Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 10, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'BAYK | ' | ' |
Entity Registrant Name | 'BAY BANKS OF VIRGINIA INC | ' | ' |
Entity Central Index Key | '0001034594 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 4,817,856 | ' |
Entity Public Float | ' | ' | $19,687,118 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash and due from banks | $6,788,689 | $4,757,889 |
Interest-bearing deposits | 8,900,190 | 35,166,448 |
Federal funds sold | 120,029 | 48,009 |
Securities available-for-sale, at fair value | 38,521,996 | 36,700,520 |
Restricted securities | 1,638,350 | 1,584,700 |
Loans receivable, net of allowance for loan losses of $2,925,264 and $3,093,623 | 247,911,646 | 235,746,026 |
Loans held for sale | 195,850 | 398,500 |
Premises and equipment, net | 10,620,542 | 11,611,688 |
Accrued interest receivable | 1,123,865 | 1,070,763 |
Other real estate owned, net | 3,896,987 | 3,151,346 |
Bank owned life insurance | 5,129,281 | ' |
Goodwill | 2,807,842 | 2,807,842 |
Mortgage servicing rights | 579,145 | ' |
Other assets | 2,900,651 | 1,753,945 |
Total assets | 331,135,063 | 334,797,676 |
Liabilities | ' | ' |
Noninterest-bearing deposits | 57,804,547 | 50,467,907 |
Savings and interest-bearing demand deposits | 114,056,155 | 117,954,879 |
Time deposits | 96,485,619 | 106,751,785 |
Total deposits | 268,346,321 | 275,174,571 |
Securities sold under repurchase agreements | 9,118,382 | 6,459,839 |
Federal Home Loan Bank advances | 15,000,000 | 15,000,000 |
Other liabilities | 1,533,861 | 1,578,295 |
Total liabilities | 293,998,564 | 298,212,705 |
SHAREHOLDERS' EQUITY | ' | ' |
Common stock ($5 par value; authorized - 10,000,000 shares; outstanding - 4,817,856 and 4,810,856 shares, respectively) | 24,089,280 | 24,054,280 |
Additional paid-in capital | 2,757,450 | 2,670,021 |
Retained earnings | 11,463,302 | 10,241,396 |
Accumulated other comprehensive loss, net | -1,173,533 | -380,726 |
Total shareholders' equity | 37,136,499 | 36,584,971 |
Total liabilities and shareholders' equity | $331,135,063 | $334,797,676 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Loans, allowance for loan losses | $2,925,264 | $3,093,623 |
Common stock, par value | $5 | $5 |
Common stock, authorized shares | 10,000,000 | 10,000,000 |
Common stock, outstanding shares | 4,817,856 | 4,810,856 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
INTEREST INCOME | ' | ' |
Loans, including fees | $12,617,422 | $12,972,848 |
Securities: | ' | ' |
Taxable | 447,935 | 644,790 |
Tax-exempt | 325,805 | 238,023 |
Federal funds sold | 607 | 2,849 |
Interest-bearing deposit accounts | 56,529 | 32,292 |
Total interest income | 13,448,298 | 13,890,802 |
INTEREST EXPENSE | ' | ' |
Deposits | 2,368,262 | 2,854,331 |
Federal funds purchased | 398 | 389 |
Securities sold under repurchase agreements | 15,949 | 16,075 |
FHLB advances | 449,700 | 566,072 |
Total interest expense | 2,834,309 | 3,436,867 |
Net interest income | 10,613,989 | 10,453,935 |
Provision for loan losses | 776,000 | 1,894,685 |
Net interest income after provision for loan losses | 9,837,989 | 8,559,250 |
NON-INTEREST INCOME | ' | ' |
Income from fiduciary activities | 697,707 | 648,706 |
Service charges and fees on deposit accounts | 1,076,393 | 895,236 |
VISA-related fees | 830,235 | 827,670 |
Other service charges and fees | 1,129,820 | 892,719 |
Secondary market lending fees (refer to Note 2) | 1,163,978 | 684,605 |
Bank owned life insurance income | 129,281 | ' |
Net gains on sale of securities available-for-sale | 283,706 | 957,760 |
Loss on securities with other-than-temporary impairment | -288,000 | ' |
Other real estate losses | -563,457 | -736,606 |
Net gains (losses) on fixed assets | 164,850 | -4,906 |
Other income | 101,340 | 327,234 |
Total non-interest income | 4,725,853 | 4,492,418 |
NON-INTEREST EXPENSES | ' | ' |
Salaries and employee benefits | 6,413,632 | 5,702,656 |
Occupancy expense | 1,331,269 | 1,375,642 |
Software maintenance | 505,146 | 608,368 |
Bank franchise tax | 170,538 | 156,756 |
VISA expense | 707,602 | 680,988 |
Telephone expense | 195,987 | 169,177 |
FDIC assessments | 397,402 | 407,814 |
Foreclosure property expense | 124,164 | 186,161 |
Consulting expense | 221,555 | 323,957 |
Other expense | 2,875,512 | 2,531,915 |
Total non-interest expenses | 12,942,807 | 12,143,434 |
Net income before income taxes | 1,621,035 | 908,234 |
Income tax expense | 399,129 | 210,472 |
Net income | $1,221,906 | $697,762 |
Basic Earnings Per Share | ' | ' |
Average basic shares outstanding | 4,816,859 | 2,610,856 |
Earnings per share, basic | $0.25 | $0.27 |
Diluted Earnings Per Share | ' | ' |
Average diluted shares outstanding | 4,819,343 | 2,612,787 |
Earnings per share, diluted | $0.25 | $0.27 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Net income | $1,221,906 | $697,762 |
Unrealized (losses) gains on securities: | ' | ' |
Unrealized holding (losses) gains arising during the period | -1,618,620 | 228,161 |
Deferred tax benefit (expense) | 550,331 | -77,574 |
Reclassification of net securities (gains) and impairments recognized in net income | -4,294 | -957,760 |
Deferred tax benefit | 1,460 | 325,638 |
Unrealized losses adjustment, net of tax | -1,071,123 | -481,535 |
Defined benefit pension plan: | ' | ' |
Total other comprehensive loss | -792,807 | -826,065 |
Comprehensive income (loss) | 429,099 | -128,303 |
Pension Plan, Defined Benefit | ' | ' |
Defined benefit pension plan: | ' | ' |
Net periodic cost | ' | -755,465 |
Net gain (loss) | 224,130 | 269,831 |
Deferred tax (expense) benefit | -76,204 | 163,292 |
Defined benefit pension plan adjustment, net of tax | 147,926 | -322,342 |
Other Postretirement Benefit Plan, Defined Benefit | ' | ' |
Defined benefit pension plan: | ' | ' |
Net gain (loss) | 194,649 | -39,293 |
Net transition cost | 2,913 | 2,913 |
Deferred tax (expense) benefit | -67,172 | 14,192 |
Defined benefit pension plan adjustment, net of tax | $130,390 | ($22,188) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period at Dec. 31, 2011 | $28,014,784 | $13,054,280 | $4,971,531 | $9,543,634 | $445,339 |
Balance at beginning of period, Shares at Dec. 31, 2011 | ' | 2,610,856 | ' | ' | ' |
Net income | 697,762 | ' | ' | 697,762 | ' |
Other comprehensive loss | -826,065 | ' | ' | ' | -826,065 |
Stock issued, Value | 8,695,566 | 11,000,000 | -2,304,434 | ' | ' |
Stock issued, Shares | ' | 2,200,000 | ' | ' | ' |
Stock compensation expense | 2,924 | ' | 2,924 | ' | ' |
Stock compensation expense, Shares | ' | 0 | ' | ' | ' |
Balance at end of period at Dec. 31, 2012 | 36,584,971 | 24,054,280 | 2,670,021 | 10,241,396 | -380,726 |
Balance at end of period, Shares at Dec. 31, 2012 | ' | 4,810,856 | ' | ' | ' |
Net income | 1,221,906 | ' | ' | 1,221,906 | ' |
Other comprehensive loss | -792,807 | ' | ' | ' | -792,807 |
Stock compensation expense | 122,429 | 35,000 | 87,429 | ' | ' |
Stock compensation expense, Shares | ' | 7,000 | ' | ' | ' |
Balance at end of period at Dec. 31, 2013 | $37,136,499 | $24,089,280 | $2,757,450 | $11,463,302 | ($1,173,533) |
Balance at end of period, Shares at Dec. 31, 2013 | ' | 4,817,856 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows From Operating Activities | ' | ' |
Net income | $1,221,906 | $697,762 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 754,480 | 769,476 |
Net amortization and accretion of securities | 390,920 | 272,264 |
Provision for loan losses | 776,000 | 1,894,685 |
Stock compensation expense | 122,429 | 2,924 |
Deferred income taxes | 259,307 | -42,949 |
Gain on securities available-for-sale | -283,706 | -957,760 |
Loss on securities with other-than-temporary impairment | 288,000 | ' |
Increase in OREO valuation allowance | 300,341 | 505,766 |
Loss on sale of other real estate | 263,116 | 230,840 |
(Gain) loss on disposal of fixed assets | -164,850 | 4,906 |
Mortgage servicing rights | -579,145 | ' |
Increase in bank owned life insurance | -129,281 | ' |
Gain on loans sold to FNMA | -391,131 | -528,911 |
Loan originations for sale to FNMA | -21,431,663 | -25,080,200 |
Loan sales to FNMA | 22,025,444 | 24,681,700 |
(Increase) decrease in accrued income and other assets | -67,564 | 275,426 |
Increase in other liabilities | 377,258 | 320,691 |
Net cash (used in) provided by operating activities | 3,731,861 | 3,046,620 |
Cash Flows From Investing Activities | ' | ' |
Proceeds from maturities and principal paydowns of available-for-sale securities | 3,951,287 | 4,633,678 |
Proceeds from sales and calls of available-for-sale securities | 9,432,875 | 15,225,843 |
Purchase of bank owned life insurance | -5,000,000 | ' |
Purchases of available-for-sale securities | -17,223,766 | -14,805,021 |
(Purchases) sales of restricted securities | -53,650 | 406,500 |
(Increase) decrease in federal funds sold | -72,020 | 2,088,366 |
Loan originations and principal collections, net | -15,417,421 | -6,173,840 |
Purchase of other assets | -771,000 | ' |
Proceeds from sale of other real estate | 1,188,928 | 1,049,860 |
Improvements to other real estate | -22,225 | -94,554 |
Purchases of premises and equipment | -537,711 | -90,048 |
Proceeds from the sale of premises and equipment | 727,091 | 4,250 |
Net cash (used in) provided by investing activities | -23,797,612 | 2,245,034 |
Cash Flows From Financing Activities | ' | ' |
Increase in demand, savings, and other interest-bearing deposits | 3,437,916 | 19,349,548 |
Proceeds from issuance of common stock | ' | 8,695,566 |
Net decrease in time deposits | -10,266,166 | -9,693,082 |
Net increase in securities sold under repurchase agreements | 2,658,543 | 1,182,681 |
Net cash (used in) provided by financing activities | -4,169,707 | 19,534,713 |
Net (decrease) increase in cash and due from banks | -24,235,458 | 24,826,367 |
Cash and due from banks at beginning of period | 39,924,337 | 15,097,970 |
Cash and due from banks at end of period | 15,688,879 | 39,924,337 |
Cash paid for: | ' | ' |
Interest | 2,824,256 | 3,448,683 |
Income taxes | 337,973 | 109,961 |
Non-cash investing and financing: | ' | ' |
Unrealized loss on investment securities | -1,622,914 | -729,599 |
Change in pension and post-retirement obligation | 421,692 | -522,014 |
Loans transferred to other real estate owned | 2,475,801 | 2,563,322 |
Loans originated to facilitate the sale of OREO | 328,250 | 277,400 |
Changes in deferred taxes resulting from OCI transactions | $408,415 | $428,070 |
Organization_and_Presentation
Organization and Presentation | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization and Presentation | ' | |
Note 1. | Organization and Presentation | |
Organization. Bay Banks of Virginia, Inc. (the “Company”) is a bank holding company that conducts substantially all of its operations through its subsidiaries. | ||
The Bank of Lancaster (the “Bank”) is state-chartered and a member of the Federal Reserve System and serves individual and commercial customers, the majority of which are in the Northern Neck of Virginia. The Bank has branch offices in the counties of Lancaster, Northumberland, Richmond, and Westmoreland, Virginia and a residential mortgage loan production office in Middlesex County Virginia. Each branch office offers a full range of deposit and loan products to its retail and commercial customers. A substantial amount of the Bank’s deposits are interest bearing. The majority of the Bank’s loan portfolio is secured by real estate. | ||
Bay Trust Company (the “Trust Company”) offers a broad range of investment services, as well as traditional trust and related fiduciary services from its main office in Kilmarnock, Virginia. Included are estate planning and settlement, revocable and irrevocable living trusts, testamentary trusts, custodial accounts, investment management accounts and managed, as well as self-directed, rollover Individual Retirement Accounts. | ||
Basis of Presentation. The consolidated financial statements of the Company include the accounts of Bay Banks of Virginia, Inc. and its subsidiaries, Bank of Lancaster and Bay Trust Company. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts in the consolidated financial statements of prior periods have been reclassified to conform to current year presentations. The reclassifications had no effect on net income, net income per share or shareholders’ equity as previously reported. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Significant Accounting Policies | ' | |
Note 2. | Significant Accounting Policies | |
Use of estimates | ||
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions. The amounts recorded in the consolidated financial statements may be affected by those estimates and assumptions. Actual results may vary from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the measurement of fair value of foreclosed real estate, deferred taxes, impairment testing of goodwill, projected pension and post-retirement obligations and fair value measurements. | ||
Cash and cash equivalents | ||
For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, all of which mature within ninety days. | ||
Interest-bearing deposits in banks | ||
Interest-bearing deposits in banks are carried at cost and include deposits with the Federal Reserve Bank of Richmond, which mature within one year. | ||
Securities | ||
Investments in debt and equity securities with readily determinable fair values are classified as either held to maturity, available-for-sale, or trading, based on management’s intent. Currently, all of the Company’s investment securities are classified as available-for- sale. Securities available-for-sale are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income. A gain or loss is recognized in earnings on the settlement date based on the amortized cost of the specific security sold. Purchase premiums and discounts are recognized in interest income via amortization or accretion, respectively, using the interest method over the terms of the securities. | ||
Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if (i) there is evidence of credit related impairment; (ii) the Company intends to sell the security or (iii) it is more-likely-than-not that the Company will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more-likely-than-not that it will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security. If there is a credit loss, the loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income. For equity securities, impairment is considered to be other-than-temporary based on the Company’s ability and intent to hold the investment until a recovery of fair value. Other-than-temporary impairment of an equity security results in a write-down that must be included in net income. The Company regularly reviews each investment security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the Company’s best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity and the likelihood that it would be required to sell the security before recovery. | ||
Securities sold under repurchase agreements | ||
Securities sold under repurchase agreements, which are classified as secured borrowings, generally mature within one year from the transaction date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company is required to provide collateral based on the fair value of the underlying securities. | ||
Loans | ||
The Company grants mortgage loans on real estate; commercial and industrial loans; and consumer and other loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Company’s market areas. | ||
Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, and charge-offs. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield via straight line amortization over the contractual term of the loan, adjusted for early pay-offs. | ||
The accrual of interest is generally discontinued at the time a loan is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Payments received for loans no longer accruing interest are applied to the unpaid principal balance. Loans greater than 90 days past due may remain on accrual status if the credit is well secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are charged off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual and past due policies are materially the same for all types of loans. | ||
All interest accrued but not collected for loans that are placed on non-accrual or charged off is reversed against interest income. Any interest received on these loans is accounted for on the cash basis or cost recovery method until qualifying for return to accrual. Generally, a loan is returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or it becomes well secured and in the process of collection. | ||
Troubled debt restructuring (“TDR”) | ||
In some situations, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to a borrower that it would not otherwise consider. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, the related loan is classified as a troubled debt restructuring. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. Management measures all TDRs for impairment as noted below for impaired loans. | ||
Allowance for loan losses (“ALL”) | ||
The ALL reflects management’s judgment of probable loan losses inherent in the portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter. To determine the total ALL, the Company estimates the reserves needed for each segment of the portfolio, including loans analyzed individually and pools of loans analyzed on a segmented basis. Considerations include historical experience, the nature and volume of the loan portfolio, adverse situations that may affect a borrower’s ability to repay, estimated value of any underlying collateral, prevailing local and national economic conditions and internal policies and procedures including credit risk management and underwriting. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as additional information becomes available. | ||
During the third quarter of 2012, management enhanced the ALL calculation methodology by changing the historical loss factor period from six quarters to the length of a business cycle. This increased the historical loss period to 16 quarters, and assumed the business cycle to have begun in the fourth quarter of 2008. As the length of that business cycle extended, so did the length of the historical loss factor period. During the third quarter of 2013, management determined that the business cycle had ended given noticeable national economic improvement and local real estate market stabilization and ceased this approach. The then current 19 quarters of historical losses will be used henceforth. This change in methodology produced an immaterial change in the ALL calculation. | ||
Management employs a risk rating system to evaluate and consistently categorize loan portfolio credit risk. Loans assigned risk rating grades include all commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250 thousand with chronic delinquency, and troubled debt restructures. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades are evaluated as new information becomes available for each borrowing relationship or at least quarterly. All other loans not specifically assigned a risk rating grade are monitored as a discrete pool of loans generally based on delinquency status. Risk rating categories are as follows: | ||
Pass – Borrower is strong or sound and collateral securing the loan, if any, is adequate. | ||
Watch – Borrower exhibits some signs of financial stress but is generally believed to be a satisfactory customer and collateral, if any, may be in excess of 90% of the loan balance. | ||
Special Mention – Adverse trends in the borrower’s financial position are evident and warrant management’s close attention and any collateral may not be fully adequate to secure loan balance. | ||
Substandard – A loan in this category has a well-defined weakness in the primary repayment source that jeopardizes the timely collection of the debt. There is a distinct possibility that a loss may result if the weakness is not corrected. | ||
Doubtful – Default has already occurred and it is likely that foreclosure or repossession procedures have begun or will begin in the near future. Weaknesses make collection or liquidation in full, based on currently existing information, highly questionable and improbable. | ||
Loss – Uncollectible and of such little value that continuance as a bankable asset is not warranted. | ||
The ALL consists of specific, general, and unallocated components. The specific component is determined by identifying impaired loans (as described below) then evaluating each one to calculate the amount of impairment. Impaired loans measured for impairment generally include: (1) non-accruing Special mention, Substandard and Doubtful loans in excess of $250,000; (2) Substandard and Doubtful loans in excess of $500,000; (3) Special Mention loans in excess of $500,000 if any of the loans in the relationship are more than 30 days past due or if the borrower has filed for bankruptcy; and (4) all TDRs. A specific allowance arises when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component collectively evaluates smaller commercial loans, residential mortgages and consumer loans, grouped into segments and classes. Historical loss experience is calculated and applied to each segment or class, then adjusted for qualitative factors. Qualitative factors include changes in the local and national economic outlook, including unemployment, interest rates, inflation rates and real estate trends; the level and trend of past due and nonaccrual loans; strength of policies and procedures; and oversight of credit risk and quality of underwriting. These qualitative adjustments reflect management’s judgment of risks inherent in the segments. An unallocated component is maintained if needed to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Changes in the allowance for loan losses and the related provision expense can materially affect net income. | ||
The specific component of the ALL calculation accounts for the loan loss reserve necessary on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. 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 considered 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. Accrual of interest may or may not be discontinued for any given impaired loan. Impairment is measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Because large groups of smaller balance homogeneous loans are collectively evaluated for impairment, the Company does not generally separately identify smaller balance individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. | ||
The general component of the ALL calculation collectively evaluates groups of loans in segments or classes, as noted above. The segments are: (1) Mortgage loans on real estate; (2) Commercial and industrial loans; and (3) Consumer and other loans. The segment for Mortgage loans on real estate is disaggregated into the following classes: (1) Construction, land and land development; (2) Farmland; (3) Residential first mortgages; (4) Residential revolving and junior mortgages; (5) Commercial mortgages (non-owner-occupied); and (6) Commercial mortgages (owner-occupied). Every loan is assigned to a segment or a class. Loans in segment 1 are secured by real estate. Loans in segments 2 and 3 are secured by other types of collateral or are unsecured. A given segment or class may not reflect the purpose of a loan. For example, a business owner may provide his residence as collateral for a loan to his company, in which case the loan would be grouped in a residential mortgage class. Historical loss factors are calculated for the prior 19 quarters by segment and class, and then applied to the current balances in each segment and class. Finally, qualitative factors are applied to each segment and class. | ||
Construction and development loans carry risks that the project will not be finished according to schedule or according to budget and the value of the collateral, at any point in time, may be less than the principal amount of the loan. These loans also bear the risk that the general contractor may face financial pressure unrelated to the project. Loans secured by land, farmland and residential mortgages carry the risk of continued credit-worthiness of the borrower and changes in value of the underlying real estate collateral. Commercial mortgages and commercial and industrial loans carry risks associated with the profitable operation of a business and its related cash flows. Additionally, commercial and industrial loans carry risks associated with the value of collateral other than real estate which may depreciate over time. Consumer loans carry risks associated with the continuing credit-worthiness of the borrower and are more likely than real estate loans to be adversely affected by divorce, unemployment, personal illness or bankruptcy of an individual. Consumer loans secured by automobiles carry risks associated with rapidly depreciating collateral. Consumer loans include credit cards. | ||
The summation of the specific, general and unallocated components results in the total estimated ALL. Management may also include an unallocated component to cover uncertainties in the level of probable losses. This estimate is inherently subjective and actual losses could be greater or less than the estimates. | ||
Additions to the ALL are made by charges to earnings through the provision for loan losses. Charge-offs result from credit exposures deemed to be uncollectible and the ALL is reduced by these. Recoveries of previously charged off amounts are credited back to the ALL. Charge-off policies are materially the same for all types of loans. | ||
Mortgage servicing rights (“MSRs”) | ||
MSRs are included on the consolidated balance sheet and recorded at fair value on an ongoing basis. Changes in the fair value of the MSRs are recorded in the results of operations. A fair value analysis of MSRs is performed on a quarterly basis. | ||
The Company has sold mortgages that it has originated to a third party and retained servicing rights for a number of years. The Company had not recorded the MSRs asset at the time of the sale of mortgages to the third party prior to 2013. The Company recognized the cumulative effect of the MSRs asset in the third quarter of 2013. The overstatement of income in 2013 of approximately $215,000 after tax ($325,000 pre-tax adjusted at a 34% tax rate) or approximately $0.04 per basic and diluted earnings per share represents the fair value of servicing rights retained prior to 2013. The Company is accounting for the MSRs under the fair value method after the initial recording. | ||
The Company has evaluated this uncorrected misstatement in consideration and accordance with the guidance from Staff Accounting Bulletin (“SAB”) 99 and 108, in order to determine whether it is material to the financial statements taken as a whole. The Company’s evaluation process included consideration of the nature, cause, amount and effect of the misstatement from both a quantitative and qualitative perspective. | ||
It is management’s judgment that the adjustment to the 2013 financial statements for MSRs, related to 2012 and prior, is not material to the 2013 balance sheet, results of operations and cash flows taken as a whole. | ||
Premises and equipment, net | ||
Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the premises and equipment. Estimated useful lives range from 10-40 years for buildings, and from 3-10 years for furniture, fixtures and equipment. Maintenance and repairs are charged to expense as incurred, and major improvements are capitalized. | ||
Other real estate owned, net | ||
Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value on the date of foreclosure less estimated selling costs, thereby establishing a new cost basis. After acquisition, management periodically performs valuations and the real estate is carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations are included in expenses from foreclosed assets and changes in the valuation allowance are included in other real estate gains (losses). | ||
Goodwill | ||
Goodwill is related to unidentifiable intangible assets arising from the acquisition of five branches during the years 1994 through 2000. Goodwill is tested annually for impairment. If impairment exists, the amount of impairment would result in a charge to expense. | ||
Income taxes | ||
Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. | ||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties, if any, associated with unrecognized tax benefits are classified as additional income taxes in the statements of income. The Company had no liabilities for recognized tax benefits at December 31, 2013 or 2012. | ||
The Company evaluates its deferred tax assets quarterly to determine if those assets will recovered and if a valuation allowance is needed. At December 31, 2013, the Company determined no valuation allowance related to its deferred tax assets was necessary. | ||
Pension benefits | ||
The non-contributory cash balance benefit pension plan was frozen as of December 31, 2012. It covers substantially all full-time employees who became vested in the plan by that date. Prior to December 31, 2012, the plan accumulated benefits for each covered employee based on annual pay credits, which were based on age and years of service, plus monthly interest credits based on an amount established each year by the Board of Directors, or the minimum interest rate per the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). Going forward, the balances for those employees vested by December 31, 2012 will continue to receive interest credits. | ||
Postretirement benefits | ||
The Company provides certain health care benefits for all retired employees who meet eligibility requirements. | ||
Trust assets and income | ||
Customer assets held by the Trust Company, other than cash on deposit at the Bank, are not included in these financial statements, since such items are not assets of the Bank or the Trust Company. Trust fees are recorded on the accrual basis. | ||
Earnings per share | ||
Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate solely to outstanding stock options. Refer to Note 19. | ||
Off-balance-sheet financial instruments | ||
In the ordinary course of business, the Company enters into off-balance-sheet financial instruments such as home equity lines of credit, overdraft protection lines of credit, unsecured lines of credit, commitments under credit card arrangements, construction loan commitments and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. | ||
Significant group concentration of credit risk | ||
Most of the Company’s business activity is with customers located in the counties of Lancaster, Northumberland, Richmond and Westmoreland, Virginia. The Company makes residential, commercial and consumer loans and a significant amount of the loan portfolio is comprised of real estate mortgage loans, which are primarily secured by single-family residences. The adequacy of collateral on real estate mortgage loans is highly dependent on changes in real estate values. | ||
Advertising | ||
Advertising costs are expensed as incurred and totaled $175 thousand and $127 thousand for the years ended December 31, 2013 and 2012, respectively. | ||
Comprehensive income | ||
Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains or losses on securities available-for-sale and changes in the actuarial gain or loss of the pension and postretirement plan. The cumulative position of the items in comprehensive income resides in shareholders’ equity as accumulated other comprehensive income. Refer to Note 24. | ||
Fair value of financial instruments | ||
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 21. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. | ||
Transfers of financial assets | ||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership; (2) 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 (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | ||
Stock-based compensation plans | ||
Authoritative accounting guidance requires companies to recognize the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant. This cost is recognized over the vesting period of the respective awards. | ||
Recent Accounting Pronouncements. | ||
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-11, “Balance Sheet (Topic 210) – Disclosures about Offsetting Assets and Liabilities.” This ASU requires entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the balance sheet and instruments and transactions subject to an agreement similar to a master netting arrangement. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of the new guidance did not have a material impact on the Company’s consolidated financial statements. | ||
In January 2013, the FASB issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The amendments in this ASU clarify the scope for derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements and securities borrowing and securities lending transactions that are either offset or subject to netting arrangements. An entity is required to apply the amendments for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The adoption of the new guidance did not have a material impact on the Company’s consolidated financial statements. | ||
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in this ASU require an entity to present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income. In addition, the amendments require a cross-reference to other disclosures currently required for other reclassification items to be reclassified directly to net income in their entirety in the same reporting period. Companies should apply these amendments for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. The Company has included the required disclosures from ASU 2013-02 in the consolidated financial statements. | ||
In January 2014, the FASB issued ASU 2014-04, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-4): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The amendment clarifies that an in- substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, either upon (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendment also requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the 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. Companies should apply this amendment for fiscal years and interim periods beginning after December 15, 2014. The adoption of the new guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
Goodwill
Goodwill | 12 Months Ended | |
Dec. 31, 2013 | ||
Goodwill | ' | |
Note 3. | Goodwill | |
The Company has goodwill relating to the purchase of five branches during the years 1994 through 2000. The balance of the goodwill at December 31, 2013 and 2012, as reflected on the consolidated balance sheets, was $2,807,842. Management determined that these purchases qualified as acquisitions of businesses and that the related unidentifiable intangibles were goodwill. Goodwill is tested annually for impairment. The test performed in December 2013 using financial information as of September 30, 2013 found no impairment. No events occurred between the date of our annual test and December 31, 2013 that would indicate the existence of impairment. |
Investment_Securities
Investment Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||||||
Note 4. | Investment Securities | ||||||||||||||||||||||||
The aggregate amortized cost and fair values of the available-for-sale securities portfolio are as follows: | |||||||||||||||||||||||||
Available-for-sale securities | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
December 31, 2013 | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. Government agencies | $ | 9,383,854 | $ | 10,627 | $ | (86,412 | ) | $ | 9,308,069 | ||||||||||||||||
State and municipal obligations | 27,690,034 | 109,280 | (1,242,426 | ) | 26,556,888 | ||||||||||||||||||||
Certificates of deposits | 1,736,000 | 9,039 | — | 1,745,039 | |||||||||||||||||||||
Auction rate security | 912,000 | — | — | 912,000 | |||||||||||||||||||||
$ | 39,721,888 | $ | 128,946 | $ | (1,328,838 | ) | $ | 38,521,996 | |||||||||||||||||
Available-for-sale securities | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
December 31, 2012 | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. Government agencies | $ | 9,411,627 | $ | 78,178 | $ | (25,990 | ) | $ | 9,463,815 | ||||||||||||||||
State and municipal obligations | 23,480,871 | 412,759 | (44,102 | ) | 23,849,528 | ||||||||||||||||||||
Certificates of deposits | 1,985,000 | 3,271 | (1,094 | ) | 1,987,177 | ||||||||||||||||||||
Auction rate security | 1,400,000 | — | — | 1,400,000 | |||||||||||||||||||||
$ | 36,277,498 | $ | 494,208 | $ | (71,186 | ) | $ | 36,700,520 | |||||||||||||||||
The cost of securities sold is based on actual net cost. Gross realized gains and gross realized losses, as well as proceeds on sales and calls of securities, were as follows: | |||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Gross realized gains | $ | 285,286 | $ | 959,588 | |||||||||||||||||||||
Gross realized losses | (1,580 | ) | (1,828 | ) | |||||||||||||||||||||
Net realized gains | $ | 283,706 | $ | 957,760 | |||||||||||||||||||||
Aggregate proceeds | $ | 9,432,875 | $ | 15,225,843 | |||||||||||||||||||||
The aggregate amortized cost and market values of the investment securities portfolio by contractual maturity at December 31, 2013 are shown below: | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
Due in one year or less | $ | 5,882,454 | $ | 5,881,588 | |||||||||||||||||||||
Due after one year through five years | 15,851,356 | 15,785,063 | |||||||||||||||||||||||
Due after five through ten years | 15,416,075 | 14,539,307 | |||||||||||||||||||||||
Due after ten years | 2,572,003 | 2,316,038 | |||||||||||||||||||||||
$ | 39,721,888 | $ | 38,521,996 | ||||||||||||||||||||||
Securities with a market value of $12,891,507 and $8,123,132 at December 31, 2013 and 2012, respectively, were pledged as collateral for public deposits, repurchase agreements and for other purposes as required by law. | |||||||||||||||||||||||||
Securities in an unrealized loss position at December 31, 2013 and 2012, by duration of the unrealized loss, are shown below. With the exception of the auction rate security, the unrealized loss positions were directly related to interest rate movements as there is minimal credit risk exposure in these investments. All agency securities, states and municipal securities and certificates of deposit are investment grade or better and their losses are considered temporary. Management does not intend to sell the securities and does not expect to be required to sell the securities. All amortized cost bases are expected to be recovered. Bonds with unrealized loss positions at December 31, 2013 included 50 municipals, 14 U.S. treasuries and agencies and one federal agency. Bonds with unrealized loss positions at December 31, 2012 included three certificates of deposit, 10 municipal securities and two federal agency securities. | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
December 31, 2013 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
U.S. Government agencies | $ | 4,807,632 | $ | 66,984 | $ | 1,462,360 | $ | 19,428 | $ | 6,269,992 | $ | 86,412 | |||||||||||||
States and municipal obligations | 14,255,426 | 1,120,034 | 2,305,821 | 122,392 | 16,561,247 | 1,242,426 | |||||||||||||||||||
Total temporarily impaired securities | $ | 19,063,058 | $ | 1,187,018 | $ | 3,768,181 | $ | 141,820 | $ | 22,831,239 | $ | 1,328,838 | |||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
December 31, 2012 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
U.S. Government agencies | $ | 1,080,438 | $ | 25,990 | $ | — | $ | — | $ | 1,080,438 | $ | 25,990 | |||||||||||||
States and municipal obligations | 2,863,106 | 37,731 | 1,037,825 | 6,371 | 3,900,931 | 44,102 | |||||||||||||||||||
Certificates of deposits | 742,906 | 1,094 | — | — | 742,906 | 1,094 | |||||||||||||||||||
Total temporarily impaired securities | $ | 4,686,450 | $ | 64,815 | $ | 1,037,825 | $ | 6,371 | $ | 5,724,275 | $ | 71,186 | |||||||||||||
The following table summarizes cumulative credit-related other-than temporary impairment losses recognized on the one auction rate security held by the Company (no other-than-temporary-impairment was recognized for the year ended December 31, 2012): | |||||||||||||||||||||||||
For the year ended | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Balance, beginning of the period | $ | — | |||||||||||||||||||||||
Impairment losses recognized during the period | 288,000 | ||||||||||||||||||||||||
Realized losses from sales | — | ||||||||||||||||||||||||
Balance, end of period | $ | 288,000 | |||||||||||||||||||||||
The Company holds one South Carolina Student Loan Corporation auction rate security with a face amount of $1.2 million. During the second quarter of 2013, the South Carolina Student Loan Corporation made a tender and exchange offer with regards to these auction rate securities with the provision that 50% of the security holders were required to accept the tender offer in order for it to be consummated. The tender offer was not accepted by the required 50% of security holders. As a result of the tender and exchange offer, the Company determined that the value of this auction rate security was other than temporarily impaired. The market value of the security was estimated based on Level 3 inputs (refer to Note 21). The Company recognized an other-than-temporary impairment charge of $288 thousand in income related to this security during 2013. In the first quarter of 2014, the Company sold this auction rate security for $912 thousand. | |||||||||||||||||||||||||
The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $1,079,800 and $1,146,600 at December 31, 2013 and 2012, respectively. The investment in FHLB stock is a required investment related to the Company’s membership with the FHLB. This investment is carried at cost since there is no ready market and redemptions have historically has been made at par. The Company does not consider this investment to be other-than-temporarily impaired at December 31, 2013 and no impairment has been recognized. FHLB stock is shown in the restricted securities line item on the consolidated balance sheets and is not a part of the available-for-sale securities portfolio. | |||||||||||||||||||||||||
The Company also had an investment in Federal Reserve Bank (“FRB”) stock which totaled $382 thousand and $262 thousand at December 31, 2013 and 2012, respectively. The investment in FRB stock is a required investment and is carried at cost since there is no ready market. The Company does not consider this investment to be other-than-temporarily impaired at December 31, 2013 and no impairment has been recognized. FRB stock is shown in the restricted securities line item on the consolidated balance sheets and is not part of the available-for-sale securities portfolio. |
Loans
Loans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||
Note 5. | Loans | ||||||||||||||||||||||||
The following is a summary of the balances of loans including net unamortized deferred loan fees and other costs of $505,534 and $702,154 for December 31, 2013 and 2012, respectively: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Mortgage loans on real estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 31,838,883 | $ | 29,024,294 | |||||||||||||||||||||
Farmland | 1,261,825 | 1,442,757 | |||||||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | 14,626,139 | 13,420,551 | |||||||||||||||||||||||
Commercial Mortgages (Owner Occupied) | 34,177,314 | 33,634,384 | |||||||||||||||||||||||
Residential First Mortgages | 114,457,561 | 106,455,040 | |||||||||||||||||||||||
Residential Revolving and Junior Mortgages | 24,045,395 | 26,982,512 | |||||||||||||||||||||||
Commercial and Industrial loans | 23,938,601 | 20,524,547 | |||||||||||||||||||||||
Consumer Loans | 5,985,658 | 6,653,410 | |||||||||||||||||||||||
Total loans | $ | 250,331,376 | $ | 238,137,495 | |||||||||||||||||||||
Net unamortized deferred loans costs | 505,534 | 702,154 | |||||||||||||||||||||||
Allowance for loan losses | (2,925,264 | ) | (3,093,623 | ) | |||||||||||||||||||||
Loans, net | $ | 247,911,646 | $ | 235,746,026 | |||||||||||||||||||||
The recorded investment in past due and non-accruing loans is shown in the following table. A loan past due by 90 days or more is generally placed on nonaccrual, unless it is both well secured and in the process of collection. | |||||||||||||||||||||||||
Loans Past Due and Nonaccruals | 30-89 | 90 Days or | Nonaccruals | Total Past | Current | Total | |||||||||||||||||||
December 31, 2013 | Days | More Past | Due and | Loans | |||||||||||||||||||||
Past Due | Due and | Nonaccruals | |||||||||||||||||||||||
Still Accruing | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 64,643 | $ | — | $ | 853,565 | $ | 918,208 | $ | 30,920,675 | $ | 31,838,883 | |||||||||||||
Farmland | — | — | — | — | 1,261,825 | 1,261,825 | |||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | — | — | — | — | 14,626,139 | 14,626,139 | |||||||||||||||||||
Commercial Mortgages (Owner Occupied) | — | — | 426,737 | 426,737 | 33,750,577 | 34,177,314 | |||||||||||||||||||
Residential First Mortgages | 667,987 | — | 1,083,302 | 1,751,289 | 112,706,272 | 114,457,561 | |||||||||||||||||||
Residential Revolving and Junior Mortgages | 108,113 | — | 76,110 | 184,223 | 23,861,172 | 24,045,395 | |||||||||||||||||||
Commercial and Industrial | 15,788 | — | 310,929 | 326,717 | 23,611,884 | 23,938,601 | |||||||||||||||||||
Consumer Loans | 60,152 | 18,710 | 3,243 | 82,105 | 5,903,553 | 5,985,658 | |||||||||||||||||||
Total | $ | 916,683 | $ | 18,710 | $ | 2,753,886 | $ | 3,689,279 | $ | 246,642,097 | $ | 250,331,376 | |||||||||||||
Loans Past Due and Nonaccruals | 30-89 | 90 Days or | Nonaccruals | Total Past | Current | Total | |||||||||||||||||||
December 31, 2012 | Days | More Past | Due and | Loans | |||||||||||||||||||||
Past Due | Due and | Nonaccruals | |||||||||||||||||||||||
Still Accruing | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 230,866 | $ | — | $ | 655,397 | $ | 886,263 | $ | 28,138,031 | $ | 29,024,294 | |||||||||||||
Farmland | — | — | — | — | 1,442,757 | 1,442,757 | |||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | — | — | 318,418 | 318,418 | 13,102,133 | 13,420,551 | |||||||||||||||||||
Commercial Mortgages (Owner Occupied) | — | 71,254 | 819,467 | 890,721 | 32,743,663 | 33,634,384 | |||||||||||||||||||
Residential First Mortgages | 761,981 | 502 | 2,677,788 | 3,440,271 | 103,014,769 | 106,455,040 | |||||||||||||||||||
Residential Revolving and Junior Mortgages | 18,081 | — | 1,257,915 | 1,275,996 | 25,706,516 | 26,982,512 | |||||||||||||||||||
Commercial and Industrial | 100,886 | 50,075 | — | 150,961 | 20,373,586 | 20,524,547 | |||||||||||||||||||
Consumer Loans | 12,193 | 3,688 | 1,479 | 17,360 | 6,636,050 | 6,653,410 | |||||||||||||||||||
Total | $ | 1,124,007 | $ | 125,519 | $ | 5,730,464 | $ | 6,979,990 | $ | 231,157,505 | $ | 238,137,495 | |||||||||||||
Allowance_for_Loan_Losses
Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Allowance for Loan Losses | ' | ||||||||||||||||||||||||
Note 6. | Allowance for Loan Losses | ||||||||||||||||||||||||
A disaggregation of and an analysis of the change in the allowance for loan losses by segment is shown below. | |||||||||||||||||||||||||
Mortgage | Commercial | Consumer | Total | ||||||||||||||||||||||
Loans on | and | and Other | |||||||||||||||||||||||
Real Estate | Industrial | Loans | |||||||||||||||||||||||
For the Twelve Months Ended December 31, 2013 | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: | |||||||||||||||||||||||||
Beginning Balance | $ | 2,571,673 | $ | 262,000 | $ | 259,950 | $ | 3,093,623 | |||||||||||||||||
(Charge-offs) | (878,781 | ) | (16,897 | ) | (132,599 | ) | (1,028,277 | ) | |||||||||||||||||
Recoveries | 68,257 | 1,535 | 14,126 | 83,918 | |||||||||||||||||||||
Provision | 704,370 | 9,362 | 62,268 | 776,000 | |||||||||||||||||||||
Ending Balance | $ | 2,465,519 | $ | 256,000 | $ | 203,745 | $ | 2,925,264 | |||||||||||||||||
Individually evaluated for impairment | $ | 633,519 | $ | — | $ | 33,032 | $ | 666,551 | |||||||||||||||||
Collectively evaluated for impairment | 1,832,000 | 256,000 | 170,713 | 2,258,713 | |||||||||||||||||||||
Mortgage | Commercial | Consumer | Total | ||||||||||||||||||||||
Loans on | and | and other | |||||||||||||||||||||||
Real Estate | Industrial | Loans | |||||||||||||||||||||||
For the Twelve Months Ended December 31, 2012 | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: | |||||||||||||||||||||||||
Beginning Balance | $ | 2,713,490 | $ | 281,650 | $ | 193,401 | $ | 3,188,541 | |||||||||||||||||
(Charge-offs) | (1,798,812 | ) | (388,026 | ) | (188,724 | ) | (2,375,562 | ) | |||||||||||||||||
Recoveries | 289,385 | 18,369 | 78,205 | 385,959 | |||||||||||||||||||||
Provision | 1,367,610 | 350,007 | 177,068 | 1,894,685 | |||||||||||||||||||||
Ending Balance | $ | 2,571,673 | $ | 262,000 | $ | 259,950 | $ | 3,093,623 | |||||||||||||||||
Individually evaluated for impairment | $ | 759,673 | $ | — | $ | 74,210 | $ | 833,883 | |||||||||||||||||
Collectively evaluated for impairment | 1,812,000 | 262,000 | 185,740 | 2,259,740 | |||||||||||||||||||||
Loan receivables evaluated for impairment individually and collectively by segment as of December 31, 2013 and 2012 are as follows: | |||||||||||||||||||||||||
Mortgage | Commercial | Consumer | Total | ||||||||||||||||||||||
Loans | and | Loans | |||||||||||||||||||||||
on Real Estate | Industrial | ||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,305,880 | $ | 310,929 | $ | 38,904 | $ | 6,655,713 | |||||||||||||||||
Collectively evaluated for impairment | 214,101,237 | 23,627,672 | 5,946,754 | 243,675,663 | |||||||||||||||||||||
Total Gross Loans | $ | 220,407,117 | $ | 23,938,601 | $ | 5,985,658 | $ | 250,331,376 | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,507,702 | $ | — | $ | 73,978 | $ | 7,581,680 | |||||||||||||||||
Collectively evaluated for impairment | 203,451,836 | 20,524,547 | 6,579,432 | 230,555,815 | |||||||||||||||||||||
Total Gross Loans | $ | 210,959,538 | $ | 20,524,547 | $ | 6,653,410 | $ | 238,137,495 | |||||||||||||||||
Internal risk rating grades are shown in the following table. | |||||||||||||||||||||||||
As of December 31, 2013 | Construction, | Farmland | Commercial | Commercial | Commercial | Total | |||||||||||||||||||
INTERNAL RISK RATING GRADES | Land and | Mortgages | Mortgages | and | |||||||||||||||||||||
Land | (Non-Owner | (Owner | Industrial | ||||||||||||||||||||||
Development | Occupied) | Occupied) | |||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 25,615,970 | $ | 1,261,825 | $ | 9,082,983 | $ | 23,983,720 | $ | 20,310,349 | $ | 80,254,847 | |||||||||||||
Watch | 3,493,341 | — | 5,204,100 | 7,429,025 | 2,742,550 | 18,869,016 | |||||||||||||||||||
Special mention | 1,415,741 | — | — | 1,001,243 | 487,089 | 2,904,073 | |||||||||||||||||||
Substandard | 1,313,831 | — | 339,056 | 1,763,326 | 398,613 | 3,814,826 | |||||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 31,838,883 | $ | 1,261,825 | $ | 14,626,139 | $ | 34,177,314 | $ | 23,938,601 | $ | 105,842,762 | |||||||||||||
As of December 31, 2012 | Construction, | Farmland | Commercial | Commercial | Commercial | Total | |||||||||||||||||||
INTERNAL RISK RATING GRADES | Land and | Mortgages | Mortgages | and | |||||||||||||||||||||
Land | (Non-Owner | (Owner | Industrial | ||||||||||||||||||||||
Development | Occupied) | Occupied) | |||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 21,877,355 | $ | 1,442,757 | $ | 7,362,289 | $ | 23,974,131 | $ | 16,418,910 | $ | 71,075,442 | |||||||||||||
Watch | 4,746,266 | — | 2,824,575 | 6,680,142 | 2,866,739 | 17,117,722 | |||||||||||||||||||
Special mention | 1,162,388 | — | 2,574,371 | 338,902 | 759,554 | 4,835,215 | |||||||||||||||||||
Substandard | 1,038,285 | — | 659,316 | 2,641,209 | 479,344 | 4,818,154 | |||||||||||||||||||
Doubtful | 200,000 | — | — | — | — | 200,000 | |||||||||||||||||||
Total | $ | 29,024,294 | $ | 1,442,757 | $ | 13,420,551 | $ | 33,634,384 | $ | 20,524,547 | $ | 98,046,533 | |||||||||||||
Loans not assigned internal risk rating grades are comprised of smaller residential mortgages and smaller consumer loans. Payment activity of these loans is reviewed monthly by management. However, some of these loans are graded when the borrower’s total exposure to the Bank exceeds the limits noted above. Loans are considered to be nonperforming when they are delinquent by 90 days or more or non-accruing and credit risk is primarily evaluated by delinquency status, as shown in the table below. | |||||||||||||||||||||||||
As of December 31, 2013 | Residential | Residential | Consumer | Total | |||||||||||||||||||||
PAYMENT ACTIVITY STATUS | First | Revolving | Loans (3) | ||||||||||||||||||||||
Mortgages (1) | and Junior | ||||||||||||||||||||||||
Mortgages (2) | |||||||||||||||||||||||||
Performing | $ | 113,374,260 | $ | 23,969,285 | $ | 5,963,705 | $ | 143,307,250 | |||||||||||||||||
Nonperforming | 1,083,302 | 76,110 | 21,953 | 1,181,365 | |||||||||||||||||||||
Total | $ | 114,457,562 | $ | 24,045,395 | $ | 5,985,658 | $ | 144,488,615 | |||||||||||||||||
As of December 31, 2012 | Residential | Residential | Consumer | Total | |||||||||||||||||||||
PAYMENT ACTIVITY STATUS | First | Revolving | Loans (6) | ||||||||||||||||||||||
Mortgages (4) | and Junior | ||||||||||||||||||||||||
Mortgages (5) | |||||||||||||||||||||||||
Performing | $ | 103,776,750 | $ | 25,724,597 | $ | 6,648,243 | $ | 136,149,590 | |||||||||||||||||
Nonperforming | 2,678,290 | 1,257,915 | 5,167 | 3,941,372 | |||||||||||||||||||||
Total | $ | 106,455,040 | $ | 26,982,512 | $ | 6,653,410 | $ | 140,090,962 | |||||||||||||||||
-1 | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2,645,313 as of December 31, 2013. | ||||||||||||||||||||||||
-2 | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $216,202 as of December 31, 2013. | ||||||||||||||||||||||||
-3 | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $9,094 as of December 31, 2013. | ||||||||||||||||||||||||
-4 | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $4,676,938 as of December 31, 2012. | ||||||||||||||||||||||||
-5 | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $536,019 and Doubtful totaled $847,581 as of December 31, 2012. | ||||||||||||||||||||||||
-6 | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $75,409 as of December 31, 2012. | ||||||||||||||||||||||||
The following tables show the Company’s recorded investment and the customers’ unpaid principal balances for impaired loans, with the associated allowance amount, if applicable, as of December 31, 2013 and 2012 along with the average recorded investment and interest income recognized for the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
IMPAIRED LOANS | Recorded | Customers’ Unpaid | Related | ||||||||||||||||||||||
Investment | Principal Balance | Allowance | |||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 452,429 | $ | 453,350 | $ | — | |||||||||||||||||||
Residential First Mortgages | 1,053,222 | 1,056,696 | — | ||||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | — | — | — | ||||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264,056 | 264,056 | — | ||||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,830,746 | 1,839,801 | — | ||||||||||||||||||||||
Commercial and Industrial | 310,929 | 310,929 | — | ||||||||||||||||||||||
Consumer (2) | — | — | — | ||||||||||||||||||||||
3,911,382 | 3,924,832 | — | |||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | 151,147 | 155,791 | 51,447 | ||||||||||||||||||||||
Residential First Mortgages | 2,198,253 | 2,198,253 | 408,652 | ||||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 250,676 | 878,429 | 172,453 | ||||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | ||||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 105,351 | 105,351 | 967 | ||||||||||||||||||||||
Commercial and Industrial | — | — | — | ||||||||||||||||||||||
Consumer (2) | 38,904 | 38,904 | 33,032 | ||||||||||||||||||||||
2,744,331 | 3,376,728 | 666,551 | |||||||||||||||||||||||
Total Impaired Loans: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | 603,576 | 609,141 | 51,447 | ||||||||||||||||||||||
Residential First Mortgages | 3,251,475 | 3,254,949 | 408,652 | ||||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 250,676 | 878,429 | 172,453 | ||||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264,056 | 264,056 | — | ||||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,936,097 | 1,945,152 | 967 | ||||||||||||||||||||||
Commercial and Industrial | 310,929 | 310,929 | — | ||||||||||||||||||||||
Consumer (2) | 38,904 | 38,904 | 33,032 | ||||||||||||||||||||||
$ | 6,655,713 | $ | 7,301,560 | $ | 666,551 | ||||||||||||||||||||
-1 | Junior mortgages include equity lines | ||||||||||||||||||||||||
-2 | Includes credit cards | ||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
IMPAIRED LOANS | Recorded | Customers’ Unpaid | Related | ||||||||||||||||||||||
Investment | Principal Balance | Allowance | |||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 213,768 | $ | 213,914 | $ | — | |||||||||||||||||||
Residential First Mortgages | 1,495,910 | 1,495,910 | — | ||||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 971,654 | 1,785,259 | — | ||||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 758,391 | 758,391 | — | ||||||||||||||||||||||
Consumer (2) | — | — | — | ||||||||||||||||||||||
$ | 3,439,723 | $ | 4,253,474 | $ | — | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 61,882 | $ | 65,566 | $ | 25,882 | |||||||||||||||||||
Residential First Mortgages | 2,782,380 | 2,807,875 | 467,454 | ||||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 365,107 | 381,452 | 101,253 | ||||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 858,610 | 858,610 | 165,084 | ||||||||||||||||||||||
Consumer (2) | 73,978 | 73,978 | 74,210 | ||||||||||||||||||||||
$ | 4,141,957 | $ | 4,187,481 | $ | 833,883 | ||||||||||||||||||||
Total Impaired Loans: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 275,650 | $ | 279,480 | $ | 25,882 | |||||||||||||||||||
Residential First Mortgages | 4,278,290 | 4,303,785 | 467,454 | ||||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 1,336,761 | 2,166,711 | 101,253 | ||||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,617,001 | 1,617,001 | 165,084 | ||||||||||||||||||||||
Consumer (2) | 73,978 | 73,978 | 74,210 | ||||||||||||||||||||||
$ | 7,581,680 | $ | 8,440,955 | $ | 833,883 | ||||||||||||||||||||
-1 | Junior mortgages include equity lines | ||||||||||||||||||||||||
-2 | Includes credit cards | ||||||||||||||||||||||||
For the Twelve Months Ended | For the Twelve Months Ended | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
IMPAIRED LOANS | Average | Interest | Average | Interest | |||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 189,058 | $ | 1,493 | $ | 202,754 | $ | 292 | |||||||||||||||||
Residential First Mortgages | 678,171 | 47,960 | 1,372,196 | 87,917 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | — | — | 1,380,596 | 6,238 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 105,622 | 7,945 | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,091,822 | 56,417 | 429,600 | 31,116 | |||||||||||||||||||||
Commercial and Industrial | 62,186 | — | — | — | |||||||||||||||||||||
Consumer (2) | — | — | — | — | |||||||||||||||||||||
2,126,859 | 113,815 | 3,385,146 | 125,563 | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | 30,229 | — | 63,761 | — | |||||||||||||||||||||
Residential First Mortgages | 1,916,379 | 107,608 | 1,803,730 | 76,058 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 254,149 | 8,236 | 310,725 | 1,953 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 21,070 | 1,733 | 863,479 | 27,861 | |||||||||||||||||||||
Commercial and Industrial | — | — | — | — | |||||||||||||||||||||
Consumer (2) | 59,524 | 5,047 | 67,322 | 8,385 | |||||||||||||||||||||
2,281,351 | 122,624 | 3,109,017 | 114,257 | ||||||||||||||||||||||
Total | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | 219,287 | 1,493 | 266,515 | 292 | |||||||||||||||||||||
Residential First Mortgages | 2,594,550 | 155,568 | 3,175,926 | 163,975 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 254,149 | 8,236 | 1,691,321 | 8,191 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 105,622 | 7,945 | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,112,892 | 58,150 | 1,293,079 | 58,977 | |||||||||||||||||||||
Commercial and Industrial | 62,186 | — | — | — | |||||||||||||||||||||
Consumer (2) | 59,524 | 5,047 | 67,322 | 8,385 | |||||||||||||||||||||
$ | 4,408,210 | $ | 236,439 | $ | 6,494,163 | $ | 239,820 | ||||||||||||||||||
-1 | Junior mortgages include equity lines. | ||||||||||||||||||||||||
-2 | Includes credit cards. | ||||||||||||||||||||||||
Smaller non-accruing loans and non-accruing loans that are not graded because they are included in homogenous pools generally do not meet the criteria for impairment testing, and are therefore excluded from impaired loan disclosures. At December 31, 2013 and 2012, non-accruing loans excluded from impaired loan disclosure totaled $723,561 and $721,951, respectively. If interest on these non-accruing loans had been accrued, such income would have approximated $23,312 and $10,500 during the twelve months ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Loans modified as TDRs are considered impaired and are individually evaluated for the amount of impairment in the ALL. The following table presents, by segments of loans, information related to loans modified as TDRs during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||
31-Dec-13 | December 31, 2012 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS | Number of | Pre-Modification | Post-Modification | Number of | Pre-Modification | Post-Modification | |||||||||||||||||||
Loans | Outstanding | Outstanding | Loans | Outstanding | Outstanding | ||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||
Construction, land & land development (1) | 3 | $ | 196,257 | $ | 196,257 | — | $ | — | $ | — | |||||||||||||||
Residential first mortgages (2) | 1 | 206,505 | 204,366 | 2 | 987,861 | 981,297 | |||||||||||||||||||
Residential revolving and junior mortgages (3) | — | — | — | 2 | 107,943 | 107,434 | |||||||||||||||||||
Commercial mortgages (Owner occupied) (4) | 2 | 262,834 | 262,834 | 2 | 652,041 | 652,041 | |||||||||||||||||||
Consumer (2) | 1 | 7,953 | 7,457 | 1 | 114,210 | 73,978 | |||||||||||||||||||
-1 | Modifications were an extention of the loan terms. | ||||||||||||||||||||||||
-2 | Modifications were capitalization of the interest for 2013 and extentions of loan terms for 2012. | ||||||||||||||||||||||||
-3 | Modifications were capitalization of the interest and extension of loan terms for 2012. | ||||||||||||||||||||||||
-4 | Modifications were an extension of loan terms for 2013 and extension of loan terms and capitalization of the interest for 2012. | ||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||
Loans | Investment | Loans | Investment | ||||||||||||||||||||||
Residential revolving and junior mortgages (1) | 1 | $ | 105,797 | 1 | $ | 47,749 | |||||||||||||||||||
Commercial mortgages (Owner occupied)(2) | — | — | 1 | 172,926 | |||||||||||||||||||||
-1 | Modifications were a capitalization of the interest for the 2013 default and extention of the loan terms for the 2012 default. | ||||||||||||||||||||||||
-2 | Modification was an extention of the loan terms. | ||||||||||||||||||||||||
Of the TDRs restructured in 2013 which did not subsequently default, all are performing. The one loan that defaulted was charged-off. Of the TDRs restructured in 2012, two subsequently defaulted. Of those two that defaulted, one is now performing and one remains in default. There were 14 TDRs with an aggregate balance of $2.5 million at December 31, 2013 and eight TDRs with an aggregate balance of $3.3 million at December 31, 2012. |
Other_Real_Estate_Owned_Net
Other Real Estate Owned, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Real Estate Owned, Net | ' | ||||||||
Note 7. | Other Real Estate Owned, Net | ||||||||
Other real estate owned (“OREO”) is presented net of a valuation allowance for losses. An analysis of the valuation allowance on OREO is shown below. | |||||||||
Years ended | |||||||||
2013 | 2012 | ||||||||
Balance, beginning of year | $ | 561,758 | $ | 150,192 | |||||
Provision for losses | 300,341 | 505,766 | |||||||
Charge-offs | (324,150 | ) | (94,200 | ) | |||||
Balance, end of period | $ | 537,949 | $ | 561,758 | |||||
Expenses applicable to OREO include the following: | |||||||||
Years ended | |||||||||
2013 | 2012 | ||||||||
Net loss on sales of real estate | $ | 263,116 | $ | 230,840 | |||||
Provision for losses | 300,341 | 505,766 | |||||||
Operating expenses, net of income | 124,164 | 186,161 | |||||||
Total expenses | $ | 687,621 | $ | 922,767 | |||||
Included in other assets are two properties, a former branch office and one residential property with a value of $983 thousand as of December 31, 2013. These properties are not owned as a result of foreclosures and are being marketed for sale. |
Premises_and_Equipment_net
Premises and Equipment, net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Premises and Equipment, net | ' | ||||||||
Note 8. | Premises and Equipment, net | ||||||||
Components of premises and equipment included in the balance sheets at December 31, 2013 and 2012 were as follows: | |||||||||
2013 | 2012 | ||||||||
Land and improvements | $ | 1,998,623 | $ | 2,085,769 | |||||
Buildings and improvements | 11,764,356 | 12,544,293 | |||||||
Furniture and equipment | 8,881,795 | 8,974,077 | |||||||
Total cost | $ | 22,644,774 | $ | 23,604,139 | |||||
Less accumulated depreciation | (12,024,232 | ) | (11,992,451 | ) | |||||
Premises and equipment, net | $ | 10,620,542 | $ | 11,611,688 | |||||
Depreciation expense for the years ended December 31, 2013 and 2012 totaled $754,480 and $769,476, respectively. |
Deposits
Deposits | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Deposits | ' | ||||
Note 9. | Deposits | ||||
The aggregate amount of time deposits in denominations of $100,000 or more at December 31, 2013 and 2012 was $44,019,722 and $47,952,934, respectively. | |||||
At December 31, 2013, the scheduled maturities of time deposits are as follows: | |||||
2014 | $ | 34,619,389 | |||
2015 | 25,338,705 | ||||
2016 | 26,984,069 | ||||
2017 | 4,646,530 | ||||
2018 | 4,884,253 | ||||
Thereafter | 12,673 | ||||
$ | 96,485,619 | ||||
At December 31, 2013 and 2012, overdraft demand deposits reclassified to loans totaled $90,870 and $85,418, respectively. | |||||
At December 31, 2013 and 2012, the Company had no brokered deposits. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||
Note 10. | Employee Benefit Plans | ||||||||||||||||
The Company has a non-contributory, cash balance pension plan for substantially all full-time employees over 21 years of age and that were vested in the plan by December 31, 2012. Under this cash balance plan, until December 31, 2012, the account balance for each participant grew each year with annual pay credits based on age and years of service and monthly interest credits based on an amount established each year by the Company’s Board of Directors, subject to a minimum of 3% per the Internal Revenue Code. Effective December 31, 2012, this plan was frozen. Subsequently, annual pay credits will be discontinued, but each participant’s account balance will continue to grow based on monthly interest credits. The Company funds pension costs in accordance with the funding provisions of the Employee Retirement Income Security Act. | |||||||||||||||||
The Company sponsors a postretirement benefit plan covering current and future retirees who acquire age 55 and 10 years of service or age 65 and 5 years of service. The postretirement benefit plan provides coverage toward a retiree’s eligible medical and life insurance benefits expenses. | |||||||||||||||||
The following tables provide the reconciliation of changes in the benefit obligations and fair value of assets and a statement of funded status for the pension plan and postretirement plan of the Company. | |||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Change in benefit obligation | |||||||||||||||||
Benefit obligation, beginning of year | $ | 2,854,443 | $ | 3,948,661 | $ | 759,503 | $ | 676,618 | |||||||||
Service cost | — | 254,285 | 22,950 | 26,002 | |||||||||||||
Interest cost | 143,259 | 178,298 | 29,906 | 29,957 | |||||||||||||
Actuarial (gain) loss | 225,315 | 319,817 | (190,153 | ) | 42,235 | ||||||||||||
Benefit payments | (478,454 | ) | (2,017,995 | ) | (15,061 | ) | (15,309 | ) | |||||||||
Settlement (gain) loss | (7,278 | ) | 171,377 | — | — | ||||||||||||
Benefit obligation, end of year | $ | 2,737,285 | $ | 2,854,443 | $ | 607,145 | $ | 759,503 | |||||||||
Change in plan assets | |||||||||||||||||
Fair value of plan assets, beginning of year | $ | 2,844,808 | $ | 4,385,574 | $ | — | $ | — | |||||||||
Actual return on plan assets | 453,556 | 477,229 | — | — | |||||||||||||
Employer contributions | — | — | 15,061 | 15,309 | |||||||||||||
Benefits payments | (478,454 | ) | (2,017,995 | ) | (15,061 | ) | (15,309 | ) | |||||||||
Fair value of plan assets, end of year | $ | 2,819,910 | $ | 2,844,808 | $ | — | $ | — | |||||||||
Funded Status at the End of the Year | $ | 82,625 | $ | (9,635 | ) | $ | (607,145 | ) | $ | (759,503 | ) | ||||||
Amounts Recognized in Accumulated Other Comprehensive Loss (Income) | |||||||||||||||||
Net loss (gain) | $ | 625,226 | $ | 849,356 | $ | (47,038 | ) | $ | 147,611 | ||||||||
Prior service cost | — | — | — | — | |||||||||||||
Net obligation at transition | — | — | — | 2,913 | |||||||||||||
Amount recognized | $ | 625,226 | $ | 849,356 | $ | (47,038 | ) | $ | 150,524 | ||||||||
Components of Net Periodic Benefit Cost (Gain) | |||||||||||||||||
Service cost | $ | — | $ | 254,285 | $ | 22,950 | $ | 26,002 | |||||||||
Interest cost | 143,259 | 178,298 | 29,906 | 29,957 | |||||||||||||
Expected (return) on plan assets | (214,661 | ) | (321,864 | ) | — | — | |||||||||||
Amortization of prior service cost | — | (755,465 | ) | — | — | ||||||||||||
Amortization of net obligation at transition | — | — | 2,913 | 2,913 | |||||||||||||
Recognized net loss due to settlement | 113,527 | 534,220 | — | — | |||||||||||||
Recognized net actuarial loss | 89,745 | 71,440 | 4,496 | 2,942 | |||||||||||||
Net periodic benefit cost (gain) | $ | 131,870 | $ | (39,086 | ) | $ | 60,265 | $ | 61,814 | ||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss | |||||||||||||||||
Net (gain) loss | $ | (224,130 | ) | $ | (269,831 | ) | $ | (194,649 | ) | $ | 39,293 | ||||||
Amortization of prior service cost | — | 755,465 | — | — | |||||||||||||
Amortization of net obligation at transition | — | — | (2,913 | ) | (2,913 | ) | |||||||||||
Total recognized in other comprehensive (income)/loss | $ | (224,130 | ) | $ | 485,634 | $ | (197,562 | ) | $ | 36,380 | |||||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Income)/loss | $ | (92,260 | ) | $ | 446,548 | $ | (137,297 | ) | $ | 98,194 | |||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted-average assumptions as of December 31: | |||||||||||||||||
Discount rate used for Net Periodic Pension Cost | 4 | % | 4.5 | % | 4 | % | 4.5 | % | |||||||||
Discount Rate used for Disclosure | 5 | % | 4 | % | 5 | % | 4 | % | |||||||||
Expected return on plan assets | 8 | % | 8 | % | N/A | N/A | |||||||||||
Rate of compensation increase | N/A | 3 | % | N/A | N/A | ||||||||||||
Rate of compensation increase for net periodic pension cost | N/A | 3 | % | N/A | N/A | ||||||||||||
Expected future interest crediting rate | 3 | % | 3 | % | N/A | N/A | |||||||||||
The accumulated benefit obligation for the cash balance pension plan was $2,737,285 and $2,854,443 at December 31, 2013 and 2012, respectively. | |||||||||||||||||
Estimated future benefit payments for the pension and postretirement plans are as follows: | |||||||||||||||||
Pension | Postretirement | ||||||||||||||||
2014 | $ | 42,037 | $ | 20,136 | |||||||||||||
2015 | 292,372 | 22,044 | |||||||||||||||
2016 | 51,523 | 23,291 | |||||||||||||||
2017 | 209,097 | 25,343 | |||||||||||||||
2018 | 41,286 | 27,135 | |||||||||||||||
2019 and thereafter | 1,631,170 | 172,514 | |||||||||||||||
Long-term rate of return. The pension plan sponsor selects the assumption for the expected long-term rate of return on assets in consultation with their investment advisors and actuary. This rate is intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. Historical performance is reviewed, especially with respect to real rates of return (net of inflation), for the major asset classes held or anticipated to be held by the trust, and for the trust itself. Undue weight is not given to recent experience that may not continue over the measurement period, with higher significance placed on current forecasts of future long-term economic conditions. | |||||||||||||||||
Because assets are held in a qualified trust, anticipated returns are not reduced for taxes. Further, solely for this purpose, the plan is assumed to continue in force and not terminate during the period during which assets are invested. However, consideration is given to the potential impact of current and future investment policy, cash flow into and out of the trust, and expenses (both investment and non-investment) typically paid from plan assets (to the extent such expenses are not explicitly estimated within periodic cost). | |||||||||||||||||
The fair value of the Company’s pension plan assets by asset category are as follows: | |||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | 2,582 | $ | 2,582 | $ | — | $ | — | |||||||||
Mutual funds - fixed income | 1,070,272 | 1,070,272 | — | — | |||||||||||||
Mutual funds - equity | 1,747,056 | 1,747,056 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,819,910 | $ | 2,819,910 | $ | — | $ | — | |||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | (5,539 | ) | $ | (5,539 | ) | $ | — | $ | — | |||||||
Mutual funds - fixed income | 1,091,176 | 1,091,176 | — | — | |||||||||||||
Mutual funds - equity | 1,759,171 | 1,759,171 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,844,808 | $ | 2,844,808 | $ | — | $ | — | |||||||||
The trust fund is sufficiently diversified to maintain a reasonable level of risk without imprudently sacrificing return, with a targeted asset allocation of 40% fixed income and 60% equities. The investment manager of the fund selects investment fund managers with demonstrated experience and expertise, and funds with demonstrated historical performance, for the implementation of the plan’s investment strategy. The investment manager will consider both actively and passively managed investment strategies and will allocate funds across the asset classes to develop an efficient investment structure. | |||||||||||||||||
It is the responsibility of the trustee to administer the investments of the trust within reasonable costs, being careful to avoid sacrificing quality. These costs include, but are not limited to, management and custodial fees, consulting fees, transaction costs and other administrative costs chargeable to the trust. | |||||||||||||||||
The Company expects to make no contributions to its pension plan for the 2014 plan year. | |||||||||||||||||
Postretirement benefits plan. For measurement purposes, the assumed annual rate of increase in per capita health care costs of covered benefits is 8% in 2014 and 2015, 6% in 2016 and 2017, and 5% in 2018 and thereafter. If assumed health care cost trend rates were increased by one percentage point each year, the accumulated postretirement benefit obligation at December 31, 2013, would be increased by $771 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year ended December 31, 2013, would be increased by $101. If assumed health care cost trend rates were decreased by one percentage point each year, the accumulated postretirement benefit obligation at December 31, 2013, would be decreased by $723 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year ended December 31, 2013, would be decreased by $95. | |||||||||||||||||
The Company expects to contribute $20,136 to its postretirement plan in 2014. In addition, as of December 31, 2013 and 2012, the Company paid approximately $15,061 and $15,309, respectively, for employees who retired. | |||||||||||||||||
401(k) retirement plan. The Company has a 401(k) retirement plan covering substantially all employees who have completed six months of service. Employees may contribute up to 15% of their salaries. Effective January 1, 2010, the Company matches 100% of the first 2% and 25% of the next 4% of an employee’s contributions. Additional contributions can be made at the discretion of the Company’s Board of Directors. Contributions to this plan amounted to $97,329 and $86,821 for the years ended December 31, 2013 and 2012, respectively. |
Financial_Instruments_With_Off
Financial Instruments With Off-Balance Sheet Risk | 12 Months Ended | |
Dec. 31, 2013 | ||
Financial Instruments With Off-Balance Sheet Risk | ' | |
Note 11. | Financial Instruments With Off-Balance Sheet Risk | |
In the normal course of business, the Company offers various financial products to its customers to meet their credit and liquidity needs. These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit written is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained, if deemed necessary by the Company, is based on credit evaluation of the customer. | ||
Subject to its normal credit standards and risk monitoring procedures, the Company makes contractual commitments to extend credit. 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 completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. At December 31, 2013 and 2012, the Company had outstanding loan commitments approximating $37.3 million and $30.5 million, respectively. | ||
Conditional commitments are issued by the Company in the form of performance stand-by letters of credit, which guarantee the performance of a customer to a third party. At December 31, 2013 and 2012, commitments under outstanding performance stand-by letters of credit aggregated $329 thousand and $359 thousand, respectively. The credit risk of issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. |
Restrictions_on_Cash_and_Due_F
Restrictions on Cash and Due From Banks | 12 Months Ended | |
Dec. 31, 2013 | ||
Restrictions on Cash and Due From Banks | ' | |
Note 12. | Restrictions on Cash and Due From Banks | |
The Federal Reserve requires banks to maintain cash reserves against certain categories of deposit liabilities. At both December 31, 2013 and 2012, the aggregate amount of daily average required reserves for the final weekly reporting period was $25 thousand. |
Other_Borrowings
Other Borrowings | 12 Months Ended | |
Dec. 31, 2013 | ||
Other Borrowings | ' | |
Note 13. | Other Borrowings | |
Securities sold under agreements to repurchase are secured transactions with customers and generally mature the day following the day sold. During 2013 and 2012, the average rates of the repurchase agreements were 0.19% and 0.26%, respectively. Unused lines of credit with nonaffiliated banks, excluding FHLB, totaled $20.3 million as of both December 31, 2013 and 2012. Draws upon these lines have time limits varying from two to four consecutive weeks. The banks providing these lines can change the interest rates on these lines daily. The lines renew annually and are tested periodically each year. |
FHLB
FHLB | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FHLB | ' | ||||||||||||||||
Note 14. | FHLB | ||||||||||||||||
On December 31, 2013, the Bank had FHLB debt consisting of two advances (see table below). The $10 million advance was restructured during the second quarter of 2013 to extend the maturity and reduce the interest rate from 4.23% to a three month LIBOR-based floating rate advance. | |||||||||||||||||
There were no short-term advances from FHLB outstanding on December 31, 2013 or 2012. The Company has outstanding letters of credit with FHLB totaling $2.0 million as of December 31, 2013 which are used to secure public funds on deposit with the Bank. | |||||||||||||||||
Advances on the FHLB lines are secured by a blanket lien on qualified 1 to 4 family residential real estate loans with a lendable collateral value of $54.7 million. Immediate available credit, as of December 31, 2013, was $37.7 million. With additional collateral, the total line of credit is worth $66.8 million, with $49.8 million available. | |||||||||||||||||
Information on the two advances is shown in the following table. | |||||||||||||||||
Description | Balance | Originated | Current | Maturity | |||||||||||||
Interest Rate | Date | ||||||||||||||||
Adjustable Rate Hybrid | $ | 10,000,000 | 4/12/13 | 2.38 | % | 4/13/20 | |||||||||||
Fixed Rate Hybrid | 5,000,000 | 5/20/11 | 2.69 | % | 5/20/14 | ||||||||||||
$ | 15,000,000 | ||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes | ' | ||||||||
Note 15. | Income Taxes | ||||||||
The Company files income tax returns in the U.S. federal jurisdiction and the Commonwealth of Virginia. The Commonwealth of Virginia does not charge an income tax for regulated banking institutions. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2010. | |||||||||
The expense (benefit) for income taxes consisted of the following. | |||||||||
Year ended December 31, | 2013 | 2012 | |||||||
Current | $ | 139,822 | $ | 253,421 | |||||
Deferred | 259,307 | (42,949 | ) | ||||||
$ | 399,129 | $ | 210,472 | ||||||
The reasons for the differences between the statutory Federal income tax rates and the effective tax rates are summarized as follows: | |||||||||
2013 | 2012 | ||||||||
Statutory rate | 34 | % | 34 | % | |||||
Increase (decrease) resulting from: | |||||||||
Tax exempt interest | -8.5 | % | -12.8 | % | |||||
Bank owned life insurance | -2.7 | % | — | ||||||
Other, net | 1.8 | % | 2 | % | |||||
24.6 | % | 23.2 | % | ||||||
The components of the net deferred tax assets and liabilities included in other liabilities are as follows: | |||||||||
December 31, | 2013 | 2012 | |||||||
Deferred tax assets | |||||||||
Allowance for loan losses | $ | 631,641 | $ | 747,792 | |||||
Interest on non-accrual loans | 40,495 | 120,356 | |||||||
Mortgage servicing rights | 196,909 | — | |||||||
Other real estate | 476,496 | 236,610 | |||||||
Pension plan | — | 3,276 | |||||||
Postretirement benefits | 206,429 | 258,231 | |||||||
Deferred compensation | 113,712 | 84,879 | |||||||
Stock-based compensation | 18,301 | 10,215 | |||||||
Alternative minimum tax credit | 96,428 | 174,997 | |||||||
Unrealized losses on available-for-sale securities | 407,964 | — | |||||||
Other | 2,913 | 272,942 | |||||||
Total deferred tax assets | 2,191,288 | 1,909,298 | |||||||
Deferred tax liabilities | |||||||||
Unrealized gains on available-for-sale securities | — | (143,828 | ) | ||||||
Pension plan | (27,120 | ) | — | ||||||
Depreciation | (276,066 | ) | (305,010 | ) | |||||
Amortization of goodwill | (896,451 | ) | (860,950 | ) | |||||
Net deferred loan fees and costs | (171,882 | ) | (238,732 | ) | |||||
Other | (63,925 | ) | (63,591 | ) | |||||
Total deferred tax (liabilities) | (1,435,444 | ) | (1,612,111 | ) | |||||
Net deferred tax assets | $ | 755,844 | $ | 297,187 | |||||
Regulatory_Requirements_and_Re
Regulatory Requirements and Restrictions | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Regulatory Requirements and Restrictions | ' | ||||||||||||||||||||||||
Note 16. | Regulatory Requirements and Restrictions | ||||||||||||||||||||||||
One source of funds available to the Company is the payment of dividends by the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of the Bank’s regulators. | |||||||||||||||||||||||||
The Company (on a consolidated basis) and Bank are subject to various regulatory capital requirements administered by the Commonwealth of Virginia and Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes that as of December 31, 2013 and 2012 the Company and the Bank meet all capital adequacy requirements to which they are subject. | |||||||||||||||||||||||||
As of December 31, 2013, the most recent notification from the Federal Reserve categorized the Bank as well capitalized under the framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. | |||||||||||||||||||||||||
The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2013 and 2012, are presented in the following tables: | |||||||||||||||||||||||||
Actual | Minimum | Minimum | |||||||||||||||||||||||
Capital Requirement | To Be Well | ||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Total Risk Based Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 39,322 | 16.38 | % | $ | 19,211 | 8 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | $ | 33,419 | 14.01 | % | $ | 19,089 | 8 | % | $ | 23,861 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 36,397 | 15.16 | % | $ | 9,605 | 4 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | $ | 30,494 | 12.78 | % | $ | 9,545 | 4 | % | $ | 14,317 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||
Consolidated | $ | 36,397 | 10.93 | % | $ | 13,319 | 4 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | $ | 30,494 | 9.2 | % | $ | 13,259 | 4 | % | $ | 16,573 | 5 | % | |||||||||||||
Actual | Minimum | Minimum | |||||||||||||||||||||||
Capital Requirement | To Be Well | ||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Total Risk Based Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 37,787 | 17.09 | % | $ | 17,689 | 8 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | $ | 31,514 | 14.08 | % | $ | 17,900 | 8 | % | $ | 22,374 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 35,019 | 15.84 | % | $ | 8,845 | 4 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | $ | 28,714 | 12.83 | % | $ | 8,950 | 4 | % | $ | 13,425 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||
Consolidated | $ | 35,019 | 10.93 | % | $ | 12,812 | 4 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | $ | 28,714 | 9 | % | $ | 12,763 | 4 | % | $ | 15,954 | 5 | % |
Employee_Stock_Ownership_Plan
Employee Stock Ownership Plan | 12 Months Ended | |
Dec. 31, 2013 | ||
Employee Stock Ownership Plan | ' | |
Note 17. | Employee Stock Ownership Plan | |
The Company has a noncontributory Employee Stock Ownership Plan (“ESOP”) for the benefit of all eligible employees who have completed twelve months of service and who have attained the age of 21 years. Contributions to the plan are at the discretion of the Company’s Board of Directors. Contributions are allocated in the ratio to which the covered compensation of each participant bears to the aggregate covered compensation of all participants for the plan year. Allocations are limited to 25% of eligible participant compensation. Participant accounts are 30% vested after two years, 40% vested after three years with vesting increasing 20% each year thereafter, until 100% vested. The plan had 141,586 allocated shares as of December 31, 2013. No contributions to the plan were made for 2013 and 2012, respectively. There were no dividends on the Company’s stock held by the ESOP in 2013 and 2012. Shares held by the ESOP are considered outstanding for purposes of computing earnings per share. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock-Based Compensation Plans | ' | ||||||||||||||||
Note 18. | Stock-Based Compensation Plans | ||||||||||||||||
Prior to 2012, the Company had four stock-based compensation plans, two of which were expired. All outstanding options from these prior plans remain exercisable. No additional grants will be made from any of these prior plans. On June 28, 2013, the Company registered a new stock-based compensation plan. There are 385,000 shares available for grant under this plan at December 31, 2013. Unissued shares are generally used for exercises of stock options and restricted stock grants. | |||||||||||||||||
Stock-based compensation expense related to stock awards during 2013 and 2012 was $122,429 and $2,924, respectively. There was no unrecognized compensation expense related to stock options as of December 31, 2013. A total of 89,500 options were granted and vested during 2013. Compensation expense for stock options is the estimated fair value of options granted using the Black-Scholes Model amortized on a straight-line basis over the vesting period of the award. The expected volatility is based on historical volatility of the Company’s stock price. The risk-free interest rates for the periods within the contractual life of the awards are based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life is based on historical exercise experience. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. The fair value of options granted under both the former 2003 Incentive Stock Option Plan and the former 2008 Non-Employee Directors Stock Option Plan during 2013 was $1.08. The variables used in these calculations include the historical dividend yield of 3.6%, expected life of the options of five years, expected stock price volatility of 33.8%, and a risk-free interest rate of 0.86%, which is assumed to be the rate on 5-year U.S. Treasury bonds. No stock options were granted in 2012. | |||||||||||||||||
Stock option plan activity for 2013 is summarized below: | |||||||||||||||||
Shares | Weighted Average | Weighted Average | Aggregate | ||||||||||||||
Exercise | Remaining | Intrinsic | |||||||||||||||
Price | Contractual | Value (1) | |||||||||||||||
Life (in years) | |||||||||||||||||
Options outstanding, January 1, 2012 | 197,423 | $ | 10 | 5.8 | |||||||||||||
Granted | — | — | |||||||||||||||
Forfeited | (59,584 | ) | 9.45 | ||||||||||||||
Exercised | — | — | |||||||||||||||
Expired | (17,222 | ) | 15.34 | ||||||||||||||
Options outstanding, December 31, 2012 | 120,617 | 9.51 | 5.4 | $ | 6,750 | ||||||||||||
Granted | 89,500 | 5.25 | |||||||||||||||
Forfeited | (11,519 | ) | 9.42 | ||||||||||||||
Exercised | — | — | |||||||||||||||
Expired | (7,596 | ) | 13.8 | ||||||||||||||
Options outstanding, December 31, 2013 | 191,002 | $ | 7.35 | 6.8 | $ | 14,146 | |||||||||||
Options exercisable, December 31, 2013 | 191,002 | $ | 7.35 | 6.8 | $ | 14,146 | |||||||||||
-1 | The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2013. This amount changes based on changes in the market value of the Company’s common stock. | ||||||||||||||||
As of February 21, 2013, a total of 7,000 shares of the Company’s common stock were awarded to the Chief Executive Officer, the Executive Vice President and the Chief Financial Officer. These shares vested immediately and $36,750 in compensation expense was recognized on that date. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Note 19. | Earnings Per Share | ||||||||||||||||
The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of dilutive potential common stock. | |||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||
Average | Per share | Average | Per share | ||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||
Basic earnings per share | 4,816,859 | $ | 0.25 | 2,610,856 | $ | 0.27 | |||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | 2,484 | 1,931 | |||||||||||||||
Diluted earnings per share | 4,819,343 | $ | 0.25 | 2,612,787 | $ | 0.27 | |||||||||||
For the years ended 2013 and 2012, options on 167,762 and 110,117 shares, respectively, were not included in computing diluted earnings per share because their effects were anti-dilutive. |
Related_Parties
Related Parties | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Related Parties | ' | ||||
Note 20. | Related Parties | ||||
The Company has entered into transactions with its directors and principal officers of the Company, their immediate families and affiliated companies in which they are the principal stockholders (related parties). The aggregate amount of loans to such related parties was $2,606,036 and $2,236,794 at December 31, 2013 and 2012, respectively. All such loans, in the opinion of management, were made in the normal course of business on the same terms, including interest rate, collectibility and collateral, as those prevailing at the time for comparable transactions. | |||||
Balance, January 1, 2013 | $ | 2,236,794 | |||
New loans and extensions to existing loans | 1,021,204 | ||||
Repayments and other reductions | (651,962 | ) | |||
Balance, December 31, 2013 | $ | 2,606,036 | |||
Unfunded commitments to extend credit to directors and their related interests were $2,032,041 and $1,550,188 at December 31, 2013 and 2012, respectively. | |||||
The Company also maintains deposit accounts with some of its executive officers, directors and their affiliated entities. The aggregate amount of these deposit accounts at December 31, 2013 and 2012 amounted to $427,541 and $666,510, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 21. | Fair Value Measurements | ||||||||||||||||
The Company uses fair value to record certain assets and liabilities and to determine fair value disclosures. Authoritative accounting guidance clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. | |||||||||||||||||
Authoritative accounting guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows: | |||||||||||||||||
Level 1 – | Valuation is based on quoted prices in active markets for identical assets and liabilities. | ||||||||||||||||
Level 2 – | Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. | ||||||||||||||||
Level 3 – | Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. | ||||||||||||||||
The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: | |||||||||||||||||
Securities available-for-sale: Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. | |||||||||||||||||
Defined benefit plan assets: Defined benefit plan assets are recorded at fair value on an annual basis at year end (refer to Note 10) in the same manner as investment securities. | |||||||||||||||||
MSRs: MSRs are recorded at fair value on a recurring basis, with changes in fair value recorded in the result of operations. A valuation model, which utilizes a discounted cash flow analysis using interest rates and prepayment assumptions currently quoted for comparable instruments and a discount rate, is used to determine fair value. MSRs are classified as Level 3. | |||||||||||||||||
The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and December 31, 2012: | |||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Securities available for sale: | |||||||||||||||||
U. S. Government agencies | $ | 9,308,069 | $ | — | $ | 9,308,069 | $ | — | |||||||||
State and municipal obligations | 26,556,888 | — | 26,556,888 | — | |||||||||||||
Certificates of deposit | 1,745,039 | — | 1,745,039 | — | |||||||||||||
Auction rate security | 912,000 | — | — | 912,000 | |||||||||||||
Total securities available for sale: | $ | 38,521,996 | $ | — | $ | 37,609,996 | $ | 912,000 | |||||||||
Mortgage servicing rights | $ | 579,145 | $ | — | $ | — | $ | 579,145 | |||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | 2,582 | $ | 2,582 | $ | — | $ | — | |||||||||
Mutual funds - fixed income | 1,070,272 | 1,070,272 | — | — | |||||||||||||
Mutual funds - equity | 1,747,056 | 1,747,056 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,819,910 | $ | 2,819,910 | $ | — | $ | — | |||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Securities available for sale: | |||||||||||||||||
U. S. Government agencies | $ | 9,463,815 | $ | — | $ | 9,463,815 | $ | — | |||||||||
State and municipal obligations | 23,849,528 | — | 23,849,528 | — | |||||||||||||
Certificates of deposit | 1,987,177 | — | 1,987,177 | — | |||||||||||||
Auction rate security | 1,400,000 | — | — | 1,400,000 | |||||||||||||
Total securities available for sale: | $ | 36,700,520 | $ | — | $ | 35,300,520 | $ | 1,400,000 | |||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | (5,539 | ) | $ | (5,539 | ) | $ | — | $ | — | |||||||
Mutual funds - fixed income | 1,091,176 | 1,091,176 | — | — | |||||||||||||
Mutual funds - equity | 1,759,171 | 1,759,171 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,844,808 | $ | 2,844,808 | $ | — | $ | — | |||||||||
The reconciliation of items using Level 3 inputs is as follows: | |||||||||||||||||
Auction Rate | MSRs | ||||||||||||||||
Security | |||||||||||||||||
Balance, January 1, 2013 | $ | 1,400,000 | $ | — | |||||||||||||
Impairments | (288,000 | ) | — | ||||||||||||||
Fair value adjustments | — | 579,145 | |||||||||||||||
Redemptions and sales | (200,000 | ) | — | ||||||||||||||
Balance, December 31, 2013 | $ | 912,000 | $ | 579,145 | |||||||||||||
Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. | |||||||||||||||||
The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: | |||||||||||||||||
Impaired Loans: Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. Any given loan may have multiple types of collateral. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the Allowance for Loan Losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Income. | |||||||||||||||||
Other Real Estate Owned: OREO is measured at fair value less estimated costs to sell, based on an appraisal conducted by an independent, licensed appraiser outside of the Company. If the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. OREO is measured at fair value on a nonrecurring basis. The initial fair value of OREO is based on an appraisal done at the time of foreclosure. Subsequent fair value adjustments are recorded in the period incurred and included in other noninterest income on the Consolidated Statements of Income. | |||||||||||||||||
The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at the end of the respective period. | |||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Description | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2013 | |||||||||||||||||
Impaired loans, net | $ | 2,077,780 | $ | — | $ | — | $ | 2,077,780 | |||||||||
Other real estate owned, net | 3,896,987 | — | — | 3,896,987 | |||||||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||
Description | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2012 | |||||||||||||||||
Impaired loans, net | $ | 3,308,074 | $ | — | $ | — | $ | 3,308,074 | |||||||||
Other real estate owned, net | 3,151,346 | — | — | 3,151,346 | |||||||||||||
The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2013: | |||||||||||||||||
Description | Balance | Valuation | Unobservable | Range | |||||||||||||
Technique | Input | (Weighted | |||||||||||||||
Average) | |||||||||||||||||
Impaired loans, net | $ | 2,077,780 | Discounted appraised value | Selling Cost | 10% - 20% (10% | ) | |||||||||||
Lack of Marketability | 25% - 100% (54% | ) | |||||||||||||||
Other real estate owned, net | 3,896,987 | Discounted appraised value | Selling Cost | 3% - 13% (6% | ) | ||||||||||||
Lack of Marketability | 7% - 30% (15% | ) | |||||||||||||||
The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2012: | |||||||||||||||||
Description | Balance | Valuation | Unobservable | Range | |||||||||||||
Technique | Input | (Weighted | |||||||||||||||
Average) | |||||||||||||||||
Impaired loans, net | $ | 3,308,074 | Discounted appraised value | Selling Cost | 0% -20% (11% | ) | |||||||||||
Lack of Marketability | 10% - 100% (27% | ) | |||||||||||||||
Other real estate owned, net | 3,151,346 | Discounted appraised value | Selling Cost | 6%-13% (6% | ) | ||||||||||||
Lack of Marketability | 10% - 20% (16% | ) | |||||||||||||||
The estimated fair values of financial instruments are shown in the following table. The carrying amounts in the table are included in the balance sheet under the applicable captions. | |||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Description | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2013 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 6,788,689 | $ | 6,788,689 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 8,900,190 | 8,900,190 | — | — | |||||||||||||
Federal funds sold | 120,029 | 120,029 | — | — | |||||||||||||
Securities available-for-sale | 38,521,996 | — | 37,609,996 | 912,000 | |||||||||||||
Restricted securities | 1,638,350 | — | — | 1,638,350 | |||||||||||||
Loans, net | 247,911,646 | — | — | 253,139,150 | |||||||||||||
Loans held for sale | 195,850 | — | — | 195,850 | |||||||||||||
Accrued interest receivable | 1,123,865 | — | 1,123,865 | — | |||||||||||||
Mortgage servicing rights | 579,145 | — | — | 579,145 | |||||||||||||
Financial Liabilities: | |||||||||||||||||
Non-interest-bearing liabilities | $ | 57,804,547 | $ | 57,804,547 | $ | — | $ | — | |||||||||
Savings and other interest-bearing deposits | 114,056,155 | — | 114,056,155 | — | |||||||||||||
Time deposits | 96,485,619 | — | — | 98,049,000 | |||||||||||||
Securities sold under repurchase agreements | 9,118,382 | — | 9,118,382 | — | |||||||||||||
FHLB advances | 15,000,000 | — | 15,923,202 | — | |||||||||||||
Accrued interest payable | 166,865 | — | 166,865 | — | |||||||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||
Description | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2012 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 4,757,889 | $ | 4,757,889 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 35,166,448 | 35,166,448 | — | — | |||||||||||||
Federal funds sold | 48,009 | 48,009 | — | — | |||||||||||||
Securities available-for-sale | 36,700,520 | — | 35,300,520 | 1,400,000 | |||||||||||||
Restricted securities | 1,584,700 | — | — | 1,584,700 | |||||||||||||
Loans, net | 235,746,026 | — | — | 244,310,321 | |||||||||||||
Loans held for sale | 398,500 | — | — | 398,500 | |||||||||||||
Accrued interest receivable | 1,070,763 | — | 1,070,763 | — | |||||||||||||
Financial Liabilities: | |||||||||||||||||
Non-interest-bearing liabilities | $ | 50,467,907 | $ | 50,467,907 | $ | — | $ | — | |||||||||
Savings and other interest-bearing deposits | 117,954,879 | — | 117,954,879 | — | |||||||||||||
Time deposits | 106,751,785 | — | — | 109,449,974 | |||||||||||||
Securities sold under repurchase agreements | 6,459,839 | — | 6,459,839 | — | |||||||||||||
FHLB advances | 15,000,000 | — | 16,483,342 | — | |||||||||||||
Accrued interest payable | 156,812 | — | 156,812 | — | |||||||||||||
The carrying amounts of cash and due from banks, interest-bearing deposits, federal funds sold or purchased, accrued interest and non-interest-bearing deposits, are payable on demand, or are of such short duration that carrying value approximates market value. | |||||||||||||||||
Securities available-for-sale are carried at the fair values measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Therefore carrying value equals market value. The carrying value of restricted securities approximates fair value based on the redemption provisions of the issuer. | |||||||||||||||||
The fair value of performing loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar remaining maturities. This calculation ignores loan fees and certain factors affecting the interest rates charged on various loans such as the borrower’s creditworthiness and compensating balances and dissimilar types of real estate held as collateral. The fair value of impaired loans is measured as described within the Impaired Loans section of this note. The fair value of loans does not consider the lack of liquidity and uncertainty in the market that would affect the valuation. Loans held for sale are mortgages which are being sold to a third party less than a week following their origination. These loans are carried at lower of cost or market. The cost and market value are the same due to the short holding period. | |||||||||||||||||
Time deposits are presented at estimated fair value using interest rates offered for deposits of similar remaining maturities. | |||||||||||||||||
Securities sold under agreements to repurchase are secured transactions with customers and generally mature the day following the day sold. Their fair value approximates their book value. | |||||||||||||||||
The fair value of the FHLB advances is estimated by discounting the future cash flows using the current interest rate offered for similar advances. | |||||||||||||||||
The fair value of commitments to extend credit is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present credit worthiness of the counter parties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of standby letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counter parties at the reporting date. At December 31, 2013 and 2012, the fair value of loan commitments and standby letters of credit was immaterial and therefore, they are not included in the table above. | |||||||||||||||||
The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair value of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
Condensed_Financial_Informatio
Condensed Financial Information of Parent Company | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Condensed Financial Information of Parent Company | ' | ||||||||
Note 22. | Condensed Financial Information of Parent Company | ||||||||
Financial information pertaining only to Bay Banks of Virginia, Inc. is as follows: | |||||||||
Condensed Balance Sheets | 2013 | 2012 | |||||||
Assets | |||||||||
Cash and due from banks | $ | 3,883,856 | $ | 9,053,069 | |||||
Investments in subsidiaries | 32,456,157 | 31,324,616 | |||||||
Premises and equipment, net | 576 | 1,168 | |||||||
Other assets | 1,266,222 | 274,226 | |||||||
Total assets | $ | 37,606,811 | $ | 40,653,079 | |||||
Liabilities and Shareholders’ Equity | |||||||||
Liabilities | |||||||||
Deferred directors’ compensation | $ | 336,630 | $ | 249,645 | |||||
Other liabilities | 133,682 | 3,818,463 | |||||||
Total liabilities | 470,312 | 4,068,108 | |||||||
Total shareholders’ equity | 37,136,499 | 36,584,971 | |||||||
Total liabilities and shareholders’ equity | $ | 37,606,811 | $ | 40,653,079 | |||||
Condensed Income Statements | 2013 | 2012 | |||||||
Non-interest income | $ | 599,677 | $ | 730,940 | |||||
Non-interest expense | 828,678 | 634,593 | |||||||
(Loss) income before income taxes and equity in undistributed earnings of subsidiaries | (229,001 | ) | 96,347 | ||||||
Income tax (benefit) expense | (26,560 | ) | 22,145 | ||||||
(Loss) income before equity in undistributed earnings of subsidiaries | (202,441 | ) | 74,202 | ||||||
Equity in undistributed earnings of subsidiaries | 1,424,347 | 623,560 | |||||||
Net income | $ | 1,221,906 | $ | 697,762 | |||||
Condensed Statements of Cash Flows | 2013 | 2012 | |||||||
Cash Flows from Operating Activities: | |||||||||
Net income | $ | 1,221,906 | $ | 697,762 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 592 | 592 | |||||||
Stock-based compensation | 122,429 | 2,924 | |||||||
Equity in undistributed earnings of subsidiaries | (1,424,347 | ) | (623,560 | ) | |||||
(Increase) decrease in other assets | (185,804 | ) | 42,737 | ||||||
Net change in deferred directors’ compensation | 86,985 | 38,672 | |||||||
(Decrease) increase in other liabilities | (3,719,974 | ) | 3,650,247 | ||||||
Net cash (used in) provided by operating activities | (3,898,213 | ) | 3,809,374 | ||||||
Cash Flows from Investing Activities: | |||||||||
Purchase of other assets | (771,000 | ) | — | ||||||
Investment in subsidiaries | (500,000 | ) | (3,515,000 | ) | |||||
Net cash used in investing activities | (1,271,000 | ) | (3,515,000 | ) | |||||
Cash Flows from Financing Activities: | |||||||||
Proceeds from issuance of common stock | — | 8,695,566 | |||||||
Net cash provided by financing activities | — | 8,695,566 | |||||||
Net (decrease) increase in cash and due from banks | (5,169,213 | ) | 8,989,941 | ||||||
Cash and due from banks at January 1 | 9,053,069 | 63,129 | |||||||
Cash and due from banks at December 31 | $ | 3,883,856 | $ | 9,053,069 | |||||
Common_Stock_Offering
Common Stock Offering | 12 Months Ended | |
Dec. 31, 2013 | ||
Common Stock Offering | ' | |
Note 23. | Common Stock Offering | |
On December 31, 2012, the Company sold a total of 2,200,000 shares of its common stock at a purchase price of $4.25 per share to certain accredited investors in a private placement exempt from registration under the Securities Act of 1933 pursuant to Section 4(a)(2) thereof and Rule 506 of Regulation D promulgated thereunder. The Company received net proceeds of $8,695,566, after expenses of $654,434. The Company used these proceeds to increase its equity capital and for general corporate purposes, which may include, among other things, support for organic and opportunistic acquisition-based growth. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
Note 24. | Accumulated Other Comprehensive Income | ||||||||||||
The balances in accumulated other comprehensive income( loss) are shown in the following table (dollars in thousands): | |||||||||||||
Net Unrealized | Pension and | Accumulated Other | |||||||||||
Gains (Losses) | Post-retirement | Comprehensive | |||||||||||
on Securities | Benefit Plans | Income (Loss) | |||||||||||
Balance January 1, 2012 | $ | 761 | $ | (316 | ) | $ | 445 | ||||||
Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $78 | 151 | — | 151 | ||||||||||
Reclassification for previously unrealized net (gains) recognized in income, net of tax benefit of $325 | (632 | ) | — | (632 | ) | ||||||||
Net periodic pension cost, net of tax benefit of $257 | — | (498 | ) | (498 | ) | ||||||||
Net gain (loss) on pension and postretirement plans, net of tax expense of $78 | — | 152 | 152 | ||||||||||
Net postretirement plan transition cost, net of tax expense of $1 | — | 1 | 1 | ||||||||||
Balance December 31, 2012 | $ | 280 | $ | (661 | ) | $ | (381 | ) | |||||
Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $550 | (1,068 | ) | — | (1,068 | ) | ||||||||
Reclassification for previously unrealized net (gains) recognized in income, net of tax benefit of $1 | (3 | ) | — | (3 | ) | ||||||||
Net gain (loss) on pension and postretirement plans, net of tax expense of $143 | — | 276 | 276 | ||||||||||
Net postretirement plan transition cost, net of tax expense of $1 | — | 2 | 2 | ||||||||||
Balance at December 31, 2013 | $ | (791 | ) | $ | (383 | ) | $ | (1,174 | ) | ||||
Reclassification for previously unrealized gains and impairments on securities and pension and postemployment related costs are reported in the consolidated statements of income as follows: | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Reclassification for the Year Ended | |||||||||||||
31-Dec-13 | |||||||||||||
(In thousands) | Holding gains (losses) | Pension and | |||||||||||
on securities | postemployment costs | ||||||||||||
Net gains on sale of securities available-for-securities | $ | 284 | $ | — | |||||||||
Loss on security with other-than-temporary impairment | (288 | ) | — | ||||||||||
Salaries and employee benefits | — | 422 | |||||||||||
Tax (expense) benefit | 1 | (144 | ) | ||||||||||
Impact on net income | $ | (3 | ) | $ | 278 | ||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Reclassification for the Year Ended | |||||||||||||
31-Dec-12 | |||||||||||||
(In thousands) | Holding gains (losses) | Pension and | |||||||||||
on securities | postemployment costs | ||||||||||||
Net gains on sale of securities available-for-securities | $ | (957 | ) | $ | — | ||||||||
Salaries and employee benefits | — | (523 | ) | ||||||||||
Tax (expense) benefit | 325 | 178 | |||||||||||
Impact on net income | $ | (632 | ) | $ | (345 | ) | |||||||
Subsequent_Event
Subsequent Event | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Event | ' | |
Note 25: | Subsequent Event | |
In the first quarter of 2014, the Company sold its $1.2 million face amount auction rate security (refer to Note 4) for 76% of its face value. The Company had previously recognized an other-than-temporary-impairment loss on this security of $120 thousand in the second quarter of 2013. With the sale of the security at 76% of its face value in the first quarter of 2014, the Company recognized an additional impairment loss of $168 thousand in 2013. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Use of estimates | ' |
Use of estimates | |
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions. The amounts recorded in the consolidated financial statements may be affected by those estimates and assumptions. Actual results may vary from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the measurement of fair value of foreclosed real estate, deferred taxes, impairment testing of goodwill, projected pension and post-retirement obligations and fair value measurements. | |
Cash and cash equivalents | ' |
Cash and cash equivalents | |
For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, all of which mature within ninety days. | |
Interest-bearing deposits in banks | ' |
Interest-bearing deposits in banks | |
Interest-bearing deposits in banks are carried at cost and include deposits with the Federal Reserve Bank of Richmond, which mature within one year. | |
Securities | ' |
Securities | |
Investments in debt and equity securities with readily determinable fair values are classified as either held to maturity, available-for-sale, or trading, based on management’s intent. Currently, all of the Company’s investment securities are classified as available-for- sale. Securities available-for-sale are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income. A gain or loss is recognized in earnings on the settlement date based on the amortized cost of the specific security sold. Purchase premiums and discounts are recognized in interest income via amortization or accretion, respectively, using the interest method over the terms of the securities. | |
Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if (i) there is evidence of credit related impairment; (ii) the Company intends to sell the security or (iii) it is more-likely-than-not that the Company will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more-likely-than-not that it will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security. If there is a credit loss, the loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income. For equity securities, impairment is considered to be other-than-temporary based on the Company’s ability and intent to hold the investment until a recovery of fair value. Other-than-temporary impairment of an equity security results in a write-down that must be included in net income. The Company regularly reviews each investment security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the Company’s best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity and the likelihood that it would be required to sell the security before recovery. | |
Securities sold under repurchase agreements | ' |
Securities sold under repurchase agreements | |
Securities sold under repurchase agreements, which are classified as secured borrowings, generally mature within one year from the transaction date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company is required to provide collateral based on the fair value of the underlying securities. | |
Loans | ' |
Loans | |
The Company grants mortgage loans on real estate; commercial and industrial loans; and consumer and other loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Company’s market areas. | |
Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, and charge-offs. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield via straight line amortization over the contractual term of the loan, adjusted for early pay-offs. | |
The accrual of interest is generally discontinued at the time a loan is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Payments received for loans no longer accruing interest are applied to the unpaid principal balance. Loans greater than 90 days past due may remain on accrual status if the credit is well secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are charged off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual and past due policies are materially the same for all types of loans. | |
All interest accrued but not collected for loans that are placed on non-accrual or charged off is reversed against interest income. Any interest received on these loans is accounted for on the cash basis or cost recovery method until qualifying for return to accrual. Generally, a loan is returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or it becomes well secured and in the process of collection. | |
Troubled debt restructuring ("TDR") | ' |
Troubled debt restructuring (“TDR”) | |
In some situations, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to a borrower that it would not otherwise consider. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, the related loan is classified as a troubled debt restructuring. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. Management measures all TDRs for impairment as noted below for impaired loans. | |
Allowance for loan losses ("ALL") | ' |
Allowance for loan losses (“ALL”) | |
The ALL reflects management’s judgment of probable loan losses inherent in the portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter. To determine the total ALL, the Company estimates the reserves needed for each segment of the portfolio, including loans analyzed individually and pools of loans analyzed on a segmented basis. Considerations include historical experience, the nature and volume of the loan portfolio, adverse situations that may affect a borrower’s ability to repay, estimated value of any underlying collateral, prevailing local and national economic conditions and internal policies and procedures including credit risk management and underwriting. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as additional information becomes available. | |
During the third quarter of 2012, management enhanced the ALL calculation methodology by changing the historical loss factor period from six quarters to the length of a business cycle. This increased the historical loss period to 16 quarters, and assumed the business cycle to have begun in the fourth quarter of 2008. As the length of that business cycle extended, so did the length of the historical loss factor period. During the third quarter of 2013, management determined that the business cycle had ended given noticeable national economic improvement and local real estate market stabilization and ceased this approach. The then current 19 quarters of historical losses will be used henceforth. This change in methodology produced an immaterial change in the ALL calculation. | |
Management employs a risk rating system to evaluate and consistently categorize loan portfolio credit risk. Loans assigned risk rating grades include all commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250 thousand with chronic delinquency, and troubled debt restructures. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades are evaluated as new information becomes available for each borrowing relationship or at least quarterly. All other loans not specifically assigned a risk rating grade are monitored as a discrete pool of loans generally based on delinquency status. Risk rating categories are as follows: | |
Pass – Borrower is strong or sound and collateral securing the loan, if any, is adequate. | |
Watch – Borrower exhibits some signs of financial stress but is generally believed to be a satisfactory customer and collateral, if any, may be in excess of 90% of the loan balance. | |
Special Mention – Adverse trends in the borrower’s financial position are evident and warrant management’s close attention and any collateral may not be fully adequate to secure loan balance. | |
Substandard – A loan in this category has a well-defined weakness in the primary repayment source that jeopardizes the timely collection of the debt. There is a distinct possibility that a loss may result if the weakness is not corrected. | |
Doubtful – Default has already occurred and it is likely that foreclosure or repossession procedures have begun or will begin in the near future. Weaknesses make collection or liquidation in full, based on currently existing information, highly questionable and improbable. | |
Loss – Uncollectible and of such little value that continuance as a bankable asset is not warranted. | |
The ALL consists of specific, general, and unallocated components. The specific component is determined by identifying impaired loans (as described below) then evaluating each one to calculate the amount of impairment. Impaired loans measured for impairment generally include: (1) non-accruing Special mention, Substandard and Doubtful loans in excess of $250,000; (2) Substandard and Doubtful loans in excess of $500,000; (3) Special Mention loans in excess of $500,000 if any of the loans in the relationship are more than 30 days past due or if the borrower has filed for bankruptcy; and (4) all TDRs. A specific allowance arises when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component collectively evaluates smaller commercial loans, residential mortgages and consumer loans, grouped into segments and classes. Historical loss experience is calculated and applied to each segment or class, then adjusted for qualitative factors. Qualitative factors include changes in the local and national economic outlook, including unemployment, interest rates, inflation rates and real estate trends; the level and trend of past due and nonaccrual loans; strength of policies and procedures; and oversight of credit risk and quality of underwriting. These qualitative adjustments reflect management’s judgment of risks inherent in the segments. An unallocated component is maintained if needed to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Changes in the allowance for loan losses and the related provision expense can materially affect net income. | |
The specific component of the ALL calculation accounts for the loan loss reserve necessary on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. 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 considered 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. Accrual of interest may or may not be discontinued for any given impaired loan. Impairment is measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Because large groups of smaller balance homogeneous loans are collectively evaluated for impairment, the Company does not generally separately identify smaller balance individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. | |
The general component of the ALL calculation collectively evaluates groups of loans in segments or classes, as noted above. The segments are: (1) Mortgage loans on real estate; (2) Commercial and industrial loans; and (3) Consumer and other loans. The segment for Mortgage loans on real estate is disaggregated into the following classes: (1) Construction, land and land development; (2) Farmland; (3) Residential first mortgages; (4) Residential revolving and junior mortgages; (5) Commercial mortgages (non-owner-occupied); and (6) Commercial mortgages (owner-occupied). Every loan is assigned to a segment or a class. Loans in segment 1 are secured by real estate. Loans in segments 2 and 3 are secured by other types of collateral or are unsecured. A given segment or class may not reflect the purpose of a loan. For example, a business owner may provide his residence as collateral for a loan to his company, in which case the loan would be grouped in a residential mortgage class. Historical loss factors are calculated for the prior 19 quarters by segment and class, and then applied to the current balances in each segment and class. Finally, qualitative factors are applied to each segment and class. | |
Construction and development loans carry risks that the project will not be finished according to schedule or according to budget and the value of the collateral, at any point in time, may be less than the principal amount of the loan. These loans also bear the risk that the general contractor may face financial pressure unrelated to the project. Loans secured by land, farmland and residential mortgages carry the risk of continued credit-worthiness of the borrower and changes in value of the underlying real estate collateral. Commercial mortgages and commercial and industrial loans carry risks associated with the profitable operation of a business and its related cash flows. Additionally, commercial and industrial loans carry risks associated with the value of collateral other than real estate which may depreciate over time. Consumer loans carry risks associated with the continuing credit-worthiness of the borrower and are more likely than real estate loans to be adversely affected by divorce, unemployment, personal illness or bankruptcy of an individual. Consumer loans secured by automobiles carry risks associated with rapidly depreciating collateral. Consumer loans include credit cards. | |
The summation of the specific, general and unallocated components results in the total estimated ALL. Management may also include an unallocated component to cover uncertainties in the level of probable losses. This estimate is inherently subjective and actual losses could be greater or less than the estimates. | |
Additions to the ALL are made by charges to earnings through the provision for loan losses. Charge-offs result from credit exposures deemed to be uncollectible and the ALL is reduced by these. Recoveries of previously charged off amounts are credited back to the ALL. Charge-off policies are materially the same for all types of loans. | |
Mortgage servicing rights ("MSRs") | ' |
Mortgage servicing rights (“MSRs”) | |
MSRs are included on the consolidated balance sheet and recorded at fair value on an ongoing basis. Changes in the fair value of the MSRs are recorded in the results of operations. A fair value analysis of MSRs is performed on a quarterly basis. | |
The Company has sold mortgages that it has originated to a third party and retained servicing rights for a number of years. The Company had not recorded the MSRs asset at the time of the sale of mortgages to the third party prior to 2013. The Company recognized the cumulative effect of the MSRs asset in the third quarter of 2013. The overstatement of income in 2013 of approximately $215,000 after tax ($325,000 pre-tax adjusted at a 34% tax rate) or approximately $0.04 per basic and diluted earnings per share represents the fair value of servicing rights retained prior to 2013. The Company is accounting for the MSRs under the fair value method after the initial recording. | |
The Company has evaluated this uncorrected misstatement in consideration and accordance with the guidance from Staff Accounting Bulletin (“SAB”) 99 and 108, in order to determine whether it is material to the financial statements taken as a whole. The Company’s evaluation process included consideration of the nature, cause, amount and effect of the misstatement from both a quantitative and qualitative perspective. | |
It is management’s judgment that the adjustment to the 2013 financial statements for MSRs, related to 2012 and prior, is not material to the 2013 balance sheet, results of operations and cash flows taken as a whole. | |
Premises and equipment, net | ' |
Premises and equipment, net | |
Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the premises and equipment. Estimated useful lives range from 10-40 years for buildings, and from 3-10 years for furniture, fixtures and equipment. Maintenance and repairs are charged to expense as incurred, and major improvements are capitalized. | |
Other real estate owned, net | ' |
Other real estate owned, net | |
Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value on the date of foreclosure less estimated selling costs, thereby establishing a new cost basis. After acquisition, management periodically performs valuations and the real estate is carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations are included in expenses from foreclosed assets and changes in the valuation allowance are included in other real estate gains (losses). | |
Goodwill | ' |
Goodwill | |
Goodwill is related to unidentifiable intangible assets arising from the acquisition of five branches during the years 1994 through 2000. Goodwill is tested annually for impairment. If impairment exists, the amount of impairment would result in a charge to expense. | |
Income taxes | ' |
Income taxes | |
Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. | |
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties, if any, associated with unrecognized tax benefits are classified as additional income taxes in the statements of income. The Company had no liabilities for recognized tax benefits at December 31, 2013 or 2012. | |
The Company evaluates its deferred tax assets quarterly to determine if those assets will recovered and if a valuation allowance is needed. At December 31, 2013, the Company determined no valuation allowance related to its deferred tax assets was necessary. | |
Pension benefits | ' |
Pension benefits | |
The non-contributory cash balance benefit pension plan was frozen as of December 31, 2012. It covers substantially all full-time employees who became vested in the plan by that date. Prior to December 31, 2012, the plan accumulated benefits for each covered employee based on annual pay credits, which were based on age and years of service, plus monthly interest credits based on an amount established each year by the Board of Directors, or the minimum interest rate per the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). Going forward, the balances for those employees vested by December 31, 2012 will continue to receive interest credits. | |
Postretirement benefits | ' |
Postretirement benefits | |
The Company provides certain health care benefits for all retired employees who meet eligibility requirements. | |
Trust assets and income | ' |
Trust assets and income | |
Customer assets held by the Trust Company, other than cash on deposit at the Bank, are not included in these financial statements, since such items are not assets of the Bank or the Trust Company. Trust fees are recorded on the accrual basis. | |
Earnings per share | ' |
Earnings per share | |
Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate solely to outstanding stock options. Refer to Note 19. | |
Off-balance-sheet financial instruments | ' |
Off-balance-sheet financial instruments | |
In the ordinary course of business, the Company enters into off-balance-sheet financial instruments such as home equity lines of credit, overdraft protection lines of credit, unsecured lines of credit, commitments under credit card arrangements, construction loan commitments and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. | |
Significant group concentration of credit risk | ' |
Significant group concentration of credit risk | |
Most of the Company’s business activity is with customers located in the counties of Lancaster, Northumberland, Richmond and Westmoreland, Virginia. The Company makes residential, commercial and consumer loans and a significant amount of the loan portfolio is comprised of real estate mortgage loans, which are primarily secured by single-family residences. The adequacy of collateral on real estate mortgage loans is highly dependent on changes in real estate values. | |
Advertising | ' |
Advertising | |
Advertising costs are expensed as incurred and totaled $175 thousand and $127 thousand for the years ended December 31, 2013 and 2012, respectively. | |
Comprehensive income | ' |
Comprehensive income | |
Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains or losses on securities available-for-sale and changes in the actuarial gain or loss of the pension and postretirement plan. The cumulative position of the items in comprehensive income resides in shareholders’ equity as accumulated other comprehensive income. Refer to Note 24. | |
Fair value 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 Note 21. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Transfers of financial assets | ' |
Transfers of financial assets | |
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership; (2) 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 (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | |
Stock-based compensation plans | ' |
Stock-based compensation plans | |
Authoritative accounting guidance requires companies to recognize the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant. This cost is recognized over the vesting period of the respective awards. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements. | |
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-11, “Balance Sheet (Topic 210) – Disclosures about Offsetting Assets and Liabilities.” This ASU requires entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the balance sheet and instruments and transactions subject to an agreement similar to a master netting arrangement. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of the new guidance did not have a material impact on the Company’s consolidated financial statements. | |
In January 2013, the FASB issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The amendments in this ASU clarify the scope for derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements and securities borrowing and securities lending transactions that are either offset or subject to netting arrangements. An entity is required to apply the amendments for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The adoption of the new guidance did not have a material impact on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in this ASU require an entity to present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income. In addition, the amendments require a cross-reference to other disclosures currently required for other reclassification items to be reclassified directly to net income in their entirety in the same reporting period. Companies should apply these amendments for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. The Company has included the required disclosures from ASU 2013-02 in the consolidated financial statements. | |
In January 2014, the FASB issued ASU 2014-04, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-4): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The amendment clarifies that an in- substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, either upon (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendment also requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the 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. Companies should apply this amendment for fiscal years and interim periods beginning after December 15, 2014. The adoption of the new guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities Portfolio | ' | ||||||||||||||||||||||||
The aggregate amortized cost and fair values of the available-for-sale securities portfolio are as follows: | |||||||||||||||||||||||||
Available-for-sale securities | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
December 31, 2013 | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. Government agencies | $ | 9,383,854 | $ | 10,627 | $ | (86,412 | ) | $ | 9,308,069 | ||||||||||||||||
State and municipal obligations | 27,690,034 | 109,280 | (1,242,426 | ) | 26,556,888 | ||||||||||||||||||||
Certificates of deposits | 1,736,000 | 9,039 | — | 1,745,039 | |||||||||||||||||||||
Auction rate security | 912,000 | — | — | 912,000 | |||||||||||||||||||||
$ | 39,721,888 | $ | 128,946 | $ | (1,328,838 | ) | $ | 38,521,996 | |||||||||||||||||
Available-for-sale securities | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
December 31, 2012 | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. Government agencies | $ | 9,411,627 | $ | 78,178 | $ | (25,990 | ) | $ | 9,463,815 | ||||||||||||||||
State and municipal obligations | 23,480,871 | 412,759 | (44,102 | ) | 23,849,528 | ||||||||||||||||||||
Certificates of deposits | 1,985,000 | 3,271 | (1,094 | ) | 1,987,177 | ||||||||||||||||||||
Auction rate security | 1,400,000 | — | — | 1,400,000 | |||||||||||||||||||||
$ | 36,277,498 | $ | 494,208 | $ | (71,186 | ) | $ | 36,700,520 | |||||||||||||||||
Gross Realized Gains and Gross Realized Losses on Sales of Securities | ' | ||||||||||||||||||||||||
The cost of securities sold is based on actual net cost. Gross realized gains and gross realized losses, as well as proceeds on sales and calls of securities, were as follows: | |||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Gross realized gains | $ | 285,286 | $ | 959,588 | |||||||||||||||||||||
Gross realized losses | (1,580 | ) | (1,828 | ) | |||||||||||||||||||||
Net realized gains | $ | 283,706 | $ | 957,760 | |||||||||||||||||||||
Aggregate proceeds | $ | 9,432,875 | $ | 15,225,843 | |||||||||||||||||||||
Aggregate Amortized Cost and Market Values of Investment Securities Portfolio by Contractual Maturity | ' | ||||||||||||||||||||||||
The aggregate amortized cost and market values of the investment securities portfolio by contractual maturity at December 31, 2013 are shown below: | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
Due in one year or less | $ | 5,882,454 | $ | 5,881,588 | |||||||||||||||||||||
Due after one year through five years | 15,851,356 | 15,785,063 | |||||||||||||||||||||||
Due after five through ten years | 15,416,075 | 14,539,307 | |||||||||||||||||||||||
Due after ten years | 2,572,003 | 2,316,038 | |||||||||||||||||||||||
$ | 39,721,888 | $ | 38,521,996 | ||||||||||||||||||||||
Unrealized Loss Positions | ' | ||||||||||||||||||||||||
Bonds with unrealized loss positions at December 31, 2012 included three certificates of deposit, 10 municipal securities and two federal agency securities. | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
December 31, 2013 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
U.S. Government agencies | $ | 4,807,632 | $ | 66,984 | $ | 1,462,360 | $ | 19,428 | $ | 6,269,992 | $ | 86,412 | |||||||||||||
States and municipal obligations | 14,255,426 | 1,120,034 | 2,305,821 | 122,392 | 16,561,247 | 1,242,426 | |||||||||||||||||||
Total temporarily impaired securities | $ | 19,063,058 | $ | 1,187,018 | $ | 3,768,181 | $ | 141,820 | $ | 22,831,239 | $ | 1,328,838 | |||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
December 31, 2012 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
U.S. Government agencies | $ | 1,080,438 | $ | 25,990 | $ | — | $ | — | $ | 1,080,438 | $ | 25,990 | |||||||||||||
States and municipal obligations | 2,863,106 | 37,731 | 1,037,825 | 6,371 | 3,900,931 | 44,102 | |||||||||||||||||||
Certificates of deposits | 742,906 | 1,094 | — | — | 742,906 | 1,094 | |||||||||||||||||||
Total temporarily impaired securities | $ | 4,686,450 | $ | 64,815 | $ | 1,037,825 | $ | 6,371 | $ | 5,724,275 | $ | 71,186 | |||||||||||||
Cumulative Credit Related Other-Than Temporary Impairment Losses Recognized on One Debt Security | ' | ||||||||||||||||||||||||
The following table summarizes cumulative credit-related other-than temporary impairment losses recognized on the one auction rate security held by the Company (no other-than-temporary-impairment was recognized for the year ended December 31, 2012): | |||||||||||||||||||||||||
For the year ended | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Balance, beginning of the period | $ | — | |||||||||||||||||||||||
Impairment losses recognized during the period | 288,000 | ||||||||||||||||||||||||
Realized losses from sales | — | ||||||||||||||||||||||||
Balance, end of period | $ | 288,000 | |||||||||||||||||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Summary of Balances of Loans Including Net Unamortized Deferred Loan fees and Other Costs | ' | ||||||||||||||||||||||||
The following is a summary of the balances of loans including net unamortized deferred loan fees and other costs of $505,534 and $702,154 for December 31, 2013 and 2012, respectively: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Mortgage loans on real estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 31,838,883 | $ | 29,024,294 | |||||||||||||||||||||
Farmland | 1,261,825 | 1,442,757 | |||||||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | 14,626,139 | 13,420,551 | |||||||||||||||||||||||
Commercial Mortgages (Owner Occupied) | 34,177,314 | 33,634,384 | |||||||||||||||||||||||
Residential First Mortgages | 114,457,561 | 106,455,040 | |||||||||||||||||||||||
Residential Revolving and Junior Mortgages | 24,045,395 | 26,982,512 | |||||||||||||||||||||||
Commercial and Industrial loans | 23,938,601 | 20,524,547 | |||||||||||||||||||||||
Consumer Loans | 5,985,658 | 6,653,410 | |||||||||||||||||||||||
Total loans | $ | 250,331,376 | $ | 238,137,495 | |||||||||||||||||||||
Net unamortized deferred loans costs | 505,534 | 702,154 | |||||||||||||||||||||||
Allowance for loan losses | (2,925,264 | ) | (3,093,623 | ) | |||||||||||||||||||||
Loans, net | $ | 247,911,646 | $ | 235,746,026 | |||||||||||||||||||||
Recorded Investment in Past Due and Non-accruing Loans | ' | ||||||||||||||||||||||||
The recorded investment in past due and non-accruing loans is shown in the following table. A loan past due by 90 days or more is generally placed on nonaccrual, unless it is both well secured and in the process of collection. | |||||||||||||||||||||||||
Loans Past Due and Nonaccruals | 30-89 | 90 Days or | Nonaccruals | Total Past | Current | Total | |||||||||||||||||||
December 31, 2013 | Days | More Past | Due and | Loans | |||||||||||||||||||||
Past Due | Due and | Nonaccruals | |||||||||||||||||||||||
Still Accruing | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 64,643 | $ | — | $ | 853,565 | $ | 918,208 | $ | 30,920,675 | $ | 31,838,883 | |||||||||||||
Farmland | — | — | — | — | 1,261,825 | 1,261,825 | |||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | — | — | — | — | 14,626,139 | 14,626,139 | |||||||||||||||||||
Commercial Mortgages (Owner Occupied) | — | — | 426,737 | 426,737 | 33,750,577 | 34,177,314 | |||||||||||||||||||
Residential First Mortgages | 667,987 | — | 1,083,302 | 1,751,289 | 112,706,272 | 114,457,561 | |||||||||||||||||||
Residential Revolving and Junior Mortgages | 108,113 | — | 76,110 | 184,223 | 23,861,172 | 24,045,395 | |||||||||||||||||||
Commercial and Industrial | 15,788 | — | 310,929 | 326,717 | 23,611,884 | 23,938,601 | |||||||||||||||||||
Consumer Loans | 60,152 | 18,710 | 3,243 | 82,105 | 5,903,553 | 5,985,658 | |||||||||||||||||||
Total | $ | 916,683 | $ | 18,710 | $ | 2,753,886 | $ | 3,689,279 | $ | 246,642,097 | $ | 250,331,376 | |||||||||||||
Loans Past Due and Nonaccruals | 30-89 | 90 Days or | Nonaccruals | Total Past | Current | Total | |||||||||||||||||||
December 31, 2012 | Days | More Past | Due and | Loans | |||||||||||||||||||||
Past Due | Due and | Nonaccruals | |||||||||||||||||||||||
Still Accruing | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 230,866 | $ | — | $ | 655,397 | $ | 886,263 | $ | 28,138,031 | $ | 29,024,294 | |||||||||||||
Farmland | — | — | — | — | 1,442,757 | 1,442,757 | |||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | — | — | 318,418 | 318,418 | 13,102,133 | 13,420,551 | |||||||||||||||||||
Commercial Mortgages (Owner Occupied) | — | 71,254 | 819,467 | 890,721 | 32,743,663 | 33,634,384 | |||||||||||||||||||
Residential First Mortgages | 761,981 | 502 | 2,677,788 | 3,440,271 | 103,014,769 | 106,455,040 | |||||||||||||||||||
Residential Revolving and Junior Mortgages | 18,081 | — | 1,257,915 | 1,275,996 | 25,706,516 | 26,982,512 | |||||||||||||||||||
Commercial and Industrial | 100,886 | 50,075 | — | 150,961 | 20,373,586 | 20,524,547 | |||||||||||||||||||
Consumer Loans | 12,193 | 3,688 | 1,479 | 17,360 | 6,636,050 | 6,653,410 | |||||||||||||||||||
Total | $ | 1,124,007 | $ | 125,519 | $ | 5,730,464 | $ | 6,979,990 | $ | 231,157,505 | $ | 238,137,495 | |||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Allowance for Loan Losses by Portfolio Segment | ' | ||||||||||||||||||||||||
A disaggregation of and an analysis of the change in the allowance for loan losses by segment is shown below. | |||||||||||||||||||||||||
Mortgage | Commercial | Consumer | Total | ||||||||||||||||||||||
Loans on | and | and Other | |||||||||||||||||||||||
Real Estate | Industrial | Loans | |||||||||||||||||||||||
For the Twelve Months Ended December 31, 2013 | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: | |||||||||||||||||||||||||
Beginning Balance | $ | 2,571,673 | $ | 262,000 | $ | 259,950 | $ | 3,093,623 | |||||||||||||||||
(Charge-offs) | (878,781 | ) | (16,897 | ) | (132,599 | ) | (1,028,277 | ) | |||||||||||||||||
Recoveries | 68,257 | 1,535 | 14,126 | 83,918 | |||||||||||||||||||||
Provision | 704,370 | 9,362 | 62,268 | 776,000 | |||||||||||||||||||||
Ending Balance | $ | 2,465,519 | $ | 256,000 | $ | 203,745 | $ | 2,925,264 | |||||||||||||||||
Individually evaluated for impairment | $ | 633,519 | $ | — | $ | 33,032 | $ | 666,551 | |||||||||||||||||
Collectively evaluated for impairment | 1,832,000 | 256,000 | 170,713 | 2,258,713 | |||||||||||||||||||||
Mortgage | Commercial | Consumer | Total | ||||||||||||||||||||||
Loans on | and | and other | |||||||||||||||||||||||
Real Estate | Industrial | Loans | |||||||||||||||||||||||
For the Twelve Months Ended December 31, 2012 | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: | |||||||||||||||||||||||||
Beginning Balance | $ | 2,713,490 | $ | 281,650 | $ | 193,401 | $ | 3,188,541 | |||||||||||||||||
(Charge-offs) | (1,798,812 | ) | (388,026 | ) | (188,724 | ) | (2,375,562 | ) | |||||||||||||||||
Recoveries | 289,385 | 18,369 | 78,205 | 385,959 | |||||||||||||||||||||
Provision | 1,367,610 | 350,007 | 177,068 | 1,894,685 | |||||||||||||||||||||
Ending Balance | $ | 2,571,673 | $ | 262,000 | $ | 259,950 | $ | 3,093,623 | |||||||||||||||||
Individually evaluated for impairment | $ | 759,673 | $ | — | $ | 74,210 | $ | 833,883 | |||||||||||||||||
Collectively evaluated for impairment | 1,812,000 | 262,000 | 185,740 | 2,259,740 | |||||||||||||||||||||
Loan Receivables Evaluated for Impairment Individually and Collectively by Segment | ' | ||||||||||||||||||||||||
Loan receivables evaluated for impairment individually and collectively by segment as of December 31, 2013 and 2012 are as follows: | |||||||||||||||||||||||||
Mortgage | Commercial | Consumer | Total | ||||||||||||||||||||||
Loans | and | Loans | |||||||||||||||||||||||
on Real Estate | Industrial | ||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,305,880 | $ | 310,929 | $ | 38,904 | $ | 6,655,713 | |||||||||||||||||
Collectively evaluated for impairment | 214,101,237 | 23,627,672 | 5,946,754 | 243,675,663 | |||||||||||||||||||||
Total Gross Loans | $ | 220,407,117 | $ | 23,938,601 | $ | 5,985,658 | $ | 250,331,376 | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,507,702 | $ | — | $ | 73,978 | $ | 7,581,680 | |||||||||||||||||
Collectively evaluated for impairment | 203,451,836 | 20,524,547 | 6,579,432 | 230,555,815 | |||||||||||||||||||||
Total Gross Loans | $ | 210,959,538 | $ | 20,524,547 | $ | 6,653,410 | $ | 238,137,495 | |||||||||||||||||
Internal Risk Rating Grades | ' | ||||||||||||||||||||||||
Internal risk rating grades are shown in the following table. | |||||||||||||||||||||||||
As of December 31, 2013 | Construction, | Farmland | Commercial | Commercial | Commercial | Total | |||||||||||||||||||
INTERNAL RISK RATING GRADES | Land and | Mortgages | Mortgages | and | |||||||||||||||||||||
Land | (Non-Owner | (Owner | Industrial | ||||||||||||||||||||||
Development | Occupied) | Occupied) | |||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 25,615,970 | $ | 1,261,825 | $ | 9,082,983 | $ | 23,983,720 | $ | 20,310,349 | $ | 80,254,847 | |||||||||||||
Watch | 3,493,341 | — | 5,204,100 | 7,429,025 | 2,742,550 | 18,869,016 | |||||||||||||||||||
Special mention | 1,415,741 | — | — | 1,001,243 | 487,089 | 2,904,073 | |||||||||||||||||||
Substandard | 1,313,831 | — | 339,056 | 1,763,326 | 398,613 | 3,814,826 | |||||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 31,838,883 | $ | 1,261,825 | $ | 14,626,139 | $ | 34,177,314 | $ | 23,938,601 | $ | 105,842,762 | |||||||||||||
As of December 31, 2012 | Construction, | Farmland | Commercial | Commercial | Commercial | Total | |||||||||||||||||||
INTERNAL RISK RATING GRADES | Land and | Mortgages | Mortgages | and | |||||||||||||||||||||
Land | (Non-Owner | (Owner | Industrial | ||||||||||||||||||||||
Development | Occupied) | Occupied) | |||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 21,877,355 | $ | 1,442,757 | $ | 7,362,289 | $ | 23,974,131 | $ | 16,418,910 | $ | 71,075,442 | |||||||||||||
Watch | 4,746,266 | — | 2,824,575 | 6,680,142 | 2,866,739 | 17,117,722 | |||||||||||||||||||
Special mention | 1,162,388 | — | 2,574,371 | 338,902 | 759,554 | 4,835,215 | |||||||||||||||||||
Substandard | 1,038,285 | — | 659,316 | 2,641,209 | 479,344 | 4,818,154 | |||||||||||||||||||
Doubtful | 200,000 | — | — | — | — | 200,000 | |||||||||||||||||||
Total | $ | 29,024,294 | $ | 1,442,757 | $ | 13,420,551 | $ | 33,634,384 | $ | 20,524,547 | $ | 98,046,533 | |||||||||||||
Performing and Non Performing Loans | ' | ||||||||||||||||||||||||
Loans are considered to be nonperforming when they are delinquent by 90 days or more or non-accruing and credit risk is primarily evaluated by delinquency status, as shown in the table below. | |||||||||||||||||||||||||
As of December 31, 2013 | Residential | Residential | Consumer | Total | |||||||||||||||||||||
PAYMENT ACTIVITY STATUS | First | Revolving | Loans (3) | ||||||||||||||||||||||
Mortgages (1) | and Junior | ||||||||||||||||||||||||
Mortgages (2) | |||||||||||||||||||||||||
Performing | $ | 113,374,260 | $ | 23,969,285 | $ | 5,963,705 | $ | 143,307,250 | |||||||||||||||||
Nonperforming | 1,083,302 | 76,110 | 21,953 | 1,181,365 | |||||||||||||||||||||
Total | $ | 114,457,562 | $ | 24,045,395 | $ | 5,985,658 | $ | 144,488,615 | |||||||||||||||||
As of December 31, 2012 | Residential | Residential | Consumer | Total | |||||||||||||||||||||
PAYMENT ACTIVITY STATUS | First | Revolving | Loans (6) | ||||||||||||||||||||||
Mortgages (4) | and Junior | ||||||||||||||||||||||||
Mortgages (5) | |||||||||||||||||||||||||
Performing | $ | 103,776,750 | $ | 25,724,597 | $ | 6,648,243 | $ | 136,149,590 | |||||||||||||||||
Nonperforming | 2,678,290 | 1,257,915 | 5,167 | 3,941,372 | |||||||||||||||||||||
Total | $ | 106,455,040 | $ | 26,982,512 | $ | 6,653,410 | $ | 140,090,962 | |||||||||||||||||
-1 | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2,645,313 as of December 31, 2013. | ||||||||||||||||||||||||
-2 | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $216,202 as of December 31, 2013. | ||||||||||||||||||||||||
-3 | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $9,094 as of December 31, 2013. | ||||||||||||||||||||||||
-4 | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $4,676,938 as of December 31, 2012. | ||||||||||||||||||||||||
-5 | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $536,019 and Doubtful totaled $847,581 as of December 31, 2012. | ||||||||||||||||||||||||
-6 | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $75,409 as of December 31, 2012. | ||||||||||||||||||||||||
Company's Recorded Investment and Customers Unpaid Principal Balances for Impaired Loans, with Associated Allowance Amount | ' | ||||||||||||||||||||||||
The following tables show the Company’s recorded investment and the customers’ unpaid principal balances for impaired loans, with the associated allowance amount, if applicable, as of December 31, 2013 and 2012 along with the average recorded investment and interest income recognized for the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
IMPAIRED LOANS | Recorded | Customers’ Unpaid | Related | ||||||||||||||||||||||
Investment | Principal Balance | Allowance | |||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 452,429 | $ | 453,350 | $ | — | |||||||||||||||||||
Residential First Mortgages | 1,053,222 | 1,056,696 | — | ||||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | — | — | — | ||||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264,056 | 264,056 | — | ||||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,830,746 | 1,839,801 | — | ||||||||||||||||||||||
Commercial and Industrial | 310,929 | 310,929 | — | ||||||||||||||||||||||
Consumer (2) | — | — | — | ||||||||||||||||||||||
3,911,382 | 3,924,832 | — | |||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | 151,147 | 155,791 | 51,447 | ||||||||||||||||||||||
Residential First Mortgages | 2,198,253 | 2,198,253 | 408,652 | ||||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 250,676 | 878,429 | 172,453 | ||||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | ||||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 105,351 | 105,351 | 967 | ||||||||||||||||||||||
Commercial and Industrial | — | — | — | ||||||||||||||||||||||
Consumer (2) | 38,904 | 38,904 | 33,032 | ||||||||||||||||||||||
2,744,331 | 3,376,728 | 666,551 | |||||||||||||||||||||||
Total Impaired Loans: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | 603,576 | 609,141 | 51,447 | ||||||||||||||||||||||
Residential First Mortgages | 3,251,475 | 3,254,949 | 408,652 | ||||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 250,676 | 878,429 | 172,453 | ||||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264,056 | 264,056 | — | ||||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,936,097 | 1,945,152 | 967 | ||||||||||||||||||||||
Commercial and Industrial | 310,929 | 310,929 | — | ||||||||||||||||||||||
Consumer (2) | 38,904 | 38,904 | 33,032 | ||||||||||||||||||||||
$ | 6,655,713 | $ | 7,301,560 | $ | 666,551 | ||||||||||||||||||||
-1 | Junior mortgages include equity lines | ||||||||||||||||||||||||
-2 | Includes credit cards | ||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
IMPAIRED LOANS | Recorded | Customers’ Unpaid | Related | ||||||||||||||||||||||
Investment | Principal Balance | Allowance | |||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 213,768 | $ | 213,914 | $ | — | |||||||||||||||||||
Residential First Mortgages | 1,495,910 | 1,495,910 | — | ||||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 971,654 | 1,785,259 | — | ||||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 758,391 | 758,391 | — | ||||||||||||||||||||||
Consumer (2) | — | — | — | ||||||||||||||||||||||
$ | 3,439,723 | $ | 4,253,474 | $ | — | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 61,882 | $ | 65,566 | $ | 25,882 | |||||||||||||||||||
Residential First Mortgages | 2,782,380 | 2,807,875 | 467,454 | ||||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 365,107 | 381,452 | 101,253 | ||||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 858,610 | 858,610 | 165,084 | ||||||||||||||||||||||
Consumer (2) | 73,978 | 73,978 | 74,210 | ||||||||||||||||||||||
$ | 4,141,957 | $ | 4,187,481 | $ | 833,883 | ||||||||||||||||||||
Total Impaired Loans: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 275,650 | $ | 279,480 | $ | 25,882 | |||||||||||||||||||
Residential First Mortgages | 4,278,290 | 4,303,785 | 467,454 | ||||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 1,336,761 | 2,166,711 | 101,253 | ||||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,617,001 | 1,617,001 | 165,084 | ||||||||||||||||||||||
Consumer (2) | 73,978 | 73,978 | 74,210 | ||||||||||||||||||||||
$ | 7,581,680 | $ | 8,440,955 | $ | 833,883 | ||||||||||||||||||||
-1 | Junior mortgages include equity lines | ||||||||||||||||||||||||
-2 | Includes credit cards | ||||||||||||||||||||||||
For the Twelve Months Ended | For the Twelve Months Ended | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
IMPAIRED LOANS | Average | Interest | Average | Interest | |||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 189,058 | $ | 1,493 | $ | 202,754 | $ | 292 | |||||||||||||||||
Residential First Mortgages | 678,171 | 47,960 | 1,372,196 | 87,917 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | — | — | 1,380,596 | 6,238 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 105,622 | 7,945 | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,091,822 | 56,417 | 429,600 | 31,116 | |||||||||||||||||||||
Commercial and Industrial | 62,186 | — | — | — | |||||||||||||||||||||
Consumer (2) | — | — | — | — | |||||||||||||||||||||
2,126,859 | 113,815 | 3,385,146 | 125,563 | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | 30,229 | — | 63,761 | — | |||||||||||||||||||||
Residential First Mortgages | 1,916,379 | 107,608 | 1,803,730 | 76,058 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 254,149 | 8,236 | 310,725 | 1,953 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 21,070 | 1,733 | 863,479 | 27,861 | |||||||||||||||||||||
Commercial and Industrial | — | — | — | — | |||||||||||||||||||||
Consumer (2) | 59,524 | 5,047 | 67,322 | 8,385 | |||||||||||||||||||||
2,281,351 | 122,624 | 3,109,017 | 114,257 | ||||||||||||||||||||||
Total | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | 219,287 | 1,493 | 266,515 | 292 | |||||||||||||||||||||
Residential First Mortgages | 2,594,550 | 155,568 | 3,175,926 | 163,975 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 254,149 | 8,236 | 1,691,321 | 8,191 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 105,622 | 7,945 | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,112,892 | 58,150 | 1,293,079 | 58,977 | |||||||||||||||||||||
Commercial and Industrial | 62,186 | — | — | — | |||||||||||||||||||||
Consumer (2) | 59,524 | 5,047 | 67,322 | 8,385 | |||||||||||||||||||||
$ | 4,408,210 | $ | 236,439 | $ | 6,494,163 | $ | 239,820 | ||||||||||||||||||
-1 | Junior mortgages include equity lines. | ||||||||||||||||||||||||
-2 | Includes credit cards. | ||||||||||||||||||||||||
Summary of Troubled Debt Restructurings | ' | ||||||||||||||||||||||||
The following table presents, by segments of loans, information related to loans modified as TDRs during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||
31-Dec-13 | December 31, 2012 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS | Number of | Pre-Modification | Post-Modification | Number of | Pre-Modification | Post-Modification | |||||||||||||||||||
Loans | Outstanding | Outstanding | Loans | Outstanding | Outstanding | ||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||
Construction, land & land development (1) | 3 | $ | 196,257 | $ | 196,257 | — | $ | — | $ | — | |||||||||||||||
Residential first mortgages (2) | 1 | 206,505 | 204,366 | 2 | 987,861 | 981,297 | |||||||||||||||||||
Residential revolving and junior mortgages (3) | — | — | — | 2 | 107,943 | 107,434 | |||||||||||||||||||
Commercial mortgages (Owner occupied) (4) | 2 | 262,834 | 262,834 | 2 | 652,041 | 652,041 | |||||||||||||||||||
Consumer (2) | 1 | 7,953 | 7,457 | 1 | 114,210 | 73,978 | |||||||||||||||||||
-1 | Modifications were an extention of the loan terms. | ||||||||||||||||||||||||
-2 | Modifications were capitalization of the interest for 2013 and extentions of loan terms for 2012. | ||||||||||||||||||||||||
-3 | Modifications were capitalization of the interest and extension of loan terms for 2012. | ||||||||||||||||||||||||
-4 | Modifications were an extension of loan terms for 2013 and extension of loan terms and capitalization of the interest for 2012. | ||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||
Loans | Investment | Loans | Investment | ||||||||||||||||||||||
Residential revolving and junior mortgages (1) | 1 | $ | 105,797 | 1 | $ | 47,749 | |||||||||||||||||||
Commercial mortgages (Owner occupied)(2) | — | — | 1 | 172,926 | |||||||||||||||||||||
-1 | Modifications were a capitalization of the interest for the 2013 default and extention of the loan terms for the 2012 default. | ||||||||||||||||||||||||
-2 | Modification was an extention of the loan terms. |
Other_Real_Estate_Owned_Net_Ta
Other Real Estate Owned, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Net of Valuation Allowances for Losses on Other Real Estate Owned | ' | ||||||||
Other real estate owned (“OREO”) is presented net of a valuation allowance for losses. An analysis of the valuation allowance on OREO is shown below. | |||||||||
Years ended | |||||||||
2013 | 2012 | ||||||||
Balance, beginning of year | $ | 561,758 | $ | 150,192 | |||||
Provision for losses | 300,341 | 505,766 | |||||||
Charge-offs | (324,150 | ) | (94,200 | ) | |||||
Balance, end of period | $ | 537,949 | $ | 561,758 | |||||
Components of Expenses Applicable to Foreclosed Assets | ' | ||||||||
Expenses applicable to OREO include the following: | |||||||||
Years ended | |||||||||
2013 | 2012 | ||||||||
Net loss on sales of real estate | $ | 263,116 | $ | 230,840 | |||||
Provision for losses | 300,341 | 505,766 | |||||||
Operating expenses, net of income | 124,164 | 186,161 | |||||||
Total expenses | $ | 687,621 | $ | 922,767 | |||||
Premises_and_Equipment_net_Tab
Premises and Equipment, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Components of Premises and Equipment Included in Balance Sheets | ' | ||||||||
Components of premises and equipment included in the balance sheets at December 31, 2013 and 2012 were as follows: | |||||||||
2013 | 2012 | ||||||||
Land and improvements | $ | 1,998,623 | $ | 2,085,769 | |||||
Buildings and improvements | 11,764,356 | 12,544,293 | |||||||
Furniture and equipment | 8,881,795 | 8,974,077 | |||||||
Total cost | $ | 22,644,774 | $ | 23,604,139 | |||||
Less accumulated depreciation | (12,024,232 | ) | (11,992,451 | ) | |||||
Premises and equipment, net | $ | 10,620,542 | $ | 11,611,688 | |||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Schedule of Time Deposits Maturities | ' | ||||
At December 31, 2013, the scheduled maturities of time deposits are as follows: | |||||
2014 | $ | 34,619,389 | |||
2015 | 25,338,705 | ||||
2016 | 26,984,069 | ||||
2017 | 4,646,530 | ||||
2018 | 4,884,253 | ||||
Thereafter | 12,673 | ||||
$ | 96,485,619 | ||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Change in Benefit Obligation | ' | ||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Change in benefit obligation | |||||||||||||||||
Benefit obligation, beginning of year | $ | 2,854,443 | $ | 3,948,661 | $ | 759,503 | $ | 676,618 | |||||||||
Service cost | — | 254,285 | 22,950 | 26,002 | |||||||||||||
Interest cost | 143,259 | 178,298 | 29,906 | 29,957 | |||||||||||||
Actuarial (gain) loss | 225,315 | 319,817 | (190,153 | ) | 42,235 | ||||||||||||
Benefit payments | (478,454 | ) | (2,017,995 | ) | (15,061 | ) | (15,309 | ) | |||||||||
Settlement (gain) loss | (7,278 | ) | 171,377 | — | — | ||||||||||||
Benefit obligation, end of year | $ | 2,737,285 | $ | 2,854,443 | $ | 607,145 | $ | 759,503 | |||||||||
Change in Plan Assets | ' | ||||||||||||||||
Change in plan assets | |||||||||||||||||
Fair value of plan assets, beginning of year | $ | 2,844,808 | $ | 4,385,574 | $ | — | $ | — | |||||||||
Actual return on plan assets | 453,556 | 477,229 | — | — | |||||||||||||
Employer contributions | — | — | 15,061 | 15,309 | |||||||||||||
Benefits payments | (478,454 | ) | (2,017,995 | ) | (15,061 | ) | (15,309 | ) | |||||||||
Fair value of plan assets, end of year | $ | 2,819,910 | $ | 2,844,808 | $ | — | $ | — | |||||||||
Defined Benefit Plan Funded Status | ' | ||||||||||||||||
Funded Status at the End of the Year | $ | 82,625 | $ | (9,635 | ) | $ | (607,145 | ) | $ | (759,503 | ) | ||||||
Amounts Recognized in Accumulated Other Comprehensive Loss (Income) | ' | ||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Loss (Income) | |||||||||||||||||
Net loss (gain) | $ | 625,226 | $ | 849,356 | $ | (47,038 | ) | $ | 147,611 | ||||||||
Prior service cost | — | — | — | — | |||||||||||||
Net obligation at transition | — | — | — | 2,913 | |||||||||||||
Amount recognized | $ | 625,226 | $ | 849,356 | $ | (47,038 | ) | $ | 150,524 | ||||||||
Components of Net Periodic Benefit Cost (Gain) | ' | ||||||||||||||||
Components of Net Periodic Benefit Cost (Gain) | |||||||||||||||||
Service cost | $ | — | $ | 254,285 | $ | 22,950 | $ | 26,002 | |||||||||
Interest cost | 143,259 | 178,298 | 29,906 | 29,957 | |||||||||||||
Expected (return) on plan assets | (214,661 | ) | (321,864 | ) | — | — | |||||||||||
Amortization of prior service cost | — | (755,465 | ) | — | — | ||||||||||||
Amortization of net obligation at transition | — | — | 2,913 | 2,913 | |||||||||||||
Recognized net loss due to settlement | 113,527 | 534,220 | — | — | |||||||||||||
Recognized net actuarial loss | 89,745 | 71,440 | 4,496 | 2,942 | |||||||||||||
Net periodic benefit cost (gain) | $ | 131,870 | $ | (39,086 | ) | $ | 60,265 | $ | 61,814 | ||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss | ' | ||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss | |||||||||||||||||
Net (gain) loss | $ | (224,130 | ) | $ | (269,831 | ) | $ | (194,649 | ) | $ | 39,293 | ||||||
Amortization of prior service cost | — | 755,465 | — | — | |||||||||||||
Amortization of net obligation at transition | — | — | (2,913 | ) | (2,913 | ) | |||||||||||
Total recognized in other comprehensive (income)/loss | $ | (224,130 | ) | $ | 485,634 | $ | (197,562 | ) | $ | 36,380 | |||||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Income)/loss | $ | (92,260 | ) | $ | 446,548 | $ | (137,297 | ) | $ | 98,194 | |||||||
Weighted-average Assumptions | ' | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted-average assumptions as of December 31: | |||||||||||||||||
Discount rate used for Net Periodic Pension Cost | 4 | % | 4.5 | % | 4 | % | 4.5 | % | |||||||||
Discount Rate used for Disclosure | 5 | % | 4 | % | 5 | % | 4 | % | |||||||||
Expected return on plan assets | 8 | % | 8 | % | N/A | N/A | |||||||||||
Rate of compensation increase | N/A | 3 | % | N/A | N/A | ||||||||||||
Rate of compensation increase for net periodic pension cost | N/A | 3 | % | N/A | N/A | ||||||||||||
Expected future interest crediting rate | 3 | % | 3 | % | N/A | N/A | |||||||||||
Estimated Future Benefit Payments for Pension and Postretirement Plans | ' | ||||||||||||||||
Estimated future benefit payments for the pension and postretirement plans are as follows: | |||||||||||||||||
Pension | Postretirement | ||||||||||||||||
2014 | $ | 42,037 | $ | 20,136 | |||||||||||||
2015 | 292,372 | 22,044 | |||||||||||||||
2016 | 51,523 | 23,291 | |||||||||||||||
2017 | 209,097 | 25,343 | |||||||||||||||
2018 | 41,286 | 27,135 | |||||||||||||||
2019 and thereafter | 1,631,170 | 172,514 | |||||||||||||||
Fair Value of Pension Plan Assets by Asset Category | ' | ||||||||||||||||
The fair value of the Company’s pension plan assets by asset category are as follows: | |||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | 2,582 | $ | 2,582 | $ | — | $ | — | |||||||||
Mutual funds - fixed income | 1,070,272 | 1,070,272 | — | — | |||||||||||||
Mutual funds - equity | 1,747,056 | 1,747,056 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,819,910 | $ | 2,819,910 | $ | — | $ | — | |||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | (5,539 | ) | $ | (5,539 | ) | $ | — | $ | — | |||||||
Mutual funds - fixed income | 1,091,176 | 1,091,176 | — | — | |||||||||||||
Mutual funds - equity | 1,759,171 | 1,759,171 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,844,808 | $ | 2,844,808 | $ | — | $ | — | |||||||||
FHLB_Tables
FHLB (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Advances of FHLB | ' | ||||||||||||||||
Information on the two advances is shown in the following table. | |||||||||||||||||
Description | Balance | Originated | Current | Maturity | |||||||||||||
Interest Rate | Date | ||||||||||||||||
Adjustable Rate Hybrid | $ | 10,000,000 | 4/12/13 | 2.38 | % | 4/13/20 | |||||||||||
Fixed Rate Hybrid | 5,000,000 | 5/20/11 | 2.69 | % | 5/20/14 | ||||||||||||
$ | 15,000,000 | ||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Expense (Benefit) for Income Taxes | ' | ||||||||
The expense (benefit) for income taxes consisted of the following. | |||||||||
Year ended December 31, | 2013 | 2012 | |||||||
Current | $ | 139,822 | $ | 253,421 | |||||
Deferred | 259,307 | (42,949 | ) | ||||||
$ | 399,129 | $ | 210,472 | ||||||
Summary of Reasons for Differences Between Statutory Federal Income Tax Rates and Effective Tax Rates | ' | ||||||||
The reasons for the differences between the statutory Federal income tax rates and the effective tax rates are summarized as follows: | |||||||||
2013 | 2012 | ||||||||
Statutory rate | 34 | % | 34 | % | |||||
Increase (decrease) resulting from: | |||||||||
Tax exempt interest | -8.5 | % | -12.8 | % | |||||
Bank owned life insurance | -2.7 | % | — | ||||||
Other, net | 1.8 | % | 2 | % | |||||
24.6 | % | 23.2 | % | ||||||
Components of Net Deferred Tax Assets and Liabilities | ' | ||||||||
The components of the net deferred tax assets and liabilities included in other liabilities are as follows: | |||||||||
December 31, | 2013 | 2012 | |||||||
Deferred tax assets | |||||||||
Allowance for loan losses | $ | 631,641 | $ | 747,792 | |||||
Interest on non-accrual loans | 40,495 | 120,356 | |||||||
Mortgage servicing rights | 196,909 | — | |||||||
Other real estate | 476,496 | 236,610 | |||||||
Pension plan | — | 3,276 | |||||||
Postretirement benefits | 206,429 | 258,231 | |||||||
Deferred compensation | 113,712 | 84,879 | |||||||
Stock-based compensation | 18,301 | 10,215 | |||||||
Alternative minimum tax credit | 96,428 | 174,997 | |||||||
Unrealized losses on available-for-sale securities | 407,964 | — | |||||||
Other | 2,913 | 272,942 | |||||||
Total deferred tax assets | 2,191,288 | 1,909,298 | |||||||
Deferred tax liabilities | |||||||||
Unrealized gains on available-for-sale securities | — | (143,828 | ) | ||||||
Pension plan | (27,120 | ) | — | ||||||
Depreciation | (276,066 | ) | (305,010 | ) | |||||
Amortization of goodwill | (896,451 | ) | (860,950 | ) | |||||
Net deferred loan fees and costs | (171,882 | ) | (238,732 | ) | |||||
Other | (63,925 | ) | (63,591 | ) | |||||
Total deferred tax (liabilities) | (1,435,444 | ) | (1,612,111 | ) | |||||
Net deferred tax assets | $ | 755,844 | $ | 297,187 | |||||
Regulatory_Requirements_and_Re1
Regulatory Requirements and Restrictions (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Schedule of Bank's Actual Capital Amounts and Ratios | ' | ||||||||||||||||||||||||
The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2013 and 2012, are presented in the following tables: | |||||||||||||||||||||||||
Actual | Minimum | Minimum | |||||||||||||||||||||||
Capital Requirement | To Be Well | ||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Total Risk Based Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 39,322 | 16.38 | % | $ | 19,211 | 8 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | $ | 33,419 | 14.01 | % | $ | 19,089 | 8 | % | $ | 23,861 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 36,397 | 15.16 | % | $ | 9,605 | 4 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | $ | 30,494 | 12.78 | % | $ | 9,545 | 4 | % | $ | 14,317 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||
Consolidated | $ | 36,397 | 10.93 | % | $ | 13,319 | 4 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | $ | 30,494 | 9.2 | % | $ | 13,259 | 4 | % | $ | 16,573 | 5 | % | |||||||||||||
Actual | Minimum | Minimum | |||||||||||||||||||||||
Capital Requirement | To Be Well | ||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Total Risk Based Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 37,787 | 17.09 | % | $ | 17,689 | 8 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | $ | 31,514 | 14.08 | % | $ | 17,900 | 8 | % | $ | 22,374 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 35,019 | 15.84 | % | $ | 8,845 | 4 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | $ | 28,714 | 12.83 | % | $ | 8,950 | 4 | % | $ | 13,425 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||
Consolidated | $ | 35,019 | 10.93 | % | $ | 12,812 | 4 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | $ | 28,714 | 9 | % | $ | 12,763 | 4 | % | $ | 15,954 | 5 | % |
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Stock Option Plan Activity | ' | ||||||||||||||||
Stock option plan activity for 2013 is summarized below: | |||||||||||||||||
Shares | Weighted Average | Weighted Average | Aggregate | ||||||||||||||
Exercise | Remaining | Intrinsic | |||||||||||||||
Price | Contractual | Value (1) | |||||||||||||||
Life (in years) | |||||||||||||||||
Options outstanding, January 1, 2012 | 197,423 | $ | 10 | 5.8 | |||||||||||||
Granted | — | — | |||||||||||||||
Forfeited | (59,584 | ) | 9.45 | ||||||||||||||
Exercised | — | — | |||||||||||||||
Expired | (17,222 | ) | 15.34 | ||||||||||||||
Options outstanding, December 31, 2012 | 120,617 | 9.51 | 5.4 | $ | 6,750 | ||||||||||||
Granted | 89,500 | 5.25 | |||||||||||||||
Forfeited | (11,519 | ) | 9.42 | ||||||||||||||
Exercised | — | — | |||||||||||||||
Expired | (7,596 | ) | 13.8 | ||||||||||||||
Options outstanding, December 31, 2013 | 191,002 | $ | 7.35 | 6.8 | $ | 14,146 | |||||||||||
Options exercisable, December 31, 2013 | 191,002 | $ | 7.35 | 6.8 | $ | 14,146 | |||||||||||
-1 | The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2013. This amount changes based on changes in the market value of the Company’s common stock. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Weighted Average Number of Shares Used in Computing Earnings Per Share | ' | ||||||||||||||||
The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of dilutive potential common stock. | |||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||
Average | Per share | Average | Per share | ||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||
Basic earnings per share | 4,816,859 | $ | 0.25 | 2,610,856 | $ | 0.27 | |||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | 2,484 | 1,931 | |||||||||||||||
Diluted earnings per share | 4,819,343 | $ | 0.25 | 2,612,787 | $ | 0.27 | |||||||||||
Related_Parties_Tables
Related Parties (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Summary of Related Party Transactions | ' | ||||
Balance, January 1, 2013 | $ | 2,236,794 | |||
New loans and extensions to existing loans | 1,021,204 | ||||
Repayments and other reductions | (651,962 | ) | |||
Balance, December 31, 2013 | $ | 2,606,036 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and December 31, 2012: | |||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Securities available for sale: | |||||||||||||||||
U. S. Government agencies | $ | 9,308,069 | $ | — | $ | 9,308,069 | $ | — | |||||||||
State and municipal obligations | 26,556,888 | — | 26,556,888 | — | |||||||||||||
Certificates of deposit | 1,745,039 | — | 1,745,039 | — | |||||||||||||
Auction rate security | 912,000 | — | — | 912,000 | |||||||||||||
Total securities available for sale: | $ | 38,521,996 | $ | — | $ | 37,609,996 | $ | 912,000 | |||||||||
Mortgage servicing rights | $ | 579,145 | $ | — | $ | — | $ | 579,145 | |||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | 2,582 | $ | 2,582 | $ | — | $ | — | |||||||||
Mutual funds - fixed income | 1,070,272 | 1,070,272 | — | — | |||||||||||||
Mutual funds - equity | 1,747,056 | 1,747,056 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,819,910 | $ | 2,819,910 | $ | — | $ | — | |||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Securities available for sale: | |||||||||||||||||
U. S. Government agencies | $ | 9,463,815 | $ | — | $ | 9,463,815 | $ | — | |||||||||
State and municipal obligations | 23,849,528 | — | 23,849,528 | — | |||||||||||||
Certificates of deposit | 1,987,177 | — | 1,987,177 | — | |||||||||||||
Auction rate security | 1,400,000 | — | — | 1,400,000 | |||||||||||||
Total securities available for sale: | $ | 36,700,520 | $ | — | $ | 35,300,520 | $ | 1,400,000 | |||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | (5,539 | ) | $ | (5,539 | ) | $ | — | $ | — | |||||||
Mutual funds - fixed income | 1,091,176 | 1,091,176 | — | — | |||||||||||||
Mutual funds - equity | 1,759,171 | 1,759,171 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,844,808 | $ | 2,844,808 | $ | — | $ | — | |||||||||
Reconciliation of Items Using Level Three Inputs | ' | ||||||||||||||||
The reconciliation of items using Level 3 inputs is as follows: | |||||||||||||||||
Auction Rate | MSRs | ||||||||||||||||
Security | |||||||||||||||||
Balance, January 1, 2013 | $ | 1,400,000 | $ | — | |||||||||||||
Impairments | (288,000 | ) | — | ||||||||||||||
Fair value adjustments | — | 579,145 | |||||||||||||||
Redemptions and sales | (200,000 | ) | — | ||||||||||||||
Balance, December 31, 2013 | $ | 912,000 | $ | 579,145 | |||||||||||||
Summary of Assets Measured at Fair Value on Nonrecurring Basis | ' | ||||||||||||||||
The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at the end of the respective period. | |||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Description | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2013 | |||||||||||||||||
Impaired loans, net | $ | 2,077,780 | $ | — | $ | — | $ | 2,077,780 | |||||||||
Other real estate owned, net | 3,896,987 | — | — | 3,896,987 | |||||||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||
Description | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2012 | |||||||||||||||||
Impaired loans, net | $ | 3,308,074 | $ | — | $ | — | $ | 3,308,074 | |||||||||
Other real estate owned, net | 3,151,346 | — | — | 3,151,346 | |||||||||||||
Summary of Quantitative Fair Value Measurements for Level 3 | ' | ||||||||||||||||
The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2013: | |||||||||||||||||
Description | Balance | Valuation | Unobservable | Range | |||||||||||||
Technique | Input | (Weighted | |||||||||||||||
Average) | |||||||||||||||||
Impaired loans, net | $ | 2,077,780 | Discounted appraised value | Selling Cost | 10% - 20% (10% | ) | |||||||||||
Lack of Marketability | 25% - 100% (54% | ) | |||||||||||||||
Other real estate owned, net | 3,896,987 | Discounted appraised value | Selling Cost | 3% - 13% (6% | ) | ||||||||||||
Lack of Marketability | 7% - 30% (15% | ) | |||||||||||||||
The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2012: | |||||||||||||||||
Description | Balance | Valuation | Unobservable | Range | |||||||||||||
Technique | Input | (Weighted | |||||||||||||||
Average) | |||||||||||||||||
Impaired loans, net | $ | 3,308,074 | Discounted appraised value | Selling Cost | 0% -20% (11% | ) | |||||||||||
Lack of Marketability | 10% - 100% (27% | ) | |||||||||||||||
Other real estate owned, net | 3,151,346 | Discounted appraised value | Selling Cost | 6%-13% (6% | ) | ||||||||||||
Lack of Marketability | 10% - 20% (16% | ) | |||||||||||||||
Estimated Fair Values of Financial Instruments | ' | ||||||||||||||||
The estimated fair values of financial instruments are shown in the following table. The carrying amounts in the table are included in the balance sheet under the applicable captions. | |||||||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Description | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2013 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 6,788,689 | $ | 6,788,689 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 8,900,190 | 8,900,190 | — | — | |||||||||||||
Federal funds sold | 120,029 | 120,029 | — | — | |||||||||||||
Securities available-for-sale | 38,521,996 | — | 37,609,996 | 912,000 | |||||||||||||
Restricted securities | 1,638,350 | — | — | 1,638,350 | |||||||||||||
Loans, net | 247,911,646 | — | — | 253,139,150 | |||||||||||||
Loans held for sale | 195,850 | — | — | 195,850 | |||||||||||||
Accrued interest receivable | 1,123,865 | — | 1,123,865 | — | |||||||||||||
Mortgage servicing rights | 579,145 | — | — | 579,145 | |||||||||||||
Financial Liabilities: | |||||||||||||||||
Non-interest-bearing liabilities | $ | 57,804,547 | $ | 57,804,547 | $ | — | $ | — | |||||||||
Savings and other interest-bearing deposits | 114,056,155 | — | 114,056,155 | — | |||||||||||||
Time deposits | 96,485,619 | — | — | 98,049,000 | |||||||||||||
Securities sold under repurchase agreements | 9,118,382 | — | 9,118,382 | — | |||||||||||||
FHLB advances | 15,000,000 | — | 15,923,202 | — | |||||||||||||
Accrued interest payable | 166,865 | — | 166,865 | — | |||||||||||||
Fair Value Measurements at December 31, 2012 Using | |||||||||||||||||
Description | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2012 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 4,757,889 | $ | 4,757,889 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 35,166,448 | 35,166,448 | — | — | |||||||||||||
Federal funds sold | 48,009 | 48,009 | — | — | |||||||||||||
Securities available-for-sale | 36,700,520 | — | 35,300,520 | 1,400,000 | |||||||||||||
Restricted securities | 1,584,700 | — | — | 1,584,700 | |||||||||||||
Loans, net | 235,746,026 | — | — | 244,310,321 | |||||||||||||
Loans held for sale | 398,500 | — | — | 398,500 | |||||||||||||
Accrued interest receivable | 1,070,763 | — | 1,070,763 | — | |||||||||||||
Financial Liabilities: | |||||||||||||||||
Non-interest-bearing liabilities | $ | 50,467,907 | $ | 50,467,907 | $ | — | $ | — | |||||||||
Savings and other interest-bearing deposits | 117,954,879 | — | 117,954,879 | — | |||||||||||||
Time deposits | 106,751,785 | — | — | 109,449,974 | |||||||||||||
Securities sold under repurchase agreements | 6,459,839 | — | 6,459,839 | — | |||||||||||||
FHLB advances | 15,000,000 | — | 16,483,342 | — | |||||||||||||
Accrued interest payable | 156,812 | — | 156,812 | — |
Condensed_Financial_Informatio1
Condensed Financial Information of Parent Company (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Condensed Balance Sheets | ' | ||||||||
Condensed Balance Sheets | 2013 | 2012 | |||||||
Assets | |||||||||
Cash and due from banks | $ | 3,883,856 | $ | 9,053,069 | |||||
Investments in subsidiaries | 32,456,157 | 31,324,616 | |||||||
Premises and equipment, net | 576 | 1,168 | |||||||
Other assets | 1,266,222 | 274,226 | |||||||
Total assets | $ | 37,606,811 | $ | 40,653,079 | |||||
Liabilities and Shareholders’ Equity | |||||||||
Liabilities | |||||||||
Deferred directors’ compensation | $ | 336,630 | $ | 249,645 | |||||
Other liabilities | 133,682 | 3,818,463 | |||||||
Total liabilities | 470,312 | 4,068,108 | |||||||
Total shareholders’ equity | 37,136,499 | 36,584,971 | |||||||
Total liabilities and shareholders’ equity | $ | 37,606,811 | $ | 40,653,079 | |||||
Condensed Income Statements | ' | ||||||||
Condensed Income Statements | 2013 | 2012 | |||||||
Non-interest income | $ | 599,677 | $ | 730,940 | |||||
Non-interest expense | 828,678 | 634,593 | |||||||
(Loss) income before income taxes and equity in undistributed earnings of subsidiaries | (229,001 | ) | 96,347 | ||||||
Income tax (benefit) expense | (26,560 | ) | 22,145 | ||||||
(Loss) income before equity in undistributed earnings of subsidiaries | (202,441 | ) | 74,202 | ||||||
Equity in undistributed earnings of subsidiaries | 1,424,347 | 623,560 | |||||||
Net income | $ | 1,221,906 | $ | 697,762 | |||||
Condensed Statements of Cash Flows | ' | ||||||||
Condensed Statements of Cash Flows | 2013 | 2012 | |||||||
Cash Flows from Operating Activities: | |||||||||
Net income | $ | 1,221,906 | $ | 697,762 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 592 | 592 | |||||||
Stock-based compensation | 122,429 | 2,924 | |||||||
Equity in undistributed earnings of subsidiaries | (1,424,347 | ) | (623,560 | ) | |||||
(Increase) decrease in other assets | (185,804 | ) | 42,737 | ||||||
Net change in deferred directors’ compensation | 86,985 | 38,672 | |||||||
(Decrease) increase in other liabilities | (3,719,974 | ) | 3,650,247 | ||||||
Net cash (used in) provided by operating activities | (3,898,213 | ) | 3,809,374 | ||||||
Cash Flows from Investing Activities: | |||||||||
Purchase of other assets | (771,000 | ) | — | ||||||
Investment in subsidiaries | (500,000 | ) | (3,515,000 | ) | |||||
Net cash used in investing activities | (1,271,000 | ) | (3,515,000 | ) | |||||
Cash Flows from Financing Activities: | |||||||||
Proceeds from issuance of common stock | — | 8,695,566 | |||||||
Net cash provided by financing activities | — | 8,695,566 | |||||||
Net (decrease) increase in cash and due from banks | (5,169,213 | ) | 8,989,941 | ||||||
Cash and due from banks at January 1 | 9,053,069 | 63,129 | |||||||
Cash and due from banks at December 31 | $ | 3,883,856 | $ | 9,053,069 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Balances in Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
The balances in accumulated other comprehensive income( loss) are shown in the following table (dollars in thousands): | |||||||||||||
Net Unrealized | Pension and | Accumulated Other | |||||||||||
Gains (Losses) | Post-retirement | Comprehensive | |||||||||||
on Securities | Benefit Plans | Income (Loss) | |||||||||||
Balance January 1, 2012 | $ | 761 | $ | (316 | ) | $ | 445 | ||||||
Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $78 | 151 | — | 151 | ||||||||||
Reclassification for previously unrealized net (gains) recognized in income, net of tax benefit of $325 | (632 | ) | — | (632 | ) | ||||||||
Net periodic pension cost, net of tax benefit of $257 | — | (498 | ) | (498 | ) | ||||||||
Net gain (loss) on pension and postretirement plans, net of tax expense of $78 | — | 152 | 152 | ||||||||||
Net postretirement plan transition cost, net of tax expense of $1 | — | 1 | 1 | ||||||||||
Balance December 31, 2012 | $ | 280 | $ | (661 | ) | $ | (381 | ) | |||||
Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $550 | (1,068 | ) | — | (1,068 | ) | ||||||||
Reclassification for previously unrealized net (gains) recognized in income, net of tax benefit of $1 | (3 | ) | — | (3 | ) | ||||||||
Net gain (loss) on pension and postretirement plans, net of tax expense of $143 | — | 276 | 276 | ||||||||||
Net postretirement plan transition cost, net of tax expense of $1 | — | 2 | 2 | ||||||||||
Balance at December 31, 2013 | $ | (791 | ) | $ | (383 | ) | $ | (1,174 | ) | ||||
Reclassification of Unrealized Gains and Impairments on Securities and Pension and Postemployment Related Costs | ' | ||||||||||||
Reclassification for previously unrealized gains and impairments on securities and pension and postemployment related costs are reported in the consolidated statements of income as follows: | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Reclassification for the Year Ended | |||||||||||||
31-Dec-13 | |||||||||||||
(In thousands) | Holding gains (losses) | Pension and | |||||||||||
on securities | postemployment costs | ||||||||||||
Net gains on sale of securities available-for-securities | $ | 284 | $ | — | |||||||||
Loss on security with other-than-temporary impairment | (288 | ) | — | ||||||||||
Salaries and employee benefits | — | 422 | |||||||||||
Tax (expense) benefit | 1 | (144 | ) | ||||||||||
Impact on net income | $ | (3 | ) | $ | 278 | ||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Reclassification for the Year Ended | |||||||||||||
31-Dec-12 | |||||||||||||
(In thousands) | Holding gains (losses) | Pension and | |||||||||||
on securities | postemployment costs | ||||||||||||
Net gains on sale of securities available-for-securities | $ | (957 | ) | $ | — | ||||||||
Salaries and employee benefits | — | (523 | ) | ||||||||||
Tax (expense) benefit | 325 | 178 | |||||||||||
Impact on net income | $ | (632 | ) | $ | (345 | ) | |||||||
Significant_Accounting_Policie2
Significant Accounting Policies - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2008 | Dec. 31, 2000 | |
Quarter | Quarter | Quarter | Branch | |||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Interest-Bearing Deposits in Banks, maturity period | ' | ' | '1 year | ' | ' | ' |
Secured borrowings maturity period under repurchase agreements | ' | ' | '1 year | ' | ' | ' |
Credit card and other personal loans charged off period no later than period | ' | ' | '180 days | ' | ' | ' |
Number of Quarters | 19 | 6 | ' | ' | 16 | ' |
Percentage of excess loan balance for watch category | ' | ' | 90.00% | ' | ' | ' |
Impaired loans measurement | ' | ' | 'Impaired loans measured for impairment generally include (1) non-accruing Special mention, Substandard and Doubtful loans in excess of $250,000; (2) Substandard and Doubtful loans in excess of $500,000; (3) Special Mention loans in excess of $500,000 if any of the loans in the relationship are more than 30 days past due or if the borrower has filed for bankruptcy; and (4) all TDRs. | ' | ' | ' |
Loan Receivables | ' | ' | $105,842,762 | $98,046,533 | ' | ' |
Overstatement of income, after tax | ' | ' | 215,000 | ' | ' | ' |
Overstatement of income, pre-tax | ' | ' | 325,000 | ' | ' | ' |
Pre-tax adjusted | ' | ' | 34.00% | 34.00% | ' | ' |
Basic and diluted earnings per share | ' | ' | $0.04 | ' | ' | ' |
Number of branches purchased during the years 1994 through 2000 | ' | ' | ' | ' | ' | 5 |
Liabilities for recognized tax benefits | ' | ' | 0 | 0 | ' | ' |
Deferred tax assets valuation allowance | ' | ' | 0 | ' | ' | ' |
Advertising expense | ' | ' | 175,000 | 127,000 | ' | ' |
Residential Mortgage | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Minimum balance in order to assign a risk rating grade | ' | ' | 1,000,000 | ' | ' | ' |
Consumer Loan | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Minimum balance in order to assign a risk rating grade | ' | ' | 250,000 | ' | ' | ' |
Special Mention | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Loan Receivables | ' | ' | 2,904,073 | 4,835,215 | ' | ' |
Loan due days | ' | ' | '30 days | ' | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Number of days past due for a loan to remain on accrual status | ' | ' | '90 days | ' | ' | ' |
Minimum | Non-accruing Special mention, Substandard and Doubtful loans | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Loan Receivables | ' | ' | 250,000 | ' | ' | ' |
Minimum | Substandard and Doubtful loans | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Loan Receivables | ' | ' | 500,000 | ' | ' | ' |
Minimum | Special Mention | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Loan Receivables | ' | ' | $500,000 | ' | ' | ' |
Building | Minimum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '10 years | ' | ' | ' |
Building | Maximum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '40 years | ' | ' | ' |
Furniture and Equipment | Minimum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '3 years | ' | ' | ' |
Furniture and Equipment | Maximum | ' | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '10 years | ' | ' | ' |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 1 Months Ended | |||
Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2000 | |
Branch | ||||
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' | ' |
Goodwill | ' | $2,807,842 | $2,807,842 | ' |
Number of branches purchased during the years 1994 through 2000 | ' | ' | ' | 5 |
Impairment of goodwill | $0 | ' | ' | ' |
Investment_Securities_Aggregat
Investment Securities - Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities Portfolio (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $39,721,888 | $36,277,498 |
Gross Unrealized Gains | 128,946 | 494,208 |
Gross Unrealized (Losses) | -1,328,838 | -71,186 |
Fair Value | 38,521,996 | 36,700,520 |
US Government Agencies | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 9,383,854 | 9,411,627 |
Gross Unrealized Gains | 10,627 | 78,178 |
Gross Unrealized (Losses) | -86,412 | -25,990 |
Fair Value | 9,308,069 | 9,463,815 |
State and Municipal Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 27,690,034 | 23,480,871 |
Gross Unrealized Gains | 109,280 | 412,759 |
Gross Unrealized (Losses) | -1,242,426 | -44,102 |
Fair Value | 26,556,888 | 23,849,528 |
Certificates of Deposit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,736,000 | 1,985,000 |
Gross Unrealized Gains | 9,039 | 3,271 |
Gross Unrealized (Losses) | ' | -1,094 |
Fair Value | 1,745,039 | 1,987,177 |
Auction Rate Security | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 912,000 | 1,400,000 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized (Losses) | ' | ' |
Fair Value | $912,000 | $1,400,000 |
Investment_Securities_Gross_Re
Investment Securities - Gross Realized Gains and Gross Realized Losses on Sales of Securities (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross realized gains | $285,286 | $959,588 |
Gross realized losses | -1,580 | -1,828 |
Net realized gains | 283,706 | 957,760 |
Aggregate proceeds | $9,432,875 | $15,225,843 |
Investment_Securities_Aggregat1
Investment Securities - Aggregate Amortized Cost and Market Values of Investment Securities Portfolio by Contractual Maturity (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Due in one year or less, Amortized Cost | $5,882,454 | ' |
Due after one year through five years, Amortized Cost | 15,851,356 | ' |
Due after five through ten years, Amortized Cost | 15,416,075 | ' |
Due after ten years, Amortized Cost | 2,572,003 | ' |
Amortized Cost | 39,721,888 | 36,277,498 |
Due in one year or less, Fair Value | 5,881,588 | ' |
Due after one year through five years, Fair Value | 15,785,063 | ' |
Due after five through ten years, Fair Value | 14,539,307 | ' |
Due after ten years, Fair Value | 2,316,038 | ' |
Fair Value | $38,521,996 | $36,700,520 |
Investment_Securities_Addition
Investment Securities - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | |
Bond | Certificate | Federal Reserve Bank | Federal Reserve Bank | Auction Rate Security | Auction Rate Security | Auction Rate Security | Auction Rate Security | |
Certificate | Bond | Subsequent Event | ||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of securities | $12,891,507 | $8,123,132 | ' | ' | ' | ' | ' | ' |
Certificates deposits | ' | 3 | ' | ' | ' | ' | ' | ' |
Treasuries and agencies bonds with unrealized loss position | 14 | ' | ' | ' | ' | ' | ' | ' |
Municipal bonds with unrealized loss position | 50 | 10 | ' | ' | ' | ' | ' | ' |
Federal agencies bonds with unrealized loss position | 1 | 2 | ' | ' | ' | ' | ' | ' |
Face amount of security sold | ' | ' | ' | ' | ' | 1,200,000 | 1,200,000 | 1,200,000 |
Percentage of Auction rate securities with provision | ' | ' | ' | ' | ' | ' | 50.00% | ' |
Other-than-temporary impairment charge | 288,000 | ' | ' | ' | 168,000 | 120,000 | ' | ' |
Proceed from disposal of auction rate securities | 9,432,875 | 15,225,843 | ' | ' | ' | ' | ' | 912,000 |
Company's investment in Federal Home Loan Bank stock | 1,079,800 | 1,146,600 | ' | ' | ' | ' | ' | ' |
Impairment of Investment in Federal Home Loan Bank of Atlanta | 0 | ' | 0 | ' | ' | ' | ' | ' |
Company's investment in Federal Home Loan Bank stock | ' | ' | $382,000 | $262,000 | ' | ' | ' | ' |
Investment_Securities_Unrealiz
Investment Securities - Unrealized Loss Positions (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | $19,063,058 | $4,686,450 |
Less than 12 months, Unrealized Loss | 1,187,018 | 64,815 |
12 months or more, Fair Value | 3,768,181 | 1,037,825 |
12 months or more, Unrealized Loss | 141,820 | 6,371 |
Fair Value, Total | 22,831,239 | 5,724,275 |
Total Unrealized Loss | 1,328,838 | 71,186 |
US Government Agencies | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | 4,807,632 | 1,080,438 |
Less than 12 months, Unrealized Loss | 66,984 | 25,990 |
12 months or more, Fair Value | 1,462,360 | ' |
12 months or more, Unrealized Loss | 19,428 | ' |
Fair Value, Total | 6,269,992 | 1,080,438 |
Total Unrealized Loss | 86,412 | 25,990 |
State and Municipal Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | 14,255,426 | 2,863,106 |
Less than 12 months, Unrealized Loss | 1,120,034 | 37,731 |
12 months or more, Fair Value | 2,305,821 | 1,037,825 |
12 months or more, Unrealized Loss | 122,392 | 6,371 |
Fair Value, Total | 16,561,247 | 3,900,931 |
Total Unrealized Loss | 1,242,426 | 44,102 |
Certificates of Deposit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | ' | 742,906 |
Less than 12 months, Unrealized Loss | ' | 1,094 |
12 months or more, Fair Value | ' | ' |
12 months or more, Unrealized Loss | ' | ' |
Fair Value, Total | ' | 742,906 |
Total Unrealized Loss | ' | $1,094 |
Investment_Securities_Cumulati
Investment Securities - Cumulative Credit Related Other-Than Temporary Impairment Losses Recognized on One Debt Security (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ' |
Balance, beginning of the period | ' |
Impairment losses recognized during the period | 288,000 |
Realized losses from sales | ' |
Balance, end of period | $288,000 |
Loans_Additional_Informations_
Loans - Additional Informations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Net unamortized deferred loans costs | $505,534 | $702,154 |
Minimum | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Number of days past due for a loan to remain on accrual status | '90 days | ' |
Loans_Summary_of_Balances_of_L
Loans - Summary of Balances of Loans (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of balances of loans | ' | ' |
Total loans | $250,331,376 | $238,137,495 |
Net unamortized deferred loans costs | 505,534 | 702,154 |
Allowance for loan losses | -2,925,264 | -3,093,623 |
Loans, net | 247,911,646 | 235,746,026 |
Construction, Land and Land Development | ' | ' |
Summary of balances of loans | ' | ' |
Total loans | 31,838,883 | 29,024,294 |
Farmland | ' | ' |
Summary of balances of loans | ' | ' |
Total loans | 1,261,825 | 1,442,757 |
Commercial Mortgages (Non-Owner Occupied) | ' | ' |
Summary of balances of loans | ' | ' |
Total loans | 14,626,139 | 13,420,551 |
Commercial Mortgages (Owner Occupied) | ' | ' |
Summary of balances of loans | ' | ' |
Total loans | 34,177,314 | 33,634,384 |
Residential First Mortgages | ' | ' |
Summary of balances of loans | ' | ' |
Total loans | 114,457,561 | 106,455,040 |
Residential Revolving and Junior Mortgages | ' | ' |
Summary of balances of loans | ' | ' |
Total loans | 24,045,395 | 26,982,512 |
Commercial and Industrial loans | ' | ' |
Summary of balances of loans | ' | ' |
Total loans | 23,938,601 | 20,524,547 |
Consumer Loans | ' | ' |
Summary of balances of loans | ' | ' |
Total loans | $5,985,658 | $6,653,410 |
Loans_Recorded_Investment_in_P
Loans - Recorded Investment in Past Due and Non-accruing Loans (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | $916,683 | $1,124,007 |
90 Days or More Past Due and Still Accruing | 18,710 | 125,519 |
Nonaccruals | 2,753,886 | 5,730,464 |
Total Past Due and Nonaccruals | 3,689,279 | 6,979,990 |
Current | 246,642,097 | 231,157,505 |
Total Gross Loans | 250,331,376 | 238,137,495 |
Construction, Land and Land Development | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | 64,643 | 230,866 |
90 Days or More Past Due and Still Accruing | ' | ' |
Nonaccruals | 853,565 | 655,397 |
Total Past Due and Nonaccruals | 918,208 | 886,263 |
Current | 30,920,675 | 28,138,031 |
Total Gross Loans | 31,838,883 | 29,024,294 |
Farmland | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | ' | ' |
90 Days or More Past Due and Still Accruing | ' | ' |
Nonaccruals | ' | ' |
Total Past Due and Nonaccruals | ' | ' |
Current | 1,261,825 | 1,442,757 |
Total Gross Loans | 1,261,825 | 1,442,757 |
Commercial Mortgages (Non-Owner Occupied) | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | ' | ' |
90 Days or More Past Due and Still Accruing | ' | ' |
Nonaccruals | ' | 318,418 |
Total Past Due and Nonaccruals | ' | 318,418 |
Current | 14,626,139 | 13,102,133 |
Total Gross Loans | 14,626,139 | 13,420,551 |
Commercial Mortgages (Owner Occupied) | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | ' | ' |
90 Days or More Past Due and Still Accruing | ' | 71,254 |
Nonaccruals | 426,737 | 819,467 |
Total Past Due and Nonaccruals | 426,737 | 890,721 |
Current | 33,750,577 | 32,743,663 |
Total Gross Loans | 34,177,314 | 33,634,384 |
Residential First Mortgages | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | 667,987 | 761,981 |
90 Days or More Past Due and Still Accruing | ' | 502 |
Nonaccruals | 1,083,302 | 2,677,788 |
Total Past Due and Nonaccruals | 1,751,289 | 3,440,271 |
Current | 112,706,272 | 103,014,769 |
Total Gross Loans | 114,457,561 | 106,455,040 |
Residential Revolving and Junior Mortgages | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | 108,113 | 18,081 |
90 Days or More Past Due and Still Accruing | ' | ' |
Nonaccruals | 76,110 | 1,257,915 |
Total Past Due and Nonaccruals | 184,223 | 1,275,996 |
Current | 23,861,172 | 25,706,516 |
Total Gross Loans | 24,045,395 | 26,982,512 |
Commercial and Industrial loans | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | 15,788 | 100,886 |
90 Days or More Past Due and Still Accruing | ' | 50,075 |
Nonaccruals | 310,929 | ' |
Total Past Due and Nonaccruals | 326,717 | 150,961 |
Current | 23,611,884 | 20,373,586 |
Total Gross Loans | 23,938,601 | 20,524,547 |
Consumer Loans | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | 60,152 | 12,193 |
90 Days or More Past Due and Still Accruing | 18,710 | 3,688 |
Nonaccruals | 3,243 | 1,479 |
Total Past Due and Nonaccruals | 82,105 | 17,360 |
Current | 5,903,553 | 6,636,050 |
Total Gross Loans | $5,985,658 | $6,653,410 |
Allowance_for_Loan_Losses_Allo
Allowance for Loan Losses - Allowance for Loan Losses by Portfolio Segment (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
ALLOWANCE FOR LOAN LOSSES: | ' | ' |
Beginning Balance | $3,093,623 | $3,188,541 |
(Charge-offs) | -1,028,277 | -2,375,562 |
Recoveries | 83,918 | 385,959 |
Provision | 776,000 | 1,894,685 |
Ending Balance | 2,925,264 | 3,093,623 |
Individually evaluated for impairment | 666,551 | 833,883 |
Collectively evaluated for impairment | 2,258,713 | 2,259,740 |
Mortgage Loans on Real Estate | ' | ' |
ALLOWANCE FOR LOAN LOSSES: | ' | ' |
Beginning Balance | 2,571,673 | 2,713,490 |
(Charge-offs) | -878,781 | -1,798,812 |
Recoveries | 68,257 | 289,385 |
Provision | 704,370 | 1,367,610 |
Ending Balance | 2,465,519 | 2,571,673 |
Individually evaluated for impairment | 633,519 | 759,673 |
Collectively evaluated for impairment | 1,832,000 | 1,812,000 |
Commercial and Industrial loans | ' | ' |
ALLOWANCE FOR LOAN LOSSES: | ' | ' |
Beginning Balance | 262,000 | 281,650 |
(Charge-offs) | -16,897 | -388,026 |
Recoveries | 1,535 | 18,369 |
Provision | 9,362 | 350,007 |
Ending Balance | 256,000 | 262,000 |
Collectively evaluated for impairment | 256,000 | 262,000 |
Consumer and Other Loans | ' | ' |
ALLOWANCE FOR LOAN LOSSES: | ' | ' |
Beginning Balance | 259,950 | 193,401 |
(Charge-offs) | -132,599 | -188,724 |
Recoveries | 14,126 | 78,205 |
Provision | 62,268 | 177,068 |
Ending Balance | 203,745 | 259,950 |
Individually evaluated for impairment | 33,032 | 74,210 |
Collectively evaluated for impairment | $170,713 | $185,740 |
Allowance_for_Loan_Losses_Loan
Allowance for Loan Losses - Loan Receivables Evaluated for Impairment Individually and Collectively by Segment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Ending Balance: | ' | ' |
Individually evaluated for impairment | $6,655,713 | $7,581,680 |
Collectively evaluated for impairment | 243,675,663 | 230,555,815 |
Total Gross Loans | 250,331,376 | 238,137,495 |
Mortgage Loans on Real Estate | ' | ' |
Ending Balance: | ' | ' |
Individually evaluated for impairment | 6,305,880 | 7,507,702 |
Collectively evaluated for impairment | 214,101,237 | 203,451,836 |
Total Gross Loans | 220,407,117 | 210,959,538 |
Commercial and Industrial loans | ' | ' |
Ending Balance: | ' | ' |
Individually evaluated for impairment | 310,929 | ' |
Collectively evaluated for impairment | 23,627,672 | 20,524,547 |
Total Gross Loans | 23,938,601 | 20,524,547 |
Consumer Loans | ' | ' |
Ending Balance: | ' | ' |
Individually evaluated for impairment | 38,904 | 73,978 |
Collectively evaluated for impairment | 5,946,754 | 6,579,432 |
Total Gross Loans | $5,985,658 | $6,653,410 |
Allowance_for_Loan_Losses_Inte
Allowance for Loan Losses - Internal Risk Rating Grades (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | $105,842,762 | $98,046,533 |
Pass | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 80,254,847 | 71,075,442 |
Watch | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 18,869,016 | 17,117,722 |
Special Mention | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 2,904,073 | 4,835,215 |
Substandard | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 3,814,826 | 4,818,154 |
Doubtful | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | ' | 200,000 |
Construction, Land and Land Development | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 31,838,883 | 29,024,294 |
Construction, Land and Land Development | Pass | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 25,615,970 | 21,877,355 |
Construction, Land and Land Development | Watch | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 3,493,341 | 4,746,266 |
Construction, Land and Land Development | Special Mention | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 1,415,741 | 1,162,388 |
Construction, Land and Land Development | Substandard | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 1,313,831 | 1,038,285 |
Construction, Land and Land Development | Doubtful | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | ' | 200,000 |
Farmland | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 1,261,825 | 1,442,757 |
Farmland | Pass | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 1,261,825 | 1,442,757 |
Commercial Mortgages (Non-Owner Occupied) | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 14,626,139 | 13,420,551 |
Commercial Mortgages (Non-Owner Occupied) | Pass | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 9,082,983 | 7,362,289 |
Commercial Mortgages (Non-Owner Occupied) | Watch | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 5,204,100 | 2,824,575 |
Commercial Mortgages (Non-Owner Occupied) | Special Mention | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | ' | 2,574,371 |
Commercial Mortgages (Non-Owner Occupied) | Substandard | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 339,056 | 659,316 |
Commercial Mortgages (Owner Occupied) | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 34,177,314 | 33,634,384 |
Commercial Mortgages (Owner Occupied) | Pass | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 23,983,720 | 23,974,131 |
Commercial Mortgages (Owner Occupied) | Watch | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 7,429,025 | 6,680,142 |
Commercial Mortgages (Owner Occupied) | Special Mention | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 1,001,243 | 338,902 |
Commercial Mortgages (Owner Occupied) | Substandard | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 1,763,326 | 2,641,209 |
Commercial and Industrial loans | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 23,938,601 | 20,524,547 |
Commercial and Industrial loans | Pass | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 20,310,349 | 16,418,910 |
Commercial and Industrial loans | Watch | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 2,742,550 | 2,866,739 |
Commercial and Industrial loans | Special Mention | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 487,089 | 759,554 |
Commercial and Industrial loans | Substandard | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | $398,613 | $479,344 |
Allowance_for_Loan_Losses_Addi
Allowance for Loan Losses - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Loan | Loan | |
Contract | Contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Period of nonperforming loans | '90 days | ' |
Non-accruing loans excluded from impaired loan | $723,561 | $721,951 |
Non-accruing loans accrued interest | 23,312 | 10,500 |
Subsequently defaulted number of loans | 1 | 2 |
Performing number of loans | ' | 1 |
Number of trouble debt restructurings | 14 | 8 |
Aggregate balance of trouble debt restructuring | $2,500,000 | $3,300,000 |
Allowance_for_Loan_Losses_Perf
Allowance for Loan Losses - Performing and Non Performing Loans (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | $144,488,615 | $140,090,962 | ||
Performing | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 143,307,250 | 136,149,590 | ||
Nonperforming | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 1,181,365 | 3,941,372 | ||
Residential First Mortgages | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 114,457,562 | [1] | 106,455,040 | [2] |
Residential First Mortgages | Performing | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 113,374,260 | [1] | 103,776,750 | [2] |
Residential First Mortgages | Nonperforming | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 1,083,302 | [1] | 2,678,290 | [2] |
Residential Revolving and Junior Mortgages | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 24,045,395 | [3] | 26,982,512 | [4] |
Residential Revolving and Junior Mortgages | Performing | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 23,969,285 | [3] | 25,724,597 | [4] |
Residential Revolving and Junior Mortgages | Nonperforming | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 76,110 | [3] | 1,257,915 | [4] |
Consumer Loan | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 5,985,658 | [5] | 6,653,410 | [6] |
Consumer Loan | Performing | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 5,963,705 | [5] | 6,648,243 | [6] |
Consumer Loan | Nonperforming | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | $21,953 | [5] | $5,167 | [6] |
[1] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2,645,313 as of December 31, 2013. | |||
[2] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $4,676,938 as of December 31, 2012. | |||
[3] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $216,202 as of December 31, 2013. | |||
[4] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $536,019 and Doubtful totaled $847,581 as of December 31, 2012. | |||
[5] | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $9,094 as of December 31, 2013. | |||
[6] | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $75,409 as of December 31, 2012. |
Allowance_for_Loan_Losses_Perf1
Allowance for Loan Losses - Performing and Non Performing Loans (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | $144,488,615 | $140,090,962 | ||
Residential First Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | 114,457,562 | [1] | 106,455,040 | [2] |
Residential Revolving and Junior Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | 24,045,395 | [3] | 26,982,512 | [4] |
Consumer Loan | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | 5,985,658 | [5] | 6,653,410 | [6] |
Substandard | Residential First Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | 2,645,313 | 4,676,938 | ||
Substandard | Residential Revolving and Junior Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | 216,202 | 536,019 | ||
Substandard | Consumer Loan | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | 9,094 | 75,409 | ||
Doubtful | Residential Revolving and Junior Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | ' | $847,581 | ||
[1] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2,645,313 as of December 31, 2013. | |||
[2] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $4,676,938 as of December 31, 2012. | |||
[3] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $216,202 as of December 31, 2013. | |||
[4] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $536,019 and Doubtful totaled $847,581 as of December 31, 2012. | |||
[5] | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $9,094 as of December 31, 2013. | |||
[6] | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $75,409 as of December 31, 2012. |
Allowance_for_Loan_Losses_Comp
Allowance for Loan Losses - Company's Recorded Investment and Customers' Unpaid Principal Balances for Impaired Loans, with Associated Allowance Amount (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
With no related allowance, Recorded Investment | $3,911,382 | $3,439,723 | ||
With no related allowance, Customers' Unpaid Principal Balance | 3,924,832 | 4,253,474 | ||
With an allowance recorded, Recorded Investment | 2,744,331 | 4,141,957 | ||
With an allowance recorded, Customers' Unpaid Principal Balance | 3,376,728 | 4,187,481 | ||
With an allowance recorded, Related Allowance | 666,551 | 833,883 | ||
Total Impaired Loans, Recorded Investment | 6,655,713 | 7,581,680 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 7,301,560 | 8,440,955 | ||
Total Impaired Loans, Related Allowance | 666,551 | 833,883 | ||
With no related allowance, Average Recorded Investment | 2,126,859 | 3,385,146 | ||
With no related allowance, Interest Income Recognized | 113,815 | 125,563 | ||
With an allowance recorded, Average Recorded Investment | 2,281,351 | 3,109,017 | ||
With an allowance recorded, Interest Income Recognized | 122,624 | 114,257 | ||
Total, Average Recorded Investment | 4,408,210 | 6,494,163 | ||
Total, Interest Income Recognized | 236,439 | 239,820 | ||
Construction Land And Land Development | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
With no related allowance, Recorded Investment | 452,429 | 213,768 | ||
With no related allowance, Customers' Unpaid Principal Balance | 453,350 | 213,914 | ||
With an allowance recorded, Recorded Investment | 151,147 | 61,882 | ||
With an allowance recorded, Customers' Unpaid Principal Balance | 155,791 | 65,566 | ||
With an allowance recorded, Related Allowance | 51,447 | 25,882 | ||
Total Impaired Loans, Recorded Investment | 603,576 | 275,650 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 609,141 | 279,480 | ||
Total Impaired Loans, Related Allowance | 51,447 | 25,882 | ||
With no related allowance, Average Recorded Investment | 189,058 | 202,754 | ||
With no related allowance, Interest Income Recognized | 1,493 | 292 | ||
With an allowance recorded, Average Recorded Investment | 30,229 | 63,761 | ||
Total, Average Recorded Investment | 219,287 | 266,515 | ||
Total, Interest Income Recognized | 1,493 | 292 | ||
Residential First Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
With no related allowance, Recorded Investment | 1,053,222 | 1,495,910 | ||
With no related allowance, Customers' Unpaid Principal Balance | 1,056,696 | 1,495,910 | ||
With an allowance recorded, Recorded Investment | 2,198,253 | 2,782,380 | ||
With an allowance recorded, Customers' Unpaid Principal Balance | 2,198,253 | 2,807,875 | ||
With an allowance recorded, Related Allowance | 408,652 | 467,454 | ||
Total Impaired Loans, Recorded Investment | 3,251,475 | 4,278,290 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 3,254,949 | 4,303,785 | ||
Total Impaired Loans, Related Allowance | 408,652 | 467,454 | ||
With no related allowance, Average Recorded Investment | 678,171 | 1,372,196 | ||
With no related allowance, Interest Income Recognized | 47,960 | 87,917 | ||
With an allowance recorded, Average Recorded Investment | 1,916,379 | 1,803,730 | ||
With an allowance recorded, Interest Income Recognized | 107,608 | 76,058 | ||
Total, Average Recorded Investment | 2,594,550 | 3,175,926 | ||
Total, Interest Income Recognized | 155,568 | 163,975 | ||
Residential Revolving and Junior Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
With no related allowance, Recorded Investment | ' | 971,654 | [1] | |
With no related allowance, Customers' Unpaid Principal Balance | ' | 1,785,259 | [1] | |
With an allowance recorded, Recorded Investment | 250,676 | [1] | 365,107 | [1] |
With an allowance recorded, Customers' Unpaid Principal Balance | 878,429 | [1] | 381,452 | [1] |
With an allowance recorded, Related Allowance | 172,453 | [1] | 101,253 | [1] |
Total Impaired Loans, Recorded Investment | 250,676 | [1] | 1,336,761 | [1] |
Total Impaired Loans, Customers' Unpaid Principal Balance | 878,429 | [1] | 2,166,711 | [1] |
Total Impaired Loans, Related Allowance | 172,453 | [1] | 101,253 | [1] |
With no related allowance, Average Recorded Investment | ' | 1,380,596 | [2] | |
With no related allowance, Interest Income Recognized | ' | 6,238 | [2] | |
With an allowance recorded, Average Recorded Investment | 254,149 | [2] | 310,725 | [2] |
With an allowance recorded, Interest Income Recognized | 8,236 | [2] | 1,953 | [2] |
Total, Average Recorded Investment | 254,149 | [2] | 1,691,321 | [2] |
Total, Interest Income Recognized | 8,236 | [2] | 8,191 | [2] |
Commercial Mortgages Non Owner Occupied | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
With no related allowance, Recorded Investment | 264,056 | ' | ||
With no related allowance, Customers' Unpaid Principal Balance | 264,056 | ' | ||
Total Impaired Loans, Recorded Investment | 264,056 | ' | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 264,056 | ' | ||
With no related allowance, Average Recorded Investment | 105,622 | ' | ||
With no related allowance, Interest Income Recognized | 7,945 | ' | ||
Total, Average Recorded Investment | 105,622 | ' | ||
Total, Interest Income Recognized | 7,945 | ' | ||
Commercial Mortgages Owner Occupied | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
With no related allowance, Recorded Investment | 1,830,746 | 758,391 | ||
With no related allowance, Customers' Unpaid Principal Balance | 1,839,801 | 758,391 | ||
With an allowance recorded, Recorded Investment | 105,351 | 858,610 | ||
With an allowance recorded, Customers' Unpaid Principal Balance | 105,351 | 858,610 | ||
With an allowance recorded, Related Allowance | 967 | 165,084 | ||
Total Impaired Loans, Recorded Investment | 1,936,097 | 1,617,001 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 1,945,152 | 1,617,001 | ||
Total Impaired Loans, Related Allowance | 967 | 165,084 | ||
With no related allowance, Average Recorded Investment | 1,091,822 | 429,600 | ||
With no related allowance, Interest Income Recognized | 56,417 | 31,116 | ||
With an allowance recorded, Average Recorded Investment | 21,070 | 863,479 | ||
With an allowance recorded, Interest Income Recognized | 1,733 | 27,861 | ||
Total, Average Recorded Investment | 1,112,892 | 1,293,079 | ||
Total, Interest Income Recognized | 58,150 | 58,977 | ||
Commercial and Industrial Loans | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
With no related allowance, Recorded Investment | 310,929 | ' | ||
With no related allowance, Customers' Unpaid Principal Balance | 310,929 | ' | ||
Total Impaired Loans, Recorded Investment | 310,929 | ' | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 310,929 | ' | ||
With no related allowance, Average Recorded Investment | 62,186 | ' | ||
Total, Average Recorded Investment | 62,186 | ' | ||
Consumer Loan | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
With an allowance recorded, Recorded Investment | 38,904 | [3] | 73,978 | [3] |
With an allowance recorded, Customers' Unpaid Principal Balance | 38,904 | [3] | 73,978 | [3] |
With an allowance recorded, Related Allowance | 33,032 | [3] | 74,210 | [3] |
Total Impaired Loans, Recorded Investment | 38,904 | [3] | 73,978 | [3] |
Total Impaired Loans, Customers' Unpaid Principal Balance | 38,904 | [3] | 73,978 | [3] |
Total Impaired Loans, Related Allowance | 33,032 | [3] | 74,210 | [3] |
With an allowance recorded, Average Recorded Investment | 59,524 | [4] | 67,322 | [4] |
With an allowance recorded, Interest Income Recognized | 5,047 | [4] | 8,385 | [4] |
Total, Average Recorded Investment | 59,524 | [4] | 67,322 | [4] |
Total, Interest Income Recognized | $5,047 | [4] | $8,385 | [4] |
[1] | Junior mortgages include equity lines | |||
[2] | Junior mortgages include equity lines. | |||
[3] | Includes credit cards | |||
[4] | Includes credit cards. |
Allowance_for_Loan_Losses_Summ
Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Loan | Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Number of Loans | ' | 1 | ||
Subsequently defaulted number of loans | 1 | 2 | ||
Construction Land And Land Development | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Number of Loans | 3 | [1] | ' | |
Pre-Modification Outstanding Recorded Investment | 196,257 | [1] | ' | |
Post-Modification Outstanding Recorded Investment | 196,257 | [1] | ' | |
Residential First Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Number of Loans | 1 | [2] | 2 | [2] |
Pre-Modification Outstanding Recorded Investment | 206,505 | [2] | 987,861 | [2] |
Post-Modification Outstanding Recorded Investment | 204,366 | [2] | 981,297 | [2] |
Residential Revolving and Junior Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Number of Loans | ' | 2 | [3] | |
Pre-Modification Outstanding Recorded Investment | ' | 107,943 | [3] | |
Post-Modification Outstanding Recorded Investment | ' | 107,434 | [3] | |
Subsequently defaulted number of loans | 1 | [4] | 1 | [4] |
Subsequently defaulted recorded investment | 105,797 | [4] | 47,749 | [4] |
Commercial Mortgages Owner Occupied | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Number of Loans | 2 | [5] | 2 | [5] |
Pre-Modification Outstanding Recorded Investment | 262,834 | [5] | 652,041 | [5] |
Post-Modification Outstanding Recorded Investment | 262,834 | [5] | 652,041 | [5] |
Subsequently defaulted number of loans | ' | 1 | [6] | |
Subsequently defaulted recorded investment | ' | 172,926 | [6] | |
Consumer Loan | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Number of Loans | 1 | [2] | 1 | [2] |
Pre-Modification Outstanding Recorded Investment | 7,953 | [2] | 114,210 | [2] |
Post-Modification Outstanding Recorded Investment | 7,457 | [2] | 73,978 | [2] |
[1] | Modifications were an extention of the loan terms. | |||
[2] | Modifications were capitalization of the interest for 2013 and extentions of loan terms for 2012. | |||
[3] | Modifications were capitalization of the interest and extension of loan terms for 2012. | |||
[4] | Modifications were a capitalization of the interest for the 2013 default and extention of the loan terms for the 2012 default. | |||
[5] | Modifications were an extension of loan terms for 2013 and extension of loan terms and capitalization of the interest for 2012. | |||
[6] | Modification was an extention of the loan terms. |
Other_Real_Estate_Owned_Net_Ne
Other Real Estate Owned Net - Net of Valuation Allowances for Losses on Foreclosed Assets (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Real Estate Owned And Other Repossessed Assets [Line Items] | ' | ' |
Balance, beginning of year | $561,758 | $150,192 |
Provision for losses | 300,341 | 505,766 |
Charge-offs | -324,150 | -94,200 |
Balance, end of period | $537,949 | $561,758 |
Other_Real_Estate_Owned_Net_Co
Other Real Estate Owned Net - Components of Expenses Applicable to Foreclosed Assets (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Real Estate Acquired Through Foreclosure Or Similar Procedures [Line Items] | ' | ' |
Net loss on sales of real estate | $263,116 | $230,840 |
Provision for losses | 300,341 | 505,766 |
Operating expenses, net of income | 124,164 | 186,161 |
Total expenses | $687,621 | $922,767 |
Other_Real_Estate_Owned_Net_Ad
Other Real Estate Owned, Net - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other Real Estate [Line Items] | ' | ' |
Other assets | $2,900,651 | $1,753,945 |
Residential and Branch Office | ' | ' |
Other Real Estate [Line Items] | ' | ' |
Other assets | $983,000 | ' |
Branch Office | ' | ' |
Other Real Estate [Line Items] | ' | ' |
Number of property | 1 | ' |
Residential Property | ' | ' |
Other Real Estate [Line Items] | ' | ' |
Number of property | 1 | ' |
Premises_and_Equipment_Net_Com
Premises and Equipment Net - Components of Premises and Equipment Included in Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | $22,644,774 | $23,604,139 |
Less accumulated depreciation | -12,024,232 | -11,992,451 |
Premises and equipment, net | 10,620,542 | 11,611,688 |
Land and Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | 1,998,623 | 2,085,769 |
Buildings and Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | 11,764,356 | 12,544,293 |
Furniture and Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | $8,881,795 | $8,974,077 |
Premises_and_Equipment_Net_Add
Premises and Equipment Net - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation expense | $754,480 | $769,476 |
Deposits_Additional_informatio
Deposits - Additional information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Cash And Short Term Investments [Line Items] | ' | ' |
Aggregate amount of time deposits in denominations of $100000 or more | $44,019,722 | $47,952,934 |
Overdraft demand deposits reclassified to loans | 90,870 | 85,418 |
Brokered deposits | $0 | $0 |
Deposits_Schedule_of_Time_Depo
Deposits - Schedule of Time Deposits Maturities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Investments [Line Items] | ' | ' |
2014 | $34,619,389 | ' |
2015 | 25,338,705 | ' |
2016 | 26,984,069 | ' |
2017 | 4,646,530 | ' |
2018 | 4,884,253 | ' |
Thereafter | 12,673 | ' |
Time deposits | $96,485,619 | $106,751,785 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Minimum age of full-time employees | 21 | ' |
Defined Benefit Plan Minimum Interest Rate per Internal Revenue Code | 3.00% | ' |
Conditional age-1 for availing plan | 55 | ' |
Conditional age-2 for availing plan | 65 | ' |
Conditional years of service -1 for availing plan | '10 years | ' |
Conditional years of service-2 for availing plan | '5 years | ' |
Expected employer contribution | $0 | ' |
Fixed Income Funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Targeted asset allocation percentage | 40.00% | ' |
Equity Funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Targeted asset allocation percentage | 60.00% | ' |
Four Zero One Retirement Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Employer contributions | 97,329 | 86,821 |
Conditional period of service for availing plan | '6 months | ' |
Employee contribution from percentage | 15.00% | ' |
Employee contribution condition | 'The Company matches 100% of the first 2% and 25% of the next 4% of an employee's contributions | ' |
Pension Plan, Defined Benefit | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Accumulated benefit obligation | 2,737,285 | 2,854,443 |
Estimated future benefit payments in 2014 | 42,037 | ' |
Employer contributions | ' | ' |
Other Postretirement Benefit Plan, Defined Benefit | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Assumed annual rate of increase in per capita health care costs in 2014 | 8.00% | ' |
Assumed annual rate of increase in per capita health care costs in 2015 | 8.00% | ' |
Assumed annual rate of increase in per capita health care costs in 2016 | 6.00% | ' |
Assumed annual rate of increase in per capita health care costs in 2017 | 6.00% | ' |
Assumed annual rate of increase in per capita health care costs,2018 and thereafter | 5.00% | ' |
Accumulated postretirement benefit obligation at assumed health care cost trend rates increased by 1 percentage | 771 | ' |
Aggregate of the service and interest cost components at assumed health care cost trend rates increased by 1 percentage | 101 | ' |
Accumulated postretirement benefit obligation at assumed health care cost trend rates decreased by 1 percentage | 723 | ' |
Aggregate of the service and interest cost components at assumed health care cost trend rates decreased by 1 percentage | 95 | ' |
Estimated future benefit payments in 2014 | 20,136 | ' |
Employer contributions | $15,061 | $15,309 |
Employee_Benefit_Plans_Change_
Employee Benefit Plans - Change in Benefit Obligation (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Benefit obligation, beginning of year | $2,854,443 | $3,948,661 |
Service cost | ' | 254,285 |
Interest cost | 143,259 | 178,298 |
Actuarial (gain) loss | 225,315 | 319,817 |
Benefit payments | -478,454 | -2,017,995 |
Settlement (gain) loss | -7,278 | 171,377 |
Benefit obligation, end of year | 2,737,285 | 2,854,443 |
Other Postretirement Benefit Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Benefit obligation, beginning of year | 759,503 | 676,618 |
Service cost | 22,950 | 26,002 |
Interest cost | 29,906 | 29,957 |
Actuarial (gain) loss | -190,153 | 42,235 |
Benefit payments | -15,061 | -15,309 |
Benefit obligation, end of year | $607,145 | $759,503 |
Employee_Benefit_Plans_Change_1
Employee Benefit Plans - Change in Plan Assets (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Fair value of plan assets, end of year | $2,819,910 | $2,844,808 |
Pension Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Fair value of plan assets, beginning of year | 2,844,808 | 4,385,574 |
Actual return on plan assets | 453,556 | 477,229 |
Employer contributions | ' | ' |
Benefits payments | -478,454 | -2,017,995 |
Fair value of plan assets, end of year | 2,819,910 | 2,844,808 |
Other Postretirement Benefit Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Fair value of plan assets, beginning of year | ' | ' |
Employer contributions | 15,061 | 15,309 |
Benefits payments | -15,061 | -15,309 |
Fair value of plan assets, end of year | ' | ' |
Employee_Benefit_Plans_Defined
Employee Benefit Plans - Defined Benefit Plan (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Funded Status at the End of the Year | $82,625 | ($9,635) |
Other Postretirement Benefit Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Funded Status at the End of the Year | ($607,145) | ($759,503) |
Employee_Benefit_Plans_Amounts
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Income) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Net loss (gain) | $625,226 | $849,356 |
Prior service cost | ' | ' |
Amount recognized | 625,226 | 849,356 |
Other Postretirement Benefit Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Net loss (gain) | -47,038 | 147,611 |
Prior service cost | ' | ' |
Net obligation at transition | ' | 2,913 |
Amount recognized | ($47,038) | $150,524 |
Employee_Benefit_Plans_Compone
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Gain) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Service cost | ' | $254,285 |
Interest cost | 143,259 | 178,298 |
Expected (return) on plan assets | -214,661 | -321,864 |
Amortization of prior service cost | ' | -755,465 |
Recognized net loss due to settlement | 113,527 | 534,220 |
Recognized net actuarial loss | 89,745 | 71,440 |
Net periodic benefit cost (gain) | 131,870 | -39,086 |
Other Postretirement Benefit Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Service cost | 22,950 | 26,002 |
Interest cost | 29,906 | 29,957 |
Amortization of net obligation at transition | 2,913 | 2,913 |
Recognized net actuarial loss | 4,496 | 2,942 |
Net periodic benefit cost (gain) | $60,265 | $61,814 |
Employee_Benefit_Plans_Other_C
Employee Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) loss (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Net (gain) loss | ($224,130) | ($269,831) |
Amortization of prior service cost | ' | 755,465 |
Total recognized in other comprehensive (income)/loss | -224,130 | 485,634 |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Income)/loss | -92,260 | 446,548 |
Other Postretirement Benefit Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Net (gain) loss | -194,649 | 39,293 |
Amortization of net obligation at transition | -2,913 | -2,913 |
Total recognized in other comprehensive (income)/loss | -197,562 | 36,380 |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Income)/loss | ($137,297) | $98,194 |
Employee_Benefit_Plans_Weighte
Employee Benefit Plans - Weighted-average Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Discount rate used for Net Periodic Pension Cost | 4.00% | 4.50% |
Discount Rate used for Disclosure | 5.00% | 4.00% |
Expected return on plan assets | 8.00% | 8.00% |
Rate of compensation increase | ' | 3.00% |
Rate of compensation increase for net periodic pension cost | ' | 3.00% |
Expected future interest crediting rate | 3.00% | 3.00% |
Other Postretirement Benefit Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Discount rate used for Net Periodic Pension Cost | 4.00% | 4.50% |
Discount Rate used for Disclosure | 5.00% | 4.00% |
Employee_Benefit_Plans_Estimat
Employee Benefit Plans - Estimated Future Benefit Payments for Pension and Postretirement Plans (Detail) (USD $) | Dec. 31, 2013 |
Pension Plan, Defined Benefit | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
2014 | $42,037 |
2015 | 292,372 |
2016 | 51,523 |
2017 | 209,097 |
2018 | 41,286 |
2019 and thereafter | 1,631,170 |
Other Postretirement Benefit Plan, Defined Benefit | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
2014 | 20,136 |
2015 | 22,044 |
2016 | 23,291 |
2017 | 25,343 |
2018 | 27,135 |
2019 and thereafter | $172,514 |
Employee_Benefit_Plans_Fair_Va
Employee Benefit Plans - Fair Value of Pension Plan Assets by Asset Category (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | $2,819,910 | $2,844,808 |
Cash and Cash Equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 2,582 | -5,539 |
Fixed Income Funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 1,070,272 | 1,091,176 |
Equity Funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 1,747,056 | 1,759,171 |
Fair Value, Inputs, Level 1 | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 2,819,910 | 2,844,808 |
Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 2,582 | -5,539 |
Fair Value, Inputs, Level 1 | Fixed Income Funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 1,070,272 | 1,091,176 |
Fair Value, Inputs, Level 1 | Equity Funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 1,747,056 | 1,759,171 |
Fair Value, Inputs, Level 2 | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 2 | Cash and Cash Equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 2 | Fixed Income Funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 2 | Equity Funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 3 | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 3 | Cash and Cash Equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 3 | Fixed Income Funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 3 | Equity Funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Financial_Instruments_With_Off1
Financial Instruments With Off-Balance Sheet Risk - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loan Purchase Commitments | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Outstanding loan commitment under financial instrument off balance sheet risk | $37,300 | $30,500 |
Unused lines of Credit | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Outstanding loan commitment under financial instrument off balance sheet risk | $329 | $359 |
Restrictions_on_Cash_and_Due_F1
Restrictions on Cash and Due From Banks - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Federal Reserve | $25 | $25 |
Other_Borrowings_Additional_In
Other Borrowings - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term Debt [Line Items] | ' | ' |
Securities sold under agreements to repurchase, average rates | 0.19% | 0.26% |
Unused lines of credit | $15,000,000 | $15,000,000 |
Unused lines of Credit | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Unused lines of credit | $20,300,000 | $20,300,000 |
FHLB_Additional_Information_De
FHLB - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Advance on which FHLB holds an option to terminate | $10 | ' |
Advances, Variable rate description | 'Three month LIBOR-based floating rate advance | ' |
Interest rate LIBOR-based floating rate advance | 4.23% | ' |
Short-term advances from FHLB | 0 | 0 |
Lendable collateral value of 1 to 4 family residential real estate loans | 54.7 | ' |
Immediate available credit | 37.7 | ' |
Total line of credit | 66.8 | ' |
Available line of credit | 49.8 | ' |
FHLB | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Outstanding letters of credit | $2 | ' |
FHLB_Advances_of_FHLB_Detail
FHLB - Advances of FHLB (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Adjustable Rate Hybrid | Fixed Rate Hybrid | |||
Debt Instrument [Line Items] | ' | ' | ' | ' |
Federal Home Loan Bank advances | $15,000,000 | $15,000,000 | $10,000,000 | $5,000,000 |
Originated | ' | ' | 12-Apr-13 | 20-May-11 |
Current Interest Rate | ' | ' | 2.38% | 2.69% |
Maturity Date | ' | ' | 13-Apr-20 | 20-May-14 |
Income_Taxes_Expense_Benefit_f
Income Taxes - Expense (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Expenses [Line Items] | ' | ' |
Current | $139,822 | $253,421 |
Deferred | 259,307 | -42,949 |
Income Tax Expense (Benefit), Total | $399,129 | $210,472 |
Income_Taxes_Summary_of_Reason
Income Taxes - Summary of Reasons for Differences Between Statutory Federal Income Tax Rates and Effective Tax Rates (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of Statutory Federal Tax Rate [Line Items] | ' | ' |
Statutory rate | 34.00% | 34.00% |
Increase (decrease) resulting from: | ' | ' |
Tax exempt interest | -8.50% | -12.80% |
Bank owned life insurance | -2.70% | ' |
Other, net | 1.80% | 2.00% |
Effective Income Tax Rate, Total | 24.60% | 23.20% |
Income_Taxes_Components_of_Net
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets | ' | ' |
Allowance for loan losses | $631,641 | $747,792 |
Interest on non-accrual loans | 40,495 | 120,356 |
Mortgage servicing rights | 196,909 | ' |
Other real estate | 476,496 | 236,610 |
Pension plan | ' | 3,276 |
Postretirement benefits | 206,429 | 258,231 |
Deferred compensation | 113,712 | 84,879 |
Stock-based compensation | 18,301 | 10,215 |
Alternative minimum tax credit | 96,428 | 174,997 |
Unrealized losses on available-for-sale securities | 407,964 | ' |
Other | 2,913 | 272,942 |
Total deferred tax assets | 2,191,288 | 1,909,298 |
Deferred tax liabilities | ' | ' |
Unrealized gains on available-for-sale securities | ' | -143,828 |
Pension plan | -27,120 | ' |
Depreciation | -276,066 | -305,010 |
Amortization of goodwill | -896,451 | -860,950 |
Net deferred loan fees and costs | -171,882 | -238,732 |
Other | -63,925 | -63,591 |
Total deferred tax (liabilities) | -1,435,444 | -1,612,111 |
Net deferred tax assets | $755,844 | $297,187 |
Regulatory_Requirements_and_Re2
Regulatory Requirements and Restrictions - Schedule of Bank's Actual Capital Amounts and Ratios (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Consolidated Entities | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | $39,322 | $37,787 |
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 16.38% | 17.09% |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | 19,211 | 17,689 |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ' | ' |
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ' | ' |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 36,397 | 35,019 |
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 15.16% | 15.84% |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | 9,605 | 8,845 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ' | ' |
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ' | ' |
Tier 1 Capital (to Average Assets), Actual Amount | 36,397 | 35,019 |
Tier 1 Capital (to Average Assets), Actual Ratio | 10.93% | 10.93% |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Amount | 13,319 | 12,812 |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ' | ' |
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ' | ' |
Subsidiaries | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | 33,419 | 31,514 |
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 14.01% | 14.08% |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | 19,089 | 17,900 |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 23,861 | 22,374 |
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 30,494 | 28,714 |
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 12.78% | 12.83% |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | 9,545 | 8,950 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 14,317 | 13,425 |
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets), Actual Amount | 30,494 | 28,714 |
Tier 1 Capital (to Average Assets), Actual Ratio | 9.20% | 9.00% |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Amount | 13,259 | 12,763 |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $16,573 | $15,954 |
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Employee_Stock_Ownership_Plan_
Employee Stock Ownership Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Age | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Noncontributory employee stock ownership plan, service period eligibility | '12 months | ' |
Noncontributory employee stock ownership plan, age eligibility | 21 | ' |
Allocations, as a percentage of eligible participant compensation | 25.00% | ' |
Participant accounts vested after two years | 30.00% | ' |
Participant accounts vested after three years | 40.00% | ' |
Participant accounts vested each year, from fourth year till 100% vested | 20.00% | ' |
Participant accounts, total vested | 100.00% | ' |
Allocated shares | 141,586 | ' |
Contributions to the plan | $0 | $0 |
Dividends on the company's stock held by the ESOP | $0 | $0 |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Feb. 21, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Stock-based compensation expense | $36,750 | $122,429 | $2,924 |
Additional options granted under plan | ' | 89,500 | ' |
Expected life | ' | '5 years | ' |
Unrecognized compensation expenses related to stock options | ' | $1.08 | ' |
Historical dividend yield | ' | 3.60% | ' |
Expected stock price volatility | ' | 33.80% | ' |
Risk-free interest rate | ' | 0.86% | ' |
Stock price volatility, risk free interest period | ' | '5 years | ' |
Officers | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Additional options granted under plan | 7,000 | ' | ' |
2003 Incentive Stock Option Plan | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Shares available for grant | ' | 385,000 | ' |
Number of stock-based compensation plans | ' | ' | 4 |
Number of stock-based compensation plans expired | ' | ' | 2 |
Unrecognized compensation expense related to stock options | ' | $0 | ' |
2008 Non Employee Directors Stock Option Plan | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Additional options granted under plan | ' | 89,500 | 0 |
Options vested | ' | 89,500 | ' |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans - Summary of Stock Option Plan Activity (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Options outstanding, beginning | 120,617 | 197,423 | ' | ||
Granted, shares | 89,500 | ' | ' | ||
Forfeited, shares | -11,519 | -59,584 | ' | ||
Exercised, shares | ' | ' | ' | ||
Expired, shares | -7,596 | -17,222 | ' | ||
Options outstanding, ending | 191,002 | 120,617 | 197,423 | ||
Options outstanding, beginning, Weighted Average Exercise Price | $9.51 | $10 | ' | ||
Options exercisable, ending | 191,002 | ' | ' | ||
Granted, Weighted Average Exercise Price | $5.25 | ' | ' | ||
Forfeited, Weighted Average Exercise Price | $9.42 | $9.45 | ' | ||
Exercised, Weighted Average Exercise Price | ' | ' | ' | ||
Expired, Weighted Average Exercise Price | $13.80 | $15.34 | ' | ||
Options outstanding, ending, Weighted Average Exercise Price | $7.35 | $9.51 | $10 | ||
Options exercisable, ending, Weighted Average Exercise Price | $7.35 | ' | ' | ||
Options outstanding, ending, Weighted Average Remaining Contractual Life | '6 years 9 months 18 days | '5 years 4 months 24 days | '5 years 9 months 18 days | ||
Options exercisable, ending, Weighted Average Remaining Contractual Life | '6 years 9 months 18 days | ' | ' | ||
Options outstanding, ending, Aggregate Intrinsic Value | $14,146 | [1] | $6,750 | [1] | ' |
Options exercisable, ending, Aggregate Intrinsic Value | $14,146 | [1] | ' | ' | |
[1] | The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2013. This amount changes based on changes in the market value of the Company's common stock. |
Earnings_per_share_Weighted_Av
Earnings per share - Weighted Average Number of Shares Used in Computing Earnings Per Share (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Basic earnings per share | 4,816,859 | 2,610,856 |
Effect of dilutive securities: | ' | ' |
Stock options | 2,484 | 1,931 |
Diluted earnings per share | 4,819,343 | 2,612,787 |
Basic earnings per share | $0.25 | $0.27 |
Diluted earnings per share | $0.25 | $0.27 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Computation Of Earnings Per Share Line Items | ' | ' |
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 167,762 | 110,117 |
Related_Parties_Additional_Inf
Related Parties - Additional Information (Detail) (key Employees, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
key Employees | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Loans and Leases Receivable Related Parties | $2,606,036 | $2,236,794 |
Unfunded commitments to extend credit and related interest | 2,032,041 | 1,550,188 |
Aggregate amount of deposit accounts | $427,541 | $666,510 |
Related_Parties_Related_Partie
Related Parties - Related Parties (Detail) (key Employees, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
key Employees | ' |
Related Party Transaction [Line Items] | ' |
Beginning Balance | $2,236,794 |
New loans and extensions to existing loans | 1,021,204 |
Repayments and other reductions | -651,962 |
Ending Balance | $2,606,036 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Securities available for sale: | ' | ' |
Securities available-for-sale | $38,521,996 | $36,700,520 |
Mortgage servicing rights | 579,145 | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 2,819,910 | 2,844,808 |
US Government Agencies | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | 9,308,069 | 9,463,815 |
State and Municipal Obligations | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | 26,556,888 | 23,849,528 |
Certificates of Deposit | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | 1,745,039 | 1,987,177 |
Auction Rate Security | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | 912,000 | 1,400,000 |
Cash and Cash Equivalents | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 2,582 | -5,539 |
Fixed Income Funds | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 1,070,272 | 1,091,176 |
Equity Funds | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 1,747,056 | 1,759,171 |
Fair Value, Inputs, Level 1 | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | ' | ' |
Mortgage servicing rights | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 2,819,910 | 2,844,808 |
Fair Value, Inputs, Level 1 | US Government Agencies | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | ' | ' |
Fair Value, Inputs, Level 1 | State and Municipal Obligations | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | ' | ' |
Fair Value, Inputs, Level 1 | Certificates of Deposit | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | ' | ' |
Fair Value, Inputs, Level 1 | Auction Rate Security | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | ' | ' |
Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 2,582 | -5,539 |
Fair Value, Inputs, Level 1 | Fixed Income Funds | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 1,070,272 | 1,091,176 |
Fair Value, Inputs, Level 1 | Equity Funds | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | 1,747,056 | 1,759,171 |
Fair Value, Inputs, Level 2 | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | 37,609,996 | 35,300,520 |
Mortgage servicing rights | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 2 | US Government Agencies | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | 9,308,069 | 9,463,815 |
Fair Value, Inputs, Level 2 | State and Municipal Obligations | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | 26,556,888 | 23,849,528 |
Fair Value, Inputs, Level 2 | Certificates of Deposit | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | 1,745,039 | 1,987,177 |
Fair Value, Inputs, Level 2 | Cash and Cash Equivalents | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 2 | Fixed Income Funds | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 2 | Equity Funds | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 3 | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | 912,000 | 1,400,000 |
Mortgage servicing rights | 579,145 | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 3 | US Government Agencies | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | ' | ' |
Fair Value, Inputs, Level 3 | State and Municipal Obligations | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | ' | ' |
Fair Value, Inputs, Level 3 | Certificates of Deposit | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | ' | ' |
Fair Value, Inputs, Level 3 | Auction Rate Security | ' | ' |
Securities available for sale: | ' | ' |
Securities available-for-sale | 912,000 | 1,400,000 |
Fair Value, Inputs, Level 3 | Cash and Cash Equivalents | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 3 | Fixed Income Funds | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair Value, Inputs, Level 3 | Equity Funds | ' | ' |
Defined benefit plan assets: | ' | ' |
Defined Benefit Plan Fair Value Of Plan Assets | ' | ' |
Fair_Value_Measurements_Reconc
Fair Value Measurements - Reconciliation of Items Using Level Three Inputs (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Auction Rate Security | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Beginning balance | $1,400,000 |
Impairments | -288,000 |
Redemptions and sales | -200,000 |
Ending balance | 912,000 |
Mortgage Servicing Rights | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Fair value adjustments | 579,145 |
Ending balance | $579,145 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans, net | $2,077,780 | $3,308,074 |
Other real estate owned, net | 3,896,987 | 3,151,346 |
Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans, net | ' | ' |
Other real estate owned, net | ' | ' |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans, net | ' | ' |
Other real estate owned, net | ' | ' |
Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans, net | 2,077,780 | 3,308,074 |
Other real estate owned, net | $3,896,987 | $3,151,346 |
Fair_Value_Measurements_Summar1
Fair Value Measurements - Summary of Quantitative Fair Value Measurements for Level 3 (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Impaired loans, net | 2,077,780 | 3,308,074 |
Other real estate owned, net | 3,896,987 | 3,151,346 |
Impaired Loans | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Impaired loans, net | 2,077,780 | 3,308,074 |
Other Real Estate Owned | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Other real estate owned, net | 3,896,987 | 3,151,346 |
Minimum | Impaired Loans | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Unobservable Input, Selling Cost | 10.00% | 0.00% |
Unobservable Input, Lack of Marketability | 25.00% | 10.00% |
Minimum | Other Real Estate Owned | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Unobservable Input, Selling Cost | 3.00% | 6.00% |
Unobservable Input, Lack of Marketability | 7.00% | 10.00% |
Maximum | Impaired Loans | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Unobservable Input, Selling Cost | 20.00% | 20.00% |
Unobservable Input, Lack of Marketability | 100.00% | 100.00% |
Maximum | Other Real Estate Owned | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Unobservable Input, Selling Cost | 13.00% | 13.00% |
Unobservable Input, Lack of Marketability | 30.00% | 20.00% |
Weighted Average | Impaired Loans | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Unobservable Input, Selling Cost | 10.00% | 11.00% |
Unobservable Input, Lack of Marketability | 54.00% | 27.00% |
Weighted Average | Other Real Estate Owned | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Unobservable Input, Selling Cost | 6.00% | 6.00% |
Unobservable Input, Lack of Marketability | 15.00% | 16.00% |
Fair_Value_Measurements_Estima
Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Assets: | ' | ' |
Cash and due from banks | $6,788,689 | $4,757,889 |
Interest-bearing deposits | 8,900,190 | 35,166,448 |
Federal funds sold | 120,029 | 48,009 |
Securities available-for-sale | 38,521,996 | 36,700,520 |
Restricted securities | 1,638,350 | 1,584,700 |
Loans, net | 247,911,646 | 235,746,026 |
Loans held for sale | 195,850 | 398,500 |
Accrued interest receivable | 1,123,865 | 1,070,763 |
Mortgage servicing rights | 579,145 | ' |
Financial Liabilities: | ' | ' |
Non-interest-bearing liabilities | 57,804,547 | 50,467,907 |
Savings and other interest-bearing deposits | 114,056,155 | 117,954,879 |
Time deposits | 96,485,619 | 106,751,785 |
Securities sold under repurchase agreements | 9,118,382 | 6,459,839 |
FHLB advances | 15,000,000 | 15,000,000 |
Accrued interest payable | 166,865 | 156,812 |
Fair Value, Inputs, Level 1 | ' | ' |
Financial Assets: | ' | ' |
Cash and due from banks | 6,788,689 | 4,757,889 |
Interest-bearing deposits | 8,900,190 | 35,166,448 |
Federal funds sold | 120,029 | 48,009 |
Securities available-for-sale | ' | ' |
Restricted securities | ' | ' |
Loans, net | ' | ' |
Loans held for sale | ' | ' |
Accrued interest receivable | ' | ' |
Mortgage servicing rights | ' | ' |
Financial Liabilities: | ' | ' |
Non-interest-bearing liabilities | 57,804,547 | 50,467,907 |
Savings and other interest-bearing deposits | ' | ' |
Time deposits | ' | ' |
Securities sold under repurchase agreements | ' | ' |
FHLB advances | ' | ' |
Accrued interest payable | ' | ' |
Fair Value, Inputs, Level 2 | ' | ' |
Financial Assets: | ' | ' |
Cash and due from banks | ' | ' |
Interest-bearing deposits | ' | ' |
Federal funds sold | ' | ' |
Securities available-for-sale | 37,609,996 | 35,300,520 |
Restricted securities | ' | ' |
Loans, net | ' | ' |
Loans held for sale | ' | ' |
Accrued interest receivable | 1,123,865 | 1,070,763 |
Mortgage servicing rights | ' | ' |
Financial Liabilities: | ' | ' |
Non-interest-bearing liabilities | ' | ' |
Savings and other interest-bearing deposits | 114,056,155 | 117,954,879 |
Time deposits | ' | ' |
Securities sold under repurchase agreements | 9,118,382 | 6,459,839 |
FHLB advances | 15,923,202 | 16,483,342 |
Accrued interest payable | 166,865 | 156,812 |
Fair Value, Inputs, Level 3 | ' | ' |
Financial Assets: | ' | ' |
Cash and due from banks | ' | ' |
Interest-bearing deposits | ' | ' |
Federal funds sold | ' | ' |
Securities available-for-sale | 912,000 | 1,400,000 |
Restricted securities | 1,638,350 | 1,584,700 |
Loans, net | 253,139,150 | 244,310,321 |
Loans held for sale | 195,850 | 398,500 |
Accrued interest receivable | ' | ' |
Mortgage servicing rights | 579,145 | ' |
Financial Liabilities: | ' | ' |
Non-interest-bearing liabilities | ' | ' |
Savings and other interest-bearing deposits | ' | ' |
Time deposits | 98,049,000 | 109,449,974 |
Securities sold under repurchase agreements | ' | ' |
FHLB advances | ' | ' |
Accrued interest payable | ' | ' |
Condensed_Financial_Informatio2
Condensed Financial Information of Parent Company - Condensed Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
ASSETS | ' | ' | ' |
Premises and equipment, net | $10,620,542 | $11,611,688 | ' |
Other assets | 2,900,651 | 1,753,945 | ' |
Total assets | 331,135,063 | 334,797,676 | ' |
Liabilities | ' | ' | ' |
Other liabilities | 1,533,861 | 1,578,295 | ' |
Total liabilities | 293,998,564 | 298,212,705 | ' |
Total shareholders' equity | 37,136,499 | 36,584,971 | ' |
Total liabilities and shareholders' equity | 331,135,063 | 334,797,676 | ' |
Parent Company | ' | ' | ' |
ASSETS | ' | ' | ' |
Cash and due from banks | 3,883,856 | 9,053,069 | 63,129 |
Investments in subsidiaries | 32,456,157 | 31,324,616 | ' |
Premises and equipment, net | 576 | 1,168 | ' |
Other assets | 1,266,222 | 274,226 | ' |
Total assets | 37,606,811 | 40,653,079 | ' |
Liabilities | ' | ' | ' |
Deferred directors' compensation | 336,630 | 249,645 | ' |
Other liabilities | 133,682 | 3,818,463 | ' |
Total liabilities | 470,312 | 4,068,108 | ' |
Total shareholders' equity | 37,136,499 | 36,584,971 | ' |
Total liabilities and shareholders' equity | $37,606,811 | $40,653,079 | ' |
Condensed_Financial_Informatio3
Condensed Financial Information of Parent Company - Condensed Income Statements (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Non-interest income | $4,725,853 | $4,492,418 |
Non-interest expense | 12,942,807 | 12,143,434 |
Income tax (benefit) expense | 399,129 | 210,472 |
Net income | 1,221,906 | 697,762 |
Parent Company | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Non-interest income | 599,677 | 730,940 |
Non-interest expense | 828,678 | 634,593 |
(Loss) income before income taxes and equity in undistributed earnings of subsidiaries | -229,001 | 96,347 |
Income tax (benefit) expense | -26,560 | 22,145 |
(Loss) income before equity in undistributed earnings of subsidiaries | -202,441 | 74,202 |
Equity in undistributed earnings of subsidiaries | 1,424,347 | 623,560 |
Net income | $1,221,906 | $697,762 |
Condensed_Financial_Informatio4
Condensed Financial Information of Parent Company - Condensed Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities: | ' | ' |
Net income | $1,221,906 | $697,762 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Stock-based compensation | 122,429 | 2,924 |
(Decrease) increase in other liabilities | 377,258 | 320,691 |
Net cash (used in) provided by operating activities | 3,731,861 | 3,046,620 |
Cash Flows from Investing Activities: | ' | ' |
Purchase of other assets | -771,000 | ' |
Net cash (used in) provided by investing activities | -23,797,612 | 2,245,034 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from issuance of common stock | ' | 8,695,566 |
Net cash (used in) provided by financing activities | -4,169,707 | 19,534,713 |
Net (decrease) increase in cash and due from banks | -24,235,458 | 24,826,367 |
Parent Company | ' | ' |
Cash Flows from Operating Activities: | ' | ' |
Net income | 1,221,906 | 697,762 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 592 | 592 |
Stock-based compensation | 122,429 | 2,924 |
Equity in undistributed earnings of subsidiaries | -1,424,347 | -623,560 |
(Increase) decrease in other assets | -185,804 | 42,737 |
Net change in deferred directors' compensation | 86,985 | 38,672 |
(Decrease) increase in other liabilities | -3,719,974 | 3,650,247 |
Net cash (used in) provided by operating activities | -3,898,213 | 3,809,374 |
Cash Flows from Investing Activities: | ' | ' |
Purchase of other assets | -771,000 | ' |
Investment in subsidiaries | -500,000 | -3,515,000 |
Net cash (used in) provided by investing activities | -1,271,000 | -3,515,000 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from issuance of common stock | ' | 8,695,566 |
Net cash (used in) provided by financing activities | ' | 8,695,566 |
Net (decrease) increase in cash and due from banks | -5,169,213 | 8,989,941 |
Cash and due from banks at January 1 | 9,053,069 | 63,129 |
Cash and due from banks at December 31 | $3,883,856 | $9,053,069 |
Common_Stock_Offering_Addition
Common Stock Offering - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Subsidiary, Sale of Stock [Line Items] | ' |
Net proceeds from common stock | $8,695,566 |
Expenses for issuance of stock | $654,434 |
Private Placement | ' |
Subsidiary, Sale of Stock [Line Items] | ' |
Common stock sold | 2,200,000 |
Common stock at purchase price | $4.25 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Balances in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Beginning balance | ($380,726) | $445,000 |
Change in net unrealized holding gains (losses) on securities, before reclassification, net of tax expense (benefit) | -1,068,000 | 151,000 |
Reclassification for previously unrealized net (gains) recognized in income, net of tax benefit | -3,000 | -632,000 |
Net periodic pension cost, net of tax benefit | ' | -498,000 |
Net gain (loss) on pension and postretirement plans, net of tax expense | 276,000 | 152,000 |
Net postretirement plan transition cost, net of tax expense | 2,000 | 1,000 |
Ending Balance | -1,173,533 | -380,726 |
Holding gains (losses) on securities | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Beginning balance | 280,000 | 761,000 |
Change in net unrealized holding gains (losses) on securities, before reclassification, net of tax expense (benefit) | -1,068,000 | 151,000 |
Reclassification for previously unrealized net (gains) recognized in income, net of tax benefit | -3,000 | -632,000 |
Ending Balance | -791,000 | 280,000 |
Pension and Post employment costs | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Beginning balance | -661,000 | -316,000 |
Net periodic pension cost, net of tax benefit | ' | -498,000 |
Net gain (loss) on pension and postretirement plans, net of tax expense | 276,000 | 152,000 |
Net postretirement plan transition cost, net of tax expense | 2,000 | 1,000 |
Ending Balance | ($383,000) | ($661,000) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Balances in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Unrealized holding gains arising during the period, tax | ($550,331) | $77,574 |
Reclassification for previously unrealized net (gains) recognized in income, tax benefit | 1,460 | 325,638 |
Net periodic pension cost, tax benefit | ' | 257,000 |
Net gain (loss) pension and postretirement plans, tax expense | 143,000 | 77,574 |
Net postretirement plan transition cost, tax expense | 1,000 | 1,000 |
Holding gains (losses) on securities | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Unrealized holding gains arising during the period, tax | -550,331 | 77,574 |
Reclassification for previously unrealized net (gains) recognized in income, tax benefit | 1,460 | 325,638 |
Pension and Post employment costs | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Net periodic pension cost, tax benefit | ' | 257,000 |
Net gain (loss) pension and postretirement plans, tax expense | 143,000 | 77,574 |
Net postretirement plan transition cost, tax expense | $1,000 | $1,000 |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income - Reclassification of Unrealized Gains and Impairments on Securities and Pension and Postemployment Related Costs (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Net gains on sale of securities available-for-securities | $283,706 | $957,760 |
Loss on security with other-than-temporary impairment | -288,000 | ' |
Salaries and employee benefits | -6,413,632 | -5,702,656 |
Tax (expense) benefit | -399,129 | -210,472 |
Reclassification out of Accumulated Other Comprehensive Income | Holding gains (losses) on securities | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Net gains on sale of securities available-for-securities | 284,000 | -957,000 |
Loss on security with other-than-temporary impairment | -288,000 | ' |
Tax (expense) benefit | 1,000 | 325,000 |
Impact on net income | -3,000 | -632,000 |
Reclassification out of Accumulated Other Comprehensive Income | Pension and Post employment costs | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Salaries and employee benefits | 422,000 | -523,000 |
Tax (expense) benefit | -144,000 | 178,000 |
Impact on net income | $278,000 | ($345,000) |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | |
Auction Rate Security | Auction Rate Security | Subsequent Event | ||
Auction Rate Security | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Face amount of security sold | ' | ' | $1,200,000 | $1,200,000 |
Percentage of security sold against face value | ' | ' | ' | 76.00% |
Loss on securities with other-than-temporary impairment | $288,000 | $168,000 | $120,000 | ' |