Note 4 - Allowance for Loan Losses

3 Months Ended

Mar. 31, 2013

Allowance for Credit Losses [Text Block]

NOTE 4: Allowance for Loan Losses

The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2013.

(Dollars in thousands)	Real Estate Residential Mortgage			Real Estate Construction			Commercial, Financial and Agricultural			Equity Lines			Consumer			Consumer Finance			Total
Allowance for loan losses:
Balance at December 31, 2012	$	2,358		$	424		$	9,824		$	885		$	283		$	22,133		$	35,907
Provision charged to operations		332			(79	)		67			(12	)		122			2,750			3,180
Loans charged off		(473	)		—			(2,134	)		(37	)		(184	)		(3,393	)		(6,221	)
Recoveries of loans previously charged off		79			—			8			27			47			894			1,055
Balance at March 31, 2013	$	2,296		$	345		$	7,765		$	863		$	268		$	22,384		$	33,921

The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2012.

(Dollars in thousands)	Real Estate Residential Mortgage			Real Estate Construction			Commercial, Financial and Agricultural		Equity Lines			Consumer			Consumer Finance			Total
Allowance for loan losses:
Balance at December 31, 2011	$	2,379		$	480		$	10,040	$	912		$	319		$	19,547		$	33,677
Provision charged to operations		386			(13	)		335		126			(9	)		1,900			2,725
Loans charged off		(122	)		—			—		(121	)		(90	)		(2,200	)		(2,533	)
Recoveries of loans previously charged off		10			—			35		—			49			794			888
Balance at March 31, 2012	$	2,653		$	467		$	10,410	$	917		$	269		$	20,041		$	34,757

The following table presents, as of March 31, 2013, the total allowance for loan losses, the allowance by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment), total loans, and loans by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment).

(Dollars in thousands)	Real Estate Residential Mortgage		Real Estate Construction		Commercial, Financial and Agricultural		Equity Lines		Consumer		Consumer Finance		Total
Allowance for loan losses:
Balance at March 31, 2013	$	2,296	$	345	$	7,765	$	863	$	268	$	22,384	$	33,921
Ending balance: individually evaluated for impairment	$	401	$	—	$	674	$	—	$	48	$	—	$	1,123
Ending balance: collectively evaluated for impairment	$	1,895	$	345	$	7,091	$	863	$	220	$	22,384	$	32,798
Loans:
Balance March 31, 2013	$	151,908	$	4,173	$	200,280	$	32,852	$	5,129	$	280,774	$	675,116
Ending balance: individually evaluated for impairment	$	1,844	$	—	$	4,774	$	—	$	323	$	—	$	6,941
Ending balance: collectively evaluated for impairment	$	150,064	$	4,173	$	195,506	$	32,852	$	4,806	$	280,774	$	668,175

The following table presents, as of December 31, 2012, the total allowance for loan losses, the allowance by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment), total loans, and loans by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment).

(Dollars in thousands)	Real Estate Residential Mortgage		Real Estate Construction		Commercial, Financial and Agricultural		Equity Lines		Consumer		Consumer Finance		Total
Allowance for loan losses:
Balance at December 31, 2012	$	2,358	$	424	$	9,824	$	885	$	283	$	22,133	$	35,907
Ending balance: individually evaluated for impairment	$	433	$	—	$	3,319	$	—	$	49	$	—	$	3,801
Ending balance: collectively evaluated for impairment	$	1,925	$	424	$	6,505	$	885	$	234	$	22,133	$	32,106
Loans:
Balance at December 31, 2012	$	149,257	$	5,062	$	205,052	$	33,324	$	5,309	$	278,186	$	676,190
Ending balance: individually evaluated for impairment	$	2,230	$	—	$	13,938	$	—	$	324	$	—	$	16,492
Ending balance: collectively evaluated for impairment	$	147,027	$	5,062	$	191,114	$	33,324	$	4,985	$	278,186	$	659,698

Loans by credit quality indicators as of March 31, 2013 were as follows:

(Dollars in thousands)	Pass		Special Mention		Substandard		Substandard Nonaccrual		Total1
Real estate – residential mortgage	$	146,665	$	871	$	2,408	$	1,964	$	151,908
Real estate – construction:
Construction lending		561		—		2,929		—		3,490
Consumer lot lending		683		—		—		—		683
Commercial, financial and agricultural:
Commercial real estate lending		111,453		1,586		8,206		3,349		124,594
Land acquisition and development lending		18,851		1,765		7,592		—		28,208
Builder line lending		11,563		1,774		538		15		13,890
Commercial business lending		30,460		228		2,140		760		33,588
Equity lines		30,759		1,248		767		78		32,852
Consumer		4,570		3		368		188		5,129
	$	355,565	$	7,475	$	24,948	$	6,354	$	394,342

(Dollars in thousands)	Performing		Non-Performing		Total
Consumer finance	$	280,099	$	675	$	280,774

1 At March 31, 2013, the Corporation did not have any loans classified as Doubtful or Loss.

Loans by credit quality indicators as of December 31, 2012 were as follows:

(Dollars in thousands)	Pass		Special Mention		Substandard		Substandard Nonaccrual		Total1
Real estate – residential mortgage	$	143,947	$	1,374	$	2,131	$	1,805	$	149,257
Real estate – construction:
Construction lending		228		—		2,929		—		3,157
Consumer lot lending		1,905		—		—		—		1,905
Commercial, financial and agricultural:
Commercial real estate lending		102,472		2,776		10,973		3,426		119,647
Land acquisition and development lending		19,422		1,789		7,692		5,234		34,137
Builder line lending		13,469		1,926		538		15		15,948
Commercial business lending		32,330		187		2,044		759		35,320
Equity lines		31,199		1,327		767		31		33,324
Consumer		4,746		3		369		191		5,309
	$	349,718	$	9,382	$	27,443	$	11,461	$	398,004

(Dollars in thousands)	Performing		Non-Performing		Total
Consumer finance	$	277,531	$	655	$	278,186

1 At December 31, 2012, the Corporation did not have any loans classified as Doubtful or Loss.