SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
x
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the quarterly period ended March 31, 2011 or

¨
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: 0-26128
 
NorthWest Indiana Bancorp
(Exact name of registrant as specified in its charter)
 
Indiana
 
35-1927981
 
(State or other jurisdiction of incorporation
 
(I.R.S. Employer
 
or organization)
  
Identification Number)
 
 
9204 Columbia Avenue
     
Munster, Indiana
 
46321
 
(Address of principal executive offices)
  
(ZIP code)
 

Registrant's telephone number, including area code:  (219) 836-4400

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 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 ¨   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 (Check one):
Large accelerated filer  ¨    Accelerated filer  ¨    Non-accelerated filer  ¨  Smaller Reporting Company x
(Do not check if a smaller reporting company)

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

There were 2,828,977 shares of the registrant’s Common Stock, without par value, outstanding at March 31, 2011.

 
 

 

NorthWest Indiana Bancorp
Index

       
Page
       
Number
PART I. Financial Information
     
           
Item 1.
 
Unaudited Financial Statements
     
           
   
Consolidated Balance Sheets, March 31, 2011 and December 31, 2010
 
1
 
           
   
Consolidated Statements of Income, Three Months Ended March 31, 2011 and 2010
 
2
 
           
   
Consolidated Statements of Changes in Stockholders' Equity, Three Months Ended March 31, 2011 and 2010
 
3
 
           
   
Consolidated Statements of Cash Flows, Three Months Ended March 31, 2011 and 2010
 
4
 
           
   
Notes to Consolidated Financial Statements
 
5-17
 
           
Item 2.
 
Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
18-26
 
           
Item 3.
 
Quantitative and Qualitative Disclosures about Market Risk
 
27
 
           
Item 4.
 
Controls and Procedures
 
27
 
           
PART II. Other Information
 
28
 
           
SIGNATURES
  
29
 
           
EXHIBITS          
31.1  Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
     
31.2  Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
     
32.1  Section 1350 Certifications
     

 
 

 

NorthWest Indiana Bancorp
Consolidated Balance Sheets
 
   
March 31,
   
December 31,
 
   
2011
   
2010
 
(Dollars in thousands)
 
(unaudited)
       
             
ASSETS
           
             
Cash and non-interest bearing balances in financial institutions
  $ 7,433     $ 7,427  
Interest bearing balances in financial institutions
    10,445       90  
Federal funds sold
    702       3,421  
Total cash and cash equivalents
    18,580       10,938  
                 
Securities available-for-sale
    153,400       142,055  
Securities held-to-maturity
    17,772       18,397  
Loans held-for-sale
    -       422  
Loans receivable
    411,350       418,233  
Less: allowance for loan losses
    (9,692 )     (9,121 )
Net loans receivable
    401,658       409,112  
Federal Home Loan Bank stock
    3,381       3,381  
Accrued interest receivable
    2,498       2,591  
Premises and equipment
    18,945       19,293  
Foreclosed real estate
    2,788       3,298  
Cash value of bank owned life insurance
    12,552       12,452  
Prepaid FDIC insurance premium
    2,066       2,425  
Other assets
    6,236       6,689  
                 
Total assets
  $ 639,876     $ 631,053  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
Deposits:
               
Non-interest bearing
  $ 56,471     $ 50,712  
Interest bearing
    468,717       469,559  
Total
    525,188       520,271  
Repurchase agreements
    24,049       16,074  
Borrowed funds
    26,387       32,544  
Accrued expenses and other liabilities
    6,961       6,075  
                 
Total liabilities
    582,585       574,964  
                 
Stockholders' Equity:
               
Preferred stock, no par or stated value; 10,000,000 shares authorized, none outstanding
    -       -  
Common stock, no par or stated value; 10,000,000 shares authorized;
               
shares issued:  March 31, 2011 - 2,888,902
    361       361  
December 31, 2010 - 2,888,902
               
shares outstanding:  March 31, 2011 - 2,828,977
               
December 31, 2010 - 2,826,796
               
Additional paid in capital
    5,149       5,140  
Accumulated other comprehensive income/(loss)
    (77 )     (492 )
Retained earnings
    53,131       52,398  
Treasury stock, common shares at cost:  March 31, 2011 - 59,925
               
December 31, 2010 - 62,106
    (1,273 )     (1,318 )
                 
Total stockholders' equity
    57,291       56,089  
                 
Total liabilities and stockholders' equity
  $ 639,876     $ 631,053  

See accompanying notes to consolidated financial statements.

 
1

 

NorthWest Indiana Bancorp
Consolidated Statements of Income
(unaudited)

   
Three Months Ended
 
(Dollars in thousands, except per share data)
 
March 31,
 
   
2011
   
2010
 
Interest income:
           
Loans receivable
           
Real estate loans
  $ 4,386     $ 5,156  
Commercial loans
    960       1,032  
Consumer loans.
    13       24  
Total loan interest
    5,359       6,212  
                 
Securities
    1,520       1,530  
Other interest earning assets
    7       7  
                 
Total interest income
    6,886       7,749  
                 
Interest expense:
               
Deposits
    712       1,201  
Repurchase agreements
    28       52  
Borrowed funds
    173       269  
                 
Total interest expense
    913       1,522  
                 
Net interest income
    5,973       6,227  
Provision for loan losses
    1,110       1,235  
                 
Net interest income after provision for loan losses
    4,863       4,992  
                 
Noninterest income:
               
Fees and service charges.
    585       609  
Wealth management operations
    274       281  
Gain on sale of securities, net
    263       289  
Increase in cash value of bank owned life insurance
    101       100  
Gain on sale of loans held-for-sale, net
    81       109  
Gain on foreclosed real estate, net
    59       22  
Other-than-temporary impairment of securities
    -       (19 )
Portion of loss recognized in other comprehensive income
    -       (94 )
Other
    20       4  
                 
Total noninterest income
    1,383       1,301  
                 
Noninterest expense:
               
Compensation and benefits
    2,365       2,409  
Occupancy and equipment
    848       785  
Federal deposit insurance premiums
    373       231  
Data processing
    252       233  
Marketing
    141       125  
Other
    922       892  
                 
Total noninterest expense
    4,901       4,675  
                 
Income before income tax expenses
    1,345       1,618  
Income tax expenses
    173       229  
                 
Net income
  $ 1,172     $ 1,389  
                 
Earnings per common share:
               
Basic
  $ 0.41     $ 0.49  
Diluted
  $ 0.41     $ 0.49  
                 
Dividends declared per common share
  $ 0.15     $ 0.21  

See accompanying notes to consolidated financial statements.

 
2

 

NorthWest Indiana Bancorp
Consolidated Statements of Changes in Stockholders' Equity
(unaudited)

   
Three Months Ended
 
(Dollars in thousands)
 
March 31,
 
   
2011
   
2010
 
             
Balance at beginning of period
  $ 56,089     $ 53,078  
                 
Comprehensive income:
               
Net income
    1,172       1,389  
Net unrealized change on securities available-for-sale, net of reclassifications and tax effects
    416       396  
Amortization of unrecognized gain
    (2 )     (2 )
Comprehensive income
    1,586       1,783  
                 
Stock based compensation expense
    9       10  
                 
Sale of treasury stock
    31       40  
                 
Cash dividends
    (424 )     (592 )
                 
Balance at end of period
  $ 57,291     $ 54,319  

See accompanying notes to consolidated financial statements.

 
3

 

NorthWest Indiana Bancorp
Consolidated Statements of Cash Flows
(unaudited)

   
Three Months Ended
 
(Dollars in thousands)
 
March 31,
 
   
2011
   
2010
 
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net income
  $ 1,172     $ 1,389  
Adjustments to reconcile net income to
               
net cash provided by operating activities:
               
Origination of loans for sale
    (2,788 )     (3,680 )
Sale of loans originated for sale
    3,261       4,477  
Depreciation and amortization, net of accretion
    548       467  
Amortization of mortgage servicing rights
    45       30  
Stock based compensation expense
    9       10  
Gain on sale of securities, net
    (263 )     (289 )
Gain on sale of loans held-for-sale, net
    (81 )     (109 )
Net losses due to other-than-temporary impairment of securities
    -       113  
Gain/(loss) on foreclosed real estate, net
    (59 )     (22 )
Provision for loan losses
    1,110       1,235  
Net change in:
               
Interest receivable
    93       (31 )
Other assets
    539       1,304  
Cash value of bank owned life insurance
    (101 )     (100 )
Accrued expenses and other liabilities
    924       3,560  
Total adjustments
    3,237       6,965  
Net cash - operating activities
    4,409       8,354  
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Proceeds from maturities and pay downs of securities available-for-sale
    8,875       6,034  
Proceeds from sales of securities available-for-sale
    6,384       5,683  
Purchases of securities available-for-sale
    (25,858 )     (25,815 )
Proceeds from maturities and pay downs of securities held-to-maturity
    619       926  
Net change in loans receivable
    6,281       (2,858 )
Purchase of premises and equipment, net
    (42 )     (97 )
Proceeds from sales of foreclosed real estate
    633       337  
Net cash - investing activities
    (3,108 )     (15,790 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Change in deposits
    4,917       27,007  
Proceeds from  FHLB advances
    -       4,000  
Repayment of FHLB advances
    (3,000 )     (8,000 )
Change in other borrowed funds
    4,817       (3,893 )
Proceeds from sale of treasury stock
    31       40  
Dividends paid
    (424 )     (592 )
Net cash - financing activities
    6,341       18,562  
Net change in cash and cash equivalents
    7,642       11,126  
Cash and cash equivalents at beginning of period
    10,938       13,222  
Cash and cash equivalents at end of period
  $ 18,580     $ 24,348  
                 
SUPPLEMENTAL CASH FLOW INFORMATION:
               
Cash paid during the period for:
               
Interest
  $ 982     $ 1,546  
Income taxes
  $ 5     $ 50  
SUPPLEMENTAL NONCASH INFORMATION:
               
Transfers from loans to foreclosed real estate
  $ 120     $ 237  

See accompanying notes to consolidated financial statements.

 
4

 
 
NorthWest Indiana Bancorp
Notes to Consolidated Financial Statements
  
Note 1 - Basis of Presentation
The consolidated financial statements include the accounts of NorthWest Indiana Bancorp (the “Bancorp”), its wholly-owned subsidiary, Peoples Bank SB (the “Bank”), and the Bank’s wholly-owned subsidiaries, Peoples Service Corporation, NWIN, LLC and NWIN Funding, Inc. The Bancorp has no other business activity other than being a holding company for the Bank. The Bancorp’s earnings are dependent upon the earnings of the Bank. The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures required by U.S. generally accepted accounting principles for complete presentation of financial statements. In the opinion of management, the consolidated financial statements contain all adjustments necessary to present fairly the consolidated balance sheets of the Bancorp as of March 31, 2011 and December 31, 2010, and the consolidated statements of income, changes in stockholders’ equity, and cash flows for the three months ended March 31, 2011 and 2010. The income reported for the three month period ended March 31, 2011 is not necessarily indicative of the results to be expected for the full year.

Note 2 - Use of Estimates
Preparing financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period, as well as the disclosures provided. Actual results could differ from those estimates. Estimates associated with the allowance for loan losses, fair values of foreclosed real estate, loan servicing rights, and investment securities and the status of contingencies are particularly susceptible to material change in the near term.

Note 3 - Securities
The fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:

   
(Dollars in thousands)
 
         
Gross
   
Gross
   
Estimated
 
   
Cost
   
Unrealized
   
Unrealized
   
Fair
 
   
Basis
   
Gains
   
Losses
   
Value
 
March 31, 2011
                       
U.S. government sponsored entities
  $ 8,351     $ 1     $ (14 )   $ 8,338  
Collateralized Mortgage Obligations and residential mortgage-backed securities
    102,043       2,292       (205 )     104,130  
Municipal securities
    37,968       1,458       (60 )     39,366  
Collateralized debt obligations
    5,215       -       (3,649 )     1,566  
Total securities available-for-sale
  $ 153,577     $ 3,751     $ (3,928 )   $ 153,400  
                                 
December 31, 2010
                               
U.S. government sponsored entities
  $ 4,172     $ -     $ (3 )   $ 4,169  
Collateralized Mortgage Obligations and residential mortgage-backed securities
    94,930       2,372       (160 )     97,142  
Municipal securities
    38,549       1,027       (211 )     39,365  
Collateralized debt obligations
    5,215       -       (3,836 )     1,379  
Total securities available-for-sale
  $ 142,866     $ 3,399     $ (4,210 )   $ 142,055  

 
5

 

The carrying amount (cost basis), gross unrecognized gains and losses, and fair value of securities held-to-maturity were as follows:

   
(Dollars in thousands)
 
         
Gross
   
Gross
   
Estimated
 
   
Cost
   
Unrecognized
   
Unrecognized
   
Fair
 
   
Basis
   
Gains
   
Losses
   
Value
 
March 31, 2011
                       
Municipal securities
  $ 16,956     $ 723     $ -     $ 17,679  
Residential mortgage-backed securities
    816       22       (3 )     835  
Total securities held-to-maturity
  $ 17,772     $ 745     $ (3 )   $ 18,514  
                                 
December 31, 2010
                               
Municipal securities
  $ 17,573     $ 613     $ -     $ 18,186  
Residential mortgage-backed securities
    824       29       (1 )     852  
Total securities held-to-maturity
  $ 18,397     $ 642     $ (1 )   $ 19,038  

The fair value of debt securities and carrying amount, if different, at March 31, 2011, by contractual maturity, were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

   
(Dollars in thousands)
 
   
Available-for-sale
   
Held-to-maturity
 
   
Estimated
               
Estimated
       
   
Fair
   
Tax-Equivalent
   
Carrying
   
Fair
   
Tax-Equivalent
 
   
Value
   
Yield (%)
   
Amount
   
Value
   
Yield (%)
 
Due in one year or less
  $ 195       7.07     $ -     $ -       -  
Due from one to five years
    9,042       2.77       1,876       1,994       6.34  
Due from five years to ten years
    10,849       5.63       11,369       11,869       6.03  
Due over ten years
    29,184       5.84       3,711       3,816       6.08  
Collateralized Mortgage Obligations and residential mortgage-backed securities
    104,130       3.88       816       835       4.61  
Total
  $ 153,400       4.31     $ 17,772     $ 18,514       6.01  

Sales of available-for-sale securities were as follows:

   
(Dollars in thousands)
 
   
March 31,
   
March 31,
 
   
2011
   
2010
 
             
Proceeds
  $ 6,384     $ 5,683  
Gross gains
    263       289  
Gross losses
    -       -  

The change in net unrealized gain/(loss) on available-for-sale securities included in other comprehensive income is as follows:

   
(Dollars in thousands)
 
   
Unrealized gains
 
Beginning balance, December 31, 2010
  $ (561 )
Current period change
    416  
Ending balance, March 31, 2011
  $ (145 )

Securities with carrying values of $67,357,000 and $24,484,000 were pledged as of March 31, 2011 and December 31, 2010, respectively, as collateral for repurchase agreements and public funds and for other purposes as permitted or required by law. The increase in pledged securities was the result of new pledging requirements for Indiana public funds deposits.

 
6

 

Securities with unrealized losses at March 31, 2011 and December 31, 2010 not recognized in income are as follows:

                
(Dollars in thousands)
             
   
Less than 12 months
   
12 months or longer
    Total  
   
Estimated
         
Estimated
         
Estimated
       
   
Fair
   
Unrealized
   
Fair
   
Unrealized
   
Fair
   
Unrealized
 
   
Value
   
Losses
   
Value
   
Losses
   
Value
   
Losses
 
March 31, 2011
                                   
U.S. government sponsored entities
  $ 4,835     $ (14 )   $ -     $ -     $ 4,835     $ (14 )
Collateralized Mortgage Obligations and residential mortgage-backed securities
    19,980       (208 )     -       -       19,980       (208 )
Municipal securities
    5,238       (57 )     410       (3 )     5,648       (60 )
Collateralized debt obligations
    -       -       1,566       (3,649 )     1,566       (3,649 )
Total temporarily impaired
  $ 30,053     $ (279 )   $ 1,976     $ (3,652 )   $ 32,029     $ (3,931 )
Number of securities
            29               5               34  

                
(Dollars in thousands)
             
   
Less than 12 months
   
12 months or longer
    Total  
   
Estimated
         
Estimated
         
Estimated
       
   
Fair
   
Unrealized
   
Fair
   
Unrealized
   
Fair
   
Unrealized
 
   
Value
   
Losses
   
Value
   
Losses
   
Value
   
Losses
 
December 31, 2010
                                   
U.S. government sponsored entities
  $ 2,513     $ (3 )   $ -     $ -     $ 2,513     $ (3 )
Collateralized Mortgage Obligations and residential mortgage-backed securities
    13,767       (161 )     -       -       13,767       (161 )
Municipal securities
    7,496       (194 )     398       (17 )     7,894       (211 )
Collateralized debt obligations
    -       -       1,379       (3,836 )     1,379       (3,836 )
Total temporarily impaired
  $ 23,776     $ (358 )   $ 1,777     $ (3,853 )   $ 25,553     $ (4,211 )
Number of securities
            27               5               32  

Unrealized losses on securities have not been recognized into income because the securities are of high credit quality or have undisrupted cash flows. Management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and market volatility. The fair values are expected to recover as the securities approach maturity.

Note 4 - Loans Receivable

   
(Dollars in thousands)
 
   
March 31, 2011
   
December 31, 2010
 
Loans secured by real estate:
           
Construction and land development
  $ 34,763     $ 46,371  
Residential, including home equity
    149,330       153,150  
Commercial real estate and other dwelling
    154,753       146,111  
Total loans secured by real estate
    338,846       345,632  
Consumer loans
    623       765  
Commercial business
    63,171       61,837  
Government and other
    9,062       10,380  
Subtotal
    411,702       418,614  
Less:
               
Net deferred loan origination fees
    (251 )     (273 )
Undisbursed loan funds
    (101 )     (108 )
Loans receivable
  $ 411,350     $ 418,233  
 
 
7

 
  
The Bancorp's activity in the allowance for loan losses, by loan segment, is summarized below for the three months ended March 31, 2011:
                
Commercial
                         
               
Real Estate,
                         
               
Construction &
                         
               
Land
                         
   
Residential Real
         
Development,
   
Commercial
                   
   
Estate, Including
   
Consumer
   
and Other
   
Participations
   
Commercial
             
(Dollars in thousands)
 
Home Equity
   
Loans
   
Dwellings
   
Purchased
   
Business Loans
   
Government
   
Total
 
For the three months ending March 31, 2011
                                         
Allowance for loan losses:
                                         
Beginning Balance
  $ 994     $ 30     $ 2,773     $ 4,704     $ 620     $ -       9,121  
Charge-offs
    (138 )     (2 )     (393 )     (40 )     -       -       (573 )
Recoveries
    -       9       -       -       25       -       34  
Provisions
    183       (17 )     617       404       (77 )     -       1,110  
Ending Balance
  $ 1,039     $ 20     $ 2,997     $ 5,068     $ 568     $ -     $ 9,692  

The Bancorp's allowance for loan loss impairment evaluation, by loan segment, at March 31, 2011:

Ending balance: individually
                                         
evaluated for impairment
  $ 1     $ -     $ 1,074     $ 2,886     $ 18     $ -     $ 3,979  
                                                         
Ending balance: collectively
                                                       
evaluated for impairment
  $ 1,038     $ 20     $ 1,923     $ 2,182     $ 550     $ -     $ 5,713  
                                                         
Ending balance: loans acquired
                                                       
with deteriorated credit quality
  $ -     $ -     $ -     $ -     $ -     $ -     $ -  
                                                         
FINANCING RECEIVABLES
                                                       
Ending balance
  $ 149,071     $ 621     $ 161,268     $ 28,248     $ 63,080     $ 9,062     $ 411,350  
                                                         
Ending balance: individually
                                                       
evaluated for impairment
  $ 119     $ -     $ 10,339     $ 14,619     $ 118     $ -     $ 25,195  
                                                         
Ending balance: collectively
                                                       
evaluated for impairment
  $ 148,952     $ 621     $ 150,929     $ 13,629     $ 62,962     $ 9,062     $ 386,155  
                                                         
Ending balance: loans acquired
                                                       
with deteriorated credit quality
  $ -     $ -     $ -     $ -     $ -     $ -     $ -  

The Bancorp's allowance for loan loss impairment evaluation, by loan segment, at December 31, 2010:

Ending balance: individually
                                         
evaluated for impairment
  $ 1     $ -     $ 875     $ 1,897     $ 21     $ -     $ 2,794  
                                                         
Ending balance: collectively
                                                       
evaluated for impairment
  $ 993     $ 30     $ 1,898     $ 2,807     $ 599     $ -     $ 6,327  
                                                         
Ending balance: loans acquired
                                                       
with deteriorated credit quality
  $ -     $ -     $ -     $ -     $ -     $ -     $ -  
                                                         
FINANCING RECEIVABLES
                                                       
Ending balance
  $ 152,881     $ 874     $ 163,616     $ 28,866     $ 61,726     $ 10,270     $ 418,233  
                                                         
Ending balance: individually
                                                       
evaluated for impairment
  $ 64     $ -     $ 10,974     $ 14,493     $ 482     $ -     $ 26,013  
                                                         
Ending balance: collectively
                                                       
evaluated for impairment
  $ 152,817     $ 874     $ 152,642     $ 14,373     $ 61,244     $ 10,270     $ 392,220  
                                                         
Ending balance: loans acquired
                                                       
with deteriorated credit quality
  $ -     $ -     $ -     $ -     $ -     $ -     $ -  

The Bancorp's credit quality indicators by loan segment are summarized below at March 31, 2011 and December 31, 2010:
 
   
  (Dollars in thousands)
 
   
Corporate Credit Exposure - Credit Risk Portfolio By Creditworthiness Category
 
   
Commercial Real Estate, Construction
                   
   
& Land Development, and Other Dwellings
   
Commercial Participations Purchased
   
Commercial Business Loans
   
Government
 
Loan Grades
 
2011
   
2010
   
2011
   
2010
   
2011
   
2010
   
2011
   
2010
 
Modest risk
 
$
30
   
$
31
   
$
-
   
$
-
   
$
4,300
   
$
4,724
   
$
-
   
$
-
 
Acceptable risk
   
80,463
     
63,330
     
1,460
     
1,473
     
33,118
     
30,549
     
9,062
     
10,270
 
Pass/monitor
   
58,784
     
78,758
     
6,245
     
6,482
     
20,704
     
21,131
     
-
     
-
 
Special mention (watch)
   
10,844
     
9,817
     
6,146
     
6,419
     
3,532
     
2,517
     
-
     
-
 
Substandard
   
11,149
     
11,680
     
14,396
     
14,492
     
1,425
     
2,805
     
-
     
-
 
Doubtful
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
 
 
Total
 
$
161,270
   
$
163,616
   
$
28,247
   
$
28,866
   
$
63,079
   
$
61,726
   
$
9,062
   
$
10,270
 
 
    (Dollars in thousands)  
    Consumer Credit Exposure - Credit Risk Profile Based On Payment Activity  
    Residential Real Estate,                  
    Including Home Equity     Consumer Loans  
    2011     2010     2011     2010  
Performing
  $ 146,162     $ 149,892     $ 621     $ 871  
Nonperforming
    2,909       2,989       -       3  
Total
  $ 149,071     $ 152,881     $ 621     $ 874  

 
8

 

The Bancorp’s impaired loans are summarized below:

         
For the three months ended
 
   
As of March 31, 2011
   
March 31, 2011
 
         
Average
   
Interest
 
(Dollars in thousands)
 
Recorded
   
Unpaid Principal
   
Related
   
Recorded
   
Income
 
   
Investment
   
Balance
   
Allowance
   
Investment
   
Recognized
 
With no related allowance recorded:
                             
Residential real estate, including home equity
  $ 64     $ 130     $ -     $ 64     $ -  
Commercial real estate, construction & land development, and other dwellings
    5,827       6,466       -       3,856       229  
Commercial participations purchased
    2,696       8,179       -       2,878       92  
Commercial business loans
    -       -       -       1,370       -  
With an allowance recorded:
                                       
Residential real estate, including home equity
    55       55       1       28       1  
Commercial real estate, construction & land development, and other dwellings
    4,512       4,692       1,074       5,668       139  
Commercial participations purchased
    11,923       11,923       2,886       10,242       236  
Commercial business loans
    118       118       18       135       6  
Total:
                                       
Residential real estate, including home equity
  $ 119     $ 185     $ 1     $ 92     $ 1  
Commercial real estate, construction & land development, and other dwellings
  $ 10,339     $ 11,158     $ 1,074     $ 9,523     $ 368  
Commercial participations purchased
  $ 14,619     $ 20,102     $ 2,886     $ 13,120     $ 328  
Commercial business loans
  $ 118     $ 118     $ 18     $ 1,504     $ 6  

   
As of December 31, 2010
 
       
(Dollars in thousands)
 
Recorded
   
Unpaid principal
   
Related
 
   
investment
   
balance
   
allowance
 
With no related allowance recorded:
                 
Residential real estate, including home equity
  $ 64     $ 64     $ -  
Commercial real estate, construction & land development, and other dwellings
    1,884       1,992       -  
Commercial participations purchased
    3,060       8,123       -  
Commercial business loans
    2,739       2,831       -  
With an allowance recorded:
                       
Residential real estate, including home equity
    -       -       -  
Commercial real estate, construction & land development, and other dwellings
    6,823       6,823       1,057  
Commercial participations purchased
    8,560       8,560       544  
Commercial business loans
    151       151       120  
Total:
                       
Residential real estate, including home equity
  $ 64     $ 64     $ -  
Commercial real estate, construction & land development, and other dwellings
  $ 8,707     $ 8,815     $ 1,057  
Commercial participations purchased
  $ 11,620     $ 16,683     $ 544  
Commercial business loans
  $ 2,890     $ 2,982     $ 120  
 
 
9

 

The Bancorp’s age analysis of past due financing receivables are summarized below:

    
(Dollars in thousands)
                   
                                       
Recorded
 
                                 
Total
   
Investments
 
   
30-59 Days
   
60-89 Days
   
Greater Than
   
Total Past
         
Financing
   
90 Days and
 
   
Past Due
   
Past Due
   
90 Days
   
Due
   
Current
   
Receivables
   
Accruing
 
March 31, 2011
                                         
Residential real estate, including home equity
  $ 4,037     $ 838     $ 2,549     $ 7,424     $ 141,647     $ 149,071     $ 323  
Consumer loans
    -       -       38       38       583       621       2  
Commercial real estate, construction & land development, and other dwellings
    2,250       28       5,111       7,389       153,879       161,268       -  
Commercial participations purchased
    -       -       14,396       14,396       13,852       28,248       -  
Commercial business loans
    463