Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'SHORE BANCSHARES INC | ' |
Entity Central Index Key | '0001035092 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'SHBI | ' |
Entity Common Stock, Shares Outstanding | ' | 8,461,289 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $26,133 | $26,579 |
Interest-bearing deposits with other banks | 79,165 | 164,864 |
Federal funds sold | 1,624 | 8,750 |
Investment securities: | ' | ' |
Available for sale, at fair value | 135,862 | 145,508 |
Held to maturity, at amortized cost - fair value of $2,471 (2013) and $2,884 (2012) | 2,357 | 2,657 |
Loans held for sale | 23,635 | 0 |
Loans | 718,627 | 785,082 |
Less: allowance for credit losses | -11,301 | -15,991 |
Loans, net | 707,326 | 769,091 |
Premises and equipment, net | 15,175 | 15,593 |
Goodwill | 12,454 | 12,454 |
Other intangible assets, net | 3,594 | 3,816 |
Other real estate owned, net | 5,776 | 7,659 |
Other assets | 38,283 | 28,836 |
TOTAL ASSETS | 1,051,384 | 1,185,807 |
LIABILITIES | ' | ' |
Noninterest-bearing | 166,225 | 153,992 |
Interest-bearing | 764,188 | 895,281 |
Total deposits | 930,413 | 1,049,273 |
Short-term borrowings | 11,468 | 13,761 |
Other liabilities | 7,502 | 8,747 |
TOTAL LIABILITIES | 949,383 | 1,071,781 |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, par value $.01 per share; shares authorized - 35,000,000; shares issued and outstanding - 8,461,289 (2013) and 8,457,359 (2012) | 85 | 85 |
Additional paid in capital | 32,187 | 32,155 |
Retained earnings | 70,269 | 81,078 |
Accumulated other comprehensive (loss) income | -540 | 708 |
TOTAL STOCKHOLDERS' EQUITY | 102,001 | 114,026 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,051,384 | $1,185,807 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Securities held to maturity, estimated fair value (in dollars) | $2,471 | $2,884 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 8,461,289 | 8,457,359 |
Common stock, shares outstanding | 8,461,289 | 8,457,359 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
INTEREST INCOME | ' | ' | ' | ' |
Interest and fees on loans | $9,767 | $10,604 | $29,816 | $32,505 |
Interest and dividends on investment securities: | ' | ' | ' | ' |
Taxable | 357 | 685 | 1,568 | 2,149 |
Tax-exempt | 5 | 22 | 14 | 92 |
Interest on federal funds sold | 0 | 3 | 3 | 7 |
Interest on deposits with other banks | 53 | 79 | 143 | 188 |
Total interest income | 10,182 | 11,393 | 31,544 | 34,941 |
INTEREST EXPENSE | ' | ' | ' | ' |
Interest on deposits | 1,348 | 2,647 | 5,218 | 7,931 |
Interest on short-term borrowings | 6 | 10 | 20 | 36 |
Interest on long-term debt | 0 | 6 | 0 | 16 |
Total interest expense | 1,354 | 2,663 | 5,238 | 7,983 |
NET INTEREST INCOME | 8,828 | 8,730 | 26,306 | 26,958 |
Provision for credit losses | 22,460 | 6,200 | 27,310 | 18,095 |
NET INTEREST (EXPENSE) INCOME AFTER PROVISION FOR CREDIT LOSSES | -13,632 | 2,530 | -1,004 | 8,863 |
NONINTEREST INCOME | ' | ' | ' | ' |
Service charges on deposit accounts | 600 | 628 | 1,772 | 1,898 |
Trust and investment fee income | 401 | 410 | 1,184 | 1,279 |
Gains on sales of investment securities | 0 | 278 | 913 | 278 |
Insurance agency commissions | 2,724 | 2,427 | 8,170 | 7,522 |
Loss on termination of cash flow hedge | 0 | 0 | -1,306 | 0 |
Other noninterest income | 1,067 | 258 | 2,511 | 2,175 |
Total noninterest income | 4,792 | 4,001 | 13,244 | 13,152 |
NONINTEREST EXPENSE | ' | ' | ' | ' |
Salaries and wages | 4,420 | 4,386 | 13,010 | 13,178 |
Employee benefits | 971 | 945 | 3,111 | 3,071 |
Occupancy expense | 566 | 625 | 1,775 | 1,950 |
Furniture and equipment expense | 275 | 265 | 768 | 728 |
Data processing | 718 | 703 | 2,127 | 2,063 |
Directors' fees | 86 | 131 | 262 | 367 |
Amortization of other intangible assets | 74 | 96 | 222 | 318 |
Insurance agency commissions expense | 409 | 275 | 1,328 | 1,004 |
FDIC insurance premium expense | 467 | 376 | 1,200 | 993 |
Write-downs of other real estate owned | 219 | 224 | 947 | 1,077 |
Other noninterest expenses | 1,763 | 1,683 | 5,468 | 5,121 |
Total noninterest expense | 9,968 | 9,709 | 30,218 | 29,870 |
LOSS BEFORE INCOME TAX BENEFIT | -18,808 | -3,178 | -17,978 | -7,855 |
Income tax benefit | -7,416 | -1,357 | -7,169 | -3,291 |
NET LOSS | ($11,392) | ($1,821) | ($10,809) | ($4,564) |
Basic net loss per common share (in dollars per share) | ($1.35) | ($0.22) | ($1.28) | ($0.54) |
Diluted net loss per common share (in dollars per share) | ($1.35) | ($0.22) | ($1.28) | ($0.54) |
Dividends paid per common share (in dollars per share) | $0 | $0 | $0 | $0.01 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net loss | ($11,392) | ($1,821) | ($10,809) | ($4,564) |
Other comprehensive (loss) income | ' | ' | ' | ' |
Unrealized holding (losses) gains on available-for-sale securities | -367 | 609 | -3,167 | 1,524 |
Tax effect | 148 | -245 | 1,278 | -614 |
Reclassification of gains recognized in net income | 0 | -278 | -913 | -278 |
Tax effect | 0 | 112 | 368 | 112 |
Net of tax amount | -219 | 198 | -2,434 | 744 |
Cash flow hedging activities: | ' | ' | ' | ' |
Unrealized holding gains on cash flow hedging activities | 0 | 479 | 681 | 1,259 |
Tax effect | 0 | -193 | -274 | -508 |
Reclassification of losses recognized in net income | 0 | 0 | 1,306 | 0 |
Tax effect | 0 | 0 | -527 | 0 |
Net of tax amount | 0 | 286 | 1,186 | 751 |
Total other comprehensive (loss) income | -219 | 484 | -1,248 | 1,495 |
Comprehensive loss | ($11,611) | ($1,337) | ($12,057) | ($3,069) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, unless otherwise specified | |||||
Balances at Dec. 31, 2011 | $121,249 | $85 | $32,052 | $90,801 | ($1,689) |
Comprehensive loss: | ' | ' | ' | ' | ' |
Net loss | -4,564 | 0 | 0 | -4,564 | 0 |
Unrealized gains (losses) on available-for-sale securities, net of taxes | 744 | 0 | 0 | 0 | 744 |
Unrealized gains (losses) on cash flow hedging activities, net of taxes | 751 | 0 | 0 | 0 | 751 |
Total comprehensive loss | -3,069 | ' | ' | ' | ' |
Stock-based compensation | 68 | 0 | 68 | 0 | 0 |
Cash dividends paid ($0.01 per share) | -85 | 0 | 0 | -85 | 0 |
Balances at Sep. 30, 2012 | 118,163 | 85 | 32,120 | 86,152 | -194 |
Balances at Dec. 31, 2012 | 114,026 | 85 | 32,155 | 81,078 | 708 |
Comprehensive loss: | ' | ' | ' | ' | ' |
Net loss | -10,809 | 0 | 0 | -10,809 | 0 |
Unrealized gains (losses) on available-for-sale securities, net of taxes | -2,434 | 0 | 0 | 0 | -2,434 |
Unrealized gains (losses) on cash flow hedging activities, net of taxes | 1,186 | 0 | 0 | 0 | 1,186 |
Total comprehensive loss | -12,057 | ' | ' | ' | ' |
Stock-based compensation | 32 | 0 | 32 | 0 | 0 |
Balances at Sep. 30, 2013 | $102,001 | $85 | $32,187 | $70,269 | ($540) |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Dividends paid per common share | $0 | $0 | $0 | $0.01 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($10,809) | ($4,564) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Provision for credit losses | 27,310 | 18,095 |
Depreciation and amortization | 1,839 | 2,011 |
Discount accretion on debt securities | -30 | -56 |
Stock-based compensation expense | 58 | 174 |
Excess tax expense from stock-based arrangements | -26 | -106 |
Deferred income tax expense (benefit) | 286 | -63 |
Gains on sales of investment securities | -913 | -278 |
Gains on disposals of premises and equipment | 0 | -214 |
Losses on sales and write-downs of other real estate owned | 1,188 | 1,549 |
Loss on termination of cash flow hedge | 1,306 | 0 |
Net changes in: | ' | ' |
Accrued interest receivable | 27 | 473 |
Other assets | -8,561 | -3,085 |
Accrued interest payable | -68 | -66 |
Other liabilities | -1,220 | -265 |
Net cash provided by operating activities | 10,387 | 13,605 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Proceeds from maturities and principal payments of investment securities available for sale | 27,518 | 34,795 |
Proceeds from sales of investment securities available for sale | 40,351 | 6,275 |
Purchases of investment securities available for sale | -62,049 | -36,717 |
Proceeds from maturities and principal payments of investment securities held to maturity | 294 | 2,395 |
Net change in loans | 7,963 | 8,877 |
Purchases of premises and equipment | -292 | -1,842 |
Proceeds from sales of premises and equipment | 4 | 307 |
Proceeds from sales of other real estate owned | 3,595 | 4,133 |
Return of investment in unconsolidated subsidiary | 85 | 0 |
Net cash provided by investing activities | 17,469 | 18,223 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Noninterest-bearing deposits | 12,233 | 22,778 |
Interest-bearing deposits | -131,093 | 5,817 |
Short-term borrowings | -2,293 | -4,738 |
Excess tax expense from stock-based arrangements | 26 | 106 |
Common stock dividends paid | 0 | -85 |
Net cash (used in) provided by financing activities | -121,127 | 23,878 |
Net (decrease) increase in cash and cash equivalents | -93,271 | 55,706 |
Cash and cash equivalents at beginning of period | 200,193 | 127,742 |
Cash and cash equivalents at end of period | 106,922 | 183,448 |
Supplemental cash flows information: | ' | ' |
Interest paid | 5,307 | 8,050 |
Income taxes paid | 265 | 122 |
Transfers from loans to other real estate owned | 2,857 | 4,715 |
Transfers from loans to loans held for sale | $23,635 | $0 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies [Text Block] | ' |
Note 1 - Basis of Presentation | |
The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries with all significant intercompany transactions eliminated. The consolidated financial statements conform to accounting principles generally accepted in the United States of America (“GAAP”) and to prevailing practices within the banking industry. The accompanying interim financial statements are unaudited; however, in the opinion of management all adjustments necessary to present fairly the consolidated financial position at September 30, 2013, the consolidated results of operations and comprehensive loss for the three and nine months ended September 30, 2013 and 2012, and changes in stockholders’ equity and cash flows for the nine months ended September 30, 2013 and 2012, have been included. All such adjustments are of a normal recurring nature. The amounts as of December 31, 2012 were derived from the 2012 audited financial statements. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for any other interim period or for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with the Annual Report of Shore Bancshares, Inc. on Form 10-K for the year ended December 31, 2012. For purposes of comparability, certain reclassifications have been made to amounts previously reported to conform with the current period presentation. | |
When used in these notes, the term “the Company” refers to Shore Bancshares, Inc. and, unless the context requires otherwise, its consolidated subsidiaries. | |
Recent Accounting Standards | |
Accounting Standards Update (“ASU”) 2012-02, “Intangibles – Goodwill and Other (Accounting Standards Codification (“ASC”) Topic 350) – Testing Indefinite-Lived Intangible Assets for Impairment.” ASU 2012-02 gives entities the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events or circumstances, an entity determines it is more likely than not that an indefinite-lived intangible asset is impaired, then the entity must perform the quantitative impairment test. If, under the quantitative impairment test, the carrying amount of the intangible asset exceeds its fair value, an entity should recognize an impairment loss in the amount of that excess. Permitting an entity to assess qualitative factors when testing indefinite-lived intangible assets for impairment results in guidance that is similar to the goodwill impairment testing guidance in ASU 2011-08. ASU 2012-02 became effective for the Company on January 1, 2013, and did not have a significant impact on the Company’s financial statements. | |
ASU 2013-04, “Liabilities (ASC Topic 405) - Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date.” ASU 2013-04 provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. This guidance requires an entity to measure the obligation as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and any additional amount the reporting entity expects to pay on behalf of its co-obligors. This guidance also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. ASU 2013-04 is effective for the Company beginning January 1, 2014 and is not expected to have a significant impact on the Company’s financial statements. | |
EarningsLoss_Per_Share
Earnings/(Loss) Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Earnings Per Share [Text Block] | ' | |||||||||||||
Note 2 – Earnings/(Loss) Per Share | ||||||||||||||
Basic earnings/(loss) per common share is calculated by dividing net income/(loss) available to (allocable to) common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings/(loss) per common share is calculated by dividing net income/(loss) available to (allocable to) common stockholders by the weighted average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents (stock-based awards). There is no dilutive effect on the loss per share during loss periods. The following table provides information relating to the calculation of earnings/(loss) per common share: | ||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(In thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Net loss | $ | -11,392 | $ | -1,821 | $ | -10,809 | $ | -4,564 | ||||||
Weighted average shares outstanding - Basic | 8,461 | 8,457 | 8,460 | 8,457 | ||||||||||
Dilutive effect of common stock equivalents | - | - | - | - | ||||||||||
Weighted average shares outstanding - Diluted | 8,461 | 8,457 | 8,460 | 8,457 | ||||||||||
Loss per common share - Basic | $ | -1.35 | $ | -0.22 | $ | -1.28 | $ | -0.54 | ||||||
Loss per common share - Diluted | $ | -1.35 | $ | -0.22 | $ | -1.28 | $ | -0.54 | ||||||
The calculations of diluted earnings/(loss) per share excluded weighted average common stock equivalents of 54 thousand for both the three and nine months ended September 30, 2013 and 54 thousand and 43 thousand for the three and nine months ended September 30, 2012, respectively, because the effect of including them would have been antidilutive. | ||||||||||||||
Investment_Securities
Investment Securities | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | |||||||||||||||||||
Note 3 – Investment Securities | ||||||||||||||||||||
The following table provides information on the amortized cost and estimated fair values of investment securities. | ||||||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
(Dollars in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||
Obligations of U.S. Treasury | $ | 5,375 | $ | - | $ | 6 | $ | 5,369 | ||||||||||||
Obligations of U.S. Government agencies and corporations | 46,552 | 56 | 394 | 46,214 | ||||||||||||||||
Mortgage-backed securities | 84,234 | 389 | 952 | 83,671 | ||||||||||||||||
Equity securities | 606 | 2 | - | 608 | ||||||||||||||||
Total | $ | 136,767 | $ | 447 | $ | 1,352 | $ | 135,862 | ||||||||||||
December 31, 2012: | ||||||||||||||||||||
Obligations of U.S. Government agencies and corporations | $ | 35,213 | $ | 903 | $ | 9 | $ | 36,107 | ||||||||||||
Mortgage-backed securities | 106,524 | 2,464 | 208 | 108,780 | ||||||||||||||||
Equity securities | 596 | 25 | - | 621 | ||||||||||||||||
Total | $ | 142,333 | $ | 3,392 | $ | 217 | $ | 145,508 | ||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,357 | $ | 114 | $ | - | $ | 2,471 | ||||||||||||
December 31, 2012: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,657 | $ | 227 | $ | - | $ | 2,884 | ||||||||||||
The following table provides information about gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position at September 30, 2013. | ||||||||||||||||||||
Less than | More than | Total | ||||||||||||||||||
12 Months | 12 Months | |||||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
U.S. Treasury | $ | 5,369 | $ | 6 | $ | - | $ | - | $ | 5,369 | $ | 6 | ||||||||
U.S. Gov’t. agencies and corporations | 30,603 | 394 | - | - | 30,603 | 394 | ||||||||||||||
Mortgage-backed securities | 56,177 | 952 | - | - | 56,177 | 952 | ||||||||||||||
Total | $ | 92,149 | $ | 1,352 | $ | - | $ | - | $ | 92,149 | $ | 1,352 | ||||||||
All of the securities with unrealized losses in the available-for-sale portfolio have modest duration risk, low credit risk, and minimal losses when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since original purchase. Because the Company does not intend to sell these debt securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity, the Company considers the unrealized losses in the available-for-sale portfolio to be temporary. There were no unrealized losses in the held-to-maturity securities portfolio at September 30, 2013. | ||||||||||||||||||||
The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at September 30, 2013. | ||||||||||||||||||||
Available for sale | Held to maturity | |||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||||||
(Dollars in thousands) | Cost | Fair Value | Cost | Fair Value | ||||||||||||||||
Due in one year or less | $ | 6,055 | $ | 6,066 | $ | 413 | $ | 419 | ||||||||||||
Due after one year through five years | 42,500 | 42,372 | 433 | 454 | ||||||||||||||||
Due after five years through ten years | 3,894 | 3,936 | 1,007 | 1,077 | ||||||||||||||||
Due after ten years | 83,712 | 82,880 | 504 | 521 | ||||||||||||||||
136,161 | 135,254 | 2,357 | 2,471 | |||||||||||||||||
Equity securities | 606 | 608 | - | - | ||||||||||||||||
Total | $ | 136,767 | $ | 135,862 | $ | 2,357 | $ | 2,471 | ||||||||||||
The maturity dates for debt securities are determined using contractual maturity dates. | ||||||||||||||||||||
Loans_and_allowance_for_credit
Loans and allowance for credit losses | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||
Note 4 – Loans and allowance for credit losses | |||||||||||||||||||||||||||||
The Company makes residential mortgage, commercial and consumer loans to customers primarily in Talbot County, Queen Anne’s County, Kent County, Caroline County and Dorchester County in Maryland and in Kent County, Delaware. The following table provides information about the principal classes of the loan portfolio at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||
Construction | $ | 68,971 | $ | 108,051 | |||||||||||||||||||||||||
Residential real estate | 280,153 | 288,011 | |||||||||||||||||||||||||||
Commercial real estate | 303,154 | 314,941 | |||||||||||||||||||||||||||
Commercial | 55,101 | 60,786 | |||||||||||||||||||||||||||
Consumer | 11,248 | 13,293 | |||||||||||||||||||||||||||
Total loans | 718,627 | 785,082 | |||||||||||||||||||||||||||
Allowance for credit losses | -11,301 | -15,991 | |||||||||||||||||||||||||||
Total loans, net | $ | 707,326 | $ | 769,091 | |||||||||||||||||||||||||
Loans are stated at their principal amount outstanding net of any deferred fees and costs. Interest income on loans is accrued at the contractual rate based on the principal amount outstanding. Fees charged and costs capitalized for originating loans are being amortized substantially on the interest method over the term of the loan. A loan is placed on nonaccrual (i.e., interest income is no longer accrued) when it is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more, unless the loan is well secured and in the process of collection. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on nonaccrual loans are applied as a reduction of the loan principal balance unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |||||||||||||||||||||||||||||
A loan is considered impaired if it is probable that the Company will not collect all principal and interest payments according to the loan’s contractual terms. An impaired loan may show deficiencies in the borrower’s overall financial condition, payment history, support available from financial guarantors and/or the fair market value of collateral. The impairment of a loan is measured at the present value of expected future cash flows using the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Generally, the Company measures impairment on such loans by reference to the fair value of the collateral. Once the amount of impairment has been determined, the uncollectible portion is charged off. Income on impaired loans is recognized on a cash basis, and payments are first applied against the principal balance outstanding (i.e., placing impaired loans on nonaccrual status). Generally, interest income is not recognized on impaired loans unless the likelihood of further loss is remote. The allowance for credit losses may include specific reserves related to impaired loans. Specific reserves remain until charge offs are made. Impaired loans do not include groups of smaller balance homogenous loans such as residential mortgage and consumer installment loans that are evaluated collectively for impairment. Reserves for probable credit losses related to these loans are based on historical loss ratios and are included in the formula portion of the allowance for credit losses. See additional discussion under the caption “Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations. | |||||||||||||||||||||||||||||
A loan is considered a troubled debt restructuring if a borrower is experiencing financial difficulties and a creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. All loans designated as troubled debt restructurings (“TDRs”) are considered impaired loans and may be on either accrual or nonaccrual status. | |||||||||||||||||||||||||||||
The following tables include impairment information relating to loans and the allowance for credit losses as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 9,938 | $ | 22,171 | $ | 14,919 | $ | 952 | $ | 80 | $ | - | $ | 48,060 | |||||||||||||||
Loans collectively evaluated for impairment | 59,033 | 257,982 | 288,235 | 54,149 | 11,168 | - | 670,567 | ||||||||||||||||||||||
Total loans | $ | 68,971 | $ | 280,153 | $ | 303,154 | $ | 55,101 | $ | 11,248 | $ | - | $ | 718,627 | |||||||||||||||
Allowance for credit losses allocated to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 422 | $ | 924 | $ | 455 | $ | 305 | $ | 61 | $ | - | $ | 2,167 | |||||||||||||||
Loans collectively evaluated for impairment | 1,568 | 2,806 | 3,113 | 967 | 209 | 471 | 9,134 | ||||||||||||||||||||||
Total allowance for credit losses | $ | 1,990 | $ | 3,730 | $ | 3,568 | $ | 1,272 | $ | 270 | $ | 471 | $ | 11,301 | |||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 37,029 | $ | 18,549 | $ | 32,447 | $ | 715 | $ | 87 | $ | - | $ | 88,827 | |||||||||||||||
Loans collectively evaluated for impairment | 71,022 | 269,462 | 282,494 | 60,071 | 13,206 | - | 696,255 | ||||||||||||||||||||||
Total loans | $ | 108,051 | $ | 288,011 | $ | 314,941 | $ | 60,786 | $ | 13,293 | $ | - | $ | 785,082 | |||||||||||||||
Allowance for credit losses allocated to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 941 | $ | 598 | $ | 614 | $ | - | $ | 48 | $ | - | $ | 2,201 | |||||||||||||||
Loans collectively evaluated for impairment | 3,446 | 4,596 | 3,520 | 1,682 | 359 | 187 | 13,790 | ||||||||||||||||||||||
Total allowance for credit losses | $ | 4,387 | $ | 5,194 | $ | 4,134 | $ | 1,682 | $ | 407 | $ | 187 | $ | 15,991 | |||||||||||||||
The following tables provide information on impaired loans and any related allowance by loan class as of September 30, 2013 and December 31, 2012. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid | Recorded | Recorded | Related | Quarter-to- | Year-to-date | |||||||||||||||||||||||
principal | investment | investment | allowance | date average | average | ||||||||||||||||||||||||
balance | with no | with an | recorded | recorded | |||||||||||||||||||||||||
allowance | allowance | investment | investment | ||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||
Impaired nonaccrual loans: | |||||||||||||||||||||||||||||
Construction | $ | 11,863 | $ | 6,582 | $ | 1,457 | $ | 421 | $ | 9,672 | $ | 8,654 | |||||||||||||||||
Residential real estate | 7,486 | 4,082 | 1,323 | 309 | 10,825 | 10,921 | |||||||||||||||||||||||
Commercial real estate | 6,287 | 1,825 | 1,517 | 255 | 7,607 | 9,905 | |||||||||||||||||||||||
Commercial | 1,678 | 546 | 122 | 122 | 656 | 595 | |||||||||||||||||||||||
Consumer | 54 | 19 | 28 | 28 | 43 | 44 | |||||||||||||||||||||||
Total | 27,368 | 13,054 | 4,447 | 1,135 | 28,803 | 30,119 | |||||||||||||||||||||||
Impaired accruing restructured loans: | |||||||||||||||||||||||||||||
Construction | 1,899 | 1,804 | 95 | 1 | 14,462 | 20,834 | |||||||||||||||||||||||
Residential real estate | 16,735 | 14,347 | 2,388 | 584 | 11,290 | 9,225 | |||||||||||||||||||||||
Commercial real estate | 10,704 | 9,439 | 1,265 | 92 | 12,849 | 15,331 | |||||||||||||||||||||||
Commercial | 101 | 101 | - | - | 105 | 112 | |||||||||||||||||||||||
Consumer | - | - | - | - | - | - | |||||||||||||||||||||||
Total | 29,439 | 25,691 | 3,748 | 677 | 38,706 | 45,502 | |||||||||||||||||||||||
Impaired adversely rated loans: | |||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | |||||||||||||||||||||||
Residential real estate | 31 | - | 31 | 31 | 16 | 8 | |||||||||||||||||||||||
Commercial real estate | 873 | - | 873 | 108 | 437 | 218 | |||||||||||||||||||||||
Commercial | 183 | - | 183 | 183 | 92 | 46 | |||||||||||||||||||||||
Consumer | 33 | - | 33 | 33 | 17 | 8 | |||||||||||||||||||||||
Total | 1,120 | - | 1,120 | 355 | 562 | 280 | |||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Construction | 13,762 | 8,386 | 1,552 | 422 | 24,134 | 29,488 | |||||||||||||||||||||||
Residential real estate | 24,252 | 18,429 | 3,742 | 924 | 22,131 | 20,154 | |||||||||||||||||||||||
Commercial real estate | 17,864 | 11,264 | 3,655 | 455 | 20,893 | 25,454 | |||||||||||||||||||||||
Commercial | 1,962 | 647 | 305 | 305 | 853 | 753 | |||||||||||||||||||||||
Consumer | 87 | 19 | 61 | 61 | 60 | 52 | |||||||||||||||||||||||
Total | $ | 57,927 | $ | 38,745 | $ | 9,315 | $ | 2,167 | $ | 68,071 | $ | 75,901 | |||||||||||||||||
(Dollars in thousands) | Unpaid | Recorded | Recorded | Related | Quarter-to- | Year-to-date | |||||||||||||||||||||||
principal | investment | investment with an | allowance | date average | average | ||||||||||||||||||||||||
balance | with no | allowance | recorded | recorded | |||||||||||||||||||||||||
allowance | investment | investment | |||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Impaired nonaccrual loans: | |||||||||||||||||||||||||||||
Construction | $ | 14,288 | $ | 3,371 | $ | 6,323 | $ | 941 | $ | 10,600 | $ | 12,428 | |||||||||||||||||
Residential real estate | 17,975 | 9,469 | 2,063 | 598 | 13,294 | 17,472 | |||||||||||||||||||||||
Commercial real estate | 19,515 | 11,838 | 2,729 | 614 | 13,554 | 12,975 | |||||||||||||||||||||||
Commercial | 1,556 | 594 | - | - | 1,126 | 1,538 | |||||||||||||||||||||||
Consumer | 92 | 39 | 48 | 48 | 50 | 55 | |||||||||||||||||||||||
Total | 53,426 | 25,311 | 11,163 | 2,201 | 38,624 | 44,468 | |||||||||||||||||||||||
Impaired accruing restructured loans: | |||||||||||||||||||||||||||||
Construction | 27,335 | 27,335 | - | - | 27,907 | 21,193 | |||||||||||||||||||||||
Residential real estate | 7,017 | 7,017 | - | - | 6,124 | 5,064 | |||||||||||||||||||||||
Commercial real estate | 17,880 | 17,880 | - | - | 17,433 | 16,252 | |||||||||||||||||||||||
Commercial | 121 | 121 | - | - | 105 | 87 | |||||||||||||||||||||||
Consumer | - | - | - | - | - | - | |||||||||||||||||||||||
Total | 52,353 | 52,353 | - | - | 51,569 | 42,596 | |||||||||||||||||||||||
Impaired adversely rated loans: | |||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | |||||||||||||||||||||||
Residential real estate | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial real estate | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | - | - | - | - | - | - | |||||||||||||||||||||||
Consumer | - | - | - | - | - | - | |||||||||||||||||||||||
Total | - | - | - | - | - | - | |||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Construction | 41,623 | 30,706 | 6,323 | 941 | 38,507 | 33,621 | |||||||||||||||||||||||
Residential real estate | 24,992 | 16,486 | 2,063 | 598 | 19,418 | 22,536 | |||||||||||||||||||||||
Commercial real estate | 37,395 | 29,718 | 2,729 | 614 | 30,987 | 29,227 | |||||||||||||||||||||||
Commercial | 1,677 | 715 | - | - | 1,231 | 1,625 | |||||||||||||||||||||||
Consumer | 92 | 39 | 48 | 48 | 50 | 55 | |||||||||||||||||||||||
Total | $ | 105,779 | $ | 77,664 | $ | 11,163 | $ | 2,201 | $ | 90,193 | $ | 87,064 | |||||||||||||||||
The following tables provide information on loans that were modified and considered TDRs during the nine months ended September 30, 2013 and September 30, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Premodification | Postmodification | Related allowance | |||||||||||||||||||||||||
contracts | outstanding | outstanding | |||||||||||||||||||||||||||
recorded | recorded | ||||||||||||||||||||||||||||
investment | investment | ||||||||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Construction | 3 | $ | 218 | $ | 218 | $ | - | ||||||||||||||||||||||
Residential real estate | 6 | 11,758 | 11,772 | 38 | |||||||||||||||||||||||||
Commercial real estate | 4 | 2,212 | 2,211 | 82 | |||||||||||||||||||||||||
Commercial | - | - | - | - | |||||||||||||||||||||||||
Consumer | - | - | - | - | |||||||||||||||||||||||||
Total | 13 | $ | 14,188 | $ | 14,201 | $ | 120 | ||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||
Construction | 12 | $ | 17,347 | $ | 17,361 | $ | - | ||||||||||||||||||||||
Residential real estate | 11 | 3,382 | 3,044 | - | |||||||||||||||||||||||||
Commercial real estate | 7 | 7,270 | 7,429 | - | |||||||||||||||||||||||||
Commercial | 1 | 24 | 24 | - | |||||||||||||||||||||||||
Consumer | - | - | - | - | |||||||||||||||||||||||||
Total | 31 | $ | 28,023 | $ | 27,858 | $ | - | ||||||||||||||||||||||
The following tables provide information on TDRs that defaulted during the nine months ended September 30, 2013 and September 30, 2012. Generally, a loan is considered in default when principal or interest is past due 90 days or more. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Recorded | Related allowance | ||||||||||||||||||||||||||
contracts | investment | ||||||||||||||||||||||||||||
TDRs that subsequently defaulted (1): | |||||||||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Construction | - | $ | - | $ | - | ||||||||||||||||||||||||
Residential real estate | 4 | 1,563 | - | ||||||||||||||||||||||||||
Commercial real estate | 1 | 1,741 | 74 | ||||||||||||||||||||||||||
Commercial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
Total | 5 | $ | 3,304 | $ | 74 | ||||||||||||||||||||||||
TDRs that subsequently defaulted (2): | |||||||||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||
Construction | 1 | $ | 666 | $ | - | ||||||||||||||||||||||||
Residential real estate | 3 | 913 | - | ||||||||||||||||||||||||||
Commercial real estate | - | - | - | ||||||||||||||||||||||||||
Commercial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
Total | 4 | $ | 1,579 | $ | - | ||||||||||||||||||||||||
(1) These loans were classified as TDRs during 2012. | |||||||||||||||||||||||||||||
(2) These loans were classified as TDRs during 2011. | |||||||||||||||||||||||||||||
Management uses risk ratings as part of its monitoring of the credit quality in the Company’s loan portfolio. Loans that are identified as special mention, substandard or doubtful are adversely rated. They are assigned higher risk ratings than favorably rated loans in the calculation of the formula portion of the allowance for credit losses. | |||||||||||||||||||||||||||||
The following tables provide information on loan risk ratings as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Pass/Performing | Special | Substandard | Doubtful | Nonaccrual | Total | |||||||||||||||||||||||
mention | |||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||
Construction | $ | 38,481 | $ | 15,369 | $ | 7,082 | $ | - | $ | 8,039 | $ | 68,971 | |||||||||||||||||
Residential real estate | 238,293 | 21,806 | 14,649 | - | 5,405 | 280,153 | |||||||||||||||||||||||
Commercial real estate | 266,836 | 22,813 | 10,163 | - | 3,342 | 303,154 | |||||||||||||||||||||||
Commercial | 50,313 | 3,406 | 714 | - | 668 | 55,101 | |||||||||||||||||||||||
Consumer | 10,995 | 206 | - | - | 47 | 11,248 | |||||||||||||||||||||||
Total | $ | 604,918 | $ | 63,600 | $ | 32,608 | $ | - | $ | 17,501 | $ | 718,627 | |||||||||||||||||
(Dollars in thousands) | Pass/Performing | Special | Substandard | Doubtful | Nonaccrual | Total | |||||||||||||||||||||||
mention | |||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Construction | $ | 45,385 | $ | 30,817 | $ | 22,155 | $ | - | $ | 9,694 | $ | 108,051 | |||||||||||||||||
Residential real estate | 237,299 | 23,657 | 15,090 | 433 | 11,532 | 288,011 | |||||||||||||||||||||||
Commercial real estate | 257,418 | 21,554 | 21,402 | - | 14,567 | 314,941 | |||||||||||||||||||||||
Commercial | 55,432 | 3,062 | 1,639 | 59 | 594 | 60,786 | |||||||||||||||||||||||
Consumer | 13,147 | - | 59 | - | 87 | 13,293 | |||||||||||||||||||||||
Total | $ | 608,681 | $ | 79,090 | $ | 60,345 | $ | 492 | $ | 36,474 | $ | 785,082 | |||||||||||||||||
The following tables provide information on the aging of the loan portfolio as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90 days | Total past | Nonaccrual | Total | ||||||||||||||||||||||
days | days past | or more | due | ||||||||||||||||||||||||||
past due | due | past due | |||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||
Construction | $ | 60,932 | $ | - | $ | - | $ | - | $ | - | $ | 8,039 | $ | 68,971 | |||||||||||||||
Residential real estate | 272,819 | 1,554 | 375 | - | 1,929 | 5,405 | 280,153 | ||||||||||||||||||||||
Commercial real estate | 297,841 | - | 1,971 | - | 1,971 | 3,342 | 303,154 | ||||||||||||||||||||||
Commercial | 54,164 | 248 | 21 | - | 269 | 668 | 55,101 | ||||||||||||||||||||||
Consumer | 11,099 | 48 | 45 | 9 | 102 | 47 | 11,248 | ||||||||||||||||||||||
Total | $ | 696,855 | $ | 1,850 | $ | 2,412 | $ | 9 | $ | 4,271 | $ | 17,501 | $ | 718,627 | |||||||||||||||
Percent of total loans | 97 | % | 0.3 | % | 0.3 | % | - | 0.6 | % | 2.4 | % | ||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90 days | Total past | Nonaccrual | Total | ||||||||||||||||||||||
days | days past | or more | due | ||||||||||||||||||||||||||
past due | due | past due | |||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Construction | $ | 98,221 | $ | 136 | $ | - | $ | - | $ | 136 | $ | 9,694 | $ | 108,051 | |||||||||||||||
Residential real estate | 272,311 | 3,116 | 762 | 290 | 4,168 | 11,532 | 288,011 | ||||||||||||||||||||||
Commercial real estate | 298,522 | 887 | 800 | 165 | 1,852 | 14,567 | 314,941 | ||||||||||||||||||||||
Commercial | 59,746 | 380 | 66 | - | 446 | 594 | 60,786 | ||||||||||||||||||||||
Consumer | 13,125 | 57 | 19 | 5 | 81 | 87 | 13,293 | ||||||||||||||||||||||
Total | $ | 741,925 | $ | 4,576 | $ | 1,647 | $ | 460 | $ | 6,683 | $ | 36,474 | $ | 785,082 | |||||||||||||||
Percent of total loans | 94.5 | % | 0.6 | % | 0.2 | % | 0.1 | % | 0.9 | % | 4.6 | % | |||||||||||||||||
Management evaluates the adequacy of the allowance for credit losses at least quarterly and adjusts the provision for credit losses based on this analysis. The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the three months ended September 30, 2013 and 2012. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 4,346 | $ | 4,259 | $ | 5,514 | $ | 1,216 | $ | 301 | $ | 87 | $ | 15,723 | |||||||||||||||
Charge-offs | -18,539 | -4,225 | -4,056 | -196 | -3 | - | -27,019 | ||||||||||||||||||||||
Recoveries | 3 | 51 | 20 | 47 | 16 | - | 137 | ||||||||||||||||||||||
Net charge-offs | -18,536 | -4,174 | -4,036 | -149 | 13 | - | -26,882 | ||||||||||||||||||||||
Provision | 16,180 | 3,645 | 2,090 | 205 | -44 | 384 | 22,460 | ||||||||||||||||||||||
Ending balance | $ | 1,990 | $ | 3,730 | $ | 3,568 | $ | 1,272 | $ | 270 | $ | 471 | $ | 11,301 | |||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,845 | $ | 4,237 | $ | 3,952 | $ | 1,063 | $ | 304 | $ | 408 | $ | 12,990 | |||||||||||||||
Charge-offs | -3,222 | -2,323 | -742 | -73 | -31 | - | -6,391 | ||||||||||||||||||||||
Recoveries | 5 | 5 | 116 | 22 | 8 | - | 156 | ||||||||||||||||||||||
Net charge-offs | -3,217 | -2,318 | -626 | -51 | -23 | - | -6,235 | ||||||||||||||||||||||
Provision | 3,699 | 2,268 | 275 | 524 | -158 | -408 | 6,200 | ||||||||||||||||||||||
Ending balance | $ | 3,327 | $ | 4,187 | $ | 3,601 | $ | 1,536 | $ | 304 | $ | - | $ | 12,955 | |||||||||||||||
The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 4,387 | $ | 5,194 | $ | 4,134 | $ | 1,682 | $ | 407 | $ | 187 | $ | 15,991 | |||||||||||||||
Charge-offs | -20,048 | -6,114 | -6,003 | -419 | -65 | - | -32,649 | ||||||||||||||||||||||
Recoveries | 5 | 349 | 113 | 149 | 33 | - | 649 | ||||||||||||||||||||||
Net charge-offs | -20,043 | -5,765 | -5,890 | -270 | -32 | - | -32,000 | ||||||||||||||||||||||
Provision | 17,646 | 4,301 | 5,324 | -140 | -105 | 284 | 27,310 | ||||||||||||||||||||||
Ending balance | $ | 1,990 | $ | 3,730 | $ | 3,568 | $ | 1,272 | $ | 270 | $ | 471 | $ | 11,301 | |||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,745 | $ | 5,014 | $ | 3,415 | $ | 1,498 | $ | 594 | $ | 22 | $ | 14,288 | |||||||||||||||
Charge-offs | -5,008 | -7,996 | -2,177 | -4,513 | -208 | - | -19,902 | ||||||||||||||||||||||
Recoveries | 5 | 99 | 123 | 230 | 17 | - | 474 | ||||||||||||||||||||||
Net charge-offs | -5,003 | -7,897 | -2,054 | -4,283 | -191 | - | -19,428 | ||||||||||||||||||||||
Provision | 4,585 | 7,070 | 2,240 | 4,321 | -99 | -22 | 18,095 | ||||||||||||||||||||||
Ending balance | $ | 3,327 | $ | 4,187 | $ | 3,601 | $ | 1,536 | $ | 304 | $ | - | $ | 12,955 | |||||||||||||||
Other_Assets
Other Assets | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Other Assets Disclosure [Text Block] | ' | |||||||
Note 5 – Other Assets | ||||||||
The Company had the following other assets at September 30, 2013 and December 31, 2012. | ||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||
Nonmarketable investment securities | $ | 2,058 | $ | 2,750 | ||||
Accrued interest receivable | 2,769 | 2,796 | ||||||
Insurance premiums receivable | 719 | 1,089 | ||||||
Income taxes receivable | 12,698 | 5,160 | ||||||
Deferred income taxes | 9,740 | 9,180 | ||||||
Prepaid expenses | 1,209 | 2,227 | ||||||
Other assets | 9,090 | 5,634 | ||||||
Total | $ | 38,283 | $ | 28,836 | ||||
Other_Liabilities
Other Liabilities | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Other Liabilities Disclosure [Text Block] | ' | |||||||
Note 6 – Other Liabilities | ||||||||
The Company had the following other liabilities at September 30, 2013 and December 31, 2012. | ||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||
Accrued interest payable | $ | 271 | $ | 339 | ||||
Other accounts payable | 3,824 | 3,657 | ||||||
Deferred compensation liability | 1,481 | 2,431 | ||||||
Other liabilities | 1,926 | 2,320 | ||||||
Total | $ | 7,502 | $ | 8,747 | ||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | |||||||||||||
Note 7 - Stock-Based Compensation | ||||||||||||||
As of September 30, 2013, the Company maintained the Shore Bancshares, Inc. 2006 Stock and Incentive Compensation Plan (“2006 Equity Plan”) under which it may issue shares of common stock or grant other equity-based awards. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date over a three- to five-year period of time, and, in the case of stock options, expire 10 years from the grant date. Stock-based compensation expense is recognized ratably over the requisite service period for all awards, is based on the grant-date fair value and reflects forfeitures as they occur. | ||||||||||||||
The following tables provide information on stock-based compensation expense for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Stock-based compensation expense | $ | 18 | $ | 33 | $ | 58 | $ | 174 | ||||||
Excess tax expense related to stock- | - | - | 26 | 106 | ||||||||||
based compensation | ||||||||||||||
September 30, | ||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||
Unrecognized stock-based compensation | $ | 112 | $ | 178 | ||||||||||
expense | ||||||||||||||
Weighted average period unrecognized | 1.7 years | 2.2 years | ||||||||||||
expense is expected to be recognized | ||||||||||||||
The following table summarizes restricted stock award activity for the Company under the 2006 Equity Plan for the nine months ended September 30, 2013. | ||||||||||||||
Number | Weighted Average Grant | |||||||||||||
of Shares | Date Fair Value | |||||||||||||
Nonvested at beginning of period | 6,548 | $ | 14.89 | |||||||||||
Granted | 3,930 | 6.81 | ||||||||||||
Vested | -6,548 | 14.89 | ||||||||||||
Cancelled | - | - | ||||||||||||
Nonvested at end of period | 3,930 | $ | 6.81 | |||||||||||
The following table summarizes stock option activity for the Company under the 2006 Equity Plan for the nine months ended September 30, 2013. | ||||||||||||||
Weighted | Weighted Average | |||||||||||||
Number | Average | Grant Date | ||||||||||||
of Shares | Exercise Price | Fair Value | ||||||||||||
Outstanding at beginning of period | 54,216 | $ | 6.64 | $ | 3.44 | |||||||||
Granted | - | - | - | |||||||||||
Exercised | - | - | - | |||||||||||
Expired/Cancelled | - | - | - | |||||||||||
Outstanding at end of period | 54,216 | $ | 6.64 | $ | 3.44 | |||||||||
Exercisable at end of period | - | $ | - | $ | - | |||||||||
The Company estimates the fair value of stock options using the Black-Scholes valuation model with weighted average assumptions for dividend yield, expected volatility, risk-free interest rate and expected contract life (in years). The expected dividend yield is calculated by dividing the total expected annual dividend payout by the average stock price. The expected volatility is based on historical volatility of the underlying securities. The risk-free interest rate is based on the Federal Reserve Bank’s constant maturities daily interest rate in effect at grant date. The expected contract life of the options represents the period of time that the Company expects the awards to be outstanding based on historical experience with similar awards. The following weighted average assumptions were used as inputs to the Black-Scholes valuation model for options outstanding at September 30, 2013. | ||||||||||||||
Dividend yield | 0.6 | % | ||||||||||||
Expected volatility | 58.65 | % | ||||||||||||
Risk-free interest rate | 1.69 | % | ||||||||||||
Expected contract life (in years) | 5.83 | |||||||||||||
At the end of the third quarter of 2013, the aggregate intrinsic value of the options outstanding under the 2006 Equity Plan was $117 thousand based on the $8.80 market value per share of Shore Bancshares, Inc.’s common stock at September 30, 2013. Since there were no options exercised during the first nine months of 2013 or 2012, there was no intrinsic value associated with stock options exercised and no cash received on exercise of options. At September 30, 2013, the weighted average remaining contract life of options outstanding was 8.5 years. | ||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||||||||
Note 8 – Accumulated Other Comprehensive Income | |||||||||||
The Company records unrealized holding gains (losses), net of tax, on investment securities available for sale and on cash flow hedging activities as accumulated other comprehensive income (loss), a separate component of stockholders’ equity. The following table provides information on the changes in the components of accumulated other comprehensive income (loss) for the nine months ended September 30, 2013 and 2012. | |||||||||||
(Dollars in thousands) | Accumulated net | Accumulated net | Accumulated | ||||||||
unrealized holding | unrealized holding | other | |||||||||
gains (losses) on | gains (losses) on | comprehensive | |||||||||
available for sale | cash flow hedging | income (loss) | |||||||||
securities | activities | ||||||||||
Balance, December 31, 2012 | $ | 1,894 | $ | -1,186 | $ | 708 | |||||
Other comprehensive (loss) income | -1,889 | 407 | -1,482 | ||||||||
Reclassification of (gains) losses recognized | -545 | 779 | 234 | ||||||||
Balance, September 30, 2013 | $ | -540 | $ | - | $ | -540 | |||||
Balance, December 31, 2011 | $ | 1,370 | $ | -3,059 | $ | -1,689 | |||||
Other comprehensive income | 910 | 751 | 1,661 | ||||||||
Reclassification of gains recognized | -166 | - | -166 | ||||||||
Balance, September 30, 2012 | $ | 2,114 | $ | -2,308 | $ | -194 | |||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | |||||||||||||||||||
Note 9 – Fair Value Measurements | ||||||||||||||||||||
Accounting guidance under GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This accounting guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | ||||||||||||||||||||
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available for sale and derivative assets and liabilities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, loans held for sale and other real estate and other assets owned (foreclosed assets). These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. | ||||||||||||||||||||
Under fair value accounting guidance, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine their fair values. These hierarchy levels are: | ||||||||||||||||||||
Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. | ||||||||||||||||||||
Level 2 inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. | ||||||||||||||||||||
Level 3 inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. | ||||||||||||||||||||
Below is a discussion on the Company’s assets measured at fair value on a recurring basis. | ||||||||||||||||||||
Investment Securities Available for Sale | ||||||||||||||||||||
Fair value measurement for investment securities available for sale is based on quoted prices from an independent pricing service. The fair value measurements consider observable data that may include present value of future cash flows, prepayment assumptions, credit loss assumptions and other factors. The Company classifies its investments in U.S. Treasury securities as Level 1 in the fair value hierarchy, and it classifies its investments in U.S. Government agencies securities and mortgage-backed securities issued or guaranteed by U.S. Government sponsored entities as Level 2. | ||||||||||||||||||||
Derivative Assets | ||||||||||||||||||||
Derivative instruments held by the Company for risk management purposes are traded in over-the-counter markets where quoted market prices are not readily available. For those derivatives, the Company measures fair value using third-party models that use primarily market observable inputs, such as yield curves and option volatilities, and include the value associated with counterparty credit risk. The Company classifies its derivative instruments held for risk management purposes as Level 2 in the fair value hierarchy and includes them in other assets in the accompanying consolidated balance sheets. As of September 30, 2013, the Company had no derivative instruments. At December 31, 2012, the Company’s derivative instruments consisted solely of interest rate caps. | ||||||||||||||||||||
The tables below present the recorded amount of assets measured at fair value on a recurring basis at September 30, 2013 and December 31, 2012. No assets were transferred from one hierarchy level to another during the first nine months of 2013 or 2012. | ||||||||||||||||||||
Significant | ||||||||||||||||||||
Other | Significant | |||||||||||||||||||
Quoted | Observable | Unobservable | ||||||||||||||||||
Prices | Inputs | Inputs | ||||||||||||||||||
(Dollars in thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. Treasury | $ | 5,369 | $ | 5,369 | $ | - | $ | - | ||||||||||||
U.S. Government agencies | 46,214 | - | 46,214 | - | ||||||||||||||||
Mortgage-backed securities | 83,671 | - | 83,671 | - | ||||||||||||||||
Other equity securities | 608 | - | 608 | - | ||||||||||||||||
Total | $ | 135,862 | $ | 5,369 | $ | 130,493 | $ | - | ||||||||||||
Interest rate caps | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Significant | ||||||||||||||||||||
Other | Significant | |||||||||||||||||||
Quoted | Observable | Unobservable | ||||||||||||||||||
Prices | Inputs | Inputs | ||||||||||||||||||
(Dollars in thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. Government agencies | $ | 36,107 | $ | - | $ | 36,107 | $ | - | ||||||||||||
Mortgage-backed securities | 108,780 | - | 108,780 | - | ||||||||||||||||
Other equity securities | 621 | - | 621 | - | ||||||||||||||||
Total | $ | 145,508 | $ | - | $ | 145,508 | $ | - | ||||||||||||
Interest rate caps | $ | 14 | $ | - | $ | 14 | $ | - | ||||||||||||
Below is a discussion on the Company’s assets measured at fair value on a nonrecurring basis. | ||||||||||||||||||||
Loans held for sale | ||||||||||||||||||||
Loans held for sale are adjusted for fair value upon transfer of loans to loans held for sale. Subsequently, loans held for sale are carried at the lower of carrying value and fair value. Fair value is based on independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. At September 30, 2013, loans held for sale were classified as Level 3 in the fair value hierarchy. | ||||||||||||||||||||
Loans | ||||||||||||||||||||
The Company does not record loans at fair value on a recurring basis; however, from time to time, a loan is considered impaired and a valuation allowance may be established if there are losses associated with the loan. Loans are considered impaired if it is probable that payment of interest and principal will not be made in accordance with contractual terms. The fair value of impaired loans can be estimated using one of several methods, including the collateral value, market value of similar debt, liquidation value and discounted cash flows. At September 30, 2013 and December 31, 2012, substantially all impaired loans were evaluated based on the fair value of the collateral and were classified as Level 3 in the fair value hierarchy. | ||||||||||||||||||||
Other Real Estate and Other Assets Owned (Foreclosed Assets) | ||||||||||||||||||||
Foreclosed assets are adjusted for fair value upon transfer of loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value and fair value. Fair value is based on independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. At September 30, 2013 and December 31, 2012, foreclosed assets were classified as Level 3 in the fair value hierarchy. | ||||||||||||||||||||
The tables below summarize the changes in the recorded amount of assets measured at fair value on a nonrecurring basis for the nine months ended September 30, 2013 and 2012. All assets measured at fair value on a nonrecurring basis were classified as Level 3 in the fair value hierarchy for the periods presented. | ||||||||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Total | ||||||||||||||
real estate | real estate | |||||||||||||||||||
For the nine months ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Impaired loans: | ||||||||||||||||||||
Beginning balance | $ | 36,088 | $ | 17,951 | $ | 31,833 | $ | 715 | $ | 39 | $ | 86,626 | ||||||||
Charge-offs | -19,377 | -4,664 | -6,893 | -90 | -38 | -31,062 | ||||||||||||||
Payments | -1,510 | -2,183 | -8,170 | -47 | -13 | -11,923 | ||||||||||||||
Transferred to loans held for sale | -9,820 | -5,492 | -6,795 | - | - | -22,107 | ||||||||||||||
Transferred to other real estate owned | -205 | -729 | -1,601 | - | - | -2,535 | ||||||||||||||
Returned to performing status | - | -2,448 | -1,075 | - | - | -3,523 | ||||||||||||||
Changed to nonaccrual status | - | -1,626 | -1,741 | - | - | -3,367 | ||||||||||||||
Additions | 3,821 | 20,764 | 8,747 | 374 | 44 | 33,750 | ||||||||||||||
Changes in allowance | 519 | -326 | 159 | -305 | -13 | 34 | ||||||||||||||
Ending balance | $ | 9,516 | $ | 21,247 | $ | 14,464 | $ | 647 | $ | 19 | $ | 45,893 | ||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Total | ||||||||||||||
real estate | real estate | |||||||||||||||||||
For the nine months ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Impaired loans: | ||||||||||||||||||||
Beginning balance | $ | 27,166 | $ | 22,602 | $ | 23,578 | $ | 1,738 | $ | 28 | $ | 75,112 | ||||||||
Charge-offs | -4,965 | -7,628 | -2,177 | -1,264 | - | -16,034 | ||||||||||||||
Payments | -976 | -8,405 | -1,858 | -105 | -4 | -11,348 | ||||||||||||||
Transferred to loans held for sale | - | - | - | - | - | - | ||||||||||||||
Transferred to other real estate owned | -1,631 | -1,463 | -1,334 | -30 | - | -4,458 | ||||||||||||||
Returned to performing status | - | -201 | - | -39 | - | -240 | ||||||||||||||
Changed to nonaccrual status | -666 | -786 | - | - | - | -1,452 | ||||||||||||||
Additions | 20,856 | 14,256 | 10,693 | 1,346 | 30 | 47,181 | ||||||||||||||
Changes in allowance | 151 | 1,296 | - | - | - | 1,447 | ||||||||||||||
Ending balance | $ | 39,935 | $ | 19,671 | $ | 28,902 | $ | 1,646 | $ | 54 | $ | 90,208 | ||||||||
For the Nine Months | ||||||||||||||||||||
Ended | ||||||||||||||||||||
(Dollars in thousands) | September 30, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Other real estate owned: | ||||||||||||||||||||
Beginning balance | $ | 7,659 | $ | 9,385 | ||||||||||||||||
Sales | -3,793 | -4,605 | ||||||||||||||||||
Write-downs | -947 | -1,077 | ||||||||||||||||||
Additions | 2,857 | 4,715 | ||||||||||||||||||
Ending balance | $ | 5,776 | $ | 8,418 | ||||||||||||||||
The following information relates to the estimated fair values of financial assets and liabilities that are reported in the Company’s consolidated balance sheets at their carrying amounts. The discussion below describes the methods and assumptions used to estimate the fair value of each class of financial asset and liability for which it is practicable to estimate that value. | ||||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||
Cash equivalents include interest-bearing deposits with other banks and federal funds sold. For these short-term instruments, the carrying amount is a reasonable estimate of fair value. | ||||||||||||||||||||
Investment Securities Held to Maturity | ||||||||||||||||||||
For all investments in debt securities, fair values are based on quoted market prices. If a quoted market price is not available, then fair value is estimated using quoted market prices for similar securities. | ||||||||||||||||||||
Loans | ||||||||||||||||||||
The fair values of categories of fixed rate loans, such as commercial loans, residential real estate, and other consumer loans, are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Other loans, including variable rate loans, are adjusted for differences in loan characteristics. | ||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||
The fair values of demand deposits, savings accounts, and certain money market deposits are the amounts payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. These estimates do not take into consideration the value of core deposit intangibles. Generally, the carrying amount of short-term borrowings is a reasonable estimate of fair value. The fair values of securities sold under agreements to repurchase (included in short-term borrowings) and long-term debt are estimated using the rates offered for similar borrowings. | ||||||||||||||||||||
Commitments to Extend Credit and Standby Letters of Credit | ||||||||||||||||||||
The majority of the Company’s commitments to grant loans and standby letters of credit are written to carry current market interest rates if converted to loans. In general, commitments to extend credit and letters of credit are not assignable by the Company or the borrower, so they generally have value only to the Company and the borrower. Therefore, it is impractical to assign any value to these commitments. | ||||||||||||||||||||
The following table provides information on the estimated fair values of the Company’s financial assets and liabilities that are reported in the balance sheets at their carrying amounts. The financial assets and liabilities have been segregated by their classification level in the fair value hierarchy. | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Estimated | Estimated | |||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||
(Dollars in thousands) | Amount | Value | Amount | Value | ||||||||||||||||
Financial assets | ||||||||||||||||||||
Level 2 inputs | ||||||||||||||||||||
Cash and cash equivalents | $ | 106,922 | $ | 106,922 | $ | 200,193 | $ | 200,193 | ||||||||||||
Investment securities held to maturity | 2,357 | 2,471 | 2,657 | 2,884 | ||||||||||||||||
Level 3 inputs | ||||||||||||||||||||
Loans, net | 707,326 | 728,466 | 769,091 | 798,381 | ||||||||||||||||
Financial liabilities | ||||||||||||||||||||
Level 2 inputs | ||||||||||||||||||||
Deposits | $ | 930,413 | $ | 929,587 | $ | 1,049,273 | $ | 1,052,382 | ||||||||||||
Short-term borrowings | 11,468 | 11,468 | 13,761 | 13,761 | ||||||||||||||||
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' |
Note 10 – Derivative Instruments and Hedging Activities | |
Accounting guidance under GAAP defines derivatives, requires that derivatives be carried at fair value on the balance sheet and provides for hedge accounting when certain conditions are met. Changes in the fair values of derivative instruments designated as “cash flow” hedges, to the extent the hedges are highly effective, are recorded in other comprehensive income, net of taxes. Ineffective portions of cash flow hedges, if any, are recognized in current period earnings. The net interest settlement on cash flow hedges is treated as an adjustment of the interest income or interest expense of the hedged assets or liabilities. The Company uses derivative instruments to hedge its exposure to changes in interest rates. The Company does not use derivatives for any trading or other speculative purposes. | |
During the second quarter of 2009, the Company purchased interest rate caps for $7.1 million to effectively fix the interest rate at 2.97% for five years on $70 million of the Company’s money market deposit accounts. These money market deposit accounts were associated with the Promontory Insured Network Deposits Program (the “IND Program”) in which the Company participated. In December 2012, the Company decided to partially exit the IND Program in an effort to reduce its excess liquidity and, in the second quarter of 2013, the Company fully exited the IND Program. Money market deposit accounts declined from $279 million at December 31, 2012 to $204.3 million at September 30, 2013, primarily due to exiting the IND Program. When the Company fully exited the IND Program, the interest rate caps used to hedge the interest rates on these deposits were terminated. Because the interest rate caps qualified for hedge accounting, a $1.3 million loss on the ineffective portion of the cash flow hedge was recognized in the second quarter of 2013. | |
The aggregate fair value of the interest rate caps was $14 thousand at December 31, 2012. The adjustments that reduced the balance to $0 at September 30, 2013 included an increase of $681 thousand to reflect unrealized holding gains and a decrease of $695 thousand to reflect the charge to interest expense associated with the hedged money market deposit accounts. The comparable amounts for the first nine months of 2012 were $1.3 million and $1.5 million, respectively. | |
By entering into derivative instrument contracts, the Company exposes itself, from time to time, to counterparty credit risk. Counterparty credit risk is the risk that the counterparty will fail to perform under the terms of the derivative contract. When the fair value of a derivative contract is in an asset position, the counterparty has a liability to the Company, which creates credit risk for the Company. The Company attempts to minimize this risk by selecting counterparties with investment grade credit ratings, limiting its exposure to any single counterparty and regularly monitoring its market position with each counterparty. Collateral required by the counterparties, recorded in other liabilities, was $0 and $428 thousand at September 30, 2013 and December 31, 2012, respectively. | |
Financial_Instruments_with_Off
Financial Instruments with Off-Balance Sheet Risk | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | ' | |||||||
Financial Instruments With Off Balance Sheet Risk Disclosure [Text Block] | ' | |||||||
Note 11 – Financial Instruments with Off-Balance Sheet Risk | ||||||||
In the normal course of business, to meet the financial needs of its customers, the Company’s bank subsidiaries are parties to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Letters of credit are conditional commitments issued by the Company’s bank subsidiaries to guarantee the performance of a customer to a third party. Letters of credit and other commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the letters of credit and commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. | ||||||||
The following table provides information on commitments outstanding at September 30, 2013 and December 31, 2012. | ||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||
Commitments to extend credit | $ | 129,572 | $ | 141,518 | ||||
Letters of credit | 12,286 | 12,817 | ||||||
Total | $ | 141,858 | $ | 154,335 | ||||
Segment_Reporting
Segment Reporting | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||||
Note 12 – Segment Reporting | ||||||||||||||
The Company operates two primary business segments: Community Banking and Insurance Products and Services. Through the Community Banking business, the Company provides services to consumers and small businesses on the Eastern Shore of Maryland and Delaware through its 18-branch network. Community banking activities include small business services, retail brokerage, trust services and consumer banking products and services. Loan products available to consumers include mortgage, home equity, automobile, marine, and installment loans, credit cards and other secured and unsecured personal lines of credit. Small business lending includes commercial mortgages, real estate development loans, equipment and operating loans, as well as secured and unsecured lines of credit, credit cards, accounts receivable financing arrangements, and merchant card services. | ||||||||||||||
Through the Insurance Products and Services business, the Company provides a full range of insurance products and services to businesses and consumers in the Company’s market areas. Products include property and casualty, life, marine, individual health and long-term care insurance. Pension and profit sharing plans and retirement plans for executives and employees are available to suit the needs of individual businesses. | ||||||||||||||
The following table includes selected financial information by business segments for the first nine months of 2013 and 2012. | ||||||||||||||
Community | Insurance Products | Parent | Consolidated | |||||||||||
(Dollars in thousands) | Banking | and Services | Company | Total | ||||||||||
2013 | ||||||||||||||
Interest income | $ | 31,509 | $ | 35 | $ | - | $ | 31,544 | ||||||
Interest expense | -5,238 | - | - | -5,238 | ||||||||||
Provision for credit losses | -27,310 | - | - | -27,310 | ||||||||||
Noninterest income | 4,192 | 9,046 | 6 | 13,244 | ||||||||||
Noninterest expense | -17,449 | -7,638 | -5,131 | -30,218 | ||||||||||
Net intersegment (expense) income | -3,982 | -530 | 4,512 | - | ||||||||||
(Loss) income before taxes | -18,278 | 913 | -613 | -17,978 | ||||||||||
Income tax benefit (expense) | 7,289 | -364 | 244 | 7,169 | ||||||||||
Net (loss) income | $ | -10,989 | $ | 549 | $ | -369 | $ | -10,809 | ||||||
Total assets | $ | 1,032,956 | $ | 15,973 | $ | 2,455 | $ | 1,051,384 | ||||||
2012 | ||||||||||||||
Interest income | $ | 34,882 | $ | 59 | $ | - | $ | 34,941 | ||||||
Interest expense | -7,967 | - | -16 | -7,983 | ||||||||||
Provision for credit losses | -18,095 | - | - | -18,095 | ||||||||||
Noninterest income | 5,089 | 7,974 | 89 | 13,152 | ||||||||||
Noninterest expense | -17,969 | -7,407 | -4,494 | -29,870 | ||||||||||
Net intersegment (expense) income | -3,903 | -392 | 4,295 | - | ||||||||||
(Loss) income before taxes | -7,963 | 234 | -126 | -7,855 | ||||||||||
Income tax benefit (expense) | 3,336 | -98 | 53 | 3,291 | ||||||||||
Net (loss) income | $ | -4,627 | $ | 136 | $ | -73 | $ | -4,564 | ||||||
Total assets | $ | 1,159,766 | $ | 16,920 | $ | 1,947 | $ | 1,178,633 | ||||||
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Note 13 – Subsequent Event | |
After the third quarter and nine-month financial results for the Company were reported in its press release dated October 28, 2013, it was determined that the accounting and presentation in the financial statements for the losses recognized in connection with the execution of agreements by the Company's wholly owned subsidiary, The Talbot Bank of Easton (the “Bank”), to sell loans and other real estate owned (the “Asset Sale”) required modification. The transaction originally was reported in noninterest income as a $19.8 million loss on the Asset Sale. The revised accounting and presentation in this Form 10-Q reflect loan charge-offs of $19.6 million on loans associated with the Asset Sale and a subsequent provision for credit losses of $19.6 million. The write-downs of $182 thousand on other real estate owned associated with the Asset Sale are reflected in noninterest expense. Net loss for the three and nine months ended September 30, 2013 was not impacted by the modification. See additional details on the Asset Sale in the following Management’s Discussion and Analysis of Financial Condition and Results of Operations. | |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent Accounting Standards | |
Accounting Standards Update (“ASU”) 2012-02, “Intangibles – Goodwill and Other (Accounting Standards Codification (“ASC”) Topic 350) – Testing Indefinite-Lived Intangible Assets for Impairment.” ASU 2012-02 gives entities the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events or circumstances, an entity determines it is more likely than not that an indefinite-lived intangible asset is impaired, then the entity must perform the quantitative impairment test. If, under the quantitative impairment test, the carrying amount of the intangible asset exceeds its fair value, an entity should recognize an impairment loss in the amount of that excess. Permitting an entity to assess qualitative factors when testing indefinite-lived intangible assets for impairment results in guidance that is similar to the goodwill impairment testing guidance in ASU 2011-08. ASU 2012-02 became effective for the Company on January 1, 2013, and did not have a significant impact on the Company’s financial statements. | |
ASU 2013-04, “Liabilities (ASC Topic 405) - Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date.” ASU 2013-04 provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. This guidance requires an entity to measure the obligation as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and any additional amount the reporting entity expects to pay on behalf of its co-obligors. This guidance also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. ASU 2013-04 is effective for the Company beginning January 1, 2014 and is not expected to have a significant impact on the Company’s financial statements. | |
EarningsLoss_Per_Share_Tables
Earnings/(Loss) Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||||
The following table provides information relating to the calculation of earnings/(loss) per common share: | ||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(In thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Net loss | $ | -11,392 | $ | -1,821 | $ | -10,809 | $ | -4,564 | ||||||
Weighted average shares outstanding - Basic | 8,461 | 8,457 | 8,460 | 8,457 | ||||||||||
Dilutive effect of common stock equivalents | - | - | - | - | ||||||||||
Weighted average shares outstanding - Diluted | 8,461 | 8,457 | 8,460 | 8,457 | ||||||||||
Loss per common share - Basic | $ | -1.35 | $ | -0.22 | $ | -1.28 | $ | -0.54 | ||||||
Loss per common share - Diluted | $ | -1.35 | $ | -0.22 | $ | -1.28 | $ | -0.54 | ||||||
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | |||||||||||||||||||
The following table provides information on the amortized cost and estimated fair values of investment securities. | ||||||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
(Dollars in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||
Obligations of U.S. Treasury | $ | 5,375 | $ | - | $ | 6 | $ | 5,369 | ||||||||||||
Obligations of U.S. Government agencies and corporations | 46,552 | 56 | 394 | 46,214 | ||||||||||||||||
Mortgage-backed securities | 84,234 | 389 | 952 | 83,671 | ||||||||||||||||
Equity securities | 606 | 2 | - | 608 | ||||||||||||||||
Total | $ | 136,767 | $ | 447 | $ | 1,352 | $ | 135,862 | ||||||||||||
December 31, 2012: | ||||||||||||||||||||
Obligations of U.S. Government agencies and corporations | $ | 35,213 | $ | 903 | $ | 9 | $ | 36,107 | ||||||||||||
Mortgage-backed securities | 106,524 | 2,464 | 208 | 108,780 | ||||||||||||||||
Equity securities | 596 | 25 | - | 621 | ||||||||||||||||
Total | $ | 142,333 | $ | 3,392 | $ | 217 | $ | 145,508 | ||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||
September 30, 2013: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,357 | $ | 114 | $ | - | $ | 2,471 | ||||||||||||
December 31, 2012: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,657 | $ | 227 | $ | - | $ | 2,884 | ||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | ' | |||||||||||||||||||
The following table provides information about gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position at September 30, 2013. | ||||||||||||||||||||
Less than | More than | Total | ||||||||||||||||||
12 Months | 12 Months | |||||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
U.S. Treasury | $ | 5,369 | $ | 6 | $ | - | $ | - | $ | 5,369 | $ | 6 | ||||||||
U.S. Gov’t. agencies and corporations | 30,603 | 394 | - | - | 30,603 | 394 | ||||||||||||||
Mortgage-backed securities | 56,177 | 952 | - | - | 56,177 | 952 | ||||||||||||||
Total | $ | 92,149 | $ | 1,352 | $ | - | $ | - | $ | 92,149 | $ | 1,352 | ||||||||
Schedule of Securities Debt Maturities [Table Text Block] | ' | |||||||||||||||||||
The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at September 30, 2013. | ||||||||||||||||||||
Available for sale | Held to maturity | |||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||||||
(Dollars in thousands) | Cost | Fair Value | Cost | Fair Value | ||||||||||||||||
Due in one year or less | $ | 6,055 | $ | 6,066 | $ | 413 | $ | 419 | ||||||||||||
Due after one year through five years | 42,500 | 42,372 | 433 | 454 | ||||||||||||||||
Due after five years through ten years | 3,894 | 3,936 | 1,007 | 1,077 | ||||||||||||||||
Due after ten years | 83,712 | 82,880 | 504 | 521 | ||||||||||||||||
136,161 | 135,254 | 2,357 | 2,471 | |||||||||||||||||
Equity securities | 606 | 608 | - | - | ||||||||||||||||
Total | $ | 136,767 | $ | 135,862 | $ | 2,357 | $ | 2,471 | ||||||||||||
Loans_and_allowance_for_credit1
Loans and allowance for credit losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following table provides information about the principal classes of the loan portfolio at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||
Construction | $ | 68,971 | $ | 108,051 | |||||||||||||||||||||||||
Residential real estate | 280,153 | 288,011 | |||||||||||||||||||||||||||
Commercial real estate | 303,154 | 314,941 | |||||||||||||||||||||||||||
Commercial | 55,101 | 60,786 | |||||||||||||||||||||||||||
Consumer | 11,248 | 13,293 | |||||||||||||||||||||||||||
Total loans | 718,627 | 785,082 | |||||||||||||||||||||||||||
Allowance for credit losses | -11,301 | -15,991 | |||||||||||||||||||||||||||
Total loans, net | $ | 707,326 | $ | 769,091 | |||||||||||||||||||||||||
Allowance for Credit Losses on Loans Receivables Additional Information [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following tables include impairment information relating to loans and the allowance for credit losses as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 9,938 | $ | 22,171 | $ | 14,919 | $ | 952 | $ | 80 | $ | - | $ | 48,060 | |||||||||||||||
Loans collectively evaluated for impairment | 59,033 | 257,982 | 288,235 | 54,149 | 11,168 | - | 670,567 | ||||||||||||||||||||||
Total loans | $ | 68,971 | $ | 280,153 | $ | 303,154 | $ | 55,101 | $ | 11,248 | $ | - | $ | 718,627 | |||||||||||||||
Allowance for credit losses allocated to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 422 | $ | 924 | $ | 455 | $ | 305 | $ | 61 | $ | - | $ | 2,167 | |||||||||||||||
Loans collectively evaluated for impairment | 1,568 | 2,806 | 3,113 | 967 | 209 | 471 | 9,134 | ||||||||||||||||||||||
Total allowance for credit losses | $ | 1,990 | $ | 3,730 | $ | 3,568 | $ | 1,272 | $ | 270 | $ | 471 | $ | 11,301 | |||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 37,029 | $ | 18,549 | $ | 32,447 | $ | 715 | $ | 87 | $ | - | $ | 88,827 | |||||||||||||||
Loans collectively evaluated for impairment | 71,022 | 269,462 | 282,494 | 60,071 | 13,206 | - | 696,255 | ||||||||||||||||||||||
Total loans | $ | 108,051 | $ | 288,011 | $ | 314,941 | $ | 60,786 | $ | 13,293 | $ | - | $ | 785,082 | |||||||||||||||
Allowance for credit losses allocated to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 941 | $ | 598 | $ | 614 | $ | - | $ | 48 | $ | - | $ | 2,201 | |||||||||||||||
Loans collectively evaluated for impairment | 3,446 | 4,596 | 3,520 | 1,682 | 359 | 187 | 13,790 | ||||||||||||||||||||||
Total allowance for credit losses | $ | 4,387 | $ | 5,194 | $ | 4,134 | $ | 1,682 | $ | 407 | $ | 187 | $ | 15,991 | |||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following tables provide information on impaired loans and any related allowance by loan class as of September 30, 2013 and December 31, 2012. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid | Recorded | Recorded | Related | Quarter-to- | Year-to-date | |||||||||||||||||||||||
principal | investment | investment | allowance | date average | average | ||||||||||||||||||||||||
balance | with no | with an | recorded | recorded | |||||||||||||||||||||||||
allowance | allowance | investment | investment | ||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||
Impaired nonaccrual loans: | |||||||||||||||||||||||||||||
Construction | $ | 11,863 | $ | 6,582 | $ | 1,457 | $ | 421 | $ | 9,672 | $ | 8,654 | |||||||||||||||||
Residential real estate | 7,486 | 4,082 | 1,323 | 309 | 10,825 | 10,921 | |||||||||||||||||||||||
Commercial real estate | 6,287 | 1,825 | 1,517 | 255 | 7,607 | 9,905 | |||||||||||||||||||||||
Commercial | 1,678 | 546 | 122 | 122 | 656 | 595 | |||||||||||||||||||||||
Consumer | 54 | 19 | 28 | 28 | 43 | 44 | |||||||||||||||||||||||
Total | 27,368 | 13,054 | 4,447 | 1,135 | 28,803 | 30,119 | |||||||||||||||||||||||
Impaired accruing restructured loans: | |||||||||||||||||||||||||||||
Construction | 1,899 | 1,804 | 95 | 1 | 14,462 | 20,834 | |||||||||||||||||||||||
Residential real estate | 16,735 | 14,347 | 2,388 | 584 | 11,290 | 9,225 | |||||||||||||||||||||||
Commercial real estate | 10,704 | 9,439 | 1,265 | 92 | 12,849 | 15,331 | |||||||||||||||||||||||
Commercial | 101 | 101 | - | - | 105 | 112 | |||||||||||||||||||||||
Consumer | - | - | - | - | - | - | |||||||||||||||||||||||
Total | 29,439 | 25,691 | 3,748 | 677 | 38,706 | 45,502 | |||||||||||||||||||||||
Impaired adversely rated loans: | |||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | |||||||||||||||||||||||
Residential real estate | 31 | - | 31 | 31 | 16 | 8 | |||||||||||||||||||||||
Commercial real estate | 873 | - | 873 | 108 | 437 | 218 | |||||||||||||||||||||||
Commercial | 183 | - | 183 | 183 | 92 | 46 | |||||||||||||||||||||||
Consumer | 33 | - | 33 | 33 | 17 | 8 | |||||||||||||||||||||||
Total | 1,120 | - | 1,120 | 355 | 562 | 280 | |||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Construction | 13,762 | 8,386 | 1,552 | 422 | 24,134 | 29,488 | |||||||||||||||||||||||
Residential real estate | 24,252 | 18,429 | 3,742 | 924 | 22,131 | 20,154 | |||||||||||||||||||||||
Commercial real estate | 17,864 | 11,264 | 3,655 | 455 | 20,893 | 25,454 | |||||||||||||||||||||||
Commercial | 1,962 | 647 | 305 | 305 | 853 | 753 | |||||||||||||||||||||||
Consumer | 87 | 19 | 61 | 61 | 60 | 52 | |||||||||||||||||||||||
Total | $ | 57,927 | $ | 38,745 | $ | 9,315 | $ | 2,167 | $ | 68,071 | $ | 75,901 | |||||||||||||||||
(Dollars in thousands) | Unpaid | Recorded | Recorded | Related | Quarter-to- | Year-to-date | |||||||||||||||||||||||
principal | investment | investment with an | allowance | date average | average | ||||||||||||||||||||||||
balance | with no | allowance | recorded | recorded | |||||||||||||||||||||||||
allowance | investment | investment | |||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Impaired nonaccrual loans: | |||||||||||||||||||||||||||||
Construction | $ | 14,288 | $ | 3,371 | $ | 6,323 | $ | 941 | $ | 10,600 | $ | 12,428 | |||||||||||||||||
Residential real estate | 17,975 | 9,469 | 2,063 | 598 | 13,294 | 17,472 | |||||||||||||||||||||||
Commercial real estate | 19,515 | 11,838 | 2,729 | 614 | 13,554 | 12,975 | |||||||||||||||||||||||
Commercial | 1,556 | 594 | - | - | 1,126 | 1,538 | |||||||||||||||||||||||
Consumer | 92 | 39 | 48 | 48 | 50 | 55 | |||||||||||||||||||||||
Total | 53,426 | 25,311 | 11,163 | 2,201 | 38,624 | 44,468 | |||||||||||||||||||||||
Impaired accruing restructured loans: | |||||||||||||||||||||||||||||
Construction | 27,335 | 27,335 | - | - | 27,907 | 21,193 | |||||||||||||||||||||||
Residential real estate | 7,017 | 7,017 | - | - | 6,124 | 5,064 | |||||||||||||||||||||||
Commercial real estate | 17,880 | 17,880 | - | - | 17,433 | 16,252 | |||||||||||||||||||||||
Commercial | 121 | 121 | - | - | 105 | 87 | |||||||||||||||||||||||
Consumer | - | - | - | - | - | - | |||||||||||||||||||||||
Total | 52,353 | 52,353 | - | - | 51,569 | 42,596 | |||||||||||||||||||||||
Impaired adversely rated loans: | |||||||||||||||||||||||||||||
Construction | - | - | - | - | - | - | |||||||||||||||||||||||
Residential real estate | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial real estate | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | - | - | - | - | - | - | |||||||||||||||||||||||
Consumer | - | - | - | - | - | - | |||||||||||||||||||||||
Total | - | - | - | - | - | - | |||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Construction | 41,623 | 30,706 | 6,323 | 941 | 38,507 | 33,621 | |||||||||||||||||||||||
Residential real estate | 24,992 | 16,486 | 2,063 | 598 | 19,418 | 22,536 | |||||||||||||||||||||||
Commercial real estate | 37,395 | 29,718 | 2,729 | 614 | 30,987 | 29,227 | |||||||||||||||||||||||
Commercial | 1,677 | 715 | - | - | 1,231 | 1,625 | |||||||||||||||||||||||
Consumer | 92 | 39 | 48 | 48 | 50 | 55 | |||||||||||||||||||||||
Total | $ | 105,779 | $ | 77,664 | $ | 11,163 | $ | 2,201 | $ | 90,193 | $ | 87,064 | |||||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following tables provide information on loans that were modified and considered TDRs during the nine months ended September 30, 2013 and September 30, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Premodification | Postmodification | Related allowance | |||||||||||||||||||||||||
contracts | outstanding | outstanding | |||||||||||||||||||||||||||
recorded | recorded | ||||||||||||||||||||||||||||
investment | investment | ||||||||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Construction | 3 | $ | 218 | $ | 218 | $ | - | ||||||||||||||||||||||
Residential real estate | 6 | 11,758 | 11,772 | 38 | |||||||||||||||||||||||||
Commercial real estate | 4 | 2,212 | 2,211 | 82 | |||||||||||||||||||||||||
Commercial | - | - | - | - | |||||||||||||||||||||||||
Consumer | - | - | - | - | |||||||||||||||||||||||||
Total | 13 | $ | 14,188 | $ | 14,201 | $ | 120 | ||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||
Construction | 12 | $ | 17,347 | $ | 17,361 | $ | - | ||||||||||||||||||||||
Residential real estate | 11 | 3,382 | 3,044 | - | |||||||||||||||||||||||||
Commercial real estate | 7 | 7,270 | 7,429 | - | |||||||||||||||||||||||||
Commercial | 1 | 24 | 24 | - | |||||||||||||||||||||||||
Consumer | - | - | - | - | |||||||||||||||||||||||||
Total | 31 | $ | 28,023 | $ | 27,858 | $ | - | ||||||||||||||||||||||
Troubled Debt Restructurings that Defaulted on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following tables provide information on TDRs that defaulted during the nine months ended September 30, 2013 and September 30, 2012. Generally, a loan is considered in default when principal or interest is past due 90 days or more. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Recorded | Related allowance | ||||||||||||||||||||||||||
contracts | investment | ||||||||||||||||||||||||||||
TDRs that subsequently defaulted (1): | |||||||||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Construction | - | $ | - | $ | - | ||||||||||||||||||||||||
Residential real estate | 4 | 1,563 | - | ||||||||||||||||||||||||||
Commercial real estate | 1 | 1,741 | 74 | ||||||||||||||||||||||||||
Commercial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
Total | 5 | $ | 3,304 | $ | 74 | ||||||||||||||||||||||||
TDRs that subsequently defaulted (2): | |||||||||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||
Construction | 1 | $ | 666 | $ | - | ||||||||||||||||||||||||
Residential real estate | 3 | 913 | - | ||||||||||||||||||||||||||
Commercial real estate | - | - | - | ||||||||||||||||||||||||||
Commercial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
Total | 4 | $ | 1,579 | $ | - | ||||||||||||||||||||||||
(1) These loans were classified as TDRs during 2012. | |||||||||||||||||||||||||||||
(2) These loans were classified as TDRs during 2011. | |||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following tables provide information on loan risk ratings as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Pass/Performing | Special | Substandard | Doubtful | Nonaccrual | Total | |||||||||||||||||||||||
mention | |||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||
Construction | $ | 38,481 | $ | 15,369 | $ | 7,082 | $ | - | $ | 8,039 | $ | 68,971 | |||||||||||||||||
Residential real estate | 238,293 | 21,806 | 14,649 | - | 5,405 | 280,153 | |||||||||||||||||||||||
Commercial real estate | 266,836 | 22,813 | 10,163 | - | 3,342 | 303,154 | |||||||||||||||||||||||
Commercial | 50,313 | 3,406 | 714 | - | 668 | 55,101 | |||||||||||||||||||||||
Consumer | 10,995 | 206 | - | - | 47 | 11,248 | |||||||||||||||||||||||
Total | $ | 604,918 | $ | 63,600 | $ | 32,608 | $ | - | $ | 17,501 | $ | 718,627 | |||||||||||||||||
(Dollars in thousands) | Pass/Performing | Special | Substandard | Doubtful | Nonaccrual | Total | |||||||||||||||||||||||
mention | |||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Construction | $ | 45,385 | $ | 30,817 | $ | 22,155 | $ | - | $ | 9,694 | $ | 108,051 | |||||||||||||||||
Residential real estate | 237,299 | 23,657 | 15,090 | 433 | 11,532 | 288,011 | |||||||||||||||||||||||
Commercial real estate | 257,418 | 21,554 | 21,402 | - | 14,567 | 314,941 | |||||||||||||||||||||||
Commercial | 55,432 | 3,062 | 1,639 | 59 | 594 | 60,786 | |||||||||||||||||||||||
Consumer | 13,147 | - | 59 | - | 87 | 13,293 | |||||||||||||||||||||||
Total | $ | 608,681 | $ | 79,090 | $ | 60,345 | $ | 492 | $ | 36,474 | $ | 785,082 | |||||||||||||||||
Past Due Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following tables provide information on the aging of the loan portfolio as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90 days | Total past | Nonaccrual | Total | ||||||||||||||||||||||
days | days past | or more | due | ||||||||||||||||||||||||||
past due | due | past due | |||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||
Construction | $ | 60,932 | $ | - | $ | - | $ | - | $ | - | $ | 8,039 | $ | 68,971 | |||||||||||||||
Residential real estate | 272,819 | 1,554 | 375 | - | 1,929 | 5,405 | 280,153 | ||||||||||||||||||||||
Commercial real estate | 297,841 | - | 1,971 | - | 1,971 | 3,342 | 303,154 | ||||||||||||||||||||||
Commercial | 54,164 | 248 | 21 | - | 269 | 668 | 55,101 | ||||||||||||||||||||||
Consumer | 11,099 | 48 | 45 | 9 | 102 | 47 | 11,248 | ||||||||||||||||||||||
Total | $ | 696,855 | $ | 1,850 | $ | 2,412 | $ | 9 | $ | 4,271 | $ | 17,501 | $ | 718,627 | |||||||||||||||
Percent of total loans | 97 | % | 0.3 | % | 0.3 | % | - | 0.6 | % | 2.4 | % | ||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90 days | Total past | Nonaccrual | Total | ||||||||||||||||||||||
days | days past | or more | due | ||||||||||||||||||||||||||
past due | due | past due | |||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Construction | $ | 98,221 | $ | 136 | $ | - | $ | - | $ | 136 | $ | 9,694 | $ | 108,051 | |||||||||||||||
Residential real estate | 272,311 | 3,116 | 762 | 290 | 4,168 | 11,532 | 288,011 | ||||||||||||||||||||||
Commercial real estate | 298,522 | 887 | 800 | 165 | 1,852 | 14,567 | 314,941 | ||||||||||||||||||||||
Commercial | 59,746 | 380 | 66 | - | 446 | 594 | 60,786 | ||||||||||||||||||||||
Consumer | 13,125 | 57 | 19 | 5 | 81 | 87 | 13,293 | ||||||||||||||||||||||
Total | $ | 741,925 | $ | 4,576 | $ | 1,647 | $ | 460 | $ | 6,683 | $ | 36,474 | $ | 785,082 | |||||||||||||||
Percent of total loans | 94.5 | % | 0.6 | % | 0.2 | % | 0.1 | % | 0.9 | % | 4.6 | % | |||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the three months ended September 30, 2013 and 2012. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 4,346 | $ | 4,259 | $ | 5,514 | $ | 1,216 | $ | 301 | $ | 87 | $ | 15,723 | |||||||||||||||
Charge-offs | -18,539 | -4,225 | -4,056 | -196 | -3 | - | -27,019 | ||||||||||||||||||||||
Recoveries | 3 | 51 | 20 | 47 | 16 | - | 137 | ||||||||||||||||||||||
Net charge-offs | -18,536 | -4,174 | -4,036 | -149 | 13 | - | -26,882 | ||||||||||||||||||||||
Provision | 16,180 | 3,645 | 2,090 | 205 | -44 | 384 | 22,460 | ||||||||||||||||||||||
Ending balance | $ | 1,990 | $ | 3,730 | $ | 3,568 | $ | 1,272 | $ | 270 | $ | 471 | $ | 11,301 | |||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,845 | $ | 4,237 | $ | 3,952 | $ | 1,063 | $ | 304 | $ | 408 | $ | 12,990 | |||||||||||||||
Charge-offs | -3,222 | -2,323 | -742 | -73 | -31 | - | -6,391 | ||||||||||||||||||||||
Recoveries | 5 | 5 | 116 | 22 | 8 | - | 156 | ||||||||||||||||||||||
Net charge-offs | -3,217 | -2,318 | -626 | -51 | -23 | - | -6,235 | ||||||||||||||||||||||
Provision | 3,699 | 2,268 | 275 | 524 | -158 | -408 | 6,200 | ||||||||||||||||||||||
Ending balance | $ | 3,327 | $ | 4,187 | $ | 3,601 | $ | 1,536 | $ | 304 | $ | - | $ | 12,955 | |||||||||||||||
The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 4,387 | $ | 5,194 | $ | 4,134 | $ | 1,682 | $ | 407 | $ | 187 | $ | 15,991 | |||||||||||||||
Charge-offs | -20,048 | -6,114 | -6,003 | -419 | -65 | - | -32,649 | ||||||||||||||||||||||
Recoveries | 5 | 349 | 113 | 149 | 33 | - | 649 | ||||||||||||||||||||||
Net charge-offs | -20,043 | -5,765 | -5,890 | -270 | -32 | - | -32,000 | ||||||||||||||||||||||
Provision | 17,646 | 4,301 | 5,324 | -140 | -105 | 284 | 27,310 | ||||||||||||||||||||||
Ending balance | $ | 1,990 | $ | 3,730 | $ | 3,568 | $ | 1,272 | $ | 270 | $ | 471 | $ | 11,301 | |||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,745 | $ | 5,014 | $ | 3,415 | $ | 1,498 | $ | 594 | $ | 22 | $ | 14,288 | |||||||||||||||
Charge-offs | -5,008 | -7,996 | -2,177 | -4,513 | -208 | - | -19,902 | ||||||||||||||||||||||
Recoveries | 5 | 99 | 123 | 230 | 17 | - | 474 | ||||||||||||||||||||||
Net charge-offs | -5,003 | -7,897 | -2,054 | -4,283 | -191 | - | -19,428 | ||||||||||||||||||||||
Provision | 4,585 | 7,070 | 2,240 | 4,321 | -99 | -22 | 18,095 | ||||||||||||||||||||||
Ending balance | $ | 3,327 | $ | 4,187 | $ | 3,601 | $ | 1,536 | $ | 304 | $ | - | $ | 12,955 | |||||||||||||||
Other_Assets_Tables
Other Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Schedule of Other Assets [Table Text Block] | ' | |||||||
The Company had the following other assets at September 30, 2013 and December 31, 2012. | ||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||
Nonmarketable investment securities | $ | 2,058 | $ | 2,750 | ||||
Accrued interest receivable | 2,769 | 2,796 | ||||||
Insurance premiums receivable | 719 | 1,089 | ||||||
Income taxes receivable | 12,698 | 5,160 | ||||||
Deferred income taxes | 9,740 | 9,180 | ||||||
Prepaid expenses | 1,209 | 2,227 | ||||||
Other assets | 9,090 | 5,634 | ||||||
Total | $ | 38,283 | $ | 28,836 | ||||
Other_Liabilities_Tables
Other Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Schedule of Other Liabilities [Table Text Block] | ' | |||||||
The Company had the following other liabilities at September 30, 2013 and December 31, 2012. | ||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||
Accrued interest payable | $ | 271 | $ | 339 | ||||
Other accounts payable | 3,824 | 3,657 | ||||||
Deferred compensation liability | 1,481 | 2,431 | ||||||
Other liabilities | 1,926 | 2,320 | ||||||
Total | $ | 7,502 | $ | 8,747 | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Schedule of Share-based Compensation [Table Text Block] | ' | |||||||||||||
The following tables provide information on stock-based compensation expense for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Stock-based compensation expense | $ | 18 | $ | 33 | $ | 58 | $ | 174 | ||||||
Excess tax expense related to stock- | - | - | 26 | 106 | ||||||||||
based compensation | ||||||||||||||
September 30, | ||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||
Unrecognized stock-based compensation | $ | 112 | $ | 178 | ||||||||||
expense | ||||||||||||||
Weighted average period unrecognized | 1.7 years | 2.2 years | ||||||||||||
expense is expected to be recognized | ||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | |||||||||||||
The following table summarizes restricted stock award activity for the Company under the 2006 Equity Plan for the nine months ended September 30, 2013. | ||||||||||||||
Number | Weighted Average Grant | |||||||||||||
of Shares | Date Fair Value | |||||||||||||
Nonvested at beginning of period | 6,548 | $ | 14.89 | |||||||||||
Granted | 3,930 | 6.81 | ||||||||||||
Vested | -6,548 | 14.89 | ||||||||||||
Cancelled | - | - | ||||||||||||
Nonvested at end of period | 3,930 | $ | 6.81 | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||
The following table summarizes stock option activity for the Company under the 2006 Equity Plan for the nine months ended September 30, 2013. | ||||||||||||||
Weighted | Weighted Average | |||||||||||||
Number | Average | Grant Date | ||||||||||||
of Shares | Exercise Price | Fair Value | ||||||||||||
Outstanding at beginning of period | 54,216 | $ | 6.64 | $ | 3.44 | |||||||||
Granted | - | - | - | |||||||||||
Exercised | - | - | - | |||||||||||
Expired/Cancelled | - | - | - | |||||||||||
Outstanding at end of period | 54,216 | $ | 6.64 | $ | 3.44 | |||||||||
Exercisable at end of period | - | $ | - | $ | - | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||||
The following weighted average assumptions were used as inputs to the Black-Scholes valuation model for options outstanding at September 30, 2013. | ||||||||||||||
Dividend yield | 0.6 | % | ||||||||||||
Expected volatility | 58.65 | % | ||||||||||||
Risk-free interest rate | 1.69 | % | ||||||||||||
Expected contract life (in years) | 5.83 | |||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||
The following table provides information on the changes in the components of accumulated other comprehensive income (loss) for the nine months ended September 30, 2013 and 2012. | |||||||||||
(Dollars in thousands) | Accumulated net | Accumulated net | Accumulated | ||||||||
unrealized holding | unrealized holding | other | |||||||||
gains (losses) on | gains (losses) on | comprehensive | |||||||||
available for sale | cash flow hedging | income (loss) | |||||||||
securities | activities | ||||||||||
Balance, December 31, 2012 | $ | 1,894 | $ | -1,186 | $ | 708 | |||||
Other comprehensive (loss) income | -1,889 | 407 | -1,482 | ||||||||
Reclassification of (gains) losses recognized | -545 | 779 | 234 | ||||||||
Balance, September 30, 2013 | $ | -540 | $ | - | $ | -540 | |||||
Balance, December 31, 2011 | $ | 1,370 | $ | -3,059 | $ | -1,689 | |||||
Other comprehensive income | 910 | 751 | 1,661 | ||||||||
Reclassification of gains recognized | -166 | - | -166 | ||||||||
Balance, September 30, 2012 | $ | 2,114 | $ | -2,308 | $ | -194 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | |||||||||||||||||||
The tables below present the recorded amount of assets measured at fair value on a recurring basis at September 30, 2013 and December 31, 2012. No assets were transferred from one hierarchy level to another during the first nine months of 2013 or 2012. | ||||||||||||||||||||
Significant | ||||||||||||||||||||
Other | Significant | |||||||||||||||||||
Quoted | Observable | Unobservable | ||||||||||||||||||
Prices | Inputs | Inputs | ||||||||||||||||||
(Dollars in thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. Treasury | $ | 5,369 | $ | 5,369 | $ | - | $ | - | ||||||||||||
U.S. Government agencies | 46,214 | - | 46,214 | - | ||||||||||||||||
Mortgage-backed securities | 83,671 | - | 83,671 | - | ||||||||||||||||
Other equity securities | 608 | - | 608 | - | ||||||||||||||||
Total | $ | 135,862 | $ | 5,369 | $ | 130,493 | $ | - | ||||||||||||
Interest rate caps | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Significant | ||||||||||||||||||||
Other | Significant | |||||||||||||||||||
Quoted | Observable | Unobservable | ||||||||||||||||||
Prices | Inputs | Inputs | ||||||||||||||||||
(Dollars in thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. Government agencies | $ | 36,107 | $ | - | $ | 36,107 | $ | - | ||||||||||||
Mortgage-backed securities | 108,780 | - | 108,780 | - | ||||||||||||||||
Other equity securities | 621 | - | 621 | - | ||||||||||||||||
Total | $ | 145,508 | $ | - | $ | 145,508 | $ | - | ||||||||||||
Interest rate caps | $ | 14 | $ | - | $ | 14 | $ | - | ||||||||||||
Fair Value Assets Measured on Nonrecurring Basis [Table Text Block] | ' | |||||||||||||||||||
The tables below summarize the changes in the recorded amount of assets measured at fair value on a nonrecurring basis for the nine months ended September 30, 2013 and 2012. All assets measured at fair value on a nonrecurring basis were classified as Level 3 in the fair value hierarchy for the periods presented. | ||||||||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Total | ||||||||||||||
real estate | real estate | |||||||||||||||||||
For the nine months ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Impaired loans: | ||||||||||||||||||||
Beginning balance | $ | 36,088 | $ | 17,951 | $ | 31,833 | $ | 715 | $ | 39 | $ | 86,626 | ||||||||
Charge-offs | -19,377 | -4,664 | -6,893 | -90 | -38 | -31,062 | ||||||||||||||
Payments | -1,510 | -2,183 | -8,170 | -47 | -13 | -11,923 | ||||||||||||||
Transferred to loans held for sale | -9,820 | -5,492 | -6,795 | - | - | -22,107 | ||||||||||||||
Transferred to other real estate owned | -205 | -729 | -1,601 | - | - | -2,535 | ||||||||||||||
Returned to performing status | - | -2,448 | -1,075 | - | - | -3,523 | ||||||||||||||
Changed to nonaccrual status | - | -1,626 | -1,741 | - | - | -3,367 | ||||||||||||||
Additions | 3,821 | 20,764 | 8,747 | 374 | 44 | 33,750 | ||||||||||||||
Changes in allowance | 519 | -326 | 159 | -305 | -13 | 34 | ||||||||||||||
Ending balance | $ | 9,516 | $ | 21,247 | $ | 14,464 | $ | 647 | $ | 19 | $ | 45,893 | ||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Total | ||||||||||||||
real estate | real estate | |||||||||||||||||||
For the nine months ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Impaired loans: | ||||||||||||||||||||
Beginning balance | $ | 27,166 | $ | 22,602 | $ | 23,578 | $ | 1,738 | $ | 28 | $ | 75,112 | ||||||||
Charge-offs | -4,965 | -7,628 | -2,177 | -1,264 | - | -16,034 | ||||||||||||||
Payments | -976 | -8,405 | -1,858 | -105 | -4 | -11,348 | ||||||||||||||
Transferred to loans held for sale | - | - | - | - | - | - | ||||||||||||||
Transferred to other real estate owned | -1,631 | -1,463 | -1,334 | -30 | - | -4,458 | ||||||||||||||
Returned to performing status | - | -201 | - | -39 | - | -240 | ||||||||||||||
Changed to nonaccrual status | -666 | -786 | - | - | - | -1,452 | ||||||||||||||
Additions | 20,856 | 14,256 | 10,693 | 1,346 | 30 | 47,181 | ||||||||||||||
Changes in allowance | 151 | 1,296 | - | - | - | 1,447 | ||||||||||||||
Ending balance | $ | 39,935 | $ | 19,671 | $ | 28,902 | $ | 1,646 | $ | 54 | $ | 90,208 | ||||||||
Fair Value Assets Measured on Nonrecurring Basis Other Real Estate Owned [Table Text Block] | ' | |||||||||||||||||||
For the Nine Months | ||||||||||||||||||||
Ended | ||||||||||||||||||||
(Dollars in thousands) | September 30, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Other real estate owned: | ||||||||||||||||||||
Beginning balance | $ | 7,659 | $ | 9,385 | ||||||||||||||||
Sales | -3,793 | -4,605 | ||||||||||||||||||
Write-downs | -947 | -1,077 | ||||||||||||||||||
Additions | 2,857 | 4,715 | ||||||||||||||||||
Ending balance | $ | 5,776 | $ | 8,418 | ||||||||||||||||
Schedule of Estimated Fair Values of Financial Assets and Liabilities [Table Text Block] | ' | |||||||||||||||||||
The following table provides information on the estimated fair values of the Company’s financial assets and liabilities that are reported in the balance sheets at their carrying amounts. The financial assets and liabilities have been segregated by their classification level in the fair value hierarchy. | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Estimated | Estimated | |||||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||||
(Dollars in thousands) | Amount | Value | Amount | Value | ||||||||||||||||
Financial assets | ||||||||||||||||||||
Level 2 inputs | ||||||||||||||||||||
Cash and cash equivalents | $ | 106,922 | $ | 106,922 | $ | 200,193 | $ | 200,193 | ||||||||||||
Investment securities held to maturity | 2,357 | 2,471 | 2,657 | 2,884 | ||||||||||||||||
Level 3 inputs | ||||||||||||||||||||
Loans, net | 707,326 | 728,466 | 769,091 | 798,381 | ||||||||||||||||
Financial liabilities | ||||||||||||||||||||
Level 2 inputs | ||||||||||||||||||||
Deposits | $ | 930,413 | $ | 929,587 | $ | 1,049,273 | $ | 1,052,382 | ||||||||||||
Short-term borrowings | 11,468 | 11,468 | 13,761 | 13,761 | ||||||||||||||||
Financial_Instruments_with_Off1
Financial Instruments with Off-Balance Sheet Risk (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | ' | |||||||
Schedule of Commitments Outstanding [Table Text Block] | ' | |||||||
The following table provides information on commitments outstanding at September 30, 2013 and December 31, 2012. | ||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||
Commitments to extend credit | $ | 129,572 | $ | 141,518 | ||||
Letters of credit | 12,286 | 12,817 | ||||||
Total | $ | 141,858 | $ | 154,335 | ||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||
The following table includes selected financial information by business segments for the first nine months of 2013 and 2012. | ||||||||||||||
Community | Insurance Products | Parent | Consolidated | |||||||||||
(Dollars in thousands) | Banking | and Services | Company | Total | ||||||||||
2013 | ||||||||||||||
Interest income | $ | 31,509 | $ | 35 | $ | - | $ | 31,544 | ||||||
Interest expense | -5,238 | - | - | -5,238 | ||||||||||
Provision for credit losses | -27,310 | - | - | -27,310 | ||||||||||
Noninterest income | 4,192 | 9,046 | 6 | 13,244 | ||||||||||
Noninterest expense | -17,449 | -7,638 | -5,131 | -30,218 | ||||||||||
Net intersegment (expense) income | -3,982 | -530 | 4,512 | - | ||||||||||
(Loss) income before taxes | -18,278 | 913 | -613 | -17,978 | ||||||||||
Income tax benefit (expense) | 7,289 | -364 | 244 | 7,169 | ||||||||||
Net (loss) income | $ | -10,989 | $ | 549 | $ | -369 | $ | -10,809 | ||||||
Total assets | $ | 1,032,956 | $ | 15,973 | $ | 2,455 | $ | 1,051,384 | ||||||
2012 | ||||||||||||||
Interest income | $ | 34,882 | $ | 59 | $ | - | $ | 34,941 | ||||||
Interest expense | -7,967 | - | -16 | -7,983 | ||||||||||
Provision for credit losses | -18,095 | - | - | -18,095 | ||||||||||
Noninterest income | 5,089 | 7,974 | 89 | 13,152 | ||||||||||
Noninterest expense | -17,969 | -7,407 | -4,494 | -29,870 | ||||||||||
Net intersegment (expense) income | -3,903 | -392 | 4,295 | - | ||||||||||
(Loss) income before taxes | -7,963 | 234 | -126 | -7,855 | ||||||||||
Income tax benefit (expense) | 3,336 | -98 | 53 | 3,291 | ||||||||||
Net (loss) income | $ | -4,627 | $ | 136 | $ | -73 | $ | -4,564 | ||||||
Total assets | $ | 1,159,766 | $ | 16,920 | $ | 1,947 | $ | 1,178,633 | ||||||
EarningsLoss_Per_Share_Details
Earnings/(Loss) Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net loss | ($11,392) | ($1,821) | ($10,809) | ($4,564) |
Weighted average shares outstanding - Basic (in shares) | 8,461 | 8,457 | 8,460 | 8,457 |
Dilutive effect of common stock equivalents (in shares) | 0 | 0 | 0 | 0 |
Weighted average shares outstanding - Diluted (in shares) | 8,461 | 8,457 | 8,460 | 8,457 |
Loss per common share - Basic (in dollars per share) | ($1.35) | ($0.22) | ($1.28) | ($0.54) |
Loss per common share - Diluted (in dollars per share) | ($1.35) | ($0.22) | ($1.28) | ($0.54) |
EarningsLoss_Per_Share_Details1
Earnings/(Loss) Per Share (Details Textual) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 54 | 54 | 54 | 43 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Available-for-sale securities, Amortized Cost | $136,767 | $142,333 |
Available-for-sale securities, Gross Unrealized Gains | 447 | 3,392 |
Available-for-sale securities, Gross Unrealized Losses | 1,352 | 217 |
Available-for-sale securities, Estimated Fair Value | 135,862 | 145,508 |
Held-to-maturity securities, Amortized Cost | 2,357 | 2,657 |
Held-to-maturity securities, Estimated Fair Value | 2,471 | 2,884 |
US Treasury Securities [Member] | ' | ' |
Available-for-sale securities, Amortized Cost | 5,375 | ' |
Available-for-sale securities, Gross Unrealized Gains | 0 | ' |
Available-for-sale securities, Gross Unrealized Losses | 6 | ' |
Available-for-sale securities, Estimated Fair Value | 5,369 | ' |
Collateralized Mortgage Backed Securities [Member] | ' | ' |
Available-for-sale securities, Amortized Cost | 84,234 | 106,524 |
Available-for-sale securities, Gross Unrealized Gains | 389 | 2,464 |
Available-for-sale securities, Gross Unrealized Losses | 952 | 208 |
Available-for-sale securities, Estimated Fair Value | 83,671 | 108,780 |
Equity Securities [Member] | ' | ' |
Available-for-sale securities, Amortized Cost | 606 | 596 |
Available-for-sale securities, Gross Unrealized Gains | 2 | 25 |
Available-for-sale securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale securities, Estimated Fair Value | 608 | 621 |
Held-to-maturity securities, Amortized Cost | 0 | ' |
Held-to-maturity securities, Estimated Fair Value | 0 | ' |
US States and Political Subdivisions Debt Securities [Member] | ' | ' |
Held-to-maturity securities, Amortized Cost | 2,357 | 2,657 |
Held-to-maturity securities, Gross Unrealized Gains | 114 | 227 |
Held-to-maturity securities, Gross Unrealized Losses | 0 | 0 |
Held-to-maturity securities, Estimated Fair Value | 2,471 | 2,884 |
US Government Corporations and Agencies Securities [Member] | ' | ' |
Available-for-sale securities, Amortized Cost | 46,552 | 35,213 |
Available-for-sale securities, Gross Unrealized Gains | 56 | 903 |
Available-for-sale securities, Gross Unrealized Losses | 394 | 9 |
Available-for-sale securities, Estimated Fair Value | $46,214 | $36,107 |
Investment_Securities_Details_
Investment Securities (Details 1) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $92,149 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 1,352 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 92,149 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 1,352 |
US Treasury Securities [Member] | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 5,369 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 6 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,369 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 6 |
US Government Corporations and Agencies Securities [Member] | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 30,603 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 394 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 30,603 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 394 |
Collateralized Mortgage Backed Securities [Member] | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 56,177 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 952 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 56,177 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | $952 |
Investment_Securities_Details_1
Investment Securities (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available for sale, Amortized Cost, Due in one year or less | $6,055 | ' |
Available for sale, Amortized Cost, Due after one year through five years | 42,500 | ' |
Available for sale, Amortized Cost, Due after five years through ten years | 3,894 | ' |
Available for sale, Amortized Cost, Due after ten years | 83,712 | ' |
Available for sale, Amortized Cost, Debt maturities | 136,161 | ' |
Available for sale, Amortized Cost, Total | 136,767 | ' |
Available for sale, Estimated Fair Value, Due in one year or less | 6,066 | ' |
Available for sale, Estimated Fair Value, Due after one year through five years | 42,372 | ' |
Available for sale, Estimated Fair Value, Due after five years through ten years | 3,936 | ' |
Available for sale, Estimated Fair Value, Due after ten years | 82,880 | ' |
Available for sale, Estimated Fair Value, Debt maturities | 135,254 | ' |
Available for sale, Estimated Fair Value, Total | 135,862 | 145,508 |
Held to maturity securities, Amortized Cost, Due in one year or less | 413 | ' |
Held to maturity securities, Amortized Cost, Due after one year through five years | 433 | ' |
Held to maturity securities, Amortized Cost, Due after five years through ten years | 1,007 | ' |
Held to maturity securities, Amortized Cost, Due after ten years | 504 | ' |
Held to maturity securities, Amortized Cost, Debt maturities | 2,357 | ' |
Held to maturity securities, Amortized Cost, Total | 2,357 | 2,657 |
Held to maturity securities, Estimated Fair Value, Due in one year or less | 419 | ' |
Held to maturity securities, Estimated Fair Value, Due after one year through five years | 454 | ' |
Held to maturity securities, Estimated Fair Value, Due after five years through ten years | 1,077 | ' |
Held to maturity securities, Estimated Fair Value, Due after ten years | 521 | ' |
Held to maturity securities, Estimated Fair Value, Debt maturities | 2,471 | ' |
Held-to-maturity securities, Estimated Fair Value, Total | 2,471 | 2,884 |
Equity Securities [Member] | ' | ' |
Available for sale, Amortized Cost, Total | 606 | ' |
Available for sale, Estimated Fair Value, Total | 608 | 621 |
Held to maturity securities, Amortized Cost, Total | 0 | ' |
Held-to-maturity securities, Estimated Fair Value, Total | $0 | ' |
Loans_and_allowance_for_credit2
Loans and allowance for credit losses (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Construction | $68,971 | $108,051 |
Residential real estate | 280,153 | 288,011 |
Commercial real estate | 303,154 | 314,941 |
Commercial | 55,101 | 60,786 |
Consumer | 11,248 | 13,293 |
Total loans | 718,627 | 785,082 |
Allowance for credit losses | -11,301 | -15,991 |
Total loans, net | $707,326 | $769,091 |
Loans_and_allowance_for_credit3
Loans and allowance for credit losses (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans individually evaluated for impairment | $48,060 | $88,827 |
Loans collectively evaluated for impairment | 670,567 | 696,255 |
Total loans | 718,627 | 785,082 |
Allowance for credit losses allocated to: | ' | ' |
Loans individually evaluated for impairment | 2,167 | 2,201 |
Loans collectively evaluated for impairment | 9,134 | 13,790 |
Total allowance for credit losses | 11,301 | 15,991 |
Unallocated Financing Receivables [Member] | ' | ' |
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 0 | 0 |
Total loans | 0 | 0 |
Allowance for credit losses allocated to: | ' | ' |
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 471 | 187 |
Total allowance for credit losses | 471 | 187 |
Commercial Loan [Member] | ' | ' |
Loans individually evaluated for impairment | 952 | 715 |
Loans collectively evaluated for impairment | 54,149 | 60,071 |
Total loans | 55,101 | 60,786 |
Allowance for credit losses allocated to: | ' | ' |
Loans individually evaluated for impairment | 305 | 0 |
Loans collectively evaluated for impairment | 967 | 1,682 |
Total allowance for credit losses | 1,272 | 1,682 |
Consumer Loan [Member] | ' | ' |
Loans individually evaluated for impairment | 80 | 87 |
Loans collectively evaluated for impairment | 11,168 | 13,206 |
Total loans | 11,248 | 13,293 |
Allowance for credit losses allocated to: | ' | ' |
Loans individually evaluated for impairment | 61 | 48 |
Loans collectively evaluated for impairment | 209 | 359 |
Total allowance for credit losses | 270 | 407 |
Residential Real Estate [Member] | ' | ' |
Loans individually evaluated for impairment | 22,171 | 18,549 |
Loans collectively evaluated for impairment | 257,982 | 269,462 |
Total loans | 280,153 | 288,011 |
Allowance for credit losses allocated to: | ' | ' |
Loans individually evaluated for impairment | 924 | 598 |
Loans collectively evaluated for impairment | 2,806 | 4,596 |
Total allowance for credit losses | 3,730 | 5,194 |
Commercial Real Estate [Member] | ' | ' |
Loans individually evaluated for impairment | 14,919 | 32,447 |
Loans collectively evaluated for impairment | 288,235 | 282,494 |
Total loans | 303,154 | 314,941 |
Allowance for credit losses allocated to: | ' | ' |
Loans individually evaluated for impairment | 455 | 614 |
Loans collectively evaluated for impairment | 3,113 | 3,520 |
Total allowance for credit losses | 3,568 | 4,134 |
Construction Loans [Member] | ' | ' |
Loans individually evaluated for impairment | 9,938 | 37,029 |
Loans collectively evaluated for impairment | 59,033 | 71,022 |
Total loans | 68,971 | 108,051 |
Allowance for credit losses allocated to: | ' | ' |
Loans individually evaluated for impairment | 422 | 941 |
Loans collectively evaluated for impairment | 1,568 | 3,446 |
Total allowance for credit losses | $1,990 | $4,387 |
Loans_and_allowance_for_credit4
Loans and allowance for credit losses (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Unpaid principal balance | $57,927 | $105,779 | $57,927 | $105,779 |
Recorded investment with no allowance | 38,745 | 77,664 | 38,745 | 77,664 |
Recorded investment with an allowance | 9,315 | 11,163 | 9,315 | 11,163 |
Related allowance | 2,167 | 2,201 | 2,167 | 2,201 |
Average recorded investment | 68,071 | 90,193 | 75,901 | 87,064 |
Commercial Loan [Member] | ' | ' | ' | ' |
Unpaid principal balance | 1,962 | 1,677 | 1,962 | 1,677 |
Recorded investment with no allowance | 647 | 715 | 647 | 715 |
Recorded investment with an allowance | 305 | 0 | 305 | 0 |
Related allowance | 305 | 0 | 305 | 0 |
Average recorded investment | 853 | 1,231 | 753 | 1,625 |
Consumer Loan [Member] | ' | ' | ' | ' |
Unpaid principal balance | 87 | 92 | 87 | 92 |
Recorded investment with no allowance | 19 | 39 | 19 | 39 |
Recorded investment with an allowance | 61 | 48 | 61 | 48 |
Related allowance | 61 | 48 | 61 | 48 |
Average recorded investment | 60 | 50 | 52 | 55 |
Residential Real Estate [Member] | ' | ' | ' | ' |
Unpaid principal balance | 24,252 | 24,992 | 24,252 | 24,992 |
Recorded investment with no allowance | 18,429 | 16,486 | 18,429 | 16,486 |
Recorded investment with an allowance | 3,742 | 2,063 | 3,742 | 2,063 |
Related allowance | 924 | 598 | 924 | 598 |
Average recorded investment | 22,131 | 19,418 | 20,154 | 22,536 |
Commercial Real Estate [Member] | ' | ' | ' | ' |
Unpaid principal balance | 17,864 | 37,395 | 17,864 | 37,395 |
Recorded investment with no allowance | 11,264 | 29,718 | 11,264 | 29,718 |
Recorded investment with an allowance | 3,655 | 2,729 | 3,655 | 2,729 |
Related allowance | 455 | 614 | 455 | 614 |
Average recorded investment | 20,893 | 30,987 | 25,454 | 29,227 |
Construction Loans [Member] | ' | ' | ' | ' |
Unpaid principal balance | 13,762 | 41,623 | 13,762 | 41,623 |
Recorded investment with no allowance | 8,386 | 30,706 | 8,386 | 30,706 |
Recorded investment with an allowance | 1,552 | 6,323 | 1,552 | 6,323 |
Related allowance | 422 | 941 | 422 | 941 |
Average recorded investment | 24,134 | 38,507 | 29,488 | 33,621 |
Impaired Nonaccrual Loans [Member] | ' | ' | ' | ' |
Unpaid principal balance | 27,368 | 53,426 | 27,368 | 53,426 |
Recorded investment with no allowance | 13,054 | 25,311 | 13,054 | 25,311 |
Recorded investment with an allowance | 4,447 | 11,163 | 4,447 | 11,163 |
Related allowance | 1,135 | 2,201 | 1,135 | 2,201 |
Average recorded investment | 28,803 | 38,624 | 30,119 | 44,468 |
Impaired Nonaccrual Loans [Member] | Commercial Loan [Member] | ' | ' | ' | ' |
Unpaid principal balance | 1,678 | 1,556 | 1,678 | 1,556 |
Recorded investment with no allowance | 546 | 594 | 546 | 594 |
Recorded investment with an allowance | 122 | 0 | 122 | 0 |
Related allowance | 122 | 0 | 122 | 0 |
Average recorded investment | 656 | 1,126 | 595 | 1,538 |
Impaired Nonaccrual Loans [Member] | Consumer Loan [Member] | ' | ' | ' | ' |
Unpaid principal balance | 54 | 92 | 54 | 92 |
Recorded investment with no allowance | 19 | 39 | 19 | 39 |
Recorded investment with an allowance | 28 | 48 | 28 | 48 |
Related allowance | 28 | 48 | 28 | 48 |
Average recorded investment | 43 | 50 | 44 | 55 |
Impaired Nonaccrual Loans [Member] | Residential Real Estate [Member] | ' | ' | ' | ' |
Unpaid principal balance | 7,486 | 17,975 | 7,486 | 17,975 |
Recorded investment with no allowance | 4,082 | 9,469 | 4,082 | 9,469 |
Recorded investment with an allowance | 1,323 | 2,063 | 1,323 | 2,063 |
Related allowance | 309 | 598 | 309 | 598 |
Average recorded investment | 10,825 | 13,294 | 10,921 | 17,472 |
Impaired Nonaccrual Loans [Member] | Commercial Real Estate [Member] | ' | ' | ' | ' |
Unpaid principal balance | 6,287 | 19,515 | 6,287 | 19,515 |
Recorded investment with no allowance | 1,825 | 11,838 | 1,825 | 11,838 |
Recorded investment with an allowance | 1,517 | 2,729 | 1,517 | 2,729 |
Related allowance | 255 | 614 | 255 | 614 |
Average recorded investment | 7,607 | 13,554 | 9,905 | 12,975 |
Impaired Nonaccrual Loans [Member] | Construction Loans [Member] | ' | ' | ' | ' |
Unpaid principal balance | 11,863 | 14,288 | 11,863 | 14,288 |
Recorded investment with no allowance | 6,582 | 3,371 | 6,582 | 3,371 |
Recorded investment with an allowance | 1,457 | 6,323 | 1,457 | 6,323 |
Related allowance | 421 | 941 | 421 | 941 |
Average recorded investment | 9,672 | 10,600 | 8,654 | 12,428 |
Impaired Accruing Restructured Loans [Member] | ' | ' | ' | ' |
Unpaid principal balance | 29,439 | 52,353 | 29,439 | 52,353 |
Recorded investment with no allowance | 25,691 | 52,353 | 25,691 | 52,353 |
Recorded investment with an allowance | 3,748 | 0 | 3,748 | 0 |
Related allowance | 677 | 0 | 677 | 0 |
Average recorded investment | 38,706 | 51,569 | 45,502 | 42,596 |
Impaired Accruing Restructured Loans [Member] | Commercial Loan [Member] | ' | ' | ' | ' |
Unpaid principal balance | 101 | 121 | 101 | 121 |
Recorded investment with no allowance | 101 | 121 | 101 | 121 |
Recorded investment with an allowance | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 |
Average recorded investment | 105 | 105 | 112 | 87 |
Impaired Accruing Restructured Loans [Member] | Consumer Loan [Member] | ' | ' | ' | ' |
Unpaid principal balance | 0 | 0 | 0 | 0 |
Recorded investment with no allowance | 0 | 0 | 0 | 0 |
Recorded investment with an allowance | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 |
Average recorded investment | 0 | 0 | 0 | 0 |
Impaired Accruing Restructured Loans [Member] | Residential Real Estate [Member] | ' | ' | ' | ' |
Unpaid principal balance | 16,735 | 7,017 | 16,735 | 7,017 |
Recorded investment with no allowance | 14,347 | 7,017 | 14,347 | 7,017 |
Recorded investment with an allowance | 2,388 | 0 | 2,388 | 0 |
Related allowance | 584 | 0 | 584 | 0 |
Average recorded investment | 11,290 | 6,124 | 9,225 | 5,064 |
Impaired Accruing Restructured Loans [Member] | Commercial Real Estate [Member] | ' | ' | ' | ' |
Unpaid principal balance | 10,704 | 17,880 | 10,704 | 17,880 |
Recorded investment with no allowance | 9,439 | 17,880 | 9,439 | 17,880 |
Recorded investment with an allowance | 1,265 | 0 | 1,265 | 0 |
Related allowance | 92 | 0 | 92 | 0 |
Average recorded investment | 12,849 | 17,433 | 15,331 | 16,252 |
Impaired Accruing Restructured Loans [Member] | Construction Loans [Member] | ' | ' | ' | ' |
Unpaid principal balance | 1,899 | 27,335 | 1,899 | 27,335 |
Recorded investment with no allowance | 1,804 | 27,335 | 1,804 | 27,335 |
Recorded investment with an allowance | 95 | 0 | 95 | 0 |
Related allowance | 1 | 0 | 1 | 0 |
Average recorded investment | 14,462 | 27,907 | 20,834 | 21,193 |
Impired Adversely Rated Loans [Member] | ' | ' | ' | ' |
Unpaid principal balance | 1,120 | 0 | 1,120 | 0 |
Recorded investment with no allowance | 0 | 0 | 0 | 0 |
Recorded investment with an allowance | 1,120 | 0 | 1,120 | 0 |
Related allowance | 355 | 0 | 355 | 0 |
Average recorded investment | 562 | 0 | 280 | 0 |
Impired Adversely Rated Loans [Member] | Commercial Loan [Member] | ' | ' | ' | ' |
Unpaid principal balance | 183 | 0 | 183 | 0 |
Recorded investment with no allowance | 0 | 0 | 0 | 0 |
Recorded investment with an allowance | 183 | 0 | 183 | 0 |
Related allowance | 183 | 0 | 183 | 0 |
Average recorded investment | 92 | 0 | 46 | 0 |
Impired Adversely Rated Loans [Member] | Consumer Loan [Member] | ' | ' | ' | ' |
Unpaid principal balance | 33 | 0 | 33 | 0 |
Recorded investment with no allowance | 0 | 0 | 0 | 0 |
Recorded investment with an allowance | 33 | 0 | 33 | 0 |
Related allowance | 33 | 0 | 33 | 0 |
Average recorded investment | 17 | 0 | 8 | 0 |
Impired Adversely Rated Loans [Member] | Residential Real Estate [Member] | ' | ' | ' | ' |
Unpaid principal balance | 31 | 0 | 31 | 0 |
Recorded investment with no allowance | 0 | 0 | 0 | 0 |
Recorded investment with an allowance | 31 | 0 | 31 | 0 |
Related allowance | 31 | 0 | 31 | 0 |
Average recorded investment | 16 | 0 | 8 | 0 |
Impired Adversely Rated Loans [Member] | Commercial Real Estate [Member] | ' | ' | ' | ' |
Unpaid principal balance | 873 | 0 | 873 | 0 |
Recorded investment with no allowance | 0 | 0 | 0 | 0 |
Recorded investment with an allowance | 873 | 0 | 873 | 0 |
Related allowance | 108 | 0 | 108 | 0 |
Average recorded investment | 437 | 0 | 218 | 0 |
Impired Adversely Rated Loans [Member] | Construction Loans [Member] | ' | ' | ' | ' |
Unpaid principal balance | 0 | 0 | 0 | 0 |
Recorded investment with no allowance | 0 | 0 | 0 | 0 |
Recorded investment with an allowance | 0 | 0 | 0 | 0 |
Related allowance | 0 | 0 | 0 | 0 |
Average recorded investment | $0 | $0 | $0 | $0 |
Loans_and_allowance_for_credit5
Loans and allowance for credit losses (Details 3) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Contracts | Contracts | |
Number of contracts | 13 | 31 |
Premodification outstanding recorded investment | $14,188 | $28,023 |
Postmodification outstanding recorded investment | 14,201 | 27,858 |
Related allowance | 120 | 0 |
Troubled Debt Restructurings [Member] | Commercial Loan [Member] | ' | ' |
Number of contracts | 0 | 1 |
Premodification outstanding recorded investment | 0 | 24 |
Postmodification outstanding recorded investment | 0 | 24 |
Related allowance | 0 | 0 |
Troubled Debt Restructurings [Member] | Consumer Loan [Member] | ' | ' |
Number of contracts | 0 | 0 |
Premodification outstanding recorded investment | 0 | 0 |
Postmodification outstanding recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Troubled Debt Restructurings [Member] | Residential Real Estate [Member] | ' | ' |
Number of contracts | 6 | 11 |
Premodification outstanding recorded investment | 11,758 | 3,382 |
Postmodification outstanding recorded investment | 11,772 | 3,044 |
Related allowance | 38 | 0 |
Troubled Debt Restructurings [Member] | Commercial Real Estate [Member] | ' | ' |
Number of contracts | 4 | 7 |
Premodification outstanding recorded investment | 2,212 | 7,270 |
Postmodification outstanding recorded investment | 2,211 | 7,429 |
Related allowance | 82 | 0 |
Troubled Debt Restructurings [Member] | Construction Loans [Member] | ' | ' |
Number of contracts | 3 | 12 |
Premodification outstanding recorded investment | 218 | 17,347 |
Postmodification outstanding recorded investment | 218 | 17,361 |
Related allowance | $0 | $0 |
Loans_and_allowance_for_credit6
Loans and allowance for credit losses (Details 4) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Contracts | Contracts | |||
Number of contracts | 5 | [1] | 4 | [2] |
Recorded investment | $3,304 | [1] | $1,579 | [2] |
Related allowance | 74 | [1] | 0 | [2] |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Commercial Loan [Member] | ' | ' | ||
Number of contracts | 0 | [1] | 0 | [2] |
Recorded investment | 0 | [1] | 0 | [2] |
Related allowance | 0 | [1] | 0 | [2] |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Consumer Loan [Member] | ' | ' | ||
Number of contracts | 0 | [1] | 0 | [2] |
Recorded investment | 0 | [1] | 0 | [2] |
Related allowance | 0 | [1] | 0 | [2] |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Residential Real Estate [Member] | ' | ' | ||
Number of contracts | 4 | [1] | 3 | [2] |
Recorded investment | 1,563 | [1] | 913 | [2] |
Related allowance | 0 | [1] | 0 | [2] |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Commercial Real Estate [Member] | ' | ' | ||
Number of contracts | 1 | [1] | 0 | [2] |
Recorded investment | 1,741 | [1] | 0 | [2] |
Related allowance | 74 | [1] | 0 | [2] |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Construction Loans [Member] | ' | ' | ||
Number of contracts | 0 | [1] | 1 | [2] |
Recorded investment | 0 | [1] | 666 | [2] |
Related allowance | $0 | [1] | $0 | [2] |
[1] | These loans were classified as TDRs during 2012. | |||
[2] | These loans were classified as TDRs during 2011. |
Loans_and_allowance_for_credit7
Loans and allowance for credit losses (Details 5) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loan Risk Rating | $718,627 | $785,082 |
Pass [Member] | ' | ' |
Loan Risk Rating | 604,918 | 608,681 |
Special Mention [Member] | ' | ' |
Loan Risk Rating | 63,600 | 79,090 |
Substandard [Member] | ' | ' |
Loan Risk Rating | 32,608 | 60,345 |
Doubtful [Member] | ' | ' |
Loan Risk Rating | 0 | 492 |
Non Accrual [Member] | ' | ' |
Loan Risk Rating | 17,501 | 36,474 |
Commercial Loan [Member] | ' | ' |
Loan Risk Rating | 55,101 | 60,786 |
Commercial Loan [Member] | Pass [Member] | ' | ' |
Loan Risk Rating | 50,313 | 55,432 |
Commercial Loan [Member] | Special Mention [Member] | ' | ' |
Loan Risk Rating | 3,406 | 3,062 |
Commercial Loan [Member] | Substandard [Member] | ' | ' |
Loan Risk Rating | 714 | 1,639 |
Commercial Loan [Member] | Doubtful [Member] | ' | ' |
Loan Risk Rating | 0 | 59 |
Commercial Loan [Member] | Non Accrual [Member] | ' | ' |
Loan Risk Rating | 668 | 594 |
Consumer Loan [Member] | ' | ' |
Loan Risk Rating | 11,248 | 13,293 |
Consumer Loan [Member] | Pass [Member] | ' | ' |
Loan Risk Rating | 10,995 | 13,147 |
Consumer Loan [Member] | Special Mention [Member] | ' | ' |
Loan Risk Rating | 206 | 0 |
Consumer Loan [Member] | Substandard [Member] | ' | ' |
Loan Risk Rating | 0 | 59 |
Consumer Loan [Member] | Doubtful [Member] | ' | ' |
Loan Risk Rating | 0 | 0 |
Consumer Loan [Member] | Non Accrual [Member] | ' | ' |
Loan Risk Rating | 47 | 87 |
Residential Real Estate [Member] | ' | ' |
Loan Risk Rating | 280,153 | 288,011 |
Residential Real Estate [Member] | Pass [Member] | ' | ' |
Loan Risk Rating | 238,293 | 237,299 |
Residential Real Estate [Member] | Special Mention [Member] | ' | ' |
Loan Risk Rating | 21,806 | 23,657 |
Residential Real Estate [Member] | Substandard [Member] | ' | ' |
Loan Risk Rating | 14,649 | 15,090 |
Residential Real Estate [Member] | Doubtful [Member] | ' | ' |
Loan Risk Rating | 0 | 433 |
Residential Real Estate [Member] | Non Accrual [Member] | ' | ' |
Loan Risk Rating | 5,405 | 11,532 |
Commercial Real Estate [Member] | ' | ' |
Loan Risk Rating | 303,154 | 314,941 |
Commercial Real Estate [Member] | Pass [Member] | ' | ' |
Loan Risk Rating | 266,836 | 257,418 |
Commercial Real Estate [Member] | Special Mention [Member] | ' | ' |
Loan Risk Rating | 22,813 | 21,554 |
Commercial Real Estate [Member] | Substandard [Member] | ' | ' |
Loan Risk Rating | 10,163 | 21,402 |
Commercial Real Estate [Member] | Doubtful [Member] | ' | ' |
Loan Risk Rating | 0 | 0 |
Commercial Real Estate [Member] | Non Accrual [Member] | ' | ' |
Loan Risk Rating | 3,342 | 14,567 |
Construction Loans [Member] | ' | ' |
Loan Risk Rating | 68,971 | 108,051 |
Construction Loans [Member] | Pass [Member] | ' | ' |
Loan Risk Rating | 38,481 | 45,385 |
Construction Loans [Member] | Special Mention [Member] | ' | ' |
Loan Risk Rating | 15,369 | 30,817 |
Construction Loans [Member] | Substandard [Member] | ' | ' |
Loan Risk Rating | 7,082 | 22,155 |
Construction Loans [Member] | Doubtful [Member] | ' | ' |
Loan Risk Rating | 0 | 0 |
Construction Loans [Member] | Non Accrual [Member] | ' | ' |
Loan Risk Rating | $8,039 | $9,694 |
Loans_and_allowance_for_credit8
Loans and allowance for credit losses (Details 6) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current | $696,855 | $741,925 |
30-59 days past due | 1,850 | 4,576 |
60-89 days past due | 2,412 | 1,647 |
90 days or more past due | 9 | 460 |
Total past due | 4,271 | 6,683 |
Nonaccrual | 17,501 | 36,474 |
Total loans | 718,627 | 785,082 |
Percent of total loans, Current | 97.00% | 94.50% |
Percent of total loans, 30-59 days past due | 0.30% | 0.60% |
Percent of total loans, 60-89 days past due | 0.30% | 0.20% |
Percent of total loans, 90 days or more past due | 0.00% | 0.10% |
Percent of total loans, Total past due | 0.60% | 0.90% |
Percent of total loans, Non accrual | 2.40% | 4.60% |
Commercial Loan [Member] | ' | ' |
Current | 54,164 | 59,746 |
30-59 days past due | 248 | 380 |
60-89 days past due | 21 | 66 |
90 days or more past due | 0 | 0 |
Total past due | 269 | 446 |
Nonaccrual | 668 | 594 |
Total loans | 55,101 | 60,786 |
Consumer Loan [Member] | ' | ' |
Current | 11,099 | 13,125 |
30-59 days past due | 48 | 57 |
60-89 days past due | 45 | 19 |
90 days or more past due | 9 | 5 |
Total past due | 102 | 81 |
Nonaccrual | 47 | 87 |
Total loans | 11,248 | 13,293 |
Residential Real Estate [Member] | ' | ' |
Current | 272,819 | 272,311 |
30-59 days past due | 1,554 | 3,116 |
60-89 days past due | 375 | 762 |
90 days or more past due | 0 | 290 |
Total past due | 1,929 | 4,168 |
Nonaccrual | 5,405 | 11,532 |
Total loans | 280,153 | 288,011 |
Commercial Real Estate [Member] | ' | ' |
Current | 297,841 | 298,522 |
30-59 days past due | 0 | 887 |
60-89 days past due | 1,971 | 800 |
90 days or more past due | 0 | 165 |
Total past due | 1,971 | 1,852 |
Nonaccrual | 3,342 | 14,567 |
Total loans | 303,154 | 314,941 |
Construction Loans [Member] | ' | ' |
Current | 60,932 | 98,221 |
30-59 days past due | 0 | 136 |
60-89 days past due | 0 | 0 |
90 days or more past due | 0 | 0 |
Total past due | 0 | 136 |
Nonaccrual | 8,039 | 9,694 |
Total loans | $68,971 | $108,051 |
Loans_and_allowance_for_credit9
Loans and allowance for credit losses (Details 7) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Allowance for credit losses: | ' | ' | ' | ' |
Beginning balance | $15,723 | $12,990 | $15,991 | $14,288 |
Charge-offs | -27,019 | -6,391 | -32,649 | -19,902 |
Recoveries | 137 | 156 | 649 | 474 |
Net charge-offs | -26,882 | -6,235 | -32,000 | -19,428 |
Provision | 22,460 | 6,200 | 27,310 | 18,095 |
Ending balance | 11,301 | 12,955 | 11,301 | 12,955 |
Unallocated Financing Receivables [Member] | ' | ' | ' | ' |
Allowance for credit losses: | ' | ' | ' | ' |
Beginning balance | 87 | 408 | 187 | 22 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 | 0 |
Provision | 384 | -408 | 284 | -22 |
Ending balance | 471 | 0 | 471 | 0 |
Commercial Loan [Member] | ' | ' | ' | ' |
Allowance for credit losses: | ' | ' | ' | ' |
Beginning balance | 1,216 | 1,063 | 1,682 | 1,498 |
Charge-offs | -196 | -73 | -419 | -4,513 |
Recoveries | 47 | 22 | 149 | 230 |
Net charge-offs | -149 | -51 | -270 | -4,283 |
Provision | 205 | 524 | -140 | 4,321 |
Ending balance | 1,272 | 1,536 | 1,272 | 1,536 |
Consumer Loan [Member] | ' | ' | ' | ' |
Allowance for credit losses: | ' | ' | ' | ' |
Beginning balance | 301 | 304 | 407 | 594 |
Charge-offs | -3 | -31 | -65 | -208 |
Recoveries | 16 | 8 | 33 | 17 |
Net charge-offs | 13 | -23 | -32 | -191 |
Provision | -44 | -158 | -105 | -99 |
Ending balance | 270 | 304 | 270 | 304 |
Residential Real Estate [Member] | ' | ' | ' | ' |
Allowance for credit losses: | ' | ' | ' | ' |
Beginning balance | 4,259 | 4,237 | 5,194 | 5,014 |
Charge-offs | -4,225 | -2,323 | -6,114 | -7,996 |
Recoveries | 51 | 5 | 349 | 99 |
Net charge-offs | -4,174 | -2,318 | -5,765 | -7,897 |
Provision | 3,645 | 2,268 | 4,301 | 7,070 |
Ending balance | 3,730 | 4,187 | 3,730 | 4,187 |
Commercial Real Estate [Member] | ' | ' | ' | ' |
Allowance for credit losses: | ' | ' | ' | ' |
Beginning balance | 5,514 | 3,952 | 4,134 | 3,415 |
Charge-offs | -4,056 | -742 | -6,003 | -2,177 |
Recoveries | 20 | 116 | 113 | 123 |
Net charge-offs | -4,036 | -626 | -5,890 | -2,054 |
Provision | 2,090 | 275 | 5,324 | 2,240 |
Ending balance | 3,568 | 3,601 | 3,568 | 3,601 |
Construction Loans [Member] | ' | ' | ' | ' |
Allowance for credit losses: | ' | ' | ' | ' |
Beginning balance | 4,346 | 2,845 | 4,387 | 3,745 |
Charge-offs | -18,539 | -3,222 | -20,048 | -5,008 |
Recoveries | 3 | 5 | 5 | 5 |
Net charge-offs | -18,536 | -3,217 | -20,043 | -5,003 |
Provision | 16,180 | 3,699 | 17,646 | 4,585 |
Ending balance | $1,990 | $3,327 | $1,990 | $3,327 |
Other_Assets_Details
Other Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Nonmarketable investment securities | $2,058 | $2,750 |
Accrued interest receivable | 2,769 | 2,796 |
Insurance premiums receivable | 719 | 1,089 |
Income taxes receivable | 12,698 | 5,160 |
Deferred income taxes | 9,740 | 9,180 |
Prepaid expenses | 1,209 | 2,227 |
Other assets | 9,090 | 5,634 |
Total | $38,283 | $28,836 |
Other_Liabilities_Details
Other Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued interest payable | $271 | $339 |
Other accounts payable | 3,824 | 3,657 |
Deferred compensation liability | 1,481 | 2,431 |
Other liabilities | 1,926 | 2,320 |
Total | $7,502 | $8,747 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stock-based compensation expense | $18 | $33 | $58 | $174 |
Excess tax expense related to stock-based compensation | 0 | 0 | 26 | 106 |
Unrecognized stock-based compensation expense | ' | ' | $112 | $178 |
Weighted average period unrecognized expense is expected to be recognized | ' | ' | '1 year 8 months 12 days | '2 years 2 months 12 days |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Number of Shares, Nonvested at beginning of period | 6,548 |
Number of Shares, Granted | 3,930 |
Number of Shares, Vested | -6,548 |
Number of Shares, Cancelled | 0 |
Number of Shares, Nonvested at end of period | 3,930 |
Weighted Average Grant Date Fair Value, Nonvested at beginning of period | $14.89 |
Weighted Average Grant Date Fair Value, Granted | $6.81 |
Weighted Average Grant Date Fair Value, Vested | $14.89 |
Weighted Average Grant Date Fair Value, Cancelled | $0 |
Weighted Average Grant Date Fair Value, Nonvested at end of period | $6.81 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Number of Shares, Outstanding at beginning of period (in shares) | 54,216 |
Number of Shares, Granted (in shares) | 0 |
Number of Shares, Exercised (in shares) | 0 |
Number of Shares, Expired/Cancelled (in shares) | 0 |
Number of Shares, Outstanding at end of period (in shares) | 54,216 |
Number of Shares, Exercisable at end of period (in shares) | 0 |
Weighted Average Exercise Price, Outstanding at beginning of period | $6.64 |
Weighted Average Exercise Price, Granted | $0 |
Weighted Average Exercise Price, Exercised | $0 |
Weighted Average Exercise Price, Expired/Cancelled | $0 |
Weighted Average Exercise Price, Outstanding at end of period | $6.64 |
Weighted Average Exercise Price, Exercisable at end of period | $0 |
Weighted Average Grant Date Fair Value, Outstanding at beginning of period | $3.44 |
Weighted Average Grant Date Fair Value, Granted | $0 |
Weighted Average Grant Date Fair Value, Exercised | $0 |
Weighted Average Grant Date Fair Value, Expired/Cancelled | $0 |
Weighted Average Grant Date Fair Value, Outstanding at end of period | $3.44 |
Weighted Average Grant Date Fair Value, Exercisable at end of period | $0 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 3) | 9 Months Ended |
Sep. 30, 2013 | |
Dividend yield | 0.60% |
Expected volatility | 58.65% |
Risk-free interest rate | 1.69% |
Expected contract life (in years) | '5 years 9 months 29 days |
StockBased_Compensation_Detail4
Stock-Based Compensation (Details Textual) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $117 |
Share-based Compensation Arrangement by Share-based Payment Award, Estimated Fair Value of Stock Price (in dollars per share) | $8.80 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '8 years 6 months |
Equity Plan 2006 [Member] | ' |
Share-based Compensation Shares Authorized Under Stock Option Plans Expire Period | '10 years |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated other comprehensive income (loss), Beginning Balance | $708 | ($1,689) |
Other comprehensive (loss) income | -1,482 | 1,661 |
Reclassification of (gains) losses recognized | 234 | -166 |
Accumulated other comprehensive income (loss), Ending Balance | -540 | -194 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' |
Accumulated other comprehensive income (loss), Beginning Balance | 1,894 | 1,370 |
Other comprehensive (loss) income | -1,889 | 910 |
Reclassification of (gains) losses recognized | -545 | -166 |
Accumulated other comprehensive income (loss), Ending Balance | -540 | 2,114 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' |
Accumulated other comprehensive income (loss), Beginning Balance | -1,186 | -3,059 |
Other comprehensive (loss) income | 407 | 751 |
Reclassification of (gains) losses recognized | 779 | 0 |
Accumulated other comprehensive income (loss), Ending Balance | $0 | ($2,308) |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | $135,862,000 | $145,508,000 |
Interest rate caps | 0 | 14,000 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 5,369,000 | 0 |
Interest rate caps | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 130,493,000 | 145,508,000 |
Interest rate caps | 0 | 14,000 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Interest rate caps | 0 | 0 |
US Government and Government Agencies and Authorities [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 46,214,000 | 36,107,000 |
US Government and Government Agencies and Authorities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
US Government and Government Agencies and Authorities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 46,214,000 | 36,107,000 |
US Government and Government Agencies and Authorities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Mortgage Backed Securities, Other [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 83,671,000 | 108,780,000 |
Mortgage Backed Securities, Other [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Mortgage Backed Securities, Other [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 83,671,000 | 108,780,000 |
Mortgage Backed Securities, Other [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Equity Securities Others [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 608,000 | 621,000 |
Equity Securities Others [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Equity Securities Others [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 608,000 | 621,000 |
Equity Securities Others [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
US Treasury Securities [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 5,369,000 | ' |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 5,369,000 | ' |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | ' |
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Securities available for sale: | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | $0 | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Impaired loans: | ' | ' |
Beginning balance | $86,626 | $75,112 |
Charge-offs | -31,062 | -16,034 |
Payments | -11,923 | -11,348 |
Transferred to loans held for sale | -22,107 | 0 |
Transferred to other real estate owned | -2,535 | -4,458 |
Returned to performing status | -3,523 | -240 |
Changed to nonaccrual status | -3,367 | -1,452 |
Additions | 33,750 | 47,181 |
Changes in allowance | 34 | 1,447 |
Ending balance | 45,893 | 90,208 |
Construction [Member] | ' | ' |
Impaired loans: | ' | ' |
Beginning balance | 36,088 | 27,166 |
Charge-offs | -19,377 | -4,965 |
Payments | -1,510 | -976 |
Transferred to loans held for sale | -9,820 | 0 |
Transferred to other real estate owned | -205 | -1,631 |
Returned to performing status | 0 | 0 |
Changed to nonaccrual status | 0 | -666 |
Additions | 3,821 | 20,856 |
Changes in allowance | 519 | 151 |
Ending balance | 9,516 | 39,935 |
Residential Real Estate [Member] | ' | ' |
Impaired loans: | ' | ' |
Beginning balance | 17,951 | 22,602 |
Charge-offs | -4,664 | -7,628 |
Payments | -2,183 | -8,405 |
Transferred to loans held for sale | -5,492 | 0 |
Transferred to other real estate owned | -729 | -1,463 |
Returned to performing status | -2,448 | -201 |
Changed to nonaccrual status | -1,626 | -786 |
Additions | 20,764 | 14,256 |
Changes in allowance | -326 | 1,296 |
Ending balance | 21,247 | 19,671 |
Commercial Real Estate [Member] | ' | ' |
Impaired loans: | ' | ' |
Beginning balance | 31,833 | 23,578 |
Charge-offs | -6,893 | -2,177 |
Payments | -8,170 | -1,858 |
Transferred to loans held for sale | -6,795 | 0 |
Transferred to other real estate owned | -1,601 | -1,334 |
Returned to performing status | -1,075 | 0 |
Changed to nonaccrual status | -1,741 | 0 |
Additions | 8,747 | 10,693 |
Changes in allowance | 159 | 0 |
Ending balance | 14,464 | 28,902 |
Commercial [Member] | ' | ' |
Impaired loans: | ' | ' |
Beginning balance | 715 | 1,738 |
Charge-offs | -90 | -1,264 |
Payments | -47 | -105 |
Transferred to loans held for sale | 0 | 0 |
Transferred to other real estate owned | 0 | -30 |
Returned to performing status | 0 | -39 |
Changed to nonaccrual status | 0 | 0 |
Additions | 374 | 1,346 |
Changes in allowance | -305 | 0 |
Ending balance | 647 | 1,646 |
Consumer [Member] | ' | ' |
Impaired loans: | ' | ' |
Beginning balance | 39 | 28 |
Charge-offs | -38 | 0 |
Payments | -13 | -4 |
Transferred to loans held for sale | 0 | 0 |
Transferred to other real estate owned | 0 | 0 |
Returned to performing status | 0 | 0 |
Changed to nonaccrual status | 0 | 0 |
Additions | 44 | 30 |
Changes in allowance | -13 | 0 |
Ending balance | $19 | $54 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other real estate owned: | ' | ' | ' | ' |
Beginning balance | ' | ' | $7,659 | $9,385 |
Sales | ' | ' | -3,793 | -4,605 |
Write-downs | -219 | -224 | -947 | -1,077 |
Additions | ' | ' | 2,857 | 4,715 |
Ending balance | $5,776 | $8,418 | $5,776 | $8,418 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Financial assets, Carrying Amount | ' | ' | ' | ' |
Cash and cash equivalents, Carrying Amount | $106,922 | $200,193 | $183,448 | $127,742 |
Investment securities held to maturity, Carrying Amount | 2,357 | 2,657 | ' | ' |
Loans, net, Carrying Amount | 707,326 | 769,091 | ' | ' |
Financial liabilities, Carrying Amount | ' | ' | ' | ' |
Deposits, Carrying Amount | 930,413 | 1,049,273 | ' | ' |
Short-term borrowings, Carrying Amount | 11,468 | 13,761 | ' | ' |
Financial assets, Estimated Fair Value | ' | ' | ' | ' |
Investment securities held to maturity, Estimated Fair Value | 2,471 | 2,884 | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Financial assets, Estimated Fair Value | ' | ' | ' | ' |
Cash and cash equivalents, Estimated Fair Value | 106,922 | 200,193 | ' | ' |
Investment securities held to maturity, Estimated Fair Value | 2,471 | 2,884 | ' | ' |
Financial liabilities, Estimated Fair Value | ' | ' | ' | ' |
Deposits, Estimated Fair Value | 929,587 | 1,052,382 | ' | ' |
Short-term borrowings, Estimated Fair Value | 11,468 | 13,761 | ' | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' |
Financial assets, Estimated Fair Value | ' | ' | ' | ' |
Loans, net, Estimated Fair Value | $728,466 | $798,381 | ' | ' |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2009 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Interest Rate Caps Purchased | ' | ' | $7,100,000 | ' | ' | ' |
Derivative Cap Fixed Interest Rate | ' | ' | 2.97% | ' | ' | ' |
Deposits, Money Market Deposits | ' | ' | 70,000,000 | ' | ' | ' |
Future Interest Expenses on Hedge Terminated | ' | ' | ' | 1,300,000 | ' | ' |
Interest rate caps | 0 | ' | ' | 0 | ' | 14,000 |
Reduction in Money Market Deposits | ' | ' | ' | 204,300,000 | ' | 279,000,000 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 0 | 479,000 | ' | 681,000 | 1,259,000 | ' |
Interest Expense Hedged Deposits | ' | ' | ' | 695,000 | 1,500,000 | ' |
Accounts Payable, Interest-Bearing | $0 | ' | ' | $0 | ' | $428,000 |
Financial_Instruments_with_Off2
Financial Instruments with Off-Balance Sheet Risk (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments to extend credit | $129,572 | $141,518 |
Letters of credit | 12,286 | 12,817 |
Total | $141,858 | $154,335 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Interest income | $10,182 | $11,393 | $31,544 | $34,941 | ' |
Interest expense | -1,354 | -2,663 | -5,238 | -7,983 | ' |
Provision for credit losses | -22,460 | -6,200 | -27,310 | -18,095 | ' |
Noninterest income | 4,792 | 4,001 | 13,244 | 13,152 | ' |
Noninterest expense | -9,968 | -9,709 | -30,218 | -29,870 | ' |
Net intersegment (expense) income | ' | ' | 0 | 0 | ' |
(Loss) income before taxes | -18,808 | -3,178 | -17,978 | -7,855 | ' |
Income tax benefit (expense) | 7,416 | 1,357 | 7,169 | 3,291 | ' |
Net (loss) income | -11,392 | -1,821 | -10,809 | -4,564 | ' |
Total assets | 1,051,384 | 1,178,633 | 1,051,384 | 1,178,633 | 1,185,807 |
Community Banking [Member] | ' | ' | ' | ' | ' |
Interest income | ' | ' | 31,509 | 34,882 | ' |
Interest expense | ' | ' | -5,238 | -7,967 | ' |
Provision for credit losses | ' | ' | -27,310 | -18,095 | ' |
Noninterest income | ' | ' | 4,192 | 5,089 | ' |
Noninterest expense | ' | ' | -17,449 | -17,969 | ' |
Net intersegment (expense) income | ' | ' | -3,982 | -3,903 | ' |
(Loss) income before taxes | ' | ' | -18,278 | -7,963 | ' |
Income tax benefit (expense) | ' | ' | 7,289 | 3,336 | ' |
Net (loss) income | ' | ' | -10,989 | -4,627 | ' |
Total assets | 1,032,956 | 1,159,766 | 1,032,956 | 1,159,766 | ' |
Insurance Products and Services [Member] | ' | ' | ' | ' | ' |
Interest income | ' | ' | 35 | 59 | ' |
Interest expense | ' | ' | 0 | 0 | ' |
Provision for credit losses | ' | ' | 0 | 0 | ' |
Noninterest income | ' | ' | 9,046 | 7,974 | ' |
Noninterest expense | ' | ' | -7,638 | -7,407 | ' |
Net intersegment (expense) income | ' | ' | -530 | -392 | ' |
(Loss) income before taxes | ' | ' | 913 | 234 | ' |
Income tax benefit (expense) | ' | ' | -364 | -98 | ' |
Net (loss) income | ' | ' | 549 | 136 | ' |
Total assets | 15,973 | 16,920 | 15,973 | 16,920 | ' |
Parent Company [Member] | ' | ' | ' | ' | ' |
Interest income | ' | ' | 0 | 0 | ' |
Interest expense | ' | ' | 0 | -16 | ' |
Provision for credit losses | ' | ' | 0 | 0 | ' |
Noninterest income | ' | ' | 6 | 89 | ' |
Noninterest expense | ' | ' | -5,131 | -4,494 | ' |
Net intersegment (expense) income | ' | ' | 4,512 | 4,295 | ' |
(Loss) income before taxes | ' | ' | -613 | -126 | ' |
Income tax benefit (expense) | ' | ' | 244 | 53 | ' |
Net (loss) income | ' | ' | -369 | -73 | ' |
Total assets | $2,455 | $1,947 | $2,455 | $1,947 | ' |
Subsequent_Event_Details_Textu
Subsequent Event (Details Textual) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Gain (Loss) on Disposition of Property Plant Equipment, Total | $0 | $214,000 |
Subsequent Event [Member] | ' | ' |
Gain (Loss) on Disposition of Property Plant Equipment, Total | 19,800,000 | ' |
Loans Charge Off Associated With Asset Sale | 19,600,000 | ' |
Provision for Other Credit Losses | 19,600,000 | ' |
Write Downs On Other Real Estate Owned | $182,000 | ' |