LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Dec. 31, 2012

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES

Summary of loans outstanding, by classification

Loans outstanding, by classification, are summarized as follows (amounts in thousands):

	December 31,
	2012		2011
Commercial, financial, and agricultural	$	23,510	$	22,706
Commercial Real Estate		125,239		126,675
Single-Family Residential		34,523		37,539
Construction and Development		1,813		5,377
Consumer		5,913		7,090
		190,998		199,387
Allowance for loan losses		3,509		3,956
	$	187,489	$	195,431

Summary of activity in allowance for loan losses

	Years Ended December 31,
	2012			2011			2010
Balance at beginning of year	$	3,955,731		$	4,188,022		$	4,094,258
Provision for loan losses		2,400,000			3,882,409			2,465,000
Loans charged off		(3,068,905	)		(4,301,629	)		(2,521,994	)
Recoveries on loans previously charged off		222,541			186,929			150,758
Balance—end of year	$	3,509,367		$	3,955,731		$	4,188,022

Summary of activity in the allowance for loan losses by portfolio segment

Activity in the allowance for loan losses by portfolio segment is summarized as follows (in thousands):

	For the Year Ended December, 2012
	Commercial			Commercial Real Estate			Single- family Residential			Construction & Development			Consumer			Total
Beginning balance	$	394		$	2,206		$	696		$	449		$	211		$	3,956
Provision for loan losses		27			1,761			646			(140	)		106			2,400
Loans charged-off		(21	)		(2,138	)		(625	)		(136	)		(149	)		(3,069	)
Recoveries on loans charged-off		33			24			86			4			75			222
Ending Balance	$	433		$	1,853		$	803		$	177		$	243		$	3,509

	For the Year Ended December, 2011
	Commercial			Commercial Real Estate			Single- family Residential			Construction & Development			Consumer			Total
Beginning balance	$	365		$	2,616		$	376		$	290		$	541		$	4,188
Provision for loan losses		262			1,852			1,049			932			(212	)		3,883
Loans charged-off		(262	)		(2,302	)		(749	)		(773	)		(216	)		(4,302	)
Recoveries on loans charged-off		29			40			20			—			98			187
Ending Balance	$	394		$	2,206		$	696		$	449		$	211		$	3,956

Schedule of allocation of allowance for loan losses by portfolio segment

The allocation of the allowance for loan losses by portfolio segment was as follows (in thousands):

	At December 31, 2012
	Commercial		Commercial Real Estate		Single- family Residential		Construction & Development		Consumer		Total
Specific Reserves:
Impaired loans	$	—	$	319	$	1	$	—	$	—	$	320
Total specific reserves		—		319		1		—		—		320
General reserves		433		1,534		802		177		243		3,189
Total	$	433	$	1,853	$	803	$	177	$	243	$	3,509
Loans individually evaluated for impairment	$	—	$	17,248	$	516	$	278	$	—	$	18,042
Loans collectively evaluated for impairment		23,510		107,991		34,007		1,535		5,913		172,956
Total	$	23,510	$	125,239	$	34,523	$	1,813	$	5,913	$	190,998

	At December 31, 2011
	Commercial		Commercial Real Estate		Single- family Residential		Construction & Development		Consumer		Total
Specific Reserves:
Impaired loans	$	—	$	732	$	—	$	20	$	—	$	752
Total specific reserves		—		732		—		20		—		752
General reserves		394		1,474		696		429		211		3,204
Total	$	394	$	2,206	$	696	$	449	$	211	$	3,956
Loans individually evaluated for impairment	$	—	$	15,506	$	—	$	634	$	—	$	16,140
Loans collectively evaluated for impairment		22,706		111,169		37,539		4,743		7,090		183,247
Total	$	22,706	$	126,675	$	37,539	$	5,377	$	7,090	$	199,387

Schedule of impaired loans by class of loan

The following table presents impaired loans by class of loan (in thousands):

	At December 31, 2012
	Impaired Loans-With Allowance
							Impaired Loans- With no Allowance
					Allowance for Loan Losses Allocated
	Unpaid Principal		Recorded Investment				Unpaid Principal		Recorded Investment		Average Recorded Investment		Interest Income Recognized
Residential:
First mortgages	$	—	$	—	$	—	$	234	$	230	$	231	$	—
HELOC's and equity		77		77		1		261		209		210		44
Commercial
Secured		—		—		—		—		—		—		—
Unsecured		—		—		—		—		—		—		—
Commercial Real Estate:
Owner occupied		2,856		2,856		293		7,199		7,199		10,116		480
Non-owner occupied		492		319		24		7,056		5,770		6,420		673
Multi-family		388		388		2		716		716		1,053		103
Construction and Development:												.
Construction		—		—		—		120		121		122		55
Improved Land		—		—		—		418		157		169		6
Unimproved Land		—		—		—		—		—		—		—
Consumer and Other		—		—				—		—		—		—
Total	$	3,813	$	3,640	$	320	$	16,004	$	14,402	$	18,321	$	1,361

	At December 31, 2011
	Impaired Loans-With Allowance
							Impaired Loans- With no Allowance
					Allowance for Loan Losses Allocated
	Unpaid Principal		Recorded Investment				Unpaid Principal		Recorded Investment		Average Recorded Investment		Interest Income Recognized
Residential:
First mortgages	$	—	$	—	$	—	$	—	$	—	$	—	$	—
HELOC's and equity		—		—		—		—		—		—		—
Commercial
Secured		—		—		—		—		—		—		—
Unsecured		—		—		—		—		—		—		—
Commercial Real Estate:
Owner occupied		1,712		1,712		161		2,810		2,810		4,596		52
Non-owner occupied		6,398		6,398		522		5,075		4,184		11,107		873
Multi-family		402		402		49		—		—		407		40
Construction and Development														.
Construction		—		—		—		479		291		327		35
Improved Land		557		276		20		151		67		384		15
Unimproved Land		—		—		—		—		—		—		—
Consumer and Other		—		—				—		—		—		—
Total	$	9,069	$	8,788	$	752	$	8,515	$	7,352	$	16,821	$	1,015

Schedule of aging analysis of loan portfolio

The following table is an aging analysis of our loan portfolio (in thousands):

	At December 31, 2012
	30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing		Nonaccrual
Residential:
First mortgages	$	1,550	$	957	$	3,116	$	5,623	$	20,106	$	25,729	$	—	$	3,721
HELOC's and equity		218		32		291		541		8,253		8,794		—		321
Commercial:
Secured		24		—		5		29		16,827		16,856		—		5
Unsecured		5		—		—		5		6,649		6,654		—		—
Commercial Real Estate:
Owner occupied		1,463		188		394		2,045		55,603		57,648		—		2,029
Non-owner occupied		353		634		3,613		4,600		50,486		55,086		—		4,355
Multi-family		—		—		—		—		12,505		12,505		—		—
Construction and Development:
Construction		767		—		—		767		222		989		—		—
Improved Land		—		—		120		120		331		451		—		120
Unimproved Land		—		—		157		157		216		373		—		157
Consumer and Other		49		43		87		179		5,734		5,913		—		87
Total	$	4,429	$	1,854	$	7,783	$	14,066	$	176,932	$	190,998	$	—	$	10,795

	At December 31, 2011
	30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing		Nonaccrual
Residential:
First mortgages	$	1,691	$	800	$	3,550	$	6,041	$	22,121	$	28,162	$	—	$	4,546
HELOC's and equity		261		—		931		1,192		8,185		9,377		—		932
Commercial:
Secured		13		—		6		19		17,653		17,672		—		6
Unsecured		—		—		—		—		5,034		5,034		—		—
Commercial Real Estate:
Owner occupied		1,095		546		1,904		3,545		55,834		59,379		—		2,087
Non-owner occupied		6,330		1,788		1,957		10,075		48,343		58,418		—		4,793
Multi-family		—		—		—		—		8,878		8,878		—		—
Construction and Development:
Construction		291		—		—		291		3,107		3,398		—		—
Improved Land		—		—		247		247		1,278		1,525		—		247
Unimproved Land		—		—		207		207		247		454		—		206
Consumer and Other		55		1		126		182		6,908		7,090		—		135
Total	$	9,736	$	3,135	$	8,928	$	21,799	$	177,588	$	199,387	$	—	$	12,952

Schedule of loan portfolio by risk rating

The following table presents our loan portfolio by risk rating (in thousands):

	At December 31, 2012
	Total		Pass Credits		Special Mention		Substandard		Doubtful
Single-Family Residential:
First mortgages	$	25,729	$	21,656	$	—	$	4,073	$	—
HELOC's and equity		8,794		7,745		583		466		—
Commercial, financial, and agricultural:
Secured		16,856		16,788		37		31		—
Unsecured		6,654		5,456		1,185		13		—
Commercial Real Estate:
Owner occupied		57,648		44,252		9,551		3,845		—
Non-owner occupied		55,086		45,127		3,248		6,711		—
Multi-family		12,505		10,636		1,413		456		—
Construction and Development:
Construction		989		869		120		—		—
Improved Land		451		245		—		206		—
Unimproved Land		373		—		—		373		—
Consumer		5,913		5,801		—		87		25
Total	$	190,998	$	158,575	$	16,137	$	16,261	$	25

	At December 31, 2011
	Total		Pass Credits		Special Mention		Substandard		Doubtful
Single-Family Residential:
First mortgages	$	28,162	$	23,747	$	—	$	4,350	$	65
HELOC's and equity		9,377		8,173		112		1,092		—
Commercial, financial, and agricultural:
Secured		17,672		17,503		13		156		—
Unsecured		5,034		5,034		—		—		—
Commercial Real Estate:
Owner occupied		59,379		53,748		36		5,595		—
Non-owner occupied		58,418		42,186		6,120		8,872		1,240
Multi-family		8,878		8,475		403		—		—
Construction and Development:
Construction		3,398		3,107		—		291		—
Improved Land		1,525		1,182		—		343		—
Unimproved Land		454		247		—		207		—
Consumer		7,090		6,934		19		129		8
Total	$	199,387	$	170,336	$	6,703	$	21,035	$	1,313

Schedule of troubled debt restructurings

During the year ended December 31, 2012, the Bank modified 8 loans that were considered to be troubled debt restructurings. We extended the terms and decreased the interest rate on 8 loans (dollar in thousands).

	December 31, 2012
	Number of Loans		Pre-Modification Recorded Investment		Post-Modification Recorded Investment
Troubled Debt Restructurings
Residential:
Residential mortgages		2	$	412	$	424
HELOC's and equity		—		—		—
Commercial Real Estate:
Owner occupied		5		4,442		4,428
Non-owner occupied		1		114		113
Consumer and Other		—		—		—
Total		8	$	4,968	$	4,965

        During the year ended December 31, 2011, the Bank modified 12 loans that were considered to be troubled debt restructurings. We extended the terms on 4 loans, decreased the interest rate on 1 loan, and extended the terms and decreased the interest rate on 7 loans (dollar in thousands).

	December 31, 2011
	Number of Loans		Pre-Modification Recorded Investment		Post-Modification Recorded Investment
Troubled Debt Restructurings
Residential:
Residential mortgages		5	$	597	$	613
HELOC's and equity		1		21		21
Commercial Real Estate:
Owner occupied		3		1,274		1,282
Non-owner occupied		1		958		958
Consumer and Other		2		18		18
Total		12	$	2,868	$	2,892