Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 07, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'BAYK | ' |
Entity Registrant Name | 'BAY BANKS OF VIRGINIA INC | ' |
Entity Central Index Key | '0001034594 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 4,818,733 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | |
Cash and due from banks | $6,793 | $6,789 | [1] |
Interest-bearing deposits held in other banks | 10,819 | 8,900 | [1] |
Federal funds sold | 204 | 120 | [1] |
Securities available for sale, at fair value | 36,826 | 38,522 | [1] |
Restricted securities at cost | 1,980 | 1,638 | [1] |
Loans receivable, net of allowance for loan losses of $2,973 and $2,925, respectively | 256,345 | 247,912 | [1] |
Loans held for sale | 390 | 196 | [1] |
Premises and equipment, net | 10,663 | 10,620 | [1] |
Accrued interest receivable | 1,112 | 1,124 | [1] |
Other real estate owned, net | 2,899 | 3,897 | [1] |
Bank owned life insurance | 7,221 | 5,129 | [1] |
Goodwill | 2,808 | 2,808 | [1] |
Mortgage servicing rights | 582 | 579 | [1] |
Other assets | 2,514 | 2,901 | [1] |
Total assets | 341,156 | 331,135 | [1] |
LIABILITIES | ' | ' | |
Noninterest-bearing deposits | 58,813 | 57,805 | [1] |
Savings and interest-bearing demand deposits | 113,403 | 114,056 | [1] |
Time deposits | 94,870 | 96,486 | [1] |
Total deposits | 267,086 | 268,347 | [1] |
Securities sold under repurchase agreements | 8,990 | 9,118 | [1] |
Federal Home Loan Bank advances | 25,000 | 15,000 | [1] |
Other liabilities | 1,648 | 1,534 | [1] |
Total liabilities | 302,724 | 293,999 | [1] |
SHAREHOLDERS' EQUITY | ' | ' | |
Common stock ($5 par value; authorized - 10,000,000 shares; outstanding - 4,818,733 and 4,817,856 shares, respectively) | 24,094 | 24,089 | [1] |
Additional paid-in capital | 2,772 | 2,757 | [1] |
Retained earnings | 12,183 | 11,463 | [1] |
Accumulated other comprehensive loss, net | -617 | -1,173 | [1] |
Total shareholders' equity | 38,432 | 37,136 | [1] |
Total liabilities and shareholders' equity | $341,156 | $331,135 | [1] |
[1] | Derived from the audited consolidated financial statements. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, except Share data, unless otherwise specified | |||
Loans, allowance for loan losses | $2,973 | $2,925 | [1] |
Common stock, par value | $5 | $5 | [1] |
Common stock, authorized shares | 10,000,000 | 10,000,000 | [1] |
Common stock, outstanding shares | 4,818,733 | 4,817,856 | [1] |
[1] | Derived from the audited consolidated financial statements. |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
INTEREST INCOME | ' | ' | ' | ' |
Loans, including fees | $3,279 | $3,135 | $6,440 | $6,289 |
Securities: | ' | ' | ' | ' |
Taxable | 85 | 118 | 179 | 241 |
Tax-exempt | 96 | 69 | 194 | 125 |
Interest-bearing deposit accounts | 4 | 17 | 8 | 36 |
Total interest income | 3,464 | 3,339 | 6,821 | 6,691 |
INTEREST EXPENSE | ' | ' | ' | ' |
Deposits | 449 | 601 | 907 | 1,231 |
Federal funds purchased | 1 | ' | 1 | ' |
Securities sold under repurchase agreements | 2 | 6 | 4 | 10 |
FHLB advances | 85 | 106 | 185 | 245 |
Total interest expense | 537 | 713 | 1,097 | 1,486 |
Net interest income | 2,927 | 2,626 | 5,724 | 5,205 |
Provision for loan losses | 97 | 179 | 262 | 262 |
Net interest income after provision for loan losses | 2,830 | 2,447 | 5,462 | 4,943 |
NON-INTEREST INCOME | ' | ' | ' | ' |
Income from fiduciary activities | 175 | 162 | 387 | 327 |
Service charges and fees on deposit accounts | 244 | 266 | 487 | 541 |
VISA-related fees | 61 | 226 | 150 | 406 |
Other service charges and fees | 267 | 242 | 507 | 475 |
Secondary market lending fees | 68 | 168 | 179 | 301 |
Increase in cash surrender value of life insurance | 44 | 35 | 91 | 35 |
Net (losses) gains on sale of securities available for sale | -16 | 268 | -17 | 271 |
Loss on securities with other-than-temporary impairment | ' | -168 | ' | -168 |
Portion of loss recognized in other comprehensive income | ' | 48 | ' | 48 |
Net impairment recognized in income | ' | -120 | ' | -120 |
Losses on real estate owned | -249 | -240 | -219 | -254 |
Net gains on the sale of fixed assets | ' | ' | 138 | ' |
Other income | 30 | 15 | 34 | 26 |
Total non-interest income | 624 | 1,022 | 1,737 | 2,008 |
NON-INTEREST EXPENSES | ' | ' | ' | ' |
Salaries and employee benefits | 1,597 | 1,607 | 3,184 | 3,338 |
Occupancy expense | 354 | 319 | 712 | 661 |
Software maintenance | 137 | 129 | 275 | 257 |
Bank franchise tax | 47 | 44 | 94 | 88 |
VISA expense | 38 | 191 | 108 | 345 |
Telephone expense | 52 | 53 | 108 | 102 |
FDIC assessments | 72 | 101 | 138 | 205 |
Foreclosure property expense | 28 | 38 | 59 | 61 |
Consulting expense | 70 | 21 | 169 | 44 |
Other expense | 772 | 675 | 1,428 | 1,346 |
Total non-interest expenses | 3,167 | 3,178 | 6,275 | 6,447 |
Net income before income taxes | 287 | 291 | 924 | 504 |
Income tax expense | 27 | 59 | 204 | 132 |
Net income | $260 | $232 | $720 | $372 |
Basic Earnings Per Share | ' | ' | ' | ' |
Average basic shares outstanding | 4,818,733 | 4,817,856 | 4,818,311 | 4,815,845 |
Earnings per share, basic | $0.05 | $0.05 | $0.15 | $0.08 |
Diluted Earnings Per Share | ' | ' | ' | ' |
Average diluted shares outstanding | 4,836,783 | 4,820,014 | 4,832,416 | 4,818,258 |
Earnings per share, diluted | $0.05 | $0.05 | $0.15 | $0.08 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net income | $260 | $232 | $720 | $372 |
Unrealized gains (losses) on securities: | ' | ' | ' | ' |
Unrealized holding gains (losses) arising during the period | 335 | -1,243 | 825 | -1,316 |
Deferred tax (expense) benefit | -112 | 423 | -280 | 448 |
Reclassification of net securities losses (gains) and impairments recognized in net income | 16 | -148 | 17 | -151 |
Deferred tax (expense) benefit | -6 | 50 | -6 | 51 |
Unrealized gains (losses) adjustment, net of tax | 233 | -918 | 556 | -968 |
Defined benefit pension plan: | ' | ' | ' | ' |
Total other comprehensive income (loss) | 233 | -918 | 556 | -968 |
Comprehensive income (loss) | 493 | -686 | 1,276 | -596 |
Pension Plan, Defined Benefit | ' | ' | ' | ' |
Defined benefit pension plan: | ' | ' | ' | ' |
Net periodic cost | -5 | 22 | -11 | 45 |
Net gain (loss) | 5 | -22 | 11 | -45 |
Defined benefit pension plan adjustment, net of tax | 0 | 0 | 0 | 0 |
Other Postretirement Benefit Plan, Defined Benefit | ' | ' | ' | ' |
Defined benefit pension plan: | ' | ' | ' | ' |
Net periodic cost | 12 | 1 | 23 | 2 |
Net gain (loss) | -12 | -1 | -23 | -2 |
Defined benefit pension plan adjustment, net of tax | $0 | $0 | $0 | $0 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |
In Thousands, except Share data | ||||||
Balance at beginning of period at Dec. 31, 2013 | $37,136 | [1] | $24,089 | $2,757 | $11,463 | ($1,173) |
Balance at beginning of period, Shares at Dec. 31, 2013 | 4,817,856 | [1] | 4,817,856 | ' | ' | ' |
Net income | 720 | ' | ' | 720 | ' | |
Other comprehensive income | 556 | ' | ' | ' | 556 | |
Stock-based compensation expense | 20 | 5 | 15 | ' | ' | |
Stock-based compensation, Shares | ' | 877 | ' | ' | ' | |
Balance at end of period at Jun. 30, 2014 | $38,432 | $24,094 | $2,772 | $12,183 | ($617) | |
Balance at end of period, Shares at Jun. 30, 2014 | 4,818,733 | 4,818,733 | ' | ' | ' | |
[1] | Derived from the audited consolidated financial statements. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flows From Operating Activities | ' | ' |
Net income | $720 | $372 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 377 | 380 |
Net amortization and accretion of securities | 200 | 197 |
Provision for loan losses | 262 | 262 |
Stock compensation expense | 20 | 126 |
Deferred income tax benefit | ' | -7 |
Loss (gain) on sale of securities available-for-sale | 17 | -271 |
Other-than-temporary impairment on securities available-for-sale | ' | 120 |
Increase in other real estate owned valuation allowance | 127 | 16 |
Loss on sale of other real estate owned | 92 | 238 |
Gain on disposal of former branch | -138 | ' |
Change in fair value of mortgage servicing rights | -3 | ' |
Loan originations for sale to FNMA | -4,361 | -14,597 |
Loan sales to FNMA | 4,263 | 14,545 |
Gain on loans sold to FNMA | -96 | -240 |
Increase in cash surrender value of bank owned life insurance | -91 | ' |
Decrease (increase) in accrued income and other assets | 185 | -398 |
(Decrease) increase in other liabilities | -176 | 552 |
Net cash provided by operating activities | 1,398 | 1,295 |
Cash Flows From Investing Activities | ' | ' |
Proceeds from maturities and principal paydowns of available-for-sale securities | 1,741 | 1,971 |
Proceeds from sales and calls of available-for-sale securities | 3,331 | 8,260 |
Purchase of bank owned life insurance | -2,001 | -5,000 |
Purchases of available-for-sale securities | -2,751 | -15,094 |
Purchases of restricted securities | -342 | -39 |
Increase in federal funds sold | -84 | -256 |
Loan (originations) and principal collections, net | -8,287 | 2,981 |
Proceeds from sale of other real estate | 371 | 887 |
Purchases of premises and equipment | -375 | -258 |
Proceeds from the sale of premises and equipment | 311 | ' |
Net cash used in investing activities | -8,086 | -6,548 |
Cash Flows From Financing Activities | ' | ' |
Increase in demand, savings, and other interest-bearing deposits | 355 | 688 |
Net decrease in time deposits | -1,616 | -4,688 |
Net (decrease) increase in securities sold under repurchase agreements | -128 | 4,896 |
Increase in Federal Home Loan Bank advances | 10,000 | ' |
Net cash provided by financing activities | 8,611 | 896 |
Net increase (decrease) in cash and due from banks | 1,923 | -4,357 |
Cash and due from banks at beginning of period | 15,689 | 39,924 |
Cash and due from banks at end of period | 17,612 | 35,567 |
Cash paid for: | ' | ' |
Interest | 1,109 | 1,466 |
Income taxes | 341 | 211 |
Non-cash investing and financing: | ' | ' |
Unrealized gain (loss) on investment securities | 825 | -1,467 |
Change in fair value of pension and post-retirement obligation | 0 | 0 |
Loans transferred to other real estate owned | 197 | 1,326 |
Loans originated to facilitate sale of OREO | 605 | 204 |
Changes in deferred taxes resulting from other comprehensive income transactions | $286 | $498 |
General
General | 6 Months Ended | |
Jun. 30, 2014 | ||
General | ' | |
Note 1: | General | |
Bay Banks of Virginia, Inc. (the “Company”) owns 100% of the Bank of Lancaster (the “Bank”), 100% of Bay Trust Company, Inc. (the “Trust Company”) and 100% of Steptoes Holdings, LLC (“Steptoes Holdings”). The consolidated financial statements include the accounts of the Bank, the Trust Company, Steptoes Holdings and Bay Banks of Virginia, Inc. | ||
The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and to the general practices within the banking industry. In management’s opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of the consolidated financial statements, have been included. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year or for any other interim periods. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||
Certain amounts presented 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 | 6 Months Ended | |
Jun. 30, 2014 | ||
Significant Accounting Policies | ' | |
Note 2: | Significant Accounting Policies | |
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 over the contractual term of the loan, adjusted for early pay-offs, where applicable. | ||
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. | ||
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 homogenous 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 troubled debt restructurings (“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. |
Amendments_to_the_Accounting_S
Amendments to the Accounting Standards Codification | 6 Months Ended | |
Jun. 30, 2014 | ||
Amendments to the Accounting Standards Codification | ' | |
Note 3: | Amendments to the Accounting Standards Codification | |
In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 Company adopted the new guidance during the first quarter of 2014. The adoption did not have a material impact on the Company’s consolidated financial statements. Disclosures are included in Note 6. |
Securities
Securities | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Securities | ' | ||||||||||||||||||||||||
Note 4: | Securities | ||||||||||||||||||||||||
The aggregate amortized costs and fair values of the available-for-sale securities portfolio are as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Available-for-sale securities | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
June 30, 2014 | Gains | (Losses) | |||||||||||||||||||||||
U.S. Government agencies | $ | 10,057 | $ | 11 | $ | (61 | ) | $ | 10,007 | ||||||||||||||||
State and municipal obligations | 25,143 | 171 | (489 | ) | 24,825 | ||||||||||||||||||||
Certificates of deposits | 1,984 | 10 | — | 1,994 | |||||||||||||||||||||
$ | 37,184 | $ | 192 | $ | (550 | ) | $ | 36,826 | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Available-for-sale securities | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
December 31, 2013 | Gains | (Losses) | |||||||||||||||||||||||
U.S. Government agencies | $ | 9,383 | $ | 11 | $ | (86 | ) | $ | 9,308 | ||||||||||||||||
State and municipal obligations | 27,690 | 109 | (1,242 | ) | 26,557 | ||||||||||||||||||||
Certificates of deposits | 1,736 | 9 | — | 1,745 | |||||||||||||||||||||
Auction rate security | 912 | — | — | 912 | |||||||||||||||||||||
$ | 39,721 | $ | 129 | $ | (1,328 | ) | $ | 38,522 | |||||||||||||||||
Gross realized gains and gross realized losses on sales and calls of securities were as follows: | |||||||||||||||||||||||||
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Gross realized gains | $ | 5 | $ | 268 | $ | 5 | $ | 272 | |||||||||||||||||
Gross realized losses | (21 | ) | — | (22 | ) | (1 | ) | ||||||||||||||||||
Net realized gains (losses) | $ | (16 | ) | $ | 268 | $ | (17 | ) | $ | 271 | |||||||||||||||
Aggregate proceeds | $ | 2,039 | $ | 7,165 | $ | 3,331 | $ | 8,260 | |||||||||||||||||
Average yields on securities were 2.36% and 2.27% for the three months ended June 30, 2014 and 2013, respectively, and 2.37% and 2.22% for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Securities with a market value of $13.3 million and $12.9 million were pledged as collateral for repurchase agreements and for other purposes as required by law as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||
Securities in an unrealized loss position at June 30, 2014 and December 31, 2013, by duration of the unrealized loss, are shown below. 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. Furthermore, all amortized cost bases are expected to be recovered. Bonds with unrealized loss positions at June 30, 2014 included 15 federal agencies and 41 municipals. Bonds with unrealized loss positions at December 31, 2013 included 50 municipals and 15 federal agencies. The tables are shown below. | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
U.S. Government agencies | $ | 1,903 | $ | 8 | $ | 4,235 | $ | 53 | $ | 6,138 | $ | 61 | |||||||||||||
States and municipal obligations | 1,592 | 15 | 11,112 | 474 | 12,704 | 489 | |||||||||||||||||||
Total temporarily impaired securities | $ | 3,495 | $ | 23 | $ | 15,347 | $ | 527 | $ | 18,842 | $ | 550 | |||||||||||||
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 | $ | 4,808 | $ | 66 | $ | 1,462 | $ | 20 | $ | 6,270 | $ | 86 | |||||||||||||
States and municipal obligations | 14,255 | 1,120 | 2,306 | 122 | 16,561 | 1,242 | |||||||||||||||||||
Total temporarily impaired securities | $ | 19,063 | $ | 1,186 | $ | 3,768 | $ | 142 | $ | 22,831 | $ | 1,328 | |||||||||||||
The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $1,421,400 and $1,079,800 at June 30, 2014 and December 31, 2013, respectively. The Company also had an investment in Federal Reserve Bank of Richmond (“FRB”) stock which totaled $382 thousand at June 30, 2014 and $382 thousand at December 31, 2013. The investments in both FHLB and FRB stock are required investments related to the Bank’s membership with the FHLB and FRB. These securities do not have a readily determinable fair value as their ownership is restricted, and they lack an active market for trading. Additionally, per charter, all transactions pursuant to repurchases of such stock must occur at par. Accordingly, these securities are carried at cost, and are periodically evaluated for impairment. The Company’s determination as to whether its investment in FHLB and FRB stock is impaired is based on management’s assessment of the ultimate recoverability of its par value rather than recognizing temporary declines in its value. The determination of whether the decline affects the ultimate recoverability of the investments is influenced by available information regarding various factors. These factors include, among others, the significance of the decline in net assets of the issuing banks as compared to the capital stock amount reported by these banks, and the length of time a decline has persisted; commitments by such banks to make payments required by law or regulation and the level of such payments in relation to the operating performance of the issuing bank; and the overall liquidity position of the issuing bank. Based on its most recent analysis of publicly available information regarding the financial condition of the issuing banks, management concluded that no impairment existed in the carrying value of this stock. |
Loans
Loans | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||
Note 5: | Loans | ||||||||||||||||||||||||
The following is a summary of the balances of loans: | |||||||||||||||||||||||||
(Dollars in thousands) | June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
Mortgage loans on real estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 33,805 | $ | 31,839 | |||||||||||||||||||||
Farmland | 1,174 | 1,262 | |||||||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | 15,717 | 14,626 | |||||||||||||||||||||||
Commercial Mortgages (Owner Occupied) | 32,234 | 34,177 | |||||||||||||||||||||||
Residential First Mortgages | 121,641 | 114,458 | |||||||||||||||||||||||
Residential Revolving and Junior Mortgages | 25,816 | 24,045 | |||||||||||||||||||||||
Commercial and Industrial loans | 22,678 | 23,938 | |||||||||||||||||||||||
Consumer Loans | 5,799 | 5,986 | |||||||||||||||||||||||
Total loans | $ | 258,864 | $ | 250,331 | |||||||||||||||||||||
Net unamortized deferred loans costs | 454 | 506 | |||||||||||||||||||||||
Allowance for loan losses | (2,973 | ) | (2,925 | ) | |||||||||||||||||||||
Loans, net | $ | 256,345 | $ | 247,912 | |||||||||||||||||||||
The recorded investment in past due and non-accruing loans is shown in the following table. A loan past due by more than 90 days is generally placed on nonaccrual unless it is both well secured and in the process of collection. | |||||||||||||||||||||||||
30-89 | 90 Days or | Nonaccruals | Total Past | Current | Total | ||||||||||||||||||||
Days | More Past | Due and | Loans | ||||||||||||||||||||||
(Dollars in thousands) | Past Due | Due and | Nonaccruals | ||||||||||||||||||||||
Loans Past Due and Nonaccruals | Still Accruing | ||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 64 | $ | — | $ | 847 | $ | 911 | $ | 32,894 | $ | 33,805 | |||||||||||||
Farmland | — | — | — | — | 1,174 | 1,174 | |||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | — | — | 413 | 413 | 15,304 | 15,717 | |||||||||||||||||||
Commercial Mortgages (Owner Occupied) | — | — | — | — | 32,234 | 32,234 | |||||||||||||||||||
Residential First Mortgages | 954 | — | 236 | 1,190 | 120,451 | 121,641 | |||||||||||||||||||
Residential Revolving and Junior Mortgages | 109 | — | 16 | 125 | 25,691 | 25,816 | |||||||||||||||||||
Commercial and Industrial | 21 | — | 228 | 249 | 22,429 | 22,678 | |||||||||||||||||||
Consumer Loans | 23 | 43 | 2 | 68 | 5,731 | 5,799 | |||||||||||||||||||
Total | $ | 1,171 | $ | 43 | $ | 1,742 | $ | 2,956 | $ | 255,908 | $ | 258,864 | |||||||||||||
30-89 | 90 Days or | Nonaccruals | Total Past | Current | Total | ||||||||||||||||||||
Days | More Past | Due and | Loans | ||||||||||||||||||||||
Past Due | Due and | Nonaccruals | |||||||||||||||||||||||
Loans Past Due and Nonaccruals | Still Accruing | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 65 | $ | — | $ | 854 | $ | 919 | $ | 30,920 | $ | 31,839 | |||||||||||||
Farmland | — | — | — | — | 1,262 | 1,262 | |||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | — | — | — | — | 14,626 | 14,626 | |||||||||||||||||||
Commercial Mortgages (Owner Occupied) | — | — | 427 | 427 | 33,750 | 34,177 | |||||||||||||||||||
Residential First Mortgages | 668 | — | 1,083 | 1,751 | 112,707 | 114,458 | |||||||||||||||||||
Residential Revolving and Junior Mortgages | 108 | — | 76 | 184 | 23,861 | 24,045 | |||||||||||||||||||
Commercial and Industrial | 16 | — | 311 | 327 | 23,611 | 23,938 | |||||||||||||||||||
Consumer Loans | 60 | 19 | 3 | 82 | 5,904 | 5,986 | |||||||||||||||||||
Total | $ | 917 | $ | 19 | $ | 2,754 | $ | 3,690 | $ | 246,641 | $ | 250,331 | |||||||||||||
Allowance_for_Loan_Losses
Allowance for Loan Losses | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Allowance for Loan Losses | ' | ||||||||||||||||||||||||
Note 6: | Allowance for Loan Losses | ||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||
A disaggregation of and an analysis of the change in the allowance for loan losses by segment is shown below. | |||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Commercial | Consumer | Total | |||||||||||||||||||||
Loans on | and | Loans | |||||||||||||||||||||||
Real Estate | Industrial | ||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: | |||||||||||||||||||||||||
Beginning Balance | $ | 2,497 | $ | 248 | $ | 205 | $ | 2,950 | |||||||||||||||||
(Charge-offs) | (75 | ) | — | (12 | ) | (87 | ) | ||||||||||||||||||
Recoveries | 8 | — | 5 | 13 | |||||||||||||||||||||
Provision | 159 | (37 | ) | (25 | ) | 97 | |||||||||||||||||||
Ending Balance | $ | 2,589 | $ | 211 | $ | 173 | $ | 2,973 | |||||||||||||||||
Individually evaluated for impairment | $ | 724 | $ | — | $ | 32 | $ | 756 | |||||||||||||||||
Collectively evaluated for impairment | 1,865 | 211 | 141 | 2,217 | |||||||||||||||||||||
Mortgage | Commercial | Consumer | Total | ||||||||||||||||||||||
Loans on | and | Loans | |||||||||||||||||||||||
Real Estate | Industrial | ||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||
June 30, 2013 | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: | |||||||||||||||||||||||||
Beginning Balance | $ | 2,497 | $ | 306 | $ | 231 | $ | 3,034 | |||||||||||||||||
(Charge-offs) | (197 | ) | (17 | ) | (27 | ) | (241 | ) | |||||||||||||||||
Recoveries | 9 | — | 2 | 11 | |||||||||||||||||||||
Provision | 153 | (39 | ) | 65 | 179 | ||||||||||||||||||||
Ending Balance | $ | 2,462 | $ | 250 | $ | 271 | $ | 2,983 | |||||||||||||||||
Individually evaluated for impairment | $ | 760 | $ | — | $ | 72 | $ | 832 | |||||||||||||||||
Collectively evaluated for impairment | 1,702 | 250 | 199 | 2,151 | |||||||||||||||||||||
(Dollars in thousands) | Mortgage | Commercial | Consumer | Total | |||||||||||||||||||||
Loans on | and | Loans | |||||||||||||||||||||||
Real Estate | Industrial | ||||||||||||||||||||||||
For the Six Months Ended | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: | |||||||||||||||||||||||||
Beginning Balance | $ | 2,465 | $ | 256 | $ | 204 | $ | 2,925 | |||||||||||||||||
(Charge-offs) | (214 | ) | — | (21 | ) | (235 | ) | ||||||||||||||||||
Recoveries | 14 | — | 7 | 21 | |||||||||||||||||||||
Provision | 324 | (45 | ) | (17 | ) | 262 | |||||||||||||||||||
Ending Balance | $ | 2,589 | $ | 211 | $ | 173 | $ | 2,973 | |||||||||||||||||
Mortgage | Commercial | Consumer | Total | ||||||||||||||||||||||
Loans on | and | Loans | |||||||||||||||||||||||
Real Estate | Industrial | ||||||||||||||||||||||||
For the Six Months Ended | |||||||||||||||||||||||||
June 30, 2013 | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: | |||||||||||||||||||||||||
Beginning Balance | $ | 2,572 | $ | 262 | $ | 260 | $ | 3,094 | |||||||||||||||||
(Charge-offs) | (365 | ) | (17 | ) | (55 | ) | (437 | ) | |||||||||||||||||
Recoveries | 60 | — | 4 | 64 | |||||||||||||||||||||
Provision | 195 | 5 | 62 | 262 | |||||||||||||||||||||
Ending Balance | $ | 2,462 | $ | 250 | $ | 271 | $ | 2,983 | |||||||||||||||||
Loan receivables evaluated for impairment individually and collectively by segment as of June 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Commercial | Consumer | Total | |||||||||||||||||||||
Loans on | and | Loans | |||||||||||||||||||||||
As of June 30, 2014 | Real Estate | Industrial | |||||||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,451 | $ | — | $ | 38 | $ | 6,489 | |||||||||||||||||
Collectively evaluated for impairment | 223,936 | 22,678 | 5,761 | 252,375 | |||||||||||||||||||||
Total Gross Loans | $ | 230,387 | $ | 22,678 | $ | 5,799 | $ | 258,864 | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,306 | $ | 311 | $ | 39 | $ | 6,656 | |||||||||||||||||
Collectively evaluated for impairment | 214,101 | 23,627 | 5,947 | 243,675 | |||||||||||||||||||||
Total Gross Loans | $ | 220,407 | $ | 23,938 | $ | 5,986 | $ | 250,331 | |||||||||||||||||
Internal Risk Rating Grades | |||||||||||||||||||||||||
Internal risk rating grades are generally assigned to 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 $250,000 with chronic delinquency, and TDRs, as shown in the following table. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades (refer to Note 2) are evaluated as new information becomes available for each borrowing relationship or at least quarterly. | |||||||||||||||||||||||||
(Dollars in thousands) | Construction, | Farmland | Commercial | Commercial | Commercial | Total | |||||||||||||||||||
Land and | Mortgages | Mortgages | and | ||||||||||||||||||||||
As of June 30, 2014 | Land | (Non-Owner | (Owner | Industrial | |||||||||||||||||||||
Development | Occupied) | Occupied) | |||||||||||||||||||||||
INTERNAL RISK RATING GRADES | |||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 27,624 | $ | 1,174 | $ | 10,509 | $ | 22,580 | $ | 19,217 | $ | 81,104 | |||||||||||||
Watch | 3,465 | — | 4,869 | 4,534 | 2,433 | 15,301 | |||||||||||||||||||
Special mention | 1,410 | — | — | 3,379 | 713 | 5,502 | |||||||||||||||||||
Substandard | 1,306 | — | 339 | 1,741 | 315 | 3,701 | |||||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 33,805 | $ | 1,174 | $ | 15,717 | $ | 32,234 | $ | 22,678 | $ | 105,608 | |||||||||||||
Construction, | Farmland | Commercial | Commercial | Commercial | Total | ||||||||||||||||||||
Land and | Mortgages | Mortgages | and | ||||||||||||||||||||||
As of December 31, 2013 | Land | (Non-Owner | (Owner | Industrial | |||||||||||||||||||||
Development | Occupied) | Occupied) | |||||||||||||||||||||||
INTERNAL RISK RATING GRADES | |||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 25,616 | $ | 1,262 | $ | 9,083 | $ | 23,984 | $ | 20,309 | $ | 80,254 | |||||||||||||
Watch | 3,493 | — | 5,204 | 7,429 | 2,743 | 18,869 | |||||||||||||||||||
Special mention | 1,416 | — | — | 1,001 | 487 | 2,904 | |||||||||||||||||||
Substandard | 1,314 | — | 339 | 1,763 | 399 | 3,815 | |||||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 31,839 | $ | 1,262 | $ | 14,626 | $ | 34,177 | $ | 23,938 | $ | 105,842 | |||||||||||||
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. | |||||||||||||||||||||||||
(Dollars in thousands) | Residential | Residential | Consumer | Total | |||||||||||||||||||||
First | Revolvling | Loans (3) | |||||||||||||||||||||||
As of June 30, 2014 | Mortgages (1) | and Junior | |||||||||||||||||||||||
Mortgages (2) | |||||||||||||||||||||||||
PAYMENT ACTIVITY STATUS | |||||||||||||||||||||||||
Performing | $ | 121,405 | $ | 25,800 | $ | 5,754 | $ | 152,959 | |||||||||||||||||
Nonperforming | 236 | 16 | 45 | 297 | |||||||||||||||||||||
Total | $ | 121,641 | $ | 25,816 | $ | 5,799 | $ | 153,256 | |||||||||||||||||
Residential | Residential | Consumer | Total | ||||||||||||||||||||||
First | Revolvling | Loans (6) | |||||||||||||||||||||||
As of December 31, 2013 | Mortgages (4) | and Junior | |||||||||||||||||||||||
Mortgages (5) | |||||||||||||||||||||||||
PAYMENT ACTIVITY STATUS | |||||||||||||||||||||||||
Performing | $ | 113,375 | $ | 23,969 | $ | 5,964 | $ | 143,308 | |||||||||||||||||
Nonperforming | 1,083 | 76 | 22 | 1,181 | |||||||||||||||||||||
Total | $ | 114,458 | $ | 24,045 | $ | 5,986 | $ | 144,489 | |||||||||||||||||
-1 | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.3 million as of June 30, 2014. | ||||||||||||||||||||||||
-2 | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $155 thousand as of June 30, 2014. | ||||||||||||||||||||||||
-3 | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $7 thousand as of June 30, 2014. | ||||||||||||||||||||||||
-4 | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.6 million as of December 31, 2013. | ||||||||||||||||||||||||
-5 | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $216 thousand as of December 31, 2013. | ||||||||||||||||||||||||
-6 | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $9 thousand as of December 31, 2013. | ||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||
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 June 30, 2014 and December 31, 2013, along with the average recorded investment and interest income recognized for the three and six months ended June 30, 2014 and 2013. | |||||||||||||||||||||||||
(Dollars in thousands) | As of June 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
IMPAIRED LOANS | |||||||||||||||||||||||||
With no related allowance: | Recorded | Customers’ Unpaid | Related | Recorded | Customers’ Unpaid | Related | |||||||||||||||||||
Investment | Principal Balance | Allowance | Investment | Principal Balance | Allowance | ||||||||||||||||||||
Construction, land & land development | $ | 451 | $ | 453 | $ | — | $ | 453 | $ | 453 | $ | — | |||||||||||||
Residential First Mortgages | 1,039 | 1,049 | — | 1,053 | 1,057 | — | |||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | — | — | — | — | — | — | |||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 264 | — | 264 | 264 | — | |||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,910 | 1,931 | — | 1,831 | 1,840 | — | |||||||||||||||||||
Commercial & industrial | — | — | — | 311 | 311 | — | |||||||||||||||||||
Consumer (2) | — | — | — | — | — | — | |||||||||||||||||||
3,664 | 3,697 | — | 3,912 | 3,925 | — | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Construction, land & land development | 428 | 447 | 211 | 151 | 156 | 51 | |||||||||||||||||||
Residential First Mortgages | 2,185 | 2,185 | 436 | 2,198 | 2,198 | 409 | |||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 174 | 77 | 251 | 879 | 173 | |||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | — | — | — | |||||||||||||||||||
Commercial Mortgages (Owner occupied) | — | — | — | 105 | 105 | 1 | |||||||||||||||||||
Commercial & industrial | — | — | — | — | — | — | |||||||||||||||||||
Consumer (2) | 38 | 38 | 32 | 39 | 39 | 33 | |||||||||||||||||||
2,825 | 2,844 | 756 | 2,744 | 3,377 | 667 | ||||||||||||||||||||
Total Impaired Loans: | |||||||||||||||||||||||||
Construction, land & land development | 879 | 900 | 211 | 604 | 609 | 51 | |||||||||||||||||||
Residential First Mortgages | 3,224 | 3,234 | 436 | 3,251 | 3,255 | 409 | |||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 174 | 77 | 251 | 879 | 173 | |||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 264 | — | 264 | 264 | — | |||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,910 | 1,931 | — | 1,936 | 1,945 | 1 | |||||||||||||||||||
Commercial & industrial | — | — | — | 311 | 311 | — | |||||||||||||||||||
Consumer (2) | 38 | 38 | 32 | 39 | 39 | 33 | |||||||||||||||||||
$ | 6,489 | $ | 6,541 | $ | 756 | $ | 6,656 | $ | 7,302 | $ | 667 | ||||||||||||||
-1 | Junior mortgages include equity lines. | ||||||||||||||||||||||||
-2 | Includes credit cards. | ||||||||||||||||||||||||
For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Interest | |||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||
Construction, land & land development | $ | 451 | $ | 1 | $ | 13 | $ | — | |||||||||||||||||
Residential First Mortgages | 1,042 | 10 | 1,668 | 24 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | — | — | 97 | — | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 4 | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,917 | 20 | 752 | 8 | |||||||||||||||||||||
Consumer (2) | — | — | — | — | |||||||||||||||||||||
3,674 | 35 | 2,530 | 32 | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Construction, land & land development | 288 | 1 | 200 | — | |||||||||||||||||||||
Residential First Mortgages | 2,186 | 26 | 1,845 | 24 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 2 | 1,124 | 2 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | — | — | 533 | 3 | |||||||||||||||||||||
Consumer (2) | 38 | 1 | 73 | 1 | |||||||||||||||||||||
2,686 | 30 | 3,775 | 30 | ||||||||||||||||||||||
Total | |||||||||||||||||||||||||
Construction, land & land development | 739 | 2 | 213 | — | |||||||||||||||||||||
Residential First Mortgages | 3,228 | 36 | 3,513 | 48 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 2 | 1,221 | 2 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 4 | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,917 | 20 | 1,285 | 11 | |||||||||||||||||||||
Consumer (2) | 38 | 1 | 73 | 1 | |||||||||||||||||||||
$ | 6,360 | $ | 65 | $ | 6,305 | $ | 62 | ||||||||||||||||||
-1 | Junior mortgages include equity lines. | ||||||||||||||||||||||||
-2 | Includes credit cards. | ||||||||||||||||||||||||
For the Six Months Ended | For the Six Months Ended | ||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Interest | |||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||
Construction, land & land development | $ | 452 | $ | 2 | $ | 13 | $ | — | |||||||||||||||||
Residential First Mortgages | 1,046 | 21 | 1,570 | 42 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | — | — | 98 | — | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 8 | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,924 | 42 | 754 | 15 | |||||||||||||||||||||
Consumer (2) | — | — | — | — | |||||||||||||||||||||
3,686 | 73 | 2,435 | 57 | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Construction, land & land development | 242 | 1 | 200 | — | |||||||||||||||||||||
Residential First Mortgages | 2,190 | 47 | 1,778 | 50 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 4 | 1,068 | 4 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | — | — | 536 | 3 | |||||||||||||||||||||
Consumer (2) | 38 | 2 | 73 | 3 | |||||||||||||||||||||
2,644 | 54 | 3,655 | 60 | ||||||||||||||||||||||
Total | |||||||||||||||||||||||||
Construction, land & land development | 694 | 3 | 213 | — | |||||||||||||||||||||
Residential First Mortgages | 3,236 | 68 | 3,348 | 92 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 4 | 1,166 | 4 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 8 | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,924 | 42 | 1,290 | 18 | |||||||||||||||||||||
Consumer (2) | 38 | 2 | 73 | 3 | |||||||||||||||||||||
$ | 6,330 | $ | 127 | $ | 6,090 | $ | 117 | ||||||||||||||||||
-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 June 30, 2014 and December 31, 2013, non-accruing loans excluded from impaired loan disclosure totaled $325 thousand and $724 thousand, respectively. If interest on these non-accruing loans had been accrued, such income would have approximated $6 thousand and $9 thousand during the three months ended June 30, 2014 and 2013, respectively, and $13 thousand and $20 thousand during the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Loan Modifications | |||||||||||||||||||||||||
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 three and six months ended June 30, 2014 and 2013. | |||||||||||||||||||||||||
For the three months ended | For the three months ended | ||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-Modification | Post-Modification | Number of | Pre-Modification | Post-Modification | |||||||||||||||||||
Loans (1) | Outstanding | Outstanding | Loans | Outstanding | Outstanding | ||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS | Recorded | Recorded | Recorded | Recorded | |||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||
Construction, land & land development | 2 | $ | 282 | 282 | — | $ | — | $ | — | ||||||||||||||||
-1 | Modifications were an extension of the loan terms. | ||||||||||||||||||||||||
For the six months ended | For the six months ended | ||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS | Number of | Pre-Modification | Post-Modification | Number of | Pre-Modification | Post-Modification | |||||||||||||||||||
Loans (1) | Outstanding | Outstanding | Loans (2) | Outstanding | Outstanding | ||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||
Construction, land & land development | 2 | $ | 282 | $ | 282 | — | $ | — | $ | — | |||||||||||||||
Residenital first mortages | — | — | — | 2 | 315 | 315 | |||||||||||||||||||
-1 | Modifications were an extension of the loan terms. | ||||||||||||||||||||||||
-2 | Modifications were capitalization of the interest. | ||||||||||||||||||||||||
For the three months ended | For the three months ended | ||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||
THAT SUBSEQUENTLY DEFAULTED | Loans | Investment | Loans | Investment | |||||||||||||||||||||
Residential revolving and junior mortgages | 1 | $ | 75 | — | $ | — | |||||||||||||||||||
For the six months ended | For the six months ended | ||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||
Loans | Investment | Loans | Investment | ||||||||||||||||||||||
THAT SUBSEQUENTLY DEFAULTED | |||||||||||||||||||||||||
Residential revolving and junior mortgages | 1 | $ | 75 | — | $ | — | |||||||||||||||||||
Foreclosures | |||||||||||||||||||||||||
The table below details the properties included in other real estate owned (“OREO”) as of June 30, 2014 and December 31, 2013. There were no collateralized consumer residential mortgage loans in the process of foreclosure as of June 30, 2014. | |||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | No. of | Carrying | No. of | Carrying | |||||||||||||||||||||
Properties | Value | Properties | Value | ||||||||||||||||||||||
Residential | 10 | $ | 1,653 | 11 | $ | 2,442 | |||||||||||||||||||
Land lots | 13 | 601 | 14 | 684 | |||||||||||||||||||||
Convenience store | 2 | 234 | 2 | 239 | |||||||||||||||||||||
Restaurant | 1 | 107 | 1 | 107 | |||||||||||||||||||||
Commerical properties | 1 | 304 | 2 | 425 | |||||||||||||||||||||
Total | 27 | $ | 2,899 | 30 | $ | 3,897 | |||||||||||||||||||
Earnings_per_share
Earnings per share | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Earnings per share | ' | ||||||||||||||||||||||||||||||||
Note 7: | 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. | |||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||||||||
Average | Per share | Average | Per share | Average | Per share | Average | Per share | ||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Basic earnings per share | 4,818,733 | $ | 0.05 | 4,817,856 | $ | 0.05 | 4,818,311 | $ | 0.15 | 4,815,845 | $ | 0.08 | |||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||
Stock options | 18,050 | 2,158 | 14,105 | 2,413 | |||||||||||||||||||||||||||||
Diluted earnings per share | 4,836,783 | $ | 0.05 | 4,820,014 | $ | 0.05 | 4,832,416 | $ | 0.15 | 4,818,258 | $ | 0.08 | |||||||||||||||||||||
For the three months ended June 30, 2014 and 2013, options on 62,588 and 177,871 shares, respectively, were not included in computing diluted earnings per share because their effects were anti-dilutive. For the six months ended June 30, 2014 and 2013, options on 68,828 and 177,871 shares, respectively, were not included in computing diluted earnings per share because their effects were anti-dilutive. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Note 8: | Stock-Based Compensation | ||||||||||||||||
On June 28, 2013, the Company registered a new stock-based compensation plan, which superseded all other plans. There are 377,123 shares available for grant under this plan at June 30, 2014. | |||||||||||||||||
Stock-based compensation expense related to stock awards during the three month periods ended June 30, 2014 and 2013 was zero and $4 thousand, respectively, and during the six month periods ended June 30, 2014 and 2013 was $20 thousand and $126 thousand, respectively. Compensation expense for stock options is the estimated fair value of options on the date granted using the Black-Scholes Model amortized on a straight-line basis over the vesting period of the award. There was no unrecognized compensation expense related to stock options as of June 30, 2014. | |||||||||||||||||
Options for a total of 7,000 shares were granted and vested during the six months ended June 30, 2014. The fair value of options granted during the six months ended June 30, 2014 was $2.75. Options for a total of 89,500 shares were granted and vested during the six months ended June 30, 2013. The fair value of options granted during the six months ended June 30, 2013 was $1.03 and $1.08. | |||||||||||||||||
The variables used in these calculations of the fair value of the options are as follows: | |||||||||||||||||
For the six months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk free interest rate (5 year Treasury) | 2.7 | % | 0.86 | % | |||||||||||||
Expected dividend yield | 0 | % | 3.6 | % | |||||||||||||
Expected term (years) | 5 | 5 | |||||||||||||||
Expected volatility | 51.4 | % | 33.8 | % | |||||||||||||
Stock option activity for the six months ended June 30, 2014 (unaudited) is summarized below: | |||||||||||||||||
Shares | Weighted Average | Weighted | Aggregate | ||||||||||||||
Exercise | Average | Intrinsic | |||||||||||||||
Price | Remaining | Value (1) | |||||||||||||||
Contractual | |||||||||||||||||
Life (in years) | |||||||||||||||||
Options outstanding, January 1, 2014 | 191,002 | $ | 7.35 | 6.8 | |||||||||||||
Granted | 7,000 | 5.99 | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Exercised | — | — | |||||||||||||||
Expired | (7,239 | ) | 14.65 | ||||||||||||||
Options outstanding and exercisable, June 30, 2014 | 190,763 | $ | 7.02 | 6.7 | $ | 84,644 | |||||||||||
-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 June 30, 2014. This amount changes based on changes in the market value of the Company’s common stock. | ||||||||||||||||
In the first quarter of 2014, 877 shares of restricted stock were granted to an executive officer of the Bank. Such shares will vest over 12 months, with $5 thousand to be recorded as compensation expense over this period. |
Employee_Benefit_Plans
Employee Benefit Plans | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||
Note 9: | Employee Benefit Plans | ||||||||||||||||
The Company has a non-contributory, defined benefit pension plan for full-time employees who were over 21 years of age and vested in the plan as of December 31, 2012, when the plan was frozen. Each participant’s account balance grows 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 post-retirement benefit plan provides coverage toward a retiree’s eligible medical and life insurance benefits expenses. The plan is unfunded and funded as benefits are due. | |||||||||||||||||
Components of Net Periodic (Benefit) Cost | |||||||||||||||||
(Dollars in thousands) | Pension Benefits | Post-Retirement Benefits | |||||||||||||||
Six months ended June 30, | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | — | $ | — | $ | 8 | $ | 11 | |||||||||
Interest cost | 71 | 71 | 15 | 15 | |||||||||||||
Expected return on plan assets | (101 | ) | (107 | ) | — | — | |||||||||||
Amortization of unrecognized net loss | 19 | 45 | — | 2 | |||||||||||||
Amortization of transition obligation | — | — | — | 2 | |||||||||||||
Net periodic (benefit) cost | $ | (11 | ) | $ | 9 | $ | 23 | $ | 30 | ||||||||
The Company expects to make no contribution to its pension plan and $5 thousand to its post-retirement benefit plan in the last half of 2014. The Company has contributed $6 thousand toward the post-retirement plan during the first six months of 2014. |
Long_Term_Debt
Long Term Debt | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Long Term Debt | ' | ||||||||||||||||
Note 10: | Long Term Debt | ||||||||||||||||
On June 30, 2014, the Bank had FHLB debt consisting of four 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. A $5 million advance with an interest rate of 2.69%, matured in May 2014 and was replaced with a new $5 million three month LIBOR-based floating rate advance. Two additional $5 million advances were drawn in June. Both were three month LIBOR-based floating rate advances. | |||||||||||||||||
The four advances are shown in the following table. | |||||||||||||||||
Description | Balance | Originated | Current | Maturity | |||||||||||||
Interest Rate | Date | ||||||||||||||||
Adjustable Rate Hybrid | $ | 10,000,000 | 4/12/13 | 2.60705 | % | 4/13/20 | |||||||||||
Adjustable Rate Credit | 5,000,000 | 5/20/14 | 0.2281 | % | 5/20/15 | ||||||||||||
Fixed Rate Credit | 5,000,000 | 6/18/14 | 0.26 | % | 6/18/15 | ||||||||||||
Fixed Rate Credit | 5,000,000 | 6/26/14 | 0.26 | % | 6/26/15 | ||||||||||||
$ | 25,000,000 | ||||||||||||||||
Advances on the FHLB lines are secured by a blanket lien on qualified 1 to 4 family residential real estate loans. Immediate available credit, as of June 30, 2014, was $38.5 million against a total line of credit is $65.5 million. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 11: | 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. | |||||||||||||||||
Mortgage servicing rights: 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 June 30, 2014 and December 31, 2013: | |||||||||||||||||
(Dollars in thousands) | Fair Value Measurements at June 30, 2014 Using | ||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Securities available-for-sale: | |||||||||||||||||
U. S. Government agencies | $ | 10,007 | $ | — | $ | 10,007 | $ | — | |||||||||
State and municipal obligations | 24,825 | — | 24,825 | — | |||||||||||||
Certificates of deposit | 1,994 | — | 1,994 | — | |||||||||||||
Total securities available-for-sale: | $ | 36,826 | $ | — | $ | 36,826 | $ | — | |||||||||
Mortgage servicing rights | $ | 582 | $ | — | $ | — | $ | 582 | |||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | 3 | $ | 3 | $ | — | $ | — | |||||||||
Mutual funds - fixed income | 1,070 | 1,070 | — | — | |||||||||||||
Mutual funds - equity | 1,747 | 1,747 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,820 | $ | 2,820 | $ | — | $ | — | |||||||||
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 | $ | — | $ | 9,308 | $ | — | |||||||||
State and municipal obligations | 26,557 | — | 26,557 | — | |||||||||||||
Certificates of deposit | 1,745 | — | 1,745 | — | |||||||||||||
Auction rate securities | 912 | — | — | 912 | |||||||||||||
Total securities available-for-sale: | $ | 38,522 | $ | — | $ | 37,610 | $ | 912 | |||||||||
Mortgage servicing rights | $ | 579 | $ | — | $ | — | $ | 579 | |||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | 3 | $ | 3 | $ | — | $ | — | |||||||||
Mutual funds - fixed income | 1,070 | 1,070 | — | — | |||||||||||||
Mutual funds - equity | 1,747 | 1,747 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,820 | $ | 2,820 | $ | — | $ | — | |||||||||
The reconciliation of items using Level 3 inputs is as follows: | |||||||||||||||||
(Dollars in thousands) | Auction | MSRs | |||||||||||||||
Rate | |||||||||||||||||
Security | |||||||||||||||||
Balance, January 1, 2014 | $ | 912 | $ | 579 | |||||||||||||
Impairments | — | — | |||||||||||||||
Fair value adjustments | — | 3 | |||||||||||||||
Sales | (912 | ) | — | ||||||||||||||
Balance, June 30, 2014 | $ | — | $ | 582 | |||||||||||||
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 ALL 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 June 30, 2014 Using | |||||||||||||||||
(Dollars in thousands) | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
Description | June 30, 2014 | ||||||||||||||||
Impaired Loans, net | $ | 2,069 | $ | — | $ | — | $ | 2,069 | |||||||||
Other real estate owned, net | 2,899 | — | — | 2,899 | |||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Balance as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
Description | December 31, 2013 | ||||||||||||||||
Impaired Loans, net | $ | 2,077 | $ | — | $ | — | $ | 2,077 | |||||||||
Other real estate owned, net | 3,897 | — | — | 3,897 | |||||||||||||
The following table displays quantitative information about Level 3 Fair Value Measurements as of June, 2014: | |||||||||||||||||
(Dollars in thousands) | Balance as of | Valuation Technique | Unobservable Input | Range (Weighted | |||||||||||||
June 30, 2014 | Average) | ||||||||||||||||
Impaired Loans, net | $ | 2,069 | Discounted appraised value | Selling Cost | 10% - 20%(10%) | ||||||||||||
Lack of Marketability | 25% - 100%(56%) | ||||||||||||||||
Other real estate owned, net | 2,899 | Discounted appraised value | Selling Cost | 3% - 13%(5%) | |||||||||||||
Lack of Marketability | 7% - 20%(11%) | ||||||||||||||||
The following table displays quantitative information about Level 3 Fair Value Measurements as of December, 2013: | |||||||||||||||||
(Dollars in thousands) | Balance as of | Valuation Technique | Unobservable Input | Range (Weighted | |||||||||||||
December 31, 2013 | Average) | ||||||||||||||||
Impaired Loans, net | $ | 2,077 | Discounted appraised value | Selling Cost | 10% - 20%(10%) | ||||||||||||
Lack of Marketability | 25% - 100%(54%) | ||||||||||||||||
Other real estate owned, net | 3,897 | Discounted appraised value | Selling Cost | 3% - 13%(6%) | |||||||||||||
Lack of Marketability | 7% - 30%(15%) | ||||||||||||||||
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 June 30, 2014 Using | |||||||||||||||||
(Dollars in thousands) | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
Description | June 30,2014 | ||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 6,793 | $ | 6,793 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 10,819 | 10,819 | — | — | |||||||||||||
Federal funds sold | 204 | 204 | — | — | |||||||||||||
Securities available-for-sale | 36,826 | — | 36,826 | — | |||||||||||||
Restricted securities | 1,980 | — | — | 1,980 | |||||||||||||
Loans, net | 256,345 | — | — | 262,561 | |||||||||||||
Loans held for sale | 390 | — | — | 390 | |||||||||||||
Accrued interest receivable | 1,112 | — | 1,112 | — | |||||||||||||
Mortgage servicing rights | 582 | — | — | 582 | |||||||||||||
Financial Liabilities: | |||||||||||||||||
Non-interest-bearing liabilities | $ | 58,813 | $ | 58,813 | $ | — | $ | — | |||||||||
Savings and other interest-bearing deposits | 113,403 | — | 113,403 | — | |||||||||||||
Time deposits | 94,870 | — | — | 96,065 | |||||||||||||
Securities sold under repurchase agreements | 8,990 | — | 8,990 | — | |||||||||||||
FHLB advances | 25,000 | 15,000 | 10,984 | — | |||||||||||||
Accrued interest payable | 134 | — | 134 | — | |||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Balance as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
Description | December 31, 2013 | ||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 6,789 | $ | 6,789 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 8,900 | 8,900 | — | — | |||||||||||||
Federal funds sold | 120 | 120 | — | — | |||||||||||||
Securities available-for-sale | 38,522 | — | 37,610 | 912 | |||||||||||||
Restricted securities | 1,638 | — | — | 1,638 | |||||||||||||
Loans, net | 247,912 | — | — | 253,139 | |||||||||||||
Loans held for sale | 196 | — | — | 196 | |||||||||||||
Accrued interest receivable | 1,124 | — | 1,124 | — | |||||||||||||
Mortgage servicing rights | 579 | — | — | 579 | |||||||||||||
Financial Liabilities: | |||||||||||||||||
Non-interest-bearing liabilities | $ | 57,805 | $ | 57,805 | $ | — | $ | — | |||||||||
Savings and other interest-bearing deposits | 114,056 | — | 114,056 | — | |||||||||||||
Time deposits | 96,486 | — | — | 98,049 | |||||||||||||
Securities sold under repurchase agreements | 9,118 | — | 9,118 | — | |||||||||||||
FHLB advances | 15,000 | — | 15,923 | — | |||||||||||||
Accrued interest payable | 167 | — | 167 | — | |||||||||||||
The carrying amounts of cash and due from banks, interest-bearing deposits, federal funds sold or purchased, accrued interest, loans held for sale 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. | |||||||||||||||||
MSRs are carried at fair value. 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. | |||||||||||||||||
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. | |||||||||||||||||
Time deposits are presented at estimated fair value by discounting the future cash flows using interest rates offered for deposits of similar remaining maturities. | |||||||||||||||||
The fair value of the FHLB advances is estimated by discounting the future cash flows using the current interest rates 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 June 30, 2014 and December 31, 2013, 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. |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Loss) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Note 12: | Changes in Accumulated Other Comprehensive Income (Loss) | ||||||||||||
The balances in accumulated other comprehensive income (loss) are shown in the following tables (dollars in thousands): | |||||||||||||
(Dollars in thousands) | Net Unrealized | Pension and | Accumulated Other | ||||||||||
Gains (Losses) | Post-retirement | Comprehensive | |||||||||||
on Securities | Benefit Plans | Income (Loss) | |||||||||||
Balance April 1, 2014 | $ | (468 | ) | $ | (382 | ) | $ | (850 | ) | ||||
Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $112 | 223 | — | 223 | ||||||||||
Reclassification for previously unrealized net losses recognized in income, net of tax benefit of $6 | 10 | — | 10 | ||||||||||
Balance June 30, 2014 | $ | (235 | ) | $ | (382 | ) | $ | (617 | ) | ||||
Net Unrealized | Pension and | Accumulated Other | |||||||||||
Gains (Losses) | Post-retirement | Comprehensive | |||||||||||
on Securities | Benefit Plans | Income (Loss) | |||||||||||
Balance April 1, 2013 | $ | 229 | $ | (660 | ) | $ | (431 | ) | |||||
Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $423 | (820 | ) | — | (820 | ) | ||||||||
Reclassification for previously unrealized net gains recognized in income, net of tax benefit of $50 | (98 | ) | — | (98 | ) | ||||||||
Balance June 30, 2013 | $ | (689 | ) | $ | (660 | ) | $ | (1,349 | ) | ||||
Net Unrealized | Pension and | Accumulated Other | |||||||||||
Gains (Losses) | Post-retirement | Comprehensive | |||||||||||
on Securities | Benefit Plans | Income (Loss) | |||||||||||
Balance January 1, 2014 | $ | (791 | ) | $ | (382 | ) | $ | (1,173 | ) | ||||
Change in net unrealized holding losses on securities, before reclassification, net of tax expense of $280 | 545 | — | 545 | ||||||||||
Reclassification for previously unrealized net losses recognized in income, net of tax benefit of $6 | 11 | — | 11 | ||||||||||
Balance June 30, 2014 | $ | (235 | ) | $ | (382 | ) | $ | (617 | ) | ||||
Net Unrealized | Pension and | Accumulated Other | |||||||||||
Gains (Losses) | Post-retirement | Comprehensive | |||||||||||
on Securities | Benefit Plans | Income (Loss) | |||||||||||
Balance January 1, 2013 | $ | 279 | $ | (660 | ) | $ | (381 | ) | |||||
Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $448 | (868 | ) | — | (868 | ) | ||||||||
Reclassification for previously unrealized net gains recognized in income, net of tax of $51 | (100 | ) | — | (100 | ) | ||||||||
Balance June 30, 2013 | $ | (689 | ) | $ | (660 | ) | $ | (1,349 | ) | ||||
Reclassification for previously unrealized (losses) gains and impairments on securities are reported in the Consolidated Statements of Income as follows. No unrealized gains (losses) on pension and post-employment related costs were reclassified to the Consolidated Statements of Income in the three and six months ended June 30, 2014 and 2013. | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Reclassification for the Three Months Ended | |||||||||||||
Holding (Losses) Gains on Securities | |||||||||||||
(In thousands) | June 30, 2014 | June 30, 2013 | |||||||||||
Net (losses) gains on sale of securities available-for-securities | $ | (16 | ) | $ | 268 | ||||||||
Loss on securities with other-than temporary impairment | — | (120 | ) | ||||||||||
Tax benefit (expense) | 6 | (50 | ) | ||||||||||
Impact on net income | $ | (10 | ) | $ | 98 | ||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Reclassification for the Six Months Ended | |||||||||||||
Holding Gains (Losses) on Securities | |||||||||||||
(In thousands) | June 30, 2014 | June 30, 2013 | |||||||||||
Net (losses) gains on sale of securities available-for-securities | $ | (17 | ) | $ | 271 | ||||||||
Loss on securities with other-than-temporary impairment | — | (120 | ) | ||||||||||
Tax benefit (expense) | 6 | (51 | ) | ||||||||||
Impact on net income | $ | (11 | ) | $ | 100 | ||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
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 over the contractual term of the loan, adjusted for early pay-offs, where applicable. | |
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. | |
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 homogenous 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 troubled debt restructurings (“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. |
Securities_Tables
Securities (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities Portfolio | ' | ||||||||||||||||||||||||
The aggregate amortized costs and fair values of the available-for-sale securities portfolio are as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Available-for-sale securities | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
June 30, 2014 | Gains | (Losses) | |||||||||||||||||||||||
U.S. Government agencies | $ | 10,057 | $ | 11 | $ | (61 | ) | $ | 10,007 | ||||||||||||||||
State and municipal obligations | 25,143 | 171 | (489 | ) | 24,825 | ||||||||||||||||||||
Certificates of deposits | 1,984 | 10 | — | 1,994 | |||||||||||||||||||||
$ | 37,184 | $ | 192 | $ | (550 | ) | $ | 36,826 | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Available-for-sale securities | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
December 31, 2013 | Gains | (Losses) | |||||||||||||||||||||||
U.S. Government agencies | $ | 9,383 | $ | 11 | $ | (86 | ) | $ | 9,308 | ||||||||||||||||
State and municipal obligations | 27,690 | 109 | (1,242 | ) | 26,557 | ||||||||||||||||||||
Certificates of deposits | 1,736 | 9 | — | 1,745 | |||||||||||||||||||||
Auction rate security | 912 | — | — | 912 | |||||||||||||||||||||
$ | 39,721 | $ | 129 | $ | (1,328 | ) | $ | 38,522 | |||||||||||||||||
Gross Realized Gains and Gross Realized Losses on Sales of Securities | ' | ||||||||||||||||||||||||
Gross realized gains and gross realized losses on sales and calls of securities were as follows: | |||||||||||||||||||||||||
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Gross realized gains | $ | 5 | $ | 268 | $ | 5 | $ | 272 | |||||||||||||||||
Gross realized losses | (21 | ) | — | (22 | ) | (1 | ) | ||||||||||||||||||
Net realized gains (losses) | $ | (16 | ) | $ | 268 | $ | (17 | ) | $ | 271 | |||||||||||||||
Aggregate proceeds | $ | 2,039 | $ | 7,165 | $ | 3,331 | $ | 8,260 | |||||||||||||||||
Unrealized Loss Positions | ' | ||||||||||||||||||||||||
Bonds with unrealized loss positions at June 30, 2014 included 15 federal agencies and 41 municipals. Bonds with unrealized loss positions at December 31, 2013 included 50 municipals, 15 federal agencies. The tables are shown below. | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
June 30, 2014 | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
U.S. Government agencies | $ | 1,903 | $ | 8 | $ | 4,235 | $ | 53 | $ | 6,138 | $ | 61 | |||||||||||||
States and municipal obligations | 1,592 | 15 | 11,112 | 474 | 12,704 | 489 | |||||||||||||||||||
Total temporarily impaired securities | $ | 3,495 | $ | 23 | $ | 15,347 | $ | 527 | $ | 18,842 | $ | 550 | |||||||||||||
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 | $ | 4,808 | $ | 66 | $ | 1,462 | $ | 20 | $ | 6,270 | $ | 86 | |||||||||||||
States and municipal obligations | 14,255 | 1,120 | 2,306 | 122 | 16,561 | 1,242 | |||||||||||||||||||
Total temporarily impaired securities | $ | 19,063 | $ | 1,186 | $ | 3,768 | $ | 142 | $ | 22,831 | $ | 1,328 | |||||||||||||
Loans_Tables
Loans (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Summary of Balances of Loans | ' | ||||||||||||||||||||||||
The following is a summary of the balances of loans: | |||||||||||||||||||||||||
(Dollars in thousands) | June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
Mortgage loans on real estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 33,805 | $ | 31,839 | |||||||||||||||||||||
Farmland | 1,174 | 1,262 | |||||||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | 15,717 | 14,626 | |||||||||||||||||||||||
Commercial Mortgages (Owner Occupied) | 32,234 | 34,177 | |||||||||||||||||||||||
Residential First Mortgages | 121,641 | 114,458 | |||||||||||||||||||||||
Residential Revolving and Junior Mortgages | 25,816 | 24,045 | |||||||||||||||||||||||
Commercial and Industrial loans | 22,678 | 23,938 | |||||||||||||||||||||||
Consumer Loans | 5,799 | 5,986 | |||||||||||||||||||||||
Total loans | $ | 258,864 | $ | 250,331 | |||||||||||||||||||||
Net unamortized deferred loans costs | 454 | 506 | |||||||||||||||||||||||
Allowance for loan losses | (2,973 | ) | (2,925 | ) | |||||||||||||||||||||
Loans, net | $ | 256,345 | $ | 247,912 | |||||||||||||||||||||
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 more than 90 days is generally placed on nonaccrual unless it is both well secured and in the process of collection. | |||||||||||||||||||||||||
30-89 | 90 Days or | Nonaccruals | Total Past | Current | Total | ||||||||||||||||||||
(Dollars in thousands) | Days | More Past | Due and | Loans | |||||||||||||||||||||
Loans Past Due and Nonaccruals | Past Due | Due and | Nonaccruals | ||||||||||||||||||||||
June 30, 2014 | Still Accruing | ||||||||||||||||||||||||
Construction, Land and Land Development | $ | 64 | $ | — | $ | 847 | $ | 911 | $ | 32,894 | $ | 33,805 | |||||||||||||
Farmland | — | — | — | — | 1,174 | 1,174 | |||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | — | — | 413 | 413 | 15,304 | 15,717 | |||||||||||||||||||
Commercial Mortgages (Owner Occupied) | — | — | — | — | 32,234 | 32,234 | |||||||||||||||||||
Residential First Mortgages | 954 | — | 236 | 1,190 | 120,451 | 121,641 | |||||||||||||||||||
Residential Revolving and Junior Mortgages | 109 | — | 16 | 125 | 25,691 | 25,816 | |||||||||||||||||||
Commercial and Industrial | 21 | — | 228 | 249 | 22,429 | 22,678 | |||||||||||||||||||
Consumer Loans | 23 | 43 | 2 | 68 | 5,731 | 5,799 | |||||||||||||||||||
Total | $ | 1,171 | $ | 43 | $ | 1,742 | $ | 2,956 | $ | 255,908 | $ | 258,864 | |||||||||||||
30-89 | 90 Days or | Nonaccruals | Total Past | Current | Total | ||||||||||||||||||||
Days | More Past | Due and | Loans | ||||||||||||||||||||||
Loans Past Due and Nonaccruals | Past Due | Due and | Nonaccruals | ||||||||||||||||||||||
December 31, 2013 | Still Accruing | ||||||||||||||||||||||||
Construction, Land and Land Development | $ | 65 | $ | — | $ | 854 | $ | 919 | $ | 30,920 | $ | 31,839 | |||||||||||||
Farmland | — | — | — | — | 1,262 | 1,262 | |||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | — | — | — | — | 14,626 | 14,626 | |||||||||||||||||||
Commercial Mortgages (Owner Occupied) | — | — | 427 | 427 | 33,750 | 34,177 | |||||||||||||||||||
Residential First Mortgages | 668 | — | 1,083 | 1,751 | 112,707 | 114,458 | |||||||||||||||||||
Residential Revolving and Junior Mortgages | 108 | — | 76 | 184 | 23,861 | 24,045 | |||||||||||||||||||
Commercial and Industrial | 16 | — | 311 | 327 | 23,611 | 23,938 | |||||||||||||||||||
Consumer Loans | 60 | 19 | 3 | 82 | 5,904 | 5,986 | |||||||||||||||||||
Total | $ | 917 | $ | 19 | $ | 2,754 | $ | 3,690 | $ | 246,641 | $ | 250,331 | |||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Commercial | Consumer | Total | |||||||||||||||||||||
Loans on | and | Loans | |||||||||||||||||||||||
Real Estate | Industrial | ||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: | |||||||||||||||||||||||||
Beginning Balance | $ | 2,497 | $ | 248 | $ | 205 | $ | 2,950 | |||||||||||||||||
(Charge-offs) | (75 | ) | — | (12 | ) | (87 | ) | ||||||||||||||||||
Recoveries | 8 | — | 5 | 13 | |||||||||||||||||||||
Provision | 159 | (37 | ) | (25 | ) | 97 | |||||||||||||||||||
Ending Balance | $ | 2,589 | $ | 211 | $ | 173 | $ | 2,973 | |||||||||||||||||
Individually evaluated for impairment | $ | 724 | $ | — | $ | 32 | $ | 756 | |||||||||||||||||
Collectively evaluated for impairment | 1,865 | 211 | 141 | 2,217 | |||||||||||||||||||||
Mortgage | Commercial | Consumer | Total | ||||||||||||||||||||||
Loans on | and | Loans | |||||||||||||||||||||||
Real Estate | Industrial | ||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||
June 30, 2013 | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: | |||||||||||||||||||||||||
Beginning Balance | $ | 2,497 | $ | 306 | $ | 231 | $ | 3,034 | |||||||||||||||||
(Charge-offs) | (197 | ) | (17 | ) | (27 | ) | (241 | ) | |||||||||||||||||
Recoveries | 9 | — | 2 | 11 | |||||||||||||||||||||
Provision | 153 | (39 | ) | 65 | 179 | ||||||||||||||||||||
Ending Balance | $ | 2,462 | $ | 250 | $ | 271 | $ | 2,983 | |||||||||||||||||
Individually evaluated for impairment | $ | 760 | $ | — | $ | 72 | $ | 832 | |||||||||||||||||
Collectively evaluated for impairment | 1,702 | 250 | 199 | 2,151 | |||||||||||||||||||||
(Dollars in thousands) | Mortgage | Commercial | Consumer | Total | |||||||||||||||||||||
Loans on | and | Loans | |||||||||||||||||||||||
Real Estate | Industrial | ||||||||||||||||||||||||
For the Six Months Ended | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: | |||||||||||||||||||||||||
Beginning Balance | $ | 2,465 | $ | 256 | $ | 204 | $ | 2,925 | |||||||||||||||||
(Charge-offs) | (214 | ) | — | (21 | ) | (235 | ) | ||||||||||||||||||
Recoveries | 14 | — | 7 | 21 | |||||||||||||||||||||
Provision | 324 | (45 | ) | (17 | ) | 262 | |||||||||||||||||||
Ending Balance | $ | 2,589 | $ | 211 | $ | 173 | $ | 2,973 | |||||||||||||||||
Mortgage | Commercial | Consumer | Total | ||||||||||||||||||||||
Loans on | and | Loans | |||||||||||||||||||||||
Real Estate | Industrial | ||||||||||||||||||||||||
For the Six Months Ended | |||||||||||||||||||||||||
June 30, 2013 | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES: | |||||||||||||||||||||||||
Beginning Balance | $ | 2,572 | $ | 262 | $ | 260 | $ | 3,094 | |||||||||||||||||
(Charge-offs) | (365 | ) | (17 | ) | (55 | ) | (437 | ) | |||||||||||||||||
Recoveries | 60 | — | 4 | 64 | |||||||||||||||||||||
Provision | 195 | 5 | 62 | 262 | |||||||||||||||||||||
Ending Balance | $ | 2,462 | $ | 250 | $ | 271 | $ | 2,983 | |||||||||||||||||
Loan Receivables Evaluated for Impairment Individually and Collectively by Segment | ' | ||||||||||||||||||||||||
Loan receivables evaluated for impairment individually and collectively by segment as of June 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Commercial | Consumer | Total | |||||||||||||||||||||
As of June 30, 2014 | Loans on | and | Loans | ||||||||||||||||||||||
Real Estate | Industrial | ||||||||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,451 | $ | — | $ | 38 | $ | 6,489 | |||||||||||||||||
Collectively evaluated for impairment | 223,936 | 22,678 | 5,761 | 252,375 | |||||||||||||||||||||
Total Gross Loans | $ | 230,387 | $ | 22,678 | $ | 5,799 | $ | 258,864 | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,306 | $ | 311 | $ | 39 | $ | 6,656 | |||||||||||||||||
Collectively evaluated for impairment | 214,101 | 23,627 | 5,947 | 243,675 | |||||||||||||||||||||
Total Gross Loans | $ | 220,407 | $ | 23,938 | $ | 5,986 | $ | 250,331 | |||||||||||||||||
Internal Risk Rating Grades are Assigned to Commercial Loans Not Secured | ' | ||||||||||||||||||||||||
Internal risk rating grades are generally assigned to 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 $250,000 with chronic delinquency, and TDRs, as shown in the following table. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades (refer to Note 2) are evaluated as new information becomes available for each borrowing relationship or at least quarterly. | |||||||||||||||||||||||||
(Dollars in thousands) | Construction, | Farmland | Commercial | Commercial | Commercial | Total | |||||||||||||||||||
Land and | Mortgages | Mortgages | and | ||||||||||||||||||||||
As of June 30, 2014 | Land | (Non-Owner | (Owner | Industrial | |||||||||||||||||||||
Development | Occupied) | Occupied) | |||||||||||||||||||||||
INTERNAL RISK RATING GRADES | |||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 27,624 | $ | 1,174 | $ | 10,509 | $ | 22,580 | $ | 19,217 | $ | 81,104 | |||||||||||||
Watch | 3,465 | — | 4,869 | 4,534 | 2,433 | 15,301 | |||||||||||||||||||
Special mention | 1,410 | — | — | 3,379 | 713 | 5,502 | |||||||||||||||||||
Substandard | 1,306 | — | 339 | 1,741 | 315 | 3,701 | |||||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 33,805 | $ | 1,174 | $ | 15,717 | $ | 32,234 | $ | 22,678 | $ | 105,608 | |||||||||||||
Construction, | Farmland | Commercial | Commercial | Commercial | Total | ||||||||||||||||||||
Land and | Mortgages | Mortgages | and | ||||||||||||||||||||||
As of December 31, 2013 | Land | (Non-Owner | (Owner | Industrial | |||||||||||||||||||||
Development | Occupied) | Occupied) | |||||||||||||||||||||||
INTERNAL RISK RATING GRADES | |||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 25,616 | $ | 1,262 | $ | 9,083 | $ | 23,984 | $ | 20,309 | $ | 80,254 | |||||||||||||
Watch | 3,493 | — | 5,204 | 7,429 | 2,743 | 18,869 | |||||||||||||||||||
Special mention | 1,416 | — | — | 1,001 | 487 | 2,904 | |||||||||||||||||||
Substandard | 1,314 | — | 339 | 1,763 | 399 | 3,815 | |||||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 31,839 | $ | 1,262 | $ | 14,626 | $ | 34,177 | $ | 23,938 | $ | 105,842 | |||||||||||||
Performing and Non Performing Loans | ' | ||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
(Dollars in thousands) | Residential | Residential | Consumer | Total | |||||||||||||||||||||
First | Revolvling | Loans (3) | |||||||||||||||||||||||
As of June 30, 2014 | Mortgages (1) | and Junior | |||||||||||||||||||||||
Mortgages (2) | |||||||||||||||||||||||||
PAYMENT ACTIVITY STATUS | |||||||||||||||||||||||||
Performing | $ | 121,405 | $ | 25,800 | $ | 5,754 | $ | 152,959 | |||||||||||||||||
Nonperforming | 236 | 16 | 45 | 297 | |||||||||||||||||||||
Total | $ | 121,641 | $ | 25,816 | $ | 5,799 | $ | 153,256 | |||||||||||||||||
Residential | Residential | Consumer | Total | ||||||||||||||||||||||
First | Revolvling | Loans (6) | |||||||||||||||||||||||
As of December 31, 2013 | Mortgages (4) | and Junior | |||||||||||||||||||||||
Mortgages (5) | |||||||||||||||||||||||||
PAYMENT ACTIVITY STATUS | |||||||||||||||||||||||||
Performing | $ | 113,375 | $ | 23,969 | $ | 5,964 | $ | 143,308 | |||||||||||||||||
Nonperforming | 1,083 | 76 | 22 | 1,181 | |||||||||||||||||||||
Total | $ | 114,458 | $ | 24,045 | $ | 5,986 | $ | 144,489 | |||||||||||||||||
-1 | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.3 million as of June 30, 2014. | ||||||||||||||||||||||||
-2 | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $155 thousand as of June 30, 2014. | ||||||||||||||||||||||||
-3 | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $7 thousand as of June 30, 2014. | ||||||||||||||||||||||||
-4 | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.6 million as of December 31, 2013. | ||||||||||||||||||||||||
-5 | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $216 thousand as of December 31, 2013. | ||||||||||||||||||||||||
-6 | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $9 thousand as of December 31, 2013. | ||||||||||||||||||||||||
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 June 30, 2014 and December 31, 2013, along with the average recorded investment and interest income recognized for the three and six months ended June 30, 2014 and 2013. | |||||||||||||||||||||||||
(Dollars in thousands) | As of June 30, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
IMPAIRED LOANS | |||||||||||||||||||||||||
With no related allowance: | Recorded | Customers’ Unpaid | Related | Recorded | Customers’ Unpaid | Related | |||||||||||||||||||
Investment | Principal Balance | Allowance | Investment | Principal Balance | Allowance | ||||||||||||||||||||
Construction, land & land development | $ | 451 | $ | 453 | $ | — | $ | 453 | $ | 453 | $ | — | |||||||||||||
Residential First Mortgages | 1,039 | 1,049 | — | 1,053 | 1,057 | — | |||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | — | — | — | — | — | — | |||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 264 | — | 264 | 264 | — | |||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,910 | 1,931 | — | 1,831 | 1,840 | — | |||||||||||||||||||
Commercial & industrial | — | — | — | 311 | 311 | — | |||||||||||||||||||
Consumer (2) | — | — | — | — | — | — | |||||||||||||||||||
3,664 | 3,697 | — | 3,912 | 3,925 | — | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Construction, land & land development | 428 | 447 | 211 | 151 | 156 | 51 | |||||||||||||||||||
Residential First Mortgages | 2,185 | 2,185 | 436 | 2,198 | 2,198 | 409 | |||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 174 | 77 | 251 | 879 | 173 | |||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | — | — | — | |||||||||||||||||||
Commercial Mortgages (Owner occupied) | — | — | — | 105 | 105 | 1 | |||||||||||||||||||
Commercial & industrial | — | — | — | — | — | — | |||||||||||||||||||
Consumer (2) | 38 | 38 | 32 | 39 | 39 | 33 | |||||||||||||||||||
2,825 | 2,844 | 756 | 2,744 | 3,377 | 667 | ||||||||||||||||||||
Total Impaired Loans: | |||||||||||||||||||||||||
Construction, land & land development | 879 | 900 | 211 | 604 | 609 | 51 | |||||||||||||||||||
Residential First Mortgages | 3,224 | 3,234 | 436 | 3,251 | 3,255 | 409 | |||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 174 | 77 | 251 | 879 | 173 | |||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 264 | — | 264 | 264 | — | |||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,910 | 1,931 | — | 1,936 | 1,945 | 1 | |||||||||||||||||||
Commercial & industrial | — | — | — | 311 | 311 | — | |||||||||||||||||||
Consumer (2) | 38 | 38 | 32 | 39 | 39 | 33 | |||||||||||||||||||
$ | 6,489 | $ | 6,541 | $ | 756 | $ | 6,656 | $ | 7,302 | $ | 667 | ||||||||||||||
-1 | Junior mortgages include equity lines. | ||||||||||||||||||||||||
-2 | Includes credit cards. | ||||||||||||||||||||||||
For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Interest | |||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||
Construction, land & land development | $ | 451 | $ | 1 | $ | 13 | $ | — | |||||||||||||||||
Residential First Mortgages | 1,042 | 10 | 1,668 | 24 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | — | — | 97 | — | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 4 | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,917 | 20 | 752 | 8 | |||||||||||||||||||||
Consumer (2) | — | — | — | — | |||||||||||||||||||||
3,674 | 35 | 2,530 | 32 | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Construction, land & land development | 288 | 1 | 200 | — | |||||||||||||||||||||
Residential First Mortgages | 2,186 | 26 | 1,845 | 24 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 2 | 1,124 | 2 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | — | — | 533 | 3 | |||||||||||||||||||||
Consumer (2) | 38 | 1 | 73 | 1 | |||||||||||||||||||||
2,686 | 30 | 3,775 | 30 | ||||||||||||||||||||||
Total | |||||||||||||||||||||||||
Construction, land & land development | 739 | 2 | 213 | — | |||||||||||||||||||||
Residential First Mortgages | 3,228 | 36 | 3,513 | 48 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 2 | 1,221 | 2 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 4 | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,917 | 20 | 1,285 | 11 | |||||||||||||||||||||
Consumer (2) | 38 | 1 | 73 | 1 | |||||||||||||||||||||
$ | 6,360 | $ | 65 | $ | 6,305 | $ | 62 | ||||||||||||||||||
-1 | Junior mortgages include equity lines. | ||||||||||||||||||||||||
-2 | Includes credit cards. | ||||||||||||||||||||||||
For the Six Months Ended | For the Six Months Ended | ||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Interest | |||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||
Construction, land & land development | $ | 452 | $ | 2 | $ | 13 | $ | — | |||||||||||||||||
Residential First Mortgages | 1,046 | 21 | 1,570 | 42 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | — | — | 98 | — | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 8 | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,924 | 42 | 754 | 15 | |||||||||||||||||||||
Consumer (2) | — | — | — | — | |||||||||||||||||||||
3,686 | 73 | 2,435 | 57 | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Construction, land & land development | 242 | 1 | 200 | — | |||||||||||||||||||||
Residential First Mortgages | 2,190 | 47 | 1,778 | 50 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 4 | 1,068 | 4 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | — | — | 536 | 3 | |||||||||||||||||||||
Consumer (2) | 38 | 2 | 73 | 3 | |||||||||||||||||||||
2,644 | 54 | 3,655 | 60 | ||||||||||||||||||||||
Total | |||||||||||||||||||||||||
Construction, land & land development | 694 | 3 | 213 | — | |||||||||||||||||||||
Residential First Mortgages | 3,236 | 68 | 3,348 | 92 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 4 | 1,166 | 4 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 8 | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,924 | 42 | 1,290 | 18 | |||||||||||||||||||||
Consumer (2) | 38 | 2 | 73 | 3 | |||||||||||||||||||||
$ | 6,330 | $ | 127 | $ | 6,090 | $ | 117 | ||||||||||||||||||
-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 three and six months ended June 30, 2014 and 2013. | |||||||||||||||||||||||||
For the three months ended | For the three months ended | ||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-Modification | Post-Modification | Number of | Pre-Modification | Post-Modification | |||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS | Loans (1) | Outstanding | Outstanding | Loans | Outstanding | Outstanding | |||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||
Construction, land & land development | 2 | $ | 282 | 282 | — | $ | — | $ | — | ||||||||||||||||
-1 | Modifications were an extension of the loan terms. | ||||||||||||||||||||||||
For the six months ended | For the six months ended | ||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS | Number of | Pre-Modification | Post-Modification | Number of | Pre-Modification | Post-Modification | |||||||||||||||||||
Loans (1) | Outstanding | Outstanding | Loans (2) | Outstanding | Outstanding | ||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||
Construction, land & land development | 2 | $ | 282 | $ | 282 | — | $ | — | $ | — | |||||||||||||||
Residenital first mortages | — | — | — | 2 | 315 | 315 | |||||||||||||||||||
-1 | Modifications were an extension of the loan terms. | ||||||||||||||||||||||||
-2 | Modifications were capitalization of the interest. | ||||||||||||||||||||||||
For the three months ended | For the three months ended | ||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||
THAT SUBSEQUENTLY DEFAULTED | Loans | Investment | Loans | Investment | |||||||||||||||||||||
Residential revolving and junior mortgages | 1 | $ | 75 | — | $ | — | |||||||||||||||||||
For the six months ended | For the six months ended | ||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||
THAT SUBSEQUENTLY DEFAULTED | Loans | Investment | Loans | Investment | |||||||||||||||||||||
Residential revolving and junior mortgages | 1 | $ | 75 | — | $ | — | |||||||||||||||||||
Summary of Properties Included in Other Real Estate Owned (OREO) | ' | ||||||||||||||||||||||||
The table below details the properties included in other real estate owned (“OREO”) as of June 30, 2014 and December 31, 2013. There were no collateralized consumer residential mortgage loans in the process of foreclosure as of June 30, 2014. | |||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | No. of | Carrying | No. of | Carrying | |||||||||||||||||||||
Properties | Value | Properties | Value | ||||||||||||||||||||||
Residential | 10 | $ | 1,653 | 11 | $ | 2,442 | |||||||||||||||||||
Land lots | 13 | 601 | 14 | 684 | |||||||||||||||||||||
Convenience store | 2 | 234 | 2 | 239 | |||||||||||||||||||||
Restaurant | 1 | 107 | 1 | 107 | |||||||||||||||||||||
Commerical properties | 1 | 304 | 2 | 425 | |||||||||||||||||||||
Total | 27 | $ | 2,899 | 30 | $ | 3,897 | |||||||||||||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||||||||||||||||||||
Average | Per share | Average | Per share | Average | Per share | Average | Per share | ||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
Basic earnings per share | 4,818,733 | $ | 0.05 | 4,817,856 | $ | 0.05 | 4,818,311 | $ | 0.15 | 4,815,845 | $ | 0.08 | |||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||
Stock options | 18,050 | 2,158 | 14,105 | 2,413 | |||||||||||||||||||||||||||||
Diluted earnings per share | 4,836,783 | $ | 0.05 | 4,820,014 | $ | 0.05 | 4,832,416 | $ | 0.15 | 4,818,258 | $ | 0.08 | |||||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value of Options | ' | ||||||||||||||||
The variables used in these calculations of the fair value of the options are as follows: | |||||||||||||||||
For the six months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk free interest rate (5 year Treasury) | 2.7 | % | 0.86 | % | |||||||||||||
Expected dividend yield | 0 | % | 3.6 | % | |||||||||||||
Expected term (years) | 5 | 5 | |||||||||||||||
Expected volatility | 51.4 | % | 33.8 | % | |||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
Stock option activity for the six months ended June 30, 2014 (unaudited) is summarized below: | |||||||||||||||||
Shares | Weighted Average | Weighted | Aggregate | ||||||||||||||
Exercise | Average | Intrinsic | |||||||||||||||
Price | Remaining | Value (1) | |||||||||||||||
Contractual | |||||||||||||||||
Life (in years) | |||||||||||||||||
Options outstanding, January 1, 2014 | 191,002 | $ | 7.35 | 6.8 | |||||||||||||
Granted | 7,000 | 5.99 | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Exercised | — | — | |||||||||||||||
Expired | (7,239 | ) | 14.65 | ||||||||||||||
Options outstanding and exercisable, June 30, 2014 | 190,763 | $ | 7.02 | 6.7 | $ | 84,644 | |||||||||||
-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 June 30, 2014. This amount changes based on changes in the market value of the Company’s common stock. |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Components of Net Periodic (Benefit) Cost | ' | ||||||||||||||||
Components of Net Periodic (Benefit) Cost | |||||||||||||||||
(Dollars in thousands) | Pension Benefits | Post-Retirement Benefits | |||||||||||||||
Six months ended June 30, | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | — | $ | — | $ | 8 | $ | 11 | |||||||||
Interest cost | 71 | 71 | 15 | 15 | |||||||||||||
Expected return on plan assets | (101 | ) | (107 | ) | — | — | |||||||||||
Amortization of unrecognized net loss | 19 | 45 | — | 2 | |||||||||||||
Amortization of transition obligation | — | — | — | 2 | |||||||||||||
Net periodic (benefit) cost | $ | (11 | ) | $ | 9 | $ | 23 | $ | 30 | ||||||||
Long_Term_Debt_Tables
Long Term Debt (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Advances of Long Term Debt | ' | ||||||||||||||||
The four advances are shown in the following table. | |||||||||||||||||
Description | Balance | Originated | Current | Maturity | |||||||||||||
Interest Rate | Date | ||||||||||||||||
Adjustable Rate Hybrid | $ | 10,000,000 | 4/12/13 | 2.60705 | % | 4/13/20 | |||||||||||
Adjustable Rate Credit | 5,000,000 | 5/20/14 | 0.2281 | % | 5/20/15 | ||||||||||||
Fixed Rate Credit | 5,000,000 | 6/18/14 | 0.26 | % | 6/18/15 | ||||||||||||
Fixed Rate Credit | 5,000,000 | 6/26/14 | 0.26 | % | 6/26/15 | ||||||||||||
$ | 25,000,000 | ||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 June 30, 2014 and December 31, 2013: | |||||||||||||||||
(Dollars in thousands) | Fair Value Measurements at June 30, 2014 Using | ||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Securities available-for-sale: | |||||||||||||||||
U. S. Government agencies | $ | 10,007 | $ | — | $ | 10,007 | $ | — | |||||||||
State and municipal obligations | 24,825 | — | 24,825 | — | |||||||||||||
Certificates of deposit | 1,994 | — | 1,994 | — | |||||||||||||
Total securities available-for-sale: | $ | 36,826 | $ | — | $ | 36,826 | $ | — | |||||||||
Mortgage servicing rights | $ | 582 | $ | — | $ | — | $ | 582 | |||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | 3 | $ | 3 | $ | — | $ | — | |||||||||
Mutual funds - fixed income | 1,070 | 1,070 | — | — | |||||||||||||
Mutual funds - equity | 1,747 | 1,747 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,820 | $ | 2,820 | $ | — | $ | — | |||||||||
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 | $ | — | $ | 9,308 | $ | — | |||||||||
State and municipal obligations | 26,557 | — | 26,557 | — | |||||||||||||
Certificates of deposit | 1,745 | — | 1,745 | — | |||||||||||||
Auction rate securities | 912 | — | — | 912 | |||||||||||||
Total securities available-for-sale: | $ | 38,522 | $ | — | $ | 37,610 | $ | 912 | |||||||||
Mortgage servicing rights | $ | 579 | $ | — | $ | — | $ | 579 | |||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | 3 | $ | 3 | $ | — | $ | — | |||||||||
Mutual funds - fixed income | 1,070 | 1,070 | — | — | |||||||||||||
Mutual funds - equity | 1,747 | 1,747 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,820 | $ | 2,820 | $ | — | $ | — | |||||||||
Reconciliation of Items Using Level Three Inputs | ' | ||||||||||||||||
The reconciliation of items using Level 3 inputs is as follows: | |||||||||||||||||
(Dollars in thousands) | Auction | MSRs | |||||||||||||||
Rate | |||||||||||||||||
Security | |||||||||||||||||
Balance, January 1, 2014 | $ | 912 | $ | 579 | |||||||||||||
Impairments | — | — | |||||||||||||||
Fair value adjustments | — | 3 | |||||||||||||||
Sales | (912 | ) | — | ||||||||||||||
Balance, June 30, 2014 | $ | — | $ | 582 | |||||||||||||
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 June 30, 2014 Using | |||||||||||||||||
(Dollars in thousands) | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
Description | June 30, 2014 | ||||||||||||||||
Impaired Loans, net | $ | 2,069 | $ | — | $ | — | $ | 2,069 | |||||||||
Other real estate owned, net | 2,899 | — | — | 2,899 | |||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Balance as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
Description | December 31, 2013 | ||||||||||||||||
Impaired Loans, net | $ | 2,077 | $ | — | $ | — | $ | 2,077 | |||||||||
Other real estate owned, net | 3,897 | — | — | 3,897 | |||||||||||||
Summary of Quantitative Fair Value Measurements for Level 3 | ' | ||||||||||||||||
The following table displays quantitative information about Level 3 Fair Value Measurements as of June, 2014: | |||||||||||||||||
(Dollars in thousands) | Balance as of | Valuation Technique | Unobservable Input | Range (Weighted | |||||||||||||
June 30, 2014 | Average) | ||||||||||||||||
Impaired Loans, net | $ | 2,069 | Discounted appraised value | Selling Cost | 10% - 20%(10%) | ||||||||||||
Lack of Marketability | 25% - 100%(56%) | ||||||||||||||||
Other real estate owned, net | 2,899 | Discounted appraised value | Selling Cost | 3% - 13%(5%) | |||||||||||||
Lack of Marketability | 7% - 20%(11%) | ||||||||||||||||
The following table displays quantitative information about Level 3 Fair Value Measurements as of December, 2013: | |||||||||||||||||
(Dollars in thousands) | Balance as of | Valuation Technique | Unobservable Input | Range (Weighted | |||||||||||||
December 31, 2013 | Average) | ||||||||||||||||
Impaired Loans, net | $ | 2,077 | Discounted appraised value | Selling Cost | 10% - 20%(10%) | ||||||||||||
Lack of Marketability | 25% - 100%(54%) | ||||||||||||||||
Other real estate owned, net | 3,897 | Discounted appraised value | Selling Cost | 3% - 13%(6%) | |||||||||||||
Lack of Marketability | 7% - 30%(15%) | ||||||||||||||||
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 June 30, 2014 Using | |||||||||||||||||
(Dollars in thousands) | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
Description | June 30,2014 | ||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 6,793 | $ | 6,793 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 10,819 | 10,819 | — | — | |||||||||||||
Federal funds sold | 204 | 204 | — | — | |||||||||||||
Securities available-for-sale | 36,826 | — | 36,826 | — | |||||||||||||
Restricted securities | 1,980 | — | — | 1,980 | |||||||||||||
Loans, net | 256,345 | — | — | 262,561 | |||||||||||||
Loans held for sale | 390 | — | — | 390 | |||||||||||||
Accrued interest receivable | 1,112 | — | 1,112 | — | |||||||||||||
Mortgage servicing rights | 582 | — | — | 582 | |||||||||||||
Financial Liabilities: | |||||||||||||||||
Non-interest-bearing liabilities | $ | 58,813 | $ | 58,813 | $ | — | $ | — | |||||||||
Savings and other interest-bearing deposits | 113,403 | — | 113,403 | — | |||||||||||||
Time deposits | 94,870 | — | — | 96,065 | |||||||||||||
Securities sold under repurchase agreements | 8,990 | — | 8,990 | — | |||||||||||||
FHLB advances | 25,000 | 15,000 | 10,984 | — | |||||||||||||
Accrued interest payable | 134 | — | 134 | — | |||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Balance as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
Description | December 31, 2013 | ||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 6,789 | $ | 6,789 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 8,900 | 8,900 | — | — | |||||||||||||
Federal funds sold | 120 | 120 | — | — | |||||||||||||
Securities available-for-sale | 38,522 | — | 37,610 | 912 | |||||||||||||
Restricted securities | 1,638 | — | — | 1,638 | |||||||||||||
Loans, net | 247,912 | — | — | 253,139 | |||||||||||||
Loans held for sale | 196 | — | — | 196 | |||||||||||||
Accrued interest receivable | 1,124 | — | 1,124 | — | |||||||||||||
Mortgage servicing rights | 579 | — | — | 579 | |||||||||||||
Financial Liabilities: | |||||||||||||||||
Non-interest-bearing liabilities | $ | 57,805 | $ | 57,805 | $ | — | $ | — | |||||||||
Savings and other interest-bearing deposits | 114,056 | — | 114,056 | — | |||||||||||||
Time deposits | 96,486 | — | — | 98,049 | |||||||||||||
Securities sold under repurchase agreements | 9,118 | — | 9,118 | — | |||||||||||||
FHLB advances | 15,000 | — | 15,923 | — | |||||||||||||
Accrued interest payable | 167 | — | 167 | — |
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Balances in Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
The balances in accumulated other comprehensive income (loss) are shown in the following tables (dollars in thousands): | |||||||||||||
(Dollars in thousands) | Net Unrealized | Pension and | Accumulated Other | ||||||||||
Gains (Losses) | Post-retirement | Comprehensive | |||||||||||
on Securities | Benefit Plans | Income (Loss) | |||||||||||
Balance April 1, 2014 | $ | (468 | ) | $ | (382 | ) | $ | (850 | ) | ||||
Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $112 | 223 | — | 223 | ||||||||||
Reclassification for previously unrealized net losses recognized in income, net of tax benefit of $6 | 10 | — | 10 | ||||||||||
Balance June 30, 2014 | $ | (235 | ) | $ | (382 | ) | $ | (617 | ) | ||||
Net Unrealized | Pension and | Accumulated Other | |||||||||||
Gains (Losses) | Post-retirement | Comprehensive | |||||||||||
on Securities | Benefit Plans | Income (Loss) | |||||||||||
Balance April 1, 2013 | $ | 229 | $ | (660 | ) | $ | (431 | ) | |||||
Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $423 | (820 | ) | — | (820 | ) | ||||||||
Reclassification for previously unrealized net gains recognized in income, net of tax benefit of $50 | (98 | ) | — | (98 | ) | ||||||||
Balance June 30, 2013 | $ | (689 | ) | $ | (660 | ) | $ | (1,349 | ) | ||||
Net Unrealized | Pension and | Accumulated Other | |||||||||||
Gains (Losses) | Post-retirement | Comprehensive | |||||||||||
on Securities | Benefit Plans | Income (Loss) | |||||||||||
Balance January 1, 2014 | $ | (791 | ) | $ | (382 | ) | $ | (1,173 | ) | ||||
Change in net unrealized holding losses on securities, before reclassification, net of tax expense of $280 | 545 | — | 545 | ||||||||||
Reclassification for previously unrealized net losses recognized in income, net of tax benefit of $6 | 11 | — | 11 | ||||||||||
Balance June 30, 2014 | $ | (235 | ) | $ | (382 | ) | $ | (617 | ) | ||||
Net Unrealized | Pension and | Accumulated Other | |||||||||||
Gains (Losses) | Post-retirement | Comprehensive | |||||||||||
on Securities | Benefit Plans | Income (Loss) | |||||||||||
Balance January 1, 2013 | $ | 279 | $ | (660 | ) | $ | (381 | ) | |||||
Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $448 | (868 | ) | — | (868 | ) | ||||||||
Reclassification for previously unrealized net gains recognized in income, net of tax of $51 | (100 | ) | — | (100 | ) | ||||||||
Balance June 30, 2013 | $ | (689 | ) | $ | (660 | ) | $ | (1,349 | ) | ||||
Reclassification of Unrealized (Losses) Gains and Impairments on Securities | ' | ||||||||||||
Reclassification for previously unrealized (losses) gains and impairments on securities are reported in the Consolidated Statements of Income as follows. No unrealized gains (losses) on pension and post-employment related costs were reclassified to the Consolidated Statements of Income in the three and six months ended June 30, 2014 and 2013. | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Reclassification for the Three Months Ended | |||||||||||||
Holding (Losses) Gains on Securities | |||||||||||||
(In thousands) | June 30, 2014 | June 30, 2013 | |||||||||||
Net (losses) gains on sale of securities available-for-securities | $ | (16 | ) | $ | 268 | ||||||||
Loss on securities with other-than temporary impairment | — | (120 | ) | ||||||||||
Tax benefit (expense) | 6 | (50 | ) | ||||||||||
Impact on net income | $ | (10 | ) | $ | 98 | ||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Reclassification for the Six Months Ended | |||||||||||||
Holding Gains (Losses) on Securities | |||||||||||||
(In thousands) | June 30, 2014 | June 30, 2013 | |||||||||||
Net (losses) gains on sale of securities available-for-securities | $ | (17 | ) | $ | 271 | ||||||||
Loss on securities with other-than-temporary impairment | — | (120 | ) | ||||||||||
Tax benefit (expense) | 6 | (51 | ) | ||||||||||
Impact on net income | $ | (11 | ) | $ | 100 | ||||||||
General_Additional_Information
General - Additional Information (Detail) | Jun. 30, 2014 |
Bank Of Lancaster | ' |
Organization Presentation And General [Line Items] | ' |
Percent of ownership | 100.00% |
Bay Trust Company | ' |
Organization Presentation And General [Line Items] | ' |
Percent of ownership | 100.00% |
Steptoes Holdings | ' |
Organization Presentation And General [Line Items] | ' |
Percent of ownership | 100.00% |
Significant_Accounting_Policie2
Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2008 | Jun. 30, 2014 | Dec. 31, 2013 | |
Quarter | Quarter | Quarter | |||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
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 troubled debt restructurings ("TDRs"). | ' |
Loan Receivables | ' | ' | ' | $105,608,000 | $105,842,000 |
Special Mention | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Loan Receivables | ' | ' | ' | 5,502,000 | 2,904,000 |
Loan due days | ' | ' | ' | '30 days | ' |
Residential First Mortgages | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Minimum balance in order to assign a risk rating grade | ' | ' | ' | 1,000,000 | ' |
Consumer Loans | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Minimum balance in order to assign a risk rating grade | ' | ' | ' | 250,000 | ' |
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 | ' |
Securities_Aggregate_Amortized
Securities - Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities Portfolio (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | $37,184 | $39,721 | |
Gross Unrealized Gains | 192 | 129 | |
Gross Unrealized (Losses) | -550 | -1,328 | |
Fair Value | 36,826 | 38,522 | [1] |
Certificates of Deposit | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | 1,984 | 1,736 | |
Gross Unrealized Gains | 10 | 9 | |
Fair Value | 1,994 | 1,745 | |
US Government Agencies | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | 10,057 | 9,383 | |
Gross Unrealized Gains | 11 | 11 | |
Gross Unrealized (Losses) | -61 | -86 | |
Fair Value | 10,007 | 9,308 | |
State and Municipal Obligations | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | 25,143 | 27,690 | |
Gross Unrealized Gains | 171 | 109 | |
Gross Unrealized (Losses) | -489 | -1,242 | |
Fair Value | 24,825 | 26,557 | |
Auction Rate Security | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized Cost | ' | 912 | |
Fair Value | ' | $912 | |
[1] | Derived from the audited consolidated financial statements. |
Securities_Gross_Realized_Gain
Securities - Gross Realized Gains and Gross Realized Losses on Sales of Securities (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Gross realized gains | $5 | $268 | $5 | $272 |
Gross realized losses | -21 | ' | -22 | -1 |
Net realized gains (losses) | -16 | 268 | -17 | 271 |
Aggregate proceeds | $2,039 | $7,165 | $3,331 | $8,260 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Bond | Bond | Bond | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Average yields on securities | 2.36% | 2.27% | 2.37% | 2.22% | ' |
Market value of securities | $13,300,000 | ' | $13,300,000 | ' | $12,900,000 |
Municipal bonds with unrealized loss position | 41 | ' | 41 | ' | 50 |
Federal agencies bonds with unrealized loss position | 15 | ' | 15 | ' | 15 |
Company's investment in Federal Home Loan Bank stock | 1,421,400 | ' | 1,421,400 | ' | 1,079,800 |
Company's investment in Federal Reserve Bank stock | $382,000 | ' | $382,000 | ' | $382,000 |
Securities_Unrealized_Loss_Pos
Securities - Unrealized Loss Positions (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | $3,495 | $19,063 |
Less than 12 months, Unrealized Loss | 23 | 1,186 |
12 months or more, Fair Value | 15,347 | 3,768 |
12 months or more, Unrealized Loss | 527 | 142 |
Fair Value, Total | 18,842 | 22,831 |
Total Unrealized Loss | 550 | 1,328 |
US Government Agencies | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | 1,903 | 4,808 |
Less than 12 months, Unrealized Loss | 8 | 66 |
12 months or more, Fair Value | 4,235 | 1,462 |
12 months or more, Unrealized Loss | 53 | 20 |
Fair Value, Total | 6,138 | 6,270 |
Total Unrealized Loss | 61 | 86 |
State and Municipal Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Fair Value | 1,592 | 14,255 |
Less than 12 months, Unrealized Loss | 15 | 1,120 |
12 months or more, Fair Value | 11,112 | 2,306 |
12 months or more, Unrealized Loss | 474 | 122 |
Fair Value, Total | 12,704 | 16,561 |
Total Unrealized Loss | $489 | $1,242 |
Loans_Summary_of_Balances_of_L
Loans - Summary of Balances of Loans (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Summary of balances of loans | ' | ' | |
Total loans | $258,864 | $250,331 | |
Net unamortized deferred loans costs | 454 | 506 | |
Allowance for loan losses | -2,973 | -2,925 | [1] |
Loans, net | 256,345 | 247,912 | [1] |
Construction, Land and Land Development | ' | ' | |
Summary of balances of loans | ' | ' | |
Total loans | 33,805 | 31,839 | |
Farmland | ' | ' | |
Summary of balances of loans | ' | ' | |
Total loans | 1,174 | 1,262 | |
Commercial Mortgages (Non-Owner Occupied) | ' | ' | |
Summary of balances of loans | ' | ' | |
Total loans | 15,717 | 14,626 | |
Commercial Mortgages (Owner Occupied) | ' | ' | |
Summary of balances of loans | ' | ' | |
Total loans | 32,234 | 34,177 | |
Residential First Mortgages | ' | ' | |
Summary of balances of loans | ' | ' | |
Total loans | 121,641 | 114,458 | |
Residential Revolving and Junior Mortgages | ' | ' | |
Summary of balances of loans | ' | ' | |
Total loans | 25,816 | 24,045 | |
Commercial and Industrial loans | ' | ' | |
Summary of balances of loans | ' | ' | |
Total loans | 22,678 | 23,938 | |
Consumer Loans | ' | ' | |
Summary of balances of loans | ' | ' | |
Total loans | $5,799 | $5,986 | |
[1] | Derived from the audited consolidated financial statements. |
Loans_Additional_Informations_
Loans - Additional Informations (Detail) (Minimum) | 6 Months Ended |
Jun. 30, 2014 | |
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_Recorded_Investment_in_P
Loans - Recorded Investment in Past Due and Non-accruing Loans (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | $1,171 | $917 |
90 Days or More Past Due and Still Accruing | 43 | 19 |
Nonaccruals | 1,742 | 2,754 |
Total Past Due and Nonaccruals | 2,956 | 3,690 |
Current | 255,908 | 246,641 |
Total Gross Loans | 258,864 | 250,331 |
Construction, Land and Land Development | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | 64 | 65 |
Nonaccruals | 847 | 854 |
Total Past Due and Nonaccruals | 911 | 919 |
Current | 32,894 | 30,920 |
Total Gross Loans | 33,805 | 31,839 |
Farmland | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Current | 1,174 | 1,262 |
Total Gross Loans | 1,174 | 1,262 |
Commercial Mortgages (Non-Owner Occupied) | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Nonaccruals | 413 | ' |
Total Past Due and Nonaccruals | 413 | ' |
Current | 15,304 | 14,626 |
Total Gross Loans | 15,717 | 14,626 |
Commercial Mortgages (Owner Occupied) | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Nonaccruals | ' | 427 |
Total Past Due and Nonaccruals | ' | 427 |
Current | 32,234 | 33,750 |
Total Gross Loans | 32,234 | 34,177 |
Residential First Mortgages | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | 954 | 668 |
Nonaccruals | 236 | 1,083 |
Total Past Due and Nonaccruals | 1,190 | 1,751 |
Current | 120,451 | 112,707 |
Total Gross Loans | 121,641 | 114,458 |
Residential Revolving and Junior Mortgages | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | 109 | 108 |
Nonaccruals | 16 | 76 |
Total Past Due and Nonaccruals | 125 | 184 |
Current | 25,691 | 23,861 |
Total Gross Loans | 25,816 | 24,045 |
Commercial and Industrial loans | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | 21 | 16 |
Nonaccruals | 228 | 311 |
Total Past Due and Nonaccruals | 249 | 327 |
Current | 22,429 | 23,611 |
Total Gross Loans | 22,678 | 23,938 |
Consumer Loans | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-89 Days Past Due | 23 | 60 |
90 Days or More Past Due and Still Accruing | 43 | 19 |
Nonaccruals | 2 | 3 |
Total Past Due and Nonaccruals | 68 | 82 |
Current | 5,731 | 5,904 |
Total Gross Loans | $5,799 | $5,986 |
Allowance_for_Loan_Losses_Allo
Allowance for Loan Losses - Allowance for Loan Losses by Portfolio Segment (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
ALLOWANCE FOR LOAN LOSSES: | ' | ' | ' | ' |
Beginning Balance | $2,950 | $3,034 | $2,925 | $3,094 |
(Charge-offs) | -87 | -241 | -235 | -437 |
Recoveries | 13 | 11 | 21 | 64 |
Provision | 97 | 179 | 262 | 262 |
Ending Balance | 2,973 | 2,983 | 2,973 | 2,983 |
Individually evaluated for impairment | 756 | 832 | 756 | 832 |
Collectively evaluated for impairment | 2,217 | 2,151 | 2,217 | 2,151 |
Mortgage Loans on Real Estate | ' | ' | ' | ' |
ALLOWANCE FOR LOAN LOSSES: | ' | ' | ' | ' |
Beginning Balance | 2,497 | 2,497 | 2,465 | 2,572 |
(Charge-offs) | -75 | -197 | -214 | -365 |
Recoveries | 8 | 9 | 14 | 60 |
Provision | 159 | 153 | 324 | 195 |
Ending Balance | 2,589 | 2,462 | 2,589 | 2,462 |
Individually evaluated for impairment | 724 | 760 | 724 | 760 |
Collectively evaluated for impairment | 1,865 | 1,702 | 1,865 | 1,702 |
Commercial and Industrial loans | ' | ' | ' | ' |
ALLOWANCE FOR LOAN LOSSES: | ' | ' | ' | ' |
Beginning Balance | 248 | 306 | 256 | 262 |
(Charge-offs) | ' | -17 | ' | -17 |
Provision | -37 | -39 | -45 | 5 |
Ending Balance | 211 | 250 | 211 | 250 |
Collectively evaluated for impairment | 211 | 250 | 211 | 250 |
Consumer Loans | ' | ' | ' | ' |
ALLOWANCE FOR LOAN LOSSES: | ' | ' | ' | ' |
Beginning Balance | 205 | 231 | 204 | 260 |
(Charge-offs) | -12 | -27 | -21 | -55 |
Recoveries | 5 | 2 | 7 | 4 |
Provision | -25 | 65 | -17 | 62 |
Ending Balance | 173 | 271 | 173 | 271 |
Individually evaluated for impairment | 32 | 72 | 32 | 72 |
Collectively evaluated for impairment | $141 | $199 | $141 | $199 |
Allowance_for_Loan_Losses_Loan
Allowance for Loan Losses - Loan Receivables Evaluated for Impairment Individually and Collectively by Segment (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Individually evaluated for impairment | $6,489 | $6,656 |
Collectively evaluated for impairment | 252,375 | 243,675 |
Total Gross Loans | 258,864 | 250,331 |
Mortgage Loans on Real Estate | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Individually evaluated for impairment | 6,451 | 6,306 |
Collectively evaluated for impairment | 223,936 | 214,101 |
Total Gross Loans | 230,387 | 220,407 |
Commercial and Industrial loans | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Individually evaluated for impairment | ' | 311 |
Collectively evaluated for impairment | 22,678 | 23,627 |
Total Gross Loans | 22,678 | 23,938 |
Consumer Loans | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Individually evaluated for impairment | 38 | 39 |
Collectively evaluated for impairment | 5,761 | 5,947 |
Total Gross Loans | $5,799 | $5,986 |
Allowance_for_Loan_Losses_Addi
Allowance for Loan Losses - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Period of nonperforming loans | ' | ' | '90 days | ' | ' |
Non-accruing loans excluded from impaired loan | $325,000 | ' | $325,000 | ' | $724,000 |
Non-accruing loans accrued interest | 6,000 | 9,000 | 13,000 | 20,000 | ' |
Residential | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Residential properties collateralized with loan | ' | ' | 0 | ' | ' |
Residential First Mortgages | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Minimum balance in order to assign a risk rating grade | 1,000,000 | ' | 1,000,000 | ' | ' |
Consumer Loans | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Minimum balance in order to assign a risk rating grade | $250,000 | ' | $250,000 | ' | ' |
Allowance_for_Loan_Losses_Inte
Allowance for Loan Losses - Internal Risk Rating Grades (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | $105,608,000 | $105,842,000 |
Pass | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 81,104,000 | 80,254,000 |
Watch | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 15,301,000 | 18,869,000 |
Special Mention | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 5,502,000 | 2,904,000 |
Substandard | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 3,701,000 | 3,815,000 |
Construction, Land and Land Development | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 33,805,000 | 31,839,000 |
Construction, Land and Land Development | Pass | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 27,624,000 | 25,616,000 |
Construction, Land and Land Development | Watch | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 3,465,000 | 3,493,000 |
Construction, Land and Land Development | Special Mention | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 1,410,000 | 1,416,000 |
Construction, Land and Land Development | Substandard | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 1,306,000 | 1,314,000 |
Farmland | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 1,174,000 | 1,262,000 |
Farmland | Pass | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 1,174,000 | 1,262,000 |
Commercial Mortgages (Non-Owner Occupied) | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 15,717,000 | 14,626,000 |
Commercial Mortgages (Non-Owner Occupied) | Pass | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 10,509,000 | 9,083,000 |
Commercial Mortgages (Non-Owner Occupied) | Watch | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 4,869,000 | 5,204,000 |
Commercial Mortgages (Non-Owner Occupied) | Substandard | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 339,000 | 339,000 |
Commercial Mortgages (Owner Occupied) | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 32,234,000 | 34,177,000 |
Commercial Mortgages (Owner Occupied) | Pass | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 22,580,000 | 23,984,000 |
Commercial Mortgages (Owner Occupied) | Watch | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 4,534,000 | 7,429,000 |
Commercial Mortgages (Owner Occupied) | Special Mention | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 3,379,000 | 1,001,000 |
Commercial Mortgages (Owner Occupied) | Substandard | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 1,741,000 | 1,763,000 |
Commercial and Industrial loans | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 22,678,000 | 23,938,000 |
Commercial and Industrial loans | Pass | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 19,217,000 | 20,309,000 |
Commercial and Industrial loans | Watch | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 2,433,000 | 2,743,000 |
Commercial and Industrial loans | Special Mention | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | 713,000 | 487,000 |
Commercial and Industrial loans | Substandard | ' | ' |
INTERNAL RISK RATING GRADES | ' | ' |
Loan Receivables | $315,000 | $399,000 |
Allowance_for_Loan_Losses_Perf
Allowance for Loan Losses - Performing and Non Performing Loans (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Performing and non performing loans | ' | ' | ||
Loan receivables | $153,256 | $144,489 | ||
Performing | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 152,959 | 143,308 | ||
Nonperforming | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 297 | 1,181 | ||
Residential First Mortgages | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 121,641 | [1] | 114,458 | [2] |
Residential First Mortgages | Performing | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 121,405 | [1] | 113,375 | [2] |
Residential First Mortgages | Nonperforming | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 236 | [1] | 1,083 | [2] |
Residential Revolving and Junior Mortgages | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 25,816 | [3] | 24,045 | [4] |
Residential Revolving and Junior Mortgages | Performing | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 25,800 | [3] | 23,969 | [4] |
Residential Revolving and Junior Mortgages | Nonperforming | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 16 | [3] | 76 | [4] |
Consumer Loans | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 5,799 | [5] | 5,986 | [6] |
Consumer Loans | Performing | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | 5,754 | [5] | 5,964 | [6] |
Consumer Loans | Nonperforming | ' | ' | ||
Performing and non performing loans | ' | ' | ||
Loan receivables | $45 | [5] | $22 | [6] |
[1] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.3 million as of June 30, 2014. | |||
[2] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.6 million as of December 31, 2013. | |||
[3] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $155 thousand as of June 30, 2014. | |||
[4] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $216 thousand as of December 31, 2013. | |||
[5] | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $7 thousand as of June 30, 2014. | |||
[6] | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $9 thousand as of December 31, 2013. |
Allowance_for_Loan_Losses_Perf1
Allowance for Loan Losses - Performing and Non Performing Loans (Parenthetical) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | $153,256 | $144,489 | ||
Residential First Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | 121,641 | [1] | 114,458 | [2] |
Residential Revolving and Junior Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | 25,816 | [3] | 24,045 | [4] |
Consumer Loans | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | 5,799 | [5] | 5,986 | [6] |
Substandard | Residential First Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | 2,300 | 2,600 | ||
Substandard | Residential Revolving and Junior Mortgages | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | 155 | 216 | ||
Substandard | Consumer Loans | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Risk rating grade totaled | $7 | $9 | ||
[1] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.3 million as of June 30, 2014. | |||
[2] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.6 million as of December 31, 2013. | |||
[3] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $155 thousand as of June 30, 2014. | |||
[4] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $216 thousand as of December 31, 2013. | |||
[5] | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $7 thousand as of June 30, 2014. | |||
[6] | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $9 thousand as of December 31, 2013. |
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 $) | 3 Months Ended | 6 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | |||||
With no related allowance, Recorded Investment | $3,664 | ' | $3,664 | ' | $3,912 | |||||
With no related allowance, Customers' Unpaid Principal Balance | 3,697 | ' | 3,697 | ' | 3,925 | |||||
With no related allowance, Related Allowance | ' | ' | ' | ' | ' | |||||
With an allowance recorded, Recorded Investment | 2,825 | ' | 2,825 | ' | 2,744 | |||||
With an allowance recorded, Customers' Unpaid Principal Balance | 2,844 | ' | 2,844 | ' | 3,377 | |||||
With an allowance recorded, Related Allowance | 756 | ' | 756 | ' | 667 | |||||
Total Impaired Loans, Recorded Investment | 6,489 | ' | 6,489 | ' | 6,656 | |||||
Total Impaired Loans, Customers' Unpaid Principal Balance | 6,541 | ' | 6,541 | ' | 7,302 | |||||
Total Impaired Loans, Related Allowance | 756 | ' | 756 | ' | 667 | |||||
With no related allowance, Average Recorded Investment | 3,674 | 2,530 | 3,686 | 2,435 | ' | |||||
With no related allowance, Interest Income Recognized | 35 | 32 | 73 | 57 | ' | |||||
With an allowance recorded, Average Recorded Investment | 2,686 | 3,775 | 2,644 | 3,655 | ' | |||||
With an allowance recorded, Interest Income Recognized | 30 | 30 | 54 | 60 | ' | |||||
Total, Average Recorded Investment | 6,360 | 6,305 | 6,330 | 6,090 | ' | |||||
Total, Interest Income Recognized | 65 | 62 | 127 | 117 | ' | |||||
Construction, Land and Land Development | ' | ' | ' | ' | ' | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | |||||
With no related allowance, Recorded Investment | 451 | ' | 451 | ' | 453 | |||||
With no related allowance, Customers' Unpaid Principal Balance | 453 | ' | 453 | ' | 453 | |||||
With no related allowance, Related Allowance | ' | ' | ' | ' | ' | |||||
With an allowance recorded, Recorded Investment | 428 | ' | 428 | ' | 151 | |||||
With an allowance recorded, Customers' Unpaid Principal Balance | 447 | ' | 447 | ' | 156 | |||||
With an allowance recorded, Related Allowance | 211 | ' | 211 | ' | 51 | |||||
Total Impaired Loans, Recorded Investment | 879 | ' | 879 | ' | 604 | |||||
Total Impaired Loans, Customers' Unpaid Principal Balance | 900 | ' | 900 | ' | 609 | |||||
Total Impaired Loans, Related Allowance | 211 | ' | 211 | ' | 51 | |||||
With no related allowance, Average Recorded Investment | 451 | 13 | 452 | 13 | ' | |||||
With no related allowance, Interest Income Recognized | 1 | ' | 2 | ' | ' | |||||
With an allowance recorded, Average Recorded Investment | 288 | 200 | 242 | 200 | ' | |||||
With an allowance recorded, Interest Income Recognized | 1 | ' | 1 | ' | ' | |||||
Total, Average Recorded Investment | 739 | 213 | 694 | 213 | ' | |||||
Total, Interest Income Recognized | 2 | ' | 3 | ' | ' | |||||
Residential First Mortgages | ' | ' | ' | ' | ' | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | |||||
With no related allowance, Recorded Investment | 1,039 | ' | 1,039 | ' | 1,053 | |||||
With no related allowance, Customers' Unpaid Principal Balance | 1,049 | ' | 1,049 | ' | 1,057 | |||||
With no related allowance, Related Allowance | ' | ' | ' | ' | ' | |||||
With an allowance recorded, Recorded Investment | 2,185 | ' | 2,185 | ' | 2,198 | |||||
With an allowance recorded, Customers' Unpaid Principal Balance | 2,185 | ' | 2,185 | ' | 2,198 | |||||
With an allowance recorded, Related Allowance | 436 | ' | 436 | ' | 409 | |||||
Total Impaired Loans, Recorded Investment | 3,224 | ' | 3,224 | ' | 3,251 | |||||
Total Impaired Loans, Customers' Unpaid Principal Balance | 3,234 | ' | 3,234 | ' | 3,255 | |||||
Total Impaired Loans, Related Allowance | 436 | ' | 436 | ' | 409 | |||||
With no related allowance, Average Recorded Investment | 1,042 | 1,668 | 1,046 | 1,570 | ' | |||||
With no related allowance, Interest Income Recognized | 10 | 24 | 21 | 42 | ' | |||||
With an allowance recorded, Average Recorded Investment | 2,186 | 1,845 | 2,190 | 1,778 | ' | |||||
With an allowance recorded, Interest Income Recognized | 26 | 24 | 47 | 50 | ' | |||||
Total, Average Recorded Investment | 3,228 | 3,513 | 3,236 | 3,348 | ' | |||||
Total, Interest Income Recognized | 36 | 48 | 68 | 92 | ' | |||||
Residential Revolving and Junior Mortgages | ' | ' | ' | ' | ' | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | |||||
With no related allowance, Related Allowance | ' | [1] | ' | ' | [1] | ' | ' | [1] | ||
With an allowance recorded, Recorded Investment | 174 | [1] | ' | 174 | [1] | ' | 251 | [1] | ||
With an allowance recorded, Customers' Unpaid Principal Balance | 174 | [1] | ' | 174 | [1] | ' | 879 | [1] | ||
With an allowance recorded, Related Allowance | 77 | [1] | ' | 77 | [1] | ' | 173 | [1] | ||
Total Impaired Loans, Recorded Investment | 174 | [1] | ' | 174 | [1] | ' | 251 | [1] | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 174 | [1] | ' | 174 | [1] | ' | 879 | [1] | ||
Total Impaired Loans, Related Allowance | 77 | [1] | ' | 77 | [1] | ' | 173 | [1] | ||
With no related allowance, Average Recorded Investment | ' | 97 | [1] | ' | 98 | [1] | ' | |||
With an allowance recorded, Average Recorded Investment | 174 | [1] | 1,124 | [1] | 174 | [1] | 1,068 | [1] | ' | |
With an allowance recorded, Interest Income Recognized | 2 | [1] | 2 | [1] | 4 | [1] | 4 | [1] | ' | |
Total, Average Recorded Investment | 174 | [1] | 1,221 | [1] | 174 | [1] | 1,166 | [1] | ' | |
Total, Interest Income Recognized | 2 | [1] | 2 | [1] | 4 | [1] | 4 | [1] | ' | |
Commercial Mortgages (Non-Owner Occupied) | ' | ' | ' | ' | ' | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | |||||
With no related allowance, Recorded Investment | 264 | ' | 264 | ' | 264 | |||||
With no related allowance, Customers' Unpaid Principal Balance | 264 | ' | 264 | ' | 264 | |||||
With no related allowance, Related Allowance | ' | ' | ' | ' | ' | |||||
Total Impaired Loans, Recorded Investment | 264 | ' | 264 | ' | 264 | |||||
Total Impaired Loans, Customers' Unpaid Principal Balance | 264 | ' | 264 | ' | 264 | |||||
With no related allowance, Average Recorded Investment | 264 | ' | 264 | ' | ' | |||||
With no related allowance, Interest Income Recognized | 4 | ' | 8 | ' | ' | |||||
Total, Average Recorded Investment | 264 | ' | 264 | ' | ' | |||||
Total, Interest Income Recognized | 4 | ' | 8 | ' | ' | |||||
Commercial Mortgages (Owner Occupied) | ' | ' | ' | ' | ' | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | |||||
With no related allowance, Recorded Investment | 1,910 | ' | 1,910 | ' | 1,831 | |||||
With no related allowance, Customers' Unpaid Principal Balance | 1,931 | ' | 1,931 | ' | 1,840 | |||||
With no related allowance, Related Allowance | ' | ' | ' | ' | ' | |||||
With an allowance recorded, Recorded Investment | ' | ' | ' | ' | 105 | |||||
With an allowance recorded, Customers' Unpaid Principal Balance | ' | ' | ' | ' | 105 | |||||
With an allowance recorded, Related Allowance | ' | ' | ' | ' | 1 | |||||
Total Impaired Loans, Recorded Investment | 1,910 | ' | 1,910 | ' | 1,936 | |||||
Total Impaired Loans, Customers' Unpaid Principal Balance | 1,931 | ' | 1,931 | ' | 1,945 | |||||
Total Impaired Loans, Related Allowance | ' | ' | ' | ' | 1 | |||||
With no related allowance, Average Recorded Investment | 1,917 | 752 | 1,924 | 754 | ' | |||||
With no related allowance, Interest Income Recognized | 20 | 8 | 42 | 15 | ' | |||||
With an allowance recorded, Average Recorded Investment | ' | 533 | ' | 536 | ' | |||||
With an allowance recorded, Interest Income Recognized | ' | 3 | ' | 3 | ' | |||||
Total, Average Recorded Investment | 1,917 | 1,285 | 1,924 | 1,290 | ' | |||||
Total, Interest Income Recognized | 20 | 11 | 42 | 18 | ' | |||||
Commercial and Industrial loans | ' | ' | ' | ' | ' | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | |||||
With no related allowance, Recorded Investment | ' | ' | ' | ' | 311 | |||||
With no related allowance, Customers' Unpaid Principal Balance | ' | ' | ' | ' | 311 | |||||
With no related allowance, Related Allowance | ' | ' | ' | ' | ' | |||||
Total Impaired Loans, Recorded Investment | ' | ' | ' | ' | 311 | |||||
Total Impaired Loans, Customers' Unpaid Principal Balance | ' | ' | ' | ' | 311 | |||||
Consumer Loans | ' | ' | ' | ' | ' | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | |||||
With no related allowance, Related Allowance | ' | [2] | ' | ' | [2] | ' | ' | [2] | ||
With an allowance recorded, Recorded Investment | 38 | [2] | ' | 38 | [2] | ' | 39 | [2] | ||
With an allowance recorded, Customers' Unpaid Principal Balance | 38 | [2] | ' | 38 | [2] | ' | 39 | [2] | ||
With an allowance recorded, Related Allowance | 32 | [2] | ' | 32 | [2] | ' | 33 | [2] | ||
Total Impaired Loans, Recorded Investment | 38 | [2] | ' | 38 | [2] | ' | 39 | [2] | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 38 | [2] | ' | 38 | [2] | ' | 39 | [2] | ||
Total Impaired Loans, Related Allowance | 32 | [2] | ' | 32 | [2] | ' | 33 | [2] | ||
With an allowance recorded, Average Recorded Investment | 38 | [2] | 73 | [2] | 38 | [2] | 73 | [2] | ' | |
With an allowance recorded, Interest Income Recognized | 1 | [2] | 1 | [2] | 2 | [2] | 3 | [2] | ' | |
Total, Average Recorded Investment | 38 | [2] | 73 | [2] | 38 | [2] | 73 | [2] | ' | |
Total, Interest Income Recognized | $1 | [2] | $1 | [2] | $2 | [2] | $3 | [2] | ' | |
[1] | Junior mortgages include equity lines. | |||||||||
[2] | Includes credit cards. |
Allowance_for_Loan_Losses_Summ
Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |||
Construction, Land and Land Development | Construction, Land and Land Development | Residential First Mortgages | Residential Revolving and Junior Mortgages | Residential Revolving and Junior Mortgages | ||||
Loan | Loan | Loan | Loan | Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | |||
Number of Loans | 2 | [1] | 2 | [1] | 2 | [2] | ' | ' |
Pre-Modification Outstanding Recorded Investment | $282 | $282 | $315 | ' | ' | |||
Post-Modification Outstanding Recorded Investment | 282 | 282 | 315 | ' | ' | |||
Subsequently defaulted number of loans | ' | ' | ' | 1 | 1 | |||
Subsequently defaulted recorded investment | ' | ' | ' | $75 | $75 | |||
[1] | Modifications were an extension of the loan terms. | |||||||
[2] | Modifications were capitalization of the interest. |
Allowance_for_Loan_Losses_Summ1
Allowance for Loan Losses - Summary of Properties Included in Other Real Estate Owned (OREO) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | Property | Property | |
Real Estate Properties [Line Items] | ' | ' | |
No. of Properties | 27 | 30 | |
Carrying Value | $2,899 | $3,897 | [1] |
Residential | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | |
No. of Properties | 10 | 11 | |
Carrying Value | 1,653 | 2,442 | |
Land lots | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | |
No. of Properties | 13 | 14 | |
Carrying Value | 601 | 684 | |
Convenience Store | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | |
No. of Properties | 2 | 2 | |
Carrying Value | 234 | 239 | |
Restaurant | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | |
No. of Properties | 1 | 1 | |
Carrying Value | 107 | 107 | |
Commercial properties | ' | ' | |
Real Estate Properties [Line Items] | ' | ' | |
No. of Properties | 1 | 2 | |
Carrying Value | $304 | $425 | |
[1] | Derived from the audited consolidated financial statements. |
Earnings_per_share_Weighted_Av
Earnings per share - Weighted Average Number of Shares Used in Computing Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Basic earnings per share | 4,818,733 | 4,817,856 | 4,818,311 | 4,815,845 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options | 18,050 | 2,158 | 14,105 | 2,413 |
Diluted earnings per share | 4,836,783 | 4,820,014 | 4,832,416 | 4,818,258 |
Basic earnings per share | $0.05 | $0.05 | $0.15 | $0.08 |
Diluted earnings per share | $0.05 | $0.05 | $0.15 | $0.08 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Computation Of Earnings Per Share Line Items | ' | ' | ' | ' |
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 62,588 | 177,871 | 68,828 | 177,871 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | |
Restricted Stock | Minimum | Maximum | |||||
Executive | |||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Shares available for grant | 377,123 | ' | 377,123 | ' | ' | ' | ' |
Stock-based compensation expense | $0 | $4,000 | $20,000 | $126,000 | ' | ' | ' |
Unrecognized compensation expenses related to stock award | $0 | ' | $0 | ' | $5,000 | ' | ' |
Options granted | ' | ' | 7,000 | 89,500 | ' | ' | ' |
Options vested | ' | ' | 7,000 | 89,500 | ' | ' | ' |
Fair value of options granted during the period | ' | ' | $2.75 | ' | ' | $1.03 | $1.08 |
Restricted stock shares, granted | ' | ' | ' | ' | 877 | ' | ' |
Restricted stock shares, vesting period | ' | ' | ' | ' | '12 months | ' | ' |
StockBased_Compensation_Fair_V
Stock-Based Compensation - Fair Value of Options (Detail) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk free interest rate (5 year Treasury) | 2.70% | 0.86% |
Expected dividend yield | 0.00% | 3.60% |
Expected term (years) | '5 years | '5 years |
Expected volatility | 51.40% | 33.80% |
StockBased_Compensation_Fair_V1
Stock-Based Compensation - Fair Value of Options (Parenthetical) (Detail) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock price volatility, risk free interest period | '5 years | '5 years |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Options outstanding, beginning | 191,002 | ' | ' | ||
Granted, shares | 7,000 | 89,500 | ' | ||
Forfeited, shares | ' | ' | ' | ||
Exercised, shares | ' | ' | ' | ||
Expired, shares | -7,239 | ' | ' | ||
Options outstanding and exercisable, ending | 190,763 | ' | ' | ||
Options outstanding, beginning, Weighted Average Exercise Price | $7.35 | ' | ' | ||
Granted, Weighted Average Exercise Price | $5.99 | ' | ' | ||
Forfeited, Weighted Average Exercise Price | ' | ' | ' | ||
Exercised, Weighted Average Exercise Price | ' | ' | ' | ||
Expired, Weighted Average Exercise Price | $14.65 | ' | ' | ||
Options outstanding and exercisable, ending, Weighted Average Exercise Price | $7.02 | ' | ' | ||
Options outstanding and exercisable, ending, Weighted Average Remaining Contractual Life | '6 years 8 months 12 days | ' | '6 years 9 months 18 days | ||
Options outstanding, ending, Aggregate Intrinsic Value | ' | ' | ' | [1] | |
Options outstanding and exercisable, ending, Aggregate Intrinsic Value | $84,644 | [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 June 30, 2014. This amount changes based on changes in the market value of the Company's common stock. |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Age | |
Defined Benefit Plan Disclosure [Line Items] | ' |
Minimum age of full-time employees | 21 |
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 |
Pension Plan, Defined Benefit | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Expected employer contribution | 0 |
Other Postretirement Benefit Plan, Defined Benefit | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Expected employer contribution | 5,000 |
Employer contribution | 6,000 |
Employee_Benefit_Plans_Compone
Employee Benefit Plans - Components of Net Periodic (Benefit) Cost (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Pension Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Interest cost | $71 | $71 |
Expected return on plan assets | -101 | -107 |
Amortization of unrecognized net loss | 19 | 45 |
Net periodic (benefit) cost | -11 | 9 |
Other Postretirement Benefit Plan, Defined Benefit | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Service cost | 8 | 11 |
Interest cost | 15 | 15 |
Amortization of unrecognized net loss | ' | 2 |
Amortization of transition obligation | ' | 2 |
Net periodic (benefit) cost | $23 | $30 |
Long_Term_Debt_Additional_Info
Long Term Debt - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Loan | Federal Home Loan Bank Advances One | Federal Home Loan Bank Advances Two | Federal Home Loan Bank Advances Three | Federal Home Loan Bank Advances Four | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | |
Number of FHLB debt advances | 4 | ' | ' | ' | ' | ' | |
Federal Home Loan Bank advances | $25,000,000 | $15,000,000 | [1] | $10,000,000 | $5,000,000 | $5,000,000 | $5,000,000 |
Advances, Variable rate description | ' | ' | 'Three month LIBOR-based floating rate advance | 'Three month LIBOR-based floating rate advance | 'Three month LIBOR-based floating rate advances | 'Three month LIBOR-based floating rate advances | |
Interest rate LIBOR-based floating rate advance | ' | ' | 4.23% | 2.69% | ' | ' | |
Immediate available credit | 38,500,000 | ' | ' | ' | ' | ' | |
Total line of credit | $65,500,000 | ' | ' | ' | ' | ' | |
[1] | Derived from the audited consolidated financial statements. |
FHLB_Advances_of_FHLB_Detail
FHLB - Advances of FHLB (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Federal Home Loan Bank Advances One | Federal Home Loan Bank Advances Two | Federal Home Loan Bank Advances Three | Federal Home Loan Bank Advances Four | Adjustable Rate Hybrid | Adjustable Rate Credit | Fixed Rate Credit | Fixed Rate Credit | ||||
Federal Home Loan Bank Advances One | Federal Home Loan Bank Advances Two | Federal Home Loan Bank Advances Three | Federal Home Loan Bank Advances Four | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Federal Home Loan Bank advances | $25,000,000 | $15,000,000 | [1] | $10,000,000 | $5,000,000 | $5,000,000 | $5,000,000 | $10,000,000 | $5,000,000 | $5,000,000 | $5,000,000 |
Originated | ' | ' | ' | ' | ' | ' | 12-Apr-13 | 20-May-14 | 18-Jun-14 | 26-Jun-14 | |
Current Interest Rate | ' | ' | ' | ' | ' | ' | 2.61% | 0.23% | 0.26% | 0.26% | |
Maturity Date | ' | ' | ' | ' | ' | ' | 13-Apr-20 | 20-May-15 | 18-Jun-15 | 26-Jun-15 | |
[1] | Derived from the audited consolidated financial statements. |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Securities available for sale: | ' | ' | |
Securities available-for-sale | $36,826 | $38,522 | [1] |
Mortgage servicing rights | 582 | 579 | [1] |
Defined benefit plan assets: | ' | ' | |
Defined Benefit Plan Fair Value Of Plan Assets | 2,820 | 2,820 | |
US Government Agencies | ' | ' | |
Securities available for sale: | ' | ' | |
Securities available-for-sale | 10,007 | 9,308 | |
State and Municipal Obligations | ' | ' | |
Securities available for sale: | ' | ' | |
Securities available-for-sale | 24,825 | 26,557 | |
Auction Rate Security | ' | ' | |
Securities available for sale: | ' | ' | |
Securities available-for-sale | ' | 912 | |
Certificates of Deposit | ' | ' | |
Securities available for sale: | ' | ' | |
Securities available-for-sale | 1,994 | 1,745 | |
Cash and Cash Equivalents | ' | ' | |
Defined benefit plan assets: | ' | ' | |
Defined Benefit Plan Fair Value Of Plan Assets | 3 | 3 | |
Fixed Income Funds | ' | ' | |
Defined benefit plan assets: | ' | ' | |
Defined Benefit Plan Fair Value Of Plan Assets | 1,070 | 1,070 | |
Equity Funds | ' | ' | |
Defined benefit plan assets: | ' | ' | |
Defined Benefit Plan Fair Value Of Plan Assets | 1,747 | 1,747 | |
Fair Value, Inputs, Level 1 | ' | ' | |
Defined benefit plan assets: | ' | ' | |
Defined Benefit Plan Fair Value Of Plan Assets | 2,820 | 2,820 | |
Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | ' | ' | |
Defined benefit plan assets: | ' | ' | |
Defined Benefit Plan Fair Value Of Plan Assets | 3 | 3 | |
Fair Value, Inputs, Level 1 | Fixed Income Funds | ' | ' | |
Defined benefit plan assets: | ' | ' | |
Defined Benefit Plan Fair Value Of Plan Assets | 1,070 | 1,070 | |
Fair Value, Inputs, Level 1 | Equity Funds | ' | ' | |
Defined benefit plan assets: | ' | ' | |
Defined Benefit Plan Fair Value Of Plan Assets | 1,747 | 1,747 | |
Fair Value, Inputs, Level 2 | ' | ' | |
Securities available for sale: | ' | ' | |
Securities available-for-sale | 36,826 | 37,610 | |
Fair Value, Inputs, Level 2 | US Government Agencies | ' | ' | |
Securities available for sale: | ' | ' | |
Securities available-for-sale | 10,007 | 9,308 | |
Fair Value, Inputs, Level 2 | State and Municipal Obligations | ' | ' | |
Securities available for sale: | ' | ' | |
Securities available-for-sale | 24,825 | 26,557 | |
Fair Value, Inputs, Level 2 | Certificates of Deposit | ' | ' | |
Securities available for sale: | ' | ' | |
Securities available-for-sale | 1,994 | 1,745 | |
Fair Value, Inputs, Level 3 | ' | ' | |
Securities available for sale: | ' | ' | |
Securities available-for-sale | ' | 912 | |
Mortgage servicing rights | 582 | 579 | |
Fair Value, Inputs, Level 3 | Auction Rate Security | ' | ' | |
Securities available for sale: | ' | ' | |
Securities available-for-sale | ' | $912 | |
[1] | Derived from the audited consolidated financial statements. |
Fair_Value_Measurements_Reconc
Fair Value Measurements - Reconciliation of Items Using Level Three Inputs (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Auction Rate Security | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Beginning balance | $912 |
Impairments | ' |
Sales | -912 |
Mortgage Servicing Rights | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Beginning balance | 579 |
Impairments | ' |
Fair value adjustments | 3 |
Ending balance | $582 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired Loans, net | $2,069 | $2,077 |
Other real estate owned, net | 2,899 | 3,897 |
Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired Loans, net | 2,069 | 2,077 |
Other real estate owned, net | $2,899 | $3,897 |
Fair_Value_Measurements_Summar1
Fair Value Measurements - Summary of Quantitative Fair Value Measurements for Level 3 (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Impaired Loans, net | 2,069 | 2,077 |
Other real estate owned, net | 2,899 | 3,897 |
Impaired Loans | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Impaired Loans, net | 2,069 | 2,077 |
Other Real Estate Owned | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Other real estate owned, net | 2,899 | 3,897 |
Minimum | Impaired Loans | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Unobservable Input, Selling Cost | 10.00% | 10.00% |
Unobservable Input, Lack of Marketability | 25.00% | 25.00% |
Minimum | Other Real Estate Owned | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Unobservable Input, Selling Cost | 3.00% | 3.00% |
Unobservable Input, Lack of Marketability | 7.00% | 7.00% |
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 | 20.00% | 30.00% |
Weighted Average | Impaired Loans | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Unobservable Input, Selling Cost | 10.00% | 10.00% |
Unobservable Input, Lack of Marketability | 56.00% | 54.00% |
Weighted Average | Other Real Estate Owned | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Unobservable Input, Selling Cost | 5.00% | 6.00% |
Unobservable Input, Lack of Marketability | 11.00% | 15.00% |
Fair_Value_Measurements_Estima
Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Financial Assets: | ' | ' | |
Cash and due from banks | $6,793 | $6,789 | |
Interest-bearing deposits | 10,819 | 8,900 | |
Federal funds sold | 204 | 120 | |
Securities available-for-sale | 36,826 | 38,522 | [1] |
Restricted securities | 1,980 | 1,638 | |
Loans, net | 256,345 | 247,912 | |
Loans held for sale | 390 | 196 | |
Accrued interest receivable | 1,112 | 1,124 | |
Mortgage servicing rights | 582 | 579 | [1] |
Financial Liabilities: | ' | ' | |
Non-interest-bearing liabilities | 58,813 | 57,805 | |
Savings and other interest-bearing deposits | 113,403 | 114,056 | |
Time deposits | 94,870 | 96,486 | |
Securities sold under repurchase agreements | 8,990 | 9,118 | |
FHLB advances | 25,000 | 15,000 | |
Accrued interest payable | 134 | 167 | |
Fair Value, Inputs, Level 1 | ' | ' | |
Financial Assets: | ' | ' | |
Cash and due from banks | 6,793 | 6,789 | |
Interest-bearing deposits | 10,819 | 8,900 | |
Federal funds sold | 204 | 120 | |
Financial Liabilities: | ' | ' | |
Non-interest-bearing liabilities | 58,813 | 57,805 | |
FHLB advances | 15,000 | ' | |
Fair Value, Inputs, Level 2 | ' | ' | |
Financial Assets: | ' | ' | |
Securities available-for-sale | 36,826 | 37,610 | |
Accrued interest receivable | 1,112 | 1,124 | |
Financial Liabilities: | ' | ' | |
Savings and other interest-bearing deposits | 113,403 | 114,056 | |
Securities sold under repurchase agreements | 8,990 | 9,118 | |
FHLB advances | 10,984 | 15,923 | |
Accrued interest payable | 134 | 167 | |
Fair Value, Inputs, Level 3 | ' | ' | |
Financial Assets: | ' | ' | |
Securities available-for-sale | ' | 912 | |
Restricted securities | 1,980 | 1,638 | |
Loans, net | 262,561 | 253,139 | |
Loans held for sale | 390 | 196 | |
Mortgage servicing rights | 582 | 579 | |
Financial Liabilities: | ' | ' | |
Time deposits | $96,065 | $98,049 | |
[1] | Derived from the audited consolidated financial statements. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income - Balances in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
Holding gains (losses) on securities | Holding gains (losses) on securities | Holding gains (losses) on securities | Holding gains (losses) on securities | Pension and Post employment costs | Pension and Post employment costs | Pension and Post employment costs | Pension and Post employment costs | Pension and Post employment costs | Pension and Post employment costs | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Beginning balance | ($850) | ($431) | ($1,173) | [1] | ($381) | ($468) | $229 | ($791) | $279 | ($382) | ($382) | ($382) | ($660) | ($660) | ($660) |
Change in net unrealized holding gains (losses) on securities, before reclassification, net of tax expense (benefit) | 223 | -820 | 545 | -868 | 223 | -820 | 545 | -868 | ' | ' | ' | ' | ' | ' | |
Reclassification for previously unrealized net (gains) losses recognized in income, net of tax (expense) benefit | 10 | -98 | 11 | -100 | 10 | -98 | 11 | -100 | ' | ' | ' | ' | ' | ' | |
Ending Balance | ($617) | ($1,349) | ($617) | ($1,349) | ($235) | ($689) | ($235) | ($689) | ($382) | ($382) | ($382) | ($660) | ($660) | ($660) | |
[1] | Derived from the audited consolidated financial statements. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income - Balances in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Unrealized holding gains (losses) arising during the period, tax | ($112) | $423 | ($280) | $448 |
Reclassification for previously unrealized net (gains) losses recognized in income, tax benefit | -6 | 50 | -6 | 51 |
Holding gains (losses) on securities | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Unrealized holding gains (losses) arising during the period, tax | -112 | 423 | -280 | 448 |
Reclassification for previously unrealized net (gains) losses recognized in income, tax benefit | ($6) | $50 | ($6) | $51 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Reclassification of Unrealized (Losses) Gains and Impairments on Securities (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net (losses) gains on sale of securities available-for-securities | ($16) | $268 | ($17) | $271 |
Loss on securities with other-than temporary impairment | ' | -168 | ' | -168 |
Tax benefit (expense) | -27 | -59 | -204 | -132 |
Reclassification out of Accumulated Other Comprehensive Income | Holding gains (losses) on securities | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net (losses) gains on sale of securities available-for-securities | -16 | 268 | -17 | 271 |
Loss on securities with other-than temporary impairment | ' | -120 | ' | -120 |
Tax benefit (expense) | 6 | -50 | 6 | -51 |
Impact on net income | ($10) | $98 | ($11) | $100 |