Loans | 9 Months Ended |
Sep. 30, 2013 |
Loans Receivable, Net [Abstract] | ' |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' |
8. Loans |
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Loans receivable consist of the following (in thousands): |
|
| | September 30, | | December 31, | | | | | | | | | | | | | | | | | | | |
| | 2013 | | 2012 | | | | | | | | | | | | | | | | | | | |
Real Estate: | | | | | | | | | | | | | | | | | | | | | | | | | |
Secured by 1-4 family residential | | $ | 191,984 | | $ | 200,826 | | | | | | | | | | | | | | | | | | | |
Secured by multi-family residential | | | 145,704 | | | 122,275 | | | | | | | | | | | | | | | | | | | |
Secured by commercial real estate | | | 675,411 | | | 675,110 | | | | | | | | | | | | | | | | | | | |
Construction | | | 59,567 | | | 37,788 | | | | | | | | | | | | | | | | | | | |
| | | 1,072,666 | | | 1,035,999 | | | | | | | | | | | | | | | | | | | |
Other Loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 386,160 | | | 383,817 | | | | | | | | | | | | | | | | | | | |
Home equity and improvement | | | 105,727 | | | 108,718 | | | | | | | | | | | | | | | | | | | |
Consumer Finance | | | 16,659 | | | 15,936 | | | | | | | | | | | | | | | | | | | |
| | | 508,546 | | | 508,471 | | | | | | | | | | | | | | | | | | | |
Total loans | | | 1,581,212 | | | 1,544,470 | | | | | | | | | | | | | | | | | | | |
Deduct: | | | | | | | | | | | | | | | | | | | | | | | | | |
Undisbursed loan funds | | | -19,189 | | | -18,478 | | | | | | | | | | | | | | | | | | | |
Net deferred loan origination fees and costs | | | -744 | | | -735 | | | | | | | | | | | | | | | | | | | |
Allowance for loan loss | | | -25,964 | | | -26,711 | | | | | | | | | | | | | | | | | | | |
Totals | | $ | 1,535,315 | | $ | 1,498,546 | | | | | | | | | | | | | | | | | | | |
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Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. |
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The following table discloses allowance for loan loss activity for the quarter ended September 30, 2013 and September 30, 2012 by portfolio segment and impairment method ($ in thousands): |
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Quarter Ended September | | 1-4 Family | | Construction | | Multi- Family | | Commercial | | Commercial | | Home Equity | | Consumer | | Total | |
30, 2013 | Residential | Residential | Real Estate | and |
| Real Estate | Real Estate | | Improvement |
Beginning Allowance | | $ | 3,197 | | $ | 83 | | $ | 2,425 | | $ | 13,140 | | $ | 5,474 | | $ | 1,786 | | $ | 165 | | $ | 26,270 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Charge-Offs | | | -78 | | | - | | | - | | | -829 | | | -39 | | | -170 | | | -33 | | | -1,149 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Recoveries | | | 23 | | | - | | | - | | | 248 | | | 68 | | | 9 | | | 19 | | | 367 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Provisions | | | -344 | | | 36 | | | 107 | | | 525 | | | 43 | | | 98 | | | 11 | | | 476 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ending Allowance | | $ | 2,798 | | $ | 119 | | $ | 2,532 | | $ | 13,084 | | $ | 5,546 | | $ | 1,723 | | $ | 162 | | $ | 25,964 | |
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Quarter Ended September | | 1-4 Family | | Construction | | Multi- Family | | Commercial | | Commercial | | Home Equity | | Consumer | | Total | |
30, 2012 | Residential | Residential | Real Estate | and |
| Real Estate | Real Estate | | Improvement |
Beginning Allowance | | $ | 3,104 | | $ | 46 | | $ | 2,610 | | $ | 13,914 | | $ | 5,156 | | $ | 1,435 | | $ | 144 | | $ | 26,409 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Charge-Offs | | | -217 | | | - | | | - | | | -780 | | | -355 | | | -203 | | | -19 | | | -1,574 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Recoveries | | | 26 | | | - | | | 122 | | | 430 | | | 140 | | | 38 | | | 14 | | | 770 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Provisions | | | 83 | | | 17 | | | -261 | | | 225 | | | 162 | | | 471 | | | 8 | | | 705 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ending Allowance | | $ | 2,996 | | $ | 63 | | $ | 2,471 | | $ | 13,789 | | $ | 5,103 | | $ | 1,741 | | $ | 147 | | $ | 26,310 | |
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The following table discloses allowance for loan loss activity for the year-to-date ended September 30, 2013 and September 30, 2012 by portfolio segment and impairment method ($ in thousands): |
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Year-to-date Ended | | 1-4 Family | | Construction | | Multi- Family | | Commercial | | Commercial | | Home Equity | | Consumer | | Total | |
September 30, 2013 | Residential | Residential | Real Estate | and |
| Real Estate | Real Estate | | Improvement |
Beginning Allowance | | $ | 3,506 | | $ | 75 | | $ | 2,197 | | $ | 12,702 | | $ | 6,325 | | $ | 1,759 | | $ | 147 | | $ | 26,711 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Charge-Offs | | | -468 | | | - | | | -6 | | | -1,372 | | | -560 | | | -612 | | | -87 | | | -3,105 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Recoveries | | | 155 | | | - | | | - | | | 516 | | | 201 | | | 70 | | | 67 | | | 1,009 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Provisions | | | -395 | | | 44 | | | 341 | | | 1,238 | | | -420 | | | 506 | | | 35 | | | 1,349 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ending Allowance | | $ | 2,798 | | $ | 119 | | $ | 2,532 | | $ | 13,084 | | $ | 5,546 | | $ | 1,723 | | $ | 162 | | $ | 25,964 | |
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Year-to-date Ended | | 1-4 Family | | Construction | | Multi- Family | | Commercial | | Commercial | | Home Equity | | Consumer | | Total | |
September 30, 2012 | Residential | Residential | Real Estate | and |
| Real Estate | Real Estate | | Improvement |
Beginning Allowance | | $ | 4,095 | | $ | 63 | | $ | 2,850 | | $ | 17,640 | | $ | 6,576 | | $ | 1,856 | | $ | 174 | | $ | 33,254 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Charge-Offs | | | -1,539 | | | - | | | -555 | | | -10,170 | | | -3,507 | | | -668 | | | -74 | | | -16,513 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Recoveries | | | 150 | | | - | | | 122 | | | 574 | | | 295 | | | 77 | | | 45 | | | 1,263 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Provisions | | | 290 | | | - | | | 54 | | | 5,745 | | | 1,739 | | | 476 | | | 2 | | | 8,306 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ending Allowance | | $ | 2,996 | | $ | 63 | | $ | 2,471 | | $ | 13,789 | | $ | 5,103 | | $ | 1,741 | | $ | 147 | | $ | 26,310 | |
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The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2013: |
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(In Thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1-4 Family | | | | | Multi- Family | | | | | | | | | | | | | | | | |
| | Residential | | | | | Residential | | Commercial | | | | | Home Equity | | | | | | | |
| | Real Estate | | Construction | | Real Estate | | Real Estate | | Commercial | | & Improvement | | Consumer | | Total | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 234 | | $ | - | | $ | - | | $ | 1,837 | | $ | 305 | | $ | 44 | | $ | - | | $ | 2,420 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment | | | 2,564 | | | 119 | | | 2,532 | | | 11,247 | | | 5,241 | | | 1,679 | | | 162 | | | 23,544 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired with deteriorated credit quality | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | |
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Total ending allowance balance | | $ | 2,798 | | $ | 119 | | $ | 2,532 | | $ | 13,084 | | $ | 5,546 | | $ | 1,723 | | $ | 162 | | $ | 25,964 | |
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Loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 10,514 | | $ | 261 | | $ | 865 | | $ | 40,960 | | $ | 9,729 | | $ | 2,499 | | $ | 71 | | $ | 64,899 | |
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Loans collectively evaluated for impairment | | | 181,870 | | | 40,108 | | | 144,989 | | | 636,481 | | | 377,591 | | | 103,673 | | | 16,574 | | | 1,501,286 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Loans acquired with deteriorated credit quality | | | 31 | | | - | | | - | | | 231 | | | 29 | | | - | | | - | | | 291 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total ending loans balance | | $ | 192,415 | | $ | 40,369 | | $ | 145,854 | | $ | 677,672 | | $ | 387,349 | | $ | 106,172 | | $ | 16,645 | | $ | 1,566,476 | |
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The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2012: |
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(In Thousands) |
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| | 1-4 Family | | | | | Multi- Family | | | | | | | | | | | | | | | | |
| | Residential | | | | | Residential | | Commercial | | | | | Home Equity | | | | | | | |
| | Real Estate | | | Construction | | Real Estate | | Real Estate | | Commercial | | & Improvement | | Consumer | | Total | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 281 | | $ | - | | $ | - | | $ | 1,070 | | $ | 138 | | $ | 2 | | $ | - | | $ | 1,491 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Collectively evaluated for impairment | | | 3,225 | | | 75 | | | 2,197 | | | 11,632 | | | 6,187 | | | 1,757 | | | 147 | | | 25,220 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired with deteriorated credit quality | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total ending allowance balance | | $ | 3,506 | | $ | 75 | | $ | 2,197 | | $ | 12,702 | | $ | 6,325 | | $ | 1,759 | | $ | 147 | | $ | 26,711 | |
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Loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 11,930 | | $ | 45 | | $ | 1,626 | | $ | 46,053 | | $ | 8,830 | | $ | 2,678 | | $ | 124 | | $ | 71,286 | |
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Loans collectively evaluated for impairment | | | 189,348 | | | 19,251 | | | 120,829 | | | 630,534 | | | 376,007 | | | 106,516 | | | 15,815 | | | 1,458,300 | |
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Loans acquired with deteriorated credit quality | | | 36 | | | - | | | - | | | 436 | | | 32 | | | - | | | - | | | 504 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total ending loans balance | | $ | 201,314 | | $ | 19,296 | | $ | 122,455 | | $ | 677,023 | | $ | 384,869 | | $ | 109,194 | | $ | 15,939 | | $ | 1,530,090 | |
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The following table presents the average balance, interest income recognized and cash basis income recognized on impaired loans by class of loans. (In Thousands) |
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| | Three Months Ended September 30, | | Nine Months Ended September 30, 2013 | | | | | | | |
2013 | | | | | | |
| | Average | | Interest | | Cash Basis | | Average | | Interest | | Cash Basis | | | | | | | |
Balance | Income | Income | Balance | Income | Income | | | | | | |
| Recognized | Recognized | | Recognized | Recognized | | | | | | |
Residential Owner Occupied | | $ | 6,463 | | $ | 88 | | $ | 89 | | $ | 6,705 | | $ | 268 | | $ | 266 | | | | | | | |
Residential Non Owner Occupied | | | 4,261 | | | 42 | | | 43 | | | 4,465 | | | 116 | | | 117 | | | | | | | |
Total Residential Real Estate | | | 10,724 | | | 130 | | | 132 | | | 11,170 | | | 384 | | | 383 | | | | | | | |
Construction | | | 261 | | | 4 | | | 5 | | | 142 | | | 6 | | | 6 | | | | | | | |
Multi-Family | | | 1,078 | | | 9 | | | 9 | | | 1,261 | | | 20 | | | 21 | | | | | | | |
CRE Owner Occupied | | | 14,339 | | | 121 | | | 127 | | | 14,520 | | | 304 | | | 302 | | | | | | | |
CRE Non Owner Occupied | | | 23,254 | | | 237 | | | 264 | | | 23,786 | | | 675 | | | 687 | | | | | | | |
Agriculture Land | | | 674 | | | 4 | | | 2 | | | 800 | | | 21 | | | 13 | | | | | | | |
Other CRE | | | 3,226 | | | 14 | | | 14 | | | 4,297 | | | 28 | | | 24 | | | | | | | |
Total Commercial Real Estate | | | 41,493 | | | 376 | | | 407 | | | 43,403 | | | 1,028 | | | 1,026 | | | | | | | |
Commercial Working Capital | | | 3,058 | | | 13 | | | 14 | | | 2,273 | | | 33 | | | 37 | | | | | | | |
Commercial Other | | | 5,918 | | | 14 | | | 15 | | | 6,449 | | | 64 | | | 58 | | | | | | | |
Total Commercial | | | 8,976 | | | 27 | | | 29 | | | 8,722 | | | 97 | | | 95 | | | | | | | |
Consumer | | | 76 | | | 1 | | | 2 | | | 90 | | | 5 | | | 5 | | | | | | | |
Home Equity and Home Improvement | | | 2,596 | | | 29 | | | 29 | | | 2,684 | | | 95 | | | 91 | | | | | | | |
Total Impaired Loans | | $ | 65,204 | | $ | 576 | | $ | 613 | | $ | 67,472 | | $ | 1,635 | | $ | 1,627 | | | | | | | |
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The following table presents the average balance, interest income recognized and cash basis income recognized on impaired loans by class of loans: (In Thousands) |
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| | Three Months Ended September 30, | | Nine Months Ended September 30, 2012 | | | | | | | |
2012 | | | | | | |
| | Average | | Interest | | Cash Basis | | Average | | Interest | | Cash Basis | | | | | | | |
Balance | Income | Income | Balance | Income | Income | | | | | | |
| Recognized | Recognized | | Recognized | Recognized | | | | | | |
Residential Owner Occupied | | $ | 1,912 | | | 15 | | $ | 14 | | $ | 1,921 | | $ | 45 | | $ | 42 | | | | | | | |
Residential Non Owner Occupied | | | 6,141 | | | 54 | | | 58 | | | 5,397 | | | 126 | | | 129 | | | | | | | |
Total Residential Real Estate | | | 8,053 | | | 69 | | | 72 | | | 7,318 | | | 171 | | | 171 | | | | | | | |
Construction | | | - | | | - | | | - | | | - | | | - | | | - | | | | | | | |
Multi-Family | | | 811 | | | 10 | | | 10 | | | 627 | | | 11 | | | 11 | | | | | | | |
CRE Owner Occupied | | | 12,414 | | | 53 | | | 44 | | | 11,019 | | | 92 | | | 88 | | | | | | | |
CRE Non Owner Occupied | | | 14,881 | | | 104 | | | 161 | | | 15,231 | | | 284 | | | 287 | | | | | | | |
Agriculture Land | | | 773 | | | 6 | | | 1 | | | 1,107 | | | 20 | | | 15 | | | | | | | |
Other CRE | | | 5,987 | | | 1 | | | 1 | | | 7,015 | | | 4 | | | 4 | | | | | | | |
Total Commercial Real Estate | | | 34,055 | | | 164 | | | 207 | | | 34,372 | | | 400 | | | 394 | | | | | | | |
Commercial Working Capital | | | 2,048 | | | 9 | | | 11 | | | 2,005 | | | 13 | | | 15 | | | | | | | |
Commercial Other | | | 4,188 | | | 25 | | | 26 | | | 4,538 | | | 40 | | | 42 | | | | | | | |
Total Commercial | | | 6,236 | | | 34 | | | 37 | | | 6,543 | | | 53 | | | 57 | | | | | | | |
Consumer | | | - | | | - | | | - | | | - | | | - | | | - | | | | | | | |
Home Equity and Home Improvement | | | 36 | | | - | | | - | | | 37 | | | 2 | | | 2 | | | | | | | |
Total Impaired Loans | | $ | 49,191 | | $ | 277 | | $ | 326 | | $ | 48,897 | | $ | 637 | | $ | 635 | | | | | | | |
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The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2013: (In Thousands) |
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| | Unpaid | | Recorded | | Allowance | | | | | | | | | | | | | | | | |
Principal | Investment | for Loan | | | | | | | | | | | | | | | |
Balance | | Losses | | | | | | | | | | | | | | | |
| | Allocated | | | | | | | | | | | | | | | |
With no allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Owner Occupied | | $ | 4,902 | | $ | 4,862 | | $ | - | | | | | | | | | | | | | | | | |
Residential Non Owner Occupied | | | 3,539 | | | 2,806 | | | - | | | | | | | | | | | | | | | | |
Total Residential Real Estate | | | 8,441 | | | 7,668 | | | - | | | | | | | | | | | | | | | | |
Construction | | | 300 | | | 261 | | | - | | | | | | | | | | | | | | | | |
Multi-Family Residential Real Estate | | | 1,014 | | | 865 | | | - | | | | | | | | | | | | | | | | |
CRE Owner Occupied | | | 10,313 | | | 8,552 | | | - | | | | | | | | | | | | | | | | |
CRE Non Owner Occupied | | | 5,364 | | | 4,577 | | | - | | | | | | | | | | | | | | | | |
Agriculture Land | | | 689 | | | 504 | | | - | | | | | | | | | | | | | | | | |
Other CRE | | | 4,948 | | | 3,063 | | | - | | | | | | | | | | | | | | | | |
Total Commercial Real Estate | | | 21,314 | | | 16,696 | | | - | | | | | | | | | | | | | | | | |
Commercial Working Capital | | | 3,835 | | | 3,837 | | | - | | | | | | | | | | | | | | | | |
Commercial Other | | | 4,846 | | | 4,797 | | | - | | | | | | | | | | | | | | | | |
Total Commercial | | | 8,681 | | | 8,634 | | | - | | | | | | | | | | | | | | | | |
Consumer | | | 71 | | | 71 | | | - | | | | | | | | | | | | | | | | |
Home Equity and Home Improvement | | | 2,135 | | | 2,058 | | | - | | | | | | | | | | | | | | | | |
Total loans with no allowance recorded | | $ | 41,956 | | $ | 36,253 | | $ | - | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Owner Occupied | | $ | 1,534 | | $ | 1,539 | | $ | 211 | | | | | | | | | | | | | | | | |
Residential Non Owner Occupied | | | 1,305 | | | 1,307 | | | 23 | | | | | | | | | | | | | | | | |
Total Residential Real Estate | | | 2,839 | | | 2,846 | | | 234 | | | | | | | | | | | | | | | | |
Construction | | | - | | | - | | | - | | | | | | | | | | | | | | | | |
Multi-Family Residential Real Estate | | | - | | | - | | | - | | | | | | | | | | | | | | | | |
CRE Owner Occupied | | | 7,651 | | | 6,500 | | | 281 | | | | | | | | | | | | | | | | |
CRE Non Owner Occupied | | | 17,905 | | | 17,451 | | | 1,546 | | | | | | | | | | | | | | | | |
Agriculture Land | | | 251 | | | 258 | | | 8 | | | | | | | | | | | | | | | | |
Other CRE | | | 83 | | | 55 | | | 2 | | | | | | | | | | | | | | | | |
Total Commercial Real Estate | | | 25,890 | | | 24,264 | | | 1,837 | | | | | | | | | | | | | | | | |
Commercial Working Capital | | | - | | | - | | | - | | | | | | | | | | | | | | | | |
Commercial Other | | | 1,094 | | | 1,095 | | | 305 | | | | | | | | | | | | | | | | |
Total Commercial | | | 1,094 | | | 1,095 | | | 305 | | | | | | | | | | | | | | | | |
Consumer | | | - | | | - | | | - | | | | | | | | | | | | | | | | |
Home Equity and Home Improvement | | | 439 | | | 441 | | | 44 | | | | | | | | | | | | | | | | |
Total loans with an allowance recorded | | $ | 30,262 | | $ | 28,646 | | $ | 2,420 | | | | | | | | | | | | | | | | |
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*Unpaid principal balance is not reduced for partial charge-offs. |
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Impaired loans have been recognized in conformity with FASB ASC Topic 310. |
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The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2012: (In Thousands) |
|
| | Unpaid | | Recorded | | Allowance | | | | | | | | | | | | | | | | |
Principal | Investment | for Loan | | | | | | | | | | | | | | | |
Balance | | Losses | | | | | | | | | | | | | | | |
| | Allocated | | | | | | | | | | | | | | | |
With no allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Owner Occupied | | $ | 5,427 | | $ | 5,357 | | $ | - | | | | | | | | | | | | | | | | |
Residential Non Owner Occupied | | | 4,211 | | | 3,420 | | | - | | | | | | | | | | | | | | | | |
Total Residential Real Estate | | | 9,638 | | | 8,777 | | | - | | | | | | | | | | | | | | | | |
Construction | | | 300 | | | 45 | | | - | | | | | | | | | | | | | | | | |
Multi-Family Residential Real Estate | | | 1,775 | | | 1,626 | | | - | | | | | | | | | | | | | | | | |
CRE Owner Occupied | | | 12,314 | | | 9,782 | | | - | | | | | | | | | | | | | | | | |
CRE Non Owner Occupied | | | 11,054 | | | 9,105 | | | - | | | | | | | | | | | | | | | | |
Agriculture Land | | | 1,176 | | | 993 | | | - | | | | | | | | | | | | | | | | |
Other CRE | | | 8,741 | | | 5,527 | | | - | | | | | | | | | | | | | | | | |
Total Commercial Real Estate | | | 33,285 | | | 25,407 | | | - | | | | | | | | | | | | | | | | |
Commercial Working Capital | | | 1,565 | | | 1,565 | | | - | | | | | | | | | | | | | | | | |
Commercial Other | | | 6,367 | | | 5,338 | | | - | | | | | | | | | | | | | | | | |
Total Commercial | | | 7,932 | | | 6,903 | | | - | | | | | | | | | | | | | | | | |
Consumer | | | 125 | | | 124 | | | - | | | | | | | | | | | | | | | | |
Home Equity and Home Improvement | | | 2,777 | | | 2,642 | | | - | | | | | | | | | | | | | | | | |
Total loans with no allowance recorded | | $ | 55,832 | | $ | 45,524 | | $ | - | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Owner Occupied | | $ | 1,697 | | $ | 1,701 | | $ | 257 | | | | | | | | | | | | | | | | |
Residential Non Owner Occupied | | | 1,449 | | | 1,452 | | | 24 | | | | | | | | | | | | | | | | |
Total Residential Real Estate | | | 3,146 | | | 3,153 | | | 281 | | | | | | | | | | | | | | | | |
Construction | | | - | | | - | | | - | | | | | | | | | | | | | | | | |
Multi-Family Residential Real Estate | | | - | | | - | | | - | | | | | | | | | | | | | | | | |
CRE Owner Occupied | | | 5,735 | | | 5,118 | | | 245 | | | | | | | | | | | | | | | | |
CRE Non Owner Occupied | | | 15,301 | | | 15,357 | | | 820 | | | | | | | | | | | | | | | | |
Agriculture Land | | | 111 | | | 112 | | | 3 | | | | | | | | | | | | | | | | |
Other CRE | | | 88 | | | 59 | | | 2 | | | | | | | | | | | | | | | | |
Total Commercial Real Estate | | | 21,235 | | | 20,646 | | | 1,070 | | | | | | | | | | | | | | | | |
Commercial Working Capital | | | 300 | | | 301 | | | 10 | | | | | | | | | | | | | | | | |
Commercial Other | | | 1,623 | | | 1,626 | | | 128 | | | | | | | | | | | | | | | | |
Total Commercial | | | 1,923 | | | 1,927 | | | 138 | | | | | | | | | | | | | | | | |
Consumer | | | - | | | - | | | - | | | | | | | | | | | | | | | | |
Home Equity and Home Improvement | | | 36 | | | 36 | | | 2 | | | | | | | | | | | | | | | | |
Total loans with an allowance recorded | | $ | 26,340 | | $ | 25,762 | | $ | 1,491 | | | | | | | | | | | | | | | | |
|
*Unpaid principal balance is not reduced for partial charge-offs. |
|
The following table presents the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned on the dates indicated: |
|
| | September 30, | | December 31, | | | | | | | | | | | | | | | | | | | |
2013 | 2012 | | | | | | | | | | | | | | | | | | |
| | (in thousands) | | | | | | | | | | | | | | | | | | | |
Non-accrual loans | | $ | 30,512 | | $ | 32,570 | | | | | | | | | | | | | | | | | | | |
Loans over 90 days past due and still accruing | | | - | | | - | | | | | | | | | | | | | | | | | | | |
Total non-performing loans | | | 30,512 | | | 32,570 | | | | | | | | | | | | | | | | | | | |
Real estate and other assets held for sale | | | 5,518 | | | 3,805 | | | | | | | | | | | | | | | | | | | |
Total non-performing assets | | $ | 36,030 | | $ | 36,375 | | | | | | | | | | | | | | | | | | | |
|
The following table presents the aging of the recorded investment in past due and non accrual loans as of September 30, 2013 by class of loans: (In Thousands) |
|
| | Current | | 30-59 | | 60-89 | | 90+ | | Total | | Total | | | | | | | |
days | days | days | Past | Non | | | | | | |
| | | Due | Accrual | | | | | | |
Residential Owner Occupied | | $ | 122,038 | | $ | 593 | | $ | 203 | | $ | 956 | | $ | 1,752 | | $ | 1,117 | | | | | | | |
Residential Non Owner Occupied | | | 67,361 | | | 500 | | | 135 | | | 629 | | | 1,264 | | | 2,040 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total residential real estate | | | 189,399 | | | 1,093 | | | 338 | | | 1,585 | | | 3,016 | | | 3,157 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | | 40,369 | | | - | | | - | | | - | | | - | | | - | | | | | | | |
Multi-Family | | | 145,854 | | | - | | | - | | | - | | | - | | | 613 | | | | | | | |
CRE Owner Occupied | | | 318,420 | | | 489 | | | 631 | | | 1,728 | | | 2,848 | | | 8,416 | | | | | | | |
CRE Non Owner Occupied | | | 227,935 | | | 1,348 | | | 224 | | | 1,286 | | | 2,858 | | | 5,621 | | | | | | | |
Agriculture Land | | | 78,134 | | | 23 | | | 134 | | | 76 | | | 233 | | | 682 | | | | | | | |
Other Commercial Real Estate | | | 45,403 | | | 337 | | | - | | | 1,504 | | | 1,841 | | | 3,094 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Commercial Real Estate | | | 669,892 | | | 2,197 | | | 989 | | | 4,594 | | | 7,780 | | | 17,813 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial Working Capital | | | 156,532 | | | 349 | | | - | | | 433 | | | 782 | | | 3,188 | | | | | | | |
Commercial Other | | | 225,129 | | | 989 | | | 1,032 | | | 2,885 | | | 4,906 | | | 5,567 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Commercial | | | 381,661 | | | 1,338 | | | 1,032 | | | 3,318 | | | 5,688 | | | 8,755 | | | | | | | |
Consumer | | | 16,602 | | | 31 | | | 12 | | | - | | | 43 | | | - | | | | | | | |
Home Equity / Home Improvement | | | 104,430 | | | 1,416 | | | 149 | | | 177 | | | 1,742 | | | 178 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 1,548,207 | | $ | 6,075 | | $ | 2,520 | | $ | 9,674 | | $ | 18,269 | | $ | 30,516 | | | | | | | |
|
The following table presents the aging of the recorded investment in past due and non accrual loans as of December 31, 2012 by class of loans: (In Thousands) |
|
| | Current | | 30-59 | | | 60-89 | | | 90+ days | | | Total | | | Total Non | | | | | | | |
days | days | Past | Accrual | | | | | | |
| | Due | | | | | | | |
Residential Owner Occupied | | $ | 125,362 | | $ | 1,238 | | $ | 604 | | $ | 945 | | $ | 2,787 | | $ | 1,125 | | | | | | | |
Residential Non Owner Occupied | | | 71,777 | | | 413 | | | 126 | | | 849 | | | 1,388 | | | 2,473 | | | | | | | |
Total residential real estate | | | 197,139 | | | 1,651 | | | 730 | | | 1,794 | | | 4,175 | | | 3,598 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | | 19,296 | | | - | | | - | | | - | | | - | | | - | | | | | | | |
Multi-Family | | | 122,455 | | | - | | | - | | | - | | | - | | | 1,178 | | | | | | | |
CRE Owner Occupied | | | 321,071 | | | 1,248 | | | 382 | | | 1,622 | | | 3,252 | | | 9,652 | | | | | | | |
CRE Non Owner Occupied | | | 235,592 | | | 134 | | | 1,321 | | | 2,480 | | | 3,935 | | | 6,674 | | | | | | | |
Agriculture Land | | | 72,092 | | | 84 | | | 31 | | | - | | | 115 | | | 813 | | | | | | | |
Other Commercial Real Estate | | | 36,510 | | | 21 | | | 875 | | | 3,560 | | | 4,456 | | | 4,761 | | | | | | | |
Total Commercial Real Estate | | | 665,265 | | | 1,487 | | | 2,609 | | | 7,662 | | | 11,758 | | | 21,900 | | | | | | | |
Commercial Working Capital | | | 161,110 | | | - | | | 155 | | | 1,204 | | | 1,359 | | | 1,528 | | | | | | | |
Commercial Other | | | 218,477 | | | 584 | | | 1,201 | | | 2,138 | | | 3,923 | | | 4,136 | | | | | | | |
Total Commercial | | | 379,587 | | | 584 | | | 1,356 | | | 3,342 | | | 5,282 | | | 5,664 | | | | | | | |
Consumer | | | 15,702 | | | 229 | | | 8 | | | - | | | 237 | | | - | | | | | | | |
Home Equity / Home Improvement | | | 106,458 | | | 2,294 | | | 225 | | | 217 | | | 2,736 | | | 217 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 1,505,902 | | $ | 6,245 | | $ | 4,928 | | $ | 13,015 | | $ | 24,188 | | $ | 32,557 | | | | | | | |
|
Troubled Debt Restructurings |
|
As of September 30, 2013 and December 31, 2012, the Company has a recorded investment in troubled debt restructurings (“TDRs”) of $33.6 million and $35.5 million, respectively. The Company has allocated $1.7 million of specific reserves to those loans as of September 30, 2013 and $1.1 million as of December 31, 2012, and has committed to lend additional amounts totaling up to $675,000 and $41,000 at September 30, 2013 and December 31, 2012, respectively. |
|
The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Each TDR is uniquely designed to meet the specific needs of the borrower. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral or an additional guarantor is often requested when granting a concession. Commercial mortgage loans modified in a TDR often involve temporary interest-only payments, re-amortization of remaining debt in order to lower payments, and sometimes reducing the interest rate lower than the current market rate. Residential mortgage loans modified in a TDR are comprised of loans where monthly payments are lowered, either through interest rate reductions or principal only payments for a period of time, to accommodate the borrowers’ financial needs, interest is capitalized into principal, or the term and amortization are extended. Home equity modifications are made infrequently and usually involve providing an interest rate that is lower than the borrower would be able to obtain due to credit issues. All retail loans where the borrower is in bankruptcy are classified as TDRs regardless of whether or not a concession is made. |
|
Of the loans modified in a TDR, $5.5 million are on non-accrual status and partial charge-offs have in some cases been taken against the outstanding balance. Loans modified as a TDR may have the financial effect of increasing the allowance associated with the loan. If the loan is determined to be collateral dependent, the estimated fair value of the collateral, less any selling costs is used to determine if there is a need for a specific allowance or charge-off. If the loan is determined to be cash flow dependent, the allowance is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate. |
|
The following table presents loans by class modified as TDRs that occurred during the three and nine month period ending September 30, 2013 and September 30, 2012: |
|
| | Loans Modified as a TDR for the Three | | Loans Modified as a TDR for the Nine | | | | | | | | | | | | | | | |
Months Ended September 30, 2013 | Months Ended September 30, 2013 | | | | | | | | | | | | | | |
($ in thousands) | ($ in thousands) | | | | | | | | | | | | | | |
Troubled Debt Restructurings | | Number of Loans | | | Recorded | | Number of Loans | | | Recorded | | | | | | | | | | | | | | | |
Investment (as of | Investment (as of | | | | | | | | | | | | | | |
period end) | period end) | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Owner Occupied | | 0 | | $ | - | | 8 | | $ | 746 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Non Owner Occupied | | 5 | | | 206 | | 6 | | | 393 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CRE Owner Occupied | | 1 | | | 47 | | 5 | | | 802 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CRE Non Owner Occupied | | 0 | | | - | | 1 | | | 1,361 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Agriculture Land | | 0 | | | - | | 1 | | | 214 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Other CRE | | 0 | | | - | | 1 | | | 31 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial / Industrial | | 5 | | | 941 | | 6 | | | 988 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Home Equity / Improvement | | 4 | | | 66 | | 13 | | | 536 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | 0 | | | - | | 2 | | | 13 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 15 | | $ | 1,260 | | 43 | | $ | 5,084 | | | | | | | | | | | | | | | |
|
The loans described above decreased the ALLL by $15,000 in the three month period ending September 30, 2013 and increased the ALLL by $359,000 in the nine month period ending September 30, 2013. |
|
| | | Loans Modified as a TDR for the Three | | | Loans Modified as a TDR for the Nine | | | | | | | | | | | | | |
Months Ended September 30, 2012 | Months Ended September 30, 2012 | | | | | | | | | | | | |
($ in thousands) | ($ in thousands) | | | | | | | | | | | | |
Troubled Debt Restructurings | | | Number of Loans | | Recorded | | | Number of Loans | | | Recorded | | | | | | | | | | | | | |
Investment (as of | Investment (as of | | | | | | | | | | | | |
period end) | period end) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Owner Occupied | | | 2 | | $ | 221 | | | 7 | | $ | 778 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Non Owner Occupied | | | 1 | | | 34 | | | 2 | | | 116 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CRE Owner Occupied | | | 3 | | | 565 | | | 5 | | | 1,461 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CRE Non Owner Occupied | | | 1 | | | 217 | | | 1 | | | 217 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Agriculture Land | | | 1 | | | 127 | | | 2 | | | 439 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Other CRE | | | 0 | | | - | | | 1 | | | 61 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial / Industrial | | | 2 | | | 34 | | | 2 | | | 34 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Home Equity / Improvement | | | 0 | | | - | | | 0 | | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 0 | | | - | | | 0 | | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 10 | | $ | 1,198 | | | 20 | | $ | 3,106 | | | | | | | | | | | | | |
|
The loans described above decreased the ALLL by $17,000 in the three month period ending September 30, 2012 and decreased the ALLL by $21,000 in the nine month period ending September 30, 2012. |
|
The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the period ending September 30, 2013 and September 30, 2012: |
|
| | Three Months Ended | | Nine Months Ended | | | | | | | | | | | | | |
September 30, 2013 | September 30, 2013 | | | | | | | | | | | | |
($ in thousands) | ($ in thousands) | | | | | | | | | | | | |
Troubled Debt Restructurings That Subsequently Defaulted | | Number of Loans | | Recorded | | | Number of Loans | | Recorded | | | | | | | | | | | | | |
Investment (as of | Investment (as of | | | | | | | | | | | | |
period end) | period end) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Owner Occupied | | | 4 | | $ | 339 | | | 5 | | $ | 432 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Non Owner Occupied | | | 1 | | | 78 | | | 1 | | | 78 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CRE Owner Occupied | | | 0 | | | - | | | 0 | | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CRE Non Owner Occupied | | | 0 | | | - | | | 1 | | | 212 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Agriculture Land | | | 0 | | | - | | | 0 | | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Other CRE | | | 0 | | | - | | | 0 | | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial / Industrial | | | 2 | | | 178 | | | 2 | | | 178 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Home Equity / Improvement | | | 2 | | | 38 | | | 2 | | | 38 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 0 | | | - | | | 0 | | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 9 | | $ | 633 | | | 11 | | $ | 938 | | | | | | | | | | | | | |
|
The TDRs that subsequently defaulted described above did not have an impact on the allowance for loan losses for the three month period ended September 30, 2013, and decreased the allowance for loan losses by $11,000 for the nine month period ended September 30, 2013. |
|
| | Three Months Ended September 30, | | Nine Months Ended September 30, 2012 | | | | | | | | | | | | | | | |
2012 | ($ in thousands) | | | | | | | | | | | | | | |
($ in thousands) | | | | | | | | | | | | | | | |
Troubled Debt Restructurings That Subsequently Defaulted | | Number of Loans | | | Recorded | | Number of Loans | | | Recorded | | | | | | | | | | | | | | | |
Investment (as of | Investment (as of | | | | | | | | | | | | | | |
period end) | period end) | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Owner Occupied | | 0 | | $ | - | | 0 | | $ | - | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Non Owner Occupied | | 1 | | | 24 | | 1 | | | 24 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CRE Owner Occupied | | 0 | | | - | | 0 | | | - | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CRE Non Owner Occupied | | 2 | | | 351 | | 2 | | | 351 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Agriculture Land | | 0 | | | - | | 0 | | | - | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Other CRE | | 0 | | | - | | 0 | | | - | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial / Industrial | | 1 | | | 771 | | 2 | | | 1,351 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Home Equity / Improvement | | 0 | | | - | | 0 | | | - | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | 0 | | | - | | 0 | | | - | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 4 | | $ | 1,146 | | 5 | | $ | 1,726 | | | | | | | | | | | | | | | |
|
The TDRs that subsequently defaulted described above did not have an impact on the allowance for loan losses for the three or the nine month periods ended September 30, 2012. |
|
The terms of certain other loans were modified during the period ending September 30, 2013 that did not meet the definition of a TDR. The modification of these loans involved a modification of the terms of a loan to borrowers who were not experiencing financial difficulties. A total of 48 loans were modified under this definition during the three month period ended September 30, 2013 and a total of 123 loans were modified under this definition during the nine month period ended September 30, 2013. |
|
In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed on the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. |
|
Credit Quality Indicators |
|
Loans are categorized 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. Loans are analyzed individually by classifying the loans as to credit risk. This analysis includes all non-homogenous loans, such as commercial and commercial real estate loans and certain homogenous mortgage, home equity and consumer loans. This analysis is performed on a quarterly basis. First Defiance uses the following definitions for risk ratings: |
|
Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position 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. |
|
Not Graded. Loans classified as not graded are generally smaller balance residential real estate, home equity and consumer installment loans which are originated primarily by using an automated underwriting system. These loans are monitored based on their delinquency status and are evaluated individually only if they are seriously delinquent. |
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Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of September 30, 2013, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (In Thousands) |
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Category | | Pass | | Special | | Substandard | | Doubtful | | Not | | Total | | | | | | | |
Mention | Graded | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Owner Occupied | | $ | 4,135 | | $ | 21 | | $ | 2,867 | | $ | - | | $ | 116,765 | | $ | 123,788 | | | | | | | |
Residential Non Owner Occupied | | | 53,120 | | | 3,233 | | | 6,030 | | | - | | | 6,244 | | | 68,627 | | | | | | | |
Total residential real estate | | | 57,255 | | | 3,254 | | | 8,897 | | | - | | | 123,009 | | | 192,415 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | | 30,865 | | | - | | | 261 | | | - | | | 9,243 | | | 40,369 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Multi Family | | | 142,044 | | | 654 | | | 2,177 | | | - | | | 979 | | | 145,854 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CRE Owner Occupied | | | 291,586 | | | 14,988 | | | 12,808 | | | - | | | 1,886 | | | 321,268 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
CRE Non Owner Occupied | | | 201,459 | | | 12,571 | | | 16,642 | | | - | | | 121 | | | 230,793 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Agriculture Land | | | 76,373 | | | 770 | | | 1,224 | | | - | | | - | | | 78,367 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Other CRE | | | 40,935 | | | 1,694 | | | 3,856 | | | - | | | 759 | | | 47,244 | | | | | | | |
Total Commercial Real Estate | | | 610,353 | | | 30,023 | | | 34,530 | | | - | | | 2,766 | | | 677,672 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial Working Capital | | | 148,492 | | | 4,389 | | | 4,431 | | | - | | | - | | | 157,312 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial Other | | | 215,749 | | | 6,863 | | | 7,425 | | | - | | | - | | | 230,037 | | | | | | | |
Total Commercial | | | 364,241 | | | 11,252 | | | 11,856 | | | - | | | - | | | 387,349 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | - | | | - | | | 19 | | | - | | | 16,626 | | | 16,645 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Home Equity/Improvement | | | - | | | - | | | 857 | | | 9 | | | 105,306 | | | 106,172 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,204,758 | | $ | 45,183 | | $ | 58,597 | | $ | 9 | | $ | 257,929 | | $ | 1,566,476 | | | | | | | |
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As of December 31, 2012, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (In Thousands) |
|
Category | | Pass | | Special | | Substandard | | Doubtful | | Not | | Total | | | | | | | |
Mention | Graded | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Owner Occupied | | $ | 4,221 | | $ | 75 | | $ | 3,617 | | $ | 234 | | $ | 120,002 | | $ | 128,149 | | | | | | | |
Residential Non Owner Occupied | | | 55,771 | | | 2,453 | | | 8,248 | | | - | | | 6,693 | | | 73,165 | | | | | | | |
Total residential real estate | | | 59,992 | | | 2,528 | | | 11,865 | | | 234 | | | 126,695 | | | 201,314 | | | | | | | |
Construction | | | 11,360 | | | - | | | 45 | | | - | | | 7,891 | | | 19,296 | | | | | | | |
Multi Family | | | 118,121 | | | 910 | | | 2,404 | | | - | | | 1,020 | | | 122,455 | | | | | | | |
CRE Owner Occupied | | | 292,765 | | | 10,440 | | | 18,740 | | | - | | | 2,378 | | | 324,323 | | | | | | | |
CRE Non Owner Occupied | | | 207,745 | | | 9,077 | | | 22,615 | | | - | | | 90 | | | 239,527 | | | | | | | |
Agriculture Land | | | 69,924 | | | 769 | | | 1,514 | | | - | | | - | | | 72,207 | | | | | | | |
Other CRE | | | 31,875 | | | 891 | | | 7,222 | | | - | | | 978 | | | 40,966 | | | | | | | |
Total Commercial Real Estate | | | 602,309 | | | 21,177 | | | 50,091 | | | - | | | 3,446 | | | 677,023 | | | | | | | |
Commercial Working Capital | | | 156,433 | | | 3,587 | | | 2,449 | | | - | | | - | | | 162,469 | | | | | | | |
Commercial Other | | | 208,783 | | | 5,204 | | | 8,413 | | | - | | | - | | | 222,400 | | | | | | | |
Total Commercial | | | 365,216 | | | 8,791 | | | 10,862 | | | - | | | - | | | 384,869 | | | | | | | |
Consumer | | | - | | | - | | | 70 | | | - | | | 15,869 | | | 15,939 | | | | | | | |
Home Equity/Improvement | | | - | | | - | | | 668 | | | 64 | | | 108,462 | | | 109,194 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,156,998 | | $ | 33,406 | | $ | 76,005 | | $ | 298 | | $ | 263,383 | | $ | 1,530,090 | | | | | | | |
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Beginning with the first quarter of 2013 allowance analysis, management decided to return to using a twelve quarter look-back period, from using an eight quarter look-back period that has been used since December 31, 2010, for calculating the historical loss ratio. Management is not certain that the relatively low levels of charge-offs incurred in recent quarters are sustainable given the low levels of economic growth in its markets and believes the longer look-back period better captures loan portfolio risks at this time. |
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