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Loans
 12 Months Ended
Dec. 31, 2011
Loans [Abstract]  
Loans
NOTE 3: Loans
 
Major classifications of loans are summarized as follows:
 
   
December 31,
 
(Dollars in thousands)
 
2011
  
2010
 
Real estate – residential mortgage
 $147,135  $146,073 
Real estate – construction
  5,737   12,095 
Commercial, financial and agricultural 1
  212,235   219,226 
Equity lines
  33,192   32,187 
Consumer
  6,057   5,250 
Consumer finance
  246,305   220,753 
    650,661   635,584 
Less allowance for loan losses
  (33,677)  (28,840)
Loans, net
 $616,984  $606,744 
________
 
1
Includes the Corporation's commercial real estate lending, land acquisition and development lending, builder line lending and commercial business lending.
 
Consumer loans included $299,000 and $378,000 of demand deposit overdrafts at December 31, 2011 and 2010, respectively.
 
Loans on nonaccrual status were as follows:
 
   
December 31,
 
(Dollars in thousands)
 
2011
  
2010
 
Real estate – residential mortgage
 $2,440  $189 
Real estate – construction:
        
Construction lending1
  -   - 
Consumer lot lending1
  -   - 
Commercial, financial and agricultural:
        
Commercial real estate lending
  5,093   5,760 
Land acquisition & development lending
  -   - 
Builder line lending
  2,303   67 
Commercial business lending
  673   1,448 
Equity lines
  123   266 
Consumer
  -   35 
Consumer finance
  381   151 
Total loans on nonaccrual status
 $11,013  $7,916 
____
 
1
At December 31, 2011 and 2010 there were no real estate construction lending loans or real estate consumer lot lending loans on nonaccrual status.
 
If interest income had been recognized on nonaccrual loans at their stated rates during years 2011, 2010 and 2009, interest income would have increased by approximately $651,000, $624,000 and $668,000, respectively.
 
The past due status of loans as of December 31, 2011 was as follows:
 
(Dollars in thousands)
 
30-59 Days
 Past Due
  
60-89 Days
Past Due
  
90+ Days
Past Due
  
Total Past
Due
  
Current
  
Total Loans
  
90+ Days
 Past Due and
Accruing
 
Real estate – residential mortgage
 $1,270  $1,445  $533  $3,248  $143,887  $147,135  $65 
Real estate – construction:
                            
Construction lending
  -   -   -   -   5,084   5,084   - 
Consumer lot lending
  -   -   -   -   653   653   - 
Commercial, financial and agricultural:
                            
Commercial real estate lending
  986   1,311   -   2,297   114,475   116,772   - 
Land acquisition & development lending
  -   -   -   -   32,645   32,645   - 
Builder line lending
  -   -   -   -   17,637   17,637   - 
Commercial business lending
  480   -   -   480   44,701   45,181   - 
Equity lines
  69   90   33   192   33,000   33,192   - 
Consumer
  13   -   -   13   6,044   6,057   3 
Consumer finance
  5,327   1,041   381   6,749   239,556   246,305   - 
Total
 $8,145  $3,887  $947  $12,979  $637,682  $650,661  $68 
 
For the purposes of the above table, “Current” includes loans that are 1-29 days past due.
 
The past due status of loans as of December 31, 2010 was as follows:
 
(Dollars in thousands)
 
30-59 Days
Past Due
  
60-89 Days
Past Due
  
90+ Days Past
Due
  
Total Past
Due
  
Current
  
Total Loans
  
90+ Days
Past Due and
Accruing
 
Real estate – residential mortgage
 $1,605  $826  $751  $3,182  $142,891  $146,073  $676 
Real estate – construction:
                            
Construction lending
  -   -   -   -   10,744   10,744   - 
Consumer lot lending
  -   -   -   -   1,351   1,351   - 
Commercial, financial and agricultural:
                            
Commercial real estate lending
  59   -   2,840   2,899   108,418   111,317   186 
Land acquisition and development lending
  -   -   -   -   34,314   34,314   - 
Builder line lending
  -   1,450   195   1,645   23,171   24,816   128 
Commercial business lending
  9   -   1,383   1,392   47,387   48,779   - 
Equity lines
  223   115   35   373   31,814   32,187   35 
Consumer
  1   11   38   50   5,200   5,250   5 
Consumer finance
  4,913   829   151   5,893   214,860   220,753   - 
Total
 $6,810  $3,231  $5,393  $15,434  $620,150  $635,584  $1,030 
 
For the purposes of the above table, “Current” includes loans that are 1-29 days past due.
 
As a result of adopting the amendments in ASU 2011-02, the Corporation reassessed all loan modifications that occurred on or after January 1, 2011 to determine whether they should be considered TDRs.  There were no additional TDRs identified in connection with this reassessment.
 
The balance at December 31, 2011 of loan modifications classified as TDRs during the year ended December 31, 2011 were as follows:
 
(Dollars in thousands)
 
December 31,
2011
 
Real estate – residential mortgage – interest reduction
 $618 
Real estate – residential mortgage – interest rate concession
  210 
Commercial, financial and agricultural:
    
Commercial real estate lending – interest reduction
  171 
Commercial real estate lending – interest rate concession
  5,201 
Commercial real estate lending – principal reduction
  490 
Builder line lending – interest rate concession
  2,285 
Commercial business lending – interest rate concession
  652 
Total
 $9,627 
 
TDR additions during the year ended December 31, 2011 included two commercial relationships totaling $7.11 million at December 31, 2011 for which loan modifications were negotiated.  While these relationships were also in nonaccrual status at December 31, 2011, the borrowers are servicing the loans in accordance with the modified terms.  The Corporation has no obligation to fund additional advances on its impaired loans.
 
TDR payment defaults during year ended December 31, 2011 were as follows:
 
(Dollars in thousands)
 
Year Ended
December 31,
2011
 
Real estate – residential mortgage
 $153 
Consumer
  4 
Total
 $157 
 
For purposes of this disclosure, a TDR payment default occurs when, within 12 months of the original TDR modification, either a full or partial charge-off occurs or a TDR becomes 90 days or more past due.
 
Impaired loans, which include TDRs of $17.09 million, and the related allowance at December 31, 2011 were as follows:
 
(Dollars in thousands)
 
Recorded
Investment in
Loans
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Average
Balance Total
Loans
  
Interest
Income
Recognized
 
Real estate – residential mortgage
 $3,482  $3,698  $657  $3,723  $137 
Commercial, financial and agricultural:
                    
Commercial real estate lending
  5,861   5,957   1,464   6,195   102 
Land acquisition & development lending
  5,490   5,814   1,331   6,116   372 
Builder line lending
  2,285   2,285   318   2,397   - 
Commercial business lending
  652   654   161   663   6 
Equity lines
  -   -   -   -   - 
Consumer
  324   324   49   324   14 
Total
 $18,094  $18,732  $3,980  $19,418  $631 
 
Impaired loans, which include TDRs of $9.77 million, and the related allowance at December 31, 2010 were as follows:
 
(Dollars in thousands)
 
Recorded
Investment in
Loans
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Average
Balance-Impaired
Loans
  
Interest
Income
Recognized
 
Real estate – residential mortgage
 $3,110  $3,110  $466  $2,689  $137 
Commercial, financial and agricultural:
                    
Commercial real estate lending
  5,760   6,816   1,263   3,582   30 
Land acquisition & development lending
  5,919   5,919   400   1,038   30 
Builder line lending
  -   -   -   1,014   - 
Commercial business lending
  1,142   1,267   404   613   - 
Equity lines
  148   150   49   149   4 
Consumer
  338   338   51   333   14 
Total
 $16,417  $17,600  $2,633  $9,418  $215 
 
The average balance of impaired loans for 2009 was $12.43 million.