Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 20, 2015 | Jun. 30, 2014 | |
Document And Entity Information | |||
Entity Registrant Name | STEWARDSHIP FINANCIAL CORP | ||
Entity Central Index Key | 1023860 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity Reporting Status Current | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $22,992,000 | ||
Entity Common Stock, Shares Outstanding | 5,998,857 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||
Cash and due from banks | $9,849,000 | $17,024,000 |
Other interest-earning assets | 237,000 | 381,000 |
Cash and cash equivalents | 10,086,000 | 17,405,000 |
Securities available-for-sale | 124,918,000 | 168,411,000 |
Securities held to maturity; estimated fair value of $56,233,000 (2014) and $27,221,000 (2013) | 55,097,000 | 25,964,000 |
Federal Home Loan Bank of New York stock, at cost | 3,777,000 | 2,133,000 |
Loans held for sale | 2,800,000 | |
Loans, net of allowance for loan losses of $9,602,000 (2014) and $9,915,000 (2013) | 467,699,000 | 424,262,000 |
Premises and equipment, net | 6,577,000 | 5,739,000 |
Accrued interest receivable | 1,994,000 | 2,066,000 |
Other real estate owned, net | 1,308,000 | 451,000 |
Bank owned life insurance | 13,708,000 | 13,303,000 |
Other assets | 8,387,000 | 10,974,000 |
Total assets | 693,551,000 | 673,508,000 |
Deposits: | ||
Noninterest-bearing | 136,721,000 | 133,565,000 |
Interest-bearing | 419,755,000 | 444,026,000 |
Total deposits | 556,476,000 | 577,591,000 |
Federal Home Loan Bank of New York advances | 66,700,000 | 25,000,000 |
Securities sold under agreements to repurchase | 7,300,000 | |
Subordinated debentures | 7,217,000 | 7,217,000 |
Accrued interest payable | 308,000 | 401,000 |
Accrued expenses and other liabilities | 3,881,000 | 2,220,000 |
Total liabilities | 634,582,000 | 619,729,000 |
Commitments and contingencies | ||
Shareholders' equity | ||
Preferred stock, no par value; 2,500,000 shares authorized; 15,000 and 15,000 shares issued and outstanding at December 31, 2014 and 2013, respectively. Liquidation preference of $15,000,000 | 14,984,000 | 14,974,000 |
Common stock, no par value; 10,000,000 shares authorized; 6,034,933 and 5,943,767 shares issued and outstanding at December 31, 2014, and 2013, respectively | 41,125,000 | 40,690,000 |
Retained earnings | 3,817,000 | 1,905,000 |
Accumulated other comprehensive income (loss), net | -957,000 | -3,790,000 |
Total Shareholders' equity | 58,969,000 | 53,779,000 |
Total liabilities and Shareholders' equity | $693,551,000 | $673,508,000 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Condition (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||
Securities held to maturity | $56,233,000 | $27,221,000 |
Allowance for loan losses | 9,602,000 | 9,915,000 |
Shareholders' 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 | 6,034,933 | 5,943,767 |
Common stock, shares outstanding | 6,034,933 | 5,943,767 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income: | ||
Loans | $21,119,000 | $22,651,000 |
Securities held to maturity: | ||
Taxable | 580,000 | 287,000 |
Nontaxable | 648,000 | 756,000 |
Securities available-for-sale: | ||
Taxable | 2,444,000 | 2,485,000 |
Nontaxable | 24,000 | 271,000 |
FHLB dividends | 94,000 | 92,000 |
Other interest-earning assets | 25,000 | 29,000 |
Total interest income | 24,934,000 | 26,571,000 |
Interest expense: | ||
Deposits | 1,807,000 | 2,336,000 |
Borrowed money | 1,400,000 | 1,477,000 |
Total interest expense | 3,207,000 | 3,813,000 |
Net interest income before provision for loan losses | 21,727,000 | 22,758,000 |
Provision for loan losses | -50,000 | 3,775,000 |
Net interest income after provision for loan losses | 21,777,000 | 18,983,000 |
Noninterest income: | ||
Fees and service charges | 2,003,000 | 1,865,000 |
Bank owned life insurance | 405,000 | 351,000 |
Gain on calls and sales of securities, net | 165,000 | 153,000 |
Gain on sales of mortgage loans | 72,000 | 649,000 |
Loss on sale of loans | -241,000 | -372,000 |
Gain on sale of other real estate owned | 63,000 | 326,000 |
Gain on life insurance proceeds | 537,000 | |
Miscellaneous | 493,000 | 456,000 |
Total noninterest income | 2,960,000 | 3,965,000 |
Noninterest expenses: | ||
Salaries and employee benefits | 10,597,000 | 10,501,000 |
Occupancy, net | 1,934,000 | 2,045,000 |
Equipment | 687,000 | 794,000 |
Data processing | 1,702,000 | 1,425,000 |
Advertising | 820,000 | 558,000 |
FDIC insurance premium | 580,000 | 876,000 |
Charitable contributions | 180,000 | 130,000 |
Stationery and supplies | 212,000 | 209,000 |
Legal | 430,000 | 537,000 |
Bank-card related services | 517,000 | 526,000 |
Other real estate owned | 430,000 | 143,000 |
Miscellaneous | 2,144,000 | 2,094,000 |
Total noninterest expenses | 20,233,000 | 19,838,000 |
Income before income tax expense | 4,504,000 | 3,110,000 |
Income tax expense | 1,419,000 | 640,000 |
Net income | 3,085,000 | 2,470,000 |
Dividends on preferred stock | 683,000 | 633,000 |
Net income available to common shareholders | $2,402,000 | $1,837,000 |
Basic and diluted earnings per common share | $0.40 | $0.31 |
Weighted average number of basic and diluted common shares outstanding | 6,003,814 | 5,937,058 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||||||
Net income | $1,301,000 | $552,000 | $726,000 | $506,000 | $665,000 | $522,000 | $461,000 | $822,000 | $3,085,000 | $2,470,000 |
Other comprehensive income (loss), net of tax: | ||||||||||
Change in unrealized holding gains (losses) on securities available-for-sale arising during the period | 3,162,000 | -4,306,000 | ||||||||
Unrealized loss on securities reclassified from available for sale to held to maturity | -457,000 | |||||||||
Accretion of unrealized loss on securities reclassified to held to maturity | 80,000 | |||||||||
Reclassification adjustment for gains in net income | -99,000 | -96,000 | ||||||||
Change in fair value of interest rate swap in a cash flow hedging relationship | 147,000 | 152,000 | ||||||||
Total other comprehensive income (loss) | 2,833,000 | -4,250,000 | ||||||||
Total comprehensive income (loss) | $5,918,000 | ($1,780,000) |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Shareholders' Equity (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss), Net [Member] |
Balance beginning at Dec. 31, 2012 | $56,346,000 | $14,964,000 | $40,606,000 | $316,000 | $460,000 |
Balance beginning, shares at Dec. 31, 2012 | 5,924,865 | ||||
Cash dividends declared on common stock | -238,000 | -238,000 | |||
Payment of discount on dividend reinvestment plan | -2,000 | -2,000 | |||
Cash dividends declared on preferred stock | -633,000 | -633,000 | |||
Common stock issued under dividend reinvestment plan | 36,000 | 36,000 | |||
Common stock issued under dividend reinvestment plan, shares | 7,647 | ||||
Common stock issued under stock plans | 50,000 | 50,000 | |||
Common stock issued under stock plans, shares | 11,255 | ||||
Amortization of issuance costs | 10,000 | -10,000 | |||
Net income | 2,470,000 | 2,470,000 | |||
Other comprehensive income (loss) | -4,250,000 | -4,250,000 | |||
Balance ending at Dec. 31, 2013 | 53,779,000 | 14,974,000 | 40,690,000 | 1,905,000 | -3,790,000 |
Balance ending, shares at Dec. 31, 2013 | 5,943,767 | 5,943,767 | |||
Cash dividends declared on common stock | -300,000 | -300,000 | |||
Payment of discount on dividend reinvestment plan | -2,000 | -2,000 | |||
Cash dividends declared on preferred stock | -683,000 | -683,000 | |||
Common stock issued under dividend reinvestment plan | 37,000 | 37,000 | |||
Common stock issued under dividend reinvestment plan, shares | 8,589 | ||||
Common stock issued under stock plans | 151,000 | 151,000 | |||
Common stock issued under stock plans, shares | 32,916 | ||||
Issuance of restricted stock | 249,000 | -249,000 | |||
Issuance of restricted stock, shares | 49,661 | ||||
Amortization of restricted stock | 69,000 | 69,000 | |||
Amortization of issuance costs | 10,000 | -10,000 | |||
Net income | 3,085,000 | 3,085,000 | |||
Other comprehensive income (loss) | 2,833,000 | 2,833,000 | |||
Balance ending at Dec. 31, 2014 | $58,969,000 | $14,984,000 | $41,125,000 | $3,817,000 | ($957,000) |
Balance ending, shares at Dec. 31, 2014 | 6,034,933 | 6,034,933 |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Changes in Shareholders' Equity [Abstract] | ||
Cash dividends declared on common stock, dividend per share | $0.05 | $0.04 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | ||
Net income | $3,085,000 | $2,470,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of premises and equipment | 420,000 | 428,000 |
Amortization of premiums and accretion of discounts, net | 943,000 | 1,299,000 |
Amortization of restricted stock | 69,000 | |
Accretion of deferred loan fees | 42,000 | 44,000 |
Provision for loan losses | -50,000 | 3,775,000 |
Originations of mortgage loans held for sale | -4,608,000 | -39,815,000 |
Proceeds from sale of mortgage loans | 4,680,000 | 41,248,000 |
Proceeds from sale of loans | 2,559,000 | 3,089,000 |
Gain on sales of mortgage loans | -72,000 | -649,000 |
Loss on sale of loans | 241,000 | 372,000 |
Gain on sales and calls of securities | -165,000 | -153,000 |
Gain on sale of other real estate owned | -63,000 | -326,000 |
Deferred income tax expense | 626,000 | 370,000 |
Decrease in accrued interest receivable | 72,000 | 306,000 |
Decrease in accrued interest payable | -93,000 | -159,000 |
Earnings on bank owned life insurance | -405,000 | -351,000 |
Gain on life insurance proceeds | -537,000 | |
Decrease in other assets | 300,000 | 2,047,000 |
Increase in other liabilities | 1,808,000 | 704,000 |
Net cash provided by operating activities | 9,389,000 | 14,162,000 |
Cash flows from investing activities: | ||
Purchase of securities available for sale | -6,319,000 | -48,539,000 |
Proceeds from maturities and principal repayments on securities available-for-sale | 18,247,000 | 27,768,000 |
Proceeds from sales and calls on securities available-for-sale | 11,155,000 | 18,823,000 |
Purchase of securities held to maturity | -12,940,000 | |
Proceeds from maturities and principal repayments on securities held to maturity | 7,824,000 | 2,491,000 |
Proceeds from calls on securities held to maturity | 1,170,000 | |
(Purchase) Sale of FHLB-NY stock | -1,644,000 | 80,000 |
Net (increase) decrease in loans | -45,869,000 | -4,859,000 |
Proceeds from sale of other real estate owned | 1,608,000 | 1,253,000 |
Purchase of bank owned life insurance | -3,000,000 | |
Life insurance proceeds | 1,055,000 | |
Additions to premises and equipment | -1,258,000 | -522,000 |
Net cash used in investing activities | -29,196,000 | -4,280,000 |
Cash flows from financing activities: | ||
Net increase in noninterest-bearing deposits | 3,156,000 | 9,279,000 |
Net decrease in interest-bearing deposits | -24,271,000 | -21,942,000 |
Net increase in long term borrowings | 15,000,000 | |
Net decrease in securities sold under agreements to repurchase | -7,300,000 | -43,000 |
Net increase in short term borrowings | 26,700,000 | |
Cash dividends paid on common stock | -300,000 | -238,000 |
Cash dividends paid on preferred stock | -683,000 | -633,000 |
Payment of discount on dividend reinvestment plan | -2,000 | -2,000 |
Issuance of common stock | 188,000 | 86,000 |
Net cash provided by (used in) financing activities | 12,488,000 | -13,493,000 |
Net increase (decrease) in cash and cash equivalents | -7,319,000 | -3,611,000 |
Cash and cash equivalents - beginning | 17,405,000 | 21,016,000 |
Cash and cash equivalents - ending | 10,086,000 | 17,405,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 3,300,000 | 3,972,000 |
Cash paid during the period for income taxes | 358,000 | 275,000 |
Transfers from loans to loans held for sale | 6,261,000 | |
Reclassification of securities available-for-sale to held-to-maturity | 24,022,000 | |
Transfers from loans to other real estate owned | $2,440,000 | $349,000 |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | Note 1. SIGNIFICANT ACCOUNTING POLICIES |
Nature of operations and 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 (whose primary business is to own and manage an investment portfolio), Stewardship Realty LLC (whose primary business is to own and manage property at 612 Godwin Avenue, Midland Park, New Jersey), Atlantic Stewardship Insurance Company, LLC (whose primary business is insurance) 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 daily operations. All intercompany accounts and transactions are eliminated in the consolidated financial statements. | |
The Corporation provides financial services through the Bank's offices in Bergen, Passaic, and Morris Counties, New Jersey. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial, residential mortgage and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow generated from the operations of businesses. There are no significant concentrations of loans to any one industry or customer. The Corporation's lending activities are concentrated in loans secured by real estate located in northern New Jersey and, therefore, collectability of the loan portfolio is susceptible to changes in real estate market conditions in the northern New Jersey market. The Corporation has not made loans to borrowers outside the United States. | |
Basis of consolidated financial statements presentation | |
The consolidated financial statements of the Corporation have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). In preparing the financial statements, management is required to make estimates and assumptions, based on available information, that affect the amounts reported in the financial statements and the disclosures provided. The estimate of the allowance for loan losses, the valuation of deferred tax assets, and fair value and impairment of securities are particularly critical because they involve a higher degree of complexity and subjectivity and require estimates and assumptions about highly uncertain matters. Actual results may differ from those estimates and assumptions. The current economic environment has increased the degree of uncertainty inherent in these material estimates. | |
Cash flows | |
Cash and cash equivalents include cash and deposits with other financial institutions under 90 days and interest-bearing deposits in other banks with original maturities under 90 days. Net cash flows are reported for customer loan and deposit transactions, and short term borrowings and securities sold under agreement to repurchase. | |
Securities available-for-sale and held to maturity | |
The Corporation classifies its securities as held to maturity or available-for-sale. Investments in debt securities that the Corporation has the positive intent and ability to hold to maturity are classified as securities held to maturity and are carried at amortized cost. All other securities are classified as securities available-for-sale. Securities available-for-sale may be sold prior to maturity in response to changes in interest rates or prepayment risk, for asset/liability management purposes, or other similar factors. These securities are carried at fair value with unrealized holding gains or losses reported in a separate component of shareholders' equity, net of the related tax effects. | |
Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. | |
Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |
Federal Home Loan Bank (“FHLB”) Stock | |
The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock based on the level of borrowings and other factors. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery of par value. Cash dividends are reported as income. | |
Loans held for sale | |
Loans held for sale generally represent mortgage loans originated and intended for sale in the secondary market, which are carried at the lower of cost or fair value on an aggregate basis. Mortgage loans held for sale are carried net of deferred fees, which are recognized as income at the time the loans are sold to permanent investors. Gains or losses on the sale of mortgage loans held for sale are recognized at the settlement date and are determined by the difference between the net proceeds and the amortized cost. All loans are sold with loan servicing rights released to the buyer. There were no loans held for sale at December 31, 2014. | |
Loans held for sale at December 31, 2013 represent a group of nonperforming loans to a single borrower that were being marketed for sale. The estimated fair value was based on the fair value of the notes. | |
Loans | |
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal amount outstanding, net of deferred loan fees and costs and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The recorded investment in loans represents the outstanding principal balance after charge-offs and does not include accrued interest receivable as the inclusion is not significant to the reported amounts. | |
Interest income on loans is discontinued at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or are charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. | |
All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to an accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |
Allowance for loan losses | |
The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the collectability of the full loan balance is in doubt. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management's judgment, should be charged-off. | |
The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. | |
A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and for which the borrower is experiencing financial difficulties are considered troubled debt restructuring and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan's effective interest rate, the fair value of the note, or the fair value of the collateral if the loan is collateral-dependent. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan's effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. | |
The general component of the allowance is based on historical loss experience, including an appropriate loss emergence period, adjusted for qualitative factors. The historical loss experience is determined for each portfolio segment and class, and is based on the actual loss history experienced by the Corporation over the most recent 5 years. For each portfolio segment the Bank prepares an analysis which examines the historical loss experience as well as the loss emergence period. The analysis is updated quarterly for the purpose of determining the assigned allocation factors which are essential components of the allowance for loan losses calculation. This actual loss experience is supplemented with other qualitative factors based on the risks present for each portfolio segment or class. These qualitative factors include consideration of the following: levels of and trends in charge-offs; levels of and trends in delinquencies and impaired loans; levels and trends in loan size; levels of real estate concentrations; national and local economic trends and conditions; the depth and experience of lending management and staff; and other changes in lending policies, procedures, and practices. | |
For purposes of determining the allowance for loan losses, loans in the portfolio are segregated by type into the following segments: commercial, commercial real estate, construction, residential real estate, consumer and other. The Corporation also sub-divides these segments into classes based on the associated risks within those segments. Commercial loans are divided into the following two classes: secured by real estate and other. Construction loans are divided into the following two classes: commercial and residential. Consumer loans are divided into two classes: secured by real estate and other. The models and assumptions used to determine the allowance require management's judgment. Assumptions, data and computations are appropriately reviewed and properly documented. | |
The risk characteristics of each of the identified portfolio segments are as follows: | |
Commercial – Commercial loans are generally of higher risk and typically are made on the basis of the borrower's ability to make repayment from the cash flow of the borrower's business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. Furthermore, any collateral securing such loans may depreciate over time, may be difficult to appraise and may fluctuate in value. | |
Commercial Real Estate – Commercial real estate loans are secured by multi-family and nonresidential real estate and generally have larger balances and generally are considered to involve a greater degree of risk than residential real estate loans. Commercial real estate loans depend on the global cash flow analysis of the borrower and the net operating income of the property, the borrower's expertise, credit history and profitability, and the value of the underlying property. Of primary concern in commercial real estate lending is the borrower's creditworthiness and the cash flow from the property. Payments on loans secured by income producing properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject, to a greater extent than residential real estate loans, to adverse conditions in the real estate market or the economy. Commercial real estate is also subject to adverse market conditions that cause a decrease in market value or lease rates, obsolescence in location or function and market conditions associated with over supply of units in a specific region. | |
Construction – Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property's value at completion of construction and the estimated cost of construction. During the construction phase, a number of factors could result in delays and cost overruns. If the estimate of construction costs proves to be inaccurate, additional funds may be required to be advanced in excess of the amount originally committed to permit completion of the building. If the estimate of value proves to be inaccurate, the value of the building may be insufficient to assure full repayment if liquidation is required. If foreclosure is required on a building before or at completion due to a default, there can be no assurance that all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs will be recovered. | |
Residential Real Estate – Residential real estate loans are generally made on the basis of the borrower's ability to make repayment from his or her employment income or other income, and which are secured by real property whose value tends to be more easily ascertainable. Repayment of residential real estate loans is subject to adverse employment conditions in the local economy leading to increased default rate and decreased market values from oversupply in a geographic area. In general, residential real estate loans depend on the borrower's continuing financial stability and, therefore, are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans. | |
Consumer loans – Consumer loans secured by real estate may entail greater risk than residential mortgage loans due to a lower lien position. In addition, other consumer loans, particularly loans secured by assets that depreciate rapidly, such as motor vehicles, are subject to greater risk. In all cases, collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower's continuing financial stability and, therefore, are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans. | |
Generally, when it is probable that some portion or all of a loan balance will not be collected, regardless of portfolio segment, that amount is charged-off as a loss against the allowance for loan losses. On loans secured by real estate, the charge-offs reflect partial writedowns due to the initial valuation of market values of the underlying real estate collateral in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310-40. Consumer loans are generally charged-off in full when they reach 90 – 120 days past due. | |
Transfers of Financial Assets | |
Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Corporation, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
Premises and equipment | |
Land is stated at cost. Buildings and improvements and furniture, fixtures and equipment are stated at cost, less accumulated depreciation computed on the straight-line method over the estimated lives of each type of asset. Estimated useful lives are three to forty years for buildings and improvements and three to twenty-five years for furniture, fixtures and equipment. Leasehold improvements are stated at cost less accumulated amortization computed on the straight-line method over the shorter of the term of the lease or useful life. | |
Long-Term Assets | |
Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recovered from future undiscounted cash flows. If impaired, the assets are recorded at fair value. | |
Other Real Estate Owned | |
Other real estate owned (OREO) consists of property acquired through foreclosure or deed in lieu of foreclosure and property that is in-substance foreclosed. OREO is initially recorded at fair value less estimated selling costs. When a property is acquired, the excess of the carrying amount over fair value, if any, is charged to the allowance for loan losses. Subsequent adjustments to the carrying value are recorded in an allowance for OREO and charged to OREO expense. | |
Bank owned life insurance | |
The Corporation has purchased life insurance policies on certain key officers. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. | |
Dividend Reinvestment Plan | |
The Corporation offers shareholders the opportunity to participate in a dividend reinvestment plan. Plan participants may reinvest cash dividends to purchase new shares of stock at 95% of the market value, based on the most recent trades. Cash dividends due to the plan participants are utilized to acquire shares from either, or a combination of, the issuance of authorized shares or purchases of shares in the open market through an approved broker. The Corporation reimburses the broker for the 5% discount when the purchase of the Corporation's stock is completed. The plan is considered to be non-compensatory. | |
Stock-based compensation | |
Stock-based compensation cost is based on the fair value of the awards at the date of grant. The fair value of restricted stock awards is based upon the average of the high and low sale price reported for the Corporation's common stock on the date of grant. Compensation cost is recognized for restricted stock over the required service period, generally defined as the vesting period. | |
Income taxes | |
The Corporation records income taxes in accordance with ASC 740, Income Taxes, as amended, using the asset and liability method. Accordingly, deferred tax assets and liabilities: (i) are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns; (ii) are attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases; and (iii) are measured using enacted tax rates expected to apply in the years when those temporary differences are expected to be recovered or settled. Where applicable, deferred tax assets are reduced by a valuation allowance for any portions determined not likely to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period of enactment. The valuation allowance is adjusted, by a charge or credit to income tax expense, as changes in facts and circumstances warrant. | |
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense. | |
Comprehensive income (loss) | |
Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income includes unrealized gains and losses on securities available-for-sale, accretion of losses related to securities transferred from available-for-sale to held to maturity, and unrealized gains or losses on cash flow hedges, net of tax, which are also recognized as separate components of equity. | |
Earnings per common share | |
Basic earnings per common 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 the 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. | |
Loan Commitments and Related Financial Instruments | |
Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. | |
Loss contingencies | |
Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. | |
Dividend restriction | |
Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Corporation or by the Corporation to its shareholders. The Corporation's ability to pay cash dividends is based, among other things, on its ability to receive cash from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year's profits, combined with the retained net profits of the preceding two years. At December 31, 2014 the Bank could have paid dividends totaling approximately $3.94 million. At December 31, 2014, this restriction did not result in any effective limitation in the manner in which the Corporation is currently operating. See Note 10 to the consolidated financial statements with respect to restrictions on the Corporation's ability to declare and pay dividends resulting from the terms of the Corporation's Series B Preferred Shares. | |
Derivatives | |
Derivative financial instruments are recognized as assets or liabilities at fair value. The Corporation's only free standing derivative consists of an interest rate swap agreement, which is used as part of its asset liability management strategy to help manage interest rate risk related to its subordinated debentures. The Corporation does not use derivatives for trading purposes. | |
The Corporation designated the interest rate swap as a cash flow hedge, which is a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the change in the fair value on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Net cash settlements on this interest rate swap that qualify for hedge accounting are recorded in interest expense. Changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. | |
The Corporation formally documented the risk-management objective and the strategy for undertaking the hedge transaction at the inception of the hedging relationship. This documentation includes linking the fair value of the cash flow hedge to the subordinated debt on the balance sheet. The Corporation formally assessed, both at the hedge's inception and on an ongoing basis, whether the derivative instrument used is highly effective in offsetting changes in cash flows of the subordinated debt. | |
When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that would be accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. | |
Fair value of financial instruments | |
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Adoption of New Accounting Standards | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, "Income Taxes, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". This ASU requires that an unrecognized tax benefit, or a portion thereof, should be presented in the consolidated financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The standard is effective for reporting periods, including interim periods, beginning after December 15, 2013. The adoption of the standard did not have a material effect on the Corporation's consolidated financial statements. | |
In January 2014, the FASB issued ASU 2014-04, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40) Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” This ASU applies to all creditors who obtain physical possession of residential real estate property collateralizing a consumer mortgage loan in satisfaction of a receivable. The amendments in this ASU clarify when an in substance repossession or foreclosure occurs and requires disclosure of both (1) the amount of foreclosed residential real estate property held by a creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in ASU 2014-04 are effective for fiscal years, including interim periods, beginning after December 15, 2014. The adoption of the amendments in this ASU are not expected to have a material impact on the Corporation's consolidated financial statements. | |
SECURITIES_AVAILABLEFORSALE_AN
SECURITIES - AVAILABLE-FOR-SALE AND HELD TO MATURITY | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
SECURITIES - AVAILABLE-FOR-SALE AND HELD TO MATURITY [Abstract] | |||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 30,701,000 | $ | 94,000 | $ | 521,000 | $ | 30,274,000 | |||||||||||||||||||
Obligations of state and political subdivisions | 1,420,000 | 2,000 | 22,000 | 1,400,000 | |||||||||||||||||||||||
Mortgage-backed securities-residential | 76,894,000 | 521,000 | 672,000 | 76,743,000 | |||||||||||||||||||||||
Asset-backed securities (a) | 9,874,000 | 57,000 | 16,000 | 9,915,000 | |||||||||||||||||||||||
Corporate debt | 2,998,000 | 6,000 | 7,000 | 2,997,000 | |||||||||||||||||||||||
Total debt securities | 121,887,000 | 680,000 | 1,238,000 | 121,329,000 | |||||||||||||||||||||||
Other equity investments | 3,664,000 | — | 75,000 | 3,589,000 | |||||||||||||||||||||||
$ | 125,551,000 | $ | 680,000 | $ | 1,313,000 | $ | 124,918,000 | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 41,066,000 | $ | 15,000 | $ | 2,389,000 | $ | 38,692,000 | |||||||||||||||||||
Obligations of state and political subdivisions | 1,429,000 | — | 71,000 | 1,358,000 | |||||||||||||||||||||||
Mortgage-backed securities-residential | 115,134,000 | 244,000 | 3,143,000 | 112,235,000 | |||||||||||||||||||||||
Asset-backed securities (a) | 9,874,000 | 11,000 | 49,000 | 9,836,000 | |||||||||||||||||||||||
Corporate debt | 2,995,000 | 5,000 | 115,000 | 2,885,000 | |||||||||||||||||||||||
Total debt securities | 170,498,000 | 275,000 | 5,767,000 | 165,006,000 | |||||||||||||||||||||||
Other equity investments | 3,543,000 | — | 138,000 | 3,405,000 | |||||||||||||||||||||||
$ | 174,041,000 | $ | 275,000 | $ | 5,905,000 | $ | 168,411,000 | ||||||||||||||||||||
(a) | |||||||||||||||||||||||||||
Collateralized by student loans | |||||||||||||||||||||||||||
Cash proceeds realized from sales and calls of securities available-for-sale for the years ended December 31, 2014 and 2013 were $11,155,000 and $18,823,000, respectively. There were gross gains totaling $165,000 and no gross losses realized on sales or calls during the year ended December 31, 2014. There were gross gains totaling $233,000 and gross losses totaling $80,000 realized on sales or calls during the year ended December 31, 2013. | |||||||||||||||||||||||||||
The fair value of available-for-sale securities pledged to secure public deposits for the year ending December 31, 2014 and 2013 was $670,000 and $944,000, respectively. See also Note 7 to the consolidated financial statements regarding securities pledged as collateral for Federal Home Loan Bank of New York advances and securities sold under agreements to repurchase. | |||||||||||||||||||||||||||
The following is a summary of the held to maturity securities and related unrealized gains and losses: | |||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 11,962,000 | $ | 177,000 | $ | — | $ | 12,139,000 | |||||||||||||||||||
Obligations of state and political subdivisions | 15,636,000 | 514,000 | — | 16,150,000 | |||||||||||||||||||||||
Mortgage-backed securities-residential | 27,499,000 | 511,000 | 66,000 | 27,944,000 | |||||||||||||||||||||||
$ | 55,097,000 | $ | 1,202,000 | $ | 66,000 | $ | 56,233,000 | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 258,000 | $ | 31,000 | $ | — | $ | 289,000 | |||||||||||||||||||
Obligations of state and political subdivisions | 20,642,000 | 838,000 | — | 21,480,000 | |||||||||||||||||||||||
Mortgage-backed securities-residential | 5,064,000 | 388,000 | — | 5,452,000 | |||||||||||||||||||||||
$ | 25,964,000 | $ | 1,257,000 | $ | — | $ | 27,221,000 | ||||||||||||||||||||
There were no cash proceeds realized from calls of securities held to maturity for the year ended December 31, 2014. Cash proceeds realized from calls of securities held to maturity for the year ended December 31, 2013 were $1,170,000. There were no gross gains and no gross losses realized from calls for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||
The fair value of held to maturity securities pledged to secure public deposits for the year ending December 31, 2014 was $751,000. There were no held to maturity securities pledged to secure public deposits for the year ending December 31, 2013. See also Note 7 to the consolidated financial statements regarding securities pledged as collateral for Federal Home Loan Bank of New York advances and securities sold under agreements to repurchase. | |||||||||||||||||||||||||||
Issuers may have the right to call or prepay obligations with or without call or prepayment penalties. This might cause actual maturities to differ from the contractual maturities. | |||||||||||||||||||||||||||
Mortgage-backed securities are a type of asset-backed security secured by a mortgage or collection of mortgages, purchased by government agencies such as the Government National Mortgage Association and government sponsored agencies such as the Federal National Mortgage Association ("FNMA") and the Federal Home Loan Mortgage Corporation, which then issue securities that represent claims on the principal and interest payments made by borrowers on the loans in the pool. At year end 2014 and 2013, there were no holdings of securities of any one issuer other than the U.S. government and its agencies in an amount greater than 10% of shareholders' equity. | |||||||||||||||||||||||||||
The changes in available-for-sale and held to maturity securities for the year ending December 31, 2014 is primarily attributed to a $24.0 million transfer of previously-designated available-for-sale securities to a held to maturity designation at fair value. In accordance with ASC 320, Investment – Debt and Equity Securities, the Corporation is required at each balance sheet due date to reassess the classification of each security held. The reclassification, which occurred during the three months ended June 30, 2014, is permitted as the Corporation has appropriately determined the ability and intent to now hold these securities as an investment, until maturity or call. The securities were transferred to the held to maturity portfolio to protect our tangible common equity against rising interest rates and to appropriately align the mix of securities within held to maturity and available-for-sale. The securities transferred had a net loss of $742,000 that is reflected in accumulated other comprehensive loss on the consolidated statement of financial condition, net of subsequent amortization, which is being recognized over the life of the securities. | |||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||
December 31,2014 | |||||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||
Within one year | $ | 498,000 | $ | 500,000 | |||||||||||||||||||||||
After one year, but within five years | 10,424,000 | 10,319,000 | |||||||||||||||||||||||||
After five years, but within ten years | 16,474,000 | 16,422,000 | |||||||||||||||||||||||||
After ten years | 7,723,000 | 7,430,000 | |||||||||||||||||||||||||
Mortgage-backed securities - residential | 76,894,000 | 76,743,000 | |||||||||||||||||||||||||
Asset-backed securities | 9,874,000 | 9,915,000 | |||||||||||||||||||||||||
Total | $ | 121,887,000 | $ | 121,329,000 | |||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||
Within one year | $ | 3,638,000 | $ | 3,671,000 | |||||||||||||||||||||||
After one year, but within five years | 8,438,000 | 8,755,000 | |||||||||||||||||||||||||
After five years, but within ten years | 12,490,000 | 12,767,000 | |||||||||||||||||||||||||
After ten years | 3,032,000 | 3,096,000 | |||||||||||||||||||||||||
Mortgage-backed securities - residential | 27,499,000 | 27,944,000 | |||||||||||||||||||||||||
Total | $ | 55,097,000 | $ | 56,233,000 | |||||||||||||||||||||||
The following tables summarize the fair value and unrealized losses of those investment securities which reported an unrealized loss at December 31, 2014 and 2013, and if the unrealized loss position was continuous for the twelve months prior to December 31, 2014 and 2013. | |||||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||||
31-Dec-14 | 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 | $ | — | $ | — | $ | 23,750,000 | $ | (521,000 | ) | $ | 23,750,000 | $ | (521,000 | ) | |||||||||||||
Obligations of state and | |||||||||||||||||||||||||||
political subdivisions | — | — | 992,000 | (22,000 | ) | 992,000 | (22,000 | ) | |||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||
securities - residential | 5,985,000 | (22,000 | ) | 30,445,000 | (650,000 | ) | 36,430,000 | (672,000 | ) | ||||||||||||||||||
Asset-backed securities | 3,022,000 | (16,000 | ) | — | — | 3,022,000 | (16,000 | ) | |||||||||||||||||||
Corporate debt | — | — | 1,494,000 | (7,000 | ) | 1,494,000 | (7,000 | ) | |||||||||||||||||||
Other equity investments | — | — | 3,529,000 | (75,000 | ) | 3,529,000 | (75,000 | ) | |||||||||||||||||||
Total temporarily | |||||||||||||||||||||||||||
impaired securities | $ | 9,007,000 | $ | (38,000 | ) | $ | 60,210,000 | $ | (1,275,000 | ) | $ | 69,217,000 | $ | (1,313,000 | ) | ||||||||||||
31-Dec-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 | $ | 24,517,000 | $ | (1,531,000 | ) | $ | 8,987,000 | $ | (858,000 | ) | $ | 33,504,000 | $ | (2,389,000 | ) | ||||||||||||
Obligations of state and | |||||||||||||||||||||||||||
political subdivisions | 949,000 | (43,000 | ) | 409,000 | (28,000 | ) | 1,358,000 | (71,000 | ) | ||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||
securities - residential | 75,183,000 | (2,304,000 | ) | 13,334,000 | (839,000 | ) | 88,517,000 | (3,143,000 | ) | ||||||||||||||||||
Asset-backed securities | 8,791,000 | (49,000 | ) | — | — | 8,791,000 | (49,000 | ) | |||||||||||||||||||
Corporate debt | 2,385,000 | (115,000 | ) | — | — | 2,385,000 | (115,000 | ) | |||||||||||||||||||
Other equity investments | 3,346,000 | (138,000 | ) | — | — | 3,346,000 | (138,000 | ) | |||||||||||||||||||
Total temporarily | |||||||||||||||||||||||||||
impaired securities | $ | 115,171,000 | $ | (4,180,000 | ) | $ | 22,730,000 | $ | (1,725,000 | ) | $ | 137,901,000 | $ | (5,905,000 | ) | ||||||||||||
Held to Maturity | |||||||||||||||||||||||||||
31-Dec-14 | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||
securities - residential | $ | 8,788,000 | $ | (66,000 | ) | $ | — | $ | — | $ | 8,788,000 | $ | (66,000 | ) | |||||||||||||
Total temporarily | |||||||||||||||||||||||||||
impaired securities | $ | 8,788,000 | $ | (66,000 | ) | $ | — | $ | — | $ | 8,788,000 | $ | (66,000 | ) | |||||||||||||
31-Dec-13 | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||
securities - residential | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Total temporarily | |||||||||||||||||||||||||||
impaired securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Other-Than-Temporary-Impairment | |||||||||||||||||||||||||||
At December 31, 2014, there were twenty-four U.S. government-sponsored agency securities, two obligation of state and political subdivisions securities, twenty-eight mortgage-backed securities, two corporate debt securities, and one other equity investments security in a continuous loss position for 12 months or longer. Management has assessed the securities that were in an unrealized loss position at December 31, 2014 and 2013 and determined that any decline in fair value below amortized cost primarily relate to changes in interest rates and market spreads and was temporary. | |||||||||||||||||||||||||||
In making this determination management considered the following factors: the period of time the securities were in an unrealized loss position; the percentage decline in comparison to the securities' amortized cost; any adverse conditions specifically related to the security, an industry or a geographic area; the rating or changes to the rating by a credit rating agency; the financial condition of the issuer and guarantor and any recoveries or additional declines in fair value subsequent to the balance sheet date. | |||||||||||||||||||||||||||
Management does not intend to sell securities in an unrealized loss position and it is not more likely than not that the Corporation will be required to sell these securities before the recovery of their amortized cost bases, which may be at maturity. | |||||||||||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | Note 3. LOANS AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2014 and 2013, respectively, the loan portfolio consisted of the following: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | $ | 46,545,000 | $ | 46,162,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 29,307,000 | 27,728,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 286,063,000 | 253,035,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 4,215,000 | 3,445,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 77,836,000 | 77,540,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 27,319,000 | 25,458,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 939,000 | 534,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Small Business Administration - guaranteed portion | 5,000,000 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 96,000 | 107,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gross loans | 477,320,000 | 434,009,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Deferred loan costs (fees), net | 19,000 | (168,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | 9,602,000 | 9,915,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9,621,000 | 9,747,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, net | $ | 467,699,000 | $ | 424,262,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
During the year ended December 31, 2014, the Corporation purchased the guaranteed portion of several Small Business Administration (SBA) loans. Due to the guarantee of the principal amount of these SBA loans, no allowance for loan losses is established for these SBA loans. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2014 and 2013, loan participations sold by the Corporation to other lending institutions totaled approximately $12,948,000 and $12,725,000, respectively. These amounts are not included in the totals presented above. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Corporation has entered into lending transactions with directors, executive officers and principal shareholders of the Corporation and their affiliates. At December 31, 2014 and 2013, these loans aggregated approximately $2,533,000 and $2,515,000, respectively. During the year ended December 31, 2014, new loans totaling $854,000 were granted and repayments totaled approximately $836,000. The loans, at December 31, 2014, were current as to principal and interest payments. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in the allowance for loan losses is summarized as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Provision | Recoveries | Balance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning of | charged to | Loans | of loans | end of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
period | operations | charged-off | charged-off | period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 3,373,000 | $ | 377,000 | $ | (262,000 | ) | $ | 216,000 | $ | 3,704,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 5,665,000 | (396,000 | ) | (1,110,000 | ) | 858,000 | 5,017,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 117,000 | (15,000 | ) | — | 48,000 | 150,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 460,000 | (311,000 | ) | (7,000 | ) | — | 142,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 288,000 | (93,000 | ) | (6,000 | ) | — | 189,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 3,000 | — | (1,000 | ) | — | 2,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated | 9,000 | 388,000 | 1,000 | — | 398,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, ending | $ | 9,915,000 | $ | (50,000 | ) | $ | (1,385,000 | ) | $ | 1,122,000 | $ | 9,602,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Provision | Recoveries | Balance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning of | charged to | Loans | of loans | end of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
period | operations | charged-off | charged-off | period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 4,832,000 | $ | (824,000 | ) | $ | (983,000 | ) | $ | 348,000 | $ | 3,373,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,936,000 | 4,395,000 | (3,785,000 | ) | 119,000 | 5,665,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 169,000 | (54,000 | ) | (24,000 | ) | 26,000 | 117,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 308,000 | 235,000 | (83,000 | ) | — | 460,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 352,000 | 60,000 | (145,000 | ) | 21,000 | 288,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 3,000 | (1,000 | ) | (1,000 | ) | 2,000 | 3,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated | 41,000 | (36,000 | ) | — | 4,000 | 9,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, ending | $ | 10,641,000 | $ | 3,775,000 | $ | (5,021,000 | ) | $ | 520,000 | $ | 9,915,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
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 December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | Residential | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Real Estate | Construction | Real Estate | Consumer | SBA | Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
loan losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
balance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
attributable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
to loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | $ | 223,000 | $ | 697,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 920,000 | |||||||||||||||||||||||||||||||||||||||||
Collectively | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | 3,481,000 | 4,320,000 | 150,000 | 142,000 | 189,000 | — | 2,000 | 398,000 | 8,682,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
allowance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
balance | $ | 3,704,000 | $ | 5,017,000 | $ | 150,000 | $ | 142,000 | $ | 189,000 | $ | — | $ | 2,000 | $ | 398,000 | $ | 9,602,000 | |||||||||||||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
individually | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | $ | 6,042,000 | $ | 8,913,000 | $ | 288,000 | $ | 96,000 | $ | 326,000 | $ | — | $ | — | $ | — | $ | 15,665,000 | |||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
collectively | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | 69,810,000 | 277,150,000 | 3,927,000 | 77,740,000 | 27,932,000 | 5,000,000 | 96,000 | — | 461,655,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan balance | $ | 75,852,000 | $ | 286,063,000 | $ | 4,215,000 | $ | 77,836,000 | $ | 28,258,000 | $ | 5,000,000 | $ | 96,000 | $ | — | $ | 477,320,000 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 300,000 | $ | 72,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 372,000 | |||||||||||||||||||||||||||||||||||||||||||
Collectively | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | 3,073,000 | 5,593,000 | 117,000 | 460,000 | 288,000 | 3,000 | 9,000 | 9,543,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
allowance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
balance | $ | 3,373,000 | $ | 5,665,000 | $ | 117,000 | $ | 460,000 | $ | 288,000 | $ | 3,000 | $ | 9,000 | $ | 9,915,000 | |||||||||||||||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
individually | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | $ | 7,261,000 | $ | 12,821,000 | $ | 1,196,000 | $ | 755,000 | $ | 617,000 | $ | — | $ | — | $ | 22,650,000 | |||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
collectively | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | 66,629,000 | 240,214,000 | 2,249,000 | 76,785,000 | 25,375,000 | 107,000 | — | 411,359,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan balance | $ | 73,890,000 | $ | 253,035,000 | $ | 3,445,000 | $ | 77,540,000 | $ | 25,992,000 | $ | 107,000 | $ | — | $ | 434,009,000 | |||||||||||||||||||||||||||||||||||||||||||
The following table presents the recorded investment in nonaccrual loans at the dates indicated: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | $ | 1,923,000 | $ | 2,182,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | 73,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 1,284,000 | 6,592,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 96,000 | 755,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 325,000 | 617,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total nonaccrual loans | $ | 3,628,000 | $ | 10,219,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2013, there was one relationship, which included four nonaccrual commercial real estate loans totaling $2.8 million, which was classified as held for sale and included in the table above. The $2.8 million was sold and there were no nonaccrual loans classified as held for sale at December 31, 2014. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2014 and 2013 there were no loans that were past due 90 days and still accruing. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents loans individually evaluated for impairment by class of loans at and for the periods indicated: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At And For The Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | for Loan | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal | Recorded | Losses | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | $ | 5,997,000 | $ | 4,838,000 | $ | 5,443,000 | $ | 225,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 66,000 | 58,000 | 65,000 | 3,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,609,000 | 3,279,000 | 6,755,000 | 155,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 652,000 | 288,000 | 517,000 | 71,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 132,000 | 96,000 | 526,000 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 333,000 | 326,000 | 506,000 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 458,000 | 436,000 | $ | 213,000 | 437,000 | 16,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 713,000 | 710,000 | 10,000 | 750,000 | 44,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 5,643,000 | 5,634,000 | 697,000 | 3,922,000 | 233,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | 420,000 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total impaired loans | $ | 18,603,000 | $ | 15,665,000 | $ | 920,000 | $ | 19,341,000 | $ | 747,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
During the year ended December 31, 2014, no interest income was recognized on a cash basis. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At And For The Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | for Loan | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal | Recorded | Losses | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | $ | 7,204,000 | $ | 5,756,000 | $ | 6,286,000 | $ | 239,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 80,000 | 73,000 | 98,000 | 1,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 12,920,000 | 10,474,000 | 9,952,000 | 118,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 567,000 | 528,000 | 2,753,000 | 52,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 826,000 | 755,000 | 529,000 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 630,000 | 617,000 | 730,000 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 686,000 | 559,000 | $ | 269,000 | 900,000 | 28,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 877,000 | 873,000 | 31,000 | 1,067,000 | 52,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 2,356,000 | 2,347,000 | 72,000 | 3,174,000 | 47,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 1,043,000 | 668,000 | — | 430,000 | 43,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | — | — | — | 36,000 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | — | — | — | 68,000 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total impaired loans | $ | 27,189,000 | $ | 22,650,000 | $ | 372,000 | $ | 26,023,000 | $ | 580,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
During the year ended December 31, 2013, 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 December 31, 2014 and 2013. Nonaccrual loans are included in the disclosure by payment status: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater than | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Loans Not | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Due | Past Due | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
real estate | $ | 546,000 | $ | — | $ | 1,508,000 | $ | 2,054,000 | $ | 44,491,000 | $ | 46,545,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 225,000 | — | — | 225,000 | 29,082,000 | 29,307,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
estate | — | 330,000 | 836,000 | 1,166,000 | 284,897,000 | 286,063,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 4,215,000 | 4,215,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
estate | — | — | — | — | 77,836,000 | 77,836,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
real estate | — | — | 249,000 | 249,000 | 27,070,000 | 27,319,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | 939,000 | 939,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
SBA | — | — | — | — | 5,000,000 | 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | 96,000 | 96,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 771,000 | $ | 330,000 | $ | 2,593,000 | $ | 3,694,000 | $ | 473,626,000 | $ | 477,320,000 | |||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater than | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Loans Not | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Due | Past Due | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
real estate | $ | 866,000 | $ | — | $ | 499,000 | $ | 1,365,000 | $ | 44,797,000 | $ | 46,162,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | 27,728,000 | 27,728,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
estate | 1,043,000 | — | 5,100,000 | 6,143,000 | 246,892,000 | 253,035,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 3,445,000 | 3,445,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
estate | — | — | 523,000 | 523,000 | 77,017,000 | 77,540,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
real estate | — | — | 479,000 | 479,000 | 24,979,000 | 25,458,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | 3,000 | — | 3,000 | 531,000 | 534,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | 107,000 | 107,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,909,000 | $ | 3,000 | $ | 6,601,000 | $ | 8,513,000 | $ | 425,496,000 | $ | 434,009,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2014 and 2013, the Corporation had $12.9 million and $16.6 million, respectively, of loans whose terms have been modified in troubled debt restructurings. Of these loans, $12.0 million and $15.2 million were performing in accordance with their new terms at December 31, 2014 and 2013, respectively. The remaining troubled debt restructurings are reported as nonaccrual loans. Specific reserves of $868,000 and $281,000 have been allocated for the troubled debt restructurings at December 31, 2014 and 2013, respectively. As of December 31, 2013, the Corporation had committed $257,000 of additional funds to a single customer with an outstanding construction loan that is classified as a troubled debt restructuring. There were no committed amounts at December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 year ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 2 | $ | 252,000 | $ | 252,000 | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 1 | 17,000 | 17,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 1 | 111,000 | 111,000 | 3 | 6,361,000 | 6,361,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 3 | $ | 363,000 | $ | 363,000 | 4 | $ | 6,378,000 | $ | 6,378,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
During the year ended December, 2014, three loans were modified as troubled debt restructurings. The modification of the terms of the two commercial – secured by real estate loans represented a term out of the remaining balances on these matured loans as well as an interest rate reduction. The modification of the terms of the commercial real estate loan involved an extension of the loan with an additional borrower added. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
During the year ended December 31, 2013, four loans were modified as trouble debt restructurings. 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. The modification of the terms of two loans to one borrower totaling $4.3 million represented a period of principal forbearance. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, 2014 and December 31, 2013, the troubled debt restructurings described above resulted in a net increase in the allowance for loan losses of $587,000 and $63,000, respectively. There were no charge-offs in 2014 related to these troubled debt restructurings. In 2013 there were $616,000 of charge-offs related to these troubled debt restructurings. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A loan is considered to be in payment default once it is contractually 90 days past due under the modified terms. There are no troubled debt restructurings for which there was a payment default within twelve months following the modification. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Corporation categorizes 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 affected 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 December 31, 2014 and 2013, and based on the most recent analysis performed at those times, the risk category of loans by class is as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | $ | 41,091,000 | $ | 3,531,000 | $ | 1,923,000 | $ | — | $ | — | $ | 46,545,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 27,903,000 | 616,000 | 788,000 | — | — | 29,307,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 274,788,000 | 5,521,000 | 5,754,000 | — | — | 286,063,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 2,709,000 | 1,506,000 | — | — | — | 4,215,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 346,491,000 | $ | 11,174,000 | $ | 8,465,000 | $ | — | $ | — | $ | 366,130,000 | |||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | $ | 39,114,000 | $ | 3,387,000 | $ | 3,661,000 | $ | — | $ | — | $ | 46,162,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 25,604,000 | 1,325,000 | 799,000 | — | — | 27,728,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 241,488,000 | 7,326,000 | 4,221,000 | — | — | 253,035,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 2,164,000 | 1,281,000 | — | — | — | 3,445,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 308,370,000 | $ | 13,319,000 | $ | 8,681,000 | $ | — | $ | — | $ | 330,370,000 | |||||||||||||||||||||||||||||||||||||||||||||||
The Corporation considers the historical and projected performance of the loan portfolio and its impact on the allowance for loan losses. For residential real estate and consumer loan segments, the Corporation evaluates credit quality primarily based on payment activity and historical loss data. The following table presents the recorded investment in residential real estate and consumer loans based on payment activity as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Nonaccrual | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 77,740,000 | $ | 96,000 | $ | 77,836,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 25,867,000 | 1,452,000 | 27,319,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 930,000 | 9,000 | 939,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 104,537,000 | $ | 1,557,000 | $ | 106,094,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Nonaccrual | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 76,785,000 | $ | 755,000 | $ | 77,540,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 23,584,000 | 1,874,000 | 25,458,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 527,000 | 7,000 | 534,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 100,896,000 | $ | 2,636,000 | $ | 103,532,000 |
PREMISES_AND_EQUIPMENT_NET
PREMISES AND EQUIPMENT, NET | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PREMISES AND EQUIPMENT, NET [Abstract] | |||||||||
PREMISES AND EQUIPMENT, NET | Note 4. PREMISES AND EQUIPMENT, NET | ||||||||
The balance of premises and equipment consists of the following at December 31, 2014 and 2013: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 3,219,000 | $ | 2,999,000 | |||||
Buildings and improvements | 4,082,000 | 3,281,000 | |||||||
Leasehold improvements | 2,246,000 | 2,246,000 | |||||||
Furniture, fixtures, and equipment | 2,401,000 | 2,195,000 | |||||||
11,948,000 | 10,721,000 | ||||||||
Less: accumulated depreciation and amortization | 5,371,000 | 4,982,000 | |||||||
Total premises & equipment, net | $ | 6,577,000 | $ | 5,739,000 | |||||
Amounts charged to net occupancy expense for depreciation and amortization of banking premises and equipment amounted to $420,000 and $428,000 in 2014 and 2013, respectively. |
OTHER_REAL_ESTATE_OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
OTHER REAL ESTATE OWNED [Abstract] | ||||||||||
OTHER REAL ESTATE OWNED | Note 5. OTHER REAL ESTATE OWNED | |||||||||
The balance of other real estate owned consists of the following at December 31, 2014 and 2013: | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Aquired by foreclosure or deed in lieu of foreclosure | $ | 1,375,000 | $ | 480,000 | ||||||
Allowance for losses on other real estate owned | (67,000 | ) | (29,000 | ) | ||||||
Other real estate, net | $ | 1,308,000 | $ | 451,000 | ||||||
Activity in the allowance for losses on other real estate owned was as follows: | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | |||||||||
Beginning of year | $ | 29,000 | $ | — | ||||||
Additions charged to expense | 235,000 | 29,000 | ||||||||
Reductions from sales of other real estate owned | (197,000 | ) | — | |||||||
End of year | $ | 67,000 | $ | 29,000 | ||||||
Net gain on sale of other real estate owned totaled $63,000 and $326,000 for the year ended December 31, 2014 and 2013, respectively. | ||||||||||
Expenses related to other real estate owned include: | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | |||||||||
Provision for unrealized losses | $ | 235,000 | $ | 29,000 | ||||||
Operating expenses, net of rental income | 195,000 | 114,000 | ||||||||
End of year | $ | 430,000 | $ | 143,000 |
DEPOSITS
DEPOSITS | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
DEPOSITS [Abstract] | ||||||||||
DEPOSITS. | Note 6. DEPOSITS | |||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Noninterest-bearing demand | $ | 136,721,000 | $ | 133,565,000 | ||||||
Interest-bearing checking accounts | 168,319,000 | 179,892,000 | ||||||||
Money market accounts | 41,906,000 | 47,366,000 | ||||||||
Total interest-bearing demand | 210,225,000 | 227,258,000 | ||||||||
Statement savings and clubs | 71,202,000 | 71,103,000 | ||||||||
Business savings | 5,220,000 | 9,177,000 | ||||||||
Total savings | 76,422,000 | 80,280,000 | ||||||||
IRA investment and variable rate savings | 28,765,000 | 32,160,000 | ||||||||
Brokered certificates | 10,496,000 | — | ||||||||
Money market certificates | 93,847,000 | 104,328,000 | ||||||||
Total certificates of deposit | 133,108,000 | 136,488,000 | ||||||||
Total interest-bearing deposits | 419,755,000 | 444,026,000 | ||||||||
Total deposits | $ | 556,476,000 | $ | 577,591,000 | ||||||
Certificates of deposit with balances of $100,000 or more at December 31, 2014 and 2013, totaled $75,859,000 and $83,609,000, respectively. | ||||||||||
The scheduled maturities of certificates of deposit were as follows: | ||||||||||
December 31, | ||||||||||
2015 | 56,846,000 | |||||||||
2016 | 42,376,000 | |||||||||
2017 | 14,753,000 | |||||||||
2018 | 5,196,000 | |||||||||
2019 | 13,937,000 | |||||||||
$ | 133,108,000 |
BORROWINGS
BORROWINGS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
BORROWINGS [Abstract] | |||||||||||||||||
BORROWINGS | Note 7. BORROWINGS | ||||||||||||||||
Federal Home Loan Bank of New York Advances | |||||||||||||||||
The following table presents Federal Home Loan Bank of New York ("FHLB-NY") advances by maturity date: | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Advances maturing | Amount | Rate | Amount | Rate | |||||||||||||
Within one year | $ | 26,700,000 | 2.10% | $ | — | —% | |||||||||||
After one year, but within two years | 10,000,000 | 1.64% | — | —% | |||||||||||||
After two years, but within three years | 15,000,000 | 3.74% | 10,000,000 | 1.64% | |||||||||||||
After three years, but within four years | 15,000,000 | 3.35% | 5,000,000 | 1.16% | |||||||||||||
After four years, but within five years | — | —% | 10,000,000 | 1.85% | |||||||||||||
$ | 66,700,000 | 2.68% | $ | 25,000,000 | 1.63% | ||||||||||||
During 2014 and 2013, the maximum amount of FHLB-NY advances outstanding at any month end was $66.7 million and $40.1 million, respectively. The average amount of advances outstanding during the year ended December 31, 2014 and 2013 was $32.5 million and $26.7 million, respectively. | |||||||||||||||||
At December 31, 2014, FHLB advances totaling $10.0 million had a quarterly call feature which has reached its first call date. | |||||||||||||||||
Advances from the FHLB-NY are all fixed rate borrowings and are secured by a blanket assignment of the Corporation's unpledged, qualifying mortgage loans and by mortgage-backed securities or investment securities. The loans remain under the control of the Corporation. Securities are maintained in safekeeping with the FHLB-NY. As of December 31, 2014 and 2013, the advances were collateralized by $63.2 million, of first mortgage loans under the blanket lien arrangement. Additionally, the advances were collateralized by $21.5 million and $5.1 million of investment securities as of December 31, 2014 and 2013, respectively. Based on the collateral the Corporation was eligible to borrow up to a total of $84.7 million at December 31, 2014 and $68.3 million at December 31, 2013. | |||||||||||||||||
The Corporation has the ability to borrow overnight with the FHLB-NY. As of December 31, 2014 overnight borrowings with the FHLB-NY were $6.7 million. At December 31, 2013 there were no overnight borrowings with FHLB-NY. The overall borrowing capacity is contingent on available collateral to secure borrowings and the ability to purchase additional activity-based capital stock of the FHLB-NY. | |||||||||||||||||
The Corporation may also borrow from the Discount Window of the Federal Reserve Bank of New York based on the market value of collateral pledged. At December 31, 2014 and 2013, the Corporation's borrowing capacity at the Discount Window was $5.1 million and $5.7 million, respectively. In addition, at December 31, 2014 and 2013 the Corporation had available overnight variable repricing lines of credit with other correspondent banks totaling $35 million and $21 million, respectively, on an unsecured basis. There were no borrowings under these lines of credit at December 31, 2014 and 2013. | |||||||||||||||||
Securities Sold Under Agreements to Repurchase | |||||||||||||||||
Securities sold under agreements to repurchase represent financing arrangements. | |||||||||||||||||
As of December 31, 2013 the balance of securities sold under agreements to repurchase included a wholesale repurchase agreement with a broker that was repaid in full at maturity in 2014. After a fixed rate period, the borrowing converted to a floating rate at 9.00% minus 3-month London Interbank Offered Rate (LIBOR) measured on a quarterly basis with a 5.15% cap and a 0.0% floor. This repurchase agreement was collateralized by agency securities maintained in safekeeping with the broker. | |||||||||||||||||
The remaining balance at December 31, 2013 was securities sold to Bank customers at a fixed rate with maturities varying from 6 months to one year. These securities were maintained in a separate safekeeping account within the Corporation's control. | |||||||||||||||||
At December 31, 2013, securities sold under agreements to repurchase were collateralized by U.S. Treasury and U.S. government-sponsored agency securities having a carrying value of approximately $8,282,000. | |||||||||||||||||
At December 31, 2014, there were no securities sold under agreements to repurchase. | |||||||||||||||||
Information concerning securities sold under agreements to repurchase is summarized as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance | $ | — | $ | 7,300,000 | |||||||||||||
Weighted average interest rate at year end | 0.00% | 4.95% | |||||||||||||||
Maximum amount outstanding at any month end | |||||||||||||||||
during the year | $ | 7,601,000 | $ | 8,044,000 | |||||||||||||
Average amount outstanding during the year | $ | 5,255,000 | $ | 7,501,000 | |||||||||||||
Average interest rate during the year | 4.83% | 4.89% |
SUBORDINATED_DEBENTURES
SUBORDINATED DEBENTURES | 12 Months Ended |
Dec. 31, 2014 | |
SUBORDINATED DEBENTURES [Abstract] | |
SUBORDINATED DEBENTURES. | Note 8. SUBORDINATED DEBENTURES |
In 2003, the Corporation formed Stewardship Statutory Trust I (the “Trust”), a statutory business trust, which on September 17, 2003 issued $7.0 million Fixed/Floating Rate Capital Securities (“Capital Securities”). The Trust used the proceeds to purchase from the Corporation, $7,217,000 of Fixed/Floating Rate Junior Subordinated Deferrable Interest Debentures (“Debentures”) maturing September 17, 2033. The Trust is obligated to distribute all proceeds of a redemption whether voluntary or upon maturity, to holders of the Capital Securities. The Corporation's obligation with respect to the Capital Securities, and the Debentures, when taken together, provide a full and unconditional guarantee on a subordinated basis by the Corporation of the Trust's obligations to pay amounts when due on the Capital Securities. The Corporation is not considered the primary beneficiary of this Trust (variable interest entity); therefore the trust is not consolidated in the Corporation's consolidated financial statements, but rather the Debentures are shown as a liability. | |
Prior to September 17, 2008, the Capital Securities and the Debentures both had a fixed interest rate of 6.75%. Beginning September 17, 2008, the rate floats quarterly at a rate of three month LIBOR plus 2.95%. At both December 31, 2014 and 2013, the rate on both the Capital Securities and the Debentures was 3.19%. The Corporation has the right to defer payments of interest on the Debentures by extending the interest payment period for up to 20 consecutive quarterly periods. | |
The Debentures may be included in Tier 1 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. | |
REGULATORY_CAPITAL_REQUIREMENT
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||
REGULATORY CAPITAL REQUIREMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||
REGULATORY CAPITAL REQUIREMENTS | Note 9. REGULATORY CAPITAL REQUIREMENTS | |||||||||||||||||||||||||||||||||||||||||||
Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Regulations of the Board of Governors of the Federal Reserve System require bank holding companies to maintain minimum levels of regulatory capital. Under the regulations in effect at December 31, 2014, the Corporation was required to maintain (i) a minimum leverage ratio of Tier 1 capital to total adjusted assets of 4.0% and (ii) minimum ratios of Tier 1 and total capital to risk-weighted assets of 4.0% and 8.0%, respectively. The Bank must comply with substantially similar capital regulations promulgated by the FDIC. | ||||||||||||||||||||||||||||||||||||||||||||
Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. | ||||||||||||||||||||||||||||||||||||||||||||
At the years ended 2014 and 2013, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events that have occurred since that notification that management believes would change the Bank's category. | ||||||||||||||||||||||||||||||||||||||||||||
Management believes that, as of December 31, 2014, the Bank and the Corporation have met all capital adequacy requirements to which they are subject. The following is a summary of the Corporation's and the Bank's actual capital amounts and ratios as of December 31, 2014 and 2013 compared to the minimum capital adequacy requirements and the requirements for classification as a well capitalized institution under the prompt corrective action regulations: | ||||||||||||||||||||||||||||||||||||||||||||
To Be Well Capitalized | ||||||||||||||||||||||||||||||||||||||||||||
Required for Capital | Under Prompt Corrective | |||||||||||||||||||||||||||||||||||||||||||
Actual | Adequacy Purposes | Action Regulations | ||||||||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||||||
Leverage (Tier 1) capital | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 64,399,000 | 9.45% | $ | 27,265,000 | 4.00% | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Bank | 62,622,000 | 9.20% | 27,214,000 | 4.00% | $ | 34,018,000 | 5 | % | ||||||||||||||||||||||||||||||||||||
Risk-based capital: | ||||||||||||||||||||||||||||||||||||||||||||
Tier 1 | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 64,399,000 | 13.04% | 19,751,000 | 4.00% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Bank | 62,622,000 | 12.69% | 19,740,000 | 4.00% | 29,609,000 | 6 | % | |||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 70,614,000 | 14.30% | 39,502,000 | 8.00% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Bank | 68,833,000 | 13.95% | 39,479,000 | 8.00% | 49,349,000 | 10 | % | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||
Leverage (Tier 1) capital | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 61,461,000 | 9.04% | $ | 27,200,000 | 4.00% | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Bank | 59,976,000 | 8.84% | 27,135,000 | 4.00% | $ | 33,919,000 | 5 | % | ||||||||||||||||||||||||||||||||||||
Risk-based capital: | ||||||||||||||||||||||||||||||||||||||||||||
Tier 1 | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 61,461,000 | 13.52% | 18,184,000 | 4.00% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Bank | 59,976,000 | 13.21% | 18,156,000 | 4.00% | 27,233,000 | 6 | % | |||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 67,196,000 | 14.78% | 36,368,000 | 8.00% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Bank | 65,702,000 | 14.48% | 36,311,000 | 8.00% | 45,389,000 | 10 | % | |||||||||||||||||||||||||||||||||||||
As presented above, at December 31, 2014, the Bank's regulatory capital ratios exceeded the established minimum capital requirements. | ||||||||||||||||||||||||||||||||||||||||||||
PREFERRED_STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2014 | |
PREFERRED STOCK [Abstract] | |
PREFERRED STOCK | Note 10. 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 “Series B Preferred Issue Date”), pursuant to a Securities Purchase Agreement between the Corporation and the Secretary of the Treasury, 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. | |
The terms of the Series B Preferred Shares impose restrictions on the Corporation's ability to declare or pay dividends or purchase, redeem or otherwise acquire for consideration, shares of our 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 or junior to 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 was subject to fluctuation on a quarterly basis during the first ten quarters during which the Series B Preferred Shares were 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, since then, for the eleventh dividend period through that portion of the nineteenth dividend period prior to the four and one-half year anniversary of the Series B Preferred Issue Date (i.e., through February 29, 2016) the dividend rate became fixed at 4.56%. In general, the dividend rate decreased as the level of the Bank's QSBL increased. With respect to that portion of the nineteenth dividend period that begins on the four and one-half year anniversary of the Series B Preferred Issue Date (i.e., beginning on March 1, 2016) and all dividend periods thereafter, the dividend rate will be increased and fixed at 9%. 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 Shares) 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 of the issuance, 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 and, 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 Shares with an aggregate liquidation preference of at least $25 million 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 FRB, 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 currently includable, and are expected to be includable in the future, in Tier 1 capital for regulatory capital. | |
BENEFIT_PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2014 | |
BENEFIT PLANS [Abstract] | |
BENEFIT PLANS | Note 11. BENEFIT PLANS |
The Corporation has a noncontributory profit sharing plan covering all eligible employees. Contributions are determined by the Corporation's Board of Directors on an annual basis. Total profit sharing expense for the year ended December 31, 2014 and 2013 was $170,000 and $100,000, respectively. | |
The Corporation also has a 401(k) plan which covers all eligible employees. Participants may elect to contribute up to 100% of their salaries, not to exceed the applicable limitations as per the Internal Revenue Code. The Corporation, on an annual basis, may elect to match 50% of the participant's first 5% contribution. Total 401(k) expense for the years ended December 31, 2014 and 2013 amounted to approximately $141,000 and $155,000, respectively. | |
The Corporation offers an Employee Stock Purchase Plan which allows all eligible employees to authorize a specific payroll deduction from his or her base compensation for the purchase of the Corporation's Common Stock. Total stock purchases amounted to 6,560 and 8,439 shares during 2014 and 2013, respectively. At December 31, 2014, the Corporation had 171,074 shares reserved for issuance under this plan. | |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2014 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION. | Note 12. STOCK-BASED COMPENSATION |
At December 31, 2014, the Corporation had various types of the following stock award programs. | |
Director Stock Plan | |
The Director Stock Plan permits members of the Board of Directors of the Bank to receive any monthly Board of Directors' fees in shares of the Corporation's Common Stock, rather than in cash. Shares are purchased for directors in the open market and resulted in purchases of 5,060 and 7,162 shares for 2014 and 2013, respectively. At December 31, 2014, the Corporation had 528,094 shares authorized but unissued for this plan. | |
Stock Incentive Plan | |
The 2010 Stock Incentive Plan covers both employees and directors. The purpose of the plan is to promote the long-term growth and profitability of the Corporation by (i) providing key people with incentives to improve shareholder value and to contribute to the growth and financial success of the Corporation, and (ii) enabling the Corporation to attract, retain and reward the best available persons. There were 49,661 restricted shares granted during the year ended December 31, 2014. No awards were granted during the year ended December 31, 2013. The value of restricted shares is based upon an average of the high and low closing price of the common stock on the date of grant. The shares generally vest over a three year service period with compensation expense recognized on a straight-line basis. Stock based compensation expense related to stock grants was $69,000 for the year ended December 31, 2014. At December 31, 2014 the Corporation had 142,694 shares authorized but unissued for this plan. | |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
EARNINGS PER COMMON SHARE [Abstract] | ||||||||||
EARNINGS PER COMMON SHARE. | Note 13. 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: | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | |||||||||
Net Income | $ | 3,085,000 | $ | 2,470,000 | ||||||
Dividends on preferred stock and accretion | 683,000 | 633,000 | ||||||||
Net income available to common shareholders | $ | 2,402,000 | $ | 1,837,000 | ||||||
Weighted-average common shares outstanding - basic | 6,003,814 | 5,937,058 | ||||||||
Effect of dilutive securities - stock options | N/A | N/A | ||||||||
Weighted average common shares outstanding - diluted | 6,003,814 | 5,937,058 | ||||||||
Basic earnings per common share | $ | 0.4 | $ | 0.31 | ||||||
Diluted earnings per common share | $ | 0.4 | $ | 0.31 | ||||||
There were no stock options to purchase shares of common stock for the year ended December 31, 2014. For the year ended December 31, 2013, stock options to purchase 3,627 of average shares of common stock were not considered in computing diluted earnings per share of common stock because they were antidilutive. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
INCOME TAXES [Abstract] | |||||||||
INCOME TAXES. | Note 14. INCOME TAXES | ||||||||
The components of income tax benefit are summarized as follows: | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Current tax expense (benefit) | |||||||||
Federal | $ | 634,000 | $ | 221,000 | |||||
State | 159,000 | 49,000 | |||||||
793,000 | 270,000 | ||||||||
Deferred tax expense (benefit) | |||||||||
Federal | 392,000 | 180,000 | |||||||
State | 273,000 | 167,000 | |||||||
Valuation allowance | (39,000 | ) | 23,000 | ||||||
626,000 | 370,000 | ||||||||
$ | 1,419,000 | $ | 640,000 | ||||||
The following table presents a reconciliation between the reported income taxes and the income taxes which would be computed by applying the normal federal income tax rate (34%) to income before income taxes: | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Federal income tax | $ | 1,531,000 | $ | 1,057,000 | |||||
Add (deduct) effect of: | |||||||||
State income taxes, net of federal income tax effect | 246,000 | 146,000 | |||||||
Nontaxable interest income | (255,000 | ) | (376,000 | ) | |||||
Bank owned life insurance | (141,000 | ) | (305,000 | ) | |||||
Nondeductible expenses | 10,000 | 15,000 | |||||||
Write-off of Federal deferred tax asset | — | 90,000 | |||||||
Change in valuation reserve | — | 19,000 | |||||||
Other items, net | 28,000 | (6,000 | ) | ||||||
Effective federal income taxes | $ | 1,419,000 | $ | 640,000 | |||||
The tax effects of existing temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Allowance for loan losses | $ | 3,835,000 | $ | 3,960,000 | |||||
Accrued compensation | 159,000 | 120,000 | |||||||
Nonaccrual loan interest | 453,000 | 915,000 | |||||||
Depreciation | 382,000 | 434,000 | |||||||
Contribution carry forward | 146,000 | 178,000 | |||||||
Restricted stock | 28,000 | — | |||||||
OREO reserve | 27,000 | — | |||||||
Accrued contributions | 21,000 | — | |||||||
State net operating loss carry forward | 23,000 | 122,000 | |||||||
Unrealized loss on fair value of interest rate swap | 125,000 | 223,000 | |||||||
Unrealized loss on securities available-for-sale | 477,000 | 2,176,000 | |||||||
Alternate minimum tax | 425,000 | 434,000 | |||||||
6,101,000 | 8,562,000 | ||||||||
Valuation reserve | (163,000 | ) | (202,000 | ) | |||||
5,938,000 | 8,360,000 | ||||||||
Deferred tax liabilities | |||||||||
Other | 4,000 | 4,000 | |||||||
4,000 | 4,000 | ||||||||
Net deferred tax assets | $ | 5,934,000 | $ | 8,356,000 | |||||
At December 31, 2014, the Corporation has provided a full valuation allowance relating to both federal and state tax benefit of all contribution carryforwards and for the parent company only state tax benefit of net operating loss carryforwards. Management has determined that it is more likely than not that it will not be able to realize the deferred tax benefits described above. | |||||||||
The Corporation has approximately $359,000 of taxes paid in the carryback period that could be utilized against the deferred tax asset. The remaining $5.6 million of net deferred tax assets more likely than not will be utilized through future earnings. | |||||||||
The Corporation has alternate minimum tax (AMT) credit carryforwards of approximately $425,000 to reduce regular Federal income taxes in future years to the extent that the regular federal income tax exceeds AMT. The AMT credit carryforwards have no expiration date. | |||||||||
There were no unrecognized tax benefits during the years or at the years ended December 31, 2014 and 2013 and management does not expect a significant change in unrecognized benefits in the next twelve months. There were no tax interest and penalties recorded in the income statement for the years ended December 31, 2014 and 2013. There were no tax interest and penalties accrued for the years ended December 31, 2014 and 2013. | |||||||||
The Corporation and its subsidiaries are subject to U.S. federal income tax as well as income tax of the State of New Jersey. | |||||||||
The Corporation is no longer subject to examination by taxing authorities for years before 2010. | |||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||||
COMMITMENTS AND CONTINGENCIES. | Note 15. COMMITMENTS AND CONTINGENCIES | |||||
Loan Commitments | ||||||
The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements. The contract or notional amounts of those instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. | ||||||
The Corporation's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. | ||||||
At December 31, 2014, the Corporation had residential mortgage commitments to extend credit aggregating approximately $2.7 million at fixed rates averaging 3.78% and none at variable rates. Approximately $205,000 of these loan commitments will be sold to investors upon closing. Commercial, construction, and home equity loan commitments of approximately $15.8 million were extended with variable rates averaging 4.46% and approximately $1.9 million extended at fixed rates averaging 3.16% Generally, commitments were due to expire within approximately 60 days. | ||||||
Additionally, at December 31, 2014, the Corporation was committed for approximately $58.6 million of unused lines of credit, consisting of $16.7 million relating to a home equity line of credit program and an unsecured line of credit program (cash reserve), $4.4 million relating to an unsecured overdraft protection program, and $37.5 million relating to commercial and construction lines of credit. Amounts drawn on the unused lines of credit are predominantly assessed interest at rates which fluctuate with the base rate. | ||||||
Commitments under standby letters of credit were approximately $1.1 million at December 31, 2014, all of which expires within one year. Should any letter of credit be drawn on, the interest rate charged on the resulting note would fluctuate with the Corporation's base rate. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Corporation evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management's credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. | ||||||
Standby letters of credit are conditional commitments issued by the Corporation to guarantee payment or performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Corporation obtains collateral supporting those commitments for which collateral is deemed necessary. | ||||||
Lease Commitments | ||||||
At December 31, 2014, the minimum rental commitments on the noncancellable leases with an initial term of one year and expiring thereafter are as follows: | ||||||
Year Ending | Minimum | |||||
December 31, | Rent | |||||
2015 | $ | 693,000 | ||||
2016 | 661,000 | |||||
2017 | 648,000 | |||||
2018 | 584,000 | |||||
2019 | 513,000 | |||||
Thereafter | 1,760,000 | |||||
$ | 4,859,000 | |||||
Rental expense under long-term operating leases for branch offices amounted to approximately $1,106,000 and $1,210,000 during the years ended December 31, 2014 and 2013, respectively. Rental income was approximately $46,000 for the years ended December 31, 2014 and 2013. | ||||||
Contingencies | ||||||
The Corporation is also subject to litigation which arises primarily in the ordinary course of business. In the opinion of management the ultimate disposition of such litigation should not have a material adverse effect on the financial position of the Corporation. | ||||||
INTEREST_RATE_SWAP
INTEREST RATE SWAP | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
INTEREST RATE SWAP [Abstract] | ||||||||||||||||
INTEREST RATE SWAP. | Note 16. INTEREST RATE SWAP | |||||||||||||||
The Corporation utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent an amount exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. | ||||||||||||||||
Interest Rate Swap Designated as Cash Flow Hedge: The Corporation entered into an interest rate swap with a notional amount of $7 million. It was designated as a cash flow hedge of the Debentures (See Note 8 of the consolidated financial statements) and was determined to be fully effective during the years ended December 31, 2014 and 2013. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swap is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedge no longer be considered effective. The Corporation expects the hedge to remain fully effective during the remaining term of the swap. As of December 31, 2014, the Corporation has secured the interest rate swap by pledging investment securities with a fair value of $989,000. | ||||||||||||||||
Summary information as of December 31, 2014 about the interest rate swap designated as a cash flow hedge is as follows: | ||||||||||||||||
Notional amount | $7,000,000 | |||||||||||||||
Pay rate | 7.00% | |||||||||||||||
Receive rate | 3 month LIBOR plus 2.95% | |||||||||||||||
Maturity | 17-Mar-16 | |||||||||||||||
Unrealized loss | ($314,000) | |||||||||||||||
The net expense recorded on the swap transaction totaled $271,000 and $268,000 for the years ended December 31, 2014 and 2013, respectively, and is reported as a component of interest expense – borrowed money. | ||||||||||||||||
The fair value of the interest rate swap of ($314,000) and ($559,000) at December 31, 2014 and 2013, respectively, was included in accrued expenses and other liabilities on the Consolidated Statements of Financial Condition. | ||||||||||||||||
The following table presents the after tax net gains recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the periods indicated. | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||
Amount of gain | Amount of gain (loss) | |||||||||||||||
Amount of gain | (loss) reclassified | recognized in other | ||||||||||||||
recognized in OCI | from OCI to interest | noninterest income | ||||||||||||||
(Effective Portion) | income | (Ineffective Portion) | ||||||||||||||
Interest rate contract | $ | 147,000 | $ | — | $ | — | ||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Amount of gain | Amount of gain (loss) | |||||||||||||||
Amount of gain | (loss) reclassified | recognized in other | ||||||||||||||
recognized in OCI | from OCI to interest | noninterest income | ||||||||||||||
(Effective Portion) | income | (Ineffective Portion) | ||||||||||||||
Interest rate contract | $ | 152,000 | $ | — | $ | — | ||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | Note 17. 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) or 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. 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 | Significant | ||||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
U.S. government - | |||||||||||||||||||||
sponsored agencies | $ | 30,274,000 | $ | — | $ | 30,274,000 | $ | — | |||||||||||||
Obligations of state and | |||||||||||||||||||||
political subdivisions | 1,400,000 | — | 1,400,000 | — | |||||||||||||||||
Mortgage-backed | |||||||||||||||||||||
securities - residential | 76,743,000 | — | 76,743,000 | — | |||||||||||||||||
Asset-backed securities | 9,915,000 | — | 9,915,000 | — | |||||||||||||||||
Corporate bonds | 2,997,000 | — | 2,997,000 | — | |||||||||||||||||
Other equity investments | 3,589,000 | 3,529,000 | 60,000 | — | |||||||||||||||||
Total available-for-sale | |||||||||||||||||||||
securities | $ | 124,918,000 | $ | 3,529,000 | $ | 121,389,000 | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swap | $ | 314,000 | $ | — | $ | 314,000 | $ | — | |||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
U.S. government - | |||||||||||||||||||||
sponsored agencies | $ | 38,692,000 | $ | — | $ | 38,692,000 | $ | — | |||||||||||||
Obligations of state and | |||||||||||||||||||||
political subdivisions | 1,358,000 | — | 1,358,000 | — | |||||||||||||||||
Mortgage-backed | |||||||||||||||||||||
securities - residential | 112,235,000 | — | 112,235,000 | — | |||||||||||||||||
Asset-backed securities | 9,836,000 | — | 9,836,000 | — | |||||||||||||||||
Corporate bonds | 2,885,000 | — | 2,885,000 | — | |||||||||||||||||
Other equity investments | 3,405,000 | 3,345,000 | 60,000 | — | |||||||||||||||||
Total available-for-sale | |||||||||||||||||||||
securities | $ | 168,411,000 | $ | 3,345,000 | $ | 165,066,000 | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swap | $ | 559,000 | $ | — | $ | 559,000 | $ | — | |||||||||||||
There were no transfers of assets between Level 1 and Level 2 during 2014 and 2013. There were no changes to the valuation techniques for fair value measurements as of December 31, 2014 and 2013. | |||||||||||||||||||||
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 | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial: | |||||||||||||||||||||
Secured by real estate | $ | 1,348,000 | $ | — | $ | — | $ | 1,348,000 | |||||||||||||
Commercial real estate | 205,000 | — | — | 205,000 | |||||||||||||||||
Consumer: | |||||||||||||||||||||
Secured by real estate | 49,000 | — | — | 49,000 | |||||||||||||||||
Other real estate owned | 1,117,000 | — | — | 1,117,000 | |||||||||||||||||
$ | 2,719,000 | $ | — | $ | — | $ | 2,719,000 | ||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial: | |||||||||||||||||||||
Secured by real estate | $ | 5,861,000 | $ | — | $ | — | $ | 5,861,000 | |||||||||||||
Commercial real estate | 8,483,000 | — | — | 8,483,000 | |||||||||||||||||
Commercial Construction | 1,196,000 | — | — | 1,196,000 | |||||||||||||||||
Residential real estate | 755,000 | — | — | 755,000 | |||||||||||||||||
Consumer: | |||||||||||||||||||||
Secured by real estate | 617,000 | — | — | 617,000 | |||||||||||||||||
Other real estate owned | 451,000 | — | — | 451,000 | |||||||||||||||||
$ | 17,363,000 | $ | — | $ | — | $ | 17,363,000 | ||||||||||||||
Collateral-dependent impaired loans measured for impairment using the fair value of the collateral had a recorded investment of $1,690,000, with a valuation allowance of $88,000, resulting in an increase of the allocation for loan losses of $155,000 for the year ended December 31, 2014. | |||||||||||||||||||||
Collateral-dependent impaired loans measured for impairment using the fair value of the collateral had a recorded investment of $17,180,000, with a valuation allowance of $268,000, resulting in an increase of the provision for loan losses of $3,975,000 for the year ended December 31, 2013. | |||||||||||||||||||||
OREO had a recorded investment value of $1,375,000 with a $67,000 valuation allowance at December 31, 2014. At December 31, 2013, OREO had a recorded investment of $480,000 with a $29,000 valuation allowance. Additional valuation allowances of $235,000 and $29,000 were recorded for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
For the Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements were as follows: | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Assets | Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||
Impaired loans | $ | 1,602,000 | Comparable real estate sales and / or the income approach. | Adjustments for differences between comparable sales and income data available. | 5% - 25% | ||||||||||||||||
Estimated selling costs. | 7% | ||||||||||||||||||||
Other real estate owned | $ | 1,117,000 | Comparable real estate sales and / or the income approach. | Adjustments for differences between comparable sales and income data available. | 0% - 62% | ||||||||||||||||
Estimated selling costs. | 7% | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets | Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||
Impaired loans | $ | 16,912,000 | Comparable real estate sales and / or the income approach. | Adjustments for differences between comparable sales and income data available. | 1% - 25% | ||||||||||||||||
Estimated selling costs. | 7% | ||||||||||||||||||||
Other real estate owned | $ | 451,000 | Comparable real estate sales and / or the income approach. | Adjustments for differences between comparable sales and income data available. | 5% - 8% | ||||||||||||||||
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 | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 10,086,000 | $ | 10,086,000 | $ | — | $ | — | |||||||||||||
Securities available-for-sale | 124,918,000 | 3,529,000 | 121,389,000 | — | |||||||||||||||||
Securities held to maturity | 55,097,000 | — | 56,233,000 | — | |||||||||||||||||
FHLB-NY stock | 3,777,000 | N/A | N/A | N/A | |||||||||||||||||
Loans, net | 467,699,000 | — | — | 478,451,000 | |||||||||||||||||
Accrued interest receivable | 1,994,000 | — | 646,000 | 1,348,000 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 556,476,000 | 424,117,000 | 132,513,000 | — | |||||||||||||||||
FHLB-NY advances | 66,700,000 | — | 67,087,000 | — | |||||||||||||||||
Subordinated debentures | 7,217,000 | — | — | 7,203,000 | |||||||||||||||||
Accrued interest payable | 308,000 | 1,000 | 288,000 | 19,000 | |||||||||||||||||
Interest rate swap | 314,000 | — | 314,000 | — | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 17,405,000 | $ | 17,405,000 | $ | — | $ | — | |||||||||||||
Securities available-for-sale | 168,411,000 | 3,345,000 | 165,066,000 | — | |||||||||||||||||
Securities held to maturity | 25,964,000 | — | 27,221,000 | — | |||||||||||||||||
FHLB-NY stock | 2,133,000 | N/A | N/A | N/A | |||||||||||||||||
Loans held for sale | 2,800,000 | — | — | 2,800,000 | |||||||||||||||||
Loans, net | 424,262,000 | — | — | 434,126,000 | |||||||||||||||||
Accrued interest receivable | 2,066,000 | — | 735,000 | 1,331,000 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 577,591,000 | 441,790,000 | 136,268,000 | — | |||||||||||||||||
FHLB-NY advances | 25,000,000 | — | 25,404,000 | — | |||||||||||||||||
Securities sold under | |||||||||||||||||||||
agreements to repurchase | 7,300,000 | — | 7,525,000 | — | |||||||||||||||||
Subordinated debentures | 7,217,000 | — | — | 7,213,000 | |||||||||||||||||
Accrued interest payable | 401,000 | 1,000 | 380,000 | 20,000 | |||||||||||||||||
Interest rate swap | 559,000 | — | 559,000 | — | |||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments: | |||||||||||||||||||||
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. | |||||||||||||||||||||
Loans held for sale – The amount at December 31, 2013 represents the estimated fair value of a group of nonperforming loans to a single borrower that are being marketed for sale. The estimated fair value is based on the fair value of the note resulting in a Level 3 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. | |||||||||||||||||||||
FHLB-NY stock – It is not practicable to determine the fair value of FHLB-NY stock due to restrictions placed on the transferability of the stock. | |||||||||||||||||||||
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. 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 deposits. | |||||||||||||||||||||
FHLB-NY advances – With respect to FHLB-NY borrowings, 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 debentures – The fair value of the Debentures 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 Debentures resulting in a Level 3 classification. | |||||||||||||||||||||
Accrued interest payable – The carrying amount approximates fair value. | |||||||||||||||||||||
Interest rate swap – The fair value of derivatives, which is included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition, 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 December 31, 2014 and 2013 the fair value of such commitments were not material. | |||||||||||||||||||||
Limitations | |||||||||||||||||||||
The preceding fair value estimates were made at December 31, 2014 and 2013 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 December 31, 2014 and 2013, 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. | |||||||||||||||||||||
PARENT_COMPANY_ONLY
PARENT COMPANY ONLY | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PARENT COMPANY ONLY [Abstract] | |||||||||
PARENT COMPANY ONLY | Note 18. PARENT COMPANY ONLY | ||||||||
The Corporation was formed in January 1995 as a bank holding company to operate its wholly-owned subsidiary, Atlantic Stewardship Bank. The earnings of the Bank are recognized by the Corporation using the equity method of accounting. Accordingly, the Bank dividends paid reduce the Corporation's investment in the subsidiary. Condensed financial statements are presented below: | |||||||||
Condensed Statements of Financial Condition | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash and due from banks | $ | 253,000 | $ | 231,000 | |||||
Securities available-for-sale | 989,000 | 951,000 | |||||||
Investment in subsidiary | 64,388,000 | 59,662,000 | |||||||
Accrued interest receivable | 2,000 | 2,000 | |||||||
Other assets | 964,000 | 701,000 | |||||||
Total assets | $ | 66,596,000 | $ | 61,547,000 | |||||
Liabilities and Shareholders' equity | |||||||||
Subordinated debentures | $ | 7,217,000 | $ | 7,217,000 | |||||
Other liabilities | 410,000 | 551,000 | |||||||
Shareholders' equity | 58,969,000 | 53,779,000 | |||||||
Total liabilities and Shareholders' equity | $ | 66,596,000 | $ | 61,547,000 | |||||
Condensed Statements of Income | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Interest income - securities available-for-sale | $ | 15,000 | $ | 15,000 | |||||
Dividend income | 1,610,000 | 1,475,000 | |||||||
Other income | 7,000 | 7,000 | |||||||
Total income | 1,632,000 | 1,497,000 | |||||||
Interest expense | 504,000 | 504,000 | |||||||
Other expenses | 306,000 | 321,000 | |||||||
Total expenses | 810,000 | 825,000 | |||||||
Income before income tax benefit | 822,000 | 672,000 | |||||||
Tax benefit | (266,000 | ) | (272,000 | ) | |||||
Income before equity in undistributed earnings of subsidiary | 1,088,000 | 944,000 | |||||||
Equity in undistributed earnings of subsidiary | 1,997,000 | 1,526,000 | |||||||
Net income | 3,085,000 | 2,470,000 | |||||||
Dividends on preferred stock and accretion | 683,000 | 633,000 | |||||||
Net income available to common shareholders | $ | 2,402,000 | $ | 1,837,000 | |||||
Condensed Statements of Cash Flows | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Cash flows from operating activities: | |||||||||
Net income | $ | 3,085,000 | $ | 2,470,000 | |||||
Adjustments to reconcile net income to | |||||||||
net cash provided by operating activities: | |||||||||
Equity in undistributed earnings of subsidiary | (1,997,000 | ) | (1,526,000 | ) | |||||
Decrease in accrued interest receivable | — | 3,000 | |||||||
Increase in other assets | (276,000 | ) | (231,000 | ) | |||||
Increase in other liabilities | 7,000 | 39,000 | |||||||
Net cash provided by operating activities | 819,000 | 755,000 | |||||||
Cash flows from investing activities: | |||||||||
Purchase of securities available-for-sale | — | (500,000 | ) | ||||||
Proceeds from calls on securities available-for-sale | — | 500,000 | |||||||
Net cash provided by investing activities | — | — | |||||||
Cash flows from financing activities: | |||||||||
Cash dividends paid on common stock | (300,000 | ) | (238,000 | ) | |||||
Cash dividends paid on preferred stock | (683,000 | ) | (633,000 | ) | |||||
Payment of discount on dividend reinvestment plan | (2,000 | ) | (2,000 | ) | |||||
Issuance of common stock | 188,000 | 86,000 | |||||||
Net cash used in financing activities | (797,000 | ) | (787,000 | ) | |||||
Net decrease in cash and cash equivalents | 22,000 | (32,000 | ) | ||||||
Cash and cash equivalents - beginning | 231,000 | 263,000 | |||||||
Cash and cash equivalents - ending | $ | 253,000 | $ | 231,000 |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | Note 19. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||
The components of comprehensive income (loss), both gross and net of tax, are presented for the periods below: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
Tax | Tax | ||||||||||||||||||||||||
Gross | Effect | Net | Gross | Effect | Net | ||||||||||||||||||||
Net income | $ | 4,504,000 | $ | (1,419,000 | ) | $ | 3,085,000 | $ | 3,110,000 | $ | (640,000 | ) | $ | 2,470,000 | |||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||||
Change in unrealized holding | |||||||||||||||||||||||||
gains (losses) on securities | |||||||||||||||||||||||||
available-for-sale | 5,162,000 | (2,000,000 | ) | 3,162,000 | (7,031,000 | ) | 2,725,000 | (4,306,000 | ) | ||||||||||||||||
Reclassification adjustment | |||||||||||||||||||||||||
for gains in net income | (165,000 | ) | 66,000 | (99,000 | ) | (153,000 | ) | 57,000 | (96,000 | ) | |||||||||||||||
Loss on securities reclassifed | |||||||||||||||||||||||||
from available-for-sale to | |||||||||||||||||||||||||
held to maturity | (742,000 | ) | 285,000 | (457,000 | ) | — | — | — | |||||||||||||||||
Accretion of loss on securities | |||||||||||||||||||||||||
reclassified to held to maturity | 130,000 | (50,000 | ) | 80,000 | — | — | — | ||||||||||||||||||
Change in fair value of | |||||||||||||||||||||||||
interest rate swap | 246,000 | (99,000 | ) | 147,000 | 253,000 | (101,000 | ) | 152,000 | |||||||||||||||||
Total other comprehensive | |||||||||||||||||||||||||
income (loss) | 4,631,000 | (1,798,000 | ) | 2,833,000 | (6,931,000 | ) | 2,681,000 | (4,250,000 | ) | ||||||||||||||||
Total comprehensive income (loss) | $ | 9,135,000 | $ | (3,217,000 | ) | $ | 5,918,000 | $ | (3,821,000 | ) | $ | 2,041,000 | $ | (1,780,000 | ) | ||||||||||
The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive income for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||
Components of | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||
Unrealized Gains | Loss on securities | Unrealized | Accumulated | ||||||||||||||||||||||
and (Losses) on | reclassifed from | Gains and | Other | ||||||||||||||||||||||
Available-for-Sale | available for sale | (Losses) on | Comprehensive | ||||||||||||||||||||||
(AFS) Securities | to held to maturity | Derivatives | Income (Loss) | ||||||||||||||||||||||
Balance at December 31, 2013 | $ | (3,455,000 | ) | $ | — | $ | (335,000 | ) | $ | (3,790,000 | ) | ||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||
before reclassifications | 3,162,000 | (377,000 | ) | 147,000 | 2,932,000 | ||||||||||||||||||||
Amounts reclassified from | |||||||||||||||||||||||||
other comprehensive income | (99,000 | ) | — | — | (99,000 | ) | |||||||||||||||||||
Other comprehensive income, net | 3,063,000 | (377,000 | ) | 147,000 | 2,833,000 | ||||||||||||||||||||
Balance at December 31, 2014 | $ | (392,000 | ) | $ | (377,000 | ) | $ | (188,000 | ) | $ | (957,000 | ) | |||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||
Components of | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||
Unrealized Gains | Loss on securities | Unrealized | Accumulated | ||||||||||||||||||||||
and (Losses) on | reclassifed from | Gains and | Other | ||||||||||||||||||||||
Available-for-Sale | available for sale | (Losses) on | Comprehensive | ||||||||||||||||||||||
(AFS) Securities | to held to maturity | Derivatives | Income (Loss) | ||||||||||||||||||||||
Balance at December 31, 2012 | $ | 947,000 | $ | — | $ | (487,000 | ) | $ | 460,000 | ||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||
before reclassifications | (4,306,000 | ) | — | 152,000 | (4,154,000 | ) | |||||||||||||||||||
Amounts reclassified from | |||||||||||||||||||||||||
other comprehensive income | (96,000 | ) | — | — | (96,000 | ) | |||||||||||||||||||
Other comprehensive income, net | (4,402,000 | ) | — | 152,000 | (4,250,000 | ) | |||||||||||||||||||
Balance at December 31, 2013 | $ | (3,455,000 | ) | $ | — | $ | (335,000 | ) | $ | (3,790,000 | ) | ||||||||||||||
The following table presents amounts reclassified from each component of accumulated other comprehensive income on a gross and net of tax basis for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||
Years Ended | Income | ||||||||||||||||||||||||
Components of Accumulated Other | December 31, | Statement | |||||||||||||||||||||||
Comprehensive (Loss) | 2014 | 2013 | Line Item | ||||||||||||||||||||||
Unrealized gains on AFS securities | |||||||||||||||||||||||||
before tax | $ | 165,000 | $ | 153,000 | Gains on securities transactions, net | ||||||||||||||||||||
Tax effect | (66,000 | ) | (57,000 | ) | |||||||||||||||||||||
Total, net of tax | 99,000 | 96,000 | |||||||||||||||||||||||
Total reclassifications, net of tax | $ | 99,000 | $ | 96,000 | |||||||||||||||||||||
QUARTERLY_FINANCIAL_DATA_Unaud
QUARTERLY FINANCIAL DATA (Unaudited) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract] | |||||||||||||||||||||
QUARTERLY FINANCIAL DATA (Unaudited) | Note 20. QUARTERLY FINANCIAL DATA (Unaudited) | ||||||||||||||||||||
The following table contains quarterly financial data for the years ended December 31, 2014 and 2013 (dollars in thousands). | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||||
Interest income | $ | 6,145 | $ | 6,186 | $ | 6,069 | $ | 6,534 | $ | 24,934 | |||||||||||
Interest expense | 839 | 810 | 791 | 767 | 3,207 | ||||||||||||||||
Net interest income before provision for loan losses | 5,306 | 5,376 | 5,278 | 5,767 | 21,727 | ||||||||||||||||
Provision for loan losses | — | — | 250 | (300 | ) | (50 | ) | ||||||||||||||
Net interest income after provision for loan losses | 5,306 | 5,376 | 5,028 | 6,067 | 21,777 | ||||||||||||||||
Noninterest income | 399 | 807 | 764 | 990 | 2,960 | ||||||||||||||||
Noninterest expenses | 5,094 | 5,106 | 4,989 | 5,044 | 20,233 | ||||||||||||||||
Income before income tax expense (benefit) | 611 | 1,077 | 803 | 2,013 | 4,504 | ||||||||||||||||
Income tax expense (benefit) | 105 | 351 | 251 | 712 | 1,419 | ||||||||||||||||
Net income | 506 | 726 | 552 | 1,301 | 3,085 | ||||||||||||||||
Dividends on preferred stock | 171 | 171 | 170 | 171 | 683 | ||||||||||||||||
Net income available to common shareholders | $ | 335 | $ | 555 | $ | 382 | $ | 1,130 | $ | 2,402 | |||||||||||
Basic and diluted earnings per share | $ | 0.06 | $ | 0.09 | $ | 0.06 | $ | 0.19 | $ | 0.4 | |||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||||
Interest income | $ | 6,870 | $ | 6,636 | $ | 6,536 | $ | 6,529 | $ | 26,571 | |||||||||||
Interest expense | 1,004 | 958 | 940 | 911 | 3,813 | ||||||||||||||||
Net interest income before provision for loan losses | 5,866 | 5,678 | 5,596 | 5,618 | 22,758 | ||||||||||||||||
Provision for loan losses | 1,600 | 850 | 900 | 425 | 3,775 | ||||||||||||||||
Net interest income after provision for loan losses | 4,266 | 4,828 | 4,696 | 5,193 | 18,983 | ||||||||||||||||
Noninterest income | 1,474 | 995 | 971 | 525 | 3,965 | ||||||||||||||||
Noninterest expenses | 4,932 | 5,131 | 4,874 | 4,901 | 19,838 | ||||||||||||||||
Income before income tax expense (benefit) | 808 | 692 | 793 | 817 | 3,110 | ||||||||||||||||
Income tax expense (benefit) | (14 | ) | 231 | 271 | 152 | 640 | |||||||||||||||
Net income | 822 | 461 | 522 | 665 | 2,470 | ||||||||||||||||
Dividends on preferred stock | 166 | 127 | 170 | 170 | 633 | ||||||||||||||||
Net income available to common shareholders | $ | 656 | $ | 334 | $ | 352 | $ | 495 | $ | 1,837 | |||||||||||
Basic and diluted earnings per share | $ | 0.11 | $ | 0.06 | $ | 0.06 | $ | 0.08 | $ | 0.31 |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Nature of operations and principles of consolidation | Nature of operations and 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 (whose primary business is to own and manage an investment portfolio), Stewardship Realty LLC (whose primary business is to own and manage property at 612 Godwin Avenue, Midland Park, New Jersey), Atlantic Stewardship Insurance Company, LLC (whose primary business is insurance) 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 daily operations. All intercompany accounts and transactions are eliminated in the consolidated financial statements. | |
The Corporation provides financial services through the Bank's offices in Bergen, Passaic, and Morris Counties, New Jersey. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial, residential mortgage and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow generated from the operations of businesses. There are no significant concentrations of loans to any one industry or customer. The Corporation's lending activities are concentrated in loans secured by real estate located in northern New Jersey and, therefore, collectability of the loan portfolio is susceptible to changes in real estate market conditions in the northern New Jersey market. The Corporation has not made loans to borrowers outside the United States. | |
Basis of consolidated financial statements presentation | Basis of consolidated financial statements presentation |
The consolidated financial statements of the Corporation have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). In preparing the financial statements, management is required to make estimates and assumptions, based on available information, that affect the amounts reported in the financial statements and the disclosures provided. The estimate of the allowance for loan losses, the valuation of deferred tax assets, and fair value and impairment of securities are particularly critical because they involve a higher degree of complexity and subjectivity and require estimates and assumptions about highly uncertain matters. Actual results may differ from those estimates and assumptions. The current economic environment has increased the degree of uncertainty inherent in these material estimates. | |
Cash flows | Cash flows |
Cash and cash equivalents include cash and deposits with other financial institutions under 90 days and interest-bearing deposits in other banks with original maturities under 90 days. Net cash flows are reported for customer loan and deposit transactions, and short term borrowings and securities sold under agreement to repurchase. | |
Securities available-forsale and held to maturity | Securities available-for-sale and held to maturity |
The Corporation classifies its securities as held to maturity or available-for-sale. Investments in debt securities that the Corporation has the positive intent and ability to hold to maturity are classified as securities held to maturity and are carried at amortized cost. All other securities are classified as securities available-for-sale. Securities available-for-sale may be sold prior to maturity in response to changes in interest rates or prepayment risk, for asset/liability management purposes, or other similar factors. These securities are carried at fair value with unrealized holding gains or losses reported in a separate component of shareholders' equity, net of the related tax effects. | |
Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. | |
Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |
Federal Home Loan Bank ("FHLB") Stock | Federal Home Loan Bank (“FHLB”) Stock |
The Bank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock based on the level of borrowings and other factors. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery of par value. Cash dividends are reported as income. | |
Loans held for sale | Loans held for sale |
Loans held for sale generally represent mortgage loans originated and intended for sale in the secondary market, which are carried at the lower of cost or fair value on an aggregate basis. Mortgage loans held for sale are carried net of deferred fees, which are recognized as income at the time the loans are sold to permanent investors. Gains or losses on the sale of mortgage loans held for sale are recognized at the settlement date and are determined by the difference between the net proceeds and the amortized cost. All loans are sold with loan servicing rights released to the buyer. There were no loans held for sale at December 31, 2014. | |
Loans held for sale at December 31, 2013 represent a group of nonperforming loans to a single borrower that were being marketed for sale. The estimated fair value was based on the fair value of the notes. | |
Loans | Loans |
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal amount outstanding, net of deferred loan fees and costs and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The recorded investment in loans represents the outstanding principal balance after charge-offs and does not include accrued interest receivable as the inclusion is not significant to the reported amounts. | |
Interest income on loans is discontinued at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or are charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. | |
All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to an accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |
Allowance for loan losses | Allowance for loan losses |
The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the collectability of the full loan balance is in doubt. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management's judgment, should be charged-off. | |
The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. | |
A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and for which the borrower is experiencing financial difficulties are considered troubled debt restructuring and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan's effective interest rate, the fair value of the note, or the fair value of the collateral if the loan is collateral-dependent. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan's effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. | |
The general component of the allowance is based on historical loss experience, including an appropriate loss emergence period, adjusted for qualitative factors. The historical loss experience is determined for each portfolio segment and class, and is based on the actual loss history experienced by the Corporation over the most recent 5 years. For each portfolio segment the Bank prepares an analysis which examines the historical loss experience as well as the loss emergence period. The analysis is updated quarterly for the purpose of determining the assigned allocation factors which are essential components of the allowance for loan losses calculation. This actual loss experience is supplemented with other qualitative factors based on the risks present for each portfolio segment or class. These qualitative factors include consideration of the following: levels of and trends in charge-offs; levels of and trends in delinquencies and impaired loans; levels and trends in loan size; levels of real estate concentrations; national and local economic trends and conditions; the depth and experience of lending management and staff; and other changes in lending policies, procedures, and practices. | |
For purposes of determining the allowance for loan losses, loans in the portfolio are segregated by type into the following segments: commercial, commercial real estate, construction, residential real estate, consumer and other. The Corporation also sub-divides these segments into classes based on the associated risks within those segments. Commercial loans are divided into the following two classes: secured by real estate and other. Construction loans are divided into the following two classes: commercial and residential. Consumer loans are divided into two classes: secured by real estate and other. The models and assumptions used to determine the allowance require management's judgment. Assumptions, data and computations are appropriately reviewed and properly documented. | |
The risk characteristics of each of the identified portfolio segments are as follows: | |
Commercial – Commercial loans are generally of higher risk and typically are made on the basis of the borrower's ability to make repayment from the cash flow of the borrower's business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. Furthermore, any collateral securing such loans may depreciate over time, may be difficult to appraise and may fluctuate in value. | |
Commercial Real Estate – Commercial real estate loans are secured by multi-family and nonresidential real estate and generally have larger balances and generally are considered to involve a greater degree of risk than residential real estate loans. Commercial real estate loans depend on the global cash flow analysis of the borrower and the net operating income of the property, the borrower's expertise, credit history and profitability, and the value of the underlying property. Of primary concern in commercial real estate lending is the borrower's creditworthiness and the cash flow from the property. Payments on loans secured by income producing properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject, to a greater extent than residential real estate loans, to adverse conditions in the real estate market or the economy. Commercial real estate is also subject to adverse market conditions that cause a decrease in market value or lease rates, obsolescence in location or function and market conditions associated with over supply of units in a specific region. | |
Construction – Construction financing is generally considered to involve a higher degree of risk of loss than long-term financing on improved, occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the property's value at completion of construction and the estimated cost of construction. During the construction phase, a number of factors could result in delays and cost overruns. If the estimate of construction costs proves to be inaccurate, additional funds may be required to be advanced in excess of the amount originally committed to permit completion of the building. If the estimate of value proves to be inaccurate, the value of the building may be insufficient to assure full repayment if liquidation is required. If foreclosure is required on a building before or at completion due to a default, there can be no assurance that all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs will be recovered. | |
Residential Real Estate – Residential real estate loans are generally made on the basis of the borrower's ability to make repayment from his or her employment income or other income, and which are secured by real property whose value tends to be more easily ascertainable. Repayment of residential real estate loans is subject to adverse employment conditions in the local economy leading to increased default rate and decreased market values from oversupply in a geographic area. In general, residential real estate loans depend on the borrower's continuing financial stability and, therefore, are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans. | |
Consumer loans – Consumer loans secured by real estate may entail greater risk than residential mortgage loans due to a lower lien position. In addition, other consumer loans, particularly loans secured by assets that depreciate rapidly, such as motor vehicles, are subject to greater risk. In all cases, collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower's continuing financial stability and, therefore, are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans. | |
Generally, when it is probable that some portion or all of a loan balance will not be collected, regardless of portfolio segment, that amount is charged-off as a loss against the allowance for loan losses. On loans secured by real estate, the charge-offs reflect partial writedowns due to the initial valuation of market values of the underlying real estate collateral in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310-40. Consumer loans are generally charged-off in full when they reach 90 – 120 days past due. | |
Transfers of Financial Assets | Transfers of Financial Assets |
Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Corporation, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
Premises and Equipment | Premises and equipment |
Land is stated at cost. Buildings and improvements and furniture, fixtures and equipment are stated at cost, less accumulated depreciation computed on the straight-line method over the estimated lives of each type of asset. Estimated useful lives are three to forty years for buildings and improvements and three to twenty-five years for furniture, fixtures and equipment. Leasehold improvements are stated at cost less accumulated amortization computed on the straight-line method over the shorter of the term of the lease or useful life. | |
Long-Term Assets | Long-Term Assets |
Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recovered from future undiscounted cash flows. If impaired, the assets are recorded at fair value. | |
Other Real Estate Owned | Other Real Estate Owned |
Other real estate owned (OREO) consists of property acquired through foreclosure or deed in lieu of foreclosure and property that is in-substance foreclosed. OREO is initially recorded at fair value less estimated selling costs. When a property is acquired, the excess of the carrying amount over fair value, if any, is charged to the allowance for loan losses. Subsequent adjustments to the carrying value are recorded in an allowance for OREO and charged to OREO expense. | |
Bank owned life insurance | Bank owned life insurance |
The Corporation has purchased life insurance policies on certain key officers. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. | |
Dividend Reinvestment Plan | Dividend Reinvestment Plan |
The Corporation offers shareholders the opportunity to participate in a dividend reinvestment plan. Plan participants may reinvest cash dividends to purchase new shares of stock at 95% of the market value, based on the most recent trades. Cash dividends due to the plan participants are utilized to acquire shares from either, or a combination of, the issuance of authorized shares or purchases of shares in the open market through an approved broker. The Corporation reimburses the broker for the 5% discount when the purchase of the Corporation's stock is completed. The plan is considered to be non-compensatory. | |
Stock-based compensation | Stock-based compensation |
Stock-based compensation cost is based on the fair value of the awards at the date of grant. The fair value of restricted stock awards is based upon the average of the high and low sale price reported for the Corporation's common stock on the date of grant. Compensation cost is recognized for restricted stock over the required service period, generally defined as the vesting period. | |
Income taxes | Income taxes |
The Corporation records income taxes in accordance with ASC 740, Income Taxes, as amended, using the asset and liability method. Accordingly, deferred tax assets and liabilities: (i) are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns; (ii) are attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases; and (iii) are measured using enacted tax rates expected to apply in the years when those temporary differences are expected to be recovered or settled. Where applicable, deferred tax assets are reduced by a valuation allowance for any portions determined not likely to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period of enactment. The valuation allowance is adjusted, by a charge or credit to income tax expense, as changes in facts and circumstances warrant. | |
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense. | |
Comprehensive income (loss) | Comprehensive income (loss) |
Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income includes unrealized gains and losses on securities available-for-sale, accretion of losses related to securities transferred from available-for-sale to held to maturity, and unrealized gains or losses on cash flow hedges, net of tax, which are also recognized as separate components of equity. | |
Earnings per common share | Earnings per common share |
Basic earnings per common 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 the 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. | |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments |
Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. | |
Loss Contingencies | Loss contingencies |
Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. | |
Dividend restriction | Dividend restriction |
Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Corporation or by the Corporation to its shareholders. The Corporation's ability to pay cash dividends is based, among other things, on its ability to receive cash from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year's profits, combined with the retained net profits of the preceding two years. At December 31, 2014 the Bank could have paid dividends totaling approximately $3.94 million. At December 31, 2014, this restriction did not result in any effective limitation in the manner in which the Corporation is currently operating. See Note 10 to the consolidated financial statements with respect to restrictions on the Corporation's ability to declare and pay dividends resulting from the terms of the Corporation's Series B Preferred Shares. | |
Derivatives | Derivatives |
Derivative financial instruments are recognized as assets or liabilities at fair value. The Corporation's only free standing derivative consists of an interest rate swap agreement, which is used as part of its asset liability management strategy to help manage interest rate risk related to its subordinated debentures. The Corporation does not use derivatives for trading purposes. | |
The Corporation designated the interest rate swap as a cash flow hedge, which is a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the change in the fair value on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Net cash settlements on this interest rate swap that qualify for hedge accounting are recorded in interest expense. Changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. | |
The Corporation formally documented the risk-management objective and the strategy for undertaking the hedge transaction at the inception of the hedging relationship. This documentation includes linking the fair value of the cash flow hedge to the subordinated debt on the balance sheet. The Corporation formally assessed, both at the hedge's inception and on an ongoing basis, whether the derivative instrument used is highly effective in offsetting changes in cash flows of the subordinated debt. | |
When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that would be accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. | |
Fair Values of Financial Instruments | Fair value of financial instruments |
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Adoption of New Accounting Standards | Adoption of New Accounting Standards |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, "Income Taxes, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". This ASU requires that an unrecognized tax benefit, or a portion thereof, should be presented in the consolidated financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The standard is effective for reporting periods, including interim periods, beginning after December 15, 2013. The adoption of the standard did not have a material effect on the Corporation's consolidated financial statements. | |
In January 2014, the FASB issued ASU 2014-04, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40) Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” This ASU applies to all creditors who obtain physical possession of residential real estate property collateralizing a consumer mortgage loan in satisfaction of a receivable. The amendments in this ASU clarify when an in substance repossession or foreclosure occurs and requires disclosure of both (1) the amount of foreclosed residential real estate property held by a creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in ASU 2014-04 are effective for fiscal years, including interim periods, beginning after December 15, 2014. The adoption of the amendments in this ASU are not expected to have a material impact on the Corporation's consolidated financial statements. | |
SECURITIES_AVAILABLEFORSALE_AN1
SECURITIES - AVAILABLE-FOR-SALE AND HELD TO MATURITY (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
SECURITIES - AVAILABLE-FOR-SALE AND HELD TO MATURITY [Abstract] | |||||||||||||||||||||||||||
Schedule of Fair Value of Securities Available For Sale and Related Gross Unrealized Gains and Losses | December 31, 2014 | ||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 30,701,000 | $ | 94,000 | $ | 521,000 | $ | 30,274,000 | |||||||||||||||||||
Obligations of state and political subdivisions | 1,420,000 | 2,000 | 22,000 | 1,400,000 | |||||||||||||||||||||||
Mortgage-backed securities-residential | 76,894,000 | 521,000 | 672,000 | 76,743,000 | |||||||||||||||||||||||
Asset-backed securities (a) | 9,874,000 | 57,000 | 16,000 | 9,915,000 | |||||||||||||||||||||||
Corporate debt | 2,998,000 | 6,000 | 7,000 | 2,997,000 | |||||||||||||||||||||||
Total debt securities | 121,887,000 | 680,000 | 1,238,000 | 121,329,000 | |||||||||||||||||||||||
Other equity investments | 3,664,000 | — | 75,000 | 3,589,000 | |||||||||||||||||||||||
$ | 125,551,000 | $ | 680,000 | $ | 1,313,000 | $ | 124,918,000 | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 41,066,000 | $ | 15,000 | $ | 2,389,000 | $ | 38,692,000 | |||||||||||||||||||
Obligations of state and political subdivisions | 1,429,000 | — | 71,000 | 1,358,000 | |||||||||||||||||||||||
Mortgage-backed securities-residential | 115,134,000 | 244,000 | 3,143,000 | 112,235,000 | |||||||||||||||||||||||
Asset-backed securities (a) | 9,874,000 | 11,000 | 49,000 | 9,836,000 | |||||||||||||||||||||||
Corporate debt | 2,995,000 | 5,000 | 115,000 | 2,885,000 | |||||||||||||||||||||||
Total debt securities | 170,498,000 | 275,000 | 5,767,000 | 165,006,000 | |||||||||||||||||||||||
Other equity investments | 3,543,000 | — | 138,000 | 3,405,000 | |||||||||||||||||||||||
$ | 174,041,000 | $ | 275,000 | $ | 5,905,000 | $ | 168,411,000 | ||||||||||||||||||||
Schedule of Held to Maturity Securities and Related Unrecognized Gains and Losses | December 31, 2014 | ||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 11,962,000 | $ | 177,000 | $ | — | $ | 12,139,000 | |||||||||||||||||||
Obligations of state and political subdivisions | 15,636,000 | 514,000 | — | 16,150,000 | |||||||||||||||||||||||
Mortgage-backed securities-residential | 27,499,000 | 511,000 | 66,000 | 27,944,000 | |||||||||||||||||||||||
$ | 55,097,000 | $ | 1,202,000 | $ | 66,000 | $ | 56,233,000 | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 258,000 | $ | 31,000 | $ | — | $ | 289,000 | |||||||||||||||||||
Obligations of state and political subdivisions | 20,642,000 | 838,000 | — | 21,480,000 | |||||||||||||||||||||||
Mortgage-backed securities-residential | 5,064,000 | 388,000 | — | 5,452,000 | |||||||||||||||||||||||
$ | 25,964,000 | $ | 1,257,000 | $ | — | $ | 27,221,000 | ||||||||||||||||||||
Amortized Cost and Fair Value of the Investment Securities Portfolio by Contractual Maturity. | December 31,2014 | ||||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||
Within one year | $ | 498,000 | $ | 500,000 | |||||||||||||||||||||||
After one year, but within five years | 10,424,000 | 10,319,000 | |||||||||||||||||||||||||
After five years, but within ten years | 16,474,000 | 16,422,000 | |||||||||||||||||||||||||
After ten years | 7,723,000 | 7,430,000 | |||||||||||||||||||||||||
Mortgage-backed securities - residential | 76,894,000 | 76,743,000 | |||||||||||||||||||||||||
Asset-backed securities | 9,874,000 | 9,915,000 | |||||||||||||||||||||||||
Total | $ | 121,887,000 | $ | 121,329,000 | |||||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||
Within one year | $ | 3,638,000 | $ | 3,671,000 | |||||||||||||||||||||||
After one year, but within five years | 8,438,000 | 8,755,000 | |||||||||||||||||||||||||
After five years, but within ten years | 12,490,000 | 12,767,000 | |||||||||||||||||||||||||
After ten years | 3,032,000 | 3,096,000 | |||||||||||||||||||||||||
Mortgage-backed securities - residential | 27,499,000 | 27,944,000 | |||||||||||||||||||||||||
Total | $ | 55,097,000 | $ | 56,233,000 | |||||||||||||||||||||||
Schedule of Continuous unrealized loss position for investment securities available for sale and held to maturity | Available-for-Sale | ||||||||||||||||||||||||||
31-Dec-14 | 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 | $ | — | $ | — | $ | 23,750,000 | $ | (521,000 | ) | $ | 23,750,000 | $ | (521,000 | ) | |||||||||||||
Obligations of state and | |||||||||||||||||||||||||||
political subdivisions | — | — | 992,000 | (22,000 | ) | 992,000 | (22,000 | ) | |||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||
securities - residential | 5,985,000 | (22,000 | ) | 30,445,000 | (650,000 | ) | 36,430,000 | (672,000 | ) | ||||||||||||||||||
Asset-backed securities | 3,022,000 | (16,000 | ) | — | — | 3,022,000 | (16,000 | ) | |||||||||||||||||||
Corporate debt | — | — | 1,494,000 | (7,000 | ) | 1,494,000 | (7,000 | ) | |||||||||||||||||||
Other equity investments | — | — | 3,529,000 | (75,000 | ) | 3,529,000 | (75,000 | ) | |||||||||||||||||||
Total temporarily | |||||||||||||||||||||||||||
impaired securities | $ | 9,007,000 | $ | (38,000 | ) | $ | 60,210,000 | $ | (1,275,000 | ) | $ | 69,217,000 | $ | (1,313,000 | ) | ||||||||||||
31-Dec-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 | $ | 24,517,000 | $ | (1,531,000 | ) | $ | 8,987,000 | $ | (858,000 | ) | $ | 33,504,000 | $ | (2,389,000 | ) | ||||||||||||
Obligations of state and | |||||||||||||||||||||||||||
political subdivisions | 949,000 | (43,000 | ) | 409,000 | (28,000 | ) | 1,358,000 | (71,000 | ) | ||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||
securities - residential | 75,183,000 | (2,304,000 | ) | 13,334,000 | (839,000 | ) | 88,517,000 | (3,143,000 | ) | ||||||||||||||||||
Asset-backed securities | 8,791,000 | (49,000 | ) | — | — | 8,791,000 | (49,000 | ) | |||||||||||||||||||
Corporate debt | 2,385,000 | (115,000 | ) | — | — | 2,385,000 | (115,000 | ) | |||||||||||||||||||
Other equity investments | 3,346,000 | (138,000 | ) | — | — | 3,346,000 | (138,000 | ) | |||||||||||||||||||
Total temporarily | |||||||||||||||||||||||||||
impaired securities | $ | 115,171,000 | $ | (4,180,000 | ) | $ | 22,730,000 | $ | (1,725,000 | ) | $ | 137,901,000 | $ | (5,905,000 | ) | ||||||||||||
Held to Maturity | |||||||||||||||||||||||||||
31-Dec-14 | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||
securities - residential | $ | 8,788,000 | $ | (66,000 | ) | $ | — | $ | — | $ | 8,788,000 | $ | (66,000 | ) | |||||||||||||
Total temporarily | |||||||||||||||||||||||||||
impaired securities | $ | 8,788,000 | $ | (66,000 | ) | $ | — | $ | — | $ | 8,788,000 | $ | (66,000 | ) | |||||||||||||
31-Dec-13 | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||
securities - residential | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Total temporarily | |||||||||||||||||||||||||||
impaired securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
LOANS_AND_ALLOWANCE_FOR_LOAN_L1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Portfolio Schedule | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | $ | 46,545,000 | $ | 46,162,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 29,307,000 | 27,728,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 286,063,000 | 253,035,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 4,215,000 | 3,445,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 77,836,000 | 77,540,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 27,319,000 | 25,458,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 939,000 | 534,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Small Business Administration - guaranteed portion | 5,000,000 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 96,000 | 107,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gross loans | 477,320,000 | 434,009,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Deferred loan costs (fees), net | 19,000 | (168,000 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | 9,602,000 | 9,915,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9,621,000 | 9,747,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, net | $ | 467,699,000 | $ | 424,262,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allowance for Loan Losses | Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Provision | Recoveries | Balance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning of | charged to | Loans | of loans | end of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
period | operations | charged-off | charged-off | period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 3,373,000 | $ | 377,000 | $ | (262,000 | ) | $ | 216,000 | $ | 3,704,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 5,665,000 | (396,000 | ) | (1,110,000 | ) | 858,000 | 5,017,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 117,000 | (15,000 | ) | — | 48,000 | 150,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 460,000 | (311,000 | ) | (7,000 | ) | — | 142,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 288,000 | (93,000 | ) | (6,000 | ) | — | 189,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 3,000 | — | (1,000 | ) | — | 2,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated | 9,000 | 388,000 | 1,000 | — | 398,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, ending | $ | 9,915,000 | $ | (50,000 | ) | $ | (1,385,000 | ) | $ | 1,122,000 | $ | 9,602,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Provision | Recoveries | Balance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning of | charged to | Loans | of loans | end of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
period | operations | charged-off | charged-off | period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 4,832,000 | $ | (824,000 | ) | $ | (983,000 | ) | $ | 348,000 | $ | 3,373,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,936,000 | 4,395,000 | (3,785,000 | ) | 119,000 | 5,665,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 169,000 | (54,000 | ) | (24,000 | ) | 26,000 | 117,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 308,000 | 235,000 | (83,000 | ) | — | 460,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 352,000 | 60,000 | (145,000 | ) | 21,000 | 288,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 3,000 | (1,000 | ) | (1,000 | ) | 2,000 | 3,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated | 41,000 | (36,000 | ) | — | 4,000 | 9,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, ending | $ | 10,641,000 | $ | 3,775,000 | $ | (5,021,000 | ) | $ | 520,000 | $ | 9,915,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | Residential | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Real Estate | Construction | Real Estate | Consumer | SBA | Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
loan losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
balance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
attributable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
to loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | $ | 223,000 | $ | 697,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 920,000 | |||||||||||||||||||||||||||||||||||||||||
Collectively | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | 3,481,000 | 4,320,000 | 150,000 | 142,000 | 189,000 | — | 2,000 | 398,000 | 8,682,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
allowance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
balance | $ | 3,704,000 | $ | 5,017,000 | $ | 150,000 | $ | 142,000 | $ | 189,000 | $ | — | $ | 2,000 | $ | 398,000 | $ | 9,602,000 | |||||||||||||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
individually | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | $ | 6,042,000 | $ | 8,913,000 | $ | 288,000 | $ | 96,000 | $ | 326,000 | $ | — | $ | — | $ | — | $ | 15,665,000 | |||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
collectively | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | 69,810,000 | 277,150,000 | 3,927,000 | 77,740,000 | 27,932,000 | 5,000,000 | 96,000 | — | 461,655,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan balance | $ | 75,852,000 | $ | 286,063,000 | $ | 4,215,000 | $ | 77,836,000 | $ | 28,258,000 | $ | 5,000,000 | $ | 96,000 | $ | — | $ | 477,320,000 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 300,000 | $ | 72,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 372,000 | |||||||||||||||||||||||||||||||||||||||||||
Collectively | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | 3,073,000 | 5,593,000 | 117,000 | 460,000 | 288,000 | 3,000 | 9,000 | 9,543,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
allowance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
balance | $ | 3,373,000 | $ | 5,665,000 | $ | 117,000 | $ | 460,000 | $ | 288,000 | $ | 3,000 | $ | 9,000 | $ | 9,915,000 | |||||||||||||||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
individually | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | $ | 7,261,000 | $ | 12,821,000 | $ | 1,196,000 | $ | 755,000 | $ | 617,000 | $ | — | $ | — | $ | 22,650,000 | |||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
collectively | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
evaluated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
for | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
impairment | 66,629,000 | 240,214,000 | 2,249,000 | 76,785,000 | 25,375,000 | 107,000 | — | 411,359,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan balance | $ | 73,890,000 | $ | 253,035,000 | $ | 3,445,000 | $ | 77,540,000 | $ | 25,992,000 | $ | 107,000 | $ | — | $ | 434,009,000 | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Recorded Investment in Nonaccrual Loans | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | $ | 1,923,000 | $ | 2,182,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | 73,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 1,284,000 | 6,592,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 96,000 | 755,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 325,000 | 617,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total nonaccrual loans | $ | 3,628,000 | $ | 10,219,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recorded Investments in Impaired Loans | At And For The Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | for Loan | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal | Recorded | Losses | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | $ | 5,997,000 | $ | 4,838,000 | $ | 5,443,000 | $ | 225,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 66,000 | 58,000 | 65,000 | 3,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,609,000 | 3,279,000 | 6,755,000 | 155,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 652,000 | 288,000 | 517,000 | 71,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 132,000 | 96,000 | 526,000 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 333,000 | 326,000 | 506,000 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 458,000 | 436,000 | $ | 213,000 | 437,000 | 16,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 713,000 | 710,000 | 10,000 | 750,000 | 44,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 5,643,000 | 5,634,000 | 697,000 | 3,922,000 | 233,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | 420,000 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total impaired loans | $ | 18,603,000 | $ | 15,665,000 | $ | 920,000 | $ | 19,341,000 | $ | 747,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
At And For The Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid | for Loan | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal | Recorded | Losses | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | $ | 7,204,000 | $ | 5,756,000 | $ | 6,286,000 | $ | 239,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 80,000 | 73,000 | 98,000 | 1,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 12,920,000 | 10,474,000 | 9,952,000 | 118,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 567,000 | 528,000 | 2,753,000 | 52,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 826,000 | 755,000 | 529,000 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 630,000 | 617,000 | 730,000 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 686,000 | 559,000 | $ | 269,000 | 900,000 | 28,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 877,000 | 873,000 | 31,000 | 1,067,000 | 52,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 2,356,000 | 2,347,000 | 72,000 | 3,174,000 | 47,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 1,043,000 | 668,000 | — | 430,000 | 43,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | — | — | — | 36,000 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | — | — | — | 68,000 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total impaired loans | $ | 27,189,000 | $ | 22,650,000 | $ | 372,000 | $ | 26,023,000 | $ | 580,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Aging of the Recorded Investment in Past Due Loans by Class of Loans | December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater than | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Loans Not | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Due | Past Due | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
real estate | $ | 546,000 | $ | — | $ | 1,508,000 | $ | 2,054,000 | $ | 44,491,000 | $ | 46,545,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 225,000 | — | — | 225,000 | 29,082,000 | 29,307,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
estate | — | 330,000 | 836,000 | 1,166,000 | 284,897,000 | 286,063,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 4,215,000 | 4,215,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
estate | — | — | — | — | 77,836,000 | 77,836,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
real estate | — | — | 249,000 | 249,000 | 27,070,000 | 27,319,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | 939,000 | 939,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
SBA | — | — | — | — | 5,000,000 | 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | 96,000 | 96,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 771,000 | $ | 330,000 | $ | 2,593,000 | $ | 3,694,000 | $ | 473,626,000 | $ | 477,320,000 | |||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater than | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Loans Not | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Due | Past Due | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
real estate | $ | 866,000 | $ | — | $ | 499,000 | $ | 1,365,000 | $ | 44,797,000 | $ | 46,162,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | 27,728,000 | 27,728,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
estate | 1,043,000 | — | 5,100,000 | 6,143,000 | 246,892,000 | 253,035,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | 3,445,000 | 3,445,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
estate | — | — | 523,000 | 523,000 | 77,017,000 | 77,540,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
real estate | — | — | 479,000 | 479,000 | 24,979,000 | 25,458,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | 3,000 | — | 3,000 | 531,000 | 534,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | 107,000 | 107,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,909,000 | $ | 3,000 | $ | 6,601,000 | $ | 8,513,000 | $ | 425,496,000 | $ | 434,009,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Troubled Debt Restructurings | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 2 | $ | 252,000 | $ | 252,000 | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | 1 | 17,000 | 17,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 1 | 111,000 | 111,000 | 3 | 6,361,000 | 6,361,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 3 | $ | 363,000 | $ | 363,000 | 4 | $ | 6,378,000 | $ | 6,378,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans by Credit Quality Indicators | December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | $ | 41,091,000 | $ | 3,531,000 | $ | 1,923,000 | $ | — | $ | — | $ | 46,545,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 27,903,000 | 616,000 | 788,000 | — | — | 29,307,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 274,788,000 | 5,521,000 | 5,754,000 | — | — | 286,063,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 2,709,000 | 1,506,000 | — | — | — | 4,215,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 346,491,000 | $ | 11,174,000 | $ | 8,465,000 | $ | — | $ | — | $ | 366,130,000 | |||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | $ | 39,114,000 | $ | 3,387,000 | $ | 3,661,000 | $ | — | $ | — | $ | 46,162,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 25,604,000 | 1,325,000 | 799,000 | — | — | 27,728,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 241,488,000 | 7,326,000 | 4,221,000 | — | — | 253,035,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | 2,164,000 | 1,281,000 | — | — | — | 3,445,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 308,370,000 | $ | 13,319,000 | $ | 8,681,000 | $ | — | $ | — | $ | 330,370,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recorded Investment in Residential Real Estate and Consumer Loans Based on Payment Activity | December 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Nonaccrual | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 77,740,000 | $ | 96,000 | $ | 77,836,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 25,867,000 | 1,452,000 | 27,319,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 930,000 | 9,000 | 939,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 104,537,000 | $ | 1,557,000 | $ | 106,094,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Nonaccrual | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | $ | 76,785,000 | $ | 755,000 | $ | 77,540,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured by real estate | 23,584,000 | 1,874,000 | 25,458,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 527,000 | 7,000 | 534,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 100,896,000 | $ | 2,636,000 | $ | 103,532,000 |
PREMISES_AND_EQUIPMENT_NET_Tab
PREMISES AND EQUIPMENT, NET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PREMISES AND EQUIPMENT, NET [Abstract] | |||||||||
Schedule of Premises and Equipment | December 31, | ||||||||
2014 | 2013 | ||||||||
Land | $ | 3,219,000 | $ | 2,999,000 | |||||
Buildings and improvements | 4,082,000 | 3,281,000 | |||||||
Leasehold improvements | 2,246,000 | 2,246,000 | |||||||
Furniture, fixtures, and equipment | 2,401,000 | 2,195,000 | |||||||
11,948,000 | 10,721,000 | ||||||||
Less: accumulated depreciation and amortization | 5,371,000 | 4,982,000 | |||||||
Total premises & equipment, net | $ | 6,577,000 | $ | 5,739,000 |
OTHER_REAL_ESTATE_OWNED_Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
OTHER REAL ESTATE OWNED [Abstract] | ||||||||||
Schedule of Other Real Estate Owned | December 31, | |||||||||
2014 | 2013 | |||||||||
Aquired by foreclosure or deed in lieu of foreclosure | $ | 1,375,000 | $ | 480,000 | ||||||
Allowance for losses on other real estate owned | (67,000 | ) | (29,000 | ) | ||||||
Other real estate, net | $ | 1,308,000 | $ | 451,000 | ||||||
Schedule of Activity in Allowance for Losses on Other Real Estate Owned | Years Ended December 31, | |||||||||
2014 | 2013 | |||||||||
Beginning of year | $ | 29,000 | $ | — | ||||||
Additions charged to expense | 235,000 | 29,000 | ||||||||
Reductions from sales of other real estate owned | (197,000 | ) | — | |||||||
End of year | $ | 67,000 | $ | 29,000 | ||||||
Schedule of Expenses Realted to Other Real Estate Owned | Years Ended December 31, | |||||||||
2014 | 2013 | |||||||||
Provision for unrealized losses | $ | 235,000 | $ | 29,000 | ||||||
Operating expenses, net of rental income | 195,000 | 114,000 | ||||||||
End of year | $ | 430,000 | $ | 143,000 |
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
DEPOSITS [Abstract] | ||||||||||
Schedule of Deposit Liabilities | December 31, | |||||||||
2014 | 2013 | |||||||||
Noninterest-bearing demand | $ | 136,721,000 | $ | 133,565,000 | ||||||
Interest-bearing checking accounts | 168,319,000 | 179,892,000 | ||||||||
Money market accounts | 41,906,000 | 47,366,000 | ||||||||
Total interest-bearing demand | 210,225,000 | 227,258,000 | ||||||||
Statement savings and clubs | 71,202,000 | 71,103,000 | ||||||||
Business savings | 5,220,000 | 9,177,000 | ||||||||
Total savings | 76,422,000 | 80,280,000 | ||||||||
IRA investment and variable rate savings | 28,765,000 | 32,160,000 | ||||||||
Brokered certificates | 10,496,000 | — | ||||||||
Money market certificates | 93,847,000 | 104,328,000 | ||||||||
Total certificates of deposit | 133,108,000 | 136,488,000 | ||||||||
Total interest-bearing deposits | 419,755,000 | 444,026,000 | ||||||||
Total deposits | $ | 556,476,000 | $ | 577,591,000 | ||||||
Schedule of Maturities of Time Deposits | December 31, | |||||||||
2015 | 56,846,000 | |||||||||
2016 | 42,376,000 | |||||||||
2017 | 14,753,000 | |||||||||
2018 | 5,196,000 | |||||||||
2019 | 13,937,000 | |||||||||
$ | 133,108,000 |
BORROWINGS_Tables
BORROWINGS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
BORROWINGS [Abstract] | |||||||||||||||||
Schedule of Maturities of FHLB Advances | 31-Dec-14 | 31-Dec-13 | |||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Advances maturing | Amount | Rate | Amount | Rate | |||||||||||||
Within one year | $ | 26,700,000 | 2.10% | $ | — | —% | |||||||||||
After one year, but within two years | 10,000,000 | 1.64% | — | —% | |||||||||||||
After two years, but within three years | 15,000,000 | 3.74% | 10,000,000 | 1.64% | |||||||||||||
After three years, but within four years | 15,000,000 | 3.35% | 5,000,000 | 1.16% | |||||||||||||
After four years, but within five years | — | —% | 10,000,000 | 1.85% | |||||||||||||
$ | 66,700,000 | 2.68% | $ | 25,000,000 | 1.63% | ||||||||||||
Schedule of Securities Sold under Agreements to Repurchase | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance | $ | — | $ | 7,300,000 | |||||||||||||
Weighted average interest rate at year end | 0.00% | 4.95% | |||||||||||||||
Maximum amount outstanding at any month end | |||||||||||||||||
during the year | $ | 7,601,000 | $ | 8,044,000 | |||||||||||||
Average amount outstanding during the year | $ | 5,255,000 | $ | 7,501,000 | |||||||||||||
Average interest rate during the year | 4.83% | 4.89% |
REGULATORY_CAPITAL_REQUIREMENT1
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||
REGULATORY CAPITAL REQUIREMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||
Schedule of Regulatory Capital Requirements | To Be Well Capitalized | |||||||||||||||||||||||||||||||||||||||||||
Required for Capital | Under Prompt Corrective | |||||||||||||||||||||||||||||||||||||||||||
Actual | Adequacy Purposes | Action Regulations | ||||||||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||||||
Leverage (Tier 1) capital | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 64,399,000 | 9.45% | $ | 27,265,000 | 4.00% | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Bank | 62,622,000 | 9.20% | 27,214,000 | 4.00% | $ | 34,018,000 | 5 | % | ||||||||||||||||||||||||||||||||||||
Risk-based capital: | ||||||||||||||||||||||||||||||||||||||||||||
Tier 1 | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 64,399,000 | 13.04% | 19,751,000 | 4.00% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Bank | 62,622,000 | 12.69% | 19,740,000 | 4.00% | 29,609,000 | 6 | % | |||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 70,614,000 | 14.30% | 39,502,000 | 8.00% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Bank | 68,833,000 | 13.95% | 39,479,000 | 8.00% | 49,349,000 | 10 | % | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||
Leverage (Tier 1) capital | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 61,461,000 | 9.04% | $ | 27,200,000 | 4.00% | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Bank | 59,976,000 | 8.84% | 27,135,000 | 4.00% | $ | 33,919,000 | 5 | % | ||||||||||||||||||||||||||||||||||||
Risk-based capital: | ||||||||||||||||||||||||||||||||||||||||||||
Tier 1 | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 61,461,000 | 13.52% | 18,184,000 | 4.00% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Bank | 59,976,000 | 13.21% | 18,156,000 | 4.00% | 27,233,000 | 6 | % | |||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 67,196,000 | 14.78% | 36,368,000 | 8.00% | N/A | N/A | ||||||||||||||||||||||||||||||||||||||
Bank | 65,702,000 | 14.48% | 36,311,000 | 8.00% | 45,389,000 | 10 | % |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
EARNINGS PER COMMON SHARE [Abstract] | ||||||||||
Schedule of Earnings Per Common Share | Years Ended December 31, | |||||||||
2014 | 2013 | |||||||||
Net Income | $ | 3,085,000 | $ | 2,470,000 | ||||||
Dividends on preferred stock and accretion | 683,000 | 633,000 | ||||||||
Net income available to common shareholders | $ | 2,402,000 | $ | 1,837,000 | ||||||
Weighted-average common shares outstanding - basic | 6,003,814 | 5,937,058 | ||||||||
Effect of dilutive securities - stock options | N/A | N/A | ||||||||
Weighted average common shares outstanding - diluted | 6,003,814 | 5,937,058 | ||||||||
Basic earnings per common share | $ | 0.4 | $ | 0.31 | ||||||
Diluted earnings per common share | $ | 0.4 | $ | 0.31 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
INCOME TAXES [Abstract] | |||||||||
Schedule of Components of Income Tax Benefit | Years Ended December 31, | ||||||||
2014 | 2013 | ||||||||
Current tax expense (benefit) | |||||||||
Federal | $ | 634,000 | $ | 221,000 | |||||
State | 159,000 | 49,000 | |||||||
793,000 | 270,000 | ||||||||
Deferred tax expense (benefit) | |||||||||
Federal | 392,000 | 180,000 | |||||||
State | 273,000 | 167,000 | |||||||
Valuation allowance | (39,000 | ) | 23,000 | ||||||
626,000 | 370,000 | ||||||||
$ | 1,419,000 | $ | 640,000 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | Years Ended December 31, | ||||||||
2014 | 2013 | ||||||||
Federal income tax | $ | 1,531,000 | $ | 1,057,000 | |||||
Add (deduct) effect of: | |||||||||
State income taxes, net of federal income tax effect | 246,000 | 146,000 | |||||||
Nontaxable interest income | (255,000 | ) | (376,000 | ) | |||||
Bank owned life insurance | (141,000 | ) | (305,000 | ) | |||||
Nondeductible expenses | 10,000 | 15,000 | |||||||
Write-off of Federal deferred tax asset | — | 90,000 | |||||||
Change in valuation reserve | — | 19,000 | |||||||
Other items, net | 28,000 | (6,000 | ) | ||||||
Effective federal income taxes | $ | 1,419,000 | $ | 640,000 | |||||
Schedule of Deferred Tax Assets and Liabilities | December 31, | ||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Allowance for loan losses | $ | 3,835,000 | $ | 3,960,000 | |||||
Accrued compensation | 159,000 | 120,000 | |||||||
Nonaccrual loan interest | 453,000 | 915,000 | |||||||
Depreciation | 382,000 | 434,000 | |||||||
Contribution carry forward | 146,000 | 178,000 | |||||||
Restricted stock | 28,000 | — | |||||||
OREO reserve | 27,000 | — | |||||||
Accrued contributions | 21,000 | — | |||||||
State net operating loss carry forward | 23,000 | 122,000 | |||||||
Unrealized loss on fair value of interest rate swap | 125,000 | 223,000 | |||||||
Unrealized loss on securities available-for-sale | 477,000 | 2,176,000 | |||||||
Alternate minimum tax | 425,000 | 434,000 | |||||||
6,101,000 | 8,562,000 | ||||||||
Valuation reserve | (163,000 | ) | (202,000 | ) | |||||
5,938,000 | 8,360,000 | ||||||||
Deferred tax liabilities | |||||||||
Other | 4,000 | 4,000 | |||||||
4,000 | 4,000 | ||||||||
Net deferred tax assets | $ | 5,934,000 | $ | 8,356,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||||
Schedule of Future Minimum Payments on Operating Leases | Year Ending | Minimum | ||||
December 31, | Rent | |||||
2015 | $ | 693,000 | ||||
2016 | 661,000 | |||||
2017 | 648,000 | |||||
2018 | 584,000 | |||||
2019 | 513,000 | |||||
Thereafter | 1,760,000 | |||||
$ | 4,859,000 | |||||
INTEREST_RATE_SWAP_Tables
INTEREST RATE SWAP (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
INTEREST RATE SWAP [Abstract] | ||||||||||||||||
Schedule of Derivative Summary Information | Notional amount | $7,000,000 | ||||||||||||||
Pay rate | 7.00% | |||||||||||||||
Receive rate | 3 month LIBOR plus 2.95% | |||||||||||||||
Maturity | 17-Mar-16 | |||||||||||||||
Unrealized loss | ($314,000) | |||||||||||||||
Schedule of Derivatives recorded in accumulated comprehensive income | Year Ended December 31, 2014 | |||||||||||||||
Amount of gain | Amount of gain (loss) | |||||||||||||||
Amount of gain | (loss) reclassified | recognized in other | ||||||||||||||
recognized in OCI | from OCI to interest | noninterest income | ||||||||||||||
(Effective Portion) | income | (Ineffective Portion) | ||||||||||||||
Interest rate contract | $ | 147,000 | $ | — | $ | — | ||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Amount of gain | Amount of gain (loss) | |||||||||||||||
Amount of gain | (loss) reclassified | recognized in other | ||||||||||||||
recognized in OCI | from OCI to interest | noninterest income | ||||||||||||||
(Effective Portion) | income | (Ineffective Portion) | ||||||||||||||
Interest rate contract | $ | 152,000 | $ | — | $ | — |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
U.S. government - | |||||||||||||||||||||
sponsored agencies | $ | 30,274,000 | $ | — | $ | 30,274,000 | $ | — | |||||||||||||
Obligations of state and | |||||||||||||||||||||
political subdivisions | 1,400,000 | — | 1,400,000 | — | |||||||||||||||||
Mortgage-backed | |||||||||||||||||||||
securities - residential | 76,743,000 | — | 76,743,000 | — | |||||||||||||||||
Asset-backed securities | 9,915,000 | — | 9,915,000 | — | |||||||||||||||||
Corporate bonds | 2,997,000 | — | 2,997,000 | — | |||||||||||||||||
Other equity investments | 3,589,000 | 3,529,000 | 60,000 | — | |||||||||||||||||
Total available-for-sale | |||||||||||||||||||||
securities | $ | 124,918,000 | $ | 3,529,000 | $ | 121,389,000 | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swap | $ | 314,000 | $ | — | $ | 314,000 | $ | — | |||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
U.S. government - | |||||||||||||||||||||
sponsored agencies | $ | 38,692,000 | $ | — | $ | 38,692,000 | $ | — | |||||||||||||
Obligations of state and | |||||||||||||||||||||
political subdivisions | 1,358,000 | — | 1,358,000 | — | |||||||||||||||||
Mortgage-backed | |||||||||||||||||||||
securities - residential | 112,235,000 | — | 112,235,000 | — | |||||||||||||||||
Asset-backed securities | 9,836,000 | — | 9,836,000 | — | |||||||||||||||||
Corporate bonds | 2,885,000 | — | 2,885,000 | — | |||||||||||||||||
Other equity investments | 3,405,000 | 3,345,000 | 60,000 | — | |||||||||||||||||
Total available-for-sale | |||||||||||||||||||||
securities | $ | 168,411,000 | $ | 3,345,000 | $ | 165,066,000 | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swap | $ | 559,000 | $ | — | $ | 559,000 | $ | — | |||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Non-recurring Basis | Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial: | |||||||||||||||||||||
Secured by real estate | $ | 1,348,000 | $ | — | $ | — | $ | 1,348,000 | |||||||||||||
Commercial real estate | 205,000 | — | — | 205,000 | |||||||||||||||||
Consumer: | |||||||||||||||||||||
Secured by real estate | 49,000 | — | — | 49,000 | |||||||||||||||||
Other real estate owned | 1,117,000 | — | — | 1,117,000 | |||||||||||||||||
$ | 2,719,000 | $ | — | $ | — | $ | 2,719,000 | ||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial: | |||||||||||||||||||||
Secured by real estate | $ | 5,861,000 | $ | — | $ | — | $ | 5,861,000 | |||||||||||||
Commercial real estate | 8,483,000 | — | — | 8,483,000 | |||||||||||||||||
Commercial Construction | 1,196,000 | — | — | 1,196,000 | |||||||||||||||||
Residential real estate | 755,000 | — | — | 755,000 | |||||||||||||||||
Consumer: | |||||||||||||||||||||
Secured by real estate | 617,000 | — | — | 617,000 | |||||||||||||||||
Other real estate owned | 451,000 | — | — | 451,000 | |||||||||||||||||
$ | 17,363,000 | $ | — | $ | — | $ | 17,363,000 | ||||||||||||||
Schedule of Fair Value Assumptions for Level 3 Asset Measurements | 31-Dec-14 | ||||||||||||||||||||
Assets | Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||
Impaired loans | $ | 1,602,000 | Comparable real estate sales and / or the income approach. | Adjustments for differences between comparable sales and income data available. | 5% - 25% | ||||||||||||||||
Estimated selling costs. | 7% | ||||||||||||||||||||
Other real estate owned | $ | 1,117,000 | Comparable real estate sales and / or the income approach. | Adjustments for differences between comparable sales and income data available. | 0% - 62% | ||||||||||||||||
Estimated selling costs. | 7% | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets | Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||
Impaired loans | $ | 16,912,000 | Comparable real estate sales and / or the income approach. | Adjustments for differences between comparable sales and income data available. | 1% - 25% | ||||||||||||||||
Estimated selling costs. | 7% | ||||||||||||||||||||
Other real estate owned | $ | 451,000 | Comparable real estate sales and / or the income approach. | Adjustments for differences between comparable sales and income data available. | 5% - 8% | ||||||||||||||||
Estimated selling costs. | 7% | ||||||||||||||||||||
Schedule of Fair Value Estimates for the Financial Instruments | Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 10,086,000 | $ | 10,086,000 | $ | — | $ | — | |||||||||||||
Securities available-for-sale | 124,918,000 | 3,529,000 | 121,389,000 | — | |||||||||||||||||
Securities held to maturity | 55,097,000 | — | 56,233,000 | — | |||||||||||||||||
FHLB-NY stock | 3,777,000 | N/A | N/A | N/A | |||||||||||||||||
Loans, net | 467,699,000 | — | — | 478,451,000 | |||||||||||||||||
Accrued interest receivable | 1,994,000 | — | 646,000 | 1,348,000 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 556,476,000 | 424,117,000 | 132,513,000 | — | |||||||||||||||||
FHLB-NY advances | 66,700,000 | — | 67,087,000 | — | |||||||||||||||||
Subordinated debentures | 7,217,000 | — | — | 7,203,000 | |||||||||||||||||
Accrued interest payable | 308,000 | 1,000 | 288,000 | 19,000 | |||||||||||||||||
Interest rate swap | 314,000 | — | 314,000 | — | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
Carrying Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 17,405,000 | $ | 17,405,000 | $ | — | $ | — | |||||||||||||
Securities available-for-sale | 168,411,000 | 3,345,000 | 165,066,000 | — | |||||||||||||||||
Securities held to maturity | 25,964,000 | — | 27,221,000 | — | |||||||||||||||||
FHLB-NY stock | 2,133,000 | N/A | N/A | N/A | |||||||||||||||||
Loans held for sale | 2,800,000 | — | — | 2,800,000 | |||||||||||||||||
Loans, net | 424,262,000 | — | — | 434,126,000 | |||||||||||||||||
Accrued interest receivable | 2,066,000 | — | 735,000 | 1,331,000 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 577,591,000 | 441,790,000 | 136,268,000 | — | |||||||||||||||||
FHLB-NY advances | 25,000,000 | — | 25,404,000 | — | |||||||||||||||||
Securities sold under | |||||||||||||||||||||
agreements to repurchase | 7,300,000 | — | 7,525,000 | — | |||||||||||||||||
Subordinated debentures | 7,217,000 | — | — | 7,213,000 | |||||||||||||||||
Accrued interest payable | 401,000 | 1,000 | 380,000 | 20,000 | |||||||||||||||||
Interest rate swap | 559,000 | — | 559,000 | — |
PARENT_COMPANY_ONLY_Tables
PARENT COMPANY ONLY (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PARENT COMPANY ONLY [Abstract] | |||||||||
Condensed Statements of Condition | December 31, | ||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash and due from banks | $ | 253,000 | $ | 231,000 | |||||
Securities available-for-sale | 989,000 | 951,000 | |||||||
Investment in subsidiary | 64,388,000 | 59,662,000 | |||||||
Accrued interest receivable | 2,000 | 2,000 | |||||||
Other assets | 964,000 | 701,000 | |||||||
Total assets | $ | 66,596,000 | $ | 61,547,000 | |||||
Liabilities and Shareholders' equity | |||||||||
Subordinated debentures | $ | 7,217,000 | $ | 7,217,000 | |||||
Other liabilities | 410,000 | 551,000 | |||||||
Shareholders' equity | 58,969,000 | 53,779,000 | |||||||
Total liabilities and Shareholders' equity | $ | 66,596,000 | $ | 61,547,000 | |||||
Condensed Statements of Income | Years Ended December 31, | ||||||||
2014 | 2013 | ||||||||
Interest income - securities available-for-sale | $ | 15,000 | $ | 15,000 | |||||
Dividend income | 1,610,000 | 1,475,000 | |||||||
Other income | 7,000 | 7,000 | |||||||
Total income | 1,632,000 | 1,497,000 | |||||||
Interest expense | 504,000 | 504,000 | |||||||
Other expenses | 306,000 | 321,000 | |||||||
Total expenses | 810,000 | 825,000 | |||||||
Income before income tax benefit | 822,000 | 672,000 | |||||||
Tax benefit | (266,000 | ) | (272,000 | ) | |||||
Income before equity in undistributed earnings of subsidiary | 1,088,000 | 944,000 | |||||||
Equity in undistributed earnings of subsidiary | 1,997,000 | 1,526,000 | |||||||
Net income | 3,085,000 | 2,470,000 | |||||||
Dividends on preferred stock and accretion | 683,000 | 633,000 | |||||||
Net income available to common shareholders | $ | 2,402,000 | $ | 1,837,000 | |||||
Condensed Statements of Cash Flows | Years Ended December 31, | ||||||||
2014 | 2013 | ||||||||
Cash flows from operating activities: | |||||||||
Net income | $ | 3,085,000 | $ | 2,470,000 | |||||
Adjustments to reconcile net income to | |||||||||
net cash provided by operating activities: | |||||||||
Equity in undistributed earnings of subsidiary | (1,997,000 | ) | (1,526,000 | ) | |||||
Decrease in accrued interest receivable | — | 3,000 | |||||||
Increase in other assets | (276,000 | ) | (231,000 | ) | |||||
Increase in other liabilities | 7,000 | 39,000 | |||||||
Net cash provided by operating activities | 819,000 | 755,000 | |||||||
Cash flows from investing activities: | |||||||||
Purchase of securities available-for-sale | — | (500,000 | ) | ||||||
Proceeds from calls on securities available-for-sale | — | 500,000 | |||||||
Net cash provided by investing activities | — | — | |||||||
Cash flows from financing activities: | |||||||||
Cash dividends paid on common stock | (300,000 | ) | (238,000 | ) | |||||
Cash dividends paid on preferred stock | (683,000 | ) | (633,000 | ) | |||||
Payment of discount on dividend reinvestment plan | (2,000 | ) | (2,000 | ) | |||||
Issuance of common stock | 188,000 | 86,000 | |||||||
Net cash used in financing activities | (797,000 | ) | (787,000 | ) | |||||
Net decrease in cash and cash equivalents | 22,000 | (32,000 | ) | ||||||
Cash and cash equivalents - beginning | 231,000 | 263,000 | |||||||
Cash and cash equivalents - ending | $ | 253,000 | $ | 231,000 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |||||||||||||||||||||||||
Schedule of components of comprehensive income (loss) | Year Ended | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
Tax | Tax | ||||||||||||||||||||||||
Gross | Effect | Net | Gross | Effect | Net | ||||||||||||||||||||
Net income | $ | 4,504,000 | $ | (1,419,000 | ) | $ | 3,085,000 | $ | 3,110,000 | $ | (640,000 | ) | $ | 2,470,000 | |||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||||
Change in unrealized holding | |||||||||||||||||||||||||
gains (losses) on securities | |||||||||||||||||||||||||
available-for-sale | 5,162,000 | (2,000,000 | ) | 3,162,000 | (7,031,000 | ) | 2,725,000 | (4,306,000 | ) | ||||||||||||||||
Reclassification adjustment | |||||||||||||||||||||||||
for gains in net income | (165,000 | ) | 66,000 | (99,000 | ) | (153,000 | ) | 57,000 | (96,000 | ) | |||||||||||||||
Loss on securities reclassifed | |||||||||||||||||||||||||
from available-for-sale to | |||||||||||||||||||||||||
held to maturity | (742,000 | ) | 285,000 | (457,000 | ) | — | — | — | |||||||||||||||||
Accretion of loss on securities | |||||||||||||||||||||||||
reclassified to held to maturity | 130,000 | (50,000 | ) | 80,000 | — | — | — | ||||||||||||||||||
Change in fair value of | |||||||||||||||||||||||||
interest rate swap | 246,000 | (99,000 | ) | 147,000 | 253,000 | (101,000 | ) | 152,000 | |||||||||||||||||
Total other comprehensive | |||||||||||||||||||||||||
income (loss) | 4,631,000 | (1,798,000 | ) | 2,833,000 | (6,931,000 | ) | 2,681,000 | (4,250,000 | ) | ||||||||||||||||
Total comprehensive income (loss) | $ | 9,135,000 | $ | (3,217,000 | ) | $ | 5,918,000 | $ | (3,821,000 | ) | $ | 2,041,000 | $ | (1,780,000 | ) | ||||||||||
Schedule of Components of Accumulated Other Comprehensive Income | Year Ended December 31, 2014 | ||||||||||||||||||||||||
Components of | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||
Unrealized Gains | Loss on securities | Unrealized | Accumulated | ||||||||||||||||||||||
and (Losses) on | reclassifed from | Gains and | Other | ||||||||||||||||||||||
Available-for-Sale | available for sale | (Losses) on | Comprehensive | ||||||||||||||||||||||
(AFS) Securities | to held to maturity | Derivatives | Income (Loss) | ||||||||||||||||||||||
Balance at December 31, 2013 | $ | (3,455,000 | ) | $ | — | $ | (335,000 | ) | $ | (3,790,000 | ) | ||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||
before reclassifications | 3,162,000 | (377,000 | ) | 147,000 | 2,932,000 | ||||||||||||||||||||
Amounts reclassified from | |||||||||||||||||||||||||
other comprehensive income | (99,000 | ) | — | — | (99,000 | ) | |||||||||||||||||||
Other comprehensive income, net | 3,063,000 | (377,000 | ) | 147,000 | 2,833,000 | ||||||||||||||||||||
Balance at December 31, 2014 | $ | (392,000 | ) | $ | (377,000 | ) | $ | (188,000 | ) | $ | (957,000 | ) | |||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||
Components of | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||
Unrealized Gains | Loss on securities | Unrealized | Accumulated | ||||||||||||||||||||||
and (Losses) on | reclassifed from | Gains and | Other | ||||||||||||||||||||||
Available-for-Sale | available for sale | (Losses) on | Comprehensive | ||||||||||||||||||||||
(AFS) Securities | to held to maturity | Derivatives | Income (Loss) | ||||||||||||||||||||||
Balance at December 31, 2012 | $ | 947,000 | $ | — | $ | (487,000 | ) | $ | 460,000 | ||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||
before reclassifications | (4,306,000 | ) | — | 152,000 | (4,154,000 | ) | |||||||||||||||||||
Amounts reclassified from | |||||||||||||||||||||||||
other comprehensive income | (96,000 | ) | — | — | (96,000 | ) | |||||||||||||||||||
Other comprehensive income, net | (4,402,000 | ) | — | 152,000 | (4,250,000 | ) | |||||||||||||||||||
Balance at December 31, 2013 | $ | (3,455,000 | ) | $ | — | $ | (335,000 | ) | $ | (3,790,000 | ) | ||||||||||||||
Schedule of Amount Reclassified from each Component of Accumulated Other Comprehensive Income | Years Ended | Income | |||||||||||||||||||||||
Components of Accumulated Other | December 31, | Statement | |||||||||||||||||||||||
Comprehensive (Loss) | 2014 | 2013 | Line Item | ||||||||||||||||||||||
Unrealized gains on AFS securities | |||||||||||||||||||||||||
before tax | $ | 165,000 | $ | 153,000 | Gains on securities transactions, net | ||||||||||||||||||||
Tax effect | (66,000 | ) | (57,000 | ) | |||||||||||||||||||||
Total, net of tax | 99,000 | 96,000 | |||||||||||||||||||||||
Total reclassifications, net of tax | $ | 99,000 | $ | 96,000 | |||||||||||||||||||||
QUARTERLY_FINANCIAL_DATA_Table
QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract] | |||||||||||||||||||||
Schedule of Quarterly Financial Data | Year Ended December 31, 2014 | ||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||||
Interest income | $ | 6,145 | $ | 6,186 | $ | 6,069 | $ | 6,534 | $ | 24,934 | |||||||||||
Interest expense | 839 | 810 | 791 | 767 | 3,207 | ||||||||||||||||
Net interest income before provision for loan losses | 5,306 | 5,376 | 5,278 | 5,767 | 21,727 | ||||||||||||||||
Provision for loan losses | — | — | 250 | (300 | ) | (50 | ) | ||||||||||||||
Net interest income after provision for loan losses | 5,306 | 5,376 | 5,028 | 6,067 | 21,777 | ||||||||||||||||
Noninterest income | 399 | 807 | 764 | 990 | 2,960 | ||||||||||||||||
Noninterest expenses | 5,094 | 5,106 | 4,989 | 5,044 | 20,233 | ||||||||||||||||
Income before income tax expense (benefit) | 611 | 1,077 | 803 | 2,013 | 4,504 | ||||||||||||||||
Income tax expense (benefit) | 105 | 351 | 251 | 712 | 1,419 | ||||||||||||||||
Net income | 506 | 726 | 552 | 1,301 | 3,085 | ||||||||||||||||
Dividends on preferred stock | 171 | 171 | 170 | 171 | 683 | ||||||||||||||||
Net income available to common shareholders | $ | 335 | $ | 555 | $ | 382 | $ | 1,130 | $ | 2,402 | |||||||||||
Basic and diluted earnings per share | $ | 0.06 | $ | 0.09 | $ | 0.06 | $ | 0.19 | $ | 0.4 | |||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||||
Interest income | $ | 6,870 | $ | 6,636 | $ | 6,536 | $ | 6,529 | $ | 26,571 | |||||||||||
Interest expense | 1,004 | 958 | 940 | 911 | 3,813 | ||||||||||||||||
Net interest income before provision for loan losses | 5,866 | 5,678 | 5,596 | 5,618 | 22,758 | ||||||||||||||||
Provision for loan losses | 1,600 | 850 | 900 | 425 | 3,775 | ||||||||||||||||
Net interest income after provision for loan losses | 4,266 | 4,828 | 4,696 | 5,193 | 18,983 | ||||||||||||||||
Noninterest income | 1,474 | 995 | 971 | 525 | 3,965 | ||||||||||||||||
Noninterest expenses | 4,932 | 5,131 | 4,874 | 4,901 | 19,838 | ||||||||||||||||
Income before income tax expense (benefit) | 808 | 692 | 793 | 817 | 3,110 | ||||||||||||||||
Income tax expense (benefit) | (14 | ) | 231 | 271 | 152 | 640 | |||||||||||||||
Net income | 822 | 461 | 522 | 665 | 2,470 | ||||||||||||||||
Dividends on preferred stock | 166 | 127 | 170 | 170 | 633 | ||||||||||||||||
Net income available to common shareholders | $ | 656 | $ | 334 | $ | 352 | $ | 495 | $ | 1,837 | |||||||||||
Basic and diluted earnings per share | $ | 0.11 | $ | 0.06 | $ | 0.06 | $ | 0.08 | $ | 0.31 |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Maximum dividends that may be paid | $3.94 |
SECURITIES_AVAILABLEFORSALE_AN2
SECURITIES - AVAILABLE-FOR-SALE AND HELD TO MATURITY (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
SECURITIES - AVAILABLE-FOR-SALE AND HELD TO MATURITY [Abstract] | ||
Cash proceeds realized from sales and calls of securities available for sale | $11,155,000 | $18,823,000 |
Gross realized gain from sales and calls of securities available for sale | 165,000 | 233,000 |
Gross realized losses from sales and calls of securities available for sale | 0 | 80,000 |
Available for sale securities pledged to secure public deposits | 670,000 | 944,000 |
Proceeds from calls on securities held to maturity | 1,170,000 | |
Held to maturity securities pledged to secure public deposits | 751,000 | 0 |
Reclassification of securities available-for-sale to held-to-maturity | 24,022,000 | |
Net loss on available-for-sale securities transferred to held-to-maturity | $742,000 |
SECURITIES_AVAILABLEFORSALE_AN3
SECURITIES - AVAILABLE-FOR-SALE AND HELD TO MATURITY (Schedule of Fair Value of Securities Available For Sale and Related Gross Unrealized Gains and Losses) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Available for sale securities | ||||
Amortized Cost | $125,551,000 | $174,041,000 | ||
Gross Unrealized Gains | 680,000 | 275,000 | ||
Gross Unrealized Losses | 1,313,000 | 5,905,000 | ||
Fair Value | 124,918,000 | 168,411,000 | ||
U.S. government-sponsored agencies [Member] | ||||
Available for sale securities | ||||
Amortized Cost | 30,701,000 | 41,066,000 | ||
Gross Unrealized Gains | 94,000 | 15,000 | ||
Gross Unrealized Losses | 521,000 | 2,389,000 | ||
Fair Value | 30,274,000 | 38,692,000 | ||
Obligations of state and political and subdivisions [Member] | ||||
Available for sale securities | ||||
Amortized Cost | 1,420,000 | 1,429,000 | ||
Gross Unrealized Gains | 2,000 | |||
Gross Unrealized Losses | 22,000 | 71,000 | ||
Fair Value | 1,400,000 | 1,358,000 | ||
Mortgage-backed securities - residential [Member] | ||||
Available for sale securities | ||||
Amortized Cost | 76,894,000 | 115,134,000 | ||
Gross Unrealized Gains | 521,000 | 244,000 | ||
Gross Unrealized Losses | 672,000 | 3,143,000 | ||
Fair Value | 76,743,000 | 112,235,000 | ||
Asset-backed Securities [Member] | ||||
Available for sale securities | ||||
Amortized Cost | 9,874,000 | [1] | 9,874,000 | [1] |
Gross Unrealized Gains | 57,000 | [1] | 11,000 | [1] |
Gross Unrealized Losses | 16,000 | [1] | 49,000 | [1] |
Fair Value | 9,915,000 | [1] | 9,836,000 | [1] |
Corporate Debt Securities [Member] | ||||
Available for sale securities | ||||
Amortized Cost | 2,998,000 | 2,995,000 | ||
Gross Unrealized Gains | 6,000 | 5,000 | ||
Gross Unrealized Losses | 7,000 | 115,000 | ||
Fair Value | 2,997,000 | 2,885,000 | ||
Total debt securities [Member] | ||||
Available for sale securities | ||||
Amortized Cost | 121,887,000 | 170,498,000 | ||
Gross Unrealized Gains | 680,000 | 275,000 | ||
Gross Unrealized Losses | 1,238,000 | 5,767,000 | ||
Fair Value | 121,329,000 | 165,006,000 | ||
Other equity investments [Member] | ||||
Available for sale securities | ||||
Amortized Cost | 3,664,000 | 3,543,000 | ||
Gross Unrealized Gains | ||||
Gross Unrealized Losses | 75,000 | 138,000 | ||
Fair Value | $3,589,000 | $3,405,000 | ||
[1] | Collateralized by student loans |
SECURITIES_AVAILABLEFORSALE_AN4
SECURITIES - AVAILABLE-FOR-SALE AND HELD TO MATURITY (Schedule of Held to Maturity Securities and Related Unrecognized Gains and Losses) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Held to maturity securities | ||
Amortized Cost | $55,097,000 | $25,964,000 |
Gross Unrealized Gains | 1,202,000 | 1,257,000 |
Gross Unrealized Losses | 66,000 | |
Fair Value | 56,233,000 | 27,221,000 |
U.S. government-sponsored agencies [Member] | ||
Held to maturity securities | ||
Amortized Cost | 11,962,000 | 258,000 |
Gross Unrealized Gains | 177,000 | 31,000 |
Gross Unrealized Losses | ||
Fair Value | 12,139,000 | 289,000 |
Obligations of state and political and subdivisions [Member] | ||
Held to maturity securities | ||
Amortized Cost | 15,636,000 | 20,642,000 |
Gross Unrealized Gains | 514,000 | 838,000 |
Gross Unrealized Losses | ||
Fair Value | 16,150,000 | 21,480,000 |
Mortgage-backed securities - residential [Member] | ||
Held to maturity securities | ||
Amortized Cost | 27,499,000 | 5,064,000 |
Gross Unrealized Gains | 511,000 | 388,000 |
Gross Unrealized Losses | 66,000 | |
Fair Value | $27,944,000 | $5,452,000 |
SECURITIES_AVAILABLEFORSALE_AN5
SECURITIES - AVAILABLE-FOR-SALE AND HELD TO MATURITY (Schedule of Amortized Cost and Fair Value of the Investment Securities Portfolio by Contractual Maturity) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Amortized Cost | ||
Within one year | $498,000 | |
After one year, but within five years | 10,424,000 | |
After five years, but within ten years | 16,474,000 | |
After ten years | 7,723,000 | |
Total | 121,887,000 | |
Fair value. | ||
Within one year | 500,000 | |
After one year, but within five years | 10,319,000 | |
After five years, but within ten years | 16,422,000 | |
After ten years | 7,430,000 | |
Total | 121,329,000 | |
Amortized Cost | ||
Within one year | 3,638,000 | |
After one year, but within five years | 8,438,000 | |
After five years, but within ten years | 12,490,000 | |
After ten years | 3,032,000 | |
Total | 55,097,000 | 25,964,000 |
Fair Value | ||
Within one year | 3,671,000 | |
After one year, but within five years | 8,755,000 | |
After five years, but within ten years | 12,767,000 | |
After ten years | 3,096,000 | |
Total | 56,233,000 | 27,221,000 |
Mortgage-backed securities - residential [Member] | ||
Amortized Cost | ||
Total | 76,894,000 | |
Fair value. | ||
Total | 76,743,000 | |
Amortized Cost | ||
Total | 27,499,000 | |
Fair Value | ||
Total | 27,944,000 | 5,452,000 |
Asset-backed Securities [Member] | ||
Amortized Cost | ||
Total | 9,874,000 | |
Fair value. | ||
Total | $9,915,000 |
SECURITIES_AVAILABLEFORSALE_AN6
SECURITIES - AVAILABLE-FOR-SALE AND HELD TO MATURITY (Schedule of Continuous Unrealized Loss Position for Investment Securities Available for Sale) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Available for sale securities, Continuous unrealized loss position | ||
Less than 12 Months, Fair Value | $9,007,000 | $115,171,000 |
Less than 12 Months, Unrealized Losses | -38,000 | -4,180,000 |
12 Months or Longer, Fair Value | 60,210,000 | 22,730,000 |
12 Months or Longer, Unrealized Losses | -1,275,000 | -1,725,000 |
Fair Value | 69,217,000 | 137,901,000 |
Unrealized Losses | -1,313,000 | -5,905,000 |
Held to maturity securities, Continuous unrealized loss position | ||
Less than 12 Months, Fair Value | 8,788,000 | |
Less than 12 Months, Unrealized Losses | -66,000 | |
Fair Value | 8,788,000 | |
Unrealized Losses | -66,000 | |
U.S. government-sponsored agencies [Member] | ||
Available for sale securities, Continuous unrealized loss position | ||
Less than 12 Months, Fair Value | 24,517,000 | |
Less than 12 Months, Unrealized Losses | -1,531,000 | |
12 Months or Longer, Fair Value | 23,750,000 | 8,987,000 |
12 Months or Longer, Unrealized Losses | -521,000 | -858,000 |
Fair Value | 23,750,000 | 33,504,000 |
Unrealized Losses | -521,000 | -2,389,000 |
Obligations of state and political and subdivisions [Member] | ||
Available for sale securities, Continuous unrealized loss position | ||
Less than 12 Months, Fair Value | 949,000 | |
Less than 12 Months, Unrealized Losses | -43,000 | |
12 Months or Longer, Fair Value | 992,000 | 409,000 |
12 Months or Longer, Unrealized Losses | -22,000 | -28,000 |
Fair Value | 992,000 | 1,358,000 |
Unrealized Losses | -22,000 | -71,000 |
Mortgage-backed securities - residential [Member] | ||
Available for sale securities, Continuous unrealized loss position | ||
Less than 12 Months, Fair Value | 5,985,000 | 75,183,000 |
Less than 12 Months, Unrealized Losses | -22,000 | -2,304,000 |
12 Months or Longer, Fair Value | 30,445,000 | 13,334,000 |
12 Months or Longer, Unrealized Losses | -650,000 | -839,000 |
Fair Value | 36,430,000 | 88,517,000 |
Unrealized Losses | -672,000 | -3,143,000 |
Held to maturity securities, Continuous unrealized loss position | ||
Less than 12 Months, Fair Value | 8,788,000 | |
Less than 12 Months, Unrealized Losses | -66,000 | |
Fair Value | 8,788,000 | |
Unrealized Losses | -66,000 | |
Asset-backed Securities [Member] | ||
Available for sale securities, Continuous unrealized loss position | ||
Less than 12 Months, Fair Value | 3,022,000 | 8,791,000 |
Less than 12 Months, Unrealized Losses | -16,000 | -49,000 |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Fair Value | 3,022,000 | 8,791,000 |
Unrealized Losses | -16,000 | -49,000 |
Corporate Debt Securities [Member] | ||
Available for sale securities, Continuous unrealized loss position | ||
Less than 12 Months, Fair Value | 2,385,000 | |
Less than 12 Months, Unrealized Losses | -115,000 | |
12 Months or Longer, Fair Value | 1,494,000 | |
12 Months or Longer, Unrealized Losses | -7,000 | |
Fair Value | 1,494,000 | 2,385,000 |
Unrealized Losses | -7,000 | -115,000 |
Other equity investments [Member] | ||
Available for sale securities, Continuous unrealized loss position | ||
Less than 12 Months, Fair Value | 3,346,000 | |
Less than 12 Months, Unrealized Losses | -138,000 | |
12 Months or Longer, Fair Value | 3,529,000 | |
12 Months or Longer, Unrealized Losses | -75,000 | |
Fair Value | 3,529,000 | 3,346,000 |
Unrealized Losses | ($75,000) | ($138,000) |
LOANS_AND_ALLOWANCE_FOR_LOAN_L2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Loans participated by the Corporation to other organizations, recorded off-balance sheet | $12,948,000 | $12,725,000 |
Loans receivable from related parties | 2,533,000 | 2,515,000 |
Draws | 854,000 | |
Repayments | 836,000 | |
Total value of modified loans in troubled debt restructurings | 12,900,000 | 16,600,000 |
Trouble debt restructuring classified as performing | 12,000,000 | 15,200,000 |
Specific reserve related to TDR | 868,000 | 281,000 |
Committed funds for construction loan, classified as troubled debt restructuring | 257,000 | |
Financing Receivable Modification of Satisfactory Performance Term For Partially Contingent Of Principal Forbearance | 3 years | |
Troubled Debt Restructurings, increase in allowance for loan losses | 587,000 | 63,000 |
Charge-offs related to trouble debt restructurings | 616,000 | |
Commercial real estate [Member] | ||
Number of non accrual loans held for sale | 4 | |
Nonaccrual loans held for sale | $2,800,000 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loan Portfolio Schedule) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Gross loans | $477,320,000 | $434,009,000 |
Deferred loan costs (fees), net | 19,000 | -168,000 |
Allowance for loan losses | 9,602,000 | 9,915,000 |
Allowance net of deferred loan fees | 9,621,000 | 9,747,000 |
Loans, net | 467,699,000 | 424,262,000 |
Commercial loan secured by real estate [Member] | ||
Gross loans | 46,545,000 | 46,162,000 |
Commercial loan - Other [Member] | ||
Gross loans | 29,307,000 | 27,728,000 |
Commercial real estate [Member] | ||
Gross loans | 286,063,000 | 253,035,000 |
Allowance for loan losses | 5,017,000 | 5,665,000 |
Commercial Construction [Member] | ||
Gross loans | 4,215,000 | 3,445,000 |
Allowance for loan losses | 150,000 | 117,000 |
Residential real estate [Member] | ||
Gross loans | 77,836,000 | 77,540,000 |
Allowance for loan losses | 142,000 | 460,000 |
Consumer loan secured by real estate [Member] | ||
Gross loans | 27,319,000 | 25,458,000 |
Consumer loan - Other [Member] | ||
Gross loans | 939,000 | 534,000 |
Small business administration - guaranteed portion [Member] | ||
Gross loans | 5,000,000 | |
Allowance for loan losses | ||
Other Loans [Member] | ||
Gross loans | 96,000 | 107,000 |
Allowance for loan losses | $2,000 | $3,000 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Allowance for Loan Losses) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Activity in the allowance for loan losses | ||||||||||
Balance at the beginning of period | $9,915,000 | $10,641,000 | $9,915,000 | $10,641,000 | ||||||
Provision charged to operations | -300,000 | 250,000 | 425,000 | 900,000 | 850,000 | 1,600,000 | -50,000 | 3,775,000 | ||
Loans charge-offs | -1,385,000 | -5,021,000 | ||||||||
Recoveries of loans charged-off | 1,122,000 | 520,000 | ||||||||
Balance at the end of period | 9,602,000 | 9,915,000 | 9,602,000 | 9,915,000 | ||||||
Commercial [Member] | ||||||||||
Activity in the allowance for loan losses | ||||||||||
Balance at the beginning of period | 3,373,000 | 4,832,000 | 3,373,000 | 4,832,000 | ||||||
Provision charged to operations | 377,000 | -824,000 | ||||||||
Loans charge-offs | -262,000 | -983,000 | ||||||||
Recoveries of loans charged-off | 216,000 | 348,000 | ||||||||
Balance at the end of period | 3,704,000 | 3,373,000 | 3,704,000 | 3,373,000 | ||||||
Commercial loan secured by real estate [Member] | ||||||||||
Activity in the allowance for loan losses | ||||||||||
Balance at the beginning of period | 5,665,000 | 4,936,000 | 5,665,000 | 4,936,000 | ||||||
Provision charged to operations | -396,000 | 4,395,000 | ||||||||
Loans charge-offs | -1,110,000 | -3,785,000 | ||||||||
Recoveries of loans charged-off | 858,000 | 119,000 | ||||||||
Balance at the end of period | 5,017,000 | 5,665,000 | 5,017,000 | 5,665,000 | ||||||
Commercial Construction [Member] | ||||||||||
Activity in the allowance for loan losses | ||||||||||
Balance at the beginning of period | 117,000 | 169,000 | 117,000 | 169,000 | ||||||
Provision charged to operations | -15,000 | -54,000 | ||||||||
Loans charge-offs | -24,000 | |||||||||
Recoveries of loans charged-off | 48,000 | 26,000 | ||||||||
Balance at the end of period | 150,000 | 117,000 | 150,000 | 117,000 | ||||||
Residential real estate [Member] | ||||||||||
Activity in the allowance for loan losses | ||||||||||
Balance at the beginning of period | 460,000 | 308,000 | 460,000 | 308,000 | ||||||
Provision charged to operations | -311,000 | 235,000 | ||||||||
Loans charge-offs | -7,000 | -83,000 | ||||||||
Recoveries of loans charged-off | ||||||||||
Balance at the end of period | 142,000 | 460,000 | 142,000 | 460,000 | ||||||
Consumer [Member] | ||||||||||
Activity in the allowance for loan losses | ||||||||||
Balance at the beginning of period | 288,000 | 352,000 | 288,000 | 352,000 | ||||||
Provision charged to operations | -93,000 | 60,000 | ||||||||
Loans charge-offs | -6,000 | -145,000 | ||||||||
Recoveries of loans charged-off | 21,000 | |||||||||
Balance at the end of period | 189,000 | 288,000 | 189,000 | 288,000 | ||||||
Other Loans [Member] | ||||||||||
Activity in the allowance for loan losses | ||||||||||
Balance at the beginning of period | 3,000 | 3,000 | 3,000 | 3,000 | ||||||
Provision charged to operations | -1,000 | |||||||||
Loans charge-offs | -1,000 | -1,000 | ||||||||
Recoveries of loans charged-off | 2,000 | |||||||||
Balance at the end of period | 2,000 | 3,000 | 2,000 | 3,000 | ||||||
Unallocated Loans [Member] | ||||||||||
Activity in the allowance for loan losses | ||||||||||
Balance at the beginning of period | 9,000 | 41,000 | 9,000 | 41,000 | ||||||
Provision charged to operations | 388,000 | -36,000 | ||||||||
Loans charge-offs | 1,000 | |||||||||
Recoveries of loans charged-off | 4,000 | |||||||||
Balance at the end of period | $398,000 | $9,000 | $398,000 | $9,000 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for loan losses Ending balance, Individually evaluated for impairment | $920,000 | $372,000 |
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 8,682,000 | 9,543,000 |
Total Ending allowance balance | 9,602,000 | 9,915,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | 15,665,000 | 22,650,000 |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 461,655,000 | 411,359,000 |
Total Loans | 477,320,000 | 434,009,000 |
Commercial [Member] | ||
Allowance for loan losses Ending balance, Individually evaluated for impairment | 223,000 | 300,000 |
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 3,481,000 | 3,073,000 |
Total Ending allowance balance | 3,704,000 | 3,373,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | 6,042,000 | 7,261,000 |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 69,810,000 | 66,629,000 |
Total Loans | 75,852,000 | 73,890,000 |
Commercial real estate [Member] | ||
Allowance for loan losses Ending balance, Individually evaluated for impairment | 697,000 | 72,000 |
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 4,320,000 | 5,593,000 |
Total Ending allowance balance | 5,017,000 | 5,665,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | 8,913,000 | 12,821,000 |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 277,150,000 | 240,214,000 |
Total Loans | 286,063,000 | 253,035,000 |
Commercial Construction [Member] | ||
Allowance for loan losses Ending balance, Individually evaluated for impairment | ||
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 150,000 | 117,000 |
Total Ending allowance balance | 150,000 | 117,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | 288,000 | 1,196,000 |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 3,927,000 | 2,249,000 |
Total Loans | 4,215,000 | 3,445,000 |
Residential real estate [Member] | ||
Allowance for loan losses Ending balance, Individually evaluated for impairment | ||
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 142,000 | 460,000 |
Total Ending allowance balance | 142,000 | 460,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | 96,000 | 755,000 |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 77,740,000 | 76,785,000 |
Total Loans | 77,836,000 | 77,540,000 |
Consumer [Member] | ||
Allowance for loan losses Ending balance, Individually evaluated for impairment | ||
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 189,000 | 288,000 |
Total Ending allowance balance | 189,000 | 288,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | 326,000 | 617,000 |
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 27,932,000 | 25,375,000 |
Total Loans | 28,258,000 | 25,992,000 |
SBA [Member] | ||
Allowance for loan losses Ending balance, Individually evaluated for impairment | ||
Allowance for loan losses Ending balance, Collectively evaluated for impairment | ||
Total Ending allowance balance | ||
Loans Recorded investment Ending balance, Individually evaluated for impairment | ||
Loans Recorded investment Ending balance, Collectively evaluated for impairment | 5,000,000 | |
Total Loans | 5,000,000 | |
Other Loans [Member] | ||
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 | 96,000 | 107,000 |
Total Loans | 96,000 | 107,000 |
Unallocated Loans [Member] | ||
Allowance for loan losses Ending balance, Individually evaluated for impairment | ||
Allowance for loan losses Ending balance, Collectively evaluated for impairment | 398,000 | 9,000 |
Total Ending allowance balance | 398,000 | 9,000 |
Loans Recorded investment Ending balance, Individually evaluated for impairment | ||
Loans Recorded investment Ending balance, Collectively evaluated for impairment | ||
Total Loans |
LOANS_AND_ALLOWANCE_FOR_LOAN_L6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Recorded Investment in Nonaccrual Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Total nonperfoming loans | $3,628,000 | $10,219,000 |
Commercial loan secured by real estate [Member] | ||
Total nonperfoming loans | 1,923,000 | 2,182,000 |
Commercial loan - Other [Member] | ||
Total nonperfoming loans | 73,000 | |
Commercial real estate [Member] | ||
Total nonperfoming loans | 1,284,000 | 6,592,000 |
Residential real estate [Member] | ||
Total nonperfoming loans | 96,000 | 755,000 |
Consumer loan secured by real estate [Member] | ||
Total nonperfoming loans | $325,000 | $617,000 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Recorded Investments in Impaired Loans) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Related Allowance | $920,000 | $372,000 |
Unpaid Principal Balance | 18,603,000 | 27,189,000 |
Recorded Investment | 15,665,000 | 22,650,000 |
Average Recorded Investment | 19,341,000 | 26,023,000 |
Interest Income Recognized | 747,000 | 580,000 |
Commercial loan secured by real estate [Member] | ||
Unpaid Principal Balance With no related allowance recorded | 5,997,000 | 7,204,000 |
Recorded Investment With no related allowance recorded | 4,838,000 | 5,756,000 |
Average Recorded Investment | 5,443,000 | 6,286,000 |
Interest income recognized for the year | 225,000 | 239,000 |
Unpaid Principal Balance With an allowance recorded | 458,000 | 686,000 |
Recorded Investment With an allowance recorded | 436,000 | 559,000 |
Related Allowance | 213,000 | 269,000 |
Average Recorded Investment | 437,000 | 900,000 |
Interest income recognized for the year | 16,000 | 28,000 |
Commercial loan - Other [Member] | ||
Unpaid Principal Balance With no related allowance recorded | 66,000 | 80,000 |
Recorded Investment With no related allowance recorded | 58,000 | 73,000 |
Average Recorded Investment | 65,000 | 98,000 |
Interest income recognized for the year | 3,000 | 1,000 |
Unpaid Principal Balance With an allowance recorded | 713,000 | 877,000 |
Recorded Investment With an allowance recorded | 710,000 | 873,000 |
Related Allowance | 10,000 | 31,000 |
Average Recorded Investment | 750,000 | 1,067,000 |
Interest income recognized for the year | 44,000 | 52,000 |
Commercial real estate [Member] | ||
Unpaid Principal Balance With no related allowance recorded | 4,609,000 | 12,920,000 |
Recorded Investment With no related allowance recorded | 3,279,000 | 10,474,000 |
Average Recorded Investment | 6,755,000 | 9,952,000 |
Interest income recognized for the year | 155,000 | 118,000 |
Unpaid Principal Balance With an allowance recorded | 5,643,000 | 2,356,000 |
Recorded Investment With an allowance recorded | 5,634,000 | 2,347,000 |
Related Allowance | 697,000 | 72,000 |
Average Recorded Investment | 3,922,000 | 3,174,000 |
Interest income recognized for the year | 233,000 | 47,000 |
Commercial Construction [Member] | ||
Unpaid Principal Balance With no related allowance recorded | 652,000 | 567,000 |
Recorded Investment With no related allowance recorded | 288,000 | 528,000 |
Average Recorded Investment | 517,000 | 2,753,000 |
Interest income recognized for the year | 71,000 | 52,000 |
Unpaid Principal Balance With an allowance recorded | 1,043,000 | |
Recorded Investment With an allowance recorded | 668,000 | |
Related Allowance | ||
Average Recorded Investment | 420,000 | 430,000 |
Interest income recognized for the year | 43,000 | |
Residential real estate [Member] | ||
Unpaid Principal Balance With no related allowance recorded | 132,000 | 826,000 |
Recorded Investment With no related allowance recorded | 96,000 | 755,000 |
Average Recorded Investment | 526,000 | 529,000 |
Interest income recognized for the year | ||
Unpaid Principal Balance With an allowance recorded | ||
Recorded Investment With an allowance recorded | ||
Related Allowance | ||
Average Recorded Investment | 36,000 | |
Interest income recognized for the year | ||
Consumer loan secured by real estate [Member] | ||
Unpaid Principal Balance With no related allowance recorded | 333,000 | 630,000 |
Recorded Investment With no related allowance recorded | 326,000 | 617,000 |
Average Recorded Investment | 506,000 | 730,000 |
Interest income recognized for the year | ||
Unpaid Principal Balance With an allowance recorded | ||
Recorded Investment With an allowance recorded | ||
Related Allowance | ||
Average Recorded Investment | 68,000 | |
Interest income recognized for the year |
LOANS_AND_ALLOWANCE_FOR_LOAN_L8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Aging of the Recorded Investment in Past Due Loans by Class of Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
30 to 59 Days | $771,000 | $1,909,000 |
60 to 89 Days | 330,000 | 3,000 |
Greater Than 90 Days | 2,593,000 | 6,601,000 |
Total | 3,694,000 | 8,513,000 |
Not past due | 473,626,000 | 425,496,000 |
Total Loans | 477,320,000 | 434,009,000 |
Commercial loan secured by real estate [Member] | ||
30 to 59 Days | 546,000 | 866,000 |
60 to 89 Days | ||
Greater Than 90 Days | 1,508,000 | 499,000 |
Total | 2,054,000 | 1,365,000 |
Not past due | 44,491,000 | 44,797,000 |
Total Loans | 46,545,000 | 46,162,000 |
Commercial loan - Other [Member] | ||
30 to 59 Days | 225,000 | |
60 to 89 Days | ||
Greater Than 90 Days | ||
Total | 225,000 | |
Not past due | 29,082,000 | 27,728,000 |
Total Loans | 29,307,000 | 27,728,000 |
Commercial real estate [Member] | ||
30 to 59 Days | 1,043,000 | |
60 to 89 Days | 330,000 | |
Greater Than 90 Days | 836,000 | 5,100,000 |
Total | 1,166,000 | 6,143,000 |
Not past due | 284,897,000 | 246,892,000 |
Total Loans | 286,063,000 | 253,035,000 |
Commercial Construction [Member] | ||
30 to 59 Days | ||
60 to 89 Days | ||
Greater Than 90 Days | ||
Total | ||
Not past due | 4,215,000 | 3,445,000 |
Total Loans | 4,215,000 | 3,445,000 |
Residential real estate [Member] | ||
30 to 59 Days | ||
60 to 89 Days | ||
Greater Than 90 Days | 523,000 | |
Total | 523,000 | |
Not past due | 77,836,000 | 77,017,000 |
Total Loans | 77,836,000 | 77,540,000 |
Consumer loan secured by real estate [Member] | ||
30 to 59 Days | ||
60 to 89 Days | ||
Greater Than 90 Days | 249,000 | 479,000 |
Total | 249,000 | 479,000 |
Not past due | 27,070,000 | 24,979,000 |
Total Loans | 27,319,000 | 25,458,000 |
Consumer loan - Other [Member] | ||
30 to 59 Days | ||
60 to 89 Days | 3,000 | |
Greater Than 90 Days | ||
Total | 3,000 | |
Not past due | 939,000 | 531,000 |
Total Loans | 939,000 | 534,000 |
SBA [Member] | ||
30 to 59 Days | ||
60 to 89 Days | ||
Greater Than 90 Days | ||
Total | ||
Not past due | 5,000,000 | |
Total Loans | 5,000,000 | |
Other Loans [Member] | ||
30 to 59 Days | ||
60 to 89 Days | ||
Greater Than 90 Days | ||
Total | ||
Not past due | 96,000 | 107,000 |
Total Loans | $96,000 | $107,000 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Troubled Debt Restructurings) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
N | N | |
Number of loans restructured | 3 | 4 |
TDRs arising during period Pre-Modification Recorded Investment | $363,000 | $6,378,000 |
TDRs arising during period Post-Modification Recorded Investment | 363,000 | 6,378,000 |
Commercial loan secured by real estate [Member] | ||
Number of loans restructured | 2 | |
TDRs arising during period Pre-Modification Recorded Investment | 252,000 | |
TDRs arising during period Post-Modification Recorded Investment | 252,000 | |
Commercial loan - Other [Member] | ||
Number of loans restructured | 1 | |
TDRs arising during period Pre-Modification Recorded Investment | 17,000 | |
TDRs arising during period Post-Modification Recorded Investment | 17,000 | |
Commercial real estate [Member] | ||
Number of loans restructured | 1 | 3 |
TDRs arising during period Pre-Modification Recorded Investment | 111,000 | 6,361,000 |
TDRs arising during period Post-Modification Recorded Investment | $111,000 | $6,361,000 |
Recovered_Sheet1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans by Credit Quality Indicators) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Total Loans | $477,320,000 | $434,009,000 |
Pass [Member] | ||
Total Loans | 346,491,000 | 308,370,000 |
Special Mention [Member] | ||
Total Loans | 11,174,000 | 13,319,000 |
Substandard [Member] | ||
Total Loans | 8,465,000 | 8,681,000 |
Doubtful [Member] | ||
Total Loans | ||
Loss [Member] | ||
Total Loans | ||
Commercial loan secured by real estate [Member] | ||
Total Loans | 46,545,000 | 46,162,000 |
Commercial loan secured by real estate [Member] | Pass [Member] | ||
Total Loans | 41,091,000 | 39,114,000 |
Commercial loan secured by real estate [Member] | Special Mention [Member] | ||
Total Loans | 3,531,000 | 3,387,000 |
Commercial loan secured by real estate [Member] | Substandard [Member] | ||
Total Loans | 1,923,000 | 3,661,000 |
Commercial loan secured by real estate [Member] | Doubtful [Member] | ||
Total Loans | ||
Commercial loan secured by real estate [Member] | Loss [Member] | ||
Total Loans | ||
Commercial loan - Other [Member] | ||
Total Loans | 29,307,000 | 27,728,000 |
Commercial loan - Other [Member] | Pass [Member] | ||
Total Loans | 27,903,000 | 25,604,000 |
Commercial loan - Other [Member] | Special Mention [Member] | ||
Total Loans | 616,000 | 1,325,000 |
Commercial loan - Other [Member] | Substandard [Member] | ||
Total Loans | 788,000 | 799,000 |
Commercial loan - Other [Member] | Doubtful [Member] | ||
Total Loans | ||
Commercial loan - Other [Member] | Loss [Member] | ||
Total Loans | ||
Commercial real estate [Member] | ||
Total Loans | 286,063,000 | 253,035,000 |
Commercial real estate [Member] | Pass [Member] | ||
Total Loans | 274,788,000 | 241,488,000 |
Commercial real estate [Member] | Special Mention [Member] | ||
Total Loans | 5,521,000 | 7,326,000 |
Commercial real estate [Member] | Substandard [Member] | ||
Total Loans | 5,754,000 | 4,221,000 |
Commercial real estate [Member] | Doubtful [Member] | ||
Total Loans | ||
Commercial real estate [Member] | Loss [Member] | ||
Total Loans | ||
Commercial Construction [Member] | ||
Total Loans | 4,215,000 | 3,445,000 |
Commercial Construction [Member] | Pass [Member] | ||
Total Loans | 2,709,000 | 2,164,000 |
Commercial Construction [Member] | Special Mention [Member] | ||
Total Loans | 1,506,000 | 1,281,000 |
Commercial Construction [Member] | Substandard [Member] | ||
Total Loans | ||
Commercial Construction [Member] | Doubtful [Member] | ||
Total Loans | ||
Commercial Construction [Member] | Loss [Member] | ||
Total Loans | ||
Total [Member] | ||
Total Loans | $366,130,000 | $330,370,000 |
Recovered_Sheet2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Recorded Investment in Residential Real Estate and Consumer Loans Based on Payment Activity) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Total Loans | $477,320,000 | $434,009,000 |
Residential real estate [Member] | ||
Total Loans | 77,836,000 | 77,540,000 |
Residential real estate [Member] | Current [Member] | ||
Total Loans | 77,740,000 | 76,785,000 |
Residential real estate [Member] | Past Due and Nonaccrual [Member] | ||
Total Loans | 96,000 | 755,000 |
Consumer loan secured by real estate [Member] | ||
Total Loans | 27,319,000 | 25,458,000 |
Consumer loan secured by real estate [Member] | Current [Member] | ||
Total Loans | 25,867,000 | 23,584,000 |
Consumer loan secured by real estate [Member] | Past Due and Nonaccrual [Member] | ||
Total Loans | 1,452,000 | 1,874,000 |
Consumer loan - Other [Member] | ||
Total Loans | 939,000 | 534,000 |
Consumer loan - Other [Member] | Current [Member] | ||
Total Loans | 930,000 | 527,000 |
Consumer loan - Other [Member] | Past Due and Nonaccrual [Member] | ||
Total Loans | 9,000 | 7,000 |
Total Residential Real Estate and Consumer [Member] | ||
Total Loans | 106,094,000 | 103,532,000 |
Total Residential Real Estate and Consumer [Member] | Current [Member] | ||
Total Loans | 104,537,000 | 100,896,000 |
Total Residential Real Estate and Consumer [Member] | Past Due and Nonaccrual [Member] | ||
Total Loans | $1,557,000 | $2,636,000 |
PREMISES_AND_EQUIPMENT_NET_Nar
PREMISES AND EQUIPMENT, NET (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
PREMISES AND EQUIPMENT, NET [Abstract] | ||
Depreciation and amortization expense | $420,000 | $428,000 |
PREMISES_AND_EQUIPMENT_NET_Sch
PREMISES AND EQUIPMENT, NET (Schedule of Premises and Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Premise and equipment, Gross | $11,948,000 | $10,721,000 |
Accumulated depreciations and amortization | 5,371,000 | 4,982,000 |
Premises and equipment, net | 6,577,000 | 5,739,000 |
Land [Member] | ||
Premise and equipment, Gross | 3,219,000 | 2,999,000 |
Buildings and improvements [Member] | ||
Premise and equipment, Gross | 4,082,000 | 3,281,000 |
Leasehold improvements [Member] | ||
Premise and equipment, Gross | 2,246,000 | 2,246,000 |
Furniture, fixtures and equipment [Member] | ||
Premise and equipment, Gross | $2,401,000 | $2,195,000 |
OTHER_REAL_ESTATE_OWNED_Narrat
OTHER REAL ESTATE OWNED (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
OTHER REAL ESTATE OWNED [Abstract] | ||
Net gain on sale of other real estate owned | $63,000 | $326,000 |
OTHER_REAL_ESTATE_OWNED_Schedu
OTHER REAL ESTATE OWNED (Schedule of Other Real Estate Owned) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OTHER REAL ESTATE OWNED [Abstract] | |||
Acquired by foreclosure or deed in lieu of foreclosure | $1,375,000 | $480,000 | |
Allowance for losses on other real estate owned | -67,000 | -29,000 | |
Other real estate owned, net | $1,308,000 | $451,000 |
OTHER_REAL_ESTATE_OWNED_Schedu1
OTHER REAL ESTATE OWNED (Schedule of Activity in Allowance for Losses on Other Real Estate Owned) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Loan Losses - Other Real Estate Owned | ||
Beginning of year | $29,000 | |
Additions charged to expense | 235,000 | 29,000 |
Reductions from sales of other real estate owned | -197,000 | |
End of year | $67,000 | $29,000 |
OTHER_REAL_ESTATE_OWNED_Schedu2
OTHER REAL ESTATE OWNED (Schedule of Expenses Realted to Other Real Estate Owned) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
OTHER REAL ESTATE OWNED [Abstract] | ||
Provision for unrealized losses | $235,000 | $29,000 |
Operating expenses, net of rental income | 195,000 | 114,000 |
End of year | $430,000 | $143,000 |
DEPOSITS_Narrative_Details
DEPOSITS (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
DEPOSITS [Abstract] | ||
Certificates of deposit with balances of $100,000 or more | $75,859,000 | $83,609,000 |
DEPOSITS_Schedule_of_Deposit_L
DEPOSITS (Schedule of Deposit Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
DEPOSITS [Abstract] | ||
Noninterest-bearing | $136,721,000 | $133,565,000 |
Interest-bearing checking accounts | 168,319,000 | 179,892,000 |
Money market accounts | 41,906,000 | 47,366,000 |
Total interest-bearing demand | 210,225,000 | 227,258,000 |
Statement savings and clubs | 71,202,000 | 71,103,000 |
Business savings | 5,220,000 | 9,177,000 |
Total savings | 76,422,000 | 80,280,000 |
IRA investments and variable rate savings | 28,765,000 | 32,160,000 |
Brokered certificates | 10,496,000 | |
Money market certificates | 93,847,000 | 104,328,000 |
Total certificates of deposit | 133,108,000 | 136,488,000 |
Total interest-bearing deposits | 419,755,000 | 444,026,000 |
Total deposits | $556,476,000 | $577,591,000 |
DEPOSITS_Schedule_of_Maturitie
DEPOSITS (Schedule of Maturities of Time Deposits) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
DEPOSITS [Abstract] | ||
2015 | $56,846,000 | |
2016 | 42,376,000 | |
2017 | 14,753,000 | |
2018 | 5,196,000 | |
2019 | 13,937,000 | |
Total certificates of deposit | $133,108,000 | $136,488,000 |
BORROWINGS_Narrative_Details
BORROWINGS (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Sep. 25, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Maximum FHLB advances outstanding at any month end | $66,700,000 | $40,100,000 | |
Average Balance of FHLB advances outstanding | 32,500,000 | 26,700,000 | |
FHLB advances which have reached their first call date | 10,000,000 | ||
Additional borrowing capacity from FHLB | 84,700,000 | 68,300,000 | |
Borrowing capacity at the Federal Reserve Bank discount window | 5,100,000 | 5,700,000 | |
Overnight variable pricing lines with other correspondent banks | 35,000,000 | 21,000,000 | |
Wholesale repurchase agreement, description | The borrowing had a current floating rate at 9.00% minus 3-month LIBOR measured on a quarterly basis with a 5.15% cap and a 0.00% floor. | ||
Assets pledged as collateral for securities sold under agreements to repurchase | 8,282,000 | ||
Overnight Borrowings with Fhlb | 6,700,000 | 0 | |
First Mortgage Loans [Member] | |||
Assets pledged as security for FHLB advances | 63,200,000 | 63,200,000 | |
Investment Securities [Member] | |||
Assets pledged as security for FHLB advances | $21,500,000 | $5,100,000 |
BORROWINGS_Schedule_of_Maturit
BORROWINGS (Schedule of Maturities of FHLB Advances) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Maturities of Federal Home Loan Bank Advances | ||
Within one year | $26,700,000 | |
After one year, but within two years | 10,000,000 | |
After two years, but within three years | 15,000,000 | 10,000,000 |
After three years, but within four years | 15,000,000 | 5,000,000 |
After four years, but within five years | 10,000,000 | |
Advances from Federal Home Loan Banks | $66,700,000 | $25,000,000 |
Average Interest Rate | ||
Within one year | 2.10% | |
After one year, but within two years | 1.64% | |
After two years, but within three years | 3.74% | 1.64% |
After three years, but within four years | 3.35% | 1.16% |
After four years, but within five years | 1.85% | |
Advances Federal Home Loan Bank Maturities Average Interest Rate | 2.68% | 1.63% |
BORROWINGS_Schedule_of_Securit
BORROWINGS (Schedule of Securities Sold under Agreements to Repurchase) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Securities sold under agreements to repurchase | ||
Securities sold under agreement to repurchase | $7,300,000 | |
Weighted average rate at year end | 0.00% | 4.95% |
Maximum amount outstanding at any month end during the year | 7,601,000 | 8,044,000 |
Average amount outstanding during the year | $5,255,000 | $7,501,000 |
Average interest rate during the year | 4.83% | 4.89% |
SUBORDINATED_DEBENTURES_Detail
SUBORDINATED DEBENTURES (Details) (USD $) | 0 Months Ended | |||
Mar. 17, 2003 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 17, 2008 | |
SUBORDINATED DEBENTURES [Abstract] | ||||
Securities issued by the trust | $7,000,000 | |||
Sale of Fixed/Floating Rate Junior Subordinated Deferrable Interest Debentures from the company to the trust | $7,217,000 | |||
Interest rate of Securities and Debentures | 6.75% | |||
Interest Rate of Debentures | 3.19% | 3.19% | ||
Interest rate of securities | 3.19% | 3.19% |
REGULATORY_CAPITAL_REQUIREMENT2
REGULATORY CAPITAL REQUIREMENTS (Schedule of Regulatory Capital Requirements) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Consolidated [Member] | ||
Tier 1 Leverage Capital (to average assets) | ||
Tier 1 Capital | $64,399,000 | $61,461,000 |
Tier 1 Capital (to average assets) ratio | 9.45% | 9.04% |
Minimum amount of Tier 1 Capital for adequacy purposes | 27,265,000 | 27,200,000 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized | ||
Minimum Tier 1 Capital required to be well-capitalized, ratio | ||
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital | 64,399,000 | 61,461,000 |
Tier 1 Capital (to risk-weighted assets) ratio | 13.04% | 13.52% |
Minimum amount of Tier 1 Capital for adequacy purposes | 19,751,000 | 18,184,000 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized | ||
Minimum Tier 1 Capital required to be well-capitalized, ratio | ||
Total Capital | 70,614,000 | 67,196,000 |
Total Capital | ||
Total Capital (to risk-weighted assets) ratio | 14.30% | 14.78% |
Minimum amount of capital for adequacy purposes | 39,502,000 | 36,368,000 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Minimum Capital required to be well-capitalized | ||
Minimum Capital required to be well-capitalized, ratio | ||
Bank [Member] | ||
Tier 1 Leverage Capital (to average assets) | ||
Tier 1 Capital | 62,622,000 | 59,976,000 |
Tier 1 Capital (to average assets) ratio | 9.20% | 8.84% |
Minimum amount of Tier 1 Capital for adequacy purposes | 27,214,000 | 27,135,000 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized | 34,018,000 | 33,919,000 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 5.00% | 5.00% |
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital | 62,622,000 | 59,976,000 |
Tier 1 Capital (to risk-weighted assets) ratio | 12.69% | 13.21% |
Minimum amount of Tier 1 Capital for adequacy purposes | 19,740,000 | 18,156,000 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized | 29,609,000 | 27,233,000 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 6.00% | 6.00% |
Total Capital | 68,833,000 | 65,702,000 |
Total Capital | ||
Total Capital (to risk-weighted assets) ratio | 13.95% | 14.48% |
Minimum amount of capital for adequacy purposes | 39,479,000 | 36,311,000 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Minimum Capital required to be well-capitalized | $49,349,000 | $45,389,000 |
Minimum Capital required to be well-capitalized, ratio | 10.00% | 10.00% |
PREFERRED_STOCK_Details
PREFERRED STOCK (Details) (USD $) | 0 Months Ended | 12 Months Ended |
Sep. 01, 2011 | Dec. 31, 2014 | |
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 | |
Dividend rate, fixed after four and one half years | 9.00% | |
Tier I capital on date of entering the SBLF program (percentage) | 90.00% | |
Minimum [Member] | ||
Dividend rate, first ten quarters | 1.00% | |
Maximum [Member] | ||
Dividend rate, first ten quarters | 5.00% | |
Senior Non-Cumulative Perpetual Preferred Stock, Series B [Member] | ||
Stock issued during period (in shares) | 15,000 | |
Stock issued during period, value | 15,000,000 | |
Preferred stock dividend rate, Terms | The dividend rate was subject to fluctuation on a quarterly basis during the first ten quarters during which the Series B Preferred Shares were 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, since then, for the eleventh dividend period through that portion of the nineteenth dividend period prior to the four and one-half year anniversary of the Series B Preferred Issue Date (i.e., through February 29, 2016) the dividend rate became fixed at 4.56%. | |
Dividend payment restrictions, Description | 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 Shares) 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 of the issuance, by 10% for each 1% increase in QSBL over the baseline level. | |
Aggregate liquidation preference outstanding | $25,000,000 | |
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 |
BENEFIT_PLANS_Details
BENEFIT PLANS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
BENEFIT PLANS [Abstract] | ||
Total profit sharing expense | $170,000 | $100,000 |
401(k) plan employer contributions | $141,000 | $155,000 |
Shares purchased under the employee stock purchase plan | 6,560 | 8,439 |
Shares reserved for issuance under the Employee Stock Purchase Plan | 171,074 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted shares [Member] | ||
Awards granted | 49,661 | 0 |
Award vesting period | 3 years | |
Stock-based compensation expense for stock grant | $69,000 | |
Director Stock Plan [Member] | ||
Shares purchased for plan | 5,060 | 7,162 |
Awards authorized but unissued | 528,094 | |
2010 Stock Incentive Plan [Member] | ||
Awards authorized but unissued | 142,694 |
EARNINGS_PER_COMMON_SHARE_Narr
EARNINGS PER COMMON SHARE (Narrative) (Details) (Stock options [Member]) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock options [Member] | ||
Antidilutive securities excluded from computation of diluted EPS (in shares) | 0 | 3,627 |
EARNINGS_PER_COMMON_SHARE_Sche
EARNINGS PER COMMON SHARE (Schedule of Earnings Per Common Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
EARNINGS PER COMMON SHARE [Abstract] | ||||||||||
Net Income | $1,301,000 | $552,000 | $726,000 | $506,000 | $665,000 | $522,000 | $461,000 | $822,000 | $3,085,000 | $2,470,000 |
Dividends on preferred stock and accretion | 683,000 | 633,000 | ||||||||
Net income available to common stockholders | $1,130,000 | $382,000 | $555,000 | $335,000 | $495,000 | $352,000 | $334,000 | $656,000 | $2,402,000 | $1,837,000 |
Weighted-average common shares outstanding - basic (in shares) | 6,003,814 | 5,937,058 | ||||||||
Effect of dilutive securities - stock options (in shares) | ||||||||||
Weighted average common shares outstanding - diluted (in shares) | 6,003,814 | 5,937,058 | ||||||||
Basic earnings per common share (in dollars per share) | $0.40 | $0.31 | ||||||||
Diluted earnings per common share (in dollars per share) | $0.40 | $0.31 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME TAXES [Abstract] | ||
Statutory federal income tax rate | 34.00% | |
Carryback taxes paid that could be utilized against the deferred tax asset | $359,000 | |
Deferred Tax Assets Operating Loss carryforwards | 5,600,000 | |
AMT credit carryforwards | 425,000 | 434,000 |
Unrecognized tax benefits | 0 | 0 |
Tax, interest and penalties | 0 | 0 |
Accrued tax interest and penalties | $0 | $0 |
INCOME_TAXES_Schedule_of_Compo
INCOME TAXES (Schedule of Components of Income Tax Benefit) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax expense (benefit): | ||||||||||
Federal | $634,000 | $221,000 | ||||||||
State | 159,000 | 49,000 | ||||||||
Current income tax (benefit) expense | 793,000 | 270,000 | ||||||||
Deferred tax expense (benefit): | ||||||||||
Federal | 392,000 | 180,000 | ||||||||
State | 273,000 | 167,000 | ||||||||
Valuation allowance | -39,000 | 23,000 | ||||||||
Deferred tax (benefit) expense | 626,000 | 370,000 | ||||||||
Income Tax Expense | $712,000 | $251,000 | $351,000 | $105,000 | $152,000 | $271,000 | $231,000 | ($14,000) | $1,419,000 | $640,000 |
INCOME_TAXES_Schedule_of_Effec
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME TAXES [Abstract] | ||||||||||
Federal income tax | $1,531,000 | $1,057,000 | ||||||||
Add (deduct) effect of: | ||||||||||
State income taxes, net of federal income tax effect | 246,000 | 146,000 | ||||||||
Nontaxable interest income | -255,000 | -376,000 | ||||||||
Bank owned life insurance | -141,000 | -305,000 | ||||||||
Nondeductible expenses | 10,000 | 15,000 | ||||||||
Write-off of Federal deferred tax assets | 90,000 | |||||||||
Change in valuation reserve | 19,000 | |||||||||
Other items, net | 28,000 | -6,000 | ||||||||
Income Tax Expense | $712,000 | $251,000 | $351,000 | $105,000 | $152,000 | $271,000 | $231,000 | ($14,000) | $1,419,000 | $640,000 |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | ||
Allowance for loan losses | $3,835,000 | $3,960,000 |
Accrued compensation | 159,000 | 120,000 |
Nonaccrual loan interest | 453,000 | 915,000 |
Depreciation | 382,000 | 434,000 |
Contribution carry forward | 146,000 | 178,000 |
Restricted stock | 28,000 | |
OREO reserve | 27,000 | |
Accrued contributions | 21,000 | |
State capital loss carry forward | 23,000 | 122,000 |
Unrealized loss on fair value of interest rate swap | 125,000 | 223,000 |
Unrealized loss on securities available-for-sale | 477,000 | 2,176,000 |
Alternate minimum tax | 425,000 | 434,000 |
Deferred Tax Assets, Gross | 6,101,000 | 8,562,000 |
Valuation reserve | -163,000 | -202,000 |
Deferred Tax Assets, Net | 5,938,000 | 8,360,000 |
Deferred tax liabilities: | ||
Other | 4,000 | 4,000 |
Deferred Tax Liabilities | 4,000 | 4,000 |
Net deferred tax assets | $5,934,000 | $8,356,000 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments | ||
Rental Expense | 1,106,000 | 1,210,000 |
Rental Income | 46,000 | 46,000 |
Residential real estate [Member] | ||
Commitment to extend credit at fixed rates | 2,700,000 | |
Fixed interest rate agreed to | 3.78% | |
Commercial, construction and home equity loan commitments [Member] | ||
Commitment to extend credit at fixed rates | 1,900,000 | |
Fixed interest rate agreed to | 3.16% | |
Commitment to extend credit at variable rates | 15,800,000 | |
Variable interest rate committed to | 4.46% | |
Unused lines of Credit [Member] | ||
Commitments | 58,600,000 | |
Unused lines of Credit [Member] | Home Equity Line of Credit [Member] | ||
Commitments | 16,700,000 | |
Unused lines of Credit [Member] | Cash Overdraft [Member] | ||
Commitments | 4,400,000 | |
Unused lines of Credit [Member] | Commercial and Construction [Member] | ||
Commitments | 37,500,000 | |
Standby Letters of Credit [Member] | ||
Commitments | $1,100,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Payments on Operating Leases) (Details) (USD $) | Dec. 31, 2014 |
Minimum annual lease payments operating lease agreements | |
2015 | $693,000 |
2016 | 661,000 |
2017 | 648,000 |
2018 | 584,000 |
2019 | 513,000 |
Thereafter | 1,760,000 |
Total | $4,859,000 |
INTEREST_RATE_SWAP_Narrative_D
INTEREST RATE SWAP (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
INTEREST RATE SWAP [Abstract] | ||
Interest rate swap, designated as cash flow hedge notional amount | $7,000,000 | |
Investment securities securing interest rate swap | 989,000 | |
Interest expense | 271,000 | 268,000 |
Fair value of the interest rate swap | ($314,000) | ($559,000) |
INTEREST_RATE_SWAP_Schedule_of
INTEREST RATE SWAP (Schedule of Derivative Summary Information) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
INTEREST RATE SWAP [Abstract] | |
Interest rate swap, designated as cash flow hedge notional amount | $7,000,000 |
Interest rate swap, designated as cash flow hedge pay rate | 7.00% |
Interest rate swap, designated as cash flow hedge maturity | 17-Mar-16 |
Interest rate swap, designated as cash flow hedge unrealized loss | ($314,000) |
3 month LIBOR [Member] | |
Derivative [LineItems] | |
Variable rate basis | 3 month LIBOR |
Interest rate swap, designated as cash flow hedge receive rate | 2.95% |
INTEREST_RATE_SWAP_Schedule_of1
INTEREST RATE SWAP (Schedule of Derivatives Recorded in Accumulated Comprehensive Income) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
INTEREST RATE SWAP [Abstract] | ||
Amount of gain (loss) recognized in OCI (Effective Portion) | $147,000 | $152,000 |
Amount of gain (loss) reclassified from OCI to interest income | ||
Amount of gain (loss) recognized in other noninterest income (Ineffective Portion) |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for loan losses | $9,602,000 | $9,915,000 | $9,602,000 | $9,915,000 | |||||||
Allowance for losses on other real estate owned | 67,000 | 29,000 | 67,000 | 29,000 | |||||||
Provision for loan losses | -300,000 | 250,000 | 425,000 | 900,000 | 850,000 | 1,600,000 | -50,000 | 3,775,000 | |||
Provision for unrealized losses | 235,000 | 29,000 | |||||||||
Discount to real estate appraised values | 12.00% | ||||||||||
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | |||||||||||
Recorded Investment With an allowance recorded | 1,690,000 | 17,180,000 | 1,690,000 | 17,180,000 | |||||||
Allowance for loan losses | 88,000 | 268,000 | 88,000 | 268,000 | |||||||
Provision for loan losses | 155,000 | 3,975,000 | |||||||||
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | |||||||||||
Recorded Investment With an allowance recorded | 1,375,000 | 480,000 | 1,375,000 | 480,000 | |||||||
Allowance for losses on other real estate owned | 67,000 | 29,000 | 67,000 | 29,000 | |||||||
Provision for unrealized losses | $235,000 | $29,000 |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets, Fair Value | ||
Total available for sale securities | $124,918,000 | $168,411,000 |
Liabilities, Fair Value | ||
Interest rate swap | 314,000 | 559,000 |
Fair Value Measured on a Recurring Basis [Member] | Carrying Value [Member] | ||
Assets, Fair Value | ||
U.S. government-sponsored agencies | 30,274,000 | 38,692,000 |
Obligations of state and political subdivisions | 1,400,000 | 1,358,000 |
Mortgage-backed securities - residential | 76,743,000 | 112,235,000 |
Asset backed securities | 9,915,000 | 9,836,000 |
Corporate bonds | 2,997,000 | 2,885,000 |
Other equity investments | 3,589,000 | 3,405,000 |
Total available for sale securities | 124,918,000 | 168,411,000 |
Liabilities, Fair Value | ||
Interest rate swap | 314,000 | 559,000 |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets, Fair Value | ||
U.S. government-sponsored agencies | ||
Obligations of state and political subdivisions | ||
Mortgage-backed securities - residential | ||
Asset backed securities | ||
Corporate bonds | ||
Other equity investments | 3,529,000 | 3,345,000 |
Total available for sale securities | 3,529,000 | 3,345,000 |
Liabilities, Fair Value | ||
Interest rate swap | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets, Fair Value | ||
U.S. government-sponsored agencies | 30,274,000 | 38,692,000 |
Obligations of state and political subdivisions | 1,400,000 | 1,358,000 |
Mortgage-backed securities - residential | 76,743,000 | 112,235,000 |
Asset backed securities | 9,915,000 | 9,836,000 |
Corporate bonds | 2,997,000 | 2,885,000 |
Other equity investments | 60,000 | 60,000 |
Total available for sale securities | 121,389,000 | 165,066,000 |
Liabilities, Fair Value | ||
Interest rate swap | 314,000 | 559,000 |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets, Fair Value | ||
U.S. government-sponsored agencies | ||
Obligations of state and political subdivisions | ||
Mortgage-backed securities - residential | ||
Asset backed securities | ||
Corporate bonds | ||
Other equity investments | ||
Total available for sale securities | ||
Liabilities, Fair Value | ||
Interest rate swap |
FAIR_VALUE_OF_FINANCIAL_INSTRU4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Assets and Liabilities Measured at Fair Value on Non-recurring Basis) (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Carrying Value [Member] | ||
Assets, Fair Value | ||
Commercial loan secured by real estate | $1,348,000 | $5,861,000 |
Commercial real estate | 205,000 | 8,483,000 |
Commerical construction | 1,196,000 | |
Residential real estate | 755,000 | |
Consumer loan secured by real estate | 49,000 | 617,000 |
Other real estate owned. | 1,117,000 | 451,000 |
Impaired loans, Fair Value | 2,719,000 | 17,363,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets, Fair Value | ||
Commercial loan secured by real estate | ||
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) [Member] | ||
Assets, Fair Value | ||
Commercial loan secured by real estate | ||
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) [Member] | ||
Assets, Fair Value | ||
Commercial loan secured by real estate | 1,348,000 | 5,861,000 |
Commercial real estate | 205,000 | 8,483,000 |
Commerical construction | 1,196,000 | |
Residential real estate | 755,000 | |
Consumer loan secured by real estate | 49,000 | 617,000 |
Other real estate owned. | 1,117,000 | 451,000 |
Impaired loans, Fair Value | $2,719,000 | $17,363,000 |
FAIR_VALUE_OF_FINANCIAL_INSTRU5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Fair Value Assumptions for Level 3 Asset Measurements) (Details) (Significant Unobservable Inputs (Level 3) [Member], Fair Value, Measurements, Nonrecurring [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Impaired Loans [Member] | ||
Fair value of financial assets | $1,602,000 | $16,912,000 |
Valuation Technique1 | Comparable real estate sales and / or the income approach. | Comparable real estate sales and / or the income approach. |
Unobservable Input | Adjustments for differences between comparable sales and income data available. | Adjustments for differences between comparable sales and income data available. |
Unobservable Input2 | Estimated selling costs. | Estimated selling costs. |
Range of Unobservable inputs used in fair value & weighting factor2 | 7.00% | 7.00% |
Impaired Loans [Member] | Minimum [Member] | ||
Range of Unobservable inputs used in fair value & weighting factor | 5.00% | 1.00% |
Impaired Loans [Member] | Maximum [Member] | ||
Range of Unobservable inputs used in fair value & weighting factor | 25.00% | 25.00% |
Other Real Estate Owned [Member] | ||
Fair value of financial assets | $1,117,000 | $451,000 |
Valuation Technique1 | Comparable real estate sales and / or the income approach. | Comparable real estate sales and / or the income approach. |
Unobservable Input | Adjustments for differences between comparable sales and income data available. | Adjustments for differences between comparable sales and income data available. |
Unobservable Input2 | Estimated selling costs. | Estimated selling costs. |
Range of Unobservable inputs used in fair value & weighting factor2 | 7.00% | 7.00% |
Other Real Estate Owned [Member] | Minimum [Member] | ||
Range of Unobservable inputs used in fair value & weighting factor | 0.00% | 5.00% |
Other Real Estate Owned [Member] | Maximum [Member] | ||
Range of Unobservable inputs used in fair value & weighting factor | 62.00% | 8.00% |
FAIR_VALUE_OF_FINANCIAL_INSTRU6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Fair Value Estimates for the Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Financial assets: | ||
Securities available-for-sale | $124,918,000 | $168,411,000 |
Securities held to maturity | 56,233,000 | 27,221,000 |
FHLB-NY stock | 3,777,000 | 2,133,000 |
Financial liabilities: | ||
Subordinated debenture | 7,217,000 | 7,217,000 |
Interest rate swap | 314,000 | 559,000 |
Carrying Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 10,086,000 | 17,405,000 |
Securities available-for-sale | 124,918,000 | 168,411,000 |
Securities held to maturity | 55,097,000 | 25,964,000 |
FHLB-NY stock | 3,777,000 | 2,133,000 |
Loans held for sale | 2,800,000 | |
Loans, net | 467,699,000 | 424,262,000 |
Accrued interest receivable | 1,994,000 | 2,066,000 |
Financial liabilities: | ||
Deposits | 556,476,000 | 577,591,000 |
FHLB-NY Advances | 66,700,000 | 25,000,000 |
Securities sold under agreements to repurchase | 7,300,000 | |
Subordinated debenture | 7,217,000 | 7,217,000 |
Accrued interest payable | 308,000 | 401,000 |
Interest rate swap | 314,000 | 559,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 10,086,000 | 17,405,000 |
Securities available-for-sale | 3,529,000 | 3,345,000 |
Securities held to maturity | ||
FHLB-NY stock | ||
Loans held for sale | ||
Loans, net | ||
Accrued interest receivable | ||
Financial liabilities: | ||
Deposits | 424,117,000 | 441,790,000 |
FHLB-NY Advances | ||
Securities sold under agreements to repurchase | ||
Subordinated debenture | ||
Accrued interest payable | 1,000 | 1,000 |
Interest rate swap | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets: | ||
Cash and cash equivalents | ||
Securities available-for-sale | 121,389,000 | 165,066,000 |
Securities held to maturity | 56,233,000 | 27,221,000 |
FHLB-NY stock | ||
Loans held for sale | ||
Loans, net | ||
Accrued interest receivable | 646,000 | 735,000 |
Financial liabilities: | ||
Deposits | 132,513,000 | 136,268,000 |
FHLB-NY Advances | 67,087,000 | 25,404,000 |
Securities sold under agreements to repurchase | 7,525,000 | |
Subordinated debenture | ||
Accrued interest payable | 288,000 | 380,000 |
Interest rate swap | 314,000 | 559,000 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets: | ||
Cash and cash equivalents | ||
Securities available-for-sale | ||
Securities held to maturity | ||
FHLB-NY stock | ||
Loans held for sale | 2,800,000 | |
Loans, net | 478,451,000 | 434,126,000 |
Accrued interest receivable | 1,348,000 | 1,331,000 |
Financial liabilities: | ||
Deposits | ||
FHLB-NY Advances | ||
Securities sold under agreements to repurchase | ||
Subordinated debenture | 7,203,000 | 7,213,000 |
Accrued interest payable | 19,000 | 20,000 |
Interest rate swap |
PARENT_COMPANY_ONLY_Condensed_
PARENT COMPANY ONLY (Condensed Statements of Condition) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and due from banks | $9,849,000 | $17,024,000 | |
Securities available-for-sale | 124,918,000 | 168,411,000 | |
Accrued interest receivable | 1,994,000 | 2,066,000 | |
Other assets | 8,387,000 | 10,974,000 | |
Total assets | 693,551,000 | 673,508,000 | |
Subordinated debentures | 7,217,000 | 7,217,000 | |
Total stockholders' equity | 58,969,000 | 53,779,000 | 56,346,000 |
Total liabilities and Shareholders' equity | 693,551,000 | 673,508,000 | |
Parent Company [Member] | |||
Cash and due from banks | 253,000 | 231,000 | |
Securities available-for-sale | 989,000 | 951,000 | |
Investment in subsidiary | 64,388,000 | 59,662,000 | |
Accrued interest receivable | 2,000 | 2,000 | |
Other assets | 964,000 | 701,000 | |
Total assets | 66,596,000 | 61,547,000 | |
Subordinated debentures | 7,217,000 | 7,217,000 | |
Other Liabilities | 410,000 | 551,000 | |
Total stockholders' equity | 58,969,000 | 53,779,000 | |
Total liabilities and Shareholders' equity | $66,596,000 | $61,547,000 |
PARENT_COMPANY_ONLY_Condensed_1
PARENT COMPANY ONLY (Condensed Statements of Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest expense | $767,000 | $791,000 | $810,000 | $839,000 | $911,000 | $940,000 | $958,000 | $1,004,000 | $3,207,000 | $3,813,000 |
Income before income tax expense | 2,013,000 | 803,000 | 1,077,000 | 611,000 | 817,000 | 793,000 | 692,000 | 808,000 | 4,504,000 | 3,110,000 |
Tax benefit | 712,000 | 251,000 | 351,000 | 105,000 | 152,000 | 271,000 | 231,000 | -14,000 | 1,419,000 | 640,000 |
Net income | 1,301,000 | 552,000 | 726,000 | 506,000 | 665,000 | 522,000 | 461,000 | 822,000 | 3,085,000 | 2,470,000 |
Dividends on preferred stock and accretion | 171,000 | 170,000 | 171,000 | 171,000 | 170,000 | 170,000 | 127,000 | 166,000 | 683,000 | 633,000 |
Net income available to common shareholders | 1,130,000 | 382,000 | 555,000 | 335,000 | 495,000 | 352,000 | 334,000 | 656,000 | 2,402,000 | 1,837,000 |
Parent Company [Member] | ||||||||||
Interest income - securities available-for-sale | 15,000 | 15,000 | ||||||||
Dividend income | 1,610,000 | 1,475,000 | ||||||||
Other Income | 7,000 | 7,000 | ||||||||
Total Income | 1,632,000 | 1,497,000 | ||||||||
Interest expense | 504,000 | 504,000 | ||||||||
Other expenses | 306,000 | 321,000 | ||||||||
Total expenses | 810,000 | 825,000 | ||||||||
Income before income tax expense | 822,000 | 672,000 | ||||||||
Tax benefit | -266,000 | -272,000 | ||||||||
Income (loss) before equity in undistributed earnings of subsidiary | 1,088,000 | 944,000 | ||||||||
Equity in undistributed earnings of subsidiary | 1,997,000 | 1,526,000 | ||||||||
Net income | 3,085,000 | 2,470,000 | ||||||||
Dividends on preferred stock and accretion | 683,000 | 633,000 | ||||||||
Net income available to common shareholders | $2,402,000 | $1,837,000 |
PARENT_COMPANY_ONLY_Condensed_2
PARENT COMPANY ONLY (Condensed Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | ||
Net income | $3,085,000 | $2,470,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gains on calls of securities | -165,000 | -153,000 |
Decrease in accrued interest receivable | 72,000 | 306,000 |
Increase in other assets | 300,000 | 2,047,000 |
Increase in other liabilities | 1,808,000 | 704,000 |
Net cash provided by operating activities | 9,389,000 | 14,162,000 |
Cash flows from investing activities: | ||
Purchase of securities available for sale | -6,319,000 | -48,539,000 |
Proceeds from calls on securities available-for-sale | 11,155,000 | 18,823,000 |
Proceeds from calls on securities held to maturity | 7,824,000 | 2,491,000 |
Net cash used in investing activities | -29,196,000 | -4,280,000 |
Cash flows from financing activities: | ||
Cash dividends paid on common stock | -300,000 | -238,000 |
Cash dividends paid on preferred stock | -683,000 | -633,000 |
Payment of discount on dividend reinvestment plan | -2,000 | -2,000 |
Issuance of common stock | 188,000 | 86,000 |
Net cash provided by (used in) financing activities | 12,488,000 | -13,493,000 |
Net increase (decrease) in cash and cash equivalents | -7,319,000 | -3,611,000 |
Cash and cash equivalents - beginning | 17,405,000 | 21,016,000 |
Cash and cash equivalents - ending | 10,086,000 | 17,405,000 |
Parent Company [Member] | ||
Cash flows from operating activities: | ||
Net income | 3,085,000 | 2,470,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in undistributed earnings of subsidiary | -1,997,000 | -1,526,000 |
Decrease in accrued interest receivable | 3,000 | |
Increase in other assets | -276,000 | -231,000 |
Increase in other liabilities | 7,000 | 39,000 |
Net cash provided by operating activities | 819,000 | 755,000 |
Cash flows from investing activities: | ||
Purchase of securities available for sale | -500,000 | |
Proceeds from calls on securities available-for-sale | 500,000 | |
Net cash used in investing activities | ||
Cash flows from financing activities: | ||
Cash dividends paid on common stock | -300,000 | -238,000 |
Cash dividends paid on preferred stock | -683,000 | -633,000 |
Payment of discount on dividend reinvestment plan | -2,000 | -2,000 |
Issuance of common stock | 188,000 | 86,000 |
Net cash provided by (used in) financing activities | -797,000 | -787,000 |
Net increase (decrease) in cash and cash equivalents | 22,000 | -32,000 |
Cash and cash equivalents - beginning | 231,000 | 263,000 |
Cash and cash equivalents - ending | $253,000 | $231,000 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of Components of Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | ||||||||||
Net income, gross | $2,013,000 | $803,000 | $1,077,000 | $611,000 | $817,000 | $793,000 | $692,000 | $808,000 | $4,504,000 | $3,110,000 |
Net income, tax effect | 712,000 | 251,000 | 351,000 | 105,000 | 152,000 | 271,000 | 231,000 | -14,000 | 1,419,000 | 640,000 |
Net income | 1,301,000 | 552,000 | 726,000 | 506,000 | 665,000 | 522,000 | 461,000 | 822,000 | 3,085,000 | 2,470,000 |
Other comprehensive (loss) income: | ||||||||||
Change in unrealized holding gains (losses) on securities available for sale, gross | 5,162,000 | -7,031,000 | ||||||||
Change in unrealized holding gains (losses) on securities available for sale, tax effect | -2,000,000 | 2,725,000 | ||||||||
Change in unrealized holding gains (losses) on securities available for sale, net | 3,162,000 | -4,306,000 | ||||||||
Reclassification adjustment for gains in net income, gross | -165,000 | -153,000 | ||||||||
Reclassification adjustment for gains in net income, tax effect | 66,000 | 57,000 | ||||||||
Reclassification adjustment for gains in net income, net | -99,000 | -96,000 | ||||||||
Loss on securities reclassified from available-to-sale to held to maturity, gross | -742,000 | |||||||||
Loss on securities reclassified from available-to-sale to held to maturity, tax effect | 285,000 | |||||||||
Loss on securities reclassified from available-to-sale to held to maturity, net | -457,000 | |||||||||
Accretion of loss on securities reclassified to held to maturity, gross | 130,000 | |||||||||
Accretion of loss on securities reclassified to held to maturity, tax effect | -50,000 | |||||||||
Accretion of loss on securities reclassified to held to maturity, net | 80,000 | |||||||||
Change in fair value of interest rate swap, gross | 246,000 | 253,000 | ||||||||
Change in fair value of interest rate swap, tax effect | -99,000 | -101,000 | ||||||||
Change in fair value of interest rate swap, net | 147,000 | 152,000 | ||||||||
Total other comprehensive income (loss), gross | 4,631,000 | -6,931,000 | ||||||||
Total other comprehensive income (loss), tax effect | -1,798,000 | 2,681,000 | ||||||||
Total other comprehensive income (loss) | 2,833,000 | -4,250,000 | ||||||||
Total comprehensive income (loss), gross | 9,135,000 | -3,821,000 | ||||||||
Total comprehensive income (loss), tax effect | -3,217,000 | 2,041,000 | ||||||||
Total comprehensive income (loss) | $5,918,000 | ($1,780,000) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of Components of Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Unrealized gains and losses on available for sale (AFS) securities | ||
Balance at the beginning | ($3,790,000) | $460,000 |
Other comprehensive income (loss) before reclassifications | 2,932,000 | -4,154,000 |
Amounts reclassified from other comprehensive income | -99,000 | -96,000 |
Other comprehensive income (loss), net | 2,833,000 | -4,250,000 |
Balance at the end | -957,000 | -3,790,000 |
Unrealized Gains (Losses) on Available for Sale Securities [Member] | ||
Unrealized gains and losses on available for sale (AFS) securities | ||
Balance at the beginning | -3,455,000 | 947,000 |
Other comprehensive income (loss) before reclassifications | 3,162,000 | -4,306,000 |
Amounts reclassified from other comprehensive income | -99,000 | -96,000 |
Other comprehensive income (loss), net | 3,063,000 | -4,402,000 |
Balance at the end | -392,000 | -3,455,000 |
Loss on securities Reclassified from AFS to HTM [Member] | ||
Unrealized gains and losses on available for sale (AFS) securities | ||
Balance at the beginning | ||
Other comprehensive income (loss) before reclassifications | -377,000 | |
Amounts reclassified from other comprehensive income | ||
Other comprehensive income (loss), net | -377,000 | |
Balance at the end | -377,000 | |
Unrealized Gains Losses on Derivatives [Member] | ||
Unrealized gains and losses on available for sale (AFS) securities | ||
Balance at the beginning | -335,000 | -487,000 |
Other comprehensive income (loss) before reclassifications | 147,000 | 152,000 |
Amounts reclassified from other comprehensive income | ||
Other comprehensive income (loss), net | 147,000 | 152,000 |
Balance at the end | ($188,000) | ($335,000) |
ACCUMULATED_OTHER_COMPREHENSIV4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of Amount Reclassified from each Component of Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | ||
Unrealized gains on AFS securities before tax | $165,000 | $153,000 |
Tax effect | -66,000 | -57,000 |
Reclassification adjustment for gains in net income, net | 99,000 | 96,000 |
Total reclassifications, net of tax | $99,000 | $96,000 |
QUARTERLY_FINANCIAL_DATA_Unaud1
QUARTERLY FINANCIAL DATA (Unaudited) (Schedule of Quarterly Financial Data) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract] | ||||||||||
Interest income | $6,534,000 | $6,069,000 | $6,186,000 | $6,145,000 | $6,529,000 | $6,536,000 | $6,636,000 | $6,870,000 | $24,934,000 | $26,571,000 |
Interest expense | 767,000 | 791,000 | 810,000 | 839,000 | 911,000 | 940,000 | 958,000 | 1,004,000 | 3,207,000 | 3,813,000 |
Net interest income before provision for loan losses | 5,767,000 | 5,278,000 | 5,376,000 | 5,306,000 | 5,618,000 | 5,596,000 | 5,678,000 | 5,866,000 | 21,727,000 | 22,758,000 |
Provision for loan losses | -300,000 | 250,000 | 425,000 | 900,000 | 850,000 | 1,600,000 | -50,000 | 3,775,000 | ||
Net interest income after provision for loan losses | 6,067,000 | 5,028,000 | 5,376,000 | 5,306,000 | 5,193,000 | 4,696,000 | 4,828,000 | 4,266,000 | 21,777,000 | 18,983,000 |
Noninterest income | 990,000 | 764,000 | 807,000 | 399,000 | 525,000 | 971,000 | 995,000 | 1,474,000 | 2,960,000 | 3,965,000 |
Noninterest expenses | 5,044,000 | 4,989,000 | 5,106,000 | 5,094,000 | 4,901,000 | 4,874,000 | 5,131,000 | 4,932,000 | 20,233,000 | 19,838,000 |
Income before income tax expense | 2,013,000 | 803,000 | 1,077,000 | 611,000 | 817,000 | 793,000 | 692,000 | 808,000 | 4,504,000 | 3,110,000 |
Income tax expense (benefit) | 712,000 | 251,000 | 351,000 | 105,000 | 152,000 | 271,000 | 231,000 | -14,000 | 1,419,000 | 640,000 |
Net income | 1,301,000 | 552,000 | 726,000 | 506,000 | 665,000 | 522,000 | 461,000 | 822,000 | 3,085,000 | 2,470,000 |
Dividends on preferred stock | 171,000 | 170,000 | 171,000 | 171,000 | 170,000 | 170,000 | 127,000 | 166,000 | 683,000 | 633,000 |
Net income available to common shareholders | $1,130,000 | $382,000 | $555,000 | $335,000 | $495,000 | $352,000 | $334,000 | $656,000 | $2,402,000 | $1,837,000 |
Basic and diluted earnings per share | $0.19 | $0.06 | $0.09 | $0.06 | $0.08 | $0.06 | $0.06 | $0.11 | $0.40 | $0.31 |