7. Allowance For Loan Losses

6 Months Ended

Jun. 30, 2014

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

Allowance For Loan Losses

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

	Six Months Ended				Year Ended
	June 30,				December 31,
Dollars in thousands	2014		2013		2013
Balance, beginning of year	$	12,659	$	17,933	$	17,933
Losses:
Commercial		390		54		723
Commercial real estate
Owner occupied		11		66		1,031
Non-owner occupied		-		9		9
Construction and development
Land and land development		3,533		2,166		3,596
Construction		-		-		-
Residential real estate
Non-jumbo		46		384		541
Jumbo		63		3,625		4,741
Home equity		-		76		77
Consumer		80		34		79
Other		51		51		162
Total		4,174		6,465		10,959
Recoveries:
Commercial		17		4		12
Commercial real estate
Owner occupied		31		2		8
Non-owner occupied		4		-		674
Construction and development
Land and land development		165		9		187
Construction		-		-		-
Real estate - mortgage
Non-jumbo		53		43		127
Jumbo		163		3		6
Home equity		3		1		5
Consumer		41		37		79
Other		44		55		87
Total		521		154		1,185
Net losses		3,653		6,311		9,774
Provision for loan losses		2,000		2,500		4,500
Balance, end of year	$	11,006	$	14,122	$	12,659

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

	Construction & Land Development
	Land &						Commercial Real Estate				Residential Real Estate
	Land								Non-
	Develop-		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	$	1,324	$	969	$	641	$	1,842		$	1,888	$	173	$	47	$	51	$	12,659
Charge-offs		3,533		-		390		11		-		46			63		-		80		51		4,174
Recoveries		165		-		17		31		4		53			163		3		41		44		521
Provision		1,722		85		124		8		98		(318	)		93		83		38		67		2,000
Ending balance	$	3,809	$	354	$	1,075	$	997	$	743	$	1,531		$	2,081	$	259	$	46	$	111	$	11,006
Allowance related to:
Loans individually
evaluated for impairment	$	898	$	-	$	-	$	267	$	79	$	299		$	52	$	-	$	-	$	-	$	1,595
Loans collectively
evaluated for impairment		2,911		354		1,075		730		664		1,232			2,029		259		46		111		9,411
Loans acquired with
deteriorated credit quality		-		-		-		-		-		-			-		-		-		-		-
Total	$	3,809	$	354	$	1,075	$	997	$	743	$	1,531		$	2,081	$	259	$	46	$	111	$	11,006
Loans
Loans individually
evaluated for impairment	$	15,469	$	-	$	506	$	10,893	$	5,749	$	6,032		$	8,721	$	186	$	37	$	-	$	47,593
Loans collectively
evaluated for impairment		48,777		20,902		89,590		143,367		308,690		213,537			43,766		61,062		19,740		6,798	$	956,229
Loans acquired with
deteriorated credit quality		-		-		-		-		-		-			-		-		-		-		-
Total	$	64,246	$	20,902	$	90,096	$	154,260	$	314,439	$	219,569		$	52,487	$	61,248	$	19,777	$	6,798	$	1,003,822