UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2014

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______ to ______

  

 

Commission file number: 0-50765

 

VILLAGE BANK AND TRUST FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

 

Virginia		16-1694602
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

 

15521 Midlothian Turnpike, Midlothian, Virginia	23113
(Address of principal executive offices)	(Zip code)

 

804-897-3900

(Registrant’s telephone number, including area code)

 

Indicate by check whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No ¨

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x   No ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer ¨	Accelerated Filer ¨
Non-Accelerated Filer ¨  (Do not check if smaller reporting company)	Smaller Reporting Company x

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

 

Indicate the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date.

 

334,294 shares of common stock, $4.00 par value, outstanding as of October 21, 2014

 

  

Village Bank and Trust Financial Corp.

Form 10-Q

 

TABLE OF CONTENTS

 

Part I – Financial Information
Item 1.  Financial Statements
Consolidated Balance Sheets September 30, 2014 (unaudited) and December 31, 2013	3
Consolidated Statements of Operations For the Three and Nine Months Ended September 30, 2014 and 2013 (unaudited)	4
Consolidated Statements of Changes in Comprehensive Income (Loss) For the Three and Nine Months Ended September 30, 2014 and 2013 (unaudited)	5
Consolidated Statements of Stockholders’ Equity For the Nine Months Ended September 30, 2014 and 2013 (unaudited)	6
Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 2014 and 2013 (unaudited)	7
Notes to Consolidated Financial Statements (unaudited)	8
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations	40
Item 3.  Quantitative and Qualitative Disclosures About Market Risk	62
Item 4. Controls and Procedures	62
Part II – Other Information
Item 1.  Legal Proceedings	63
Item 1A. Risk Factors	63
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 3.  Defaults Upon Senior Securities	63
Item 4.  Mine Safety Disclosures	63
Item 5.  Other Information	63
Item 6.  Exhibits	63
Signatures	65

 

 

Part I – Financial Information

 

ITEM 1 – FINANCIAL STATEMENTS

 

Village Bank and Trust Financial Corp. and Subsidiary

Consolidated Balance Sheets

September 30, 2014 (Unaudited) and December 31, 2013

(dollar amounts in thousands, except per share amounts)

 

		September 30,				December 31,
		2014				2013
Assets
Cash and due from banks		$	13,895			$	15,221
Federal funds sold			30,937				24,988
Total cash and cash equivalents			44,832				40,209
Investment securities available for sale			55,515				57,748
Loans held for sale			7,298				8,371
Loans
Outstandings			275,123				286,563
Allowance for loan losses			(5,658	)			(7,239	)
Deferred fees and costs			666				683
			270,131				280,007
Other real estate owned, net of valuation allowance			14,003				16,742
Assets held for sale			13,438				13,359
Premises and equipment, net			13,621				12,409
Bank owned life insurance			6,902				6,765
Accrued interest receivable			1,567				1,486
Other assets			5,698				7,077
		$	433,005			$	444,173
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest bearing demand		$	65,218			$	57,244
Interest bearing			315,446				333,384
Total deposits			380,664				390,628
Federal Home Loan Bank advances			14,000				18,000
Long-term debt - trust preferred securities			8,764				8,764
Other borrowings			1,835				2,713
Accrued interest payable			1,120				1,093
Other liabilities			7,887				4,731
Total liabilities			414,270				425,929
Stockholders' equity
Preferred stock, $4 par value, $1,000 liquidation preference, 1,000,000 shares authorized, 14,738 shares issued and outstanding			59				59
Common stock, $4 par value, 10,000,000 shares authorized; 334,294 shares issued and outstanding at September 30, 2014 333,644 shares issued and outstanding at December 31, 2013			1,337				21,353
Additional paid-in capital			58,124				38,054
Accumulated deficit			(39,829	)			(38,066	)
Common stock warrant			732				732
Discount on preferred stock			-				(50	)
Stock in directors rabbi trust			(878	)			(878	)
Directors deferred fees obligation			878				878
Accumulated other comprehensive loss			(1,688	)			(3,838	)
Total stockholders' equity			18,735				18,244
		$	433,005			$	444,173

 

See accompanying notes to consolidated financial statements.

 

  

Village Bank and Trust Financial Corp. and Subsidiary

Consolidated Statements of Operations

Three and Nine Months Ended September 30, 2014 and 2013

(Unaudited)

(dollar amounts in thousands, except per share amounts)

 

		Three Months Ended								None Months Ended
		September 30,								September 30,
		2014				2013				2014				2013
Interest income
Loans		$	3,814			$	4,459			$	11,579			$	14,224
Investment securities			304				324				958				751
Federal funds sold			19				18				64				71
Total interest income			4,137				4,801				12,601				15,046
Interest expense
Deposits			751				850				2,304				2,843
Borrowed funds			(22	)			167				423				610
Total interest expense			729				1,017				2,727				3,453
Net interest income			3,408				3,784				9,874				11,593
Provision for loan losses			-				-				100				823
Net interest income after provision for loan losses			3,408				3,784				9,774				10,770
Noninterest income
Service charges and fees			589				646				1,673				1,791
Gain on sale of loans			1,290				2,126				3,453				6,454
Gain on sale of assets			-				-				3				598
Gain (loss) on sale of investment securities			(14	)			-				(14	)			217
Rental income			226				214				732				657
Other			99				99				338				396
Total noninterest income			2,190				3,085				6,185				10,113
Noninterest expense
Salaries and benefits			2,659				3,054				8,108				8,980
Commissions			338				580				907				1,612
Occupancy			397				502				1,272				1,589
Equipment			146				166				529				523
Supplies			77				100				243				324
Professional and outside services			615				500				1,896				1,823
Advertising and marketing			81				50				220				192
Expenses related to foreclosed real estate			364				1,301				1,051				3,576
Other operating expenses			787				883				2,434				2,453
Total noninterest expense			5,464				7,136				16,660				21,072
Income (loss) before income tax expense (benefit)			134				(267	)			(701	)			(189	)
Income tax expense (benefit)			-				-				-				-
Net income (loss)			134				(267	)			(701	)			(189	)
Preferred stock dividends and amortization of discount			545				221				1,062				664
Net loss available to common shareholders		$	(411	)		$	(488	)		$	(1,763	)		$	(853	)
Loss per share, basic and diluted (1)		$	(1.23	)		$	(1.84	)		$	(5.28	)		$	(3.21	)

 

See accompanying notes to consolidated financial statements.

 

⁽¹⁾ Earnings per share have been affected for reverse stock split

 

  

Village Bank and Trust Financial Corp. and Subsidiary

Consolidated Statements of Changes in Comprehensive Income (Loss)

Three and Nine Months Ended September 30, 2014 and 2013

(Unaudited)

(dollar amounts in thousands)

 

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2014				2013				2014				2013
Net income (loss)		$	134			$	(267	)		$	(701	)		$	(189	)
Other comprehensive income (loss)
Unrealized holding gains (losses) arising during the period			84				(597	)			3,234				(4,302	)
Tax effect			28				(203	)			1,099				(1,463	)
Net change in unrealized holding gains (losses) on securities available for sale, net of tax			56				(394	)			2,135				(2,839	)
Reclassification adjustment
Reclassification adjustment for (gains) losses  realized in income (loss)			14				-				14				(217	)
Tax effect			5				-				5				(74	)
Reclassification for (gains) losses included in net income (loss), net of tax			9				-				9				(143	)
Minimum pension adjustment			3				3				9				9
Tax effect			1				1				3				3
Minimum pension adjustment, net of tax			2				2				6				6
Total other comprehensive income (loss)			67				(392	)			2,150				(2,976	)
Total comprehensive income (loss)		$	201			$	(659	)		$	1,449			$	(3,165	)

 

See accompanying notes to consolidated financial statements.

 

  

Village Bank and Trust Financial Corp. and Subsidiary

Consolidated Statements of Stockholders' Equity

Nine Months Ended September 30, 2014 and 2013

(Unaudited)

(dollar amounts in thousands)

 

																														Directors				Accumulated
										Additional												Discount on				Stock in				Deferred				Other
		Preferred				Common				Paid-in				Accumulated								Preferred				Directors				Fees				Comprehensive
		Stock				Stock				Capital				Deficit				Warrant				Stock				Rabbi Trust				Obligation				loss				Total
Balance, December 31, 2013		$	59			$	21,353			$	38,054			$	(38,066	)		$	732			$	(50	)		$	(878	)		$	878			$	(3,838	)		$	18,244
Amortization of preferred stock discount			-				-				-				(50	)			-				50				-				-								-
Preferred stock dividend			-				-				-				(1,012	)			-				-				-				-				-				(1,012	)
Reverse stock split			-				(20,019	)			20,019																												-
Issuance of common stock							3				(11	)																											(8	)
Stock based compensation			-				-				62				-				-				-				-				-								62
Minimum pension adjustment			-								-
(net of income taxes of $3)			-				-				-				-				-				-				-				-				6				6
Net loss			-				-								(701	)			-				-								-				-				(701	)
Change in unrealized gain (loss) on investment securities available-for-sale, net of reclassification and tax effect			-				-				-				-				-				-				-				-				2,144				2,144
Balance, September 30, 2014		$	59			$	1,337			$	58,124			$	(39,829	)		$	732			$	-			$	(878	)		$	878			$	(1,688	)		$	18,735
Balance, December 31, 2012		$	59			$	17,007			$	40,705			$	(33,173	)		$	732			$	(199	)		$	-			$	-			$	(166	)		$	24,965
Amortization of preferred stock discount			-												(112	)			-				112				-				-				-				-
Preferred stock dividend			-				-								(552	)			-				-				-				-				-				(552	)
Stock based compensation			-				-				6																												6
Minimum pension adjustment
(net of income taxes of $3)			-				-				-				-				-				-				-				-				6				6
Net loss			-				-				-				(189	)			-				-				-				-				-				(189	)
Change in unrealized gain (loss) on investment securities available-for-sale, net of reclassification and tax effect			-				-				-				-				-				-				-				-				(2,982	)			(2,982	)
Balance, September 30, 2013		$	59			$	17,007			$	40,711			$	(34,026	)		$	732			$	(87	)		$	-			$	-			$	(3,142	)		$	21,254

  

See accompanying notes to consolidated financial statements.

 

  

Village Bank and Trust Financial Corp. and Subsidiary

Consolidated Statements of Cash Flows

NIne Months Ended September 30, 2014 and 2013

(Unaudited)

(dollar amounts in thousands)

 

		2014				2013
Cash Flows from Operating Activities
Net loss		$	(701	)		$	(189	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			482				981
Deferred income taxes			(324	)			(41	)
Valuation allowance deferred income taxes			324				-
Provision for loan losses			100				823
Write-down of other real estate owned			751				1,282
Valuation allowance other real estate owned			(495	)			-
(Gain) Loss on securities sold			14				(217	)
Gain on loans sold			(3,453	)			(6,454	)
Gain on sale of premises and equipment			(3	)			(598	)
(Gain) Loss on sale of other real estate owned			(199	)			326
Stock compensation expense			62				6
Proceeds from sale of mortgage loans			128,465				235,276
Origination of mortgage loans for sale			(123,939	)			(219,160	)
Amortization of premiums and accretion of discounts on securities, net			304				313
Decrease (increase) in interest receivable			(81	)			159
Increase in bank owned life insurance			(137	)			(144	)
Decrease in other assets			205				4,356
Increase in interest payable			27				142
Increase (decrease) in other liabilities			2,142				(1,062	)
Net cash provided by operating activities			3,544				15,799
Cash Flows from Investing Activities
Purchases of available for sale securities			-				(54,106	)
Proceeds from the sale or calls of available for sale securities			5,162				15,534
Net decrease in loans			4,401				44,420
Proceeds from sale of other real estate owned			8,057				4,125
Purchases of premises and equipment			(1,708	)			(520	)
Proceeds from sale of premises and equipment			17				1,681
Net cash provided by investing activities			15,929				11,134
Cash Flows from Financing Activities
Issuance of common stock			(8	)			-
Net decrease in deposits			(9,964	)			(34,727	)
Net decrease in Federal Home Loan Bank Advances			(4,000	)			(10,000	)
Net decrease in other borrowings			(878	)			(1,562	)
Net cash used in financing activities			(14,850	)			(46,289	)
Net increase (decrease) in cash and cash equivalents			4,623				(19,356	)
Cash and cash equivalents, beginning of period			40,209				53,131
Cash and cash equivalents, end of period		$	44,832			$	33,775
Supplemental Disclsoure of Cash Flow Information
Cash payments for interest		$	2,536			$	3,117
Supplemental Schedule of Non Cash Activities
Real estate owned assets acquired in settlement of loans		$	5,375			$	5,181
Dividends on preferred stock accrued		$	1,012			$	552

 

See accompanying notes to consolidated financial statements.

 

 

Village Bank and Trust Financial Corp. and Subsidiary

Notes to Consolidated Financial Statements

Three and Nine Months Ended September 30, 2014 and 2013

(Unaudited)

 

Note 1 - Principles of presentation

 

Village Bank and Trust Financial Corp. (the “Company”) is the holding company of Village Bank (the “Bank”). The consolidated financial statements include the accounts of the Company, the Bank and the Bank’s subsidiary. All material intercompany balances and transactions have been eliminated in consolidation.

 

On August 6, 2014, the Company filed Articles of Amendment to its Articles of Incorporation with the Virginia State Corporation Commission to effect a reverse stock split of its outstanding common stock which became effective on August 8, 2014. As a result of the reverse split, every sixteen shares of the Company’s issued and outstanding common stock were consolidated into one issued and outstanding share of common stock. The computations of basic and diluted earnings per share have been adjusted retroactively to reflect the reverse stock split.

 

In the opinion of management, the accompanying condensed consolidated financial statements of the Company have been prepared on the accrual basis in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, all adjustments that are, in the opinion of management, necessary for a fair presentation have been included. The results of operations for the three and nine month periods ended September 30, 2014 are not necessarily indicative of the results to be expected for the full year ending December 31, 2014. The unaudited interim financial statements should be read in conjunction with the audited financial statements and notes to financial statements that are presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission.

 

The Company has evaluated events and transactions occurring subsequent to the consolidated balance sheet date of September 30, 2014 for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued.

 

Note 2 - Use of estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheets and statements of operations for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses and its related provision, and the estimate of the fair value of assets held for sale.

 

  

Note 3 - Earnings (loss) per common share

 

The following table presents the basic and diluted earnings (loss) per common share computation (in thousands, except per share data):

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2014				2013				2014				2013
Numerator
Net income (loss) - basic and diluted		$	134			$	(267	)		$	(701	)		$	(189	)
Preferred stock dividend and accretion			545				221				1,062				664
Net loss available to common shareholders		$	(411	)		$	(488	)		$	(1,763	)		$	(853	)
Denominator
Weighted average shares outstanding - basic			334				266				334				266
Dilutive effect of common stock options and restricted stock awards			-				-				-				-
Weighted average shares outstanding - diluted			334				266				334				266
Loss per share - basic and diluted		$	(1.23	)		$	(1.84	)		$	(5.28	)		$	(3.21	)

 

Outstanding options and warrants to purchase common stock were considered in the computation of diluted earnings per share for the periods presented. Stock options for 6,830 were not included in computing diluted earnings per share for the three and nine months ended September 30, 2014 because their effects were anti-dilutive. Restricted stock awards for 14,802 were not included in computing diluted earnings per share for the three and nine months ended September 30, 2014 because their effects were anti-dilutive. Stock options for 16,008 and 16,658 were not included in computing diluted earnings per share for the three and nine months ended September 30, 2013, respectively, because their effects were anti-dilutive. Warrants for 31,190 shares of common stock were not included in computing earnings per share in 2014 and 2013 because their effects were also anti-dilutive.

 

  

Note 4 – Investment securities available for sale

 

At September 30, 2014 and December 31, 2013, all of our securities were classified as available-for-sale. The following table presents the composition of our investment portfolio at the dates indicated (dollars in thousands):

 

										Gross				Gross				Estimated
		Par				Amortized				Unrealized				Unrealized				Fair				Average
		Value				Cost				Gains				Losses				Value				Yield
September 30, 2014
US Treasuries
Five to ten years		$	8,000			$	7,837			$	-			$	(255	)		$	7,582				2.01	%
US Government Agencies
One to Five years			8,000				8,176				-				(245	)			7,931				0.44	%
Five to ten years			26,500				28,033				-				(1,350	)			26,683				2.06	%
			34,500				36,209				-				(1,595	)			34,614				1.69	%
Mortgage-backed securities
More than ten years			542				558				2				(2	)			558				2.43	%
Municipals
Five to ten years			6,155				6,621				-				(270	)			6,351				2.85	%
More than ten years			5,280				6,728				-				(318	)			6,410				3.42	%
			11,435				13,349				-				(588	)			12,761				3.14	%
Total investment securities		$	54,477			$	57,953			$	2			$	(2,440	)		$	55,515				2.07	%
December 31, 2013
US Treasuries
Five to ten years		$	8,000			$	7,825			$	-			$	(615	)		$	7,210				2.13	%
US Government Agencies
One to Five years			4,000				4,194				-				(166	)			4,028				0.89	%
Five to ten years			31,625				33,510				-				(3,187	)			30,323				1.82	%
			35,625				37,704				-				(3,353	)			34,351				1.71	%
Mortgage-backed securities
More than ten years			2,782				2,792				10				(50	)			2,752				2.43	%
Municipals
Five to ten years			6,155				6,684				-				(678	)			6,006				2.85	%
More than ten years			6,780				8,428				-				(999	)			7,429				3.34	%
Total			12,935				15,112				-				(1,677	)			13,435				3.12	%
Total investment securities		$	59,342			$	63,433			$	10			$	(5,695	)		$	57,748				2.13	%

 

  

Investment securities available for sale that have an unrealized loss position at September 30, 2014 and December 31, 2013 are detailed below (in thousands):

 

		Securities in a loss								Securities in a loss
		position for less than								position for more than
		12 Months								12 Months								Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Losses				Value				Losses				Value				Losses
September 30, 2014
US Treasuries		$	-			$	-			$	7,582			$	(255	)		$	7,582			$	(255	)
US Government Agencies			-				-				34,614				(1,595	)			34,614				(1,595	)
Municipals			-				-				12,761				(588	)			12,761				(588	)
Mortgage-backed securities			432				(2	)			-				-				432				(2	)
Total		$	432			$	(2	)		$	54,957			$	(2,438	)		$	55,389			$	(2,440	)
December 31, 2013
US Treasuries		$	7,210			$	(615	)		$	-			$	-			$	7,210			$	(615	)
US Government Agencies			34,350				(3,353	)			-				-				34,350				(3,353	)
Municipals			10,864				(1,471	)			2,571				(206	)			13,435				(1,677	)
Mortgage-backed securities			1,861				(50	)			-				-				1,861				(50	)
Total		$	54,285			$	(5,489	)		$	2,571			$	(206	)		$	56,856			$	(5,695	)

 

Management does not believe that any individual unrealized loss as of September 30, 2014 and December 31, 2013 is other than a temporary impairment. These unrealized losses are primarily attributable to changes in interest rates. As of September 30, 2014, management does not have the intent to sell any of the securities classified as available for sale and management believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. Approximately $20 million of these securities are pledged against current and potential fundings.

 

 

Note 5 – Loans and allowance for loan losses

 

The following table presents the composition of our loan portfolio (excluding mortgage loans held for sale) at the dates indicated (dollars in thousands):

 

		September 30, 2014								December 31, 2013
		Amount				%				Amount				%
Construction and land development
Residential		$	4,592				1.67	%		$	2,931				1.02	%
Commercial			25,135				9.14	%			28,179				9.84	%
			29,727				10.81	%			31,110				10.86	%
Commercial real estate
Owner occupied			58,275				21.18	%			73,584				25.68	%
Non-owner occupied			39,805				14.47	%			43,868				15.31	%
Multifamily			11,019				4.01	%			11,560				4.03	%
Farmland			1,343				0.48	%			1,463				0.51	%
			110,442				40.14	%			130,475				45.53	%
Consumer real estate
Home equity lines			20,275				7.37	%			21,246				7.41	%
Secured by 1-4 family residential,
First deed of trust			63,425				23.05	%			66,873				23.34	%
Second deed of trust			8,127				2.95	%			8,675				3.03	%
			91,827				33.37	%			96,794				33.78	%
Commercial and industrial loans
(except those secured by real estate)			22,471				8.17	%			26,254				9.16	%
Consumer and other (1)			20,656				7.51	%			1,930				0.67	%
Total loans			275,123				100.0	%			286,563				100.0	%
Deferred loan cost, net			666								683
Less: allowance for loan losses			(5,658	)							(7,239	)
		$	270,131							$	280,007

 

⁽¹⁾ The Company purchased approximately $19 million in Student loans in the third quarter of 2014

 

The Company assigns risk rating classifications to its loans. These risk ratings are divided into the following groups:

 

·

Risk rated 1 to 4 loans are considered of sufficient quality to preclude an adverse rating. 1-4 assets generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral;

·

Risk rated 5 loans are defined as having potential weaknesses that deserve management’s close attention;

·

Risk rated 6 loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any;

·

Risk rated 7 loans have all the weaknesses inherent in substandard loans, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable; and

·

Loans rated 6 or 7 are considered “Classified” loans for regulatory classification purposes.

 

  

The following tables provide information on the risk rating of loans at the dates indicated (in thousands):

 

		Risk Rated				Risk Rated				Risk Rated				Risk Rated				Total
		1-4				5				6				7				Loans
September 30, 2014
Construction and land development
Residential		$	4,201			$	132			$	259			$	-			$	4,592
Commercial			19,073				3,046				3,016								25,135
			23,274				3,178				3,275				-				29,727
Commercial real estate
Owner occupied			46,223				5,102				6,950				-				58,275
Non-owner occupied			35,847				1,830				2,128				-				39,805
Multifamily			10,280				739								-				11,019
Farmland			1,322								21				-				1,343
			93,672				7,671				9,099				-				110,442
Consumer real estate
Home equity lines			18,040				466				1,769				-				20,275
Secured by 1-4 family residential
First deed of trust			51,309				5,854				6,262				-				63,425
Second deed of trust			6,606				72				1,449				-				8,127
			75,955				6,392				9,480				-				91,827
Commercial and industrial loans
(except those secured by real estate)			18,463				3,094				914				-				22,471
Consumer and other			20,536				76				44				-				20,656
Total loans		$	231,900			$	20,411			$	22,812			$	-			$	275,123
December 31, 2013
Construction and land development
Residential		$	2,715			$	-			$	216			$	-			$	2,931
Commercial			18,265				2,711				7,203				-				28,179
			20,980				2,711				7,419				-				31,110
Commercial real estate
Owner occupied			51,810				13,214				8,560				-				73,584
Non-owner occupied			31,990				3,454				8,424				-				43,868
Multifamily			10,804				756				-				-				11,560
Farmland			1,346				-				117				-				1,463
			95,950				17,424				17,101				-				130,475
Consumer real estate
Home equity lines			17,610				727				2,909				-				21,246
Secured by 1-4 family residential
First deed of trust			49,843				6,646				10,384				-				66,873
Second deed of trust			6,598				212				1,865				-				8,675
			74,051				7,585				15,158				-				96,794
Commercial and industrial loans
(except those secured by real estate)			22,786				1,042				2,426				-				26,254
Consumer and other			1,739				131				60				-				1,930
Total loans		$	215,506			$	28,893			$	42,164			$	-			$	286,563

 

  

The following table presents the aging of the recorded investment in past due loans and leases as of the dates indicated (in thousands):

 

																										Recorded
										Greater																Investment >
		30-59 Days				60-89 Days				Than				Total Past								Total				90 Days and
		Past Due				Past Due				90 Days				Due				Current				Loans				Accruing
September 30, 2014
Construction and land development
Residential		$	-			$	-			$	-			$	-			$	4,592			$	4,592			$	-
Commercial			37				-				-				37				25,098				25,135				-
			37				-				-				37				29,690				29,727				-
Commercial real estate
Owner occupied			913				-				-				913				57,362				58,275				-
Non-owner occupied			-				-				-				-				39,805				39,805				-
Multifamily			-				-				-				-				11,019				11,019				-
Farmland			-				-				-				-				1,343				1,343				-
			913				-				-				913				109,529				110,442				-
Consumer real estate
Home equity lines			32				-				-				32				20,243				20,275				-
Secured by 1-4 family residential
First deed of trust			102				-				-				102				63,323				63,425				-
Second deed of trust			-				56				-				56				8,071				8,127				-
			134				56				-				190				91,637				91,827				-
Commercial and industrial loans
(except those secured by real estate)			9				-				-				9				22,462				22,471				-
Consumer and other			750				411				-				1,161				19,495				20,656				-
Total loans		$	1,843			$	467			$	-			$	2,310			$	272,813			$	275,123			$	-
December 31, 2013
Construction and land development
Residential		$	-			$	-			$	-			$	-			$	2,931			$	2,931			$	-
Commercial			-				116				-				116				28,063				28,179				-
			-				116				-				116				30,994				31,110				-
Commercial real estate
Owner occupied			199				-				-				199				73,385				73,584				-
Non-owner occupied			-				346				-				346				43,522				43,868				-
Multifamily			221				-				-				221				11,339				11,560				-
Farmland			194				-				-				194				1,269				1,463				-
			614				346				-				960				129,515				130,475				-
Consumer real estate
Home equity lines			98				403				-				501				20,745				21,246				-
Secured by 1-4 family residential
First deed of trust			555				362				-				917				65,956				66,873				-
Second deed of trust			-				24				-				24				8,651				8,675				-
			653				789				-				1,442				95,352				96,794				-
Commercial and industrial loans
(except those secured by real estate)			25				122				60				207				26,047				26,254				60
Consumer and other			6				15				-				21				1,909				1,930				-
Total loans		$	1,298			$	1,388			$	60			$	2,746			$	283,817			$	286,563			$	60

 

Loans are considered impaired when, based on current information and events it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Loans evaluated individually for impairment include non-performing loans, such as loans on non-accrual, loans past due by 90 days or more, restructured loans and other loans selected by management. The evaluations are based upon discounted expected cash flows or collateral valuations. If the evaluation shows that a loan is individually impaired, then a specific reserve is established for the amount of impairment. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans are set forth in the following table as of the dates indicated (in thousands):

 

 

		September 30, 2014
						Unpaid
		Recorded				Principal				Related
		Investment				Balance				Allowance
With no related allowance recorded
Construction and land development
Residential		$	259			$	259			$	-
Commercial			3,527				3,527				-
			3,786				3,786				-
Commercial real estate
Owner occupied			3,133				3,133
Non-owner occupied			9,896				9,896				-
Multifamily			2,336				2,336				-
Farmland			21				450				-
			15,386				15,815				-
Consumer real estate
Home equity lines			959				959				-
Secured by 1-4 family residential
First deed of trust			7,085				7,117				-
Second deed of trust			1,060				1,379				-
			9,104				9,455				-
Commercial and industrial loans
(except those secured by real estate)			745				850				-
Consumer and other			17				17				-
			29,038				29,923				-
With an allowance recorded
Construction and land development
Commercial			596				596				26
Commercial real estate
Owner occupied			4,395				4,410				323
Non-Owner occupied			215				215				109
			4,610				4,625				432
Consumer real estate
Secured by 1-4 family residential
First deed of trust			1,870				1,870				341
Second deed of trust			260				260				44
			2,130				2,130				385
Commercial and industrial loans
(except those secured by real estate)			100				100				12
			7,436				7,451				855
Total
Construction and land development
Residential			259				259				-
Commercial			4,123				4,123				26
			4,382				4,382				26
Commercial real estate
Owner occupied			7,528				7,543				323
Non-owner occupied			10,111				10,111				109
Multifamily			2,336				2,336				-
Farmland			21				450				-
			19,996				20,440				432
Consumer real estate
Home equity lines			959				959				-
Secured by 1-4 family residential,
First deed of trust			8,955				8,987				341
Second deed of trust			1,320				1,639				44
			11,234				11,585				385
Commercial and industrial loans
(except those secured by real estate)			845				950				12
Consumer and other			17				17				-
		$	36,474			$	37,374			$	855

 

 

		December 31, 2013
						Unpaid
		Recorded				Principal				Related
		Investment				Balance				Allowance
With no related allowance recorded
Construction and land development
Residential		$	216			$	216			$	-
Commercial			3,452				3,497				-
			3,668				3,713				-
Commercial real estate
Owner occupied			1,919				1,969
Non-owner occupied			11,769				11,928				-
Multifamily			2,373				2,373				-
Farmland			117				450				-
			16,178				16,720				-
Consumer real estate
Home equity lines			1,630				1,685				-
Secured by 1-4 family residential
First deed of trust			8,177				8,319				-
Second deed of trust			1,125				1,249				-
			10,932				11,253				-
Commercial and industrial loans
(except those secured by real estate)			809				983				-
Consumer and other			34				34				-
			31,621				32,703				-
With an allowance recorded
Construction and land development
Commercial			1,753				1,753				220
Commercial real estate
Owner occupied			9,794				9,948				680
Non-Owner occupied			1,297				1,297				371
			11,091				11,245				1,051
Consumer real estate
Secured by 1-4 family residential
First deed of trust			2,184				2,870				484
Second deed of trust			132				132				32
			2,316				3,002				516
Commercial and industrial loans
(except those secured by real estate)			151				151				43
			15,311				16,151				1,830
Total
Construction and land development
Residential			216				216				-
Commercial			5,205				5,250				220
			5,421				5,466				220
Commercial real estate
Owner occupied			11,713				11,917				680
Non-owner occupied			13,066				13,225				371
Multifamily			2,373				2,373				-
Farmland			117				450				-
			27,269				27,965				1,051
Consumer real estate
Home equity lines			1,630				1,685				-
Secured by 1-4 family residential,
First deed of trust			10,361				11,189				484
Second deed of trust			1,257				1,381				32
			13,248				14,255				516
Commercial and industrial loans
(except those secured by real estate)			960				1,134				43
Consumer and other			34				34				-
		$	46,932			$	48,854			$	1,830

 

 

The following is a summary of average recorded investment in impaired loans with and without a valuation allowance and interest income recognized on those loans for the periods indicated (in thousands):

 

		For the Three Months								For the Nine Months
		Ended September 30, 2014								Ended September 30, 2014
		Average				Interest				Average				Interest
		Recorded				Income				Recorded				Income
		Investment				Recognized				Investment				Recognized
With no related allowance recorded
Construction and land development
Residential		$	133			$	-			$	206			$	2
Commercial			3,584				52				3,841				150
			3,717				52				4,047				152
Commercial real estate
Owner occupied			2,654				70				3,161				135
Non-owner occupied			9,557				120				9,994				335
Multifamily			2,340				35				2,353				106
Farmland			21				-				21				-
			14,572				225				15,529				576
Consumer real estate
Home equity lines			950				3				960				19
Secured by 1-4 family residential
First deed of trust			7,259				75				7,175				268
Second deed of trust			1,147				9				1,066				42
			9,356				87				9,201				329
Commercial and industrial loans
(except those secured by real estate)			746				7				751				30
Consumer and other			17				-				19				1
		$	28,408			$	371			$	29,547			$	1,088
With an allowance recorded
Construction and land development
Commercial			598				8				603				23
Commercial real estate
Owner occupied			2,801				62				4,446				154
Non-Owner occupied			1,946				9				217				9
			4,747				71				4,663				163
Consumer real estate
Secured by 1-4 family residential
First deed of trust			1,870				22				1,944				24
Second deed of trust			260				5				264				8
			2,130				27				2,208				32
Commercial and industrial loans
(except those secured by real estate)			110				-				115				-
			7,585				106			$	7,589			$	218
Total
Construction and land development
Residential			133				-				206				2
Commercial			4,182				60				4,444				173
			4,315				60				4,650				175
Commercial real estate
Owner occupied			5,455				132				7,607				289
Non-owner occupied			11,503				129				10,211				344
Multifamily			2,340				35				2,353				106
Farmland			21				-				21				-
			19,319				296				20,192				739
Consumer real estate
Home equity lines			950				3				960				19
Secured by 1-4 family residential,
First deed of trust			9,129				97				9,119				292
Second deed of trust			1,407				14				1,330				50
			11,486				114				11,409				361
Commercial and industrial loans
(except those secured by real estate)			856				7				866				30
Consumer and other			17				-				19				1
		$	35,993			$	477			$	37,136			$	1,306

 

 

		For the Three Months								For the Nine Months
		Ended September 30, 2013								Ended September 30, 2013
		Average				Interest				Average				Interest
		Recorded				Income				Recorded				Income
		Investment				Recognized				Investment				Recognized
With no related allowance recorded
Construction and land development
Commercial		$	5,749				68			$	6,612			$	218
			5,749				68				6,612				218
Commercial real estate
Owner occupied			11,033				177				10,479				419
Non-owner occupied			11,238				137				11,315				412
Multifamily			2,390				36				2,402				114
			24,661				350				24,196				945
Consumer real estate
Home equity lines			1,093				7				1,093				36
Secured by 1-4 family residential
First deed of trust			14,479				128				14,531				478
Second deed of trust			974				12				978				37
			16,546				147				16,602				551
Commercial and industrial loans
(except those secured by real estate)			472				9				430				22
Consumer and other			138				2				142				7
		$	47,566			$	576			$	47,982			$	1,743
With an allowance recorded
Construction and land development
Commercial			1,523				-				1,525				6
Commercial real estate
Non-Owner occupied			1,089				13				1,089				44
Farmland			565				-				569				1
			1,654				13				1,658				45
Consumer real estate
Home equity lines			-				-				-				-
Secured by 1-4 family residential
First deed of trust			237				-				269				-
Second deed of trust			136				2				136				4
			373				2				405				4
Commercial and industrial loans
(except those secured by real estate)			418				4				246				7
			3,968				19				3,834				62
Total
Construction and land development
Commercial			7,272				68				8,137				224
			7,272				68				8,137				224
Commercial real estate
Owner occupied			11,033				177				10,479				419
Non-owner occupied			12,327				150				12,404				456
Multifamily			2,390				36				2,402				114
Farmland			565				-				569				1
			26,315				363				25,854				990
Consumer real estate
Home equity lines			1,093				7				1,093				36
Secured by 1-4 family residential,
First deed of trust			14,716				128				14,800				478
Second deed of trust			1,110				14				1,114				41
			16,919				149				17,007				555
Commercial and industrial loans
(except those secured by real estate)			890				13				676				29
Consumer and other			138				2				142				7
		$	51,534			$	595			$	51,816			$	1,805

 

 

Included in impaired loans are loans classified as troubled debt restructurings (“TDRs”). A modification of a loan’s terms constitutes a TDR if the creditor grants a concession to the borrower for economic or legal reasons related to the borrower’s financial difficulties that it would not otherwise consider. For loans classified as impaired TDRs, the Company further evaluates the loans as performing or nonperforming. If, at the time of restructure, the loan is not considered nonaccrual, it will be classified as performing. TDRs originally classified as nonperforming are able to be reclassified as performing if, subsequent to restructure, they experience six months of payment performance according to the restructured terms. The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment as of the dates indicated (dollars in thousands):

 

														Specific
														Valuation
		Total				Performing				Nonaccrual				Allowance
September 30, 2014
Construction and land development
Residential		$	7			$	-			$	7			$	-
Commercial			3,977				3,833				144				26
			3,984				3,833				151				26
Commercial real estate
Owner occupied			6,356				6,022				334				324
Non-owner occupied			9,024				9,024				-				108
Multifamily			2,336				2,336				-				-
			17,716				17,382				334				432
Consumer real estate
Home equity lines			160				-				160				-
Secured by 1-4 family residential			-
First deeds of trust			7,170				4,995				2,175				341
Second deeds of trust			719				614				105				44
			8,049				5,609				2,440				385
Commercial and industrial loans
(except those secured by real estate)			240				104				136				12
Consumer and other			17				-				17				-
		$	30,006			$	26,928			$	3,078			$	855
Number of loans			112				77				35				25

 

 

														Specific
														Valuation
		Total				Performing				Nonaccrual				Allowance
December 31, 2013
Construction and land development
Residential		$	216			$	216			$	-			$	-
Commercial			4,922				3,393				1,528				211
			5,138				3,609				1,528				211
Commercial real estate
Owner occupied			10,377				9,010				1,367				374
Non-owner occupied			9,973				9,568				404				137
Multifamily			2,373				2,373				-				-
			22,723				20,951				1,771				511
Consumer real estate
Home equity lines			160				-				160				-
Secured by 1-4 family residential
First deeds of trust			7,296				3,230				4,066				383
Second deeds of trust			691				324				367				-
			8,147				3,554				4,593				383
Commercial and industrial loans
(except those secured by real estate)			256				121				135				9
Consumer and other			21				-				21				-
		$	36,285			$	28,235			$	8,048			$	1,114
Number of loans			115				62				53				23

 

The following table provides information about TDRs identified during the indicated periods (dollars in thousands):

 

		Nine Months Ended September 30, 2014												Nine Months Ended September 30, 2013
						Pre-				Post-								Pre-				Post-
						Modification				Modification								Modification				Modification
		Number of				Recorded				Recorded				Number of				Recorded				Recorded
		Loans				Balance				Balance				Loans				Balance				Balance
Construction and land development
Residential			-			$	-			$	-				-			$	-			$	-
Commercial			1				45				45				6				2,991				2,991
			1				45				45				6				2,991				2,991
Commercial real estate
Owner occupied			2				743				743				4				1,087				1,087
Non-owner occupied							-				-				-				-				-
			2				743				743				4				1,087				1,087
Consumer real estate
Home equity lines			-				-				-				-				-				-
Secured by 1-4 family residential
First deed of trust			7				729				729				16				2,266				2,266
Second deed of trust			2				105				105				2				162				162
			9				834				834				18				2,428				2,428
Consumer and other			-				-				-				1				382				382
			12			$	1,622			$	1,622				29			$	6,888			$	6,888

 

 

		Three Months Ended September 30, 2014												Three Months Ended September 30, 2013
						Pre-				Post-								Pre-				Post-
						Modification				Modification								Modification				Modification
		Number of				Recorded				Recorded				Number of				Recorded				Recorded
		Loans				Balance				Balance				Loans				Balance				Balance
Commercial real estate
Owner occupied			-			$	-			$	-				4			$	2,256			$	2,256
			-				-				-				4				2,256				2,256
Consumer real estate
Secured by 1-4 family residential
First deed of trust			3				372				372				5				715				715
Second deed of trust			2				105				105				2				162				162
			5				477				477				7				877				877
Commercial and industrial
(except those secured by real estate)															-				-				-
			5			$	477			$	477				11			$	3,133			$	3,133

 

The following table summarizes defaults on TDRs identified for the three and nine months ended September 30, 2014 (dollars in thousands):

 

		Three Months Ended								Nine Months Ended
		September 30, 2014								September 30, 2014
		Number of				Recorded				Number of				Recorded
		Loans				Balance				Loans				Balance
Cosntruction and land development
Commercial			-			$	-				1			$	45
			-				-				1				45
Commercial real estate
Owner occupied			-				-				1				334
			-				-				1				334
Consumer real estate:
Secured by 1-4 family residential
First deed of trust			1				186				5				541
Second deed of trust			2				105				2				105
			3				291				7				646
Total			3			$	291				9			$	1,025

 

 

Activity in the allowance for loan losses is as follows for the periods indicated (dollars in thousands):

 

		Beginning				Provision for												Ending
		Balance				Loan Losses				Charge-offs				Recoveries				Balance
Three Months Ended September 30, 2014
Construction and land development
Residential		$	141			$	-			$	-			$	-			$	141
Commercial			770				-				-				27				797
			911				-				-				27				938
Commercial real estate
Owner occupied			1,245				-				-				-				1,245
Non-owner occupied			(15	)			-				-				1				(14	)
Multifamily			17				-				-				-				17
Farmland			409				-				-				-				409
			1,656				-				-				1				1,657
Consumer real estate
Home equity lines			225				-				(52	)			12				185
Secured by 1-4 family residential
First deed of trust			1,744				-				(39	)			9				1,714
Second deed of trust			440				-				-				5				445
			2,409				-				(91	)			26				2,344
Commercial and industrial loans
(except those secured by real estate)			678				-				-				13				691
Consumer and other			27				-				(3	)			4				28
		$	5,681			$	-			$	(94	)		$	71			$	5,658

 

		Beginning				Provision for												Ending
		Balance				Loan Losses				Charge-offs				Recoveries				Balance
Three Months Ended September 30, 2013
Construction and land development
Residential		$	596			$	-			$	-			$	-			$	596
Commercial			4,777				-				(175	)			35				4,637
			5,373				-				(175	)			35				5,233
Commercial real estate
Owner occupied			1,126				-				(128	)			-				998
Non-owner occupied			307				-				-				-				307
Multifamily			23				-				-				-				23
Farmland			808				-				(448	)			-				360
			2,264				-				(576	)			-				1,688
Consumer real estate
Home equity lines			415				-				(22	)			9				402
Secured by 1-4 family residential
First deed of trust			504				-				(127	)			1				378
Second deed of trust			14				-				-				-				14
			933				-				(149	)			10				794
Commercial and industrial loans
(except those secured by real estate)			947				-				(115	)			24				856
Consumer and other			93				-				(39	)			3				57
		$	9,610			$	-			$	(1,054	)		$	72			$	8,628

 

 

		Beginning				Provision for												Ending
		Balance				Loan Losses				Charge-offs				Recoveries				Balance
Nine Months Ended September 30, 2014
Construction and land development
Residential		$	135			$	5			$	-			$	1			$	141
Commercial			1,274				(421	)			(100	)			44				797
			1,409				(416	)			(100	)			45				938
Commercial real estate
Owner occupied			1,200				653				(608	)			-				1,245
Non-owner occupied			670				(470	)			(238	)			24				(14	)
Multifamily			19				(2	)			-				-				17
Farmland			337				168				(96	)			-				409
			2,226				349				(942	)			24				1,657
Consumer real estate
Home equity lines			424				223				(476	)			14				185
Secured by 1-4 family residential
First deed of trust			1,992				(65	)			(277	)			64				1,714
Second deed of trust			394				12				(76	)			115				445
			2,810				170				(829	)			193				2,344
Commercial and industrial loans
(except those secured by real estate)			724				45				(168	)			90				691
Consumer and other			70				(48	)			(8	)			14				28
		$	7,239			$	100			$	(2,047	)		$	366			$	5,658

  

		Beginning				Provision for												Ending
		Balance				Loan Losses				Charge-offs				Recoveries				Balance
Nine Months Ended September 30, 2013
Construction and land development
Residential		$	495			$	-			$	-			$	101			$	596
Commercial			4,611				15				(270	)			281				4,637
			5,106				15				(270	)			382				5,233
Commercial real estate
Owner occupied			1,359				-				(404	)			43				998
Non-owner occupied			817				-				(510	)			-				307
Multifamily			23				-				-				-				23
Farmland			-				808				(448	)			-				360
			2,199				808				(1,362	)			43				1,688
Consumer real estate
Home equity lines			658				-				(266	)			10				402
Secured by 1-4 family residential
First deed of trust			1,358				-				(1,002	)			22				378
Second deed of trust			224				-				(215	)			5				14
			2,240				-				(1,483	)			37				794
Commercial and industrial loans
(except those secured by real estate)			1,162				-				(466	)			160				856
Consumer and other			101				-				(52	)			8				57
		$	10,808			$	823			$	(3,633	)		$	630			$	8,628

 

  

		Beginning				Provision for												Ending
		Balance				Loan Losses				Charge-offs				Recoveries				Balance
Year Ended December 31, 2013
Construction and land development
Residential		$	495			$	(462	)		$	-			$	102			$	135
Commercial			4,611				(3,482	)			(279	)			424				1,274
			5,106				(3,944	)			(279	)			526				1,409
Commercial real estate
Owner occupied			1,359				252				(454	)			43				1,200
Non-owner occupied			817				452				(619	)			20				670
Multifamily			23				(4	)			-				-				19
Farmland			-				1,233				(896	)			-				337
			2,199				1,933				(1,969	)			63				2,226
Consumer real estate
Home equity lines			658				23				(266	)			9				424
Secured by 1-4 family residential
First deed of trust			1,358				2,493				(1,953	)			94				1,992
Second deed of trust			224				498				(367	)			39				394
			2,240				3,014				(2,586	)			142				2,810
Commercial and industrial loans
(except those secured by real estate)			1,162				145				(760	)			177				724
Consumer and other			101				25				(65	)			9				70
		$	10,808			$	1,173			$	(5,659	)		$	917			$	7,239

 

 

Loans were evaluated for impairment as follows for the periods indicated (dollars in thousands):

 

		Loans Evaluated for Impairment
		Individually				Collectively				Total
Nine Months Ended September 30, 2014
Construction and land development
Residential		$	546			$	4,046			$	4,592
Commercial			14,264				10,871				25,135
Commercial real estate
Owner occupied			38,797				19,478				58,275
Non-owner occupied			30,929				8,876				39,805
Multifamily			8,305				2,714				11,019
Farmland			768				575				1,343
Consumer real estate
Home equity lines			2,063				18,212				20,275
Secured by 1-4 family residential
First deed of trust			7,075				56,350				63,425
Second deed of trust			514				7,613				8,127
Commercial and industrial loans
(except those secured by real estate)			8,751				13,720				22,471
Consumer and other			-				20,656				20,656
		$	112,012			$	163,111			$	275,123
Year Ended December 31, 2013
Construction and land development
Residential		$	576			$	2,355			$	2,931
Commercial			15,592				12,587				28,179
Commercial real estate
Owner occupied			53,126				20,458				73,584
Non-owner occupied			34,367				9,501				43,868
Multifamily			9,363				2,197				11,560
Farmland			778				685				1,463
Consumer real estate
Home equity lines			1,382				19,864				21,246