Loans

3 Months Ended

Mar. 31, 2012

Loans [Abstract]

LOANS

NOTE J — LOANS

Information relating to loans as of March 31, 2012 and December 31, 2011 is summarized as follows:

	2012		2011
	(In thousands)
Construction and land development	$	54,018	$	49,184
Commercial real estate		506,560		508,353
Residential real estate		550,263		546,246
Commerical and financial		54,561		53,105
Consumer		50,789		50,611
Other		201		575
NET LOAN BALANCES	$	1,216,392	$	1,208,074

(1) Net loan balances as of March 31, 2012 and December 31, 2011 are net of deferred costs of $1,671,000 and $1,632,000, respectively.

The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of March 31, 2012 and December 31, 2011:

March 31, 2012

(Dollars in thousands)	Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing Greater Than 90  Days		Nonaccrual		Current		Total Financing Receivables
Construction and land development	$	299	$	49	$	—	$	2,236	$	51,434	$	54,018
Commercial real estate		3,810		—		—		24,511		478,239		506,560
Residential real estate		2,569		609		29		14,268		532,788		550,263
Commerical and financial		—		—		—		10		54,551		54,561
Consumer		75		72		—		691		49,951		50,789
Other		—		—		—		—		201		201
Total	$	6,753	$	730	$	29	$	41,716	$	1,167,164	$	1,216,392

December 31, 2011

(Dollars in thousands)	Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing Greater Than 90 Days		Nonaccrual		Current		Total Financing Receivables
Construction and land development	$	6	$	215	$	—	$	2,227	$	46,736	$	49,184
Commercial real estate		836		—		—		13,120		494,397		508,353
Residential real estate		2,979		607		—		12,555		530,105		546,246
Commerical and financial		80		—		—		16		53,009		53,105
Consumer		246		74		—		608		49,683		50,611
Other		—		—		—		—		575		575
Total	$	4,147	$	896	$	—	$	28,526	$	1,174,505	$	1,208,074

The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company’s risk rating system, the Company classifies problem and potential problem loans as “Special Mention,” “Substandard,” and “Doubtful” and these loans are monitored on an ongoing basis. Substandard loans include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as substandard may require a specific allowance, but generally does not exceed 30% of the principal balance. Loans classified as Doubtful, have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans classified as doubtful generally have specific allowances in excess of 30% of the principal balance. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses that deserve management’s close attention are deemed to be Special Mention. Risk ratings are updated any time the situation warrants.

Loans not meeting the criteria above are considered to be pass-rated loans and risk grades are recalculated at least annually by the loan relationship manager.

The following table presents the risk category, class of loans and the recorded investment as of March 31, 2012 and December 31, 2011:

March 31, 2012

	Construction & Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Financial		Consumer Loans		Total
(Dollars in thousands)
Pass	$	47,441	$	391,748	$	507,429	$	53,019	$	49,604	$	1,049,241
Special mention		1,109		43,414		4,776		1,327		—		50,626
Substandard		49		16,586		84		205		220		17,144
Doubtful		—		—		—		—		—		—
Nonaccrual		2,236		24,511		14,268		10		691		41,716
Troubled debt restructures		3,183		30,301		23,706		—		475		57,665
	$	54,018	$	506,560	$	550,263	$	54,561	$	50,990	$	1,216,392

December 31, 2011

	Construction & Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Financial		Consumer Loans		Total
(Dollars in thousands)
Pass	$	42,899	$	387,161	$	505,316	$	51,375	$	49,299	$	1,036,050
Special mention		802		57,334		5,529		1,445		523		65,633
Substandard		90		5,558		133		168		305		6,254
Doubtful		—		—		—		—		—		—
Nonaccrual		2,227		13,120		12,555		16		608		28,526
Troubled debt restructures		3,166		45,180		22,713		101		451		71,611
	$	49,184	$	508,353	$	546,246	$	53,105	$	51,186	$	1,208,074