Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 23, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BAYK | ||
Entity Registrant Name | BAY BANKS OF VIRGINIA INC | ||
Entity Central Index Key | 1034594 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 4,802,856 | ||
Entity Public Float | $24,746,860 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $6,181 | $6,789 |
Interest-bearing deposits | 14,784 | 8,900 |
Federal funds sold | 119 | 120 |
Securities available-for-sale, at fair value | 42,604 | 38,522 |
Restricted securities | 2,430 | 1,638 |
Loans receivable, net of allowance for loan losses of $3,205 and $2,925 | 295,242 | 247,912 |
Loans held for sale | 196 | |
Premises and equipment, net | 11,882 | 10,620 |
Accrued interest receivable | 1,197 | 1,124 |
Other real estate owned, net | 2,791 | 3,897 |
Bank owned life insurance | 7,348 | 5,129 |
Goodwill | 2,808 | 2,808 |
Mortgage servicing rights | 596 | 579 |
Other assets | 2,504 | 2,901 |
Total assets | 390,486 | 331,135 |
LIABILITIES | ||
Noninterest-bearing deposits | 63,308 | 57,805 |
Savings and interest-bearing demand deposits | 122,502 | 114,056 |
Time deposits | 121,775 | 96,486 |
Total deposits | 307,585 | 268,347 |
Securities sold under repurchase agreements | 6,012 | 9,118 |
Federal Home Loan Bank advances | 35,000 | 15,000 |
Other liabilities | 2,651 | 1,534 |
Total liabilities | 351,248 | 293,999 |
SHAREHOLDERS' EQUITY | ||
Common stock ($5 par value; authorized - 10,000,000 shares; outstanding - 4,817,856 and 4,817,856 shares, respectively) | 24,089 | 24,089 |
Additional paid-in capital | 2,777 | 2,757 |
Retained earnings | 13,293 | 11,463 |
Accumulated other comprehensive loss, net | -921 | -1,173 |
Total shareholders' equity | 39,238 | 37,136 |
Total liabilities and shareholders' equity | $390,486 | $331,135 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Loans, allowance for loan losses | $3,205 | $2,925 |
Common stock, par value | $5 | $5 |
Common stock, authorized shares | 10,000,000 | 10,000,000 |
Common stock, outstanding shares | 4,817,856 | 4,817,856 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
INTEREST INCOME | ||
Loans, including fees | $13,352 | $12,617 |
Securities: | ||
Taxable | 382 | 448 |
Tax-exempt | 375 | 326 |
Federal funds sold | 1 | |
Interest-bearing deposit accounts | 23 | 56 |
Total interest income | 14,132 | 13,448 |
INTEREST EXPENSE | ||
Deposits | 1,842 | 2,368 |
Federal funds purchased | 1 | |
Securities sold under repurchase agreements | 9 | 16 |
FHLB advances | 345 | 450 |
Total interest expense | 2,197 | 2,834 |
Net interest income | 11,935 | 10,614 |
Provision for loan losses | 611 | 776 |
Net interest income after provision for loan losses | 11,324 | 9,838 |
NON-INTEREST INCOME | ||
Income from fiduciary activities | 831 | 698 |
Service charges and fees on deposit accounts | 974 | 1,076 |
VISA-related fees | 255 | 830 |
Other service charges and fees | 1,100 | 1,130 |
Secondary market lending fees | 451 | 1,164 |
Bank owned life insurance income | 219 | 129 |
Net (losses) gains on sale of securities available for sale | -25 | 284 |
Loss on securities with other-than-temporary impairment | -288 | |
Other real estate losses | -327 | -563 |
Net gains on the sale of fixed assets | 137 | 165 |
Other income | 66 | 101 |
Total non-interest income | 3,681 | 4,726 |
NON-INTEREST EXPENSES | ||
Salaries and employee benefits | 6,458 | 6,414 |
Occupancy expense | 1,492 | 1,331 |
Software maintenance | 524 | 505 |
Bank franchise tax | 189 | 171 |
VISA expense | 170 | 708 |
Telephone expense | 210 | 196 |
FDIC assessments | 247 | 397 |
Foreclosure property expense | 131 | 124 |
Consulting expense | 329 | 222 |
Other expense | 2,868 | 2,875 |
Total non-interest expenses | 12,618 | 12,943 |
Net income before income taxes | 2,387 | 1,621 |
Income tax expense | 557 | 399 |
Net income | $1,830 | $1,222 |
Basic Earnings Per Share | ||
Average basic shares outstanding | 4,818,377 | 4,816,859 |
Earnings per share, basic | $0.38 | $0.25 |
Diluted Earnings Per Share | ||
Average diluted shares outstanding | 4,829,581 | 4,819,343 |
Earnings per share, diluted | $0.38 | $0.25 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Net income | $1,830 | $1,222 |
Unrealized gains (losses) on securities: | ||
Unrealized holding gains (losses) arising during the period | 1,242 | -1,618 |
Deferred tax (expense) benefit | -422 | 550 |
Reclassification of net securities losses (gains) and impairments recognized in net income | 25 | -4 |
Deferred tax (expense) benefit | -9 | 1 |
Unrealized gains (losses) adjustment, net of tax | 836 | -1,071 |
Defined benefit plan: | ||
Total other comprehensive income (loss) | 252 | -792 |
Comprehensive income | 2,082 | 430 |
Pension Plan, Defined Benefit | ||
Defined benefit plan: | ||
Net (loss) gain | -792 | 20 |
Deferred tax benefit (expense) | 270 | -7 |
Reclassification expense | 37 | 204 |
Deferred tax benefit | -13 | -69 |
Defined benefit plan adjustment, net of tax | -498 | 148 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined benefit plan: | ||
Net (loss) gain | -130 | 190 |
Deferred tax benefit (expense) | 44 | -64 |
Reclassification expense | 7 | |
Deferred tax benefit | -2 | |
Defined benefit plan adjustment, net of tax | ($86) | $131 |
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, 2012 | $36,585 | $24,054 | $2,670 | $10,241 | ($380) |
Balance at beginning of period, Shares at Dec. 31, 2012 | 4,810,856 | ||||
Net income | 1,222 | 1,222 | |||
Other comprehensive income (loss) | -793 | -793 | |||
Stock compensation expense | 122 | 35 | 87 | ||
Stock compensation expense, Shares | 7,000 | ||||
Balance at end of period at Dec. 31, 2013 | 37,136 | 24,089 | 2,757 | 11,463 | -1,173 |
Balance at end of period, Shares at Dec. 31, 2013 | 4,817,856 | 4,817,856 | |||
Net income | 1,830 | 1,830 | |||
Other comprehensive income (loss) | 252 | 252 | |||
Stock compensation expense | 20 | 20 | |||
Balance at end of period at Dec. 31, 2014 | $39,238 | $24,089 | $2,777 | $13,293 | ($921) |
Balance at end of period, Shares at Dec. 31, 2014 | 4,817,856 | 4,817,856 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash Flows From Operating Activities | ||
Net income | $1,830 | $1,222 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 792 | 755 |
Net amortization and accretion of securities | 363 | 391 |
Provision for loan losses | 611 | 776 |
Stock compensation expense | 20 | 122 |
Deferred income tax benefit | 58 | 259 |
Loss (gain) on securities available-for-sale | 25 | -284 |
Loss on securities with other-than-temporary impairment | 288 | |
Increase in OREO valuation allowance | 235 | 300 |
Loss on sale of other real estate | 92 | 263 |
Gain on disposal of fixed assets | -137 | -165 |
Mortgage servicing rights | -17 | -579 |
Loan originations for sale to FNMA | -10,503 | -21,431 |
Loan sales to FNMA | 10,951 | 22,025 |
Gain on loans sold to FNMA | -252 | -391 |
Increase in cash surrender value of life insurance | -219 | -129 |
Decrease (increase) in accrued income and other assets | 246 | -67 |
(Decrease) increase in other liabilities | -92 | 377 |
Net cash provided by operating activities | 4,003 | 3,732 |
Cash Flows From Investing Activities | ||
Proceeds from maturities and principal paydowns of available-for-sale securities | 4,529 | 3,951 |
Proceeds from sales and calls of available-for-sale securities | 3,810 | 9,433 |
Purchase of bank owned life insurance | -2,000 | -5,000 |
Purchases of available-for-sale securities | -11,542 | -17,224 |
Purchases of restricted securities | -792 | -54 |
Decrease (increase) in federal funds sold | 1 | -72 |
Loan (originations) and principal collections, net | -47,533 | -15,417 |
Purchase of other assets | -771 | |
Proceeds from sale of other real estate | 371 | 1,189 |
Improvements to other real estate | -22 | |
Purchases of premises and equipment | -2,014 | -538 |
Proceeds from the sale of premises and equipment | 311 | 727 |
Net cash used in investing activities | -54,859 | -23,798 |
Cash Flows From Financing Activities | ||
Increase in demand, savings, and other interest-bearing deposits | 13,949 | 3,438 |
Net increase (decrease) in time deposits | 25,289 | -10,266 |
Net (decrease) increase in securities sold under repurchase agreements | -3,106 | 2,659 |
Increase in Federal Home Loan Bank advances | 20,000 | |
Net cash provided by (used in) financing activities | 56,132 | -4,169 |
Net decrease in cash and due from banks | 5,276 | -24,235 |
Cash and due from banks at beginning of period | 15,689 | 39,924 |
Cash and due from banks at end of period | 20,965 | 15,689 |
Cash paid for: | ||
Interest | 2,215 | 2,824 |
Income taxes | 351 | 338 |
Non-cash investing and financing: | ||
Unrealized gain (loss) on investment securities | 1,268 | -1,623 |
Change in fair value of pension and post-retirement obligation | -885 | 422 |
Loans transferred to other real estate owned | 197 | 2,476 |
Loans originated to facilitate sale of OREO | 605 | 328 |
Changes in deferred taxes resulting from OCI transactions | ($130) | $408 |
Organization_and_Presentation
Organization and Presentation | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization and Presentation | Note 1. | Organization and Presentation |
Organization. Bay Banks of Virginia, Inc. (the “Company”) is a bank holding company that conducts substantially all of its operations through its subsidiaries. | ||
The Bank of Lancaster (the “Bank”) is a state-chartered bank and a member of the Federal Reserve System. It serves businesses, professionals and consumers on the Northern Neck and Middle Peninsulas of Virginia and the Greater Richmond, Virginia market. The Bank has branch offices in the Virginia counties of Chesterfield, Henrico, Lancaster, Northumberland, Richmond, Westmoreland, and in the City of Richmond, Virginia plus a residential mortgage loan production office in Middlesex County, Virginia. Each branch office offers a full range of deposit and loan products to its retail and commercial customers. A substantial amount of the Bank’s deposits are interest bearing. The majority of the Bank’s loan portfolio is secured by real estate. | ||
Bay Trust Company (the “Trust Company”) provides management services for personal and corporate trusts, including estate planning, estate settlement, and trust administration from its main office in Kilmarnock, Virginia. Products include revocable and irrevocable living trusts, testamentary trusts, custodial accounts, investment management accounts and managed, as well as self-directed, rollover Individual Retirement Accounts. | ||
Basis of Presentation. The consolidated financial statements of the Company include the accounts of Bay Banks of Virginia, Inc. and its subsidiaries, Bank of Lancaster and Bay Trust Company. All significant intercompany balances and transactions have been eliminated in consolidation. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Significant Accounting Policies | Note 2. | Significant Accounting Policies |
Use of estimates | ||
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions. The amounts recorded in the consolidated financial statements may be affected by those estimates and assumptions. Actual results may vary from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the measurement of fair value of foreclosed real estate, deferred taxes, impairment testing of goodwill, projected pension and post-retirement obligations and fair value measurements. | ||
Cash and cash equivalents | ||
For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, all of which mature within ninety days. | ||
Interest-bearing deposits in banks | ||
Interest-bearing deposits in banks are carried at cost and include deposits with the Federal Reserve Bank of Richmond, which mature within one year. | ||
Securities | ||
Investments in debt and equity securities with readily determinable fair values are classified as either held to maturity, available-for-sale, or trading, based on management’s intent. Currently, all of the Company’s investment securities are classified as available-for-sale. Securities available-for-sale are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income. A gain or loss is recognized in earnings on the settlement date based on the amortized cost of the specific security sold. Purchase premiums and discounts are recognized in interest income via amortization or accretion, respectively, using the interest method over the terms of the securities. | ||
Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if (i) there is evidence of credit related impairment; (ii) the Company intends to sell the security or (iii) it is more-likely-than-not that the Company will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more-likely-than-not that it will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security. If there is a credit loss, the loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income. For equity securities, impairment is considered to be other-than-temporary based on the Company’s ability and intent to hold the investment until a recovery of fair value. Other-than-temporary impairment of an equity security results in a write-down that must be included in net income. The Company regularly reviews each investment security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the Company’s best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity and the likelihood that it would be required to sell the security before recovery. | ||
Securities sold under repurchase agreements | ||
Securities sold under repurchase agreements, which are classified as secured borrowings, generally mature within one year from the transaction date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company is required to provide collateral based on the fair value of the underlying securities. | ||
Loans | ||
The Company grants mortgage loans on real estate; commercial and industrial loans; and consumer and other loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Company’s market areas. | ||
Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, and charge-offs. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment of the related loan yield 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 are reversed against interest income. Any interest received on these loans is accounted for on the cash basis or cost recovery method until qualifying for return to accrual. Generally, a loan is returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or it becomes well secured and in the process of collection. | ||
Troubled debt restructuring (“TDR”) | ||
In some situations, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to a borrower that it would not otherwise consider. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, the related loan is classified as a troubled debt restructuring. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. Management measures all TDRs for impairment as noted below for impaired loans. | ||
Allowance for loan losses (“ALL”) | ||
The ALL reflects management’s judgment of probable loan losses inherent in the portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter. To determine the total ALL, the Company estimates the reserves needed for each segment of the portfolio, including loans analyzed individually and 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. | ||
The ALL calculation methodology’s historical loss factor period is considered the length of a business cycle. The business cycle, upon which the historical loss factor is based, was believed to have begun in the fourth quarter of 2008. 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. The historical loss factor is now based on that business cycle of 19 quarters, compared to the previous averaging period that had been growing each quarter based on the business cycle that began in 2008. The change in methodology during the third quarter of 2013 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 the 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). 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 which are unsecured. | ||
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. | ||
For a number of years, the Bank retained the servicing for mortgages it had originated and sold to a third party. Prior to 2013, the Bank had not recorded the MSRs asset at the time of the sales of mortgages to the third party. The cumulative effect of the MSRs asset was recognized in the third quarter of 2013. The overstatement of income in 2013 of approximately $215,000 after tax ($325,000 pre-tax adjusted at a 34% tax rate) or approximately $0.04 per basic and diluted earnings per share represents the fair value of servicing rights retained prior to 2013. | ||
The Company has evaluated this uncorrected misstatement in consideration and accordance with the guidance from Staff Accounting Bulletin 99 and 108, in order to determine whether it is material to the financial statements taken as a whole. The Company’s evaluation process included consideration of the nature, cause, amount and effect of the misstatement from both a quantitative and qualitative perspective. | ||
It is management’s judgment that the adjustment to the 2013 financial statements for MSRs, related to 2012 and prior, was not material to the 2013 balance sheet, results of operations and cash flows taken as a whole. | ||
Premises and equipment, net | ||
Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the premises and equipment. Estimated useful lives range from 10-40 years for buildings, and from 3-10 years for furniture, fixtures and equipment. Maintenance and repairs are charged to expense as incurred, and major improvements are capitalized. | ||
Other real estate owned, net | ||
Real estate properties acquired through, or in lieu of, loan foreclosure are marketed for sale and are initially recorded at fair value on the date of foreclosure less estimated selling costs, thereby establishing a new cost basis. After acquisition, management periodically performs valuations and the real estate is carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations are included in expenses from foreclosed assets and changes in the valuation allowance are included in other real estate gains (losses). | ||
Goodwill | ||
Goodwill is related to unidentifiable intangible assets arising from the acquisition of five branches during the years 1994 through 2000. Goodwill is tested annually for impairment. If impairment exists, the amount of impairment would result in a charge to expense. | ||
Income taxes | ||
Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. | ||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties, if any, associated with unrecognized tax benefits are classified as additional income taxes in the statements of income. The Company had no liabilities for recognized tax benefits at December 31, 2014 or 2013. | ||
The Company evaluates its deferred tax assets quarterly to determine if those assets will be recovered and if a valuation allowance is needed. At December 31, 2014, the Company determined no valuation allowance related to its deferred tax assets was necessary. | ||
Pension benefits | ||
The Company has a non-contributory cash balance benefit pension plan which was frozen in 2012. The plan covers employees who had become vested in the plan by the date it was frozen. The balances for those employees in the plan receive interest credits. | ||
Postretirement benefits | ||
The Company provides certain health care benefits for all retired employees who meet eligibility requirements. | ||
Trust assets and income | ||
Customer assets held by the Trust Company, other than cash on deposit at the Bank, are not included in these financial statements, since such items are not assets of the Bank or the Trust Company. Trust fees are recorded on the accrual basis. | ||
Earnings per share | ||
Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate solely to outstanding stock options. Refer to Note 19. | ||
Off-balance-sheet financial instruments | ||
In the ordinary course of business, the Company enters into off-balance-sheet financial instruments such as home equity lines of credit, overdraft protection lines of credit, unsecured lines of credit, commitments under credit card arrangements, construction loan commitments and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. | ||
Significant group concentration of credit risk | ||
Most of the Company’s business activity is with customers located in the counties of Lancaster, Northumberland, Richmond, Westmoreland, Middlesex and Henrico, Virginia. The Company makes residential, commercial and consumer loans and a significant amount of the loan portfolio is comprised of real estate mortgage loans, which are primarily secured by single-family residences. The adequacy of collateral on real estate mortgage loans is highly dependent on changes in real estate values. | ||
Advertising | ||
Advertising costs are expensed as incurred and totaled $237 thousand and $175 thousand for the years ended December 31, 2014 and 2013, respectively. | ||
Comprehensive income | ||
Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains or losses on securities available-for-sale and changes in the actuarial gain or loss of the pension and postretirement plans. The cumulative position of the items in comprehensive income resides in shareholders’ equity as accumulated other comprehensive income. Refer to Note 24. | ||
Fair value of financial instruments | ||
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 21. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. | ||
Transfers of financial assets | ||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | ||
Stock-based compensation plans | ||
Authoritative accounting guidance requires companies to recognize the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant. This cost is recognized over the vesting period of the respective awards. | ||
Recent Accounting Pronouncements. | ||
In 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. | ||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606). The amendments in this ASU modify the guidance companies use to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other standards. The ASU requires that entities apply a specific method to recognize revenue reflecting the consideration expected from customers in exchange for the transfer of goods and services. The guidance also requires new qualitative and quantitative disclosures, including information about contract balances and performance obligations. Entities are also required to disclose significant judgments and changes in judgments for determining the satisfaction of performance obligations. Most revenue associated with financial instruments, including interest and loan origination fees, is outside the scope of the guidance. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016, with early adoption prohibited. The Company is evaluating the impact that ASU 2014-09 will have on its consolidated financial statements. |
Goodwill
Goodwill | 12 Months Ended | |
Dec. 31, 2014 | ||
Goodwill | Note 3. | Goodwill |
The Company has goodwill relating to the purchase of five branches during the years 1994 through 2000. The balance of the goodwill at December 31, 2014 and 2013, as reflected on the consolidated balance sheets, was $2.8 million. Management determined that these purchases qualified as acquisitions of businesses and that the related unidentifiable intangibles were goodwill. Goodwill is tested annually for impairment. The test performed using financial information as of September 30, 2014 found no impairment. No events occurred between the date of our annual test and December 31, 2014 that would indicate the existence of impairment. |
Investment_Securities
Investment Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investment Securities | Note 4. | Investment Securities | |||||||||||||||||||||||
The aggregate amortized cost and fair values of the available-for-sale securities portfolio are as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Available-for-sale securities | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
December 31, 2014 | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. Government agencies | $ | 16,969 | $ | 33 | $ | (37 | ) | $ | 16,965 | ||||||||||||||||
State and municipal obligations | 23,335 | 226 | (160 | ) | 23,401 | ||||||||||||||||||||
Certificates of deposits | 2,232 | 8 | (2 | ) | 2,238 | ||||||||||||||||||||
$ | 42,536 | $ | 267 | $ | (199 | ) | $ | 42,604 | |||||||||||||||||
Available-for-sale securities | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
December 31, 2013 | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
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 | |||||||||||||||||
The cost of securities sold is based on actual net cost. Gross realized gains and gross realized losses, as well as proceeds on sales and calls of securities, were as follows: | |||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Gross realized gains | $ | 8 | $ | 285 | |||||||||||||||||||||
Gross realized losses | (33 | ) | (1 | ) | |||||||||||||||||||||
Net realized (losses) gains | $ | (25 | ) | $ | 284 | ||||||||||||||||||||
Aggregate proceeds | $ | 3,810 | $ | 9,433 | |||||||||||||||||||||
The aggregate amortized cost and market values of the investment securities portfolio by contractual maturity at December 31, 2014 are shown below: | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 4,078 | $ | 4,087 | |||||||||||||||||||||
Due after one year through five years | 21,660 | 21,713 | |||||||||||||||||||||||
Due after five through ten years | 13,871 | 13,889 | |||||||||||||||||||||||
Due after ten years | 2,927 | 2,915 | |||||||||||||||||||||||
$ | 42,536 | $ | 42,604 | ||||||||||||||||||||||
Average yields (taxable equivalent) on securities were 2.40% and 2.31% for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Securities with a market value of $8.5 million and $12.9 million at December 31, 2014 and 2013, respectively, were pledged as collateral for public deposits, repurchase agreements and for other purposes as required by law. | |||||||||||||||||||||||||
Securities in an unrealized loss position at December 31, 2014 and 2013, by duration of the unrealized loss, are shown below. With the exception of the auction rate security as of December 31, 2013, the unrealized loss positions were directly related to interest rate movements as there is minimal credit risk exposure in these investments. All agency securities, states and municipal securities and certificates of deposit are investment grade or better and their losses are considered temporary. Management does not intend to sell the securities and does not expect to be required to sell the securities. All amortized cost bases are expected to be recovered. Bonds with unrealized loss positions at December 31, 2014 included 29 municipals, 13 federal agencies and three certificates of deposit. Bonds with unrealized loss positions at December 31, 2013 included 50 municipal securities and 15 federal agency securities. | |||||||||||||||||||||||||
(Dollars in thousands) | Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
December 31, 2014 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
U.S. Government agencies | $ | 1,499 | $ | 4 | $ | 3,532 | $ | 33 | $ | 5,031 | $ | 37 | |||||||||||||
States and municipal obligations | 412 | 5 | 9,006 | 155 | 9,418 | 160 | |||||||||||||||||||
Certificates of deposit | 742 | 2 | — | — | 742 | 2 | |||||||||||||||||||
Total temporarily impaired securities | $ | 2,653 | $ | 11 | $ | 12,538 | $ | 188 | $ | 15,191 | $ | 199 | |||||||||||||
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 following table summarizes cumulative credit-related other-than temporary impairment losses recognized on the one auction rate security held by the Company (no other-than-temporary-impairment was recognized for the years ended December 31, 2014): | |||||||||||||||||||||||||
(Dollars in thousands) | For the year ended | For the year ended | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Balance, beginning of the period | $ | 288 | $ | — | |||||||||||||||||||||
Impairment losses recognized during the period | — | 288 | |||||||||||||||||||||||
Realized losses from sales | (288 | ) | — | ||||||||||||||||||||||
Balance, end of period | $ | — | $ | 288 | |||||||||||||||||||||
The Company held one South Carolina Student Loan Corporation auction rate security with a face amount of $1.2 million. During the second quarter of 2013, the South Carolina Student Loan Corporation made a tender and exchange offer with regards to these auction rate securities with the provision that 50% of the security holders were required to accept the tender offer in order for it to be consummated. The tender offer was not accepted by the required 50% of security holders. As a result of the tender and exchange offer, the Company determined that the value of this auction rate security was other than temporarily impaired. The market value of the security was estimated based on Level 3 inputs (refer to Note 21). The Company recognized an other-than-temporary impairment charge of $288 thousand in income related to this security during 2013. In the first quarter of 2014, the Company sold this auction rate security for $912 thousand. | |||||||||||||||||||||||||
The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $1.9 million and $1.1 million at December 31, 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 both December 31, 2014 and 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 relations to the FHLB and FRB stock, all repurchase transactions 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 FHLB and FRB stock. |
Loans
Loans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Loans | Note 5. | Loans | |||||||||||||||||||||||
The following is a summary of the balances of loans: | |||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Mortgage loans on real estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 43,048 | $ | 31,839 | |||||||||||||||||||||
Farmland | 1,128 | 1,262 | |||||||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | 20,534 | 14,626 | |||||||||||||||||||||||
Commercial Mortgages (Owner Occupied) | 33,326 | 34,177 | |||||||||||||||||||||||
Residential First Mortgages | 135,267 | 114,458 | |||||||||||||||||||||||
Residential Revolving and Junior Mortgages | 25,400 | 24,045 | |||||||||||||||||||||||
Commercial and Industrial loans | 34,002 | 23,938 | |||||||||||||||||||||||
Consumer Loans | 5,349 | 5,986 | |||||||||||||||||||||||
Total loans | 298,054 | 250,331 | |||||||||||||||||||||||
Net unamortized deferred loans costs | 393 | 506 | |||||||||||||||||||||||
Allowance for loan losses | (3,205 | ) | (2,925 | ) | |||||||||||||||||||||
Loans, net | $ | 295,242 | $ | 247,912 | |||||||||||||||||||||
The recorded investment in past due and non-accruing loans is shown in the following table. A loan past due by 90 days or more is generally placed on nonaccrual, unless it is both well secured and in the process of collection. | |||||||||||||||||||||||||
(Dollars in thousands) | 30-89 | 90 Days or | Total Past | Total | |||||||||||||||||||||
Days | More Past | Due and | |||||||||||||||||||||||
Due and | |||||||||||||||||||||||||
December 31, 2014 | Past Due | Still Accruing | Nonaccruals | Nonaccruals | Current | Loans | |||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 64 | $ | — | $ | 669 | $ | 733 | $ | 42,315 | $ | 43,048 | |||||||||||||
Farmland | — | — | — | — | 1,128 | 1,128 | |||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | — | — | — | — | 20,534 | 20,534 | |||||||||||||||||||
Commercial Mortgages (Owner Occupied) | — | — | 566 | 566 | 32,760 | 33,326 | |||||||||||||||||||
Residential First Mortgages | 1,270 | — | 359 | 1,629 | 133,638 | 135,267 | |||||||||||||||||||
Residential Revolving and Junior Mortgages | 6 | — | 31 | 37 | 25,363 | 25,400 | |||||||||||||||||||
Commercial and Industrial | 96 | — | 228 | 324 | 33,678 | 34,002 | |||||||||||||||||||
Consumer Loans | 66 | 14 | 101 | 181 | 5,168 | 5,349 | |||||||||||||||||||
Total | $ | 1,502 | $ | 14 | $ | 1,954 | $ | 3,470 | $ | 294,584 | $ | 298,054 | |||||||||||||
December 31, 2013 | 30-89 | 90 Days or | Nonaccruals | Total Past | Current | Total | |||||||||||||||||||
Days | More Past | Due and | Loans | ||||||||||||||||||||||
Past Due | Due and | Nonaccruals | |||||||||||||||||||||||
Still Accruing | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
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 | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Allowance for Loan Losses | Note 6. | Allowance for Loan Losses | |||||||||||||||||||||||
A disaggregation of and an analysis of the change in the allowance for loan losses by segment is shown below. | |||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Commercial | Consumer | Total | |||||||||||||||||||||
Loans on | and | and Other | |||||||||||||||||||||||
Real Estate | Industrial | Loans | |||||||||||||||||||||||
For the Twelve Months Ended December 31, 2014 | |||||||||||||||||||||||||
Beginning Balance | $ | 2,465 | $ | 256 | $ | 204 | $ | 2,925 | |||||||||||||||||
(Charge-offs) | (313 | ) | — | (79 | ) | (392 | ) | ||||||||||||||||||
Recoveries | 36 | — | 25 | 61 | |||||||||||||||||||||
Provision | 590 | 67 | (46 | ) | 611 | ||||||||||||||||||||
Ending Balance | $ | 2,778 | $ | 323 | $ | 104 | $ | 3,205 | |||||||||||||||||
Individually evaluated for impairment | $ | 665 | $ | — | $ | 11 | $ | 676 | |||||||||||||||||
Collectively evaluated for impairment | 2,113 | 323 | 93 | 2,529 | |||||||||||||||||||||
(Dollars in thousands) | Mortgage | Commercial | Consumer | Total | |||||||||||||||||||||
Loans on | and | and other | |||||||||||||||||||||||
Real Estate | Industrial | Loans | |||||||||||||||||||||||
For the Twelve Months Ended December 31, 2013 | |||||||||||||||||||||||||
Beginning Balance | $ | 2,572 | $ | 262 | $ | 260 | $ | 3,094 | |||||||||||||||||
(Charge-offs) | (879 | ) | (17 | ) | (132 | ) | (1,028 | ) | |||||||||||||||||
Recoveries | 68 | 1 | 14 | 83 | |||||||||||||||||||||
Provision | 704 | 10 | 62 | 776 | |||||||||||||||||||||
Ending Balance | $ | 2,465 | $ | 256 | $ | 204 | $ | 2,925 | |||||||||||||||||
Individually evaluated for impairment | $ | 634 | $ | — | $ | 33 | $ | 667 | |||||||||||||||||
Collectively evaluated for impairment | 1,831 | 256 | 171 | 2,258 | |||||||||||||||||||||
Loan receivables evaluated for impairment individually and collectively by segment as of December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Commercial | Consumer | ||||||||||||||||||||||
Loans | and | ||||||||||||||||||||||||
As of December 31, 2014 | on Real Estate | Industrial | Loans | Total | |||||||||||||||||||||
Individually evaluated for impairment | $ | 6,842 | $ | — | $ | 16 | $ | 6,858 | |||||||||||||||||
Collectively evaluated for impairment | 251,861 | 34,002 | 5,333 | 291,196 | |||||||||||||||||||||
Total Gross Loans | $ | 258,703 | $ | 34,002 | $ | 5,349 | $ | 298,054 | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
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 shown in the following table. | |||||||||||||||||||||||||
(Dollars in thousands) | Construction, | Commercial | Commercial | Commercial | |||||||||||||||||||||
Land and | Mortgages | Mortgages | and | ||||||||||||||||||||||
Land | (Non-Owner | (Owner | |||||||||||||||||||||||
As of December 31, 2014 | Development | Farmland | Occupied) | Occupied) | Industrial | Total | |||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 34,913 | $ | 1,128 | $ | 16,426 | $ | 23,967 | $ | 31,041 | $ | 107,475 | |||||||||||||
Watch | 5,649 | — | 3,770 | 4,430 | 2,492 | 16,341 | |||||||||||||||||||
Special mention | 1,403 | — | — | 2,789 | 154 | 4,346 | |||||||||||||||||||
Substandard | 1,083 | — | 338 | 2,140 | 315 | 3,876 | |||||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 43,048 | $ | 1,128 | $ | 20,534 | $ | 33,326 | $ | 34,002 | $ | 132,038 | |||||||||||||
As of December 31, 2013 | Construction, | Farmland | Commercial | Commercial | Commercial | Total | |||||||||||||||||||
Land and | Mortgages | Mortgages | and | ||||||||||||||||||||||
Land | (Non-Owner | (Owner | Industrial | ||||||||||||||||||||||
Development | Occupied) | Occupied) | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Revolving | |||||||||||||||||||||||||
As of December 31, 2014 | First | and Junior | Consumer | ||||||||||||||||||||||
PAYMENT ACTIVITY STATUS | Mortgages (1) | Mortgages (2) | Loans (3) | Total | |||||||||||||||||||||
Performing | $ | 134,908 | $ | 25,369 | $ | 5,234 | $ | 165,511 | |||||||||||||||||
Nonperforming | 359 | 31 | 115 | 505 | |||||||||||||||||||||
Total | $ | 135,267 | $ | 25,400 | $ | 5,349 | $ | 166,016 | |||||||||||||||||
As of December 31, 2013 | Residential | Residential | Consumer | ||||||||||||||||||||||
First | Revolving | ||||||||||||||||||||||||
and Junior | |||||||||||||||||||||||||
PAYMENT ACTIVITY STATUS | Mortgages (4) | Mortgages (5) | Loans (6) | Total | |||||||||||||||||||||
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 | |||||||||||||||||
Notes: | |||||||||||||||||||||||||
-1 | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.1 million as of December 31, 2014. | ||||||||||||||||||||||||
-2 | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $219 thousand as of December 31, 2014. | ||||||||||||||||||||||||
-3 | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $1 thousand as of December 31, 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. | ||||||||||||||||||||||||
The following tables show the Company’s recorded investment and the customers’ unpaid principal balances for impaired loans, with the associated allowance amount, if applicable, as of December 31, 2014 and 2013, along with the average recorded investment and interest income recognized for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||
(Dollars in thousands) | As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
IMPAIRED LOANS | |||||||||||||||||||||||||
Recorded | Customers’ Unpaid | Related | Recorded | Customers’ Unpaid | Related | ||||||||||||||||||||
With no related allowance: | Investment | Principal Balance | Allowance | Investment | Principal Balance | Allowance | |||||||||||||||||||
Construction, land and land development | $ | 450 | $ | 452 | $ | — | $ | 453 | $ | 453 | $ | — | |||||||||||||
Residential First Mortgages | 1,568 | 1,584 | — | 1,053 | 1,057 | — | |||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 50 | 50 | — | — | — | — | |||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 264 | — | 264 | 264 | — | |||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,887 | 1,916 | — | 1,831 | 1,840 | — | |||||||||||||||||||
Commercial and Industrial | — | — | — | 311 | 311 | — | |||||||||||||||||||
Consumer (2) | 5 | 5 | — | — | — | — | |||||||||||||||||||
4,224 | 4,271 | — | 3,912 | 3,925 | — | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Construction, land and land development | 277 | 292 | 144 | 151 | 156 | 51 | |||||||||||||||||||
Residential First Mortgages | 2,173 | 2,173 | 437 | 2,198 | 2,198 | 409 | |||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 173 | 173 | 84 | 251 | 879 | 173 | |||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | — | — | — | |||||||||||||||||||
Commercial Mortgages (Owner occupied) | — | — | — | 105 | 105 | 1 | |||||||||||||||||||
Commercial and Industrial | — | — | — | — | — | — | |||||||||||||||||||
Consumer (2) | 11 | 11 | 11 | 39 | 39 | 33 | |||||||||||||||||||
2,634 | 2,649 | 676 | 2,744 | 3,377 | 667 | ||||||||||||||||||||
Total Impaired Loans: | |||||||||||||||||||||||||
Construction, land and land development | 727 | 744 | 144 | 604 | 609 | 51 | |||||||||||||||||||
Residential First Mortgages | 3,741 | 3,757 | 437 | 3,251 | 3,255 | 409 | |||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 223 | 223 | 84 | 251 | 879 | 173 | |||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 264 | — | 264 | 264 | — | |||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,887 | 1,916 | — | 1,936 | 1,945 | 1 | |||||||||||||||||||
Commercial and Industrial | — | — | — | 311 | 311 | — | |||||||||||||||||||
Consumer (2) | 16 | 16 | 11 | 39 | 39 | 33 | |||||||||||||||||||
$ | 6,858 | $ | 6,920 | $ | 676 | $ | 6,656 | $ | 7,302 | $ | 667 | ||||||||||||||
Notes: | |||||||||||||||||||||||||
-1 | Junior mortgages include equity lines. | ||||||||||||||||||||||||
-2 | includes credit cards. | ||||||||||||||||||||||||
For the Year Ended | For the Year Ended | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||
(Dollars in thousands) | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||
Construction, land and land development | $ | 451 | $ | 3 | $ | 189 | $ | 1 | |||||||||||||||||
Residential First Mortgages | 1,148 | 49 | 678 | 48 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 10 | — | — | — | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 16 | 106 | 8 | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,911 | 79 | 1,092 | 56 | |||||||||||||||||||||
Commercial and Industrial | — | — | 62 | — | |||||||||||||||||||||
Consumer (2) | 6 | — | — | — | |||||||||||||||||||||
3,790 | 147 | 2,127 | 113 | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Construction, land and land development | 168 | 4 | 30 | — | |||||||||||||||||||||
Residential First Mortgages | 2,184 | 100 | 1,916 | 108 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 9 | 254 | 8 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | — | — | 21 | 2 | |||||||||||||||||||||
Commercial and Industrial | — | — | — | — | |||||||||||||||||||||
Consumer (2) | 24 | 2 | 60 | 5 | |||||||||||||||||||||
2,550 | 115 | 2,281 | 123 | ||||||||||||||||||||||
Total | |||||||||||||||||||||||||
Construction, land and land development | 619 | 7 | 219 | 1 | |||||||||||||||||||||
Residential First Mortgages | 3,332 | 149 | 2,594 | 156 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 184 | 9 | 254 | 8 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 16 | 106 | 8 | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,911 | 79 | 1,113 | 58 | |||||||||||||||||||||
Commercial and Industrial | — | — | 62 | — | |||||||||||||||||||||
Consumer (2) | 30 | 2 | 60 | 5 | |||||||||||||||||||||
$ | 6,340 | $ | 262 | $ | 4,408 | $ | 236 | ||||||||||||||||||
Notes: | |||||||||||||||||||||||||
-1 | Junior mortgages include equity lines. | ||||||||||||||||||||||||
-2 | Includes credit cards. | ||||||||||||||||||||||||
Smaller non-accruing loans and non-accruing loans that are not graded because they are included in homogenous pools generally do not meet the criteria for impairment testing, and are therefore excluded from impaired loan disclosures. At December 31, 2014 and 2013, non-accruing loans excluded from impaired loan disclosure totaled $663 thousand and $724 thousand, respectively. If interest on these non-accruing loans had been accrued, such income would have approximated $32 thousand and $23 thousand during the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Loans modified as TDRs are considered impaired and are individually evaluated for the amount of impairment in the ALL. The following table presents, by segments of loans, information related to loans modified as TDRs during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||
For the Year Ended | For the Year Ended | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||||||
(Dollars in thousands) | Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS | Number of | Recorded | Recorded | Number of | Recorded | Recorded | |||||||||||||||||||
Loans | Investment | Investment | Loans | Investment | Investment | ||||||||||||||||||||
Construction, land and land development (1) | 2 | $ | 282 | $ | 277 | 3 | $ | 196 | $ | 196 | |||||||||||||||
Residenital first mortages (2) | — | — | — | 1 | 207 | 204 | |||||||||||||||||||
Residential revolving and junior mortgages (1) | 1 | 50 | 50 | — | — | — | |||||||||||||||||||
Commercial mortgages (Owner occupied) (1) | — | — | — | 2 | 263 | 263 | |||||||||||||||||||
Consumer (2) | — | — | — | 1 | 8 | 7 | |||||||||||||||||||
Notes: | |||||||||||||||||||||||||
-1 | Modifications were an extention of the loan terms. | ||||||||||||||||||||||||
-2 | Modifications were capitalization of the interest. | ||||||||||||||||||||||||
For the Year Ended | For the Year Ended | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||
Loans | Investment | Loans | Investment | ||||||||||||||||||||||
Residential first mortgages | — | $ | — | 1 | $ | 106 | |||||||||||||||||||
Residential revolving and junior mortgages | 1 | 75 | — | — | |||||||||||||||||||||
Commerical mortgages (Owner occupied) | 2 | 255 | — | — | |||||||||||||||||||||
Of the TDRs restructured in 2014 and 2013 which did not subsequently default, all are performing. Of the three loans that defaulted, one loan in the amount of $75 thousand was charged-off in 2014. There were 14 TDRs with an aggregate balance of $2.5 million outstanding as of both December 31, 2014 and December 31, 2013. |
Other_Real_Estate_Owned_Net
Other Real Estate Owned, Net | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Other Real Estate Owned, Net | Note 7. | Other Real Estate Owned, Net | |||||||||||||||
OREO is presented net of a valuation allowance for losses. An analysis of the valuation allowance on OREO is shown below. | |||||||||||||||||
Years ended | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||
Balance, beginning of year | $ | 538 | $ | 562 | |||||||||||||
Provision for losses | 235 | 300 | |||||||||||||||
Charge-offs | (147 | ) | (324 | ) | |||||||||||||
Balance, end of period | $ | 626 | $ | 538 | |||||||||||||
Expenses applicable to OREO include the following: | |||||||||||||||||
Years ended | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||
Net loss on sales of real estate | $ | 92 | $ | 263 | |||||||||||||
Provision for losses | 235 | 300 | |||||||||||||||
Operating expenses, net of income | 131 | 124 | |||||||||||||||
Total expenses | $ | 458 | $ | 687 | |||||||||||||
The following table details the properties included in OREO as of December 31, 2014 and December 31, 2013. There was one collateralized consumer residential mortgage loan with a balance of $129 thousand in the process of foreclosure as of December 31, 2014. The Company accepted a deed in lieu of foreclosure on this property in January 2015. | |||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||||
No. of | Carrying | No. of | Carrying | ||||||||||||||
(Dollars in thousands) | Properties | Value | Properties | Value | |||||||||||||
Residential | 10 | $ | 1,559 | 11 | $ | 2,442 | |||||||||||
Land lots | 13 | 587 | 14 | 684 | |||||||||||||
Convenience store | 2 | 234 | 2 | 239 | |||||||||||||
Restaurant | 1 | 107 | 1 | 107 | |||||||||||||
Commerical properties | 1 | 304 | 2 | 425 | |||||||||||||
Total | 27 | $ | 2,791 | 30 | $ | 3,897 | |||||||||||
Included in other assets as of December 31, 2014, is one residential property purchased in 2013 from a related party with a value of $771 thousand. Included in other assets as of December 31, 2013, were two properties with a total value of $983 thousand, a former branch office and one residential property, which was purchased from a related party. The branch was sold in 2014. |
Premises_and_Equipment_net
Premises and Equipment, net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Premises and Equipment, net | Note 8. | Premises and Equipment, net | |||||||
Components of premises and equipment included in the balance sheets at December 31, 2014 and 2013 were as follows: | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Land and improvements | $ | 2,004 | $ | 1,998 | |||||
Buildings and improvements | 13,032 | 11,764 | |||||||
Furniture and equipment | 9,703 | 8,882 | |||||||
Total cost | 24,739 | 22,644 | |||||||
Less accumulated depreciation | (12,857 | ) | (12,024 | ) | |||||
Premises and equipment, net | $ | 11,882 | $ | 10,620 | |||||
Depreciation expense for the years ended December 31, 2014 and 2013 totaled $792 thousand and $755 thousand, respectively. |
Deposits
Deposits | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Deposits | Note 9. | Deposits | |||
The aggregate amount of time deposits in denominations of $250,000 or more at December 31, 2014 and 2013 was $16.5 million and $7.0 million, respectively. | |||||
At December 31, 2014, the scheduled maturities of time deposits are as follows (in thousands): | |||||
2015 | $ | 56,739 | |||
2016 | 45,267 | ||||
2017 | 8,843 | ||||
2018 | 4,369 | ||||
2019 | 6,543 | ||||
Thereafter | 14 | ||||
$ | 121,775 | ||||
At December 31, 2014 and 2013, overdraft demand deposits reclassified to loans totaled $85 thousand and $91 thousand, respectively. | |||||
At December 31, 2014 and 2013, the Company had brokered deposits of $8.0 million and none, respectively. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Employee Benefit Plans | Note 10. | Employee Benefit Plans | |||||||||||||||
The Company has a non-contributory, cash balance pension plan for employees who were vested in the plan as of December 31, 2012 when it 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 postretirement benefit plan provides coverage toward a retiree’s eligible medical and life insurance benefits expenses. | |||||||||||||||||
The following tables provide the reconciliation of changes in the benefit obligations and fair value of assets and a statement of funded status for the pension plan and postretirement plan of the Company. In 2014, the $755 thousand net loss related to pension benefits and the $130 thousand net loss related to post-retirement benefits was primarily due to the increase in the discount rate assumption to 5% in 2014 from 4% in 2013 and longer assumed lives of participants resulting from updated mortality tables for 2014. | |||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Change in benefit obligation | |||||||||||||||||
Benefit obligation, beginning of year | $ | 2,737 | $ | 2,854 | $ | 607 | $ | 759 | |||||||||
Service cost | — | — | 15 | 23 | |||||||||||||
Interest cost | 142 | 143 | 30 | 30 | |||||||||||||
Actuarial loss (gain) | 721 | 225 | 130 | (190 | ) | ||||||||||||
Benefit payments | (54 | ) | (478 | ) | (11 | ) | (15 | ) | |||||||||
Settlement gain | — | (7 | ) | — | — | ||||||||||||
Benefit obligation, end of year | 3,546 | 2,737 | 771 | 607 | |||||||||||||
Change in plan assets | |||||||||||||||||
Fair value of plan assets, beginning of year | 2,820 | 2,845 | — | — | |||||||||||||
Actual return on plan assets | 131 | 453 | — | — | |||||||||||||
Employer contributions | — | — | 11 | 15 | |||||||||||||
Benefits payments | (54 | ) | (478 | ) | (11 | ) | (15 | ) | |||||||||
Fair value of plan assets, end of year | 2,897 | 2,820 | — | — | |||||||||||||
Funded status at the end of the year | $ | (649 | ) | $ | 83 | $ | (771 | ) | $ | (607 | ) | ||||||
Amounts recognized in accumulated other comprehensive loss (income) | |||||||||||||||||
Net loss (gain) | $ | 1,380 | $ | 625 | $ | 83 | $ | (47 | ) | ||||||||
Prior service cost | — | — | — | — | |||||||||||||
Net obligation at transition | — | — | — | — | |||||||||||||
Amount recognized | $ | 1,380 | $ | 625 | $ | 83 | $ | (47 | ) | ||||||||
Components of net periodic benefit cost (gain) | |||||||||||||||||
Service cost | $ | — | $ | — | $ | 15 | $ | 23 | |||||||||
Interest cost | 142 | 143 | 30 | 30 | |||||||||||||
Expected (return) on plan assets | (202 | ) | (215 | ) | — | — | |||||||||||
Amortization of prior service cost | — | — | — | — | |||||||||||||
Amortization of net obligation at transition | — | — | — | 3 | |||||||||||||
Recognized net loss due to settlement | — | 114 | — | — | |||||||||||||
Recognized net actuarial loss | 37 | 90 | — | 4 | |||||||||||||
Net periodic benefit (gain) cost | (23 | ) | 132 | 45 | 60 | ||||||||||||
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | |||||||||||||||||
Net loss (gain) | 755 | (224 | ) | 130 | (194 | ) | |||||||||||
Amortization of prior service cost | — | — | — | — | |||||||||||||
Amortization of net obligation at transition | — | — | — | (3 | ) | ||||||||||||
Total recognized in other comprehensive loss/(income) | 755 | (224 | ) | 130 | (197 | ) | |||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss/(income) | $ | 732 | $ | (92 | ) | $ | 175 | $ | (137 | ) | |||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted-average assumptions as of December 31: | |||||||||||||||||
Discount rate used for Net Periodic Pension Cost | 5 | % | 4 | % | 5 | % | 4 | % | |||||||||
Discount Rate used for Disclosure | 4 | % | 5 | % | 4 | % | 5 | % | |||||||||
Expected return on plan assets | 7.5 | % | 8 | % | N/A | N/A | |||||||||||
Rate of compensation increase | N/A | N/A | N/A | N/A | |||||||||||||
Rate of compensation increase for net periodic pension cost | N/A | N/A | N/A | N/A | |||||||||||||
Expected future interest crediting rate | 3 | % | 3 | % | N/A | N/A | |||||||||||
The accumulated benefit obligation for the cash balance pension plan was $3.5 million and $2.7 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||
Estimated future benefit payments for the pension and postretirement plans are as follows (in thousands): | |||||||||||||||||
Pension | Postretirement | ||||||||||||||||
2015 | $ | 525 | $ | 22 | |||||||||||||
2016 | 50 | 24 | |||||||||||||||
2017 | 222 | 26 | |||||||||||||||
2018 | 38 | 28 | |||||||||||||||
2019 | 366 | 31 | |||||||||||||||
2020 and thereafter | 1,502 | 190 | |||||||||||||||
Long-term rate of return. The pension plan sponsor selects the assumption for the expected long-term rate of return on assets in consultation with their investment advisors and actuary. This rate is intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. Historical performance is reviewed, especially with respect to real rates of return (net of inflation), for the major asset classes held or anticipated to be held by the trust, and for the trust itself. Undue weight is not given to recent experience that may not continue over the measurement period, with higher significance placed on current forecasts of future long-term economic conditions. | |||||||||||||||||
Because assets are held in a qualified trust, anticipated returns are not reduced for taxes. Further, solely for this purpose, the plan is assumed to continue in force and not terminate during the period during which assets are invested. However, consideration is given to the potential impact of current and future investment policy, cash flow into and out of the trust, and expenses (both investment and non-investment) typically paid from plan assets (to the extent such expenses are not explicitly estimated within periodic cost). | |||||||||||||||||
The fair value of the Company’s pension plan assets by asset category are as follows: | |||||||||||||||||
(Dollars in thousands) | Fair Value Measurements at December 31, 2014 Using | ||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | 4 | $ | 4 | $ | — | $ | — | |||||||||
Mutual funds - fixed income | 1,139 | 1,139 | — | — | |||||||||||||
Mutual funds - equity | 1,754 | 1,754 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,897 | $ | 2,897 | $ | — | $ | — | |||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
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 trust fund is sufficiently diversified to maintain a reasonable level of risk without imprudently sacrificing return, with a targeted asset allocation of 40% fixed income and 60% equities. The investment manager of the fund selects investment fund managers with demonstrated experience and expertise, and funds with demonstrated historical performance, for the implementation of the plan’s investment strategy. The investment manager will consider both actively and passively managed investment strategies and will allocate funds across the asset classes to develop an efficient investment structure. | |||||||||||||||||
It is the responsibility of the trustee to administer the investments of the trust within reasonable costs, being careful to avoid sacrificing quality. These costs include, but are not limited to, management and custodial fees, consulting fees, transaction costs and other administrative costs chargeable to the trust. | |||||||||||||||||
The Company expects to make no contributions to its pension plan for the 2015 plan year. | |||||||||||||||||
Postretirement benefits plan. For measurement purposes, the assumed annual rate of increase in per capita health care costs of covered benefits is 8.0% in 2015, 8.0% in 2016, 6.0% in 2017, 6.0% in 2018, and 5.0% in 2019 and thereafter. If assumed health care cost trend rates were increased by one percentage point each year, the accumulated postretirement benefit obligation at December 31, 2014 would be increased by $893 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year ended December 31, 2014 would be increased by $39. If assumed health care cost trend rates were decreased by one percentage point each year, the accumulated postretirement benefit obligation at December 31, 2014 would be decreased by $838 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year ended December 31, 2014 would be decreased by $36. | |||||||||||||||||
The Company expects to contribute $22,435 to its postretirement plan in 2015. In addition, as of December 31, 2014 and 2013, the Company paid approximately $11 thousand and $15 thousand, respectively, for employees who retired. | |||||||||||||||||
401(k) retirement plan. Substantially all employees are eligible to participate in the Company’s 401(k) retirement plan beginning the first of the month following their hire date. Prior to August 14, 2014, employees were eligible to participate in the plan after six months of service. Employees may contribute up to the maximum established by the Internal Revenue Service. The Company matches 100% of the first 2% and 25% of the next 4% of an employee’s contributions. Additional contributions can be made at the discretion of the Company’s Board of Directors. Contributions to this plan amounted to $110 thousand and $97 thousand for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||
In January 2015, the Company’s Board of Directors approved an increase in the Company’s match. Effective March 9, 2015, the Company will match 100% of the first 3% and 50% of the next 3% of an employee’s contributions. |
Financial_Instruments_with_Off
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended | |
Dec. 31, 2014 | ||
Financial Instruments with Off-Balance Sheet Risk | Note 11. | Financial Instruments with Off-Balance Sheet Risk |
In the normal course of business, the Company offers various financial products to its customers to meet their credit and liquidity needs. These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit written is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained, if deemed necessary by the Company, is based on credit evaluation of the customer. | ||
Subject to its normal credit standards and risk monitoring procedures, the Company makes contractual commitments to extend credit. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. At December 31, 2014 and 2013, the Company had outstanding loan commitments approximating $36.4 million and $37.3 million, respectively. | ||
Conditional commitments are issued by the Company in the form of performance stand-by letters of credit, which guarantee the performance of a customer to a third party. At December 31, 2014 and 2013, commitments under outstanding performance stand-by letters of credit aggregated $355 thousand and $329 thousand, respectively. The credit risk of issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. |
Restrictions_on_Cash_and_Due_f
Restrictions on Cash and Due from Banks | 12 Months Ended | |
Dec. 31, 2014 | ||
Restrictions on Cash and Due from Banks | Note 12. | Restrictions on Cash and Due from Banks |
The Board of Governors of the Federal Reserve System (the “Federal Reserve”) requires banks to maintain cash reserves against certain categories of deposit liabilities. At both December 31, 2014 and 2013, the aggregate amount of daily average required reserves for the final weekly reporting period was $25 thousand. |
Other_Borrowings
Other Borrowings | 12 Months Ended | |
Dec. 31, 2014 | ||
Other Borrowings | Note 13. | Other Borrowings |
Securities sold under agreements to repurchase are secured transactions with customers and generally mature the day following the day sold. During 2014 and 2013, the average rates of the repurchase agreements were 0.12% and 0.19%, respectively. Unused lines of credit with nonaffiliated banks, excluding FHLB, totaled $20.3 million as of both December 31, 2014 and 2013. Draws upon these lines have time limits varying from two to four consecutive weeks. The banks providing these lines can change the interest rates on these lines daily. The lines renew annually and are tested periodically each year. |
FHLB
FHLB | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
FHLB | Note 14. | FHLB | |||||||||||||||
On December 31, 2014, the Bank had FHLB debt consisting of six 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 hybrid 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 $5 million advances were drawn in June 2014 and two $5 million advances were drawn in October 2014, all of which were fixed rate advances. | |||||||||||||||||
The six advances are shown in the following table. | |||||||||||||||||
Description | Balance | Originated | Current | Maturity | |||||||||||||
Interest Rate | Date | ||||||||||||||||
Adjustable Rate Hybrid | $ | 10,000,000 | 4/12/13 | 2.61 | % | 4/13/20 | |||||||||||
Adjustable Rate Credit | 5,000,000 | 5/20/14 | 0.23185 | % | 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 | ||||||||||||
Fixed Rate Credit | 5,000,000 | 10/20/14 | 0.47 | % | 4/20/16 | ||||||||||||
Fixed Rate Credit | 5,000,000 | 10/20/14 | 0.3 | % | 10/20/15 | ||||||||||||
$ | 35,000,000 | ||||||||||||||||
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 December 31, 2014, was $38.6 million against a total line of credit of $77.6 million. | |||||||||||||||||
As of December 31, 2013, the Company had $15.0 million in FHLB debt outstanding with an average interest rate of 2.48%. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes | Note 15. | Income Taxes | |||||||
The Company files income tax returns in the U.S. federal jurisdiction and the Commonwealth of Virginia. The Commonwealth of Virginia does not charge an income tax for regulated banking institutions. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2010. | |||||||||
The expense for income taxes consisted of the following (in thousands): | |||||||||
Year ended December 31, | 2014 | 2013 | |||||||
Current | $ | 499 | $ | 140 | |||||
Deferred | 58 | 259 | |||||||
$ | 557 | $ | 399 | ||||||
The reasons for the differences between the statutory Federal income tax rates and the effective tax rates are summarized as follows: | |||||||||
2014 | 2013 | ||||||||
Statutory rate | 34 | % | 34 | % | |||||
Increase (decrease) resulting from: | |||||||||
Tax exempt interest | -8.3 | % | -8.5 | % | |||||
Bank owned life insurance | -3.1 | % | -2.7 | % | |||||
Other, net | 0.7 | % | 1.8 | % | |||||
23.3 | % | 24.6 | % | ||||||
The components of the net deferred tax assets and liabilities included in other liabilities are as follows (in thousands): | |||||||||
December 31, | 2014 | 2013 | |||||||
Deferred tax assets | |||||||||
Allowance for loan losses | $ | 661 | $ | 632 | |||||
Interest on non-accrual loans | 47 | 40 | |||||||
Mortgage servicing rights | — | 197 | |||||||
Other real estate | 397 | 477 | |||||||
Pension plan | 222 | — | |||||||
Postretirement benefits | 262 | 206 | |||||||
Deferred compensation | 141 | 114 | |||||||
Stock-based compensation | 25 | 18 | |||||||
Alternative minimum tax credit | — | 96 | |||||||
Unrealized losses on available-for-sale securities | — | 408 | |||||||
Other | 11 | 3 | |||||||
Total deferred tax assets | 1,766 | 2,191 | |||||||
Deferred tax liabilities | |||||||||
Unrealized gains on available-for-sale securities | (23 | ) | — | ||||||
Pension plan | — | (27 | ) | ||||||
Depreciation | (218 | ) | (276 | ) | |||||
Amortization of goodwill | (928 | ) | (896 | ) | |||||
Net deferred loan fees and costs | (134 | ) | (172 | ) | |||||
Other | (67 | ) | (64 | ) | |||||
Total deferred tax (liabilities) | (1,370 | ) | (1,435 | ) | |||||
Net deferred tax assets | $ | 396 | $ | 756 | |||||
Regulatory_Requirements_and_Re
Regulatory Requirements and Restrictions | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Regulatory Requirements and Restrictions | Note 16. | Regulatory Requirements and Restrictions | |||||||||||||||||||||||
One source of funds available to the Company is the payment of dividends by the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval from the Bank’s regulators. | |||||||||||||||||||||||||
The Company (on a consolidated basis) and Bank are subject to various regulatory capital requirements administered by the Commonwealth of Virginia and Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy required the Company and the Bank during 2014 to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes that as of December 31, 2014 and 2013, the Company and the Bank met all capital adequacy requirements to which they were subject. | |||||||||||||||||||||||||
As of December 31, 2014, the most recent notification from the Federal Reserve categorized the Bank as well capitalized under the framework for prompt corrective action. To be categorized as well capitalized on such date, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. | |||||||||||||||||||||||||
The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2014 and 2013, are presented in the following tables: | |||||||||||||||||||||||||
Actual | Minimum | Minimum | |||||||||||||||||||||||
Capital Requirement | To Be Well | ||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
(Dollars in Thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Total Risk Based Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 41,445 | 15.02 | % | $ | 22,074 | 8 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | 36,446 | 13.3 | % | 21,927 | 8 | % | $ | 27,409 | 10 | % | |||||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | 38,240 | 13.86 | % | 11,037 | 4 | % | N/A | N/A | |||||||||||||||||
Bank of Lancaster | 33,241 | 12.13 | % | 10,964 | 4 | % | $ | 16,445 | 6 | % | |||||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||
Consolidated | 38,240 | 10.35 | % | 14,770 | 4 | % | N/A | N/A | |||||||||||||||||
Bank of Lancaster | 33,241 | 9.07 | % | 14,664 | 4 | % | $ | 18,329 | 5 | % | |||||||||||||||
Actual | Minimum | Minimum | |||||||||||||||||||||||
Capital Requirement | To Be Well | ||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
(Dollars in Thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Total Risk Based Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 39,322 | 16.38 | % | $ | 19,211 | 8 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | 33,419 | 14.01 | % | 19,089 | 8 | % | $ | 23,861 | 10 | % | |||||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | 36,397 | 15.16 | % | 9,605 | 4 | % | N/A | N/A | |||||||||||||||||
Bank of Lancaster | 30,494 | 12.78 | % | 9,545 | 4 | % | $ | 14,317 | 6 | % | |||||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||
Consolidated | 36,397 | 10.93 | % | 13,319 | 4 | % | N/A | N/A | |||||||||||||||||
Bank of Lancaster | 30,494 | 9.2 | % | 13,259 | 4 | % | $ | 16,573 | 5 | % |
Employee_Stock_Ownership_Plan
Employee Stock Ownership Plan | 12 Months Ended | |
Dec. 31, 2014 | ||
Employee Stock Ownership Plan | Note 17. | Employee Stock Ownership Plan |
The Company has a noncontributory Employee Stock Ownership Plan (“ESOP”) for the benefit of all eligible employees who have completed twelve months of service and who have attained the age of 21 years. Contributions to the plan are at the discretion of the Company’s Board of Directors. Contributions are allocated in the ratio to which the covered compensation of each participant bears to the aggregate covered compensation of all participants for the plan year. Allocations are limited to 25% of eligible participant compensation. Participant accounts are 30% vested after two years, 40% vested after three years with vesting increasing 20% each year thereafter, until 100% vested. The plan had 126,540 allocated shares as of December 31, 2014. Contributions to the plan were $3 thousand in 2014 and zero in 2013. There were no dividends on the Company’s stock held by the ESOP in 2014 and 2013. Shares held by the ESOP are considered outstanding for purposes of computing earnings per share. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stock-Based Compensation Plans | Note 18. | Stock-Based Compensation Plans | |||||||||||||||
On June 28, 2013, the Company registered a new stock-based compensation plan with the Securities and Exchange Commission, which suspended all other plans. There are 378,000 shares available for grant under this plan at December 31, 2014. Unissued shares are generally used for exercises of stock options and restricted stock grants. | |||||||||||||||||
Stock-based compensation expense related to stock awards during 2014 and 2013 was $20 thousand and $122 thousand, respectively. There was no unrecognized compensation expense related to stock options as of December 31, 2014. A total of 7,000 options and 89,500 options were granted and vested during 2014 and 2013, respectively. Compensation expense for stock options is the estimated fair value of options granted using the Black-Scholes Model amortized on a straight-line basis over the vesting period of the award. The expected volatility is based on historical volatility of the Company’s stock price. The risk-free interest rates for the periods within the contractual life of the awards are based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life is based on historical exercise experience. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. The fair value of options granted during 2014 was $2.75. The fair value of options granted during 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 twelve months ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk free interest rate (5 year Treasury) | 1.74 | % | 0.86 | % | |||||||||||||
Expected dividend yield | 0 | % | 3.6 | % | |||||||||||||
Expected term (years) | 5 | 5 | |||||||||||||||
Expected volatility | 51.4 | % | 33.8 | % | |||||||||||||
Stock option plan activity for 2014 and 2013 is summarized below: | |||||||||||||||||
Weighted Average | Weighted Average | Aggregate | |||||||||||||||
Exercise | Remaining | Intrinsic | |||||||||||||||
Contractual | |||||||||||||||||
Shares | Price | Life (in years) | Value (1) | ||||||||||||||
Options outstanding, January 1, 2013 | 120,617 | $ | 9.51 | 5.4 | |||||||||||||
Granted | 89,500 | 5.25 | |||||||||||||||
Forfeited | (11,519 | ) | 9.42 | ||||||||||||||
Exercised | — | — | |||||||||||||||
Expired | (7,596 | ) | 13.8 | ||||||||||||||
Options outstanding, December 31, 2013 | 191,002 | 7.35 | 6.8 | $ | 14,146 | ||||||||||||
Granted | 7,000 | 5.99 | |||||||||||||||
Forfeited | (344 | ) | 5.9 | ||||||||||||||
Exercised | — | — | |||||||||||||||
Expired | (7,239 | ) | 14.65 | ||||||||||||||
Options outstanding, December 31, 2014 | 190,419 | $ | 7.02 | 6.2 | $ | 32,718 | |||||||||||
Options exercisable, December 31, 2014 | 190,419 | $ | 7.02 | 6.2 | $ | 32,718 | |||||||||||
-1 | The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2014. This amount changes based on changes in the market value of the Company’s common stock. | ||||||||||||||||
As of February 21, 2013, a total of 7,000 shares of the Company’s common stock were awarded to the Chief Executive Officer, the Executive Vice President and the Chief Financial Officer. These shares vested immediately and $36,750 in compensation expense was recognized on that date. |
Earnings_per_Share
Earnings per Share | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Earnings per Share | Note 19. | Earnings per Share | |||||||||||||||
The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of dilutive potential common stock. | |||||||||||||||||
For the Years Ended | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Average | Per share | Average | Per share | ||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||
Basic earnings per share | 4,818,377 | $ | 0.38 | 4,816,859 | $ | 0.25 | |||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | 11,204 | 2,484 | |||||||||||||||
Diluted earnings per share | 4,829,581 | $ | 0.38 | 4,819,343 | $ | 0.25 | |||||||||||
For the years ended 2014 and 2013, options on 68,707 and 167,762 shares, respectively, were not included in computing diluted earnings per share because their effects were anti-dilutive. |
Related_Parties
Related Parties | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Related Parties | Note 20. | Related Parties | |||
The Company has entered into transactions with its directors and principal officers of the Company, their immediate families and affiliated companies in which they are the principal stockholders (related parties). The aggregate amount of loans to such related parties was $2.9 million and $2.6 million at December 31, 2014 and 2013, respectively. All such loans, in the opinion of management, were made in the normal course of business on the same terms, including interest rate, collectability and collateral, as those prevailing at the time for comparable transactions. | |||||
(Dollars in thousands | |||||
Balance, January 1, 2014 | $ | 2,606 | |||
New loans and extensions to existing loans | 573 | ||||
Repayments and other reductions | (305 | ) | |||
Balance, December 31, 2014 | $ | 2,874 | |||
Unfunded commitments to extend credit to directors and their related interests were $1.5 million and $2.0 million at December 31, 2014 and 2013, respectively. | |||||
The Company also maintains deposit accounts with some of its executive officers, directors and their affiliated entities. The aggregate amount of these deposit accounts at December 31, 2014 and 2013 amounted to $374 thousand and $428 thousand, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Measurements | Note 21. | Fair Value Measurements | |||||||||||||||
The Company uses fair value to record certain assets and liabilities and to determine fair value disclosures. Authoritative accounting guidance clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. | |||||||||||||||||
Authoritative accounting guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows: | |||||||||||||||||
Level 1 – | Valuation is based on quoted prices in active markets for identical assets and liabilities. | ||||||||||||||||
Level 2 – | Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. | ||||||||||||||||
Level 3 – | Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. | ||||||||||||||||
The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: | |||||||||||||||||
Securities available-for-sale: Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. | |||||||||||||||||
Defined benefit plan assets: Defined benefit plan assets are recorded at fair value on an annual basis at year end. Fair value measurement is based upon quoted market prices, when available (Level 1). | |||||||||||||||||
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 model is used to determine fair value, which establishes pools of performing loans, calculates cash flows for each pool and applies a discount rate to each pool. Loans are segregated into 14 pools based on each loan’s term and seasoning (age). All loans have fixed interest rates. Cash flows are then estimated by utilizing assumed service costs and prepayment speeds. Service costs were assumed to be $5.75 per loan as of December 31, 2014 and $6.00 per loan as of December 31, 2013. Prepayment speeds are determined primarily based on the average interest rate of the loans in each pool. The prepayment scale used is the Public Securities Association (“PSA”) model, where “100% PSA” means prepayments are zero in the first month, then increase by 0.2% of the loan balance each month until reaching 6.0% in month 30. Thereafter, the 100% PSA model assumes an annual prepayment of 6.0% of the remaining loan balance. The average PSA speed assumption in the fair value model is 184% as of December 31, 2014 and 162% as of December 31, 2013. A discount rate of 10.0% was then applied to each pool as of both December 31, 2014 and 2013. This discount rate is intended to represent the estimated market yield for the highest quality grade of comparable servicing. MSRs are classified as Level 3. | |||||||||||||||||
The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and December 31, 2013: | |||||||||||||||||
(Dollars in thousands) | Fair Value Measurements at December 31, 2014 Using | ||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Securities available-for-sale: | |||||||||||||||||
U. S. Government agencies | $ | 16,965 | $ | 845 | $ | 16,120 | $ | — | |||||||||
State and municipal obligations | 23,401 | — | 23,401 | — | |||||||||||||
Certificates of deposit | 2,238 | — | 2,238 | — | |||||||||||||
Total securities available-for-sale | $ | 42,604 | $ | 845 | $ | 41,759 | $ | — | |||||||||
Mortgage servicing rights | $ | 596 | $ | — | $ | — | $ | 596 | |||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | 4 | $ | 4 | $ | — | $ | — | |||||||||
Mutual funds - fixed income | 1,139 | 1,139 | — | — | |||||||||||||
Mutual funds - equity | 1,754 | 1,754 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,897 | $ | 2,897 | $ | — | $ | — | |||||||||
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 | |||||||||||||
Purchases | — | — | |||||||||||||||
Fair value adjustments | — | 17 | |||||||||||||||
Sales | (912 | ) | — | ||||||||||||||
Balance, December 31, 2014 | $ | — | $ | 596 | |||||||||||||
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 December 31, 2014 Using | |||||||||||||||||
(Dollars in thousands) | Balance as of | ||||||||||||||||
Description | December 31, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Impaired Loans, net | $ | 1,958 | $ | — | $ | — | $ | 1,958 | |||||||||
Other real estate owned, net | 2,791 | — | — | 2,791 | |||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Description | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2013 | |||||||||||||||||
Impaired Loans, net | $ | 2,077 | $ | — | $ | — | $ | 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 December 31, 2014: | |||||||||||||||||
(Dollars in thousands) | Balance as of | Valuation | Unobservable | Range | |||||||||||||
December 31, 2014 | Technique | Input | (Weighted | ||||||||||||||
Average) | |||||||||||||||||
Impaired Loans, net | $ | 1,958 | Discounted appraised value | Selling Cost | 10% 20% (10%) | ||||||||||||
Lack of Marketability | 25% - 75% (53%) | ||||||||||||||||
Other real estate owned, net | 2,791 | 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 31, 2013: | |||||||||||||||||
(Dollars in thousands) | Balance as of | Valuation | Unobservable | Range | |||||||||||||
December 31, 2013 | Technique | Input | (Weighted | ||||||||||||||
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 December 31, 2014 Using | |||||||||||||||||
(Dollars in thousands) | Balance as of | ||||||||||||||||
Description | December 31, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 6,181 | $ | 6,181 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 14,784 | 14,784 | — | — | |||||||||||||
Federal funds sold | 119 | 119 | — | — | |||||||||||||
Securities available-for-sale | 42,604 | 845 | 41,759 | — | |||||||||||||
Restricted securities | 2,430 | — | — | 2,430 | |||||||||||||
Loans, net | 295,242 | — | — | 300,481 | |||||||||||||
Accrued interest receivable | 1,197 | — | 1,197 | — | |||||||||||||
Mortgage servicing rights | 596 | — | — | 596 | |||||||||||||
Financial Liabilities: | |||||||||||||||||
Non-interest-bearing liabilities | $ | 63,308 | $ | 63,308 | $ | — | $ | — | |||||||||
Savings and other interest-bearing deposits | 122,502 | — | 122,502 | — | |||||||||||||
Time deposits | 121,775 | — | — | 122,662 | |||||||||||||
Securities sold under repurchase agreements | 6,012 | — | 6,012 | — | |||||||||||||
FHLB advances | 35,000 | — | 35,951 | — | |||||||||||||
Accrued interest payable | 149 | — | 149 | — | |||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Balance as of | |||||||||||||||||
Description | December 31,2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
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 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. | |||||||||||||||||
The carrying value of restricted securities approximates fair value based on the redemption provisions of the issuer. | |||||||||||||||||
MSRs are carried at fair value. As described above, a valuation model is used to determine fair value. This model utilizes a discounted cash flow analysis with servicing costs and prepayment assumptions based on comparable instruments and a discount rate. | |||||||||||||||||
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 December 31, 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. |
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases | Note 22. | Leases | |||
The Company has long-term leases for two retail branches, one loan production office and office equipment. Lease expense for 2014 and 2013 was $103 thousand and $32 thousand, respectively. Pursuant to the terms of these leases, the following is a schedule, by year, of future minimum lease payments required under the long-term non-cancelable lease agreements (in thousands). | |||||
2015 | $ | 149 | |||
2016 | 149 | ||||
2017 | 93 | ||||
2018 | 68 | ||||
2019 | 28 | ||||
Thereafter | — | ||||
$ | 487 | ||||
Condensed_Financial_Informatio
Condensed Financial Information of Parent Company | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Condensed Financial Information of Parent Company | Note 23. | Condensed Financial Information of Parent Company | |||||||
Financial information pertaining only to Bay Banks of Virginia, Inc. is as follows: | |||||||||
(Dollars in thousands) | |||||||||
Condensed Balance Sheets | December 31, 2014 | December 31, 2013 | |||||||
Assets | |||||||||
Cash and due from non-affiliated banks | $ | 2,445 | $ | 3,884 | |||||
Investments in subsidiaries | 35,625 | 32,456 | |||||||
Premises and equipment, net | — | 1 | |||||||
Other assets | 1,732 | 1,266 | |||||||
Total assets | $ | 39,802 | $ | 37,607 | |||||
Liabilities and Shareholders’ Equity | |||||||||
Liabilities | |||||||||
Deferred directors’ compensation | $ | 414 | $ | 337 | |||||
Other liabilities | 150 | 134 | |||||||
Total liabilities | 564 | 471 | |||||||
Total shareholders’ equity | 39,238 | 37,136 | |||||||
Total liabilities and shareholders’ equity | $ | 39,802 | $ | 37,607 | |||||
(Dollars in thousands) | |||||||||
Condensed Income Statements | Years ended December 31, | ||||||||
2014 | 2013 | ||||||||
Non-interest income | $ | 641 | $ | 600 | |||||
Non-interest expense | 622 | 829 | |||||||
Income (loss) before income taxes and equity in undistributed earnings of subsidiaries | 19 | (229 | ) | ||||||
Income tax expense (benefit) | 5 | (27 | ) | ||||||
Income (loss) before equity in undistributed earnings of subsidiaries | 14 | (202 | ) | ||||||
Equity in undistributed earnings of subsidiaries | 1,816 | 1,424 | |||||||
Net income | $ | 1,830 | $ | 1,222 | |||||
(Dollars in thousands) | |||||||||
Condensed Statements of Cash Flows | Years ended December 31, | ||||||||
2014 | 2013 | ||||||||
Cash Flows from Operating Activities: | |||||||||
Net income | $ | 1,830 | $ | 1,222 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | — | 1 | |||||||
Stock-based compensation | 20 | 122 | |||||||
Equity in undistributed earnings of subsidiaries | (1,816 | ) | (1,424 | ) | |||||
Increase in other assets | (467 | ) | (186 | ) | |||||
Net change in deferred directors’ compensation | 77 | 87 | |||||||
Increase (decrease) in other liabilities | 17 | (3,720 | ) | ||||||
Net cash used in operating activities | (339 | ) | (3,898 | ) | |||||
Cash Flows from Investing Activities: | |||||||||
Purchase of other assets | — | (771 | ) | ||||||
Investment in subsidiaries | (1,100 | ) | (500 | ) | |||||
Net cash used in investing activities | (1,100 | ) | (1,271 | ) | |||||
Cash Flows from Financing Activities: | |||||||||
Net cash provided by financing activities | — | — | |||||||
Net decrease in cash and due from banks | (1,439 | ) | (5,169 | ) | |||||
Cash and due from banks at January 1 | 3,884 | 9,053 | |||||||
Cash and due from banks at December 31 | $ | 2,445 | $ | 3,884 | |||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income | Note 24. | Accumulated Other Comprehensive Income | |||||||||||
The balances in accumulated other comprehensive income (loss) are shown in the following table (dollars in thousands): | |||||||||||||
Net Unrealized | Pension and | Accumulated Other | |||||||||||
Gains (Losses) | Post-retirement | Comprehensive | |||||||||||
on Securities | Benefit Plans | Income (Loss) | |||||||||||
Balance January 1, 2013 | $ | 280 | $ | (661 | ) | $ | (381 | ) | |||||
Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $550 | (1,068 | ) | — | (1,068 | ) | ||||||||
Reclassification for previously unrealized net gains recognized in income, net of tax benefit of $1 | (3 | ) | — | (3 | ) | ||||||||
Net gain on pension and postretirement plans, net of tax expense of $143 | — | 277 | 277 | ||||||||||
Net postretirement plan transition cost, net of tax expense of $1 | — | 2 | 2 | ||||||||||
Balance December 31, 2013 | (791 | ) | (382 | ) | (1,173 | ) | |||||||
Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $422 | 820 | — | 820 | ||||||||||
Reclassification for previously unrealized net losses recognized in income, net of tax benefit of $9 | 16 | — | 16 | ||||||||||
Net loss on pension and postretirement plans, net of tax benefit of $301 | — | (584 | ) | (584 | ) | ||||||||
Balance at December 31, 2014 | $ | 45 | $ | (966 | ) | $ | (921 | ) | |||||
Reclassification for previously unrealized gains and impairments on securities and pension and postemployment related costs are reported in the consolidated statements of income as follows: | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Reclassification for the Year Ended | |||||||||||||
31-Dec-14 | |||||||||||||
Holding gains (losses) | Pension and | ||||||||||||
(Dollars in thousands) | on securities | postemployment costs | |||||||||||
Net losses on sale of securities available-for-securities | $ | (25 | ) | $ | — | ||||||||
Salaries and employee benefits | — | (37 | ) | ||||||||||
Tax (expense) benefit | 9 | 13 | |||||||||||
Impact on net income | $ | (16 | ) | $ | (24 | ) | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Reclassification for the Year Ended | |||||||||||||
31-Dec-13 | |||||||||||||
Holding gains (losses) | Pension and | ||||||||||||
(Dollars in thousands) | on securities | postemployment costs | |||||||||||
Net gains on sale of securities available-for-securities | $ | 284 | $ | — | |||||||||
Loss on security with other-than- temporary impairment | (288 | ) | — | ||||||||||
Salaries and employee benefits | — | (211 | ) | ||||||||||
Tax (expense) benefit | 1 | 71 | |||||||||||
Impact on net income | $ | (3 | ) | $ | (140 | ) | |||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Use of estimates | Use of estimates |
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions. The amounts recorded in the consolidated financial statements may be affected by those estimates and assumptions. Actual results may vary from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the measurement of fair value of foreclosed real estate, deferred taxes, impairment testing of goodwill, projected pension and post-retirement obligations and fair value measurements. | |
Cash and cash equivalents | Cash and cash equivalents |
For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, all of which mature within ninety days. | |
Interest-bearing deposits in banks | Interest-bearing deposits in banks |
Interest-bearing deposits in banks are carried at cost and include deposits with the Federal Reserve Bank of Richmond, which mature within one year. | |
Securities | Securities |
Investments in debt and equity securities with readily determinable fair values are classified as either held to maturity, available-for-sale, or trading, based on management’s intent. Currently, all of the Company’s investment securities are classified as available-for-sale. Securities available-for-sale are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income. A gain or loss is recognized in earnings on the settlement date based on the amortized cost of the specific security sold. Purchase premiums and discounts are recognized in interest income via amortization or accretion, respectively, using the interest method over the terms of the securities. | |
Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if (i) there is evidence of credit related impairment; (ii) the Company intends to sell the security or (iii) it is more-likely-than-not that the Company will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more-likely-than-not that it will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security. If there is a credit loss, the loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income. For equity securities, impairment is considered to be other-than-temporary based on the Company’s ability and intent to hold the investment until a recovery of fair value. Other-than-temporary impairment of an equity security results in a write-down that must be included in net income. The Company regularly reviews each investment security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the Company’s best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity and the likelihood that it would be required to sell the security before recovery. | |
Securities sold under repurchase agreements | Securities sold under repurchase agreements |
Securities sold under repurchase agreements, which are classified as secured borrowings, generally mature within one year from the transaction date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company is required to provide collateral based on the fair value of the underlying securities. | |
Loans | Loans |
The Company grants mortgage loans on real estate; commercial and industrial loans; and consumer and other loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Company’s market areas. | |
Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, and charge-offs. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment of the related loan yield 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 are reversed against interest income. Any interest received on these loans is accounted for on the cash basis or cost recovery method until qualifying for return to accrual. Generally, a loan is returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or it becomes well secured and in the process of collection. | |
Troubled debt restructuring ("TDR") | Troubled debt restructuring (“TDR”) |
In some situations, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to a borrower that it would not otherwise consider. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, the related loan is classified as a troubled debt restructuring. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. Management measures all TDRs for impairment as noted below for impaired loans. | |
Allowance for loan losses ("ALL") | Allowance for loan losses (“ALL”) |
The ALL reflects management’s judgment of probable loan losses inherent in the portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter. To determine the total ALL, the Company estimates the reserves needed for each segment of the portfolio, including loans analyzed individually and 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. | |
The ALL calculation methodology’s historical loss factor period is considered the length of a business cycle. The business cycle, upon which the historical loss factor is based, was believed to have begun in the fourth quarter of 2008. 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. The historical loss factor is now based on that business cycle of 19 quarters, compared to the previous averaging period that had been growing each quarter based on the business cycle that began in 2008. The change in methodology during the third quarter of 2013 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 the 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). 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 which are unsecured. | |
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. | |
For a number of years, the Bank retained the servicing for mortgages it had originated and sold to a third party. Prior to 2013, the Bank had not recorded the MSRs asset at the time of the sales of mortgages to the third party. The cumulative effect of the MSRs asset was recognized in the third quarter of 2013. The overstatement of income in 2013 of approximately $215,000 after tax ($325,000 pre-tax adjusted at a 34% tax rate) or approximately $0.04 per basic and diluted earnings per share represents the fair value of servicing rights retained prior to 2013. | |
The Company has evaluated this uncorrected misstatement in consideration and accordance with the guidance from Staff Accounting Bulletin 99 and 108, in order to determine whether it is material to the financial statements taken as a whole. The Company’s evaluation process included consideration of the nature, cause, amount and effect of the misstatement from both a quantitative and qualitative perspective. | |
It is management’s judgment that the adjustment to the 2013 financial statements for MSRs, related to 2012 and prior, was not material to the 2013 balance sheet, results of operations and cash flows taken as a whole. | |
Premises and equipment, net | Premises and equipment, net |
Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the premises and equipment. Estimated useful lives range from 10-40 years for buildings, and from 3-10 years for furniture, fixtures and equipment. Maintenance and repairs are charged to expense as incurred, and major improvements are capitalized. | |
Other real estate owned, net | Other real estate owned, net |
Real estate properties acquired through, or in lieu of, loan foreclosure are marketed for sale and are initially recorded at fair value on the date of foreclosure less estimated selling costs, thereby establishing a new cost basis. After acquisition, management periodically performs valuations and the real estate is carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations are included in expenses from foreclosed assets and changes in the valuation allowance are included in other real estate gains (losses). | |
Goodwill | Goodwill |
Goodwill is related to unidentifiable intangible assets arising from the acquisition of five branches during the years 1994 through 2000. Goodwill is tested annually for impairment. If impairment exists, the amount of impairment would result in a charge to expense. | |
Income taxes | Income taxes |
Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. | |
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties, if any, associated with unrecognized tax benefits are classified as additional income taxes in the statements of income. The Company had no liabilities for recognized tax benefits at December 31, 2014 or 2013. | |
The Company evaluates its deferred tax assets quarterly to determine if those assets will be recovered and if a valuation allowance is needed. At December 31, 2014, the Company determined no valuation allowance related to its deferred tax assets was necessary. | |
Pension benefits | Pension benefits |
The Company has a non-contributory cash balance benefit pension plan which was frozen in 2012. The plan covers employees who had become vested in the plan by the date it was frozen. The balances for those employees in the plan receive interest credits. | |
Postretirement benefits | Postretirement benefits |
The Company provides certain health care benefits for all retired employees who meet eligibility requirements. | |
Trust assets and income | Trust assets and income |
Customer assets held by the Trust Company, other than cash on deposit at the Bank, are not included in these financial statements, since such items are not assets of the Bank or the Trust Company. Trust fees are recorded on the accrual basis. | |
Earnings per share | Earnings per share |
Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate solely to outstanding stock options. Refer to Note 19. | |
Off-balance-sheet financial instruments | Off-balance-sheet financial instruments |
In the ordinary course of business, the Company enters into off-balance-sheet financial instruments such as home equity lines of credit, overdraft protection lines of credit, unsecured lines of credit, commitments under credit card arrangements, construction loan commitments and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. | |
Significant group concentration of credit risk | Significant group concentration of credit risk |
Most of the Company’s business activity is with customers located in the counties of Lancaster, Northumberland, Richmond, Westmoreland, Middlesex and Henrico, Virginia. The Company makes residential, commercial and consumer loans and a significant amount of the loan portfolio is comprised of real estate mortgage loans, which are primarily secured by single-family residences. The adequacy of collateral on real estate mortgage loans is highly dependent on changes in real estate values. | |
Advertising | Advertising |
Advertising costs are expensed as incurred and totaled $237 thousand and $175 thousand for the years ended December 31, 2014 and 2013, respectively. | |
Comprehensive income | Comprehensive income |
Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains or losses on securities available-for-sale and changes in the actuarial gain or loss of the pension and postretirement plans. The cumulative position of the items in comprehensive income resides in shareholders’ equity as accumulated other comprehensive income. Refer to Note 24. | |
Fair value of financial instruments | Fair value of financial instruments |
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 21. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Transfers of financial assets | Transfers of financial assets |
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | |
Stock-based compensation plans | Stock-based compensation plans |
Authoritative accounting guidance requires companies to recognize the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant. This cost is recognized over the vesting period of the respective awards. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. |
In 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. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606). The amendments in this ASU modify the guidance companies use to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other standards. The ASU requires that entities apply a specific method to recognize revenue reflecting the consideration expected from customers in exchange for the transfer of goods and services. The guidance also requires new qualitative and quantitative disclosures, including information about contract balances and performance obligations. Entities are also required to disclose significant judgments and changes in judgments for determining the satisfaction of performance obligations. Most revenue associated with financial instruments, including interest and loan origination fees, is outside the scope of the guidance. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016, with early adoption prohibited. The Company is evaluating the impact that ASU 2014-09 will have on its consolidated financial statements. |
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities Portfolio | The aggregate amortized cost and fair values of the available-for-sale securities portfolio are as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Available-for-sale securities | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
December 31, 2014 | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. Government agencies | $ | 16,969 | $ | 33 | $ | (37 | ) | $ | 16,965 | ||||||||||||||||
State and municipal obligations | 23,335 | 226 | (160 | ) | 23,401 | ||||||||||||||||||||
Certificates of deposits | 2,232 | 8 | (2 | ) | 2,238 | ||||||||||||||||||||
$ | 42,536 | $ | 267 | $ | (199 | ) | $ | 42,604 | |||||||||||||||||
Available-for-sale securities | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
December 31, 2013 | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
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 | The cost of securities sold is based on actual net cost. Gross realized gains and gross realized losses, as well as proceeds on sales and calls of securities, were as follows: | ||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Gross realized gains | $ | 8 | $ | 285 | |||||||||||||||||||||
Gross realized losses | (33 | ) | (1 | ) | |||||||||||||||||||||
Net realized (losses) gains | $ | (25 | ) | $ | 284 | ||||||||||||||||||||
Aggregate proceeds | $ | 3,810 | $ | 9,433 | |||||||||||||||||||||
Aggregate Amortized Cost and Market Values of Investment Securities Portfolio by Contractual Maturity | The aggregate amortized cost and market values of the investment securities portfolio by contractual maturity at December 31, 2014 are shown below: | ||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 4,078 | $ | 4,087 | |||||||||||||||||||||
Due after one year through five years | 21,660 | 21,713 | |||||||||||||||||||||||
Due after five through ten years | 13,871 | 13,889 | |||||||||||||||||||||||
Due after ten years | 2,927 | 2,915 | |||||||||||||||||||||||
$ | 42,536 | $ | 42,604 | ||||||||||||||||||||||
Unrealized Loss Positions | Bonds with unrealized loss positions at December 31, 2013 included 50 municipal securities and 15 federal agency securities. | ||||||||||||||||||||||||
(Dollars in thousands) | Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
December 31, 2014 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
U.S. Government agencies | $ | 1,499 | $ | 4 | $ | 3,532 | $ | 33 | $ | 5,031 | $ | 37 | |||||||||||||
States and municipal obligations | 412 | 5 | 9,006 | 155 | 9,418 | 160 | |||||||||||||||||||
Certificates of deposit | 742 | 2 | — | — | 742 | 2 | |||||||||||||||||||
Total temporarily impaired securities | $ | 2,653 | $ | 11 | $ | 12,538 | $ | 188 | $ | 15,191 | $ | 199 | |||||||||||||
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 | |||||||||||||
Cumulative Credit Related Other-Than Temporary Impairment Losses Recognized on One Debt Security | The following table summarizes cumulative credit-related other-than temporary impairment losses recognized on the one auction rate security held by the Company (no other-than-temporary-impairment was recognized for the years ended December 31, 2014): | ||||||||||||||||||||||||
(Dollars in thousands) | For the year ended | For the year ended | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Balance, beginning of the period | $ | 288 | $ | — | |||||||||||||||||||||
Impairment losses recognized during the period | — | 288 | |||||||||||||||||||||||
Realized losses from sales | (288 | ) | — | ||||||||||||||||||||||
Balance, end of period | $ | — | $ | 288 | |||||||||||||||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Summary of Balances of Loans | The following is a summary of the balances of loans: | ||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Mortgage loans on real estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 43,048 | $ | 31,839 | |||||||||||||||||||||
Farmland | 1,128 | 1,262 | |||||||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | 20,534 | 14,626 | |||||||||||||||||||||||
Commercial Mortgages (Owner Occupied) | 33,326 | 34,177 | |||||||||||||||||||||||
Residential First Mortgages | 135,267 | 114,458 | |||||||||||||||||||||||
Residential Revolving and Junior Mortgages | 25,400 | 24,045 | |||||||||||||||||||||||
Commercial and Industrial loans | 34,002 | 23,938 | |||||||||||||||||||||||
Consumer Loans | 5,349 | 5,986 | |||||||||||||||||||||||
Total loans | 298,054 | 250,331 | |||||||||||||||||||||||
Net unamortized deferred loans costs | 393 | 506 | |||||||||||||||||||||||
Allowance for loan losses | (3,205 | ) | (2,925 | ) | |||||||||||||||||||||
Loans, net | $ | 295,242 | $ | 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 90 days or more is generally placed on nonaccrual, unless it is both well secured and in the process of collection. | ||||||||||||||||||||||||
(Dollars in thousands) | 30-89 | 90 Days or | Total Past | Total | |||||||||||||||||||||
Days | More Past | Due and | |||||||||||||||||||||||
Due and | |||||||||||||||||||||||||
December 31, 2014 | Past Due | Still Accruing | Nonaccruals | Nonaccruals | Current | Loans | |||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
Construction, Land and Land Development | $ | 64 | $ | — | $ | 669 | $ | 733 | $ | 42,315 | $ | 43,048 | |||||||||||||
Farmland | — | — | — | — | 1,128 | 1,128 | |||||||||||||||||||
Commercial Mortgages (Non-Owner Occupied) | — | — | — | — | 20,534 | 20,534 | |||||||||||||||||||
Commercial Mortgages (Owner Occupied) | — | — | 566 | 566 | 32,760 | 33,326 | |||||||||||||||||||
Residential First Mortgages | 1,270 | — | 359 | 1,629 | 133,638 | 135,267 | |||||||||||||||||||
Residential Revolving and Junior Mortgages | 6 | — | 31 | 37 | 25,363 | 25,400 | |||||||||||||||||||
Commercial and Industrial | 96 | — | 228 | 324 | 33,678 | 34,002 | |||||||||||||||||||
Consumer Loans | 66 | 14 | 101 | 181 | 5,168 | 5,349 | |||||||||||||||||||
Total | $ | 1,502 | $ | 14 | $ | 1,954 | $ | 3,470 | $ | 294,584 | $ | 298,054 | |||||||||||||
December 31, 2013 | 30-89 | 90 Days or | Nonaccruals | Total Past | Current | Total | |||||||||||||||||||
Days | More Past | Due and | Loans | ||||||||||||||||||||||
Past Due | Due and | Nonaccruals | |||||||||||||||||||||||
Still Accruing | |||||||||||||||||||||||||
Mortgage Loans on Real Estate: | |||||||||||||||||||||||||
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) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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 | and Other | |||||||||||||||||||||||
Real Estate | Industrial | Loans | |||||||||||||||||||||||
For the Twelve Months Ended December 31, 2014 | |||||||||||||||||||||||||
Beginning Balance | $ | 2,465 | $ | 256 | $ | 204 | $ | 2,925 | |||||||||||||||||
(Charge-offs) | (313 | ) | — | (79 | ) | (392 | ) | ||||||||||||||||||
Recoveries | 36 | — | 25 | 61 | |||||||||||||||||||||
Provision | 590 | 67 | (46 | ) | 611 | ||||||||||||||||||||
Ending Balance | $ | 2,778 | $ | 323 | $ | 104 | $ | 3,205 | |||||||||||||||||
Individually evaluated for impairment | $ | 665 | $ | — | $ | 11 | $ | 676 | |||||||||||||||||
Collectively evaluated for impairment | 2,113 | 323 | 93 | 2,529 | |||||||||||||||||||||
(Dollars in thousands) | Mortgage | Commercial | Consumer | Total | |||||||||||||||||||||
Loans on | and | and other | |||||||||||||||||||||||
Real Estate | Industrial | Loans | |||||||||||||||||||||||
For the Twelve Months Ended December 31, 2013 | |||||||||||||||||||||||||
Beginning Balance | $ | 2,572 | $ | 262 | $ | 260 | $ | 3,094 | |||||||||||||||||
(Charge-offs) | (879 | ) | (17 | ) | (132 | ) | (1,028 | ) | |||||||||||||||||
Recoveries | 68 | 1 | 14 | 83 | |||||||||||||||||||||
Provision | 704 | 10 | 62 | 776 | |||||||||||||||||||||
Ending Balance | $ | 2,465 | $ | 256 | $ | 204 | $ | 2,925 | |||||||||||||||||
Individually evaluated for impairment | $ | 634 | $ | — | $ | 33 | $ | 667 | |||||||||||||||||
Collectively evaluated for impairment | 1,831 | 256 | 171 | 2,258 | |||||||||||||||||||||
Loan Receivables Evaluated for Impairment Individually and Collectively by Segment | Loan receivables evaluated for impairment individually and collectively by segment as of December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | Mortgage | Commercial | Consumer | ||||||||||||||||||||||
Loans | and | ||||||||||||||||||||||||
As of December 31, 2014 | on Real Estate | Industrial | Loans | Total | |||||||||||||||||||||
Individually evaluated for impairment | $ | 6,842 | $ | — | $ | 16 | $ | 6,858 | |||||||||||||||||
Collectively evaluated for impairment | 251,861 | 34,002 | 5,333 | 291,196 | |||||||||||||||||||||
Total Gross Loans | $ | 258,703 | $ | 34,002 | $ | 5,349 | $ | 298,054 | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
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 shown in the following table. | ||||||||||||||||||||||||
(Dollars in thousands) | Construction, | Commercial | Commercial | Commercial | |||||||||||||||||||||
Land and | Mortgages | Mortgages | and | ||||||||||||||||||||||
Land | (Non-Owner | (Owner | |||||||||||||||||||||||
As of December 31, 2014 | Development | Farmland | Occupied) | Occupied) | Industrial | Total | |||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 34,913 | $ | 1,128 | $ | 16,426 | $ | 23,967 | $ | 31,041 | $ | 107,475 | |||||||||||||
Watch | 5,649 | — | 3,770 | 4,430 | 2,492 | 16,341 | |||||||||||||||||||
Special mention | 1,403 | — | — | 2,789 | 154 | 4,346 | |||||||||||||||||||
Substandard | 1,083 | — | 338 | 2,140 | 315 | 3,876 | |||||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 43,048 | $ | 1,128 | $ | 20,534 | $ | 33,326 | $ | 34,002 | $ | 132,038 | |||||||||||||
As of December 31, 2013 | Construction, | Farmland | Commercial | Commercial | Commercial | Total | |||||||||||||||||||
Land and | Mortgages | Mortgages | and | ||||||||||||||||||||||
Land | (Non-Owner | (Owner | Industrial | ||||||||||||||||||||||
Development | Occupied) | Occupied) | |||||||||||||||||||||||
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 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 | |||||||||||||||||||||||
Revolving | |||||||||||||||||||||||||
As of December 31, 2014 | First | and Junior | Consumer | ||||||||||||||||||||||
PAYMENT ACTIVITY STATUS | Mortgages (1) | Mortgages (2) | Loans (3) | Total | |||||||||||||||||||||
Performing | $ | 134,908 | $ | 25,369 | $ | 5,234 | $ | 165,511 | |||||||||||||||||
Nonperforming | 359 | 31 | 115 | 505 | |||||||||||||||||||||
Total | $ | 135,267 | $ | 25,400 | $ | 5,349 | $ | 166,016 | |||||||||||||||||
As of December 31, 2013 | Residential | Residential | Consumer | ||||||||||||||||||||||
First | Revolving | ||||||||||||||||||||||||
and Junior | |||||||||||||||||||||||||
PAYMENT ACTIVITY STATUS | Mortgages (4) | Mortgages (5) | Loans (6) | Total | |||||||||||||||||||||
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 | |||||||||||||||||
Notes: | |||||||||||||||||||||||||
-1 | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.1 million as of December 31, 2014. | ||||||||||||||||||||||||
-2 | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $219 thousand as of December 31, 2014. | ||||||||||||||||||||||||
-3 | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $1 thousand as of December 31, 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 December 31, 2014 and 2013, along with the average recorded investment and interest income recognized for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||
(Dollars in thousands) | As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||
IMPAIRED LOANS | |||||||||||||||||||||||||
Recorded | Customers’ Unpaid | Related | Recorded | Customers’ Unpaid | Related | ||||||||||||||||||||
With no related allowance: | Investment | Principal Balance | Allowance | Investment | Principal Balance | Allowance | |||||||||||||||||||
Construction, land and land development | $ | 450 | $ | 452 | $ | — | $ | 453 | $ | 453 | $ | — | |||||||||||||
Residential First Mortgages | 1,568 | 1,584 | — | 1,053 | 1,057 | — | |||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 50 | 50 | — | — | — | — | |||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 264 | — | 264 | 264 | — | |||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,887 | 1,916 | — | 1,831 | 1,840 | — | |||||||||||||||||||
Commercial and Industrial | — | — | — | 311 | 311 | — | |||||||||||||||||||
Consumer (2) | 5 | 5 | — | — | — | — | |||||||||||||||||||
4,224 | 4,271 | — | 3,912 | 3,925 | — | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Construction, land and land development | 277 | 292 | 144 | 151 | 156 | 51 | |||||||||||||||||||
Residential First Mortgages | 2,173 | 2,173 | 437 | 2,198 | 2,198 | 409 | |||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 173 | 173 | 84 | 251 | 879 | 173 | |||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | — | — | — | |||||||||||||||||||
Commercial Mortgages (Owner occupied) | — | — | — | 105 | 105 | 1 | |||||||||||||||||||
Commercial and Industrial | — | — | — | — | — | — | |||||||||||||||||||
Consumer (2) | 11 | 11 | 11 | 39 | 39 | 33 | |||||||||||||||||||
2,634 | 2,649 | 676 | 2,744 | 3,377 | 667 | ||||||||||||||||||||
Total Impaired Loans: | |||||||||||||||||||||||||
Construction, land and land development | 727 | 744 | 144 | 604 | 609 | 51 | |||||||||||||||||||
Residential First Mortgages | 3,741 | 3,757 | 437 | 3,251 | 3,255 | 409 | |||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 223 | 223 | 84 | 251 | 879 | 173 | |||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 264 | — | 264 | 264 | — | |||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,887 | 1,916 | — | 1,936 | 1,945 | 1 | |||||||||||||||||||
Commercial and Industrial | — | — | — | 311 | 311 | — | |||||||||||||||||||
Consumer (2) | 16 | 16 | 11 | 39 | 39 | 33 | |||||||||||||||||||
$ | 6,858 | $ | 6,920 | $ | 676 | $ | 6,656 | $ | 7,302 | $ | 667 | ||||||||||||||
Notes: | |||||||||||||||||||||||||
-1 | Junior mortgages include equity lines. | ||||||||||||||||||||||||
-2 | includes credit cards. | ||||||||||||||||||||||||
For the Year Ended | For the Year Ended | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||
(Dollars in thousands) | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||
Construction, land and land development | $ | 451 | $ | 3 | $ | 189 | $ | 1 | |||||||||||||||||
Residential First Mortgages | 1,148 | 49 | 678 | 48 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 10 | — | — | — | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 16 | 106 | 8 | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,911 | 79 | 1,092 | 56 | |||||||||||||||||||||
Commercial and Industrial | — | — | 62 | — | |||||||||||||||||||||
Consumer (2) | 6 | — | — | — | |||||||||||||||||||||
3,790 | 147 | 2,127 | 113 | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Construction, land and land development | 168 | 4 | 30 | — | |||||||||||||||||||||
Residential First Mortgages | 2,184 | 100 | 1,916 | 108 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 174 | 9 | 254 | 8 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | — | — | — | — | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | — | — | 21 | 2 | |||||||||||||||||||||
Commercial and Industrial | — | — | — | — | |||||||||||||||||||||
Consumer (2) | 24 | 2 | 60 | 5 | |||||||||||||||||||||
2,550 | 115 | 2,281 | 123 | ||||||||||||||||||||||
Total | |||||||||||||||||||||||||
Construction, land and land development | 619 | 7 | 219 | 1 | |||||||||||||||||||||
Residential First Mortgages | 3,332 | 149 | 2,594 | 156 | |||||||||||||||||||||
Residential Revolving and Junior Mortgages (1) | 184 | 9 | 254 | 8 | |||||||||||||||||||||
Commercial Mortgages (Non-owner occupied) | 264 | 16 | 106 | 8 | |||||||||||||||||||||
Commercial Mortgages (Owner occupied) | 1,911 | 79 | 1,113 | 58 | |||||||||||||||||||||
Commercial and Industrial | — | — | 62 | — | |||||||||||||||||||||
Consumer (2) | 30 | 2 | 60 | 5 | |||||||||||||||||||||
$ | 6,340 | $ | 262 | $ | 4,408 | $ | 236 | ||||||||||||||||||
Notes: | |||||||||||||||||||||||||
-1 | Junior mortgages include equity lines. | ||||||||||||||||||||||||
-2 | Includes credit cards. | ||||||||||||||||||||||||
Summary of Troubled Debt Restructurings | The following table presents, by segments of loans, information related to loans modified as TDRs during the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||
For the Year Ended | For the Year Ended | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||||||
(Dollars in thousands) | Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS | Number of | Recorded | Recorded | Number of | Recorded | Recorded | |||||||||||||||||||
Loans | Investment | Investment | Loans | Investment | Investment | ||||||||||||||||||||
Construction, land and land development (1) | 2 | $ | 282 | $ | 277 | 3 | $ | 196 | $ | 196 | |||||||||||||||
Residenital first mortages (2) | — | — | — | 1 | 207 | 204 | |||||||||||||||||||
Residential revolving and junior mortgages (1) | 1 | 50 | 50 | — | — | — | |||||||||||||||||||
Commercial mortgages (Owner occupied) (1) | — | — | — | 2 | 263 | 263 | |||||||||||||||||||
Consumer (2) | — | — | — | 1 | 8 | 7 | |||||||||||||||||||
Notes: | |||||||||||||||||||||||||
-1 | Modifications were an extention of the loan terms. | ||||||||||||||||||||||||
-2 | Modifications were capitalization of the interest. | ||||||||||||||||||||||||
For the Year Ended | For the Year Ended | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||
Loans | Investment | Loans | Investment | ||||||||||||||||||||||
Residential first mortgages | — | $ | — | 1 | $ | 106 | |||||||||||||||||||
Residential revolving and junior mortgages | 1 | 75 | — | — | |||||||||||||||||||||
Commerical mortgages (Owner occupied) | 2 | 255 | — | — |
Other_Real_Estate_Owned_Net_Ta
Other Real Estate Owned, Net (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Net of Valuation Allowances for Losses on Other Real Estate Owned | OREO is presented net of a valuation allowance for losses. An analysis of the valuation allowance on OREO is shown below. | ||||||||||||||||
Years ended | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||
Balance, beginning of year | $ | 538 | $ | 562 | |||||||||||||
Provision for losses | 235 | 300 | |||||||||||||||
Charge-offs | (147 | ) | (324 | ) | |||||||||||||
Balance, end of period | $ | 626 | $ | 538 | |||||||||||||
Components of Expenses Applicable to Foreclosed Assets | Expenses applicable to OREO include the following: | ||||||||||||||||
Years ended | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||
Net loss on sales of real estate | $ | 92 | $ | 263 | |||||||||||||
Provision for losses | 235 | 300 | |||||||||||||||
Operating expenses, net of income | 131 | 124 | |||||||||||||||
Total expenses | $ | 458 | $ | 687 | |||||||||||||
Summary of Properties Included in Other Real Estate Owned (OREO) | The following table details the properties included in OREO as of December 31, 2014 and December 31, 2013. There was one collateralized consumer residential mortgage loan with a balance of $129 thousand in the process of foreclosure as of December 31, 2014. The Company accepted a deed in lieu of foreclosure on this property in January 2015. | ||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||||
No. of | Carrying | No. of | Carrying | ||||||||||||||
(Dollars in thousands) | Properties | Value | Properties | Value | |||||||||||||
Residential | 10 | $ | 1,559 | 11 | $ | 2,442 | |||||||||||
Land lots | 13 | 587 | 14 | 684 | |||||||||||||
Convenience store | 2 | 234 | 2 | 239 | |||||||||||||
Restaurant | 1 | 107 | 1 | 107 | |||||||||||||
Commerical properties | 1 | 304 | 2 | 425 | |||||||||||||
Total | 27 | $ | 2,791 | 30 | $ | 3,897 | |||||||||||
Premises_and_Equipment_net_Tab
Premises and Equipment, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Components of Premises and Equipment Included in Balance Sheets | Components of premises and equipment included in the balance sheets at December 31, 2014 and 2013 were as follows: | ||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Land and improvements | $ | 2,004 | $ | 1,998 | |||||
Buildings and improvements | 13,032 | 11,764 | |||||||
Furniture and equipment | 9,703 | 8,882 | |||||||
Total cost | 24,739 | 22,644 | |||||||
Less accumulated depreciation | (12,857 | ) | (12,024 | ) | |||||
Premises and equipment, net | $ | 11,882 | $ | 10,620 | |||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Schedule of Time Deposits Maturities | At December 31, 2014, the scheduled maturities of time deposits are as follows (in thousands): | ||||
2015 | $ | 56,739 | |||
2016 | 45,267 | ||||
2017 | 8,843 | ||||
2018 | 4,369 | ||||
2019 | 6,543 | ||||
Thereafter | 14 | ||||
$ | 121,775 | ||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Change in benefit obligation | |||||||||||||||||
Benefit obligation, beginning of year | $ | 2,737 | $ | 2,854 | $ | 607 | $ | 759 | |||||||||
Service cost | — | — | 15 | 23 | |||||||||||||
Interest cost | 142 | 143 | 30 | 30 | |||||||||||||
Actuarial loss (gain) | 721 | 225 | 130 | (190 | ) | ||||||||||||
Benefit payments | (54 | ) | (478 | ) | (11 | ) | (15 | ) | |||||||||
Settlement gain | — | (7 | ) | — | — | ||||||||||||
Benefit obligation, end of year | 3,546 | 2,737 | 771 | 607 | |||||||||||||
Change in Plan Assets | Change in plan assets | ||||||||||||||||
Fair value of plan assets, beginning of year | 2,820 | 2,845 | — | — | |||||||||||||
Actual return on plan assets | 131 | 453 | — | — | |||||||||||||
Employer contributions | — | — | 11 | 15 | |||||||||||||
Benefits payments | (54 | ) | (478 | ) | (11 | ) | (15 | ) | |||||||||
Fair value of plan assets, end of year | 2,897 | 2,820 | — | — | |||||||||||||
Funded status at the end of the year | $ | (649 | ) | $ | 83 | $ | (771 | ) | $ | (607 | ) | ||||||
Defined Benefit Plan Funded Status | Funded status at the end of the year | $ | (649 | ) | $ | 83 | $ | (771 | ) | $ | (607 | ) | |||||
Amounts Recognized in Accumulated Other Comprehensive Loss (Income) | Amounts recognized in accumulated other comprehensive loss (income) | ||||||||||||||||
Net loss (gain) | $ | 1,380 | $ | 625 | $ | 83 | $ | (47 | ) | ||||||||
Prior service cost | — | — | — | — | |||||||||||||
Net obligation at transition | — | — | — | — | |||||||||||||
Amount recognized | $ | 1,380 | $ | 625 | $ | 83 | $ | (47 | ) | ||||||||
Components of Net Periodic Benefit Cost (Gain) | Components of net periodic benefit cost (gain) | ||||||||||||||||
Service cost | $ | — | $ | — | $ | 15 | $ | 23 | |||||||||
Interest cost | 142 | 143 | 30 | 30 | |||||||||||||
Expected (return) on plan assets | (202 | ) | (215 | ) | — | — | |||||||||||
Amortization of prior service cost | — | — | — | — | |||||||||||||
Amortization of net obligation at transition | — | — | — | 3 | |||||||||||||
Recognized net loss due to settlement | — | 114 | — | — | |||||||||||||
Recognized net actuarial loss | 37 | 90 | — | 4 | |||||||||||||
Net periodic benefit (gain) cost | (23 | ) | 132 | 45 | 60 | ||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss | Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | ||||||||||||||||
Net loss (gain) | 755 | (224 | ) | 130 | (194 | ) | |||||||||||
Amortization of prior service cost | — | — | — | — | |||||||||||||
Amortization of net obligation at transition | — | — | — | (3 | ) | ||||||||||||
Total recognized in other comprehensive loss/(income) | 755 | (224 | ) | 130 | (197 | ) | |||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss/(income) | $ | 732 | $ | (92 | ) | $ | 175 | $ | (137 | ) | |||||||
Weighted-average Assumptions | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Weighted-average assumptions as of December 31: | |||||||||||||||||
Discount rate used for Net Periodic Pension Cost | 5 | % | 4 | % | 5 | % | 4 | % | |||||||||
Discount Rate used for Disclosure | 4 | % | 5 | % | 4 | % | 5 | % | |||||||||
Expected return on plan assets | 7.5 | % | 8 | % | N/A | N/A | |||||||||||
Rate of compensation increase | N/A | N/A | N/A | N/A | |||||||||||||
Rate of compensation increase for net periodic pension cost | N/A | N/A | N/A | N/A | |||||||||||||
Expected future interest crediting rate | 3 | % | 3 | % | N/A | N/A | |||||||||||
Estimated Future Benefit Payments for Pension and Postretirement Plans | Estimated future benefit payments for the pension and postretirement plans are as follows (in thousands): | ||||||||||||||||
Pension | Postretirement | ||||||||||||||||
2015 | $ | 525 | $ | 22 | |||||||||||||
2016 | 50 | 24 | |||||||||||||||
2017 | 222 | 26 | |||||||||||||||
2018 | 38 | 28 | |||||||||||||||
2019 | 366 | 31 | |||||||||||||||
2020 and thereafter | 1,502 | 190 | |||||||||||||||
Fair Value of Pension Plan Assets by Asset Category | The fair value of the Company’s pension plan assets by asset category are as follows: | ||||||||||||||||
(Dollars in thousands) | Fair Value Measurements at December 31, 2014 Using | ||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | 4 | $ | 4 | $ | — | $ | — | |||||||||
Mutual funds - fixed income | 1,139 | 1,139 | — | — | |||||||||||||
Mutual funds - equity | 1,754 | 1,754 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,897 | $ | 2,897 | $ | — | $ | — | |||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
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 | $ | — | $ | — | |||||||||
FHLB_Tables
FHLB (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Advances of FHLB | The six advances are shown in the following table. | ||||||||||||||||
Description | Balance | Originated | Current | Maturity | |||||||||||||
Interest Rate | Date | ||||||||||||||||
Adjustable Rate Hybrid | $ | 10,000,000 | 4/12/13 | 2.61 | % | 4/13/20 | |||||||||||
Adjustable Rate Credit | 5,000,000 | 5/20/14 | 0.23185 | % | 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 | ||||||||||||
Fixed Rate Credit | 5,000,000 | 10/20/14 | 0.47 | % | 4/20/16 | ||||||||||||
Fixed Rate Credit | 5,000,000 | 10/20/14 | 0.3 | % | 10/20/15 | ||||||||||||
$ | 35,000,000 | ||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Expense for Income Taxes | The expense for income taxes consisted of the following (in thousands): | ||||||||
Year ended December 31, | 2014 | 2013 | |||||||
Current | $ | 499 | $ | 140 | |||||
Deferred | 58 | 259 | |||||||
$ | 557 | $ | 399 | ||||||
Summary of Reasons for Differences Between Statutory Federal Income Tax Rates and Effective Tax Rates | The reasons for the differences between the statutory Federal income tax rates and the effective tax rates are summarized as follows: | ||||||||
2014 | 2013 | ||||||||
Statutory rate | 34 | % | 34 | % | |||||
Increase (decrease) resulting from: | |||||||||
Tax exempt interest | -8.3 | % | -8.5 | % | |||||
Bank owned life insurance | -3.1 | % | -2.7 | % | |||||
Other, net | 0.7 | % | 1.8 | % | |||||
23.3 | % | 24.6 | % | ||||||
Components of Net Deferred Tax Assets and Liabilities | The components of the net deferred tax assets and liabilities included in other liabilities are as follows (in thousands): | ||||||||
December 31, | 2014 | 2013 | |||||||
Deferred tax assets | |||||||||
Allowance for loan losses | $ | 661 | $ | 632 | |||||
Interest on non-accrual loans | 47 | 40 | |||||||
Mortgage servicing rights | — | 197 | |||||||
Other real estate | 397 | 477 | |||||||
Pension plan | 222 | — | |||||||
Postretirement benefits | 262 | 206 | |||||||
Deferred compensation | 141 | 114 | |||||||
Stock-based compensation | 25 | 18 | |||||||
Alternative minimum tax credit | — | 96 | |||||||
Unrealized losses on available-for-sale securities | — | 408 | |||||||
Other | 11 | 3 | |||||||
Total deferred tax assets | 1,766 | 2,191 | |||||||
Deferred tax liabilities | |||||||||
Unrealized gains on available-for-sale securities | (23 | ) | — | ||||||
Pension plan | — | (27 | ) | ||||||
Depreciation | (218 | ) | (276 | ) | |||||
Amortization of goodwill | (928 | ) | (896 | ) | |||||
Net deferred loan fees and costs | (134 | ) | (172 | ) | |||||
Other | (67 | ) | (64 | ) | |||||
Total deferred tax (liabilities) | (1,370 | ) | (1,435 | ) | |||||
Net deferred tax assets | $ | 396 | $ | 756 | |||||
Regulatory_Requirements_and_Re1
Regulatory Requirements and Restrictions (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Schedule of Bank's Actual Capital Amounts and Ratios | The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2014 and 2013, are presented in the following tables: | ||||||||||||||||||||||||
Actual | Minimum | Minimum | |||||||||||||||||||||||
Capital Requirement | To Be Well | ||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
(Dollars in Thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Total Risk Based Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 41,445 | 15.02 | % | $ | 22,074 | 8 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | 36,446 | 13.3 | % | 21,927 | 8 | % | $ | 27,409 | 10 | % | |||||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | 38,240 | 13.86 | % | 11,037 | 4 | % | N/A | N/A | |||||||||||||||||
Bank of Lancaster | 33,241 | 12.13 | % | 10,964 | 4 | % | $ | 16,445 | 6 | % | |||||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||
Consolidated | 38,240 | 10.35 | % | 14,770 | 4 | % | N/A | N/A | |||||||||||||||||
Bank of Lancaster | 33,241 | 9.07 | % | 14,664 | 4 | % | $ | 18,329 | 5 | % | |||||||||||||||
Actual | Minimum | Minimum | |||||||||||||||||||||||
Capital Requirement | To Be Well | ||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
(Dollars in Thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Total Risk Based Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | $ | 39,322 | 16.38 | % | $ | 19,211 | 8 | % | N/A | N/A | |||||||||||||||
Bank of Lancaster | 33,419 | 14.01 | % | 19,089 | 8 | % | $ | 23,861 | 10 | % | |||||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||||||
Consolidated | 36,397 | 15.16 | % | 9,605 | 4 | % | N/A | N/A | |||||||||||||||||
Bank of Lancaster | 30,494 | 12.78 | % | 9,545 | 4 | % | $ | 14,317 | 6 | % | |||||||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||
Consolidated | 36,397 | 10.93 | % | 13,319 | 4 | % | N/A | N/A | |||||||||||||||||
Bank of Lancaster | 30,494 | 9.2 | % | 13,259 | 4 | % | $ | 16,573 | 5 | % |
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value of Options | The variables used in these calculations of the fair value of the options are as follows: | ||||||||||||||||
For the twelve months ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk free interest rate (5 year Treasury) | 1.74 | % | 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 plan activity for 2014 and 2013 is summarized below: | ||||||||||||||||
Weighted Average | Weighted Average | Aggregate | |||||||||||||||
Exercise | Remaining | Intrinsic | |||||||||||||||
Contractual | |||||||||||||||||
Shares | Price | Life (in years) | Value (1) | ||||||||||||||
Options outstanding, January 1, 2013 | 120,617 | $ | 9.51 | 5.4 | |||||||||||||
Granted | 89,500 | 5.25 | |||||||||||||||
Forfeited | (11,519 | ) | 9.42 | ||||||||||||||
Exercised | — | — | |||||||||||||||
Expired | (7,596 | ) | 13.8 | ||||||||||||||
Options outstanding, December 31, 2013 | 191,002 | 7.35 | 6.8 | $ | 14,146 | ||||||||||||
Granted | 7,000 | 5.99 | |||||||||||||||
Forfeited | (344 | ) | 5.9 | ||||||||||||||
Exercised | — | — | |||||||||||||||
Expired | (7,239 | ) | 14.65 | ||||||||||||||
Options outstanding, December 31, 2014 | 190,419 | $ | 7.02 | 6.2 | $ | 32,718 | |||||||||||
Options exercisable, December 31, 2014 | 190,419 | $ | 7.02 | 6.2 | $ | 32,718 | |||||||||||
-1 | The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2014. This amount changes based on changes in the market value of the Company’s common stock. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 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 Years Ended | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Average | Per share | Average | Per share | ||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||
Basic earnings per share | 4,818,377 | $ | 0.38 | 4,816,859 | $ | 0.25 | |||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | 11,204 | 2,484 | |||||||||||||||
Diluted earnings per share | 4,829,581 | $ | 0.38 | 4,819,343 | $ | 0.25 | |||||||||||
Related_Parties_Tables
Related Parties (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Summary of Related Party Transactions | |||||
(Dollars in thousands | |||||
Balance, January 1, 2014 | $ | 2,606 | |||
New loans and extensions to existing loans | 573 | ||||
Repayments and other reductions | (305 | ) | |||
Balance, December 31, 2014 | $ | 2,874 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 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 December 31, 2014 and December 31, 2013: | ||||||||||||||||
(Dollars in thousands) | Fair Value Measurements at December 31, 2014 Using | ||||||||||||||||
Description | Balance | Level 1 | Level 2 | Level 3 | |||||||||||||
Securities available-for-sale: | |||||||||||||||||
U. S. Government agencies | $ | 16,965 | $ | 845 | $ | 16,120 | $ | — | |||||||||
State and municipal obligations | 23,401 | — | 23,401 | — | |||||||||||||
Certificates of deposit | 2,238 | — | 2,238 | — | |||||||||||||
Total securities available-for-sale | $ | 42,604 | $ | 845 | $ | 41,759 | $ | — | |||||||||
Mortgage servicing rights | $ | 596 | $ | — | $ | — | $ | 596 | |||||||||
Defined benefit plan assets: | |||||||||||||||||
Cash and cash equivalents | $ | 4 | $ | 4 | $ | — | $ | — | |||||||||
Mutual funds - fixed income | 1,139 | 1,139 | — | — | |||||||||||||
Mutual funds - equity | 1,754 | 1,754 | — | — | |||||||||||||
Total defined benefit plan assets | $ | 2,897 | $ | 2,897 | $ | — | $ | — | |||||||||
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 | |||||||||||||
Purchases | — | — | |||||||||||||||
Fair value adjustments | — | 17 | |||||||||||||||
Sales | (912 | ) | — | ||||||||||||||
Balance, December 31, 2014 | $ | — | $ | 596 | |||||||||||||
Summary of Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at the end of the respective period. | ||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||
(Dollars in thousands) | Balance as of | ||||||||||||||||
Description | December 31, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Impaired Loans, net | $ | 1,958 | $ | — | $ | — | $ | 1,958 | |||||||||
Other real estate owned, net | 2,791 | — | — | 2,791 | |||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Description | Balance as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2013 | |||||||||||||||||
Impaired Loans, net | $ | 2,077 | $ | — | $ | — | $ | 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 December 31, 2014: | ||||||||||||||||
(Dollars in thousands) | Balance as of | Valuation | Unobservable | Range | |||||||||||||
December 31, 2014 | Technique | Input | (Weighted | ||||||||||||||
Average) | |||||||||||||||||
Impaired Loans, net | $ | 1,958 | Discounted appraised value | Selling Cost | 10% 20% (10%) | ||||||||||||
Lack of Marketability | 25% - 75% (53%) | ||||||||||||||||
Other real estate owned, net | 2,791 | 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 31, 2013: | |||||||||||||||||
(Dollars in thousands) | Balance as of | Valuation | Unobservable | Range | |||||||||||||
December 31, 2013 | Technique | Input | (Weighted | ||||||||||||||
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 December 31, 2014 Using | |||||||||||||||||
(Dollars in thousands) | Balance as of | ||||||||||||||||
Description | December 31, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial Assets: | |||||||||||||||||
Cash and due from banks | $ | 6,181 | $ | 6,181 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 14,784 | 14,784 | — | — | |||||||||||||
Federal funds sold | 119 | 119 | — | — | |||||||||||||
Securities available-for-sale | 42,604 | 845 | 41,759 | — | |||||||||||||
Restricted securities | 2,430 | — | — | 2,430 | |||||||||||||
Loans, net | 295,242 | — | — | 300,481 | |||||||||||||
Accrued interest receivable | 1,197 | — | 1,197 | — | |||||||||||||
Mortgage servicing rights | 596 | — | — | 596 | |||||||||||||
Financial Liabilities: | |||||||||||||||||
Non-interest-bearing liabilities | $ | 63,308 | $ | 63,308 | $ | — | $ | — | |||||||||
Savings and other interest-bearing deposits | 122,502 | — | 122,502 | — | |||||||||||||
Time deposits | 121,775 | — | — | 122,662 | |||||||||||||
Securities sold under repurchase agreements | 6,012 | — | 6,012 | — | |||||||||||||
FHLB advances | 35,000 | — | 35,951 | — | |||||||||||||
Accrued interest payable | 149 | — | 149 | — | |||||||||||||
Fair Value Measurements at December 31, 2013 Using | |||||||||||||||||
Balance as of | |||||||||||||||||
Description | December 31,2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
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 | — |
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Future Minimum Lease payments for Long-term Non-cancelable Lease agreements | the following is a schedule, by year, of future minimum lease payments required under the long-term non-cancelable lease agreements (in thousands). | ||||
2015 | $ | 149 | |||
2016 | 149 | ||||
2017 | 93 | ||||
2018 | 68 | ||||
2019 | 28 | ||||
Thereafter | — | ||||
$ | 487 | ||||
Condensed_Financial_Informatio1
Condensed Financial Information of Parent Company (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Condensed Balance Sheets | |||||||||
(Dollars in thousands) | |||||||||
Condensed Balance Sheets | December 31, 2014 | December 31, 2013 | |||||||
Assets | |||||||||
Cash and due from non-affiliated banks | $ | 2,445 | $ | 3,884 | |||||
Investments in subsidiaries | 35,625 | 32,456 | |||||||
Premises and equipment, net | — | 1 | |||||||
Other assets | 1,732 | 1,266 | |||||||
Total assets | $ | 39,802 | $ | 37,607 | |||||
Liabilities and Shareholders’ Equity | |||||||||
Liabilities | |||||||||
Deferred directors’ compensation | $ | 414 | $ | 337 | |||||
Other liabilities | 150 | 134 | |||||||
Total liabilities | 564 | 471 | |||||||
Total shareholders’ equity | 39,238 | 37,136 | |||||||
Total liabilities and shareholders’ equity | $ | 39,802 | $ | 37,607 | |||||
Condensed Income Statements | |||||||||
(Dollars in thousands) | |||||||||
Condensed Income Statements | Years ended December 31, | ||||||||
2014 | 2013 | ||||||||
Non-interest income | $ | 641 | $ | 600 | |||||
Non-interest expense | 622 | 829 | |||||||
Income (loss) before income taxes and equity in undistributed earnings of subsidiaries | 19 | (229 | ) | ||||||
Income tax expense (benefit) | 5 | (27 | ) | ||||||
Income (loss) before equity in undistributed earnings of subsidiaries | 14 | (202 | ) | ||||||
Equity in undistributed earnings of subsidiaries | 1,816 | 1,424 | |||||||
Net income | $ | 1,830 | $ | 1,222 | |||||
Condensed Statements of Cash Flows | |||||||||
(Dollars in thousands) | |||||||||
Condensed Statements of Cash Flows | Years ended December 31, | ||||||||
2014 | 2013 | ||||||||
Cash Flows from Operating Activities: | |||||||||
Net income | $ | 1,830 | $ | 1,222 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | — | 1 | |||||||
Stock-based compensation | 20 | 122 | |||||||
Equity in undistributed earnings of subsidiaries | (1,816 | ) | (1,424 | ) | |||||
Increase in other assets | (467 | ) | (186 | ) | |||||
Net change in deferred directors’ compensation | 77 | 87 | |||||||
Increase (decrease) in other liabilities | 17 | (3,720 | ) | ||||||
Net cash used in operating activities | (339 | ) | (3,898 | ) | |||||
Cash Flows from Investing Activities: | |||||||||
Purchase of other assets | — | (771 | ) | ||||||
Investment in subsidiaries | (1,100 | ) | (500 | ) | |||||
Net cash used in investing activities | (1,100 | ) | (1,271 | ) | |||||
Cash Flows from Financing Activities: | |||||||||
Net cash provided by financing activities | — | — | |||||||
Net decrease in cash and due from banks | (1,439 | ) | (5,169 | ) | |||||
Cash and due from banks at January 1 | 3,884 | 9,053 | |||||||
Cash and due from banks at December 31 | $ | 2,445 | $ | 3,884 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Balances in Accumulated Other Comprehensive Income (Loss) | The balances in accumulated other comprehensive income (loss) are shown in the following table (dollars in thousands): | ||||||||||||
Net Unrealized | Pension and | Accumulated Other | |||||||||||
Gains (Losses) | Post-retirement | Comprehensive | |||||||||||
on Securities | Benefit Plans | Income (Loss) | |||||||||||
Balance January 1, 2013 | $ | 280 | $ | (661 | ) | $ | (381 | ) | |||||
Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $550 | (1,068 | ) | — | (1,068 | ) | ||||||||
Reclassification for previously unrealized net gains recognized in income, net of tax benefit of $1 | (3 | ) | — | (3 | ) | ||||||||
Net gain on pension and postretirement plans, net of tax expense of $143 | — | 277 | 277 | ||||||||||
Net postretirement plan transition cost, net of tax expense of $1 | — | 2 | 2 | ||||||||||
Balance December 31, 2013 | (791 | ) | (382 | ) | (1,173 | ) | |||||||
Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $422 | 820 | — | 820 | ||||||||||
Reclassification for previously unrealized net losses recognized in income, net of tax benefit of $9 | 16 | — | 16 | ||||||||||
Net loss on pension and postretirement plans, net of tax benefit of $301 | — | (584 | ) | (584 | ) | ||||||||
Balance at December 31, 2014 | $ | 45 | $ | (966 | ) | $ | (921 | ) | |||||
Reclassification of Unrealized Gains and Impairments on Securities and Pension and Postemployment Related Costs | Reclassification for previously unrealized gains and impairments on securities and pension and postemployment related costs are reported in the consolidated statements of income as follows: | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Reclassification for the Year Ended | |||||||||||||
31-Dec-14 | |||||||||||||
Holding gains (losses) | Pension and | ||||||||||||
(Dollars in thousands) | on securities | postemployment costs | |||||||||||
Net losses on sale of securities available-for-securities | $ | (25 | ) | $ | — | ||||||||
Salaries and employee benefits | — | (37 | ) | ||||||||||
Tax (expense) benefit | 9 | 13 | |||||||||||
Impact on net income | $ | (16 | ) | $ | (24 | ) | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Reclassification for the Year Ended | |||||||||||||
31-Dec-13 | |||||||||||||
Holding gains (losses) | Pension and | ||||||||||||
(Dollars in thousands) | on securities | postemployment costs | |||||||||||
Net gains on sale of securities available-for-securities | $ | 284 | $ | — | |||||||||
Loss on security with other-than- temporary impairment | (288 | ) | — | ||||||||||
Salaries and employee benefits | — | (211 | ) | ||||||||||
Tax (expense) benefit | 1 | 71 | |||||||||||
Impact on net income | $ | (3 | ) | $ | (140 | ) | |||||||
Significant_Accounting_Policie2
Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2000 | |
Quarter | Branch | |||
Significant Accounting Policies [Line Items] | ||||
Interest-Bearing Deposits in Banks, maturity period | 1 year | |||
Secured borrowings maturity period under repurchase agreements | 1 year | |||
Credit card and other personal loans charged off period no later than period | 180 days | |||
Number of Quarters | 19 | |||
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 (bTDRsb). | |||
Loan Receivables | $132,038,000 | $105,842,000 | ||
Overstatement of income, after tax | 215,000 | |||
Overstatement of income, pre-tax | 325,000 | |||
Pre-tax adjusted | 34.00% | 34.00% | ||
Basic and diluted earnings per share | $0.04 | |||
Number of branches purchased during the years 1994 through 2000 | 5 | |||
Liabilities for recognized tax benefits | 0 | 0 | ||
Deferred tax assets valuation allowance | 0 | |||
Advertising expense | 237,000 | 175,000 | ||
Special Mention | ||||
Significant Accounting Policies [Line Items] | ||||
Loan Receivables | 4,346,000 | 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 | Building | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 10 years | |||
Minimum | Furniture and Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
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 | |||
Maximum | Building | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 40 years | |||
Maximum | Furniture and Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 10 years |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 0 Months Ended | |||
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2000 | |
Branch | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Goodwill | $2,808,000 | $2,808,000 | ||
Number of branches purchased during the years 1994 through 2000 | 5 | |||
Impairment of goodwill | $0 |
Securities_Aggregate_Amortized
Securities - Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities Portfolio (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $42,536 | $39,721 |
Gross Unrealized Gains | 267 | 129 |
Gross Unrealized (Losses) | -199 | -1,328 |
Fair Value | 42,604 | 38,522 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,232 | 1,736 |
Gross Unrealized Gains | 8 | 9 |
Gross Unrealized (Losses) | -2 | |
Fair Value | 2,238 | 1,745 |
US Government Agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,969 | 9,383 |
Gross Unrealized Gains | 33 | 11 |
Gross Unrealized (Losses) | -37 | -86 |
Fair Value | 16,965 | 9,308 |
State and Municipal Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 23,335 | 27,690 |
Gross Unrealized Gains | 226 | 109 |
Gross Unrealized (Losses) | -160 | -1,242 |
Fair Value | 23,401 | 26,557 |
Auction Rate Security | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 912 | |
Fair Value | $912 |
Securities_Gross_Realized_Gain
Securities - Gross Realized Gains and Gross Realized Losses on Sales of Securities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross realized gains | $8 | $285 |
Gross realized losses | -33 | -1 |
Net realized (losses) gains | -25 | 284 |
Aggregate proceeds | $3,810 | $9,433 |
Investment_Securities_Aggregat
Investment Securities - Aggregate Amortized Cost and Market Values of Investment Securities Portfolio by Contractual Maturity (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | $4,078 | |
Due after one year through five years, Amortized Cost | 21,660 | |
Due after five through ten years, Amortized Cost | 13,871 | |
Due after ten years, Amortized Cost | 2,927 | |
Amortized Cost | 42,536 | 39,721 |
Due in one year or less, Fair Value | 4,087 | |
Due after one year through five years, Fair Value | 21,713 | |
Due after five through ten years, Fair Value | 13,889 | |
Due after ten years, Fair Value | 2,915 | |
Fair Value | $42,604 | $38,522 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Average yields (taxable equivalent) on securities | 2.40% | 2.31% | ||
Market value of securities | $8,500,000 | $12,900,000 | ||
Other-than-temporary impairment charge | 288,000 | |||
Proceed from disposal of auction rate securities | 3,810,000 | 9,433,000 | ||
Company's investment in Federal Home Loan Bank stock | 1,900,000 | 1,100,000 | ||
Company's investment in Federal Reserve Bank stock | 382,000 | 382,000 | ||
Municipal Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Bonds with unrealized loss positions | 29 | 50 | ||
US Government Agencies | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Bonds with unrealized loss positions | 13 | 15 | ||
Certificates of Deposit | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Bonds with unrealized loss positions | 3 | |||
Auction Rate Security | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Face amount of security sold | 1,200,000 | |||
Percentage of Auction rate securities with provision | 50.00% | |||
Proceed from disposal of auction rate securities | $912,000 |
Securities_Unrealized_Loss_Pos
Securities - Unrealized Loss Positions (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $2,653 | $19,063 |
Less than 12 months, Unrealized Loss | 11 | 1,186 |
12 months or more, Fair Value | 12,538 | 3,768 |
12 months or more, Unrealized Loss | 188 | 142 |
Fair Value, Total | 15,191 | 22,831 |
Total Unrealized Loss | 199 | 1,328 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 742 | |
Less than 12 months, Unrealized Loss | 2 | |
Fair Value, Total | 742 | |
Total Unrealized Loss | 2 | |
US Government Agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 1,499 | 4,808 |
Less than 12 months, Unrealized Loss | 4 | 66 |
12 months or more, Fair Value | 3,532 | 1,462 |
12 months or more, Unrealized Loss | 33 | 20 |
Fair Value, Total | 5,031 | 6,270 |
Total Unrealized Loss | 37 | 86 |
State and Municipal Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 412 | 14,255 |
Less than 12 months, Unrealized Loss | 5 | 1,120 |
12 months or more, Fair Value | 9,006 | 2,306 |
12 months or more, Unrealized Loss | 155 | 122 |
Fair Value, Total | 9,418 | 16,561 |
Total Unrealized Loss | $160 | $1,242 |
Investment_Securities_Cumulati
Investment Securities - Cumulative Credit Related Other-Than Temporary Impairment Losses Recognized on One Debt Security (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Balance, beginning of the period | $288 | |
Impairment losses recognized during the period | 288 | |
Realized losses from sales | -288 | |
Balance, end of period | $288 |
Loans_Summary_of_Balances_of_L
Loans - Summary of Balances of Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of balances of loans | ||
Total loans | $298,054 | $250,331 |
Net unamortized deferred loans costs | 393 | 506 |
Allowance for loan losses | -3,205 | -2,925 |
Loans, net | 295,242 | 247,912 |
Construction, Land and Land Development | ||
Summary of balances of loans | ||
Total loans | 43,048 | 31,839 |
Farmland | ||
Summary of balances of loans | ||
Total loans | 1,128 | 1,262 |
Commercial Mortgages (Non-Owner Occupied) | ||
Summary of balances of loans | ||
Total loans | 20,534 | 14,626 |
Commercial Mortgages (Owner Occupied) | ||
Summary of balances of loans | ||
Total loans | 33,326 | 34,177 |
Residential First Mortgages | ||
Summary of balances of loans | ||
Total loans | 135,267 | 114,458 |
Residential Revolving and Junior Mortgages | ||
Summary of balances of loans | ||
Total loans | 25,400 | 24,045 |
Commercial and Industrial loans | ||
Summary of balances of loans | ||
Total loans | 34,002 | 23,938 |
Consumer Loans | ||
Summary of balances of loans | ||
Total loans | $5,349 | $5,986 |
Loans_Additional_Informations_
Loans - Additional Informations (Detail) (Minimum) | 12 Months Ended |
Dec. 31, 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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | $1,502 | $917 |
90 Days or More Past Due and Still Accruing | 14 | 19 |
Nonaccruals | 1,954 | 2,754 |
Total Past Due and Nonaccruals | 3,470 | 3,690 |
Current | 294,584 | 246,641 |
Total Gross Loans | 298,054 | 250,331 |
Construction, Land and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 64 | 65 |
Nonaccruals | 669 | 854 |
Total Past Due and Nonaccruals | 733 | 919 |
Current | 42,315 | 30,920 |
Total Gross Loans | 43,048 | 31,839 |
Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 1,128 | 1,262 |
Total Gross Loans | 1,128 | 1,262 |
Commercial Mortgages (Non-Owner Occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 20,534 | 14,626 |
Total Gross Loans | 20,534 | 14,626 |
Commercial Mortgages (Owner Occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccruals | 566 | 427 |
Total Past Due and Nonaccruals | 566 | 427 |
Current | 32,760 | 33,750 |
Total Gross Loans | 33,326 | 34,177 |
Residential First Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 1,270 | 668 |
Nonaccruals | 359 | 1,083 |
Total Past Due and Nonaccruals | 1,629 | 1,751 |
Current | 133,638 | 112,707 |
Total Gross Loans | 135,267 | 114,458 |
Residential Revolving and Junior Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 6 | 108 |
Nonaccruals | 31 | 76 |
Total Past Due and Nonaccruals | 37 | 184 |
Current | 25,363 | 23,861 |
Total Gross Loans | 25,400 | 24,045 |
Commercial and Industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 96 | 16 |
Nonaccruals | 228 | 311 |
Total Past Due and Nonaccruals | 324 | 327 |
Current | 33,678 | 23,611 |
Total Gross Loans | 34,002 | 23,938 |
Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 66 | 60 |
90 Days or More Past Due and Still Accruing | 14 | 19 |
Nonaccruals | 101 | 3 |
Total Past Due and Nonaccruals | 181 | 82 |
Current | 5,168 | 5,904 |
Total Gross Loans | $5,349 | $5,986 |
Allowance_for_Loan_Losses_Allo
Allowance for Loan Losses - Allowance for Loan Losses by Portfolio Segment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
ALLOWANCE FOR LOAN LOSSES: | ||
Beginning Balance | $2,925 | $3,094 |
(Charge-offs) | -392 | -1,028 |
Recoveries | 61 | 83 |
Provision | 611 | 776 |
Ending Balance | 3,205 | 2,925 |
Individually evaluated for impairment | 676 | 667 |
Collectively evaluated for impairment | 2,529 | 2,258 |
Mortgage Loans on Real Estate | ||
ALLOWANCE FOR LOAN LOSSES: | ||
Beginning Balance | 2,465 | 2,572 |
(Charge-offs) | -313 | -879 |
Recoveries | 36 | 68 |
Provision | 590 | 704 |
Ending Balance | 2,778 | 2,465 |
Individually evaluated for impairment | 665 | 634 |
Collectively evaluated for impairment | 2,113 | 1,831 |
Commercial and Industrial loans | ||
ALLOWANCE FOR LOAN LOSSES: | ||
Beginning Balance | 256 | 262 |
(Charge-offs) | -17 | |
Recoveries | 1 | |
Provision | 67 | 10 |
Ending Balance | 323 | 256 |
Collectively evaluated for impairment | 323 | 256 |
Consumer and Other Loans | ||
ALLOWANCE FOR LOAN LOSSES: | ||
Beginning Balance | 204 | 260 |
(Charge-offs) | -79 | -132 |
Recoveries | 25 | 14 |
Provision | -46 | 62 |
Ending Balance | 104 | 204 |
Individually evaluated for impairment | 11 | 33 |
Collectively evaluated for impairment | $93 | $171 |
Allowance_for_Loan_Losses_Loan
Allowance for Loan Losses - Loan Receivables Evaluated for Impairment Individually and Collectively by Segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $6,858 | $6,656 |
Collectively evaluated for impairment | 291,196 | 243,675 |
Total Gross Loans | 298,054 | 250,331 |
Mortgage Loans on Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 6,842 | 6,306 |
Collectively evaluated for impairment | 251,861 | 214,101 |
Total Gross Loans | 258,703 | 220,407 |
Commercial and Industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 311 | |
Collectively evaluated for impairment | 34,002 | 23,627 |
Total Gross Loans | 34,002 | 23,938 |
Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 16 | 39 |
Collectively evaluated for impairment | 5,333 | 5,947 |
Total Gross Loans | $5,349 | $5,986 |
Allowance_for_Loan_Losses_Inte
Allowance for Loan Losses - Internal Risk Rating Grades (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
INTERNAL RISK RATING GRADES | ||
Loan Receivables | $132,038,000 | $105,842,000 |
Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 107,475,000 | 80,254,000 |
Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 16,341,000 | 18,869,000 |
Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 4,346,000 | 2,904,000 |
Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 3,876,000 | 3,815,000 |
Construction, Land and Land Development | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 43,048,000 | 31,839,000 |
Construction, Land and Land Development | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 34,913,000 | 25,616,000 |
Construction, Land and Land Development | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 5,649,000 | 3,493,000 |
Construction, Land and Land Development | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,403,000 | 1,416,000 |
Construction, Land and Land Development | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,083,000 | 1,314,000 |
Farmland | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,128,000 | 1,262,000 |
Farmland | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,128,000 | 1,262,000 |
Commercial Mortgages (Non-Owner Occupied) | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 20,534,000 | 14,626,000 |
Commercial Mortgages (Non-Owner Occupied) | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 16,426,000 | 9,083,000 |
Commercial Mortgages (Non-Owner Occupied) | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 3,770,000 | 5,204,000 |
Commercial Mortgages (Non-Owner Occupied) | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 338,000 | 339,000 |
Commercial Mortgages (Owner Occupied) | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 33,326,000 | 34,177,000 |
Commercial Mortgages (Owner Occupied) | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 23,967,000 | 23,984,000 |
Commercial Mortgages (Owner Occupied) | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 4,430,000 | 7,429,000 |
Commercial Mortgages (Owner Occupied) | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,789,000 | 1,001,000 |
Commercial Mortgages (Owner Occupied) | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,140,000 | 1,763,000 |
Commercial and Industrial loans | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 34,002,000 | 23,938,000 |
Commercial and Industrial loans | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 31,041,000 | 20,309,000 |
Commercial and Industrial loans | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,492,000 | 2,743,000 |
Commercial and Industrial loans | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 154,000 | 487,000 |
Commercial and Industrial loans | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | $315,000 | $399,000 |
Allowance_for_Loan_Losses_Addi
Allowance for Loan Losses - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Loan | Contract | |
Contract | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Period of nonperforming loans | 90 days | |
Non-accruing loans excluded from impaired loan | $663,000 | $724,000 |
Non-accruing loans accrued interest | 32,000 | 23,000 |
Subsequently defaulted number of loans | 3 | |
Number of trouble debt restructurings | 14 | 14 |
Aggregate balance of trouble debt restructuring | 2,500,000 | 2,500,000 |
Charge off of loan default | $75,000 |
Allowance_for_Loan_Losses_Perf
Allowance for Loan Losses - Performing and Non Performing Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Performing and non performing loans | ||||
Loan receivables | $166,016 | $144,489 | ||
Performing | ||||
Performing and non performing loans | ||||
Loan receivables | 165,511 | 143,308 | ||
Nonperforming | ||||
Performing and non performing loans | ||||
Loan receivables | 505 | 1,181 | ||
Residential First Mortgages | ||||
Performing and non performing loans | ||||
Loan receivables | 135,267 | [1] | 114,458 | [2] |
Residential First Mortgages | Performing | ||||
Performing and non performing loans | ||||
Loan receivables | 134,908 | [1] | 113,375 | [2] |
Residential First Mortgages | Nonperforming | ||||
Performing and non performing loans | ||||
Loan receivables | 359 | [1] | 1,083 | [2] |
Residential Revolving and Junior Mortgages | ||||
Performing and non performing loans | ||||
Loan receivables | 25,400 | [3] | 24,045 | [4] |
Residential Revolving and Junior Mortgages | Performing | ||||
Performing and non performing loans | ||||
Loan receivables | 25,369 | [3] | 23,969 | [4] |
Residential Revolving and Junior Mortgages | Nonperforming | ||||
Performing and non performing loans | ||||
Loan receivables | 31 | [3] | 76 | [4] |
Consumer Loans | ||||
Performing and non performing loans | ||||
Loan receivables | 5,349 | [5] | 5,986 | [6] |
Consumer Loans | Performing | ||||
Performing and non performing loans | ||||
Loan receivables | 5,234 | [5] | 5,964 | [6] |
Consumer Loans | Nonperforming | ||||
Performing and non performing loans | ||||
Loan receivables | $115 | [5] | $22 | [6] |
[1] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.1 million as of December 31, 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 $219 thousand as of December 31, 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 $1 thousand as of December 31, 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 $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | $166,016 | $144,489 | ||
Residential First Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 135,267 | [1] | 114,458 | [2] |
Residential Revolving and Junior Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 25,400 | [3] | 24,045 | [4] |
Consumer Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 5,349 | [5] | 5,986 | [6] |
Substandard | Residential First Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 2,100 | 2,600 | ||
Substandard | Residential Revolving and Junior Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 219 | 216 | ||
Substandard | Consumer Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | $1 | $9 | ||
[1] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.1 million as of December 31, 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 $219 thousand as of December 31, 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 $1 thousand as of December 31, 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 $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
With no related allowance, Recorded Investment | $4,224 | $3,912 | ||
With no related allowance, Customers' Unpaid Principal Balance | 4,271 | 3,925 | ||
With no related allowance, Related Allowance | 0 | 0 | ||
With an allowance recorded, Recorded Investment | 2,634 | 2,744 | ||
With an allowance recorded, Customers' Unpaid Principal Balance | 2,649 | 3,377 | ||
With an allowance recorded, Related Allowance | 676 | 667 | ||
Total Impaired Loans, Recorded Investment | 6,858 | 6,656 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 6,920 | 7,302 | ||
Total Impaired Loans, Related Allowance | 676 | 667 | ||
With no related allowance, Average Recorded Investment | 3,790 | 2,127 | ||
With no related allowance, Interest Income Recognized | 147 | 113 | ||
With an allowance recorded, Average Recorded Investment | 2,550 | 2,281 | ||
With an allowance recorded, Interest Income Recognized | 115 | 123 | ||
Total, Average Recorded Investment | 6,340 | 4,408 | ||
Total, Interest Income Recognized | 262 | 236 | ||
Construction, Land and Land Development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
With no related allowance, Recorded Investment | 450 | 453 | ||
With no related allowance, Customers' Unpaid Principal Balance | 452 | 453 | ||
With no related allowance, Related Allowance | 0 | 0 | ||
With an allowance recorded, Recorded Investment | 277 | 151 | ||
With an allowance recorded, Customers' Unpaid Principal Balance | 292 | 156 | ||
With an allowance recorded, Related Allowance | 144 | 51 | ||
Total Impaired Loans, Recorded Investment | 727 | 604 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 744 | 609 | ||
Total Impaired Loans, Related Allowance | 144 | 51 | ||
With no related allowance, Average Recorded Investment | 451 | 189 | ||
With no related allowance, Interest Income Recognized | 3 | 1 | ||
With an allowance recorded, Average Recorded Investment | 168 | 30 | ||
With an allowance recorded, Interest Income Recognized | 4 | |||
Total, Average Recorded Investment | 619 | 219 | ||
Total, Interest Income Recognized | 7 | 1 | ||
Residential First Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
With no related allowance, Recorded Investment | 1,568 | 1,053 | ||
With no related allowance, Customers' Unpaid Principal Balance | 1,584 | 1,057 | ||
With no related allowance, Related Allowance | 0 | 0 | ||
With an allowance recorded, Recorded Investment | 2,173 | 2,198 | ||
With an allowance recorded, Customers' Unpaid Principal Balance | 2,173 | 2,198 | ||
With an allowance recorded, Related Allowance | 437 | 409 | ||
Total Impaired Loans, Recorded Investment | 3,741 | 3,251 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 3,757 | 3,255 | ||
Total Impaired Loans, Related Allowance | 437 | 409 | ||
With no related allowance, Average Recorded Investment | 1,148 | 678 | ||
With no related allowance, Interest Income Recognized | 49 | 48 | ||
With an allowance recorded, Average Recorded Investment | 2,184 | 1,916 | ||
With an allowance recorded, Interest Income Recognized | 100 | 108 | ||
Total, Average Recorded Investment | 3,332 | 2,594 | ||
Total, Interest Income Recognized | 149 | 156 | ||
Residential Revolving and Junior Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
With no related allowance, Recorded Investment | 50 | [1] | ||
With no related allowance, Customers' Unpaid Principal Balance | 50 | [1] | ||
With no related allowance, Related Allowance | 0 | [1] | 0 | [1] |
With an allowance recorded, Recorded Investment | 173 | [1] | 251 | [1] |
With an allowance recorded, Customers' Unpaid Principal Balance | 173 | [1] | 879 | [1] |
With an allowance recorded, Related Allowance | 84 | [1] | 173 | [1] |
Total Impaired Loans, Recorded Investment | 223 | [1] | 251 | [1] |
Total Impaired Loans, Customers' Unpaid Principal Balance | 223 | [1] | 879 | [1] |
Total Impaired Loans, Related Allowance | 84 | [1] | 173 | [1] |
With no related allowance, Average Recorded Investment | 10 | [1] | ||
With an allowance recorded, Average Recorded Investment | 174 | [1] | 254 | [1] |
With an allowance recorded, Interest Income Recognized | 9 | [1] | 8 | [1] |
Total, Average Recorded Investment | 184 | [1] | 254 | [1] |
Total, Interest Income Recognized | 9 | [1] | 8 | [1] |
Commercial Mortgages (Non-Owner Occupied) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
With no related allowance, Recorded Investment | 264 | 264 | ||
With no related allowance, Customers' Unpaid Principal Balance | 264 | 264 | ||
With no related allowance, Related Allowance | 0 | 0 | ||
Total Impaired Loans, Recorded Investment | 264 | 264 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 264 | 264 | ||
With no related allowance, Average Recorded Investment | 264 | 106 | ||
With no related allowance, Interest Income Recognized | 16 | 8 | ||
Total, Average Recorded Investment | 264 | 106 | ||
Total, Interest Income Recognized | 16 | 8 | ||
Commercial Mortgages (Owner Occupied) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
With no related allowance, Recorded Investment | 1,887 | 1,831 | ||
With no related allowance, Customers' Unpaid Principal Balance | 1,916 | 1,840 | ||
With no related allowance, Related Allowance | 0 | 0 | ||
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 | 1,887 | 1,936 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 1,916 | 1,945 | ||
Total Impaired Loans, Related Allowance | 1 | |||
With no related allowance, Average Recorded Investment | 1,911 | 1,092 | ||
With no related allowance, Interest Income Recognized | 79 | 56 | ||
With an allowance recorded, Average Recorded Investment | 21 | |||
With an allowance recorded, Interest Income Recognized | 2 | |||
Total, Average Recorded Investment | 1,911 | 1,113 | ||
Total, Interest Income Recognized | 79 | 58 | ||
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 | 0 | 0 | ||
Total Impaired Loans, Recorded Investment | 311 | |||
Total Impaired Loans, Customers' Unpaid Principal Balance | 311 | |||
With no related allowance, Average Recorded Investment | 62 | |||
Total, Average Recorded Investment | 62 | |||
Consumer Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
With no related allowance, Recorded Investment | 5 | [2] | ||
With no related allowance, Customers' Unpaid Principal Balance | 5 | [2] | ||
With no related allowance, Related Allowance | 0 | [2] | 0 | [2] |
With an allowance recorded, Recorded Investment | 11 | [2] | 39 | [2] |
With an allowance recorded, Customers' Unpaid Principal Balance | 11 | [2] | 39 | [2] |
With an allowance recorded, Related Allowance | 11 | [2] | 33 | [2] |
Total Impaired Loans, Recorded Investment | 16 | [2] | 39 | [2] |
Total Impaired Loans, Customers' Unpaid Principal Balance | 16 | [2] | 39 | [2] |
Total Impaired Loans, Related Allowance | 11 | [2] | 33 | [2] |
With no related allowance, Average Recorded Investment | 6 | [2] | ||
With an allowance recorded, Average Recorded Investment | 24 | [2] | 60 | [2] |
With an allowance recorded, Interest Income Recognized | 2 | [2] | 5 | [2] |
Total, Average Recorded Investment | 30 | [2] | 60 | [2] |
Total, Interest Income Recognized | $2 | [2] | $5 | [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 $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Loan | Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subsequently defaulted number of loans | 3 | |||
Construction, Land and Land Development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | 2 | [1] | 3 | [1] |
Pre-Modification Outstanding Recorded Investment | $282 | [1] | $196 | [1] |
Post-Modification Outstanding Recorded Investment | 277 | [1] | 196 | [1] |
Residential First Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | 1 | [2] | ||
Pre-Modification Outstanding Recorded Investment | 207 | [2] | ||
Post-Modification Outstanding Recorded Investment | 204 | [2] | ||
Subsequently defaulted number of loans | 1 | |||
Subsequently defaulted recorded investment | 106 | |||
Residential Revolving and Junior Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | 1 | [1] | ||
Pre-Modification Outstanding Recorded Investment | 50 | [1] | ||
Post-Modification Outstanding Recorded Investment | 50 | [1] | ||
Subsequently defaulted number of loans | 1 | |||
Subsequently defaulted recorded investment | 75 | |||
Commercial Mortgages (Owner Occupied) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | 2 | [1] | ||
Pre-Modification Outstanding Recorded Investment | 263 | [1] | ||
Post-Modification Outstanding Recorded Investment | 263 | [1] | ||
Subsequently defaulted number of loans | 2 | |||
Subsequently defaulted recorded investment | 255 | |||
Consumer Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | 1 | [2] | ||
Pre-Modification Outstanding Recorded Investment | 8 | [2] | ||
Post-Modification Outstanding Recorded Investment | $7 | [2] | ||
[1] | Modifications were an extention of the loan terms. | |||
[2] | Modifications were capitalization of the interest. |
Other_Real_Estate_Owned_Net_Ne
Other Real Estate Owned Net - Net of Valuation Allowances for Losses on Foreclosed Assets (Detail) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Real Estate Owned And Other Repossessed Assets [Line Items] | ||
Balance, beginning of year | $538 | $562 |
Provision for losses | 235 | 300 |
Charge-offs | -147 | -324 |
Balance, end of period | $626 | $538 |
Other_Real_Estate_Owned_Net_Co
Other Real Estate Owned Net - Components of Expenses Applicable to Foreclosed Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Real Estate Acquired Through Foreclosure Or Similar Procedures [Line Items] | ||
Net loss on sales of real estate | $92 | $263 |
Provision for losses | 235 | 300 |
Operating expenses, net of income | 131 | 124 |
Total expenses | $458 | $687 |
Other_Real_Estate_Owned_Net_Ad
Other Real Estate Owned, Net - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property | Property | |
Other Real Estate [Line Items] | ||
Other assets | 2,504 | $2,901 |
Number of property | 27 | 30 |
Residential | ||
Other Real Estate [Line Items] | ||
Residential properties collateralized with loan | 1 | |
Residential | Collateralized Mortgage Obligations | ||
Other Real Estate [Line Items] | ||
Consumer residential mortgage loan collateralized | 129 | |
Residential and Branch Office | ||
Other Real Estate [Line Items] | ||
Other assets | 771 | $983 |
Branch Office | ||
Other Real Estate [Line Items] | ||
Number of property | 1 | |
Residential Property | ||
Other Real Estate [Line Items] | ||
Number of property | 1 | 1 |
Other_Real_Estate_Owned_Net_Su
Other Real Estate Owned Net - Summary of Properties Included in Other Real Estate Owned (OREO) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Property | Property |
Real Estate Properties [Line Items] | ||
No. of Properties | 27 | 30 |
Carrying Value | $2,791 | $3,897 |
Residential | ||
Real Estate Properties [Line Items] | ||
No. of Properties | 10 | 11 |
Carrying Value | 1,559 | 2,442 |
Land lots | ||
Real Estate Properties [Line Items] | ||
No. of Properties | 13 | 14 |
Carrying Value | 587 | 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 |
Premises_and_Equipment_Net_Com
Premises and Equipment Net - Components of Premises and Equipment Included in Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $24,739 | $22,644 |
Less accumulated depreciation | -12,857 | -12,024 |
Premises and equipment, net | 11,882 | 10,620 |
Land and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 2,004 | 1,998 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 13,032 | 11,764 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $9,703 | $8,882 |
Premises_and_Equipment_Net_Add
Premises and Equipment Net - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $792 | $755 |
Deposits_Additional_Informatio
Deposits - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Cash And Short Term Investments [Line Items] | ||
Aggregate amount of time deposits in denominations of $250000 or more | $16,500,000 | $7,000,000 |
Overdraft demand deposits reclassified to loans | 85,000 | 91,000 |
Brokered deposits | $8,000,000 | $0 |
Deposits_Schedule_of_Time_Depo
Deposits - Schedule of Time Deposits Maturities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments [Line Items] | ||
2015 | $56,739 | |
2016 | 45,267 | |
2017 | 8,843 | |
2018 | 4,369 | |
2019 | 6,543 | |
Thereafter | 14 | |
Time deposits | $121,775 | $96,486 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Mar. 09, 2015 | Dec. 31, 2013 | |
Age | |||
Defined Contribution Plan Disclosure [Line Items] | |||
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 | ||
Discount rate assumption | 5.00% | 4.00% | |
Subsequent Event | First 3% of Each Participant's Contributions | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contribution to defined contribution plan | 100.00% | ||
Percentage of employee's contributions | 3.00% | ||
Subsequent Event | Second 3% of Each Participant's Contributions | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contribution to defined contribution plan | 50.00% | ||
Percentage of employee's contributions | 3.00% | ||
Fixed Income Funds | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Targeted asset allocation percentage | 40.00% | ||
Equity Funds | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Targeted asset allocation percentage | 60.00% | ||
Four Zero One Retirement Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer contributions | 110,000 | $97,000 | |
Conditional period of service for availing plan | 6 months | ||
Four Zero One Retirement Plan | First 2% of Each Participant's Contributions | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contribution to defined contribution plan | 100.00% | ||
Percentage of employee's contributions | 2.00% | ||
Four Zero One Retirement Plan | Second 4% of Each Participant's Contributions | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contribution to defined contribution plan | 25.00% | ||
Percentage of employee's contributions | 4.00% | ||
Pension Plan, Defined Benefit | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Net loss | -755,000 | 224,000 | |
Accumulated benefit obligation | 3,500,000 | 2,700,000 | |
Expected employer contribution | 0 | ||
Other Postretirement Benefit Plan, Defined Benefit | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Net loss | -130,000 | 194,000 | |
Expected employer contribution | 22,435 | ||
Assumed annual rate of increase in per capita health care costs in 2015 | 8.00% | ||
Assumed annual rate of increase in per capita health care costs in 2016 | 8.00% | ||
Assumed annual rate of increase in per capita health care costs in 2017 | 6.00% | ||
Assumed annual rate of increase in per capita health care costs in 2018 | 6.00% | ||
Assumed annual rate of increase in per capita health care costs,2019 and thereafter | 5.00% | ||
Accumulated postretirement benefit obligation at assumed health care cost trend rates increased by 1 percentage | 893 | ||
Aggregate of the service and interest cost components at assumed health care cost trend rates increased by 1 percentage | 39 | ||
Accumulated postretirement benefit obligation at assumed health care cost trend rates decreased by 1 percentage | 838 | ||
Aggregate of the service and interest cost components at assumed health care cost trend rates decreased by 1 percentage | 36 | ||
Employer contributions | 11,000 | $15,000 |
Employee_Benefit_Plans_Change_
Employee Benefit Plans - Change in Benefit Obligation (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit obligation, beginning of year | $2,737 | $2,854 |
Interest cost | 142 | 143 |
Actuarial loss (gain) | 721 | 225 |
Benefit payments | -54 | -478 |
Settlement gain | -7 | |
Benefit obligation, end of year | 3,546 | 2,737 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit obligation, beginning of year | 607 | 759 |
Service cost | 15 | 23 |
Interest cost | 30 | 30 |
Actuarial loss (gain) | 130 | -190 |
Benefit payments | -11 | -15 |
Benefit obligation, end of year | $771 | $607 |
Employee_Benefit_Plans_Change_1
Employee Benefit Plans - Change in Plan Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets, end of year | $2,897 | $2,820 |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets, beginning of year | 2,820 | 2,845 |
Actual return on plan assets | 131 | 453 |
Benefits payments | -54 | -478 |
Fair value of plan assets, end of year | 2,897 | 2,820 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contributions | 11 | 15 |
Benefits payments | ($11) | ($15) |
Employee_Benefit_Plans_Defined
Employee Benefit Plans - Defined Benefit Plan (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Funded status at the end of the year | ($649) | $83 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Funded status at the end of the year | ($771) | ($607) |
Employee_Benefit_Plans_Amounts
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Income) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net loss (gain) | $1,380 | $625 |
Prior service cost | 0 | 0 |
Net obligation at transition | 0 | 0 |
Amount recognized | 1,380 | 625 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net loss (gain) | 83 | -47 |
Prior service cost | 0 | 0 |
Net obligation at transition | 0 | 0 |
Amount recognized | $83 | ($47) |
Employee_Benefit_Plans_Compone
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Gain) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Interest cost | $142 | $143 |
Expected (return) on plan assets | -202 | -215 |
Amortization of prior service cost | 0 | 0 |
Recognized net loss due to settlement | 114 | |
Recognized net actuarial loss | 37 | 90 |
Net periodic benefit (gain) cost | -23 | 132 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 15 | 23 |
Interest cost | 30 | 30 |
Amortization of prior service cost | 0 | 0 |
Amortization of net obligation at transition | 3 | |
Recognized net actuarial loss | 4 | |
Net periodic benefit (gain) cost | $45 | $60 |
Employee_Benefit_Plans_Other_C
Employee Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net loss (gain) | $755 | ($224) |
Amortization of prior service cost | 0 | 0 |
Total recognized in other comprehensive loss/(income) | 755 | -224 |
Total recognized in net periodic benefit cost and other comprehensive loss/(income) | 732 | -92 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net loss (gain) | 130 | -194 |
Amortization of prior service cost | 0 | 0 |
Amortization of net obligation at transition | -3 | |
Total recognized in other comprehensive loss/(income) | 130 | -197 |
Total recognized in net periodic benefit cost and other comprehensive loss/(income) | $175 | ($137) |
Employee_Benefit_Plans_Weighte
Employee Benefit Plans - Weighted-average Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate used for Net Periodic Pension Cost | 5.00% | 4.00% |
Discount Rate used for Disclosure | 4.00% | 5.00% |
Expected return on plan assets | 7.50% | 8.00% |
Rate of compensation increase | 0.00% | 0.00% |
Rate of compensation increase for net periodic pension cost | 0.00% | 0.00% |
Expected future interest crediting rate | 3.00% | 3.00% |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate used for Net Periodic Pension Cost | 5.00% | 4.00% |
Discount Rate used for Disclosure | 4.00% | 5.00% |
Rate of compensation increase | 0.00% | 0.00% |
Rate of compensation increase for net periodic pension cost | 0.00% | 0.00% |
Employee_Benefit_Plans_Estimat
Employee Benefit Plans - Estimated Future Benefit Payments for Pension and Postretirement Plans (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension Plan, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2015 | $525 |
2016 | 50 |
2017 | 222 |
2018 | 38 |
2019 | 366 |
2020 and thereafter | 1,502 |
Other Postretirement Benefit Plan, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2015 | 22 |
2016 | 24 |
2017 | 26 |
2018 | 28 |
2019 | 31 |
2020 and thereafter | $190 |
Employee_Benefit_Plans_Fair_Va
Employee Benefit Plans - Fair Value of Pension Plan Assets by Asset Category (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | $2,897 | $2,820 |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | 4 | 3 |
Fixed Income Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | 1,139 | 1,070 |
Equity Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | 1,754 | 1,747 |
Fair Value, Inputs, Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | 2,897 | 2,820 |
Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | 4 | 3 |
Fair Value, Inputs, Level 1 | Fixed Income Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | 1,139 | 1,070 |
Fair Value, Inputs, Level 1 | Equity Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Cash and cash equivalents | $1,754 | $1,747 |
Recovered_Sheet1
Financial Instruments With Off-Balance Sheet Risk - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loan Purchase Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding loan commitment under financial instrument off balance sheet risk | $36,400 | $37,300 |
Unused lines of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding loan commitment under financial instrument off balance sheet risk | $355 | $329 |
Restrictions_on_Cash_Due_From_
Restrictions on Cash Due From Banks - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Federal Reserve | $25 | $25 |
Other_Borrowings_Additional_In
Other Borrowings - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ||
Securities sold under agreements to repurchase, average rates | 0.12% | 0.19% |
Unused lines of Credit | ||
Short-term Debt [Line Items] | ||
Unused lines of credit | 20.3 | 20.3 |
FHLB_Additional_Information_De
FHLB - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | 31-May-14 | |
Debt Instrument [Line Items] | ||||
Number of FHLB debt advances | 6 | |||
Federal Home Loan Bank advances | $35,000,000 | $15,000,000 | ||
Immediate available credit | 38,600,000 | |||
Total line of credit | 77,600,000 | |||
Average interest rate | 2.48% | |||
Federal Home Loan Bank Advances One | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | 10,000,000 | |||
Advances, Variable rate description | Three month LIBOR-based hybrid floating rate advance | |||
Interest rate LIBOR-based floating rate advance | 4.23% | |||
Federal Home Loan Bank Advances Two | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | 5,000,000 | |||
Interest rate LIBOR-based floating rate advance | 2.69% | |||
Federal Home Loan Bank Advances Three | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | 5,000,000 | |||
Advances, Variable rate description | Three month LIBOR-based floating rate advance | |||
Federal Home Loan Bank Advances Four | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | 5,000,000 | |||
Advances, Variable rate description | Fixed rate advances | |||
Federal Home Loan Bank Advances Five | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | 5,000,000 | |||
Advances, Variable rate description | Fixed rate advances | |||
Federal Home Loan Bank Advances Six | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | 5,000,000 | |||
Advances, Variable rate description | Fixed rate advances | |||
Federal Home Loan Bank Advances Seven | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | $5,000,000 | |||
Advances, Variable rate description | Fixed rate advances |
FHLB_Advances_of_FHLB_Detail
FHLB - Advances of FHLB (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | 31-May-14 | |
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | $35,000,000 | $15,000,000 | |
Federal Home Loan Bank Advances One | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | 10,000,000 | ||
Federal Home Loan Bank Advances Two | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | 5,000,000 | ||
Federal Home Loan Bank Advances Three | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | 5,000,000 | ||
Federal Home Loan Bank Advances Four | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | 5,000,000 | ||
Federal Home Loan Bank Advances Five | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | 5,000,000 | ||
Federal Home Loan Bank Advances Six | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | 5,000,000 | ||
Adjustable Rate Hybrid | Federal Home Loan Bank Advances One | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | 10,000,000 | ||
Originated | 12-Apr-13 | ||
Current Interest Rate | 2.61% | ||
Maturity Date | 13-Apr-20 | ||
Adjustable Rate Credit | Federal Home Loan Bank Advances Two | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | 5,000,000 | ||
Originated | 20-May-14 | ||
Current Interest Rate | 0.23% | ||
Maturity Date | 20-May-15 | ||
Fixed Rate Credit | Federal Home Loan Bank Advances Three | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | 5,000,000 | ||
Originated | 18-Jun-14 | ||
Current Interest Rate | 0.26% | ||
Maturity Date | 18-Jun-15 | ||
Fixed Rate Credit | Federal Home Loan Bank Advances Four | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | 5,000,000 | ||
Originated | 26-Jun-14 | ||
Current Interest Rate | 0.26% | ||
Maturity Date | 26-Jun-15 | ||
Fixed Rate Credit | Federal Home Loan Bank Advances Five | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | 5,000,000 | ||
Originated | 20-Oct-14 | ||
Current Interest Rate | 0.47% | ||
Maturity Date | 20-Apr-16 | ||
Fixed Rate Credit | Federal Home Loan Bank Advances Six | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | $5,000,000 | ||
Originated | 20-Oct-14 | ||
Current Interest Rate | 0.30% | ||
Maturity Date | 20-Oct-15 |
Income_Taxes_Expense_for_Incom
Income Taxes - Expense for Income Taxes (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Expenses [Line Items] | ||
Current | $499 | $140 |
Deferred | 58 | 259 |
Income Tax Expense (Benefit), Total | $557 | $399 |
Income_Taxes_Summary_of_Reason
Income Taxes - Summary of Reasons for Differences Between Statutory Federal Income Tax Rates and Effective Tax Rates (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Statutory Federal Tax Rate [Line Items] | ||
Statutory rate | 34.00% | 34.00% |
Increase (decrease) resulting from: | ||
Tax exempt interest | -8.30% | -8.50% |
Bank owned life insurance | -3.10% | -2.70% |
Other, net | 0.70% | 1.80% |
Effective Income Tax Rate, Total | 23.30% | 24.60% |
Income_Taxes_Components_of_Net
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Allowance for loan losses | $661 | $632 |
Interest on non-accrual loans | 47 | 40 |
Mortgage servicing rights | 197 | |
Other real estate | 397 | 477 |
Pension plan | 222 | |
Postretirement benefits | 262 | 206 |
Deferred compensation | 141 | 114 |
Stock-based compensation | 25 | 18 |
Alternative minimum tax credit | 96 | |
Unrealized losses on available-for-sale securities | 408 | |
Other | 11 | 3 |
Total deferred tax assets | 1,766 | 2,191 |
Deferred tax liabilities | ||
Unrealized gains on available-for-sale securities | -23 | |
Pension plan | -27 | |
Depreciation | -218 | -276 |
Amortization of goodwill | -928 | -896 |
Net deferred loan fees and costs | -134 | -172 |
Other | -67 | -64 |
Total deferred tax (liabilities) | -1,370 | -1,435 |
Net deferred tax assets | $396 | $756 |
Regulatory_Requirements_and_Re2
Regulatory Requirements and Restrictions - Schedule of Bank's Actual Capital Amounts and Ratios (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Consolidated Entities | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | $41,445 | $39,322 |
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 15.02% | 16.38% |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | 22,074 | 19,211 |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 38,240 | 36,397 |
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 13.86% | 15.16% |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | 11,037 | 9,605 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Average Assets), Actual Amount | 38,240 | 36,397 |
Tier 1 Capital (to Average Assets), Actual Ratio | 10.35% | 10.93% |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Amount | 14,770 | 13,319 |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Subsidiaries | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | 36,446 | 33,419 |
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 13.30% | 14.01% |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | 21,927 | 19,089 |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 27,409 | 23,861 |
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | 33,241 | 30,494 |
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 12.13% | 12.78% |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | 10,964 | 9,545 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 16,445 | 14,317 |
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets), Actual Amount | 33,241 | 30,494 |
Tier 1 Capital (to Average Assets), Actual Ratio | 9.07% | 9.20% |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Amount | 14,664 | 13,259 |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $18,329 | $16,573 |
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Employee_Stock_Ownership_Plan_
Employee Stock Ownership Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Age | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Noncontributory employee stock ownership plan, service period eligibility | 12 months | |
Noncontributory employee stock ownership plan, age eligibility | 21 | |
Allocations, as a percentage of eligible participant compensation | 25.00% | |
Participant accounts vested after two years | 30.00% | |
Participant accounts vested after three years | 40.00% | |
Participant accounts vested each year, from fourth year till 100% vested | 20.00% | |
Participant accounts, total vested | 100.00% | |
Allocated shares | 126,540 | |
Contributions to the plan | $3,000 | $0 |
Dividends on the company's stock held by the ESOP | $0 | $0 |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
Feb. 21, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | 378,000 | ||
Stock-based compensation expense | $20,000 | $122,000 | |
Unrecognized compensation expenses related to stock award | 0 | ||
Additional options granted under plan | 7,000 | 89,500 | |
Options vested | 7,000 | 89,500 | |
Fair value of options granted during the period | $2.75 | ||
Stock-based compensation expense | $36,750 | ||
Chief Executive Officer, Executive Vice President And Chief Financial Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional options granted under plan | 7,000 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of options granted during the period | $1.03 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of options granted during the period | $1.08 |
StockBased_Compensation_Fair_V
Stock-Based Compensation - Fair Value of Options (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate (5 year Treasury) | 1.74% | 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) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 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 Plan Activity (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding, beginning | 191,002 | 120,617 | |||
Granted, shares | 7,000 | 89,500 | |||
Forfeited, shares | -344 | -11,519 | |||
Exercised, shares | 0 | 0 | |||
Expired, shares | -7,239 | -7,596 | |||
Options outstanding, ending | 190,419 | 191,002 | 120,617 | ||
Options outstanding, beginning, Weighted Average Exercise Price | $7.35 | $9.51 | |||
Options exercisable, ending | 190,419 | ||||
Granted, Weighted Average Exercise Price | $5.99 | $5.25 | |||
Forfeited, Weighted Average Exercise Price | $5.90 | $9.42 | |||
Exercised, Weighted Average Exercise Price | $0 | $0 | |||
Expired, Weighted Average Exercise Price | $14.65 | $13.80 | |||
Options outstanding, ending, Weighted Average Exercise Price | $7.02 | $7.35 | $9.51 | ||
Options exercisable, ending, Weighted Average Exercise Price | $7.02 | ||||
Options outstanding, ending, Weighted Average Remaining Contractual Life | 6 years 2 months 12 days | 6 years 9 months 18 days | 5 years 4 months 24 days | ||
Options exercisable, ending, Weighted Average Remaining Contractual Life | 6 years 2 months 12 days | ||||
Options outstanding, ending, Aggregate Intrinsic Value | $32,718 | [1] | $14,146 | [1] | |
Options exercisable, ending, Aggregate Intrinsic Value | $32,718 | [1] | |||
[1] | The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2014. This amount changes based on changes in the market value of the Company's common stock. |
Earnings_per_share_Weighted_Av
Earnings per share - Weighted Average Number of Shares Used in Computing Earnings Per Share (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Basic earnings per share | 4,818,377 | 4,816,859 |
Effect of dilutive securities: | ||
Stock options | 11,204 | 2,484 |
Diluted earnings per share | 4,829,581 | 4,819,343 |
Basic earnings per share | $0.38 | $0.25 |
Diluted earnings per share | $0.38 | $0.25 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Computation Of Earnings Per Share Line Items | ||
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 68,707 | 167,762 |
Related_Parties_Additional_Inf
Related Parties - Additional Information (Detail) (key Employees, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
key Employees | ||
Related Party Transaction [Line Items] | ||
Loans and Leases Receivable Related Parties | $2,874,000 | $2,606,000 |
Unfunded commitments to extend credit and related interest | 1,500,000 | 2,000,000 |
Aggregate amount of deposit accounts | $374,000 | $428,000 |
Related_Parties_Related_Partie
Related Parties - Related Parties (Detail) (key Employees, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
key Employees | |
Related Party Transaction [Line Items] | |
Beginning Balance | $2,606 |
New loans and extensions to existing loans | 573 |
Repayments and other reductions | -305 |
Ending Balance | $2,874 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (Fair Value, Measurements, Recurring [Member], Fair Value, Inputs, Level 3, Mortgage Servicing Rights) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan segregated, number of pools | 14 | |
Service costs assumed, per loan | 5.75 | 6 |
Average PSA assumed rate | 184.00% | 162.00% |
Discount rate | 10.00% | 10.00% |
100% PSA | First Month | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 0.00% | |
100% PSA | Between First Month and Month 30 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate increase, each month | 0.20% | |
100% PSA | Month 30 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 6.00% | |
100% PSA | Thereafter | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 6.00% |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities available for sale: | ||
Securities available-for-sale | $42,604 | $38,522 |
Mortgage servicing rights | 596 | 579 |
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 2,897 | 2,820 |
US Government Agencies | ||
Securities available for sale: | ||
Securities available-for-sale | 16,965 | 9,308 |
State and Municipal Obligations | ||
Securities available for sale: | ||
Securities available-for-sale | 23,401 | 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 | 2,238 | 1,745 |
Cash and Cash Equivalents | ||
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 4 | 3 |
Fixed Income Funds | ||
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 1,139 | 1,070 |
Equity Funds | ||
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 1,754 | 1,747 |
Fair Value, Inputs, Level 1 | ||
Securities available for sale: | ||
Securities available-for-sale | 845 | |
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 2,897 | 2,820 |
Fair Value, Inputs, Level 1 | US Government Agencies | ||
Securities available for sale: | ||
Securities available-for-sale | 845 | |
Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | ||
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 4 | 3 |
Fair Value, Inputs, Level 1 | Fixed Income Funds | ||
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 1,139 | 1,070 |
Fair Value, Inputs, Level 1 | Equity Funds | ||
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 1,754 | 1,747 |
Fair Value, Inputs, Level 2 | ||
Securities available for sale: | ||
Securities available-for-sale | 41,759 | 37,610 |
Fair Value, Inputs, Level 2 | US Government Agencies | ||
Securities available for sale: | ||
Securities available-for-sale | 16,120 | 9,308 |
Fair Value, Inputs, Level 2 | State and Municipal Obligations | ||
Securities available for sale: | ||
Securities available-for-sale | 23,401 | 26,557 |
Fair Value, Inputs, Level 2 | Certificates of Deposit | ||
Securities available for sale: | ||
Securities available-for-sale | 2,238 | 1,745 |
Fair Value, Inputs, Level 3 | ||
Securities available for sale: | ||
Securities available-for-sale | 912 | |
Mortgage servicing rights | 596 | 579 |
Fair Value, Inputs, Level 3 | Auction Rate Security | ||
Securities available for sale: | ||
Securities available-for-sale | $912 |
Fair_Value_Measurements_Reconc
Fair Value Measurements - Reconciliation of Items Using Level Three Inputs (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Auction Rate Security | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $912 |
Purchases | 0 |
Sales | -912 |
Mortgage Servicing Rights | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | 579 |
Purchases | 0 |
Fair value adjustments | 17 |
Ending balance | $596 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | Dec. 31, 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 | $1,958 | $2,077 |
Other real estate owned, net | 2,791 | 3,897 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, net | 1,958 | 2,077 |
Other real estate owned, net | $2,791 | $3,897 |
Fair_Value_Measurements_Summar1
Fair Value Measurements - Summary of Quantitative Fair Value Measurements for Level 3 (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired Loans, net | 1,958 | 2,077 |
Other real estate owned, net | 2,791 | 3,897 |
Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired Loans, net | 1,958 | 2,077 |
Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other real estate owned, net | 2,791 | 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 | 75.00% | 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 | 53.00% | 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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ||
Cash and due from banks | $6,181 | $6,789 |
Interest-bearing deposits | 14,784 | 8,900 |
Federal funds sold | 119 | 120 |
Securities available-for-sale | 42,604 | 38,522 |
Restricted securities | 2,430 | 1,638 |
Loans, net | 295,242 | 247,912 |
Loans held for sale | 196 | |
Accrued interest receivable | 1,197 | 1,124 |
Mortgage servicing rights | 596 | 579 |
Financial Liabilities: | ||
Non-interest-bearing liabilities | 63,308 | 57,805 |
Savings and other interest-bearing deposits | 122,502 | 114,056 |
Time deposits | 121,775 | 96,486 |
Securities sold under repurchase agreements | 6,012 | 9,118 |
FHLB advances | 35,000 | 15,000 |
Accrued interest payable | 149 | 167 |
Fair Value, Inputs, Level 1 | ||
Financial Assets: | ||
Cash and due from banks | 6,181 | 6,789 |
Interest-bearing deposits | 14,784 | 8,900 |
Federal funds sold | 119 | 120 |
Securities available-for-sale | 845 | |
Financial Liabilities: | ||
Non-interest-bearing liabilities | 63,308 | 57,805 |
Fair Value, Inputs, Level 2 | ||
Financial Assets: | ||
Securities available-for-sale | 41,759 | 37,610 |
Accrued interest receivable | 1,197 | 1,124 |
Financial Liabilities: | ||
Savings and other interest-bearing deposits | 122,502 | 114,056 |
Securities sold under repurchase agreements | 6,012 | 9,118 |
FHLB advances | 35,951 | 15,923 |
Accrued interest payable | 149 | 167 |
Fair Value, Inputs, Level 3 | ||
Financial Assets: | ||
Securities available-for-sale | 912 | |
Restricted securities | 2,430 | 1,638 |
Loans, net | 300,481 | 253,139 |
Loans held for sale | 196 | |
Mortgage servicing rights | 596 | 579 |
Financial Liabilities: | ||
Time deposits | $122,662 | $98,049 |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Office | ||
Branch | ||
Operating Leased Assets [Line Items] | ||
Number of retail branches | 2 | |
Loan production office and office equipment | 1 | |
Lease expense | $103 | $32 |
Future_Minimum_Lease_payments_
Future Minimum Lease payments for Long-term Non-cancelable Lease agreements (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $149 |
2016 | 149 |
2017 | 93 |
2018 | 68 |
2019 | 28 |
Thereafter | 0 |
Operating Leases, Future Minimum Payments Due, Total | $487 |
Condensed_Financial_Informatio2
Condensed Financial Information of Parent Company - Condensed Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
ASSETS | |||
Cash and due from non-affiliated banks | $6,181 | $6,789 | |
Premises and equipment, net | 11,882 | 10,620 | |
Other assets | 2,504 | 2,901 | |
Total assets | 390,486 | 331,135 | |
LIABILITIES | |||
Other liabilities | 2,651 | 1,534 | |
Total liabilities | 351,248 | 293,999 | |
Total shareholders' equity | 39,238 | 37,136 | 36,585 |
Total liabilities and shareholders' equity | 390,486 | 331,135 | |
Parent Company | |||
ASSETS | |||
Cash and due from non-affiliated banks | 2,445 | 3,884 | 9,053 |
Investments in subsidiaries | 35,625 | 32,456 | |
Premises and equipment, net | 1 | ||
Other assets | 1,732 | 1,266 | |
Total assets | 39,802 | 37,607 | |
LIABILITIES | |||
Deferred directors' compensation | 414 | 337 | |
Other liabilities | 150 | 134 | |
Total liabilities | 564 | 471 | |
Total shareholders' equity | 39,238 | 37,136 | |
Total liabilities and shareholders' equity | $39,802 | $37,607 |
Condensed_Financial_Informatio3
Condensed Financial Information of Parent Company - Condensed Income Statements (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||
Non-interest income | $3,681 | $4,726 |
Non-interest expense | 12,618 | 12,943 |
Income tax expense (benefit) | 557 | 399 |
Net income | 1,830 | 1,222 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Non-interest income | 641 | 600 |
Non-interest expense | 622 | 829 |
Income (loss) before income taxes and equity in undistributed earnings of subsidiaries | 19 | -229 |
Income tax expense (benefit) | 5 | -27 |
Income (loss) before equity in undistributed earnings of subsidiaries | 14 | -202 |
Equity in undistributed earnings of subsidiaries | 1,816 | 1,424 |
Net income | $1,830 | $1,222 |
Condensed_Financial_Informatio4
Condensed Financial Information of Parent Company - Condensed Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash Flows from Operating Activities: | ||
Net income | $1,830 | $1,222 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 20 | 122 |
Increase (decrease) in other liabilities | -92 | 377 |
Cash Flows from Investing Activities: | ||
Purchase of other assets | -771 | |
Cash Flows from Financing Activities: | ||
Net decrease in cash and due from banks | 5,276 | -24,235 |
Cash and due from banks at January 1 | 6,789 | |
Cash and due from banks at December 31 | 6,181 | 6,789 |
Parent Company | ||
Cash Flows from Operating Activities: | ||
Net income | 1,830 | 1,222 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1 | |
Stock-based compensation | 20 | 122 |
Equity in undistributed earnings of subsidiaries | -1,816 | -1,424 |
Increase in other assets | -467 | -186 |
Net change in deferred directors' compensation | 77 | 87 |
Increase (decrease) in other liabilities | 17 | -3,720 |
Net cash used in operating activities | -339 | -3,898 |
Cash Flows from Investing Activities: | ||
Purchase of other assets | -771 | |
Investment in subsidiaries | -1,100 | -500 |
Net cash used in investing activities | -1,100 | -1,271 |
Cash Flows from Financing Activities: | ||
Net cash provided by financing activities | 0 | 0 |
Net decrease in cash and due from banks | -1,439 | -5,169 |
Cash and due from banks at January 1 | 3,884 | 9,053 |
Cash and due from banks at December 31 | $2,445 | $3,884 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Balances in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Beginning balance | ($1,173) | ($381) |
Change in net unrealized holding gains (losses) on securities, before reclassification, net of tax expense (benefit) | 820 | -1,068 |
Reclassification for previously unrealized net (gains) losses recognized in income, net of tax benefit | 16 | -3 |
Net gain (loss) on pension and postretirement plans, net of tax expense | -584 | 277 |
Net postretirement plan transition cost, net of tax expense | 2 | |
Ending Balance | -921 | -1,173 |
Holding gains (losses) on securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Beginning balance | -791 | 280 |
Change in net unrealized holding gains (losses) on securities, before reclassification, net of tax expense (benefit) | 820 | -1,068 |
Reclassification for previously unrealized net (gains) losses recognized in income, net of tax benefit | 16 | -3 |
Ending Balance | 45 | -791 |
Pension and Post employment costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Beginning balance | -382 | -661 |
Net gain (loss) on pension and postretirement plans, net of tax expense | -584 | 277 |
Net postretirement plan transition cost, net of tax expense | 2 | |
Ending Balance | ($966) | ($382) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Balances in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Unrealized holding gains arising during the period, tax expense (benefit) | $422 | ($550) |
Reclassification for previously unrealized net (gains) losses recognized in income, tax benefit | -9 | 1 |
Net gain (loss) pension and postretirement plans, tax expense | 301 | 143 |
Net postretirement plan transition cost, tax expense | 1 | |
Holding gains (losses) on securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Unrealized holding gains arising during the period, tax expense (benefit) | 422 | -550 |
Reclassification for previously unrealized net (gains) losses recognized in income, tax benefit | -9 | 1 |
Pension and Post employment costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net gain (loss) pension and postretirement plans, tax expense | 301 | 143 |
Net postretirement plan transition cost, tax expense | $1 |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income - Reclassification for unrealized gains and impairments on securities and pension and postemployment related costs (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net (losses) gains on sale of securities available-for-securities | ($25) | $284 |
Loss on security with other-than- temporary impairment | -288 | |
Salaries and employee benefits | -6,458 | -6,414 |
Tax (expense) benefit | -557 | -399 |
Net income | 1,830 | 1,222 |
Holding gains (losses) on securities | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net (losses) gains on sale of securities available-for-securities | -25 | 284 |
Loss on security with other-than- temporary impairment | -288 | |
Tax (expense) benefit | 9 | 1 |
Net income | -16 | -3 |
Pension and Post employment costs | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and employee benefits | -37 | -211 |
Tax (expense) benefit | 13 | 71 |
Net income | ($24) | ($140) |