Loans

3 Months Ended

Mar. 31, 2013

Loans [Abstract]

LOANS

NOTE E — LOANS

Information relating to loans is summarized as follows:

(Dollars in thousands)	March 31, 2013		December 31 2012
Construction and land development	$	59,626	$	60,736
Commercial real estate		481,468		486,828
Residential real estate		574,523		569,331
Commercial and financial		64,752		61,903
Consumer		43,248		46,930
Other loans		193		353
NET LOAN BALANCES	$	1,223,810	$	1,226,081

(1) Net loan balances as of March 31, 2013 and December 31, 2012 are net of deferred costs of $1,875,000 and $1,530,000, respectively.

The following table presents the contractual aging of the recorded investment in past due loans by class of loans as of March 31, 2013 and December 31, 2012:

March 31, 2013
(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 & land development	$	346	$	0	$	0	$	1,035	$	58,245	$	59,626
Commercial real estate		993		4		0		12,689		467,782		481,468
Residential real estate		1,468		830		0		21,180		551,045		574,523
Commercial and financial		48		0		0		0		64,704		64,752
Consumer		110		0		0		304		42,834		43,248
Other		0		0		0		0		193		193
Total	$	2,965	$	834	$	0	$	35,208	$	1,184,803	$	1,223,810

December 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 & land development	$	7	$	0	$	0	$	1,342	$	59,387	$	60,736
Commercial real estate		832		5		0		17,234		468,757		486,828
Residential real estate		1,179		1,377		1		22,099		544,675		569,331
Commercial and financial		41		0		0		0		61,862		61,903
Consumer		109		0		0		280		46,541		46,930
Other		0		0		0		0		353		353
Total	$	2,168	$	1,382	$	1	$	40,955	$	1,181,575	$	1,226,081

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. The principal balance of loans classified as doubtful are generally charged off. 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 tables present the risk category of loans by class of loans based on the most recent analysis performed as of March 31, 2013 and December 31, 2012:

March 31, 2013
(Dollars in thousands)	Construction & Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Financial		Consumer Loans		Total
Pass	$	54,382	$	413,565	$	534,720	$	64,125	$	41,865	$	1,108,657
Special mention		1,683		13,304		1,620		545		550		17,702
Substandard		0		20,691		47		82		253		21,073
Doubtful		0		0		0		0		0		0
Nonaccrual		1,035		12,689		21,180		0		304		35,208
Pass-Troubled debt restructures		1,938		6,601		0		0		0		8,539
Troubled debt restructures		588		14,618		16,956		0		469		32,631
	$	59,626	$	481,468	$	574,523	$	64,752	$	43,441	$	1,223,810

December 31, 2012
(Dollars in thousands)	Construction & Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Financial		Consumer Loans		Total
Pass	$	54,994	$	414,023	$	527,891	$	61,123	$	45,907	$	1,103,938
Special mention		1,717		12,137		1,686		587		450		16,577
Substandard		0		22,180		36		193		256		22,665
Doubtful		0		0		0		0		0		0
Nonaccrual		1,342		17,234		22,099		0		280		40,955
Pass-Troubled debt restructures		2,103		6,513		0		0		0		8,616
Troubled debt restructures		580		14,741		17,619		0		390		33,330
	$	60,736	$	486,828	$	569,331	$	61,903	$	47,283	$	1,226,081