Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 28, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | SHORE BANCSHARES INC | ||
Entity Central Index Key | 1035092 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Trading Symbol | SHBI | ||
Entity Common Stock, Shares Outstanding | 12,625,276 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $111,512,355 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $24,211 | $21,238 |
Interest-bearing deposits with other banks | 68,460 | 109,384 |
Federal funds sold | 3,552 | 468 |
Investment securities: | ||
Available for sale, at fair value | 236,108 | 147,101 |
Held to maturity, at amortized cost - fair value of $4,694 (2014) and $5,062 (2013) | 4,630 | 5,185 |
Loans held for sale | 0 | 3,521 |
Loans | 710,746 | 711,919 |
Less: allowance for credit losses | -7,695 | -10,725 |
Loans, net | 703,051 | 701,194 |
Premises and equipment, net | 16,275 | 15,198 |
Goodwill | 11,931 | 12,454 |
Other intangible assets, net | 1,331 | 3,520 |
Other real estate owned, net | 3,691 | 3,779 |
Other assets | 27,162 | 31,082 |
Total assets | 1,100,402 | 1,054,124 |
Deposits: | ||
Noninterest-bearing | 193,814 | 172,797 |
Interest-bearing | 755,190 | 760,671 |
Total deposits | 949,004 | 933,468 |
Short-term borrowings | 4,808 | 10,140 |
Other liabilities | 6,121 | 7,217 |
Total liabilities | 959,933 | 950,825 |
STOCKHOLDERS’ EQUITY | ||
Common stock, par value $.01, authorized 35,000,000 shares; shares issued and outstanding-12,618,513 (2014) and 8,471,289 (2013) | 126 | 85 |
Additional paid in capital | 63,532 | 32,207 |
Retained earnings | 76,495 | 71,444 |
Accumulated other comprehensive income (loss) | 316 | -437 |
Total stockholders’ equity | 140,469 | 103,299 |
Total liabilities and stockholders’ equity | $1,100,402 | $1,054,124 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Securities held to maturity, estimated fair value (in dollars) | $4,694 | $5,062 |
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 | 12,618,513 | 8,471,289 |
Common stock, shares outstanding | 12,618,513 | 8,471,289 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTEREST INCOME | |||
Interest and fees on loans | $35,140 | $39,058 | $42,698 |
Interest and dividends on investment securities: | |||
Taxable | 2,957 | 2,072 | 2,815 |
Tax-exempt | 12 | 17 | 104 |
Interest on federal funds sold | 1 | 4 | 10 |
Interest on deposits with other banks | 179 | 200 | 274 |
Total interest income | 38,289 | 41,351 | 45,901 |
INTEREST EXPENSE | |||
Interest on deposits | 4,229 | 6,448 | 10,501 |
Interest on short-term borrowings | 18 | 27 | 45 |
Interest on long-term debt | 0 | 0 | 16 |
Total interest expense | 4,247 | 6,475 | 10,562 |
NET INTEREST INCOME | 34,042 | 34,876 | 35,339 |
Provision for credit losses | 3,350 | 27,784 | 27,745 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 30,692 | 7,092 | 7,594 |
NONINTEREST INCOME | |||
Service charges on deposit accounts | 2,407 | 2,371 | 2,551 |
Trust and investment fee income | 1,860 | 1,613 | 1,644 |
Gains on sales of investment securities | 23 | 913 | 278 |
Insurance agency commissions income | 9,525 | 10,647 | 9,814 |
Loss on termination of cash flow hedge | 0 | -1,306 | -1,339 |
Other noninterest income | 2,966 | 3,221 | 2,810 |
Total noninterest income | 16,781 | 17,459 | 15,758 |
NONINTEREST EXPENSE | |||
Salaries and wages | 17,600 | 17,346 | 17,418 |
Employee benefits | 4,092 | 4,094 | 3,994 |
Occupancy expense | 2,339 | 2,344 | 2,559 |
Furniture and equipment expense | 975 | 1,020 | 963 |
Data processing | 3,006 | 2,900 | 2,717 |
Directors’ fees | 474 | 354 | 474 |
Amortization of other intangible assets | 201 | 296 | 392 |
Insurance agency commissions expense | 906 | 1,798 | 1,391 |
FDIC insurance premium expense | 1,636 | 1,813 | 1,380 |
Write-downs of other real estate owned | 658 | 1,318 | 1,328 |
Other noninterest expenses | 7,474 | 7,403 | 6,939 |
Total noninterest expense | 39,361 | 40,686 | 39,555 |
INCOME (LOSS) BEFORE INCOME TAXES | 8,112 | -16,135 | -16,203 |
Income tax expense (benefit) | 3,061 | -6,501 | -6,565 |
NET INCOME (LOSS) | $5,051 | ($9,634) | ($9,638) |
Basic income (loss) per common share (in dollars per share) | $0.46 | ($1.14) | ($1.14) |
Diluted income (loss) per common share (in dollars per share) | $0.46 | ($1.14) | ($1.14) |
Cash dividends paid per common share (in dollars per share) | $0 | $0 | $0.01 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income (loss) | $5,051 | ($9,634) | ($9,638) |
Securities available for sale: | |||
Unrealized holding gains (losses) on available-for-sale securities | 1,285 | -2,995 | 1,155 |
Tax effect | -518 | 1,209 | -465 |
Reclassification of gains recognized in net income (loss) | -23 | -913 | -278 |
Tax effect | 9 | 368 | 112 |
Net of tax amount | 753 | -2,331 | 524 |
Cash flow hedging activities: | |||
Unrealized holding gains on cash flow hedging activities | 0 | 681 | 1,801 |
Tax effect | 0 | -274 | -727 |
Reclassification of losses recognized in net loss | 0 | 1,306 | 1,339 |
Tax effect | 0 | -527 | -540 |
Net of tax amount | 0 | 1,186 | 1,873 |
Total other comprehensive income (loss) | 753 | -1,145 | 2,397 |
Comprehensive income (loss) | $5,804 | ($10,779) | ($7,241) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Warrant [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | ||||||
Balances at Dec. 31, 2011 | $121,249 | $85 | $0 | $32,052 | $90,801 | ($1,689) |
Net income (loss) | -9,638 | 0 | 0 | 0 | -9,638 | 0 |
Unrealized gains on available-for-sale securities, net of reclassification adjustment, net of taxes | 524 | 0 | 0 | 0 | 0 | 524 |
Unrealized losses on cash flow hedging activities, net of reclassification adjustment, net of taxes | 1,873 | 0 | 0 | 0 | 0 | 1,873 |
Stock-based compensation | 103 | 0 | 0 | 103 | 0 | 0 |
Cash dividends paid ($0.01 per share) | -85 | 0 | 0 | 0 | -85 | 0 |
Balances at Dec. 31, 2012 | 114,026 | 85 | 0 | 32,155 | 81,078 | 708 |
Net income (loss) | -9,634 | 0 | 0 | 0 | -9,634 | 0 |
Unrealized gains on available-for-sale securities, net of reclassification adjustment, net of taxes | -2,331 | 0 | 0 | 0 | 0 | -2,331 |
Unrealized losses on cash flow hedging activities, net of reclassification adjustment, net of taxes | 1,186 | 0 | 0 | 0 | 0 | 1,186 |
Stock-based compensation | 52 | 0 | 0 | 52 | 0 | 0 |
Balances at Dec. 31, 2013 | 103,299 | 85 | 0 | 32,207 | 71,444 | -437 |
Net income (loss) | 5,051 | 0 | 0 | 0 | 5,051 | 0 |
Unrealized gains on available-for-sale securities, net of reclassification adjustment, net of taxes | 753 | 0 | 0 | 0 | 0 | 753 |
Unrealized losses on cash flow hedging activities, net of reclassification adjustment, net of taxes | 0 | |||||
Issuance of common stock through public offering, net | 31,279 | 41 | 0 | 31,238 | 0 | 0 |
Stock-based compensation | 87 | 0 | 0 | 87 | 0 | 0 |
Balances at Dec. 31, 2014 | $140,469 | $126 | $0 | $63,532 | $76,495 | $316 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash dividends paid (in dollars per share) | $0 | $0 | $0.01 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income (loss) | $5,051 | ($9,634) | ($9,638) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Provision for credit losses | 3,350 | 27,784 | 27,745 | |
Depreciation and amortization | 2,312 | 2,392 | 2,648 | |
Discount accretion on debt securities | -60 | -43 | -70 | |
Stock-based compensation expense | 87 | [1] | 78 | 209 |
Excess tax benefit from stock-based arrangements | 0 | -26 | -106 | |
Deferred income tax expense (benefit) | 2,836 | -6,132 | -4,768 | |
Gains on sales of investment securities | -23 | -913 | -278 | |
Losses (gains) on disposals of premises and equipment | 82 | 0 | -192 | |
Losses on sales and write-downs of other real estate owned | 687 | 1,669 | 2,015 | |
Gain on sale of wholesale insurance subsidiary | -114 | 0 | 0 | |
Loss on termination of cash flow hedge | 0 | 1,306 | 1,339 | |
Net changes in: | ||||
Accrued interest receivable | -102 | 235 | 1,137 | |
Other assets | 170 | 4,703 | 1,351 | |
Accrued interest payable | -53 | -114 | -230 | |
Other liabilities | -1,044 | -1,458 | 224 | |
Net cash provided by operating activities | 13,179 | 19,847 | 21,386 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Proceeds from maturities and principal payments of investment securities available for sale | 43,418 | 38,512 | 47,854 | |
Proceeds from sales of investment securities available for sale | 988 | 40,351 | 6,275 | |
Proceeds from sales of investment securities held to maturity | 113 | 0 | 0 | |
Purchases of investment securities available for sale | -133,006 | -87,243 | -69,491 | |
Proceeds from maturities and principal payments of investment securities held to maturity | 443 | 439 | 3,810 | |
Net change in loans | -3,982 | 12,957 | 23,896 | |
Proceeds from sale of loans | 0 | 20,565 | 0 | |
Purchases of premises and equipment | -2,077 | -545 | -2,202 | |
Proceeds from sales of premises and equipment | 0 | 4 | 317 | |
Proceeds from sales of other real estate owned | 1,697 | 5,325 | 5,742 | |
Proceeds from sale of subsidiary | 2,878 | 0 | 0 | |
Return of investment (investment in) unconsolidated subsidiary | 0 | 85 | 0 | |
Net cash (used in) provided by investing activities | -89,528 | 30,450 | 16,201 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Noninterest-bearing deposits | 21,017 | 18,805 | 20,191 | |
Interest-bearing deposits | -5,482 | -134,610 | 19,163 | |
Short-term borrowings | -5,332 | -3,621 | -4,056 | |
Proceeds from issuance of common stock | 31,279 | 0 | 0 | |
Excess tax benefit from stock-based arrangements | 0 | 26 | 106 | |
Repayment of long-term debt | 0 | 0 | -455 | |
Common stock dividends paid | 0 | 0 | -85 | |
Net cash provided by (used in) financing activities | 41,482 | -119,400 | 34,864 | |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -34,867 | -69,103 | 72,451 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 131,090 | 200,193 | 127,742 | |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 96,223 | 131,090 | 200,193 | |
Supplemental cash flow information: | ||||
Interest paid | 4,300 | 6,589 | 10,792 | |
Income taxes paid | 243 | 265 | 163 | |
Transfers from loans to other real estate owned | 2,295 | 3,071 | 6,031 | |
Transfers from loans to loans held for sale | 0 | 23,635 | 0 | |
Transfers from loans held for sale to loans | $3,521 | $0 | $0 | |
[1] | On January 7, 2015 restricted stock and options were granted to executive officers in the amount of $62 thousand in restricted stock awards and $117 thousand in option awards. The restricted stock and options immediately vested 50% on the grant date of January 7, 2015, in which the amount of $90 thousand was accrued at December 31, 2014 and recorded as an other liability. On January 7, 2015 the liability for the restricted shares and the options was reclassified to additional paid-in-capital. The January 7, 2015 awarded grants are excluded from the tables above because including them would not properly reflect the outstanding shares at December 31, 2014. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiaries (collectively referred to in these Notes as the “Company”), with all significant intercompany transactions eliminated. The investments in subsidiaries are recorded on the Company’s books (Parent only) on the basis of its equity in the net assets of the subsidiaries. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”). For purposes of comparability, certain reclassifications have been made to amounts previously reported to conform with the current period presentation. | |
Nature of Operations | |
The Company engages in the banking business through CNB, a Maryland commercial bank with trust powers, and The Talbot Bank of Easton, Maryland, a Maryland commercial bank (“Talbot Bank”). Through December 31, 2010, the Company also engaged in the banking business through The Felton Bank, a Delaware commercial bank (“Felton Bank” and, together with CNB and Talbot Bank, the “Banks”), which was merged into CNB on January 1, 2011. The Company’s primary source of revenue is interest earned on commercial, real estate and consumer loans made to customers located on the Delmarva Peninsula. The Company engages in the insurance business through two general insurance producer firms, The Avon-Dixon Agency, LLC, a Maryland limited liability company, and Elliott Wilson Insurance, LLC, a Maryland limited liability company; one marine insurance producer firm, Jack Martin & Associates, Inc., a Maryland corporation; a insurance premium finance company, Mubell Finance, LLC, a Maryland limited liability company (all of the foregoing insurance entities are collectively referred to as the “Insurance Subsidiaries”). | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
The allowance for credit losses is a material estimate that is particularly susceptible to significant changes in the near term. Management believes that the Company’s current allowance for credit losses is sufficient to address the probable losses in the current portfolio. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination processes, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. | |
Investment Securities Available for Sale | |
Investment securities available for sale are stated at estimated fair value based on quoted prices. They represent those securities which management may sell as part of its asset/liability management strategy or which may be sold in response to changing interest rates, changes in prepayment risk or other similar factors. The cost of securities sold is determined by the specific identification method. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Net unrealized holding gains and losses on these securities are reported as accumulated other comprehensive income, a separate component of stockholders’ equity, net of related income taxes. Declines in the fair value of individual available-for-sale securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value and are reflected in earnings as realized losses. Factors affecting the determination of whether an other-than-temporary impairment has occurred include a downgrade of the security by a rating agency, a significant deterioration in the financial condition of the issuer, or a determination that management has the intent to sell the security or will be required to sell the security before recovery of its amortized cost. | |
Investment Securities Held to Maturity | |
Investment securities held to maturity are stated at cost adjusted for amortization of premiums and accretion of discounts. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The Company intends and has the ability to hold such securities until maturity. Declines in the fair value of individual held-to-maturity securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value. Factors affecting the determination of whether an other-than-temporary impairment has occurred include a downgrade of the security by a rating agency, a significant deterioration in the financial condition of the issuer, or a determination that management has the intent to sell the security or will be required to sell the security before recovery of its amortized cost. | |
Loans | |
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 homogeneous 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 below under the section, “Allowance for Credit Losses”. | |
A loan is considered a troubled debt restructuring (“TDR”) 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. Loans are identified to be restructured when signs of impairment arise such as borrower interest rate reduction request, slowness to pay, or when an inability to repay becomes evident. The terms being offered are evaluated to determine if they are more liberal than those that would be indicated by policy or industry standards for similar, untroubled credits. In those situations where the terms or the interest rates are considered to be more favorable than industry standards or the current underwriting guidelines of the Company’s banking subsidiaries, the loan is classified as a TDR. All loans designated as TDRs are considered impaired loans and may be on either accrual or nonaccrual status. In instances where the loan has been placed on nonaccrual status, six consecutive months of timely payments are required prior to returning the loan to accrual status. | |
All loans classified as TDRs which are restructured and accrue interest under revised terms require a full and comprehensive review of the borrower’s financial condition, capacity for repayment, realistic assessment of collateral values, and the assessment of risk entered into any workout agreement. Current financial information on the borrower, guarantor, and underlying collateral is analyzed to determine if it supports the ultimate collection of principal and interest. For commercial loans, the cash flows are analyzed, both for the underlying project and globally. For consumer loans, updated salary, credit history and cash flow information is obtained. Current market conditions are also considered. Following a full analysis, the determination of the appropriate loan structure is made. The Company does not participate in any specific government or Company sponsored loan modification programs. All TDR loan agreements are contracts negotiated with each of the borrowers. | |
On October 28, 2013, Talbot Bank entered into agreements to sell assets with an aggregate book value of $45.0 million for a price of $25.2 million. The assets consisted of $11.1 million of nonaccrual loans, $30.4 million of accruing TDRs, $1.8 million of adversely classified performing loans and $1.7 million of other real estate owned. The execution of these agreements was consummated in the fourth quarter of 2013. | |
Allowance for Credit Losses | |
The allowance for credit losses is maintained at a level believed adequate by management to absorb losses inherent in the loan portfolio as of the balance sheet date and is based on the size and current risk characteristics of the loan portfolio, an assessment of individual problem loans and actual loss experience, current economic events in specific industries and geographical areas, including unemployment levels, and other pertinent factors, including regulatory guidance and general economic conditions and other observable data. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows or collateral value of impaired loans, estimated losses on pools of homogeneous loans that are based on historical loss experience, and consideration of current economic trends, all of which may be susceptible to significant change. Loans, or portions thereof, that are considered uncollectible are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is charged to operations based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. Evaluations are conducted at least quarterly and more often if deemed necessary. | |
The allowance for credit losses is an estimate of the losses that may be sustained in the loan portfolio. The allowance is based on two basic principles of accounting: (i) Accounting Standards Codification (“ASC”) Topic 450, “Contingencies”, which requires that losses be accrued when they are probable of occurring and estimable; and (ii) ASC Topic 310, “Receivables,” which requires that losses be accrued based on the differences between the loan balance and the value of collateral, present value of future cash flows or values that are observable in the secondary market. Management uses many factors to estimate the inherent loss that may be present in our loan portfolio, including economic conditions and trends, the value and adequacy of collateral, the volume and mix of the loan portfolio, and our internal loan processes. Actual losses could differ significantly from management’s estimates. In addition, GAAP itself may change from one previously acceptable method to another. Although the economics of transactions would be the same, the timing of events that would impact the transactions could change. | |
The allowance for credit losses is comprised of three parts: (i) the specific allowance; (ii) the formula allowance; and (iii) the unallocated allowance. The specific allowance is established against impaired loans (i.e., nonaccrual loans and accruing TDRs) until charge offs are made. The formula allowance, described below, is determined based on management’s assessment of industry trends and economic factors in the markets in which we operate. The determination of the formula allowance involves a higher risk of uncertainty and considers current risk factors that may not have yet manifested themselves in our historical loss factors. The unallocated allowance captures losses that have impacted the portfolio but have yet to be recognized in either the specific or formula allowance. | |
The formula allowance is used to estimate the loss on internally risk-rated loans, exclusive of those identified as impaired. Loans are grouped by type (construction, residential real estate, commercial real estate, commercial or consumer). Each loan type is assigned allowance factors based on management’s estimate of the risk, complexity and size of individual loans within a particular category. Loans that are identified as special mention, substandard and doubtful are adversely rated. These loans are assigned higher allowance factors than favorably rated loans due to management’s concerns regarding collectability or management’s knowledge of particular elements regarding the borrower. A special mention loan has potential weaknesses that could result in a future loss to the Company if the weaknesses are realized. A substandard loan has certain deficiencies that could result in a future loss to the Company if these deficiencies are not corrected. A doubtful loan has enough risk that there is a high probability that the Company will sustain a loss. | |
Premises and Equipment | |
Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets. Useful lives range from three to 10 years for furniture, fixtures and equipment; three to five years for computer hardware and data handling equipment; and 10 to 40 years for buildings and building improvements. Land improvements are amortized over a period of 15 years and leasehold improvements are amortized over the term of the respective lease. Sale-leaseback transactions are considered normal leasebacks and any realized gains are deferred and amortized to other income on a straight-line basis over the initial lease term. Maintenance and repairs are charged to expense as incurred, while improvements which extend the useful life of an asset are capitalized and depreciated over the estimated remaining life of the asset. | |
Long-lived assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of a long-lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset. | |
Goodwill and Other Intangible Assets | |
Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that also lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability. Goodwill and other intangible assets with indefinite lives are tested at least annually for impairment, usually during the third quarter, or on an interim basis if circumstances dictate. Intangible assets that have finite lives are amortized over their estimated useful lives and also are subject to impairment testing. The Company’s other intangible assets that have finite lives are amortized on a straight-line basis over varying periods not exceeding 21 years. | |
Impairment testing requires that the fair value of each of the Company’s reporting units be compared to the carrying amount of its net assets, including goodwill. The Company’s reporting units were identified based on an analysis of each of its individual operating segments. If the fair value of a reporting unit is less than book value, an expense may be required to write down the related goodwill or purchased intangibles to record an impairment loss. | |
During the third quarter of 2014 and 2013, goodwill and other intangible assets were subjected to the annual assessment for impairment. As a result of the assessment, it was determined that it was not more likely than not that the fair values of the Company’s reporting units were less than their carrying amounts so no impairment was recorded. | |
Other Real Estate Owned | |
Other real estate owned represents assets acquired in satisfaction of loans either by foreclosure or deeds taken in lieu of foreclosure. Properties acquired are recorded at the lower of cost or fair value less estimated selling costs at the time of acquisition with any deficiency charged to the allowance for credit losses. Thereafter, costs incurred to operate or carry the properties as well as reductions in value as determined by periodic appraisals are charged to operating expense. Gains and losses resulting from the final disposition of the properties are included in noninterest income. | |
Short-Term Borrowings | |
Short-term borrowings are comprised primarily of repurchase agreements. The repurchase agreements are securities sold to the Company’s customers, at the customers’ request, under a continuing “roll-over” contract that matures in one business day. The underlying securities sold are U.S. Government agency securities, which are segregated from the Company’s other investment securities by its safekeeping agents. | |
Income Taxes | |
Shore Bancshares, Inc. and its subsidiaries file a consolidated federal income tax return. The Company accounts for income taxes using the liability method in accordance with required accounting guidance. Under this method, deferred tax assets and liabilities are determined by applying the applicable federal and state income tax rates to cumulative temporary differences. These temporary differences represent differences between financial statement carrying amounts and the corresponding tax bases of certain assets and liabilities. Deferred taxes result from such temporary differences. | |
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent on the generation of a sufficient level of future taxable income, recoverable taxes paid in prior years and tax planning strategies. | |
The Company recognizes accrued interest and penalties as a component of tax expense. The Company does not have any uncertain tax positions and did not recognize any adjustments for unrecognized tax benefits. The Company remains subject to examination for income tax returns ending after December 31, 2011. | |
Basic and Diluted Earnings Per Common Share | |
Basic earnings (loss) per share is calculated by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding and does not include the effect of any potentially dilutive common stock equivalents. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding, adjusted for the effect of any potentially dilutive common stock equivalents. There is no dilutive effect on the loss per share during loss periods. | |
Transfers of Financial Assets | |
Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
Statement of Cash Flows | |
Cash and due from banks, interest-bearing deposits with other banks and federal funds sold are considered “cash and cash equivalents” for financial reporting purposes. | |
Stock-Based Compensation | |
Accounting guidance for stock-based compensation requires that expense relating to such transactions be recognized as compensation cost in the income statement. Stock-based compensation expense is recognized ratably over the requisite service period for all awards and is based on the grant date fair value. See Note 12 for a further discussion. | |
Derivative Instruments and Hedging Activities | |
Under accounting guidance for derivative instruments and hedging activities, all derivatives are recorded as other assets or other liabilities on the balance sheet at their respective fair values. When the purpose of a derivative is to hedge the variability of a floating rate asset or liability, the derivative is considered a “cash flow” hedge. To account for the effective portion of a cash flow hedge, unrealized gains and losses due to changes in the fair value of the derivative designated as a cash flow hedge are recorded in other comprehensive income. Ineffectiveness resulting from differences between the cash flows of the hedged item and changes in fair value of the derivative is recognized as other noninterest income. The net interest settlement on a derivative designated as a cash flow hedge is treated as an adjustment of the interest income or interest expense of the hedged asset or liability. | |
Fair Value | |
The Company measures certain financial assets and liabilities at fair value. Significant financial instruments measured at fair value on a recurring basis are investment securities and interest rate caps. Impaired loans and other real estate owned are significant financial instruments measured at fair value on a nonrecurring basis. See Note 20 for a further discussion of fair value. | |
Advertising Costs | |
Advertising costs are generally expensed as incurred. The Company incurred advertising costs of approximately $428 thousand, $848 thousand and $338 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Subsequent Events | |
The Company has evaluated the accompanying consolidated financial statements for subsequent events and transactions through the date of the auditor’s report, which is the date these financial statements were available for issue, and have determined the no material subsequent events have occurred that would affect the information presented in the accompanying consolidated financial statements or require additional disclosure. | |
Recent Accounting Standards | |
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 was effective for the Company beginning January 1, 2014 and did not have a significant impact on the Company’s financial statements. | |
ASU 2014-04, “Receivables (ASC Topic 310) – Troubled Debt Restructurings by Creditors, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” ASU 2014-04 clarifies when an in substance repossession or foreclosure occurs which is defined as when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires that the real property be recognized upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. ASU 2014-04 is effective for the Company for interim and annual periods beginning after December 15, 2014 and is not expected to have a significant impact on the Company’s financial statements. | |
Accounting Standards Update (“ASU”) 2014-14, “Receivables – Troubled Debt Restructurings by Creditors (Accounting Standards Codification (“ASC”) Subtopic 310-40) – Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.” ASU 2014-14 the Financial Accounting Standards Board (“FASB”) issued an amendment to clarify how creditors are to classify certain government-guaranteed mortgage loans upon foreclosure. This amendment requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) The loan has a government guarantee that is not separate from the loan before foreclosure and (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under the claim and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This amendment is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to foreclosures that occur after the date of adoption or (b) modified retrospective transition using a cumulative-effect adjustment (through a reclassification to a separate other receivable) as of the beginning of the annual period of adoption. Prior periods should not be adjusted. The Company intends to adopt the accounting standard during the first quarter of 2015, as required, and is currently evaluating the impact on its results of operations, financial position, and liquidity. | |
ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” – ASU 2014-09 amendment requires entities to recognize revenue to depict the transfer of promised goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for periods beginning after January 1, 2017. The Company is evaluating the impact that the adoption of this amendment will have on our consolidated financial statements. | |
Regulatory Enforcement Actions | |
Talbot Bank entered into a Stipulation and Consent to the Issuance of a Consent Order (the “Consent Agreement”) with the Federal Deposit Insurance Corporation (“FDIC”), a Stipulation and Consent to the Issuance of a Consent Order (the “Maryland Consent Agreement” and together with the Consent Agreement, the “Consent Agreements”) with the Maryland Commissioner of Financial Regulation (the “Commissioner”) and an Acknowledgement of Adoption of the Order by the Commissioner (the “Acknowledgement”). The FDIC and the Commissioner issued the related Consent Order (the “Order”), effective May 24, 2013. The description of the Consent Agreements, the Order and the Acknowledgement along with Talbot Bank’s progress with the requirements, are set forth below. | |
Management. Talbot Bank is required to have and retain experienced, qualified management, and to assess management’s ability to (1) comply with the requirements of the Order; (2) operate Talbot Bank in a safe and sound manner; (3) comply with all applicable laws, rules and regulations; and (4) restore all aspects of Talbot Bank to a safe and sound condition, including capital adequacy, asset quality, and management effectiveness. Talbot Bank has implemented certain changes to comply with the Order which include expanding our credit administration and loan workout units with the addition of experienced new staff members, in an effort to accelerate the resolution of our credit issues and position Talbot Bank for future growth. Additionally, Talbot Bank has appointed a chief financial officer. | |
Board Participation. Talbot Bank’s board of directors is required to increase its participation in the affairs of Talbot Bank, assuming full responsibility for the approval of sound policies and objectives and for the supervision of all Talbot Bank activities, including comprehensive, documented meetings to be held no less frequently than monthly. The board of directors must also develop a program to monitor Talbot Bank’s compliance with the Order. Talbot Bank has completed a plan to increase the participation of its board of directors which includes increasing the frequency of board meetings from monthly to biweekly and establishing a risk management committee of the board which is responsible for monitoring Talbot Bank’s compliance with the Order. | |
Loss Charge-Offs. The Order requires that Talbot Bank eliminate from its books, by charge-off or collection, all assets or portions of assets classified “Loss” by the FDIC or the Commissioner. Talbot Bank has eliminated from its books all such classified assets. | |
Classified Assets Reduction. Within 60 days of the effective date of the Order, Talbot Bank was required to submit a Classified Asset Plan to the FDIC and the Commissioner to reduce the risk position in each asset in excess of $750,000 which was classified “Substandard” and “Doubtful” by the FDIC or the Commissioner. Talbot Bank revised its existing Classified Asset Plan to address the terms of the Order and submitted the updated plan to the FDIC and the Commissioner in accordance with the Order. | |
Allowance for Loan and Lease Losses. Within 60 days of the effective date of the Order, the board of directors was required to review the adequacy of the allowance for loan and lease losses (the “ALLL”), establish a policy for determining the adequacy of the ALLL and submit such ALLL policy to the FDIC and the Commissioner. Talbot Bank amended its ALLL policy to comply with the terms of the Order and submitted the updated policy to the FDIC and the Commissioner in accordance with the Order. | |
Loan Policy. Within 60 days from the effective date of the Order, Talbot Bank was required to (i) review its loan policies and procedures (“Loan Policy”) for adequacy, (ii) make all appropriate revisions to the Loan Policy to address the lending deficiencies identified by the FDIC, and (iii) submit the Loan Policy to the FDIC and the Commissioner. Talbot Bank completed its review of and made the required revisions to the Loan Policy. The updated Loan Policy was submitted to the FDIC and the Commissioner in accordance with the terms of the Order. | |
Loan Review Program. Within 30 days from the effective date of the Order, the Board was required to establish a program of independent loan review that will provide for a periodic review of Talbot Bank’s loan portfolio and the identification and categorization of problem credits (the “Loan Review Program”) and submit the Loan Review Program to the FDIC and the Commissioner. Talbot Bank enhanced its existing Loan Review Program and submitted it to the FDIC and the Commissioner in accordance with the terms of the Order. | |
Capital Requirements. Within 90 days from the effective date of the Order, Talbot Bank must meet and maintain the following minimum capital levels, after establishing an appropriate ALLL, (i) a leverage ratio (the ratio of Tier 1 capital to total assets) of at least 8%, and (ii) a total risk-based capital ratio (the ratio of qualifying total capital to risk-weighted assets) of at least 12%. As of December 31, 2014, the leverage ratio and total risk-based capital ratio were 8.91% and 14.16%, respectively, for Talbot Bank, which exceeded the Order’s minimum capital requirements. | |
Profit and Budget Plan. Within 60 days from the effective date of the Order and within 30 days of each calendar year-end thereafter, Talbot Bank was and will be required to submit a profit and budget plan to the FDIC and the Commissioner consisting of goals and strategies, consistent with sound banking practices, and taking into account Talbot Bank’s other plans, policies or other actions required by the Order. In accordance with the Order, Talbot Bank developed a profit and budget plan which was submitted to the FDIC and Commissioner within 60 days from the effective date of the Order and one which was submitted within 30 days of the end of 2014. The profit and budget plan was approved by the FDIC; additionally the FDIC approved the Talbot Bank capital plan. | |
Dividend Restriction. While the Order is in effect, Talbot Bank cannot declare or pay dividends or fees to the Company without the prior written consent of the FDIC and the Commissioner. Talbot Bank is in compliance with this provision of the Order. | |
Brokered Deposits. The Order provides that Talbot Bank may not accept, renew, or rollover any brokered deposits unless it is in compliance with the requirements of the FDIC regulations governing brokered deposits. Talbot Bank is in compliance with this provision of the Order. | |
Oversight Committee. Within 30 days from the effective date of the Order, Talbot Bank must establish a board committee to monitor and coordinate compliance with the Order. Talbot Bank has established a board committee to comply with this provision of the Order. | |
Progress Reports. Within 45 days from the end of each calendar quarter following the effective date of the Order, Talbot Bank must furnish the FDIC and the Commissioner with progress reports detailing the form, manner and results of any actions taken to secure compliance with the Order. Talbot Bank has and will continue to submit progress reports to comply with this provision of the Order. | |
The Order will remain in effect until modified or terminated by the FDIC and the Commissioner. | |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 2. 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: | ||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||
U.S. Treasury | $ | 5,210 | $ | 5 | $ | - | $ | 5,215 | ||||||||||||
U.S. Government agencies | 75,220 | 87 | 347 | 74,960 | ||||||||||||||||
Mortgage-backed | 154,525 | 1,230 | 452 | 155,303 | ||||||||||||||||
Equity | 624 | 6 | - | 630 | ||||||||||||||||
Total | $ | 235,579 | $ | 1,328 | $ | 799 | $ | 236,108 | ||||||||||||
December 31, 2013: | ||||||||||||||||||||
U.S. Treasury | $ | 5,342 | $ | 1 | $ | - | $ | 5,343 | ||||||||||||
U.S. Government agencies | 60,754 | 62 | 372 | 60,444 | ||||||||||||||||
Mortgage-backed | 81,130 | 520 | 937 | 80,713 | ||||||||||||||||
Equity | 609 | - | 8 | 601 | ||||||||||||||||
Total | $ | 147,835 | $ | 583 | $ | 1,317 | $ | 147,101 | ||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||
U.S. Government agencies | $ | 2,791 | $ | - | $ | 83 | $ | 2,708 | ||||||||||||
States and political subdivisions | 1,839 | 147 | - | 1,986 | ||||||||||||||||
Total | $ | 4,630 | $ | 147 | $ | 83 | $ | 4,694 | ||||||||||||
December 31, 2013: | ||||||||||||||||||||
U.S. Government agencies | $ | 2,975 | $ | - | $ | 222 | $ | 2,753 | ||||||||||||
States and political subdivisions | 2,210 | 99 | - | 2,309 | ||||||||||||||||
Total | $ | 5,185 | $ | 99 | $ | 222 | $ | 5,062 | ||||||||||||
The following table provides information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2014. | ||||||||||||||||||||
Less than | More than | |||||||||||||||||||
12 Months | 12 Months | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
(Dollars in thousands) | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
U.S. Government agencies | $ | 41,574 | $ | 138 | $ | 6,954 | $ | 209 | $ | 48,528 | $ | 347 | ||||||||
Mortgage-backed | 12,933 | 44 | 26,828 | 408 | 39,761 | 452 | ||||||||||||||
Equity | - | - | 630 | - | 630 | - | ||||||||||||||
Total | $ | 54,507 | $ | 182 | $ | 34,412 | $ | 617 | $ | 88,919 | $ | 799 | ||||||||
Held-to-maturity securities: | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
U.S. Government agencies | $ | - | $ | - | $ | 2,708 | $ | 83 | $ | 2,708 | $ | 83 | ||||||||
Less than | More than | |||||||||||||||||||
12 Months | 12 Months | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
(Dollars in thousands) | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
U.S. Government agencies | $ | 33,004 | $ | 372 | $ | - | $ | - | $ | 33,004 | $ | 372 | ||||||||
Mortgage-backed | 28,694 | 416 | 19,121 | 521 | 47,815 | 937 | ||||||||||||||
Equity | 601 | 8 | - | - | 601 | 8 | ||||||||||||||
Total | $ | 62,299 | $ | 796 | $ | 19,121 | $ | 521 | $ | 81,420 | $ | 1,317 | ||||||||
Held-to-maturity securities: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
U.S. Government agencies | $ | 2,753 | $ | 222 | $ | - | $ | - | $ | 2,753 | $ | 222 | ||||||||
All of the securities with unrealized losses in the 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 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 for debt securities, the Company considers the unrealized losses to be temporary. | ||||||||||||||||||||
The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at December 31, 2014. | ||||||||||||||||||||
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 | $ | 2,001 | $ | 2,002 | $ | 221 | $ | 223 | ||||||||||||
Due after one year through five years | 75,099 | 74,981 | 712 | 764 | ||||||||||||||||
Due after five years through ten years | 11,361 | 11,405 | 403 | 459 | ||||||||||||||||
Due after ten years | 146,494 | 147,090 | 3,294 | 3,248 | ||||||||||||||||
234,955 | 235,478 | 4,630 | 4,694 | |||||||||||||||||
Equity securities | 624 | 630 | - | - | ||||||||||||||||
Total | $ | 235,579 | $ | 236,108 | $ | 4,630 | $ | 4,694 | ||||||||||||
The maturity dates for debt securities are determined using contractual maturity dates. | ||||||||||||||||||||
The following table sets forth the amortized cost and estimated fair values of securities which have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase. All pledged securities are in the available-for-sale investment portfolio. | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||||||
(Dollars in thousands) | Cost | Fair Value | Cost | Fair Value | ||||||||||||||||
Pledged available-for-sale securities | $ | 115,162 | $ | 115,458 | $ | 101,070 | $ | 100,507 | ||||||||||||
There were no obligations of states or political subdivisions with carrying values, as to any issuer, exceeding 10% of stockholders’ equity at December 31, 2014 or 2013. | ||||||||||||||||||||
Proceeds from sales of investment securities were $988 thousand, $40.4 million, and $6.3 million for the years ended December 31, 2014, 2013, and 2012, respectively. Gross gains from sales of investment securities were $23 thousand, $913 thousand and $278 thousand for the years ended December 31, 2014, 2013, and 2012, respectively. There were no gross losses in 2014, 2013 and 2012. | ||||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 3. 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 December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||
Construction | $ | 69,157 | $ | 64,591 | |||||||||||||||||||||||||
Residential real estate | 273,336 | 274,857 | |||||||||||||||||||||||||||
Commercial real estate | 305,788 | 304,605 | |||||||||||||||||||||||||||
Commercial | 52,671 | 57,195 | |||||||||||||||||||||||||||
Consumer | 9,794 | 10,671 | |||||||||||||||||||||||||||
Total loans | 710,746 | 711,919 | |||||||||||||||||||||||||||
Allowance for credit losses | -7,695 | -10,725 | |||||||||||||||||||||||||||
Total loans, net | $ | 703,051 | $ | 701,194 | |||||||||||||||||||||||||
In the normal course of banking business, loans are made to officers and directors and their affiliated interests. These loans are made on substantially the same terms and conditions as those prevailing at the time for comparable transactions with persons who are not related to the Company and are not considered to involve more than the normal risk of collectibility. As of December 31, 2014 and 2013, such loans outstanding, both direct and indirect (including guarantees), to directors, their associates and policy-making officers, totaled approximately $18.7 million and $23.2 million, respectively. During 2014 and 2013, loan additions were approximately $1.8 million and $1.0 million, respectively, and loan repayments were approximately $6.2 million and $3.8 million, respectively. | |||||||||||||||||||||||||||||
The following tables include impairment information relating to loans and the allowance for credit losses as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Residential | Commercial | ||||||||||||||||||||||||||||
(Dollars in thousands) | Construction | real estate | real estate | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 10,067 | $ | 10,403 | $ | 9,359 | $ | 188 | $ | 124 | $ | - | $ | 30,141 | |||||||||||||||
Loans collectively evaluated for impairment | 59,090 | 262,933 | 296,429 | 52,483 | 9,670 | - | 680,605 | ||||||||||||||||||||||
Total loans | $ | 69,157 | $ | 273,336 | $ | 305,788 | $ | 52,671 | $ | 9,794 | $ | - | $ | 710,746 | |||||||||||||||
Allowance for credit losses allocated to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 41 | $ | 1,099 | $ | 129 | $ | 1 | $ | 3 | $ | - | $ | 1,273 | |||||||||||||||
Loans collectively evaluated for impairment | 1,262 | 1,735 | 2,250 | 447 | 226 | 502 | 6,422 | ||||||||||||||||||||||
Total allowance for credit losses | $ | 1,303 | $ | 2,834 | $ | 2,379 | $ | 448 | $ | 229 | $ | 502 | $ | 7,695 | |||||||||||||||
Residential | Commercial | ||||||||||||||||||||||||||||
(Dollars in thousands) | Construction | real estate | real estate | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 5,569 | $ | 19,748 | $ | 14,462 | $ | 887 | $ | 48 | $ | - | $ | 40,714 | |||||||||||||||
Loans collectively evaluated for impairment | 59,022 | 255,109 | 290,143 | 56,308 | 10,623 | - | 671,205 | ||||||||||||||||||||||
Total loans | $ | 64,591 | $ | 274,857 | $ | 304,605 | $ | 57,195 | $ | 10,671 | $ | - | $ | 711,919 | |||||||||||||||
Allowance for credit losses allocated to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 204 | $ | 285 | $ | 44 | $ | 245 | $ | 5 | $ | - | $ | 783 | |||||||||||||||
Loans collectively evaluated for impairment | 1,756 | 3,569 | 2,985 | 1,021 | 238 | 373 | 9,942 | ||||||||||||||||||||||
Total allowance for credit losses | $ | 1,960 | $ | 3,854 | $ | 3,029 | $ | 1,266 | $ | 243 | $ | 373 | $ | 10,725 | |||||||||||||||
The following tables provide information on impaired loans and any related allowance by loan class as of December 31, 2014 and 2013. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken. | |||||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Unpaid | investment | investment | Average | Interest | |||||||||||||||||||||||||
principal | with no | with an | Related | recorded | income | ||||||||||||||||||||||||
(Dollars in thousands) | balance | allowance | allowance | allowance | investment | recognized | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Impaired nonaccrual loans: | |||||||||||||||||||||||||||||
Construction | $ | 9,277 | $ | 6,045 | $ | - | $ | - | $ | 7,739 | $ | - | |||||||||||||||||
Residential real estate | 4,664 | 1,053 | 2,982 | 799 | 3,322 | - | |||||||||||||||||||||||
Commercial real estate | 4,703 | 2,842 | 280 | 100 | 3,889 | - | |||||||||||||||||||||||
Commercial | 1,372 | 136 | 5 | 1 | 437 | - | |||||||||||||||||||||||
Consumer | 129 | 99 | 25 | 3 | 79 | - | |||||||||||||||||||||||
Total | 20,145 | 10,175 | 3,292 | 903 | 15,466 | - | |||||||||||||||||||||||
Impaired accruing TDRs: | |||||||||||||||||||||||||||||
Construction | 4,022 | 3,196 | 826 | 41 | 2,743 | 68 | |||||||||||||||||||||||
Residential real estate | 6,368 | 668 | 5,700 | 300 | 15,123 | 372 | |||||||||||||||||||||||
Commercial real estate | 6,237 | 4,774 | 1,463 | 29 | 6,574 | 254 | |||||||||||||||||||||||
Commercial | 47 | 47 | - | - | 55 | 2 | |||||||||||||||||||||||
Consumer | - | - | - | - | - | - | |||||||||||||||||||||||
Total | 16,674 | 8,685 | 7,989 | 370 | 24,495 | 696 | |||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Construction | 13,299 | 9,241 | 826 | 41 | 10,482 | 68 | |||||||||||||||||||||||
Residential real estate | 11,032 | 1,721 | 8,682 | 1,099 | 18,445 | 372 | |||||||||||||||||||||||
Commercial real estate | 10,940 | 7,616 | 1,743 | 129 | 10,463 | 254 | |||||||||||||||||||||||
Commercial | 1,419 | 183 | 5 | 1 | 492 | 2 | |||||||||||||||||||||||
Consumer | 129 | 99 | 25 | 3 | 79 | - | |||||||||||||||||||||||
Total | $ | 36,819 | $ | 18,860 | $ | 11,281 | $ | 1,273 | $ | 39,961 | $ | 696 | |||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Unpaid | investment | investment | Average | Interest | |||||||||||||||||||||||||
principal | with no | with an | Related | recorded | income | ||||||||||||||||||||||||
(Dollars in thousands) | balance | allowance | allowance | allowance | investment | recognized | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Impaired nonaccrual loans: | |||||||||||||||||||||||||||||
Construction | $ | 6,787 | $ | 3,709 | $ | 240 | $ | 203 | $ | 7,270 | $ | - | |||||||||||||||||
Residential real estate | 7,692 | 3,862 | 1,304 | 225 | 10,240 | - | |||||||||||||||||||||||
Commercial real estate | 5,218 | 4,261 | 410 | 38 | 7,829 | - | |||||||||||||||||||||||
Commercial | 1,801 | 547 | 245 | 245 | 619 | - | |||||||||||||||||||||||
Consumer | 56 | 43 | 5 | 5 | 48 | - | |||||||||||||||||||||||
Total | 21,554 | 12,422 | 2,204 | 716 | 26,006 | - | |||||||||||||||||||||||
Impaired accruing TDRs: | |||||||||||||||||||||||||||||
Construction | 1,620 | 1,527 | 93 | 1 | 14,405 | - | |||||||||||||||||||||||
Residential real estate | 14,582 | 13,177 | 1,405 | 60 | 11,101 | - | |||||||||||||||||||||||
Commercial real estate | 9,791 | 9,006 | 785 | 6 | 13,308 | - | |||||||||||||||||||||||
Commercial | 95 | 95 | - | - | 105 | - | |||||||||||||||||||||||
Consumer | - | - | - | - | - | - | |||||||||||||||||||||||
Total | 26,088 | 23,805 | 2,283 | 67 | 38,919 | - | |||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Construction | 8,407 | 5,236 | 333 | 204 | 21,675 | - | |||||||||||||||||||||||
Residential real estate | 22,274 | 17,039 | 2,709 | 285 | 21,341 | - | |||||||||||||||||||||||
Commercial real estate | 15,009 | 13,267 | 1,195 | 44 | 21,137 | - | |||||||||||||||||||||||
Commercial | 1,896 | 642 | 245 | 245 | 724 | - | |||||||||||||||||||||||
Consumer | 56 | 43 | 5 | 5 | 48 | - | |||||||||||||||||||||||
Total | $ | 47,642 | $ | 36,227 | $ | 4,487 | $ | 783 | $ | 64,925 | $ | - | |||||||||||||||||
The following tables provide a roll-forward for troubled debt restructurings as of December 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||
12/31/13 | Reclassification/ | 12/31/14 | |||||||||||||||||||||||||||
TDR | New | Disbursements | Charge | Transfers | Loan | TDR | Related | ||||||||||||||||||||||
(Dollars in thousands) | Balance | TDRs | (Payments) | offs | In/(Out) | Sale | Payoffs | Balance | Allowance | ||||||||||||||||||||
For the year ended 12/31/2014 | |||||||||||||||||||||||||||||
Accruing TDRs | |||||||||||||||||||||||||||||
Construction | $ | 1,620 | $ | - | $ | -186 | $ | -538 | $ | 3,396 | $ | - | $ | -270 | $ | 4,022 | $ | 41 | |||||||||||
Residential Real Estate | 14,582 | - | -1,150 | -3,614 | -3,136 | - | -314 | 6,368 | 300 | ||||||||||||||||||||
Commercial Real Estate | 9,791 | - | -99 | -549 | -1,805 | - | -1,101 | 6,237 | 29 | ||||||||||||||||||||
Commercial | 95 | - | -24 | - | - | - | -24 | 47 | - | ||||||||||||||||||||
Consumer | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Total | $ | 26,088 | $ | - | $ | -1,459 | $ | -4,701 | $ | -1,545 | $ | - | $ | -1,709 | $ | 16,674 | $ | 370 | |||||||||||
Nonaccrual TDRs | |||||||||||||||||||||||||||||
Construction | $ | 3,561 | $ | - | $ | -12 | $ | -235 | $ | 7 | $ | - | $ | - | $ | 3,321 | $ | - | |||||||||||
Residential Real Estate | 1,884 | - | -50 | -203 | 1,874 | - | -123 | 3,382 | 724 | ||||||||||||||||||||
Commercial Real Estate | 842 | - | -95 | -65 | -336 | - | - | 346 | 100 | ||||||||||||||||||||
Commercial | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Consumer | 26 | - | -1 | - | - | - | - | 25 | 3 | ||||||||||||||||||||
Total | $ | 6,313 | $ | - | $ | -158 | $ | -503 | $ | 1,545 | $ | - | $ | -123 | $ | 7,074 | $ | 827 | |||||||||||
Total TDRs | $ | 32,401 | $ | - | $ | -1,617 | $ | -5,204 | $ | - | $ | - | $ | -1,832 | $ | 23,748 | $ | 1,197 | |||||||||||
12/31/12 | Reclassification/ | 12/31/13 | |||||||||||||||||||||||||||
TDR | New | Disbursements | Transfers | 9/30/13 | TDR | Related | |||||||||||||||||||||||
(Dollars in thousands) | Balance | TDRs | (Payments) | Charge offs | In/(Out) | Loan Sale | Payoffs | Balance | Allowance | ||||||||||||||||||||
For the year ended 12/31/2013 | |||||||||||||||||||||||||||||
Accruing TDRs | |||||||||||||||||||||||||||||
Construction | $ | 27,335 | $ | 95 | $ | 228 | $ | -13,557 | $ | -3,521 | $ | -7,908 | $ | -1,052 | $ | 1,620 | $ | 1 | |||||||||||
Residential Real Estate | 7,017 | 10,433 | -86 | -632 | -1,755 | -395 | - | 14,582 | 60 | ||||||||||||||||||||
Commercial Real Estate | 17,880 | 1,738 | -39 | -2,108 | -410 | -7,162 | -108 | 9,791 | 6 | ||||||||||||||||||||
Commercial | 121 | - | -26 | - | - | - | - | 95 | - | ||||||||||||||||||||
Consumer | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Total | $ | 52,353 | $ | 12,266 | $ | 77 | $ | -16,297 | $ | -5,686 | $ | -15,465 | $ | -1,160 | $ | 26,088 | $ | 67 | |||||||||||
Nonaccrual TDRs | |||||||||||||||||||||||||||||
Construction | $ | 1,448 | $ | - | $ | -64 | $ | -639 | $ | 3,521 | $ | -57 | $ | -648 | $ | 3,561 | $ | 25 | |||||||||||
Residential Real Estate | 2,169 | 258 | -90 | -1,253 | 1,755 | -759 | -196 | 1,884 | - | ||||||||||||||||||||
Commercial Real Estate | 2,970 | - | -281 | -866 | 410 | - | -1,391 | 842 | - | ||||||||||||||||||||
Commercial | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Consumer | 27 | - | -1 | - | - | - | - | 26 | 26 | ||||||||||||||||||||
Total | $ | 6,614 | $ | 258 | $ | -436 | $ | -2,758 | $ | 5,686 | $ | -816 | $ | -2,235 | $ | 6,313 | $ | 51 | |||||||||||
Total TDRs | $ | 58,967 | $ | 12,524 | $ | -359 | $ | -19,055 | $ | - | $ | -16,281 | $ | -3,395 | $ | 32,401 | $ | 118 | |||||||||||
The following tables provide information on loans that were modified and considered TDRs during 2014 and 2013. | |||||||||||||||||||||||||||||
Premodification | Postmodification | ||||||||||||||||||||||||||||
outstanding | outstanding | ||||||||||||||||||||||||||||
Number of | recorded | recorded | Related | ||||||||||||||||||||||||||
(Dollars in thousands) | contracts | investment | investment | allowance | |||||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||||||||||||
Construction | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||
Residential real estate | - | - | - | - | |||||||||||||||||||||||||
Commercial real estate | - | - | - | - | |||||||||||||||||||||||||
Commercial | - | - | - | - | |||||||||||||||||||||||||
Consumer | - | - | - | - | |||||||||||||||||||||||||
Total | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||||||||||
Construction | 3 | $ | 218 | $ | 218 | $ | - | ||||||||||||||||||||||
Residential real estate | 7 | 12,485 | 12,494 | 38 | |||||||||||||||||||||||||
Commercial real estate | 4 | 2,212 | 2,211 | 82 | |||||||||||||||||||||||||
Commercial | - | - | - | - | |||||||||||||||||||||||||
Consumer | - | - | - | - | |||||||||||||||||||||||||
Total | 14 | $ | 14,915 | $ | 14,923 | $ | 120 | ||||||||||||||||||||||
The following tables provide information on TDRs that defaulted during 2014 and 2013. Generally, a loan is considered in default when principal or interest is past due 90 days or more. | |||||||||||||||||||||||||||||
Number of | Recorded | Related | |||||||||||||||||||||||||||
(Dollars in thousands) | contracts | investment | allowance | ||||||||||||||||||||||||||
TDRs that subsequently defaulted: | |||||||||||||||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||||||||||||
Construction | - | $ | - | $ | - | ||||||||||||||||||||||||
Residential real estate | - | - | - | ||||||||||||||||||||||||||
Commercial real estate | - | - | - | ||||||||||||||||||||||||||
Commercial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
Total | - | $ | - | $ | - | ||||||||||||||||||||||||
TDRs that subsequently defaulted (1): | |||||||||||||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||||||||||
Construction | - | $ | - | $ | - | ||||||||||||||||||||||||
Residential real estate | 6 | 1,918 | - | ||||||||||||||||||||||||||
Commercial real estate | 2 | 2,151 | 74 | ||||||||||||||||||||||||||
Commercial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
Total | 8 | $ | 4,069 | $ | 74 | ||||||||||||||||||||||||
(1) These loans were classified as TDRs during 2012. | |||||||||||||||||||||||||||||
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. At December 31, 2014, there were no nonaccrual loans classified as special mention, $13.4 million of nonaccrual loans were identified as substandard and $89 thousand were doubtful. The comparable amounts at December 31, 2013 were $152 thousand, $13.0 million and $1.4 million, respectively. | |||||||||||||||||||||||||||||
The following tables provide information on loan risk ratings as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||
(Dollars in thousands) | Pass/Performing | mention | Substandard | Doubtful | Total | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Construction | $ | 52,241 | $ | 5,643 | $ | 11,273 | $ | - | $ | 69,157 | |||||||||||||||||||
Residential real estate | 252,643 | 6,675 | 14,018 | - | 273,336 | ||||||||||||||||||||||||
Commercial real estate | 275,573 | 20,040 | 10,175 | - | 305,788 | ||||||||||||||||||||||||
Commercial | 50,583 | 1,885 | 114 | 89 | 52,671 | ||||||||||||||||||||||||
Consumer | 9,658 | 13 | 123 | - | 9,794 | ||||||||||||||||||||||||
Total | $ | 640,698 | $ | 34,256 | $ | 35,703 | $ | 89 | $ | 710,746 | |||||||||||||||||||
(Dollars in thousands) | Pass/Performing | Special | Substandard | Doubtful | Total | ||||||||||||||||||||||||
mention | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Construction | $ | 39,268 | $ | 15,884 | $ | 9,439 | $ | - | $ | 64,591 | |||||||||||||||||||
Residential real estate | 235,054 | 22,638 | 17,114 | 51 | 274,857 | ||||||||||||||||||||||||
Commercial real estate | 255,280 | 30,105 | 19,210 | 10 | 304,605 | ||||||||||||||||||||||||
Commercial | 52,032 | 3,691 | 972 | 500 | 57,195 | ||||||||||||||||||||||||
Consumer | 10,451 | 48 | 172 | - | 10,671 | ||||||||||||||||||||||||
Total | $ | 592,085 | $ | 72,366 | $ | 46,907 | $ | 561 | $ | 711,919 | |||||||||||||||||||
The following tables provide information on the aging of the loan portfolio as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90 days | Total past | Non- | Total | ||||||||||||||||||||||
days | days past | or more | due | accrual | |||||||||||||||||||||||||
past due | due | past due | |||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Construction | $ | 61,325 | $ | 1,786 | $ | - | $ | - | $ | 1,786 | $ | 6,046 | $ | 69,157 | |||||||||||||||
Residential real estate | 263,165 | 3,351 | 2,702 | 83 | 6,136 | 4,035 | 273,336 | ||||||||||||||||||||||
Commercial real estate | 301,695 | 459 | 513 | - | 972 | 3,121 | 305,788 | ||||||||||||||||||||||
Commercial | 52,352 | 47 | 131 | - | 178 | 141 | 52,671 | ||||||||||||||||||||||
Consumer | 9,619 | 11 | 37 | 4 | 52 | 123 | 9,794 | ||||||||||||||||||||||
Total | $ | 688,156 | $ | 5,654 | $ | 3,383 | $ | 87 | $ | 9,124 | $ | 13,466 | $ | 710,746 | |||||||||||||||
Percent of total loans | 96.8 | % | 0.8 | % | 0.5 | % | - | % | 1.3 | % | 1.9 | % | |||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90 days | Total past | Non-accrual | Total | ||||||||||||||||||||||
days | days | or more | due | ||||||||||||||||||||||||||
past due | past due | past due | |||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Construction | $ | 60,642 | $ | - | $ | - | $ | - | $ | - | $ | 3,949 | $ | 64,591 | |||||||||||||||
Residential real estate | 265,182 | 2,765 | 1,724 | 20 | 4,509 | 5,166 | 274,857 | ||||||||||||||||||||||
Commercial real estate | 299,295 | 639 | - | - | 639 | 4,671 | 304,605 | ||||||||||||||||||||||
Commercial | 55,576 | 330 | 247 | 250 | 827 | 792 | 57,195 | ||||||||||||||||||||||
Consumer | 10,469 | 23 | 131 | - | 154 | 48 | 10,671 | ||||||||||||||||||||||
Total | $ | 691,164 | $ | 3,757 | $ | 2,102 | $ | 270 | $ | 6,129 | $ | 14,626 | $ | 711,919 | |||||||||||||||
Percent of total loans | 97.1 | % | 0.5 | % | 0.3 | % | - | % | 0.8 | % | 2.1 | % | |||||||||||||||||
The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for 2014 and 2013. 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 | ||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,960 | $ | 3,854 | $ | 3,029 | $ | 1,266 | $ | 243 | $ | 373 | $ | 10,725 | |||||||||||||||
Charge-offs | -725 | -2,407 | -1,648 | -2,389 | -163 | - | -7,332 | ||||||||||||||||||||||
Recoveries | 149 | 376 | 58 | 341 | 28 | - | 952 | ||||||||||||||||||||||
Net charge-offs | -576 | -2,031 | -1,590 | -2,048 | -135 | - | -6,380 | ||||||||||||||||||||||
Provision | -81 | 1,011 | 940 | 1,230 | 121 | 129 | 3,350 | ||||||||||||||||||||||
Ending balance | $ | 1,303 | $ | 2,834 | $ | 2,379 | $ | 448 | $ | 229 | $ | 502 | $ | 7,695 | |||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 4,387 | $ | 5,194 | $ | 4,134 | $ | 1,682 | $ | 407 | $ | 187 | $ | 15,991 | |||||||||||||||
Charge-offs | -20,695 | -7,163 | -6,162 | -665 | -113 | - | -34,798 | ||||||||||||||||||||||
Recoveries | 161 | 545 | 161 | 839 | 42 | - | 1,748 | ||||||||||||||||||||||
Net charge-offs | -20,534 | -6,618 | -6,001 | 174 | -71 | - | -33,050 | ||||||||||||||||||||||
Provision | 18,107 | 5,278 | 4,896 | -590 | -93 | 186 | 27,784 | ||||||||||||||||||||||
Ending balance | $ | 1,960 | $ | 3,854 | $ | 3,029 | $ | 1,266 | $ | 243 | $ | 373 | $ | 10,725 | |||||||||||||||
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4. PREMISES AND EQUIPMENT | |||||||
The following table provides information on premises and equipment at December 31, 2014 and 2013. | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Land | $ | 5,818 | $ | 5,818 | ||||
Buildings and land improvements | 13,537 | 13,459 | ||||||
Furniture and equipment | 9,273 | 7,650 | ||||||
28,628 | 26,927 | |||||||
Accumulated depreciation | -12,353 | -11,729 | ||||||
Total | $ | 16,275 | $ | 15,198 | ||||
Depreciation expense totaled $867 thousand, $936 thousand and $1.1 million for 2014, 2013 and 2012, respectively. | ||||||||
The Company leases facilities under operating leases. Rental expense for the years ended December 31, 2014, 2013, and 2012 was $700 thousand, $744 thousand and $777 thousand, respectively. Future minimum annual rental payments are approximately as follows: | ||||||||
(Dollars in thousands) | ||||||||
2015 | $ | 625 | ||||||
2016 | 474 | |||||||
2017 | 352 | |||||||
2018 | 327 | |||||||
2019 | 331 | |||||||
Thereafter | 889 | |||||||
Total minimum lease payments | $ | 2,998 | ||||||
INVESTMENT_IN_UNCONSOLIDATED_S
INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2014 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investments in and Advances to Affiliates, Schedule of Investments [Text Block] | NOTE 5. INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES |
The Avon-Dixon Agency, LLC (“Avon-Dixon”), a wholly-owned insurance subsidiary of the Company, owns a 40% interest in a segregated portfolio of Eastern Re Ltd., SPC (“Eastern”), a specialty reinsurance company. This investment is carried at cost, adjusted for Avon-Dixon’s equity ownership in Eastern’s net income or loss. At December 31, 2014 and 2013, the carrying value of the investment in Eastern was $432 thousand and $328 thousand, respectively. During 2014 and 2013, income recognized from the investment in Eastern was $104 thousand and $328 thousand, respectively. | |
During 2012, the Company terminated its mortgage brokerage activities which were conducted through a minority series investment in an unrelated Delaware limited liability company under the name “Wye Mortgage Group”. This investment was carried at cost, adjusted for the Company’s 49.0% equity ownership in Wye Mortgage Group’s net income or loss. At December 31, 2014 and 2013, the carrying value of the investment in Wye Mortgage Group was $0 and $0, respectively. The Company recognized no income or loss in 2014 from its investment in Wye Mortgage Group, and a loss of $9 thousand in 2013. | |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||||||||||
The following table provides information on the significant components of goodwill and other acquired intangible assets at December 31, 2014 and 2013. The Community Banking segment had goodwill of $2.5 million at the end of both 2014 and 2013. The Insurance segment had goodwill of $9.4 million and $9.9 million at the end of 2014 and 2013. The decrease of $500 thousand was the result of the sale of the assets and liabilities of Tri-State General Insurance, LTD on June 6, 2014. See Note 26 for further information regarding the Company’s business segments. | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Weighted | Weighted | |||||||||||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Remaining | Gross | Accumulated | Net | Remaining | |||||||||||||||||||||||||
Carrying | Impairment | Accumulated | Carrying | Life | Carrying | Impairment | Accumulated | Carrying | Life | |||||||||||||||||||||||
(Dollars in thousands) | Amount | Charges | Amortization | Amount | (in years) | Amount | Charges | Amortization | Amount | (in years) | ||||||||||||||||||||||
Goodwill | $ | 15,235 | $ | -2,637 | $ | -667 | $ | 11,931 | - | $ | 17,345 | $ | -4,224 | $ | -667 | $ | 12,454 | - | ||||||||||||||
Other intangible assets | ||||||||||||||||||||||||||||||||
Amortizable | ||||||||||||||||||||||||||||||||
Employment agreements | $ | 440 | $ | - | $ | -440 | $ | - | - | $ | 1,730 | $ | - | $ | -1,448 | $ | 282 | 1.7 | ||||||||||||||
Insurance expirations | 1,270 | - | -1,063 | 207 | 2.4 | 1,270 | - | -979 | 291 | 3.4 | ||||||||||||||||||||||
Customer relationships | 782 | -95 | -343 | 344 | 7 | 960 | -126 | -352 | 482 | 9.7 | ||||||||||||||||||||||
2,492 | -95 | -1,846 | 551 | 3,960 | -126 | -2,779 | 1,055 | |||||||||||||||||||||||||
Unamortizable | ||||||||||||||||||||||||||||||||
Carrier relationships | - | - | - | - | - | 1,300 | -45 | - | 1,255 | - | ||||||||||||||||||||||
Trade name | 780 | - | - | 780 | - | 1,210 | - | - | 1,210 | - | ||||||||||||||||||||||
780 | - | - | 780 | 2,510 | -45 | - | 2,465 | |||||||||||||||||||||||||
Total other intangible assets | $ | 3,272 | $ | -95 | $ | -1,846 | $ | 1,331 | $ | 6,470 | $ | -171 | $ | -2,779 | $ | 3,520 | ||||||||||||||||
The aggregate amortization expense was $201 thousand, $296 thousand, and $392 thousand for the years ended December 31, 2014, 2013, and 2012 respectively. | ||||||||||||||||||||||||||||||||
The following table provides information on current period and estimated future amortization expense for amortizable other intangible assets. | ||||||||||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Expense | |||||||||||||||||||||||||||||||
Estimate for years ended December 31, | 2015 | 133 | ||||||||||||||||||||||||||||||
2016 | 133 | |||||||||||||||||||||||||||||||
2017 | 85 | |||||||||||||||||||||||||||||||
2018 | 42 | |||||||||||||||||||||||||||||||
2019 | 42 | |||||||||||||||||||||||||||||||
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Other Assets Disclosure [Text Block] | NOTE 7. OTHER ASSETS | |||||||
The Company had the following other assets at December 31, 2014 and 2013. | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Nonmarketable investment securities | $ | 1,586 | $ | 2,058 | ||||
Accrued interest receivable | 2,663 | 2,561 | ||||||
Deferred income taxes (1) | 15,744 | 19,090 | ||||||
Prepaid expenses | 750 | 700 | ||||||
Other assets | 6,419 | 6,673 | ||||||
Total | $ | 27,162 | $ | 31,082 | ||||
(1) See Note 15 for further discussion. | ||||||||
OTHER_LIABILITIES
OTHER LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
Other Liabilities Disclosure [Text Block] | NOTE 8. OTHER LIABILITIES | |||||||
The Company had the following other liabilities at December 31, 2014 and 2013. | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Accrued interest payable | $ | 172 | $ | 225 | ||||
Other accounts payable | 2,435 | 3,543 | ||||||
Deferred compensation liability | 1,503 | 1,505 | ||||||
Other liabilities | 2,011 | 1,944 | ||||||
Total | $ | 6,121 | $ | 7,217 | ||||
DEPOSITS
DEPOSITS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deposits [Abstract] | ||||||||
Deposit Liabilities Disclosures [Text Block] | NOTE 9. DEPOSITS | |||||||
The approximate amount of certificates of deposit of $100,000 or more was $159.9 million and $185.0 million at December 31, 2014 and 2013, respectively. | ||||||||
The following table provides information on the approximate maturities of total time deposits at December 31, 2014 and 2013. | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Due in one year or less | $ | 181,847 | $ | 184,836 | ||||
Due in one to three years | 101,811 | 121,403 | ||||||
Due in three to five years | 47,969 | 66,565 | ||||||
Total | $ | 331,627 | $ | 372,804 | ||||
SHORTTERM_BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Short-term Debt [Text Block] | NOTE 10. SHORT-TERM BORROWINGS | |||||||||||||
The following table summarizes certain information on short-term borrowings for the years ended December 31, 2014 and 2013. | ||||||||||||||
2014 | 2013 | |||||||||||||
(Dollars in thousands) | Amount | Rate | Amount | Rate | ||||||||||
Average for the Year | ||||||||||||||
Retail repurchase agreements | $ | 8,061 | 0.22 | % | $ | 10,980 | 0.24 | % | ||||||
At Year End | ||||||||||||||
Retail repurchase agreements | $ | 4,808 | 0.23 | % | $ | 10,140 | 0.23 | % | ||||||
Securities sold under agreements to repurchase are securities sold to customers, at the customers’ request, under a “roll-over” contract that matures in one business day. The underlying securities sold are U.S. Government agency securities, which are segregated in the Company’s custodial accounts from other investment securities. | ||||||||||||||
The Company may periodically borrow from a correspondent federal funds line of credit arrangement, under a secured reverse repurchase agreement, or from the Federal Home Loan Bank to meet short-term liquidity needs. | ||||||||||||||
BENEFIT_PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 11. BENEFIT PLANS |
401(k) and Profit Sharing Plan | |
The Company has a 401(k) and profit sharing plan covering substantially all full-time employees. The plan calls for matching contributions by the Company, and the Company makes discretionary contributions based on profits. Company contributions to this plan included in expense totaled $545 thousand, $520 thousand, and $513 thousand for 2014, 2013, and 2012, respectively. | |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 12. STOCK-BASED COMPENSATION | ||||||||||||||||
As of December 31, 2014, the Company maintained the Shore Bancshares, Inc. 2006 Stock and Incentive Compensation Plan (“2006 Equity Plan”) under which Shore Bancshares, Inc. may issue shares of its common stock or grant other equity-based awards. Under the 2006 Equity Plan, stock-based awards may be granted periodically to the Company’s directors, executive officers, and key employees at the discretion of the Compensation Committee of the Board of Shore Bancshares, Inc. Stock-based awards granted to date under the 2006 Equity Plan are generally time-based, vesting on each anniversary of the grant date over a three- to five-year period of time and, in the case of stock options, expiring 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 2006 Equity Plan originally reserved 631,972 shares of common stock for grant, and 503,048 shares remained available for grant at December 31, 2014. | |||||||||||||||||
The following tables provide information on stock-based compensation expense for 2014, 2013 and 2012. | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Stock-based compensation expense | $ | 87 | -1 | $ | 78 | $ | 209 | ||||||||||
Excess tax expense related to stock-based compensation | - | 26 | 106 | ||||||||||||||
December 31, | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Unrecognized stock-based compensation expense | $ | 59 | $ | 136 | $ | 143 | |||||||||||
Weighted average period unrecognized expense is expected to be recognized | 0.8 years | 1.7 years | 2.1 years | ||||||||||||||
The following table summarizes restricted stock award activity for the Company under the 2006 Equity Plan for the two years ended December 31, 2014. | |||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||
Weighted Average | Weighted Average | Weighted Average | |||||||||||||||
Number | Grant Date | Number | Grant Date | Number | Grant Date | ||||||||||||
of Shares | Fair Value | of Shares | Fair Value | of Shares | Fair Value | ||||||||||||
Nonvested at beginning of year | 13,930 | $ | 8.33 | 6,548 | $ | 14.89 | 45,779 | $ | 13.2 | ||||||||
Granted (1) | 3,654 | 9.57 | 13,930 | 8.33 | - | - | |||||||||||
Vested | -3,333 | 8.93 | -6,548 | 14.89 | -39,231 | 12.92 | |||||||||||
Cancelled | - | - | - | - | - | - | |||||||||||
Nonvested at end of year | 14,251 | $ | 8.51 | 13,930 | $ | 8.33 | 6,548 | $ | 14.89 | ||||||||
The total fair value of restricted stock awards that vested was $30 thousand in 2014, $36 thousand in 2013, and $245 thousand in 2012. | |||||||||||||||||
The following table summarizes stock option activity for the Company under the 2006 Equity Plan for the two years ended December 31, 2014. | |||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||
Number | Weighted Average | Number | Weighted Average | Number | Weighted Average | ||||||||||||
of shares | Exercise Price | of shares | Exercise Price | of shares | Exercise Price | ||||||||||||
Outstanding at beginning of year | 40,662 | $ | 6.64 | 54,216 | $ | 6.64 | - | $ | 6.64 | ||||||||
Granted (1) | - | - | - | - | 54,216 | - | |||||||||||
Exercised | -3,593 | 6.64 | - | - | - | - | |||||||||||
Expired/Cancelled | -9,961 | 6.64 | -13,554 | 6.64 | - | - | |||||||||||
Outstanding at end of year | 27,108 | $ | 6.64 | 40,662 | $ | 6.64 | 54,216 | $ | 6.64 | ||||||||
Exercisable at end of year | - | $ | - | - | $ | - | - | $ | - | ||||||||
-1 | On January 7, 2015 restricted stock and options were granted to executive officers in the amount of $62 thousand in restricted stock awards and $117 thousand in option awards. The restricted stock and options immediately vested 50% on the grant date of January 7, 2015, in which the amount of $90 thousand was accrued at December 31, 2014 and recorded as an other liability. On January 7, 2015 the liability for the restricted shares and the options was reclassified to additional paid-in-capital. The January 7, 2015 awarded grants are excluded from the tables above because including them would not properly reflect the outstanding shares at December 31, 2014. | ||||||||||||||||
The weighted average fair value of stock options granted during 2012 was $3.44. The Company estimates the fair value of options using the Black-Scholes valuation model with weighted average assumptions for dividend yield, expected volatility, risk-free interest rate and expected lives (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 granted in 2012. | |||||||||||||||||
Dividend yield | 0.6 | % | |||||||||||||||
Expected volatility | 58.65 | % | |||||||||||||||
Risk-free interest rate | 1.69 | % | |||||||||||||||
Expected contract life (in years) | 5.83 | ||||||||||||||||
At December 31, 2014, the aggregate intrinsic value of the options outstanding under the 2006 Equity Plan was $73 thousand based on the $9.34 market value per share of Shore Bancshares, Inc.’s common stock at December 31, 2014. There were 3,593 shares exercised in 2014 through a cashless exchange of stock options, which required the forfeiture of 9,961 options on October 27, 2014. The intrinsic value on the options exercised in 2014 was $8 thousand based on the $8.99 market value per share of Shore Bancshares Inc.’s common stock at October 27, 2014. Since there were no options exercised during 2013, there was no intrinsic value associated with stock options exercised and no cash received on exercise of options. For 2014 and 2013 the amount of stock options vested totaled 13,554 and 0, respectively. At December 31, 2014, the weighted average remaining contract life of options outstanding was 7.2 years. | |||||||||||||||||
DEFERRED_COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Deferred Compensation Arrangements [Abstract] | |||||||||||
Deferred Compensation Disclosure [Text Block] | NOTE 13. DEFERRED COMPENSATION | ||||||||||
The Shore Bancshares, Inc. Executive Deferred Compensation Plan (the “Plan”) is for members of management and highly compensated employees of Shore Bancshares, Inc. and its subsidiaries. The Plan permits a participant to elect, each year, to defer receipt of up to 100% of his or her salary and bonus to be earned in the following year. The Plan also permits the participant to defer the receipt of performance-based compensation not later than six months before the end of the period for which it is to be earned. The deferred amounts are credited to an account maintained on behalf of the participant and are invested at the discretion of each participant in certain deemed investment options selected from time to time by the Compensation Committee of the Board of Shore Bancshares, Inc. Shore Bancshares, Inc. may also make matching, mandatory and discretionary contributions for certain participants. A participant is fully vested at all times in the amounts that he or she elects to defer. Any contributions by Shore Bancshares, Inc. will vest over a five-year period. There were no elective deferrals made by plan participants during 2014, 2013 or 2012. | |||||||||||
The following table provides information on Shore Bancshares, Inc.’s contributions to the Plan for 2014, 2013 and 2012 and the related deferred compensation liability at December 31, 2014 and 2013. | |||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Deferred compensation contribution | $ | - | $ | 9 | $ | 20 | |||||
December 31, | |||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||
Deferred compensation liability | $ | 445 | $ | 404 | |||||||
CNB has agreements with certain of its directors under which they have deferred part of their fees and compensation. The amounts deferred are invested in insurance policies, owned by CNB, on the lives of the respective individuals. Amounts available under the policies are to be paid to the individuals as retirement benefits over future years. The following table includes information on the cash surrender value and the accrued benefit obligation included in other assets and other liabilities at December 31, 2014 and 2013. | |||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||
Cash surrender value | $ | 3,360 | $ | 3,256 | |||||||
Accrued benefit obligation | 1,058 | 1,101 | |||||||||
OTHER_EXPENSES
OTHER EXPENSES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Other Income and Expenses [Abstract] | |||||||||||
Other Nonoperating Income and Expense [Text Block] | NOTE 14. OTHER EXPENSES | ||||||||||
The following table summarizes the Company’s other noninterest expenses for the years ended December 31: | |||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Advertising and marketing | $ | 428 | $ | 848 | $ | 338 | |||||
Legal and professional | 2,048 | 1,539 | 1,516 | ||||||||
Other customer expense | 396 | 414 | 372 | ||||||||
Other expense | 2,070 | 2,152 | 2,302 | ||||||||
Other loan expense | 894 | 934 | 1,086 | ||||||||
Software expense | 664 | 613 | 518 | ||||||||
Travel and entertainment expense | 288 | 287 | 265 | ||||||||
Trust professional fees | 686 | 616 | 542 | ||||||||
Total noninterest expense | $ | 7,474 | $ | 7,403 | $ | 6,939 | |||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Income Tax Disclosure [Text Block] | NOTE 15. INCOME TAXES | ||||||||||
The following table provides information on components of income tax expense for each of the three years ended December 31. | |||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Current tax expense (benefit): | |||||||||||
Federal | $ | - | $ | -459 | $ | -2,007 | |||||
State | 225 | 90 | 210 | ||||||||
225 | -369 | -1,797 | |||||||||
Deferred income tax expense (benefit): | |||||||||||
Federal | 2,516 | -4,592 | -3,110 | ||||||||
State | 320 | -1,540 | -1,658 | ||||||||
2,836 | -6,132 | -4,768 | |||||||||
Total income tax expense (benefit) | $ | 3,061 | $ | -6,501 | $ | -6,565 | |||||
The following table provides a reconciliation of tax computed at the statutory federal tax rate of 34.0% to the actual tax expense (benefit) for each of the three years ended December 31. | |||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Tax at federal statutory rate | 34 | % | -34 | % | -34 | % | |||||
Tax effect of: | |||||||||||
Tax-exempt income | -0.9 | -0.4 | -0.6 | ||||||||
Other non-deductible expenses | 0.3 | 0.2 | 0.2 | ||||||||
State income taxes, net of federal benefit | 4.4 | -5.9 | -5.9 | ||||||||
Other | -0.1 | -0.2 | -0.2 | ||||||||
Actual income tax expense (benefit) rate | 37.7 | % | -40.3 | % | -40.5 | % | |||||
The following table provides information on significant components of the Company’s deferred tax assets and liabilities as of December 31. | |||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||
Deferred tax assets: | |||||||||||
Allowance for credit losses | $ | 3,072 | $ | 4,298 | |||||||
Reserve for off-balance sheet commitments | 121 | 180 | |||||||||
Net operating loss carry forward | 13,265 | 14,430 | |||||||||
Write-downs of other real estate owned | 355 | 400 | |||||||||
Deferred income | 1,132 | 1,108 | |||||||||
Accrued expenses | 918 | 936 | |||||||||
Unrealized losses on available-for-sale securities | - | 296 | |||||||||
Other | 80 | 83 | |||||||||
Total deferred tax assets | 18,943 | 21,731 | |||||||||
Deferred tax liabilities: | |||||||||||
Depreciation | 372 | 463 | |||||||||
Purchase accounting adjustments | 1,751 | 1,305 | |||||||||
Deferred capital gain on branch sale | 425 | 438 | |||||||||
Unrealized gains on available-for-sale securities | 214 | - | |||||||||
Other | 437 | 435 | |||||||||
Total deferred tax liabilities | 3,199 | 2,641 | |||||||||
Net deferred tax assets | $ | 15,744 | $ | 19,090 | |||||||
The Company’s deferred tax assets primarily consist of net operating loss carryovers that will be used to offset taxable income in future periods through their statutory period of 20 years for federal tax purposes. No valuation allowance on these deferred tax assets was recorded at December 31, 2014 and December 31, 2013 as management believes it is more likely than not that all deferred tax assets will be realized based on the following positive material assumptions: 1) The Company was profitable for three of the four quarters in 2013 on a GAAP basis. The loss experienced in the third quarter of 2013 was solely attributable to the Asset Sale which is considered non-recurring. 2) The Company had pre-tax income of $8.1 million for the year ended December 31, 2014, providing further evidence that the Asset Sale was producing positive results and confirming the expectation of utilizing the deferred tax assets. 3) As a contingent opportunity, the Company has had discussions with certain investors about entering into a sales leaseback transaction for some of its branch locations which would generate a material taxable gain. The decision to act on this has been deferred; however, it would become a very viable option as a tax planning strategy if there was a risk that the net operating loss carryovers would expire before they were fully utilized. Alternatively, the Company has reviewed negative factors which would influence the conclusion of realizing the deferred tax assets which include the following: The Company could be subject to Section 382 of the Internal Revenue Code (“IRC”), which could further limit the realization of the net operating loss-related deferred tax asset (“NOL-DTA”). Although the local economy of the market in which the Company operates has been showing continued signs of improvement over the past two years, if this trend flattens or reverses, there is a potential that this negative evidence could outweigh the prevailing positive factors. | |||||||||||
Based on the aforementioned considerations, the preponderance of positive factors, mitigation of negative factors, and no intensions of planned material non-routine transactions, the Company concluded that the predominance of observable positive evidence outweighs the future potential of negative evidence and therefore it is more likely than not that the Company will be able to realize in the future all of the net deferred income taxes. | |||||||||||
EARNINGSLOSS_PER_COMMON_SHARE
EARNINGS/(LOSS) PER COMMON SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Earnings Per Share [Text Block] | NOTE 16. EARNINGS/(LOSS) PER COMMON 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 and the warrant). 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. | |||||||||||
(In thousands, except per share data) | 2014 | 2013 | 2012 | ||||||||
Net income (loss) | $ | 5,051 | $ | -9,634 | $ | -9,638 | |||||
Weighted average shares outstanding – basic | 10,945 | 8,461 | 8,457 | ||||||||
Dilutive effect of common stock equivalents | 8 | - | - | ||||||||
Weighted average shares outstanding – diluted | 10,953 | 8,461 | 8,457 | ||||||||
Income (loss) per common share – basic | $ | 0.46 | $ | -1.14 | $ | -1.14 | |||||
Income (loss) per common share – diluted | $ | 0.46 | $ | -1.14 | $ | -1.14 | |||||
The calculations of diluted income (loss) per share excluded weighted average common stock equivalents of $0 for 2014, $51 thousand for 2013, and $46 thousand for 2012 because the effect of including them would have been antidilutive. | |||||||||||
REGULATORY_CAPITAL_REQUIREMENT
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||
Regulatory Capital Requirements under Banking Regulations [Text Block] | NOTE 17. REGULATORY CAPITAL REQUIREMENTS | |||||||||||||||||||
Shore Bancshares, Inc. and each of the Banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory - and possibly additional discretionary - actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Banks must meet specific capital guidelines that involve quantitative measures of the Banks’ assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Banks’ capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. | ||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Banks to maintain amounts and ratios (set forth in the table below) of Tier 1 and total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (leverage ratio). As of December 31, 2014, management believes that Shore Bancshares, Inc. and CNB met all capital adequacy requirements to which they are subject. Per the Order, Talbot Bank submitted a capital plan to the FDIC and Commissioner which describes the methods and timing by which it will increase and maintain its capital ratios up to or in excess of required minimums (leverage ratio of 8%, total capital ratio of 12%). These methods include earnings from operations, capital infusions from the Company, and other capital-raising alternatives such as equity issuances. | ||||||||||||||||||||
As of December 31, 2014, the most recent notification from the Federal Deposit Insurance Corporation categorized Talbot Bank as adequately capitalized and CNB as well capitalized under the regulatory framework for prompt corrective action. To be categorized as adequately or well capitalized, the Banks must maintain minimum Tier 1 risk-based and total risk-based capital ratios, and Tier 1 leverage ratios, which are described below. The Talbot Bank would be considered “well capitalized” based on its capital ratios at year ended December 31, 2014, however must remain in the “adequately capitalized” category until the consent order is terminated by the FDIC and the Commissioner. | ||||||||||||||||||||
The minimum ratios for capital adequacy purposes are 4.00%, 8.00% and 4.00% for the Tier 1 risk-based capital, total risk-based capital and leverage ratios, respectively. To be categorized as well capitalized, a bank must maintain minimum ratios of 6.00%, 10.00% and 5.00% for its Tier 1 risk-based capital, total risk-based capital and leverage ratios, respectively. Shore Bancshares, Inc., as a financial holding company, is subject to the well-capitalized requirement. | ||||||||||||||||||||
The following tables present the capital amounts and ratios for Shore Bancshares, Inc., Talbot Bank and CNB as of December 31, 2014 and 2013. | ||||||||||||||||||||
Total | Net | Tier 1 | Total | |||||||||||||||||
Risk- | Risk- | Adjusted | Risk-Based | Risk-Based | Tier 1 | |||||||||||||||
December 31, 2014 | Tier 1 | Based | Weighted | Average | Capital | Capital | Leverage | |||||||||||||
(Dollars in thousands) | Capital | Capital | Assets | Total Assets | Ratio | Ratio | Ratio | |||||||||||||
Company | $ | 112,511 | $ | 120,510 | $ | 736,763 | $ | 1,075,674 | 15.27 | % | 16.36 | % | 10.46 | % | ||||||
Talbot Bank | 51,637 | 55,910 | 394,788 | 579,781 | 13.08 | 14.16 | 8.91 | |||||||||||||
CNB | 44,869 | 48,594 | 331,089 | 485,042 | 13.55 | 14.68 | 9.25 | |||||||||||||
Total | Net | Tier 1 | Total | |||||||||||||||||
Risk- | Risk- | Adjusted | Risk-Based | Risk-Based | Tier 1 | |||||||||||||||
December 31, 2013 | Tier 1 | Based | Weighted | Average | Capital | Capital | Leverage | |||||||||||||
(Dollars in thousands) | Capital | Capital | Assets | Total Assets | Ratio | Ratio | Ratio | |||||||||||||
Company | $ | 72,370 | $ | 81,341 | $ | 717,129 | $ | 1,028,957 | 10.09 | % | 11.34 | % | 7.03 | % | ||||||
Talbot Bank | 28,395 | 33,554 | 410,547 | 569,689 | 6.92 | 8.17 | 4.98 | |||||||||||||
CNB | 42,186 | 45,998 | 305,278 | 460,747 | 13.82 | 15.07 | 9.16 | |||||||||||||
Federal and state laws and regulations applicable to banks and their holding companies impose certain restrictions on dividend payments by the Banks, as well as restricting extensions of credit and transfers of assets between the Banks and Shore Bancshares, Inc. Talbot Bank is currently prohibited from paying dividends to Shore Bancshares, Inc. without the prior consent of its banking regulators. CNB paid dividends of $200 thousand to Shore Bancshares, Inc. during 2014. At December 31, 2014, CNB could have paid additional dividends to Shore Bancshares, Inc. of approximately $4.5 million without the prior consent and approval of its regulatory agencies. Shore Bancshares, Inc. had no outstanding receivables from subsidiaries at December 31, 2014 or 2013. | ||||||||||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||
Comprehensive Income (Loss) Note [Text Block] | NOTE 18. 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 2014 and 2013. | |||||||||||||
Accumulated net | Accumulated net | ||||||||||||
unrealized holding | unrealized holding | Accumulated | |||||||||||
gains (losses) on | gains (losses) on | other | |||||||||||
available for sale | cash flow hedging | comprehensive | |||||||||||
(Dollars in thousands) | securities | activities | income (loss) | ||||||||||
Balance, December 31, 2013 | $ | -437 | $ | - | $ | -437 | |||||||
Other comprehensive (loss) income | 767 | - | 767 | ||||||||||
Reclassification of (gains) losses recognized | -14 | - | -14 | ||||||||||
Balance, December 31, 2014 | $ | 316 | $ | - | $ | 316 | |||||||
Balance, December 31, 2012 | $ | 1,894 | $ | -1,186 | $ | 708 | |||||||
Other comprehensive income | -1,786 | 407 | -1,379 | ||||||||||
Reclassification of (gains) losses recognized | -545 | 779 | 234 | ||||||||||
Balance, December 31, 2013 | $ | -437 | $ | - | $ | -437 | |||||||
The following table presents the amounts reclassified out of each component of accumulated comprehensive income (loss) for the years ended December 31, 2014 and 2013. | |||||||||||||
Amount Reclassified from | |||||||||||||
Details about Accumulated Other | Accumulated Other | ||||||||||||
Comprehensive Income Components | Comprehensive Income | Affected Line Item in the Statement | |||||||||||
(dollars in thousands) | (Loss) | Where Net Income is Presented | |||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Realized gain on sale of investment securities | $ | 14 | $ | 545 | $ | 166 | Gain on sale of investment securities | ||||||
Total Reclassification for the Period | $ | 14 | $ | 545 | $ | 166 | |||||||
LINES_OF_CREDIT
LINES OF CREDIT | 12 Months Ended |
Dec. 31, 2014 | |
Line of Credit Facility [Abstract] | |
Line Of Credit Disclosure [Text Block] | NOTE 19. LINES OF CREDIT |
The Banks had $15.5 million in federal funds lines of credit and a reverse repurchase agreement available on a short-term basis from correspondent banks at both December 31, 2014 and 2013. In addition, the Banks had credit availability of approximately $70.9 million and $46.9 million from the Federal Home Loan Bank at December 31, 2014 and 2013, respectively. These lines of credit are paid for monthly on a fee basis of 0.09%. The Banks have pledged as collateral, under a blanket lien, all qualifying residential loans under borrowing agreements with the Federal Home Loan Bank. The Banks had no short-term borrowings from the Federal Home Loan Bank at December 31, 2014 or 2013. | |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||
Fair Value Disclosures [Text Block] | NOTE 20. 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 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 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. | ||||||||||||||
The tables below present the recorded amount of assets measured at fair value on a recurring basis at December 31, 2014 and 2013. No assets were transferred from one hierarchy level to another during 2014 or 2013. | ||||||||||||||
Significant Other | Significant | |||||||||||||
Quoted Prices | Observable Inputs | Unobservable Inputs | ||||||||||||
(Dollars in thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||
31-Dec-14 | ||||||||||||||
Securities available for sale: | ||||||||||||||
U.S. Treasury | $ | 5,215 | $ | 5,215 | $ | - | $ | - | ||||||
U.S. Government agencies | 74,960 | - | 74,960 | - | ||||||||||
Mortgage-backed | 155,303 | - | 155,303 | - | ||||||||||
Equity | 630 | - | 630 | - | ||||||||||
Total | $ | 236,108 | $ | 5,215 | $ | 230,893 | $ | - | ||||||
Significant Other | Significant | |||||||||||||
Quoted Prices | Observable Inputs | Unobservable | ||||||||||||
(Dollars in thousands) | Fair Value | (Level 1) | (Level 2) | Inputs (Level 3) | ||||||||||
31-Dec-13 | ||||||||||||||
Securities available for sale: | ||||||||||||||
U.S. Treasury | $ | 5,343 | $ | 5,343 | $ | - | $ | - | ||||||
U.S. Government agencies | 60,444 | - | 60,444 | - | ||||||||||
Mortgage-backed | 80,713 | - | 80,713 | - | ||||||||||
Equity | 601 | - | 601 | - | ||||||||||
Total | $ | 147,101 | $ | 5,343 | $ | 141,758 | $ | - | ||||||
Below is a discussion on the Company’s assets measured at fair value on a nonrecurring basis. | ||||||||||||||
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 December 31, 2014 and 2013, substantially all impaired loans were evaluated based on the fair value of the collateral and were classified as Level 2 in the fair value hierarchy. | ||||||||||||||
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 December 31, 2014, the Company had no loans held for sale. At December 31, 2013 loans held for sale were classified as Level 2 in the fair value hierarchy. | ||||||||||||||
Other Real Estate 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 December 31, 2014 and 2013, foreclosed assets were classified as Level 2 in the fair value hierarchy. | ||||||||||||||
The tables below present the recorded amount of assets measured at fair value on a nonrecurring basis at December 31, 2014 and 2013. No assets were transferred from one hierarchy level to another during 2014 or 2013. | ||||||||||||||
Significant Other | Significant | |||||||||||||
Quoted Prices | Observable Inputs | Unobservable Inputs | ||||||||||||
(Dollars in thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||
31-Dec-14 | ||||||||||||||
Impaired loans | ||||||||||||||
Construction | $ | 10,026 | $ | - | $ | 10,026 | $ | - | ||||||
Residential real estate | 9,304 | - | 9,304 | - | ||||||||||
Commercial real estate | 9,230 | - | 9,230 | - | ||||||||||
Commercial | 187 | - | 187 | - | ||||||||||
Consumer | 121 | - | 121 | - | ||||||||||
Total impaired loans | 28,868 | - | 28,868 | - | ||||||||||
Other real estate owned | 3,691 | - | 3,691 | - | ||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 32,559 | $ | - | $ | 32,559 | $ | - | ||||||
Significant Other | Significant | |||||||||||||
Quoted Prices | Observable Inputs | Unobservable | ||||||||||||
(Dollars in thousands) | Fair Value | (Level 1) | (Level 2) | Inputs (Level 3) | ||||||||||
31-Dec-13 | ||||||||||||||
Impaired loans | ||||||||||||||
Construction | $ | 5,365 | $ | - | $ | 5,365 | $ | - | ||||||
Residential real estate | 19,463 | - | 19,463 | - | ||||||||||
Commercial real estate | 14,418 | - | 14,418 | - | ||||||||||
Commercial | 642 | - | 642 | - | ||||||||||
Consumer | 43 | - | 43 | - | ||||||||||
Total impaired loans | 39,931 | - | 39,931 | - | ||||||||||
Loans held for sale | 3,521 | - | 3,521 | - | ||||||||||
Other real estate owned | 3,779 | - | 3,779 | - | ||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 47,231 | $ | - | $ | 47,231 | $ | - | ||||||
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 prices. If a quoted price is not available, fair value is estimated using quoted 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. | ||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||
Estimated | Estimated | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
(Dollars in thousands) | Amount | Value | Amount | Value | ||||||||||
Financial assets | ||||||||||||||
Level 2 inputs | ||||||||||||||
Cash and cash equivalents | $ | 96,223 | $ | 96,223 | $ | 131,090 | $ | 131,090 | ||||||
Investment securities held to maturity | 4,630 | 4,694 | 5,185 | 5,062 | ||||||||||
Loans, net | 703,051 | 724,771 | 701,194 | 721,688 | ||||||||||
Financial liabilities | ||||||||||||||
Level 2 inputs | ||||||||||||||
Deposits | $ | 949,004 | $ | 948,605 | $ | 933,468 | $ | 934,943 | ||||||
Short-term borrowings | 4,808 | 4,808 | 10,140 | 10,140 | ||||||||||
DERATIVE_INSTRUMENTS_AND_HEDGI
DERATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 21. 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 related to our participation in the IND Program. In the fourth quarter of 2012, the Company decided to partially exit the IND Program in an effort to reduce its excess liquidity and a portion of the interest rate caps used to hedge the interest rates on these deposits was terminated. In the second quarter of 2013, the Company fully exited the IND Program and the remainders of the interest rate caps 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 both the second quarter of 2013 and the fourth quarter of 2012. | |
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 December 31, 2013 included an increase of $681 thousand to reflect unrealized holding gains on the interest rate caps and a decrease of $695 thousand to reflect the charge to interest expense associated with the hedged money market deposit accounts. Interest expense for 2014 did not reflect this adjustment because the interest rate caps were terminated in June of 2013. | |
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 at December 31, 2014 and 2013, respectively. | |
FINANCIAL_INSTRUMENTS_WITH_OFF
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | ||||||||
Financial Instruments With Off Balance Sheet Risk Disclosure [Text Block] | NOTE 22. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | |||||||
In the normal course of business, to meet the financing needs of its customers, the Banks are parties to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. The Banks’ exposure to credit loss in the event of nonperformance by the other party to these financial instruments is represented by the contractual amount of the instruments. The Banks use the same credit policies in making commitments and conditional obligations as they do for on-balance sheet instruments. The Banks generally require collateral or other security to support the financial instruments with credit risk. The amount of collateral or other security is determined based on management’s credit evaluation of the counterparty. The Banks evaluate each customer’s creditworthiness on a case-by-case basis. | ||||||||
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 Banks 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 as of December 31, 2014 and 2013. | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Commitments to extend credit | $ | 127,080 | $ | 116,596 | ||||
Letters of credit | 7,347 | 10,477 | ||||||
Total | $ | 134,427 | $ | 127,073 | ||||
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies Disclosure [Text Block] | NOTE 23. CONTINGENCIES |
In the normal course of business, Shore Bancshares, Inc. and its subsidiaries may become involved in litigation arising from banking, financial, and other activities. Management, after consultation with legal counsel, does not anticipate that the future liability, if any, arising out of current proceedings will have a material effect on the Company’s financial condition, operating results, or liquidity. | |
PARENT_COMPANY_FINANCIAL_INFOR
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE 24. PARENT COMPANY FINANCIAL INFORMATION | ||||||||||
The following tables provide condensed financial information for Shore Bancshares, Inc. (Parent Company Only). | |||||||||||
Condensed Balance Sheets | |||||||||||
December 31, | |||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||
Assets | |||||||||||
Cash | $ | 2,101 | $ | 987 | |||||||
Investment securities | 9,723 | - | |||||||||
Investment in subsidiaries | 126,857 | 102,815 | |||||||||
Premises and equipment, net | 3,158 | 2,726 | |||||||||
Other assets | 1,329 | 1,284 | |||||||||
Total assets | $ | 143,168 | $ | 107,812 | |||||||
Liabilities | |||||||||||
Accrued interest payable | $ | 1 | $ | - | |||||||
Deferred tax liability | - | 1,628 | |||||||||
Other liabilities | 855 | 542 | |||||||||
Long-term debt | 1,843 | 2,343 | |||||||||
Total liabilities | 2,699 | 4,513 | |||||||||
Stockholders’ equity | |||||||||||
Common stock | 126 | 85 | |||||||||
Additional paid in capital | 63,532 | 32,207 | |||||||||
Retained earnings | 76,495 | 71,444 | |||||||||
Accumulated other comprehensive income (loss) | 316 | -437 | |||||||||
Total stockholders’ equity | 140,469 | 103,299 | |||||||||
Total liabilities and stockholders’ equity | $ | 143,168 | $ | 107,812 | |||||||
Condensed Statements of Operations | |||||||||||
For the Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Income | |||||||||||
Dividends from subsidiaries | $ | 200 | $ | 2,163 | $ | 3,154 | |||||
Management and other fees from subsidiaries | 7,933 | 6,226 | 5,692 | ||||||||
Other income | 110 | 31 | 180 | ||||||||
Total income | 8,243 | 8,420 | 9,026 | ||||||||
Expenses | |||||||||||
Interest expense | 80 | 88 | 107 | ||||||||
Salaries and employee benefits | 5,321 | 4,447 | 4,188 | ||||||||
Occupancy and equipment expense | 541 | 508 | 463 | ||||||||
Other operating expenses | 2,387 | 1,853 | 1,529 | ||||||||
Total expenses | 8,329 | 6,896 | 6,287 | ||||||||
(Loss) income before income tax benefit and equity in undistributed net income (loss) of subsidiaries | -86 | 1,524 | 2,739 | ||||||||
Income tax benefit | -107 | -61 | -58 | ||||||||
Income before equity in undistributed net income (loss) of subsidiaries | 21 | 1,585 | 2,797 | ||||||||
Equity in undistributed net income (loss) of subsidiaries | 5,030 | -11,219 | -12,435 | ||||||||
Net income (loss) | $ | 5,051 | $ | -9,634 | $ | -9,638 | |||||
Condensed Statements of Cash Flows | |||||||||||
For the Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 5,051 | $ | -9,634 | $ | -9,638 | |||||
Adjustments to reconcile net (income) loss to cash provided by operating activities: | |||||||||||
Equity in undistributed net (income) loss of subsidiaries | -5,030 | 11,219 | 12,435 | ||||||||
Depreciation and amortization | 379 | 386 | 367 | ||||||||
Stock-based compensation expense | 87 | 78 | 209 | ||||||||
Excess tax benefit from stock-based arrangements | - | -26 | -106 | ||||||||
Net (increase) decrease in other assets | -121 | 128 | -246 | ||||||||
Net increase (decrease) in other liabilities | 271 | -53 | -423 | ||||||||
Net cash provided by operating activities | 637 | 2,098 | 2,598 | ||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sale of securities | 442 | - | - | ||||||||
Purchases of securities | -10,112 | - | - | ||||||||
Purchases of premises and equipment | -632 | -307 | -108 | ||||||||
Investment in subsidiaries | -20,000 | -1,650 | -2,000 | ||||||||
Net cash used in investing activities | -30,302 | -1,957 | -2,108 | ||||||||
Cash flows from financing activities: | |||||||||||
Repayment of long-term debt | -500 | - | -1,007 | ||||||||
Excess tax benefit from stock-based arrangements | - | 26 | 106 | ||||||||
Proceeds from issuance of common stock | 31,279 | - | - | ||||||||
Common stock dividends paid | - | - | -85 | ||||||||
Net cash provided by (used in) financing activities | 30,779 | 26 | -986 | ||||||||
Net increase (decrease) in cash and cash equivalents | 1,114 | 167 | -496 | ||||||||
Cash and cash equivalents at beginning of year | 987 | 820 | 1,316 | ||||||||
Cash and cash equivalents at end of year | $ | 2,101 | $ | 987 | $ | 820 | |||||
QUARTERLY_FINANCIAL_RESULTS_un
QUARTERLY FINANCIAL RESULTS (unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Quarterly Financial Information [Text Block] | NOTE 25. QUARTERLY FINANCIAL RESULTS (unaudited) | |||||||||||||
The following table provides a summary of selected consolidated quarterly financial data for the two years ended December 31, 2014. | ||||||||||||||
(In thousands, except per share data) | First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
2014 | ||||||||||||||
Interest income | $ | 9,455 | $ | 9,523 | $ | 9,686 | $ | 9,625 | ||||||
Net interest income | 8,323 | 8,447 | 8,636 | 8,636 | ||||||||||
Provision for credit losses | 975 | 950 | 775 | 650 | ||||||||||
Income (loss) before income taxes | 2,021 | 2,108 | 2,036 | 1,947 | ||||||||||
Net income (loss) | 1,258 | 1,305 | 1,262 | 1,226 | ||||||||||
Basic earnings (loss) per common share | $ | 0.15 | $ | 0.13 | $ | 0.1 | $ | 0.1 | ||||||
Diluted earnings (loss) per common share | $ | 0.15 | $ | 0.13 | $ | 0.1 | $ | 0.1 | ||||||
2013 | ||||||||||||||
Interest income | $ | 10,607 | $ | 10,755 | $ | 10,182 | $ | 9,807 | ||||||
Net interest income | 8,477 | 9,001 | 8,828 | 8,570 | ||||||||||
Provision for credit losses | 2,150 | 2,700 | 22,460 | 474 | ||||||||||
(Loss) income before income taxes | 326 | 504 | -18,808 | 1,843 | ||||||||||
Net (loss) income | 222 | 361 | -11,392 | 1,175 | ||||||||||
Basic (loss) earnings per common share | $ | 0.03 | $ | 0.04 | $ | -1.35 | $ | 0.14 | ||||||
Diluted (loss) earnings per common share | $ | 0.03 | $ | 0.04 | $ | -1.35 | $ | 0.14 | ||||||
2012 | ||||||||||||||
Interest income | $ | 11,856 | $ | 11,692 | $ | 11,393 | $ | 10,960 | ||||||
Net interest income | 9,195 | 9,033 | 8,730 | 8,381 | ||||||||||
Provision for credit losses | 8,370 | 3,525 | 6,200 | 9,650 | ||||||||||
(Loss) income before income taxes | -5,099 | 422 | -3,178 | -8,348 | ||||||||||
Net (loss) income | -3,036 | 293 | -1,821 | -5,074 | ||||||||||
Basic (loss) earnings per common share | $ | -0.36 | $ | 0.03 | $ | -0.22 | $ | -0.6 | ||||||
Diluted (loss) earnings per common share | $ | -0.36 | $ | 0.03 | $ | -0.22 | $ | -0.6 | ||||||
Earnings per share are based on quarterly results and may not be additive to the annual earnings per share amounts. | ||||||||||||||
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Segment Reporting Disclosure [Text Block] | NOTE 26. SEGMENT REPORTING | |||||||||||||
The Company operates two primary business segments: Community Banking and Insurance Products and Services. The Community Banking business provides services to consumers and small businesses on the Eastern Shore of Maryland and in 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. | ||||||||||||||
Selected financial information by business segments is included in the following table. | ||||||||||||||
Community | Insurance Products | Parent | ||||||||||||
(Dollars in thousands) | Banking | and Services | Company | Total | ||||||||||
2014 | ||||||||||||||
Interest income | $ | 38,202 | $ | - | $ | 87 | $ | 38,289 | ||||||
Interest expense | -4,247 | - | - | -4,247 | ||||||||||
Provision for credit losses | -3,350 | - | - | -3,350 | ||||||||||
Noninterest income | 6,482 | 10,305 | -6 | 16,781 | ||||||||||
Noninterest expense | -22,776 | -8,527 | -8,058 | -39,361 | ||||||||||
Net intersegment (expense) income | -7,010 | -680 | 7,690 | - | ||||||||||
(Loss) income before income taxes | 7,301 | 1,098 | -287 | 8,112 | ||||||||||
Income tax benefit (expense) | -2,755 | -414 | 108 | -3,061 | ||||||||||
Net (loss) income | $ | 4,546 | $ | 684 | $ | -179 | $ | 5,051 | ||||||
Total assets | $ | 1,074,638 | $ | 10,824 | $ | 14,940 | $ | 1,100,402 | ||||||
2013 | ||||||||||||||
Interest income | $ | 41,310 | $ | 41 | $ | - | $ | 41,351 | ||||||
Interest expense | -6,475 | - | - | -6,475 | ||||||||||
Provision for credit losses | -27,784 | - | - | -27,784 | ||||||||||
Noninterest income | 5,716 | 11,737 | 6 | 17,459 | ||||||||||
Noninterest expense | -23,676 | -10,350 | -6,660 | -40,686 | ||||||||||
Net intersegment (expense) income | -5,359 | -655 | 6,014 | - | ||||||||||
(Loss) income before income taxes | -16,268 | 773 | -640 | -16,135 | ||||||||||
Income tax benefit (expense) | 6,556 | -313 | 258 | 6,501 | ||||||||||
Net (loss) income | $ | -9,712 | $ | 460 | $ | -382 | $ | -9,634 | ||||||
Total assets | $ | 1,036,098 | $ | 15,759 | $ | 2,267 | $ | 1,054,124 | ||||||
2012 | ||||||||||||||
Interest income | $ | 45,822 | $ | 79 | $ | - | $ | 45,901 | ||||||
Interest expense | -10,546 | - | -16 | -10,562 | ||||||||||
Provision for credit losses | -27,745 | - | - | -27,745 | ||||||||||
Noninterest income | 5,197 | 10,422 | 139 | 15,758 | ||||||||||
Noninterest expense | -23,702 | -9,820 | -6,033 | -39,555 | ||||||||||
Net intersegment (expense) income | -4,993 | -503 | 5,496 | - | ||||||||||
(Loss) income before income taxes | -15,967 | 178 | -414 | -16,203 | ||||||||||
Income tax benefit (expense) | 6,467 | -70 | 168 | 6,565 | ||||||||||
Net (loss) income | $ | -9,500 | $ | 108 | $ | -246 | $ | -9,638 | ||||||
Total assets | $ | 1,166,468 | $ | 16,809 | $ | 2,530 | $ | 1,185,807 | ||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Nature Of Operations [Policy Text Block] | Nature of Operations |
The Company engages in the banking business through CNB, a Maryland commercial bank with trust powers, and The Talbot Bank of Easton, Maryland, a Maryland commercial bank (“Talbot Bank”). Through December 31, 2010, the Company also engaged in the banking business through The Felton Bank, a Delaware commercial bank (“Felton Bank” and, together with CNB and Talbot Bank, the “Banks”), which was merged into CNB on January 1, 2011. The Company’s primary source of revenue is interest earned on commercial, real estate and consumer loans made to customers located on the Delmarva Peninsula. The Company engages in the insurance business through two general insurance producer firms, The Avon-Dixon Agency, LLC, a Maryland limited liability company, and Elliott Wilson Insurance, LLC, a Maryland limited liability company; one marine insurance producer firm, Jack Martin & Associates, Inc., a Maryland corporation; a insurance premium finance company, Mubell Finance, LLC, a Maryland limited liability company (all of the foregoing insurance entities are collectively referred to as the “Insurance Subsidiaries”). | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
The allowance for credit losses is a material estimate that is particularly susceptible to significant changes in the near term. Management believes that the Company’s current allowance for credit losses is sufficient to address the probable losses in the current portfolio. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination processes, periodically review the Company’s allowance for credit losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. | |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Investment Securities Available for Sale |
Investment securities available for sale are stated at estimated fair value based on quoted prices. They represent those securities which management may sell as part of its asset/liability management strategy or which may be sold in response to changing interest rates, changes in prepayment risk or other similar factors. The cost of securities sold is determined by the specific identification method. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Net unrealized holding gains and losses on these securities are reported as accumulated other comprehensive income, a separate component of stockholders’ equity, net of related income taxes. Declines in the fair value of individual available-for-sale securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value and are reflected in earnings as realized losses. Factors affecting the determination of whether an other-than-temporary impairment has occurred include a downgrade of the security by a rating agency, a significant deterioration in the financial condition of the issuer, or a determination that management has the intent to sell the security or will be required to sell the security before recovery of its amortized cost. | |
Marketable Securities, Held-to-maturity Securities, Policy [Policy Text Block] | Investment Securities Held to Maturity |
Investment securities held to maturity are stated at cost adjusted for amortization of premiums and accretion of discounts. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The Company intends and has the ability to hold such securities until maturity. Declines in the fair value of individual held-to-maturity securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value. Factors affecting the determination of whether an other-than-temporary impairment has occurred include a downgrade of the security by a rating agency, a significant deterioration in the financial condition of the issuer, or a determination that management has the intent to sell the security or will be required to sell the security before recovery of its amortized cost. | |
Policy Loans Receivable, Policy [Policy Text Block] | Loans |
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 homogeneous 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 below under the section, “Allowance for Credit Losses”. | |
A loan is considered a troubled debt restructuring (“TDR”) 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. Loans are identified to be restructured when signs of impairment arise such as borrower interest rate reduction request, slowness to pay, or when an inability to repay becomes evident. The terms being offered are evaluated to determine if they are more liberal than those that would be indicated by policy or industry standards for similar, untroubled credits. In those situations where the terms or the interest rates are considered to be more favorable than industry standards or the current underwriting guidelines of the Company’s banking subsidiaries, the loan is classified as a TDR. All loans designated as TDRs are considered impaired loans and may be on either accrual or nonaccrual status. In instances where the loan has been placed on nonaccrual status, six consecutive months of timely payments are required prior to returning the loan to accrual status. | |
All loans classified as TDRs which are restructured and accrue interest under revised terms require a full and comprehensive review of the borrower’s financial condition, capacity for repayment, realistic assessment of collateral values, and the assessment of risk entered into any workout agreement. Current financial information on the borrower, guarantor, and underlying collateral is analyzed to determine if it supports the ultimate collection of principal and interest. For commercial loans, the cash flows are analyzed, both for the underlying project and globally. For consumer loans, updated salary, credit history and cash flow information is obtained. Current market conditions are also considered. Following a full analysis, the determination of the appropriate loan structure is made. The Company does not participate in any specific government or Company sponsored loan modification programs. All TDR loan agreements are contracts negotiated with each of the borrowers. | |
On October 28, 2013, Talbot Bank entered into agreements to sell assets with an aggregate book value of $45.0 million for a price of $25.2 million. The assets consisted of $11.1 million of nonaccrual loans, $30.4 million of accruing TDRs, $1.8 million of adversely classified performing loans and $1.7 million of other real estate owned. The execution of these agreements was consummated in the fourth quarter of 2013. | |
Allowance for Funds Used During Construction, Policy [Policy Text Block] | Allowance for Credit Losses |
The allowance for credit losses is maintained at a level believed adequate by management to absorb losses inherent in the loan portfolio as of the balance sheet date and is based on the size and current risk characteristics of the loan portfolio, an assessment of individual problem loans and actual loss experience, current economic events in specific industries and geographical areas, including unemployment levels, and other pertinent factors, including regulatory guidance and general economic conditions and other observable data. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows or collateral value of impaired loans, estimated losses on pools of homogeneous loans that are based on historical loss experience, and consideration of current economic trends, all of which may be susceptible to significant change. Loans, or portions thereof, that are considered uncollectible are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is charged to operations based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. Evaluations are conducted at least quarterly and more often if deemed necessary. | |
The allowance for credit losses is an estimate of the losses that may be sustained in the loan portfolio. The allowance is based on two basic principles of accounting: (i) Accounting Standards Codification (“ASC”) Topic 450, “Contingencies”, which requires that losses be accrued when they are probable of occurring and estimable; and (ii) ASC Topic 310, “Receivables,” which requires that losses be accrued based on the differences between the loan balance and the value of collateral, present value of future cash flows or values that are observable in the secondary market. Management uses many factors to estimate the inherent loss that may be present in our loan portfolio, including economic conditions and trends, the value and adequacy of collateral, the volume and mix of the loan portfolio, and our internal loan processes. Actual losses could differ significantly from management’s estimates. In addition, GAAP itself may change from one previously acceptable method to another. Although the economics of transactions would be the same, the timing of events that would impact the transactions could change. | |
The allowance for credit losses is comprised of three parts: (i) the specific allowance; (ii) the formula allowance; and (iii) the unallocated allowance. The specific allowance is established against impaired loans (i.e., nonaccrual loans and accruing TDRs) until charge offs are made. The formula allowance, described below, is determined based on management’s assessment of industry trends and economic factors in the markets in which we operate. The determination of the formula allowance involves a higher risk of uncertainty and considers current risk factors that may not have yet manifested themselves in our historical loss factors. The unallocated allowance captures losses that have impacted the portfolio but have yet to be recognized in either the specific or formula allowance. | |
The formula allowance is used to estimate the loss on internally risk-rated loans, exclusive of those identified as impaired. Loans are grouped by type (construction, residential real estate, commercial real estate, commercial or consumer). Each loan type is assigned allowance factors based on management’s estimate of the risk, complexity and size of individual loans within a particular category. Loans that are identified as special mention, substandard and doubtful are adversely rated. These loans are assigned higher allowance factors than favorably rated loans due to management’s concerns regarding collectability or management’s knowledge of particular elements regarding the borrower. A special mention loan has potential weaknesses that could result in a future loss to the Company if the weaknesses are realized. A substandard loan has certain deficiencies that could result in a future loss to the Company if these deficiencies are not corrected. A doubtful loan has enough risk that there is a high probability that the Company will sustain a loss. | |
Property, Plant and Equipment, Policy [Policy Text Block] | Premises and Equipment |
Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets. Useful lives range from three to 10 years for furniture, fixtures and equipment; three to five years for computer hardware and data handling equipment; and 10 to 40 years for buildings and building improvements. Land improvements are amortized over a period of 15 years and leasehold improvements are amortized over the term of the respective lease. Sale-leaseback transactions are considered normal leasebacks and any realized gains are deferred and amortized to other income on a straight-line basis over the initial lease term. Maintenance and repairs are charged to expense as incurred, while improvements which extend the useful life of an asset are capitalized and depreciated over the estimated remaining life of the asset. | |
Long-lived assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of a long-lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset. | |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets |
Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that also lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability. Goodwill and other intangible assets with indefinite lives are tested at least annually for impairment, usually during the third quarter, or on an interim basis if circumstances dictate. Intangible assets that have finite lives are amortized over their estimated useful lives and also are subject to impairment testing. The Company’s other intangible assets that have finite lives are amortized on a straight-line basis over varying periods not exceeding 21 years. | |
Impairment testing requires that the fair value of each of the Company’s reporting units be compared to the carrying amount of its net assets, including goodwill. The Company’s reporting units were identified based on an analysis of each of its individual operating segments. If the fair value of a reporting unit is less than book value, an expense may be required to write down the related goodwill or purchased intangibles to record an impairment loss. | |
During the third quarter of 2014 and 2013, goodwill and other intangible assets were subjected to the annual assessment for impairment. As a result of the assessment, it was determined that it was not more likely than not that the fair values of the Company’s reporting units were less than their carrying amounts so no impairment was recorded. | |
Real Estate Owned, Valuation Allowance, Policy [Policy Text Block] | Other Real Estate Owned |
Other real estate owned represents assets acquired in satisfaction of loans either by foreclosure or deeds taken in lieu of foreclosure. Properties acquired are recorded at the lower of cost or fair value less estimated selling costs at the time of acquisition with any deficiency charged to the allowance for credit losses. Thereafter, costs incurred to operate or carry the properties as well as reductions in value as determined by periodic appraisals are charged to operating expense. Gains and losses resulting from the final disposition of the properties are included in noninterest income. | |
Short Term Borrowings [Policy Text Block] | Short-Term Borrowings |
Short-term borrowings are comprised primarily of repurchase agreements. The repurchase agreements are securities sold to the Company’s customers, at the customers’ request, under a continuing “roll-over” contract that matures in one business day. The underlying securities sold are U.S. Government agency securities, which are segregated from the Company’s other investment securities by its safekeeping agents. | |
Income Tax, Policy [Policy Text Block] | Income Taxes |
Shore Bancshares, Inc. and its subsidiaries file a consolidated federal income tax return. The Company accounts for income taxes using the liability method in accordance with required accounting guidance. Under this method, deferred tax assets and liabilities are determined by applying the applicable federal and state income tax rates to cumulative temporary differences. These temporary differences represent differences between financial statement carrying amounts and the corresponding tax bases of certain assets and liabilities. Deferred taxes result from such temporary differences. | |
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent on the generation of a sufficient level of future taxable income, recoverable taxes paid in prior years and tax planning strategies. | |
The Company recognizes accrued interest and penalties as a component of tax expense. The Company does not have any uncertain tax positions and did not recognize any adjustments for unrecognized tax benefits. The Company remains subject to examination for income tax returns ending after December 31, 2011. | |
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Earnings Per Common Share |
Basic earnings (loss) per share is calculated by dividing net income (loss) available to common stockholders by the weighted-average number of common shares outstanding and does not include the effect of any potentially dilutive common stock equivalents. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding, adjusted for the effect of any potentially dilutive common stock equivalents. There is no dilutive effect on the loss per share during loss periods. | |
Transfers and Servicing of Financial Assets, Policy [Policy Text Block] | Transfers of Financial Assets |
Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
Inventory, Cash Flow Policy [Policy Text Block] | Statement of Cash Flows |
Cash and due from banks, interest-bearing deposits with other banks and federal funds sold are considered “cash and cash equivalents” for financial reporting purposes. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation |
Accounting guidance for stock-based compensation requires that expense relating to such transactions be recognized as compensation cost in the income statement. Stock-based compensation expense is recognized ratably over the requisite service period for all awards and is based on the grant date fair value. See Note 12 for a further discussion. | |
Derivatives, Reporting of Derivative Activity [Policy Text Block] | Derivative Instruments and Hedging Activities |
Under accounting guidance for derivative instruments and hedging activities, all derivatives are recorded as other assets or other liabilities on the balance sheet at their respective fair values. When the purpose of a derivative is to hedge the variability of a floating rate asset or liability, the derivative is considered a “cash flow” hedge. To account for the effective portion of a cash flow hedge, unrealized gains and losses due to changes in the fair value of the derivative designated as a cash flow hedge are recorded in other comprehensive income. Ineffectiveness resulting from differences between the cash flows of the hedged item and changes in fair value of the derivative is recognized as other noninterest income. The net interest settlement on a derivative designated as a cash flow hedge is treated as an adjustment of the interest income or interest expense of the hedged asset or liability. | |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value |
The Company measures certain financial assets and liabilities at fair value. Significant financial instruments measured at fair value on a recurring basis are investment securities and interest rate caps. Impaired loans and other real estate owned are significant financial instruments measured at fair value on a nonrecurring basis. See Note 20 for a further discussion of fair value. | |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs |
Advertising costs are generally expensed as incurred. The Company incurred advertising costs of approximately $428 thousand, $848 thousand and $338 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events |
The Company has evaluated the accompanying consolidated financial statements for subsequent events and transactions through the date of the auditor’s report, which is the date these financial statements were available for issue, and have determined the no material subsequent events have occurred that would affect the information presented in the accompanying consolidated financial statements or require additional disclosure. | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Standards |
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 was effective for the Company beginning January 1, 2014 and did not have a significant impact on the Company’s financial statements. | |
ASU 2014-04, “Receivables (ASC Topic 310) – Troubled Debt Restructurings by Creditors, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” ASU 2014-04 clarifies when an in substance repossession or foreclosure occurs which is defined as when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires that the real property be recognized upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. ASU 2014-04 is effective for the Company for interim and annual periods beginning after December 15, 2014 and is not expected to have a significant impact on the Company’s financial statements. | |
Accounting Standards Update (“ASU”) 2014-14, “Receivables – Troubled Debt Restructurings by Creditors (Accounting Standards Codification (“ASC”) Subtopic 310-40) – Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.” ASU 2014-14 the Financial Accounting Standards Board (“FASB”) issued an amendment to clarify how creditors are to classify certain government-guaranteed mortgage loans upon foreclosure. This amendment requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) The loan has a government guarantee that is not separate from the loan before foreclosure and (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under the claim and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. This amendment is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to foreclosures that occur after the date of adoption or (b) modified retrospective transition using a cumulative-effect adjustment (through a reclassification to a separate other receivable) as of the beginning of the annual period of adoption. Prior periods should not be adjusted. The Company intends to adopt the accounting standard during the first quarter of 2015, as required, and is currently evaluating the impact on its results of operations, financial position, and liquidity. | |
ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” – ASU 2014-09 amendment requires entities to recognize revenue to depict the transfer of promised goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for periods beginning after January 1, 2017. The Company is evaluating the impact that the adoption of this amendment will have on our consolidated financial statements. | |
Regulatory Enforcement Actions [Policy Text Block] | Regulatory Enforcement Actions |
Talbot Bank entered into a Stipulation and Consent to the Issuance of a Consent Order (the “Consent Agreement”) with the Federal Deposit Insurance Corporation (“FDIC”), a Stipulation and Consent to the Issuance of a Consent Order (the “Maryland Consent Agreement” and together with the Consent Agreement, the “Consent Agreements”) with the Maryland Commissioner of Financial Regulation (the “Commissioner”) and an Acknowledgement of Adoption of the Order by the Commissioner (the “Acknowledgement”). The FDIC and the Commissioner issued the related Consent Order (the “Order”), effective May 24, 2013. The description of the Consent Agreements, the Order and the Acknowledgement along with Talbot Bank’s progress with the requirements, are set forth below. | |
Management. Talbot Bank is required to have and retain experienced, qualified management, and to assess management’s ability to (1) comply with the requirements of the Order; (2) operate Talbot Bank in a safe and sound manner; (3) comply with all applicable laws, rules and regulations; and (4) restore all aspects of Talbot Bank to a safe and sound condition, including capital adequacy, asset quality, and management effectiveness. Talbot Bank has implemented certain changes to comply with the Order which include expanding our credit administration and loan workout units with the addition of experienced new staff members, in an effort to accelerate the resolution of our credit issues and position Talbot Bank for future growth. Additionally, Talbot Bank has appointed a chief financial officer. | |
Board Participation. Talbot Bank’s board of directors is required to increase its participation in the affairs of Talbot Bank, assuming full responsibility for the approval of sound policies and objectives and for the supervision of all Talbot Bank activities, including comprehensive, documented meetings to be held no less frequently than monthly. The board of directors must also develop a program to monitor Talbot Bank’s compliance with the Order. Talbot Bank has completed a plan to increase the participation of its board of directors which includes increasing the frequency of board meetings from monthly to biweekly and establishing a risk management committee of the board which is responsible for monitoring Talbot Bank’s compliance with the Order. | |
Loss Charge-Offs. The Order requires that Talbot Bank eliminate from its books, by charge-off or collection, all assets or portions of assets classified “Loss” by the FDIC or the Commissioner. Talbot Bank has eliminated from its books all such classified assets. | |
Classified Assets Reduction. Within 60 days of the effective date of the Order, Talbot Bank was required to submit a Classified Asset Plan to the FDIC and the Commissioner to reduce the risk position in each asset in excess of $750,000 which was classified “Substandard” and “Doubtful” by the FDIC or the Commissioner. Talbot Bank revised its existing Classified Asset Plan to address the terms of the Order and submitted the updated plan to the FDIC and the Commissioner in accordance with the Order. | |
Allowance for Loan and Lease Losses. Within 60 days of the effective date of the Order, the board of directors was required to review the adequacy of the allowance for loan and lease losses (the “ALLL”), establish a policy for determining the adequacy of the ALLL and submit such ALLL policy to the FDIC and the Commissioner. Talbot Bank amended its ALLL policy to comply with the terms of the Order and submitted the updated policy to the FDIC and the Commissioner in accordance with the Order. | |
Loan Policy. Within 60 days from the effective date of the Order, Talbot Bank was required to (i) review its loan policies and procedures (“Loan Policy”) for adequacy, (ii) make all appropriate revisions to the Loan Policy to address the lending deficiencies identified by the FDIC, and (iii) submit the Loan Policy to the FDIC and the Commissioner. Talbot Bank completed its review of and made the required revisions to the Loan Policy. The updated Loan Policy was submitted to the FDIC and the Commissioner in accordance with the terms of the Order. | |
Loan Review Program. Within 30 days from the effective date of the Order, the Board was required to establish a program of independent loan review that will provide for a periodic review of Talbot Bank’s loan portfolio and the identification and categorization of problem credits (the “Loan Review Program”) and submit the Loan Review Program to the FDIC and the Commissioner. Talbot Bank enhanced its existing Loan Review Program and submitted it to the FDIC and the Commissioner in accordance with the terms of the Order. | |
Capital Requirements. Within 90 days from the effective date of the Order, Talbot Bank must meet and maintain the following minimum capital levels, after establishing an appropriate ALLL, (i) a leverage ratio (the ratio of Tier 1 capital to total assets) of at least 8%, and (ii) a total risk-based capital ratio (the ratio of qualifying total capital to risk-weighted assets) of at least 12%. As of December 31, 2014, the leverage ratio and total risk-based capital ratio were 8.91% and 14.16%, respectively, for Talbot Bank, which exceeded the Order’s minimum capital requirements. | |
Profit and Budget Plan. Within 60 days from the effective date of the Order and within 30 days of each calendar year-end thereafter, Talbot Bank was and will be required to submit a profit and budget plan to the FDIC and the Commissioner consisting of goals and strategies, consistent with sound banking practices, and taking into account Talbot Bank’s other plans, policies or other actions required by the Order. In accordance with the Order, Talbot Bank developed a profit and budget plan which was submitted to the FDIC and Commissioner within 60 days from the effective date of the Order and one which was submitted within 30 days of the end of 2014. The profit and budget plan was approved by the FDIC; additionally the FDIC approved the Talbot Bank capital plan. | |
Dividend Restriction. While the Order is in effect, Talbot Bank cannot declare or pay dividends or fees to the Company without the prior written consent of the FDIC and the Commissioner. Talbot Bank is in compliance with this provision of the Order. | |
Brokered Deposits. The Order provides that Talbot Bank may not accept, renew, or rollover any brokered deposits unless it is in compliance with the requirements of the FDIC regulations governing brokered deposits. Talbot Bank is in compliance with this provision of the Order. | |
Oversight Committee. Within 30 days from the effective date of the Order, Talbot Bank must establish a board committee to monitor and coordinate compliance with the Order. Talbot Bank has established a board committee to comply with this provision of the Order. | |
Progress Reports. Within 45 days from the end of each calendar quarter following the effective date of the Order, Talbot Bank must furnish the FDIC and the Commissioner with progress reports detailing the form, manner and results of any actions taken to secure compliance with the Order. Talbot Bank has and will continue to submit progress reports to comply with this provision of the Order. | |
The Order will remain in effect until modified or terminated by the FDIC and the Commissioner. | |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
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: | ||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||
U.S. Treasury | $ | 5,210 | $ | 5 | $ | - | $ | 5,215 | ||||||||||||
U.S. Government agencies | 75,220 | 87 | 347 | 74,960 | ||||||||||||||||
Mortgage-backed | 154,525 | 1,230 | 452 | 155,303 | ||||||||||||||||
Equity | 624 | 6 | - | 630 | ||||||||||||||||
Total | $ | 235,579 | $ | 1,328 | $ | 799 | $ | 236,108 | ||||||||||||
December 31, 2013: | ||||||||||||||||||||
U.S. Treasury | $ | 5,342 | $ | 1 | $ | - | $ | 5,343 | ||||||||||||
U.S. Government agencies | 60,754 | 62 | 372 | 60,444 | ||||||||||||||||
Mortgage-backed | 81,130 | 520 | 937 | 80,713 | ||||||||||||||||
Equity | 609 | - | 8 | 601 | ||||||||||||||||
Total | $ | 147,835 | $ | 583 | $ | 1,317 | $ | 147,101 | ||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||
U.S. Government agencies | $ | 2,791 | $ | - | $ | 83 | $ | 2,708 | ||||||||||||
States and political subdivisions | 1,839 | 147 | - | 1,986 | ||||||||||||||||
Total | $ | 4,630 | $ | 147 | $ | 83 | $ | 4,694 | ||||||||||||
December 31, 2013: | ||||||||||||||||||||
U.S. Government agencies | $ | 2,975 | $ | - | $ | 222 | $ | 2,753 | ||||||||||||
States and political subdivisions | 2,210 | 99 | - | 2,309 | ||||||||||||||||
Total | $ | 5,185 | $ | 99 | $ | 222 | $ | 5,062 | ||||||||||||
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 securities have been in a continuous unrealized loss position at December 31, 2014. | |||||||||||||||||||
Less than | More than | |||||||||||||||||||
12 Months | 12 Months | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
(Dollars in thousands) | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
U.S. Government agencies | $ | 41,574 | $ | 138 | $ | 6,954 | $ | 209 | $ | 48,528 | $ | 347 | ||||||||
Mortgage-backed | 12,933 | 44 | 26,828 | 408 | 39,761 | 452 | ||||||||||||||
Equity | - | - | 630 | - | 630 | - | ||||||||||||||
Total | $ | 54,507 | $ | 182 | $ | 34,412 | $ | 617 | $ | 88,919 | $ | 799 | ||||||||
Held-to-maturity securities: | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
U.S. Government agencies | $ | - | $ | - | $ | 2,708 | $ | 83 | $ | 2,708 | $ | 83 | ||||||||
Less than | More than | |||||||||||||||||||
12 Months | 12 Months | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
(Dollars in thousands) | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
U.S. Government agencies | $ | 33,004 | $ | 372 | $ | - | $ | - | $ | 33,004 | $ | 372 | ||||||||
Mortgage-backed | 28,694 | 416 | 19,121 | 521 | 47,815 | 937 | ||||||||||||||
Equity | 601 | 8 | - | - | 601 | 8 | ||||||||||||||
Total | $ | 62,299 | $ | 796 | $ | 19,121 | $ | 521 | $ | 81,420 | $ | 1,317 | ||||||||
Held-to-maturity securities: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
U.S. Government agencies | $ | 2,753 | $ | 222 | $ | - | $ | - | $ | 2,753 | $ | 222 | ||||||||
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 December 31, 2014. | |||||||||||||||||||
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 | $ | 2,001 | $ | 2,002 | $ | 221 | $ | 223 | ||||||||||||
Due after one year through five years | 75,099 | 74,981 | 712 | 764 | ||||||||||||||||
Due after five years through ten years | 11,361 | 11,405 | 403 | 459 | ||||||||||||||||
Due after ten years | 146,494 | 147,090 | 3,294 | 3,248 | ||||||||||||||||
234,955 | 235,478 | 4,630 | 4,694 | |||||||||||||||||
Equity securities | 624 | 630 | - | - | ||||||||||||||||
Total | $ | 235,579 | $ | 236,108 | $ | 4,630 | $ | 4,694 | ||||||||||||
Amortized Cost And Estimated Fair Values Of Securities [Table Text Block] | The following table sets forth the amortized cost and estimated fair values of securities which have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase. All pledged securities are in the available-for-sale investment portfolio. | |||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||||||
(Dollars in thousands) | Cost | Fair Value | Cost | Fair Value | ||||||||||||||||
Pledged available-for-sale securities | $ | 115,162 | $ | 115,458 | $ | 101,070 | $ | 100,507 | ||||||||||||
LOANS_AND_ALLOWANCE_FOR_CREDIT1
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||
Schedule of Financing Receivables [Table Text Block] | The following table provides information about the principal classes of the loan portfolio at December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||
Construction | $ | 69,157 | $ | 64,591 | |||||||||||||||||||||||||
Residential real estate | 273,336 | 274,857 | |||||||||||||||||||||||||||
Commercial real estate | 305,788 | 304,605 | |||||||||||||||||||||||||||
Commercial | 52,671 | 57,195 | |||||||||||||||||||||||||||
Consumer | 9,794 | 10,671 | |||||||||||||||||||||||||||
Total loans | 710,746 | 711,919 | |||||||||||||||||||||||||||
Allowance for credit losses | -7,695 | -10,725 | |||||||||||||||||||||||||||
Total loans, net | $ | 703,051 | $ | 701,194 | |||||||||||||||||||||||||
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 December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
Residential | Commercial | ||||||||||||||||||||||||||||
(Dollars in thousands) | Construction | real estate | real estate | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 10,067 | $ | 10,403 | $ | 9,359 | $ | 188 | $ | 124 | $ | - | $ | 30,141 | |||||||||||||||
Loans collectively evaluated for impairment | 59,090 | 262,933 | 296,429 | 52,483 | 9,670 | - | 680,605 | ||||||||||||||||||||||
Total loans | $ | 69,157 | $ | 273,336 | $ | 305,788 | $ | 52,671 | $ | 9,794 | $ | - | $ | 710,746 | |||||||||||||||
Allowance for credit losses allocated to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 41 | $ | 1,099 | $ | 129 | $ | 1 | $ | 3 | $ | - | $ | 1,273 | |||||||||||||||
Loans collectively evaluated for impairment | 1,262 | 1,735 | 2,250 | 447 | 226 | 502 | 6,422 | ||||||||||||||||||||||
Total allowance for credit losses | $ | 1,303 | $ | 2,834 | $ | 2,379 | $ | 448 | $ | 229 | $ | 502 | $ | 7,695 | |||||||||||||||
Residential | Commercial | ||||||||||||||||||||||||||||
(Dollars in thousands) | Construction | real estate | real estate | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 5,569 | $ | 19,748 | $ | 14,462 | $ | 887 | $ | 48 | $ | - | $ | 40,714 | |||||||||||||||
Loans collectively evaluated for impairment | 59,022 | 255,109 | 290,143 | 56,308 | 10,623 | - | 671,205 | ||||||||||||||||||||||
Total loans | $ | 64,591 | $ | 274,857 | $ | 304,605 | $ | 57,195 | $ | 10,671 | $ | - | $ | 711,919 | |||||||||||||||
Allowance for credit losses allocated to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 204 | $ | 285 | $ | 44 | $ | 245 | $ | 5 | $ | - | $ | 783 | |||||||||||||||
Loans collectively evaluated for impairment | 1,756 | 3,569 | 2,985 | 1,021 | 238 | 373 | 9,942 | ||||||||||||||||||||||
Total allowance for credit losses | $ | 1,960 | $ | 3,854 | $ | 3,029 | $ | 1,266 | $ | 243 | $ | 373 | $ | 10,725 | |||||||||||||||
Impaired Financing Receivables [Table Text Block] | The following tables provide information on impaired loans and any related allowance by loan class as of December 31, 2014 and 2013. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken. | ||||||||||||||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Unpaid | investment | investment | Average | Interest | |||||||||||||||||||||||||
principal | with no | with an | Related | recorded | income | ||||||||||||||||||||||||
(Dollars in thousands) | balance | allowance | allowance | allowance | investment | recognized | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Impaired nonaccrual loans: | |||||||||||||||||||||||||||||
Construction | $ | 9,277 | $ | 6,045 | $ | - | $ | - | $ | 7,739 | $ | - | |||||||||||||||||
Residential real estate | 4,664 | 1,053 | 2,982 | 799 | 3,322 | - | |||||||||||||||||||||||
Commercial real estate | 4,703 | 2,842 | 280 | 100 | 3,889 | - | |||||||||||||||||||||||
Commercial | 1,372 | 136 | 5 | 1 | 437 | - | |||||||||||||||||||||||
Consumer | 129 | 99 | 25 | 3 | 79 | - | |||||||||||||||||||||||
Total | 20,145 | 10,175 | 3,292 | 903 | 15,466 | - | |||||||||||||||||||||||
Impaired accruing TDRs: | |||||||||||||||||||||||||||||
Construction | 4,022 | 3,196 | 826 | 41 | 2,743 | 68 | |||||||||||||||||||||||
Residential real estate | 6,368 | 668 | 5,700 | 300 | 15,123 | 372 | |||||||||||||||||||||||
Commercial real estate | 6,237 | 4,774 | 1,463 | 29 | 6,574 | 254 | |||||||||||||||||||||||
Commercial | 47 | 47 | - | - | 55 | 2 | |||||||||||||||||||||||
Consumer | - | - | - | - | - | - | |||||||||||||||||||||||
Total | 16,674 | 8,685 | 7,989 | 370 | 24,495 | 696 | |||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Construction | 13,299 | 9,241 | 826 | 41 | 10,482 | 68 | |||||||||||||||||||||||
Residential real estate | 11,032 | 1,721 | 8,682 | 1,099 | 18,445 | 372 | |||||||||||||||||||||||
Commercial real estate | 10,940 | 7,616 | 1,743 | 129 | 10,463 | 254 | |||||||||||||||||||||||
Commercial | 1,419 | 183 | 5 | 1 | 492 | 2 | |||||||||||||||||||||||
Consumer | 129 | 99 | 25 | 3 | 79 | - | |||||||||||||||||||||||
Total | $ | 36,819 | $ | 18,860 | $ | 11,281 | $ | 1,273 | $ | 39,961 | $ | 696 | |||||||||||||||||
Recorded | Recorded | ||||||||||||||||||||||||||||
Unpaid | investment | investment | Average | Interest | |||||||||||||||||||||||||
principal | with no | with an | Related | recorded | income | ||||||||||||||||||||||||
(Dollars in thousands) | balance | allowance | allowance | allowance | investment | recognized | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Impaired nonaccrual loans: | |||||||||||||||||||||||||||||
Construction | $ | 6,787 | $ | 3,709 | $ | 240 | $ | 203 | $ | 7,270 | $ | - | |||||||||||||||||
Residential real estate | 7,692 | 3,862 | 1,304 | 225 | 10,240 | - | |||||||||||||||||||||||
Commercial real estate | 5,218 | 4,261 | 410 | 38 | 7,829 | - | |||||||||||||||||||||||
Commercial | 1,801 | 547 | 245 | 245 | 619 | - | |||||||||||||||||||||||
Consumer | 56 | 43 | 5 | 5 | 48 | - | |||||||||||||||||||||||
Total | 21,554 | 12,422 | 2,204 | 716 | 26,006 | - | |||||||||||||||||||||||
Impaired accruing TDRs: | |||||||||||||||||||||||||||||
Construction | 1,620 | 1,527 | 93 | 1 | 14,405 | - | |||||||||||||||||||||||
Residential real estate | 14,582 | 13,177 | 1,405 | 60 | 11,101 | - | |||||||||||||||||||||||
Commercial real estate | 9,791 | 9,006 | 785 | 6 | 13,308 | - | |||||||||||||||||||||||
Commercial | 95 | 95 | - | - | 105 | - | |||||||||||||||||||||||
Consumer | - | - | - | - | - | - | |||||||||||||||||||||||
Total | 26,088 | 23,805 | 2,283 | 67 | 38,919 | - | |||||||||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||||||||
Construction | 8,407 | 5,236 | 333 | 204 | 21,675 | - | |||||||||||||||||||||||
Residential real estate | 22,274 | 17,039 | 2,709 | 285 | 21,341 | - | |||||||||||||||||||||||
Commercial real estate | 15,009 | 13,267 | 1,195 | 44 | 21,137 | - | |||||||||||||||||||||||
Commercial | 1,896 | 642 | 245 | 245 | 724 | - | |||||||||||||||||||||||
Consumer | 56 | 43 | 5 | 5 | 48 | - | |||||||||||||||||||||||
Total | $ | 47,642 | $ | 36,227 | $ | 4,487 | $ | 783 | $ | 64,925 | $ | - | |||||||||||||||||
Schedule of Financing Receivables Accruing and Non Accrual of Troubled Debt restructurings [Table Text Block] | The following tables provide a roll-forward for troubled debt restructurings as of December 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||
12/31/13 | Reclassification/ | 12/31/14 | |||||||||||||||||||||||||||
TDR | New | Disbursements | Charge | Transfers | Loan | TDR | Related | ||||||||||||||||||||||
(Dollars in thousands) | Balance | TDRs | (Payments) | offs | In/(Out) | Sale | Payoffs | Balance | Allowance | ||||||||||||||||||||
For the year ended 12/31/2014 | |||||||||||||||||||||||||||||
Accruing TDRs | |||||||||||||||||||||||||||||
Construction | $ | 1,620 | $ | - | $ | -186 | $ | -538 | $ | 3,396 | $ | - | $ | -270 | $ | 4,022 | $ | 41 | |||||||||||
Residential Real Estate | 14,582 | - | -1,150 | -3,614 | -3,136 | - | -314 | 6,368 | 300 | ||||||||||||||||||||
Commercial Real Estate | 9,791 | - | -99 | -549 | -1,805 | - | -1,101 | 6,237 | 29 | ||||||||||||||||||||
Commercial | 95 | - | -24 | - | - | - | -24 | 47 | - | ||||||||||||||||||||
Consumer | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Total | $ | 26,088 | $ | - | $ | -1,459 | $ | -4,701 | $ | -1,545 | $ | - | $ | -1,709 | $ | 16,674 | $ | 370 | |||||||||||
Nonaccrual TDRs | |||||||||||||||||||||||||||||
Construction | $ | 3,561 | $ | - | $ | -12 | $ | -235 | $ | 7 | $ | - | $ | - | $ | 3,321 | $ | - | |||||||||||
Residential Real Estate | 1,884 | - | -50 | -203 | 1,874 | - | -123 | 3,382 | 724 | ||||||||||||||||||||
Commercial Real Estate | 842 | - | -95 | -65 | -336 | - | - | 346 | 100 | ||||||||||||||||||||
Commercial | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Consumer | 26 | - | -1 | - | - | - | - | 25 | 3 | ||||||||||||||||||||
Total | $ | 6,313 | $ | - | $ | -158 | $ | -503 | $ | 1,545 | $ | - | $ | -123 | $ | 7,074 | $ | 827 | |||||||||||
Total TDRs | $ | 32,401 | $ | - | $ | -1,617 | $ | -5,204 | $ | - | $ | - | $ | -1,832 | $ | 23,748 | $ | 1,197 | |||||||||||
12/31/12 | Reclassification/ | 12/31/13 | |||||||||||||||||||||||||||
TDR | New | Disbursements | Transfers | 9/30/13 | TDR | Related | |||||||||||||||||||||||
(Dollars in thousands) | Balance | TDRs | (Payments) | Charge offs | In/(Out) | Loan Sale | Payoffs | Balance | Allowance | ||||||||||||||||||||
For the year ended 12/31/2013 | |||||||||||||||||||||||||||||
Accruing TDRs | |||||||||||||||||||||||||||||
Construction | $ | 27,335 | $ | 95 | $ | 228 | $ | -13,557 | $ | -3,521 | $ | -7,908 | $ | -1,052 | $ | 1,620 | $ | 1 | |||||||||||
Residential Real Estate | 7,017 | 10,433 | -86 | -632 | -1,755 | -395 | - | 14,582 | 60 | ||||||||||||||||||||
Commercial Real Estate | 17,880 | 1,738 | -39 | -2,108 | -410 | -7,162 | -108 | 9,791 | 6 | ||||||||||||||||||||
Commercial | 121 | - | -26 | - | - | - | - | 95 | - | ||||||||||||||||||||
Consumer | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Total | $ | 52,353 | $ | 12,266 | $ | 77 | $ | -16,297 | $ | -5,686 | $ | -15,465 | $ | -1,160 | $ | 26,088 | $ | 67 | |||||||||||
Nonaccrual TDRs | |||||||||||||||||||||||||||||
Construction | $ | 1,448 | $ | - | $ | -64 | $ | -639 | $ | 3,521 | $ | -57 | $ | -648 | $ | 3,561 | $ | 25 | |||||||||||
Residential Real Estate | 2,169 | 258 | -90 | -1,253 | 1,755 | -759 | -196 | 1,884 | - | ||||||||||||||||||||
Commercial Real Estate | 2,970 | - | -281 | -866 | 410 | - | -1,391 | 842 | - | ||||||||||||||||||||
Commercial | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||
Consumer | 27 | - | -1 | - | - | - | - | 26 | 26 | ||||||||||||||||||||
Total | $ | 6,614 | $ | 258 | $ | -436 | $ | -2,758 | $ | 5,686 | $ | -816 | $ | -2,235 | $ | 6,313 | $ | 51 | |||||||||||
Total TDRs | $ | 58,967 | $ | 12,524 | $ | -359 | $ | -19,055 | $ | - | $ | -16,281 | $ | -3,395 | $ | 32,401 | $ | 118 | |||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following tables provide information on loans that were modified and considered TDRs during 2014 and 2013. | ||||||||||||||||||||||||||||
Premodification | Postmodification | ||||||||||||||||||||||||||||
outstanding | outstanding | ||||||||||||||||||||||||||||
Number of | recorded | recorded | Related | ||||||||||||||||||||||||||
(Dollars in thousands) | contracts | investment | investment | allowance | |||||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||||||||||||
Construction | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||
Residential real estate | - | - | - | - | |||||||||||||||||||||||||
Commercial real estate | - | - | - | - | |||||||||||||||||||||||||
Commercial | - | - | - | - | |||||||||||||||||||||||||
Consumer | - | - | - | - | |||||||||||||||||||||||||
Total | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||||||||||
Construction | 3 | $ | 218 | $ | 218 | $ | - | ||||||||||||||||||||||
Residential real estate | 7 | 12,485 | 12,494 | 38 | |||||||||||||||||||||||||
Commercial real estate | 4 | 2,212 | 2,211 | 82 | |||||||||||||||||||||||||
Commercial | - | - | - | - | |||||||||||||||||||||||||
Consumer | - | - | - | - | |||||||||||||||||||||||||
Total | 14 | $ | 14,915 | $ | 14,923 | $ | 120 | ||||||||||||||||||||||
Troubled Debt Restructurings that Defaulted on Financing Receivables [Table Text Block] | The following tables provide information on TDRs that defaulted during 2014 and 2013. Generally, a loan is considered in default when principal or interest is past due 90 days or more. | ||||||||||||||||||||||||||||
Number of | Recorded | Related | |||||||||||||||||||||||||||
(Dollars in thousands) | contracts | investment | allowance | ||||||||||||||||||||||||||
TDRs that subsequently defaulted: | |||||||||||||||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||||||||||||
Construction | - | $ | - | $ | - | ||||||||||||||||||||||||
Residential real estate | - | - | - | ||||||||||||||||||||||||||
Commercial real estate | - | - | - | ||||||||||||||||||||||||||
Commercial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
Total | - | $ | - | $ | - | ||||||||||||||||||||||||
TDRs that subsequently defaulted (1): | |||||||||||||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||||||||||
Construction | - | $ | - | $ | - | ||||||||||||||||||||||||
Residential real estate | 6 | 1,918 | - | ||||||||||||||||||||||||||
Commercial real estate | 2 | 2,151 | 74 | ||||||||||||||||||||||||||
Commercial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
Total | 8 | $ | 4,069 | $ | 74 | ||||||||||||||||||||||||
(1) These loans were classified as TDRs during 2012. | |||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables provide information on loan risk ratings as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
Special | |||||||||||||||||||||||||||||
(Dollars in thousands) | Pass/Performing | mention | Substandard | Doubtful | Total | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Construction | $ | 52,241 | $ | 5,643 | $ | 11,273 | $ | - | $ | 69,157 | |||||||||||||||||||
Residential real estate | 252,643 | 6,675 | 14,018 | - | 273,336 | ||||||||||||||||||||||||
Commercial real estate | 275,573 | 20,040 | 10,175 | - | 305,788 | ||||||||||||||||||||||||
Commercial | 50,583 | 1,885 | 114 | 89 | 52,671 | ||||||||||||||||||||||||
Consumer | 9,658 | 13 | 123 | - | 9,794 | ||||||||||||||||||||||||
Total | $ | 640,698 | $ | 34,256 | $ | 35,703 | $ | 89 | $ | 710,746 | |||||||||||||||||||
(Dollars in thousands) | Pass/Performing | Special | Substandard | Doubtful | Total | ||||||||||||||||||||||||
mention | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Construction | $ | 39,268 | $ | 15,884 | $ | 9,439 | $ | - | $ | 64,591 | |||||||||||||||||||
Residential real estate | 235,054 | 22,638 | 17,114 | 51 | 274,857 | ||||||||||||||||||||||||
Commercial real estate | 255,280 | 30,105 | 19,210 | 10 | 304,605 | ||||||||||||||||||||||||
Commercial | 52,032 | 3,691 | 972 | 500 | 57,195 | ||||||||||||||||||||||||
Consumer | 10,451 | 48 | 172 | - | 10,671 | ||||||||||||||||||||||||
Total | $ | 592,085 | $ | 72,366 | $ | 46,907 | $ | 561 | $ | 711,919 | |||||||||||||||||||
Past Due Financing Receivables [Table Text Block] | The following tables provide information on the aging of the loan portfolio as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90 days | Total past | Non- | Total | ||||||||||||||||||||||
days | days past | or more | due | accrual | |||||||||||||||||||||||||
past due | due | past due | |||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Construction | $ | 61,325 | $ | 1,786 | $ | - | $ | - | $ | 1,786 | $ | 6,046 | $ | 69,157 | |||||||||||||||
Residential real estate | 263,165 | 3,351 | 2,702 | 83 | 6,136 | 4,035 | 273,336 | ||||||||||||||||||||||
Commercial real estate | 301,695 | 459 | 513 | - | 972 | 3,121 | 305,788 | ||||||||||||||||||||||
Commercial | 52,352 | 47 | 131 | - | 178 | 141 | 52,671 | ||||||||||||||||||||||
Consumer | 9,619 | 11 | 37 | 4 | 52 | 123 | 9,794 | ||||||||||||||||||||||
Total | $ | 688,156 | $ | 5,654 | $ | 3,383 | $ | 87 | $ | 9,124 | $ | 13,466 | $ | 710,746 | |||||||||||||||
Percent of total loans | 96.8 | % | 0.8 | % | 0.5 | % | - | % | 1.3 | % | 1.9 | % | |||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90 days | Total past | Non-accrual | Total | ||||||||||||||||||||||
days | days | or more | due | ||||||||||||||||||||||||||
past due | past due | past due | |||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Construction | $ | 60,642 | $ | - | $ | - | $ | - | $ | - | $ | 3,949 | $ | 64,591 | |||||||||||||||
Residential real estate | 265,182 | 2,765 | 1,724 | 20 | 4,509 | 5,166 | 274,857 | ||||||||||||||||||||||
Commercial real estate | 299,295 | 639 | - | - | 639 | 4,671 | 304,605 | ||||||||||||||||||||||
Commercial | 55,576 | 330 | 247 | 250 | 827 | 792 | 57,195 | ||||||||||||||||||||||
Consumer | 10,469 | 23 | 131 | - | 154 | 48 | 10,671 | ||||||||||||||||||||||
Total | $ | 691,164 | $ | 3,757 | $ | 2,102 | $ | 270 | $ | 6,129 | $ | 14,626 | $ | 711,919 | |||||||||||||||
Percent of total loans | 97.1 | % | 0.5 | % | 0.3 | % | - | % | 0.8 | % | 2.1 | % | |||||||||||||||||
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 2014 and 2013. 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 | ||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,960 | $ | 3,854 | $ | 3,029 | $ | 1,266 | $ | 243 | $ | 373 | $ | 10,725 | |||||||||||||||
Charge-offs | -725 | -2,407 | -1,648 | -2,389 | -163 | - | -7,332 | ||||||||||||||||||||||
Recoveries | 149 | 376 | 58 | 341 | 28 | - | 952 | ||||||||||||||||||||||
Net charge-offs | -576 | -2,031 | -1,590 | -2,048 | -135 | - | -6,380 | ||||||||||||||||||||||
Provision | -81 | 1,011 | 940 | 1,230 | 121 | 129 | 3,350 | ||||||||||||||||||||||
Ending balance | $ | 1,303 | $ | 2,834 | $ | 2,379 | $ | 448 | $ | 229 | $ | 502 | $ | 7,695 | |||||||||||||||
(Dollars in thousands) | Construction | Residential | Commercial | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||
real estate | real estate | ||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 4,387 | $ | 5,194 | $ | 4,134 | $ | 1,682 | $ | 407 | $ | 187 | $ | 15,991 | |||||||||||||||
Charge-offs | -20,695 | -7,163 | -6,162 | -665 | -113 | - | -34,798 | ||||||||||||||||||||||
Recoveries | 161 | 545 | 161 | 839 | 42 | - | 1,748 | ||||||||||||||||||||||
Net charge-offs | -20,534 | -6,618 | -6,001 | 174 | -71 | - | -33,050 | ||||||||||||||||||||||
Provision | 18,107 | 5,278 | 4,896 | -590 | -93 | 186 | 27,784 | ||||||||||||||||||||||
Ending balance | $ | 1,960 | $ | 3,854 | $ | 3,029 | $ | 1,266 | $ | 243 | $ | 373 | $ | 10,725 | |||||||||||||||
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | The following table provides information on premises and equipment at December 31, 2014 and 2013. | |||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Land | $ | 5,818 | $ | 5,818 | ||||
Buildings and land improvements | 13,537 | 13,459 | ||||||
Furniture and equipment | 9,273 | 7,650 | ||||||
28,628 | 26,927 | |||||||
Accumulated depreciation | -12,353 | -11,729 | ||||||
Total | $ | 16,275 | $ | 15,198 | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum annual rental payments are approximately as follows: | |||||||
(Dollars in thousands) | ||||||||
2015 | $ | 625 | ||||||
2016 | 474 | |||||||
2017 | 352 | |||||||
2018 | 327 | |||||||
2019 | 331 | |||||||
Thereafter | 889 | |||||||
Total minimum lease payments | $ | 2,998 | ||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table provides information on the significant components of goodwill and other acquired intangible assets at December 31, 2014 and 2013. The Community Banking segment had goodwill of $2.5 million at the end of both 2014 and 2013. The Insurance segment had goodwill of $9.4 million and $9.9 million at the end of 2014 and 2013. The decrease of $500 thousand was the result of the sale of the assets and liabilities of Tri-State General Insurance, LTD on June 6, 2014. See Note 26 for further information regarding the Company’s business segments. | |||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Weighted | Weighted | |||||||||||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Remaining | Gross | Accumulated | Net | Remaining | |||||||||||||||||||||||||
Carrying | Impairment | Accumulated | Carrying | Life | Carrying | Impairment | Accumulated | Carrying | Life | |||||||||||||||||||||||
(Dollars in thousands) | Amount | Charges | Amortization | Amount | (in years) | Amount | Charges | Amortization | Amount | (in years) | ||||||||||||||||||||||
Goodwill | $ | 15,235 | $ | -2,637 | $ | -667 | $ | 11,931 | - | $ | 17,345 | $ | -4,224 | $ | -667 | $ | 12,454 | - | ||||||||||||||
Other intangible assets | ||||||||||||||||||||||||||||||||
Amortizable | ||||||||||||||||||||||||||||||||
Employment agreements | $ | 440 | $ | - | $ | -440 | $ | - | - | $ | 1,730 | $ | - | $ | -1,448 | $ | 282 | 1.7 | ||||||||||||||
Insurance expirations | 1,270 | - | -1,063 | 207 | 2.4 | 1,270 | - | -979 | 291 | 3.4 | ||||||||||||||||||||||
Customer relationships | 782 | -95 | -343 | 344 | 7 | 960 | -126 | -352 | 482 | 9.7 | ||||||||||||||||||||||
2,492 | -95 | -1,846 | 551 | 3,960 | -126 | -2,779 | 1,055 | |||||||||||||||||||||||||
Unamortizable | ||||||||||||||||||||||||||||||||
Carrier relationships | - | - | - | - | - | 1,300 | -45 | - | 1,255 | - | ||||||||||||||||||||||
Trade name | 780 | - | - | 780 | - | 1,210 | - | - | 1,210 | - | ||||||||||||||||||||||
780 | - | - | 780 | 2,510 | -45 | - | 2,465 | |||||||||||||||||||||||||
Total other intangible assets | $ | 3,272 | $ | -95 | $ | -1,846 | $ | 1,331 | $ | 6,470 | $ | -171 | $ | -2,779 | $ | 3,520 | ||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The following table provides information on current period and estimated future amortization expense for amortizable other intangible assets. | |||||||||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Expense | |||||||||||||||||||||||||||||||
Estimate for years ended December 31, | 2015 | 133 | ||||||||||||||||||||||||||||||
2016 | 133 | |||||||||||||||||||||||||||||||
2017 | 85 | |||||||||||||||||||||||||||||||
2018 | 42 | |||||||||||||||||||||||||||||||
2019 | 42 | |||||||||||||||||||||||||||||||
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Schedule of Other Assets [Table Text Block] | The Company had the following other assets at December 31, 2014 and 2013. | |||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Nonmarketable investment securities | $ | 1,586 | $ | 2,058 | ||||
Accrued interest receivable | 2,663 | 2,561 | ||||||
Deferred income taxes (1) | 15,744 | 19,090 | ||||||
Prepaid expenses | 750 | 700 | ||||||
Other assets | 6,419 | 6,673 | ||||||
Total | $ | 27,162 | $ | 31,082 | ||||
(1) See Note 15 for further discussion. | ||||||||
OTHER_LIABILITIES_Tables
OTHER LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities Disclosure [Abstract] | ||||||||
Schedule of Other Liabilities [Table Text Block] | The Company had the following other liabilities at December 31, 2014 and 2013. | |||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Accrued interest payable | $ | 172 | $ | 225 | ||||
Other accounts payable | 2,435 | 3,543 | ||||||
Deferred compensation liability | 1,503 | 1,505 | ||||||
Other liabilities | 2,011 | 1,944 | ||||||
Total | $ | 6,121 | $ | 7,217 | ||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deposits [Abstract] | ||||||||
Deposits [Table Text Block] | The following table provides information on the approximate maturities of total time deposits at December 31, 2014 and 2013. | |||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Due in one year or less | $ | 181,847 | $ | 184,836 | ||||
Due in one to three years | 101,811 | 121,403 | ||||||
Due in three to five years | 47,969 | 66,565 | ||||||
Total | $ | 331,627 | $ | 372,804 | ||||
SHORTTERM_BORROWINGS_Tables
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Schedule of Short-term Debt [Table Text Block] | The following table summarizes certain information on short-term borrowings for the years ended December 31, 2014 and 2013. | |||||||||||||
2014 | 2013 | |||||||||||||
(Dollars in thousands) | Amount | Rate | Amount | Rate | ||||||||||
Average for the Year | ||||||||||||||
Retail repurchase agreements | $ | 8,061 | 0.22 | % | $ | 10,980 | 0.24 | % | ||||||
At Year End | ||||||||||||||
Retail repurchase agreements | $ | 4,808 | 0.23 | % | $ | 10,140 | 0.23 | % | ||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 2014, 2013 and 2012. | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Stock-based compensation expense | $ | 87 | -1 | $ | 78 | $ | 209 | ||||||||||
Excess tax expense related to stock-based compensation | - | 26 | 106 | ||||||||||||||
December 31, | |||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Unrecognized stock-based compensation expense | $ | 59 | $ | 136 | $ | 143 | |||||||||||
Weighted average period unrecognized expense is expected to be recognized | 0.8 years | 1.7 years | 2.1 years | ||||||||||||||
-1 | On January 7, 2015 restricted stock and options were granted to executive officers in the amount of $62 thousand in restricted stock awards and $117 thousand in option awards. The restricted stock and options immediately vested 50% on the grant date of January 7, 2015, in which the amount of $90 thousand was accrued at December 31, 2014 and recorded as an other liability. On January 7, 2015 the liability for the restricted shares and the options was reclassified to additional paid-in-capital. The January 7, 2015 awarded grants are excluded from the tables above because including them would not properly reflect the outstanding shares at December 31, 2014. | ||||||||||||||||
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 two years ended December 31, 2014. | ||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||
Weighted Average | Weighted Average | Weighted Average | |||||||||||||||
Number | Grant Date | Number | Grant Date | Number | Grant Date | ||||||||||||
of Shares | Fair Value | of Shares | Fair Value | of Shares | Fair Value | ||||||||||||
Nonvested at beginning of year | 13,930 | $ | 8.33 | 6,548 | $ | 14.89 | 45,779 | $ | 13.2 | ||||||||
Granted (1) | 3,654 | 9.57 | 13,930 | 8.33 | - | - | |||||||||||
Vested | -3,333 | 8.93 | -6,548 | 14.89 | -39,231 | 12.92 | |||||||||||
Cancelled | - | - | - | - | - | - | |||||||||||
Nonvested at end of year | 14,251 | $ | 8.51 | 13,930 | $ | 8.33 | 6,548 | $ | 14.89 | ||||||||
-1 | On January 7, 2015 restricted stock and options were granted to executive officers in the amount of $62 thousand in restricted stock awards and $117 thousand in option awards. The restricted stock and options immediately vested 50% on the grant date of January 7, 2015, in which the amount of $90 thousand was accrued at December 31, 2014 and recorded as an other liability. On January 7, 2015 the liability for the restricted shares and the options was reclassified to additional paid-in-capital. The January 7, 2015 awarded grants are excluded from the tables above because including them would not properly reflect the outstanding shares at December 31, 2014. | ||||||||||||||||
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 two years ended December 31, 2014. | ||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||
Number | Weighted Average | Number | Weighted Average | Number | Weighted Average | ||||||||||||
of shares | Exercise Price | of shares | Exercise Price | of shares | Exercise Price | ||||||||||||
Outstanding at beginning of year | 40,662 | $ | 6.64 | 54,216 | $ | 6.64 | - | $ | 6.64 | ||||||||
Granted (1) | - | - | - | - | 54,216 | - | |||||||||||
Exercised | -3,593 | 6.64 | - | - | - | - | |||||||||||
Expired/Cancelled | -9,961 | 6.64 | -13,554 | 6.64 | - | - | |||||||||||
Outstanding at end of year | 27,108 | $ | 6.64 | 40,662 | $ | 6.64 | 54,216 | $ | 6.64 | ||||||||
Exercisable at end of year | - | $ | - | - | $ | - | - | $ | - | ||||||||
-1 | On January 7, 2015 restricted stock and options were granted to executive officers in the amount of $62 thousand in restricted stock awards and $117 thousand in option awards. The restricted stock and options immediately vested 50% on the grant date of January 7, 2015, in which the amount of $90 thousand was accrued at December 31, 2014 and recorded as an other liability. On January 7, 2015 the liability for the restricted shares and the options was reclassified to additional paid-in-capital. The January 7, 2015 awarded grants are excluded from the tables above because including them would not properly reflect the outstanding shares at December 31, 2014. | ||||||||||||||||
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 granted in 2012. | ||||||||||||||||
Dividend yield | 0.6 | % | |||||||||||||||
Expected volatility | 58.65 | % | |||||||||||||||
Risk-free interest rate | 1.69 | % | |||||||||||||||
Expected contract life (in years) | 5.83 | ||||||||||||||||
DEFERRED_COMPENSATION_Tables
DEFERRED COMPENSATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Deferred Compensation Arrangements [Abstract] | |||||||||||
Schedule of Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits by Title of Individual and Type of Deferred Compensation [Table Text Block] | The following table provides information on Shore Bancshares, Inc.’s contributions to the Plan for 2014, 2013 and 2012 and the related deferred compensation liability at December 31, 2014 and 2013. | ||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Deferred compensation contribution | $ | - | $ | 9 | $ | 20 | |||||
December 31, | |||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||
Deferred compensation liability | $ | 445 | $ | 404 | |||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | The following table includes information on the cash surrender value and the accrued benefit obligation included in other assets and other liabilities at December 31, 2014 and 2013. | ||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||
Cash surrender value | $ | 3,360 | $ | 3,256 | |||||||
Accrued benefit obligation | 1,058 | 1,101 | |||||||||
OTHER_EXPENSES_Tables
OTHER EXPENSES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Other Income and Expenses [Abstract] | |||||||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | The following table summarizes the Company’s other noninterest expenses for the years ended December 31: | ||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Advertising and marketing | $ | 428 | $ | 848 | $ | 338 | |||||
Legal and professional | 2,048 | 1,539 | 1,516 | ||||||||
Other customer expense | 396 | 414 | 372 | ||||||||
Other expense | 2,070 | 2,152 | 2,302 | ||||||||
Other loan expense | 894 | 934 | 1,086 | ||||||||
Software expense | 664 | 613 | 518 | ||||||||
Travel and entertainment expense | 288 | 287 | 265 | ||||||||
Trust professional fees | 686 | 616 | 542 | ||||||||
Total noninterest expense | $ | 7,474 | $ | 7,403 | $ | 6,939 | |||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The following table provides information on components of income tax expense for each of the three years ended December 31. | ||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Current tax expense (benefit): | |||||||||||
Federal | $ | - | $ | -459 | $ | -2,007 | |||||
State | 225 | 90 | 210 | ||||||||
225 | -369 | -1,797 | |||||||||
Deferred income tax expense (benefit): | |||||||||||
Federal | 2,516 | -4,592 | -3,110 | ||||||||
State | 320 | -1,540 | -1,658 | ||||||||
2,836 | -6,132 | -4,768 | |||||||||
Total income tax expense (benefit) | $ | 3,061 | $ | -6,501 | $ | -6,565 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following table provides a reconciliation of tax computed at the statutory federal tax rate of 34.0% to the actual tax expense (benefit) for each of the three years ended December 31. | ||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Tax at federal statutory rate | 34 | % | -34 | % | -34 | % | |||||
Tax effect of: | |||||||||||
Tax-exempt income | -0.9 | -0.4 | -0.6 | ||||||||
Other non-deductible expenses | 0.3 | 0.2 | 0.2 | ||||||||
State income taxes, net of federal benefit | 4.4 | -5.9 | -5.9 | ||||||||
Other | -0.1 | -0.2 | -0.2 | ||||||||
Actual income tax expense (benefit) rate | 37.7 | % | -40.3 | % | -40.5 | % | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The following table provides information on significant components of the Company’s deferred tax assets and liabilities as of December 31. | ||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||
Deferred tax assets: | |||||||||||
Allowance for credit losses | $ | 3,072 | $ | 4,298 | |||||||
Reserve for off-balance sheet commitments | 121 | 180 | |||||||||
Net operating loss carry forward | 13,265 | 14,430 | |||||||||
Write-downs of other real estate owned | 355 | 400 | |||||||||
Deferred income | 1,132 | 1,108 | |||||||||
Accrued expenses | 918 | 936 | |||||||||
Unrealized losses on available-for-sale securities | - | 296 | |||||||||
Other | 80 | 83 | |||||||||
Total deferred tax assets | 18,943 | 21,731 | |||||||||
Deferred tax liabilities: | |||||||||||
Depreciation | 372 | 463 | |||||||||
Purchase accounting adjustments | 1,751 | 1,305 | |||||||||
Deferred capital gain on branch sale | 425 | 438 | |||||||||
Unrealized gains on available-for-sale securities | 214 | - | |||||||||
Other | 437 | 435 | |||||||||
Total deferred tax liabilities | 3,199 | 2,641 | |||||||||
Net deferred tax assets | $ | 15,744 | $ | 19,090 | |||||||
EARNINGSLOSS_PER_COMMON_SHARE_
EARNINGS/(LOSS) PER COMMON SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
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. | ||||||||||
(In thousands, except per share data) | 2014 | 2013 | 2012 | ||||||||
Net income (loss) | $ | 5,051 | $ | -9,634 | $ | -9,638 | |||||
Weighted average shares outstanding – basic | 10,945 | 8,461 | 8,457 | ||||||||
Dilutive effect of common stock equivalents | 8 | - | - | ||||||||
Weighted average shares outstanding – diluted | 10,953 | 8,461 | 8,457 | ||||||||
Income (loss) per common share – basic | $ | 0.46 | $ | -1.14 | $ | -1.14 | |||||
Income (loss) per common share – diluted | $ | 0.46 | $ | -1.14 | $ | -1.14 | |||||
REGULATORY_CAPITAL_REQUIREMENT1
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||
Schedule Of Capital Amounts And Ratios [Table Text Block] | The following tables present the capital amounts and ratios for Shore Bancshares, Inc., Talbot Bank and CNB as of December 31, 2014 and 2013. | |||||||||||||||||||
Total | Net | Tier 1 | Total | |||||||||||||||||
Risk- | Risk- | Adjusted | Risk-Based | Risk-Based | Tier 1 | |||||||||||||||
December 31, 2014 | Tier 1 | Based | Weighted | Average | Capital | Capital | Leverage | |||||||||||||
(Dollars in thousands) | Capital | Capital | Assets | Total Assets | Ratio | Ratio | Ratio | |||||||||||||
Company | $ | 112,511 | $ | 120,510 | $ | 736,763 | $ | 1,075,674 | 15.27 | % | 16.36 | % | 10.46 | % | ||||||
Talbot Bank | 51,637 | 55,910 | 394,788 | 579,781 | 13.08 | 14.16 | 8.91 | |||||||||||||
CNB | 44,869 | 48,594 | 331,089 | 485,042 | 13.55 | 14.68 | 9.25 | |||||||||||||
Total | Net | Tier 1 | Total | |||||||||||||||||
Risk- | Risk- | Adjusted | Risk-Based | Risk-Based | Tier 1 | |||||||||||||||
December 31, 2013 | Tier 1 | Based | Weighted | Average | Capital | Capital | Leverage | |||||||||||||
(Dollars in thousands) | Capital | Capital | Assets | Total Assets | Ratio | Ratio | Ratio | |||||||||||||
Company | $ | 72,370 | $ | 81,341 | $ | 717,129 | $ | 1,028,957 | 10.09 | % | 11.34 | % | 7.03 | % | ||||||
Talbot Bank | 28,395 | 33,554 | 410,547 | 569,689 | 6.92 | 8.17 | 4.98 | |||||||||||||
CNB | 42,186 | 45,998 | 305,278 | 460,747 | 13.82 | 15.07 | 9.16 | |||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 2014 and 2013. | ||||||||||||
Accumulated net | Accumulated net | ||||||||||||
unrealized holding | unrealized holding | Accumulated | |||||||||||
gains (losses) on | gains (losses) on | other | |||||||||||
available for sale | cash flow hedging | comprehensive | |||||||||||
(Dollars in thousands) | securities | activities | income (loss) | ||||||||||
Balance, December 31, 2013 | $ | -437 | $ | - | $ | -437 | |||||||
Other comprehensive (loss) income | 767 | - | 767 | ||||||||||
Reclassification of (gains) losses recognized | -14 | - | -14 | ||||||||||
Balance, December 31, 2014 | $ | 316 | $ | - | $ | 316 | |||||||
Balance, December 31, 2012 | $ | 1,894 | $ | -1,186 | $ | 708 | |||||||
Other comprehensive income | -1,786 | 407 | -1,379 | ||||||||||
Reclassification of (gains) losses recognized | -545 | 779 | 234 | ||||||||||
Balance, December 31, 2013 | $ | -437 | $ | - | $ | -437 | |||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents the amounts reclassified out of each component of accumulated comprehensive income (loss) for the years ended December 31, 2014 and 2013. | ||||||||||||
Amount Reclassified from | |||||||||||||
Details about Accumulated Other | Accumulated Other | ||||||||||||
Comprehensive Income Components | Comprehensive Income | Affected Line Item in the Statement | |||||||||||
(dollars in thousands) | (Loss) | Where Net Income is Presented | |||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Realized gain on sale of investment securities | $ | 14 | $ | 545 | $ | 166 | Gain on sale of investment securities | ||||||
Total Reclassification for the Period | $ | 14 | $ | 545 | $ | 166 | |||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
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 December 31, 2014 and 2013. No assets were transferred from one hierarchy level to another during 2014 or 2013. | |||||||||||||
Significant Other | Significant | |||||||||||||
Quoted Prices | Observable Inputs | Unobservable Inputs | ||||||||||||
(Dollars in thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||
31-Dec-14 | ||||||||||||||
Securities available for sale: | ||||||||||||||
U.S. Treasury | $ | 5,215 | $ | 5,215 | $ | - | $ | - | ||||||
U.S. Government agencies | 74,960 | - | 74,960 | - | ||||||||||
Mortgage-backed | 155,303 | - | 155,303 | - | ||||||||||
Equity | 630 | - | 630 | - | ||||||||||
Total | $ | 236,108 | $ | 5,215 | $ | 230,893 | $ | - | ||||||
Significant Other | Significant | |||||||||||||
Quoted Prices | Observable Inputs | Unobservable | ||||||||||||
(Dollars in thousands) | Fair Value | (Level 1) | (Level 2) | Inputs (Level 3) | ||||||||||
31-Dec-13 | ||||||||||||||
Securities available for sale: | ||||||||||||||
U.S. Treasury | $ | 5,343 | $ | 5,343 | $ | - | $ | - | ||||||
U.S. Government agencies | 60,444 | - | 60,444 | - | ||||||||||
Mortgage-backed | 80,713 | - | 80,713 | - | ||||||||||
Equity | 601 | - | 601 | - | ||||||||||
Total | $ | 147,101 | $ | 5,343 | $ | 141,758 | $ | - | ||||||
Fair Value Assets Measured on Nonrecurring Basis [Table Text Block] | The tables below present the recorded amount of assets measured at fair value on a nonrecurring basis at December 31, 2014 and 2013. No assets were transferred from one hierarchy level to another during 2014 or 2013. | |||||||||||||
Significant Other | Significant | |||||||||||||
Quoted Prices | Observable Inputs | Unobservable Inputs | ||||||||||||
(Dollars in thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||
31-Dec-14 | ||||||||||||||
Impaired loans | ||||||||||||||
Construction | $ | 10,026 | $ | - | $ | 10,026 | $ | - | ||||||
Residential real estate | 9,304 | - | 9,304 | - | ||||||||||
Commercial real estate | 9,230 | - | 9,230 | - | ||||||||||
Commercial | 187 | - | 187 | - | ||||||||||
Consumer | 121 | - | 121 | - | ||||||||||
Total impaired loans | 28,868 | - | 28,868 | - | ||||||||||
Other real estate owned | 3,691 | - | 3,691 | - | ||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 32,559 | $ | - | $ | 32,559 | $ | - | ||||||
Significant Other | Significant | |||||||||||||
Quoted Prices | Observable Inputs | Unobservable | ||||||||||||
(Dollars in thousands) | Fair Value | (Level 1) | (Level 2) | Inputs (Level 3) | ||||||||||
31-Dec-13 | ||||||||||||||
Impaired loans | ||||||||||||||
Construction | $ | 5,365 | $ | - | $ | 5,365 | $ | - | ||||||
Residential real estate | 19,463 | - | 19,463 | - | ||||||||||
Commercial real estate | 14,418 | - | 14,418 | - | ||||||||||
Commercial | 642 | - | 642 | - | ||||||||||
Consumer | 43 | - | 43 | - | ||||||||||
Total impaired loans | 39,931 | - | 39,931 | - | ||||||||||
Loans held for sale | 3,521 | - | 3,521 | - | ||||||||||
Other real estate owned | 3,779 | - | 3,779 | - | ||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 47,231 | $ | - | $ | 47,231 | $ | - | ||||||
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. | |||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||
Estimated | Estimated | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
(Dollars in thousands) | Amount | Value | Amount | Value | ||||||||||
Financial assets | ||||||||||||||
Level 2 inputs | ||||||||||||||
Cash and cash equivalents | $ | 96,223 | $ | 96,223 | $ | 131,090 | $ | 131,090 | ||||||
Investment securities held to maturity | 4,630 | 4,694 | 5,185 | 5,062 | ||||||||||
Loans, net | 703,051 | 724,771 | 701,194 | 721,688 | ||||||||||
Financial liabilities | ||||||||||||||
Level 2 inputs | ||||||||||||||
Deposits | $ | 949,004 | $ | 948,605 | $ | 933,468 | $ | 934,943 | ||||||
Short-term borrowings | 4,808 | 4,808 | 10,140 | 10,140 | ||||||||||
FINANCIAL_INSTRUMENTS_WITH_OFF1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | ||||||||
Schedule of Commitments Outstanding [Table Text Block] | The following table provides information on commitments outstanding as of December 31, 2014 and 2013. | |||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Commitments to extend credit | $ | 127,080 | $ | 116,596 | ||||
Letters of credit | 7,347 | 10,477 | ||||||
Total | $ | 134,427 | $ | 127,073 | ||||
PARENT_COMPANY_FINANCIAL_INFOR1
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||
Condensed Financial Statements [Table Text Block] | The following tables provide condensed financial information for Shore Bancshares, Inc. (Parent Company Only). | ||||||||||
Condensed Balance Sheets | |||||||||||
December 31, | |||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||
Assets | |||||||||||
Cash | $ | 2,101 | $ | 987 | |||||||
Investment securities | 9,723 | - | |||||||||
Investment in subsidiaries | 126,857 | 102,815 | |||||||||
Premises and equipment, net | 3,158 | 2,726 | |||||||||
Other assets | 1,329 | 1,284 | |||||||||
Total assets | $ | 143,168 | $ | 107,812 | |||||||
Liabilities | |||||||||||
Accrued interest payable | $ | 1 | $ | - | |||||||
Deferred tax liability | - | 1,628 | |||||||||
Other liabilities | 855 | 542 | |||||||||
Long-term debt | 1,843 | 2,343 | |||||||||
Total liabilities | 2,699 | 4,513 | |||||||||
Stockholders’ equity | |||||||||||
Common stock | 126 | 85 | |||||||||
Additional paid in capital | 63,532 | 32,207 | |||||||||
Retained earnings | 76,495 | 71,444 | |||||||||
Accumulated other comprehensive income (loss) | 316 | -437 | |||||||||
Total stockholders’ equity | 140,469 | 103,299 | |||||||||
Total liabilities and stockholders’ equity | $ | 143,168 | $ | 107,812 | |||||||
Condensed Income Statement [Table Text Block] | Condensed Statements of Operations | ||||||||||
For the Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Income | |||||||||||
Dividends from subsidiaries | $ | 200 | $ | 2,163 | $ | 3,154 | |||||
Management and other fees from subsidiaries | 7,933 | 6,226 | 5,692 | ||||||||
Other income | 110 | 31 | 180 | ||||||||
Total income | 8,243 | 8,420 | 9,026 | ||||||||
Expenses | |||||||||||
Interest expense | 80 | 88 | 107 | ||||||||
Salaries and employee benefits | 5,321 | 4,447 | 4,188 | ||||||||
Occupancy and equipment expense | 541 | 508 | 463 | ||||||||
Other operating expenses | 2,387 | 1,853 | 1,529 | ||||||||
Total expenses | 8,329 | 6,896 | 6,287 | ||||||||
(Loss) income before income tax benefit and equity in undistributed net income (loss) of subsidiaries | -86 | 1,524 | 2,739 | ||||||||
Income tax benefit | -107 | -61 | -58 | ||||||||
Income before equity in undistributed net income (loss) of subsidiaries | 21 | 1,585 | 2,797 | ||||||||
Equity in undistributed net income (loss) of subsidiaries | 5,030 | -11,219 | -12,435 | ||||||||
Net income (loss) | $ | 5,051 | $ | -9,634 | $ | -9,638 | |||||
Condensed Cash Flow Statement [Table Text Block] | Condensed Statements of Cash Flows | ||||||||||
For the Years Ended December 31, | |||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 5,051 | $ | -9,634 | $ | -9,638 | |||||
Adjustments to reconcile net (income) loss to cash provided by operating activities: | |||||||||||
Equity in undistributed net (income) loss of subsidiaries | -5,030 | 11,219 | 12,435 | ||||||||
Depreciation and amortization | 379 | 386 | 367 | ||||||||
Stock-based compensation expense | 87 | 78 | 209 | ||||||||
Excess tax benefit from stock-based arrangements | - | -26 | -106 | ||||||||
Net (increase) decrease in other assets | -121 | 128 | -246 | ||||||||
Net increase (decrease) in other liabilities | 271 | -53 | -423 | ||||||||
Net cash provided by operating activities | 637 | 2,098 | 2,598 | ||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sale of securities | 442 | - | - | ||||||||
Purchases of securities | -10,112 | - | - | ||||||||
Purchases of premises and equipment | -632 | -307 | -108 | ||||||||
Investment in subsidiaries | -20,000 | -1,650 | -2,000 | ||||||||
Net cash used in investing activities | -30,302 | -1,957 | -2,108 | ||||||||
Cash flows from financing activities: | |||||||||||
Repayment of long-term debt | -500 | - | -1,007 | ||||||||
Excess tax benefit from stock-based arrangements | - | 26 | 106 | ||||||||
Proceeds from issuance of common stock | 31,279 | - | - | ||||||||
Common stock dividends paid | - | - | -85 | ||||||||
Net cash provided by (used in) financing activities | 30,779 | 26 | -986 | ||||||||
Net increase (decrease) in cash and cash equivalents | 1,114 | 167 | -496 | ||||||||
Cash and cash equivalents at beginning of year | 987 | 820 | 1,316 | ||||||||
Cash and cash equivalents at end of year | $ | 2,101 | $ | 987 | $ | 820 | |||||
QUARTERLY_FINANCIAL_RESULTS_un1
QUARTERLY FINANCIAL RESULTS (unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | The following table provides a summary of selected consolidated quarterly financial data for the two years ended December 31, 2014. | |||||||||||||
(In thousands, except per share data) | First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
2014 | ||||||||||||||
Interest income | $ | 9,455 | $ | 9,523 | $ | 9,686 | $ | 9,625 | ||||||
Net interest income | 8,323 | 8,447 | 8,636 | 8,636 | ||||||||||
Provision for credit losses | 975 | 950 | 775 | 650 | ||||||||||
Income (loss) before income taxes | 2,021 | 2,108 | 2,036 | 1,947 | ||||||||||
Net income (loss) | 1,258 | 1,305 | 1,262 | 1,226 | ||||||||||
Basic earnings (loss) per common share | $ | 0.15 | $ | 0.13 | $ | 0.1 | $ | 0.1 | ||||||
Diluted earnings (loss) per common share | $ | 0.15 | $ | 0.13 | $ | 0.1 | $ | 0.1 | ||||||
2013 | ||||||||||||||
Interest income | $ | 10,607 | $ | 10,755 | $ | 10,182 | $ | 9,807 | ||||||
Net interest income | 8,477 | 9,001 | 8,828 | 8,570 | ||||||||||
Provision for credit losses | 2,150 | 2,700 | 22,460 | 474 | ||||||||||
(Loss) income before income taxes | 326 | 504 | -18,808 | 1,843 | ||||||||||
Net (loss) income | 222 | 361 | -11,392 | 1,175 | ||||||||||
Basic (loss) earnings per common share | $ | 0.03 | $ | 0.04 | $ | -1.35 | $ | 0.14 | ||||||
Diluted (loss) earnings per common share | $ | 0.03 | $ | 0.04 | $ | -1.35 | $ | 0.14 | ||||||
2012 | ||||||||||||||
Interest income | $ | 11,856 | $ | 11,692 | $ | 11,393 | $ | 10,960 | ||||||
Net interest income | 9,195 | 9,033 | 8,730 | 8,381 | ||||||||||
Provision for credit losses | 8,370 | 3,525 | 6,200 | 9,650 | ||||||||||
(Loss) income before income taxes | -5,099 | 422 | -3,178 | -8,348 | ||||||||||
Net (loss) income | -3,036 | 293 | -1,821 | -5,074 | ||||||||||
Basic (loss) earnings per common share | $ | -0.36 | $ | 0.03 | $ | -0.22 | $ | -0.6 | ||||||
Diluted (loss) earnings per common share | $ | -0.36 | $ | 0.03 | $ | -0.22 | $ | -0.6 | ||||||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Selected financial information by business segments is included in the following table. | |||||||||||||
Community | Insurance Products | Parent | ||||||||||||
(Dollars in thousands) | Banking | and Services | Company | Total | ||||||||||
2014 | ||||||||||||||
Interest income | $ | 38,202 | $ | - | $ | 87 | $ | 38,289 | ||||||
Interest expense | -4,247 | - | - | -4,247 | ||||||||||
Provision for credit losses | -3,350 | - | - | -3,350 | ||||||||||
Noninterest income | 6,482 | 10,305 | -6 | 16,781 | ||||||||||
Noninterest expense | -22,776 | -8,527 | -8,058 | -39,361 | ||||||||||
Net intersegment (expense) income | -7,010 | -680 | 7,690 | - | ||||||||||
(Loss) income before income taxes | 7,301 | 1,098 | -287 | 8,112 | ||||||||||
Income tax benefit (expense) | -2,755 | -414 | 108 | -3,061 | ||||||||||
Net (loss) income | $ | 4,546 | $ | 684 | $ | -179 | $ | 5,051 | ||||||
Total assets | $ | 1,074,638 | $ | 10,824 | $ | 14,940 | $ | 1,100,402 | ||||||
2013 | ||||||||||||||
Interest income | $ | 41,310 | $ | 41 | $ | - | $ | 41,351 | ||||||
Interest expense | -6,475 | - | - | -6,475 | ||||||||||
Provision for credit losses | -27,784 | - | - | -27,784 | ||||||||||
Noninterest income | 5,716 | 11,737 | 6 | 17,459 | ||||||||||
Noninterest expense | -23,676 | -10,350 | -6,660 | -40,686 | ||||||||||
Net intersegment (expense) income | -5,359 | -655 | 6,014 | - | ||||||||||
(Loss) income before income taxes | -16,268 | 773 | -640 | -16,135 | ||||||||||
Income tax benefit (expense) | 6,556 | -313 | 258 | 6,501 | ||||||||||
Net (loss) income | $ | -9,712 | $ | 460 | $ | -382 | $ | -9,634 | ||||||
Total assets | $ | 1,036,098 | $ | 15,759 | $ | 2,267 | $ | 1,054,124 | ||||||
2012 | ||||||||||||||
Interest income | $ | 45,822 | $ | 79 | $ | - | $ | 45,901 | ||||||
Interest expense | -10,546 | - | -16 | -10,562 | ||||||||||
Provision for credit losses | -27,745 | - | - | -27,745 | ||||||||||
Noninterest income | 5,197 | 10,422 | 139 | 15,758 | ||||||||||
Noninterest expense | -23,702 | -9,820 | -6,033 | -39,555 | ||||||||||
Net intersegment (expense) income | -4,993 | -503 | 5,496 | - | ||||||||||
(Loss) income before income taxes | -15,967 | 178 | -414 | -16,203 | ||||||||||
Income tax benefit (expense) | 6,467 | -70 | 168 | 6,565 | ||||||||||
Net (loss) income | $ | -9,500 | $ | 108 | $ | -246 | $ | -9,638 | ||||||
Total assets | $ | 1,166,468 | $ | 16,809 | $ | 2,530 | $ | 1,185,807 | ||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 28, 2013 | |
Significant Accounting Policies [Line Items] | ||||
Advertising Expense | $428,000 | $848,000 | $338,000 | |
Excess Capital to Risk Weighted Assets | 12.00% | |||
Tier One Leverage Capital to Average Assets | 10.46% | 7.03% | ||
Excess Tier One Leverage Capital to Average Assets | 8.00% | |||
Capital to Risk Weighted Assets | 16.36% | 11.34% | ||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 21 years | |||
Furniture and Fixtures [Member] | Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Furniture and Fixtures [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Computer Equipment [Member] | Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Computer Equipment [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Building and Building Improvements [Member] | Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Building and Building Improvements [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 40 years | |||
Land Improvements [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 15 years | |||
Talbot Bank [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Financing Receivable, Gross | 45,000,000 | |||
Proceeds from Sale of Notes Receivable | 25,200,000 | |||
Other Real Estate, Additions | 1,700,000 | |||
Cash, FDIC Insured Amount | 750,000 | |||
Excess Capital to Risk Weighted Assets | 12.00% | |||
Tier One Leverage Capital to Average Assets | 8.91% | 4.98% | ||
Excess Tier One Leverage Capital to Average Assets | 8.00% | |||
Capital to Risk Weighted Assets | 14.16% | 8.17% | ||
Talbot Bank [Member] | Troubled Debt Restructuring [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Financing Receivable, Gross | 30,400,000 | |||
Talbot Bank [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Tier One Leverage Capital to Average Assets | 8.91% | |||
Capital to Risk Weighted Assets | 14.16% | |||
Talbot Bank [Member] | Nonaccrual Loans [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Financing Receivable, Gross | 11,100,000 | |||
Talbot Bank [Member] | Performing Financing Receivable [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Financing Receivable, Gross | $1,800,000 |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
ScheduleOfAvailableForSaleSecuritiesLineItems | ||
Available-for-sale securities, Amortized Cost | $235,579 | $147,835 |
Available-for-sale securities, Gross Unrealized Gains | 1,328 | 583 |
Available-for-sale securities, Gross Unrealized Losses | 799 | 1,317 |
Available-for-sale securities, Estimated Fair Value | 236,108 | 147,101 |
Held-to-maturity securities, Amortized Cost | 4,630 | 5,185 |
Held-to-maturity securities, Gross Unrealized Gains | 147 | 99 |
Held-to-maturity securities, Gross Unrealized Losses | 83 | 222 |
Held-to-maturity securities, Estimated Fair Value | 4,694 | 5,062 |
US Treasury Securities [Member] | ||
ScheduleOfAvailableForSaleSecuritiesLineItems | ||
Available-for-sale securities, Amortized Cost | 5,210 | 5,342 |
Available-for-sale securities, Gross Unrealized Gains | 5 | 1 |
Available-for-sale securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale securities, Estimated Fair Value | 5,215 | 5,343 |
US Government Corporations and Agencies Securities [Member] | ||
ScheduleOfAvailableForSaleSecuritiesLineItems | ||
Available-for-sale securities, Amortized Cost | 75,220 | 60,754 |
Available-for-sale securities, Gross Unrealized Gains | 87 | 62 |
Available-for-sale securities, Gross Unrealized Losses | 347 | 372 |
Available-for-sale securities, Estimated Fair Value | 74,960 | 60,444 |
Held-to-maturity securities, Amortized Cost | 2,791 | 2,975 |
Held-to-maturity securities, Gross Unrealized Gains | 0 | 0 |
Held-to-maturity securities, Gross Unrealized Losses | 83 | 222 |
Held-to-maturity securities, Estimated Fair Value | 2,708 | 2,753 |
US States and Political Subdivisions Debt Securities [Member] | ||
ScheduleOfAvailableForSaleSecuritiesLineItems | ||
Held-to-maturity securities, Amortized Cost | 1,839 | 2,210 |
Held-to-maturity securities, Gross Unrealized Gains | 147 | 99 |
Held-to-maturity securities, Gross Unrealized Losses | 0 | 0 |
Held-to-maturity securities, Estimated Fair Value | 1,986 | 2,309 |
Collateralized Mortgage Backed Securities [Member] | ||
ScheduleOfAvailableForSaleSecuritiesLineItems | ||
Available-for-sale securities, Amortized Cost | 154,525 | 81,130 |
Available-for-sale securities, Gross Unrealized Gains | 1,230 | 520 |
Available-for-sale securities, Gross Unrealized Losses | 452 | 937 |
Available-for-sale securities, Estimated Fair Value | 155,303 | 80,713 |
Equity Securities [Member] | ||
ScheduleOfAvailableForSaleSecuritiesLineItems | ||
Available-for-sale securities, Amortized Cost | 624 | 609 |
Available-for-sale securities, Gross Unrealized Gains | 6 | 0 |
Available-for-sale securities, Gross Unrealized Losses | 0 | 8 |
Available-for-sale securities, Estimated Fair Value | 630 | 601 |
Held-to-maturity securities, Amortized Cost | 0 | |
Held-to-maturity securities, Estimated Fair Value | $0 |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $54,507 | $62,299 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 182 | 796 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 34,412 | 19,121 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 617 | 521 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 88,919 | 81,420 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 799 | 1,317 |
US Government Corporations and Agencies Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 41,574 | 33,004 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 138 | 372 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 6,954 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 209 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 48,528 | 33,004 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 347 | 372 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 2,753 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 0 | 222 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 2,708 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 83 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 2,708 | 2,753 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Loss, Unrealized Losses | 83 | 222 |
Collateralized Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 12,933 | 28,694 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 44 | 416 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 26,828 | 19,121 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 408 | 521 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 39,761 | 47,815 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 452 | 937 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 601 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 0 | 8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 630 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 630 | 601 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | $0 | $8 |
INVESTMENT_SECURITIES_Details_1
INVESTMENT SECURITIES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost, Due in one year or less | $2,001 | |
Available for sale, Amortized Cost, Due after one year through five years | 75,099 | |
Available for sale, Amortized Cost, Due after five years through ten years | 11,361 | |
Available for sale, Amortized Cost, Due after ten years | 146,494 | |
Available for sale, Amortized Cost, Debt maturities | 234,955 | |
Available-for-sale securities, Amortized Cost | 235,579 | 147,835 |
Available for sale, Estimated Fair Value, Due in one year or less | 2,002 | |
Available for sale, Estimated Fair Value, Due after one year through five years | 74,981 | |
Available for sale, Estimated Fair Value, Due after five years through ten years | 11,405 | |
Available for sale, Estimated Fair Value, Due after ten years | 147,090 | |
Available for sale, Estimated Fair Value, Debt maturities | 235,478 | |
Available for sale, Estimated Fair Value, Total | 236,108 | 147,101 |
Held to maturity securities, Amortized Cost, Due in one year or less | 221 | |
Held to maturity securities, Amortized Cost, Due after one year through five years | 712 | |
Held to maturity securities, Amortized Cost, Due after five years through ten years | 403 | |
Held to maturity securities, Amortized Cost, Due after ten years | 3,294 | |
Held to maturity securities, Amortized Cost, Debt maturities | 4,630 | |
Held to maturity securities, Amortized Cost, Total | 4,630 | 5,185 |
Held to maturity securities, Estimated Fair Value, Due in one year or less | 223 | |
Held to maturity securities, Estimated Fair Value, Due after one year through five years | 764 | |
Held to maturity securities, Estimated Fair Value, Due after five years through ten years | 459 | |
Held to maturity securities, Estimated Fair Value, Due after ten years | 3,248 | |
Held to maturity securities, Estimated Fair Value, Debt maturities | 4,694 | |
Held-to-maturity securities, Estimated Fair Value, Total | 4,694 | 5,062 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized Cost | 624 | 609 |
Available for sale, Estimated Fair Value, Total | 630 | 601 |
Held to maturity securities, Amortized Cost, Total | 0 | |
Held-to-maturity securities, Estimated Fair Value, Total | $0 |
INVESTMENT_SECURITIES_Details_2
INVESTMENT SECURITIES (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost, Total | $235,579 | $147,835 |
Securities Pledged as Collateral [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost, Total | 115,162 | 101,070 |
Available-for-sale, Pledged available-for-sale securities, Estimated Fair Value | $115,458 | $100,507 |
INVESTMENT_SECURITIES_Details_3
INVESTMENT SECURITIES (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from Sale and Maturity of Marketable Securities | $988 | $40,400 | $6,300 |
Gain on Sale of Investments | 23 | 913 | 278 |
Description Of States Political Subdivisions With Carrying Value | There were no obligations of states or political subdivisions with carrying values, as to any issuer, exceeding 10% of stockholders equity at December 31, 2014 or 2013. | ||
Loss on Sale of Investments | $0 | $0 | $0 |
LOANS_AND_ALLOWANCE_FOR_CREDIT2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Construction | $69,157 | $64,591 |
Residential real estate | 273,336 | 274,857 |
Commercial real estate | 305,788 | 304,605 |
Commercial | 52,671 | 57,195 |
Consumer | 9,794 | 10,671 |
Total loans | 710,746 | 711,919 |
Allowance for credit losses | -7,695 | -10,725 |
Loans, net | $703,051 | $701,194 |
LOANS_AND_ALLOWANCE_FOR_CREDIT3
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | $30,141 | $40,714 |
Loans collectively evaluated for impairment | 680,605 | 671,205 |
Total loans | 710,746 | 711,919 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 1,273 | 783 |
Loans collectively evaluated for impairment | 6,422 | 9,942 |
Total allowance for credit losses | 7,695 | 10,725 |
Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 10,067 | 5,569 |
Loans collectively evaluated for impairment | 59,090 | 59,022 |
Total loans | 69,157 | 64,591 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 41 | 204 |
Loans collectively evaluated for impairment | 1,262 | 1,756 |
Total allowance for credit losses | 1,303 | 1,960 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 10,403 | 19,748 |
Loans collectively evaluated for impairment | 262,933 | 255,109 |
Total loans | 273,336 | 274,857 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 1,099 | 285 |
Loans collectively evaluated for impairment | 1,735 | 3,569 |
Total allowance for credit losses | 2,834 | 3,854 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 9,359 | 14,462 |
Loans collectively evaluated for impairment | 296,429 | 290,143 |
Total loans | 305,788 | 304,605 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 129 | 44 |
Loans collectively evaluated for impairment | 2,250 | 2,985 |
Total allowance for credit losses | 2,379 | 3,029 |
Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 188 | 887 |
Loans collectively evaluated for impairment | 52,483 | 56,308 |
Total loans | 52,671 | 57,195 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 1 | 245 |
Loans collectively evaluated for impairment | 447 | 1,021 |
Total allowance for credit losses | 448 | 1,266 |
Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 124 | 48 |
Loans collectively evaluated for impairment | 9,670 | 10,623 |
Total loans | 9,794 | 10,671 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 3 | 5 |
Loans collectively evaluated for impairment | 226 | 238 |
Total allowance for credit losses | 229 | 243 |
Unallocated Financing Receivables [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
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 | 502 | 373 |
Total allowance for credit losses | $502 | $373 |
LOANS_AND_ALLOWANCE_FOR_CREDIT4
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Impaired Nonaccrual Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | $20,145 | $21,554 |
Recorded investment with no allowance | 10,175 | 12,422 |
Recorded investment with an allowance | 3,292 | 2,204 |
Related allowance | 903 | 716 |
Average recorded investment | 15,466 | 26,006 |
Interest income recognized | 0 | 0 |
Impaired Nonaccrual Loans [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 9,277 | 6,787 |
Recorded investment with no allowance | 6,045 | 3,709 |
Recorded investment with an allowance | 0 | 240 |
Related allowance | 0 | 203 |
Average recorded investment | 7,739 | 7,270 |
Interest income recognized | 0 | 0 |
Impaired Nonaccrual Loans [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 4,664 | 7,692 |
Recorded investment with no allowance | 1,053 | 3,862 |
Recorded investment with an allowance | 2,982 | 1,304 |
Related allowance | 799 | 225 |
Average recorded investment | 3,322 | 10,240 |
Interest income recognized | 0 | 0 |
Impaired Nonaccrual Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 4,703 | 5,218 |
Recorded investment with no allowance | 2,842 | 4,261 |
Recorded investment with an allowance | 280 | 410 |
Related allowance | 100 | 38 |
Average recorded investment | 3,889 | 7,829 |
Interest income recognized | 0 | 0 |
Impaired Nonaccrual Loans [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 1,372 | 1,801 |
Recorded investment with no allowance | 136 | 547 |
Recorded investment with an allowance | 5 | 245 |
Related allowance | 1 | 245 |
Average recorded investment | 437 | 619 |
Interest income recognized | 0 | 0 |
Impaired Nonaccrual Loans [Member] | Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 129 | 56 |
Recorded investment with no allowance | 99 | 43 |
Recorded investment with an allowance | 25 | 5 |
Related allowance | 3 | 5 |
Average recorded investment | 79 | 48 |
Interest income recognized | 0 | 0 |
Impaired Accruing TDRs [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 16,674 | 26,088 |
Recorded investment with no allowance | 8,685 | 23,805 |
Recorded investment with an allowance | 7,989 | 2,283 |
Related allowance | 370 | 67 |
Average recorded investment | 24,495 | 38,919 |
Interest income recognized | 696 | 0 |
Impaired Accruing TDRs [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 4,022 | 1,620 |
Recorded investment with no allowance | 3,196 | 1,527 |
Recorded investment with an allowance | 826 | 93 |
Related allowance | 41 | 1 |
Average recorded investment | 2,743 | 14,405 |
Interest income recognized | 68 | 0 |
Impaired Accruing TDRs [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 6,368 | 14,582 |
Recorded investment with no allowance | 668 | 13,177 |
Recorded investment with an allowance | 5,700 | 1,405 |
Related allowance | 300 | 60 |
Average recorded investment | 15,123 | 11,101 |
Interest income recognized | 372 | 0 |
Impaired Accruing TDRs [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 6,237 | 9,791 |
Recorded investment with no allowance | 4,774 | 9,006 |
Recorded investment with an allowance | 1,463 | 785 |
Related allowance | 29 | 6 |
Average recorded investment | 6,574 | 13,308 |
Interest income recognized | 254 | 0 |
Impaired Accruing TDRs [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 47 | 95 |
Recorded investment with no allowance | 47 | 95 |
Recorded investment with an allowance | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 55 | 105 |
Interest income recognized | 2 | 0 |
Impaired Accruing TDRs [Member] | Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 0 | 0 |
Recorded investment with no allowance | 0 | 0 |
Recorded investment with an allowance | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 0 | 0 |
Interest income recognized | 0 | 0 |
Total Impired Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 36,819 | 47,642 |
Recorded investment with no allowance | 18,860 | 36,227 |
Recorded investment with an allowance | 11,281 | 4,487 |
Related allowance | 1,273 | 783 |
Average recorded investment | 39,961 | 64,925 |
Interest income recognized | 696 | 0 |
Total Impired Loans [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 13,299 | 8,407 |
Recorded investment with no allowance | 9,241 | 5,236 |
Recorded investment with an allowance | 826 | 333 |
Related allowance | 41 | 204 |
Average recorded investment | 10,482 | 21,675 |
Interest income recognized | 68 | 0 |
Total Impired Loans [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 11,032 | 22,274 |
Recorded investment with no allowance | 1,721 | 17,039 |
Recorded investment with an allowance | 8,682 | 2,709 |
Related allowance | 1,099 | 285 |
Average recorded investment | 18,445 | 21,341 |
Interest income recognized | 372 | 0 |
Total Impired Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 10,940 | 15,009 |
Recorded investment with no allowance | 7,616 | 13,267 |
Recorded investment with an allowance | 1,743 | 1,195 |
Related allowance | 129 | 44 |
Average recorded investment | 10,463 | 21,137 |
Interest income recognized | 254 | 0 |
Total Impired Loans [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 1,419 | 1,896 |
Recorded investment with no allowance | 183 | 642 |
Recorded investment with an allowance | 5 | 245 |
Related allowance | 1 | 245 |
Average recorded investment | 492 | 724 |
Interest income recognized | 2 | 0 |
Total Impired Loans [Member] | Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 129 | 56 |
Recorded investment with no allowance | 99 | 43 |
Recorded investment with an allowance | 25 | 5 |
Related allowance | 3 | 5 |
Average recorded investment | 79 | 48 |
Interest income recognized | $0 | $0 |
LOANS_AND_ALLOWANCE_FOR_CREDIT5
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | $7,695 | $10,725 |
Troubled Debt Restructuring [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 32,401 | 58,967 |
New TDRs | 0 | 12,524 |
Disbursements (Payments) | -1,617 | -359 |
Charge Offs | -5,204 | -19,055 |
Reclassification/Transfers In(Out) | 0 | 0 |
Loan Sale | 0 | -16,281 |
Payoffs | -1,832 | -3,395 |
TDR Balance | 23,748 | 32,401 |
Related allowance | 1,197 | 118 |
Accruing Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 26,088 | 52,353 |
New TDRs | 0 | 12,266 |
Disbursements (Payments) | -1,459 | 77 |
Charge Offs | -4,701 | -16,297 |
Reclassification/Transfers In(Out) | -1,545 | -5,686 |
Loan Sale | 0 | -15,465 |
Payoffs | -1,709 | -1,160 |
TDR Balance | 16,674 | 26,088 |
Related allowance | 370 | 67 |
Nonaccrual Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 6,313 | 6,614 |
New TDRs | 0 | 258 |
Disbursements (Payments) | -158 | -436 |
Charge Offs | -503 | -2,758 |
Reclassification/Transfers In(Out) | 1,545 | 5,686 |
Loan Sale | 0 | -816 |
Payoffs | -123 | -2,235 |
TDR Balance | 7,074 | 6,313 |
Related allowance | 827 | 51 |
Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 1,303 | 1,960 |
Construction Loans [Member] | Accruing Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 1,620 | 27,335 |
New TDRs | 0 | 95 |
Disbursements (Payments) | -186 | 228 |
Charge Offs | -538 | -13,557 |
Reclassification/Transfers In(Out) | 3,396 | -3,521 |
Loan Sale | 0 | -7,908 |
Payoffs | -270 | -1,052 |
TDR Balance | 4,022 | 1,620 |
Related allowance | 41 | 1 |
Construction Loans [Member] | Nonaccrual Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 3,561 | 1,448 |
New TDRs | 0 | 0 |
Disbursements (Payments) | -12 | -64 |
Charge Offs | -235 | -639 |
Reclassification/Transfers In(Out) | 7 | 3,521 |
Loan Sale | 0 | -57 |
Payoffs | 0 | -648 |
TDR Balance | 3,321 | 3,561 |
Related allowance | 0 | 25 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 2,834 | 3,854 |
Residential Real Estate [Member] | Accruing Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 14,582 | 7,017 |
New TDRs | 0 | 10,433 |
Disbursements (Payments) | -1,150 | -86 |
Charge Offs | -3,614 | -632 |
Reclassification/Transfers In(Out) | -3,136 | -1,755 |
Loan Sale | 0 | -395 |
Payoffs | -314 | 0 |
TDR Balance | 6,368 | 14,582 |
Related allowance | 300 | 60 |
Residential Real Estate [Member] | Nonaccrual Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 1,884 | 2,169 |
New TDRs | 0 | 258 |
Disbursements (Payments) | -50 | -90 |
Charge Offs | -203 | -1,253 |
Reclassification/Transfers In(Out) | 1,874 | 1,755 |
Loan Sale | 0 | -759 |
Payoffs | -123 | -196 |
TDR Balance | 3,382 | 1,884 |
Related allowance | 724 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 2,379 | 3,029 |
Commercial Real Estate [Member] | Accruing Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 9,791 | 17,880 |
New TDRs | 0 | 1,738 |
Disbursements (Payments) | -99 | -39 |
Charge Offs | -549 | -2,108 |
Reclassification/Transfers In(Out) | -1,805 | -410 |
Loan Sale | 0 | -7,162 |
Payoffs | -1,101 | -108 |
TDR Balance | 6,237 | 9,791 |
Related allowance | 29 | 6 |
Commercial Real Estate [Member] | Nonaccrual Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 842 | 2,970 |
New TDRs | 0 | 0 |
Disbursements (Payments) | -95 | -281 |
Charge Offs | -65 | -866 |
Reclassification/Transfers In(Out) | -336 | 410 |
Loan Sale | 0 | 0 |
Payoffs | 0 | -1,391 |
TDR Balance | 346 | 842 |
Related allowance | 100 | 0 |
Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 448 | 1,266 |
Commercial Loan [Member] | Accruing Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 95 | 121 |
New TDRs | 0 | 0 |
Disbursements (Payments) | -24 | -26 |
Charge Offs | 0 | 0 |
Reclassification/Transfers In(Out) | 0 | 0 |
Loan Sale | 0 | 0 |
Payoffs | -24 | 0 |
TDR Balance | 47 | 95 |
Related allowance | 0 | 0 |
Commercial Loan [Member] | Nonaccrual Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 0 | 0 |
New TDRs | 0 | 0 |
Disbursements (Payments) | 0 | 0 |
Charge Offs | 0 | 0 |
Reclassification/Transfers In(Out) | 0 | 0 |
Loan Sale | 0 | 0 |
Payoffs | 0 | 0 |
TDR Balance | 0 | 0 |
Related allowance | 0 | 0 |
Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 229 | 243 |
Consumer Loan [Member] | Accruing Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 0 | 0 |
New TDRs | 0 | 0 |
Disbursements (Payments) | 0 | 0 |
Charge Offs | 0 | 0 |
Reclassification/Transfers In(Out) | 0 | 0 |
Loan Sale | 0 | 0 |
Payoffs | 0 | 0 |
TDR Balance | 0 | 0 |
Related allowance | 0 | 0 |
Consumer Loan [Member] | Nonaccrual Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR Balance | 26 | 27 |
New TDRs | 0 | 0 |
Disbursements (Payments) | -1 | -1 |
Charge Offs | 0 | 0 |
Reclassification/Transfers In(Out) | 0 | 0 |
Loan Sale | 0 | 0 |
Payoffs | 0 | 0 |
TDR Balance | 25 | 26 |
Related allowance | $3 | $26 |
LOANS_AND_ALLOWANCE_FOR_CREDIT6
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 0 | 14 |
Premodification outstanding recorded investment | $0 | $14,915 |
Postmodification outstanding recorded investment | 0 | 14,923 |
Related allowance | 0 | 120 |
Troubled Debt Restructurings [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 0 | 3 |
Premodification outstanding recorded investment | 0 | 218 |
Postmodification outstanding recorded investment | 0 | 218 |
Related allowance | 0 | 0 |
Troubled Debt Restructurings [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 0 | 7 |
Premodification outstanding recorded investment | 0 | 12,485 |
Postmodification outstanding recorded investment | 0 | 12,494 |
Related allowance | 0 | 38 |
Troubled Debt Restructurings [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 0 | 4 |
Premodification outstanding recorded investment | 0 | 2,212 |
Postmodification outstanding recorded investment | 0 | 2,211 |
Related allowance | 0 | 82 |
Troubled Debt Restructurings [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
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] | Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 0 | 0 |
Premodification outstanding recorded investment | 0 | 0 |
Postmodification outstanding recorded investment | 0 | 0 |
Related allowance | $0 | $0 |
LOANS_AND_ALLOWANCE_FOR_CREDIT7
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of contracts | 0 | 8 | [1] |
Recorded investment | $0 | $4,069 | [1] |
Related allowance | 0 | 74 | [1] |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Construction Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of contracts | 0 | 0 | [1] |
Recorded investment | 0 | 0 | [1] |
Related allowance | 0 | 0 | [1] |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of contracts | 0 | 6 | [1] |
Recorded investment | 0 | 1,918 | [1] |
Related allowance | 0 | 0 | [1] |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of contracts | 0 | 2 | [1] |
Recorded investment | 0 | 2,151 | [1] |
Related allowance | 0 | 74 | [1] |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Commercial Loan [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of contracts | 0 | 0 | [1] |
Recorded investment | 0 | 0 | [1] |
Related allowance | 0 | 0 | [1] |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Consumer Loan [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of contracts | 0 | 0 | [1] |
Recorded investment | 0 | 0 | [1] |
Related allowance | $0 | $0 | [1] |
[1] | These loans were classified as TDRs during 2012. |
LOANS_AND_ALLOWANCE_FOR_CREDIT8
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | $710,746 | $711,919 |
Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 69,157 | 64,591 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 273,336 | 274,857 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 305,788 | 304,605 |
Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 52,671 | 57,195 |
Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 9,794 | 10,671 |
Pass/Performing [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 640,698 | 592,085 |
Pass/Performing [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 52,241 | 39,268 |
Pass/Performing [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 252,643 | 235,054 |
Pass/Performing [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 275,573 | 255,280 |
Pass/Performing [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 50,583 | 52,032 |
Pass/Performing [Member] | Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 9,658 | 10,451 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 34,256 | 72,366 |
Special Mention [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 5,643 | 15,884 |
Special Mention [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 6,675 | 22,638 |
Special Mention [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 20,040 | 30,105 |
Special Mention [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 1,885 | 3,691 |
Special Mention [Member] | Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 13 | 48 |
Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 35,703 | 46,907 |
Substandard [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 11,273 | 9,439 |
Substandard [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 14,018 | 17,114 |
Substandard [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 10,175 | 19,210 |
Substandard [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 114 | 972 |
Substandard [Member] | Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 123 | 172 |
Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 89 | 561 |
Doubtful [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 0 | 0 |
Doubtful [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 0 | 51 |
Doubtful [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 0 | 10 |
Doubtful [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 89 | 500 |
Doubtful [Member] | Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | $0 | $0 |
LOANS_AND_ALLOWANCE_FOR_CREDIT9
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 7) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Current | $688,156 | $691,164 |
30-59 days past due | 5,654 | 3,757 |
60-89 days past due | 3,383 | 2,102 |
90 days or more past due | 87 | 270 |
Total past due | 9,124 | 6,129 |
Non-accrual | 13,466 | 14,626 |
Total loans | 710,746 | 711,919 |
Percent of total loans, Current | 96.80% | 97.10% |
Percent of total loans, 30-59 days past due | 0.80% | 0.50% |
Percent of total loans, 60-89 days past due | 0.50% | 0.30% |
Percent of total loans, 90 days or more past due | 0.00% | 0.00% |
Percent of total loans, Total past due | 1.30% | 0.80% |
Percent of total loans, Non accrual | 1.90% | 2.10% |
Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Current | 61,325 | 60,642 |
30-59 days past due | 1,786 | 0 |
60-89 days past due | 0 | 0 |
90 days or more past due | 0 | 0 |
Total past due | 1,786 | 0 |
Non-accrual | 6,046 | 3,949 |
Total loans | 69,157 | 64,591 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Current | 263,165 | 265,182 |
30-59 days past due | 3,351 | 2,765 |
60-89 days past due | 2,702 | 1,724 |
90 days or more past due | 83 | 20 |
Total past due | 6,136 | 4,509 |
Non-accrual | 4,035 | 5,166 |
Total loans | 273,336 | 274,857 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Current | 301,695 | 299,295 |
30-59 days past due | 459 | 639 |
60-89 days past due | 513 | 0 |
90 days or more past due | 0 | 0 |
Total past due | 972 | 639 |
Non-accrual | 3,121 | 4,671 |
Total loans | 305,788 | 304,605 |
Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Current | 52,352 | 55,576 |
30-59 days past due | 47 | 330 |
60-89 days past due | 131 | 247 |
90 days or more past due | 0 | 250 |
Total past due | 178 | 827 |
Non-accrual | 141 | 792 |
Total loans | 52,671 | 57,195 |
Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Current | 9,619 | 10,469 |
30-59 days past due | 11 | 23 |
60-89 days past due | 37 | 131 |
90 days or more past due | 4 | 0 |
Total past due | 52 | 154 |
Non-accrual | 123 | 48 |
Total loans | $9,794 | $10,671 |
Recovered_Sheet1
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 8) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for credit losses: | ||
Beginning balance | $10,725 | $15,991 |
Charge-offs | -7,332 | -34,798 |
Recoveries | 952 | 1,748 |
Net charge-offs | -6,380 | -33,050 |
Provision | 3,350 | 27,784 |
Ending balance | 7,695 | 10,725 |
Construction Loans [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 1,960 | 4,387 |
Charge-offs | -725 | -20,695 |
Recoveries | 149 | 161 |
Net charge-offs | -576 | -20,534 |
Provision | -81 | 18,107 |
Ending balance | 1,303 | 1,960 |
Residential Real Estate [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 3,854 | 5,194 |
Charge-offs | -2,407 | -7,163 |
Recoveries | 376 | 545 |
Net charge-offs | -2,031 | -6,618 |
Provision | 1,011 | 5,278 |
Ending balance | 2,834 | 3,854 |
Commercial Real Estate [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 3,029 | 4,134 |
Charge-offs | -1,648 | -6,162 |
Recoveries | 58 | 161 |
Net charge-offs | -1,590 | -6,001 |
Provision | 940 | 4,896 |
Ending balance | 2,379 | 3,029 |
Commercial Loan [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 1,266 | 1,682 |
Charge-offs | -2,389 | -665 |
Recoveries | 341 | 839 |
Net charge-offs | -2,048 | 174 |
Provision | 1,230 | -590 |
Ending balance | 448 | 1,266 |
Consumer Loan [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 243 | 407 |
Charge-offs | -163 | -113 |
Recoveries | 28 | 42 |
Net charge-offs | -135 | -71 |
Provision | 121 | -93 |
Ending balance | 229 | 243 |
Unallocated Financing Receivables [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 373 | 187 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net charge-offs | 0 | 0 |
Provision | 129 | 186 |
Ending balance | $502 | $373 |
Recovered_Sheet2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Net Amount, Total | $703,051,000 | $701,194,000 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 13,466,000 | 14,626,000 |
Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 13,400,000 | 13,000,000 |
Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 89,000 | 1,400,000 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 152,000 | |
Directors, Associates and Policy Making Officer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Net Amount, Total | 18,700,000 | 23,200,000 |
Loans and Leases Receivable Net Reported Amount Additions | 1,800,000 | 1,000,000 |
Proceeds from (Repayments of) Debt | $6,200,000 | $3,800,000 |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Land | $5,818 | $5,818 |
Buildings and land improvements | 13,537 | 13,459 |
Furniture and equipment | 9,273 | 7,650 |
Property, Plant and Equipment, Gross, Total | 28,628 | 26,927 |
Accumulated depreciation | -12,353 | -11,729 |
Total | $16,275 | $15,198 |
PREMISES_AND_EQUIPMENT_Details1
PREMISES AND EQUIPMENT (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Property, Plant and Equipment [Line Items] | |
2015 | $625 |
2016 | 474 |
2017 | 352 |
2018 | 327 |
2019 | 331 |
Thereafter | 889 |
Total minimum lease payments | $2,998 |
PREMISES_AND_EQUIPMENT_Details2
PREMISES AND EQUIPMENT (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation, Total | $867 | $936 | $1,100 |
Operating Leases, Rent Expense | $700 | $744 | $777 |
INVESTMENT_IN_UNCONSOLIDATED_S1
INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Eastern [Member] | |||
Schedule of Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 40.00% | ||
Equity Method Investments | $432 | $328 | |
Income (Loss) from Equity Method Investments | 104 | 328 | |
Wye Mortgage Group [Member] | |||
Schedule of Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 49.00% | ||
Equity Method Investments | 0 | 0 | |
Income (Loss) from Equity Method Investments | $9 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill, Gross Carring Amount | $15,235 | $17,345 |
Goodwill, Accumulated Impairment Charges | -2,637 | -4,224 |
Goodwill Accumulated Amortization | -667 | -667 |
Goodwill, Net Carrying Amount | 11,931 | 12,454 |
Goodwill, Weighted Average Remaining Life (in years) | 0 years | 0 years |
Other intangible assets, Amortizable, Gross Carrying Amount | 2,492 | 3,960 |
Other intangible assets, Amortizable, Accumulated Impairment Charges | -95 | -126 |
Other intangible assets, Amortizable, Accumulated Amortization | -1,846 | -2,779 |
Other intangible assets, Amortizable, Net Carrying Amount | 551 | 1,055 |
Other intangible assets, Unamortizable, Gross Carrying Amount | 780 | 2,510 |
Other intangible assets, Unamortizable, Accumulated Impairment Charges | 0 | -45 |
Other intangible assets, Unamortizable, Accumulated Amortization | 0 | 0 |
Other intangible assets, Unamortizable, Net Carrying Amount | 780 | 2,465 |
Total other intangible assets, Gross Carrying Amount | 3,272 | 6,470 |
Total other intangible assets, Accumulated Impairment Charges | -95 | -171 |
Total other intangible assets, Accumulated Amortization | -1,846 | -2,779 |
Total other intangible asset, Net | 1,331 | 3,520 |
Employment Agreements [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other intangible assets, Amortizable, Gross Carrying Amount | 440 | 1,730 |
Other intangible assets, Amortizable, Accumulated Impairment Charges | 0 | 0 |
Other intangible assets, Amortizable, Accumulated Amortization | -440 | -1,448 |
Other intangible assets, Amortizable, Net Carrying Amount | 0 | 282 |
Other intangible assets, Amortizable, Weight Average Remaining Contractual Term | 0 years | 1 year 8 months 12 days |
Insurance Expirations [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other intangible assets, Amortizable, Gross Carrying Amount | 1,270 | 1,270 |
Other intangible assets, Amortizable, Accumulated Impairment Charges | 0 | 0 |
Other intangible assets, Amortizable, Accumulated Amortization | -1,063 | -979 |
Other intangible assets, Amortizable, Net Carrying Amount | 207 | 291 |
Other intangible assets, Amortizable, Weight Average Remaining Contractual Term | 2 years 4 months 24 days | 3 years 4 months 24 days |
Customer Relationships [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other intangible assets, Amortizable, Gross Carrying Amount | 782 | 960 |
Other intangible assets, Amortizable, Accumulated Impairment Charges | -95 | -126 |
Other intangible assets, Amortizable, Accumulated Amortization | -343 | -352 |
Other intangible assets, Amortizable, Net Carrying Amount | 344 | 482 |
Other intangible assets, Amortizable, Weight Average Remaining Contractual Term | 7 years | 9 years 8 months 12 days |
Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other intangible assets, Unamortizable, Gross Carrying Amount | 780 | 1,210 |
Other intangible assets, Unamortizable, Accumulated Impairment Charges | 0 | 0 |
Other intangible assets, Unamortizable, Accumulated Amortization | 0 | 0 |
Other intangible assets, Unamortizable, Net Carrying Amount | 780 | 1,210 |
Other intangible assets, Unamortizable, Weight Average Remaining Contractual Term | 0 years | 0 years |
Carrier Relationship [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other intangible assets, Unamortizable, Gross Carrying Amount | 0 | 1,300 |
Other intangible assets, Unamortizable, Accumulated Impairment Charges | 0 | -45 |
Other intangible assets, Unamortizable, Accumulated Amortization | 0 | 0 |
Other intangible assets, Unamortizable, Net Carrying Amount | $0 | $1,255 |
Other intangible assets, Unamortizable, Weight Average Remaining Contractual Term | 0 years | 0 years |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Indefinite-lived Intangible Assets [Line Items] | |
Amortization Expense, Estimate for years ended December 31, 2015 | $133 |
Amortization Expense, Estimate for years ended December 31, 2016 | 133 |
Amortization Expense, Estimate for years ended December 31, 2017 | 85 |
Amortization Expense, Estimate for years ended December 31, 2018 | 42 |
Amortization Expense, Estimate for years ended December 31, 2019 | $42 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $11,931 | $12,454 | |
Amortization Of Other Intangible Assets | 201 | 296 | 392 |
Community Banking Segment [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | 2,500 | 2,500 | |
Insurance Products and Services Segment [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | 9,400 | 9,900 | |
Tri-State General Insurance [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Gain (Loss) on Disposition of Intangible Assets | $500 |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Other Assets [Line Items] | ||||
Nonmarketable investment securities | $1,586 | $2,058 | ||
Accrued interest receivable | 2,663 | 2,561 | ||
Deferred income taxes | 15,744 | [1] | 19,090 | [1] |
Prepaid expenses | 750 | 700 | ||
Other assets | 6,419 | 6,673 | ||
Total | $27,162 | $31,082 | ||
[1] | See Note 15 for further discussion. |
OTHER_LIABILITIES_Details
OTHER LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities [Line Items] | ||
Accrued interest payable | $172 | $225 |
Other accounts payable | 2,435 | 3,543 |
Deferred compensation liability | 1,503 | 1,505 |
Other liabilities | 2,011 | 1,944 |
Total | $6,121 | $7,217 |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Line Items] | ||
Due in one year or less | $181,847 | $184,836 |
Due in one to three years | 101,811 | 121,403 |
Due in three to five years | 47,969 | 66,565 |
Total | $331,627 | $372,804 |
DEPOSITS_Details_Textual
DEPOSITS (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deposits [Line Items] | ||
Time Deposits, $100,000 or More | $159.90 | $185 |
SHORTTERM_BORROWINGS_Details
SHORT-TERM BORROWINGS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short-term Debt [Line Items] | ||
Short-term Debt, Total | $4,808 | $10,140 |
Short-term Debt, Weighted Average Interest Rate | 0.23% | 0.23% |
Retail Repurchase Agreements [Member] | Weighted Average [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt, Total | $8,061 | $10,980 |
Short-term Debt, Weighted Average Interest Rate | 0.22% | 0.24% |
BENEFIT_PLANS_Details_Textual
BENEFIT PLANS (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $545 | $520 | $513 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $87 | [1] | $78 | $209 |
Excess tax expense related to stock-based compensation | 0 | 26 | 106 | |
Unrecognized stock-based compensation expense | $59 | $136 | $143 | |
Weighted average period unrecognized expense is expected to be recognized | 9 months 18 days | 1 year 8 months 12 days | 2 years 1 month 6 days | |
[1] | On January 7, 2015 restricted stock and options were granted to executive officers in the amount of $62 thousand in restricted stock awards and $117 thousand in option awards. The restricted stock and options immediately vested 50% on the grant date of January 7, 2015, in which the amount of $90 thousand was accrued at December 31, 2014 and recorded as an other liability. On January 7, 2015 the liability for the restricted shares and the options was reclassified to additional paid-in-capital. The January 7, 2015 awarded grants are excluded from the tables above because including them would not properly reflect the outstanding shares at December 31, 2014. |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 1) (Restricted Stock [Member], USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of Shares, Nonvested at beginning of period (in shares) | 13,930 | 6,548 | 45,779 | |||
Number of Shares, Granted (in shares) | 3,654 | [1] | 13,930 | [1] | 0 | [1] |
Number of Shares, Vested (in shares) | -3,333 | -6,548 | -39,231 | |||
Number of Shares, Cancelled (in shares) | 0 | 0 | 0 | |||
Number of Shares, Nonvested at end of period (in shares) | 14,251 | 13,930 | 6,548 | |||
Weighted Average Grant Date Fair Value, Nonvested at beginning of period (in dollars per share) | $8.33 | $14.89 | $13.20 | |||
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $9.57 | [1] | $8.33 | [1] | $0 | [1] |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $8.93 | $14.89 | $12.92 | |||
Weighted Average Grant Date Fair Value, Cancelled (in dollars per share) | $0 | $0 | $0 | |||
Weighted Average Grant Date Fair Value, Nonvested at end of period (in dollars per share) | $8.51 | $8.33 | $14.89 | |||
[1] | On January 7, 2015 restricted stock and options were granted to executive officers in the amount of $62 thousand in restricted stock awards and $117 thousand in option awards. The restricted stock and options immediately vested 50% on the grant date of January 7, 2015, in which the amount of $90 thousand was accrued at December 31, 2014 and recorded as an other liability. On January 7, 2015 the liability for the restricted shares and the options was reclassified to additional paid-in-capital. The January 7, 2015 awarded grants are excluded from the tables above because including them would not properly reflect the outstanding shares at December 31, 2014. |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares, Exercised (in shares) | -3,593 | |||||
Equity Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares, Outstanding at beginning of year (in shares) | 40,662 | 54,216 | 0 | |||
Number of shares, Granted (in shares) | 0 | [1] | 0 | [1] | 54,216 | [1] |
Number of shares, Exercised (in shares) | -3,593 | 0 | 0 | |||
Number of shares, Expired/Cancelled (in shares) | -9,961 | -13,554 | 0 | |||
Number of shares, Outstanding at end of year (in shares) | 27,108 | 40,662 | 54,216 | |||
Number of shares, Exercisable at end of year (in shares) | 0 | 0 | 0 | |||
Weighted Average Exercise Price, Outstanding at beginning of year | $6.64 | $6.64 | $6.64 | |||
Weighted Average Exercise Price, Granted | $0 | [1] | $0 | [1] | $0 | [1] |
Weighted Average Exercise Price, Exercised | $6.64 | $0 | $0 | |||
Weighted Average Exercise Price, Expired/Cancelled | $6.64 | $6.64 | $0 | |||
Weighted Average Exercise Price, Outstanding at end of year | $6.64 | $6.64 | $6.64 | |||
Weighted Average Exercise Price, Exercisable at end of year | $0 | $0 | $0 | |||
[1] | On January 7, 2015 restricted stock and options were granted to executive officers in the amount of $62 thousand in restricted stock awards and $117 thousand in option awards. The restricted stock and options immediately vested 50% on the grant date of January 7, 2015, in which the amount of $90 thousand was accrued at December 31, 2014 and recorded as an other liability. On January 7, 2015 the liability for the restricted shares and the options was reclassified to additional paid-in-capital. The January 7, 2015 awarded grants are excluded from the tables above because including them would not properly reflect the outstanding shares at December 31, 2014. |
STOCKBASED_COMPENSATION_Detail3
STOCK-BASED COMPENSATION (Details 3) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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 $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Oct. 27, 2014 | Dec. 31, 2014 | Jan. 07, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Estimated Fair Value Of Stock Price | $8.99 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 2 months 12 days | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | 3,593 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 9,961 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $8 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 13,554 | 0 | |||
Other Deferred Compensation Arrangements, Liability, Current | 90 | ||||
Executive Officer [Member] | Employee Stock Option [Member] | Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 117 | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 30 | 36 | 245 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | The restricted stock and options immediately vested 50% on the grant date | ||||
Restricted Stock [Member] | Executive Officer [Member] | Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 62 | ||||
Equity Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $3.44 | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | 3,593 | 0 | 0 | ||
Equity Plan 2006 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Shares Authorized Under Stock Option Plans Expire Period | 10 years | ||||
Share Based Compensation Arrangement By Share Based Payment Award Estimated Fair Value Of Stock Price | $9.34 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 631,972 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 503,048 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $73 |
DEFERRED_COMPENSATION_Details
DEFERRED COMPENSATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Deferred compensation contribution | $0 | $9 | $20 |
Deferred compensation liability | $445 | $404 |
DEFERRED_COMPENSATION_Details1
DEFERRED COMPENSATION (Details1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Cash surrender value | $3,360 | $3,256 |
Accrued benefit obligation | $1,058 | $1,101 |
DEFERRED_COMPENSATION_Details_
DEFERRED COMPENSATION (Details Textual) | 12 Months Ended |
Dec. 31, 2014 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Deferred Compensation Arrangement with Individual, Description | The Plan permits a participant to elect, each year, to defer receipt of up to 100% of his or her salary and bonus to be earned in the following year. |
OTHER_EXPENSES_Details
OTHER EXPENSES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Noninterest Expenses [Line Items] | |||
Advertising and marketing | $428 | $848 | $338 |
Legal and professional | 2,048 | 1,539 | 1,516 |
Other customer expense | 396 | 414 | 372 |
Other expense | 2,070 | 2,152 | 2,302 |
Other loan expense | 894 | 934 | 1,086 |
Software expense | 664 | 613 | 518 |
Travel and entertainment expense | 288 | 287 | 265 |
Trust professional fees | 686 | 616 | 542 |
Total noninterest expense | $7,474 | $7,403 | $6,939 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current tax expense (benefit): | |||
Federal | $0 | ($459) | ($2,007) |
State | 225 | 90 | 210 |
Current Income Tax Expense (Benefit), Total | 225 | -369 | -1,797 |
Deferred income tax expense (benefit): | |||
Federal | 2,516 | -4,592 | -3,110 |
State | 320 | -1,540 | -1,658 |
Deferred Income Tax Expense (Benefit), Total | 2,836 | -6,132 | -4,768 |
Total income tax expense (benefit) | $3,061 | ($6,501) | ($6,565) |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate Reconciliation [Line Items] | |||
Tax at federal statutory rate | 34.00% | -34.00% | -34.00% |
Tax effect of: | |||
Tax-exempt income | -0.90% | -0.40% | -0.60% |
Other non-deductible expenses | 0.30% | 0.20% | 0.20% |
State income taxes, net of federal benefit | 4.40% | -5.90% | -5.90% |
Other | -0.10% | -0.20% | -0.20% |
Actual income tax expense (benefit) rate | 37.70% | -40.30% | -40.50% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Allowance for credit losses | $3,072 | $4,298 |
Reserve for off-balance sheet commitments | 121 | 180 |
Net operating loss carry forward | 13,265 | 14,430 |
Write-downs of other real estate owned | 355 | 400 |
Deferred income | 1,132 | 1,108 |
Accrued expenses | 918 | 936 |
Unrealized losses on available-for-sale securities | 0 | 296 |
Other | 80 | 83 |
Total deferred tax assets | 18,943 | 21,731 |
Deferred tax liabilities: | ||
Depreciation | 372 | 463 |
Purchase accounting adjustments | 1,751 | 1,305 |
Deferred capital gain on branch sale | 425 | 438 |
Unrealized gains on available-for-sale securities | 214 | 0 |
Other | 437 | 435 |
Total deferred tax liabilities | 3,199 | 2,641 |
Net deferred tax assets | $15,744 | $19,090 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Line Items] | |||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest, Total | $1,947 | $2,036 | $2,108 | $2,021 | $1,843 | ($18,808) | $504 | $326 | ($8,348) | ($3,178) | $422 | ($5,099) | $8,112 | ($16,135) | ($16,203) |
Operating Loss Carryforwards Expiration Year | 20 years |
EARNINGSLOSS_PER_COMMON_SHARE_1
EARNINGS/(LOSS) PER COMMON SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share Basic And Diluted [Line Items] | |||||||||||||||
Net income (loss) | $1,226 | $1,262 | $1,305 | $1,258 | $1,175 | ($11,392) | $361 | $222 | ($5,074) | ($1,821) | $293 | ($3,036) | $5,051 | ($9,634) | ($9,638) |
Weighted average shares outstanding - basic (in shares) | 10,945 | 8,461 | 8,457 | ||||||||||||
Dilutive effect of common stock equivalents (in shares) | 8 | 0 | 0 | ||||||||||||
Weighted average shares outstanding - diluted (in shares) | 10,953 | 8,461 | 8,457 | ||||||||||||
Income (loss) per common share - Basic (in dollars per share) | $0.10 | $0.10 | $0.13 | $0.15 | $0.14 | ($1.35) | $0.04 | $0.03 | ($0.60) | ($0.22) | $0.03 | ($0.36) | $0.46 | ($1.14) | ($1.14) |
Income (loss) per common share - Diluted (in dollars per share) | $0.10 | $0.10 | $0.13 | $0.15 | $0.14 | ($1.35) | $0.04 | $0.03 | ($0.60) | ($0.22) | $0.03 | ($0.36) | $0.46 | ($1.14) | ($1.14) |
EARNINGSLOSS_PER_COMMON_SHARE_2
EARNINGS/(LOSS) PER COMMON SHARE (Details Textual) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 51 | 46 |
REGULATORY_CAPITAL_REQUIREMENT2
REGULATORY CAPITAL REQUIREMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Capital | $112,511 | $72,370 |
Total Risk-Based Capital | 120,510 | 81,341 |
Net Risk-Weighted Assets | 736,763 | 717,129 |
Adjusted Average Total Assets | 1,075,674 | 1,028,957 |
Tier 1 Risk-Based Capital Ratio | 15.27% | 10.09% |
Total Risk-Based Capital Ratio | 16.36% | 11.34% |
Tier 1 Leverage Ratio | 10.46% | 7.03% |
Talbot Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Capital | 51,637 | 28,395 |
Total Risk-Based Capital | 55,910 | 33,554 |
Net Risk-Weighted Assets | 394,788 | 410,547 |
Adjusted Average Total Assets | 579,781 | 569,689 |
Tier 1 Risk-Based Capital Ratio | 13.08% | 6.92% |
Total Risk-Based Capital Ratio | 14.16% | 8.17% |
Tier 1 Leverage Ratio | 8.91% | 4.98% |
Centreville National Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Capital | 44,869 | 42,186 |
Total Risk-Based Capital | 48,594 | 45,998 |
Net Risk-Weighted Assets | 331,089 | 305,278 |
Adjusted Average Total Assets | $485,042 | $460,747 |
Tier 1 Risk-Based Capital Ratio | 13.55% | 13.82% |
Total Risk-Based Capital Ratio | 14.68% | 15.07% |
Tier 1 Leverage Ratio | 9.25% | 9.16% |
REGULATORY_CAPITAL_REQUIREMENT3
REGULATORY CAPITAL REQUIREMENTS (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% |
Additional Dividends Without Prior Consent And Approval Of Its Regulatory Agencies | $4,500,000 |
Excess Tier One Leverage Capital to Average Assets | 8.00% |
Excess Capital to Risk Weighted Assets | 12.00% |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.00% |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.00% |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% |
Proceeds from Dividends Received | $200,000 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning Balance | ($437) | $708 |
Other comprehensive (loss) income | 767 | -1,379 |
Reclassification of (gains) losses recognized | -14 | 234 |
Accumulated other comprehensive income (loss), Ending Balance | 316 | -437 |
Accumulated Net Unrealized Holding Gains (Losses) On Available For Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning Balance | -437 | 1,894 |
Other comprehensive (loss) income | 767 | -1,786 |
Reclassification of (gains) losses recognized | -14 | -545 |
Accumulated other comprehensive income (loss), Ending Balance | 316 | -437 |
Accumulated Net Unrealized Holding Gains (Losses) On Cash Flow Hedging Activities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning Balance | 0 | -1,186 |
Other comprehensive (loss) income | 0 | 407 |
Reclassification of (gains) losses recognized | 0 | 779 |
Accumulated other comprehensive income (loss), Ending Balance | $0 | $0 |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | ($14) | $234 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gain (Loss) on Sale of Investments | 14 | 545 | 166 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $14 | $545 | $166 |
LINES_OF_CREDIT_Details_Textua
LINES OF CREDIT (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ||
Lines of Credit, Fair Value Disclosure | $15.50 | $15.50 |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months | $70.90 | $46.90 |
Line of Credit Facility, Commitment Fee Percentage | 0.09% | |
Line of Credit Facility, Frequency of Commitment Fee Payment | monthly |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | $236,108 | $147,101 |
Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 5,215 | 5,343 |
Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 230,893 | 141,758 |
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 | 5,215 | 5,343 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 5,215 | 5,343 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
US Government and Government Agencies and Authorities [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 74,960 | 60,444 |
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 | 74,960 | 60,444 |
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 | 155,303 | 80,713 |
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 | 155,303 | 80,713 |
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 | 630 | 601 |
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 | 630 | 601 |
Equity Securities Others [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Impaired loans: | ||
Impaired loans | $28,868 | $39,931 |
Loans held for sale | 3,521 | |
Other real estate owned | 3,691 | 3,779 |
Total assets measured at fair value on a nonrecurring basis | 32,559 | 47,231 |
Fair Value, Inputs, Level 1 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Loans held for sale | 0 | |
Other real estate owned | 0 | 0 |
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Impaired loans | 28,868 | 39,931 |
Loans held for sale | 3,521 | |
Other real estate owned | 3,691 | 3,779 |
Total assets measured at fair value on a nonrecurring basis | 32,559 | 47,231 |
Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Loans held for sale | 0 | |
Other real estate owned | 0 | 0 |
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Construction [Member] | ||
Impaired loans: | ||
Impaired loans | 10,026 | 5,365 |
Construction [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Construction [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Impaired loans | 10,026 | 5,365 |
Construction [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Residential Real Estate [Member] | ||
Impaired loans: | ||
Impaired loans | 9,304 | 19,463 |
Residential Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Residential Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Impaired loans | 9,304 | 19,463 |
Residential Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Commercial Real Estate [Member] | ||
Impaired loans: | ||
Impaired loans | 9,230 | 14,418 |
Commercial Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Commercial Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Impaired loans | 9,230 | 14,418 |
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Commercial [Member] | ||
Impaired loans: | ||
Impaired loans | 187 | 642 |
Commercial [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Commercial [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Impaired loans | 187 | 642 |
Commercial [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Consumer [Member] | ||
Impaired loans: | ||
Impaired loans | 121 | 43 |
Consumer [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Consumer [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans: | ||
Impaired loans | 121 | 43 |
Consumer [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Financial assets, Carrying Amount | ||||
Cash and cash equivalents, Carrying Amount | $96,223 | $131,090 | $200,193 | $127,742 |
Investment securities held to maturity, Carrying Amount | 4,630 | 5,185 | ||
Loans, net, Carrying Amount | 703,051 | 701,194 | ||
Financial liabilities, Carrying Amount | ||||
Deposits, Carrying Amount | 949,004 | 933,468 | ||
Short-term borrowings, Carrying Amount | 4,808 | 10,140 | ||
Financial assets, Estimated Fair Value | ||||
Investment securities held to maturity, Estimated Fair Value | 4,694 | 5,062 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Financial assets, Carrying Amount | ||||
Cash and cash equivalents, Carrying Amount | 96,223 | 131,090 | ||
Investment securities held to maturity, Carrying Amount | 4,630 | 5,185 | ||
Loans, net, Carrying Amount | 703,051 | 701,194 | ||
Financial liabilities, Carrying Amount | ||||
Deposits, Carrying Amount | 949,004 | 933,468 | ||
Short-term borrowings, Carrying Amount | 4,808 | 10,140 | ||
Financial assets, Estimated Fair Value | ||||
Cash and cash equivalents, Estimated Fair Value | 96,223 | 131,090 | ||
Investment securities held to maturity, Estimated Fair Value | 4,694 | 5,062 | ||
Loans, net, Estimated Fair Value | 724,771 | 721,688 | ||
Financial liabilities, Estimated Fair Value | ||||
Deposits, Estimated Fair Value | 948,605 | 934,943 | ||
Short-term borrowings, Estimated Fair Value | $4,808 | $10,140 |
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITES (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2009 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
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 Qualified | 1,300,000 | 1,300,000 | ||||
Interest rate caps | 14,000 | 14,000 | ||||
Reduction in Money Market Deposits | 0 | |||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 0 | 681,000 | 1,801,000 | |||
Interest Expense Hedged Deposits | 695,000 | |||||
Accounts Payable, Interest-bearing | $0 | $0 |
FINANCIAL_INSTRUMENTS_WITH_OFF2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments With Off Balance Sheet Risk Disclosure [Line Items] | ||
Commitments to extend credit | $127,080 | $116,596 |
Letters of credit | 7,347 | 10,477 |
Total | $134,427 | $127,073 |
PARENT_COMPANY_FINANCIAL_INFOR2
PARENT COMPANY FINANCIAL INFORMATION (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Premises and equipment, net | $16,275 | $15,198 | ||
Other assets | 27,162 | 31,082 | ||
Total assets | 1,100,402 | 1,054,124 | 1,185,807 | |
Liabilities | ||||
Deferred tax liability | 3,199 | 2,641 | ||
Other liabilities | 6,121 | 7,217 | ||
Total liabilities | 959,933 | 950,825 | ||
Stockholders’ equity | ||||
Common stock | 126 | 85 | ||
Retained earnings | 76,495 | 71,444 | ||
Accumulated other comprehensive income (loss) | 316 | -437 | 708 | |
Total stockholders’ equity | 140,469 | 103,299 | 114,026 | 121,249 |
Total liabilities and stockholders’ equity | 1,100,402 | 1,054,124 | ||
Shore Bancshares [Member] | ||||
Assets | ||||
Cash | 2,101 | 987 | ||
Investment securities | 9,723 | 0 | ||
Investment in subsidiaries | 126,857 | 102,815 | ||
Premises and equipment, net | 3,158 | 2,726 | ||
Other assets | 1,329 | 1,284 | ||
Total assets | 143,168 | 107,812 | ||
Liabilities | ||||
Accrued interest payable | 1 | 0 | ||
Deferred tax liability | 0 | 1,628 | ||
Other liabilities | 855 | 542 | ||
Long-term debt | 1,843 | 2,343 | ||
Total liabilities | 2,699 | 4,513 | ||
Stockholders’ equity | ||||
Common stock | 126 | 85 | ||
Additional paid in capital | 63,532 | 32,207 | ||
Retained earnings | 76,495 | 71,444 | ||
Accumulated other comprehensive income (loss) | 316 | -437 | ||
Total stockholders’ equity | 140,469 | 103,299 | ||
Total liabilities and stockholders’ equity | $143,168 | $107,812 |
PARENT_COMPANY_FINANCIAL_INFOR3
PARENT COMPANY FINANCIAL INFORMATION (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Expenses | |||||||||||||||
Interest expense | $4,247 | $6,475 | $10,562 | ||||||||||||
Income tax benefit | 3,061 | -6,501 | -6,565 | ||||||||||||
Net income (loss) | 1,226 | 1,262 | 1,305 | 1,258 | 1,175 | -11,392 | 361 | 222 | -5,074 | -1,821 | 293 | -3,036 | 5,051 | -9,634 | -9,638 |
Shore Bancshares [Member] | |||||||||||||||
Income | |||||||||||||||
Dividends from subsidiaries | 200 | 2,163 | 3,154 | ||||||||||||
Management and other fees from subsidiaries | 7,933 | 6,226 | 5,692 | ||||||||||||
Other income | 110 | 31 | 180 | ||||||||||||
Total income | 8,243 | 8,420 | 9,026 | ||||||||||||
Expenses | |||||||||||||||
Interest expense | 80 | 88 | 107 | ||||||||||||
Salaries and employee benefits | 5,321 | 4,447 | 4,188 | ||||||||||||
Occupancy and equipment expense | 541 | 508 | 463 | ||||||||||||
Other operating expenses | 2,387 | 1,853 | 1,529 | ||||||||||||
Total expenses | 8,329 | 6,896 | 6,287 | ||||||||||||
(Loss) income before income tax benefit and equity in undistributed net income (loss) of subsidiaries | -86 | 1,524 | 2,739 | ||||||||||||
Income tax benefit | -107 | -61 | -58 | ||||||||||||
Income before equity in undistributed net income (loss) of subsidiaries | 21 | 1,585 | 2,797 | ||||||||||||
Equity in undistributed net income (loss) of subsidiaries | 5,030 | -11,219 | -12,435 | ||||||||||||
Net income (loss) | $5,051 | ($9,634) | ($9,638) |
PARENT_COMPANY_FINANCIAL_INFOR4
PARENT COMPANY FINANCIAL INFORMATION (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $1,226 | $1,262 | $1,305 | $1,258 | $1,175 | ($11,392) | $361 | $222 | ($5,074) | ($1,821) | $293 | ($3,036) | $5,051 | ($9,634) | ($9,638) | |
Adjustments to reconcile net (income) loss to cash provided by operating activities: | ||||||||||||||||
Stock-based compensation expense | 87 | [1] | 78 | 209 | ||||||||||||
Excess tax benefit from stock-based arrangements | 0 | -26 | -106 | |||||||||||||
Net (increase) decrease in other assets | 170 | 4,703 | 1,351 | |||||||||||||
Net increase (decrease) in other liabilities | -1,044 | -1,458 | 224 | |||||||||||||
Net cash provided by operating activities | 13,179 | 19,847 | 21,386 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Proceeds from sale of securities | 988 | 40,351 | 6,275 | |||||||||||||
Purchases of premises and equipment | -2,077 | -545 | -2,202 | |||||||||||||
Net cash used in investing activities | -89,528 | 30,450 | 16,201 | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Repayment of long-term debt | 0 | 0 | -455 | |||||||||||||
Excess tax benefit from stock-based arrangements | 0 | 26 | 106 | |||||||||||||
Proceeds from issuance of common stock | 31,279 | 0 | 0 | |||||||||||||
Common stock dividends paid | 0 | 0 | -85 | |||||||||||||
Net cash provided by (used in) financing activities | 41,482 | -119,400 | 34,864 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | -34,867 | -69,103 | 72,451 | |||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 131,090 | 200,193 | 127,742 | 131,090 | 200,193 | 127,742 | ||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | 96,223 | 131,090 | 200,193 | 96,223 | 131,090 | 200,193 | ||||||||||
Shore Bancshares [Member] | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | 5,051 | -9,634 | -9,638 | |||||||||||||
Adjustments to reconcile net (income) loss to cash provided by operating activities: | ||||||||||||||||
Equity in undistributed net (income) loss of subsidiaries | -5,030 | 11,219 | 12,435 | |||||||||||||
Depreciation and amortization | 379 | 386 | 367 | |||||||||||||
Stock-based compensation expense | 87 | 78 | 209 | |||||||||||||
Excess tax benefit from stock-based arrangements | 0 | -26 | -106 | |||||||||||||
Net (increase) decrease in other assets | -121 | 128 | -246 | |||||||||||||
Net increase (decrease) in other liabilities | 271 | -53 | -423 | |||||||||||||
Net cash provided by operating activities | 637 | 2,098 | 2,598 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Proceeds from sale of securities | 442 | 0 | 0 | |||||||||||||
Purchases of securities | -10,112 | 0 | 0 | |||||||||||||
Purchases of premises and equipment | -632 | -307 | -108 | |||||||||||||
Investment in subsidiaries | -20,000 | -1,650 | -2,000 | |||||||||||||
Net cash used in investing activities | -30,302 | -1,957 | -2,108 | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Repayment of long-term debt | -500 | 0 | -1,007 | |||||||||||||
Excess tax benefit from stock-based arrangements | 0 | 26 | 106 | |||||||||||||
Proceeds from issuance of common stock | 31,279 | 0 | 0 | |||||||||||||
Common stock dividends paid | 0 | 0 | -85 | |||||||||||||
Net cash provided by (used in) financing activities | 30,779 | 26 | -986 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 1,114 | 167 | -496 | |||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 987 | 820 | 1,316 | 987 | 820 | 1,316 | ||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $2,101 | $987 | $820 | $2,101 | $987 | $820 | ||||||||||
[1] | On January 7, 2015 restricted stock and options were granted to executive officers in the amount of $62 thousand in restricted stock awards and $117 thousand in option awards. The restricted stock and options immediately vested 50% on the grant date of January 7, 2015, in which the amount of $90 thousand was accrued at December 31, 2014 and recorded as an other liability. On January 7, 2015 the liability for the restricted shares and the options was reclassified to additional paid-in-capital. The January 7, 2015 awarded grants are excluded from the tables above because including them would not properly reflect the outstanding shares at December 31, 2014. |
QUARTERLY_FINANCIAL_RESULTS_un2
QUARTERLY FINANCIAL RESULTS (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Line Items] | |||||||||||||||
Interest income | $9,625 | $9,686 | $9,523 | $9,455 | $9,807 | $10,182 | $10,755 | $10,607 | $10,960 | $11,393 | $11,692 | $11,856 | $38,289 | $41,351 | $45,901 |
Net interest income | 8,636 | 8,636 | 8,447 | 8,323 | 8,570 | 8,828 | 9,001 | 8,477 | 8,381 | 8,730 | 9,033 | 9,195 | 34,042 | 34,876 | 35,339 |
Provision for credit losses | 650 | 775 | 950 | 975 | 474 | 22,460 | 2,700 | 2,150 | 9,650 | 6,200 | 3,525 | 8,370 | 3,350 | 27,784 | 27,745 |
Income (loss) before income taxes | 1,947 | 2,036 | 2,108 | 2,021 | 1,843 | -18,808 | 504 | 326 | -8,348 | -3,178 | 422 | -5,099 | 8,112 | -16,135 | -16,203 |
Net income (loss) | $1,226 | $1,262 | $1,305 | $1,258 | $1,175 | ($11,392) | $361 | $222 | ($5,074) | ($1,821) | $293 | ($3,036) | $5,051 | ($9,634) | ($9,638) |
Basic earnings (loss) per common share | $0.10 | $0.10 | $0.13 | $0.15 | $0.14 | ($1.35) | $0.04 | $0.03 | ($0.60) | ($0.22) | $0.03 | ($0.36) | $0.46 | ($1.14) | ($1.14) |
Diluted earnings (loss) per common share | $0.10 | $0.10 | $0.13 | $0.15 | $0.14 | ($1.35) | $0.04 | $0.03 | ($0.60) | ($0.22) | $0.03 | ($0.36) | $0.46 | ($1.14) | ($1.14) |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | $9,625 | $9,686 | $9,523 | $9,455 | $9,807 | $10,182 | $10,755 | $10,607 | $10,960 | $11,393 | $11,692 | $11,856 | $38,289 | $41,351 | $45,901 |
Interest expense | -4,247 | -6,475 | -10,562 | ||||||||||||
Provision for credit losses | -650 | -775 | -950 | -975 | -474 | -22,460 | -2,700 | -2,150 | -9,650 | -6,200 | -3,525 | -8,370 | -3,350 | -27,784 | -27,745 |
Noninterest income | 16,781 | 17,459 | 15,758 | ||||||||||||
Noninterest expense | -39,361 | -40,686 | -39,555 | ||||||||||||
Net intersegment (expense) income | 0 | 0 | 0 | ||||||||||||
(Loss) income before income taxes | 1,947 | 2,036 | 2,108 | 2,021 | 1,843 | -18,808 | 504 | 326 | -8,348 | -3,178 | 422 | -5,099 | 8,112 | -16,135 | -16,203 |
Income tax benefit (expense) | -3,061 | 6,501 | 6,565 | ||||||||||||
Net (loss) income | 1,226 | 1,262 | 1,305 | 1,258 | 1,175 | -11,392 | 361 | 222 | -5,074 | -1,821 | 293 | -3,036 | 5,051 | -9,634 | -9,638 |
Total assets | 1,100,402 | 1,054,124 | 1,185,807 | 1,100,402 | 1,054,124 | 1,185,807 | |||||||||
Community Banking [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | 38,202 | 41,310 | 45,822 | ||||||||||||
Interest expense | -4,247 | -6,475 | -10,546 | ||||||||||||
Provision for credit losses | -3,350 | -27,784 | -27,745 | ||||||||||||
Noninterest income | 6,482 | 5,716 | 5,197 | ||||||||||||
Noninterest expense | -22,776 | -23,676 | -23,702 | ||||||||||||
Net intersegment (expense) income | -7,010 | -5,359 | -4,993 | ||||||||||||
(Loss) income before income taxes | 7,301 | -16,268 | -15,967 | ||||||||||||
Income tax benefit (expense) | -2,755 | 6,556 | 6,467 | ||||||||||||
Net (loss) income | 4,546 | -9,712 | -9,500 | ||||||||||||
Total assets | 1,074,638 | 1,036,098 | 1,166,468 | 1,074,638 | 1,036,098 | 1,166,468 | |||||||||
Insurance Products and Services [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | 0 | 41 | 79 | ||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||||||
Noninterest income | 10,305 | 11,737 | 10,422 | ||||||||||||
Noninterest expense | -8,527 | -10,350 | -9,820 | ||||||||||||
Net intersegment (expense) income | -680 | -655 | -503 | ||||||||||||
(Loss) income before income taxes | 1,098 | 773 | 178 | ||||||||||||
Income tax benefit (expense) | -414 | -313 | -70 | ||||||||||||
Net (loss) income | 684 | 460 | 108 | ||||||||||||
Total assets | 10,824 | 15,759 | 16,809 | 10,824 | 15,759 | 16,809 | |||||||||
Parent Company [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | 87 | 0 | 0 | ||||||||||||
Interest expense | 0 | 0 | -16 | ||||||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||||||
Noninterest income | -6 | 6 | 139 | ||||||||||||
Noninterest expense | -8,058 | -6,660 | -6,033 | ||||||||||||
Net intersegment (expense) income | 7,690 | 6,014 | 5,496 | ||||||||||||
(Loss) income before income taxes | -287 | -640 | -414 | ||||||||||||
Income tax benefit (expense) | 108 | 258 | 168 | ||||||||||||
Net (loss) income | -179 | -382 | -246 | ||||||||||||
Total assets | $14,940 | $2,267 | $2,530 | $14,940 | $2,267 | $2,530 |