Total nonperforming assets (NPAs) were $11.5 million at quarter end, compared to $11.3 million at September 30, 2012, and $15.9 million at December 31, 2011. Troubled debt restructured loans totaled $6.7 million, up from $3.5 million at September 30, 2012, but down from $7.2 million at December 31, 2011, as the Company restructured one larger relationship during the fourth quarter.Classified loans totaled $24.9 million at quarter end, a 23.9% decrease from September 30, 2012 and a 53.1% decrease from a year ago. Classified loans are loans in which the Company anticipates potential problems in obtaining repayment of principal and interest per the contractual terms, but does not necessarily believe that losses will occur. "We achieved a substantial reduction in problem loans during the fourth quarter, as we successfully resolved a number of remaining work-out situations," said Hecker. The following tables summarize nonperforming assets by type and geographic region, and provide trending information over the prior year.
|NPA BY CATEGORY|
|(Dollars in thousands)||12/31/2012||% of total||9/30/2012||% of total||12/31/2011||% of total|
|Commercial loans||$ 4,042||35.2%||$ 3,400||30.2%||$ 3,686||23.0%|
|Commercial real estate||1,716||14.9%||1,021||9.1%||2,786||17.5%|
|Land and land development||5,118||44.6%||6,204||55.0%||8,653||54.3%|
|Residential real estate||502||4.4%||609||5.4%||567||3.6%|
|Total NPA by Categories||$ 11,480||100.0%||$ 11,272||100.0%||$ 15,942||100.0%|