XML 52 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Loans
 3 Months Ended
Mar. 31, 2013
Loans [Abstract]  
Loans
4.  Loans

Our assessment of the allowance for loan losses is based on an evaluation of the loan portfolio, recent loss experience, current economic conditions and other pertinent factors.
 
An analysis of the allowance for loan losses by portfolio segment for the three months ended March 31, follows:
 
 
 
 
 
 
 
 
 
 
 
Payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Plan
 
 
 
 
 
 
 
 
Commercial
 
 
Mortgage
 
 
Installment
 
 
Receivables
 
 
Unallocated
 
 
Total
 
 
(In thousands)
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Balance at beginning of period
 
$
11,402
 
 
$
21,447
 
 
$
3,378
 
 
$
144
 
 
$
7,904
 
 
$
44,275
 
 Additions (deductions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Provision for loan losses
 
 
(272
)
 
 
(139
)
 
 
375
 
 
 
(4
)
 
 
(651
)
 
 
(691
)
    Recoveries credited to allowance
 
 
536
 
 
 
622
 
 
 
286
 
 
 
7
 
 
 
-
 
 
 
1,451
 
      Loans charged against the allowance
 
 
(1,608
)
 
 
(1,767
)
 
 
(877
)
 
 
(18
)
 
 
-
 
 
 
(4,270
)
 Balance at end of period
 
$
10,058
 
 
$
20,163
 
 
$
3,162
 
 
$
129
 
 
$
7,253
 
 
$
40,765
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Balance at beginning of period
 
$
18,183
 
 
$
22,885
 
 
$
6,146
 
 
$
197
 
 
$
11,473
 
 
$
58,884
 
 Additions (deductions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Provision for loan losses
 
 
1,496
 
 
 
4,235
 
 
 
289
 
 
 
30
 
 
 
(919
)
 
 
5,131
 
    Recoveries credited to   allowance
 
 
1,006
 
 
 
548
 
 
 
326
 
 
 
-
 
 
 
-
 
 
 
1,880
 
       Loans charged against the allowance
 
 
(4,244
)
 
 
(4,397
)
 
 
(1,227
)
 
 
(21
)
 
 
-
 
 
 
(9,889
)
 Balance at end of period
 
$
16,441
 
 
$
23,271
 
 
$
5,534
 
 
$
206
 
 
$
10,554
 
 
$
56,006
 

Allowance for loan losses and recorded investment in loans by portfolio segment follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Plan
 
 
 
 
 
 
 
 
Commercial
 
 
Mortgage
 
 
Installment
 
 
Receivables
 
 
Unallocated
 
 
Total
 
 
(In thousands)
 
March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Individually evaluated  for impairment
 
$
5,936
 
 
$
12,370
 
 
$
1,494
 
 
$
-
 
 
$
-
 
 
$
19,800
 
    Collectively evaluated for impairment
 
 
4,122
 
 
 
7,793
 
 
 
1,668
 
 
 
129
 
 
 
7,253
 
 
 
20,965
 
    Total ending allowance balance
 
$
10,058
 
 
$
20,163
 
 
$
3,162
 
 
$
129
 
 
$
7,253
 
 
$
40,765
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Individually evaluated for impairment
 
$
56,309
 
 
$
85,489
 
 
$
7,349
 
 
$
-
 
 
 
 
 
 
$
149,147
 
    Collectively evaluated for impairment
 
 
557,711
 
 
 
432,744
 
 
 
177,819
 
 
 
78,311
 
 
 
 
 
 
 
1,246,585
 
    Total loans recorded investment
 
 
614,020
 
 
 
518,233
 
 
 
185,168
 
 
 
78,311
 
 
 
 
 
 
 
1,395,732
 
    Accrued interest included in recorded investment
 
 
1,689
 
 
 
2,437
 
 
 
744
 
 
 
-
 
 
 
 
 
 
 
4,870
 
 Total loans
 
$
612,331
 
 
$
515,796
 
 
$
184,424
 
 
$
78,311
 
 
 
 
 
 
$
1,390,862
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Individually evaluated for impairment
 
$
6,558
 
 
$
12,869
 
 
$
1,582
 
 
$
-
 
 
$
-
 
 
$
21,009
 
    Collectively evaluated for impairment
 
 
4,844
 
 
 
8,578
 
 
 
1,796
 
 
 
144
 
 
 
7,904
 
 
 
23,266
 
    Total ending allowance balance
 
$
11,402
 
 
$
21,447
 
 
$
3,378
 
 
$
144
 
 
$
7,904
 
 
$
44,275
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Individually evaluated  for impairment
 
$
55,634
 
 
$
88,028
 
 
$
7,505
 
 
$
-
 
 
 
 
 
 
$
151,167
 
    Collectively evaluated for impairment
 
 
563,316
 
 
 
441,703
 
 
 
183,090
 
 
 
84,692
 
 
 
 
 
 
 
1,272,801
 
   Total loans recorded  investment
 
 
618,950
 
 
 
529,731
 
 
 
190,595
 
 
 
84,692
 
 
 
 
 
 
 
1,423,968
 
   Accrued interest included  in recorded investment
 
 
1,692
 
 
 
2,391
 
 
 
746
 
 
 
-
 
 
 
 
 
 
 
4,829
 
 Total loans
 
$
617,258
 
 
$
527,340
 
 
$
189,849
 
 
$
84,692
 
 
 
 
 
 
$
1,419,139
 

Loans on non-accrual status and past due more than 90 days ("Non-performing Loans") follow:

 
90+ and
 
 
 
 
 
Total Non-
 
 
Still
 
 
Non-
 
 
Performing
 
 
Accruing
 
 
Accrual
 
 
Loans
 
 
(In thousands)
 
March 31, 2013
 
 
 
 
 
 
 
 
 
 Commercial
 
 
 
 
 
 
 
 
 
   Income producing - real estate
 
$
-
 
 
$
4,099
 
 
$
4,099
 
    Land, land development and construction - real estate
 
 
-
 
 
 
2,991
 
 
 
2,991
 
   Commercial and industrial
 
 
56
 
 
 
4,449
 
 
 
4,505
 
 Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
   1-4 family
 
 
3
 
 
 
9,153
 
 
 
9,156
 
   Resort lending
 
 
-
 
 
 
3,878
 
 
 
3,878
 
   Home equity line of credit - 1st lien
 
 
-
 
 
 
382
 
 
 
382
 
 Home equity line of credit - 2nd lien
 
 
-
 
 
 
665
 
 
 
665
 
 Installment
 
 
 
 
 
 
 
 
 
 
 
 
   Home equity installment - 1st lien
 
 
-
 
 
 
1,167
 
 
 
1,167
 
   Home equity installment - 2nd lien
 
 
-
 
 
 
606
 
 
 
606
 
   Loans not secured by real estate
 
 
-
 
 
 
396
 
 
 
396
 
   Other
 
 
-
 
 
 
-
 
 
 
-
 
 Payment plan receivables
 
 
 
 
 
 
 
 
 
 
 
 
   Full refund
 
 
-
 
 
 
18
 
 
 
18
 
   Partial refund
 
 
-
 
 
 
17
 
 
 
17
 
   Other
 
 
-
 
 
 
-
 
 
 
-
 
         Total recorded investment
 
$
59
 
 
$
27,821
 
 
$
27,880
 
  Accrued interest included in recorded investment
 
$
-
 
 
$
-
 
 
$
-
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 Commercial
 
 
 
 
 
 
 
 
 
 
 
 
   Income producing - real estate
 
$
-
 
 
$
5,611
 
 
$
5,611
 
   Land, land development and construction - real estate
 
 
-
 
 
 
4,062
 
 
 
4,062
 
   Commercial and industrial
 
 
-
 
 
 
5,080
 
 
 
5,080
 
 Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
   1-4 family
 
 
7
 
 
 
9,654
 
 
 
9,661
 
   Resort lending
 
 
-
 
 
 
4,861
 
 
 
4,861
 
   Home equity line of credit - 1st lien
 
 
-
 
 
 
529
 
 
 
529
 
   Home equity line of credit - 2nd lien
 
 
-
 
 
 
685
 
 
 
685
 
 Installment
 
 
 
 
 
 
 
 
 
 
 
 
   Home equity installment - 1st lien
 
 
-
 
 
 
1,278
 
 
 
1,278
 
   Home equity installment - 2nd lien
 
 
-
 
 
 
675
 
 
 
675
 
   Loans not secured by real estate
 
 
-
 
 
 
390
 
 
 
390
 
   Other
 
 
-
 
 
 
-
 
 
 
-
 
 Payment plan receivables
 
 
 
 
 
 
 
 
 
 
 
 
   Full refund
 
 
-
 
 
 
57
 
 
 
57
 
   Partial refund
 
 
-
 
 
 
38
 
 
 
38
 
   Other
 
 
-
 
 
 
9
 
 
 
9
 
         Total recorded investment
 
$
7
 
 
$
32,929
 
 
$
32,936
 
   Accrued interest included in recorded investment
 
$
-
 
 
$
-
 
 
$
-
 

An aging analysis of loans by class follows:
 
 
Loans Past Due
 
 
Loans not
 
 
Total
 
 
30-59 days
 
 
60-89 days
 
 
90+ days
 
 
Total
 
 
Past Due
 
 
Loans
 
 
(In thousands)
 
March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Income producing - real estate
 
$
585
 
 
$
188
 
 
$
1,972
 
 
$
2,745
 
 
$
222,460
 
 
$
225,205
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Land, land development and construction - real estate
 
 
58
 
 
 
-
 
 
 
1,055
 
 
 
1,113
 
 
 
39,883
 
 
 
40,996
 
   Commercial and industrial
 
 
2,080
 
 
 
1,412
 
 
 
2,447
 
 
 
5,939
 
 
 
341,880
 
 
 
347,819
 
 Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   1-4 family
 
 
3,074
 
 
 
2,393
 
 
 
9,156
 
 
 
14,623
 
 
 
276,381
 
 
 
291,004
 
   Resort lending
 
 
515
 
 
 
565
 
 
 
3,878
 
 
 
4,958
 
 
 
158,917
 
 
 
163,875
 
   Home equity line of credit - 1st lien
 
 
402
 
 
 
80
 
 
 
382
 
 
 
864
 
 
 
17,871
 
 
 
18,735
 
   Home equity line of credit - 2nd lien
 
 
664
 
 
 
110
 
 
 
665
 
 
 
1,439
 
 
 
43,180
 
 
 
44,619
 
 Installment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Home equity installment - 1st lien
 
 
469
 
 
 
399
 
 
 
1,167
 
 
 
2,035
 
 
 
29,065
 
 
 
31,100
 
   Home equity installment - 2nd lien
 
 
381
 
 
 
35
 
 
 
606
 
 
 
1,022
 
 
 
37,484
 
 
 
38,506
 
   Loans not secured by real estate
 
 
1,112
 
 
 
197
 
 
 
396
 
 
 
1,705
 
 
 
111,309
 
 
 
113,014
 
   Other
 
 
13
 
 
 
5
 
 
 
-
 
 
 
18
 
 
 
2,530
 
 
 
2,548
 
 Payment plan receivables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Full refund
 
 
1,937
 
 
 
385
 
 
 
18
 
 
 
2,340
 
 
 
71,992
 
 
 
74,332
 
   Partial refund
 
 
94
 
 
 
6
 
 
 
17
 
 
 
117
 
 
 
3,716
 
 
 
3,833
 
   Other
 
 
3
 
 
 
3
 
 
 
-
 
 
 
6
 
 
 
140
 
 
 
146
 
         Total recorded investment
 
$
11,387
 
 
$
5,778
 
 
$
21,759
 
 
$
38,924
 
 
$
1,356,808
 
 
$
1,395,732
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued interest included in  recorded investment
 
$
99
 
 
$
80
 
 
$
-
 
 
$
179
 
 
$
4,691
 
 
$
4,870
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Income producing - real estate
 
$
3,734
 
 
$
609
 
 
$
2,826
 
 
$
7,169
 
 
$
215,623
 
 
$
222,792
 
   Land, land development and construction - real estate
 
 
336
 
 
 
-
 
 
 
1,176
 
 
 
1,512
 
 
 
41,750
 
 
 
43,262
 
   Commercial and industrial
 
 
2,522
 
 
 
654
 
 
 
1,913
 
 
 
5,089
 
 
 
347,807
 
 
 
352,896
 
 Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   1-4 family
 
 
4,429
 
 
 
1,115
 
 
 
9,661
 
 
 
15,205
 
 
 
279,132
 
 
 
294,337
 
   Resort lending
 
 
748
 
 
 
370
 
 
 
4,861
 
 
 
5,979
 
 
 
164,414
 
 
 
170,393
 
   Home equity line of credit - 1st lien
 
 
453
 
 
 
51
 
 
 
529
 
 
 
1,033
 
 
 
18,003
 
 
 
19,036
 
   Home equity line of credit - 2nd lien
 
 
442
 
 
 
32
 
 
 
685
 
 
 
1,159
 
 
 
44,806
 
 
 
45,965
 
 Installment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Home equity installment - 1st lien
 
 
599
 
 
 
140
 
 
 
1,278
 
 
 
2,017
 
 
 
30,368
 
 
 
32,385
 
   Home equity installment - 2nd lien
 
 
430
 
 
 
125
 
 
 
675
 
 
 
1,230
 
 
 
38,956
 
 
 
40,186
 
   Loans not secured by real estate
 
 
899
 
 
 
259
 
 
 
390
 
 
 
1,548
 
 
 
113,751
 
 
 
115,299
 
   Other
 
 
24
 
 
 
12
 
 
 
-
 
 
 
36
 
 
 
2,689
 
 
 
2,725
 
 Payment plan receivables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Full refund
 
 
2,249
 
 
 
552
 
 
 
57
 
 
 
2,858
 
 
 
77,335
 
 
 
80,193
 
   Partial refund
 
 
112
 
 
 
46
 
 
 
38
 
 
 
196
 
 
 
4,119
 
 
 
4,315
 
   Other
 
 
3
 
 
 
6
 
 
 
9
 
 
 
18
 
 
 
166
 
 
 
184
 
         Total recorded investment
 
$
16,980
 
 
$
3,971
 
 
$
24,098
 
 
$
45,049
 
 
$
1,378,919
 
 
$
1,423,968
 
  Accrued interest included in recorded investment
 
$
146
 
 
$
43
 
 
$
-
 
 
$
189
 
 
$
4,640
 
 
$
4,829
 
 
Impaired loans are as follows :
 
 
March 31,
 
 
December 31,
 
 
2013
 
 
2012
 
Impaired loans with no allocated allowance
 
 
 
 
 
 
  TDR
 
$
15,688
 
 
$
14,435
 
  Non - TDR
 
 
1,848
 
 
 
418
 
Impaired loans with an allocated allowance
 
 
 
 
 
 
 
 
  TDR - allowance based on collateral
 
 
14,269
 
 
 
16,231
 
  TDR - allowance based on present value cash flow
 
 
113,502
 
 
 
112,997
 
  Non - TDR - allowance based on collateral
 
 
3,342
 
 
 
6,580
 
  Non - TDR - allowance based on present value cash flow
 
 
-
 
 
 
-
 
    Total impaired loans
 
$
148,649
 
 
$
150,661
 
 
 
 
 
 
 
 
 
Amount of allowance for loan losses allocated
 
 
 
 
 
 
 
 
  TDR - allowance based on collateral
 
$
4,403
 
 
$
5,060
 
  TDR - allowance based on present value cash flow
 
 
14,393
 
 
 
14,462
 
  Non - TDR - allowance based on collateral
 
 
1,004
 
 
 
1,487
 
  Non - TDR - allowance based on present value cash flow
 
 
-
 
 
 
-
 
    Total amount of allowance for loan losses allocated
 
$
19,800
 
 
$
21,009
 

Impaired loans by class  are as follows (1):
 
 
March 31, 2013
 
 
December 31, 2012
 
 
 
 
 
Unpaid
 
 
 
 
 
 
 
 
Unpaid
 
 
 
 
 
Recorded
 
 
Principal
 
 
Related
 
 
Recorded
 
 
Principal
 
 
Related
 
 
Investment
 
 
Balance
 
 
Allowance
 
 
Investment
 
 
Balance
 
 
Allowance
 
 With no related allowance recorded:
 
(In thousands)
 
 
 
 
   Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Income producing - real estate
 
$
4,899
 
 
$
5,552
 
 
$
-
 
 
$
4,050
 
 
$
4,672
 
 
$
-
 
     Land, land development & construction-real estate
 
 
2,949
 
 
 
2,942
 
 
 
-
 
 
 
3,304
 
 
 
3,294
 
 
 
-
 
     Commercial and industrial
 
 
4,670
 
 
 
5,033
 
 
 
-
 
 
 
2,611
 
 
 
2,592
 
 
 
-
 
   Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     1-4 family
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
     Resort lending
 
 
35
 
 
 
163
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
     Home equity line of credit - 1st lien
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
     Home equity line of credit - 2nd lien
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
   Installment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Home equity installment - 1st lien
 
 
2,089
 
 
 
2,317
 
 
 
-
 
 
 
2,027
 
 
 
2,219
 
 
 
-
 
     Home equity installment - 2nd lien
 
 
2,315
 
 
 
2,314
 
 
 
-
 
 
 
2,278
 
 
 
2,278
 
 
 
-
 
     Loans not secured by real estate
 
 
606
 
 
 
709
 
 
 
-
 
 
 
610
 
 
 
681
 
 
 
-
 
     Other
 
 
19
 
 
 
19
 
 
 
-
 
 
 
20
 
 
 
20
 
 
 
-
 
 
 
17,582
 
 
 
19,049
 
 
 
-
 
 
 
14,900
 
 
 
15,756
 
 
 
-
 
 With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Income producing - real estate
 
 
22,079
 
 
 
25,586
 
 
 
2,006
 
 
 
20,628
 
 
 
24,250
 
 
 
1,822
 
     Land, land development & construction-real estate
 
 
7,873
 
 
 
10,954
 
 
 
1,431
 
 
 
8,808
 
 
 
11,971
 
 
 
1,986
 
     Commercial and industrial
 
 
13,839
 
 
 
15,485
 
 
 
2,499
 
 
 
16,233
 
 
 
18,564
 
 
 
2,750
 
   Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     1-4 family
 
 
63,073
 
 
 
67,094
 
 
 
8,352
 
 
 
64,160
 
 
 
68,418
 
 
 
8,518
 
     Resort lending
 
 
22,182
 
 
 
22,756
 
 
 
3,930
 
 
 
23,763
 
 
 
24,160
 
 
 
4,321
 
     Home equity line of credit - 1st lien
 
 
157
 
 
 
167
 
 
 
84
 
 
 
62
 
 
 
77
 
 
 
30
 
     Home equity line of credit - 2nd lien
 
 
42
 
 
 
118
 
 
 
4
 
 
 
43
 
 
 
118
 
 
 
-
 
   Installment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Home equity installment - 1st lien
 
 
969
 
 
 
996
 
 
 
563
 
 
 
1,215
 
 
 
1,240
 
 
 
610
 
     Home equity installment - 2nd lien
 
 
1,138
 
 
 
1,142
 
 
 
892
 
 
 
1,161
 
 
 
1,174
 
 
 
930
 
     Loans not secured by real estate
 
 
213
 
 
 
213
 
 
 
39
 
 
 
194
 
 
 
194
 
 
 
42
 
     Other
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
131,565
 
 
 
144,511
 
 
 
19,800
 
 
 
136,267
 
 
 
150,166
 
 
 
21,009
 
 Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Income producing - real estate
 
 
26,978
 
 
 
31,138
 
 
 
2,006
 
 
 
24,678
 
 
 
28,922
 
 
 
1,822
 
     Land, land development & construction-real estate
 
 
10,822
 
 
 
13,896
 
 
 
1,431
 
 
 
12,112
 
 
 
15,265
 
 
 
1,986
 
     Commercial and industrial
 
 
18,509
 
 
 
20,518
 
 
 
2,499
 
 
 
18,844
 
 
 
21,156
 
 
 
2,750
 
   Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     1-4 family
 
 
63,073
 
 
 
67,094
 
 
 
8,352
 
 
 
64,160
 
 
 
68,418
 
 
 
8,518
 
     Resort lending
 
 
22,217
 
 
 
22,919
 
 
 
3,930
 
 
 
23,763
 
 
 
24,160
 
 
 
4,321
 
     Home equity line of credit - 1st lien
 
 
157
 
 
 
167
 
 
 
84
 
 
 
62
 
 
 
77
 
 
 
30
 
     Home equity line of credit - 2nd lien
 
 
42
 
 
 
118
 
 
 
4
 
 
 
43
 
 
 
118
 
 
 
-
 
   Installment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Home equity installment - 1st lien
 
 
3,058
 
 
 
3,313
 
 
 
563
 
 
 
3,242
 
 
 
3,459
 
 
 
610
 
     Home equity installment - 2nd lien
 
 
3,453
 
 
 
3,456
 
 
 
892
 
 
 
3,439
 
 
 
3,452
 
 
 
930
 
     Loans not secured by real estate
 
 
819
 
 
 
922
 
 
 
39
 
 
 
804
 
 
 
875
 
 
 
42
 
     Other
 
 
19
 
 
 
19
 
 
 
-
 
 
 
20
 
 
 
20
 
 
 
-
 
         Total
 
$
149,147
 
 
$
163,560
 
 
$
19,800
 
 
$
151,167
 
 
$
165,922
 
 
$
21,009
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Accrued interest included in recorded investment
 
$
498
 
 
 
 
 
 
 
 
 
 
$
506
 
 
 
 
 
 
 
 
 

 (1) There were no impaired payment plan receivables at March 31, 2013 or December 31, 2012.
 
Average recorded investment in and interest income earned on impaired loans by class for the three month periods ending March 31, follows (1):

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2013
 
 
2012
 
 
Average
 
 
Interest
 
 
Average
 
 
Interest
 
 
Recorded
 
 
Income
 
 
Recorded
 
 
Income
 
 
Investment
 
 
Recognized
 
 
Investment
 
 
Recognized
 
 With no related allowance recorded:
 
(In thousands)
 
   Commercial
 
 
 
 
 
 
 
 
 
 
 
 
     Income producing - real estate
 
$
4,475
 
 
$
63
 
 
$
3,600
 
 
$
17
 
     Land, land development & construction-real estate
 
 
3,127
 
 
 
42
 
 
 
1,590
 
 
 
-
 
     Commercial and industrial
 
 
3,641
 
 
 
38
 
 
 
4,027
 
 
 
2
 
   Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     1-4 family
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
     Resort lending
 
 
18
 
 
 
-
 
 
 
579
 
 
 
-
 
     Home equity line of credit - 1st lien
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
     Home equity line of credit - 2nd lien
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
   Installment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Home equity installment - 1st lien
 
 
2,058
 
 
 
24
 
 
 
1,827
 
 
 
20
 
     Home equity installment - 2nd lien
 
 
2,297
 
 
 
29
 
 
 
1,861
 
 
 
21
 
     Loans not secured by real estate
 
 
608
 
 
 
8
 
 
 
527
 
 
 
6
 
     Other
 
 
20
 
 
 
1
 
 
 
24
 
 
 
1
 
 
 
16,244
 
 
 
205
 
 
 
14,035
 
 
 
67
 
 With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Income producing - real estate
 
 
21,354
 
 
 
137
 
 
 
22,223
 
 
 
147
 
     Land, land development & construction-real estate
 
 
8,341
 
 
 
56
 
 
 
11,575
 
 
 
53
 
     Commercial and industrial
 
 
15,036
 
 
 
140
 
 
 
15,705
 
 
 
114
 
   Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     1-4 family
 
 
63,617
 
 
 
706
 
 
 
67,542
 
 
 
724
 
     Resort lending
 
 
22,973
 
 
 
219
 
 
 
24,474
 
 
 
244
 
     Home equity line of credit - 1st lien
 
 
110
 
 
 
1
 
 
 
67
 
 
 
1
 
     Home equity line of credit - 2nd lien
 
 
43
 
 
 
1
 
 
 
137
 
 
 
1
 
   Installment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Home equity installment - 1st lien
 
 
1,092
 
 
 
12
 
 
 
1,626
 
 
 
21
 
     Home equity installment - 2nd lien
 
 
1,150
 
 
 
13
 
 
 
1,604
 
 
 
19
 
     Loans not secured by real estate
 
 
204
 
 
 
2
 
 
 
178
 
 
 
2
 
     Other
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
133,920
 
 
 
1,287
 
 
 
145,131
 
 
 
1,326
 
 Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Income producing - real estate
 
 
25,829
 
 
 
200
 
 
 
25,823
 
 
 
164
 
     Land, land development & construction-real estate
 
 
11,468
 
 
 
98
 
 
 
13,165
 
 
 
53
 
     Commercial and industrial
 
 
18,677
 
 
 
178
 
 
 
19,732
 
 
 
116
 
   Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     1-4 family
 
 
63,617
 
 
 
706
 
 
 
67,542
 
 
 
724
 
     Resort lending
 
 
22,991
 
 
 
219
 
 
 
25,053
 
 
 
244
 
     Home equity line of credit - 1st lien
 
 
110
 
 
 
1
 
 
 
67
 
 
 
1
 
     Home equity line of credit - 2nd lien
 
 
43
 
 
 
1
 
 
 
137
 
 
 
1
 
   Installment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Home equity installment - 1st lien
 
 
3,150
 
 
 
36
 
 
 
3,453
 
 
 
41
 
     Home equity installment - 2nd lien
 
 
3,447
 
 
 
42
 
 
 
3,465
 
 
 
40
 
     Loans not secured by real estate
 
 
812
 
 
 
10
 
 
 
705
 
 
 
8
 
     Other
 
 
20
 
 
 
1
 
 
 
24
 
 
 
1
 
         Total
 
$
150,164
 
 
$
1,492
 
 
$
159,166
 
 
$
1,393
 

(1)  
There were no impaired payment plan receivables during the three month periods ended March 31, 2013 and 2012, respectively.

Our average investment in impaired loans was approximately $150.2 million and $159.2 million for the three-month periods ended March 31, 2013 and 2012, respectively.  Cash receipts on impaired loans on non-accrual status are generally applied to the principal balance.  Interest income recognized on impaired loans during the first three months of 2013 and 2012 was approximately $1.5 million and $1.4 million, respectively.
 
Troubled debt restructurings follow:
 
 
March 31, 2013
 
 
Commercial
 
 
Retail
 
 
 
Total
 
 
(In thousands)
 
Performing TDR's
 
$
44,626
 
 
$
83,985
 
 
 
$
128,611
 
Non-performing TDR's(1)
 
 
6,349
 
 
 
8,499
 
(2)
 
 
14,848
 
  Total
 
$
50,975
 
 
$
92,484
 
 
 
$
143,459
 
 
 
December 31, 2012
 
 
Commercial
 
 
Retail
 
 
 
Total
 
 
(In thousands)
 
Performing TDR's
 
$
40,753
 
 
$
85,977
 
 
 
$
126,730
 
Non-performing TDR's(1)
 
 
7,756
 
 
 
9,177
 
(2)
 
 
16,933
 
  Total
 
$
48,509
 
 
$
95,154
 
 
 
$
143,663
 
 
(1) Included in non-performing loans table above.
(2) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.
 
The Company has allocated $18.8 million and $19.5 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of March 31, 2013 and December 31, 2012, respectively.

During the three months ended March 31, 2013 and 2012, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans generally 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.

Modifications involving a reduction of the stated interest rate of the loan have generally been for periods ranging from 9 months to 60 months but have extended to as much as 480 months in certain circumstances. Modifications involving an extension of the maturity date have generally been for periods ranging from 1 month to 60 months but have extended to as much as 193 months in certain circumstances.

Loans that have been classified as troubled debt restructurings during the three-month periods ended March 31 follow:
 
 
 
 
 
Pre-modification
 
 
Post-modification
 
 
Number of
 
 
Recorded
 
 
Recorded
 
 
Contracts
 
 
Balance
 
 
Balance
 
 
(Dollars in thousands)
 
2013
 
 
 
 
 
 
 
 
 
   Commercial
 
 
 
 
 
 
 
 
 
     Income producing - real estate
 
 
3
 
 
$
4,083
 
 
$
3,822
 
     Land, land development & construction-real estate
 
 
1
 
 
 
16
 
 
 
15
 
     Commercial and industrial
 
 
13
 
 
 
840
 
 
 
834
 
   Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
     1-4 family
 
 
7
 
 
 
791
 
 
 
786
 
     Resort lending
 
 
3
 
 
 
799
 
 
 
795
 
     Home equity line of credit - 1st lien
 
 
1
 
 
 
95
 
 
 
96
 
     Home equity line of credit - 2nd lien
 
 
-
 
 
 
-
 
 
 
-
 
   Installment
 
 
 
 
 
 
 
 
 
 
 
 
     Home equity installment - 1st lien
 
 
7
 
 
 
173
 
 
 
176
 
     Home equity installment - 2nd lien
 
 
6
 
 
 
148
 
 
 
148
 
     Loans not secured by real estate
 
 
2
 
 
 
57
 
 
 
28
 
     Other
 
 
-
 
 
 
-
 
 
 
-
 
        Total
 
 
43
 
 
$
7,002
 
 
$
6,700
 
 
 
 
 
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
   Commercial
 
 
 
 
 
 
 
 
 
 
 
 
     Income producing - real estate
 
 
2
 
 
$
223
 
 
$
217
 
     Land, land development & construction-real estate
 
 
2
 
 
 
2,838
 
 
 
2,836
 
     Commercial and industrial
 
 
14
 
 
 
3,910
 
 
 
3,894
 
   Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
     1-4 family
 
 
15
 
 
 
1,298
 
 
 
1,267
 
     Resort lending
 
 
7
 
 
 
2,175
 
 
 
2,155
 
     Home equity line of credit - 1st lien
 
 
1
 
 
 
15
 
 
 
6
 
     Home equity line of credit - 2nd lien
 
 
-
 
 
 
-
 
 
 
-
 
   Installment
 
 
 
 
 
 
 
 
 
 
 
 
     Home equity installment - 1st lien
 
 
4
 
 
 
308
 
 
 
311
 
     Home equity installment - 2nd lien
 
 
7
 
 
 
194
 
 
 
194
 
     Loans not secured by real estate
 
 
1
 
 
 
25
 
 
 
25
 
     Other
 
 
-
 
 
 
-
 
 
 
-
 
        Total
 
 
53
 
 
$
10,986
 
 
$
10,905
 
 
The troubled debt restructurings described above for 2013 increased the allowance for loan losses by $0.1 million and resulted in $0.3 million of charge offs while the troubled debt restructurings described above for 2012 increased the allowance for loan losses by $0.3 million and resulted in zero charge offs.

Loans that have been classified as troubled debt restructurings during the past twelve months and that have subsequently defaulted during the three-month periods ended March 31 follow:

 
Number of
 
 
Recorded
 
 
Contracts
 
 
Balance
 
 
(Dollars in thousands)
 
2013
 
 
 
 
 
 
   Commercial
 
 
 
 
 
 
     Income producing - real estate
 
 
-
 
 
$
-
 
     Land, land development & construction-real estate
 
 
1
 
 
 
334
 
     Commercial and industrial
 
 
1
 
 
 
81
 
   Mortgage
 
 
 
 
 
 
 
 
     1-4 family
 
 
1
 
 
 
106
 
     Resort lending
 
 
1
 
 
 
156
 
     Home equity line of credit - 1st lien
 
 
-
 
 
 
-
 
     Home equity line of credit - 2nd lien
 
 
-
 
 
 
-
 
   Installment
 
 
 
 
 
 
 
 
     Home equity installment - 1st lien
 
 
-
 
 
 
-
 
     Home equity installment - 2nd lien
 
 
-
 
 
 
-
 
     Loans not secured by real estate
 
 
-
 
 
 
-
 
     Other
 
 
-
 
 
 
-
 
 
 
4
 
 
$
677
 
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
 
   Commercial
 
 
 
 
 
 
 
 
     Income producing - real estate
 
 
4
 
 
$
597
 
     Land, land development & construction-real estate
 
 
3
 
 
 
2,303
 
     Commercial and industrial
 
 
8
 
 
 
790
 
   Mortgage
 
 
 
 
 
 
 
 
     1-4 family
 
 
-
 
 
 
-
 
     Resort lending
 
 
1
 
 
 
117
 
     Home equity line of credit - 1st lien
 
 
-
 
 
 
-
 
     Home equity line of credit - 2nd lien
 
 
-
 
 
 
-
 
   Installment
 
 
 
 
 
 
 
 
     Home equity installment - 1st lien
 
 
1
 
 
 
26
 
     Home equity installment - 2nd lien
 
 
-
 
 
 
-
 
     Loans not secured by real estate
 
 
-
 
 
 
-
 
     Other
 
 
-
 
 
 
-
 
 
 
17
 
 
$
3,833
 

A loan is considered to be in payment default generally once it is 90 days contractually past due under the modified terms.

The troubled debt restructurings that subsequently defaulted described above for 2013 increased the allowance for loan losses by $0.2 million and resulted in zero charge offs while the troubled debt restructurings that subsequently defaulted described above for 2012 decreased the allowance for loan losses by $0.2 million and resulted in charge offs of $0.4 million.

The terms of certain other loans were modified during the three months ended March 31, 2013 and 2012 in a manner that did not meet the definition of a troubled debt restructuring.  The modification of these loans could have included modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant.

In order to determine whether a borrower is experiencing financial difficulty, we perform an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy.

Credit Quality Indicators – As part of our on on-going monitoring of the credit quality of our loan portfolios, we track certain credit quality indicators including (a) weighted-average risk grade of commercial loans, (b) the level of classified commercial loans (c) credit scores of mortgage and installment loan borrowers (d) investment grade of certain counterparties for payment plan receivables and (e) delinquency history and non-performing loans.

For commercial loans we use a loan rating system that is similar to those employed by state and federal banking regulators. Loans are graded on a scale of 1 to 12. A description of the general characteristics of the ratings follows:

Rating 1 through 6: These loans are generally referred to as our "non-watch" commercial credits that include very high or exceptional credit fundamentals through acceptable credit fundamentals.

Rating 7 and 8: These loans are generally referred to as our "watch" commercial credits. This rating includes loans to borrowers that exhibit potential credit weakness or downward trends. If not checked or cured these trends could weaken our asset or credit position. While potentially weak, no loss of principal or interest is envisioned with these ratings.

Rating 9: These loans are generally referred to as our "substandard accruing" commercial credits. This rating includes loans to borrowers that exhibit a well-defined weakness where payment default is probable and loss is possible if deficiencies are not corrected. Generally, loans with this rating are considered collectible as to both principal and interest primarily due to collateral coverage.

Rating 10 and 11: These loans are generally referred to as our "substandard - non-accrual" and "doubtful" commercial credits. This rating includes loans to borrowers with weaknesses that make collection of debt in full, on the basis of current facts, conditions and values at best questionable and at worst improbable. All of these loans are placed in non-accrual.

Rating 12: These loans are generally referred to as our "loss" commercial credits. This rating includes loans to borrowers that are deemed incapable of repayment and are charged-off.

The following table summarizes loan ratings by loan class for our commercial loan segment:

 
Commercial
 
 
 
 
 
 
 
 
Substandard
 
 
Non-
 
 
 
 
 
Non-watch
 
 
Watch
 
 
Accrual
 
 
Accrual
 
 
 
 
 
 
1-6
 
 
 
7-8
 
 
 
9
 
 
 
10-11
 
 
Total
 
 
 
 
 
 
 
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Income producing - real estate
 
$
187,106
 
 
$
27,441
 
 
$
6,559
 
 
$
4,099
 
 
$
225,205
 
   Land, land development and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     construction - real estate
 
 
31,607
 
 
 
5,346
 
 
 
1,052
 
 
 
2,991
 
 
 
40,996
 
   Commercial and industrial
 
 
304,931
 
 
 
25,852
 
 
 
12,588
 
 
 
4,448
 
 
 
347,819
 
       Total
 
$
523,644
 
 
$
58,639
 
 
$
20,199
 
 
$
11,538
 
 
$
614,020
 
 Accrued interest included in total
 
$
1,426
 
 
$
172
 
 
$
91
 
 
$
-
 
 
$
1,689
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Income producing - real estate
 
$
183,530
 
 
$
27,096
 
 
$
6,555
 
 
$
5,611
 
 
$
222,792
 
   Land, land development and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     construction - real estate
 
 
32,784
 
 
 
3,457
 
 
 
2,959
 
 
 
4,062
 
 
 
43,262
 
   Commercial and industrial
 
 
307,566
 
 
 
26,954
 
 
 
13,296
 
 
 
5,080
 
 
 
352,896
 
       Total
 
$
523,880
 
 
$
57,507
 
 
$
22,810
 
 
$
14,753
 
 
$
618,950
 
 Accrued interest included in total
 
$
1,417
 
 
$
163
 
 
$
112
 
 
$
-
 
 
$
1,692
 

For each of our mortgage and installment segment classes we generally monitor credit quality based on the credit scores of the borrowers. These credit scores are generally updated at least annually.

The following table summarizes credit scores by loan class for our mortgage and installment loan segments:
 
Mortgage (1)
Home
Home
Resort
Equity
Equity
1-4 Family
Lending
1st Lien
2nd Lien
Total
(In thousands)
March 31, 2013
800 and above
$
21,176
$
15,112
$
2,975
$
5,193
$
44,456
750-799
56,977
63,881
4,525
12,283
137,666
700-749
60,733
41,138
3,401
8,991
114,263
650-699
54,234
17,310
2,275
7,892
81,711
600-649
34,065
11,597
3,361
4,757
53,780
550-599
27,200
7,278
858
2,699
38,035
500-549
19,641
1,004
658
1,912
23,215
Under 500
9,133
1,626
417
787
11,963
Unknown
7,845
4,929
265
105
13,144
Total
$
291,004
$
163,875
$
18,735
$
44,619
$
518,233
Accrued interest included in total
$
1,354
$
776
$
88
$
219
$
2,437
December 31, 2012
800 and above
$
19,638
$
15,430
$
3,031
$
5,515
$
43,614
750-799
62,419
67,094
4,758
12,783
147,054
700-749
59,594
41,860
3,293
9,177
113,924
650-699
57,584
17,685
2,309
7,987
85,565
600-649
31,465
12,317
3,311
4,775
51,868
550-599
27,739
7,887
964
2,754
39,344
500-549
20,243
1,212
656
1,997
24,108
Under 500
9,470
1,637
456
789
12,352
Unknown
6,185
5,271
258
188
11,902
Total
$
294,337
$
170,393
$
19,036
$
45,965
$
529,731
Accrued interest included in total
$
1,319
$
750
$
91
$
231
$
2,391

 
Installment(1)
Home
Home
Loans not
Equity
Equity
Secured by
1st Lien
2nd Lien
Real Estate
Other
Total
(In thousands)
March 31, 2013
800 and above
$
3,733
$
3,055
$
18,533
$
41
$
25,362
750-799
7,211
10,822
43,262
443
61,738
700-749
4,766
8,600
23,975
712
38,053
650-699
5,636
6,925
13,238
629
26,428
600-649
4,155
4,075
5,982
358
14,570
550-599
3,104
2,564
3,087
183
8,938
500-549
1,624
1,315
2,044
107
5,090
Under 500
668
1,070
784
32
2,554
Unknown
203
80
2,109
43
2,435
Total
$
31,100
$
38,506
$
113,014
$
2,548
$
185,168
Accrued interest included in total
$
133
$
149
$
441
$
21
$
744
December 31, 2012
800 and above
$
3,909
$
3,265
$
19,293
$
38
$
26,505
750-799
7,394
11,300
43,740
462
62,896
700-749
4,884
8,826
24,267
786
38,763
650-699
5,925
7,164
13,758
710
27,557
600-649
4,360
4,214
6,442
367
15,383
550-599
3,226
2,716
3,428
188
9,558
500-549
1,722
1,403
2,154
114
5,393
Under 500
760
1,195
895
42
2,892
Unknown
205
103
1,322
18
1,648
Total
$
32,385
$
40,186
$
115,299
$
2,725
$
190,595
Accrued interest included in total
$
137
$
157
$
429
$
23
$
746
 
(1) Credit scores have been updated within the last twelve months.

Mepco Finance Corporation ("Mepco") is a wholly-owned subsidiary of our Bank that operates a vehicle service contract payment plan business throughout the United States. See Note #14 for more information about Mepco's business. As of March 31, 2013, approximately 94.9% of Mepco's outstanding payment plan receivables relate to programs in which a third party insurer or risk retention group is obligated to pay Mepco the full refund owing upon cancellation of the related service contract (including with respect to both the portion funded to the service contract seller and the portion funded to the administrator). These receivables are shown as "Full Refund" in the table below. Another approximately 4.9% of Mepco's outstanding payment plan receivables as of March 31, 2013, relate to programs in which a third party insurer or risk retention group is obligated to pay Mepco the refund owing upon cancellation only with respect to the unearned portion previously funded by Mepco to the administrator (but not to the service contract seller). These receivables are shown as "Partial Refund" in the table below. The balance of Mepco's outstanding payment plan receivables relate to programs in which there is no insurer or risk retention group that has any contractual liability to Mepco for any portion of the refund amount. These receivables are shown as "Other" in the table below. For each class of our payment plan receivables we monitor credit ratings of the counterparties as we evaluate the credit quality of this portfolio.

The following table summarizes credit ratings of insurer or risk retention group counterparties by class of payment plan receivable:

 
 
Payment Plan Receivables
 
 
 
Full
 
 
Partial
 
 
 
 
 
 
 
 
 
Refund
 
 
Refund
 
 
Other
 
 
Total
 
 
 
(In thousands)
 
March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
AM Best rating
 
 
 
 
 
 
 
 
 
 
 
 
A+
 
$
-
 
 
$
-
 
 
$
90
 
 
$
90
 
A
 
 
23,372
 
 
 
3,376
 
 
 
-
 
 
 
26,748
 
A-
 
 
16,317
 
 
 
457
 
 
 
-
 
 
 
16,774
 
B+
 
 
15
 
 
 
-
 
 
 
-
 
 
 
15
 
B 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Not rated
 
 
34,628
 
 
 
-
 
 
 
56
 
 
 
34,684
 
Total
 
$
74,332
 
 
$
3,833
 
 
$
146
 
 
$
78,311
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AM Best rating
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A+
 
$
-
 
 
$
-
 
 
$
110
 
 
$
110
 
A 
 
 
24,825
 
 
 
3,916
 
 
 
-
 
 
 
28,741
 
A-
 
 
19,310
 
 
 
399
 
 
 
-
 
 
 
19,709
 
B+
 
 
56
 
 
 
-
 
 
 
-
 
 
 
56
 
B 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Not rated
 
 
36,002
 
 
 
-
 
 
 
74
 
 
 
36,076
 
Total
 
$
80,193
 
 
$
4,315
 
 
$
184
 
 
$
84,692
 

Although Mepco has contractual recourse against various counterparties for refunds owing upon cancellation of vehicle service contracts, please see Note #14 below regarding certain risks and difficulties associated with collecting these refunds.