7. Allowance For Loan Losses

3 Months Ended

Mar. 31, 2014

Allowance for Loan and Lease Losses, Adjustments, Net [Abstract]

Allowance For Loan Losses

NOTE 7. ALLOWANCE FOR LOAN LOSSES

An analysis of the allowance for loan losses for the three month periods ended March 30, 2014 and 2013, and for the year ended December 31, 2013 is as follows:

	Three Months Ended				Year Ended
	March 31,				December 31,
Dollars in thousands	2014		2013		2013
Balance, beginning of year	$	12,659	$	17,933	$	17,933
Losses:
Commercial		390		17		723
Commercial real estate
Owner occupied		11		63		1,031
Non-owner occupied		-		3		9
Construction and development
Land and land development		2,376		2,062		3,596
Construction		-		-		-
Residential real estate
Non-jumbo		9		228		541
Jumbo		8		60		4,741
Home equity		-		20		77
Consumer		45		22		79
Other		23		22		162
Total		2,862		2,497		10,959
Recoveries:
Commercial		6		2		12
Commercial real estate
Owner occupied		7		2		8
Non-owner occupied		3		-		674
Construction and development
Land and land development		26		5		187
Construction		-		-		-
Real estate - mortgage
Non-jumbo		20		19		127
Jumbo		163		1		6
Home equity		2		-		5
Consumer		20		21		79
Other		25		34		87
Total		272		84		1,185
Net losses		2,590		2,413		9,774
Provision for loan losses		1,000		1,500		4,500
Balance, end of period	$	11,069	$	17,020	$	12,659

Activity in the allowance for loan losses by loan class during the first three months of 2014 is as follows:

	Construction & Land Development
	Land &						Commercial Real Estate					Residential Real Estate
	Land								Non-
	Devlop-		Construc-		Commer-		Owner		Owner			Non-						Home			Con-
Dollars in thousands	ment		tion		cial		Occupied		Occupied			jumbo			Jumbo			Equity			sumer		Other		Total
Allowance for loan losses
Beginning balance	$	5,455	$	269	$	1,323	$	969	$	641		$	1,843		$	1,888		$	173		$	48	$	50	$	12,659
Charge-offs		2,376		-		390		11		-			9			8			-			45		23		2,862
Recoveries		26		-		6		7		3			20			163			2			20		25		272
Provision		1,758		27		181		69		(217	)		(332	)		(471	)		(41	)		11		15		1,000
Ending balance	$	4,863	$	296	$	1,120	$	1,034	$	427		$	1,522		$	1,572		$	134		$	34	$	67	$	11,069
Allowance related to:
Loans individually
evaluated for impairment	$	2,553	$	-	$	18	$	324	$	85		$	337		$	56		$	-		$	-	$	-	$	3,373
Loans collectively
evaluated for impairment		2,310		296		1,102		710		342			1,185			1,516			134			34		67		7,696
Loans acquired with
deteriorated credit quality		-		-		-		-		-			-			-			-			-		-		-
Total	$	4,863	$	296	$	1,120	$	1,034	$	427		$	1,522		$	1,572		$	134		$	34	$	67	$	11,069
Loans
Loans individually
evaluated for impairment	$	17,564	$	-	$	899	$	12,454	$	5,778		$	6,053		$	8,730		$	186		$	39	$	-	$	51,703
Loans collectively
evaluated for impairment		49,778		18,327		92,618		137,571		291,419			209,612			42,676			55,975			19,067		5,037	$	922,080
Loans acquired with
deteriorated credit quality		-		-		-		-		-			-			-			-			-		-		-
Total	$	67,342	$	18,327	$	93,517	$	150,025	$	297,197		$	215,665		$	51,406		$	56,161		$	19,106	$	5,037	$	973,783