Note 3 - Loans

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

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

NOTE 3: Loans

Major classifications of loans are summarized as follows:

(Dollars in thousands)	June 30, 2013			December 31, 2012
Real estate – residential mortgage	$	151,371		$	149,257
Real estate – construction 1		5,330			5,062
Commercial, financial and agricultural 2		193,414			205,052
Equity lines		33,104			33,324
Consumer		5,251			5,309
Consumer finance		284,856			278,186
		673,326			676,190
Less allowance for loan losses		(34,769	)		(35,907	)
Loans, net	$	638,557		$	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 $249,000 and $293,000 of demand deposit overdrafts at June 30, 2013 and December 31, 2012, respectively.

Loans on nonaccrual status were as follows:

(Dollars in thousands)	June 30, 2013		December 31, 2012
Real estate – residential mortgage	$	2,136	$	1,805
Commercial, financial and agricultural:
Commercial real estate lending		3,550		3,426
Land acquisition and development lending		—		5,234
Builder line lending		14		15
Commercial business lending		702		759
Equity lines		211		31
Consumer		188		191
Consumer finance		680		655
Total loans on nonaccrual status	$	7,481	$	12,116

The past due status of loans as of June 30, 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	$	823	$	561	$	1,193	$	2,577	$	148,794	$	151,371	$	106
Real estate – construction:
Construction lending		—		—		—		—		3,725		3,725		—
Consumer lot lending		—		—		—		—		1,605		1,605		—
Commercial, financial and agricultural:
Commercial real estate lending		4,864		121		3,216		8,201		118,472		126,673		—
Land acquisition and development lending		—		—		—		—		19,396		19,396		—
Builder line lending		—		—		—		—		12,214		12,214		—
Commercial business lending		19		—		481		500		34,631		35,131		—
Equity lines		239		106		89		434		32,670		33,104		—
Consumer		71		—		188		259		4,992		5,251		—
Consumer finance		9,184		1,791		680		11,655		273,201		284,856		—
Total	$	15,200	$	2,579	$	5,847	$	23,626	$	649,700	$	673,326	$	106

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 $1.4 million, 30-59 days past due of $78,000, 60-89 days past due of $256,000 and 90+ days past due of $5.8 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 June 30, 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	$	1,753	$	1,981	$	369	$	2,089	$	49
Commercial, financial and agricultural:
Commercial real estate lending		4,338		4,527		624		4,349		82
Builder line lending		14		17		4		15		—
Commercial business lending		801		805		203		807		4
Consumer		323		323		48		323		6
Total	$	7,229	$	7,653	$	1,248	$	7,583	$	141

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 and six months ended June 30, 2013 and 2012 were as follows:

	Three Months Ended June 30,
	2013				2012
(Dollars in thousands)	Number of Loans		Post-Modification Recorded Investment		Number of Loans		Post-Modification Recorded Investment
Real estate - residential mortgage - interest reduction		—	$	—		1	$	122
Real estate - residential mortgage - interest rate concession		1		89		—		—
Commercial, financial and agricultural:
Commercial real estate lending - interest rate concession		1		473		—		—
Builder line lending - interest rate concession		1		17		—		—
Commercial business lending - interest rate concession		—		—		2		373
Total		3	$	579		3	$	495

	Six Months Ended June 30,
	2013				2012
(Dollars in thousands)	Number of Loans		Post-Modification Recorded Investment		Number of Loans		Post-Modification Recorded Investment
Real estate - residential mortgage - interest reduction		—	$	—		1	$	122
Real estate - residential mortgage - interest rate concession		1		89		—		—
Commercial, financial and agricultural:
Commercial real estate lending - interest rate concession		2		479		—		—
Builder line lending - interest rate concession		1		17		—		—
Commercial business lending - interest rate concession		—		—		2		373
Consumer – interest reduction		—		—		1		108
Total		4	$	585		4	$	603

TDR payment defaults during the three and six months ended June 30, 2013 and 2012 were as follows:

	Three Months Ended June 30,
	2013				2012
(Dollars in thousands)	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
Commercial, financial and agricultural:
Builder line lending		—	$	—		1	$	88
Commercial business lending		—		—		3		363
Total		—	$	—		4	$	451

	Six Months Ended June 30,
	2013				2012
(Dollars in thousands)	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
Commercial, financial and agricultural:
Commercial real estate lending		1	$	3		—	$	—
Builder line lending		—		—		1		88
Commercial business lending		—		—		3		363
Total		1	$	3		4	$	451

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.