Allowance for Loan and Lease Losses (Tables)

6 Months Ended

Jun. 30, 2014

Loans and Leases Receivable, Allowance [Abstract]

Activity in the allowance for loan and lease losses for the three and six months ended June 30, 2014 and 2013 is summarized as follows:



($ in thousands)	Three Months Ended June 30,					Six Months Ended June 30,
	2014		2013			2014		2013
Balance, beginning of period	$	1,126	$	1,074		$	1,116	$	1,063
Charge-offs	—		(7		)	—		(7		)
Recoveries	24		21			34		32
Provision for loan and lease losses	150		—			150		—
Balance, end of period	$	1,300	$	1,088		$	1,300	$	1,088

Rollforward of the allowance for loan and lease losses by portfolio segment

The tables below provide a rollforward, by portfolio segment, of the allowance for loan and lease losses for the three and six months ended June 30, 2014 and 2013, respectively.



Rollforward of Allowance for Loan and Lease Losses by Portfolio Segment
Three Months Ended June 30, 2014
($ in thousands)	Commercial Real Estate Secured		Residential Real Estate Secured		Commercial and Industrial			Consumer		Total
Balance at March 31, 2014	$	662	$	332	$	132		$	—	$	1,126
Charge-offs	—		—		—			—		—
Recoveries	—		14		10			—		24
Provision for loan and lease losses	200		7		(57		)	—		150
Balance at June 30, 2014	$	862	$	353	$	85		$	—	$	1,300



Rollforward of Allowance for Loan and Lease Losses by Portfolio Segment
Six Months Ended June 30, 2014
($ in thousands)	Commercial Real Estate Secured		Residential Real Estate Secured		Commercial and Industrial			Consumer		Total
Balance at December 31, 2013	$	655	$	312	$	149		$	—	$	1,116
Charge-offs	—		—		—			—		—
Recoveries	—		23		11			—		34
Provision for loan and lease losses	207		18		(75		)	—		150
Balance at June 30, 2014	$	862	$	353	$	85		$	—	$	1,300



Rollforward of Allowance for Loan and Lease Losses by Portfolio Segment
Three Months Ended June 30, 2013
($ in thousands)	Commercial Real Estate Secured			Residential Real Estate Secured		Commercial and Industrial		Consumer			Total
Balance at March 31, 2013	$	760		$	227	$	76	$	11		$	1,074
Charge-offs	(7		)	—		—		—			(7		)
Recoveries	—			19		2		—			21
Provision for loan and lease losses	(79		)	62		27		(10		)	—
Balance at June 30, 2013	$	674		$	308	$	105	$	1		$	1,088



Rollforward of Allowance for Loan and Lease Losses by Portfolio Segment
Six Months Ended June 30, 2013
($ in thousands)	Commercial Real Estate Secured			Residential Real Estate Secured		Commercial and Industrial		Consumer		Total
Balance at December 31, 2012	$	784		$	222	$	57	$	—	$	1,063
Charge-offs	(7		)	—		—		—		(7		)
Recoveries	—			28		4		—		32
Provision for loan and lease losses	(103		)	58		44		1		—
Balance at June 30, 2013	$	674		$	308	$	105	$	1	$	1,088

Ending balances in loans and allowance for loan and lease losses by portfolio segment



Ending Balances in Loans and Allowance for Loan and Lease Losses by Portfolio Segment
June 30, 2014
($ in thousands)	Commercial Real Estate Secured		Residential Real Estate Secured		Commercial and Industrial		Consumer		Total
Loans
Individually evaluated for impairment	$	—	$	—	$	161	$	—	$	161
Collectively evaluated for impairment	37,291		32,517		13,404		50		83,262
Total	$	37,291	$	32,517	$	13,565	$	50	$	83,423
Allowance for loan losses
Individually evaluated for impairment	$	—	$	—	$	16	$	—	$	16
Collectively evaluated for impairment	862		353		69		—		1,284
Total	$	862	$	353	$	85	$	—	$	1,300



Ending Balances in Loans and Allowance for Loan and Lease Losses by Portfolio Segment
December 31, 2013
($ in thousands)	Commercial Real Estate Secured		Residential Real Estate Secured		Commercial and Industrial		Consumer		Total
Loans
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment	38,924		26,230		14,036		50		79,240
Total	$	38,924	$	26,230	$	14,036	$	50	$	79,240
Allowance for loan losses
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment	655		312		149		—		1,116
Total	$	655	$	312	$	149	$	—	$	1,116

Reconciliation of loans between portfolio segment and class

The following tables contain reconciliation information between the portfolio segment levels and class levels:



Reconciliation between Portfolio Segment and Class
June 30, 2014 (Principal Balance)
($ in thousands)	Portfolio Segment
Class	Commercial Real Estate Secured		Residential Real Estate Secured		Commercial and Industrial		Consumer		Total
CRE – owner occupied	$	18,067	$	—	$	—	$	—	$	18,067
CRE – non-owner occupied	18,260		—		—		—		18,260
Commercial and industrial	—		—		11,135		—		11,135
Residential real estate	—		29,360		—		—		29,360
Construction and land development	964		3,157		—		—		4,121
Government guaranteed	—		—		2,430		—		2,430
Consumer	—		—		—		50		50
Total	$	37,291	$	32,517	$	13,565	$	50	$	83,423



Reconciliation between Portfolio Segment and Class
December 31, 2013 (Principal Balance)
($ in thousands)	Portfolio Segment
Class	Commercial Real Estate Secured		Residential Real Estate Secured		Commercial and Industrial		Consumer		Total
CRE – owner occupied	$	20,964	$	—	$	—	$	—	$	20,964
CRE – non-owner occupied	17,960		—		—		—		17,960
Commercial and industrial	—		—		11,431		—		11,431
Residential real estate	—		24,186		—		—		24,186
Construction and land development	—		2,044		—		—		2,044
Government guaranteed	—		—		2,605		—		2,605
Consumer	—		—		—		50		50
Total	$	38,924	$	26,230	$	14,036	$	50	$	79,240

Impaired loans by class



($ in thousands)	Impaired Loans by Class as of June 30, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment YTD		Interest Income Recognized YTD
Impaired loans with a related allowance
CRE – owner occupied	$	—	$	—	$	—	$	—	$	—
CRE – non-owner occupied	—		—		—		—		—
Commercial and industrial	145		161		16		166		3
Residential real estate	—		—		—		—		—
Construction and land development	—		—		—		—		—
Government guaranteed	—		—		—		—		—
Consumer	—		—		—		—		—
Total	$	145	$	161	$	16	$	166	$	3

Credit quality of loans by class

As of June 30, 2014, and based on the most recent analysis performed during the month of June 2014, the recorded investment in each risk category of loans by class of loan is as follows:



($ in thousands)	Credit Quality of Loans by Class as of June 30, 2014
	Pass		Special Mention		Substandard		Doubtful		Total
CRE – owner occupied	$	13,424	$	176	$	4,467	$	—	$	18,067
CRE – non-owner occupied	15,360		2,900		—		—		18,260
Commercial and industrial	10,607		45		483		—		11,135
Residential real estate	28,578		—		782		—		29,360
Construction and land development	3,157		964		—		—		4,121
Government guaranteed	2,430		—		—		—		2,430
Consumer	50		—		—		—		50
Total	$	73,606	$	4,085	$	5,732	$	—	$	83,423

As of December 31, 2013, and based on the most recent analysis performed during the month of December 2013, the recorded investment in each risk category of loans by class of loan is as follows:



($ in thousands)	Credit Quality of Loans by Class as of December 31, 2013
	Pass		Special Mention		Substandard		Doubtful		Total
CRE – owner occupied	$	18,533	$	179	$	2,252	$	—	$	20,964
CRE – non-owner occupied	17,124		836		—		—		17,960
Commercial and industrial	11,134		127		170		—		11,431
Residential real estate	23,393		—		793		—		24,186
Construction and land development	2,044		—		—		—		2,044
Government guaranteed	2,605		—		—		—		2,605
Consumer	50		—		—		—		50
Total	$	74,883	$	1,142	$	3,215	$	—	$	79,240

Solera National Bancorp, Inc. 10-Q