XML 20 R15.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Allowance for Loan Losses and Credit Quality Information
 6 Months Ended
Jun. 30, 2011
Allowance for Loan Losses and Credit Quality Information [Abstract]  
Allowance for Loan Losses and Credit Quality Information
(9) Allowance for Loan Losses and Credit Quality Information
The allowance for loan losses is summarized as follows:
                                         
            Commercial           Commercial        
(Dollars in thousands)   1-4 Family     Real Estate     Consumer     Business     Total  
     
For the three months ended June 30, 2011:
   
Balance, March 31, 2011
  $ 2,498       17,558       1,023       13,874       34,953  
 
                                       
Provision for losses
    954       2,376       159       (26 )     3,463  
Charge-offs
    (15 )     (4,633 )     (35 )     (6,249 )     (10,932 )
Recoveries
    0       66       7       207       280  
 
                             
Balance, June 30, 2011
  $ 3,437       15,367       1,154       7,806       27,764  
 
                             
 
                                       
For the six months ended June 30, 2011:
   
Balance, December 31, 2010
    2,145       24,590       924       15,169       42,828  
 
                                       
Provision for losses
    1,710       2,914       307       478       5,409  
Charge-offs
    (418 )     (12,209 )     (87 )     (8,557 )     (21,271 )
Recoveries
    0       72       10       716       798  
 
                             
Balance, June 30, 2011
  $ 3,437       15,367       1,154       7,806       27,764  
 
                             
 
                                       
Allocated to:
                                       
Specific reserves
  $ 993       13,263       76       10,702       25,034  
General reserves
    1,152       11,327       848       4,467       17,794  
 
                             
Balance, December 31, 2010
  $ 2,145       24,590       924       15,169       42,828  
 
                             
 
                                       
Allocated to:
                                       
Specific reserves
  $ 1,430       6,354       293       4,070       12,147  
General reserves
    2,007       9,013       861       3,736       15,617  
 
                             
Balance, June 30, 2011
  $ 3,437       15,367       1,154       7,806       27,764  
 
                             
 
                                       
Loans receivable at December 31, 2010:
                                       
Individually reviewed for impairment
  $ 6,729       45,077       299       26,855       78,960  
Collectively reviewed for impairment
    121,806       311,314       70,304       126,184       629,608  
 
                             
Ending balance
  $ 128,535       356,391       70,603       153,039       708,568  
 
                             
Loans receivable at June 30, 2011:
                                       
Individually reviewed for impairment
  $ 4,653       34,260       664       17,120       56,697  
Collectively reviewed for impairment
    118,010       279,457       66,003       110,461       573,931  
 
                             
Ending balance
  $ 122,663       313,717       66,667       127,581       630,628  
 
                             
The following table summarizes the amount of classified and unclassified loans at June 30, 2011 and December 31, 2010:
                                                         
    June 30, 2011
    Classified     Unclassified        
    Special                                      
(Dollars in thousands)   Mention     Substandard     Doubtful     Loss     Total     Total     Total Loans  
 
1-4 family
  $ 8,385       5,105       359       250       14,099       108,564       122,663  
Commercial real estate:
                                                       
Residential developments
    8,851       25,778       0       0       34,629       33,901       68,530  
Alternative fuels
    5,769       2,266       0       0       8,035       18,096       26,131  
Other
    5,784       7,534       0       0       13,318       205,738       219,056  
 
                                                       
Consumer
    0       334       181       149       664       66,003       66,667  
Commercial business:
                                                       
Construction/development
    0       3,046       0       0       3,046       2,976       6,022  
Banking
    0       675       1,299       0       1,974       5,580       7,554  
Other
    4,034       12,565       0       0       16,599       97,406       114,005  
 
                                         
 
  $ 32,823       57,303       1,839       399       92,364       538,264       630,628  
 
                                         
                                                         
    December 31, 2010
    Classified     Unclassified        
    Special                                      
(Dollars in thousands)   Mention     Substandard     Doubtful     Loss     Total     Total     Total Loans  
 
1-4 family
  $ 7,395       8,228       0       0       15,623       112,912       128,535  
Commercial real estate:
                                                       
Residential developments
    8,373       34,515       0       0       42,888       44,218       87,106  
Alternative fuels
    0       11,069       0       0       11,069       20,054       31,123  
Other
    6,268       6,614       0       0       12,882       225,280       238,162  
 
                                                       
Consumer
    0       248       31       27       306       70,297       70,603  
Commercial business:
                                                       
Construction/development
    1,776       4,907       0       0       6,683       5,117       11,800  
Banking
    0       4,975       3,248       0       8,223       5,830       14,053  
Other
    4,712       15,689       67       0       20,468       106,718       127,186  
 
                                         
 
  $ 28,524       86,245       3,346       27       118,142       590,426       708,568  
 
                                         
Classified loans represent non-performing loans and loans that are generally inadequately protected by the current net worth and paying capacity of the obligor, or by the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
The aging of past due loans at June 30, 2011 and December 31, 2010 is summarized as follows:
                                                         
    30-59     60-89     90 Days                             Loans 90 Days or    
    Days     Days     or More     Total                     More Past Due and  
(Dollars in thousands)   Past Due     Past Due     Past Due     Past Due     Current Loans     Total Loans     Still Accruing  
     
June 30, 2011
                                                       
1-4 family
  $ 2,485       1,341       453       4,279       118,384       122,663       0  
Commercial real estate:
                                                       
Residential developments
    1,709       5,441       0       7,150       61,380       68,530       0  
Alternative fuels
    0       0       2,266       2,266       23,865       26,131       0  
Other
    1,291       0       0       1,291       217,765       219,056       0  
 
                                                       
Consumer
    527       7       466       1,000       65,667       66,667       0  
Commercial business:
                                                       
Construction/development
    0       0       0       0       6,022       6,022       0  
Banking
    0       0       1,974       1,974       5,580       7,554       0  
Other
    586       2,786       5,558       8,930       105,075       114,005       0  
 
                                         
 
  $ 6,598       9,575       10,717       26,890       603,738       630,628       0  
 
                                         
December 31, 2010
                                                       
1-4 family
  $ 2,313       695       3,500       6,508       122,027       128,535       178  
Commercial real estate:
                                                       
Residential developments
    444       3,899       15,523       19,866       67,240       87,106       0  
Alternative fuels
    0       0       4,994       4,994       26,129       31,123       0  
Other
    75       264       3,914       4,253       233,909       238,162       0  
 
                                                       
Consumer
    446       163       207       816       69,787       70,603       0  
Commercial business:
                                                       
Construction/development
    0       0       4,809       4,809       6,991       11,800       0  
Banking
    0       0       8,223       8,223       5,830       14,053       0  
Other
    311       45       7,876       8,232       118,954       127,186       576  
 
                                         
 
  $ 3,589       5,066       49,046       57,701       650,867       708,568       754  
 
                                         
Impaired loans include loans that are non-performing (non-accruing) and loans that have been modified in a troubled debt restructuring. The following table summarizes impaired loans and related allowances as of June 30, 2011 and December 31, 2010:
                                                 
    June 30, 2011     December 31, 2010  
(Dollars in thousands)   Recorded
Investment		     Unpaid
Principal
Balance		     Related
Allowance		     Recorded
Investment		     Unpaid
Principal
Balance		     Related
Allowance		  
 
Loans with no related allowance recorded:
                                               
1-4 family
  $ 1,336       1,336       0       932       932       0  
Commercial real estate:
                                               
Residential developments
    5,716       5,716       0       6,486       6,486       0  
Alternative fuels
    2,266       4,994       0       0       0       0  
Other
    657       657       0       119       119       0  
Consumer
    224       224       0       104       104       0  
Commercial business:
                                               
Construction/development
    344       1,462       0       99       99       0  
Banking
    1,974       8,223       0       0       0       0  
Other
    665       865       0       397       397       0  
 
                                               
Loans with an allowance recorded:
                                               
1-4 family
    3,317       3,317       1,430       5,797       5,797       994  
Commercial real estate:
                                               
Residential developments
    18,756       18,756       4,887       27,147       27,147       9,673  
Alternative fuels
    0       0       0       4,994       4,994       2,441  
Other
    6,865       8,821       1,467       6,331       7,287       1,148  
Consumer
    440       440       293       195       195       76  
Commercial business:
                                               
Construction/development
    2,702       2,849       530       4,809       4,809       2,668  
Banking
    0       0       0       8,223       8,223       4,985  
Other
    11,435       11,987       3,540       13,327       13,878       3,049  
 
                                               
Total:
                                               
1-4 family
    4,653       4,653       1,430       6,729       6,729       994  
Commercial real estate:
                                               
Residential developments
    24,472       24,472       4,887       33,633       33,633       9,673  
Alternative fuels
    2,266       4,994       0       4,994       4,994       2,441  
Other
    7,522       9,478       1,467       6,450       7,406       1,148  
Consumer
    664       664       293       299       299       76  
Commercial business:
                                               
Construction/development
    3,046       4,311       530       4,908       4,908       2,668  
Banking
    1,974       8,223       0       8,223       8,223       4,985  
Other
    12,100       12,852       3,540       13,724       14,275       3,049  
 
                                   
 
  $ 56,697       69,647       12,147       78,960       80,467       25,034  
 
                                   
                                 
    For the three months ended June 30, 2011     For the six months ended June 30, 2011  
    Average
Recorded		     Interest
Income		     Average
Recorded		     Interest
Income		  
(Dollars in thousands)   Investment     Recognized     Investment     Recognized  
 
Loans with no related allowance recorded:
                               
1-4 family
  $ 1,354       16       1,213       36  
Commercial real estate:
                               
Residential developments
    5,798       14       6,027       88  
Alternative fuels
    1,133       0       755       0  
Other
    656       10       477       13  
Consumer
    132       0       123       2  
Commercial business:
                               
Construction/development
    345       2       263       4  
Banking
    987       0       658       0  
Other
    654       3       568       17  
 
                               
Loans with an allowance recorded:
                               
1-4 family
    4,029       50       4,618       86  
Commercial real estate:
                               
Residential developments
    15,826       192       19,599       431  
Alternative fuels
    2,498       0       3,330       0  
Other
    6,406       40       6,381       59  
Consumer
    347       5       296       10  
Commercial business:
                               
Construction/development
    3,344       18       3,831       36  
Banking
    4,112       0       5,482       0  
Other
    11,366       63       12,020       147  
 
                               
Total:
                               
1-4 family
    5,383       66       5,831       122  
Commercial real estate:
                               
Residential developments
    21,624       206       25,626       519  
Alternative fuels
    3,631       0       4,085       0  
Other
    7,062       50       6,858       72  
Consumer
    479       5       419       12  
Commercial business:
                               
Construction/development
    3,689       20       4,094       40  
Banking
    5,099       0       6,140       0  
Other
    12,020       66       12,588       164  
 
                       
 
  $ 58,987       413       65,641       929  
 
                       
At June 30, 2011 and December 31, 2010, non-accruing loans totaled $43.1 million and $68.1 million, respectively, for which the related allowance for loan losses was $10.2 million and $25.0 million, respectively. Interest is subsequently recognized as income to the extent cash is received when, in management’s judgment, principal is collectible. Non-accruing loans for which no specific allowance has been recorded, because management determined that the value of the collateral was sufficient to repay the loan, totaled $11.3 million and $8.1 million, respectively. Non-accrual loans also include certain loans that have had terms modified in a troubled debt restructuring.
The non-accrual loans at June 30, 2011 and December 31, 2010 are summarized as follows:
                 
(Dollars in thousands)   June 30, 2011     December 31, 2010  
1-4 family
  $ 2,039     $ 4,844  
Commercial real estate:
               
Residential developments
    16,422       25,980  
Alternative fuels
    2,266       4,994  
Other
    6,506       5,763  
Consumer
    555       224  
Commercial business:
               
Construction/development
    3,046       4,907  
Banking
    1,974       8,223  
Other
    10,278       13,139  
 
           
 
  $ 43,086     $ 68,074  
 
           
At June 30, 2011 and December 31, 2010 there were loans included in loans receivable, net, with terms that had been modified in a troubled debt restructuring totaling $28.1 million and $19.3 million, respectively. For the loans that were restructured in the second quarter of 2011, $1.0 million were classified but performing and $6.3 million were non-performing at June 30, 2011.
The following table summarizes troubled debt restructurings at June 30, 2011 and December 31, 2010:
                 
    June 30,     December 31,  
(Dollars in thousands)   2011     2010  
Commercial real estate
  $ 20,275       14,871  
Commercial business
    4,119       1,756  
1-4 family
    3,534       2,589  
Consumer
    200       75  
 
           
 
  $ 28,128       19,291  
 
           
There were no material commitments to lend additional funds to customers whose loans were restructured or classified as nonaccrual at June 30, 2011 or December 31, 2010.