Management generally follows regulatory definitions in assigning criticized ratings to loans,  including substandard, doubtful or loss. Substandard loans are classified as they have a well -  defined weakness, or weaknesses that jeopardize liquidation of the debt. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.  Substandard loans include loans that management has determined not to be impaired, as well as loans considered to be impaired. A doubtful loan has the same weaknesses as a substandard loan, however, collection or liquidation of principal in full is questionable and improbable. A doubtful loan is considered to be impaired; loss is present,  but may not be determined until specific factors occur. Loss assets are considered uncollectible, as the underlying borrowers are often in bankruptcy,  have suspended debt repayments, or ceased business operations. Once a loan is classified as Loss, there is little prospect of collecting the loan’ s principal or interest and it is generally written off.  Loans with a consumer purpose are not -rated and are monitored based on the length of time a loan is past due. Not -rated loans are categorized as either Performing or Non - performing. Non-  performing loans would be those in non - accrual status, which generally occurs when a loan is maintained on a cash basis due to deterioration in the financial condition of the borrower, full payment of principal or interest is not expected or principal or interest has been in default for a period of 90 days or more.  The Bank’ s Senior Credit Committee, which meets weekly, monitors loan quality on an ongoing basis. The Credit Review Committee meets quarterly and reviews the ratings of all criticized loans. In addition, an independent third -party performs an annual loan review. The review focuses on business purpose loans over a certain dollar threshold and all previously criticized loans over a certain dollar threshold.  The following tables summarize the Bank’ s disaggregated loan portfolio based on its internal risk rating system and not -rated loans as either Performing or Non - performing. All dollar amounts are as of December 31, 2013 and 2012 ( in thousands):  Construction and Land Residential Commercial December 31, 2013 Commercial Development Farmland Real Estate Real Estate Consumer Total Pass 49, 913 9, 590 732 25, 315 73, 949 159, 499 Special mention 3, 608 275 1, 250 5, 133 Substandard 3, 276 1, 041 1, 898 2, 810 9, 025 Doubtful Not -rated 2, 012 44, 449 724 47, 185 56, 797 11, 602 1, 773 71, 937 78, 009 724 220, 842 Non -rated loans:  Performing 2, 012 44, 449 724 47, 185 Non - performing 2, 012 44, 449 724 47, 185 21 21