LOANS | 9 Months Ended |
Sep. 30, 2013 |
Receivables [Abstract] | ' |
LOANS | ' |
NOTE 3 – LOANS |
Loans consist of the following: |
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(Dollars in thousands) | | September 30, 2013 | | | December 31, 2012 | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 116,190 | | | $ | 104,899 | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | 126,423 | | | | 119,192 | | | | | | | | | | | | | | | | | | | | | |
Residential real estate | | | 112,819 | | | | 110,412 | | | | | | | | | | | | | | | | | | | | | |
Construction & land development | | | 14,904 | | | | 23,358 | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 6,838 | | | | 6,480 | | | | | | | | | | | | | | | | | | | | | |
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Total loans before deferred costs | | | 377,174 | | | | 364,341 | | | | | | | | | | | | | | | | | | | | | |
Deferred loan costs | | | 260 | | | | 239 | | | | | | | | | | | | | | | | | | | | | |
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Total Loans | | $ | 377,434 | | | $ | 364,580 | | | | | | | | | | | | | | | | | | | | | |
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Loan Origination/Risk Management |
The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions. |
Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Underwriting standards are designed to promote relationship banking rather than transactional banking. The Company’s management examines current and occasionally projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. |
Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. At September 30, 2013 and December 31, 2012, approximately 80% and 81%, respectively of the outstanding principal balance of the Company’s commercial real estate loans were secured by owner-occupied properties. |
With respect to loans to developers and builders that are secured by non-owner occupied properties, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction and land development loans are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction and land development loans are generally based upon estimates of costs and value associated with the completed project. These estimates may be inaccurate. |
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Construction and land development loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. |
The Company originates consumer loans utilizing a judgmental underwriting process. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed, jointly by line and staff personnel. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk. |
The Company maintains an independent loan review department that reviews and validates the credit risk program on a periodic basis. Results of these reviews are presented to management. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures. |
Loans serviced for others approximated $59.0 million and $60.2 million at September 30, 2013 and December 31, 2012, respectively. |
Concentrations of Credit |
Nearly all of the Company’s lending activity occurs within the state of Ohio, including the four (4) counties of Holmes, Stark, Tuscarawas and Wayne, as well as other markets. The majority of the Company’s loan portfolio consists of commercial and industrial and commercial real estate loans. As of September 30, 2013 and December 31, 2012, there were no concentrations of loans related to any single industry. |
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Allowance for Loan Losses |
The following table details activity in the allowance for loan losses by portfolio segment for the three and nine month periods ended September 30, 2013 and 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. The increase in the provision for possible loan losses related to commercial loans was affected by a qualitative adjustment for loans rated special mention, as well as changes in volume and credit quality of loans in this category. The provision for possible loan losses related to residential real estate increased during third quarter 2013 as a result of a increase in non performing loans within this category. |
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(Dollars in thousands) | | Commercial | | | Commercial | | | Residential | | | Construction | | | Consumer | | | Unallocated | | | Total | |
Real Estate | Real Estate | & Land |
| | Development |
Three months ended September 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance, June 30, 2013 | | $ | 1,316 | | | $ | 1,815 | | | $ | 1,174 | | | $ | 162 | | | $ | 144 | | | $ | 334 | | | $ | 4,945 | |
Provision for possible loan losses | | | 27 | | | | (5 | ) | | | 95 | | | | 18 | | | | (48 | ) | | | 123 | | | | 210 | |
Charge-offs | | | (54 | ) | | | — | | | | (28 | ) | | | — | | | | (9 | ) | | | | | | | (91 | ) |
Recoveries | | | 5 | | | | — | | | | 3 | | | | — | | | | 5 | | | | | | | | 13 | |
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Net charge-offs | | | (49 | ) | | | — | | | | (25 | ) | | | — | | | | (4 | ) | | | | | | | (78 | ) |
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Ending balance | | $ | 1,294 | | | $ | 1,810 | | | $ | 1,244 | | | $ | 180 | | | $ | 92 | | | $ | 457 | | | $ | 5,077 | |
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(Dollars in thousands) | | Commercial | | | Commercial | | | Residential | | | Construction | | | Consumer | | | Unallocated | | | Total | |
Real Estate | Real Estate | & Land |
| | Development |
Nine months ended September 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance, December 31, 2012 | | $ | 933 | | | $ | 1,902 | | | $ | 1,096 | | | $ | 253 | | | $ | 76 | | | $ | 320 | | | $ | 4,580 | |
Provision for possible loan losses | | | 455 | | | | (41 | ) | | | 162 | | | | (73 | ) | | | (10 | ) | | | 137 | | | | 630 | |
Charge-offs | | | (112 | ) | | | (51 | ) | | | (28 | ) | | | — | | | | (11 | ) | | | | | | | (202 | ) |
Recoveries | | | 18 | | | | — | | | | 14 | | | | — | | | | 37 | | | | | | | | 69 | |
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Net charge-offs | | | (94 | ) | | | (51 | ) | | | (14 | ) | | | — | | | | 26 | | | | | | | | (133 | ) |
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Ending balance | | $ | 1,294 | | | $ | 1,810 | | | $ | 1,244 | | | $ | 180 | | | $ | 92 | | | $ | 457 | | | $ | 5,077 | |
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(Dollars in thousands) | | Commercial | | | Commercial | | | Residential | | | Construction | | | Consumer | | | Unallocated | | | Total | |
Real Estate | Real Estate | & Land |
| | Development |
Three months ended September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance, June 30, 2012 | | $ | 896 | | | $ | 1,927 | | | $ | 1,051 | | | $ | 217 | | | $ | 64 | | | $ | 316 | | | $ | 4,471 | |
Provision for possible loan losses | | | 94 | | | | 108 | | | | (45 | ) | | | 85 | | | | 46 | | | | (82 | ) | | | 206 | |
Charge-offs | | | — | | | | — | | | | — | | | | — | | | | (39 | ) | | | | | | | (39 | ) |
Recoveries | | | 2 | | | | — | | | | 10 | | | | — | | | | 11 | | | | | | | | 23 | |
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Net charge-offs | | | 2 | | | | — | | | | 10 | | | | — | | | | (28 | ) | | | | | | | (16 | ) |
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Ending balance | | $ | 992 | | | $ | 2,035 | | | $ | 1,016 | | | $ | 302 | | | $ | 82 | | | $ | 234 | | | $ | 4,661 | |
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(Dollars in thousands) | | Commercial | | | Commercial | | | Residential | | | Construction | | | Consumer | | | Unallocated | | | Total | |
Real Estate | Real Estate | & Land |
| | Development |
Nine months ended September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance, December 31, 2011 | | $ | 1,024 | | | $ | 1,673 | | | $ | 894 | | | $ | 180 | | | $ | 78 | | | $ | 233 | | | $ | 4,082 | |
Provision for possible loan losses | | | (33 | ) | | | 376 | | | | 127 | | | | 122 | | | | 24 | | | | 1 | | | | 617 | |
Charge-offs | | | (15 | ) | | | (14 | ) | | | (104 | ) | | | — | | | | (70 | ) | | | — | | | | (203 | ) |
Recoveries | | | 16 | | | | — | | | | 99 | | | | — | | | | 50 | | | | — | | | | 165 | |
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Net charge-offs | | | 1 | | | | (14 | ) | | | (5 | ) | | | — | | | | (20 | ) | | | — | | | | (38 | ) |
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Ending balance | | $ | 992 | | | $ | 2,035 | | | $ | 1,016 | | | $ | 302 | | | $ | 82 | | | $ | 234 | | | $ | 4,661 | |
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The following table presents the balance in the allowance for loan losses and the ending loan balances by portfolio segment and based on the impairment method as of September 30, 2013 and December 31, 2012: |
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(Dollars in thousands) | | Commercial | | | Commercial | | | Residential | | | Construction | | | Consumer | | | Unallocated | | | Total | |
Real Estate | Real Estate | & Land |
| | Development |
September 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balances attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 185 | | | $ | 442 | | | $ | 292 | | | $ | — | | | $ | — | | | $ | — | | | $ | 919 | |
Collectively evaluated for impairment | | | 1,109 | | | | 1,368 | | | | 952 | | | | 180 | | | | 92 | | | | 457 | | | | 4,158 | |
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Total ending allowance balance | | $ | 1,294 | | | $ | 1,810 | | | $ | 1,244 | | | $ | 180 | | | $ | 92 | | | $ | 457 | | | $ | 5,077 | |
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Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 3,898 | | | $ | 3,460 | | | $ | 1,832 | | | $ | — | | | $ | — | | | | | | | $ | 9,190 | |
Loans collectively evaluated for impairment | | | 112,292 | | | | 122,963 | | | | 110,987 | | | | 14,904 | | | | 6,838 | | | | | | | | 367,984 | |
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Total ending loans balance | | $ | 116,190 | | | $ | 126,423 | | | $ | 112,819 | | | $ | 14,904 | | | $ | 6,838 | | | | | | | $ | 377,174 | |
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December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balances attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 85 | | | $ | 522 | | | $ | 172 | | | $ | — | | | $ | — | | | $ | — | | | $ | 779 | |
Collectively evaluated for impairment | | | 848 | | | | 1,380 | | | | 924 | | | | 253 | | | | 76 | | | | 320 | | | | 3,801 | |
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Total ending allowance balance | | $ | 933 | | | $ | 1,902 | | | $ | 1,096 | | | $ | 253 | | | $ | 76 | | | $ | 320 | | | $ | 4,580 | |
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Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 4,315 | | | $ | 4,573 | | | $ | 1,137 | | | $ | 166 | | | $ | — | | | | | | | $ | 10,191 | |
Loans collectively evaluated for impairment | | | 100,584 | | | | 114,619 | | | | 109,275 | | | | 23,192 | | | | 6,480 | | | | | | | | 354,150 | |
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Total ending loans balance | | $ | 104,899 | | | $ | 119,192 | | | $ | 110,412 | | | $ | 23,358 | | | $ | 6,480 | | | | | | | $ | 364,341 | |
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The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2013 and December 31, 2012: |
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(Dollars in thousands) | | Unpaid | | | Recorded | | | Recorded | | | Total | | | Related | | | Average | | | Interest | |
Principal | Investment | Investment | Recorded | Allowance | Recorded | Income |
Balance | with no | with | Investment | | Investment | Recognized |
| Allowance | Allowance | | | | |
September 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 3,913 | | | $ | 7 | | | $ | 3,902 | | | $ | 3,909 | | | $ | 185 | | | $ | 3,917 | | | $ | 126 | |
Commercial real estate | | | 3,767 | | | | 306 | | | | 3,155 | | | | 3,461 | | | | 442 | | | | 3,730 | | | | 125 | |
Residential real estate | | | 1,942 | | | | 583 | | | | 1,237 | | | | 1,820 | | | | 292 | | | | 1,270 | | | | 29 | |
Construction & land development | | | — | | | | — | | | | — | | | | — | | | | — | | | | 28 | | | | 2 | |
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Total impaired loans | | $ | 9,622 | | | $ | 896 | | | $ | 8,294 | | | $ | 9,190 | | | $ | 919 | | | $ | 8,945 | | | $ | 282 | |
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December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 4,315 | | | $ | — | | | $ | 4,329 | | | $ | 4,329 | | | $ | 85 | | | $ | 4,123 | | | $ | 167 | |
Commercial real estate | | | 4,906 | | | | 1,723 | | | | 2,849 | | | | 4,572 | | | | 522 | | | | 4,396 | | | | 152 | |
Residential real estate | | | 1,223 | | | | 86 | | | | 1,057 | | | | 1,143 | | | | 172 | | | | 770 | | | | 18 | |
Construction & land development | | | 173 | | | | 166 | | | | — | | | | 166 | | | | — | | | | 167 | | | | — | |
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Total impaired loans | | $ | 10,617 | | | $ | 1,975 | | | $ | 8,235 | | | $ | 10,210 | | | $ | 779 | | | $ | 9,456 | | | $ | 337 | |
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The following table presents the aging of past due loans and nonaccrual loans as of September 30, 2013 and December 31, 2012 by class of loans: |
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(Dollars in thousands) | | Current | | | 30 - 59 | | | 60 - 89 | | | 90 Days + | | | Non-Accrual | | | Total Past | | | Total Loans | |
Days Past | Days Past | Past Due | Due and |
Due | Due | | Non- |
| | | Accrual |
September 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 115,714 | | | $ | 405 | | | $ | — | | | $ | — | | | $ | 71 | | | $ | 476 | | | $ | 116,190 | |
Commercial real estate | | | 124,753 | | | | 271 | | | | 216 | | | | — | | | | 1,183 | | | | 1,670 | | | | 126,423 | |
Residential real estate | | | 110,681 | | | | 767 | | | | 257 | | | | 36 | | | | 1,078 | | | | 2,138 | | | | 112,819 | |
Construction & land development | | | 13,954 | | | | 950 | | | | — | | | | — | | | | — | | | | 950 | | | | 14,904 | |
Consumer | | | 6,616 | | | | 137 | | | | 85 | | | | — | | | | — | | | | 222 | | | | 6,838 | |
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Total Loans | | $ | 371,718 | | | $ | 2,530 | | | $ | 558 | | | $ | 36 | | | $ | 2,332 | | | $ | 5,456 | | | $ | 377,174 | |
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December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 104,348 | | | $ | 60 | | | $ | 8 | | | $ | — | | | $ | 483 | | | $ | 551 | | | $ | 104,899 | |
Commercial real estate | | | 117,372 | | | | 41 | | | | 34 | | | | — | | | | 1,745 | | | | 1,820 | | | | 119,192 | |
Residential real estate | | | 108,574 | | | | 472 | | | | 430 | | | | 131 | | | | 805 | | | | 1,838 | | | | 110,412 | |
Construction & land development | | | 23,180 | | | | — | | | | 5 | | | | — | | | | 173 | | | | 178 | | | | 23,358 | |
Consumer | | | 6,325 | | | | 132 | | | | 23 | | | | — | | | | — | | | | 155 | | | | 6,480 | |
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Total Loans | | $ | 359,799 | | | $ | 705 | | | $ | 500 | | | $ | 131 | | | $ | 3,206 | | | $ | 4,542 | | | $ | 364,341 | |
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Troubled Debt Restructurings |
All troubled debt restructurings (“TDR’s) are individually evaluated for impairment and a related allowance is recorded, as needed. Loans whose terms have been modified as TDR’s totaled $8.2 million as of September 30, 2013, and $8.7 million as of December 31, 2012, with $823 thousand and $718 thousand of specific reserves allocated to those loans, respectively. At September 30, 2013, $7.5 million of the loans classified as TDR’s were performing in accordance with their modified terms. Of the remaining $736 thousand, all were in nonaccrual of interest status. |
None of the loans that were restructured in 2011 or 2012 have subsequently defaulted in the three or nine month periods ended September 30, 2013 and 2012. Loan modifications that are considered TDR’s completed during the three and nine month periods ended September 30, 2013 and 2012 were as follows: |
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| | For the Three Months Ended September 30, 2013 | | | | | | | | | | | | | | | | | |
(Dollars in thousands) | | Number of | | | Pre- | | | Post- | | | | | | | | | | | | | | | | | |
loans | Modification | Modification | | | | | | | | | | | | | | | | |
restructured | Recorded | Recorded | | | | | | | | | | | | | | | | |
| Investment | Investment | | | | | | | | | | | | | | | | |
Commercial | | | 1 | | | $ | 7 | | | $ | 7 | | | | | | | | | | | | | | | | | |
Residential Real Estate | | | 2 | | | | 188 | | | | 188 | | | | | | | | | | | | | | | | | |
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Total Restructured Loans | | | 3 | | | $ | 195 | | | $ | 195 | | | | | | | | | | | | | | | | | |
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| | For the Nine Months Ended September 30, 2013 | | | | | | | | | | | | | | | | | |
(Dollars in thousands) | | Number of | | | Pre- | | | Post- | | | | | | | | | | | | | | | | | |
loans | Modification | Modification | | | | | | | | | | | | | | | | |
restructured | Recorded | Recorded | | | | | | | | | | | | | | | | |
| Investment | Investment | | | | | | | | | | | | | | | | |
Commercial | | | 3 | | | $ | 83 | | | $ | 83 | | | | | | | | | | | | | | | | | |
Residential Real Estate | | | 2 | | | | 188 | | | | 188 | | | | | | | | | | | | | | | | | |
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Total Restructured Loans | | | 5 | | | $ | 271 | | | $ | 271 | | | | | | | | | | | | | | | | | |
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| | For the Three Months Ended September 30, 2012 | | | | | | | | | | | | | | | | | |
(Dollars in thousands) | | Number of | | | Pre- | | | Post- | | | | | | | | | | | | | | | | | |
loans | Modification | Modification | | | | | | | | | | | | | | | | |
restructured | Recorded | Recorded | | | | | | | | | | | | | | | | |
| Investment | Investment | | | | | | | | | | | | | | | | |
Commercial Real Estate | | | 1 | | | $ | 140 | | | $ | 140 | | | | | | | | | | | | | | | | | |
Residential Real Estate | | | 5 | | | | 333 | | | | 333 | | | | | | | | | | | | | | | | | |
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Total Restructured Loans | | | 6 | | | $ | 473 | | | $ | 473 | | | | | | | | | | | | | | | | | |
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| | For the Nine Months Ended September 30, 2012 | | | | | | | | | | | | | | | | | |
(Dollars in thousands) | | Number of | | | Pre- | | | Post- | | | | | | | | | | | | | | | | | |
loans | Modification | Modification | | | | | | | | | | | | | | | | |
restructured | Recorded | Recorded | | | | | | | | | | | | | | | | |
| Investment | Investment | | | | | | | | | | | | | | | | |
Commercial Real Estate | | | 1 | | | $ | 140 | | | $ | 140 | | | | | | | | | | | | | | | | | |
Residential Real Estate | | | 7 | | | | 488 | | | | 488 | | | | | | | | | | | | | | | | | |
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Total Restructured Loans | | | 8 | | | $ | 628 | | | $ | 628 | | | | | | | | | | | | | | | | | |
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The loans restructured during the three and nine months ended September 30, 2013 and 2012 were modified by changing the monthly payment to interest only. No principal reductions were made. |
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Credit Quality Indicators |
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis includes commercial loans with an outstanding balance greater than $275 thousand and is performed on an annual basis. |
The Company uses the following definitions for risk ratings: |
Pass. Loans classified as pass (Acceptable, Low Acceptable or Pass Watch) may exhibit a wide array of characteristics but at minimum represent an acceptable risk to the Bank. Borrowers in this rating may have leveraged but acceptable balance sheet positions, satisfactory asset quality, and stable to favorable sales and earnings trends, acceptable liquidity and adequate cash flow. Loans are considered fully collectible and require an average amount of administration. While generally adhering to credit policy, these loans may exhibit occasional exceptions that do not result in undue risk to the Bank. Borrowers are generally capable of absorbing setbacks, financial and otherwise, without the threat of failure. |
Special Mention. Loans classified as special mention have material weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment prospects for the loan at some future date. |
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. |
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. |
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Loans that do not meet the criteria for special mention, substandard or doubtful classification, when analyzed individually as part of the above described process are considered to be pass rated loans. As of September 30, 2013 and December 31, 2012, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: |
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(Dollars in thousands) | | Pass | | | Special | | | Substandard | | | Doubtful | | | Not Rated | | | Total | | | | | |
Mention | | | | |
September 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 100,746 | | | $ | 9,850 | | | $ | 5,170 | | | $ | — | | | $ | 424 | | | $ | 116,190 | | | | | |
Commercial real estate | | | 111,168 | | | | 7,553 | | | | 5,879 | | | | — | | | | 1,823 | | | | 126,423 | | | | | |
Residential real estate | | | 243 | | | | — | | | | 48 | | | | — | | | | 112,528 | | | | 112,819 | | | | | |
Construction & land development | | | 11,598 | | | | — | | | | 2,040 | | | | — | | | | 1,266 | | | | 14,904 | | | | | |
Consumer | | | — | | | | — | | | | — | | | | — | | | | 6,838 | | | | 6,838 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 223,755 | | | $ | 17,403 | | | $ | 13,137 | | | $ | — | | | $ | 122,879 | | | $ | 377,174 | | | | | |
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December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 92,123 | | | $ | 5,854 | | | $ | 6,637 | | | $ | — | | | $ | 285 | | | $ | 104,899 | | | | | |
Commercial real estate | | | 102,602 | | | | 5,671 | | | | 8,459 | | | | — | | | | 2,460 | | | | 119,192 | | | | | |
Residential real estate | | | 200 | | | | — | | | | 53 | | | | — | | | | 110,159 | | | | 110,412 | | | | | |
Construction & land development | | | 18,063 | | | | 2,750 | | | | 1,244 | | | | — | | | | 1,301 | | | | 23,358 | | | | | |
Consumer | | | — | | | | — | | | | — | | | | — | | | | 6,480 | | | | 6,480 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 212,988 | | | $ | 14,275 | | | $ | 16,393 | | | $ | — | | | $ | 120,685 | | | $ | 364,341 | | | | | |
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Loans listed as not rated are either less than $275 thousand or are included in groups of homogeneous loans. The following table presents loans that are not rated by class of loans as of September 30, 2013 and December 31, 2012. Non-performing loans include loans past due 90 days and greater and loans on nonaccrual of interest. |
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(Dollars in thousands) | | Performing | | | Non-Performing | | | Total | | | | | | | | | | | | | | | | | |
September 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 424 | | | $ | — | | | $ | 424 | | | | | | | | | | | | | | | | | |
Commercial real estate | | | 1,823 | | | | — | | | | 1,823 | | | | | | | | | | | | | | | | | |
Residential real estate | | | 111,462 | | | | 1,066 | | | | 112,528 | | | | | | | | | | | | | | | | | |
Construction & land development | | | 1,266 | | | | — | | | | 1,266 | | | | | | | | | | | | | | | | | |
Consumer | | | 6,838 | | | | — | | | | 6,838 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 121,813 | | | $ | 1,066 | | | $ | 122,879 | | | | | | | | | | | | | | | | | |
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December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 285 | | | $ | — | | | $ | 285 | | | | | | | | | | | | | | | | | |
Commercial real estate | | | 2,460 | | | | — | | | | 2,460 | | | | | | | | | | | | | | | | | |
Residential real estate | | | 109,276 | | | | 883 | | | | 110,159 | | | | | | | | | | | | | | | | | |
Construction & land development | | | 1,294 | | | | 7 | | | | 1,301 | | | | | | | | | | | | | | | | | |
Consumer | | | 6,480 | | | | — | | | | 6,480 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 119,795 | | | $ | 890 | | | $ | 120,685 | | | | | | | | | | | | | | | | | |
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