Note 3 - Loans

3 Months Ended

Mar. 31, 2013

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 3: Loans

Major classifications of loans are summarized as follows:

(Dollars in thousands)	March 31, 2013			December 31, 2012
Real estate – residential mortgage	$	151,908		$	149,257
Real estate – construction 1		4,173			5,062
Commercial, financial and agricultural 2		200,280			205,052
Equity lines		32,852			33,324
Consumer		5,129			5,309
Consumer finance		280,774			278,186
		675,116			676,190
Less allowance for loan losses		(33,921	)		(35,907	)
Loans, net	$	641,195		$	640,283

1 Includes the Corporation’s real estate construction lending and consumer real estate lot lending.

2 Includes the Corporation’s commercial real estate lending, land acquisition and development lending, builder line lending and commercial business lending.

Consumer loans included $220,000 and $293,000 of demand deposit overdrafts at March 31, 2013 and December 31, 2012, respectively.

Loans on nonaccrual status were as follows:

(Dollars in thousands)	March 31, 2013		December 31, 2012
Real estate – residential mortgage	$	1,964	$	1,805
Real estate – construction:
Construction lending		—		—
Consumer lot lending		—		—
Commercial, financial and agricultural:
Commercial real estate lending		3,349		3,426
Land acquisition and development lending		—		5,234
Builder line lending		15		15
Commercial business lending		760		759
Equity lines		78		31
Consumer		188		191
Consumer finance		675		655
Total loans on nonaccrual status	$	7,029	$	12,116

The past due status of loans as of March 31, 2013 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	$	1,768	$	530	$	1,217	$	3,515	$	148,393	$	151,908	$	361
Real estate – construction:
Construction lending		—		—		—		—		3,490		3,490		—
Consumer lot lending		—		—		—		—		683		683		—
Commercial, financial and agricultural:
Commercial real estate lending		4,681		—		3,171		7,852		116,742		124,594		—
Land acquisition and development lending		—		—		—		—		28,208		28,208		—
Builder line lending		—		—		—		—		13,890		13,890		—
Commercial business lending		20		—		539		559		33,029		33,588		—
Equity lines		90		32		70		192		32,660		32,852		—
Consumer		17		—		189		206		4,923		5,129		1
Consumer finance		5,975		1,175		675		7,825		272,949		280,774		—
Total	$	12,551	$	1,737	$	5,861	$	20,149	$	654,967	$	675,116	$	362

For the purposes of the above table, “Current” includes loans that are 1-29 days past due. In addition, the above table includes nonaccrual loans that are current of $1.1 million, 30-59 days past due of $183,000, 60-89 days past due of $199,000 and 90+ days past due of $5.5 million.

The past due status of loans as of December 31, 2012 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	$	1,402	$	456	$	641	$	2,499	$	146,758	$	149,257	$	—
Real estate – construction:
Construction lending		—		—		—		—		3,157		3,157		—
Consumer lot lending		—		—		—		—		1,905		1,905		—
Commercial, financial and agricultural:
Commercial real estate lending		7,650		496		324		8,470		111,177		119,647		—
Land acquisition and development lending		—		—		5,234		5,234		28,903		34,137		—
Builder line lending		—		—		—		—		15,948		15,948		—
Commercial business lending		794		—		40		834		34,486		35,320		—
Equity lines		270		—		22		292		33,032		33,324		—
Consumer		69		—		191		260		5,049		5,309		—
Consumer finance		10,111		2,052		655		12,818		265,368		278,186		—
Total	$	20,296	$	3,004	$	7,107	$	30,407	$	645,783	$	676,190	$	—

For the purposes of the above table, “Current” includes loans that are 1-29 days past due. In addition, the above table includes nonaccrual loans that are current of $1.2 million, 30-59 days past due of $3.4 million, 60-89 days past due of $421,000 and 90+ days past due of $7.1 million.

Impaired loans, which consist solely of troubled debt restructurings (TDRs), and the related allowance at March 31, 2013 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	$	1,844	$	2,066	$	401	$	2,022	$	28
Commercial, financial and agricultural:
Commercial real estate lending		3,967		4,259		582		4,074		68
Commercial business lending		807		811		92		810		2
Consumer		323		323		48		323		3
Total	$	6,941	$	7,459	$	1,123	$	7,229	$	101

Impaired loans, which consist solely of TDRs, and the related allowance at December 31, 2012 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	$	2,230	$	2,283	$	433	$	2,266	$	124
Commercial, financial and agricultural:
Commercial real estate lending		7,892		8,190		1,775		8,260		254
Land acquisition and development lending		5,234		5,234		1,432		5,443		236
Builder line lending		—		—		—		1,407		—
Commercial business lending		812		817		112		827		13
Consumer		324		324		49		324		16
Total	$	16,492	$	16,848	$	3,801	$	18,527	$	643

Loan modifications that were classified as TDRs during the three months ended March 31, 2013 and 2012 were as follows:

	Three Months Ended March 31,
	2013				2012
(Dollars in thousands)	Number of Loans		Post-Modification Recorded Investment		Number of Loans		Post-Modification Recorded Investment
Commercial real estate lending – interest rate concession		1	$	6		—	$	—
Consumer – interest reduction		—	—			1	108
Total		1	$	6		1	$	108

TDR payment defaults during three months ended March 31, 2013 and 2012 were as follows:

	Three Months Ended March 31,
	2013				2012
(Dollars in thousands)	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
Commercial real estate lending		1	$	3		—	$	—

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.