Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BAYK | |
Entity Registrant Name | BAY BANKS OF VIRGINIA INC | |
Entity Central Index Key | 1,034,594 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,787,856 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | [1] |
ASSETS | |||
Cash and due from banks | $ 5,880 | $ 6,181 | |
Interest-bearing deposits | 20,605 | 14,784 | |
Federal funds sold | 2,187 | 119 | |
Securities available-for-sale, at fair value | 47,056 | 42,604 | |
Restricted securities | 2,261 | 2,430 | |
Loans receivable, net of allowance for loan losses of $3,439 and $3,205 | 313,442 | 295,242 | |
Loans held for sale | 709 | ||
Premises and equipment, net | 11,731 | 11,882 | |
Accrued interest receivable | 1,237 | 1,197 | |
Other real estate owned, net | 2,624 | 2,791 | |
Bank owned life insurance | 7,473 | 7,348 | |
Goodwill | 2,808 | 2,808 | |
Mortgage servicing rights | 632 | 596 | |
Other assets | 3,082 | 2,504 | |
Total assets | 421,727 | 390,486 | |
LIABILITIES | |||
Noninterest-bearing deposits | 61,073 | 63,308 | |
Savings and interest-bearing demand deposits | 152,794 | 122,502 | |
Time deposits | 119,734 | 121,775 | |
Total deposits | 333,601 | 307,585 | |
Securities sold under repurchase agreements | 8,787 | 6,012 | |
Federal Home Loan Bank advances | 30,000 | 35,000 | |
Subordinated debt, net of issuance costs | 6,841 | ||
Other liabilities | 2,911 | 2,651 | |
Total liabilities | 382,140 | 351,248 | |
SHAREHOLDERS' EQUITY | |||
Common stock ($5 par value; authorized - 10,000,000 shares; outstanding - 4,787,856 and 4,817,856 shares, respectively) | 23,939 | 24,089 | |
Additional paid-in capital | 2,776 | 2,777 | |
Retained earnings | 13,968 | 13,293 | |
Accumulated other comprehensive loss, net | (1,096) | (921) | |
Total shareholders' equity | 39,587 | 39,238 | |
Total liabilities and shareholders' equity | $ 421,727 | $ 390,486 | |
[1] | Derived from the audited consolidated financial statements. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | [1] |
Loans, allowance for loan losses | $ 3,439 | $ 3,205 | |
Common stock, par value | $ 5 | $ 5 | |
Common stock, authorized shares | 10,000,000 | 10,000,000 | |
Common stock, outstanding shares | 4,787,856 | 4,817,856 | |
[1] | Derived from the audited consolidated financial statements. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
INTEREST INCOME | ||||
Loans, including fees | $ 3,715 | $ 3,279 | $ 7,390 | $ 6,440 |
Securities: | ||||
Taxable | 141 | 85 | 275 | 179 |
Tax-exempt | 86 | 96 | 174 | 194 |
Interest-bearing deposit accounts | 13 | 4 | 21 | 8 |
Total interest income | 3,955 | 3,464 | 7,860 | 6,821 |
INTEREST EXPENSE | ||||
Deposits | 570 | 449 | 1,086 | 907 |
Federal funds purchased | 1 | 1 | ||
Securities sold under repurchase agreements | 2 | 2 | 4 | 4 |
Subordinated debt | 42 | 42 | ||
FHLB advances | 87 | 85 | 172 | 185 |
Total interest expense | 701 | 537 | 1,304 | 1,097 |
Net interest income | 3,254 | 2,927 | 6,556 | 5,724 |
Provision for loan losses | 205 | 97 | 270 | 262 |
Net interest income after provision for loan losses | 3,049 | 2,830 | 6,286 | 5,462 |
NON-INTEREST INCOME | ||||
Income from fiduciary activities | 171 | 175 | 392 | 387 |
Service charges and fees on deposit accounts | 226 | 244 | 449 | 487 |
VISA-related fees | 62 | 61 | 109 | 150 |
Other service charges and fees | 256 | 267 | 517 | 507 |
Secondary market lending income | 140 | 68 | 238 | 179 |
Increase in cash surrender value of life insurance | 62 | 44 | 125 | 91 |
Net gains (losses) on sale of securities available for sale | 6 | (16) | 2 | (17) |
Other real estate losses | (41) | (249) | (80) | (219) |
Net (losses) gains on the disposal of fixed assets | (7) | (7) | 138 | |
Other income | 42 | 30 | 57 | 34 |
Total non-interest income | 917 | 624 | 1,802 | 1,737 |
NON-INTEREST EXPENSES | ||||
Salaries and employee benefits | 1,840 | 1,597 | 3,888 | 3,184 |
Occupancy expense | 442 | 354 | 877 | 712 |
Software maintenance | 145 | 137 | 290 | 275 |
Bank franchise tax | 50 | 47 | 98 | 94 |
VISA expense | 33 | 38 | 64 | 108 |
Telephone expense | 33 | 52 | 66 | 108 |
FDIC assessments | 64 | 72 | 129 | 138 |
Foreclosure property expense | 11 | 28 | 21 | 59 |
Consulting expense | 90 | 70 | 165 | 169 |
Other expense | 908 | 772 | 1,663 | 1,428 |
Total non-interest expenses | 3,616 | 3,167 | 7,261 | 6,275 |
Net income before income taxes | 350 | 287 | 827 | 924 |
Income tax expense | 56 | 27 | 152 | 204 |
Net income | $ 294 | $ 260 | $ 675 | $ 720 |
Basic Earnings Per Share | ||||
Average basic shares outstanding | 4,802,032 | 4,818,733 | 4,805,922 | 4,818,311 |
Earnings per share, basic | $ 0.06 | $ 0.05 | $ 0.14 | $ 0.15 |
Diluted Earnings Per Share | ||||
Average diluted shares outstanding | 4,819,322 | 4,836,783 | 4,819,487 | 4,832,416 |
Earnings per share, diluted | $ 0.06 | $ 0.05 | $ 0.14 | $ 0.15 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 294 | $ 260 | $ 675 | $ 720 |
Unrealized (losses) gains on securities: | ||||
Unrealized holding (losses) gains arising during the period | (564) | 335 | (264) | 825 |
Deferred tax benefit (expense) | 192 | (112) | 90 | (280) |
Reclassification of net securities (gains) losses recognized in net income | (6) | 16 | (2) | 17 |
Deferred tax expense (benefit) | 2 | (6) | 1 | (6) |
Unrealized (losses) gains adjustment, net of tax | (376) | 233 | (175) | 556 |
Defined benefit plan: | ||||
Total other comprehensive (loss) income | (376) | 233 | (175) | 556 |
Comprehensive (loss) income | (82) | 493 | 500 | 1,276 |
Pension Plan, Defined Benefit | ||||
Defined benefit plan: | ||||
Net periodic cost | 3 | (5) | 4 | (11) |
Net loss | (3) | 5 | (4) | 11 |
Deferred tax benefit | 0 | 0 | 0 | 0 |
Defined benefit plan adjustment, net of tax | 0 | 0 | 0 | 0 |
Other Postretirement Benefit Plan, Defined Benefit | ||||
Defined benefit plan: | ||||
Net periodic cost | 13 | 12 | 26 | 23 |
Net loss | (13) | (12) | (26) | (23) |
Deferred tax benefit | 0 | 0 | 0 | 0 |
Defined benefit plan adjustment, net of tax | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |
Balance at beginning of period at Dec. 31, 2014 | $ 39,238 | [1] | $ 24,089 | $ 2,777 | $ 13,293 | $ (921) |
Balance at beginning of period, Shares at Dec. 31, 2014 | 4,817,856 | [1] | 4,817,856 | |||
Net income | $ 675 | 675 | ||||
Other comprehensive income (loss) | (175) | (175) | ||||
Stock repurchase | (168) | $ (150) | (18) | |||
Stock repurchase, Shares | (30,000) | |||||
Stock-based compensation expense | 17 | 17 | ||||
Balance at end of period at Jun. 30, 2015 | $ 39,587 | $ 23,939 | $ 2,776 | $ 13,968 | $ (1,096) | |
Balance at end of period, Shares at Jun. 30, 2015 | 4,787,856 | 4,787,856 | ||||
[1] | Derived from the audited consolidated financial statements. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities | ||
Net income | $ 675 | $ 720 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 478 | 377 |
Net amortization and accretion of securities | 179 | 200 |
Amortization of subordinated debt issuance costs | 1 | |
Provision for loan losses | 270 | 262 |
Stock compensation expense | 17 | 20 |
(Gain) loss on securities available-for-sale | (2) | 17 |
Increase in OREO valuation allowance | 72 | 127 |
Loss on sale of other real estate | 8 | 92 |
Loss (gain) on disposal of fixed assets | 7 | (138) |
Mortgage servicing rights | (36) | (3) |
Loan originations for sale | (5,801) | (4,361) |
Loan sales | 5,200 | 4,263 |
Gain on sold loans | (109) | (96) |
Increase in cash surrender value of life insurance | (125) | (91) |
(Increase) decrease in accrued income and other assets | (136) | 185 |
Increase (decrease) in other liabilities | 270 | (176) |
Net cash provided by operating activities | 968 | 1,398 |
Cash Flows From Investing Activities | ||
Proceeds from maturities and principal paydowns of available-for-sale securities | 1,595 | 1,741 |
Proceeds from sales and calls of available-for-sale securities | 2,324 | 3,331 |
Purchase of bank owned life insurance | (2,001) | |
Purchases of available-for-sale securities | (8,815) | (2,751) |
Sales (purchases) of restricted securities | 169 | (342) |
Increase in federal funds sold | (2,068) | (84) |
Loan (originations) and principal collections, net | (18,480) | (8,287) |
Proceeds from sale of other real estate | 99 | 371 |
Purchases of premises and equipment | (737) | (375) |
Proceeds from the sale of premises and equipment | 311 | |
Net cash used in investing activities | (25,913) | (8,086) |
Cash Flows From Financing Activities | ||
Increase in demand, savings, and other interest-bearing deposits | 28,057 | 355 |
Net decrease in time deposits | (2,041) | (1,616) |
Repurchase of common stock | (168) | |
Issuance of subordinated debt, net | 6,842 | |
Net increase (decrease) in securities sold under repurchase agreements | 2,775 | (128) |
(Decrease) increase in Federal Home Loan Bank advances | (5,000) | 10,000 |
Net cash provided by financing activities | 30,465 | 8,611 |
Net increase in cash and due from banks | 5,520 | 1,923 |
Cash and due from banks at beginning of period | 20,965 | 15,689 |
Cash and due from banks at end of period | 26,485 | 17,612 |
Cash paid for: | ||
Interest | 1,251 | 1,109 |
Income taxes | 390 | 341 |
Non-cash investing and financing: | ||
Unrealized (loss) gain on investment securities | (264) | 825 |
Change in fair value of pension and post-retirement obligation | 0 | 0 |
Loans transferred to other real estate owned | 129 | 197 |
Loans originated to facilitate sale of OREO | 118 | 605 |
Changes in deferred taxes resulting from OCI transactions | $ 90 | $ 286 |
General
General | 6 Months Ended |
Jun. 30, 2015 | |
General | Note 1: General Bay Banks of Virginia, Inc. (the “Company”) owns 100% of the Bank of Lancaster (the “Bank”), 100% of Bay Trust Company, Inc. (the “Trust Company”) and 100% of Steptoes Holdings, LLC (“Steptoes Holdings”). The consolidated financial statements include the accounts of the Bank, the Trust Company, Steptoes Holdings and Bay Banks of Virginia, Inc. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and to the general practices within the banking industry. In management’s opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of the consolidated financial statements, have been included. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year or for any other interim periods. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Significant Accounting Policies | Note 2: Significant Accounting Policies Loans The Company grants mortgage loans on real estate; commercial and industrial loans; and consumer and other loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Company’s market areas. Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, and charge-offs. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment of the related loan yield over the contractual term of the loan, adjusted for early pay-offs, where applicable. The accrual of interest is generally discontinued at the time a loan is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Payments received for loans no longer accruing interest are applied to the unpaid principal balance. Loans greater than 90 days past due may remain on accrual status if the credit is well-secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are charged off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual and past due policies are materially the same for all types of loans. All interest accrued but not collected for loans that are placed on non-accrual or charged off 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. 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 Watch Special Mention Substandard Doubtful Loss 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. |
Amendments to the Accounting St
Amendments to the Accounting Standards Codification | 6 Months Ended |
Jun. 30, 2015 | |
Amendments to the Accounting Standards Codification | Note 3: Amendments to the Accounting Standards Codification In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, “Interest – Imputation of Interest” (Subtopic 835-30) which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction of the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments. ASU 2015-03 is effective for periods beginning after December 15, 2015. The Company has adopted the guidance during the second quarter of 2015 and it did not have a material impact on the Company’s consolidated financial statements. In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items.” ASU 2015-01 eliminates the concept of extraordinary items. However, the presentation and disclosure requirements for items that are either unusual in nature or infrequent in occurrence remain and will be expanded to include items that are both unusual in nature and infrequent in occurrence. ASU 2015-01 is effective for periods beginning after December 15, 2015. ASU 2015-01 is not expected to have a material impact on the Company’s consolidated financial statements. In June 2014, the FASB issued ASU 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” 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. On April 1, 2015, the FASB voted to issue an exposure draft to delay the effective date of ASU 2014-09 for one year. The proposal would delay the effective date for public companies to annual reporting periods beginning after December 15, 2017 including interim periods therein. Adoption would be permitted as of the original effective date of annual reporting periods beginning after December 15, 2016. The Company is evaluating the impact that ASU 2014-09 will have on its consolidated financial statements. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2015 | |
Securities | Note 4: Securities The aggregate amortized costs and fair values of the available-for-sale securities portfolio are as follows: (Dollars in thousands) Available-for-sale securities June 30, 2015 Amortized Gross Gross Fair Corporate bonds $ 200 $ — $ — $ 200 U.S. Government agencies 21,375 67 (69 ) 21,373 State and municipal obligations 23,447 100 (306 ) 23,241 Certificates of deposits 2,232 10 — 2,242 $ 47,254 $ 177 $ (375 ) $ 47,056 Available-for-sale securities December 31, 2014 Amortized Gross Gross Fair 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 Gross realized gains and gross realized losses on sales and calls of securities were as follows: For the three months ended For the six months ended (Dollars in thousands) 2015 2014 2015 2014 Gross realized gains $ 24 $ 5 $ 24 $ 5 Gross realized losses (18 ) (21 ) (22 ) (22 ) Net realized gains (losses) $ 6 $ (16 ) $ 2 $ (17 ) Aggregate proceeds $ 1,710 $ 2,039 $ 2,324 $ 3,331 Average yields (taxable equivalent) on securities were 2.41% and 2.36% for the three months ended June 30, 2015 and 2014, respectively, and 2.40% and 2.37% for the six months ended June 30, 2015 and 2014, respectively. Securities with a market value of $11.9 million and $8.5 million were pledged as collateral for repurchase agreements and for other purposes as required by law as of June 30, 2015 and December 31, 2014, respectively. As of June 30, 2015 and December 31, 2014, all the securities pledged to repurchase agreements were state and municipal obligations. All the repurchase agreements had remaining contractual maturities that were overnight and continuous. Securities sold under repurchase agreements were $8.8 million and $6.0 million as of June 30, 2015 and December 31, 2014, respectively, and included in liabilities on the consolidated balance sheets. The securities pledged to each agreement are reviewed daily and can be changed at the option of the Bank with minimal risk of loss due to changes in fair value. Securities in an unrealized loss position at June 30, 2015 and December 31, 2014, by duration of the unrealized loss, are shown below. The unrealized loss positions were directly related to interest rate movements as there is minimal credit risk exposure in these investments. All agency securities, states and municipal securities and certificates of deposit are investment grade or better and their losses are considered temporary. Management does not intend to sell the securities and does not expect to be required to sell the securities. Furthermore, all amortized cost bases are expected to be recovered. Bonds with unrealized loss positions at June 30, 2015 included 13 federal agencies and 41 municipals. Bonds with unrealized loss positions at December 31, 2014 included 29 municipals, 13 federal agencies and three certificates of deposit. The tables are shown below. (Dollars in thousands) Less than 12 months 12 months or more Total June 30, 2015 Fair Unrealized Fair Unrealized Fair Unrealized U.S. Government agencies $ 5,297 $ 51 $ 1,871 $ 18 $ 7,168 $ 69 States and municipal obligations 8,238 143 3,372 163 11,610 306 Total temporarily impaired securities $ 13,535 $ 194 $ 5,243 $ 181 $ 18,778 $ 375 Less than 12 months 12 months or more Total December 31, 2014 Fair Unrealized Fair Unrealized Fair Unrealized 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 The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $1.6 million and $1.9 million at June 30, 2015 and December 31, 2014, respectively. The Company also had an investment in Federal Reserve Bank of Richmond (“FRB”) stock which totaled $460 thousand and $382 thousand at June 30, 2015 and December 31, 2014, respectively. 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 provisions related 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 | 6 Months Ended |
Jun. 30, 2015 | |
Loans | Note 5: Loans The following is a summary of the balances of loans: (Dollars in thousands) June 30, 2015 December 31, 2014 Mortgage loans on real estate: Construction, Land and Land Development $ 43,894 $ 43,048 Farmland 1,080 1,128 Commercial Mortgages (Non-Owner Occupied) 21,918 20,534 Commercial Mortgages (Owner Occupied) 36,441 33,326 Residential First Mortgages 150,222 135,267 Residential Revolving and Junior Mortgages 26,362 25,400 Commercial and Industrial loans 31,001 34,002 Consumer Loans 5,623 5,349 Total loans 316,541 298,054 Net unamortized deferred loans costs 340 393 Allowance for loan losses (3,439 ) (3,205 ) Loans, net $ 313,442 $ 295,242 The recorded investment in past due and non-accruing loans is shown in the following table. A loan past due by more than 90 days is generally placed on nonaccrual unless it is both well secured and in the process of collection. (Dollars in thousands) Loans Past Due and Nonaccruals June 30, 2015 30-89 90 Days or Nonaccruals Total Past Current Total Construction, Land and Land Development $ 47 $ 67 $ 768 $ 882 $ 43,012 $ 43,894 Farmland — — — — 1,080 1,080 Commercial Mortgages (Non-Owner Occupied) — — 1,045 1,045 20,873 21,918 Commercial Mortgages (Owner Occupied) 1,098 — 1,495 2,593 33,848 36,441 Residential First Mortgages 1,383 323 900 2,606 147,616 150,222 Residential Revolving and Junior Mortgages 152 — 115 267 26,095 26,362 Commercial and Industrial 39 — 124 163 30,838 31,001 Consumer Loans 48 5 — 53 5,570 5,623 Total $ 2,767 $ 395 $ 4,447 $ 7,609 $ 308,932 $ 316,541 Loans Past Due and Nonaccruals December 31, 2014 30-89 90 Days or Nonaccruals Total Past Current Total 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 |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Allowance for Loan Losses | Note 6: Allowance for Loan Losses Allowance for Loan Losses A disaggregation of and an analysis of the change in the allowance for loan losses by segment is shown below. (Dollars in thousands) Mortgage Commercial Consumer Total For the Three Months Ended June 30, 2015 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,763 $ 315 $ 169 $ 3,247 (Charge-offs) — — (54 ) (54 ) Recoveries 5 — 36 41 Provision 121 105 (21 ) 205 Ending Balance $ 2,889 $ 420 $ 130 $ 3,439 Individually evaluated for impairment $ 801 $ 122 $ — $ 923 Collectively evaluated for impairment 2,088 298 130 2,516 Mortgage Commercial Consumer Total For the Three Months Ended June 30, 2014 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,497 $ 248 $ 205 $ 2,950 (Charge-offs) (75 ) — (12 ) (87 ) Recoveries 8 — 5 13 Provision 159 (37 ) (25 ) 97 Ending Balance $ 2,589 $ 211 $ 173 $ 2,973 Individually evaluated for impairment $ 724 $ — $ 32 $ 756 Collectively evaluated for impairment 1,865 211 141 2,217 (Dollars in thousands) Mortgage Commercial Consumer Total For the Six Months Ended June 30, 2015 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,778 $ 323 $ 104 $ 3,205 (Charge-offs) (1 ) — (86 ) (87 ) Recoveries 10 — 41 51 Provision 102 97 71 270 Ending Balance $ 2,889 $ 420 $ 130 $ 3,439 Mortgage Commercial Consumer Total For the Six Months Ended June 30, 2014 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,465 $ 256 $ 204 $ 2,925 (Charge-offs) (214 ) — (21 ) (235 ) Recoveries 14 — 7 21 Provision 324 (45 ) (17 ) 262 Ending Balance $ 2,589 $ 211 $ 173 $ 2,973 Loan receivables evaluated for impairment individually and collectively by segment as of June 30, 2015 and December 31, 2014 are as follows: (Dollars in thousands) As of June 30, 2015 Mortgage Commercial Consumer Total Individually evaluated for impairment $ 9,645 $ 122 $ 3 $ 9,770 Collectively evaluated for impairment 270,272 30,879 5,620 306,771 Total Gross Loans $ 279,917 $ 31,001 $ 5,623 $ 316,541 As of December 31, 2014 Mortgage Commercial Consumer 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 Internal Risk Rating Grades Internal risk rating grades are generally assigned to commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250,000 with chronic delinquency, and TDRs, as shown in the following table. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades (refer to Note 2) are evaluated as new information becomes available for each borrowing relationship or at least quarterly. (Dollars in thousands) As of June 30, 2015 Construction, Farmland Commercial (Non-Owner Commercial Commercial Total Grade: Pass $ 36,215 $ 1,080 $ 18,546 $ 27,518 $ 29,267 $ 112,626 Watch 5,497 — 1,703 3,299 1,228 11,727 Special mention 1,102 — — 3,484 273 4,859 Substandard 1,080 — 1,669 2,140 233 5,122 Doubtful — — — — — — Total $ 43,894 $ 1,080 $ 21,918 $ 36,441 $ 31,001 $ 134,334 As of December 31, 2014 Construction, Farmland Commercial (Non-Owner Commercial Commercial 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 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 As of June 30, 2015 PAYMENT ACTIVITY STATUS Residential Revolving Consumer Total Performing $ 148,999 $ 26,247 $ 5,618 $ 180,864 Nonperforming 1,223 115 5 1,343 Total $ 150,222 $ 26,362 $ 5,623 $ 182,207 As of December 31, 2014 PAYMENT ACTIVITY STATUS Residential Residential Consumer Total Performing $ 134,908 $ 25,369 $ 5,234 $ 165,511 Nonperforming 359 31 115 505 Total $ 135,267 $ 25,400 $ 5,349 $ 166,016 (1) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $1.9 million as of June 30, 2015. (2) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $216 thousand as of June 30, 2015. (3) Consumer Loans which have been assigned a risk rating grade of Substandard were zero as of June 30, 2015. (4) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.1 million as of December 31, 2014. (5) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $219 thousand as of December 31, 2014. (6) Consumer Loans which have been assigned a risk rating grade of Substandard totaled $1 thousand as of December 31, 2014. Impaired Loans The following tables show the Company’s recorded investment and the customers’ unpaid principal balances for impaired loans, with the associated allowance amount, if applicable, as of June 30, 2015 and December 31, 2014, along with the average recorded investment and interest income recognized for the three and six months ended June 30, 2015 and 2014, respectively. (Dollars in thousands) As of June 30, 2015 As of December 31, 2014 IMPAIRED LOANS Recorded Customers’ Unpaid Related Recorded Customers’ Unpaid Related With no related allowance: Construction, land and land development $ 448 $ 452 $ — $ 450 $ 452 $ — Residential First Mortgages 1,957 1,981 — 1,568 1,584 — Residential Revolving and Junior Mortgages (1) 50 50 — 50 50 — Commercial Mortgages (Non-owner occupied) 1,309 1,309 — 264 264 — Commercial Mortgages (Owner occupied) 1,936 1,969 — 1,887 1,916 — Commercial and Industrial — — — — — — Consumer (2) 3 3 — 5 5 — 5,703 5,764 — 4,224 4,271 — With an allowance recorded: Construction, land and land development 270 292 128 277 292 144 Residential First Mortgages 2,154 2,154 356 2,173 2,173 437 Residential Revolving and Junior Mortgages (1) 173 173 83 173 173 84 Commercial Mortgages (Non-owner occupied) — — — — — — Commercial Mortgages (Owner occupied) 1,348 1,356 234 — — — Commercial and Industrial 122 122 122 — — — Consumer (2) — — — 11 11 11 4,067 4,097 923 2,634 2,649 676 Total Impaired Loans: Construction, land and land development 718 744 128 727 744 144 Residential First Mortgages 4,111 4,135 356 3,741 3,757 437 Residential Revolving and Junior Mortgages (1) 223 223 83 223 223 84 Commercial Mortgages (Non-owner occupied) 1,309 1,309 — 264 264 — Commercial Mortgages (Owner occupied) 3,284 3,325 234 1,887 1,916 — Commercial and Industrial 122 122 122 — — — Consumer (2) 3 3 — 16 16 11 $ 9,770 $ 9,861 $ 923 $ 6,858 $ 6,920 $ 676 (1) Junior mortgages include equity lines. (2) Includes credit cards. For the three months ended For the three months ended June 30, 2015 June 30, 2014 (Dollars in thousands) Average Interest Average Interest With no related allowance: Construction, land and land development $ 449 $ — $ 451 $ 1 Residential First Mortgages 1,761 18 1,042 10 Residential Revolving and Junior Mortgages (1) 50 1 — — Commercial Mortgages (Non-owner occupied) 786 14 264 4 Commercial Mortgages (Owner occupied) 1,552 18 1,917 20 Commercial and Industrial — — — — Consumer (2) 4 — — — 4,602 51 3,674 35 With an allowance recorded: Construction, land and land development 272 1 288 1 Residential First Mortgages 2,160 26 2,186 26 Residential Revolving and Junior Mortgages (1) 173 2 174 2 Commercial Mortgages (Non-owner occupied) — — — — Commercial Mortgages (Owner occupied) 1,026 8 — — Commercial and Industrial 123 — — — Consumer (2) — — 38 1 3,754 37 2,686 30 Total Construction, land and land development 721 1 739 2 Residential First Mortgages 3,921 44 3,228 36 Residential Revolving and Junior Mortgages (1) 223 3 174 2 Commercial Mortgages (Non-owner occupied) 786 14 264 4 Commercial Mortgages (Owner occupied) 2,578 26 1,917 20 Commercial and Industrial 123 — — — Consumer (2) 4 — 38 1 $ 8,356 $ 88 $ 6,360 $ 65 (1) Junior mortgages include equity lines. (2) Includes credit cards. For the six months ended For the six months ended (Dollars in thousands) Average Interest Average Interest With no related allowance: Construction, land and land development $ 449 $ — $ 452 $ 2 Residential First Mortgages 1,696 36 1,046 21 Residential Revolving and Junior Mortgages (1) 50 2 — — Commercial Mortgages (Non-owner occupied) 612 18 264 8 Commercial Mortgages (Owner occupied) 1,429 27 1,924 42 Commercial and Industrial — — — — Consumer (2) 4 — — — 4,240 83 3,686 73 With an allowance recorded: Construction, land and land development 274 2 242 1 Residential First Mortgages 2,164 52 2,190 47 Residential Revolving and Junior Mortgages (1) 173 4 174 4 Commercial Mortgages (Non-owner occupied) — — — — Commercial Mortgages (Owner occupied) 919 12 — — Commercial and Industrial 82 — — — Consumer (2) — — 38 2 3,612 70 2,644 54 Total Construction, land and land development 723 2 694 3 Residential First Mortgages 3,860 88 3,236 68 Residential Revolving and Junior Mortgages (1) 223 6 174 4 Commercial Mortgages (Non-owner occupied) 612 18 264 8 Commercial Mortgages (Owner occupied) 2,348 39 1,924 42 Commercial and Industrial 82 — — — Consumer (2) 4 — 38 2 $ 7,852 $ 153 $ 6,330 $ 127 (1) Junior mortgages include equity lines. (2) Includes credit cards. Smaller non-accruing loans and non-accruing loans that are not graded because they are included in homogenous pools generally do not meet the criteria for impairment testing, and are therefore excluded from impaired loan disclosures. At June 30, 2015 and December 31, 2014, non-accruing loans excluded from impaired loan disclosure totaled $591 thousand and $663 thousand, respectively. If interest on these non-accruing loans had been accrued, such income would have approximated $4 thousand and $6 thousand during the three months ended June 30, 2015 and 2014, respectively, and $8 thousand and $13 thousand during the six months ended June 30, 2015 and 2014, respectively. Loan Modifications Loans modified as TDRs are considered impaired and are individually evaluated for the amount of impairment in the ALL. The following table presents, by segments of loans, information related to loans modified as TDRs during the three and six months ended June 30, 2015 and 2014. For the three months ended For the three months ended June 30, 2015 June 30, 2014 (Dollars in thousands) TROUBLED DEBT RESTRUCTURINGS Number of Pre-Modification Post-Modification Number of Pre-Modification Post-Modification Construction, land and land development (1) — $ — $ — 2 $ 282 $ 282 (1) Modifications were an extension of loan terms. For the six months ended For the six months ended June 30, 2015 June 30, 2014 (Dollars in thousands) TROUBLED DEBT RESTRUCTURINGS Number of Pre-Modification Post-Modification Number of Pre-Modification Post-Modification Construction, land and land development (1) — $ — $ — 2 $ 282 $ 282 Commercial mortgages (Owner occupied) (2) 1 105 124 — — — (1) Modifications were an extension of loan terms. (2) Modifications were capitalization of interest. (Dollars in thousands) For the three months ended For the three months ended TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED Number of Recorded Number of Recorded Residential revolving and junior mortgages — $ — 1 $ 75 (Dollars in thousands) For the six months ended For the six months ended TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED Number of Recorded Number of Recorded Residential revolving and junior mortgages — $ — 1 $ 75 Commercial mortgages (Owner occupied) 1 124 — — Other Real Estate Owned The table below details the properties included in other real estate owned (“OREO”) as of June 30, 2015 and December 31, 2014. There was one collateralized consumer residential mortgage loan with a balance of $28 thousand in the process of foreclosure as of June 30, 2015. The property was foreclosed on August 3, 2015. As of June 30, 2015 As of December 31, 2014 (Dollars in thousands) No. of Carrying No. of Carrying Residential 7 $ 1,407 10 $ 1,559 Land lots 7 442 13 587 Convenience stores 2 234 2 234 Restaurant 1 107 1 107 Commercial properties 2 434 1 304 Total 19 $ 2,624 27 $ 2,791 Included in other assets as of June 30, 2015, was one residential property purchased in 2013 from a related party with a value of $724 thousand and a former branch, which was closed April 30, 2015, with a value of $398 thousand. As of December 31, 2014, the residential property was included in other assets and had a value of $771 thousand. Both properties are being marketed for sale. |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings per share | Note 7: Earnings per share The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of dilutive potential common stock. For the three months ended For the six months ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Average Per share Average Per share Average Per share Average Per share Basic earnings per share 4,802,032 $ 0.06 4,818,733 $ 0.05 4,805,922 $ 0.14 4,818,311 $ 0.15 Effect of dilutive securities: Stock options 17,290 18,050 13,565 14,105 Diluted earnings per share 4,819,322 $ 0.06 4,836,783 $ 0.05 4,819,487 $ 0.14 4,832,416 $ 0.15 For the three months ended June 30, 2015 and 2014, options on 54,733 and 62,588 shares, respectively, were not included in computing diluted earnings per share because their effects were anti-dilutive. For the six months ended June 30, 2015 and 2014, options of 68,473 and 68,828 shares, respectively, were not included in computing diluted earnings per share because their effects were anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Stock-Based Compensation | Note 8: Stock-Based Compensation On June 28, 2013, the Company registered with the Securities and Exchange Commission a new stock-based compensation plan, which superseded all other plans. There are 370,500 shares available for grant under this plan at June 30, 2015. Stock-based compensation expense related to stock awards was zero for both the three month periods ended June 30, 2015 and 2014 and during the six month periods ended June 30, 2015 and 2014 was $17 thousand and $20 thousand, respectively. Compensation expense for stock options is the estimated fair value of options on the date granted using the Black-Scholes Model amortized on a straight-line basis over the vesting period of the award. There was no unrecognized compensation expense related to stock options as of June 30, 2015. Options for a total of 7,500 shares were granted and vested during the six months ended June 30, 2015. The aggregate fair value of options granted during the six months ended June 30, 2015 was $17 thousand. Options for a total of 7,000 shares were granted and vested during the six months ended June 30, 2014. The aggregate fair value of options granted during the six months ended June 30, 2014 was $20 thousand. The variables used in these calculations of the fair value of the options are as follows: For the six months ended June 30, 2015 2014 Risk free interest rate (5 year Treasury) 1.52 % 2.70 % Expected dividend yield 0.0 % 0.0 % Expected term (years) 5 5 Expected volatility 47.1 % 51.4 % Stock option activity for the six months ended June 30, 2015 (unaudited) is summarized below: Shares Weighted Average Weighted Aggregate Options outstanding, January 1, 2015 190,419 $ 7.02 6.2 Granted 7,500 5.37 Forfeited — — Exercised — — Expired (7,734 ) 14.43 Options outstanding and exercisable, June 30, 2015 190,185 $ 6.66 6.1 $ 94,373 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on June 30, 2015. This amount changes based on changes in the market value of the Company’s common stock. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Employee Benefit Plans | Note 9: Employee Benefit Plans The Company has a non-contributory, defined benefit pension plan for full-time employees who were over 21 years of age and vested in the plan as of December 31, 2012, when the plan was frozen. Each participant’s account balance grows based on monthly interest credits. The Company funds pension costs in accordance with the funding provisions of the Employee Retirement Income Security Act. The Company sponsors a post-retirement benefit plan covering current and future retirees who acquire age 55 and 10 years of service or age 65 and 5 years of service. The post-retirement benefit plan provides coverage toward a retiree’s eligible medical and life insurance benefits expenses. The plan is unfunded and funded as benefits are due. Components of Net Periodic (Benefit) Cost (Dollars in thousands) Pension Benefits Post-Retirement Benefits Six months ended June 30, 2015 2014 2015 2014 Service cost $ — $ — $ 11 $ 8 Interest cost 66 71 15 15 Expected return on plan assets (99 ) (101 ) — — Amortization of unrecognized net loss — 19 — — Recognized net actuarial loss 37 — — — Net periodic (benefit) cost $ 4 $ (11 ) $ 26 $ 23 The Company expects to make no contribution to its pension plan and $5 thousand to its post-retirement benefit plan during the remainder of 2015. The Company has contributed $5 thousand towards the post-retirement plan during the first six months of 2015. |
Long Term Debt
Long Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Long Term Debt | Note 10: Long Term Debt FHLB Debt As of June 30, 2015, the Bank had FHLB debt consisting of five advances (see table below). 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. One of these advances was repaid in the second quarter of 2015. 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 five advances are shown in the following table. Description Balance Originated Current Maturity Adjustable Rate Hybrid $ 10,000,000 4/12/2013 2.65590 % 4/13/2020 Fixed Rate Credit 5,000,000 10/20/2014 0.47000 % 4/20/2016 Fixed Rate Credit 5,000,000 10/20/2014 0.30000 % 10/20/2015 Fixed Rate Credit 5,000,000 5/20/2015 0.37000 % 2/22/2016 Adjustable Rate Credit 5,000,000 6/18/2015 0.30080 % 9/19/2016 $ 30,000,000 Advances on the FHLB lines are secured by a blanket lien on qualified 1 to 4 family residential real estate loans. Immediate available credit, as of June 30, 2015, was $44.2 million against a total line of credit of $78.2 million. As of June 30, 2015 and December 31, 2014, the Company had $30.0 million and $35.0 million, respectively, in FHLB debt outstanding with a weighted average interest rate of 1.13% and 0.96%, respectively. Subordinated Debt On May 28, 2015, the Company entered into a Subordinated Note Purchase Agreement (the “Purchase Agreement”) with twenty-nine accredited investors under which the Company issued an aggregate of $7,000,000 of subordinated notes (the “Notes”) to the accredited investors. The Notes have a maturity date of May 28, 2025. The Notes bear interest, payable on the 1st of March and September of each year, commencing September 1, 2015, at a fixed interest rate of 6.50% per year. The Notes are not convertible into common stock or preferred stock, and are not callable by the holders. The Company has the right to redeem the Notes, in whole or in part, without premium or penalty, at any time on or after May 28, 2020 and prior to the maturity date, but in all cases in a principal amount with integral multiples of $1,000, plus interest accrued and unpaid through the date of redemption. If an event of default occurs, such as the bankruptcy of the Company, the holder of a Note may declare the principal amount of the Note to be due and immediately payable. The Notes are unsecured, subordinated obligations of the Company and will rank junior in right of payment to the Company’s existing and future senior indebtedness. The Notes qualify as Tier 2 capital for regulatory reporting. (Dollars in thousands) Balance as of 6.5% Subordinated Debt $ 7,000 Less: Issuance costs (159 ) $ 6,841 Bank Dividends 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. |
Regulatory Capital Requirements
Regulatory Capital Requirements and Restrictions | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Capital Requirements and Restrictions | Note 11. Regulatory Capital Requirements and Restrictions In July 2013, the Board of Governors of the Federal Reserve System issued final rules that make technical changes to its capital rules to align them with the Basel III regulatory capital framework and meet certain requirements of the Dodd-Frank Act. Effective January 1, 2015, the final rules require the Bank to comply with the following minimum capital ratios: (i) a new Common Equity Tier 1 capital ratio of 4.5% of risk-weighted assets; (ii) a Tier 1 capital ratio of 6.0% of risk-weighted assets (increased from the prior requirement of 4.0%); (iii) a total capital ratio of 8.0% of risk-weighted assets (unchanged from the prior requirement); and (iv) a leverage ratio of 4.0% of total assets (unchanged from the prior requirement). These are the initial capital requirements, which will be phased in over a four-year period. When fully phased in on January 1, 2019, the rules will require the Bank to maintain (i) a minimum ratio of Common Equity Tier 1 to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% Common Equity Tier 1 ratio as that buffer is phased in, effectively resulting in a minimum ratio of Common Equity Tier 1 to risk-weighted assets of at least 7.0% upon full implementation), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of total capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation), and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average assets. The capital conservation buffer requirement will be phased in beginning January 1, 2016, at 0.625% of risk-weighted assets, increasing by the same amount each year until fully implemented at 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of Common Equity Tier 1 to risk-weighted assets above the minimum but below the conservation buffer will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The Company’s and the Bank’s actual capital amounts and ratios as of June 30, 2015 and December 31, 2014, are presented in the following tables: Actual Minimum Minimum (Dollars in Thousands) Amount Ratio Amount Ratio Amount Ratio As of June 30, 2015: Total Risk Based Capital (to Risk Weighted Assets) Consolidated $ 49,097 16.90 % $ 23,242 8.00 % N/A N/A Bank of Lancaster 40,498 14.08 % 23,010 8.00 % $ 28,763 10 % Tier 1 Capital (to Risk Weighted Assets) Consolidated 38,817 13.36 % 11,621 6.00 % N/A N/A Bank of Lancaster 37,059 12.88 % 11,505 6.00 % $ 17,258 6 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated 38,817 13.36 % 11,621 4.50 % N/A N/A Bank of Lancaster 37,059 12.88 % 11,505 4.50 % $ 14,381 5 % Tier 1 Capital (to Average Assets) Consolidated 38,817 9.52 % 16,307 4.00 % N/A N/A Bank of Lancaster 37,059 9.17 % 16,162 4.00 % $ 20,203 5 % Actual Minimum Minimum (Amounts 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 8.00 % N/A N/A Bank of Lancaster 36,446 13.30 % 21,927 8.00 % $ 27,409 10 % Tier 1 Capital (to Risk Weighted Assets) Consolidated 38,240 13.86 % 11,037 4.00 % N/A N/A Bank of Lancaster 33,241 12.13 % 10,964 4.00 % $ 16,445 6 % Tier 1 Capital (to Average Assets) Consolidated 38,240 10.36 % 14,770 4.00 % N/A N/A Bank of Lancaster 33,241 9.07 % 14,664 4.00 % $ 18,329 5 % |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Measurements | Note 12: 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 Defined benefit plan assets Mortgage servicing rights The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014: (Dollars in thousands) Fair Value Measurements at June 30, 2015 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 200 $ — $ — $ 200 U. S. Government agencies 21,373 1,366 20,007 — State and municipal obligations 23,241 — 23,241 — Certificates of deposit 2,242 — 2,242 — Total securities available-for-sale: $ 47,056 $ 1,366 $ 45,490 $ 200 Mortgage servicing rights $ 632 $ — $ — $ 632 Defined benefit plan assets: Cash and cash equivalents $ 3 $ 3 $ — $ — Mutual funds - fixed income 1,178 1,178 — — Mutual funds - equity 1,751 1,751 — — Total defined benefit plan assets $ 2,932 $ 2,932 $ — $ — 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 $ — $ — The reconciliation of items using Level 3 inputs is as follows: (Dollars in thousands) MSRs Corporate Balance, January 1, 2015 $ 596 $ — Purchases — 200 Impairments — — Fair value adjustments 36 — Sales — — Balance, June 30, 2015 $ 632 $ 200 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: Other Real Estate Owned: The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at the end of the respective period. Fair Value Measurements at June 30, 2015 Using (Dollars in thousands) Description Balance as of Level 1 Level 2 Level 3 Impaired Loans, net $ 3,144 $ — $ — $ 3,144 Other real estate owned, net 2,624 — — 2,624 Fair Value Measurements at December 31, 2014 Using Description Balance as of Level 1 Level 2 Level 3 Impaired Loans, net $ 1,958 $ — $ — $ 1,958 Other real estate owned, net 2,791 — — 2,791 The following table displays quantitative information about Level 3 Fair Value Measurements as of June 30, 2015: (Dollars in thousands) Balance as of Valuation Unobservable Range Impaired Loans, net $ 3,144 Discounted appraised value Selling Cost 10% - 25% (13%) Lack of Marketability 25% - 75 (52%) Other real estate owned, net 2,624 Discounted appraised value Selling Cost 3% - 13% (5%) Lack of Marketability 7% - 20% (10%) 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 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 estimated fair values of financial instruments are shown in the following table. The carrying amounts in the table are included in the balance sheet under the applicable captions. Fair Value Measurements at June 30, 2015 Using (Dollars in thousands) Description Balance as of Fair Value as of Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 5,880 $ 5,880 $ 5,880 $ — $ — Interest-bearing deposits 20,605 20,605 20,605 — — Federal funds sold 2,187 2,187 2,187 — — Securities available-for-sale 47,056 47,056 1,366 45,490 200 Restricted securities 2,261 2,261 — — 2,261 Loans, net 313,442 319,343 — — 319,343 Loans held for sale 709 709 — — 709 Accrued interest receivable 1,237 1,237 — 1,237 — Mortgage servicing rights 632 632 — — 632 Financial Liabilities: Non-interest-bearing liabilities $ 61,073 $ 61,073 $ 61,073 $ — $ — Savings and other interest-bearing deposits 152,794 152,503 — 152,503 — Time deposits 119,734 121,026 — — 121,026 Securities sold under repurchase agreements 8,787 8,787 — 8,787 — FHLB advances 30,000 30,911 — 30,911 — Subordinated debt 6,841 7,000 — — 7,000 Accrued interest payable 201 201 — 201 — Fair Value Measurements at December 31, 2014 Using (Dollars in thousands) Description Balance as of Fair Value as of Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 6,181 $ 6,181 $ 6,181 $ — $ — Interest-bearing deposits 14,784 14,784 14,784 — — Federal funds sold 119 119 119 — — Securities available-for-sale 42,604 42,604 845 41,759 — Restricted securities 2,430 2,430 — — 2,430 Loans, net 295,242 300,481 — — 300,481 Accrued interest receivable 1,197 1,197 — 1,197 — Mortgage servicing rights 596 596 — — 596 Financial Liabilities: Non-interest-bearing liabilities $ 63,308 $ 63,308 $ 63,308 $ — $ — Savings and other interest-bearing deposits 122,502 122,502 — 122,502 — Time deposits 121,775 122,662 — — 122,662 Securities sold under repurchase agreements 6,012 6,012 — 6,012 — FHLB advances 35,000 35,951 — 35,951 — Accrued interest payable 149 149 — 149 — The carrying amounts of cash and due from banks, interest-bearing deposits, federal funds sold or purchased, accrued interest receivable, 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. As a result of being issued and sold at the end of May 2015, the fair value of the Company’s subordinated debt is estimated at its sales price of par less issuance costs. The fair value of the FHLB advances is estimated by discounting the future cash flows using the current interest rates offered for similar advances. The fair value of commitments to extend credit is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present credit worthiness of the counter parties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of standby letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counter parties at the reporting date. At June 30, 2015 and December 31, 2014, the fair value of loan commitments and standby letters of credit was immaterial and therefore, they are not included in the table above. The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair value of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2015 | |
Changes in Accumulated Other Comprehensive Income (Loss) | Note 13: Changes in Accumulated Other Comprehensive Income (Loss) The balances in accumulated other comprehensive income (loss) are shown in the following tables: For the Three Months Ended June 30, 2015 (Dollars in thousands) Net Unrealized Pension and Post-retirement Accumulated Other Balance April 1, 2015 $ 246 $ (966 ) $ (720 ) Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $192 (372 ) — (372 ) Reclassification for previously unrealized net gains recognized in income, net of tax expense of $2 (4 ) — (4 ) Balance June 30, 2015 $ (130 ) $ (966 ) $ (1,096 ) For the Three Months Ended June 30, 2014 (Dollars in thousands) Net Unrealized Pension and Post-retirement Accumulated Other Balance April 1, 2014 $ (468 ) $ (382 ) $ (850 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $112 223 — 223 Reclassification for previously unrealized net losses recognized in income, net of tax benefit of $6 10 — 10 Balance June 30, 2014 $ (235 ) $ (382 ) $ (617 ) For the Six Months Ended June 30, 2015 (Dollars in thousands) Net Unrealized Pension and Post-retirement Accumulated Other Balance January 1, 2015 $ 45 $ (966 ) $ (921 ) Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $90 (174 ) — (174 ) Reclassification for previously unrealized net gains recognized in income, net of tax expense of $1 (1 ) — (1 ) Balance June 30, 2015 $ (130 ) $ (966 ) $ (1,096 ) For the Six Months Ended June 30, 2014 (Dollars in thousands) Net Unrealized Pension and Post-retirement Accumulated Other Balance January 1, 2014 $ (791 ) $ (382 ) $ (1,173 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $280 545 — 545 Reclassification for previously unrealized net losses recognized in income, net of tax benefit of $6 11 — 11 Balance June 30, 2014 $ (235 ) $ (382 ) $ (617 ) Reclassification for previously unrealized (losses) gains and impairments on securities are reported in the Consolidated Statements of Income as follows. No unrealized gains (losses) on pension and post-employment related costs were reclassified to the Consolidated Statements of Income in the three and six months ended June 30, 2015 and 2014. Accumulated Other Comprehensive Income (Loss) Reclassification for the Three Months Ended Holding Losses on Securities (In thousands) June 30, 2015 June 30, 2014 Net gains (losses) on sale of securities available-for-securities $ 6 $ (16 ) Tax (expense) benefit (2 ) 6 Impact on net income $ 4 $ (10 ) Accumulated Other Comprehensive Income (Loss) Reclassification for the Six Months Ended Holding Losses on Securities (In thousands) June 30, 2015 June 30, 2014 Net gains (losses) on sale of securities available-for-securities $ 2 $ (17 ) Tax (expense) benefit (1 ) 6 Impact on net income $ 1 $ (11 ) |
Significant Accounting Polici21
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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. |
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 Watch Special Mention Substandard Doubtful Loss 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. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities Portfolio | The aggregate amortized costs and fair values of the available-for-sale securities portfolio are as follows: (Dollars in thousands) Available-for-sale securities June 30, 2015 Amortized Gross Gross Fair Corporate bonds $ 200 $ — $ — $ 200 U.S. Government agencies 21,375 67 (69 ) 21,373 State and municipal obligations 23,447 100 (306 ) 23,241 Certificates of deposits 2,232 10 — 2,242 $ 47,254 $ 177 $ (375 ) $ 47,056 Available-for-sale securities December 31, 2014 Amortized Gross Gross Fair 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 |
Gross Realized Gains and Gross Realized Losses on Sales of Securities | Gross realized gains and gross realized losses on sales and calls of securities were as follows: For the three months ended For the six months ended (Dollars in thousands) 2015 2014 2015 2014 Gross realized gains $ 24 $ 5 $ 24 $ 5 Gross realized losses (18 ) (21 ) (22 ) (22 ) Net realized gains (losses) $ 6 $ (16 ) $ 2 $ (17 ) Aggregate proceeds $ 1,710 $ 2,039 $ 2,324 $ 3,331 |
Unrealized Loss Positions | Bonds with unrealized loss positions at December 31, 2014 included 29 municipals, 13 federal agencies and three certificates of deposit. The tables are shown below. (Dollars in thousands) Less than 12 months 12 months or more Total June 30, 2015 Fair Unrealized Fair Unrealized Fair Unrealized U.S. Government agencies $ 5,297 $ 51 $ 1,871 $ 18 $ 7,168 $ 69 States and municipal obligations 8,238 143 3,372 163 11,610 306 Total temporarily impaired securities $ 13,535 $ 194 $ 5,243 $ 181 $ 18,778 $ 375 Less than 12 months 12 months or more Total December 31, 2014 Fair Unrealized Fair Unrealized Fair Unrealized 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 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Balances of Loans | The following is a summary of the balances of loans: (Dollars in thousands) June 30, 2015 December 31, 2014 Mortgage loans on real estate: Construction, Land and Land Development $ 43,894 $ 43,048 Farmland 1,080 1,128 Commercial Mortgages (Non-Owner Occupied) 21,918 20,534 Commercial Mortgages (Owner Occupied) 36,441 33,326 Residential First Mortgages 150,222 135,267 Residential Revolving and Junior Mortgages 26,362 25,400 Commercial and Industrial loans 31,001 34,002 Consumer Loans 5,623 5,349 Total loans 316,541 298,054 Net unamortized deferred loans costs 340 393 Allowance for loan losses (3,439 ) (3,205 ) Loans, net $ 313,442 $ 295,242 |
Recorded Investment in Past Due and Non-accruing Loans | The recorded investment in past due and non-accruing loans is shown in the following table. A loan past due by more than 90 days is generally placed on nonaccrual unless it is both well secured and in the process of collection. (Dollars in thousands) Loans Past Due and Nonaccruals June 30, 2015 30-89 90 Days or Nonaccruals Total Past Current Total Construction, Land and Land Development $ 47 $ 67 $ 768 $ 882 $ 43,012 $ 43,894 Farmland — — — — 1,080 1,080 Commercial Mortgages (Non-Owner Occupied) — — 1,045 1,045 20,873 21,918 Commercial Mortgages (Owner Occupied) 1,098 — 1,495 2,593 33,848 36,441 Residential First Mortgages 1,383 323 900 2,606 147,616 150,222 Residential Revolving and Junior Mortgages 152 — 115 267 26,095 26,362 Commercial and Industrial 39 — 124 163 30,838 31,001 Consumer Loans 48 5 — 53 5,570 5,623 Total $ 2,767 $ 395 $ 4,447 $ 7,609 $ 308,932 $ 316,541 Loans Past Due and Nonaccruals December 31, 2014 30-89 90 Days or Nonaccruals Total Past Current Total 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 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 For the Three Months Ended June 30, 2015 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,763 $ 315 $ 169 $ 3,247 (Charge-offs) — — (54 ) (54 ) Recoveries 5 — 36 41 Provision 121 105 (21 ) 205 Ending Balance $ 2,889 $ 420 $ 130 $ 3,439 Individually evaluated for impairment $ 801 $ 122 $ — $ 923 Collectively evaluated for impairment 2,088 298 130 2,516 Mortgage Commercial Consumer Total For the Three Months Ended June 30, 2014 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,497 $ 248 $ 205 $ 2,950 (Charge-offs) (75 ) — (12 ) (87 ) Recoveries 8 — 5 13 Provision 159 (37 ) (25 ) 97 Ending Balance $ 2,589 $ 211 $ 173 $ 2,973 Individually evaluated for impairment $ 724 $ — $ 32 $ 756 Collectively evaluated for impairment 1,865 211 141 2,217 (Dollars in thousands) Mortgage Commercial Consumer Total For the Six Months Ended June 30, 2015 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,778 $ 323 $ 104 $ 3,205 (Charge-offs) (1 ) — (86 ) (87 ) Recoveries 10 — 41 51 Provision 102 97 71 270 Ending Balance $ 2,889 $ 420 $ 130 $ 3,439 Mortgage Commercial Consumer Total For the Six Months Ended June 30, 2014 ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,465 $ 256 $ 204 $ 2,925 (Charge-offs) (214 ) — (21 ) (235 ) Recoveries 14 — 7 21 Provision 324 (45 ) (17 ) 262 Ending Balance $ 2,589 $ 211 $ 173 $ 2,973 |
Loan Receivables Evaluated for Impairment Individually and Collectively by Segment | Loan receivables evaluated for impairment individually and collectively by segment as of June 30, 2015 and December 31, 2014 are as follows: (Dollars in thousands) As of June 30, 2015 Mortgage Commercial Consumer Total Individually evaluated for impairment $ 9,645 $ 122 $ 3 $ 9,770 Collectively evaluated for impairment 270,272 30,879 5,620 306,771 Total Gross Loans $ 279,917 $ 31,001 $ 5,623 $ 316,541 As of December 31, 2014 Mortgage Commercial Consumer 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 |
Internal Risk Rating Grades are Assigned to Commercial Loans Not Secured | Internal risk rating grades are generally assigned to commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250,000 with chronic delinquency, and TDRs, as shown in the following table. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades (refer to Note 2) are evaluated as new information becomes available for each borrowing relationship or at least quarterly. (Dollars in thousands) As of June 30, 2015 Construction, Farmland Commercial (Non-Owner Commercial Commercial Total Grade: Pass $ 36,215 $ 1,080 $ 18,546 $ 27,518 $ 29,267 $ 112,626 Watch 5,497 — 1,703 3,299 1,228 11,727 Special mention 1,102 — — 3,484 273 4,859 Substandard 1,080 — 1,669 2,140 233 5,122 Doubtful — — — — — — Total $ 43,894 $ 1,080 $ 21,918 $ 36,441 $ 31,001 $ 134,334 As of December 31, 2014 Construction, Farmland Commercial (Non-Owner Commercial Commercial 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 |
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 As of June 30, 2015 PAYMENT ACTIVITY STATUS Residential Revolving Consumer Total Performing $ 148,999 $ 26,247 $ 5,618 $ 180,864 Nonperforming 1,223 115 5 1,343 Total $ 150,222 $ 26,362 $ 5,623 $ 182,207 As of December 31, 2014 PAYMENT ACTIVITY STATUS Residential Residential Consumer Total Performing $ 134,908 $ 25,369 $ 5,234 $ 165,511 Nonperforming 359 31 115 505 Total $ 135,267 $ 25,400 $ 5,349 $ 166,016 (1) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $1.9 million as of June 30, 2015. (2) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $216 thousand as of June 30, 2015. (3) Consumer Loans which have been assigned a risk rating grade of Substandard were zero as of June 30, 2015. (4) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.1 million as of December 31, 2014. (5) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $219 thousand as of December 31, 2014. (6) Consumer Loans which have been assigned a risk rating grade of Substandard totaled $1 thousand as of December 31, 2014. |
Company's Recorded Investment and Customers Unpaid Principal Balances for Impaired Loans, with Associated Allowance Amount | The following tables show the Company’s recorded investment and the customers’ unpaid principal balances for impaired loans, with the associated allowance amount, if applicable, as of June 30, 2015 and December 31, 2014, along with the average recorded investment and interest income recognized for the three and six months ended June 30, 2015 and 2014, respectively. (Dollars in thousands) As of June 30, 2015 As of December 31, 2014 IMPAIRED LOANS Recorded Customers’ Unpaid Related Recorded Customers’ Unpaid Related With no related allowance: Construction, land and land development $ 448 $ 452 $ — $ 450 $ 452 $ — Residential First Mortgages 1,957 1,981 — 1,568 1,584 — Residential Revolving and Junior Mortgages (1) 50 50 — 50 50 — Commercial Mortgages (Non-owner occupied) 1,309 1,309 — 264 264 — Commercial Mortgages (Owner occupied) 1,936 1,969 — 1,887 1,916 — Commercial and Industrial — — — — — — Consumer (2) 3 3 — 5 5 — 5,703 5,764 — 4,224 4,271 — With an allowance recorded: Construction, land and land development 270 292 128 277 292 144 Residential First Mortgages 2,154 2,154 356 2,173 2,173 437 Residential Revolving and Junior Mortgages (1) 173 173 83 173 173 84 Commercial Mortgages (Non-owner occupied) — — — — — — Commercial Mortgages (Owner occupied) 1,348 1,356 234 — — — Commercial and Industrial 122 122 122 — — — Consumer (2) — — — 11 11 11 4,067 4,097 923 2,634 2,649 676 Total Impaired Loans: Construction, land and land development 718 744 128 727 744 144 Residential First Mortgages 4,111 4,135 356 3,741 3,757 437 Residential Revolving and Junior Mortgages (1) 223 223 83 223 223 84 Commercial Mortgages (Non-owner occupied) 1,309 1,309 — 264 264 — Commercial Mortgages (Owner occupied) 3,284 3,325 234 1,887 1,916 — Commercial and Industrial 122 122 122 — — — Consumer (2) 3 3 — 16 16 11 $ 9,770 $ 9,861 $ 923 $ 6,858 $ 6,920 $ 676 (1) Junior mortgages include equity lines. (2) Includes credit cards. For the three months ended For the three months ended June 30, 2015 June 30, 2014 (Dollars in thousands) Average Interest Average Interest With no related allowance: Construction, land and land development $ 449 $ — $ 451 $ 1 Residential First Mortgages 1,761 18 1,042 10 Residential Revolving and Junior Mortgages (1) 50 1 — — Commercial Mortgages (Non-owner occupied) 786 14 264 4 Commercial Mortgages (Owner occupied) 1,552 18 1,917 20 Commercial and Industrial — — — — Consumer (2) 4 — — — 4,602 51 3,674 35 With an allowance recorded: Construction, land and land development 272 1 288 1 Residential First Mortgages 2,160 26 2,186 26 Residential Revolving and Junior Mortgages (1) 173 2 174 2 Commercial Mortgages (Non-owner occupied) — — — — Commercial Mortgages (Owner occupied) 1,026 8 — — Commercial and Industrial 123 — — — Consumer (2) — — 38 1 3,754 37 2,686 30 Total Construction, land and land development 721 1 739 2 Residential First Mortgages 3,921 44 3,228 36 Residential Revolving and Junior Mortgages (1) 223 3 174 2 Commercial Mortgages (Non-owner occupied) 786 14 264 4 Commercial Mortgages (Owner occupied) 2,578 26 1,917 20 Commercial and Industrial 123 — — — Consumer (2) 4 — 38 1 $ 8,356 $ 88 $ 6,360 $ 65 (1) Junior mortgages include equity lines. (2) Includes credit cards. For the six months ended For the six months ended (Dollars in thousands) Average Interest Average Interest With no related allowance: Construction, land and land development $ 449 $ — $ 452 $ 2 Residential First Mortgages 1,696 36 1,046 21 Residential Revolving and Junior Mortgages (1) 50 2 — — Commercial Mortgages (Non-owner occupied) 612 18 264 8 Commercial Mortgages (Owner occupied) 1,429 27 1,924 42 Commercial and Industrial — — — — Consumer (2) 4 — — — 4,240 83 3,686 73 With an allowance recorded: Construction, land and land development 274 2 242 1 Residential First Mortgages 2,164 52 2,190 47 Residential Revolving and Junior Mortgages (1) 173 4 174 4 Commercial Mortgages (Non-owner occupied) — — — — Commercial Mortgages (Owner occupied) 919 12 — — Commercial and Industrial 82 — — — Consumer (2) — — 38 2 3,612 70 2,644 54 Total Construction, land and land development 723 2 694 3 Residential First Mortgages 3,860 88 3,236 68 Residential Revolving and Junior Mortgages (1) 223 6 174 4 Commercial Mortgages (Non-owner occupied) 612 18 264 8 Commercial Mortgages (Owner occupied) 2,348 39 1,924 42 Commercial and Industrial 82 — — — Consumer (2) 4 — 38 2 $ 7,852 $ 153 $ 6,330 $ 127 (1) Junior mortgages include equity lines. (2) Includes credit cards. |
Summary of Troubled Debt Restructurings | The following table presents, by segments of loans, information related to loans modified as TDRs during the three and six months ended June 30, 2015 and 2014. For the three months ended For the three months ended June 30, 2015 June 30, 2014 (Dollars in thousands) TROUBLED DEBT RESTRUCTURINGS Number of Pre-Modification Post-Modification Number of Pre-Modification Post-Modification Construction, land and land development (1) — $ — $ — 2 $ 282 $ 282 (1) Modifications were an extension of loan terms. For the six months ended For the six months ended June 30, 2015 June 30, 2014 (Dollars in thousands) TROUBLED DEBT RESTRUCTURINGS Number of Pre-Modification Post-Modification Number of Pre-Modification Post-Modification Construction, land and land development (1) — $ — $ — 2 $ 282 $ 282 Commercial mortgages (Owner occupied) (2) 1 105 124 — — — (1) Modifications were an extension of loan terms. (2) Modifications were capitalization of interest. (Dollars in thousands) For the three months ended For the three months ended TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED Number of Recorded Number of Recorded Residential revolving and junior mortgages — $ — 1 $ 75 (Dollars in thousands) For the six months ended For the six months ended TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED Number of Recorded Number of Recorded Residential revolving and junior mortgages — $ — 1 $ 75 Commercial mortgages (Owner occupied) 1 124 — — |
Summary of Properties Included in Other Real Estate Owned (OREO) | The table below details the properties included in other real estate owned (“OREO”) as of June 30, 2015 and December 31, 2014. There was one collateralized consumer residential mortgage loan with a balance of $28 thousand in the process of foreclosure as of June 30, 2015. The property was foreclosed on August 3, 2015. As of June 30, 2015 As of December 31, 2014 (Dollars in thousands) No. of Carrying No. of Carrying Residential 7 $ 1,407 10 $ 1,559 Land lots 7 442 13 587 Convenience stores 2 234 2 234 Restaurant 1 107 1 107 Commercial properties 2 434 1 304 Total 19 $ 2,624 27 $ 2,791 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Weighted Average Number of Shares Used in Computing Earnings per Share | The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of dilutive potential common stock. For the three months ended For the six months ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Average Per share Average Per share Average Per share Average Per share Basic earnings per share 4,802,032 $ 0.06 4,818,733 $ 0.05 4,805,922 $ 0.14 4,818,311 $ 0.15 Effect of dilutive securities: Stock options 17,290 18,050 13,565 14,105 Diluted earnings per share 4,819,322 $ 0.06 4,836,783 $ 0.05 4,819,487 $ 0.14 4,832,416 $ 0.15 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value of Options | The variables used in these calculations of the fair value of the options are as follows: For the six months ended June 30, 2015 2014 Risk free interest rate (5 year Treasury) 1.52 % 2.70 % Expected dividend yield 0.0 % 0.0 % Expected term (years) 5 5 Expected volatility 47.1 % 51.4 % |
Summary of Stock Option Activity | Stock option activity for the six months ended June 30, 2015 (unaudited) is summarized below: Shares Weighted Average Weighted Aggregate Options outstanding, January 1, 2015 190,419 $ 7.02 6.2 Granted 7,500 5.37 Forfeited — — Exercised — — Expired (7,734 ) 14.43 Options outstanding and exercisable, June 30, 2015 190,185 $ 6.66 6.1 $ 94,373 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on June 30, 2015. This amount changes based on changes in the market value of the Company’s common stock. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Components of Net Periodic (Benefit) Cost | Components of Net Periodic (Benefit) Cost (Dollars in thousands) Pension Benefits Post-Retirement Benefits Six months ended June 30, 2015 2014 2015 2014 Service cost $ — $ — $ 11 $ 8 Interest cost 66 71 15 15 Expected return on plan assets (99 ) (101 ) — — Amortization of unrecognized net loss — 19 — — Recognized net actuarial loss 37 — — — Net periodic (benefit) cost $ 4 $ (11 ) $ 26 $ 23 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Advances of Long Term Debt | The five advances are shown in the following table. Description Balance Originated Current Maturity Adjustable Rate Hybrid $ 10,000,000 4/12/2013 2.65590 % 4/13/2020 Fixed Rate Credit 5,000,000 10/20/2014 0.47000 % 4/20/2016 Fixed Rate Credit 5,000,000 10/20/2014 0.30000 % 10/20/2015 Fixed Rate Credit 5,000,000 5/20/2015 0.37000 % 2/22/2016 Adjustable Rate Credit 5,000,000 6/18/2015 0.30080 % 9/19/2016 $ 30,000,000 |
Subordinated Debt | (Dollars in thousands) Balance as of 6.5% Subordinated Debt $ 7,000 Less: Issuance costs (159 ) $ 6,841 |
Regulatory Capital Requiremen29
Regulatory Capital Requirements and Restrictions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Bank's Actual Capital Amounts and Ratios | The Company’s and the Bank’s actual capital amounts and ratios as of June 30, 2015 and December 31, 2014, are presented in the following tables: Actual Minimum Minimum (Dollars in Thousands) Amount Ratio Amount Ratio Amount Ratio As of June 30, 2015: Total Risk Based Capital (to Risk Weighted Assets) Consolidated $ 49,097 16.90 % $ 23,242 8.00 % N/A N/A Bank of Lancaster 40,498 14.08 % 23,010 8.00 % $ 28,763 10 % Tier 1 Capital (to Risk Weighted Assets) Consolidated 38,817 13.36 % 11,621 6.00 % N/A N/A Bank of Lancaster 37,059 12.88 % 11,505 6.00 % $ 17,258 6 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated 38,817 13.36 % 11,621 4.50 % N/A N/A Bank of Lancaster 37,059 12.88 % 11,505 4.50 % $ 14,381 5 % Tier 1 Capital (to Average Assets) Consolidated 38,817 9.52 % 16,307 4.00 % N/A N/A Bank of Lancaster 37,059 9.17 % 16,162 4.00 % $ 20,203 5 % Actual Minimum Minimum (Amounts 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 8.00 % N/A N/A Bank of Lancaster 36,446 13.30 % 21,927 8.00 % $ 27,409 10 % Tier 1 Capital (to Risk Weighted Assets) Consolidated 38,240 13.86 % 11,037 4.00 % N/A N/A Bank of Lancaster 33,241 12.13 % 10,964 4.00 % $ 16,445 6 % Tier 1 Capital (to Average Assets) Consolidated 38,240 10.36 % 14,770 4.00 % N/A N/A Bank of Lancaster 33,241 9.07 % 14,664 4.00 % $ 18,329 5 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014: (Dollars in thousands) Fair Value Measurements at June 30, 2015 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 200 $ — $ — $ 200 U. S. Government agencies 21,373 1,366 20,007 — State and municipal obligations 23,241 — 23,241 — Certificates of deposit 2,242 — 2,242 — Total securities available-for-sale: $ 47,056 $ 1,366 $ 45,490 $ 200 Mortgage servicing rights $ 632 $ — $ — $ 632 Defined benefit plan assets: Cash and cash equivalents $ 3 $ 3 $ — $ — Mutual funds - fixed income 1,178 1,178 — — Mutual funds - equity 1,751 1,751 — — Total defined benefit plan assets $ 2,932 $ 2,932 $ — $ — 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 $ — $ — |
Reconciliation of Items Using Level Three Inputs | The reconciliation of items using Level 3 inputs is as follows: (Dollars in thousands) MSRs Corporate Balance, January 1, 2015 $ 596 $ — Purchases — 200 Impairments — — Fair value adjustments 36 — Sales — — Balance, June 30, 2015 $ 632 $ 200 |
Summary of Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at the end of the respective period. Fair Value Measurements at June 30, 2015 Using (Dollars in thousands) Description Balance as of Level 1 Level 2 Level 3 Impaired Loans, net $ 3,144 $ — $ — $ 3,144 Other real estate owned, net 2,624 — — 2,624 Fair Value Measurements at December 31, 2014 Using Description Balance as of Level 1 Level 2 Level 3 Impaired Loans, net $ 1,958 $ — $ — $ 1,958 Other real estate owned, net 2,791 — — 2,791 |
Summary of Quantitative Fair Value Measurements for Level 3 | The following table displays quantitative information about Level 3 Fair Value Measurements as of June 30, 2015: (Dollars in thousands) Balance as of Valuation Unobservable Range Impaired Loans, net $ 3,144 Discounted appraised value Selling Cost 10% - 25% (13%) Lack of Marketability 25% - 75 (52%) Other real estate owned, net 2,624 Discounted appraised value Selling Cost 3% - 13% (5%) Lack of Marketability 7% - 20% (10%) 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 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%) |
Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments are shown in the following table. The carrying amounts in the table are included in the balance sheet under the applicable captions. Fair Value Measurements at June 30, 2015 Using (Dollars in thousands) Description Balance as of Fair Value as of Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 5,880 $ 5,880 $ 5,880 $ — $ — Interest-bearing deposits 20,605 20,605 20,605 — — Federal funds sold 2,187 2,187 2,187 — — Securities available-for-sale 47,056 47,056 1,366 45,490 200 Restricted securities 2,261 2,261 — — 2,261 Loans, net 313,442 319,343 — — 319,343 Loans held for sale 709 709 — — 709 Accrued interest receivable 1,237 1,237 — 1,237 — Mortgage servicing rights 632 632 — — 632 Financial Liabilities: Non-interest-bearing liabilities $ 61,073 $ 61,073 $ 61,073 $ — $ — Savings and other interest-bearing deposits 152,794 152,503 — 152,503 — Time deposits 119,734 121,026 — — 121,026 Securities sold under repurchase agreements 8,787 8,787 — 8,787 — FHLB advances 30,000 30,911 — 30,911 — Subordinated debt 6,841 7,000 — — 7,000 Accrued interest payable 201 201 — 201 — Fair Value Measurements at December 31, 2014 Using (Dollars in thousands) Description Balance as of Fair Value as of Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 6,181 $ 6,181 $ 6,181 $ — $ — Interest-bearing deposits 14,784 14,784 14,784 — — Federal funds sold 119 119 119 — — Securities available-for-sale 42,604 42,604 845 41,759 — Restricted securities 2,430 2,430 — — 2,430 Loans, net 295,242 300,481 — — 300,481 Accrued interest receivable 1,197 1,197 — 1,197 — Mortgage servicing rights 596 596 — — 596 Financial Liabilities: Non-interest-bearing liabilities $ 63,308 $ 63,308 $ 63,308 $ — $ — Savings and other interest-bearing deposits 122,502 122,502 — 122,502 — Time deposits 121,775 122,662 — — 122,662 Securities sold under repurchase agreements 6,012 6,012 — 6,012 — FHLB advances 35,000 35,951 — 35,951 — Accrued interest payable 149 149 — 149 — |
Changes in Accumulated Other 31
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Balances in Accumulated Other Comprehensive Income (Loss) | The balances in accumulated other comprehensive income (loss) are shown in the following tables: For the Three Months Ended June 30, 2015 (Dollars in thousands) Net Unrealized Pension and Post-retirement Accumulated Other Balance April 1, 2015 $ 246 $ (966 ) $ (720 ) Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $192 (372 ) — (372 ) Reclassification for previously unrealized net gains recognized in income, net of tax expense of $2 (4 ) — (4 ) Balance June 30, 2015 $ (130 ) $ (966 ) $ (1,096 ) For the Three Months Ended June 30, 2014 (Dollars in thousands) Net Unrealized Pension and Post-retirement Accumulated Other Balance April 1, 2014 $ (468 ) $ (382 ) $ (850 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $112 223 — 223 Reclassification for previously unrealized net losses recognized in income, net of tax benefit of $6 10 — 10 Balance June 30, 2014 $ (235 ) $ (382 ) $ (617 ) For the Six Months Ended June 30, 2015 (Dollars in thousands) Net Unrealized Pension and Post-retirement Accumulated Other Balance January 1, 2015 $ 45 $ (966 ) $ (921 ) Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $90 (174 ) — (174 ) Reclassification for previously unrealized net gains recognized in income, net of tax expense of $1 (1 ) — (1 ) Balance June 30, 2015 $ (130 ) $ (966 ) $ (1,096 ) For the Six Months Ended June 30, 2014 (Dollars in thousands) Net Unrealized Pension and Post-retirement Accumulated Other Balance January 1, 2014 $ (791 ) $ (382 ) $ (1,173 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $280 545 — 545 Reclassification for previously unrealized net losses recognized in income, net of tax benefit of $6 11 — 11 Balance June 30, 2014 $ (235 ) $ (382 ) $ (617 ) |
Reclassification of Unrealized (Losses) Gains and Impairments on Securities | Reclassification for previously unrealized (losses) gains and impairments on securities are reported in the Consolidated Statements of Income as follows. No unrealized gains (losses) on pension and post-employment related costs were reclassified to the Consolidated Statements of Income in the three and six months ended June 30, 2015 and 2014. Accumulated Other Comprehensive Income (Loss) Reclassification for the Three Months Ended Holding Losses on Securities (In thousands) June 30, 2015 June 30, 2014 Net gains (losses) on sale of securities available-for-securities $ 6 $ (16 ) Tax (expense) benefit (2 ) 6 Impact on net income $ 4 $ (10 ) Accumulated Other Comprehensive Income (Loss) Reclassification for the Six Months Ended Holding Losses on Securities (In thousands) June 30, 2015 June 30, 2014 Net gains (losses) on sale of securities available-for-securities $ 2 $ (17 ) Tax (expense) benefit (1 ) 6 Impact on net income $ 1 $ (11 ) |
General - Additional Informatio
General - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
Bank Of Lancaster | |
Organization Presentation And General [Line Items] | |
Percent of ownership | 100.00% |
Bay Trust Company | |
Organization Presentation And General [Line Items] | |
Percent of ownership | 100.00% |
Steptoes Holdings | |
Organization Presentation And General [Line Items] | |
Percent of ownership | 100.00% |
Significant Accounting Polici33
Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2013Quarter | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Significant Accounting Policies [Line Items] | |||
Credit card and other personal loans charged off period no later than period | 180 days | ||
Number of Quarters | Quarter | 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 (“TDRs”). | ||
Loan Receivables | $ 134,334,000 | $ 132,038,000 | |
Special Mention | |||
Significant Accounting Policies [Line Items] | |||
Loan Receivables | $ 4,859,000 | $ 4,346,000 | |
Loan due days | 30 days | ||
Residential First Mortgages | |||
Significant Accounting Policies [Line Items] | |||
Minimum balance in order to assign a risk rating grade | $ 1,000,000 | ||
Consumer Loans | |||
Significant Accounting Policies [Line Items] | |||
Minimum balance in order to assign a risk rating grade | $ 250,000 | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Number of days past due for a loan to remain on accrual status | 90 days | ||
Minimum | Non-accruing Special mention, Substandard and Doubtful loans | |||
Significant Accounting Policies [Line Items] | |||
Loan Receivables | $ 250,000 | ||
Minimum | Substandard and Doubtful loans | |||
Significant Accounting Policies [Line Items] | |||
Loan Receivables | 500,000 | ||
Minimum | Special Mention | |||
Significant Accounting Policies [Line Items] | |||
Loan Receivables | $ 500,000 |
Securities - Aggregate Amortize
Securities - Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities Portfolio (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 47,254 | $ 42,536 | |
Gross Unrealized Gains | 177 | 267 | |
Gross Unrealized (Losses) | (375) | (199) | |
Fair Value | 47,056 | 42,604 | [1] |
Certificates of Deposit | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 2,232 | 2,232 | |
Gross Unrealized Gains | 10 | 8 | |
Gross Unrealized (Losses) | (2) | ||
Fair Value | 2,242 | 2,238 | |
US Government Agencies | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 21,375 | 16,969 | |
Gross Unrealized Gains | 67 | 33 | |
Gross Unrealized (Losses) | (69) | (37) | |
Fair Value | 21,373 | 16,965 | |
State and Municipal Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 23,447 | 23,335 | |
Gross Unrealized Gains | 100 | 226 | |
Gross Unrealized (Losses) | (306) | (160) | |
Fair Value | 23,241 | $ 23,401 | |
Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 200 | ||
Fair Value | $ 200 | ||
[1] | Derived from the audited consolidated financial statements. |
Securities - Gross Realized Gai
Securities - Gross Realized Gains and Gross Realized Losses on Sales of Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross realized gains | $ 24 | $ 5 | $ 24 | $ 5 |
Gross realized losses | (18) | (21) | (22) | (22) |
Net realized gains (losses) | 6 | (16) | 2 | (17) |
Aggregate proceeds | $ 1,710 | $ 2,039 | $ 2,324 | $ 3,331 |
Securities - Additional Informa
Securities - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($)Bond | Jun. 30, 2014 | Jun. 30, 2015USD ($)Bond | Jun. 30, 2014 | Dec. 31, 2014USD ($)Bond | ||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Average yields (taxable equivalent) on securities | 2.41% | 2.36% | 2.40% | 2.37% | ||
Market value of securities | $ 11,900 | $ 11,900 | $ 8,500 | |||
Securities sold under repurchase agreements | 8,787 | 8,787 | 6,012 | [1] | ||
Company's investment in Federal Home Loan Bank stock | 1,600 | 1,600 | 1,900 | |||
Company's investment in Federal Reserve Bank stock | $ 460 | $ 460 | $ 382 | |||
Municipal Securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Bonds with unrealized loss positions | Bond | 41 | 41 | 29 | |||
US Government Agencies | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Bonds with unrealized loss positions | Bond | 13 | 13 | 13 | |||
Certificates of Deposit | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Bonds with unrealized loss positions | Bond | 3 | |||||
[1] | Derived from the audited consolidated financial statements. |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Positions (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 13,535 | $ 2,653 |
Less than 12 months, Unrealized Loss | 194 | 11 |
12 months or more, Fair Value | 5,243 | 12,538 |
12 months or more, Unrealized Loss | 181 | 188 |
Fair Value, Total | 18,778 | 15,191 |
Total Unrealized Loss | 375 | 199 |
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 | 5,297 | 1,499 |
Less than 12 months, Unrealized Loss | 51 | 4 |
12 months or more, Fair Value | 1,871 | 3,532 |
12 months or more, Unrealized Loss | 18 | 33 |
Fair Value, Total | 7,168 | 5,031 |
Total Unrealized Loss | 69 | 37 |
State and Municipal Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 8,238 | 412 |
Less than 12 months, Unrealized Loss | 143 | 5 |
12 months or more, Fair Value | 3,372 | 9,006 |
12 months or more, Unrealized Loss | 163 | 155 |
Fair Value, Total | 11,610 | 9,418 |
Total Unrealized Loss | $ 306 | $ 160 |
Loans - Summary of Balances of
Loans - Summary of Balances of Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Summary of balances of loans | |||
Total loans | $ 316,541 | $ 298,054 | |
Net unamortized deferred loans costs | 340 | 393 | |
Allowance for loan losses | (3,439) | (3,205) | [1] |
Loans, net | 313,442 | 295,242 | [1] |
Construction, Land and Land Development | |||
Summary of balances of loans | |||
Total loans | 43,894 | 43,048 | |
Farmland | |||
Summary of balances of loans | |||
Total loans | 1,080 | 1,128 | |
Commercial Mortgages (Non-Owner Occupied) | |||
Summary of balances of loans | |||
Total loans | 21,918 | 20,534 | |
Commercial Mortgages (Owner Occupied) | |||
Summary of balances of loans | |||
Total loans | 36,441 | 33,326 | |
Residential First Mortgages | |||
Summary of balances of loans | |||
Total loans | 150,222 | 135,267 | |
Residential Revolving and Junior Mortgages | |||
Summary of balances of loans | |||
Total loans | 26,362 | 25,400 | |
Commercial and Industrial | |||
Summary of balances of loans | |||
Total loans | 31,001 | 34,002 | |
Consumer and Other Loans | |||
Summary of balances of loans | |||
Total loans | $ 5,623 | $ 5,349 | |
[1] | Derived from the audited consolidated financial statements. |
Loans - Additional Informations
Loans - Additional Informations (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
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
Loans - Recorded Investment in Past Due and Non-accruing Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | $ 2,767 | $ 1,502 |
90 Days or More Past Due and Still Accruing | 395 | 14 |
Nonaccruals | 4,447 | 1,954 |
Total Past Due and Nonaccruals | 7,609 | 3,470 |
Current | 308,932 | 294,584 |
Total Gross Loans | 316,541 | 298,054 |
Construction, Land and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 47 | 64 |
90 Days or More Past Due and Still Accruing | 67 | |
Nonaccruals | 768 | 669 |
Total Past Due and Nonaccruals | 882 | 733 |
Current | 43,012 | 42,315 |
Total Gross Loans | 43,894 | 43,048 |
Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 1,080 | 1,128 |
Total Gross Loans | 1,080 | 1,128 |
Commercial Mortgages (Non-Owner Occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccruals | 1,045 | |
Total Past Due and Nonaccruals | 1,045 | |
Current | 20,873 | 20,534 |
Total Gross Loans | 21,918 | 20,534 |
Commercial Mortgages (Owner Occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 1,098 | |
Nonaccruals | 1,495 | 566 |
Total Past Due and Nonaccruals | 2,593 | 566 |
Current | 33,848 | 32,760 |
Total Gross Loans | 36,441 | 33,326 |
Residential First Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 1,383 | 1,270 |
90 Days or More Past Due and Still Accruing | 323 | |
Nonaccruals | 900 | 359 |
Total Past Due and Nonaccruals | 2,606 | 1,629 |
Current | 147,616 | 133,638 |
Total Gross Loans | 150,222 | 135,267 |
Residential Revolving and Junior Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 152 | 6 |
Nonaccruals | 115 | 31 |
Total Past Due and Nonaccruals | 267 | 37 |
Current | 26,095 | 25,363 |
Total Gross Loans | 26,362 | 25,400 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 39 | 96 |
Nonaccruals | 124 | 228 |
Total Past Due and Nonaccruals | 163 | 324 |
Current | 30,838 | 33,678 |
Total Gross Loans | 31,001 | 34,002 |
Consumer and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 48 | 66 |
90 Days or More Past Due and Still Accruing | 5 | 14 |
Nonaccruals | 101 | |
Total Past Due and Nonaccruals | 53 | 181 |
Current | 5,570 | 5,168 |
Total Gross Loans | $ 5,623 | $ 5,349 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
ALLOWANCE FOR LOAN LOSSES: | ||||
Beginning Balance | $ 3,247 | $ 2,950 | $ 3,205 | $ 2,925 |
(Charge-offs) | (54) | (87) | (87) | (235) |
Recoveries | 41 | 13 | 51 | 21 |
Provision | 205 | 97 | 270 | 262 |
Ending Balance | 3,439 | 2,973 | 3,439 | 2,973 |
Individually evaluated for impairment | 923 | 756 | 923 | 756 |
Collectively evaluated for impairment | 2,516 | 2,217 | 2,516 | 2,217 |
Mortgage Loans on Real Estate | ||||
ALLOWANCE FOR LOAN LOSSES: | ||||
Beginning Balance | 2,763 | 2,497 | 2,778 | 2,465 |
(Charge-offs) | (75) | (1) | (214) | |
Recoveries | 5 | 8 | 10 | 14 |
Provision | 121 | 159 | 102 | 324 |
Ending Balance | 2,889 | 2,589 | 2,889 | 2,589 |
Individually evaluated for impairment | 801 | 724 | 801 | 724 |
Collectively evaluated for impairment | 2,088 | 1,865 | 2,088 | 1,865 |
Commercial and Industrial | ||||
ALLOWANCE FOR LOAN LOSSES: | ||||
Beginning Balance | 315 | 248 | 323 | 256 |
Provision | 105 | (37) | 97 | (45) |
Ending Balance | 420 | 211 | 420 | 211 |
Individually evaluated for impairment | 122 | 122 | ||
Collectively evaluated for impairment | 298 | 211 | 298 | 211 |
Consumer and Other Loans | ||||
ALLOWANCE FOR LOAN LOSSES: | ||||
Beginning Balance | 169 | 205 | 104 | 204 |
(Charge-offs) | (54) | (12) | (86) | (21) |
Recoveries | 36 | 5 | 41 | 7 |
Provision | (21) | (25) | 71 | (17) |
Ending Balance | 130 | 173 | 130 | 173 |
Individually evaluated for impairment | 32 | 32 | ||
Collectively evaluated for impairment | $ 130 | $ 141 | $ 130 | $ 141 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loan Receivables Evaluated for Impairment Individually and Collectively by Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 9,770 | $ 6,858 |
Collectively evaluated for impairment | 306,771 | 291,196 |
Total Gross Loans | 316,541 | 298,054 |
Mortgage Loans on Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 9,645 | 6,842 |
Collectively evaluated for impairment | 270,272 | 251,861 |
Total Gross Loans | 279,917 | 258,703 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 122 | |
Collectively evaluated for impairment | 30,879 | 34,002 |
Total Gross Loans | 31,001 | 34,002 |
Consumer and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 3 | 16 |
Collectively evaluated for impairment | 5,620 | 5,333 |
Total Gross Loans | $ 5,623 | $ 5,349 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($)Property | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Property | Jun. 30, 2014USD ($) | Apr. 30, 2015USD ($) | Dec. 31, 2014USD ($)Property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Period of nonperforming loans | 90 days | |||||
Non-accruing loans excluded from impaired loan | $ 591,000 | $ 591,000 | $ 663,000 | |||
Non-accruing loans accrued interest | $ 4,000 | $ 6,000 | $ 8,000 | $ 13,000 | ||
No. of Properties | Property | 19 | 19 | 27 | |||
Other Assets | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Properties marketed for sale | $ 398,000 | |||||
No. of Properties | Property | 2 | 2 | ||||
Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Residential properties collateralized with loan | Property | 1 | |||||
Residential mortgage loan amount | $ 28,000 | $ 28,000 | ||||
Residential | Other Assets | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Properties marketed for sale | 724,000 | 724,000 | $ 771,000 | |||
Residential First Mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Minimum balance in order to assign a risk rating grade | 1,000,000 | 1,000,000 | ||||
Consumer and Other Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Minimum balance in order to assign a risk rating grade | $ 250,000 | $ 250,000 |
Allowance for Loan Losses - Int
Allowance for Loan Losses - Internal Risk Rating Grades (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
INTERNAL RISK RATING GRADES | ||
Loan Receivables | $ 134,334 | $ 132,038 |
Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 112,626 | 107,475 |
Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 11,727 | 16,341 |
Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 4,859 | 4,346 |
Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 5,122 | 3,876 |
Construction, Land and Land Development | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 43,894 | 43,048 |
Construction, Land and Land Development | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 36,215 | 34,913 |
Construction, Land and Land Development | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 5,497 | 5,649 |
Construction, Land and Land Development | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,102 | 1,403 |
Construction, Land and Land Development | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,080 | 1,083 |
Farmland | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,080 | 1,128 |
Farmland | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,080 | 1,128 |
Commercial Mortgages (Non-Owner Occupied) | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 21,918 | 20,534 |
Commercial Mortgages (Non-Owner Occupied) | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 18,546 | 16,426 |
Commercial Mortgages (Non-Owner Occupied) | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,703 | 3,770 |
Commercial Mortgages (Non-Owner Occupied) | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,669 | 338 |
Commercial Mortgages (Owner Occupied) | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 36,441 | 33,326 |
Commercial Mortgages (Owner Occupied) | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 27,518 | 23,967 |
Commercial Mortgages (Owner Occupied) | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 3,299 | 4,430 |
Commercial Mortgages (Owner Occupied) | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 3,484 | 2,789 |
Commercial Mortgages (Owner Occupied) | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,140 | 2,140 |
Commercial and Industrial | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 31,001 | 34,002 |
Commercial and Industrial | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 29,267 | 31,041 |
Commercial and Industrial | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,228 | 2,492 |
Commercial and Industrial | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 273 | 154 |
Commercial and Industrial | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | $ 233 | $ 315 |
Allowance for Loan Losses - Per
Allowance for Loan Losses - Performing and Non Performing Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | ||
Performing and non performing loans | ||||
Loan receivables | $ 182,207 | $ 166,016 | ||
Performing | ||||
Performing and non performing loans | ||||
Loan receivables | 180,864 | 165,511 | ||
Nonperforming | ||||
Performing and non performing loans | ||||
Loan receivables | 1,343 | 505 | ||
Residential First Mortgages | ||||
Performing and non performing loans | ||||
Loan receivables | 150,222 | [1] | 135,267 | [2] |
Residential First Mortgages | Performing | ||||
Performing and non performing loans | ||||
Loan receivables | 148,999 | [1] | 134,908 | [2] |
Residential First Mortgages | Nonperforming | ||||
Performing and non performing loans | ||||
Loan receivables | 1,223 | [1] | 359 | [2] |
Residential Revolving and Junior Mortgages | ||||
Performing and non performing loans | ||||
Loan receivables | 26,362 | [3] | 25,400 | [4] |
Residential Revolving and Junior Mortgages | Performing | ||||
Performing and non performing loans | ||||
Loan receivables | 26,247 | [3] | 25,369 | [4] |
Residential Revolving and Junior Mortgages | Nonperforming | ||||
Performing and non performing loans | ||||
Loan receivables | 115 | [3] | 31 | [4] |
Consumer and Other Loans | ||||
Performing and non performing loans | ||||
Loan receivables | 5,623 | [5] | 5,349 | [6] |
Consumer and Other Loans | Performing | ||||
Performing and non performing loans | ||||
Loan receivables | 5,618 | [5] | 5,234 | [6] |
Consumer and Other Loans | Nonperforming | ||||
Performing and non performing loans | ||||
Loan receivables | $ 5 | [5] | $ 115 | [6] |
[1] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $1.9 million as of June 30, 2015. | |||
[2] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.1 million as of December 31, 2014. | |||
[3] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $216 thousand as of June 30, 2015. | |||
[4] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $219 thousand as of December 31, 2014. | |||
[5] | Consumer Loans which have been assigned a risk rating grade of Substandard were zero as of June 30, 2015. | |||
[6] | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $1 thousand as of December 31, 2014. |
Allowance for Loan Losses - P46
Allowance for Loan Losses - Performing and Non Performing Loans (Parenthetical) (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | $ 182,207 | $ 166,016 | ||
Residential First Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 150,222 | [1] | 135,267 | [2] |
Residential Revolving and Junior Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 26,362 | [3] | 25,400 | [4] |
Consumer and Other Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 5,623 | [5] | 5,349 | [6] |
Substandard | Residential First Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 1,900 | 2,100 | ||
Substandard | Residential Revolving and Junior Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 216 | 219 | ||
Substandard | Consumer and Other Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | $ 0 | $ 1 | ||
[1] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $1.9 million as of June 30, 2015. | |||
[2] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $2.1 million as of December 31, 2014. | |||
[3] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $216 thousand as of June 30, 2015. | |||
[4] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $219 thousand as of December 31, 2014. | |||
[5] | Consumer Loans which have been assigned a risk rating grade of Substandard were zero as of June 30, 2015. | |||
[6] | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $1 thousand as of December 31, 2014. |
Allowance for Loan Losses - Com
Allowance for Loan Losses - Company's Recorded Investment and Customers' Unpaid Principal Balances for Impaired Loans, with Associated Allowance Amount (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | $ 5,703 | $ 5,703 | $ 4,224 | |||
With no related allowance, Customers' Unpaid Principal Balance | 5,764 | 5,764 | 4,271 | |||
With no related allowance, Related Allowance | 0 | 0 | 0 | |||
With an allowance recorded, Recorded Investment | 4,067 | 4,067 | 2,634 | |||
With an allowance recorded, Customers' Unpaid Principal Balance | 4,097 | 4,097 | 2,649 | |||
With an allowance recorded, Related Allowance | 923 | 923 | 676 | |||
Total Impaired Loans, Recorded Investment | 9,770 | 9,770 | 6,858 | |||
Total Impaired Loans, Customers' Unpaid Principal Balance | 9,861 | 9,861 | 6,920 | |||
Total Impaired Loans, Related Allowance | 923 | 923 | 676 | |||
With no related allowance, Average Recorded Investment | 4,602 | $ 3,674 | 4,240 | $ 3,686 | ||
With no related allowance, Interest Income Recognized | 51 | 35 | 83 | 73 | ||
With an allowance recorded, Average Recorded Investment | 3,754 | 2,686 | 3,612 | 2,644 | ||
With an allowance recorded, Interest Income Recognized | 37 | 30 | 70 | 54 | ||
Total, Average Recorded Investment | 8,356 | 6,360 | 7,852 | 6,330 | ||
Total, Interest Income Recognized | 88 | 65 | 153 | 127 | ||
Construction, Land and Land Development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | 448 | 448 | 450 | |||
With no related allowance, Customers' Unpaid Principal Balance | 452 | 452 | 452 | |||
With no related allowance, Related Allowance | 0 | 0 | 0 | |||
With an allowance recorded, Recorded Investment | 270 | 270 | 277 | |||
With an allowance recorded, Customers' Unpaid Principal Balance | 292 | 292 | 292 | |||
With an allowance recorded, Related Allowance | 128 | 128 | 144 | |||
Total Impaired Loans, Recorded Investment | 718 | 718 | 727 | |||
Total Impaired Loans, Customers' Unpaid Principal Balance | 744 | 744 | 744 | |||
Total Impaired Loans, Related Allowance | 128 | 128 | 144 | |||
With no related allowance, Average Recorded Investment | 449 | 451 | 449 | 452 | ||
With no related allowance, Interest Income Recognized | 1 | 2 | ||||
With an allowance recorded, Average Recorded Investment | 272 | 288 | 274 | 242 | ||
With an allowance recorded, Interest Income Recognized | 1 | 1 | 2 | 1 | ||
Total, Average Recorded Investment | 721 | 739 | 723 | 694 | ||
Total, Interest Income Recognized | 1 | 2 | 2 | 3 | ||
Residential First Mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | 1,957 | 1,957 | 1,568 | |||
With no related allowance, Customers' Unpaid Principal Balance | 1,981 | 1,981 | 1,584 | |||
With no related allowance, Related Allowance | 0 | 0 | 0 | |||
With an allowance recorded, Recorded Investment | 2,154 | 2,154 | 2,173 | |||
With an allowance recorded, Customers' Unpaid Principal Balance | 2,154 | 2,154 | 2,173 | |||
With an allowance recorded, Related Allowance | 356 | 356 | 437 | |||
Total Impaired Loans, Recorded Investment | 4,111 | 4,111 | 3,741 | |||
Total Impaired Loans, Customers' Unpaid Principal Balance | 4,135 | 4,135 | 3,757 | |||
Total Impaired Loans, Related Allowance | 356 | 356 | 437 | |||
With no related allowance, Average Recorded Investment | 1,761 | 1,042 | 1,696 | 1,046 | ||
With no related allowance, Interest Income Recognized | 18 | 10 | 36 | 21 | ||
With an allowance recorded, Average Recorded Investment | 2,160 | 2,186 | 2,164 | 2,190 | ||
With an allowance recorded, Interest Income Recognized | 26 | 26 | 52 | 47 | ||
Total, Average Recorded Investment | 3,921 | 3,228 | 3,860 | 3,236 | ||
Total, Interest Income Recognized | 44 | 36 | 88 | 68 | ||
Residential Revolving and Junior Mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | [1] | 50 | 50 | 50 | ||
With no related allowance, Customers' Unpaid Principal Balance | [1] | 50 | 50 | 50 | ||
With no related allowance, Related Allowance | [1] | 0 | 0 | 0 | ||
With an allowance recorded, Recorded Investment | [1] | 173 | 173 | 173 | ||
With an allowance recorded, Customers' Unpaid Principal Balance | [1] | 173 | 173 | 173 | ||
With an allowance recorded, Related Allowance | [1] | 83 | 83 | 84 | ||
Total Impaired Loans, Recorded Investment | [1] | 223 | 223 | 223 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | [1] | 223 | 223 | 223 | ||
Total Impaired Loans, Related Allowance | [1] | 83 | 83 | 84 | ||
With no related allowance, Average Recorded Investment | [1] | 50 | 50 | |||
With no related allowance, Interest Income Recognized | [1] | 1 | 2 | |||
With an allowance recorded, Average Recorded Investment | [1] | 173 | 174 | 173 | 174 | |
With an allowance recorded, Interest Income Recognized | [1] | 2 | 2 | 4 | 4 | |
Total, Average Recorded Investment | [1] | 223 | 174 | 223 | 174 | |
Total, Interest Income Recognized | [1] | 3 | 2 | 6 | 4 | |
Commercial Mortgages (Non-Owner Occupied) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | 1,309 | 1,309 | 264 | |||
With no related allowance, Customers' Unpaid Principal Balance | 1,309 | 1,309 | 264 | |||
With no related allowance, Related Allowance | 0 | 0 | 0 | |||
Total Impaired Loans, Recorded Investment | 1,309 | 1,309 | 264 | |||
Total Impaired Loans, Customers' Unpaid Principal Balance | 1,309 | 1,309 | 264 | |||
With no related allowance, Average Recorded Investment | 786 | 264 | 612 | 264 | ||
With no related allowance, Interest Income Recognized | 14 | 4 | 18 | 8 | ||
Total, Average Recorded Investment | 786 | 264 | 612 | 264 | ||
Total, Interest Income Recognized | 14 | 4 | 18 | 8 | ||
Commercial Mortgages (Owner Occupied) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | 1,936 | 1,936 | 1,887 | |||
With no related allowance, Customers' Unpaid Principal Balance | 1,969 | 1,969 | 1,916 | |||
With no related allowance, Related Allowance | 0 | 0 | 0 | |||
With an allowance recorded, Recorded Investment | 1,348 | 1,348 | ||||
With an allowance recorded, Customers' Unpaid Principal Balance | 1,356 | 1,356 | ||||
With an allowance recorded, Related Allowance | 234 | 234 | ||||
Total Impaired Loans, Recorded Investment | 3,284 | 3,284 | 1,887 | |||
Total Impaired Loans, Customers' Unpaid Principal Balance | 3,325 | 3,325 | 1,916 | |||
Total Impaired Loans, Related Allowance | 234 | 234 | ||||
With no related allowance, Average Recorded Investment | 1,552 | 1,917 | 1,429 | 1,924 | ||
With no related allowance, Interest Income Recognized | 18 | 20 | 27 | 42 | ||
With an allowance recorded, Average Recorded Investment | 1,026 | 919 | ||||
With an allowance recorded, Interest Income Recognized | 8 | 12 | ||||
Total, Average Recorded Investment | 2,578 | 1,917 | 2,348 | 1,924 | ||
Total, Interest Income Recognized | 26 | 20 | 39 | 42 | ||
Commercial and Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Related Allowance | 0 | 0 | 0 | |||
With an allowance recorded, Recorded Investment | 122 | 122 | ||||
With an allowance recorded, Customers' Unpaid Principal Balance | 122 | 122 | ||||
With an allowance recorded, Related Allowance | 122 | 122 | ||||
Total Impaired Loans, Recorded Investment | 122 | 122 | ||||
Total Impaired Loans, Customers' Unpaid Principal Balance | 122 | 122 | ||||
Total Impaired Loans, Related Allowance | 122 | 122 | ||||
With an allowance recorded, Average Recorded Investment | 123 | 82 | ||||
Total, Average Recorded Investment | 123 | 82 | ||||
Consumer and Other Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | [2] | 3 | 3 | 5 | ||
With no related allowance, Customers' Unpaid Principal Balance | [2] | 3 | 3 | 5 | ||
With no related allowance, Related Allowance | [2] | 0 | 0 | 0 | ||
With an allowance recorded, Recorded Investment | [2] | 11 | ||||
With an allowance recorded, Customers' Unpaid Principal Balance | [2] | 11 | ||||
With an allowance recorded, Related Allowance | [2] | 11 | ||||
Total Impaired Loans, Recorded Investment | [2] | 3 | 3 | 16 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | [2] | 3 | 3 | 16 | ||
Total Impaired Loans, Related Allowance | [2] | $ 11 | ||||
With no related allowance, Average Recorded Investment | [2] | 4 | 4 | |||
With an allowance recorded, Average Recorded Investment | [2] | 38 | 38 | |||
With an allowance recorded, Interest Income Recognized | [2] | 1 | 2 | |||
Total, Average Recorded Investment | [2] | $ 4 | 38 | $ 4 | 38 | |
Total, Interest Income Recognized | [2] | $ 1 | $ 2 | |||
[1] | Junior mortgages include equity lines. | |||||
[2] | Includes credit cards. |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014USD ($)Loan | Jun. 30, 2015USD ($)Loan | Jun. 30, 2014USD ($)Loan | |||
Construction, Land and Land Development | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Loans | Loan | 2 | 2 | [1] | ||
Pre-Modification Outstanding Recorded Investment | $ 282 | $ 282 | [1] | ||
Post-Modification Outstanding Recorded Investment | $ 282 | $ 282 | [1] | ||
Residential Revolving and Junior Mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Subsequently defaulted number of loans | Loan | 1 | 1 | |||
Subsequently defaulted recorded investment | $ 75 | $ 75 | |||
Commercial Mortgages (Owner Occupied) | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Loans | Loan | [2] | 1 | |||
Pre-Modification Outstanding Recorded Investment | [2] | $ 105 | |||
Post-Modification Outstanding Recorded Investment | [2] | $ 124 | |||
Subsequently defaulted number of loans | Loan | 1 | ||||
Subsequently defaulted recorded investment | $ 124 | ||||
[1] | Modifications were an extension of loan terms. | ||||
[2] | Modifications were capitalization of interest. |
Other Real Estate Owned Net - S
Other Real Estate Owned Net - Summary of Properties Included in Other Real Estate Owned (OREO) (Detail) $ in Thousands | Jun. 30, 2015USD ($)Property | Dec. 31, 2014USD ($)Property | |
Real Estate Properties [Line Items] | |||
No. of Properties | 19 | 27 | |
Carrying Value | $ | $ 2,624 | $ 2,791 | [1] |
Residential | |||
Real Estate Properties [Line Items] | |||
No. of Properties | 7 | 10 | |
Carrying Value | $ | $ 1,407 | $ 1,559 | |
Land lots | |||
Real Estate Properties [Line Items] | |||
No. of Properties | 7 | 13 | |
Carrying Value | $ | $ 442 | $ 587 | |
Convenience Stores | |||
Real Estate Properties [Line Items] | |||
No. of Properties | 2 | 2 | |
Carrying Value | $ | $ 234 | $ 234 | |
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 | 2 | 1 | |
Carrying Value | $ | $ 434 | $ 304 | |
[1] | Derived from the audited consolidated financial statements. |
Earnings per share - Weighted A
Earnings per share - Weighted Average Number of Shares Used in Computing Earnings Per Share (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Basic earnings per share | 4,802,032 | 4,818,733 | 4,805,922 | 4,818,311 |
Effect of dilutive securities: | ||||
Stock options | 17,290 | 18,050 | 13,565 | 14,105 |
Diluted earnings per share | 4,819,322 | 4,836,783 | 4,819,487 | 4,832,416 |
Basic earnings per share | $ 0.06 | $ 0.05 | $ 0.14 | $ 0.15 |
Diluted earnings per share | $ 0.06 | $ 0.05 | $ 0.14 | $ 0.15 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Computation Of Earnings Per Share Line Items | ||||
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 54,733 | 62,588 | 68,473 | 68,828 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant | 370,500 | 370,500 | ||
Stock-based compensation expense | $ 0 | $ 0 | $ 17,000 | $ 20,000 |
Unrecognized compensation expenses related to stock award | $ 0 | $ 0 | ||
Options granted | 7,500 | 7,000 | ||
Options vested | 7,500 | 7,000 | ||
Aggregate fair value of options granted | $ 17,000 | $ 20,000 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Options (Detail) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate (5 year Treasury) | 1.52% | 2.70% |
Expected dividend yield | 0.00% | 0.00% |
Expected term (years) | 5 years | 5 years |
Expected volatility | 47.10% | 51.40% |
Stock-Based Compensation - Fa54
Stock-Based Compensation - Fair Value of Options (Parenthetical) (Detail) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock price volatility, risk free interest period | 5 years | 5 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, beginning | 190,419 | |||
Granted, shares | 7,500 | 7,000 | ||
Forfeited, shares | 0 | |||
Exercised, shares | 0 | |||
Expired, shares | (7,734) | |||
Options outstanding and exercisable, ending | 190,185 | 190,419 | ||
Options outstanding, beginning, Weighted Average Exercise Price | $ 7.02 | |||
Granted, Weighted Average Exercise Price | 5.37 | |||
Forfeited, Weighted Average Exercise Price | 0 | |||
Exercised, Weighted Average Exercise Price | 0 | |||
Expired, Weighted Average Exercise Price | 14.43 | |||
Options outstanding and exercisable, ending, Weighted Average Exercise Price | $ 6.66 | $ 7.02 | ||
Options outstanding and exercisable, ending, Weighted Average Remaining Contractual Life | 6 years 1 month 6 days | 6 years 2 months 12 days | ||
Options outstanding, ending, Aggregate Intrinsic Value | [1] | $ 0 | ||
Options outstanding and exercisable, ending, Aggregate Intrinsic Value | [1] | $ 94,373 | ||
[1] | The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on June 30, 2015. This amount changes based on changes in the market value of the Company's common stock. |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - 6 months ended Jun. 30, 2015 | USD ($)Age |
Defined Contribution Plan Disclosure [Line Items] | |
Minimum age of full-time employees | 21 |
Conditional age-1 for availing plan | 55 |
Conditional age-2 for availing plan | 65 |
Conditional years of service -1 for availing plan | 10 years |
Conditional years of service-2 for availing plan | 5 years |
Pension Plan, Defined Benefit | |
Defined Contribution Plan Disclosure [Line Items] | |
Expected employer contribution | $ | $ 0 |
Other Postretirement Benefit Plan, Defined Benefit | |
Defined Contribution Plan Disclosure [Line Items] | |
Expected employer contribution | $ | 5,000 |
Employer contribution | $ | $ 5,000 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Gain) (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Interest cost | $ 66 | $ 71 |
Expected return on plan assets | (99) | (101) |
Amortization of unrecognized net loss | 19 | |
Recognized net actuarial loss | 37 | |
Net periodic (benefit) cost | 4 | (11) |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 11 | 8 |
Interest cost | 15 | 15 |
Net periodic (benefit) cost | $ 26 | $ 23 |
Long Term Debt - Additional Inf
Long Term Debt - Additional Information (Detail) | Jun. 30, 2015USD ($)Loan | May. 28, 2015USD ($) | Dec. 31, 2014USD ($) | May. 31, 2014USD ($) | |
Debt Instrument [Line Items] | |||||
Number of FHLB debt advances | Loan | 5 | ||||
Federal Home Loan Bank advances | $ 30,000,000 | $ 35,000,000 | [1] | ||
Number of repaid FHLB debt advances | Loan | 1 | ||||
Immediate available credit | $ 44,200,000 | ||||
Total line of credit | $ 78,200,000 | ||||
Weighted average interest rate | 1.13% | 0.96% | |||
Subordinated Debt Due May Twenty Twenty Five | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 7,000,000 | $ 7,000,000 | |||
Debt instrument, coupon percentage | 6.50% | 6.50% | |||
Debt instrument, maturity date | May 28, 2025 | ||||
Debt instrument, frequency of payment | 1st of March and September of each year, commencing September 1, 2015 | ||||
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 | ||||
[1] | Derived from the audited consolidated financial statements. |
Long Term Debt - Advances of FH
Long Term Debt - Advances of FHLB (Detail) - USD ($) | 6 Months Ended | |||
Jun. 30, 2015 | Dec. 31, 2014 | [1] | May. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | $ 30,000,000 | $ 35,000,000 | ||
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 | |||
Adjustable Rate Hybrid | Federal Home Loan Bank Advances One | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | $ 10,000,000 | |||
Originated | Apr. 12, 2013 | |||
Current Interest Rate | 2.6559% | |||
Maturity Date | Apr. 13, 2020 | |||
Adjustable Rate Credit | Federal Home Loan Bank Advances Five | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | $ 5,000,000 | |||
Originated | Jun. 18, 2015 | |||
Current Interest Rate | 0.3008% | |||
Maturity Date | Sep. 19, 2016 | |||
Fixed Rate Credit | Federal Home Loan Bank Advances Two | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | $ 5,000,000 | |||
Originated | Oct. 20, 2014 | |||
Current Interest Rate | 0.47% | |||
Maturity Date | Apr. 20, 2016 | |||
Fixed Rate Credit | Federal Home Loan Bank Advances Three | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | $ 5,000,000 | |||
Originated | Oct. 20, 2014 | |||
Current Interest Rate | 0.30% | |||
Maturity Date | Oct. 20, 2015 | |||
Fixed Rate Credit | Federal Home Loan Bank Advances Four | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | $ 5,000,000 | |||
Originated | May 20, 2015 | |||
Current Interest Rate | 0.37% | |||
Maturity Date | Feb. 22, 2016 | |||
[1] | Derived from the audited consolidated financial statements. |
Subordinated Debt (Detail)
Subordinated Debt (Detail) - Subordinated Debt Due May Twenty Twenty Five - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | May. 28, 2015 | |
Debt and Financial Instruments [Line Items] | ||
Debt instrument, face amount | $ 7,000,000 | $ 7,000,000 |
Less: Issuance costs | (159,000) | |
Proceeds from Debt, Net of Issuance Costs | $ 6,841,000 |
Subordinated Debt (Parenthetica
Subordinated Debt (Parenthetical) (Detail) | Jun. 30, 2015 | May. 28, 2015 |
Subordinated Debt Due May Twenty Twenty Five | ||
Debt and Financial Instruments [Line Items] | ||
Debt instrument, coupon percentage | 6.50% | 6.50% |
Regulatory Capital Requiremen62
Regulatory Capital Requirements and Restrictions - Additional Information (Detail) - Entity [Domain] - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 3 - Mortgage Servicing Rights | Jan. 01, 2019 | Jan. 01, 2016 | Jan. 01, 2015 | Jul. 31, 2013 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 6.00% | 4.00% | ||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.00% | |||
Leverage Ratio (Total Assets), Minimum Capital Requirement Ratio | 4.00% | |||
Initial Capital Requirement Phase-In Period | 4 years | |||
Common Stock | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.50% | |||
Scenario, Forecast | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.50% | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 10.50% | |||
Leverage Ratio (Total Assets), Minimum Capital Requirement Ratio | 4.00% | |||
New Capital Conservation Buffer Requirement (to Risk Weighted Assets), Ratio | 2.50% | 0.625% | ||
Scenario, Forecast | Common Stock | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 7.00% |
Regulatory Requirements and Res
Regulatory Requirements and Restrictions - Schedule of Bank's Actual Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Consolidated Entities | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | $ 49,097 | $ 41,445 |
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 16.90% | 15.02% |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 23,242 | $ 22,074 |
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 | $ 38,817 | $ 38,240 |
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 13.36% | 13.86% |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 11,621 | $ 11,037 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 6.00% | 4.00% |
Tier 1 Capital (to Average Assets), Actual Amount | $ 38,817 | $ 38,240 |
Tier 1 Capital (to Average Assets), Actual Ratio | 9.52% | 10.36% |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Amount | $ 16,307 | $ 14,770 |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Consolidated Entities | Common Stock | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | $ 38,817 | |
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 13.36% | |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 11,621 | |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.50% | |
Subsidiaries | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | $ 40,498 | $ 36,446 |
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 14.08% | 13.30% |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 23,010 | $ 21,927 |
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 | $ 28,763 | $ 27,409 |
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 | $ 37,059 | $ 33,241 |
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 12.88% | 12.13% |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 11,505 | $ 10,964 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 6.00% | 4.00% |
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 17,258 | $ 16,445 |
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 | $ 37,059 | $ 33,241 |
Tier 1 Capital (to Average Assets), Actual Ratio | 9.17% | 9.07% |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Amount | $ 16,162 | $ 14,664 |
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 | $ 20,203 | $ 18,329 |
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Subsidiaries | Common Stock | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | $ 37,059 | |
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 12.88% | |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 11,505 | |
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.50% | |
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 14,381 | |
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 3 - Mortgage Servicing Rights | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015$ / Loan | Dec. 31, 2014Loan$ / Loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan segregated, number of pools | Loan | 14 | |
Service costs assumed, per loan | 6 | 5.75 |
Average PSA assumed rate | 156.00% | 184.00% |
Discount rate | 11.00% | 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 - Sched
Fair Value Measurements - Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Securities available for sale: | |||
Securities available-for-sale | $ 47,056 | $ 42,604 | [1] |
Mortgage servicing rights | 632 | 596 | [1] |
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 2,932 | 2,897 | |
Corporate Bonds | |||
Securities available for sale: | |||
Securities available-for-sale | 200 | ||
US Government Agencies | |||
Securities available for sale: | |||
Securities available-for-sale | 21,373 | 16,965 | |
State and Municipal Obligations | |||
Securities available for sale: | |||
Securities available-for-sale | 23,241 | 23,401 | |
Certificates of Deposit | |||
Securities available for sale: | |||
Securities available-for-sale | 2,242 | 2,238 | |
Cash and Cash Equivalents | |||
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 3 | 4 | |
Fixed Income Funds | |||
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 1,178 | 1,139 | |
Equity Funds | |||
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 1,751 | 1,754 | |
Fair Value, Inputs, Level 1 | |||
Securities available for sale: | |||
Securities available-for-sale | 1,366 | 845 | |
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 2,932 | 2,897 | |
Fair Value, Inputs, Level 1 | US Government Agencies | |||
Securities available for sale: | |||
Securities available-for-sale | 1,366 | 845 | |
Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | |||
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 3 | 4 | |
Fair Value, Inputs, Level 1 | Fixed Income Funds | |||
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 1,178 | 1,139 | |
Fair Value, Inputs, Level 1 | Equity Funds | |||
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 1,751 | 1,754 | |
Fair Value, Inputs, Level 2 | |||
Securities available for sale: | |||
Securities available-for-sale | 45,490 | 41,759 | |
Fair Value, Inputs, Level 2 | US Government Agencies | |||
Securities available for sale: | |||
Securities available-for-sale | 20,007 | 16,120 | |
Fair Value, Inputs, Level 2 | State and Municipal Obligations | |||
Securities available for sale: | |||
Securities available-for-sale | 23,241 | 23,401 | |
Fair Value, Inputs, Level 2 | Certificates of Deposit | |||
Securities available for sale: | |||
Securities available-for-sale | 2,242 | 2,238 | |
Fair Value, Inputs, Level 3 | |||
Securities available for sale: | |||
Securities available-for-sale | 200 | ||
Mortgage servicing rights | 632 | $ 596 | |
Fair Value, Inputs, Level 3 | Corporate Bonds | |||
Securities available for sale: | |||
Securities available-for-sale | $ 200 | ||
[1] | Derived from the audited consolidated financial statements. |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Items Using Level Three Inputs (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Mortgage Servicing Rights | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ 596 |
Impairments | 0 |
Fair value adjustments | 36 |
Sales | 0 |
Ending balance | 632 |
Corporate Bonds | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Purchases | 200 |
Impairments | 0 |
Sales | 0 |
Ending balance | $ 200 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, net | $ 3,144 | $ 1,958 |
Other real estate owned, net | 2,624 | 2,791 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, net | 3,144 | 1,958 |
Other real estate owned, net | $ 2,624 | $ 2,791 |
Fair Value Measurements - Sum68
Fair Value Measurements - Summary of Quantitative Fair Value Measurements for Level 3 (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired Loans, net | $ 3,144 | $ 1,958 |
Other real estate owned, net | 2,624 | 2,791 |
Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired Loans, net | 3,144 | 1,958 |
Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other real estate owned, net | $ 2,624 | $ 2,791 |
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 | 25.00% | 20.00% |
Unobservable Input, Lack of Marketability | 75.00% | 75.00% |
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% | 20.00% |
Weighted Average | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 13.00% | 10.00% |
Unobservable Input, Lack of Marketability | 52.00% | 53.00% |
Weighted Average | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 5.00% | 5.00% |
Unobservable Input, Lack of Marketability | 10.00% | 11.00% |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Financial Assets: | |||
Cash and due from banks | $ 5,880 | $ 6,181 | [1] |
Interest-bearing deposits | 20,605 | 14,784 | [1] |
Federal funds sold | 2,187 | 119 | [1] |
Securities available-for-sale | 47,056 | 42,604 | [1] |
Restricted securities | 2,261 | 2,430 | [1] |
Loans, net | 313,442 | 295,242 | [1] |
Loans held for sale | 709 | ||
Accrued interest receivable | 1,237 | 1,197 | [1] |
Mortgage servicing rights | 632 | 596 | |
Financial Liabilities: | |||
Non-interest-bearing liabilities | 61,073 | 63,308 | [1] |
Savings and other interest-bearing deposits | 152,794 | 122,502 | [1] |
Time deposits | 119,734 | 121,775 | [1] |
Securities sold under repurchase agreements | 8,787 | 6,012 | [1] |
FHLB advances | 30,000 | 35,000 | [1] |
Subordinated debt | 6,841 | ||
Accrued interest payable | 201 | 149 | |
Financial Assets: | |||
Cash and due from banks | 5,880 | 6,181 | |
Interest-bearing deposits | 20,605 | 14,784 | |
Federal funds sold | 2,187 | 119 | |
Securities available-for-sale | 47,056 | 42,604 | [1] |
Restricted securities | 2,261 | 2,430 | |
Loans, net | 319,343 | 300,481 | |
Loans held for sale | 709 | ||
Accrued interest receivable | 1,237 | 1,197 | |
Mortgage servicing rights | 632 | 596 | [1] |
Financial Liabilities: | |||
Non-interest-bearing liabilities | 61,073 | 63,308 | |
Savings and other interest-bearing deposits | 152,503 | 122,502 | |
Time deposits | 121,026 | 122,662 | |
Securities sold under repurchase agreements | 8,787 | 6,012 | |
FHLB advances | 30,911 | 35,951 | |
Subordinated debt | 7,000 | ||
Accrued interest payable | 201 | 149 | |
Fair Value, Inputs, Level 1 | |||
Financial Assets: | |||
Securities available-for-sale | 1,366 | 845 | |
Financial Assets: | |||
Cash and due from banks | 5,880 | 6,181 | |
Interest-bearing deposits | 20,605 | 14,784 | |
Federal funds sold | 2,187 | 119 | |
Securities available-for-sale | 1,366 | 845 | |
Financial Liabilities: | |||
Non-interest-bearing liabilities | 61,073 | 63,308 | |
Fair Value, Inputs, Level 2 | |||
Financial Assets: | |||
Securities available-for-sale | 45,490 | 41,759 | |
Financial Assets: | |||
Securities available-for-sale | 45,490 | 41,759 | |
Accrued interest receivable | 1,237 | 1,197 | |
Financial Liabilities: | |||
Savings and other interest-bearing deposits | 152,503 | 122,502 | |
Securities sold under repurchase agreements | 8,787 | 6,012 | |
FHLB advances | 30,911 | 35,951 | |
Accrued interest payable | 201 | 149 | |
Fair Value, Inputs, Level 3 | |||
Financial Assets: | |||
Securities available-for-sale | 200 | ||
Financial Assets: | |||
Securities available-for-sale | 200 | ||
Restricted securities | 2,261 | 2,430 | |
Loans, net | 319,343 | 300,481 | |
Loans held for sale | 709 | ||
Mortgage servicing rights | 632 | 596 | |
Financial Liabilities: | |||
Time deposits | 121,026 | $ 122,662 | |
Subordinated debt | $ 7,000 | ||
[1] | Derived from the audited consolidated financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income - Balances in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Beginning balance | $ (720) | $ (850) | $ (921) | [1] | $ (1,173) |
Change in net unrealized holding gains on securities, before reclassification, net of tax expense | (372) | 223 | (174) | 545 | |
Reclassification for previously unrealized net gains recognized in income, net of tax expense | (4) | 10 | (1) | 11 | |
Ending Balance | (1,096) | (617) | (1,096) | (617) | |
Holding gains (losses) on securities | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Beginning balance | 246 | (468) | 45 | (791) | |
Change in net unrealized holding gains on securities, before reclassification, net of tax expense | (372) | 223 | (174) | 545 | |
Reclassification for previously unrealized net gains recognized in income, net of tax expense | (4) | 10 | (1) | 11 | |
Ending Balance | (130) | (235) | (130) | (235) | |
Pension and Post employment costs | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Beginning balance | (966) | (382) | (966) | (382) | |
Ending Balance | $ (966) | $ (382) | $ (966) | $ (382) | |
[1] | Derived from the audited consolidated financial statements. |
Accumulated Other Comprehensi71
Accumulated Other Comprehensive Income - Balances in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Unrealized holding gains arising during the period, tax expense | $ (192) | $ 112 | $ (90) | $ 280 |
Reclassification for previously unrealized net losses recognized in income, tax benefit | 2 | (6) | 1 | (6) |
Holding gains (losses) on securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Unrealized holding gains arising during the period, tax expense | (192) | 112 | (90) | 280 |
Reclassification for previously unrealized net losses recognized in income, tax benefit | $ 2 | $ (6) | $ 1 | $ (6) |
Accumulated Other Comprehensi72
Accumulated Other Comprehensive Income (Loss) - Reclassification of Unrealized Losses and Impairments on Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains (losses) on sale of securities available-for-securities | $ 6 | $ (16) | $ 2 | $ (17) |
Tax (expense) benefit | (56) | (27) | (152) | (204) |
Holding gains (losses) on securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains (losses) on sale of securities available-for-securities | 6 | (16) | 2 | (17) |
Tax (expense) benefit | (2) | 6 | (1) | 6 |
Impact on net income | $ 4 | $ (10) | $ 1 | $ (11) |
Uncategorized Items - bayk-2015
Label | Element | Value |
Gain (Loss) on Disposition of Property Plant Equipment | us-gaap_GainLossOnSaleOfPropertyPlantEquipment | $ (7) |
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | 260 |
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | $ 294 |