Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 04, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'STEWARDSHIP FINANCIAL CORP | ' |
Entity Central Index Key | '0001023860 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 5,941,658 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Cash and due from banks | $14,955,000 | $19,962,000 |
Other interest-earning assets | 445,000 | 1,054,000 |
Cash and cash equivalents | 15,400,000 | 21,016,000 |
Securities available for sale | 183,411,000 | 174,700,000 |
Securities held to maturity; estimated fair value of $27,512,000 (at September 30, 2013) and $31,768,000 (December 31, 2012) | 26,161,000 | 29,718,000 |
FHLB-NY stock, at cost | 2,813,000 | 2,213,000 |
Mortgage loans held for sale | 910,000 | 784,000 |
Loans, net of allowance for loan losses of $10,704,000 (September 30, 2013) and $10,641,000 (December 31, 2012) | 428,799,000 | 429,832,000 |
Premises and equipment, net | 5,566,000 | 5,645,000 |
Accrued interest receivable | 2,058,000 | 2,372,000 |
Other real estate owned, net | 470,000 | 1,058,000 |
Bank owned life insurance | 13,203,000 | 10,470,000 |
Other assets | 10,437,000 | 10,580,000 |
Total assets | 689,228,000 | 688,388,000 |
Deposits: | ' | ' |
Noninterest-bearing | 139,918,000 | 124,286,000 |
Interest-bearing | 437,238,000 | 465,968,000 |
Total deposits | 577,156,000 | 590,254,000 |
Federal Home Loan Bank of New York advances | 40,100,000 | 25,000,000 |
Securities sold under agreements to repurchase | 8,044,000 | 7,343,000 |
Subordinated debentures | 7,217,000 | 7,217,000 |
Accrued interest payable | 373,000 | 560,000 |
Accrued expenses and other liabilities | 2,060,000 | 1,668,000 |
Total liabilities | 634,950,000 | 632,042,000 |
Commitments and contingencies | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, no par value; 2,500,000 shares authorized; 15,000 shares issued and outstanding at September 30, 2013 and December 31, 2012 liquidation preference of $15,000,000 | 14,972,000 | 14,964,000 |
Common stock, no par value; 10,000,000 shares authorized; 5,941,398 and 5,924,865 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 40,679,000 | 40,606,000 |
Retained earnings | 1,472,000 | 316,000 |
Accumulated other comprehensive income, net | -2,845,000 | 460,000 |
Total stockholders' equity | 54,278,000 | 56,346,000 |
Total liabilities and stockholders' equity | $689,228,000 | $688,388,000 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Securities held to maturity | $27,512,000 | $31,768,000 |
Allowance for loan losses | 10,704,000 | 10,641,000 |
Stockholders' equity | ' | ' |
Preferred stock, shares authorized | 2,500,000 | 2,500,000 |
Preferred stock, shares issued | 15,000 | 15,000 |
Preferred stock, shares outstanding | 15,000 | 15,000 |
Preferred stock, liquidation preference | $15,000,000 | $15,000,000 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,941,398 | 5,924,865 |
Common stock, shares outstanding | 5,941,398 | 5,924,865 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Interest income: | ' | ' | ' | ' |
Loans | $5,534,000 | $5,951,000 | $17,138,000 | $18,295,000 |
Securities held to maturity | ' | ' | ' | ' |
Taxable | 69,000 | 109,000 | 220,000 | 389,000 |
Non-taxable | 185,000 | 203,000 | 576,000 | 616,000 |
Securities available for sale | ' | ' | ' | ' |
Taxable | 642,000 | 747,000 | 1,786,000 | 2,344,000 |
Non-taxable | 76,000 | 73,000 | 230,000 | 198,000 |
FHLB dividends | 22,000 | 26,000 | 70,000 | 83,000 |
Other interest-earning assets | 8,000 | 11,000 | 22,000 | 28,000 |
Total interest income | 6,536,000 | 7,120,000 | 20,042,000 | 21,953,000 |
Interest expense: | ' | ' | ' | ' |
Deposits | 567,000 | 802,000 | 1,800,000 | 2,679,000 |
Borrowed money | 373,000 | 457,000 | 1,102,000 | 1,402,000 |
Total interest expense | 940,000 | 1,259,000 | 2,902,000 | 4,081,000 |
Net interest income before provision for loan losses | 5,596,000 | 5,861,000 | 17,140,000 | 17,872,000 |
Provision for loan losses | 900,000 | 2,000,000 | 3,350,000 | 6,665,000 |
Net interest income after provision for loan losses | 4,696,000 | 3,861,000 | 13,790,000 | 11,207,000 |
Noninterest income: | ' | ' | ' | ' |
Fees and service charges | 459,000 | 496,000 | 1,407,000 | 1,542,000 |
Bank owned life insurance | 98,000 | 83,000 | 251,000 | 244,000 |
Gain on calls and sales of securities | ' | 891,000 | 2,000 | 1,336,000 |
Gain on sales of mortgage loans | 150,000 | 162,000 | 610,000 | 727,000 |
Gain (loss) on sales of other real estate owned | 156,000 | -37,000 | 282,000 | 432,000 |
Gain on life insurance proceeds | ' | ' | 537,000 | ' |
Other | 108,000 | 87,000 | 351,000 | 331,000 |
Total noninterest income | 971,000 | 1,682,000 | 3,440,000 | 4,612,000 |
Noninterest expenses: | ' | ' | ' | ' |
Salaries and employee benefits | 2,570,000 | 2,394,000 | 7,977,000 | 7,037,000 |
Occupancy, net | 518,000 | 494,000 | 1,538,000 | 1,452,000 |
Equipment | 197,000 | 240,000 | 580,000 | 731,000 |
Data processing | 327,000 | 324,000 | 987,000 | 974,000 |
Advertising | 117,000 | 145,000 | 368,000 | 423,000 |
FDIC insurance premium | 220,000 | 154,000 | 646,000 | 457,000 |
Charitable contributions | 60,000 | ' | 180,000 | ' |
Other | 865,000 | 1,418,000 | 2,661,000 | 3,772,000 |
Total noninterest expenses | 4,874,000 | 5,169,000 | 14,937,000 | 14,846,000 |
Income before income tax expense | 793,000 | 374,000 | 2,293,000 | 973,000 |
Income tax expense | 271,000 | 46,000 | 488,000 | 193,000 |
Net income | 522,000 | 328,000 | 1,805,000 | 780,000 |
Dividends on preferred stock | 170,000 | 112,000 | 463,000 | 225,000 |
Net income (loss) available to common stockholders | $352,000 | $216,000 | $1,342,000 | $555,000 |
Basic earnings per common share | $0.06 | $0.04 | $0.23 | $0.09 |
Diluted earnings per common share | $0.06 | $0.04 | $0.23 | $0.09 |
Weighted average number of common shares outstanding | 5,939,958 | 5,916,123 | 5,935,195 | 5,903,598 |
Weighted average number of diluted common shares outstanding | 5,939,958 | 5,916,123 | 5,935,195 | 5,903,598 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Net income | $522,000 | $328,000 | $1,805,000 | $780,000 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Change in unrealized holding gains (losses) on securities available for sale arising during the period | -578,000 | 794,000 | -5,591,000 | 1,522,000 |
Reclassification adjustment for gains in net income | ' | -891,000 | -2,000 | -1,336,000 |
Net unrealized gains (losses) | -578,000 | -97,000 | -5,593,000 | 186,000 |
Tax effect | 224,000 | 44,000 | 2,170,000 | -67,000 |
Net unrealized gain (losses), net of tax amount | -354,000 | -53,000 | -3,423,000 | 119,000 |
Change in fair value of interest rate swap | 33,000 | -2,000 | 197,000 | 15,000 |
Tax effect | -13,000 | 1,000 | -79,000 | -6,000 |
Change in fair value of interest rate swap, net of tax amount | 20,000 | -1,000 | 118,000 | 9,000 |
Total other comprehensive income (loss) | -334,000 | -54,000 | -3,305,000 | 128,000 |
Total comprehensive income (loss) | 188,000 | 274,000 | -1,500,000 | 908,000 |
The following is a summary of the accumulated other comprehensive income balances, net of tax | ' | ' | ' | ' |
Unrealized gain (loss) on securities available-for-sale | -2,476,000 | ' | -2,476,000 | ' |
Unrealized loss on fair value of interest rate swap | -369,000 | ' | -369,000 | ' |
Accumulated other comprehensive income (loss), net | ($2,845,000) | ' | ($2,845,000) | ' |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (USD $) | Preferred Stock | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net | Total |
Balance beginning at Dec. 31, 2011 | $14,955,000 | $40,420,000 | $1,043,000 | $1,374,000 | $57,792,000 |
Balance beginning, shares at Dec. 31, 2011 | ' | 5,882,504 | ' | ' | ' |
Cash dividends paid on common stock | ' | ' | -766,000 | ' | -766,000 |
Payment of discount on dividend reinvestment plan | ' | -7,000 | ' | ' | -7,000 |
Cash dividends accrued on preferred stock | ' | ' | -225,000 | ' | -225,000 |
Common stock issued under stock plans | ' | 172,000 | ' | ' | 172,000 |
Common stock issued under stock plans, shares | ' | 37,074 | ' | ' | ' |
Common stock issued under dividend reinvestment plan | 8,000 | ' | -8,000 | ' | ' |
Net income | ' | ' | 780,000 | ' | 780,000 |
Other comprehensive income | ' | ' | ' | 128,000 | 128,000 |
Balance ending at Sep. 30, 2012 | 14,963,000 | 40,585,000 | 824,000 | 1,502,000 | 57,874,000 |
Balance ending, shares at Sep. 30, 2012 | ' | 5,919,578 | ' | ' | ' |
Balance beginning at Dec. 31, 2012 | 14,964,000 | 40,606,000 | 316,000 | 460,000 | 56,346,000 |
Balance beginning, shares at Dec. 31, 2012 | ' | 5,924,865 | ' | ' | 5,924,865 |
Cash dividends paid on common stock | ' | ' | -178,000 | ' | -178,000 |
Payment of discount on dividend reinvestment plan | ' | -1,000 | ' | ' | -1,000 |
Cash dividends accrued on preferred stock | ' | ' | -463,000 | ' | -463,000 |
Common stock issued under stock plans | ' | 74,000 | ' | ' | 74,000 |
Common stock issued under stock plans, shares | ' | 16,533 | ' | ' | ' |
Amortization of issuance costs | 8,000 | ' | -8,000 | ' | ' |
Net income | ' | ' | 1,805,000 | ' | 1,805,000 |
Other comprehensive income | ' | ' | ' | -3,305,000 | -3,305,000 |
Balance ending at Sep. 30, 2013 | $14,972,000 | $40,679,000 | $1,472,000 | ($2,845,000) | $54,278,000 |
Balance ending, shares at Sep. 30, 2013 | ' | 5,941,398 | ' | ' | 5,941,398 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income | $1,805,000 | $780,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization of premises and equipment | 325,000 | 408,000 |
Amortization of premiums and accretion of discounts, net | 1,031,000 | 1,203,000 |
Accretion (amortization) of deferred loan fees | 56,000 | 31,000 |
Provision for loan losses | 3,350,000 | 6,665,000 |
Originations of mortgage loans held for sale | -37,172,000 | -49,899,000 |
Proceeds from sale of mortgage loans | 37,656,000 | 54,399,000 |
Gain on sales of mortgage loans | -610,000 | -727,000 |
Gain on sales and calls of securities | -2,000 | -1,336,000 |
Gain on sale of other real estate owned | -282,000 | -432,000 |
Loss on early distinguishment of debt | ' | 691,000 |
Deferred income tax benefit | -99,000 | -427,000 |
Decrease in accrued interest receivable | 314,000 | 414,000 |
Decrease in accrued interest payable | -187,000 | -228,000 |
Earnings on bank owned life insurance | -251,000 | -244,000 |
Gain on life insurance proceeds | -537,000 | ' |
Decrease (increase) in other assets | 2,420,000 | -435,000 |
Increase (decrease) in other liabilities | 511,000 | -24,000 |
Net cash provided by operating activities | 8,328,000 | 10,839,000 |
Cash flows from investing activities: | ' | ' |
Purchase of securities available for sale | -44,841,000 | -86,581,000 |
Proceeds from maturities and principal repayments on securities available for sale | 22,880,000 | 20,546,000 |
Proceeds from sales and calls on securities available for sale | 6,700,000 | 63,374,000 |
Proceeds from maturities and principal repayments on securities held to maturity | 2,316,000 | 3,264,000 |
Proceeds from calls on securities held to maturity | 1,170,000 | 3,105,000 |
(Purchase) sale of FHLB-NY stock | -600,000 | 265,000 |
Net (increase) decrease in loans | -2,722,000 | 9,855,000 |
Proceeds from sale of other real estate owned | 1,209,000 | 5,431,000 |
Purchase of bank owned life insurance | -3,000,000 | ' |
Life insurance proceeds | 1,055,000 | ' |
Additions to premises and equipment | -246,000 | -66,000 |
Net cash provided by (used in) investing activities | -16,079,000 | 19,193,000 |
Cash flows from financing activities: | ' | ' |
Net increase in noninterest-bearing deposits | 15,632,000 | 9,284,000 |
Net decrease in interest-bearing deposits | -28,730,000 | -19,410,000 |
Net increase (decrease) in securities sold under agreements to repurchase | 701,000 | -7,691,000 |
Net increase (decrease) in short term borrowings | 15,100,000 | -4,700,000 |
Repayment of long term borrowings | ' | -3,000,000 |
Cash dividends paid on common stock | -178,000 | -766,000 |
Cash dividends paid on preferred stock | -463,000 | -225,000 |
Payment of discount on dividend reinvestment plan | -1,000 | -7,000 |
Issuance of common stock | 74,000 | 172,000 |
Net cash provided by (used in) financing activities | 2,135,000 | -26,343,000 |
Net increase (decrease) in cash and cash equivalents | -5,616,000 | 3,689,000 |
Cash and cash equivalents - beginning | 21,016,000 | 13,698,000 |
Cash and cash equivalents - ending | 15,400,000 | 17,387,000 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid during the period for interest | 3,089,000 | 4,309,000 |
Cash paid during the period for income taxes | 251,000 | 1,299,000 |
Transfers from loans to other real estate owned | $349,000 | $2,758,000 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Summary Of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
Note 1. Summary of Significant Accounting Policies | |
Certain information and note disclosures normally included in the unaudited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Stewardship Financial Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2012, filed with the SEC on March 28, 2013 (the “2012 Annual Report”). | |
The interim unaudited consolidated financial statements included herein have been prepared in accordance with instructions for Form 10-Q and the rules and regulations of the SEC and, therefore, do not include information or footnotes necessary for a complete presentation of consolidated financial condition, results of operations, and cash flows in conformity with GAAP. However, all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary for a fair presentation of the interim consolidated financial statements, have been included. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results which may be expected for the entire year. | |
Principles of consolidation | |
The consolidated financial statements include the accounts of Stewardship Financial Corporation and its wholly-owned subsidiary, Atlantic Stewardship Bank (the “Bank”), together referred to as “the Corporation”. The Bank includes its wholly-owned subsidiaries, Stewardship Investment Corporation, Stewardship Realty LLC, Atlantic Stewardship Insurance Company, LLC and several other subsidiaries formed to hold title to properties acquired through foreclosure or deed in lieu of foreclosure. The Bank’s subsidiaries have an insignificant impact on the Bank’s daily operations. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. Certain prior period amounts have been reclassified to conform to the current presentation. | |
The consolidated financial statements of the Corporation have been prepared in conformity with GAAP. In preparing the consolidated financial statements, management is required to make estimates and assumptions, based on available information, that affect the amounts reported in the consolidated financial statements and disclosures provided. Actual results could differ significantly from those estimates. | |
Material estimates | |
Material estimates that are particularly susceptible to significant changes relate to the determination of the allowance for loan losses. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize probable incurred losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions in the market area. | |
Adoption of New Accounting Standards | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, “Comprehensive Income – Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income”. This ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the financial statement where net income is presented or in the accompanying notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The standard is effective prospectively for reporting periods, including interim periods, beginning after December 15, 2012. The adoption of the standard did not have a material effect on the Corporation’s consolidated financial statements. | |
In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (Topic 210): “Disclosures about Offsetting Assets and Liabilities”. This ASU requires an entity to disclose both gross and net information about financial instruments, such as sales and repurchase agreements and reverse sale and repurchase agreements and securities borrowing/lending arrangements, and derivative instruments that are eligible for offset in the statement of financial position and/or subject an enforceable master netting arrangement or similar agreement regardless of whether they are presented net in the financial statements. The standard is effective for annual and interim periods beginning on January 1, 2013, and it is required to be applied retrospectively. The adoption of the standard did not have a material impact on the Corporation’s consolidated financial statements. |
Securities_Availableforsale_an
Securities - Available-for-sale and Held to Maturity | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Securities - Available-For-Sale And Held To Maturity | ' | ||||||||||||||||||||||||||
Securities - Available-for-sale and Held to Maturity | ' | ||||||||||||||||||||||||||
Note 2. Securities – Available-for-sale and Held to Maturity | |||||||||||||||||||||||||||
The fair value of the available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: | |||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 41,298,000 | $ | 24,000 | $ | 1,988,000 | $ | 39,334,000 | |||||||||||||||||||
Obligations of state and political | |||||||||||||||||||||||||||
subdivisions | 13,420,000 | 218,000 | 160,000 | 13,478,000 | |||||||||||||||||||||||
Mortgage-backed securities - residential | 116,350,000 | 534,000 | 2,438,000 | 114,446,000 | |||||||||||||||||||||||
Asset-backed securities (a) | 9,874,000 | 10,000 | 58,000 | 9,826,000 | |||||||||||||||||||||||
Corporate debt | 2,995,000 | 4,000 | 83,000 | 2,916,000 | |||||||||||||||||||||||
Total debt securities | 183,937,000 | 790,000 | 4,727,000 | 180,000,000 | |||||||||||||||||||||||
Other equity investments | 3,512,000 | — | 101,000 | 3,411,000 | |||||||||||||||||||||||
$ | 187,449,000 | $ | 790,000 | $ | 4,828,000 | $ | 183,411,000 | ||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. Treasury | $ | 4,003,000 | $ | 3,000 | $ | — | $ | 4,006,000 | |||||||||||||||||||
U.S. government-sponsored agencies | 37,287,000 | 35,000 | 67,000 | 37,255,000 | |||||||||||||||||||||||
Obligations of state and political | |||||||||||||||||||||||||||
subdivisions | 13,724,000 | 468,000 | 22,000 | 14,170,000 | |||||||||||||||||||||||
Mortgage-backed securities - residential | 104,341,000 | 1,176,000 | 89,000 | 105,428,000 | |||||||||||||||||||||||
Asset-backed securities (a) | 9,874,000 | 22,000 | 12,000 | 9,884,000 | |||||||||||||||||||||||
Corporate debt | 492,000 | 3,000 | — | 495,000 | |||||||||||||||||||||||
Total debt securities | 169,721,000 | 1,707,000 | 190,000 | 171,238,000 | |||||||||||||||||||||||
Other equity investments | 3,425,000 | 37,000 | — | 3,462,000 | |||||||||||||||||||||||
$ | 173,146,000 | $ | 1,744,000 | $ | 190,000 | $ | 174,700,000 | ||||||||||||||||||||
(a) Collateralized by student loans | |||||||||||||||||||||||||||
Cash proceeds realized from calls and sales of securities available-for-sale for the three and nine months ended September 30, 2013 were $200,000 and $6,700,000, respectively. Cash proceeds realized from calls and sales of securities available-for-sale for the three and nine months ended September 30, 2012 were $37,414,000 and $63,374,000, respectively. There were no gross gains realized on calls and sales during the three months ended September 30, 2013. Gross gains realized on calls and sales during the nine months ended September 30, 2013 totaled $2,000. There were no gross losses realized on calls and sales during the three and nine months ended September 30, 2013. Gross gains realized on calls and sales during the three and nine months ended September 30, 2012 totaled $898,000 and $1,336,000, respectively. Gross losses realized on calls and sales during the three and nine months ended September 30, 2012 totaled $7,000 and $7,000, respectively. | |||||||||||||||||||||||||||
The following is a summary of the held to maturity securities and related unrecognized gains and losses: | |||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||
Amortized | Gross Unrecognized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 259,000 | $ | 34,000 | — | $ | 293,000 | ||||||||||||||||||||
Obligations of state and political | |||||||||||||||||||||||||||
subdivisions | 20,658,000 | 905,000 | — | 21,563,000 | |||||||||||||||||||||||
Mortgage-backed securities - residential | 5,244,000 | 412,000 | — | 5,656,000 | |||||||||||||||||||||||
$ | 26,161,000 | $ | 1,351,000 | $ | — | $ | 27,512,000 | ||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||
Amortized | Gross Unrecognized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 260,000 | $ | 46,000 | $ | — | $ | 306,000 | |||||||||||||||||||
Obligations of state and political | |||||||||||||||||||||||||||
subdivisions | 22,787,000 | 1,407,000 | — | 24,194,000 | |||||||||||||||||||||||
Mortgage-backed securities - residential | 6,671,000 | 597,000 | — | 7,268,000 | |||||||||||||||||||||||
$ | 29,718,000 | $ | 2,050,000 | $ | — | $ | 31,768,000 | ||||||||||||||||||||
Cash proceeds realized from calls of securities held to maturity for the three and nine months ended September 30, 2013 were $920,000 and $1,170,000, respectively. There were no cash proceeds realized from calls of securities held to maturity for the three months ended September 30, 2012 and cash proceeds realized from calls of securities held to maturity for the nine months ended September 30, 2012 totaled $3,105,000. There were no gross gains and no gross losses realized on calls during the three and nine months ended September 30, 2013. There were no gross gains realized from calls for the three months ended September 30, 2012. Gross gains realized on calls during the nine months ended September 30, 2012 totaled $7,000. There were no gross losses realized on calls during the three and nine months ended September 30, 2012. | |||||||||||||||||||||||||||
The following table presents the amortized cost and fair value of the debt securities portfolio by contractual maturity. As issuers may have the right to call or prepay obligations with or without call or prepayment premiums, the actual maturities may differ from contractual maturities. Securities not due at a single maturity date, such as mortgage-backed securities and asset-backed securities, are shown separately. | |||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||
Within one year | $ | — | $ | — | |||||||||||||||||||||||
After one year, but within five years | 7,609,000 | 7,553,000 | |||||||||||||||||||||||||
After five years, but within ten years | 30,160,000 | 29,322,000 | |||||||||||||||||||||||||
After ten years | 19,944,000 | 18,853,000 | |||||||||||||||||||||||||
Mortgage-backed securities - residential | 116,350,000 | 114,446,000 | |||||||||||||||||||||||||
Asset-backed securities | 9,874,000 | 9,826,000 | |||||||||||||||||||||||||
Total | $ | 183,937,000 | $ | 180,000,000 | |||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||
Within one year | $ | 4,285,000 | $ | 4,354,000 | |||||||||||||||||||||||
After one year, but within five years | 11,931,000 | 12,569,000 | |||||||||||||||||||||||||
After five years, but within ten years | 4,524,000 | 4,750,000 | |||||||||||||||||||||||||
After ten years | 177,000 | 183,000 | |||||||||||||||||||||||||
Mortgage-backed securities - residential | 5,244,000 | 5,656,000 | |||||||||||||||||||||||||
Total | $ | 26,161,000 | $ | 27,512,000 | |||||||||||||||||||||||
The following tables summarize the fair value and unrealized losses of those investment securities which reported an unrealized loss at September 30, 2013 and December 31, 2012, and if the unrealized loss was continuous for the twelve months prior to September 30, 2013 and December 31, 2012. There were no unrealized losses on held to maturity securities at either September 30, 2013 or December 31, 2012. | |||||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||||
30-Sep-13 | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||
U.S. government- | |||||||||||||||||||||||||||
sponsored agencies | $ | 33,026,000 | $ | (1,988,000 | ) | $ | — | $ | — | $ | 33,026,000 | $ | (1,988,000 | ) | |||||||||||||
Obligations of state and | |||||||||||||||||||||||||||
political subdivisions | 5,476,000 | (146,000 | ) | 868,000 | (14,000 | ) | 6,344,000 | (160,000 | ) | ||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||
securities - residential | 67,110,000 | (2,438,000 | ) | — | — | 67,110,000 | (2,438,000 | ) | |||||||||||||||||||
Asset-backed securities | 8,781,000 | (58,000 | ) | — | — | 8,781,000 | (58,000 | ) | |||||||||||||||||||
Corporate debt | 2,417,000 | (83,000 | ) | — | — | 2,417,000 | (83,000 | ) | |||||||||||||||||||
Other equity investments | 3,351,000 | (101,000 | ) | — | — | 3,351,000 | (101,000 | ) | |||||||||||||||||||
Total temporarily | |||||||||||||||||||||||||||
impaired securities | $ | 120,161,000 | $ | (4,814,000 | ) | $ | 868,000 | $ | (14,000 | ) | $ | 121,029,000 | $ | (4,828,000 | ) | ||||||||||||
31-Dec-12 | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
U.S. government- | |||||||||||||||||||||||||||
sponsored agencies | 20,716,000 | (67,000 | ) | — | — | 20,716,000 | (67,000 | ) | |||||||||||||||||||
Obligations of state and | |||||||||||||||||||||||||||
political subdivisions | 3,257,000 | (22,000 | ) | — | — | 3,257,000 | (22,000 | ) | |||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||
securities - residential | 23,715,000 | (89,000 | ) | — | — | 23,715,000 | (89,000 | ) | |||||||||||||||||||
Asset-backed securities | 3,047,000 | (12,000 | ) | 3,047,000 | (12,000 | ) | |||||||||||||||||||||
Total temporarily | |||||||||||||||||||||||||||
impaired securities | $ | 50,735,000 | $ | (190,000 | ) | $ | — | $ | — | $ | 50,735,000 | $ | (190,000 | ) | |||||||||||||
Other-Than-Temporary-Impairment | |||||||||||||||||||||||||||
At September 30, 2013, there was one security in a continuous loss position for 12 months or longer. The Corporation’s unrealized losses are primarily due to market interest rate conditions. These securities have not been considered other than temporarily impaired as scheduled principal and interest payments have been made and management anticipates collecting the entire principal balance as scheduled. The securities cannot be prepaid in a manner that would result in the Corporation not receiving substantially all of its amortized cost. In addition, because the decline in fair value is attributable to changes in market conditions, and not credit quality, and because the Corporation does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Corporation does not consider these securities to be other-than-temporarily impaired at September 30, 2013. |
Loans_and_Nonperforming_Loans
Loans and Nonperforming Loans | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Loans And Nonperforming Loans | ' | ||||||||||||||||||||||||||||||||
Loans and Nonperforming Loans | ' | ||||||||||||||||||||||||||||||||
Note 3. Loans and Nonperforming Loans | |||||||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, respectively, the loan portfolio consisted of the following: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 54,909,000 | $ | 58,160,000 | |||||||||||||||||||||||||||||
Other | 25,845,000 | 31,254,000 | |||||||||||||||||||||||||||||||
Commercial real estate | 253,084,000 | 242,763,000 | |||||||||||||||||||||||||||||||
Commercial construction | 2,985,000 | 9,324,000 | |||||||||||||||||||||||||||||||
Residential real estate | 75,770,000 | 67,200,000 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 26,058,000 | 30,982,000 | |||||||||||||||||||||||||||||||
Other | 598,000 | 624,000 | |||||||||||||||||||||||||||||||
90,000 | 116,000 | ||||||||||||||||||||||||||||||||
Total gross loans | 439,339,000 | 440,423,000 | |||||||||||||||||||||||||||||||
Less: Deferred loan fees, net of costs | (164,000 | ) | (50,000 | ) | |||||||||||||||||||||||||||||
Allowance for loan losses | 10,704,000 | 10,641,000 | |||||||||||||||||||||||||||||||
10,540,000 | 10,591,000 | ||||||||||||||||||||||||||||||||
Loans, net | $ | 428,799,000 | $ | 429,832,000 | |||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, loan participations sold by the Corporation to other lending institutions totaled approximately $13,187,000 and $20,559,000, respectively. These amounts are not included in the totals presented above. | |||||||||||||||||||||||||||||||||
Activity in the allowance for loan losses is summarized as follows: | |||||||||||||||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Balance, | Provision | Recoveries | Balance, | ||||||||||||||||||||||||||||||
beginning | charged | Loans | of loans | end | |||||||||||||||||||||||||||||
of period | to operations | charged off | charged off | of period | |||||||||||||||||||||||||||||
Commercial | $ | 3,985,000 | $ | 508,000 | $ | 274,000 | $ | 44,000 | $ | 4,263,000 | |||||||||||||||||||||||
Commercial real estate | 5,598,000 | 518,000 | 672,000 | 118,000 | 5,562,000 | ||||||||||||||||||||||||||||
Construction | 304,000 | (191,000 | ) | — | — | 113,000 | |||||||||||||||||||||||||||
Residential real estate | 434,000 | 23,000 | 57,000 | — | 400,000 | ||||||||||||||||||||||||||||
Consumer | 410,000 | 23,000 | 142,000 | — | 291,000 | ||||||||||||||||||||||||||||
Other loans | 1,000 | 1,000 | — | — | 2,000 | ||||||||||||||||||||||||||||
Unallocated | 55,000 | 18,000 | — | — | 73,000 | ||||||||||||||||||||||||||||
Total | $ | 10,787,000 | $ | 900,000 | $ | 1,145,000 | $ | 162,000 | $ | 10,704,000 | |||||||||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Balance, | Provision | Recoveries | Balance, | ||||||||||||||||||||||||||||||
beginning | charged | Loans | of loans | end | |||||||||||||||||||||||||||||
of period | to operations | charged off | charged off | of period | |||||||||||||||||||||||||||||
Commercial | $ | 4,832,000 | $ | 231,000 | $ | 922,000 | $ | 122,000 | $ | 4,263,000 | |||||||||||||||||||||||
Commercial real estate | 4,936,000 | 2,939,000 | 2,431,000 | 118,000 | 5,562,000 | ||||||||||||||||||||||||||||
Construction | 169,000 | (58,000 | ) | 24,000 | 26,000 | 113,000 | |||||||||||||||||||||||||||
Residential real estate | 308,000 | 149,000 | 57,000 | — | 400,000 | ||||||||||||||||||||||||||||
Consumer | 352,000 | 64,000 | 145,000 | 20,000 | 291,000 | ||||||||||||||||||||||||||||
Other loans | 3,000 | (3,000 | ) | — | 2,000 | 2,000 | |||||||||||||||||||||||||||
Unallocated | 41,000 | 28,000 | — | 4,000 | 73,000 | ||||||||||||||||||||||||||||
Total | $ | 10,641,000 | $ | 3,350,000 | $ | 3,579,000 | $ | 292,000 | $ | 10,704,000 | |||||||||||||||||||||||
For the three months ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Balance, | Provision | Recoveries | Balance, | ||||||||||||||||||||||||||||||
beginning | charged | Loans | of loans | end | |||||||||||||||||||||||||||||
of period | to operations | charged off | charged off | of period | |||||||||||||||||||||||||||||
Commercial | $ | 6,023,000 | $ | 1,620,000 | $ | 865,000 | $ | 167,000 | $ | 6,945,000 | |||||||||||||||||||||||
Commercial real estate | 4,527,000 | 542,000 | 606,000 | — | 4,463,000 | ||||||||||||||||||||||||||||
Construction | 514,000 | (137,000 | ) | 20,000 | 3,000 | 360,000 | |||||||||||||||||||||||||||
Residential real estate | 392,000 | 18,000 | 15,000 | — | 395,000 | ||||||||||||||||||||||||||||
Consumer | 437,000 | (28,000 | ) | 1,000 | 1,000 | 409,000 | |||||||||||||||||||||||||||
Other loans | 4,000 | (2,000 | ) | 1,000 | 1,000 | 2,000 | |||||||||||||||||||||||||||
Unallocated | 37,000 | (13,000 | ) | — | — | 24,000 | |||||||||||||||||||||||||||
Total | $ | 11,934,000 | $ | 2,000,000 | $ | 1,508,000 | $ | 172,000 | $ | 12,598,000 | |||||||||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Balance, | Provision | Recoveries | Balance, | ||||||||||||||||||||||||||||||
beginning | charged | Loans | of loans | end | |||||||||||||||||||||||||||||
of period | to operations | charged off | charged off | of period | |||||||||||||||||||||||||||||
Commercial | $ | 5,368,000 | $ | 4,581,000 | $ | 3,221,000 | $ | 217,000 | $ | 6,945,000 | |||||||||||||||||||||||
Commercial real estate | 4,943,000 | 1,964,000 | 2,445,000 | 1,000 | 4,463,000 | ||||||||||||||||||||||||||||
Construction | 480,000 | 42,000 | 165,000 | 3,000 | 360,000 | ||||||||||||||||||||||||||||
Residential real estate | 303,000 | 107,000 | 15,000 | — | 395,000 | ||||||||||||||||||||||||||||
Consumer | 498,000 | (42,000 | ) | 48,000 | 1,000 | 409,000 | |||||||||||||||||||||||||||
Other loans | 2,000 | (1,000 | ) | 1,000 | 2,000 | 2,000 | |||||||||||||||||||||||||||
Unallocated | 10,000 | 14,000 | — | — | 24,000 | ||||||||||||||||||||||||||||
Total | $ | 11,604,000 | $ | 6,665,000 | $ | 5,895,000 | $ | 224,000 | $ | 12,598,000 | |||||||||||||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Residential | Other | ||||||||||||||||||||||||||||||
Commercial | Real Estate | Construction | Real Estate | Consumer | Loans | Unallocated | Total | ||||||||||||||||||||||||||
Allowance for loan | |||||||||||||||||||||||||||||||||
losses: | |||||||||||||||||||||||||||||||||
Ending allowance | |||||||||||||||||||||||||||||||||
balance attributable | |||||||||||||||||||||||||||||||||
to loans | |||||||||||||||||||||||||||||||||
Individually | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | $ | 269,000 | $ | 94,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 363,000 | |||||||||||||||||
Collectively | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | 3,994,000 | 5,468,000 | 113,000 | 400,000 | 291,000 | 2,000 | 73,000 | 10,341,000 | |||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||
allowance | |||||||||||||||||||||||||||||||||
balance | $ | 4,263,000 | $ | 5,562,000 | $ | 113,000 | $ | 400,000 | $ | 291,000 | $ | 2,000 | $ | 73,000 | $ | 10,704,000 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||
individually | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | $ | 8,369,000 | $ | 15,528,000 | $ | 852,000 | $ | 650,000 | $ | 817,000 | $ | — | $ | — | $ | 26,216,000 | |||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||
collectively | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | 72,385,000 | 237,556,000 | 2,133,000 | 75,120,000 | 25,839,000 | 90,000 | — | 413,123,000 | |||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||
loan balance | $ | 80,754,000 | $ | 253,084,000 | $ | 2,985,000 | $ | 75,770,000 | $ | 26,656,000 | $ | 90,000 | $ | — | $ | 439,339,000 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Residential | Other | ||||||||||||||||||||||||||||||
Commercial | Real Estate | Construction | Real Estate | Consumer | Loans | Unallocated | Total | ||||||||||||||||||||||||||
Allowance for loan | |||||||||||||||||||||||||||||||||
losses: | |||||||||||||||||||||||||||||||||
Ending allowance | |||||||||||||||||||||||||||||||||
balance attributable | |||||||||||||||||||||||||||||||||
to loans | |||||||||||||||||||||||||||||||||
Individually | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | $ | 251,000 | $ | 15,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 266,000 | |||||||||||||||||
Collectively | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | 4,581,000 | 4,921,000 | 169,000 | 308,000 | 352,000 | 3,000 | 41,000 | 10,375,000 | |||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||
allowance | |||||||||||||||||||||||||||||||||
balance | $ | 4,832,000 | $ | 4,936,000 | $ | 169,000 | $ | 308,000 | $ | 352,000 | $ | 3,000 | $ | 41,000 | $ | 10,641,000 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||
individually | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | $ | 8,641,000 | $ | 12,803,000 | $ | 6,029,000 | $ | 413,000 | $ | 800,000 | $ | — | $ | — | $ | 28,686,000 | |||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||
collectively | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | 80,773,000 | 229,960,000 | 3,295,000 | 66,787,000 | 30,806,000 | 116,000 | — | 411,737,000 | |||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||
loan balance | $ | 89,414,000 | $ | 242,763,000 | $ | 9,324,000 | $ | 67,200,000 | $ | 31,606,000 | $ | 116,000 | $ | — | $ | 440,423,000 | |||||||||||||||||
The following table presents the recorded investment in nonaccrual loans in the periods indicated: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 2,845,000 | $ | 3,374,000 | |||||||||||||||||||||||||||||
Other | 105,000 | 261,000 | |||||||||||||||||||||||||||||||
Commercial real estate | 10,852,000 | 10,083,000 | |||||||||||||||||||||||||||||||
Commercial construction | — | 3,080,000 | |||||||||||||||||||||||||||||||
Residential real estate | 650,000 | 413,000 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 817,000 | 800,000 | |||||||||||||||||||||||||||||||
Total nonperfoming loans | $ | 15,269,000 | $ | 18,011,000 | |||||||||||||||||||||||||||||
The following presents loans individually evaluated for impairment by class of loans as of the periods indicated: | |||||||||||||||||||||||||||||||||
At and for the nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Unpaid | Allowance for | Average | Interest | ||||||||||||||||||||||||||||||
Principal | Recorded | Loan Losses | Recorded | Income | |||||||||||||||||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | |||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 7,696,000 | $ | 6,160,000 | $ | 6,417,000 | $ | 161,000 | |||||||||||||||||||||||||
Other | 114,000 | 105,000 | 104,000 | 1,000 | |||||||||||||||||||||||||||||
Commercial real estate | 13,735,000 | 9,629,000 | 9,820,000 | 89,000 | |||||||||||||||||||||||||||||
Commercial construction | 1,266,000 | 852,000 | 3,212,000 | 28,000 | |||||||||||||||||||||||||||||
Residential real estate | 691,000 | 650,000 | 472,000 | ||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 827,000 | 817,000 | 758,000 | ||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | 3,519,000 | 1,193,000 | $ | 237,000 | 986,000 | 23,000 | |||||||||||||||||||||||||||
Other | 1,915,000 | 911,000 | 32,000 | 1,116,000 | 38,000 | ||||||||||||||||||||||||||||
Commercial real estate | 8,097,000 | 5,899,000 | 94,000 | 3,381,000 | 35,000 | ||||||||||||||||||||||||||||
Commercial construction | 469,000 | 48,000 | |||||||||||||||||||||||||||||||
Residential real estate | — | — | — | 46,000 | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | — | — | — | 86,000 | |||||||||||||||||||||||||||||
$ | 37,860,000 | $ | 26,216,000 | $ | 363,000 | $ | 26,867,000 | $ | 423,000 | ||||||||||||||||||||||||
During the nine months ended September 30, 2013, no interest income was recognized on a cash basis. | |||||||||||||||||||||||||||||||||
At and for the year ended December 31, 2012 | |||||||||||||||||||||||||||||||||
Unpaid | Allowance for | Average | Interest | ||||||||||||||||||||||||||||||
Principal | Recorded | Loan Losses | Recorded | Income | |||||||||||||||||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | |||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 9,689,000 | $ | 6,557,000 | $ | 4,221,000 | $ | 92,000 | |||||||||||||||||||||||||
Other | 424,000 | 146,000 | 109,000 | 5,000 | |||||||||||||||||||||||||||||
Commercial real estate | 17,211,000 | 12,149,000 | 10,054,000 | 158,000 | |||||||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Commercial | 7,300,000 | 6,029,000 | 6,041,000 | 53,000 | |||||||||||||||||||||||||||||
Residential | — | — | — | — | |||||||||||||||||||||||||||||
Residential real estate | 451,000 | 413,000 | 393,000 | — | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 834,000 | 800,000 | 922,000 | — | |||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | 965,000 | 781,000 | $ | 176,000 | 2,589,000 | 25,000 | |||||||||||||||||||||||||||
Other | 1,163,000 | 1,157,000 | 75,000 | 2,195,000 | 43,000 | ||||||||||||||||||||||||||||
Commercial real estate | 923,000 | 654,000 | 15,000 | 2,940,000 | 18,000 | ||||||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Commercial | — | — | — | 1,224,000 | — | ||||||||||||||||||||||||||||
Residential | — | — | — | 596,000 | — | ||||||||||||||||||||||||||||
Residential real estate | — | — | — | 239,000 | — | ||||||||||||||||||||||||||||
$ | 38,960,000 | $ | 28,686,000 | $ | 266,000 | $ | 31,523,000 | $ | 394,000 | ||||||||||||||||||||||||
During the year ended December 31, 2012, no interest income was recognized on a cash basis. | |||||||||||||||||||||||||||||||||
The following table presents the aging of the recorded investment in past due loans by class of loans as of September 30, 2013 and December 31, 2012. Nonaccrual loans are included in the disclosure by payment status. | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Greater than | Loans | ||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total | Not | |||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Past Due | Total | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | — | $ | — | $ | 1,623,000 | $ | 1,623,000 | $ | 53,286,000 | $ | 54,909,000 | |||||||||||||||||||||
Other | — | 247,000 | 105,000 | 352,000 | 25,493,000 | 25,845,000 | |||||||||||||||||||||||||||
Commercial real estate | — | — | 8,640,000 | 8,640,000 | 244,444,000 | 253,084,000 | |||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 2,985,000 | 2,985,000 | |||||||||||||||||||||||||||
Residential real estate | — | 136,000 | 650,000 | 786,000 | 74,984,000 | 75,770,000 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | — | — | 674,000 | 674,000 | 25,384,000 | 26,058,000 | |||||||||||||||||||||||||||
Other | — | — | — | — | 598,000 | 598,000 | |||||||||||||||||||||||||||
Other | — | — | — | — | 90,000 | 90,000 | |||||||||||||||||||||||||||
Total | $ | — | $ | 383,000 | $ | 11,692,000 | $ | 12,075,000 | $ | 427,264,000 | $ | 439,339,000 | |||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Greater than | Loans | ||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total | Not | |||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Past Due | Total | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 101,000 | $ | 179,000 | $ | 2,674,000 | $ | 2,954,000 | $ | 55,206,000 | $ | 58,160,000 | |||||||||||||||||||||
Other | 25,000 | 98,000 | 52,000 | 175,000 | 31,079,000 | 31,254,000 | |||||||||||||||||||||||||||
Commercial real estate | 2,582,000 | — | 9,023,000 | 11,605,000 | 231,158,000 | 242,763,000 | |||||||||||||||||||||||||||
Commercial construction | — | 460,000 | 815,000 | 1,275,000 | 8,049,000 | 9,324,000 | |||||||||||||||||||||||||||
Residential real estate | 161,000 | — | 413,000 | 574,000 | 66,626,000 | 67,200,000 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 67,000 | — | 647,000 | 714,000 | 30,268,000 | 30,982,000 | |||||||||||||||||||||||||||
Other | — | — | — | — | 624,000 | 624,000 | |||||||||||||||||||||||||||
Other | — | — | — | — | 116,000 | 116,000 | |||||||||||||||||||||||||||
Total | $ | 2,936,000 | $ | 737,000 | $ | 13,624,000 | $ | 17,297,000 | $ | 423,126,000 | $ | 440,423,000 | |||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, the Corporation had $12.1 million and $11.7 million, respectively, of loans the terms of which have been modified in troubled debt restructurings. Of these loans, $11.0 million and $10.4 million were performing in accordance with their terms, as modified, at September 30, 2013 and December 31, 2012, respectively. The remaining troubled debt restructurings are reported as nonaccrual loans. Specific reserves of $221,000 and $246,000 have been allocated for the troubled debt restructurings at September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013 and December 31, 2012, the Corporation has committed $600,000 and $241,000 respectively, of additional funds to a single customer with an outstanding construction loan that is classified as a troubled debt restructuring. | |||||||||||||||||||||||||||||||||
In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Corporation’s internal underwriting policy. | |||||||||||||||||||||||||||||||||
The following table presents loans, by class, that were modified as troubled debt restructurings that occurred during the three and nine months ended September 30, 2013: | |||||||||||||||||||||||||||||||||
For the three months ended September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | ||||||||||||||||||||||||||||||
Number | Modification | Modification | Number | Modification | Modification | ||||||||||||||||||||||||||||
of | Recorded | Recorded | of | Recorded | Recorded | ||||||||||||||||||||||||||||
Loans | Investment | Investment | Loans | Investment | Investment | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | — | $ | — | $ | — | 6 | $ | 1,581,000 | $ | 1,581,000 | |||||||||||||||||||||||
Other | — | — | — | 4 | 660,000 | 660,000 | |||||||||||||||||||||||||||
Commercial real estate | 1 | 1,994,000 | 1,994,000 | — | — | — | |||||||||||||||||||||||||||
Commercial construction | — | — | — | 1 | 300,000 | 300,000 | |||||||||||||||||||||||||||
Total troubled debt restructurings | 1 | $ | 1,994,000 | $ | 1,994,000 | 11 | $ | 2,541,000 | $ | 2,541,000 | |||||||||||||||||||||||
For the nine months ended September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | ||||||||||||||||||||||||||||||
Number | Modification | Modification | Number | Modification | Modification | ||||||||||||||||||||||||||||
of | Recorded | Recorded | of | Recorded | Recorded | ||||||||||||||||||||||||||||
Loans | Investment | Investment | Loans | Investment | Investment | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | — | $ | — | $ | — | 8 | $ | 1,806,000 | $ | 1,806,000 | |||||||||||||||||||||||
Other | 1 | 17,000 | 17,000 | 5 | 3,735,000 | 3,735,000 | |||||||||||||||||||||||||||
Commercial real estate | 1 | 1,994,000 | 1,994,000 | — | — | — | |||||||||||||||||||||||||||
Commercial construction | — | — | — | 1 | 300,000 | 300,000 | |||||||||||||||||||||||||||
Total troubled debt restructurings | 2 | $ | 2,011,000 | $ | 2,011,000 | 14 | $ | 5,841,000 | $ | 5,841,000 | |||||||||||||||||||||||
One loan was modified as a trouble debt restructuring during the three months ended September 30, 2013. During the nine months ended September 30, 2013, the terms of two loans were modified as troubled debt restructurings. The modification of the terms of a $17,000 loan represented a term out of a remaining balance on a matured loan. The modification of the terms of a $2.0 million loan represented a period of principal forbearance as well as some principal forgiveness, which is partially contingent on three years of satisfactory performance under the forbearance agreement. | |||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2013, the troubled debt restructurings described above resulted in a net reduction in the allowance for loan losses of $300,000. Charge-offs for the nine months ended September 30, 2013 related to troubled debt restructurings totaled $1,121,000. | |||||||||||||||||||||||||||||||||
A loan is considered to be in payment default once it is contractually 90 days past due under the modified terms. In the nine months ended September 30, 2013, there have been no troubled debt restructured loans that have defaulted since their modification. | |||||||||||||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||||||
The Corporation categorizes certain loans into risk categories based on relevant information about the ability of the borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial, commercial real estate and commercial construction loans. This analysis is performed at the time the loan is originated and annually thereafter. The Corporation uses the following definitions for risk ratings. | |||||||||||||||||||||||||||||||||
Special Mention – A Special Mention asset has potential weaknesses that deserve management’s close attention, which, if left uncorrected, may result in deterioration of the repayment prospects for the asset or the Bank’s credit position at some future date. Special Mention assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. While potentially weak, the borrower is currently marginally acceptable and loss of principal or interest is not presently envisioned. | |||||||||||||||||||||||||||||||||
Substandard – Substandard loans are inadequately protected by the current net worth and paying capacity of the borrower or by the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the repayment and 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. | |||||||||||||||||||||||||||||||||
Doubtful – A Doubtful loan has all of the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable or improbable. The likelihood of loss is extremely high, but because of certain important and reasonably specific factors, an estimated loss is deferred until a more exact status can be determined. | |||||||||||||||||||||||||||||||||
Loss – A loan classified Loss is considered uncollectible and of such little value that its continuance as an asset is not warranted. This classification does not necessarily mean that an asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off a basically worthless asset even though partial recovery may be effected in the future. | |||||||||||||||||||||||||||||||||
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of September 30, 2013 and December 31, 2012, and based on the most recent analysis performed at those times, the risk category of loans by class is as follows: | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 41,666,000 | $ | 9,092,000 | $ | 4,151,000 | $ | — | $ | — | $ | 54,909,000 | |||||||||||||||||||||
Other | 23,459,000 | 1,525,000 | 834,000 | 27,000 | — | 25,845,000 | |||||||||||||||||||||||||||
Commercial real estate | 225,736,000 | 12,565,000 | 12,662,000 | 2,121,000 | — | 253,084,000 | |||||||||||||||||||||||||||
Commercial construction | 972,000 | 2,013,000 | — | — | — | 2,985,000 | |||||||||||||||||||||||||||
Total | $ | 291,833,000 | $ | 25,195,000 | $ | 17,647,000 | $ | 2,148,000 | $ | — | $ | 336,823,000 | |||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 47,524,000 | $ | 7,368,000 | $ | 3,268,000 | $ | — | $ | — | $ | 58,160,000 | |||||||||||||||||||||
Other | 29,484,000 | 1,508,000 | 185,000 | 77,000 | — | 31,254,000 | |||||||||||||||||||||||||||
Commercial real estate | 215,158,000 | 16,003,000 | 9,007,000 | 2,595,000 | — | 242,763,000 | |||||||||||||||||||||||||||
Commercial construction | 3,294,000 | 2,950,000 | 3,080,000 | — | — | 9,324,000 | |||||||||||||||||||||||||||
Total | $ | 295,460,000 | $ | 27,829,000 | $ | 15,540,000 | $ | 2,672,000 | $ | — | $ | 341,501,000 | |||||||||||||||||||||
The Corporation considers the performance of the loan portfolio and its impact on the allowance for loans losses. For residential real estate and consumer loan segments, the Corporation also evaluates credit quality based on payment activity. The following table presents the recorded investment in residential real estate and consumer loans based on payment activity as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Past Due and | |||||||||||||||||||||||||||||||||
Current | Nonaccrual | Total | |||||||||||||||||||||||||||||||
Residential real estate | $ | 74,983,000 | $ | 786,000 | $ | 75,769,000 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 25,384,000 | 674,000 | 26,058,000 | ||||||||||||||||||||||||||||||
Other | 598,000 | — | 598,000 | ||||||||||||||||||||||||||||||
Total | $ | 100,965,000 | $ | 1,460,000 | $ | 102,425,000 | |||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Past Due and | |||||||||||||||||||||||||||||||||
Current | Nonaccrual | Total | |||||||||||||||||||||||||||||||
Residential real estate | $ | 66,626,000 | $ | 574,000 | $ | 67,200,000 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 30,268,000 | 714,000 | 30,982,000 | ||||||||||||||||||||||||||||||
Other | 624,000 | — | 624,000 | ||||||||||||||||||||||||||||||
Total | $ | 97,518,000 | $ | 1,288,000 | $ | 98,806,000 | |||||||||||||||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Note 4. Fair Value of Financial Instruments | |||||||||||||||||
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: | |||||||||||||||||
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | |||||||||||||||||
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | |||||||||||||||||
The fair values of investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values of investment securities are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). As the Corporation is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Corporation compares the prices received from the pricing service to a secondary pricing source. The Corporation’s internal price verification procedures have not historically resulted in adjustment in the prices obtained from the pricing service. | |||||||||||||||||
The interest rate swaps are reported at fair values obtained from brokers who utilize internal models with observable market data inputs to estimate the values of these instruments (Level 2 inputs). | |||||||||||||||||
The Corporation measures impairment of collateralized loans and other real estate owned (“OREO”) based on the estimated fair value of the collateral less estimated costs to sell the collateral, incorporating assumptions that experienced parties might use in estimating the value of such collateral (Level 3 inputs). At the time a loan or OREO is considered impaired, it is valued at the lower of cost or fair value. Generally, impaired loans carried at fair value have been partially charged-off or receive specific allocations of the allowance for loan losses. OREO is initially recorded at fair value less estimated selling costs. Subsequent adjustments to the OREO carrying value are recorded in a specific valuation allowance for OREO. For collateral dependent loans and OREO, fair value is commonly based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, the net book value recorded for the collateral on the borrower’s financial statements, or aging reports. Collateral is then adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the borrower and borrower’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. | |||||||||||||||||
Appraisals are generally obtained to support the fair value of collateral. Appraisals for both collateral-dependent impaired loans and OREO are performed by licensed appraisers whose qualifications and licenses have been reviewed and verified by the Corporation. The Corporation utilizes a third party to order appraisals and, once received, reviews the assumptions and approaches utilized in the appraisal as well as the resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. | |||||||||||||||||
Real estate appraisals typically incorporate measures such as recent sales prices for comparable properties. In addition, appraisers may make adjustments to the sales price of the comparable properties as deemed appropriate based on the age, condition or general characteristics of the subject property. Management generally applies a 12% discount to real estate appraised values to cover disposition / selling costs and to reflect the potential price reductions in the market necessary to complete an expedient transaction and to factor in the impact of the perception that a transaction being completed by a bank may result in further price reduction pressure. | |||||||||||||||||
Assets and Liabilities Measured on a Recurring Basis | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below: | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||
Carrying | Assets | Inputs | Inputs | ||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
At September 30, 2013 | |||||||||||||||||
Assets: | |||||||||||||||||
Available for sale securities | |||||||||||||||||
U.S. government - | |||||||||||||||||
sponsored agencies | $ | 39,334,000 | $ | — | $ | 39,334,000 | $ | — | |||||||||
Obligations of state and | |||||||||||||||||
political subdivisions | 13,478,000 | — | 13,478,000 | — | |||||||||||||
Mortgage-backed | |||||||||||||||||
securities - residential | 114,446,000 | — | 114,446,000 | — | |||||||||||||
Asset-backed securities | 9,826,000 | 9,826,000 | |||||||||||||||
Corporate debt | 2,916,000 | 2,916,000 | |||||||||||||||
Other equity investments | 3,411,000 | 3,351,000 | 60,000 | — | |||||||||||||
Total available for | |||||||||||||||||
sale securities | $ | 183,411,000 | $ | 3,351,000 | $ | 180,060,000 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap | $ | 614,000 | $ | — | $ | 614,000 | $ | — | |||||||||
At December 31, 2012 | |||||||||||||||||
Assets: | |||||||||||||||||
Available for sale securities | |||||||||||||||||
U.S. Treasuries | $ | 4,006,000 | $ | 4,006,000 | $ | — | $ | — | |||||||||
U.S. government - | |||||||||||||||||
sponsored agencies | 37,255,000 | — | 37,255,000 | — | |||||||||||||
Obligations of state and | |||||||||||||||||
political subdivisions | 14,170,000 | — | 14,170,000 | — | |||||||||||||
Mortgage-backed | |||||||||||||||||
securities - residential | 105,428,000 | — | 105,428,000 | — | |||||||||||||
Asset-backed securities | 9,884,000 | 9,884,000 | |||||||||||||||
Corporate debt | 495,000 | 495,000 | |||||||||||||||
Other equity investments | 3,462,000 | 3,402,000 | 60,000 | — | |||||||||||||
Total available for | |||||||||||||||||
sale securities | $ | 174,700,000 | $ | 7,408,000 | $ | 167,292,000 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap | $ | 812,000 | $ | — | $ | 812,000 | $ | — | |||||||||
There were no transfers of assets between Level 1 and Level 2 during the three and nine months ended September 30, 2013 or during the year ended December 31, 2012. There were no changes to the valuation techniques for fair value measurements as of September 30, 2013 and December 31, 2012. | |||||||||||||||||
Assets and Liabilities Measured on a Non-Recurring Basis | |||||||||||||||||
Assets and liabilities measured at fair value on a non-recurring basis are summarized below: | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||
in Active | Other | Significant | |||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
At September 30, 2013 | |||||||||||||||||
Assets: | |||||||||||||||||
Impaired loans | |||||||||||||||||
Commercial: | |||||||||||||||||
Secured by real estate | $ | 6,930,000 | $ | — | $ | — | $ | 6,930,000 | |||||||||
Other | — | — | — | — | |||||||||||||
Commercial real estate | 13,096,000 | — | — | 13,096,000 | |||||||||||||
Commercial construction | 852,000 | — | — | 852,000 | |||||||||||||
Residential real estate | 650,000 | — | — | 650,000 | |||||||||||||
Consumer | |||||||||||||||||
Secured by real estate | 817,000 | — | — | 817,000 | |||||||||||||
Other Real Estate Owned | 470,000 | 470,000 | |||||||||||||||
$ | 22,815,000 | $ | — | $ | — | $ | 22,815,000 | ||||||||||
At December 31, 2012 | |||||||||||||||||
Assets: | |||||||||||||||||
Impaired loans | |||||||||||||||||
Commercial: | |||||||||||||||||
Secured by real estate | $ | 6,490,000 | $ | — | $ | — | $ | 6,490,000 | |||||||||
Other | — | — | — | — | |||||||||||||
Commercial real estate | 10,445,000 | — | — | 10,445,000 | |||||||||||||
Commercial construction | 4,373,000 | — | — | 4,373,000 | |||||||||||||
Residential real estate | 413,000 | — | — | 413,000 | |||||||||||||
Consumer | |||||||||||||||||
Secured by real estate | 800,000 | — | — | 800,000 | |||||||||||||
Other Real Estate Owned | 1,058,000 | 1,058,000 | |||||||||||||||
$ | 23,579,000 | $ | — | $ | — | $ | 23,579,000 | ||||||||||
Collateral-dependent impaired loans measured for impairment using the fair value of the collateral had a recorded investment of $22,663,000, with a valuation allowance of $318,000, resulting in an increase of the provision for loan losses of $517,000 and $2,985,000 for the three and nine months ended September 30, 2013. | |||||||||||||||||
Other real estate owned had a recorded investment value of $480,000 with a $10,000 valuation allowance at September 30, 2013. The $10,000 valuation allowance was recorded during the nine months ended September 30, 2013. At December 31, 2012, other real estate owned had a recorded investment value of $1,058,000 with no valuation allowance. | |||||||||||||||||
For the Level 3 assets measured at fair value on a non-recurring basis at September 30, 2013, the significant unobservable inputs used in the fair value measurements were as follows: | |||||||||||||||||
Fair | |||||||||||||||||
Assets | Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||
Impaired loans | $ | 22,345,000 | Comparable real estate sales and / or the income approach. | Adjustments for differences between comparable sales and income data available. | 5% | ||||||||||||
Estimated selling costs. | 7% | ||||||||||||||||
Other real estate owned | $ | 470,000 | Comparable real estate sales and / or the income approach. | Adjustments for differences between comparable sales and income data available. | 5% - 10% | ||||||||||||
Estimated selling costs. | 7% | ||||||||||||||||
Fair value estimates for the Corporation’s financial instruments are summarized below: | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||
in Active | Other | Significant | |||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
At September 30, 2013 | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 15,400,000 | $ | 15,400,000 | $ | — | $ | — | |||||||||
Securities available for sale | 183,411,000 | 3,351,000 | 180,060,000 | — | |||||||||||||
Securities held to maturity | 26,161,000 | — | 27,512,000 | — | |||||||||||||
Mortgage loans held for sale | 910,000 | — | 910,000 | — | |||||||||||||
Loans, net | 428,799,000 | — | — | 436,861,000 | |||||||||||||
Accrued interest receivable | 2,058,000 | — | 706,000 | 1,351,000 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | 577,156,000 | 439,719,000 | 137,977,000 | — | |||||||||||||
FHLB-NY advances | 40,100,000 | — | 40,483,000 | — | |||||||||||||
Securities sold under | |||||||||||||||||
agreements to repurchase | 8,044,000 | — | 8,367,000 | — | |||||||||||||
Subordinated debenture | 7,217,000 | — | — | 7,209,000 | |||||||||||||
Accrued interest payable | 373,000 | 2,000 | 353,000 | 18,000 | |||||||||||||
Interest rate swap | 614,000 | — | 614,000 | — | |||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||
in Active | Other | Significant | |||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
At December 31, 2012 | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 21,016,000 | $ | 21,016,000 | $ | — | $ | — | |||||||||
Securities available for sale | 174,700,000 | 7,408,000 | 167,292,000 | — | |||||||||||||
Securities held to maturity | 29,718,000 | — | 31,768,000 | — | |||||||||||||
Mortgage loans held for sale | 784,000 | — | 784,000 | — | |||||||||||||
Loans, net | 429,832,000 | — | — | 449,041,000 | |||||||||||||
Accrued interest receivable | 2,372,000 | 2,000 | 908,000 | 1,462,000 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | 590,254,000 | 434,569,000 | 157,219,000 | — | |||||||||||||
FHLB-NY advances | 25,000,000 | — | 25,825,000 | — | |||||||||||||
Securities sold under | |||||||||||||||||
agreements to repurchase | 7,343,000 | — | 7,883,000 | — | |||||||||||||
Subordinated debenture | 7,217,000 | — | — | 7,112,000 | |||||||||||||
Accrued interest payable | 560,000 | 1,000 | 540,000 | 19,000 | |||||||||||||
Interest rate swap | 812,000 | — | 812,000 | — | |||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instrument: | |||||||||||||||||
Cash and cash equivalents – The carrying amount approximates fair value and is classified as Level 1. | |||||||||||||||||
Securities available-for-sale and held to maturity – The methods for determining fair values were described previously. | |||||||||||||||||
Mortgage loans held for sale – Loans in this category have been committed for sale to third party investors at the current carrying amount resulting in a Level 2 classification. | |||||||||||||||||
Loans, net – Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential and commercial mortgages, commercial and other installment loans. The fair value of loans is estimated by discounting cash flows using estimated market discount rates which reflect the credit and interest rate risk inherent in the loans resulting in a Level 3 classification. Fair values estimated in this manner do not fully incorporate an exit-price approach to fair value, but instead are based on a comparison to current market rates for comparable loans. | |||||||||||||||||
Accrued interest receivable – The carrying amount approximates fair value. | |||||||||||||||||
Deposits – The fair value of deposits, with no stated maturity, such as noninterest-bearing demand deposits, savings, NOW and money market accounts, is equal to the amount payable on demand resulting in a Level 1 classification. The fair value of certificates of deposit is based on the discounted value of cash flows resulting in a Level 2 classification. The discount rate is estimated using market discount rates which reflect interest rate risk inherent in the certificates of deposit. | |||||||||||||||||
FHLB-NY advances – With respect to FHLB-NY borrowings, the carrying amount of the borrowings which mature in one day approximates fair value. For borrowings with a longer maturity, the fair value is based on the discounted value of cash flows. The discount rate is estimated using market discount rates which reflect the interest rate risk and credit risk inherent in the term borrowings resulting in a Level 2 classification. | |||||||||||||||||
Securities sold under agreements to repurchase – The carrying value approximates fair value due to the relatively short time before maturity resulting in a Level 2 classification. | |||||||||||||||||
Subordinated debenture – The fair value of the subordinated debenture is based on the discounted value of the cash flows. The discount rate is estimated using market rates which reflect the interest rate and credit risk inherent in the debenture resulting in a Level 3 classification. | |||||||||||||||||
Accrued interest payable – The carrying amount approximates fair value. | |||||||||||||||||
Interest rate swap – The fair value of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). | |||||||||||||||||
Commitments to extend credit – The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present credit worthiness of the counter parties. At September 30, 2013 and December 31, 2012, the fair value of such commitments were not material. | |||||||||||||||||
Limitations | |||||||||||||||||
The preceding fair value estimates were made at September 30, 2013 and December 31, 2012 based on pertinent market data and relevant information concerning the financial instruments. These estimates do not include any premiums or discounts that could result from an offer to sell at one time the Corporation's entire holdings of a particular financial instrument or category thereof. Since no market exists for a substantial portion of the Corporation's financial instruments, fair value estimates were necessarily based on judgments with respect to future expected loss experience, current economic conditions, risk assessments of various financial instruments, and other factors. Given the subjective nature of these estimates, the uncertainties surrounding them and the matters of significant judgment that must be applied, these fair value estimates cannot be calculated with precision. Modifications in such assumptions could meaningfully alter these estimates. | |||||||||||||||||
Since these fair value approximations were made solely for on- and off-balance sheet financial instruments at September 30, 2013 and December 31, 2012, no attempt was made to estimate the value of anticipated future business. Furthermore, certain tax implications related to the realization of unrealized gains and losses could have a substantial impact on these fair value estimates and have not been incorporated into the estimates. | |||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Note 5. Earnings Per Share | |||||||||||||||||
Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Common stock equivalents are not included in the calculation. Diluted earnings per share is computed similar to that of basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potential dilutive common shares were issued. | |||||||||||||||||
The following reconciles the income available to common shareholders (numerator) and the weighted average common stock outstanding (denominator) for both basic and diluted earnings per share. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 522,000 | $ | 328,000 | $ | 1,805,000 | $ | 780,000 | |||||||||
Dividends on preferred stock | 170,000 | 112,000 | 463,000 | 225,000 | |||||||||||||
Net income available to common stockholders | $ | 352,000 | $ | 216,000 | $ | 1,342,000 | $ | 555,000 | |||||||||
Weighted average shares | 5,939,958 | 5,916,123 | 5,935,195 | 5,903,598 | |||||||||||||
Effect of dilutive stock options | N/A | N/A | N/A | N/A | |||||||||||||
Total weighted average dilutive shares | 5,939,958 | 5,916,123 | 5,935,195 | 5,903,598 | |||||||||||||
Basic earnings per common share | $ | 0.06 | $ | 0.04 | $ | 0.23 | $ | 0.09 | |||||||||
Diluted earnings per common share | $ | 0.06 | $ | 0.04 | $ | 0.23 | $ | 0.09 | |||||||||
Stock options to purchase 1,101 and 4,849 shares of common stock were not considered in computing diluted earnings per share for the three and nine months ended September 30, 2013, respectively, because they were antidilutive. For the three and nine months ended September 30, 2012, stock options to purchase 6,983 and 42,321 shares of common stock, respectively, were not considered in computing diluted earnings per share of common stock because they were antidilutive. |
Preferred_Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2013 | |
PreferredStockAbstract | ' |
Preferred Stock | ' |
Note 6. Preferred Stock | |
In connection with the Corporation’s participation in the U.S. Department of the Treasury’s Small Business Lending Fund program (“SBLF”), a $30 billion fund established under the Small Business Jobs Act of 2010 that encourages lending to small businesses by providing capital to qualified community banks with assets of less than $10 billion, on September 1, 2011, the Corporation issued 15,000 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Shares”) to the Treasury for an aggregate purchase price of $15 million, in cash. | |
Using the proceeds of the issuance of the Series B Preferred Shares, the Corporation simultaneously repurchased all 10,000 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A, having a liquidation preference of $1,000 per share (the “Series A Preferred Shares”) previously issued under the Treasury’s Troubled Assets Relief Program (“TARP”) Capital Purchase Program (the “CPP”) for an aggregate purchase price of $10,022,222, in cash, including accrued but unpaid dividends through the date of repurchase. | |
The terms of the Series B Preferred Shares provide for a liquidation preference of $1,000 per share and impose restrictions on the Corporation’s ability to declare or pay dividends or purchase, redeem or otherwise acquire for consideration, shares of the Corporation’s Common Stock and any class or series of stock of the Corporation the terms of which do not expressly provide that such class or series will rank senior to or in parity with the Series B Preferred Shares as to dividend rights and/or rights on liquidation, dissolution or winding up of the Corporation. Specifically, the terms provide for the payment of a non-cumulative quarterly dividend, payable in arrears, which the Corporation accrues as earned over the period that the Series B Preferred Shares are outstanding. The dividend rate can fluctuate on a quarterly basis during the first ten quarters during which the Series B Preferred Shares are outstanding, based upon changes in the level of Qualified Small Business Lending (“QSBL” as defined in the Securities Purchase Agreement) from 1% to 5% per annum and, thereafter, for the eleventh through the first half of the nineteenth dividend periods, from 1% to 7%. In general, the dividend rate decreases as the level of the Bank’s QSBL increases. In the event that the Series B Preferred Shares remain outstanding for more than four and one half years, the dividend rate will be fixed at 9%. Based upon the Bank’s level of QSBL over a baseline level, the dividend rate for the initial dividend period was 1%. Such dividends are not cumulative but the Corporation may only declare and pay dividends on its Common Stock (or any other equity securities junior to the Series B Preferred Stock) if it has declared and paid dividends on the Series B Preferred Shares for the current dividend period and, if, after payment of such dividend, the dollar amount of the Corporation’s Tier 1 Capital would be at least 90% of the Tier 1 Capital on the date of entering into the SBLF program, excluding any subsequent net charge-offs and any redemption of the Series B Preferred Shares (the “Tier 1 Dividend Threshold”). The Tier 1 Dividend Threshold is subject to reduction, beginning on the second anniversary of the issuance and ending on the tenth anniversary, by 10% for each 1% increase in QSBL over the baseline level. | |
In addition, the Series B Preferred Shares are non-voting except in limited circumstances. In the event that the Corporation has not timely declared and paid dividends on the Series B Preferred Shares for six dividend periods or more, whether or not consecutive, and shares of Series B Preferred Stock with an aggregate liquidation preference of at least $25,000,000 are still outstanding, the Treasury may designate two additional directors to be elected to the Corporation’s Board of Directors. Subject to the approval of the Bank’s federal banking regulator, the Federal Reserve, the Corporation may redeem the Series B Preferred Shares at any time at the Corporation’s option, at a redemption price equal to the liquidation preference per share plus the per share amount of any unpaid dividends for the then-current period through the date of the redemption. The Series B Preferred Shares are includable in Tier I capital for regulatory capital. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
Note 7. Accumulated Other Comprehensive Income | |||||||||||||
The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive income for the three and nine months ended September 30, 2013. | |||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||
Components of | |||||||||||||
Accumulated Other Comprehensive Income | Total | ||||||||||||
Unrealized Gains | Accumulated | ||||||||||||
and Losses on | Unrealized Gains | Other | |||||||||||
Available for Sale | and Losses on | Comprehensive | |||||||||||
(AFS) Securities | Derivatives | Loss | |||||||||||
Balance at June 30, 2013 | $ | (2,122,000 | ) | $ | (389,000 | ) | $ | (2,511,000 | ) | ||||
Other comprehensive income before | |||||||||||||
reclassifications | (354,000 | ) | 20,000 | (334,000 | ) | ||||||||
Amounts reclassified from | |||||||||||||
other comprehensive income | — | — | — | ||||||||||
Other comprehensive income, net | (354,000 | ) | 20,000 | (334,000 | ) | ||||||||
Balance at September 30, 2013 | $ | (2,476,000 | ) | $ | (369,000 | ) | $ | (2,845,000 | ) | ||||
For the Nine Months Ended September 30, 2013 | |||||||||||||
Components of | |||||||||||||
Accumulated Other Comprehensive Income | Total | ||||||||||||
Unrealized Gains | Accumulated | ||||||||||||
and Losses on | Unrealized Gains | Other | |||||||||||
Available for Sale | and Losses on | Comprehensive | |||||||||||
(AFS) Securities | Derivatives | Loss | |||||||||||
Balance at December 31, 2012 | $ | 947,000 | $ | (487,000 | ) | $ | 460,000 | ||||||
Other comprehensive income before | |||||||||||||
reclassifications | (3,422,000 | ) | 118,000 | (3,304,000 | ) | ||||||||
Amounts reclassified from | |||||||||||||
other comprehensive income | (1,000 | ) | — | (1,000 | ) | ||||||||
Other comprehensive income, net | (3,423,000 | ) | 118,000 | (3,305,000 | ) | ||||||||
Balance at September 30, 2013 | $ | (2,476,000 | ) | $ | (369,000 | ) | $ | (2,845,000 | ) | ||||
The following table presents amounts reclassified from each component of accumulated other comprehensive income on a gross and net of tax basis for the nine months ended September 30, 2013. | |||||||||||||
Accumulated | |||||||||||||
Other | Income | ||||||||||||
Components of Accumulated Other | Comprehensive | Statement | |||||||||||
Comprehensive Loss | Income | Line Item | |||||||||||
Unrealized gains on AFS securities before tax | $ | 2,000 | Gains on securities transactions, net | ||||||||||
Tax effect | (1,000 | ) | |||||||||||
Total net of tax | 1,000 | ||||||||||||
Total reclassifications, net of tax | $ | 1,000 | |||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Summary Of Significant Accounting Policies Policies | ' |
Principles of consolidation | ' |
Principles of consolidation | |
The consolidated financial statements include the accounts of Stewardship Financial Corporation and its wholly-owned subsidiary, Atlantic Stewardship Bank (the “Bank”), together referred to as “the Corporation”. The Bank includes its wholly-owned subsidiaries, Stewardship Investment Corporation, Stewardship Realty LLC, Atlantic Stewardship Insurance Company, LLC and several other subsidiaries formed to hold title to properties acquired through foreclosure or deed in lieu of foreclosure. The Bank’s subsidiaries have an insignificant impact on the Bank’s daily operations. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. Certain prior period amounts have been reclassified to conform to the current presentation. | |
The consolidated financial statements of the Corporation have been prepared in conformity with GAAP. In preparing the consolidated financial statements, management is required to make estimates and assumptions, based on available information, that affect the amounts reported in the consolidated financial statements and disclosures provided. Actual results could differ significantly from those estimates. | |
Material estimates | ' |
Material estimates | |
Material estimates that are particularly susceptible to significant changes relate to the determination of the allowance for loan losses. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize probable incurred losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions in the market area. | |
Adoption of New Accounting Standards | ' |
Adoption of New Accounting Standards | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, “Comprehensive Income – Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income”. This ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the financial statement where net income is presented or in the accompanying notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The standard is effective prospectively for reporting periods, including interim periods, beginning after December 15, 2012. The adoption of the standard did not have a material effect on the Corporation’s consolidated financial statements. | |
In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (Topic 210): “Disclosures about Offsetting Assets and Liabilities”. This ASU requires an entity to disclose both gross and net information about financial instruments, such as sales and repurchase agreements and reverse sale and repurchase agreements and securities borrowing/lending arrangements, and derivative instruments that are eligible for offset in the statement of financial position and/or subject an enforceable master netting arrangement or similar agreement regardless of whether they are presented net in the financial statements. The standard is effective for annual and interim periods beginning on January 1, 2013, and it is required to be applied retrospectively. The adoption of the standard did not have a material impact on the Corporation’s consolidated financial statements. |
Securities_Availableforsale_an1
Securities - Available-for-sale and Held to Maturity (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Securities - Available-For-Sale And Held To Maturity Tables | ' | ||||||||||||||||||||||||||
Schedule of fair value of securities available for sale and related gross unrealized gains and losses | ' | ||||||||||||||||||||||||||
The fair value of the available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: | |||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 41,298,000 | $ | 24,000 | $ | 1,988,000 | $ | 39,334,000 | |||||||||||||||||||
Obligations of state and political | |||||||||||||||||||||||||||
subdivisions | 13,420,000 | 218,000 | 160,000 | 13,478,000 | |||||||||||||||||||||||
Mortgage-backed securities - residential | 116,350,000 | 534,000 | 2,438,000 | 114,446,000 | |||||||||||||||||||||||
Asset-backed securities (a) | 9,874,000 | 10,000 | 58,000 | 9,826,000 | |||||||||||||||||||||||
Corporate debt | 2,995,000 | 4,000 | 83,000 | 2,916,000 | |||||||||||||||||||||||
Total debt securities | 183,937,000 | 790,000 | 4,727,000 | 180,000,000 | |||||||||||||||||||||||
Other equity investments | 3,512,000 | — | 101,000 | 3,411,000 | |||||||||||||||||||||||
$ | 187,449,000 | $ | 790,000 | $ | 4,828,000 | $ | 183,411,000 | ||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. Treasury | $ | 4,003,000 | $ | 3,000 | $ | — | $ | 4,006,000 | |||||||||||||||||||
U.S. government-sponsored agencies | 37,287,000 | 35,000 | 67,000 | 37,255,000 | |||||||||||||||||||||||
Obligations of state and political | |||||||||||||||||||||||||||
subdivisions | 13,724,000 | 468,000 | 22,000 | 14,170,000 | |||||||||||||||||||||||
Mortgage-backed securities - residential | 104,341,000 | 1,176,000 | 89,000 | 105,428,000 | |||||||||||||||||||||||
Asset-backed securities (a) | 9,874,000 | 22,000 | 12,000 | 9,884,000 | |||||||||||||||||||||||
Corporate debt | 492,000 | 3,000 | — | 495,000 | |||||||||||||||||||||||
Total debt securities | 169,721,000 | 1,707,000 | 190,000 | 171,238,000 | |||||||||||||||||||||||
Other equity investments | 3,425,000 | 37,000 | — | 3,462,000 | |||||||||||||||||||||||
$ | 173,146,000 | $ | 1,744,000 | $ | 190,000 | $ | 174,700,000 | ||||||||||||||||||||
Schedule of held to maturity securities and related unrecognized gains and losses | ' | ||||||||||||||||||||||||||
The following is a summary of the held to maturity securities and related unrecognized gains and losses: | |||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||
Amortized | Gross Unrecognized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 259,000 | $ | 34,000 | — | $ | 293,000 | ||||||||||||||||||||
Obligations of state and political | |||||||||||||||||||||||||||
subdivisions | 20,658,000 | 905,000 | — | 21,563,000 | |||||||||||||||||||||||
Mortgage-backed securities - residential | 5,244,000 | 412,000 | — | 5,656,000 | |||||||||||||||||||||||
$ | 26,161,000 | $ | 1,351,000 | $ | — | $ | 27,512,000 | ||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||
Amortized | Gross Unrecognized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 260,000 | $ | 46,000 | $ | — | $ | 306,000 | |||||||||||||||||||
Obligations of state and political | |||||||||||||||||||||||||||
subdivisions | 22,787,000 | 1,407,000 | — | 24,194,000 | |||||||||||||||||||||||
Mortgage-backed securities - residential | 6,671,000 | 597,000 | — | 7,268,000 | |||||||||||||||||||||||
$ | 29,718,000 | $ | 2,050,000 | $ | — | $ | 31,768,000 | ||||||||||||||||||||
Amortized cost and fair value of the investment securities portfolio by contractual maturity. | ' | ||||||||||||||||||||||||||
The following table presents the amortized cost and fair value of the debt securities portfolio by contractual maturity. | |||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||
Within one year | $ | — | $ | — | |||||||||||||||||||||||
After one year, but within five years | 7,609,000 | 7,553,000 | |||||||||||||||||||||||||
After five years, but within ten years | 30,160,000 | 29,322,000 | |||||||||||||||||||||||||
After ten years | 19,944,000 | 18,853,000 | |||||||||||||||||||||||||
Mortgage-backed securities - residential | 116,350,000 | 114,446,000 | |||||||||||||||||||||||||
Asset-backed securities | 9,874,000 | 9,826,000 | |||||||||||||||||||||||||
Total | $ | 183,937,000 | $ | 180,000,000 | |||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||
Within one year | $ | 4,285,000 | $ | 4,354,000 | |||||||||||||||||||||||
After one year, but within five years | 11,931,000 | 12,569,000 | |||||||||||||||||||||||||
After five years, but within ten years | 4,524,000 | 4,750,000 | |||||||||||||||||||||||||
After ten years | 177,000 | 183,000 | |||||||||||||||||||||||||
Mortgage-backed securities - residential | 5,244,000 | 5,656,000 | |||||||||||||||||||||||||
Total | $ | 26,161,000 | $ | 27,512,000 | |||||||||||||||||||||||
Schedule of Continuous unrealized loss position for investment securities available for sale | ' | ||||||||||||||||||||||||||
The following tables summarize the fair value and unrealized losses of those investment securities which reported an unrealized loss at September 30, 2013 and December 31, 2012, and if the unrealized loss was continuous for the twelve months prior to September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||||
30-Sep-13 | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||
U.S. government- | |||||||||||||||||||||||||||
sponsored agencies | $ | 33,026,000 | $ | (1,988,000 | ) | $ | — | $ | — | $ | 33,026,000 | $ | (1,988,000 | ) | |||||||||||||
Obligations of state and | |||||||||||||||||||||||||||
political subdivisions | 5,476,000 | (146,000 | ) | 868,000 | (14,000 | ) | 6,344,000 | (160,000 | ) | ||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||
securities - residential | 67,110,000 | (2,438,000 | ) | — | — | 67,110,000 | (2,438,000 | ) | |||||||||||||||||||
Asset-backed securities | 8,781,000 | (58,000 | ) | — | — | 8,781,000 | (58,000 | ) | |||||||||||||||||||
Corporate debt | 2,417,000 | (83,000 | ) | — | — | 2,417,000 | (83,000 | ) | |||||||||||||||||||
Other equity investments | 3,351,000 | (101,000 | ) | — | — | 3,351,000 | (101,000 | ) | |||||||||||||||||||
Total temporarily | |||||||||||||||||||||||||||
impaired securities | $ | 120,161,000 | $ | (4,814,000 | ) | $ | 868,000 | $ | (14,000 | ) | $ | 121,029,000 | $ | (4,828,000 | ) | ||||||||||||
31-Dec-12 | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
U.S. government- | |||||||||||||||||||||||||||
sponsored agencies | 20,716,000 | (67,000 | ) | — | — | 20,716,000 | (67,000 | ) | |||||||||||||||||||
Obligations of state and | |||||||||||||||||||||||||||
political subdivisions | 3,257,000 | (22,000 | ) | — | — | 3,257,000 | (22,000 | ) | |||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||
securities - residential | 23,715,000 | (89,000 | ) | — | — | 23,715,000 | (89,000 | ) | |||||||||||||||||||
Asset-backed securities | 3,047,000 | (12,000 | ) | 3,047,000 | (12,000 | ) | |||||||||||||||||||||
Total temporarily | |||||||||||||||||||||||||||
impaired securities | $ | 50,735,000 | $ | (190,000 | ) | $ | — | $ | — | $ | 50,735,000 | $ | (190,000 | ) | |||||||||||||
Loans_and_Nonperforming_Loans_
Loans and Nonperforming Loans (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Loans And Nonperforming Loans Tables | ' | ||||||||||||||||||||||||||||||||
Loan Portfolio Schedule | ' | ||||||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, respectively, the loan portfolio consisted of the following: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 54,909,000 | $ | 58,160,000 | |||||||||||||||||||||||||||||
Other | 25,845,000 | 31,254,000 | |||||||||||||||||||||||||||||||
Commercial real estate | 253,084,000 | 242,763,000 | |||||||||||||||||||||||||||||||
Commercial construction | 2,985,000 | 9,324,000 | |||||||||||||||||||||||||||||||
Residential real estate | 75,770,000 | 67,200,000 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 26,058,000 | 30,982,000 | |||||||||||||||||||||||||||||||
Other | 598,000 | 624,000 | |||||||||||||||||||||||||||||||
90,000 | 116,000 | ||||||||||||||||||||||||||||||||
Total gross loans | 439,339,000 | 440,423,000 | |||||||||||||||||||||||||||||||
Less: Deferred loan fees, net of costs | (164,000 | ) | (50,000 | ) | |||||||||||||||||||||||||||||
Allowance for loan losses | 10,704,000 | 10,641,000 | |||||||||||||||||||||||||||||||
10,540,000 | 10,591,000 | ||||||||||||||||||||||||||||||||
Loans, net | $ | 428,799,000 | $ | 429,832,000 | |||||||||||||||||||||||||||||
Schedule of Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||
Activity in the allowance for loan losses is summarized as follows: | |||||||||||||||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Balance, | Provision | Recoveries | Balance, | ||||||||||||||||||||||||||||||
beginning | charged | Loans | of loans | end | |||||||||||||||||||||||||||||
of period | to operations | charged off | charged off | of period | |||||||||||||||||||||||||||||
Commercial | $ | 3,985,000 | $ | 508,000 | $ | 274,000 | $ | 44,000 | $ | 4,263,000 | |||||||||||||||||||||||
Commercial real estate | 5,598,000 | 518,000 | 672,000 | 118,000 | 5,562,000 | ||||||||||||||||||||||||||||
Construction | 304,000 | (191,000 | ) | — | — | 113,000 | |||||||||||||||||||||||||||
Residential real estate | 434,000 | 23,000 | 57,000 | — | 400,000 | ||||||||||||||||||||||||||||
Consumer | 410,000 | 23,000 | 142,000 | — | 291,000 | ||||||||||||||||||||||||||||
Other loans | 1,000 | 1,000 | — | — | 2,000 | ||||||||||||||||||||||||||||
Unallocated | 55,000 | 18,000 | — | — | 73,000 | ||||||||||||||||||||||||||||
Total | $ | 10,787,000 | $ | 900,000 | $ | 1,145,000 | $ | 162,000 | $ | 10,704,000 | |||||||||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Balance, | Provision | Recoveries | Balance, | ||||||||||||||||||||||||||||||
beginning | charged | Loans | of loans | end | |||||||||||||||||||||||||||||
of period | to operations | charged off | charged off | of period | |||||||||||||||||||||||||||||
Commercial | $ | 4,832,000 | $ | 231,000 | $ | 922,000 | $ | 122,000 | $ | 4,263,000 | |||||||||||||||||||||||
Commercial real estate | 4,936,000 | 2,939,000 | 2,431,000 | 118,000 | 5,562,000 | ||||||||||||||||||||||||||||
Construction | 169,000 | (58,000 | ) | 24,000 | 26,000 | 113,000 | |||||||||||||||||||||||||||
Residential real estate | 308,000 | 149,000 | 57,000 | — | 400,000 | ||||||||||||||||||||||||||||
Consumer | 352,000 | 64,000 | 145,000 | 20,000 | 291,000 | ||||||||||||||||||||||||||||
Other loans | 3,000 | (3,000 | ) | — | 2,000 | 2,000 | |||||||||||||||||||||||||||
Unallocated | 41,000 | 28,000 | — | 4,000 | 73,000 | ||||||||||||||||||||||||||||
Total | $ | 10,641,000 | $ | 3,350,000 | $ | 3,579,000 | $ | 292,000 | $ | 10,704,000 | |||||||||||||||||||||||
For the three months ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Balance, | Provision | Recoveries | Balance, | ||||||||||||||||||||||||||||||
beginning | charged | Loans | of loans | end | |||||||||||||||||||||||||||||
of period | to operations | charged off | charged off | of period | |||||||||||||||||||||||||||||
Commercial | $ | 6,023,000 | $ | 1,620,000 | $ | 865,000 | $ | 167,000 | $ | 6,945,000 | |||||||||||||||||||||||
Commercial real estate | 4,527,000 | 542,000 | 606,000 | — | 4,463,000 | ||||||||||||||||||||||||||||
Construction | 514,000 | (137,000 | ) | 20,000 | 3,000 | 360,000 | |||||||||||||||||||||||||||
Residential real estate | 392,000 | 18,000 | 15,000 | — | 395,000 | ||||||||||||||||||||||||||||
Consumer | 437,000 | (28,000 | ) | 1,000 | 1,000 | 409,000 | |||||||||||||||||||||||||||
Other loans | 4,000 | (2,000 | ) | 1,000 | 1,000 | 2,000 | |||||||||||||||||||||||||||
Unallocated | 37,000 | (13,000 | ) | — | — | 24,000 | |||||||||||||||||||||||||||
Total | $ | 11,934,000 | $ | 2,000,000 | $ | 1,508,000 | $ | 172,000 | $ | 12,598,000 | |||||||||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Balance, | Provision | Recoveries | Balance, | ||||||||||||||||||||||||||||||
beginning | charged | Loans | of loans | end | |||||||||||||||||||||||||||||
of period | to operations | charged off | charged off | of period | |||||||||||||||||||||||||||||
Commercial | $ | 5,368,000 | $ | 4,581,000 | $ | 3,221,000 | $ | 217,000 | $ | 6,945,000 | |||||||||||||||||||||||
Commercial real estate | 4,943,000 | 1,964,000 | 2,445,000 | 1,000 | 4,463,000 | ||||||||||||||||||||||||||||
Construction | 480,000 | 42,000 | 165,000 | 3,000 | 360,000 | ||||||||||||||||||||||||||||
Residential real estate | 303,000 | 107,000 | 15,000 | — | 395,000 | ||||||||||||||||||||||||||||
Consumer | 498,000 | (42,000 | ) | 48,000 | 1,000 | 409,000 | |||||||||||||||||||||||||||
Other loans | 2,000 | (1,000 | ) | 1,000 | 2,000 | 2,000 | |||||||||||||||||||||||||||
Unallocated | 10,000 | 14,000 | — | — | 24,000 | ||||||||||||||||||||||||||||
Total | $ | 11,604,000 | $ | 6,665,000 | $ | 5,895,000 | $ | 224,000 | $ | 12,598,000 | |||||||||||||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Residential | Other | ||||||||||||||||||||||||||||||
Commercial | Real Estate | Construction | Real Estate | Consumer | Loans | Unallocated | Total | ||||||||||||||||||||||||||
Allowance for loan | |||||||||||||||||||||||||||||||||
losses: | |||||||||||||||||||||||||||||||||
Ending allowance | |||||||||||||||||||||||||||||||||
balance attributable | |||||||||||||||||||||||||||||||||
to loans | |||||||||||||||||||||||||||||||||
Individually | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | $ | 269,000 | $ | 94,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 363,000 | |||||||||||||||||
Collectively | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | 3,994,000 | 5,468,000 | 113,000 | 400,000 | 291,000 | 2,000 | 73,000 | 10,341,000 | |||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||
allowance | |||||||||||||||||||||||||||||||||
balance | $ | 4,263,000 | $ | 5,562,000 | $ | 113,000 | $ | 400,000 | $ | 291,000 | $ | 2,000 | $ | 73,000 | $ | 10,704,000 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||
individually | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | $ | 8,369,000 | $ | 15,528,000 | $ | 852,000 | $ | 650,000 | $ | 817,000 | $ | — | $ | — | $ | 26,216,000 | |||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||
collectively | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | 72,385,000 | 237,556,000 | 2,133,000 | 75,120,000 | 25,839,000 | 90,000 | — | 413,123,000 | |||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||
loan balance | $ | 80,754,000 | $ | 253,084,000 | $ | 2,985,000 | $ | 75,770,000 | $ | 26,656,000 | $ | 90,000 | $ | — | $ | 439,339,000 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Commercial | Commercial | Residential | Other | ||||||||||||||||||||||||||||||
Commercial | Real Estate | Construction | Real Estate | Consumer | Loans | Unallocated | Total | ||||||||||||||||||||||||||
Allowance for loan | |||||||||||||||||||||||||||||||||
losses: | |||||||||||||||||||||||||||||||||
Ending allowance | |||||||||||||||||||||||||||||||||
balance attributable | |||||||||||||||||||||||||||||||||
to loans | |||||||||||||||||||||||||||||||||
Individually | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | $ | 251,000 | $ | 15,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 266,000 | |||||||||||||||||
Collectively | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | 4,581,000 | 4,921,000 | 169,000 | 308,000 | 352,000 | 3,000 | 41,000 | 10,375,000 | |||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||
allowance | |||||||||||||||||||||||||||||||||
balance | $ | 4,832,000 | $ | 4,936,000 | $ | 169,000 | $ | 308,000 | $ | 352,000 | $ | 3,000 | $ | 41,000 | $ | 10,641,000 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||
individually | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | $ | 8,641,000 | $ | 12,803,000 | $ | 6,029,000 | $ | 413,000 | $ | 800,000 | $ | — | $ | — | $ | 28,686,000 | |||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||
collectively | |||||||||||||||||||||||||||||||||
evaluated for | |||||||||||||||||||||||||||||||||
impairment | 80,773,000 | 229,960,000 | 3,295,000 | 66,787,000 | 30,806,000 | 116,000 | — | 411,737,000 | |||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||
loan balance | $ | 89,414,000 | $ | 242,763,000 | $ | 9,324,000 | $ | 67,200,000 | $ | 31,606,000 | $ | 116,000 | $ | — | $ | 440,423,000 | |||||||||||||||||
Schedule of recorded investment in nonaccrual loans | ' | ||||||||||||||||||||||||||||||||
The following table presents the recorded investment in nonaccrual loans in the periods indicated: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 2,845,000 | $ | 3,374,000 | |||||||||||||||||||||||||||||
Other | 105,000 | 261,000 | |||||||||||||||||||||||||||||||
Commercial real estate | 10,852,000 | 10,083,000 | |||||||||||||||||||||||||||||||
Commercial construction | — | 3,080,000 | |||||||||||||||||||||||||||||||
Residential real estate | 650,000 | 413,000 | |||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 817,000 | 800,000 | |||||||||||||||||||||||||||||||
Total nonperfoming loans | $ | 15,269,000 | $ | 18,011,000 | |||||||||||||||||||||||||||||
Schedule of recorded investments in impaired loans | ' | ||||||||||||||||||||||||||||||||
The following presents loans individually evaluated for impairment by class of loans as of the periods indicated: | |||||||||||||||||||||||||||||||||
At and for the nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Unpaid | Allowance for | Average | Interest | ||||||||||||||||||||||||||||||
Principal | Recorded | Loan Losses | Recorded | Income | |||||||||||||||||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | |||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 7,696,000 | $ | 6,160,000 | $ | 6,417,000 | $ | 161,000 | |||||||||||||||||||||||||
Other | 114,000 | 105,000 | 104,000 | 1,000 | |||||||||||||||||||||||||||||
Commercial real estate | 13,735,000 | 9,629,000 | 9,820,000 | 89,000 | |||||||||||||||||||||||||||||
Commercial construction | 1,266,000 | 852,000 | 3,212,000 | 28,000 | |||||||||||||||||||||||||||||
Residential real estate | 691,000 | 650,000 | 472,000 | ||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 827,000 | 817,000 | 758,000 | ||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | 3,519,000 | 1,193,000 | $ | 237,000 | 986,000 | 23,000 | |||||||||||||||||||||||||||
Other | 1,915,000 | 911,000 | 32,000 | 1,116,000 | 38,000 | ||||||||||||||||||||||||||||
Commercial real estate | 8,097,000 | 5,899,000 | 94,000 | 3,381,000 | 35,000 | ||||||||||||||||||||||||||||
Commercial construction | 469,000 | 48,000 | |||||||||||||||||||||||||||||||
Residential real estate | — | — | — | 46,000 | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | — | — | — | 86,000 | |||||||||||||||||||||||||||||
$ | 37,860,000 | $ | 26,216,000 | $ | 363,000 | $ | 26,867,000 | $ | 423,000 | ||||||||||||||||||||||||
At and for the year ended December 31, 2012 | |||||||||||||||||||||||||||||||||
Unpaid | Allowance for | Average | Interest | ||||||||||||||||||||||||||||||
Principal | Recorded | Loan Losses | Recorded | Income | |||||||||||||||||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | |||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 9,689,000 | $ | 6,557,000 | $ | 4,221,000 | $ | 92,000 | |||||||||||||||||||||||||
Other | 424,000 | 146,000 | 109,000 | 5,000 | |||||||||||||||||||||||||||||
Commercial real estate | 17,211,000 | 12,149,000 | 10,054,000 | 158,000 | |||||||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Commercial | 7,300,000 | 6,029,000 | 6,041,000 | 53,000 | |||||||||||||||||||||||||||||
Residential | — | — | — | — | |||||||||||||||||||||||||||||
Residential real estate | 451,000 | 413,000 | 393,000 | — | |||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 834,000 | 800,000 | 922,000 | — | |||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | 965,000 | 781,000 | $ | 176,000 | 2,589,000 | 25,000 | |||||||||||||||||||||||||||
Other | 1,163,000 | 1,157,000 | 75,000 | 2,195,000 | 43,000 | ||||||||||||||||||||||||||||
Commercial real estate | 923,000 | 654,000 | 15,000 | 2,940,000 | 18,000 | ||||||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||
Commercial | — | — | — | 1,224,000 | — | ||||||||||||||||||||||||||||
Residential | — | — | — | 596,000 | — | ||||||||||||||||||||||||||||
Residential real estate | — | — | — | 239,000 | — | ||||||||||||||||||||||||||||
$ | 38,960,000 | $ | 28,686,000 | $ | 266,000 | $ | 31,523,000 | $ | 394,000 | ||||||||||||||||||||||||
Schedule of aging of the recorded investment in past due loans by class of loans | ' | ||||||||||||||||||||||||||||||||
The following table presents the aging of the recorded investment in past due loans by class of loans as of September 30, 2013 and December 31, 2012. Nonaccrual loans are included in the disclosure by payment status. | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Greater than | Loans | ||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total | Not | |||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Past Due | Total | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | — | $ | — | $ | 1,623,000 | $ | 1,623,000 | $ | 53,286,000 | $ | 54,909,000 | |||||||||||||||||||||
Other | — | 247,000 | 105,000 | 352,000 | 25,493,000 | 25,845,000 | |||||||||||||||||||||||||||
Commercial real estate | — | — | 8,640,000 | 8,640,000 | 244,444,000 | 253,084,000 | |||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 2,985,000 | 2,985,000 | |||||||||||||||||||||||||||
Residential real estate | — | 136,000 | 650,000 | 786,000 | 74,984,000 | 75,770,000 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | — | — | 674,000 | 674,000 | 25,384,000 | 26,058,000 | |||||||||||||||||||||||||||
Other | — | — | — | — | 598,000 | 598,000 | |||||||||||||||||||||||||||
Other | — | — | — | — | 90,000 | 90,000 | |||||||||||||||||||||||||||
Total | $ | — | $ | 383,000 | $ | 11,692,000 | $ | 12,075,000 | $ | 427,264,000 | $ | 439,339,000 | |||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Greater than | Loans | ||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total | Not | |||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Past Due | Total | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 101,000 | $ | 179,000 | $ | 2,674,000 | $ | 2,954,000 | $ | 55,206,000 | $ | 58,160,000 | |||||||||||||||||||||
Other | 25,000 | 98,000 | 52,000 | 175,000 | 31,079,000 | 31,254,000 | |||||||||||||||||||||||||||
Commercial real estate | 2,582,000 | — | 9,023,000 | 11,605,000 | 231,158,000 | 242,763,000 | |||||||||||||||||||||||||||
Commercial construction | — | 460,000 | 815,000 | 1,275,000 | 8,049,000 | 9,324,000 | |||||||||||||||||||||||||||
Residential real estate | 161,000 | — | 413,000 | 574,000 | 66,626,000 | 67,200,000 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 67,000 | — | 647,000 | 714,000 | 30,268,000 | 30,982,000 | |||||||||||||||||||||||||||
Other | — | — | — | — | 624,000 | 624,000 | |||||||||||||||||||||||||||
Other | — | — | — | — | 116,000 | 116,000 | |||||||||||||||||||||||||||
Total | $ | 2,936,000 | $ | 737,000 | $ | 13,624,000 | $ | 17,297,000 | $ | 423,126,000 | $ | 440,423,000 | |||||||||||||||||||||
Schedule of Troubled Debt Restructurings | ' | ||||||||||||||||||||||||||||||||
The following table presents loans, by class, that were modified as troubled debt restructurings that occurred during the three and nine months ended September 30, 2013: | |||||||||||||||||||||||||||||||||
For the three months ended September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | ||||||||||||||||||||||||||||||
Number | Modification | Modification | Number | Modification | Modification | ||||||||||||||||||||||||||||
of | Recorded | Recorded | of | Recorded | Recorded | ||||||||||||||||||||||||||||
Loans | Investment | Investment | Loans | Investment | Investment | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | — | $ | — | $ | — | 6 | $ | 1,581,000 | $ | 1,581,000 | |||||||||||||||||||||||
Other | — | — | — | 4 | 660,000 | 660,000 | |||||||||||||||||||||||||||
Commercial real estate | 1 | 1,994,000 | 1,994,000 | — | — | — | |||||||||||||||||||||||||||
Commercial construction | — | — | — | 1 | 300,000 | 300,000 | |||||||||||||||||||||||||||
Total troubled debt restructurings | 1 | $ | 1,994,000 | $ | 1,994,000 | 11 | $ | 2,541,000 | $ | 2,541,000 | |||||||||||||||||||||||
For the nine months ended September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | ||||||||||||||||||||||||||||||
Number | Modification | Modification | Number | Modification | Modification | ||||||||||||||||||||||||||||
of | Recorded | Recorded | of | Recorded | Recorded | ||||||||||||||||||||||||||||
Loans | Investment | Investment | Loans | Investment | Investment | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | — | $ | — | $ | — | 8 | $ | 1,806,000 | $ | 1,806,000 | |||||||||||||||||||||||
Other | 1 | 17,000 | 17,000 | 5 | 3,735,000 | 3,735,000 | |||||||||||||||||||||||||||
Commercial real estate | 1 | 1,994,000 | 1,994,000 | — | — | — | |||||||||||||||||||||||||||
Commercial construction | — | — | — | 1 | 300,000 | 300,000 | |||||||||||||||||||||||||||
Total troubled debt restructurings | 2 | $ | 2,011,000 | $ | 2,011,000 | 14 | $ | 5,841,000 | $ | 5,841,000 | |||||||||||||||||||||||
Schedule of loans by credit quality indicators | ' | ||||||||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, and based on the most recent analysis performed at those times, the risk category of loans by class is as follows: | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 41,666,000 | $ | 9,092,000 | $ | 4,151,000 | $ | — | $ | — | $ | 54,909,000 | |||||||||||||||||||||
Other | 23,459,000 | 1,525,000 | 834,000 | 27,000 | — | 25,845,000 | |||||||||||||||||||||||||||
Commercial real estate | 225,736,000 | 12,565,000 | 12,662,000 | 2,121,000 | — | 253,084,000 | |||||||||||||||||||||||||||
Commercial construction | 972,000 | 2,013,000 | — | — | — | 2,985,000 | |||||||||||||||||||||||||||
Total | $ | 291,833,000 | $ | 25,195,000 | $ | 17,647,000 | $ | 2,148,000 | $ | — | $ | 336,823,000 | |||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Secured by real estate | $ | 47,524,000 | $ | 7,368,000 | $ | 3,268,000 | $ | — | $ | — | $ | 58,160,000 | |||||||||||||||||||||
Other | 29,484,000 | 1,508,000 | 185,000 | 77,000 | — | 31,254,000 | |||||||||||||||||||||||||||
Commercial real estate | 215,158,000 | 16,003,000 | 9,007,000 | 2,595,000 | — | 242,763,000 | |||||||||||||||||||||||||||
Commercial construction | 3,294,000 | 2,950,000 | 3,080,000 | — | — | 9,324,000 | |||||||||||||||||||||||||||
Total | $ | 295,460,000 | $ | 27,829,000 | $ | 15,540,000 | $ | 2,672,000 | $ | — | $ | 341,501,000 | |||||||||||||||||||||
Schedule of recorded investment in residential real estate and consumer loans based on payment activity | ' | ||||||||||||||||||||||||||||||||
The following table presents the recorded investment in residential real estate and consumer loans based on payment activity as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Past Due and | |||||||||||||||||||||||||||||||||
Current | Nonaccrual | Total | |||||||||||||||||||||||||||||||
Residential real estate | $ | 74,983,000 | $ | 786,000 | $ | 75,769,000 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 25,384,000 | 674,000 | 26,058,000 | ||||||||||||||||||||||||||||||
Other | 598,000 | — | 598,000 | ||||||||||||||||||||||||||||||
Total | $ | 100,965,000 | $ | 1,460,000 | $ | 102,425,000 | |||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Past Due and | |||||||||||||||||||||||||||||||||
Current | Nonaccrual | Total | |||||||||||||||||||||||||||||||
Residential real estate | $ | 66,626,000 | $ | 574,000 | $ | 67,200,000 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Secured by real estate | 30,268,000 | 714,000 | 30,982,000 | ||||||||||||||||||||||||||||||
Other | 624,000 | — | 624,000 | ||||||||||||||||||||||||||||||
Total | $ | 97,518,000 | $ | 1,288,000 | $ | 98,806,000 | |||||||||||||||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Of Financial Instruments Tables | ' | ||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below: | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||
Carrying | Assets | Inputs | Inputs | ||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
At September 30, 2013 | |||||||||||||||||
Assets: | |||||||||||||||||
Available for sale securities | |||||||||||||||||
U.S. government - | |||||||||||||||||
sponsored agencies | $ | 39,334,000 | $ | — | $ | 39,334,000 | $ | — | |||||||||
Obligations of state and | |||||||||||||||||
political subdivisions | 13,478,000 | — | 13,478,000 | — | |||||||||||||
Mortgage-backed | |||||||||||||||||
securities - residential | 114,446,000 | — | 114,446,000 | — | |||||||||||||
Asset-backed securities | 9,826,000 | 9,826,000 | |||||||||||||||
Corporate debt | 2,916,000 | 2,916,000 | |||||||||||||||
Other equity investments | 3,411,000 | 3,351,000 | 60,000 | — | |||||||||||||
Total available for | |||||||||||||||||
sale securities | $ | 183,411,000 | $ | 3,351,000 | $ | 180,060,000 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap | $ | 614,000 | $ | — | $ | 614,000 | $ | — | |||||||||
At December 31, 2012 | |||||||||||||||||
Assets: | |||||||||||||||||
Available for sale securities | |||||||||||||||||
U.S. Treasuries | $ | 4,006,000 | $ | 4,006,000 | $ | — | $ | — | |||||||||
U.S. government - | |||||||||||||||||
sponsored agencies | 37,255,000 | — | 37,255,000 | — | |||||||||||||
Obligations of state and | |||||||||||||||||
political subdivisions | 14,170,000 | — | 14,170,000 | — | |||||||||||||
Mortgage-backed | |||||||||||||||||
securities - residential | 105,428,000 | — | 105,428,000 | — | |||||||||||||
Asset-backed securities | 9,884,000 | 9,884,000 | |||||||||||||||
Corporate debt | 495,000 | 495,000 | |||||||||||||||
Other equity investments | 3,462,000 | 3,402,000 | 60,000 | — | |||||||||||||
Total available for | |||||||||||||||||
sale securities | $ | 174,700,000 | $ | 7,408,000 | $ | 167,292,000 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap | $ | 812,000 | $ | — | $ | 812,000 | $ | — | |||||||||
Schedule of assets and liabilities measured at fair value on a non-recurring basis | ' | ||||||||||||||||
Assets and Liabilities Measured on a Non-Recurring Basis | |||||||||||||||||
Assets and liabilities measured at fair value on a non-recurring basis are summarized below: | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||
in Active | Other | Significant | |||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
At September 30, 2013 | |||||||||||||||||
Assets: | |||||||||||||||||
Impaired loans | |||||||||||||||||
Commercial: | |||||||||||||||||
Secured by real estate | $ | 6,930,000 | $ | — | $ | — | $ | 6,930,000 | |||||||||
Other | — | — | — | — | |||||||||||||
Commercial real estate | 13,096,000 | — | — | 13,096,000 | |||||||||||||
Commercial construction | 852,000 | — | — | 852,000 | |||||||||||||
Residential real estate | 650,000 | — | — | 650,000 | |||||||||||||
Consumer | |||||||||||||||||
Secured by real estate | 817,000 | — | — | 817,000 | |||||||||||||
Other Real Estate Owned | 470,000 | 470,000 | |||||||||||||||
$ | 22,815,000 | $ | — | $ | — | $ | 22,815,000 | ||||||||||
At December 31, 2012 | |||||||||||||||||
Assets: | |||||||||||||||||
Impaired loans | |||||||||||||||||
Commercial: | |||||||||||||||||
Secured by real estate | $ | 6,490,000 | $ | — | $ | — | $ | 6,490,000 | |||||||||
Other | — | — | — | — | |||||||||||||
Commercial real estate | 10,445,000 | — | — | 10,445,000 | |||||||||||||
Commercial construction | 4,373,000 | — | — | 4,373,000 | |||||||||||||
Residential real estate | 413,000 | — | — | 413,000 | |||||||||||||
Consumer | |||||||||||||||||
Secured by real estate | 800,000 | — | — | 800,000 | |||||||||||||
Other Real Estate Owned | 1,058,000 | 1,058,000 | |||||||||||||||
$ | 23,579,000 | $ | — | $ | — | $ | 23,579,000 | ||||||||||
Schedule of fair value assumptions for Level 3 asset measurements | ' | ||||||||||||||||
For the Level 3 assets measured at fair value on a non-recurring basis at September 30, 2013, the significant unobservable inputs used in the fair value measurements were as follows: | |||||||||||||||||
Fair | |||||||||||||||||
Assets | Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||
Impaired loans | $ | 22,345,000 | Comparable real estate sales and / or the income approach. | Adjustments for differences between comparable sales and income data available. | 5% | ||||||||||||
Estimated selling costs. | 7% | ||||||||||||||||
Other real estate owned | $ | 470,000 | Comparable real estate sales and / or the income approach. | Adjustments for differences between comparable sales and income data available. | 5% - 10% | ||||||||||||
Estimated selling costs. | 7% | ||||||||||||||||
Schedule of fair value estimates for the financial instruments | ' | ||||||||||||||||
Fair value estimates for the Corporation’s financial instruments are summarized below: | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||
in Active | Other | Significant | |||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
At September 30, 2013 | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 15,400,000 | $ | 15,400,000 | $ | — | $ | — | |||||||||
Securities available for sale | 183,411,000 | 3,351,000 | 180,060,000 | — | |||||||||||||
Securities held to maturity | 26,161,000 | — | 27,512,000 | — | |||||||||||||
Mortgage loans held for sale | 910,000 | — | 910,000 | — | |||||||||||||
Loans, net | 428,799,000 | — | — | 436,861,000 | |||||||||||||
Accrued interest receivable | 2,058,000 | — | 706,000 | 1,351,000 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | 577,156,000 | 439,719,000 | 137,977,000 | — | |||||||||||||
FHLB-NY advances | 40,100,000 | — | 40,483,000 | — | |||||||||||||
Securities sold under | |||||||||||||||||
agreements to repurchase | 8,044,000 | — | 8,367,000 | — | |||||||||||||
Subordinated debenture | 7,217,000 | — | — | 7,209,000 | |||||||||||||
Accrued interest payable | 373,000 | 2,000 | 353,000 | 18,000 | |||||||||||||
Interest rate swap | 614,000 | — | 614,000 | — | |||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||
in Active | Other | Significant | |||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
At December 31, 2012 | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 21,016,000 | $ | 21,016,000 | $ | — | $ | — | |||||||||
Securities available for sale | 174,700,000 | 7,408,000 | 167,292,000 | — | |||||||||||||
Securities held to maturity | 29,718,000 | — | 31,768,000 | — | |||||||||||||
Mortgage loans held for sale | 784,000 | — | 784,000 | — | |||||||||||||
Loans, net | 429,832,000 | — | — | 449,041,000 | |||||||||||||
Accrued interest receivable | 2,372,000 | 2,000 | 908,000 | 1,462,000 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | 590,254,000 | 434,569,000 | 157,219,000 | — | |||||||||||||
FHLB-NY advances | 25,000,000 | — | 25,825,000 | — | |||||||||||||
Securities sold under | |||||||||||||||||
agreements to repurchase | 7,343,000 | — | 7,883,000 | — | |||||||||||||
Subordinated debenture | 7,217,000 | — | — | 7,112,000 | |||||||||||||
Accrued interest payable | 560,000 | 1,000 | 540,000 | 19,000 | |||||||||||||
Interest rate swap | 812,000 | — | 812,000 | — | |||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share Tables | ' | ||||||||||||||||
Schedule of Earnings Per Common Share | ' | ||||||||||||||||
The following reconciles the income available to common shareholders (numerator) and the weighted average common stock outstanding (denominator) for both basic and diluted earnings per share. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 522,000 | $ | 328,000 | $ | 1,805,000 | $ | 780,000 | |||||||||
Dividends on preferred stock | 170,000 | 112,000 | 463,000 | 225,000 | |||||||||||||
Net income available to common stockholders | $ | 352,000 | $ | 216,000 | $ | 1,342,000 | $ | 555,000 | |||||||||
Weighted average shares | 5,939,958 | 5,916,123 | 5,935,195 | 5,903,598 | |||||||||||||
Effect of dilutive stock options | N/A | N/A | N/A | N/A | |||||||||||||
Total weighted average dilutive shares | 5,939,958 | 5,916,123 | 5,935,195 | 5,903,598 | |||||||||||||
Basic earnings per common share | $ | 0.06 | $ | 0.04 | $ | 0.23 | $ | 0.09 | |||||||||
Diluted earnings per common share | $ | 0.06 | $ | 0.04 | $ | 0.23 | $ | 0.09 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Accumulated Other Comprehensive Income Tables | ' | ||||||||||||
Schedule of components of accumulated other comprehensive income | ' | ||||||||||||
The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive income for the three and nine months ended September 30, 2013. | |||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||
Components of | |||||||||||||
Accumulated Other Comprehensive Income | Total | ||||||||||||
Unrealized Gains | Accumulated | ||||||||||||
and Losses on | Unrealized Gains | Other | |||||||||||
Available for Sale | and Losses on | Comprehensive | |||||||||||
(AFS) Securities | Derivatives | Loss | |||||||||||
Balance at June 30, 2013 | $ | (2,122,000 | ) | $ | (389,000 | ) | $ | (2,511,000 | ) | ||||
Other comprehensive income before | |||||||||||||
reclassifications | (354,000 | ) | 20,000 | (334,000 | ) | ||||||||
Amounts reclassified from | |||||||||||||
other comprehensive income | — | — | — | ||||||||||
Other comprehensive income, net | (354,000 | ) | 20,000 | (334,000 | ) | ||||||||
Balance at September 30, 2013 | $ | (2,476,000 | ) | $ | (369,000 | ) | $ | (2,845,000 | ) | ||||
For the Nine Months Ended September 30, 2013 | |||||||||||||
Components of | |||||||||||||
Accumulated Other Comprehensive Income | Total | ||||||||||||
Unrealized Gains | Accumulated | ||||||||||||
and Losses on | Unrealized Gains | Other | |||||||||||
Available for Sale | and Losses on | Comprehensive | |||||||||||
(AFS) Securities | Derivatives | Loss | |||||||||||
Balance at December 31, 2012 | $ | 947,000 | $ | (487,000 | ) | $ | 460,000 | ||||||
Other comprehensive income before | |||||||||||||
reclassifications | (3,422,000 | ) | 118,000 | (3,304,000 | ) | ||||||||
Amounts reclassified from | |||||||||||||
other comprehensive income | (1,000 | ) | — | (1,000 | ) | ||||||||
Other comprehensive income, net | (3,423,000 | ) | 118,000 | (3,305,000 | ) | ||||||||
Balance at September 30, 2013 | $ | (2,476,000 | ) | $ | (369,000 | ) | $ | (2,845,000 | ) | ||||
Schedule of amount reclassified from each component of accumulated other comprehensive income | ' | ||||||||||||
The following table presents amounts reclassified from each component of accumulated other comprehensive income on a gross and net of tax basis for the nine months ended September 30, 2013. | |||||||||||||
Accumulated | |||||||||||||
Other | Income | ||||||||||||
Components of Accumulated Other | Comprehensive | Statement | |||||||||||
Comprehensive Loss | Income | Line Item | |||||||||||
Unrealized gains on AFS securities before tax | $ | 2,000 | Gains on securities transactions, net | ||||||||||
Tax effect | (1,000 | ) | |||||||||||
Total net of tax | 1,000 | ||||||||||||
Total reclassifications, net of tax | $ | 1,000 | |||||||||||
Securities_Availableforsale_an2
Securities - Available-for-sale and Held to Maturity (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Securities - Available-For-Sale And Held To Maturity Details Narrative | ' | ' | ' | ' |
Cash proceeds realized from sales and calls of securities available for sale | $200,000 | $37,414,000 | $6,700,000 | $63,374,000 |
Gross realized gain from sales and calls of securities available for sale | ' | 898,000 | 2,000 | 1,336,000 |
Gross realized losses from sales and calls of securities available for sale | ' | 7,000 | ' | 7,000 |
Proceeds from calls on securities held to maturity | 920,000 | ' | 1,170,000 | 3,105,000 |
Gross realized gain from sales and calls of held to maturity securities | ' | ' | ' | $7,000 |
Securities_Availableforsale_an3
Securities - Available-for-sale and Held to Maturity (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | ||
Available for sale securities | ' | ' | |
Amortized Cost | $187,449,000 | $173,146,000 | |
Gross Unrealized Gains | 790,000 | 1,744,000 | |
Gross Unrealized Losses | 4,828,000 | 190,000 | |
Fair Value | 183,411,000 | 174,700,000 | |
U.S. government-sponsored agencies | ' | ' | |
Available for sale securities | ' | ' | |
Amortized Cost | 41,298,000 | 37,287,000 | |
Gross Unrealized Gains | 24,000 | 35,000 | |
Gross Unrealized Losses | 1,988,000 | 67,000 | |
Fair Value | 39,334,000 | 37,255,000 | |
Obligations of state and political and subdivisions | ' | ' | |
Available for sale securities | ' | ' | |
Amortized Cost | 13,420,000 | 13,724,000 | |
Gross Unrealized Gains | 218,000 | 468,000 | |
Gross Unrealized Losses | 160,000 | 22,000 | |
Fair Value | 13,478,000 | 14,170,000 | |
Mortgage-backed securities - residential | ' | ' | |
Available for sale securities | ' | ' | |
Amortized Cost | 116,350,000 | 104,341,000 | |
Gross Unrealized Gains | 534,000 | 1,176,000 | |
Gross Unrealized Losses | 2,438,000 | 89,000 | |
Fair Value | 114,446,000 | 105,428,000 | |
Asset-backed Securities | ' | ' | |
Available for sale securities | ' | ' | |
Amortized Cost | 9,874,000 | [1] | 9,874,000 |
Gross Unrealized Gains | 10,000 | 22,000 | |
Gross Unrealized Losses | 58,000 | 12,000 | |
Fair Value | 9,826,000 | 9,884,000 | |
Corporate Debt Securities | ' | ' | |
Available for sale securities | ' | ' | |
Amortized Cost | 2,995,000 | 492,000 | |
Gross Unrealized Gains | 4,000 | 3,000 | |
Gross Unrealized Losses | 83,000 | ' | |
Fair Value | 2,916,000 | 495,000 | |
Total debt securities | ' | ' | |
Available for sale securities | ' | ' | |
Amortized Cost | 183,937,000 | 169,721,000 | |
Gross Unrealized Gains | 790,000 | 1,707,000 | |
Gross Unrealized Losses | 4,727,000 | 190,000 | |
Fair Value | 180,000,000 | 171,238,000 | |
Other equity investments | ' | ' | |
Available for sale securities | ' | ' | |
Amortized Cost | 3,512,000 | 3,425,000 | |
Gross Unrealized Gains | ' | 37,000 | |
Gross Unrealized Losses | 101,000 | ' | |
Fair Value | 3,411,000 | 3,462,000 | |
U.S. Treasury | ' | ' | |
Available for sale securities | ' | ' | |
Amortized Cost | ' | 4,003,000 | |
Gross Unrealized Gains | ' | 3,000 | |
Fair Value | ' | $4,006,000 | |
[1] | (a) Collateralized by student loans |
Securities_Availableforsale_an4
Securities - Available-for-sale and Held to Maturity (Details 1) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Held to maturity securities | ' | ' |
Amortized Cost | $26,161,000 | $29,718,000 |
Gross Unrealized Gains | 1,351,000 | 2,050,000 |
Fair Value | 27,512,000 | 31,768,000 |
U.S. government-sponsored agencies | ' | ' |
Held to maturity securities | ' | ' |
Amortized Cost | 259,000 | 260,000 |
Gross Unrealized Gains | 34,000 | 46,000 |
Fair Value | 293,000 | 306,000 |
Obligations of state and political and subdivisions | ' | ' |
Held to maturity securities | ' | ' |
Amortized Cost | 20,658,000 | 22,787,000 |
Gross Unrealized Gains | 905,000 | 1,407,000 |
Fair Value | 21,563,000 | 24,194,000 |
Mortgage-backed securities - residential | ' | ' |
Held to maturity securities | ' | ' |
Amortized Cost | 5,244,000 | 6,671,000 |
Gross Unrealized Gains | 412,000 | 597,000 |
Fair Value | $5,656,000 | $7,268,000 |
Securities_Availableforsale_an5
Securities - Available-for-sale and Held to Maturity (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Amortized Cost | ' | ' |
After one year, but within five years | $7,609,000 | ' |
After five years, but within ten years | 30,160,000 | ' |
After ten years | 19,944,000 | ' |
Total | 183,937,000 | ' |
Fair value | ' | ' |
After one year, but within five years | 7,553,000 | ' |
After five years, but within ten years | 29,322,000 | ' |
After ten years | 18,853,000 | ' |
Total | 180,000,000 | ' |
Amortized Cost | ' | ' |
Within one year | 4,285,000 | ' |
After one year, but within five years | 11,931,000 | ' |
After five years, but within ten years | 4,524,000 | ' |
After ten years | 177,000 | ' |
Total | 26,161,000 | 29,718,000 |
Fair Value | ' | ' |
Within one year | 4,354,000 | ' |
After one year, but within five years | 12,569,000 | ' |
After five years, but within ten years | 4,750,000 | ' |
After ten years | 183,000 | ' |
Total | 27,512,000 | 31,768,000 |
Mortgage-backed securities - residential | ' | ' |
Amortized Cost | ' | ' |
Total | 116,350,000 | ' |
Fair value | ' | ' |
Total | 114,446,000 | ' |
Amortized Cost | ' | ' |
Total | 5,244,000 | ' |
Fair Value | ' | ' |
Total | 5,656,000 | 7,268,000 |
Asset-backed Securities | ' | ' |
Amortized Cost | ' | ' |
Total | 9,874,000 | ' |
Fair value | ' | ' |
Total | $9,826,000 | ' |
Securities_Availableforsale_an6
Securities - Available-for-sale and Held to Maturity (Details 3) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Available for sale securities, Continuous unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | $120,161,000 | $50,735,000 |
Less than 12 Months, Unrealized Losses | -4,814,000 | -190,000 |
12 Months or Longer, Fair Value | 868,000 | ' |
12 Months or Longer, Unrealized Losses | -14,000 | ' |
Fair Value | 121,029,000 | 50,735,000 |
Unrealized Losses | -4,828,000 | -190,000 |
U.S. government-sponsored agencies | ' | ' |
Available for sale securities, Continuous unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | 33,026,000 | 20,716,000 |
Less than 12 Months, Unrealized Losses | -1,988,000 | -67,000 |
Fair Value | 33,026,000 | 20,716,000 |
Unrealized Losses | -1,988,000 | -67,000 |
Obligations of state and political and subdivisions | ' | ' |
Available for sale securities, Continuous unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | 5,476,000 | 3,257,000 |
Less than 12 Months, Unrealized Losses | -146,000 | -22,000 |
12 Months or Longer, Fair Value | 868,000 | ' |
12 Months or Longer, Unrealized Losses | -14,000 | ' |
Fair Value | 6,344,000 | 3,257,000 |
Unrealized Losses | -160,000 | -22,000 |
Mortgage-backed securities - residential | ' | ' |
Available for sale securities, Continuous unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | 67,110,000 | 23,715,000 |
Less than 12 Months, Unrealized Losses | -2,438,000 | -89,000 |
Fair Value | 67,110,000 | 23,715,000 |
Unrealized Losses | -2,438,000 | -89,000 |
Asset-backed Securities | ' | ' |
Available for sale securities, Continuous unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | 8,781,000 | 3,047,000 |
Less than 12 Months, Unrealized Losses | -58,000 | -12,000 |
Fair Value | 8,781,000 | 3,047,000 |
Unrealized Losses | -58,000 | -12,000 |
Corporate Debt Securities | ' | ' |
Available for sale securities, Continuous unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | 2,417,000 | ' |
Less than 12 Months, Unrealized Losses | -83,000 | ' |
Fair Value | 2,417,000 | ' |
Unrealized Losses | -83,000 | ' |
Other equity investments | ' | ' |
Available for sale securities, Continuous unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | 3,351,000 | ' |
Less than 12 Months, Unrealized Losses | -101,000 | ' |
Fair Value | 3,351,000 | ' |
Unrealized Losses | ($101,000) | ' |
Loans_and_Nonperforming_Loans_1
Loans and Nonperforming Loans (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Loans participated by the Corporation to other organizations, recorded off-balance sheet | $13,187,000 | ' | $13,187,000 | ' | $13,187,000 |
Total value of modified loans in troubled debt restructurings | 12,100,000 | ' | 12,100,000 | ' | 12,100,000 |
Trouble debt restructuring classified as performing | 11,000,000 | ' | 11,000,000 | ' | 11,000,000 |
Specific reserve related to TDR | 221,000 | ' | 221,000 | ' | 221,000 |
Committed funds for construction loan, classified as troubled debt restructuring | 600,000 | ' | 600,000 | ' | 600,000 |
Reduction in allowance for loan losses due to trouble debt restructuring | -1,145,000 | -1,508,000 | -3,579,000 | -5,895,000 | ' |
Commercial loan - Other | ' | ' | ' | ' | ' |
Reduction in allowance for loan losses due to trouble debt restructuring | ' | ' | 300,000 | ' | ' |
Charge-offs related to trouble debt restructurings | ' | ' | 1,121,000 | ' | ' |
Commercial loan - Other | ' | ' | ' | ' | ' |
Matured loan - term out of remaining balance TDR | $2,000,000 | ' | $2,000,000 | ' | ' |
Loans_and_Nonperforming_Loans_2
Loans and Nonperforming Loans (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Gross loans | $439,339,000 | $440,423,000 |
Deferred loan fees, net of costs | -164,000 | -50,000 |
Allowance for loan losses | 10,704,000 | 10,641,000 |
Allowance net of deferred loan fees | 10,540,000 | 10,591,000 |
Loans, net | 428,799,000 | 429,832,000 |
Commercial loan secured by real estate | ' | ' |
Gross loans | 54,909,000 | 58,160,000 |
Commercial loan - Other | ' | ' |
Gross loans | 25,845,000 | 31,254,000 |
Commercial real estate | ' | ' |
Gross loans | 253,084,000 | 242,763,000 |
Allowance for loan losses | 5,562,000 | 4,936,000 |
Commercial Construction | ' | ' |
Gross loans | 2,985,000 | 9,324,000 |
Residential real estate | ' | ' |
Gross loans | 75,770,000 | 67,200,000 |
Allowance for loan losses | 400,000 | 308,000 |
Consumer loan secured by real estate | ' | ' |
Gross loans | 26,058,000 | 30,982,000 |
Consumer loan - Other | ' | ' |
Gross loans | 598,000 | 624,000 |
Other Loans | ' | ' |
Gross loans | 90,000 | 116,000 |
Allowance for loan losses | $2,000 | $3,000 |
Loans_and_Nonperforming_Loans_3
Loans and Nonperforming Loans (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Activity in the allowance for loan losses | ' | ' | ' | ' |
Balance at the beginning of period | $10,787,000 | $11,934,000 | $10,787,000 | $11,604,000 |
Provision | 900,000 | 2,000,000 | 3,350,000 | 6,665,000 |
Charge Offs | 1,145,000 | 1,508,000 | 3,579,000 | 5,895,000 |
Recoveries | 162,000 | 172,000 | 292,000 | 224,000 |
Balance at the end of period | 10,704,000 | 12,598,000 | 10,704,000 | 12,598,000 |
Commercial | ' | ' | ' | ' |
Activity in the allowance for loan losses | ' | ' | ' | ' |
Balance at the beginning of period | 3,985,000 | 6,023,000 | 4,832,000 | 5,368,000 |
Provision | 508,000 | 1,620,000 | 231,000 | 4,581,000 |
Charge Offs | 274,000 | 865,000 | 922,000 | 3,221,000 |
Recoveries | 44,000 | 167,000 | 122,000 | 217,000 |
Balance at the end of period | 4,263,000 | 6,945,000 | 4,263,000 | 6,945,000 |
Commercial real estate | ' | ' | ' | ' |
Activity in the allowance for loan losses | ' | ' | ' | ' |
Balance at the beginning of period | 5,598,000 | 4,527,000 | 4,936,000 | 4,943,000 |
Provision | 518,000 | 542,000 | 2,939,000 | 1,964,000 |
Charge Offs | 672,000 | 606,000 | 2,431,000 | 2,445,000 |
Recoveries | 118,000 | ' | 118,000 | 1,000 |
Balance at the end of period | 5,562,000 | 4,463,000 | 5,562,000 | 4,463,000 |
Construction | ' | ' | ' | ' |
Activity in the allowance for loan losses | ' | ' | ' | ' |
Balance at the beginning of period | 304,000 | 514,000 | 169,000 | 480,000 |
Provision | -191,000 | -137,000 | -58,000 | 42,000 |
Charge Offs | ' | 20,000 | 24,000 | 165,000 |
Recoveries | ' | 3,000 | 26,000 | 3,000 |
Balance at the end of period | 113,000 | 360,000 | 113,000 | 360,000 |
Residential real estate | ' | ' | ' | ' |
Activity in the allowance for loan losses | ' | ' | ' | ' |
Balance at the beginning of period | 434,000 | 392,000 | 308,000 | 303,000 |
Provision | 23,000 | 18,000 | 149,000 | 107,000 |
Charge Offs | 57,000 | 15,000 | 57,000 | 15,000 |
Balance at the end of period | 400,000 | 395,000 | 400,000 | 395,000 |
Consumer | ' | ' | ' | ' |
Activity in the allowance for loan losses | ' | ' | ' | ' |
Balance at the beginning of period | 410,000 | 437,000 | 410,000 | 498,000 |
Provision | 23,000 | -28,000 | 64,000 | -42,000 |
Charge Offs | 142,000 | 1,000 | 145,000 | 48,000 |
Recoveries | ' | 1,000 | 20,000 | 1,000 |
Balance at the end of period | 291,000 | 409,000 | 291,000 | 409,000 |
Other Loans | ' | ' | ' | ' |
Activity in the allowance for loan losses | ' | ' | ' | ' |
Balance at the beginning of period | 1,000 | 4,000 | 3,000 | 2,000 |
Provision | 1,000 | -2,000 | -3,000 | -1,000 |
Charge Offs | ' | 1,000 | ' | 1,000 |
Recoveries | ' | 1,000 | 2,000 | 2,000 |
Balance at the end of period | 2,000 | 2,000 | 2,000 | 2,000 |
Unallocated Loans | ' | ' | ' | ' |
Activity in the allowance for loan losses | ' | ' | ' | ' |
Balance at the beginning of period | 55,000 | 37,000 | 41,000 | 10,000 |
Provision | 18,000 | -13,000 | 28,000 | 14,000 |
Recoveries | ' | ' | 4,000 | ' |
Balance at the end of period | $73,000 | $24,000 | $73,000 | $24,000 |
Loans_and_Nonperforming_Loans_4
Loans and Nonperforming Loans (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Allowance for loan losses Ending balance, Individually evaluated for impairment | $363,000 | $266,000 |
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 10,341,000 | 10,375,000 |
Total Ending allowance balance | 10,704,000 | 10,641,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | 26,216,000 | 28,686,000 |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 413,123,000 | 411,737,000 |
Total Loans | 439,339,000 | 440,423,000 |
Commercial | ' | ' |
Allowance for loan losses Ending balance, Individually evaluated for impairment | 269,000 | 251,000 |
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 3,994,000 | 4,581,000 |
Total Ending allowance balance | 4,263,000 | 4,832,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | 8,369,000 | 8,641,000 |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 72,385,000 | 80,773,000 |
Total Loans | 80,754,000 | 89,414,000 |
Commercial real estate | ' | ' |
Allowance for loan losses Ending balance, Individually evaluated for impairment | 94,000 | 15,000 |
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 5,468,000 | 4,921,000 |
Total Ending allowance balance | 5,562,000 | 4,936,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | 15,528,000 | 12,803,000 |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 237,556,000 | 229,960,000 |
Total Loans | 253,084,000 | 242,763,000 |
Construction | ' | ' |
Allowance for loan losses Ending balance, Individually evaluated for impairment | ' | ' |
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 113,000 | 169,000 |
Total Ending allowance balance | 113,000 | 169,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | 852,000 | 6,029,000 |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 2,133,000 | 3,295,000 |
Total Loans | 2,985,000 | 9,324,000 |
Residential real estate | ' | ' |
Allowance for loan losses Ending balance, Individually evaluated for impairment | ' | ' |
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 400,000 | 308,000 |
Total Ending allowance balance | 400,000 | 308,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | 650,000 | 413,000 |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 75,120,000 | 66,787,000 |
Total Loans | 75,770,000 | 67,200,000 |
Consumer | ' | ' |
Allowance for loan losses Ending balance, Individually evaluated for impairment | ' | ' |
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 291,000 | 352,000 |
Total Ending allowance balance | 291,000 | 352,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | 817,000 | 800,000 |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 25,839,000 | 30,806,000 |
Total Loans | 26,656,000 | 31,606,000 |
Other Loans | ' | ' |
Allowance for loan losses Ending balance, Individually evaluated for impairment | ' | ' |
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 2,000 | 3,000 |
Total Ending allowance balance | 2,000 | 3,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | ' | ' |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 90,000 | 116,000 |
Total Loans | 90,000 | 116,000 |
Unallocated Loans | ' | ' |
Allowance for loan losses Ending balance, Individually evaluated for impairment | ' | ' |
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 73,000 | 41,000 |
Total Ending allowance balance | 73,000 | 41,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | ' | ' |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | ' | ' |
Total Loans | ' | ' |
Loans_and_Nonperforming_Loans_5
Loans and Nonperforming Loans (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Total nonperfoming loans | $15,269,000 | $18,011,000 |
Commercial loan secured by real estate | ' | ' |
Total nonperfoming loans | 2,845,000 | 3,374,000 |
Commercial loan - Other | ' | ' |
Total nonperfoming loans | 105,000 | 261,000 |
Commercial real estate | ' | ' |
Total nonperfoming loans | 10,852,000 | 10,083,000 |
Commercial Construction | ' | ' |
Total nonperfoming loans | ' | 3,080,000 |
Residential real estate | ' | ' |
Total nonperfoming loans | 650,000 | 413,000 |
Consumer loan secured by real estate | ' | ' |
Total nonperfoming loans | $817,000 | $800,000 |
Loans_and_Nonperforming_Loans_6
Loans and Nonperforming Loans (Details 4) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Related Allowance | $363,000 | $525,000 |
Unpaid Principal Balance | 37,860,000 | 34,919,000 |
Recorded Investment | 26,216,000 | 24,951,000 |
Average Recorded Investment | 26,867,000 | 31,523,000 |
Interest Income Recognized | 423,000 | 394,000 |
Commercial loan secured by real estate | ' | ' |
Unpaid Principal Balance With no related allowance recorded | 7,696,000 | 9,689,000 |
Recorded Investment With no related allowance recorded | 6,160,000 | 6,557,000 |
Average Recorded Investment | 6,417,000 | 4,221,000 |
Interest income recognized for the year | 161,000 | 92,000 |
Unpaid Principal Balance With an allowance recorded | 3,519,000 | 965,000 |
Recorded Investment With an allowance recorded | 1,193,000 | 781,000 |
Related Allowance | 237,000 | 176,000 |
Average Recorded Investment | 986,000 | 2,589,000 |
Interest income recognized for the year | 23,000 | 25,000 |
Commercial loan - Other | ' | ' |
Unpaid Principal Balance With no related allowance recorded | 114,000 | 424,000 |
Recorded Investment With no related allowance recorded | 105,000 | 146,000 |
Average Recorded Investment | 104,000 | 109,000 |
Interest income recognized for the year | 1,000 | 5,000 |
Unpaid Principal Balance With an allowance recorded | 1,915,000 | 1,163,000 |
Recorded Investment With an allowance recorded | 911,000 | 1,157,000 |
Related Allowance | 32,000 | 75,000 |
Average Recorded Investment | 1,116,000 | 2,195,000 |
Interest income recognized for the year | 38,000 | 43,000 |
Commercial real estate | ' | ' |
Unpaid Principal Balance With no related allowance recorded | 13,735,000 | 17,211,000 |
Recorded Investment With no related allowance recorded | 9,629,000 | 12,149,000 |
Average Recorded Investment | 9,820,000 | 10,054,000 |
Interest income recognized for the year | 89,000 | 158,000 |
Unpaid Principal Balance With an allowance recorded | 8,097,000 | 923,000 |
Recorded Investment With an allowance recorded | 5,899,000 | 654,000 |
Related Allowance | 94,000 | 15,000 |
Average Recorded Investment | 3,381,000 | 2,940,000 |
Interest income recognized for the year | 35,000 | 18,000 |
Commercial Construction | ' | ' |
Unpaid Principal Balance With no related allowance recorded | 1,266,000 | 7,300,000 |
Recorded Investment With no related allowance recorded | 852,000 | 6,029,000 |
Average Recorded Investment | 3,212,000 | 6,041,000 |
Interest income recognized for the year | 28,000 | 53,000 |
Average Recorded Investment | 469,000 | 1,224,000 |
Interest income recognized for the year | 48,000 | ' |
Residential real estate | ' | ' |
Unpaid Principal Balance With no related allowance recorded | 691,000 | 451,000 |
Recorded Investment With no related allowance recorded | 650,000 | 413,000 |
Average Recorded Investment | 472,000 | 393,000 |
Average Recorded Investment | 46,000 | 239,000 |
Consumer loan secured by real estate | ' | ' |
Unpaid Principal Balance With no related allowance recorded | 827,000 | 834,000 |
Recorded Investment With no related allowance recorded | 817,000 | 800,000 |
Average Recorded Investment | 758,000 | 922,000 |
Average Recorded Investment | 86,000 | ' |
Residential Construction | ' | ' |
Average Recorded Investment | ' | $596,000 |
Loans_and_Nonperforming_Loans_7
Loans and Nonperforming Loans (Details 5) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
30 to 59 Days | ' | $2,936,000 |
60 to 89 Days | 383,000 | 737,000 |
Greater Than 90 Days | 11,692,000 | 13,624,000 |
Total | 12,075,000 | 17,297,000 |
Not past due | 427,264,000 | 423,126,000 |
Total Loans | 439,339,000 | 440,423,000 |
Commercial loan secured by real estate | ' | ' |
30 to 59 Days | ' | 101,000 |
60 to 89 Days | ' | 179,000 |
Greater Than 90 Days | 1,623,000 | 2,674,000 |
Total | 1,623,000 | 2,954,000 |
Not past due | 53,286,000 | 55,206,000 |
Total Loans | 54,909,000 | 58,160,000 |
Commercial loan - Other | ' | ' |
30 to 59 Days | ' | 25,000 |
60 to 89 Days | 247,000 | 98,000 |
Greater Than 90 Days | 105,000 | 52,000 |
Total | 352,000 | 175,000 |
Not past due | 25,493,000 | 31,079,000 |
Total Loans | 25,845,000 | 31,254,000 |
Commercial real estate | ' | ' |
30 to 59 Days | ' | 2,582,000 |
60 to 89 Days | ' | ' |
Greater Than 90 Days | 8,640,000 | 9,023,000 |
Total | 8,640,000 | 11,605,000 |
Not past due | 244,444,000 | 231,158,000 |
Total Loans | 253,084,000 | 242,763,000 |
Commercial Construction | ' | ' |
30 to 59 Days | ' | ' |
60 to 89 Days | 136,000 | 460,000 |
Greater Than 90 Days | ' | 815,000 |
Total | ' | 1,275,000 |
Not past due | 2,985,000 | 8,049,000 |
Total Loans | 2,985,000 | 9,324,000 |
Residential real estate | ' | ' |
30 to 59 Days | ' | 161,000 |
60 to 89 Days | ' | ' |
Greater Than 90 Days | 650,000 | 413,000 |
Total | 786,000 | 574,000 |
Not past due | 74,984,000 | 66,626,000 |
Total Loans | 75,770,000 | 67,200,000 |
Consumer loan secured by real estate | ' | ' |
30 to 59 Days | ' | 67,000 |
60 to 89 Days | ' | ' |
Greater Than 90 Days | 674,000 | 647,000 |
Total | 674,000 | 714,000 |
Not past due | 25,384,000 | 30,268,000 |
Total Loans | 26,058,000 | 30,982,000 |
Consumer loan - Other | ' | ' |
30 to 59 Days | ' | ' |
60 to 89 Days | ' | ' |
Greater Than 90 Days | ' | ' |
Not past due | 598,000 | 624,000 |
Total Loans | 598,000 | 624,000 |
Other Loans | ' | ' |
30 to 59 Days | ' | ' |
60 to 89 Days | ' | ' |
Greater Than 90 Days | ' | ' |
Total | ' | ' |
Not past due | 90,000 | 116,000 |
Total Loans | $90,000 | $116,000 |
Loans_and_Nonperforming_Loans_8
Loans and Nonperforming Loans (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
N | N | N | N | |
Number of loans restructured | 1 | 11 | 2 | 14 |
TDRs arising during period Pre-Modification Recorded Investment | $1,994,000 | $2,541,000 | $2,011,000 | $5,841,000 |
TDRs arising during period Post-Modification Recorded Investment | 1,994,000 | 2,541,000 | 2,011,000 | 5,841,000 |
Commercial real estate | ' | ' | ' | ' |
Number of loans restructured | 1 | ' | 1 | ' |
TDRs arising during period Pre-Modification Recorded Investment | 1,994,000 | ' | 1,994,000 | ' |
TDRs arising during period Post-Modification Recorded Investment | 1,994,000 | ' | 1,994,000 | ' |
Commercial loan secured by real estate | ' | ' | ' | ' |
Number of loans restructured | ' | 6 | ' | 8 |
TDRs arising during period Pre-Modification Recorded Investment | ' | 1,581,000 | ' | 1,806,000 |
TDRs arising during period Post-Modification Recorded Investment | ' | 1,581,000 | ' | 1,806,000 |
Commercial loan - Other | ' | ' | ' | ' |
Number of loans restructured | ' | 4 | 1 | 5 |
TDRs arising during period Pre-Modification Recorded Investment | ' | 660,000 | 17,000 | 3,735,000 |
TDRs arising during period Post-Modification Recorded Investment | ' | 660,000 | 17,000 | 3,735,000 |
Commercial Construction | ' | ' | ' | ' |
Number of loans restructured | ' | 1 | ' | 1 |
TDRs arising during period Pre-Modification Recorded Investment | ' | 300,000 | ' | 300,000 |
TDRs arising during period Post-Modification Recorded Investment | ' | $300,000 | ' | $300,000 |
Loans_and_Nonperforming_Loans_9
Loans and Nonperforming Loans (Details 7) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Total Loans | $439,339,000 | $440,423,000 |
Pass | ' | ' |
Total Loans | 291,833,000 | 295,460,000 |
Special Mention | ' | ' |
Total Loans | 25,195,000 | 27,829,000 |
Substandard | ' | ' |
Total Loans | 17,647,000 | 15,540,000 |
Doubtful | ' | ' |
Total Loans | 2,148,000 | 2,672,000 |
Loss | ' | ' |
Total Loans | ' | ' |
Commercial loan secured by real estate | ' | ' |
Total Loans | 54,909,000 | 58,160,000 |
Commercial loan secured by real estate | Pass | ' | ' |
Total Loans | 41,666,000 | 47,524,000 |
Commercial loan secured by real estate | Special Mention | ' | ' |
Total Loans | 9,092,000 | 7,368,000 |
Commercial loan secured by real estate | Substandard | ' | ' |
Total Loans | 4,151,000 | 3,268,000 |
Commercial loan secured by real estate | Doubtful | ' | ' |
Total Loans | ' | ' |
Commercial loan secured by real estate | Loss | ' | ' |
Total Loans | ' | ' |
Commercial loan - Other | ' | ' |
Total Loans | 25,845,000 | 31,254,000 |
Commercial loan - Other | Pass | ' | ' |
Total Loans | 23,459,000 | 29,484,000 |
Commercial loan - Other | Special Mention | ' | ' |
Total Loans | 1,525,000 | 1,508,000 |
Commercial loan - Other | Substandard | ' | ' |
Total Loans | 834,000 | 185,000 |
Commercial loan - Other | Doubtful | ' | ' |
Total Loans | 27,000 | 77,000 |
Commercial loan - Other | Loss | ' | ' |
Total Loans | ' | ' |
Commercial real estate | ' | ' |
Total Loans | 253,084,000 | 242,763,000 |
Commercial real estate | Pass | ' | ' |
Total Loans | 225,736,000 | 215,158,000 |
Commercial real estate | Special Mention | ' | ' |
Total Loans | 12,565,000 | 16,003,000 |
Commercial real estate | Substandard | ' | ' |
Total Loans | 12,662,000 | 9,007,000 |
Commercial real estate | Doubtful | ' | ' |
Total Loans | 2,121,000 | 2,595,000 |
Commercial real estate | Loss | ' | ' |
Total Loans | ' | ' |
Commercial Construction | ' | ' |
Total Loans | 2,985,000 | 9,324,000 |
Commercial Construction | Pass | ' | ' |
Total Loans | 972,000 | 3,294,000 |
Commercial Construction | Special Mention | ' | ' |
Total Loans | 2,013,000 | 2,950,000 |
Commercial Construction | Substandard | ' | ' |
Total Loans | ' | 3,080,000 |
Commercial Construction | Doubtful | ' | ' |
Total Loans | ' | ' |
Commercial Construction | Loss | ' | ' |
Total Loans | ' | ' |
Total | ' | ' |
Total Loans | $336,823,000 | $341,501,000 |
Recovered_Sheet1
Loans and Nonperforming Loans (Details 8) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current | $427,264,000 | $423,126,000 |
Past Due and non accrual | 12,075,000 | 17,297,000 |
Total Loans | 439,339,000 | 440,423,000 |
Residential real estate | ' | ' |
Current | 74,984,000 | 66,626,000 |
Past Due and non accrual | 786,000 | 574,000 |
Total Loans | 75,770,000 | 67,200,000 |
Consumer loan secured by real estate | ' | ' |
Current | 25,384,000 | 30,268,000 |
Past Due and non accrual | 674,000 | 714,000 |
Total Loans | 26,058,000 | 30,982,000 |
Consumer loan - Other | ' | ' |
Current | 598,000 | 624,000 |
Total Loans | 598,000 | 624,000 |
Residential real estate and consumer loan | ' | ' |
Current | 100,965,000 | 97,518,000 |
Past Due and non accrual | 1,460,000 | 1,288,000 |
Total Loans | $102,425,000 | $98,806,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Allowance for loan losses | $10,704,000 | ' | $10,704,000 | ' | $10,641,000 |
Additional provision for loan losses | 900,000 | 2,000,000 | 3,350,000 | 6,665,000 | ' |
Discount to real estate appraised values | ' | ' | 12.00% | ' | ' |
Fair Value, Measurements, Nonrecurring | Impaired Loans | ' | ' | ' | ' | ' |
Recorded Investment With an allowance recorded | 22,663,000 | ' | 22,663,000 | ' | ' |
Allowance for loan losses | 318,000 | ' | 318,000 | ' | ' |
Additional provision for loan losses | 517,000 | ' | 2,985,000 | ' | ' |
Fair Value, Measurements, Nonrecurring | Other Real Estate Owned | ' | ' | ' | ' | ' |
Recorded Investment With an allowance recorded | 480,000 | ' | 480,000 | ' | 1,058,000 |
Related Allowance - other real estate owned | 10,000 | ' | 10,000 | ' | ' |
Additional provision for valuation allowance | ' | ' | $10,000 | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets, Fair Value | ' | ' |
Total available for sale securities | $183,411,000 | $174,700,000 |
Fair Value Measured on a Recurring Basis | Carrying Value | ' | ' |
Assets, Fair Value | ' | ' |
U.S. Treasuries | ' | 4,006,000 |
U.S. government-sponsored agencies | 39,334,000 | 37,255,000 |
Obligations of state and political subdivisions | 13,478,000 | 14,170,000 |
Mortgage-backed securities - residential | 114,446,000 | 105,428,000 |
Asset backed securities | 9,826,000 | 9,884,000 |
Corporate debt | 2,916,000 | 495,000 |
Other equity investments | 3,411,000 | 3,462,000 |
Total available for sale securities | 183,411,000 | 174,700,000 |
Liabilities, Fair Value | ' | ' |
Interest rate swap | 614,000 | 812,000 |
Fair Value Measured on a Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets, Fair Value | ' | ' |
U.S. Treasuries | ' | 4,006,000 |
Other equity investments | 3,351,000 | 3,402,000 |
Total available for sale securities | 3,351,000 | 7,408,000 |
Fair Value Measured on a Recurring Basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Assets, Fair Value | ' | ' |
U.S. government-sponsored agencies | ' | 37,255,000 |
Obligations of state and political subdivisions | ' | 14,170,000 |
Mortgage-backed securities - residential | ' | 105,428,000 |
Asset backed securities | ' | 9,884,000 |
Corporate debt | ' | 495,000 |
Other equity investments | ' | 60,000 |
Total available for sale securities | ' | 167,292,000 |
Liabilities, Fair Value | ' | ' |
Interest rate swap | 614,000 | 812,000 |
Fair Value Measured on a Recurring Basis | Significant Unobservable Inputs (Level 3) | ' | ' |
Assets, Fair Value | ' | ' |
U.S. government-sponsored agencies | 39,334,000 | ' |
Obligations of state and political subdivisions | 13,478,000 | ' |
Mortgage-backed securities - residential | 114,446,000 | ' |
Asset backed securities | 9,826,000 | ' |
Corporate debt | 2,916,000 | ' |
Other equity investments | 60,000 | ' |
Total available for sale securities | 180,060,000 | ' |
Liabilities, Fair Value | ' | ' |
Interest rate swap | $614,000 | ' |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details 1) (Fair Value, Measurements, Nonrecurring, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Carrying Value | ' | ' |
Assets, Fair Value | ' | ' |
Commercial loan secured by real estate | $6,930,000 | $6,490,000 |
Commercial loan - Other | ' | ' |
Commercial real estate | 13,096,000 | 10,445,000 |
Commerical construction | 852,000 | 4,373,000 |
Residential real estate | 650,000 | 413,000 |
Consumer loan secured by real estate | 817,000 | 800,000 |
Other real estate owned | 470,000 | 1,058,000 |
Impaired loans, Fair Value | 22,815,000 | 23,579,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets, Fair Value | ' | ' |
Commercial loan secured by real estate | ' | ' |
Commercial loan - Other | ' | ' |
Commercial real estate | ' | ' |
Commerical construction | ' | ' |
Residential real estate | ' | ' |
Consumer loan secured by real estate | ' | ' |
Other real estate owned | ' | ' |
Impaired loans, Fair Value | ' | ' |
Significant Other Observable Inputs (Level 2) | ' | ' |
Assets, Fair Value | ' | ' |
Commercial loan secured by real estate | ' | ' |
Commercial loan - Other | ' | ' |
Commercial real estate | ' | ' |
Commerical construction | ' | ' |
Residential real estate | ' | ' |
Consumer loan secured by real estate | ' | ' |
Other real estate owned | ' | ' |
Impaired loans, Fair Value | ' | ' |
Significant Unobservable Inputs (Level 3) | ' | ' |
Assets, Fair Value | ' | ' |
Commercial loan secured by real estate | 6,930,000 | 6,490,000 |
Commercial loan - Other | ' | ' |
Commercial real estate | 13,096,000 | 10,445,000 |
Commerical construction | 852,000 | 4,373,000 |
Residential real estate | 650,000 | 413,000 |
Consumer loan secured by real estate | 817,000 | 800,000 |
Other real estate owned | 470,000 | 1,058,000 |
Impaired loans, Fair Value | $22,815,000 | $23,579,000 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments (Details 2) (Significant Unobservable Inputs (Level 3), Fair Value, Measurements, Nonrecurring, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Impaired Loans | ' |
Fair value of financial assets | $22,345,000 |
Valuation Technique1 | 'Comparable real estate sales and/or the income approach. |
Unobservable Input | 'Adjustments for differences between comparable sales and income data available. |
Unobservable Input2 | 'Estimated selling costs |
Range of Unobservable inputs used in fair value & weighting factor | 5.00% |
Range of Unobservable inputs used in fair value & weighting factor2 | 7.00% |
Other Real Estate Owned | ' |
Fair value of financial assets | $470,000 |
Valuation Technique1 | 'Comparable real estate sales and/or the income approach. |
Unobservable Input | 'Adjustments for differences between comparable sales and income data available. |
Unobservable Input2 | 'Estimated selling costs |
Range of Unobservable inputs used in fair value & weighting factor2 | 7.00% |
Other Real Estate Owned | Minimum | ' |
Range of Unobservable inputs used in fair value & weighting factor | 5.00% |
Other Real Estate Owned | Maximum | ' |
Range of Unobservable inputs used in fair value & weighting factor | 10.00% |
Fair_Value_of_Financial_Instru6
Fair Value of Financial Instruments (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Financial assets: | ' | ' |
Securities available for sale | $183,411,000 | $174,700,000 |
Securities held to maturity | 27,512,000 | 31,768,000 |
Financial liabilities: | ' | ' |
Subordinated debenture | 7,217,000 | 7,217,000 |
Carrying Value | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 15,400,000 | 21,016,000 |
Securities available for sale | 183,411,000 | 174,700,000 |
Securities held to maturity | 26,161,000 | 29,718,000 |
Mortgage loans held for sale | 910,000 | 784,000 |
Loans, net | 428,799,000 | 429,832,000 |
Accrued interest receivable | 2,058,000 | 2,372,000 |
Financial liabilities: | ' | ' |
Deposits | 577,156,000 | 590,254,000 |
FHLB-NY Advances | 40,100,000 | 25,000,000 |
Securities sold under agreements to repurchase | 8,044,000 | 7,343,000 |
Subordinated debenture | 7,217,000 | 7,217,000 |
Accrued interest payable | 373,000 | 560,000 |
Interest rate swap | 614,000 | 812,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 15,400,000 | 21,016,000 |
Securities available for sale | 3,351,000 | 7,408,000 |
Securities held to maturity | ' | ' |
Mortgage loans held for sale | ' | ' |
Loans, net | ' | ' |
Accrued interest receivable | ' | 2,000 |
Financial liabilities: | ' | ' |
Deposits | 439,719,000 | 434,569,000 |
FHLB-NY Advances | ' | ' |
Securities sold under agreements to repurchase | ' | ' |
Subordinated debenture | ' | ' |
Accrued interest payable | 2,000 | 1,000 |
Interest rate swap | ' | ' |
Significant Other Observable Inputs (Level 2) | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | ' | ' |
Securities available for sale | 180,060,000 | 167,292,000 |
Securities held to maturity | 27,512,000 | 31,768,000 |
Mortgage loans held for sale | 910,000 | 784,000 |
Loans, net | ' | ' |
Accrued interest receivable | 706,000 | 908,000 |
Financial liabilities: | ' | ' |
Deposits | 137,977,000 | 157,219,000 |
FHLB-NY Advances | 40,483,000 | 25,825,000 |
Securities sold under agreements to repurchase | 8,367,000 | 7,883,000 |
Subordinated debenture | ' | ' |
Accrued interest payable | 353,000 | 540,000 |
Interest rate swap | 614,000 | 812,000 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | ' | ' |
Securities available for sale | ' | ' |
Securities held to maturity | ' | ' |
Mortgage loans held for sale | ' | ' |
Loans, net | 436,861,000 | 449,041,000 |
Accrued interest receivable | 1,351,000 | 1,462,000 |
Financial liabilities: | ' | ' |
Deposits | ' | ' |
FHLB-NY Advances | ' | ' |
Securities sold under agreements to repurchase | ' | ' |
Subordinated debenture | 7,209,000 | 7,112,000 |
Accrued interest payable | 18,000 | 19,000 |
Interest rate swap | ' | ' |
Earnings_Per_Share_Details_Nar
Earnings Per Share (Details Narrative) (Stock options) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock options | ' | ' | ' | ' |
Antidilutive securities excluded from computation of diluted EPS (in shares) | 1,101 | 6,983 | 4,849 | 42,321 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share Details | ' | ' | ' | ' |
Net income | $522,000 | $328,000 | $1,805,000 | $780,000 |
Dividends on preferred stock and accretion | 170,000 | 112,000 | 463,000 | 225,000 |
Net income available to common stockholders | $352,000 | $216,000 | $1,342,000 | $555,000 |
Weighted average shares (in shares) | 5,939,958 | 5,916,123 | 5,935,195 | 5,903,598 |
Total weighted average dilutive shares (in shares) | 5,939,958 | 5,916,123 | 5,935,195 | 5,903,598 |
Basic earnings per common share (in dollars per share) | $0.06 | $0.04 | $0.23 | $0.09 |
Diluted earnings per common share (in dollars per share) | $0.06 | $0.04 | $0.23 | $0.09 |
Preferred_Stock_Details_Narrat
Preferred Stock (Details Narrative) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 01, 2011 | Sep. 30, 2013 | Sep. 01, 2011 |
Minimum | Maximum | Senior Non-Cumulative Perpetual Preferred Stock, Series B | Senior Non-Cumulative Perpetual Preferred Stock, Series B | Series A Preferred Shares | |||
N | |||||||
Amount of fund established to encourage lending to small businesses by providing capital to qualified community banks with assets of less than $10 billion | ' | $30,000,000,000 | ' | ' | ' | ' | ' |
Stock issued during period (in shares) | ' | ' | ' | ' | 15,000 | ' | ' |
Stock issued during period, value | ' | ' | ' | ' | 15,000,000 | ' | ' |
Stock repurchased during period (in shares) | ' | ' | ' | ' | ' | ' | 10,000 |
Liquidation preference (in dollars per share) | ' | ' | ' | ' | $1,000 | ' | $1,000 |
Payment for repurchase of preferred stock including accrued but unpaid dividends | ' | ' | ' | ' | ' | ' | 10,022,222 |
Preferred stock dividend rate, Terms | ' | ' | ' | ' | ' | 'The dividend rate can fluctuate on a quarterly basis during the first ten quarters during which the Series B Preferred Shares are outstanding, based upon changes in the level of Qualified Small Business Lending (as defined in the Securities Purchase Agreement) from 1% to 5% per annum and, thereafter, for the eleventh through the first half of the nineteenth dividend periods, from 1% to 7%. In general, the dividend rate decreases as the level of the Bank's QSBL increases. In the event that the Series B Preferred Shares remain outstanding for more than four and one half years, the dividend rate will be fixed at 9%. Based upon the Bank's level of QSBL over a baseline level, the dividend rate for the initial dividend period was 1% | ' |
Dividend payment restrictions, Description | ' | ' | ' | ' | ' | 'Corporation may only declare and pay dividends on its Common Stock (or any other equity securities junior to the Series B Preferred Stock) if it has declared and paid dividends on the Series B Preferred Shares for the current dividend period and, if, after payment of such dividend, the dollar amount of the Corporation’s Tier 1 Capital would be at least 90% of the Tier 1 Capital on the date of entering into the SBLF program, excluding any subsequent net charge-offs and any redemption of the Series B Preferred Shares (the Tier 1 Dividend Threshold). The Tier 1 Dividend Threshold is subject to reduction, beginning on the second anniversary of the issuance and ending on the tenth anniversary, by 10% for each 1% increase in QSBL over the baseline level. | ' |
Aggregate liquidation preference outstanding | ' | ' | ' | ' | ' | $25,000,000 | ' |
Dividend rate, first ten quarters | ' | ' | 1.00% | 5.00% | ' | ' | ' |
Dividend rate, eleventh through first hald of ninteenth period | ' | ' | 1.00% | 7.00% | ' | ' | ' |
Dividend rate, fixed after four and one half years | 9.00% | ' | ' | ' | ' | ' | ' |
Tier I capital on date of entering the SBLF program (percentage) | 90.00% | ' | ' | ' | ' | ' | ' |
Number of dividend defaults periods required for having voting rights on preferred stock | ' | ' | ' | ' | ' | 6 | ' |
Number of additional directors which may be elected in BOD event of non-timely preferred dividends | ' | ' | ' | ' | ' | 2 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Unrealized gains and losses on available for sale (AFS) securities | ' | ' | ' | ' |
Unrealized gain (loss) on securities available-for-sale | ($2,122,000) | ' | $947,000 | ' |
Other comprehensive income before reclassifications | -354,000 | ' | -3,422,000 | ' |
Amounts reclassified from other comprehensive income | ' | ' | -1,000 | ' |
Net unrealized gain (losses), net of tax amount | -354,000 | -53,000 | -3,423,000 | 119,000 |
Unrealized gain (loss) on securities available-for-sale | -2,476,000 | ' | -2,476,000 | ' |
Unrealized gains and losses on derivatives | ' | ' | ' | ' |
Unrealized loss on fair value of interest rate swap | -389,000 | ' | -487,000 | ' |
Other comprehensive income before reclassifications | 20,000 | -1,000 | 118,000 | 9,000 |
Change in fair value of derivatives, net of tax amount | 20,000 | -1,000 | 118,000 | 9,000 |
Unrealized loss on fair value of interest rate swap | -369,000 | ' | -369,000 | ' |
Total | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), net | -2,511,000 | ' | 460,000 | ' |
Other comprehensive income before reclassifications | -334,000 | ' | -3,304,000 | ' |
Amounts reclassified from other comprehensive income | ' | ' | -1,000 | ' |
Total other comprehensive income (loss) | -334,000 | -54,000 | -3,305,000 | 128,000 |
Accumulated other comprehensive income (loss), net | ($2,845,000) | ' | ($2,845,000) | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Accumulated Other Comprehensive Income Details 1 | ' | ' | ' | ' |
Unrealized gains on AFS securities before tax | ' | $891,000 | $2,000 | $1,336,000 |
Tax effect | ' | ' | -1,000 | ' |
Total net of tax | ' | ' | 1,000 | ' |
Amounts reclassified from other comprehensive income | ' | ' | $1,000 | ' |