collection. Nonperforming loans are summarized as follows (in thousands):

 

    June 30,
2013		     December 31,
2012		  
Nonaccrual loans   $ 5,871     $ 5,835  
Loans 90 days past due or more but still accruing interest     —       —  
Total nonperforming loans   $ 5,871     $ 5,835  
                 
Nonaccrual loans to total gross loans     1.16 %     1.19 %
Nonperforming loans to total gross loans     1.16 %     1.19 %

 

   
If interest on nonaccrual loans had been accrued, such income would have approximated $135,000 and $357,000 for the six months ended June 30, 2013 and 2012, respectively.

 

The following table shows an aging analysis of the loan portfolio by the amount of time past due (in thousands):

 

    As of June 30, 2013  
      Accruing Interest                  
      Current       30-89 Days Past Due       Greater than 90 Days Past Due       Nonaccrual       Total  
                                         
Commercial   $ 48,406     $ —     $ —     $ 648     $ 49,054  
Real estate - commercial     315,464       73       —       3,669       319,206  
Real estate - construction     18,085       —       —       450       18,535  
Real estate - mortgage     67,993       22       —       622       68,637  
Installment     5,890       47       —       89       6,026  
Other     42,154       —       —       393       42,547  
Total   $ 497,992     $ 142     $ —     $ 5,871     $ 504,005  
                                         
      As of December 31, 2012  
      Accruing Interest                  
      Current       30-89 Days Past Due       Greater than 90 Days Past Due       Nonaccrual       Total  
                                         
Commercial   $ 45,473     $ 20     $ —     $ 585     $ 46,078  
Real estate - commercial     292,505       163       —       2,962       295,630  
Real estate - construction     21,436       196       —       1,371       23,003  
Real estate - mortgage     72,907       762       —       684       74,353  
Installment     6,529       38       —       122       6,689  
Other     45,581       249       —       111       45,941  
Total   $ 484,431     $ 1,428     $ —     $ 5,835     $ 491,694  

 

A troubled debt restructuring (“TDRs”) is a formal modification of the terms of a loan when the lender, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan.

 

At June 30, 2013, accruing TDRs were $2,485,000 and non-accrual TDRs were $1,170,000 compared to accruing TDRs of $2,414,000 and non-accrual TDRs of $1,072,000 at December 31, 2012. At June 30, 2013, there were no specific reserves allocated to customers whose loan terms were modified in troubled debt restructurings. There are no commitments to lend additional amounts at June 30, 2013 to customers with outstanding loans that are classified as troubled debt restructurings. There were no TDRs that subsequently defaulted during the twelve months following the modification of terms.

 

 The following table present loans that were modified and recorded as TDRs for the three and six months ended June 30, 2013 and 2012.

 

    For the three months ended June 30,2013     For the six months ended June 30, 2013  
      Number of Contracts       Pre-Modification Outstanding Recorded Investment       Post-Modification Outstanding Recorded Investment       Number of Contracts       Pre-Modification Outstanding Recorded Investment       Post-Modification Outstanding Recorded Investment  
Commercial     —     $ —     $ —       1     $ 45     $ 45  
Real estate - commercial     —     $ —     $ —       1     $ 290     $ 290  
Real estate-construction     —     $ —     $ —       1     $ 77     $ 77  
Real estate - mortgage     1     $ 201     $ 201       1     $ 201     $ 201  
Other     1     $ 48     $ 48       1     $ 48     $ 48  

 

    For the three months ended June 30, 2012     For the six months ended June 30, 2012  
    Number of Contracts     Pre-Modification Outstanding Recorded Investment     Post-Modification Outstanding Recorded Investment     Number of Contracts     Pre-Modification Outstanding Recorded Investment     Post-Modification Outstanding Recorded Investment  
Commercial     1     $ 1,076     $ 1,076       1     $ 1,076     $ 1,076  
Real estate - commercial     2     $ 278     $ 278       2     $ 278     $ 278  
Installment     1     $ 25     $ 25       2     $ 73     $ 73  

 

A summary of TDRs by type of concession and by type of loan as of June 30, 2013 and December 31, 2012, is shown below:

 

    June 30, 2013  
Accruing TDRs   Number of Contracts     Rate Reduction     Maturity Extension     Rate Reduction and Maturity Extension     Total  
Real estate - commercial     5     $ —     $ 199     $ 1,133     $ 1,332  
Real estate - construction     2     $ —     $ 411     $ —     $ 411  
Real estate - mortgage     2     $ —     $ 295     $ 420     $ 715  
Installment     1     $ —     $ —     $ 27     $ 27  

 

    June 30, 2013  
Nonaccrual TDRs   Number of Contracts     Rate Reduction     MaturityExtension     Rate Reduction and Maturity Extension     Total  
Commercial     2     $ —     $ —     $ 518     $ 518  
Real estate - commercial     1     $ —     $ —     $ 290     $ 290  
Real estate - mortgage     1     $ —     $ —     $ 201     $ 201  
Installment     3     $ —     $ —     $ 89     $ 89  
Other     2     $ —     $ —     $ 72     $ 72  

 

    December 31, 2012  
Accruing TDRs     Number of Contracts       Rate Reduction       Maturity Extension       Rate Reduction and Maturity Extension       Total  
Real estate - commercial     5     $ 202     $ —     $ 1,148     $ 1,350  
Real estate-construction     1     $ —     $ 343     $ —     $ 343  
Real estate - mortgage     2     $ —     $ 298     $ 423     $ 721  

 

    December 31, 2012  
Nonaccrual TDRs     Number of Contracts       Rate Reduction       Maturity Extension       Rate Reduction and Maturity Extension       Total  
Commercial     1     $ —     $ —     $ 529     $ 529  
Real estate-construction     2     $ 327     $ 71     $ —     $ 398  
Installment     4     $ —     $ —     $ 120     $ 120  
Other     1     $ —     $ —     $ 25     $ 25