Document And Entity Information
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Document And Entity Information
9 Months Ended
Sep. 30, 2013
Nov. 12, 2013
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2013  
Document Fiscal Year Focus 2013  
Document Fiscal Period Focus Q3  
Entity Registrant Name NEW PEOPLES BANKSHARES INC  
Entity Central Index Key 0001163389  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   21,872,293

Consolidated Statements Of Operations
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Consolidated Statements Of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
INTEREST AND DIVIDEND INCOME        
Loans including fees $ 7,134 $ 7,989 $ 21,757 $ 24,784
Federal funds sold 1 1 2 2
Interest-earning deposits with banks 43 36 146 131
Investments 220 212 612 653
Dividends on equity securities (restricted) 30 28 94 83
Total Interest and Dividend Income 7,428 8,266 22,611 25,653
INTEREST EXPENSE        
Demand 20 27 69 81
Savings 45 57 161 177
Time deposits below $100,000 538 707 1,676 2,364
Time deposits above $100,000 381 477 1,184 1,589
FHLB Advances 60 72 186 403
Other borrowings   40   128
Trust Preferred Securities 119 123 349 370
Total Interest Expense 1,163 1,503 3,625 5,112
NET INTEREST INCOME 6,265 6,763 18,986 20,541
PROVISION FOR LOAN LOSSES   967 550 4,093
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 6,265 5,796 18,436 16,448
NONINTEREST INCOME        
Service charges 586 635 1,684 1,834
Fees, commissions and other income 778 554 2,085 1,742
Insurance and investment fees 79 28 253 260
Net realized gains on sale of investment securities   48 99 385
Life insurance investment income 24 90 92 235
Total Noninterest Income 1,467 1,355 4,213 4,456
NONINTEREST EXPENSES        
Salaries and employee benefits 3,334 3,389 9,991 10,496
Occupancy and equipment expense 1,040 1,047 3,148 3,231
Advertising and public relations 76 114 273 325
Data processing and telecommunications 447 434 1,323 1,323
FDIC insurance premiums 386 399 1,141 1,244
Other real estate owned and repossessed vehicles, net 758 1,140 1,390 4,387
Other operating expenses 1,238 1,315 3,853 4,071
Total Noninterest Expenses 7,279 7,838 21,119 25,077
INCOME (LOSS) BEFORE INCOME TAXES 453 (687) 1,530 (4,173)
INCOME TAX EXPENSE 6 776 (9) 2,363
NET INCOME (LOSS) $ 447 $ (1,463) $ 1,539 $ (6,536)
Income (Loss) Per Share        
Basic $ 0.02 $ (0.14) $ 0.07 $ (0.64)
Fully Diluted $ 0.02 $ (0.14) $ 0.07 $ (0.64)
Average Weighted Shares of Common Stock        
Basic 21,871,170 10,507,724 21,870,240 10,177,237
Fully Diluted 21,871,170 10,507,724 21,870,240 10,177,237

Consolidated Statements Of Comprehensive Income (Loss)
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Consolidated Statements Of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Statement of Other Comprehensive Income (Loss) [Abstract]        
NET INCOME (LOSS) $ 447 $ (1,463) $ 1,539 $ (6,536)
Investment Securities Activity        
Unrealized gains (losses) arising during the period (935) 261 (1,791) 475
Tax related to unrealized gains (losses) 317 (89) 609 (162)
Reclassification of realized gains during the period   (48) (99) (385)
Tax related to realized gains   17 33 131
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) (618) 141 (1,248) 59
TOTAL COMPREHENSIVE INCOME (LOSS) $ (171) $ (1,322) $ 291 $ (6,477)

Consolidated Balance Sheets
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Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
ASSETS    
Cash and due from banks $ 21,030 $ 17,517
Interest-bearing deposits with banks 42,535 76,590
Federal funds sold 3 2
Total Cash and Cash Equivalents 63,568 94,109
Investment Securities Available-for-sale 71,194 49,615
Loans receivable 500,974 522,363
Allowance for loan losses (14,207) (16,810)
Net Loans 486,767 505,553
Bank premises and equipment, net 30,200 31,190
Equity securities (restricted) 2,704 2,803
Other real estate owned 14,109 13,869
Accrued interest receivable 2,221 2,374
Life insurance investments 12,121 11,964
Goodwill and other intangibles 17 53
Deferred taxes 5,329 4,686
Other assets 2,587 2,799
Total Assets 690,817 719,015
Demand Deposits [Abstract]    
Noninterest bearing 100,486 98,432
Interest-bearing 69,834 68,665
Savings deposits 100,893 113,280
Time deposits 352,967 372,473
Total Deposits 624,180 652,850
Federal Home Loan Bank advances 5,658 6,558
Accrued interest payable 2,178 1,880
Accrued expenses and other liabilities 2,171 1,365
Trust preferred securities 16,496 16,496
Total Liabilities 650,683 679,149
Commitments and contingencies      
STOCKHOLDERS' EQUITY    
Common stock - $2.00 par value; 50,000,000 shares authorized; 21,872,293 and 21,865,535 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively 43,745 43,731
Common stock warrants 2,050 2,056
Additional paid-in-capital 13,050 13,081
Retained earnings (deficit) (17,870) (19,409)
Accumulated other comprehensive income (loss) (841) 407
Total Stockholders' Equity 40,134 39,866
Total Liabilities and Stockholders' Equity $ 690,817 $ 719,015

Consolidated Balance Sheets (Parenthetical)
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Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2013
Dec. 31, 2012
Consolidated Balance Sheets [Abstract]    
Common stock, par value $ 2.00 $ 2.00
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 21,872,293 21,865,535
Common stock, shares outstanding 21,872,293 21,865,535

Consolidated Statements Of Changes In Stockholders' Equity
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Consolidated Statements Of Changes In Stockholders' Equity (USD $)
In Thousands, except Share data
Common Stock [Member]
Common Stock Warrants [Member]
Additional Paid In Capital [Member]
Retained Earnings (Deficit) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Total
Balance at Dec. 31, 2011 $ 20,020   $ 21,689 $ (13,085) $ 249 $ 28,873
Balance, Shares at Dec. 31, 2011 10,010,000          
Net income (loss)       (6,536)   (6,536)
Conversion of Director Notes plus accrued interest 7,629 663 (2,570)     5,722
Conversion of Director Notes plus accrued interest, shares 3,815,000          
Other comprehensive gain (loss)         59 59
Balance at Sep. 30, 2012 27,649 663 19,119 (19,621) 308 28,118
Balance, Shares at Sep. 30, 2012 13,825,000          
Balance at Dec. 31, 2012 43,731 2,056 13,081 (19,409) 407 39,866
Balance, Shares at Dec. 31, 2012 21,866,000         21,865,535
Net income (loss)       1,539   1,539
Exercise of Common Stock Warrants, Amount 14 (6) 6     14
Exercise of Common Stock Warrants, Shares 6,000          
Stock offering costs     (37)     (37)
Other comprehensive gain (loss)         (1,248) (1,248)
Balance at Sep. 30, 2013 $ 43,745 $ 2,050 $ 13,050 $ (17,870) $ (841) $ 40,134
Balance, Shares at Sep. 30, 2013 21,872,000         21,872,293

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ 1,539 $ (6,536)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation 1,769 1,899
Provision for loan losses 550 4,093
Income (less expenses) on life insurance (157) (539)
Gain on sale of securities available-for-sale (99) (385)
(Gain) loss on sale of premises and equipment 23 (5)
Loss (gain) on sale of foreclosed real estate 356 383
Adjustment of carrying value of foreclosed real estate 149 2,983
Accretion of bond premiums/discounts 692 397
Deferred tax expense   2,401
Amortization of core deposit intangible 36 56
Net change in:    
Interest receivable 153 551
Other assets 212 (465)
Accrued interest payable 298 269
Accrued expenses and other liabilities 806 264
Net Cash Provided by Operating Activities 6,327 5,366
CASH FLOWS FROM INVESTING ACTIVITIES    
Net decrease in loans 13,115 47,066
Purchase of securities available-for-sale (36,894) (33,203)
Proceeds from sale and maturities of securities available-for-sale 12,831 17,155
Sale of Federal Home Loan Bank stock 309 755
Purchase of Federal Reserve Bank stock (210)  
Payments for the purchase of premises and equipment (1,191) (1,065)
Proceeds from sales of premises and equipment 389 22
Proceeds from sales of other real estate owned 4,376 7,231
Net Cash Provided by (Used in) Investing Activities (7,275) 37,961
CASH FLOWS FROM FINANCING ACTIVITIES    
Exercise of common stock warrants 14  
Stock offering costs (37)  
Repayments to Federal Home Loan Bank (900) (11,125)
Net change in:    
Demand deposits 3,223 2,230
Savings deposits (12,387) 790
Time deposits (19,506) (58,118)
Net Cash Used in Financing Activities (29,593) (66,223)
Net decrease in cash and cash equivalents (30,541) (22,896)
Cash and Cash Equivalents, Beginning of Period 94,109 90,553
Cash and Cash Equivalents, End of Period 63,568 67,657
Supplemental Disclosure of Cash Paid During the Period for:    
Interest 3,327 5,115
Taxes      
Supplemental Disclosure of Non Cash Transactions:    
Other real estate acquired in settlement of foreclosed loans 5,366 6,873
Loans made to finance sale of foreclosed real estate 245  
Conversion of Director Notes in other borrowings to common stock   5,450
Conversion of accrued interest payable on Director Notes to common stock   272
Common stock issued as a result of the conversion of Director Notes   $ 5,722

Nature Of Operations
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Nature Of Operations
9 Months Ended
Sep. 30, 2013
Nature Of Operations [Abstract]  
Nature Of Operations

NOTE 1  NATURE OF OPERATIONS:

 

New Peoples Bankshares, Inc. (“The Company”) is a bank holding company whose principal activity is the ownership and management of a community bank.  New Peoples Bank, Inc. (“Bank”) was organized and incorporated under the laws of the Commonwealth of Virginia on December 9, 1997.  The Bank commenced operations on October 28, 1998, after receiving regulatory approval.  As a state chartered member bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions, the Federal Deposit Insurance Corporation and the Federal Reserve Bank.  The Bank provides general banking services to individuals, small and medium size businesses and the professional community of southwestern Virginia, southern West Virginia, and eastern Tennessee.  On June 9, 2003, the Company formed two wholly owned subsidiaries, NPB Financial Services, Inc. and NPB Web Services, Inc.  On July 7, 2004 the Company established NPB Capital Trust I for the purpose of issuing trust preferred securities.  On September 27, 2006, the Company established NPB Capital Trust 2 for the purpose of issuing additional trust preferred securities.  NPB Financial Services, Inc. was a subsidiary of the Company until January 1, 2009 when it became a subsidiary of the Bank.  In June 2012 the name of NPB Financial Services, Inc. was changed to NPB Insurance Services, Inc. which operates solely as an insurance agency.    


Accounting Principles
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Accounting Principles
9 Months Ended
Sep. 30, 2013
Accounting Principles [Abstract]  
Accounting Principles

NOTE 2  ACCOUNTING PRINCIPLES:

 

The financial statements conform to U. S. generally accepted accounting principles and to general industry practices.  In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position at September 30, 2013, and the results of operations for the three and nine month periods ended September 30, 2013 and 2012.  The notes included herein should be read in conjunction with the notes to financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  The results of operations for the three and nine month periods ended September 30, 2013 and 2012 are not necessarily indicative of the results to be expected for the full year.

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions.


Formal Written Agreement
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Formal Written Agreement
9 Months Ended
Sep. 30, 2013
Formal Written Agreement [Abstract]  
Formal Written Agreement

NOTE 3  FORMAL WRITTEN AGREEMENT:

Effective July 29, 2010, the Company and the Bank entered into a written agreement with the Federal Reserve Bank of Richmond (“Reserve Bank”) and the Virginia State Corporation Commission Bureau of Financial Institutions (the “Bureau”) called (the “Written Agreement”).  At September 30, 2013, we believe we have not yet achieved full compliance with the Written Agreement but we have made progress in our compliance efforts under the Written Agreement and all of the written plans required to date, as discussed in the following paragraphs, have been submitted on a timely basis. 

 

Under the terms of the Written Agreement, the Bank has agreed to develop and submit for approval within specified  time periods written plans to: (a) strengthen board oversight of management and the Bank’s operation; (b) if appropriate after review, to strengthen the Bank’s management and board governance; (c) strengthen credit risk management policies; (d) enhance lending and credit administration; (e) enhance the Bank’s management of commercial real estate concentrations; (f) conduct ongoing review and grading of the Bank’s loan portfolio; (g) improve the Bank’s position with respect to loans, relationships, or other assets in excess of $1 million which are now or in the future become past due more than 90 days, which are on the Bank’s problem loan list, or which are adversely classified in any report of examination of the Bank; (h) review and revise, as appropriate, current policy and maintain sound processes for maintaining an adequate allowance for loan and lease losses; (i) enhance management of the Bank’s liquidity position and funds management practices; (j) revise its contingency funding plan; (k)  revise its strategic plan; and (l)  enhance the Bank’s anti-money laundering and related activities. 

In addition, the Bank has agreed that it will: (a) not extend, renew, or restructure any credit that has been criticized by the Reserve Bank or the Bureau absent prior board of directors approval in accordance with the restrictions in the Written Agreement; (b) eliminate all assets or portions of assets classified as “loss” and thereafter charge off all assets classified as “loss” in a federal or state report of examination, unless otherwise approved by the Reserve Bank.

Under the terms of the Written Agreement, both the Company and the Bank have agreed to submit capital plans to maintain sufficient capital at the Company, on a consolidated basis, and the Bank, on a stand-alone basis, and to refrain from declaring or paying dividends without prior regulatory approval. The Company has agreed that it will not take any other form of payment representing a reduction in the Bank’s capital or make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without prior regulatory approval. The Company may not incur, increase or guarantee any debt without prior regulatory approval and has agreed not to purchase or redeem any shares of its stock without prior regulatory approval.

 

Under the terms of the Written Agreement, the Company and the Bank have appointed a committee to monitor compliance with the Written Agreement. The directors of the Company and the Bank have recognized and unanimously agree with the common goal of financial soundness represented by the Written Agreement and have confirmed the intent of the directors and executive management to diligently seek to comply with all requirements of the Written Agreement.


Capital
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Capital
9 Months Ended
Sep. 30, 2013
Capital [Abstract]  
Capital

NOTE 4  CAPITAL:

 

Capital Requirements and Ratios

 

The Company and the Bank are subject to various capital requirements administered by federal banking agencies.  Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.  The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.  Prompt corrective action provisions are not applicable to bank holding companies.

 

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined).  Management believes that, as of September 30, 2013, the Company and the Bank meet all capital adequacy requirements to which they are subject. 

 

As of September 30, 2013, the Bank was well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables.  There are no conditions or events since the notification that management believes have changed the Company’s and Bank’s category. 

 

The Company’s and the Bank’s actual capital amounts and ratios are presented in the table as of September 30, 2013 and December 31, 2012, respectively.

 

 

 

 

 

 

 

 

 

 

 

Actual

Minimum Capital Requirement

Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions

(Dollars are in thousands)

Amount

Ratio

Amount

Ratio

 

Amount

Ratio

September 30, 2013:

Total Capital to Risk Weighted Assets

The Company

$

58,749 
14.32% 

32,822

8% 

$

N/A

N/A

The Bank

 

56,880 
13.85% 
32,845 
8% 

 

41,056 
10% 

Tier 1 Capital Risk Weighted Assets:

The Company

 

51,162 
12.47% 
16,411 
4% 

 

N/A

N/A

The Bank

 

51,636 
12.58% 
16,422 
4% 

 

24,634 
6% 

Tier 1 Capital to Average Assets:

The Company

 

51,162 
7.41% 
27,624 
4% 

 

N/A

N/A

The Bank

 

51,636 
7.47% 
27,641 
4% 

 

34,551 
5% 

 

 

December 31, 2012:

Total Capital to Risk Weighted Assets

The Company

$

57,894 
13.51% 
34,291 
8% 

$

N/A

N/A

The Bank

 

55,315 
12.88% 
34,353 
8% 

 

42,941 
10% 

Tier 1 Capital Risk Weighted Assets:

The Company

 

49,530 
11.56% 
17,146 
4% 

 

N/A

N/A

The Bank

 

49,806 
11.60% 
17,176 
4% 

 

25,765 
6% 

Tier 1 Capital to Average Assets:

The Company

 

49,530 
7.05% 
28,092 
4% 

 

N/A

N/A

The Bank

 

49,806 
7.08% 
28,120 
4% 

 

35,150 
5% 

 


Investment Securities
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Investment Securities
9 Months Ended
Sep. 30, 2013
Investment Securities [Abstract]  
Investment Securities

NOTE 5  INVESTMENT SECURITIES:

 

The amortized cost and estimated fair value of securities (all available-for-sale) are as follows:

 

 

 

 

 

 

 

 

 

 

 

Gross

 

Gross

 

Approximate

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

(Dollars are in thousands)

Cost

 

Gains

 

Losses

 

Value

September 30, 2013

U.S. Government Agencies

$

34,589 

$

262 

$

859 

$

33,992 

Taxable municipals

-

-

-

-

Tax-exempt municipals

-

-

-

-

Mortgage backed securities

37,879 
31 
708 
37,202 

Total Securities AFS

$

72,468 

$

293 

$

1,567 

$

71,194 

 

December 31, 2012

U.S. Government Agencies

$

23,177 

$

473 

$

13 

$

23,637 

Taxable municipals

-

-

-

-

Tax-exempt municipals

-

-

-

-

Mortgage backed securities

25,822 
210 
54 
25,978 

Total Securities AFS

$

48,999 

$

683 

$

67 

$

49,615 

 

The following table details unrealized losses and related fair values in the available-for-sale portfolio.  This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2013 and December 31, 2012.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 Months

 

12 Months or More

 

Total

 

 

(Dollars are in thousands)

 

Fair Value

 

Unrealized

Losses

 

Fair

Value

 

Unrealized

Losses

 

Fair

Value

 

Unrealized

Losses

 

September 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Agencies

$

22,278 

$

845 

$

574 

$

14 

$

22,852 

$

859 

 

Mtg. backed securities

 

31,238 

 

694 

 

736 

 

14 

 

31,974 

 

708 

 

Total Securities AFS

$

53,516 

$

1,539 

$

1,310 

$

28 

$

54,826 

$

1,567 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Agencies

$

2,931 

$

13 

$

-

$

-

$

2,931 

$

13 

 

Mtg. backed securities

 

7,491 

 

54 

 

-

 

-

 

7,491 

 

54 

 

Total Securities AFS

$

10,422 

$

67 

$

-

$

-

$

10,422 

$

67 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30, 2013, the available-for-sale portfolio included seventy one investments for which the fair market value was less than amortized cost.  At December 31, 2012, the available-for-sale portfolio included ten investments for which the fair market value was less than amortized cost.  Management evaluates securities for other than temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation.  Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial conditions and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  No securities had an other than temporary impairment.

 

The amortized cost and fair value of investment securities at September 30, 2013, by contractual maturity, are shown in the following schedule.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

 

 

 

 

 

 

 

Weighted

(Dollars are in thousands)

Amortized

 

Fair

 

Average

Securities Available for Sale

Cost

 

Value

 

Yield

Due in one year or less

$

-

$

-

 

-%

Due after one year through five years

1,618 
1,612 
0.93% 

Due after five years through fifteen years

 

23,729 

 

23,468 

 

1.68% 

Due after fifteen years

 

47,121 

 

46,114 

 

1.60% 

Total

$

72,468 

$

71,194 

 

1.61% 

 

Investment securities with a carrying value of $17.7 million and $18.4 million at September 30, 2013 and December 31, 2012, were pledged to secure public deposits, overnight payment processing and for other purposes required by law.

 

The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank, is required to hold stock in each. These equity securities are restricted from trading and are recorded at a cost of $2.7 million and $2.8 million as of September 30, 2013 and December 31, 2012, respectively.


Loans
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Loans
9 Months Ended
Sep. 30, 2013
Loans [Abstract]  
Loans

NOTE 6  LOANS:

 

Loans receivable outstanding are summarized as follows:

 

 

 

 

 

 

(Dollars are in thousands)

 

September 30, 2013

 

December 31, 2012

Real estate secured:

 

 

 

 

Commercial

$

130,787 

$

149,935 

Construction and land development

 

23,131 

 

24,327 

Residential 1-4 family

 

248,053 

 

240,201 

Multifamily

 

12,128 

 

12,567 

Farmland

 

30,488 

 

33,068 

Total real estate loans

 

444,587 

 

460,098 

Commercial

 

24,688 

 

28,314 

Agriculture

 

4,395 

 

4,328 

Consumer installment loans

 

27,155 

 

29,445 

All other loans

 

149 

 

178 

Total loans

$

500,974 

$

522,363 

 

Loans receivable on nonaccrual status are summarized as follows:

 

 

 

 

 

 

 

 

 

 

 

(Dollars are in thousands)

 

September 30, 2013

 

December 31, 2012

Real estate secured:

 

 

 

 

Commercial

$

17,684 

$

16,308 

Construction and land development

 

1,299 

 

2,412 

Residential 1-4 family

 

4,792 

 

3,403 

Multifamily

 

-

 

442 

Farmland

 

5,783 

 

7,750 

Total real estate loans

 

29,558 

 

30,315 

Commercial

 

1,375 

 

2,762 

Agriculture

 

98 

 

450 

Consumer installment loans

 

63 

 

All other loans

 

-

 

-

Total loans receivable on nonaccrual status

$

31,094 

$

33,536 

 

Total interest income not recognized on nonaccrual loans for nine months ended September 30, 2013 and 2012 was $375 thousand and $1.1 million, respectively.

 

 

The following table presents information concerning the Company’s investment in loans considered impaired as of September 30, 2013 and December 31, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2013

(Dollars are in thousands)

 

 

Average

Recorded

Investment

 

 

Interest

Income

Recognized

 

 

 

Recorded

Investment

 

 

 

 

Unpaid Principal Balance

 

 

 

Related

Allowance

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

Real estate secured:

 

 

 

 

 

 

 

 

 

 

Commercial

$

17,885 

$

456 

$

16,260 

$

17,116 

$

-

Construction and land development

 

2,724 

 

31 

 

1,050 

 

6,035 

 

-

Residential 1-4 family

 

4,706 

 

115 

 

3,128 

 

3,390 

 

-

Multifamily

 

734 

 

12 

 

327 

 

327 

 

-

Farmland

 

4,692 

 

93 

 

5,679 

 

6,290 

 

-

Commercial

 

818 

 

 

314 

 

420 

 

-

Agriculture

 

74 

 

 

60 

 

60 

 

-

Consumer installment loans

 

61 

 

 

26 

 

26 

 

-

All other loans

 

-

 

-

 

-

 

-

 

-

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

Real estate secured:

 

 

 

 

 

 

 

 

 

 

Commercial

 

12,077 

 

305 

 

10,277 

 

10,688 

 

1,847 

Construction and land development

 

477 

 

 

465 

 

494 

 

48 

Residential 1-4 family

 

3,611 

 

141 

 

4,181 

 

4,511 

 

655 

Multifamily

 

634 

 

13 

 

270 

 

270 

 

17 

Farmland

 

3,618 

 

91 

 

2,264 

 

2,402 

 

440 

Commercial

 

1,097 

 

 

1,052 

 

1,120 

 

260 

Agriculture

 

158 

 

 

108 

 

108 

 

94 

Consumer installment loans

 

22 

 

 

11 

 

11 

 

All other loans

 

-

 

-

 

-

 

-

 

-

Total

$

53,388 

$

1,284 

$

45,472 

$

53,268 

$

3,365 

 

 

As of December 31, 2012

(Dollars are in thousands)

 

 

Average

Recorded

Investment

 

 

Interest

Income

Recognized

 

 

 

Recorded

Investment

 

 

Unpaid Principal Balance

 

 

 

Related

Allowance

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

Real estate secured:

 

 

 

 

 

 

 

 

 

 

Commercial

$

26,662 

$

829 

$

20,389 

$

21,434 

$

-

Construction and land development

 

4,759 

 

118 

 

3,759 

 

8,618 

 

-

Residential 1-4 family

 

7,824 

 

227 

 

6,308 

 

6,567 

 

-

Multifamily

 

1,021 

 

44 

 

928 

 

998 

 

-

Farmland

 

7,748 

 

168 

 

4,375 

 

4,810 

 

-

Commercial

 

2,499 

 

18 

 

1,111 

 

1,147 

 

-

Agriculture

 

463 

 

 

109 

 

109 

 

-

Consumer installment loans

 

83 

 

10 

 

98 

 

98 

 

-

All other loans

 

-

 

-

 

-

 

-

 

-

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

Real estate secured:

 

 

 

 

 

 

 

 

 

 

Commercial

 

14,770 

 

347 

 

13,495 

 

14,014 

 

3,196 

Construction and land development

 

1,728 

 

41 

 

793 

 

945 

 

177 

Residential 1-4 family

 

5,473 

 

203 

 

3,830 

 

3,836 

 

577 

Multifamily

 

1,589 

 

68 

 

2,028 

 

2,096 

 

456 

Farmland

 

4,972 

 

(123)

 

5,702 

 

5,714 

 

635 

Commercial

 

1,689 

 

19 

 

1,881 

 

1,885 

 

491 

Agriculture

 

373 

 

 

353 

 

353 

 

308 

Consumer installment loans

 

69 

 

 

27 

 

27 

 

16 

All other loans

 

-

 

-

 

-

 

-

 

-

Total

$

81,722 

$

1,982 

$

65,186 

$

72,651 

$

5,856 

 

 

An age analysis of past due loans receivable was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2013

(Dollars are in thousands)

 

 

 

Loans

30-59

Days

Past

Due

 

 

 

Loans

60-89

Days

Past

Due

 

 

Loans

90 or

More

Days

Past

Due

 

 

 

 

Total

Past

Due

Loans

 

 

 

 

 

 

Current

Loans

 

 

 

 

 

 

Total

Loans

 

Accruing

Loans

90 or

More

Days

Past

Due

Real estate secured:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

7,397 

$

1,014 

$

6,353 

$

14,764 

$

116,023 

$

130,787 

$

-

Construction and  land

  development

 

817 

 

-

 

322 

 

1,139 

 

21,992 

 

23,131 

 

-

Residential 1-4 family

 

4,208 

 

608 

 

1,928 

 

6,744 

 

241,309 

 

248,053 

 

-

Multifamily

 

37 

 

-

 

-

 

37 

 

12,091 

 

12,128 

 

-

Farmland

 

281 

 

147 

 

4,442 

 

4,870 

 

25,618 

 

30,488 

 

-

Total real estate loans

 

12,740 

 

1,769 

 

13,045 

 

27,554 

 

417,033 

 

444,587 

 

-

Commercial

 

349 

 

-

 

1,321 

 

1,670 

 

23,018 

 

24,688 

 

-

Agriculture

 

99 

 

-

 

63 

 

162 

 

4,233 

 

4,395 

 

-

Consumer installment

  Loans

 

290 

 

20 

 

14 

 

324 

 

26,831 

 

27,155 

 

-

All other loans

 

 

 

-

 

16 

 

133 

 

149 

 

-

Total loans

$

13,487 

$

1,796 

$

14,443 

$

29,726 

$

471,248 

$

500,974 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2012

(Dollars are in thousands)

 

 

 

Loans

30-59

Days

Past

Due

 

 

 

Loans

60-89

Days

Past

Due

 

 

Loans

90 or

More

Days

Past

Due

 

 

 

 

Total

Past

Due

Loans

 

 

 

 

 

 

Current

Loans

 

 

 

 

 

 

Total

Loans

 

Accruing

Loans

90 or

More

Days

Past

Due

Real estate secured:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

4,164 

$

998 

$

8,889 

$

14,051 

$

135,884 

$

149,935 

$

-

Construction and  land

  development

 

653 

 

-

 

254 

 

907 

 

23,420 

 

24,327 

 

-

Residential 1-4 family

 

9,031 

 

861 

 

3,027 

 

12,919 

 

227,282