Consumer
non-accrual loan balances remained essentially unchanged quarter to quarter.
A majority of this decline was attributable to average loan volume decline and the impact of
non-accrual loan interest reversals.
Residential real estate and Small business
non-accrual loan balances remained essentially unchanged quarter to quarter.
The largest
non-accrual loan categories were commercial and industrial (C&I) loans with $15.
Despite ongoing unprecedented turmoil in the credit markets, the Bank reports success in its loan remedial management efforts in October 2009, achieving payoff of a $1 million
non-accrual loan risk rated Substandard.
7 million at September 30, 2009, with increases in
non-accrual loan balances offset primarily by charge-offs.
Credit quality is reflected in the percentage of
non-accrual loans to total loans at 0.
Also impacting loan yields in both 2015 and 2014 was non-recurring interest income, which is comprised primarily of penalties and accelerated fee recognition on loan prepayments as well as interest recoveries on
non-accrual loans (net of interest reversals for loans placed on non-accrual status).
Moreover,
non-accrual loans have now come down to 0.
Non-accrual loans at June 30, 2011, stood at $50,000, or 0.
In addition to provision expense, we have spent considerable sums of money relating to the administration and resolution of problem assets, forgone interest income on
non-accrual loans and foreclosed properties and have allocated vast amounts of staff time to workouts and reporting.
In addition, the compression of the net interest margin due to the flat yield curve and competitive pressures, combined with an increase in our
non-accrual loans, all had a negative impact on our profits during our first quarter.
