Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | SHORE BANCSHARES INC | ||
Entity Central Index Key | 1,035,092 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Trading Symbol | SHBI | ||
Entity Common Stock, Shares Outstanding | 12,640,134 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 116,646,865 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 15,080 | $ 24,211 |
Interest-bearing deposits with other banks | 54,223 | 68,460 |
Federal funds sold | 4,508 | 3,552 |
Cash and cash equivalents | 73,811 | 96,223 |
Investment securities: | ||
Available for sale, at fair value | 212,165 | 236,108 |
Held to maturity, at amortized cost - fair value of $4,243 (2015) and $4,694 (2014) | 4,191 | 4,630 |
Loans | 795,114 | 710,746 |
Less: allowance for credit losses | (8,316) | (7,695) |
Loans, net | 786,798 | 703,051 |
Premises and equipment, net | 16,864 | 16,275 |
Goodwill | 11,931 | 11,931 |
Other intangible assets, net | 1,211 | 1,331 |
Other real estate owned, net | 4,252 | 3,691 |
Other assets | 23,920 | 27,162 |
TOTAL ASSETS | 1,135,143 | 1,100,402 |
Deposits: | ||
Noninterest-bearing | 229,686 | 193,814 |
Interest-bearing | 745,778 | 755,190 |
Total deposits | 975,464 | 949,004 |
Short-term borrowings | 6,672 | 4,808 |
Other liabilities | 6,040 | 6,121 |
TOTAL LIABILITIES | 988,176 | 959,933 |
STOCKHOLDERS’ EQUITY | ||
Common stock, par value $.01, authorized 35,000,000 shares; shares issued and outstanding-12,631,160 (2015) and 12,618,513 (2014) | 126 | 126 |
Additional paid in capital | 63,815 | 63,532 |
Retained earnings | 83,097 | 76,495 |
Accumulated other comprehensive (loss) income | (71) | 316 |
TOTAL STOCKHOLDERS’ EQUITY | 146,967 | 140,469 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,135,143 | $ 1,100,402 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Securities held to maturity, estimated fair value (in dollars) | $ 4,243 | $ 4,694 |
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 | 12,631,160 | 12,618,513 |
Common stock, shares outstanding | 12,631,160 | 12,618,513 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INTEREST INCOME | |||
Interest and fees on loans | $ 35,126 | $ 35,140 | $ 39,058 |
Interest and dividends on investment securities: | |||
Taxable | 3,602 | 2,957 | 2,072 |
Tax-exempt | 10 | 12 | 17 |
Interest on federal funds sold | 3 | 1 | 4 |
Interest on deposits with other banks | 130 | 179 | 200 |
Total interest income | 38,871 | 38,289 | 41,351 |
INTEREST EXPENSE | |||
Interest on deposits | 3,331 | 4,229 | 6,448 |
Interest on short-term borrowings | 15 | 18 | 27 |
Total interest expense | 3,346 | 4,247 | 6,475 |
NET INTEREST INCOME | 35,525 | 34,042 | 34,876 |
Provision for credit losses | 2,075 | 3,350 | 27,784 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 33,450 | 30,692 | 7,092 |
NONINTEREST INCOME | |||
Service charges on deposit accounts | 2,867 | 2,407 | 2,371 |
Trust and investment fee income | 1,627 | 1,860 | 1,613 |
Gains on sales of investment securities | 0 | 23 | 913 |
Insurance agency commissions income | 8,274 | 9,525 | 10,647 |
Loss on termination of cash flow hedge | 0 | 0 | (1,306) |
Other noninterest income | 2,648 | 2,966 | 3,221 |
Total noninterest income | 15,416 | 16,781 | 17,459 |
NONINTEREST EXPENSE | |||
Salaries and wages | 17,540 | 17,600 | 17,346 |
Employee benefits | 3,905 | 4,092 | 4,094 |
Occupancy expense | 2,420 | 2,339 | 2,344 |
Furniture and equipment expense | 926 | 975 | 1,020 |
Data processing | 3,260 | 3,006 | 2,900 |
Directors’ fees | 470 | 474 | 354 |
Amortization of other intangible assets | 133 | 201 | 296 |
Insurance agency commissions expense | 0 | 906 | 1,798 |
FDIC insurance premium expense | 1,214 | 1,636 | 1,813 |
Write-downs of other real estate owned | 127 | 658 | 1,318 |
Legal and professional fees | 2,380 | 2,048 | 1,539 |
Other noninterest expenses | 4,975 | 5,426 | 5,864 |
Total noninterest expense | 37,350 | 39,361 | 40,686 |
INCOME (LOSS) BEFORE INCOME TAXES | 11,516 | 8,112 | (16,135) |
Income tax expense (benefit) | 4,408 | 3,061 | (6,501) |
NET INCOME (LOSS) | $ 7,108 | $ 5,051 | $ (9,634) |
Basic income (loss) per common share (in dollars per share) | $ 0.56 | $ 0.46 | $ (1.14) |
Diluted income (loss) per common share (in dollars per share) | 0.56 | 0.46 | (1.14) |
Cash dividends paid per common share (in dollars per share) | $ 0.04 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income (loss) | $ 7,108 | $ 5,051 | $ (9,634) |
Securities available for sale: | |||
Unrealized holding (losses) gains on available-for-sale securities | (649) | 1,285 | (2,995) |
Tax effect | 262 | (518) | 1,209 |
Reclassification of gains recognized in net income (loss) | 0 | (23) | (913) |
Tax effect | 0 | 9 | 368 |
Net of tax amount | (387) | 753 | (2,331) |
Cash flow hedging activities: | |||
Unrealized holding gains on cash flow hedging activities | 0 | 0 | 681 |
Tax effect | 0 | 0 | (274) |
Reclassification of losses recognized in net loss | 0 | 0 | 1,306 |
Tax effect | 0 | 0 | (527) |
Net of tax amount | 0 | 0 | 1,186 |
Total other comprehensive (loss) income | (387) | 753 | (1,145) |
Comprehensive income (loss) | $ 6,721 | $ 5,804 | $ (10,779) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balances at Dec. 31, 2012 | $ 114,026 | $ 85 | $ 32,155 | $ 81,078 | $ 708 |
Net income (loss) | (9,634) | 0 | 0 | (9,634) | 0 |
Unrealized loss on available-for-sale securities, net of reclassification adjustment, net of taxes | (2,331) | 0 | 0 | 0 | (2,331) |
Unrealized gains on cash flow hedging activities, net of reclassification adjustment, net of taxes | 1,186 | 0 | 0 | 0 | 1,186 |
Stock-based compensation | 52 | 0 | 52 | 0 | 0 |
Balances at Dec. 31, 2013 | 103,299 | 85 | 32,207 | 71,444 | (437) |
Net income (loss) | 5,051 | 0 | 0 | 5,051 | 0 |
Unrealized loss on available-for-sale securities, net of reclassification adjustment, net of taxes | 753 | 0 | 0 | 0 | 753 |
Unrealized gains on cash flow hedging activities, net of reclassification adjustment, net of taxes | 0 | ||||
Issuance of common stock through public offering, net | 31,279 | 41 | 31,238 | 0 | 0 |
Stock-based compensation | 87 | 0 | 87 | 0 | 0 |
Balances at Dec. 31, 2014 | 140,469 | 126 | 63,532 | 76,495 | 316 |
Net income (loss) | 7,108 | 0 | 0 | 7,108 | 0 |
Unrealized loss on available-for-sale securities, net of reclassification adjustment, net of taxes | (387) | 0 | 0 | 0 | (387) |
Unrealized gains on cash flow hedging activities, net of reclassification adjustment, net of taxes | 0 | ||||
Stock-based compensation | 283 | 0 | 283 | 0 | 0 |
Cash dividends paid | (506) | 0 | 0 | (506) | 0 |
Balances at Dec. 31, 2015 | $ 146,967 | $ 126 | $ 63,815 | $ 83,097 | $ (71) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 7,108 | $ 5,051 | $ (9,634) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Provision for credit losses | 2,075 | 3,350 | 27,784 |
Depreciation and amortization | 2,434 | 2,312 | 2,392 |
Discount accretion on debt securities | (99) | (60) | (43) |
Stock-based compensation expense | 283 | 87 | 78 |
Excess tax benefit from stock-based arrangements | (3) | 0 | (26) |
Deferred income tax expense (benefit) | 3,874 | 2,836 | (6,132) |
Gains on sales of investment securities | 0 | (23) | (913) |
Losses on disposals of premises and equipment | 18 | 82 | 0 |
Losses on sales and write-downs of other real estate owned | 171 | 687 | 1,669 |
Gain on sale of wholesale insurance subsidiary | 0 | (114) | 0 |
Loss on termination of cash flow hedge | 0 | 0 | 1,306 |
Net changes in: | |||
Accrued interest receivable | 205 | (102) | 235 |
Other assets | (870) | 170 | 4,703 |
Accrued interest payable | (66) | (53) | (114) |
Other liabilities | (15) | (1,044) | (1,458) |
Net cash provided by operating activities | 15,115 | 13,179 | 19,847 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from maturities and principal payments of investment securities available for sale | 68,395 | 43,418 | 38,512 |
Proceeds from sales of investment securities available for sale | 0 | 988 | 40,351 |
Proceeds from sales of investment securities held to maturity | 0 | 113 | 0 |
Purchases of investment securities available for sale | (46,102) | (133,006) | (87,243) |
Proceeds from maturities and principal payments of investment securities held to maturity | 432 | 443 | 439 |
Net change in loans | (88,595) | (3,982) | 12,957 |
Proceeds from sale of loans | 0 | 0 | 20,565 |
Purchases of premises and equipment | (1,518) | (2,077) | (545) |
Proceeds from sales of premises and equipment | 0 | 0 | 4 |
Proceeds from sales of other real estate owned | 2,040 | 1,697 | 5,325 |
Proceeds from sale of subsidiary | 0 | 2,878 | 0 |
Return of investment unconsolidated subsidiary | 0 | 0 | 85 |
Net cash (used in) provided by investing activities | (65,348) | (89,528) | 30,450 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Noninterest-bearing deposits | 35,872 | 21,017 | 18,805 |
Interest-bearing deposits | (9,412) | (5,482) | (134,610) |
Short-term borrowings | 1,864 | (5,332) | (3,621) |
Proceeds from issuance of common stock | 0 | 31,279 | 0 |
Excess tax benefit from stock-based arrangements | 3 | 0 | 26 |
Common stock dividends paid | (506) | 0 | 0 |
Net cash provided by (used in) financing activities | 27,821 | 41,482 | (119,400) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (22,412) | (34,867) | (69,103) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 96,223 | 131,090 | 200,193 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 73,811 | 96,223 | 131,090 |
Supplemental cash flow information: | |||
Interest paid | 3,413 | 4,300 | 6,589 |
Income taxes paid | 518 | 243 | 265 |
Transfers from loans to other real estate owned | 2,773 | 2,295 | 3,071 |
Transfers from loans to loans held for sale | 0 | 0 | 23,635 |
Transfers from loans held for sale to loans | $ 0 | $ 3,521 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
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. 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 an insurance producer firm, The Avon-Dixon Agency, LLC, (“Avon-Dixon”) with two specialty lines, Elliott Wilson Insurance (Trucking) and Jack Martin Associates (Marine); and an insurance premium finance company, Mubell Finance, LLC (“Mubell”) (Avon-Dixon and Mubell are collectively referred to as the “Insurance Subsidiaries”). Avon-Dixon and Mubell are wholly-owned subsidiaries of Shore Bancshares, Inc. The Company engages in the trust services business through the trust department at CNB under the trade name Wye Financial & Trust. 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 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. Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. Interest and dividends on investment securities are recognized in interest income on an accrual basis. 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 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 are stated at their principal amount outstanding net of any deferred fees, premiums, discounts 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. 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. The criteria for charge offs are addressed in the Bank’s Collections and Workouts Policy. Per the policy, the recognition of the loss of loans or portions of loans will occur when there is a reasonable probability of loss. When the amount of loss can be readily calculated, the loss will be recognized. In cases where an amount cannot be calculated, specific reserves will be maintained. 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 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 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 2015 and 2014, 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 represents assets acquired in satisfaction of loans either by foreclosure or deeds taken in lieu of foreclosure. Properties acquired are recorded at fair value less estimated selling costs at the time of acquisition, establishing a new cost basis. 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 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. 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, 2012. 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 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. 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. 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. 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. 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. 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 are generally expensed as incurred. The Company incurred advertising costs of approximately $495 thousand, $428 thousand and $848 thousand for the years ended December 31, 2015, 2014, and 2013, respectively. 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 did not 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 adopted ASU No. 2014-14 effective January 1, 2015. The adoption of ASU No. 2014-14 did not have a material impact on the Company's Consolidated Financial Statements. 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. ASU 2015-14, “ Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date ASU 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." Compensation - Stock Compensation ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” ASU No. 2016-1, “Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Talbot Bank entered into a Stipulation and Consent to the Issuance of a Consent Order (the “Consent Agreement”) with the Federal Deposit Insurance Corporation (the “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. On May 11, 2015 the FDIC and the Commissioner terminated the Order. While the Order has been terminated, Talbot Bank will be required to continue to adhere to certain requirements and restrictions based on commitments made to the FDIC and the Commissioner in connection with the termination of the Order, which include, among other things, continued reduction of classified assets and maintenance of capital in excess of regulatory minimums. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 2. INVESTMENT SECURITIES Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale securities: December 31, 2015: U.S. Treasury $ 5,078 $ 1 $ - $ 5,079 U.S. Government agencies 49,630 89 190 49,529 Residential mortgage-backed 156,939 639 662 156,916 Equity 637 4 - 641 Total $ 212,284 $ 733 $ 852 $ 212,165 December 31, 2014: U.S. Treasury $ 5,210 $ 5 $ - $ 5,215 U.S. Government agencies 75,220 87 347 74,960 Residential mortgage-backed 154,525 1,230 452 155,303 Equity 624 6 - 630 Total $ 235,579 $ 1,328 $ 799 $ 236,108 Held-to-maturity securities: December 31, 2015: U.S. Government agencies $ 2,575 $ - $ 60 $ 2,515 States and political subdivisions 1,616 112 - 1,728 Total $ 4,191 $ 112 $ 60 $ 4,243 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 Less than More than Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale securities: December 31, 2015 U.S. Government agencies $ 18,981 $ 57 $ - $ 133 $ 18,981 $ 190 Residential mortgage-backed 43,881 328 21,263 334 65,144 662 Total $ 62,862 $ 385 $ 21,263 $ 467 $ 84,125 $ 852 Held-to-maturity securities: U.S. Government agencies $ - $ - $ 2,515 $ 60 $ 2,515 $ 60 Less than More than Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale securities: December 31, 2014 U.S. Government agencies $ 41,574 $ 138 $ 6,954 $ 209 $ 48,528 $ 347 Residential mortgage-backed 12,933 44 26,828 408 39,761 452 Total $ 54,507 $ 182 $ 33,782 $ 617 $ 88,289 $ 799 Held-to-maturity securities: U.S. Government agencies $ - $ - $ 2,708 $ 83 $ 2,708 $ 83 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. 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 $ 14,695 $ 14,703 $ - $ - Due after one year through five years 37,114 37,092 711 751 Due after five years through ten years 11,319 11,270 403 448 Due after ten years 148,519 148,459 3,077 3,044 211,647 211,524 4,191 4,243 Equity securities 637 641 - - Total $ 212,284 $ 212,165 $ 4,191 $ 4,243 The maturity dates for debt securities are determined using contractual maturity dates. December 31, 2015 December 31, 2014 Amortized Estimated Amortized Estimated (Dollars in thousands) Cost Fair Value Cost Fair Value Pledged available-for-sale securities $ 121,142 $ 121,207 $ 115,162 $ 115,458 There were no obligations of states or political subdivisions with carrying values, as to any issuer, exceeding 10% of stockholders’ equity at December 31, 2015 or 2014. Proceeds from sales of investment securities were $ 0 988 40.4 0 23 913 |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2015 | |
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. (Dollars in thousands) 2015 2014 Construction $ 85,632 $ 69,157 Residential real estate 307,063 273,336 Commercial real estate 330,253 305,788 Commercial 64,911 52,671 Consumer 7,255 9,794 Total loans 795,114 710,746 Allowance for credit losses (8,316) (7,695) Total loans, net $ 786,798 $ 703,051 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, 2015 and 2014, such loans outstanding, both direct and indirect (including guarantees), to directors, their associates and policy-making officers, totaled approximately $ 22.0 18.7 5.5 1.8 2.4 6.2 In the normal course of banking business, risks related to specific loan categories are as follows: Construction loans Construction loans generally finance the construction of residential real estate for builders and individuals for single family dwellings. In addition, the bank periodically finances the construction of commercial projects. Credit risk factors include the borrower’s ability to successfully complete the construction on time and within budget, changing market conditions which could affect the value and marketability of projects, changes in the borrower’s ability or willingness to repay the loan and potentially rising interest rates which can impact both the borrower’s ability to repay and the collateral value. Residential real estate Residential real estate loans are typically made to consumers and are secured by residential real estate. Credit risk arises from the borrower’s continuing financial stability, which can be adversely impacted by job loss, divorce, illness, or personal bankruptcy, among other factors. Also impacting credit risk would be a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the real estate collateral. Commercial real estate Commercial real estate loans consist of both loans secured by owner occupied properties and non-owner occupied where an established banking relationship exists and involves investment properties for warehouse, retail, and office space with a history of occupancy and cash flow. These loans are subject to adverse changes in the local economy and commercial real estate markets. Credit risk associated with owner occupied properties arises from the borrower’s financial stability and the ability of the borrower and the business to repay the loan. Non-owner occupied properties carry the risk of a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies which can adversely impact cash flow. Commercial Commercial loans are secured or unsecured loans for business purposes. Loans are typically secured by accounts receivable, inventory, equipment and/or other assets of the business. Credit risk arises from the successful operation of the business which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy. Consumer Consumer loans include home equity loans and lines, installment loans and personal lines of credit. Credit risk is similar to residential real estate loans above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. (Dollars in thousands) Construction Residential Commercial Commercial Consumer Unallocated Total December 31, 2015 Loans individually evaluated for impairment $ 11,598 $ 7,945 $ 7,762 $ 161 $ 122 $ - $ 27,588 Loans collectively evaluated for impairment 74,034 299,118 322,491 64,750 7,133 - 767,526 Total loans $ 85,632 $ 307,063 $ 330,253 $ 64,911 $ 7,255 $ - $ 795,114 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 619 $ 435 $ 340 $ - $ 7 $ - $ 1,401 Loans collectively evaluated for impairment 1,027 1,746 2,659 558 149 776 6,915 Total allowance for credit losses $ 1,646 $ 2,181 $ 2,999 $ 558 $ 156 $ 776 $ 8,316 (Dollars in thousands) Construction Residential Commercial Commercial Consumer Unallocated Total December 31, 2014 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 (Dollars in thousands) Unpaid Recorded Recorded Related Average Interest December 31, 2015 Impaired nonaccrual loans: Construction $ 11,850 $ 4,647 $ 2,882 $ 588 $ 8,176 $ - Residential real estate 2,563 1,773 487 208 2,767 - Commercial real estate 2,988 1,813 209 9 2,159 - Commercial 175 161 - - 126 - Consumer 128 98 23 7 122 - Total 17,704 8,492 3,601 812 13,350 - Impaired accruing TDRs: Construction 4,069 3,266 803 31 4,080 84 Residential real estate 5,686 2,380 3,306 227 6,947 312 Commercial real estate 5,740 1,702 4,038 331 5,943 254 Commercial - - - - 27 1 Consumer - - - - - - Total 15,495 7,348 8,147 589 16,997 651 Total impaired loans: Construction 15,919 7,913 3,685 619 12,256 84 Residential real estate 8,249 4,153 3,793 435 9,714 312 Commercial real estate 8,728 3,515 4,247 340 8,102 254 Commercial 175 161 - - 153 1 Consumer 128 98 23 7 122 - Total $ 33,199 $ 15,840 $ 11,748 $ 1,401 $ 30,347 $ 651 (Dollars in thousands) Unpaid Recorded Recorded Related Average Interest December 31, 2014 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 (Dollars in thousands) 1/1/15 New Disbursements Charge Reclassification/ Payoffs 12/31/15 Related For the year ended 12/31/2015 Accruing TDRs Construction $ 4,022 $ - $ (95) $ - $ 142 $ - $ 4,069 $ 31 Residential Real Estate 6,368 1,837 (1,195) - (1,324) - 5,686 227 Commercial Real Estate 6,237 - (497) - - - 5,740 331 Commercial 47 - (6) - (41) - - - Consumer - - - - - - - - Total $ 16,674 $ 1,837 $ (1,793) $ - $ (1,223) $ - $ 15,495 $ 589 Nonaccrual TDRs Construction $ 3,321 $ - $ (214) $ (1,058) $ 2,911 $ - $ 4,960 $ 588 Residential Real Estate 3,382 - (26) - (2,911) - 445 141 Commercial Real Estate 346 - (4) (40) (302) - - - Commercial - - - - - - - - Consumer 25 - (2) - - - 23 7 Total $ 7,074 $ - $ (246) $ (1,098) $ (302) $ - $ 5,428 $ 736 Total TDRs $ 23,748 $ 1,837 $ (2,039) $ (1,098) $ *(1,525) $ - $ 20,923 $ 1,325 (Dollars in thousands) 1/1/14 New Disbursements Charge offs Reclassification/ Payoffs 12/31/14 Related 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 * $ 1.3 (Dollars in thousands) Number of Premodification Postmodification Related TDRs: For the year ended December 31, 2015 Construction - $ - $ - $ - Residential real estate 10 1,835 1,837 19 Commercial real estate 1 2,262 2,347 - Commercial - - - - Consumer - - - - Total 11 $ 4,097 $ 4,184 $ 19 For the year ended December 31, 2014 Construction - $ - $ - $ - Residential real estate - - - - Commercial real estate - - - - Commercial - - - - Consumer - - - - Total - $ - $ - $ - (Dollars in thousands) Number of Recorded Related TDRs that subsequently defaulted: For the year ended December 31, 2015 Construction - $ - $ - Residential real estate - - - Commercial real estate 2 279 - Commercial - - - Consumer - - - Total 2 $ 279 $ - TDRs that subsequently defaulted: For the year ended December 31, 2014 Construction - $ - $ - Residential real estate - - - Commercial real estate - - - Commercial - - - Consumer - - - Total - $ - $ - 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, 2015, there were no nonaccrual loans classified as special mention or doubtful and $ 12.1 0 13.4 89 (Dollars in thousands) Pass/Performing Special Substandard Doubtful Total December 31, 2015 Construction $ 70,214 $ 3,903 $ 11,515 $ - $ 85,632 Residential real estate 290,857 8,837 7,369 - 307,063 Commercial real estate 302,438 18,699 9,116 - 330,253 Commercial 63,628 1,075 208 - 64,911 Consumer 7,107 26 122 - 7,255 Total $ 734,244 $ 32,540 $ 28,330 $ - $ 795,114 (Dollars in thousands) Pass/Performing Special Substandard Doubtful Total December 31, 2014 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 Accruing (Dollars in thousands) Current 30-59 60-89 90 days Total past Non- Total December 31, 2015 Construction $ 78,082 $ 21 $ - $ - $ 21 $ 7,529 $ 85,632 Residential real estate 300,563 2,139 2,102 - 4,241 2,259 307,063 Commercial real estate 327,370 - 861 - 861 2,022 330,253 Commercial 64,670 49 31 - 80 161 64,911 Consumer 7,107 13 6 7 26 122 7,255 Total $ 777,792 $ 2,222 $ 3,000 $ 7 $ 5,229 $ 12,093 $ 795,114 Percent of total loans 97.8 % 0.3 % 0.4 % - % 0.7 % 1.5 % 100 % Accruing (Dollars in thousands) Current 30-59 60-89 90 days Total past Non- Total December 31, 2014 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 % 100 % The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for 2015 and 2014. (Dollars in thousands) Construction Residential Commercial Commercial Consumer Unallocated Total 2015 Allowance for credit losses: Beginning balance $ 1,303 $ 2,834 $ 2,379 $ 448 $ 229 $ 502 $ 7,695 Charge-offs (1,058) (283) (920) (396) (67) - (2,724) Recoveries 125 398 379 319 49 - 1,270 Net charge-offs (933) 115 (541) (77) (18) - (1,454) Provision 1,276 (768) 1,161 187 (55) 274 2,075 Ending balance $ 1,646 $ 2,181 $ 2,999 $ 558 $ 156 $ 776 $ 8,316 (Dollars in thousands) Construction Residential Commercial Commercial Consumer Unallocated Total 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 Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $ 581 54 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4. PREMISES AND EQUIPMENT (Dollars in thousands) 2015 2014 Land $ 5,818 $ 5,818 Buildings and land improvements 15,982 13,537 Furniture and equipment 6,710 9,273 28,510 28,628 Accumulated depreciation (11,646) (12,353) Total $ 16,864 $ 16,275 Depreciation expense totaled $ 912 867 936 The Company leases facilities under operating leases. Rental expense for the years ended December 31, 2015, 2014, and 2013 was $ 650 700 744 (Dollars in thousands) 2016 $ 547 2017 426 2018 390 2019 380 2020 250 Thereafter 1,021 Total minimum lease payments $ 3,014 |
INVESTMENT IN UNCONSOLIDATED SU
INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2015 | |
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 40 320 432 112 104 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 0 0 9 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS 2.5 9.4 December 31, 2015 December 31, 2014 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 - $ 15,235 $ (2,637) $ (667) $ 11,931 - Other intangible assets Amortizable Employment agreements $ 440 $ - $ (440) $ - - $ 440 $ - $ (440) $ - - Insurance expirations 1,270 - (1,148) 122 1.4 1,270 - (1,063) 207 2.4 Customer relationships 795 (95) (391) 309 6.4 782 (95) (343) 344 7.0 2,505 (95) (1,979) 431 2,492 (95) (1,846) 551 Unamortizable Carrier relationships - - - - - - - - - - Trade name 780 - - 780 - 780 - - 780 - 780 - - 780 780 - - 780 Total other intangible assets $ 3,285 $ (95) $ (1,979) $ 1,211 $ 3,272 $ (95) $ (1,846) $ 1,331 The aggregate amortization expense was $ 133 201 296 Amortization (Dollars in thousands) Expense Estimate for years ended December 31, 2016 $ 131 2017 84 2018 47 2019 47 2020 47 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure [Text Block] | NOTE 7. OTHER ASSETS (Dollars in thousands) 2015 2014 Nonmarketable investment securities $ 1,621 $ 1,586 Accrued interest receivable 2,458 2,663 Deferred income taxes (1) 12,132 15,744 Prepaid expenses 1,039 750 Other assets 6,670 6,419 Total $ 23,920 $ 27,162 (1) See Note 15 for further discussion. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | NOTE 8. OTHER LIABILITIES (Dollars in thousands) 2015 2014 Accrued interest payable $ 106 $ 172 Other accounts payable 2,775 2,435 Deferred compensation liability 1,464 1,503 Other liabilities 1,695 2,011 Total $ 6,040 $ 6,121 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | NOTE 9. DEPOSITS The approximate amount of certificates of deposit of $250,000 or more was $ 29.1 35.5 (Dollars in thousands) 2015 2014 Due in one year or less $ 163,220 $ 181,847 Due in one to three years 86,719 101,811 Due in three to five years 39,855 47,969 Total $ 289,794 $ 331,627 As of December 31, 2015 and 2014, deposits, both direct and indirect, to directors, their associates and policy-making officers, totaled approximately $ 5.6 5.3 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | NOTE 10. SHORT-TERM BORROWINGS 2015 2014 (Dollars in thousands) Amount Rate Amount Rate Average for the Year Retail repurchase agreements $ 6,226 0.24 % $ 8,061 0.22 % At Year End Retail repurchase agreements $ 6,672 0.23 % $ 4,808 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, 2015 | |
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 $491 thousand, $545 thousand, and $520 thousand for 2015, 2014, and 2013, respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, the Company maintained the Shore Bancshares, Inc. 2006 Stock and Incentive Compensation Plan (“2006 Equity Plan”) under which it may issue shares of common stock or grant other equity-based awards. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date over a three- to five-year period of time, and, in the case of stock options, expire 7 631,972 456,182 (Dollars in thousands) 2015 2014 2013 Stock-based compensation expense $ 283 $ 87 $ 78 Excess tax expense related to stock-based compensation 3 - 26 December 31, (Dollars in thousands) 2015 2014 2013 Unrecognized stock-based compensation expense $ 14 $ 59 $ 136 Weighted average period unrecognized expense is expected to be recognized 0.3 years 0.8 years 1.7 years Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Number Weighted Average Number Weighted Average Number Weighted Average of Shares Fair Value of Shares Fair Value of Shares Fair Value Nonvested at beginning of year 14,251 $ 8.51 13,930 $ 8.33 6,548 $ 14.89 Granted 12,647 9.21 3,654 9.57 13,930 8.33 Vested (14,410) 8.93 (3,333) 8.93 (6,548) 14.89 Cancelled - - - - - - Nonvested at end of year 12,488 $ 8.74 14,251 $ 8.51 13,930 $ 8.33 The total fair value of restricted stock awards that vested was $ 129 30 36 Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 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 27,108 $ 6.64 40,662 $ 6.64 54,216 $ 6.64 Granted 34,219 9.18 - - - - Exercised - - (3,593) 6.64 - - Expired/Cancelled - - (9,961) 6.64 (13,554) 6.64 Outstanding at end of year 61,327 $ 8.05 27,108 $ 6.64 40,662 $ 6.64 Exercisable at end of year 44,218 $ 7.62 - $ - - $ - The weighted average fair value of stock options granted during 2015 was $ 3.44 Dividend yield 0 % Expected volatility 32 % Risk-free interest rate 1.97 % Expected contract life (in years) 7 At December 31, 2015, the aggregate intrinsic value of the options outstanding under the 2006 Equity Plan was $ 173 10.88 44,218 13,554 At December 31, 2015, the weighted average remaining contract life of options outstanding was 6.3 |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
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 2015, 2014 or 2013. (Dollars in thousands) 2015 2014 2013 Deferred compensation contribution $ - $ - $ 9 December 31, (Dollars in thousands) 2015 2014 Deferred compensation liability $ 444 $ 445 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. (Dollars in thousands) 2015 2014 Cash surrender value $ 3,448 $ 3,360 Accrued benefit obligation 1,020 1,058 |
OTHER EXPENSES
OTHER EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Nonoperating Income and Expense [Text Block] | NOTE 14. OTHER EXPENSES (Dollars in thousands) 2015 2014 2013 Advertising and marketing $ 495 $ 428 $ 848 Other customer expense 172 396 414 Other expense 2,168 2,070 2,152 Other loan expense 515 894 934 Software expense 697 664 613 Travel and entertainment expense 303 288 287 Trust professional fees 625 686 616 Total noninterest expense $ 4,975 $ 5,426 $ 5,864 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 15. INCOME TAXES (Dollars in thousands) 2015 2014 2013 Current tax expense (benefit): Federal $ 247 $ - $ (459) State 287 225 90 534 225 (369) Deferred income tax expense (benefit): Federal 3,369 2,516 (4,592) State 505 320 (1,540) 3,874 2,836 (6,132) Total income tax expense (benefit) $ 4,408 $ 3,061 $ (6,501) (Dollars in thousands) 2015 2014 2013 Tax at federal statutory rate 34.0 % 34.0 % (34.0) % Tax effect of: Tax-exempt income (0.4) (0.9) (0.4) Other non-deductible expenses 0.2 0.3 0.2 State income taxes, net of federal benefit 4.5 4.4 (5.9) Other (0.1) (0.1) (0.2) Actual income tax expense (benefit) rate 38.2 % 37.7 % (40.3) % (Dollars in thousands) 2015 2014 Deferred tax assets: Allowance for credit losses $ 3,316 $ 3,072 Reserve for off-balance sheet commitments 121 121 Net operating loss carry forward 9,069 13,265 Write-downs of other real estate owned 308 355 Deferred income 1,155 1,132 Unrealized gains on available-for-sale securities 48 - Accrued expenses 946 918 Other 191 80 Total deferred tax assets 15,154 18,943 Deferred tax liabilities: Depreciation 271 372 Amortization on loans FMV adjustment 140 - Purchase accounting adjustments 1,988 1,751 Deferred capital gain on branch sale 411 425 Unrealized gains on available-for-sale securities - 214 Other 212 437 Total deferred tax liabilities 3,022 3,199 Net deferred tax assets $ 12,132 $ 15,744 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 11.5 8.1 Based on the aforementioned considerations, the Company has 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 tax assets. |
EARNINGS_(LOSS) PER COMMON SHAR
EARNINGS/(LOSS) PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2015 | |
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. (In thousands, except per share data) 2015 2014 2013 Net income (loss) $ 7,108 $ 5,051 $ (9,634) Weighted average shares outstanding basic 12,629 10,945 8,461 Dilutive effect of common stock equivalents 10 8 - Weighted average shares outstanding diluted 12,639 10,953 8,461 Income (loss) per common share basic $ 0.56 $ 0.46 $ (1.14) Income (loss) per common share diluted $ 0.56 $ 0.46 $ (1.14) The calculations of diluted income (loss) per share excluded weighted average common stock equivalents of 0 for 2015, 0 for 2014, and 51 thousand for 2013 because the effect of including them would have been antidilutive. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
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. Basel III The FRB and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision's (“BCBS”) capital guidelines for U.S. banks. Under the final rules, minimum requirements will increase for both the quantity and quality of capital held by the Company. The rules include a new common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5 4.0 8.0 0.625 2.5 The phase-in period for the final rules became effective for the Company on January 1, 2015, with full compliance with all of the final rules’ requirements phased in over a multi-year schedule, to be fully phased-in by January 1, 2019. 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, 2015, management believes that Shore Bancshares, Inc., The Talbot Bank and CNB met all capital adequacy requirements to which they are subject. As of December 31, 2015, the most recent notification from the Federal Deposit Insurance Corporation categorized Talbot Bank and CNB as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Banks must maintain minimum common equity Tier 1, Tier 1 risk-based and total risk-based capital ratios, and Tier 1 leverage ratios, which are described below. The minimum ratios for capital adequacy purposes are 4.50 6.00 8.00 4.00 6.50 8.00 10.00 5.00 Common Total Net Common Tier 1 Total Equity/ Risk- Risk- Adjusted Equity Risk-Based Risk-Based Tier 1 December 31, 2015 (1) Tier 1 Based Weighted Average Tier 1 ratio Capital Capital Leverage (Dollars in thousands) Capital Capital Assets Total Assets (2) Ratio Ratio Ratio Company $ 126,024 $ 134,643 $ 807,807 $ 1,116,692 15.60 % 15.60 % 16.67 % 11.29 % Talbot Bank 59,692 64,405 448,634 613,945 13.31 13.31 14.36 9.72 CNB 48,051 51,957 354,278 486,404 13.56 13.56 14.67 9.88 December 31, 2014 (1) Tier 1 Total Net Adjusted Common Tier 1 Total Tier 1 Company $ 112,511 $ 120,510 $ 736,763 $ 1,075,674 n/a 15.27 % 16.36 % 10.46 % Talbot Bank 51,637 55,910 394,788 579,781 n/a 13.08 14.16 8.91 CNB 44,869 48,594 331,089 485,042 n/a 13.55 14.68 9.25 (1) The capital ratios as of December 31, 2015 reflect the adoption of Basel III in effect beginning January 1, 2015 while ratios for the prior period represent the previous capital rules under Basel I. (2) The Common Equity Tier 1 ratio is a new ratio under Basel III and represents common equity, less goodwill and intangible assets net of any deferred tax liabilities, divided by risk-weighted assets. 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 $ 280 7.7 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2015 | |
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. (Dollars in thousands) Accumulated net Accumulated Balance, December 31, 2014 $ 316 $ 316 Other comprehensive (loss) income (387) (387) Reclassification of (gains) losses recognized - - Balance, December 31, 2015 $ (71) $ (71) Balance, December 31, 2013 $ (437) $ (437) Other comprehensive income 767 767 Reclassification of (gains) losses recognized (14) (14) Balance, December 31, 2014 $ 316 $ 316 Details about Accumulated Other Amount Reclassified from Affected Line Item in the Statement Where Year Ended December 31, 2015 2014 2013 Realized gain on sale of investment securities $ - $ 14 $ 545 Gain on sale of investment securities Total Reclassification for the Period $ - $ 14 $ 545 |
LINES OF CREDIT
LINES OF CREDIT | 12 Months Ended |
Dec. 31, 2015 | |
Line of Credit Facility [Abstract] | |
Line Of Credit Disclosure [Text Block] | NOTE 19. LINES OF CREDIT The Banks had $13.0 million and $15.5 million in federal funds lines of credit and a reverse repurchase agreement available on a short-term basis from correspondent banks at December 31, 2015 and 2014. In addition, the Banks had credit availability of approximately $130.2 million and $70.9 million from the Federal Home Loan Bank at December 31, 2015 and 2014, respectively. These lines of credit are paid for monthly on a fee basis of 0.10%. 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, 2015 or 2014. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
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. (Dollars in thousands) Fair Value Quoted Prices Significant Other Significant December 31, 2015 Securities available for sale: U.S. Treasury $ 5,079 $ 5,079 $ - $ - U.S. Government agencies 49,529 - 49,529 - Mortgage-backed 156,916 - 156,916 - Equity 641 - 641 - Total $ 212,165 $ 5,079 $ 207,086 $ - (Dollars in thousands) Fair Value Quoted Prices Significant Other Significant December 31, 2014 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 $ - 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, 2015 and 2014, 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, 2015 and 2014, the Company had no loans held for sale. 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, 2015 and 2014, 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, 2015 and 2014. No assets were transferred from one hierarchy level to another during 2015 or 2014. (Dollars in thousands) Fair Value Quoted Prices Significant Other Significant December 31, 2015 Impaired loans Construction $ 10,979 $ - $ 10,979 $ - Residential real estate 7,510 - 7,510 - Commercial real estate 7,422 - 7,422 - Commercial 161 - 161 - Consumer 115 - 115 - Total impaired loans 26,187 - 26,187 - Other real estate owned 4,252 - 4,252 - Total assets measured at fair value on a nonrecurring basis $ 30,439 $ - $ 30,439 $ - (Dollars in thousands) Fair Value Quoted Prices Significant Other Significant December 31, 2014 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 $ - 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. Deposits and Short-Term Borrowings 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. December 31, 2015 December 31, 2014 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 2 inputs Cash and cash equivalents $ 73,811 $ 73,811 $ 96,223 $ 96,223 Investment securities held to maturity 4,191 4,243 4,630 4,694 Loans, net 786,798 788,187 703,051 724,771 Financial liabilities Level 2 inputs Deposits $ 975,464 $ 922,161 $ 949,004 $ 948,605 Short-term borrowings 6,672 6,672 4,808 4,808 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2015 | |
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 2.97 70 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 The aggregate fair value of the interest rate caps was $ 14 0 681 695 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 |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended |
Dec. 31, 2015 | |
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. (Dollars in thousands) 2015 2014 Commitments to extend credit $ 166,931 $ 127,080 Letters of credit 7,087 7,347 Total $ 174,018 $ 134,427 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 23. RELATED PARTY TRANSACTIONS CNB bank leases office space for its trust department, Wye Financial & Trust, at an annual rent of $55 thousand for both 2015 and 2014, excluding certain pass through expenses, from a limited liability company in which the chief executive officer of Shore Bancshares Inc. holds a 50% interest. In January of 2016, the office space was sold by the limited liability company to an outside party. Shore Bancshares Inc. and its bank and insurance subsidiaries on occasion rent ballroom space from the Tidewater Inn located in Easton Maryland, to hold company meetings and events. A director of the board of Shore Bancshares Inc. holds a 61% interest in a limited liability company which owns the Tidewater Inn. During 2015 and 2014, approximately $38 thousand and $29 thousand in expenses were paid for rental and catering services. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies Disclosure [Text Block] | NOTE 24. 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 INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE 25. PARENT COMPANY FINANCIAL INFORMATION Condensed Balance Sheets December 31, (Dollars in thousands) 2015 2014 Assets Cash $ 1,899 $ 2,101 Investment securities 12,246 9,723 Investment in subsidiaries 129,353 126,857 Premises and equipment, net 3,598 3,158 Other assets 2,419 1,329 Total assets $ 149,515 $ 143,168 Liabilities Accrued interest payable $ 1 $ 1 Other liabilities 1,204 855 Long-term debt 1,343 1,843 Total liabilities 2,548 2,699 Stockholders’ equity Common stock 126 126 Additional paid in capital 63,815 63,532 Retained earnings 83,097 76,495 Accumulated other comprehensive income (loss) (71) 316 Total stockholders’ equity 146,967 140,469 Total liabilities and stockholders’ equity $ 149,515 $ 143,168 For the Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Income Dividends from subsidiaries $ 1,045 $ 200 $ 2,163 Management and other fees from subsidiaries 8,723 7,933 6,226 Other income 228 110 31 Total income 9,996 8,243 8,420 Expenses Interest expense 61 80 88 Salaries and employee benefits 5,536 5,321 4,447 Occupancy and equipment expense 325 541 508 Other operating expenses 3,215 2,387 1,853 Total expenses 9,137 8,329 6,896 Income (loss) before income tax benefit and equity in undistributed net income (loss) of subsidiaries 859 (86) 1,524 Income tax benefit (65) (107) (61) Income before equity in undistributed net income (loss) of subsidiaries 924 21 1,585 Equity in undistributed net income (loss) of subsidiaries 6,184 5,030 (11,219) Net income (loss) $ 7,108 $ 5,051 $ (9,634) For the Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Cash flows from operating activities: Net income (loss) $ 7,108 $ 5,051 $ (9,634) Adjustments to reconcile net (income) loss to cash provided by operating activities: Equity in undistributed net (income) loss of subsidiaries (6,184) (5,030) 11,219 Depreciation and amortization 336 379 386 Stock-based compensation expense 283 87 78 Excess tax benefit from stock-based arrangements (3) - (26) Net (increase) decrease in other assets (1,108) (121) 128 Net increase (decrease) in other liabilities 328 271 (53) Net cash provided by operating activities 760 637 2,098 Cash flows from investing activities: Proceeds from maturities and principal payments of investment securities available for sale 1,418 442 - Purchases of securities (4,054) (10,112) - Purchases of premises and equipment (672) (632) (307) Cash received from merged subsidiary 3,349 Investment in subsidiaries - (20,000) (1,650) Net cash provided by (used in) investing activities 41 (30,302) (1,957) Cash flows from financing activities: Repayment of long-term debt (500) (500) - Excess tax benefit from stock-based arrangements 3 - 26 Proceeds from issuance of common stock - 31,279 - Common stock dividends paid (506) - - Net cash (used in) provided by financing activities (1,003) 30,779 26 Net (decrease) increase in cash and cash equivalents (202) 1,114 167 Cash and cash equivalents at beginning of year 2,101 987 820 Cash and cash equivalents at end of year $ 1,899 $ 2,101 $ 987 |
QUARTERLY FINANCIAL RESULTS (un
QUARTERLY FINANCIAL RESULTS (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | NOTE 26. QUARTERLY FINANCIAL RESULTS (unaudited) (In thousands, except per share data) First Second Third Fourth 2015 Interest income $ 9,445 $ 9,542 $ 9,837 $ 10,047 Net interest income 8,539 8,683 9,010 9,293 Provision for credit losses 650 540 410 475 Income (loss) before income taxes 2,270 2,631 3,109 3,506 Net income (loss) 1,409 1,627 1,909 2,163 Basic earnings (loss) per common share $ 0.11 $ 0.13 $ 0.15 $ 0.17 Diluted earnings (loss) per common share $ 0.11 $ 0.13 $ 0.15 $ 0.17 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 (Loss) income before income taxes 2,021 2,108 2,036 1,947 Net (loss) income 1,258 1,305 1,262 1,226 Basic (loss) earnings per common share $ 0.15 $ 0.13 $ 0.10 $ 0.10 Diluted (loss) earnings per common share $ 0.15 $ 0.13 $ 0.10 $ 0.10 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 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, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 27. 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. Community Insurance Products Parent (Dollars in thousands) Banking and Services Company Total 2015 Interest income $ 38,652 $ - $ 219 $ 38,871 Interest expense (3,346) - - (3,346) Provision for credit losses (2,075) - - (2,075) Noninterest income 7,135 8,297 (16) 15,416 Noninterest expense (21,480) (6,984) (8,886) (37,350) Net intersegment (expense) income (7,718) (781) 8,499 - (Loss) income before income taxes 11,168 532 (184) 11,516 Income tax benefit (expense) (4,274) (204) 70 (4,408) Net (loss) income $ 6,894 $ 328 $ (114) $ 7,108 Total assets $ 1,107,367 $ 9,984 $ 17,792 $ 1,135,143 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 |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 an insurance producer firm, The Avon-Dixon Agency, LLC, (“Avon-Dixon”) with two specialty lines, Elliott Wilson Insurance (Trucking) and Jack Martin Associates (Marine); and an insurance premium finance company, Mubell Finance, LLC (“Mubell”) (Avon-Dixon and Mubell are collectively referred to as the “Insurance Subsidiaries”). Avon-Dixon and Mubell are wholly-owned subsidiaries of Shore Bancshares, Inc. The Company engages in the trust services business through the trust department at CNB under the trade name Wye Financial & Trust. |
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. Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. Interest and dividends on investment securities are recognized in interest income on an accrual basis. 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, premiums, discounts 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. |
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. The criteria for charge offs are addressed in the Bank’s Collections and Workouts Policy. Per the policy, the recognition of the loss of loans or portions of loans will occur when there is a reasonable probability of loss. When the amount of loss can be readily calculated, the loss will be recognized. In cases where an amount cannot be calculated, specific reserves will be maintained. 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 2015 and 2014, 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 fair value less estimated selling costs at the time of acquisition, establishing a new cost basis. 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, 2012. |
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. 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 $495 thousand, $428 thousand and $848 thousand for the years ended December 31, 2015, 2014, and 2013, respectively. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Standards 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 did not 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 adopted ASU No. 2014-14 effective January 1, 2015. The adoption of ASU No. 2014-14 did not have a material impact on the Company's Consolidated Financial Statements. 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. ASU 2015-14, “ Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date ASU 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." Compensation - Stock Compensation ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” ASU No. 2016-1, “Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. |
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 (the “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. On May 11, 2015 the FDIC and the Commissioner terminated the Order. While the Order has been terminated, Talbot Bank will be required to continue to adhere to certain requirements and restrictions based on commitments made to the FDIC and the Commissioner in connection with the termination of the Order, which include, among other things, continued reduction of classified assets and maintenance of capital in excess of regulatory minimums. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015: U.S. Treasury $ 5,078 $ 1 $ - $ 5,079 U.S. Government agencies 49,630 89 190 49,529 Residential mortgage-backed 156,939 639 662 156,916 Equity 637 4 - 641 Total $ 212,284 $ 733 $ 852 $ 212,165 December 31, 2014: U.S. Treasury $ 5,210 $ 5 $ - $ 5,215 U.S. Government agencies 75,220 87 347 74,960 Residential mortgage-backed 154,525 1,230 452 155,303 Equity 624 6 - 630 Total $ 235,579 $ 1,328 $ 799 $ 236,108 Held-to-maturity securities: December 31, 2015: U.S. Government agencies $ 2,575 $ - $ 60 $ 2,515 States and political subdivisions 1,616 112 - 1,728 Total $ 4,191 $ 112 $ 60 $ 4,243 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 |
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, 2015. Less than More than Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale securities: December 31, 2015 U.S. Government agencies $ 18,981 $ 57 $ - $ 133 $ 18,981 $ 190 Residential mortgage-backed 43,881 328 21,263 334 65,144 662 Total $ 62,862 $ 385 $ 21,263 $ 467 $ 84,125 $ 852 Held-to-maturity securities: U.S. Government agencies $ - $ - $ 2,515 $ 60 $ 2,515 $ 60 Less than More than Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale securities: December 31, 2014 U.S. Government agencies $ 41,574 $ 138 $ 6,954 $ 209 $ 48,528 $ 347 Residential mortgage-backed 12,933 44 26,828 408 39,761 452 Total $ 54,507 $ 182 $ 33,782 $ 617 $ 88,289 $ 799 Held-to-maturity securities: U.S. Government agencies $ - $ - $ 2,708 $ 83 $ 2,708 $ 83 |
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, 2015. 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 $ 14,695 $ 14,703 $ - $ - Due after one year through five years 37,114 37,092 711 751 Due after five years through ten years 11,319 11,270 403 448 Due after ten years 148,519 148,459 3,077 3,044 211,647 211,524 4,191 4,243 Equity securities 637 641 - - Total $ 212,284 $ 212,165 $ 4,191 $ 4,243 |
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, 2015 December 31, 2014 Amortized Estimated Amortized Estimated (Dollars in thousands) Cost Fair Value Cost Fair Value Pledged available-for-sale securities $ 121,142 $ 121,207 $ 115,162 $ 115,458 |
LOANS AND ALLOWANCE FOR CREDI37
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014. (Dollars in thousands) 2015 2014 Construction $ 85,632 $ 69,157 Residential real estate 307,063 273,336 Commercial real estate 330,253 305,788 Commercial 64,911 52,671 Consumer 7,255 9,794 Total loans 795,114 710,746 Allowance for credit losses (8,316) (7,695) Total loans, net $ 786,798 $ 703,051 |
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, 2015 and 2014. (Dollars in thousands) Construction Residential Commercial Commercial Consumer Unallocated Total December 31, 2015 Loans individually evaluated for impairment $ 11,598 $ 7,945 $ 7,762 $ 161 $ 122 $ - $ 27,588 Loans collectively evaluated for impairment 74,034 299,118 322,491 64,750 7,133 - 767,526 Total loans $ 85,632 $ 307,063 $ 330,253 $ 64,911 $ 7,255 $ - $ 795,114 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 619 $ 435 $ 340 $ - $ 7 $ - $ 1,401 Loans collectively evaluated for impairment 1,027 1,746 2,659 558 149 776 6,915 Total allowance for credit losses $ 1,646 $ 2,181 $ 2,999 $ 558 $ 156 $ 776 $ 8,316 (Dollars in thousands) Construction Residential Commercial Commercial Consumer Unallocated Total December 31, 2014 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 |
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, 2015 and 2014. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken. (Dollars in thousands) Unpaid Recorded Recorded Related Average Interest December 31, 2015 Impaired nonaccrual loans: Construction $ 11,850 $ 4,647 $ 2,882 $ 588 $ 8,176 $ - Residential real estate 2,563 1,773 487 208 2,767 - Commercial real estate 2,988 1,813 209 9 2,159 - Commercial 175 161 - - 126 - Consumer 128 98 23 7 122 - Total 17,704 8,492 3,601 812 13,350 - Impaired accruing TDRs: Construction 4,069 3,266 803 31 4,080 84 Residential real estate 5,686 2,380 3,306 227 6,947 312 Commercial real estate 5,740 1,702 4,038 331 5,943 254 Commercial - - - - 27 1 Consumer - - - - - - Total 15,495 7,348 8,147 589 16,997 651 Total impaired loans: Construction 15,919 7,913 3,685 619 12,256 84 Residential real estate 8,249 4,153 3,793 435 9,714 312 Commercial real estate 8,728 3,515 4,247 340 8,102 254 Commercial 175 161 - - 153 1 Consumer 128 98 23 7 122 - Total $ 33,199 $ 15,840 $ 11,748 $ 1,401 $ 30,347 $ 651 (Dollars in thousands) Unpaid Recorded Recorded Related Average Interest December 31, 2014 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 |
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, 2015 and December 31, 2014. (Dollars in thousands) 1/1/15 New Disbursements Charge Reclassification/ Payoffs 12/31/15 Related For the year ended 12/31/2015 Accruing TDRs Construction $ 4,022 $ - $ (95) $ - $ 142 $ - $ 4,069 $ 31 Residential Real Estate 6,368 1,837 (1,195) - (1,324) - 5,686 227 Commercial Real Estate 6,237 - (497) - - - 5,740 331 Commercial 47 - (6) - (41) - - - Consumer - - - - - - - - Total $ 16,674 $ 1,837 $ (1,793) $ - $ (1,223) $ - $ 15,495 $ 589 Nonaccrual TDRs Construction $ 3,321 $ - $ (214) $ (1,058) $ 2,911 $ - $ 4,960 $ 588 Residential Real Estate 3,382 - (26) - (2,911) - 445 141 Commercial Real Estate 346 - (4) (40) (302) - - - Commercial - - - - - - - - Consumer 25 - (2) - - - 23 7 Total $ 7,074 $ - $ (246) $ (1,098) $ (302) $ - $ 5,428 $ 736 Total TDRs $ 23,748 $ 1,837 $ (2,039) $ (1,098) $ *(1,525) $ - $ 20,923 $ 1,325 (Dollars in thousands) 1/1/14 New Disbursements Charge offs Reclassification/ Payoffs 12/31/14 Related 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 * $ 1.3 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following tables provide information on loans that were modified and considered TDRs during 2015 and 2014. (Dollars in thousands) Number of Premodification Postmodification Related TDRs: For the year ended December 31, 2015 Construction - $ - $ - $ - Residential real estate 10 1,835 1,837 19 Commercial real estate 1 2,262 2,347 - Commercial - - - - Consumer - - - - Total 11 $ 4,097 $ 4,184 $ 19 For the year ended December 31, 2014 Construction - $ - $ - $ - Residential real estate - - - - Commercial real estate - - - - Commercial - - - - Consumer - - - - Total - $ - $ - $ - |
Troubled Debt Restructurings that Defaulted on Financing Receivables [Table Text Block] | The following tables provide information on TDRs that defaulted during 2015 and 2014. Generally, a loan is considered in default when principal or interest is past due 90 days or more. (Dollars in thousands) Number of Recorded Related TDRs that subsequently defaulted: For the year ended December 31, 2015 Construction - $ - $ - Residential real estate - - - Commercial real estate 2 279 - Commercial - - - Consumer - - - Total 2 $ 279 $ - TDRs that subsequently defaulted: For the year ended December 31, 2014 Construction - $ - $ - Residential real estate - - - Commercial real estate - - - Commercial - - - Consumer - - - Total - $ - $ - |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables provide information on loan risk ratings as of December 31, 2015 and 2014. (Dollars in thousands) Pass/Performing Special Substandard Doubtful Total December 31, 2015 Construction $ 70,214 $ 3,903 $ 11,515 $ - $ 85,632 Residential real estate 290,857 8,837 7,369 - 307,063 Commercial real estate 302,438 18,699 9,116 - 330,253 Commercial 63,628 1,075 208 - 64,911 Consumer 7,107 26 122 - 7,255 Total $ 734,244 $ 32,540 $ 28,330 $ - $ 795,114 (Dollars in thousands) Pass/Performing Special Substandard Doubtful Total December 31, 2014 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 |
Past Due Financing Receivables [Table Text Block] | The following tables provide information on the aging of the loan portfolio as of December 31, 2015 and 2014. Accruing (Dollars in thousands) Current 30-59 60-89 90 days Total past Non- Total December 31, 2015 Construction $ 78,082 $ 21 $ - $ - $ 21 $ 7,529 $ 85,632 Residential real estate 300,563 2,139 2,102 - 4,241 2,259 307,063 Commercial real estate 327,370 - 861 - 861 2,022 330,253 Commercial 64,670 49 31 - 80 161 64,911 Consumer 7,107 13 6 7 26 122 7,255 Total $ 777,792 $ 2,222 $ 3,000 $ 7 $ 5,229 $ 12,093 $ 795,114 Percent of total loans 97.8 % 0.3 % 0.4 % - % 0.7 % 1.5 % 100 % Accruing (Dollars in thousands) Current 30-59 60-89 90 days Total past Non- Total December 31, 2014 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 % 100 % |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | 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 2015 Allowance for credit losses: Beginning balance $ 1,303 $ 2,834 $ 2,379 $ 448 $ 229 $ 502 $ 7,695 Charge-offs (1,058) (283) (920) (396) (67) - (2,724) Recoveries 125 398 379 319 49 - 1,270 Net charge-offs (933) 115 (541) (77) (18) - (1,454) Provision 1,276 (768) 1,161 187 (55) 274 2,075 Ending balance $ 1,646 $ 2,181 $ 2,999 $ 558 $ 156 $ 776 $ 8,316 (Dollars in thousands) Construction Residential Commercial Commercial Consumer Unallocated Total 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 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The following table provides information on premises and equipment at December 31, 2015 and 2014. (Dollars in thousands) 2015 2014 Land $ 5,818 $ 5,818 Buildings and land improvements 15,982 13,537 Furniture and equipment 6,710 9,273 28,510 28,628 Accumulated depreciation (11,646) (12,353) Total $ 16,864 $ 16,275 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum annual rental payments are approximately as follows: (Dollars in thousands) 2016 $ 547 2017 426 2018 390 2019 380 2020 250 Thereafter 1,021 Total minimum lease payments $ 3,014 |
GOODWILL AND OTHER INTANGIBLE39
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014. The Community Banking segment had goodwill of $ 2.5 9.4 December 31, 2015 December 31, 2014 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 - $ 15,235 $ (2,637) $ (667) $ 11,931 - Other intangible assets Amortizable Employment agreements $ 440 $ - $ (440) $ - - $ 440 $ - $ (440) $ - - Insurance expirations 1,270 - (1,148) 122 1.4 1,270 - (1,063) 207 2.4 Customer relationships 795 (95) (391) 309 6.4 782 (95) (343) 344 7.0 2,505 (95) (1,979) 431 2,492 (95) (1,846) 551 Unamortizable Carrier relationships - - - - - - - - - - Trade name 780 - - 780 - 780 - - 780 - 780 - - 780 780 - - 780 Total other intangible assets $ 3,285 $ (95) $ (1,979) $ 1,211 $ 3,272 $ (95) $ (1,846) $ 1,331 |
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, 2016 $ 131 2017 84 2018 47 2019 47 2020 47 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014. (Dollars in thousands) 2015 2014 Nonmarketable investment securities $ 1,621 $ 1,586 Accrued interest receivable 2,458 2,663 Deferred income taxes (1) 12,132 15,744 Prepaid expenses 1,039 750 Other assets 6,670 6,419 Total $ 23,920 $ 27,162 (1) See Note 15 for further discussion. |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities [Table Text Block] | The Company had the following other liabilities at December 31, 2015 and 2014. (Dollars in thousands) 2015 2014 Accrued interest payable $ 106 $ 172 Other accounts payable 2,775 2,435 Deferred compensation liability 1,464 1,503 Other liabilities 1,695 2,011 Total $ 6,040 $ 6,121 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits [Table Text Block] | The following table provides information on the approximate maturities of total time deposits at December 31, 2015 and 2014. (Dollars in thousands) 2015 2014 Due in one year or less $ 163,220 $ 181,847 Due in one to three years 86,719 101,811 Due in three to five years 39,855 47,969 Total $ 289,794 $ 331,627 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014. 2015 2014 (Dollars in thousands) Amount Rate Amount Rate Average for the Year Retail repurchase agreements $ 6,226 0.24 % $ 8,061 0.22 % At Year End Retail repurchase agreements $ 6,672 0.23 % $ 4,808 0.23 % |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015, 2014, and 2013. (Dollars in thousands) 2015 2014 2013 Stock-based compensation expense $ 283 $ 87 $ 78 Excess tax expense related to stock-based compensation 3 - 26 December 31, (Dollars in thousands) 2015 2014 2013 Unrecognized stock-based compensation expense $ 14 $ 59 $ 136 Weighted average period unrecognized expense is expected to be recognized 0.3 years 0.8 years 1.7 years |
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 three years ended December 31, 2015. Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Number Weighted Average Number Weighted Average Number Weighted Average of Shares Fair Value of Shares Fair Value of Shares Fair Value Nonvested at beginning of year 14,251 $ 8.51 13,930 $ 8.33 6,548 $ 14.89 Granted 12,647 9.21 3,654 9.57 13,930 8.33 Vested (14,410) 8.93 (3,333) 8.93 (6,548) 14.89 Cancelled - - - - - - Nonvested at end of year 12,488 $ 8.74 14,251 $ 8.51 13,930 $ 8.33 |
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 three years ended December 31, 2015. Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 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 27,108 $ 6.64 40,662 $ 6.64 54,216 $ 6.64 Granted 34,219 9.18 - - - - Exercised - - (3,593) 6.64 - - Expired/Cancelled - - (9,961) 6.64 (13,554) 6.64 Outstanding at end of year 61,327 $ 8.05 27,108 $ 6.64 40,662 $ 6.64 Exercisable at end of year 44,218 $ 7.62 - $ - - $ - |
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 2015. Dividend yield 0 % Expected volatility 32 % Risk-free interest rate 1.97 % Expected contract life (in years) 7 |
DEFERRED COMPENSATION (Tables)
DEFERRED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015, 2014, and 2013 and the related deferred compensation liability at December 31, 2015 and 2014. (Dollars in thousands) 2015 2014 2013 Deferred compensation contribution $ - $ - $ 9 December 31, (Dollars in thousands) 2015 2014 Deferred compensation liability $ 444 $ 445 |
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, 2015 and 2014. (Dollars in thousands) 2015 2014 Cash surrender value $ 3,448 $ 3,360 Accrued benefit obligation 1,020 1,058 |
OTHER EXPENSES (Tables)
OTHER EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Advertising and marketing $ 495 $ 428 $ 848 Other customer expense 172 396 414 Other expense 2,168 2,070 2,152 Other loan expense 515 894 934 Software expense 697 664 613 Travel and entertainment expense 303 288 287 Trust professional fees 625 686 616 Total noninterest expense $ 4,975 $ 5,426 $ 5,864 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Current tax expense (benefit): Federal $ 247 $ - $ (459) State 287 225 90 534 225 (369) Deferred income tax expense (benefit): Federal 3,369 2,516 (4,592) State 505 320 (1,540) 3,874 2,836 (6,132) Total income tax expense (benefit) $ 4,408 $ 3,061 $ (6,501) |
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) 2015 2014 2013 Tax at federal statutory rate 34.0 % 34.0 % (34.0) % Tax effect of: Tax-exempt income (0.4) (0.9) (0.4) Other non-deductible expenses 0.2 0.3 0.2 State income taxes, net of federal benefit 4.5 4.4 (5.9) Other (0.1) (0.1) (0.2) Actual income tax expense (benefit) rate 38.2 % 37.7 % (40.3) % |
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) 2015 2014 Deferred tax assets: Allowance for credit losses $ 3,316 $ 3,072 Reserve for off-balance sheet commitments 121 121 Net operating loss carry forward 9,069 13,265 Write-downs of other real estate owned 308 355 Deferred income 1,155 1,132 Unrealized gains on available-for-sale securities 48 - Accrued expenses 946 918 Other 191 80 Total deferred tax assets 15,154 18,943 Deferred tax liabilities: Depreciation 271 372 Amortization on loans FMV adjustment 140 - Purchase accounting adjustments 1,988 1,751 Deferred capital gain on branch sale 411 425 Unrealized gains on available-for-sale securities - 214 Other 212 437 Total deferred tax liabilities 3,022 3,199 Net deferred tax assets $ 12,132 $ 15,744 |
EARNINGS_(LOSS) PER COMMON SH48
EARNINGS/(LOSS) PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Net income (loss) $ 7,108 $ 5,051 $ (9,634) Weighted average shares outstanding basic 12,629 10,945 8,461 Dilutive effect of common stock equivalents 10 8 - Weighted average shares outstanding diluted 12,639 10,953 8,461 Income (loss) per common share basic $ 0.56 $ 0.46 $ (1.14) Income (loss) per common share diluted $ 0.56 $ 0.46 $ (1.14) |
REGULATORY CAPITAL REQUIREMEN49
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Schedule Of Capital Amounts And Ratios [Table Text Block] | Common Total Net Common Tier 1 Total Equity/ Risk- Risk- Adjusted Equity Risk-Based Risk-Based Tier 1 December 31, 2015 (1) Tier 1 Based Weighted Average Tier 1 ratio Capital Capital Leverage (Dollars in thousands) Capital Capital Assets Total Assets (2) Ratio Ratio Ratio Company $ 126,024 $ 134,643 $ 807,807 $ 1,116,692 15.60 % 15.60 % 16.67 % 11.29 % Talbot Bank 59,692 64,405 448,634 613,945 13.31 13.31 14.36 9.72 CNB 48,051 51,957 354,278 486,404 13.56 13.56 14.67 9.88 December 31, 2014 (1) Tier 1 Total Net Adjusted Common Tier 1 Total Tier 1 Company $ 112,511 $ 120,510 $ 736,763 $ 1,075,674 n/a 15.27 % 16.36 % 10.46 % Talbot Bank 51,637 55,910 394,788 579,781 n/a 13.08 14.16 8.91 CNB 44,869 48,594 331,089 485,042 n/a 13.55 14.68 9.25 (1) The capital ratios as of December 31, 2015 reflect the adoption of Basel III in effect beginning January 1, 2015 while ratios for the prior period represent the previous capital rules under Basel I. (2) The Common Equity Tier 1 ratio is a new ratio under Basel III and represents common equity, less goodwill and intangible assets net of any deferred tax liabilities, divided by risk-weighted assets. |
ACCUMULATED OTHER COMPREHENSI50
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 and 2014. (Dollars in thousands) Accumulated net Accumulated Balance, December 31, 2014 $ 316 $ 316 Other comprehensive (loss) income (387) (387) Reclassification of (gains) losses recognized - - Balance, December 31, 2015 $ (71) $ (71) Balance, December 31, 2013 $ (437) $ (437) Other comprehensive income 767 767 Reclassification of (gains) losses recognized (14) (14) Balance, December 31, 2014 $ 316 $ 316 |
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, 2015, 2014, and 2013. Details about Accumulated Other Amount Reclassified from Affected Line Item in the Statement Where Year Ended December 31, 2015 2014 2013 Realized gain on sale of investment securities $ - $ 14 $ 545 Gain on sale of investment securities Total Reclassification for the Period $ - $ 14 $ 545 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014. No assets were transferred from one hierarchy level to another during 2015 or 2014. (Dollars in thousands) Fair Value Quoted Prices Significant Other Significant December 31, 2015 Securities available for sale: U.S. Treasury $ 5,079 $ 5,079 $ - $ - U.S. Government agencies 49,529 - 49,529 - Mortgage-backed 156,916 - 156,916 - Equity 641 - 641 - Total $ 212,165 $ 5,079 $ 207,086 $ - (Dollars in thousands) Fair Value Quoted Prices Significant Other Significant December 31, 2014 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 $ - |
Fair Value Assets Measured on Nonrecurring Basis [Table Text Block] | (Dollars in thousands) Fair Value Quoted Prices Significant Other Significant December 31, 2015 Impaired loans Construction $ 10,979 $ - $ 10,979 $ - Residential real estate 7,510 - 7,510 - Commercial real estate 7,422 - 7,422 - Commercial 161 - 161 - Consumer 115 - 115 - Total impaired loans 26,187 - 26,187 - Other real estate owned 4,252 - 4,252 - Total assets measured at fair value on a nonrecurring basis $ 30,439 $ - $ 30,439 $ - (Dollars in thousands) Fair Value Quoted Prices Significant Other Significant December 31, 2014 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 $ - |
Schedule of Estimated Fair Values of Financial Assets and Liabilities [Table Text Block] | December 31, 2015 December 31, 2014 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 2 inputs Cash and cash equivalents $ 73,811 $ 73,811 $ 96,223 $ 96,223 Investment securities held to maturity 4,191 4,243 4,630 4,694 Loans, net 786,798 788,187 703,051 724,771 Financial liabilities Level 2 inputs Deposits $ 975,464 $ 922,161 $ 949,004 $ 948,605 Short-term borrowings 6,672 6,672 4,808 4,808 |
FINANCIAL INSTRUMENTS WITH OF52
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014. (Dollars in thousands) 2015 2014 Commitments to extend credit $ 166,931 $ 127,080 Letters of credit 7,087 7,347 Total $ 174,018 $ 134,427 |
PARENT COMPANY FINANCIAL INFO53
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 Assets Cash $ 1,899 $ 2,101 Investment securities 12,246 9,723 Investment in subsidiaries 129,353 126,857 Premises and equipment, net 3,598 3,158 Other assets 2,419 1,329 Total assets $ 149,515 $ 143,168 Liabilities Accrued interest payable $ 1 $ 1 Other liabilities 1,204 855 Long-term debt 1,343 1,843 Total liabilities 2,548 2,699 Stockholders’ equity Common stock 126 126 Additional paid in capital 63,815 63,532 Retained earnings 83,097 76,495 Accumulated other comprehensive income (loss) (71) 316 Total stockholders’ equity 146,967 140,469 Total liabilities and stockholders’ equity $ 149,515 $ 143,168 |
Condensed Income Statement [Table Text Block] | Condensed Statements of Operations For the Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Income Dividends from subsidiaries $ 1,045 $ 200 $ 2,163 Management and other fees from subsidiaries 8,723 7,933 6,226 Other income 228 110 31 Total income 9,996 8,243 8,420 Expenses Interest expense 61 80 88 Salaries and employee benefits 5,536 5,321 4,447 Occupancy and equipment expense 325 541 508 Other operating expenses 3,215 2,387 1,853 Total expenses 9,137 8,329 6,896 Income (loss) before income tax benefit and equity in undistributed net income (loss) of subsidiaries 859 (86) 1,524 Income tax benefit (65) (107) (61) Income before equity in undistributed net income (loss) of subsidiaries 924 21 1,585 Equity in undistributed net income (loss) of subsidiaries 6,184 5,030 (11,219) Net income (loss) $ 7,108 $ 5,051 $ (9,634) |
Condensed Cash Flow Statement [Table Text Block] | Condensed Statements of Cash Flows For the Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Cash flows from operating activities: Net income (loss) $ 7,108 $ 5,051 $ (9,634) Adjustments to reconcile net (income) loss to cash provided by operating activities: Equity in undistributed net (income) loss of subsidiaries (6,184) (5,030) 11,219 Depreciation and amortization 336 379 386 Stock-based compensation expense 283 87 78 Excess tax benefit from stock-based arrangements (3) - (26) Net (increase) decrease in other assets (1,108) (121) 128 Net increase (decrease) in other liabilities 328 271 (53) Net cash provided by operating activities 760 637 2,098 Cash flows from investing activities: Proceeds from maturities and principal payments of investment securities available for sale 1,418 442 - Purchases of securities (4,054) (10,112) - Purchases of premises and equipment (672) (632) (307) Cash received from merged subsidiary 3,349 Investment in subsidiaries - (20,000) (1,650) Net cash provided by (used in) investing activities 41 (30,302) (1,957) Cash flows from financing activities: Repayment of long-term debt (500) (500) - Excess tax benefit from stock-based arrangements 3 - 26 Proceeds from issuance of common stock - 31,279 - Common stock dividends paid (506) - - Net cash (used in) provided by financing activities (1,003) 30,779 26 Net (decrease) increase in cash and cash equivalents (202) 1,114 167 Cash and cash equivalents at beginning of year 2,101 987 820 Cash and cash equivalents at end of year $ 1,899 $ 2,101 $ 987 |
QUARTERLY FINANCIAL RESULTS (54
QUARTERLY FINANCIAL RESULTS (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 three years ended December 31, 2015. (In thousands, except per share data) First Second Third Fourth 2015 Interest income $ 9,445 $ 9,542 $ 9,837 $ 10,047 Net interest income 8,539 8,683 9,010 9,293 Provision for credit losses 650 540 410 475 Income (loss) before income taxes 2,270 2,631 3,109 3,506 Net income (loss) 1,409 1,627 1,909 2,163 Basic earnings (loss) per common share $ 0.11 $ 0.13 $ 0.15 $ 0.17 Diluted earnings (loss) per common share $ 0.11 $ 0.13 $ 0.15 $ 0.17 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 (Loss) income before income taxes 2,021 2,108 2,036 1,947 Net (loss) income 1,258 1,305 1,262 1,226 Basic (loss) earnings per common share $ 0.15 $ 0.13 $ 0.10 $ 0.10 Diluted (loss) earnings per common share $ 0.15 $ 0.13 $ 0.10 $ 0.10 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 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 Interest income $ 38,652 $ - $ 219 $ 38,871 Interest expense (3,346) - - (3,346) Provision for credit losses (2,075) - - (2,075) Noninterest income 7,135 8,297 (16) 15,416 Noninterest expense (21,480) (6,984) (8,886) (37,350) Net intersegment (expense) income (7,718) (781) 8,499 - (Loss) income before income taxes 11,168 532 (184) 11,516 Income tax benefit (expense) (4,274) (204) 70 (4,408) Net (loss) income $ 6,894 $ 328 $ (114) $ 7,108 Total assets $ 1,107,367 $ 9,984 $ 17,792 $ 1,135,143 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 |
SUMMARY OF SIGNIFICANT ACCOUN56
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | |||
Advertising Expense | $ 495 | $ 428 | $ 848 |
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 |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
ScheduleOfAvailableForSaleSecuritiesLineItems | ||
Available-for-sale securities, Amortized Cost | $ 212,284 | $ 235,579 |
Available-for-sale securities, Gross Unrealized Gains | 733 | 1,328 |
Available-for-sale securities, Gross Unrealized Losses | 852 | 799 |
Available-for-sale securities, Estimated Fair Value | 212,165 | 236,108 |
Held-to-maturity securities, Amortized Cost | 4,191 | 4,630 |
Held-to-maturity securities, Gross Unrealized Gains | 112 | 147 |
Held-to-maturity securities, Gross Unrealized Losses | 60 | 83 |
Held-to-maturity securities, Estimated Fair Value | 4,243 | 4,694 |
US Treasury Securities [Member] | ||
ScheduleOfAvailableForSaleSecuritiesLineItems | ||
Available-for-sale securities, Amortized Cost | 5,078 | 5,210 |
Available-for-sale securities, Gross Unrealized Gains | 1 | 5 |
Available-for-sale securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale securities, Estimated Fair Value | 5,079 | 5,215 |
US Government Corporations and Agencies Securities [Member] | ||
ScheduleOfAvailableForSaleSecuritiesLineItems | ||
Available-for-sale securities, Amortized Cost | 49,630 | 75,220 |
Available-for-sale securities, Gross Unrealized Gains | 89 | 87 |
Available-for-sale securities, Gross Unrealized Losses | 190 | 347 |
Available-for-sale securities, Estimated Fair Value | 49,529 | 74,960 |
Held-to-maturity securities, Amortized Cost | 2,575 | 2,791 |
Held-to-maturity securities, Gross Unrealized Gains | 0 | 0 |
Held-to-maturity securities, Gross Unrealized Losses | 60 | 83 |
Held-to-maturity securities, Estimated Fair Value | 2,515 | 2,708 |
US States and Political Subdivisions Debt Securities [Member] | ||
ScheduleOfAvailableForSaleSecuritiesLineItems | ||
Held-to-maturity securities, Amortized Cost | 1,616 | 1,839 |
Held-to-maturity securities, Gross Unrealized Gains | 112 | 147 |
Held-to-maturity securities, Gross Unrealized Losses | 0 | 0 |
Held-to-maturity securities, Estimated Fair Value | 1,728 | 1,986 |
Collateralized Mortgage Backed Securities [Member] | ||
ScheduleOfAvailableForSaleSecuritiesLineItems | ||
Available-for-sale securities, Amortized Cost | 156,939 | 154,525 |
Available-for-sale securities, Gross Unrealized Gains | 639 | 1,230 |
Available-for-sale securities, Gross Unrealized Losses | 662 | 452 |
Available-for-sale securities, Estimated Fair Value | 156,916 | 155,303 |
Equity Securities [Member] | ||
ScheduleOfAvailableForSaleSecuritiesLineItems | ||
Available-for-sale securities, Amortized Cost | 637 | 624 |
Available-for-sale securities, Gross Unrealized Gains | 4 | 6 |
Available-for-sale securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale securities, Estimated Fair Value | 641 | $ 630 |
Held-to-maturity securities, Amortized Cost | 0 | |
Held-to-maturity securities, Estimated Fair Value | $ 0 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 62,862 | $ 54,507 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 385 | 182 |
Available-for-sale Securities, Continuous Unrealized Loss Position, More than 12 Months, Fair Value | 21,263 | 33,782 |
Available-for-sale Securities, Continuous Unrealized Loss Position, More than 12 Months, Unrealized Losses | 467 | 617 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 84,125 | 88,289 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 852 | 799 |
U.S. Government agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 18,981 | 41,574 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 57 | 138 |
Available-for-sale Securities, Continuous Unrealized Loss Position, More than 12 Months, Fair Value | 0 | 6,954 |
Available-for-sale Securities, Continuous Unrealized Loss Position, More than 12 Months, Unrealized Losses | 133 | 209 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 18,981 | 48,528 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 190 | 347 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, More than 12 Months, Fair Value | 2,515 | 2,708 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, More than 12 Months, Unrealized Losses | 60 | 83 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 2,515 | 2,708 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Loss, Unrealized Losses | 60 | 83 |
Mortgage-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 43,881 | 12,933 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 328 | 44 |
Available-for-sale Securities, Continuous Unrealized Loss Position, More than 12 Months, Fair Value | 21,263 | 26,828 |
Available-for-sale Securities, Continuous Unrealized Loss Position, More than 12 Months, Unrealized Losses | 334 | 408 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 65,144 | 39,761 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | $ 662 | $ 452 |
INVESTMENT SECURITIES (Detail59
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost, Due in one year or less | $ 14,695 | |
Available for sale, Amortized Cost, Due after one year through five years | 37,114 | |
Available for sale, Amortized Cost, Due after five years through ten years | 11,319 | |
Available for sale, Amortized Cost, Due after ten years | 148,519 | |
Available for sale, Amortized Cost, Debt maturities | 211,647 | |
Available-for-sale securities, Amortized Cost | 212,284 | $ 235,579 |
Available for sale, Estimated Fair Value, Due in one year or less | 14,703 | |
Available for sale, Estimated Fair Value, Due after one year through five years | 37,092 | |
Available for sale, Estimated Fair Value, Due after five years through ten years | 11,270 | |
Available for sale, Estimated Fair Value, Due after ten years | 148,459 | |
Available for sale, Estimated Fair Value, Debt maturities | 211,524 | |
Available for sale, Estimated Fair Value, Total | 212,165 | 236,108 |
Held to maturity securities, Amortized Cost, Due in one year or less | 0 | |
Held to maturity securities, Amortized Cost, Due after one year through five years | 711 | |
Held to maturity securities, Amortized Cost, Due after five years through ten years | 403 | |
Held to maturity securities, Amortized Cost, Due after ten years | 3,077 | |
Held to maturity securities, Amortized Cost, Debt maturities | 4,191 | |
Held to maturity securities, Amortized Cost, Total | 4,191 | 4,630 |
Held to maturity securities, Estimated Fair Value, Due in one year or less | 0 | |
Held to maturity securities, Estimated Fair Value, Due after one year through five years | 751 | |
Held to maturity securities, Estimated Fair Value, Due after five years through ten years | 448 | |
Held to maturity securities, Estimated Fair Value, Due after ten years | 3,044 | |
Held to maturity securities, Estimated Fair Value, Debt maturities | 4,243 | |
Held-to-maturity securities, Estimated Fair Value, Total | 4,243 | 4,694 |
Equity [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Amortized Cost | 637 | 624 |
Available for sale, Estimated Fair Value, Total | 641 | $ 630 |
Held to maturity securities, Amortized Cost, Total | 0 | |
Held-to-maturity securities, Estimated Fair Value, Total | $ 0 |
INVESTMENT SECURITIES (Detail60
INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost, Total | $ 212,284 | $ 235,579 |
Securities Pledged as Collateral [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost, Total | 121,142 | 115,162 |
Available-for-sale, Pledged available-for-sale securities, Estimated Fair Value | $ 121,207 | $ 115,458 |
INVESTMENT SECURITIES (Detail61
INVESTMENT SECURITIES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from Sale and Maturity of Marketable Securities | $ 0 | $ 988 | $ 40,400 |
Gain on Sale of Investments | $ 0 | 23 | 913 |
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, 2015 or 2014. | ||
Loss on Sale of Investments | $ 0 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI62
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Construction | $ 85,632 | $ 69,157 |
Residential real estate | 307,063 | 273,336 |
Commercial real estate | 330,253 | 305,788 |
Commercial | 64,911 | 52,671 |
Consumer | 7,255 | 9,794 |
Total loans | 795,114 | 710,746 |
Allowance for credit losses | (8,316) | (7,695) |
Total loans, net | $ 786,798 | $ 703,051 |
LOANS AND ALLOWANCE FOR CREDI63
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | $ 27,588 | $ 30,141 |
Loans collectively evaluated for impairment | 767,526 | 680,605 |
Total loans | 795,114 | 710,746 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 1,401 | 1,273 |
Loans collectively evaluated for impairment | 6,915 | 6,422 |
Total allowance for credit losses | 8,316 | 7,695 |
Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 11,598 | 10,067 |
Loans collectively evaluated for impairment | 74,034 | 59,090 |
Total loans | 85,632 | 69,157 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 619 | 41 |
Loans collectively evaluated for impairment | 1,027 | 1,262 |
Total allowance for credit losses | 1,646 | 1,303 |
Residential real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 7,945 | 10,403 |
Loans collectively evaluated for impairment | 299,118 | 262,933 |
Total loans | 307,063 | 273,336 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 435 | 1,099 |
Loans collectively evaluated for impairment | 1,746 | 1,735 |
Total allowance for credit losses | 2,181 | 2,834 |
Commercial real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 7,762 | 9,359 |
Loans collectively evaluated for impairment | 322,491 | 296,429 |
Total loans | 330,253 | 305,788 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 340 | 129 |
Loans collectively evaluated for impairment | 2,659 | 2,250 |
Total allowance for credit losses | 2,999 | 2,379 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 161 | 188 |
Loans collectively evaluated for impairment | 64,750 | 52,483 |
Total loans | 64,911 | 52,671 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 0 | 1 |
Loans collectively evaluated for impairment | 558 | 447 |
Total allowance for credit losses | 558 | 448 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 122 | 124 |
Loans collectively evaluated for impairment | 7,133 | 9,670 |
Total loans | 7,255 | 9,794 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 7 | 3 |
Loans collectively evaluated for impairment | 149 | 226 |
Total allowance for credit losses | 156 | 229 |
Unallocated [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 | 776 | 502 |
Total allowance for credit losses | $ 776 | $ 502 |
LOANS AND ALLOWANCE FOR CREDI64
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Impaired Nonaccrual Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | $ 17,704 | $ 20,145 |
Recorded investment with no allowance | 8,492 | 10,175 |
Recorded investment with an allowance | 3,601 | 3,292 |
Related allowance | 812 | 903 |
Average recorded investment | 13,350 | 15,466 |
Interest income recognized | 0 | 0 |
Impaired Nonaccrual Loans [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 11,850 | 9,277 |
Recorded investment with no allowance | 4,647 | 6,045 |
Recorded investment with an allowance | 2,882 | 0 |
Related allowance | 588 | 0 |
Average recorded investment | 8,176 | 7,739 |
Interest income recognized | 0 | 0 |
Impaired Nonaccrual Loans [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 2,563 | 4,664 |
Recorded investment with no allowance | 1,773 | 1,053 |
Recorded investment with an allowance | 487 | 2,982 |
Related allowance | 208 | 799 |
Average recorded investment | 2,767 | 3,322 |
Interest income recognized | 0 | 0 |
Impaired Nonaccrual Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 2,988 | 4,703 |
Recorded investment with no allowance | 1,813 | 2,842 |
Recorded investment with an allowance | 209 | 280 |
Related allowance | 9 | 100 |
Average recorded investment | 2,159 | 3,889 |
Interest income recognized | 0 | 0 |
Impaired Nonaccrual Loans [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 175 | 1,372 |
Recorded investment with no allowance | 161 | 136 |
Recorded investment with an allowance | 0 | 5 |
Related allowance | 0 | 1 |
Average recorded investment | 126 | 437 |
Interest income recognized | 0 | 0 |
Impaired Nonaccrual Loans [Member] | Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 128 | 129 |
Recorded investment with no allowance | 98 | 99 |
Recorded investment with an allowance | 23 | 25 |
Related allowance | 7 | 3 |
Average recorded investment | 122 | 79 |
Interest income recognized | 0 | 0 |
Impaired Accruing TDRs [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 15,495 | 16,674 |
Recorded investment with no allowance | 7,348 | 8,685 |
Recorded investment with an allowance | 8,147 | 7,989 |
Related allowance | 589 | 370 |
Average recorded investment | 16,997 | 24,495 |
Interest income recognized | 651 | 696 |
Impaired Accruing TDRs [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 4,069 | 4,022 |
Recorded investment with no allowance | 3,266 | 3,196 |
Recorded investment with an allowance | 803 | 826 |
Related allowance | 31 | 41 |
Average recorded investment | 4,080 | 2,743 |
Interest income recognized | 84 | 68 |
Impaired Accruing TDRs [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 5,686 | 6,368 |
Recorded investment with no allowance | 2,380 | 668 |
Recorded investment with an allowance | 3,306 | 5,700 |
Related allowance | 227 | 300 |
Average recorded investment | 6,947 | 15,123 |
Interest income recognized | 312 | 372 |
Impaired Accruing TDRs [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 5,740 | 6,237 |
Recorded investment with no allowance | 1,702 | 4,774 |
Recorded investment with an allowance | 4,038 | 1,463 |
Related allowance | 331 | 29 |
Average recorded investment | 5,943 | 6,574 |
Interest income recognized | 254 | 254 |
Impaired Accruing TDRs [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 0 | 47 |
Recorded investment with no allowance | 0 | 47 |
Recorded investment with an allowance | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment | 27 | 55 |
Interest income recognized | 1 | 2 |
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 | 33,199 | 36,819 |
Recorded investment with no allowance | 15,840 | 18,860 |
Recorded investment with an allowance | 11,748 | 11,281 |
Related allowance | 1,401 | 1,273 |
Average recorded investment | 30,347 | 39,961 |
Interest income recognized | 651 | 696 |
Total Impired Loans [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 15,919 | 13,299 |
Recorded investment with no allowance | 7,913 | 9,241 |
Recorded investment with an allowance | 3,685 | 826 |
Related allowance | 619 | 41 |
Average recorded investment | 12,256 | 10,482 |
Interest income recognized | 84 | 68 |
Total Impired Loans [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 8,249 | 11,032 |
Recorded investment with no allowance | 4,153 | 1,721 |
Recorded investment with an allowance | 3,793 | 8,682 |
Related allowance | 435 | 1,099 |
Average recorded investment | 9,714 | 18,445 |
Interest income recognized | 312 | 372 |
Total Impired Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 8,728 | 10,940 |
Recorded investment with no allowance | 3,515 | 7,616 |
Recorded investment with an allowance | 4,247 | 1,743 |
Related allowance | 340 | 129 |
Average recorded investment | 8,102 | 10,463 |
Interest income recognized | 254 | 254 |
Total Impired Loans [Member] | Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 175 | 1,419 |
Recorded investment with no allowance | 161 | 183 |
Recorded investment with an allowance | 0 | 5 |
Related allowance | 0 | 1 |
Average recorded investment | 153 | 492 |
Interest income recognized | 1 | 2 |
Total Impired Loans [Member] | Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid principal balance | 128 | 129 |
Recorded investment with no allowance | 98 | 99 |
Recorded investment with an allowance | 23 | 25 |
Related allowance | 7 | 3 |
Average recorded investment | 122 | 79 |
Interest income recognized | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI65
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | $ 7,695 | ||
TDR Balance | 8,316 | $ 7,695 | |
Troubled Debt Restructuring [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 23,748 | 32,401 | |
New TDRs | 1,837 | 0 | |
Disbursements (Payments) | (2,039) | (1,617) | |
Charge Offs | (1,098) | (5,204) | |
Reclassification/Transfers In/(Out) | (1,525) | [1] | 0 |
Payoffs | 0 | (1,832) | |
TDR Balance | 20,923 | 23,748 | |
Related allowance | 1,325 | 1,197 | |
Accruing Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 16,674 | 26,088 | |
New TDRs | 1,837 | 0 | |
Disbursements (Payments) | (1,793) | (1,459) | |
Charge Offs | 0 | (4,701) | |
Reclassification/Transfers In/(Out) | (1,223) | (1,545) | |
Payoffs | 0 | (1,709) | |
TDR Balance | 15,495 | 16,674 | |
Related allowance | 589 | 370 | |
Nonaccrual Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 7,074 | 6,313 | |
New TDRs | 0 | 0 | |
Disbursements (Payments) | (246) | (158) | |
Charge Offs | (1,098) | (503) | |
Reclassification/Transfers In/(Out) | (302) | 1,545 | |
Payoffs | 0 | (123) | |
TDR Balance | 5,428 | 7,074 | |
Related allowance | 736 | 827 | |
Construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 1,303 | ||
TDR Balance | 1,646 | 1,303 | |
Construction [Member] | Accruing Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 4,022 | 1,620 | |
New TDRs | 0 | 0 | |
Disbursements (Payments) | (95) | (186) | |
Charge Offs | 0 | (538) | |
Reclassification/Transfers In/(Out) | 142 | 3,396 | |
Payoffs | 0 | (270) | |
TDR Balance | 4,069 | 4,022 | |
Related allowance | 31 | 41 | |
Construction [Member] | Nonaccrual Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 3,321 | 3,561 | |
New TDRs | 0 | 0 | |
Disbursements (Payments) | (214) | (12) | |
Charge Offs | (1,058) | (235) | |
Reclassification/Transfers In/(Out) | 2,911 | 7 | |
Payoffs | 0 | 0 | |
TDR Balance | 4,960 | 3,321 | |
Related allowance | 588 | 0 | |
Residential real estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 2,834 | ||
TDR Balance | 2,181 | 2,834 | |
Residential real estate [Member] | Accruing Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 6,368 | 14,582 | |
New TDRs | 1,837 | 0 | |
Disbursements (Payments) | (1,195) | (1,150) | |
Charge Offs | 0 | (3,614) | |
Reclassification/Transfers In/(Out) | (1,324) | (3,136) | |
Payoffs | 0 | (314) | |
TDR Balance | 5,686 | 6,368 | |
Related allowance | 227 | 300 | |
Residential real estate [Member] | Nonaccrual Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 3,382 | 1,884 | |
New TDRs | 0 | 0 | |
Disbursements (Payments) | (26) | (50) | |
Charge Offs | 0 | (203) | |
Reclassification/Transfers In/(Out) | (2,911) | 1,874 | |
Payoffs | 0 | (123) | |
TDR Balance | 445 | 3,382 | |
Related allowance | 141 | 724 | |
Commercial real estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 2,379 | ||
TDR Balance | 2,999 | 2,379 | |
Commercial real estate [Member] | Accruing Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 6,237 | 9,791 | |
New TDRs | 0 | 0 | |
Disbursements (Payments) | (497) | (99) | |
Charge Offs | 0 | (549) | |
Reclassification/Transfers In/(Out) | 0 | (1,805) | |
Payoffs | 0 | (1,101) | |
TDR Balance | 5,740 | 6,237 | |
Related allowance | 331 | 29 | |
Commercial real estate [Member] | Nonaccrual Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 346 | 842 | |
New TDRs | 0 | 0 | |
Disbursements (Payments) | (4) | (95) | |
Charge Offs | (40) | (65) | |
Reclassification/Transfers In/(Out) | (302) | (336) | |
Payoffs | 0 | 0 | |
TDR Balance | 0 | 346 | |
Related allowance | 0 | 100 | |
Commercial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 448 | ||
TDR Balance | 558 | 448 | |
Commercial [Member] | Accruing Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 47 | 95 | |
New TDRs | 0 | 0 | |
Disbursements (Payments) | (6) | (24) | |
Charge Offs | 0 | 0 | |
Reclassification/Transfers In/(Out) | (41) | 0 | |
Payoffs | 0 | (24) | |
TDR Balance | 0 | 47 | |
Related allowance | 0 | 0 | |
Commercial [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 | |
Payoffs | 0 | 0 | |
TDR Balance | 0 | 0 | |
Related allowance | 0 | 0 | |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 229 | ||
TDR Balance | 156 | 229 | |
Consumer [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 | |
Payoffs | 0 | 0 | |
TDR Balance | 0 | 0 | |
Related allowance | 0 | 0 | |
Consumer [Member] | Nonaccrual Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
TDR Balance | 25 | 26 | |
New TDRs | 0 | 0 | |
Disbursements (Payments) | (2) | (1) | |
Charge Offs | 0 | 0 | |
Reclassification/Transfers In/(Out) | 0 | 0 | |
Payoffs | 0 | 0 | |
TDR Balance | 23 | 25 | |
Related allowance | $ 7 | $ 3 | |
[1] | $1.3 million in subsequently modified TDRs were transferred from accruing TDR classification to accrual status during the third quarter of 2015, thus removing the TDR designation. In accordance with ASC 310-40-50-2 “Creditor Disclosure of Troubled Debt Restructurings,” an impaired loan that has been subsequently restructured in a troubled debt restructuring involving modification of terms need not be included in the disclosures in years after the restructuring if both of the following conditions exist: a) the subsequent restructuring agreement specifies an interest rate equal to or greater than the rate that the creditor was willing to accept at the time of the restructuring for a new loan with comparable risk; and b) the loan is not impaired based on the terms specified by the restructuring agreement. During the period ended December 31, 2015, three loans totaling $1.3 million met the conditions stipulated in ASC 310-40-50-2, and after a careful evaluation of well supported documentation by management, these loans were upgraded to accrual status. |
LOANS AND ALLOWANCE FOR CREDI66
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 4) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 11 | 0 |
Premodification outstanding recorded investment | $ 4,097 | $ 0 |
Postmodification outstanding recorded investment | 4,184 | 0 |
Related allowance | $ 19 | $ 0 |
Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 3 | |
Postmodification outstanding recorded investment | $ 1,300 | |
Troubled Debt Restructurings [Member] | Construction Loans [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] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 10 | 0 |
Premodification outstanding recorded investment | $ 1,835 | $ 0 |
Postmodification outstanding recorded investment | 1,837 | 0 |
Related allowance | $ 19 | $ 0 |
Troubled Debt Restructurings [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 1 | 0 |
Premodification outstanding recorded investment | $ 2,262 | $ 0 |
Postmodification outstanding recorded investment | 2,347 | 0 |
Related allowance | $ 0 | $ 0 |
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 CREDI67
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 5) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 2 | 0 |
Recorded investment | $ 279 | $ 0 |
Related allowance | $ 0 | $ 0 |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 0 | 0 |
Recorded investment | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Residential real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 0 | 0 |
Recorded investment | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Commercial real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 2 | 0 |
Recorded investment | $ 279 | $ 0 |
Related allowance | $ 0 | $ 0 |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 0 | 0 |
Recorded investment | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 |
Troubled Debt Restructurings That Subsequently Defaulted [Member] | Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of contracts | 0 | 0 |
Recorded investment | $ 0 | $ 0 |
Related allowance | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI68
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 6) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | $ 795,114 | $ 710,746 |
Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 85,632 | 69,157 |
Residential real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 307,063 | 273,336 |
Commercial real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 330,253 | 305,788 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 64,911 | 52,671 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 7,255 | 9,794 |
Pass/Performing [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 734,244 | 640,698 |
Pass/Performing [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 70,214 | 52,241 |
Pass/Performing [Member] | Residential real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 290,857 | 252,643 |
Pass/Performing [Member] | Commercial real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 302,438 | 275,573 |
Pass/Performing [Member] | Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 63,628 | 50,583 |
Pass/Performing [Member] | Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 7,107 | 9,658 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 32,540 | 34,256 |
Special Mention [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 3,903 | 5,643 |
Special Mention [Member] | Residential real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 8,837 | 6,675 |
Special Mention [Member] | Commercial real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 18,699 | 20,040 |
Special Mention [Member] | Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 1,075 | 1,885 |
Special Mention [Member] | Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 26 | 13 |
Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 28,330 | 35,703 |
Substandard [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 11,515 | 11,273 |
Substandard [Member] | Residential real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 7,369 | 14,018 |
Substandard [Member] | Commercial real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 9,116 | 10,175 |
Substandard [Member] | Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 208 | 114 |
Substandard [Member] | Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 122 | 123 |
Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 0 | 89 |
Doubtful [Member] | Construction [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 | 0 |
Doubtful [Member] | Commercial real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 0 | 0 |
Doubtful [Member] | Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | 0 | 89 |
Doubtful [Member] | Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Risk Rating | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI69
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 7) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Current | $ 777,792 | $ 688,156 |
Total past due | 5,229 | 9,124 |
Non-accrual | 12,093 | 13,466 |
Total loans | $ 795,114 | $ 710,746 |
Percent of total loans, Current | 97.80% | 96.80% |
Percent of total loans, Total past due | 0.70% | 1.30% |
Percent of total loans, Non-accrual | 1.50% | 1.90% |
Percent of total loans, Total loans | 100.00% | 100.00% |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | $ 2,222 | $ 5,654 |
Percent of total loans, Total past due | 0.30% | 0.80% |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | $ 3,000 | $ 3,383 |
Percent of total loans, Total past due | 0.40% | 0.50% |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | $ 7 | $ 87 |
Percent of total loans, Total past due | 0.00% | 0.00% |
Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Current | $ 78,082 | $ 61,325 |
Total past due | 21 | 1,786 |
Non-accrual | 7,529 | 6,046 |
Total loans | 85,632 | 69,157 |
Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 21 | 1,786 |
Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 0 | 0 |
Construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 0 | 0 |
Residential real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Current | 300,563 | 263,165 |
Total past due | 4,241 | 6,136 |
Non-accrual | 2,259 | 4,035 |
Total loans | 307,063 | 273,336 |
Residential real estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 2,139 | 3,351 |
Residential real estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 2,102 | 2,702 |
Residential real estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 0 | 83 |
Commercial real estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Current | 327,370 | 301,695 |
Total past due | 861 | 972 |
Non-accrual | 2,022 | 3,121 |
Total loans | 330,253 | 305,788 |
Commercial real estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 0 | 459 |
Commercial real estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 861 | 513 |
Commercial real estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 0 | 0 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Current | 64,670 | 52,352 |
Total past due | 80 | 178 |
Non-accrual | 161 | 141 |
Total loans | 64,911 | 52,671 |
Commercial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 49 | 47 |
Commercial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 31 | 131 |
Commercial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 0 | 0 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Current | 7,107 | 9,619 |
Total past due | 26 | 52 |
Non-accrual | 122 | 123 |
Total loans | 7,255 | 9,794 |
Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 13 | 11 |
Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | 6 | 37 |
Consumer [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total past due | $ 7 | $ 4 |
LOANS AND ALLOWANCE FOR CREDI70
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details 8) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for credit losses: | ||
Beginning balance | $ 7,695 | $ 10,725 |
Charge-offs | (2,724) | (7,332) |
Recoveries | 1,270 | 952 |
Net charge-offs | (1,454) | (6,380) |
Provision | 2,075 | 3,350 |
Ending balance | 8,316 | 7,695 |
Construction [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 1,303 | 1,960 |
Charge-offs | (1,058) | (725) |
Recoveries | 125 | 149 |
Net charge-offs | (933) | (576) |
Provision | 1,276 | (81) |
Ending balance | 1,646 | 1,303 |
Residential real estate [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 2,834 | 3,854 |
Charge-offs | (283) | (2,407) |
Recoveries | 398 | 376 |
Net charge-offs | 115 | (2,031) |
Provision | (768) | 1,011 |
Ending balance | 2,181 | 2,834 |
Commercial real estate [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 2,379 | 3,029 |
Charge-offs | (920) | (1,648) |
Recoveries | 379 | 58 |
Net charge-offs | (541) | (1,590) |
Provision | 1,161 | 940 |
Ending balance | 2,999 | 2,379 |
Commercial [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 448 | 1,266 |
Charge-offs | (396) | (2,389) |
Recoveries | 319 | 341 |
Net charge-offs | (77) | (2,048) |
Provision | 187 | 1,230 |
Ending balance | 558 | 448 |
Consumer [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 229 | 243 |
Charge-offs | (67) | (163) |
Recoveries | 49 | 28 |
Net charge-offs | (18) | (135) |
Provision | (55) | 121 |
Ending balance | 156 | 229 |
Unallocated Financing Receivables [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 502 | 373 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net charge-offs | 0 | 0 |
Provision | 274 | 129 |
Ending balance | $ 776 | $ 502 |
LOANS AND ALLOWANCE FOR CREDI71
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Net Amount, Total | $ 786,798 | $ 703,051 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 12,093 | 13,466 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 4,184 | $ 0 |
Financing Receivable, Modifications, Number of Contracts | 11 | 0 |
Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 1,300 | |
Financing Receivable, Modifications, Number of Contracts | 3 | |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable Net Reported Amount Additions | $ 581 | $ 54 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,259 | 4,035 |
Residential Real Estate [Member] | Troubled Debt Restructurings [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 1,837 | $ 0 |
Financing Receivable, Modifications, Number of Contracts | 10 | 0 |
Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 12,100 | $ 13,400 |
Doubtful [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 89 | |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | |
Directors, Associates and Policy Making Officer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and Leases Receivable, Net Amount, Total | 22,000 | 18,700 |
Loans and Leases Receivable Net Reported Amount Additions | 5,500 | 1,800 |
Proceeds from (Repayments of) Debt | $ 2,400 | $ 6,200 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 5,818 | $ 5,818 |
Buildings and land improvements | 15,982 | 13,537 |
Furniture and equipment | 6,710 | 9,273 |
Property, Plant and Equipment, Gross, Total | 28,510 | 28,628 |
Accumulated depreciation | (11,646) | (12,353) |
Total | $ 16,864 | $ 16,275 |
PREMISES AND EQUIPMENT (Detai73
PREMISES AND EQUIPMENT (Details 1) $ in Thousands | Dec. 31, 2015USD ($) |
Property, Plant and Equipment [Line Items] | |
2,016 | $ 547 |
2,017 | 426 |
2,018 | 390 |
2,019 | 380 |
2,020 | 250 |
Thereafter | 1,021 |
Total minimum lease payments | $ 3,014 |
PREMISES AND EQUIPMENT (Detai74
PREMISES AND EQUIPMENT (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, Total | $ 912 | $ 867 | $ 936 |
Operating Leases, Rent Expense | $ 650 | $ 700 | $ 744 |
INVESTMENT IN UNCONSOLIDATED 75
INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | 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 | $ 320 | $ 432 | ||
Income (Loss) from Equity Method Investments | (112) | 104 | ||
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 INTANGIBLE76
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill, Gross Carring Amount | $ 15,235 | $ 15,235 |
Goodwill, Accumulated Impairment Charges | (2,637) | (2,637) |
Goodwill, Accumulated Amortization | (667) | (667) |
Goodwill, Net Carrying Amount | $ 11,931 | $ 11,931 |
Goodwill, Weighted Average Remaining Life (in years) | 0 years | 0 years |
Other intangible assets, Amortizable, Gross Carrying Amount | $ 2,505 | $ 2,492 |
Other intangible assets, Amortizable, Accumulated Impairment Charges | (95) | (95) |
Other intangible assets, Amortizable, Accumulated Amortization | (1,979) | (1,846) |
Other intangible assets, Amortizable, Net Carrying Amount | 431 | 551 |
Other intangible assets, Unamortizable, Gross Carrying Amount | 780 | 780 |
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 | 780 |
Total other intangible assets, Gross Carrying Amount | 3,285 | 3,272 |
Total other intangible assets, Accumulated Impairment Charges | (95) | (95) |
Total other intangible assets, Accumulated Amortization | (1,979) | (1,846) |
Total other intangible asset, Net | 1,211 | 1,331 |
Employment Agreements [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill, Gross Carring Amount | 440 | 440 |
Goodwill, Accumulated Impairment Charges | 0 | 0 |
Goodwill, Accumulated Amortization | (440) | (440) |
Goodwill, Net Carrying Amount | $ 0 | $ 0 |
Goodwill, Weighted Average Remaining Life (in years) | 0 years | 0 years |
Insurance Expirations [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill, Gross Carring Amount | $ 1,270 | $ 1,270 |
Goodwill, Accumulated Impairment Charges | 0 | 0 |
Goodwill, Accumulated Amortization | (1,148) | (1,063) |
Goodwill, Net Carrying Amount | $ 122 | $ 207 |
Goodwill, Weighted Average Remaining Life (in years) | 1 year 4 months 24 days | 2 years 4 months 24 days |
Customer Relationships [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill, Gross Carring Amount | $ 795 | $ 782 |
Goodwill, Accumulated Impairment Charges | (95) | (95) |
Goodwill, Accumulated Amortization | (391) | (343) |
Goodwill, Net Carrying Amount | $ 309 | $ 344 |
Goodwill, Weighted Average Remaining Life (in years) | 6 years 4 months 24 days | 7 years |
Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill, Gross Carring Amount | $ 780 | $ 780 |
Goodwill, Accumulated Impairment Charges | 0 | 0 |
Goodwill, Accumulated Amortization | 0 | 0 |
Goodwill, Net Carrying Amount | $ 780 | $ 780 |
Goodwill, Weighted Average Remaining Life (in years) | 0 years | 0 years |
Carrier Relationship [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill, Gross Carring Amount | $ 0 | $ 0 |
Goodwill, Accumulated Impairment Charges | 0 | 0 |
Goodwill, Accumulated Amortization | 0 | 0 |
Goodwill, Net Carrying Amount | $ 0 | $ 0 |
Goodwill, Weighted Average Remaining Life (in years) | 0 years | 0 years |
GOODWILL AND OTHER INTANGIBLE77
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) $ in Thousands | Dec. 31, 2015USD ($) |
Indefinite-lived Intangible Assets [Line Items] | |
Amortization Expense, Estimate for years ended December 31, 2016 | $ 131 |
Amortization Expense, Estimate for years ended December 31, 2017 | 84 |
Amortization Expense, Estimate for years ended December 31, 2018 | 47 |
Amortization Expense, Estimate for years ended December 31, 2019 | 47 |
Amortization Expense, Estimate for years ended December 31, 2020 | $ 47 |
GOODWILL AND OTHER INTANGIBLE78
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 11,931 | $ 11,931 | |
Amortization Of Other Intangible Assets | 133 | 201 | $ 296 |
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 | $ 9,400 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Assets [Line Items] | |||
Nonmarketable investment securities | $ 1,621 | $ 1,586 | |
Accrued interest receivable | 2,458 | 2,663 | |
Deferred income taxes | [1] | 12,132 | 15,744 |
Prepaid expenses | 1,039 | 750 | |
Other assets | 6,670 | 6,419 | |
Total | $ 23,920 | $ 27,162 | |
[1] | See Note 15 for further discussion. |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities [Line Items] | ||
Accrued interest payable | $ 106 | $ 172 |
Other accounts payable | 2,775 | 2,435 |
Deferred compensation liability | 1,464 | 1,503 |
Other liabilities | 1,695 | 2,011 |
Total | $ 6,040 | $ 6,121 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Line Items] | ||
Due in one year or less | $ 163,220 | $ 181,847 |
Due in one to three years | 86,719 | 101,811 |
Due in three to five years | 39,855 | 47,969 |
Total | $ 289,794 | $ 331,627 |
DEPOSITS (Details Textual)
DEPOSITS (Details Textual) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Line Items] | ||
Time Deposits, 250,000 or More | $ 29.1 | $ 35.5 |
Due to Affiliate | $ 5.6 | $ 5.3 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Short-term Debt, Total | $ 6,672 | $ 4,808 |
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 | $ 6,226 | $ 8,061 |
Short-term Debt, Weighted Average Interest Rate | 0.24% | 0.22% |
BENEFIT PLANS (Details Textual)
BENEFIT PLANS (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 491 | $ 545 | $ 520 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 283 | $ 87 | $ 78 |
Excess tax expense related to stock-based compensation | 3 | 0 | 26 |
Unrecognized stock-based compensation expense | $ 14 | $ 59 | $ 136 |
Weighted average period unrecognized expense is expected to be recognized | 3 months 18 days | 9 months 18 days | 1 year 8 months 12 days |
STOCK-BASED COMPENSATION (Det86
STOCK-BASED COMPENSATION (Details 1) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Nonvested at beginning of period (in shares) | 14,251 | 13,930 | 6,548 |
Number of Shares, Granted (in shares) | 12,647 | 3,654 | 13,930 |
Number of Shares, Vested (in shares) | (14,410) | (3,333) | (6,548) |
Number of Shares, Cancelled (in shares) | 0 | 0 | 0 |
Number of Shares, Nonvested at end of period (in shares) | 12,488 | 14,251 | 13,930 |
Weighted Average Grant Date Fair Value, Nonvested at beginning of period (in dollars per share) | $ 8.51 | $ 8.33 | $ 14.89 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 9.21 | 9.57 | 8.33 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 8.93 | 8.93 | 14.89 |
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) | $ 8.74 | $ 8.51 | $ 8.33 |
STOCK-BASED COMPENSATION (Det87
STOCK-BASED COMPENSATION (Details 2) - Equity Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, Outstanding at beginning of period (in shares) | 27,108 | 40,662 | 54,216 |
Number of shares, Granted (in shares) | 34,219 | 0 | 0 |
Number of shares, Exercised (in shares) | 0 | (3,593) | 0 |
Number of shares, Expired/Cancelled (in shares) | 0 | (9,961) | (13,554) |
Number of shares, Outstanding at end of period (in shares) | 61,327 | 27,108 | 40,662 |
Number of shares, Exercisable at end of period (in shares) | 44,218 | 0 | 0 |
Weighted Average Exercise Price, Outstanding at beginning of period | $ 6.64 | $ 6.64 | $ 6.64 |
Weighted Average Exercise Price, Granted | 9.18 | 0 | 0 |
Weighted Average Exercise Price, Exercised | 0 | 6.64 | 0 |
Weighted Average Exercise Price, Expired/Cancelled | 0 | 6.64 | 6.64 |
Weighted Average Exercise Price, Outstanding at end of period | 8.05 | 6.64 | 6.64 |
Weighted Average Exercise Price, Exercisable at end of period | $ 7.62 | $ 0 | $ 0 |
STOCK-BASED COMPENSATION (Det88
STOCK-BASED COMPENSATION (Details 3) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Dividend yield | 0.00% |
Expected volatility | 32.00% |
Risk-free interest rate | 1.97% |
Expected contract life (in years) | 7 years |
STOCK-BASED COMPENSATION (Det89
STOCK-BASED COMPENSATION (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 44,218 | 13,554 | |
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 | 7 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 129 | $ 30 | $ 36 |
Share Based Compensation Arrangement By Share Based Payment Award Estimated Fair Value Of Stock Price | $ 10.88 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 3 months 18 days | ||
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 | 456,182 | ||
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, Outstanding, Intrinsic Value | $ 173 |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Deferred compensation contribution | $ 0 | $ 0 | $ 9 |
Deferred compensation liability | $ 444 | $ 445 |
DEFERRED COMPENSATION (Details1
DEFERRED COMPENSATION (Details1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Cash surrender value | $ 3,448 | $ 3,360 |
Accrued benefit obligation | $ 1,020 | $ 1,058 |
DEFERRED COMPENSATION (Details
DEFERRED COMPENSATION (Details Textual) | 12 Months Ended |
Dec. 31, 2015 | |
Eastern [Member] | |
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 ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Noninterest Expenses [Line Items] | |||
Advertising and marketing | $ 495 | $ 428 | $ 848 |
Other customer expense | 172 | 396 | 414 |
Other expense | 2,168 | 2,070 | 2,152 |
Other loan expense | 515 | 894 | 934 |
Software expense | 697 | 664 | 613 |
Travel and entertainment expense | 303 | 288 | 287 |
Trust professional fees | 625 | 686 | 616 |
Total noninterest expense | $ 4,975 | $ 5,426 | $ 5,864 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax expense (benefit): | |||
Federal | $ 247 | $ 0 | $ (459) |
State | 287 | 225 | 90 |
Current Income Tax Expense (Benefit), Total | 534 | 225 | (369) |
Deferred income tax expense (benefit): | |||
Federal | 3,369 | 2,516 | (4,592) |
State | 505 | 320 | (1,540) |
Deferred Income Tax Expense (Benefit), Total | 3,874 | 2,836 | (6,132) |
Total income tax expense (benefit) | $ 4,408 | $ 3,061 | $ (6,501) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation [Line Items] | |||
Tax at federal statutory rate | 34.00% | 34.00% | (34.00%) |
Tax effect of: | |||
Tax-exempt income | (0.40%) | (0.90%) | (0.40%) |
Other non-deductible expenses | 0.20% | 0.30% | 0.20% |
State income taxes, net of federal benefit | 4.50% | 4.40% | (5.90%) |
Other | (0.10%) | (0.10%) | (0.20%) |
Actual income tax expense (benefit) rate | 38.20% | 37.70% | (40.30%) |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for credit losses | $ 3,316 | $ 3,072 |
Reserve for off-balance sheet commitments | 121 | 121 |
Net operating loss carry forward | 9,069 | 13,265 |
Write-downs of other real estate owned | 308 | 355 |
Deferred income | 1,155 | 1,132 |
Unrealized gains on available-for-sale securities | 48 | 0 |
Accrued expenses | 946 | 918 |
Other | 191 | 80 |
Total deferred tax assets | 15,154 | 18,943 |
Deferred tax liabilities: | ||
Depreciation | 271 | 372 |
Amortization on loans FMV adjustment | 140 | 0 |
Purchase accounting adjustments | 1,988 | 1,751 |
Deferred capital gain on branch sale | 411 | 425 |
Unrealized gains on available-for-sale securities | 0 | 214 |
Other | 212 | 437 |
Total deferred tax liabilities | 3,022 | 3,199 |
Net deferred tax assets | $ 12,132 | $ 15,744 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | 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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | |||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest, Total | $ 3,506 | $ 3,109 | $ 2,631 | $ 2,270 | $ 1,947 | $ 2,036 | $ 2,108 | $ 2,021 | $ 1,843 | $ (18,808) | $ 504 | $ 326 | $ 11,516 | $ 8,112 | $ (16,135) |
Operating Loss Carryforwards Expiration Year | 20 years | ||||||||||||||
Statutory Period Remain Available To Offset Future Taxable Income | 18 years |
EARNINGS_(LOSS) PER COMMON SH98
EARNINGS/(LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | 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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share Basic And Diluted [Line Items] | |||||||||||||||
Net income (loss) | $ 2,163 | $ 1,909 | $ 1,627 | $ 1,409 | $ 1,226 | $ 1,262 | $ 1,305 | $ 1,258 | $ 1,175 | $ (11,392) | $ 361 | $ 222 | $ 7,108 | $ 5,051 | $ (9,634) |
Weighted average shares outstanding - basic (in shares) | 12,629 | 10,945 | 8,461 | ||||||||||||
Dilutive effect of common stock equivalents (in shares) | 10 | 8 | 0 | ||||||||||||
Weighted average shares outstanding - diluted (in shares) | 12,639 | 10,953 | 8,461 | ||||||||||||
Income (loss) per common share - basic (in dollars per share) | $ 0.17 | $ 0.15 | $ 0.13 | $ 0.11 | $ 0.10 | $ 0.10 | $ 0.13 | $ 0.15 | $ 0.14 | $ (1.35) | $ 0.04 | $ 0.03 | $ 0.56 | $ 0.46 | $ (1.14) |
Income (loss) per common share - diluted (in dollars per share) | $ 0.17 | $ 0.15 | $ 0.13 | $ 0.11 | $ 0.10 | $ 0.10 | $ 0.13 | $ 0.15 | $ 0.14 | $ (1.35) | $ 0.04 | $ 0.03 | $ 0.56 | $ 0.46 | $ (1.14) |
EARNINGS_(LOSS) PER COMMON SH99
EARNINGS/(LOSS) PER COMMON SHARE (Details Textual) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 0 | 51 |
REGULATORY CAPITAL REQUIREME100
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 Capital | [1] | $ 126,024 | $ 112,511 |
Total Risk-Based Capital | [1] | 134,643 | 120,510 |
Net Risk-Weighted Assets | [1] | 807,807 | 736,763 |
Adjusted Average Total Assets | [1] | $ 1,116,692 | $ 1,075,674 |
Common Equity Tier 1 ratio | [1],[2] | 15.60% | |
Tier 1 Risk-Based Capital Ratio | [1] | 15.60% | 15.27% |
Total Risk-Based Capital Ratio | [1] | 16.67% | 16.36% |
Tier 1 Leverage Ratio | [1] | 11.29% | 10.46% |
Talbot Bank [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 Capital | [1] | $ 59,692 | $ 51,637 |
Total Risk-Based Capital | [1] | 64,405 | 55,910 |
Net Risk-Weighted Assets | [1] | 448,634 | 394,788 |
Adjusted Average Total Assets | [1] | $ 613,945 | $ 579,781 |
Common Equity Tier 1 ratio | [1],[2] | 13.31% | |
Tier 1 Risk-Based Capital Ratio | [1] | 13.31% | 13.08% |
Total Risk-Based Capital Ratio | [1] | 14.36% | 14.16% |
Tier 1 Leverage Ratio | [1] | 9.72% | 8.91% |
Centreville National Bank [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 Capital | [1] | $ 48,051 | $ 44,869 |
Total Risk-Based Capital | [1] | 51,957 | 48,594 |
Net Risk-Weighted Assets | [1] | 354,278 | 331,089 |
Adjusted Average Total Assets | [1] | $ 486,404 | $ 485,042 |
Common Equity Tier 1 ratio | [1],[2] | 13.56% | |
Tier 1 Risk-Based Capital Ratio | [1] | 13.56% | 13.55% |
Total Risk-Based Capital Ratio | [1] | 14.67% | 14.68% |
Tier 1 Leverage Ratio | [1] | 9.88% | 9.25% |
[1] | The capital ratios as of December 31, 2015 reflect the adoption of Basel III in effect beginning January 1, 2015 while ratios for the prior period represent the previous capital rules under Basel I. | ||
[2] | The Common Equity Tier 1 ratio is a new ratio under Basel III and represents common equity, less goodwill and intangible assets net of any deferred tax liabilities, divided by risk-weighted assets. |
REGULATORY CAPITAL REQUIREME101
REGULATORY CAPITAL REQUIREMENTS (Details Textual) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Additional Dividends Without Prior Consent And Approval Of Its Regulatory Agencies | $ 7,700 |
Excess Tier One Leverage Capital to Average Assets | 4.00% |
Excess Capital to Risk Weighted Assets | 8.00% |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% |
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 | 8.00% |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% |
Proceeds from Dividends Received | $ 280 |
Capital Conservation Buffer Period Increase | 0.625% |
Capital Conservation Buffer Final Level | 2.50% |
Tier One Risk Based Common Equity Required for Capital Adequacy to Risk Weighted Assets | 4.50% |
Tier One Risk Based Common Stock Required to be Well Capitalized to Risk Weighted Assets | 6.50% |
Excess Tier One Risk Based Capital to Risk Weighted Assets | 4.50% |
Additional Excess Tier One Risk Based Capital To Risk Weighted Assets | 0.625% |
Minimum [Member] | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Excess Tier One Risk Based Capital to Risk Weighted Assets | 4.00% |
Maximum [Member] | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Excess Tier One Risk Based Capital to Risk Weighted Assets | 6.00% |
ACCUMULATED OTHER COMPREHENS102
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), Beginning Balance | $ 316 | $ (437) |
Other comprehensive (loss) income | (387) | 767 |
Reclassification of (gains) losses recognized | 0 | (14) |
Accumulated other comprehensive income (loss), Ending Balance | (71) | 316 |
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 | 316 | (437) |
Other comprehensive (loss) income | (387) | 767 |
Reclassification of (gains) losses recognized | 0 | (14) |
Accumulated other comprehensive income (loss), Ending Balance | $ (71) | $ 316 |
ACCUMULATED OTHER COMPREHENS103
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total Reclassification for the Period | $ 0 | $ (14) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Realized gain on sale of investment securities | 0 | 14 | $ 545 |
Total Reclassification for the Period | $ 0 | $ 14 | $ 545 |
LINES OF CREDIT (Details Textua
LINES OF CREDIT (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||
Lines of Credit, Fair Value Disclosure | $ 13 | $ 15.5 |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months | $ 130.2 | $ 70.9 |
Line of Credit Facility, Commitment Fee Percentage | 0.10% | |
Line of Credit Facility, Frequency of Commitment Fee Payment | monthly |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | $ 212,165 | $ 236,108 |
Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 5,079 | 5,215 |
Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 207,086 | 230,893 |
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 | 5,079 | 5,215 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 5,079 | 5,215 |
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 |
U.S. Government agencies [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 49,529 | 74,960 |
U.S. Government agencies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
U.S. Government agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 49,529 | 74,960 |
U.S. Government agencies [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Mortgage-backed [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 156,916 | 155,303 |
Mortgage-backed [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Mortgage-backed [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 156,916 | 155,303 |
Mortgage-backed [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Equity [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 641 | 630 |
Equity [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Equity [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | 641 | 630 |
Equity [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale: | ||
Available-for-sale Securities, Fair Value Disclosure | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Det106
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Impaired loans: | ||
Impaired loans | $ 26,187 | $ 28,868 |
Other real estate owned | 4,252 | 3,691 |
Total assets measured at fair value on a nonrecurring basis | 30,439 | 32,559 |
Fair Value, Inputs, Level 1 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 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 | 26,187 | 28,868 |
Other real estate owned | 4,252 | 3,691 |
Total assets measured at fair value on a nonrecurring basis | 30,439 | 32,559 |
Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 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 | 10,979 | 10,026 |
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 | 10,979 | 10,026 |
Construction [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Residential Real Estate [Member] | ||
Impaired loans: | ||
Impaired loans | 7,510 | 9,304 |
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 | 7,510 | 9,304 |
Residential Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Commercial Real Estate [Member] | ||
Impaired loans: | ||
Impaired loans | 7,422 | 9,230 |
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 | 7,422 | 9,230 |
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Commercial [Member] | ||
Impaired loans: | ||
Impaired loans | 161 | 187 |
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 | 161 | 187 |
Commercial [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | 0 | 0 |
Consumer [Member] | ||
Impaired loans: | ||
Impaired loans | 115 | 121 |
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 | 115 | 121 |
Consumer [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans: | ||
Impaired loans | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Det107
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial assets, Carrying Amount | ||||
Cash and cash equivalents, Carrying Amount | $ 73,811 | $ 96,223 | $ 131,090 | $ 200,193 |
Investment securities held to maturity, Carrying Amount | 4,191 | 4,630 | ||
Loans, net, Carrying Amount | 786,798 | 703,051 | ||
Financial liabilities, Carrying Amount | ||||
Deposits, Carrying Amount | 975,464 | 949,004 | ||
Short-term borrowings, Carrying Amount | 6,672 | 4,808 | ||
Financial assets, Estimated Fair Value | ||||
Investment securities held to maturity, Estimated Fair Value | 4,243 | 4,694 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Financial assets, Carrying Amount | ||||
Cash and cash equivalents, Carrying Amount | 73,811 | 96,223 | ||
Investment securities held to maturity, Carrying Amount | 4,191 | 4,630 | ||
Loans, net, Carrying Amount | 786,798 | 703,051 | ||
Financial liabilities, Carrying Amount | ||||
Deposits, Carrying Amount | 975,464 | 949,004 | ||
Short-term borrowings, Carrying Amount | 6,672 | 4,808 | ||
Financial assets, Estimated Fair Value | ||||
Cash and cash equivalents, Estimated Fair Value | 73,811 | 96,223 | ||
Investment securities held to maturity, Estimated Fair Value | 4,243 | 4,694 | ||
Loans, net, Estimated Fair Value | 788,187 | 724,771 | ||
Financial liabilities, Estimated Fair Value | ||||
Deposits, Estimated Fair Value | 922,161 | 948,605 | ||
Short-term borrowings, Estimated Fair Value | $ 6,672 | $ 4,808 |
DERIVATIVE INSTRUMENTS AND H108
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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | |||||
Reduction in Money Market Deposits | $ 0 | |||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 0 | $ 0 | 681,000 | |||
Interest Expense Hedged Deposits | $ 695,000 | |||||
Accounts Payable, Interest-bearing | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS WITH O109
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to extend credit | $ 166,931 | $ 127,080 |
Letters of credit | 7,087 | 7,347 |
Total | $ 174,018 | $ 134,427 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Wye Financial and Trust [Member] | ||
Accrued Rent | $ 55 | $ 55 |
Wye Financial and Trust [Member] | Chief Executive Officer [Member] | ||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 50.00% | |
Tidewater Inn [Member] | ||
Payments for Rent | $ 38 | $ 29 |
Tidewater Inn [Member] | Director [Member] | ||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 61.00% |
PARENT COMPANY FINANCIAL INF111
PARENT COMPANY FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Premises and equipment, net | $ 16,864 | $ 16,275 | ||
Other assets | 23,920 | 27,162 | ||
Total assets | 1,135,143 | 1,100,402 | $ 1,054,124 | |
Liabilities | ||||
Other liabilities | 6,040 | 6,121 | ||
Total liabilities | 988,176 | 959,933 | ||
Stockholders’ equity | ||||
Common stock | 126 | 126 | ||
Retained earnings | 83,097 | 76,495 | ||
Accumulated other comprehensive income (loss) | (71) | 316 | (437) | |
Total stockholders’ equity | 146,967 | 140,469 | $ 103,299 | $ 114,026 |
Total liabilities and stockholders’ equity | 1,135,143 | 1,100,402 | ||
Shore Bancshares [Member] | ||||
Assets | ||||
Cash | 1,899 | 2,101 | ||
Investment securities | 12,246 | 9,723 | ||
Investment in subsidiaries | 129,353 | 126,857 | ||
Premises and equipment, net | 3,598 | 3,158 | ||
Other assets | 2,419 | 1,329 | ||
Total assets | 149,515 | 143,168 | ||
Liabilities | ||||
Accrued interest payable | 1 | 1 | ||
Other liabilities | 1,204 | 855 | ||
Long-term debt | 1,343 | 1,843 | ||
Total liabilities | 2,548 | 2,699 | ||
Stockholders’ equity | ||||
Common stock | 126 | 126 | ||
Additional paid in capital | 63,815 | 63,532 | ||
Retained earnings | 83,097 | 76,495 | ||
Accumulated other comprehensive income (loss) | (71) | 316 | ||
Total stockholders’ equity | 146,967 | 140,469 | ||
Total liabilities and stockholders’ equity | $ 149,515 | $ 143,168 |
PARENT COMPANY FINANCIAL INF112
PARENT COMPANY FINANCIAL INFORMATION (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | 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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Expenses | |||||||||||||||
Interest expense | $ 3,346 | $ 4,247 | $ 6,475 | ||||||||||||
Income tax benefit | 4,408 | 3,061 | (6,501) | ||||||||||||
Net income (loss) | $ 2,163 | $ 1,909 | $ 1,627 | $ 1,409 | $ 1,226 | $ 1,262 | $ 1,305 | $ 1,258 | $ 1,175 | $ (11,392) | $ 361 | $ 222 | 7,108 | 5,051 | (9,634) |
Shore Bancshares [Member] | |||||||||||||||
Income | |||||||||||||||
Dividends from subsidiaries | 1,045 | 200 | 2,163 | ||||||||||||
Management and other fees from subsidiaries | 8,723 | 7,933 | 6,226 | ||||||||||||
Other income | 228 | 110 | 31 | ||||||||||||
Total income | 9,996 | 8,243 | 8,420 | ||||||||||||
Expenses | |||||||||||||||
Interest expense | 61 | 80 | 88 | ||||||||||||
Salaries and employee benefits | 5,536 | 5,321 | 4,447 | ||||||||||||
Occupancy and equipment expense | 325 | 541 | 508 | ||||||||||||
Other operating expenses | 3,215 | 2,387 | 1,853 | ||||||||||||
Total expenses | 9,137 | 8,329 | 6,896 | ||||||||||||
Income (loss) before income tax benefit and equity in undistributed net income (loss) of subsidiaries | 859 | (86) | 1,524 | ||||||||||||
Income tax benefit | (65) | (107) | (61) | ||||||||||||
Income before equity in undistributed net income (loss) of subsidiaries | 924 | 21 | 1,585 | ||||||||||||
Equity in undistributed net income (loss) of subsidiaries | 6,184 | 5,030 | (11,219) | ||||||||||||
Net income (loss) | $ 7,108 | $ 5,051 | $ (9,634) |
PARENT COMPANY FINANCIAL INF113
PARENT COMPANY FINANCIAL INFORMATION (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | 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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||||||||||||||
Net income (loss) | $ 2,163 | $ 1,909 | $ 1,627 | $ 1,409 | $ 1,226 | $ 1,262 | $ 1,305 | $ 1,258 | $ 1,175 | $ (11,392) | $ 361 | $ 222 | $ 7,108 | $ 5,051 | $ (9,634) |
Adjustments to reconcile net (income) loss to cash provided by operating activities: | |||||||||||||||
Stock-based compensation expense | 283 | 87 | 78 | ||||||||||||
Excess tax benefit from stock-based arrangements | (3) | 0 | (26) | ||||||||||||
Net (increase) decrease in other assets | (870) | 170 | 4,703 | ||||||||||||
Net increase (decrease) in other liabilities | (15) | (1,044) | (1,458) | ||||||||||||
Net cash provided by operating activities | 15,115 | 13,179 | 19,847 | ||||||||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from maturities and principal payments of investment securities available for sale | 0 | 988 | 40,351 | ||||||||||||
Purchases of premises and equipment | (1,518) | (2,077) | (545) | ||||||||||||
Net cash provided by (used in) investing activities | (65,348) | (89,528) | 30,450 | ||||||||||||
Cash flows from financing activities: | |||||||||||||||
Excess tax benefit from stock-based arrangements | 3 | 0 | 26 | ||||||||||||
Proceeds from issuance of common stock | 0 | 31,279 | 0 | ||||||||||||
Common stock dividends paid | (506) | 0 | 0 | ||||||||||||
Net cash (used in) provided by financing activities | 27,821 | 41,482 | (119,400) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (22,412) | (34,867) | (69,103) | ||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 96,223 | 131,090 | 200,193 | 96,223 | 131,090 | 200,193 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | 73,811 | 96,223 | 131,090 | 73,811 | 96,223 | 131,090 | |||||||||
Shore Bancshares [Member] | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income (loss) | 7,108 | 5,051 | (9,634) | ||||||||||||
Adjustments to reconcile net (income) loss to cash provided by operating activities: | |||||||||||||||
Equity in undistributed net (income) loss of subsidiaries | (6,184) | (5,030) | 11,219 | ||||||||||||
Depreciation and amortization | 336 | 379 | 386 | ||||||||||||
Stock-based compensation expense | 283 | 87 | 78 | ||||||||||||
Excess tax benefit from stock-based arrangements | (3) | 0 | (26) | ||||||||||||
Net (increase) decrease in other assets | (1,108) | (121) | 128 | ||||||||||||
Net increase (decrease) in other liabilities | 328 | 271 | (53) | ||||||||||||
Net cash provided by operating activities | 760 | 637 | 2,098 | ||||||||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from maturities and principal payments of investment securities available for sale | 1,418 | 442 | 0 | ||||||||||||
Purchases of securities | (4,054) | (10,112) | 0 | ||||||||||||
Purchases of premises and equipment | (672) | (632) | (307) | ||||||||||||
Cash received from merged subsidiary | 3,349 | ||||||||||||||
Investment in subsidiaries | 0 | (20,000) | (1,650) | ||||||||||||
Net cash provided by (used in) investing activities | 41 | (30,302) | (1,957) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||
Repayment of long-term debt | (500) | (500) | 0 | ||||||||||||
Excess tax benefit from stock-based arrangements | 3 | 0 | 26 | ||||||||||||
Proceeds from issuance of common stock | 0 | 31,279 | 0 | ||||||||||||
Common stock dividends paid | (506) | 0 | 0 | ||||||||||||
Net cash (used in) provided by financing activities | (1,003) | 30,779 | 26 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (202) | 1,114 | 167 | ||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | $ 2,101 | $ 987 | $ 820 | 2,101 | 987 | 820 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 1,899 | $ 2,101 | $ 987 | $ 1,899 | $ 2,101 | $ 987 |
QUARTERLY FINANCIAL RESULTS 114
QUARTERLY FINANCIAL RESULTS (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | 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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Line Items] | |||||||||||||||
Interest income | $ 10,047 | $ 9,837 | $ 9,542 | $ 9,445 | $ 9,625 | $ 9,686 | $ 9,523 | $ 9,455 | $ 9,807 | $ 10,182 | $ 10,755 | $ 10,607 | $ 38,871 | $ 38,289 | $ 41,351 |
Net interest income | 9,293 | 9,010 | 8,683 | 8,539 | 8,636 | 8,636 | 8,447 | 8,323 | 8,570 | 8,828 | 9,001 | 8,477 | 35,525 | 34,042 | 34,876 |
Provision for credit losses | 475 | 410 | 540 | 650 | 650 | 775 | 950 | 975 | 474 | 22,460 | 2,700 | 2,150 | 2,075 | 3,350 | 27,784 |
Income (loss) before income taxes | 3,506 | 3,109 | 2,631 | 2,270 | 1,947 | 2,036 | 2,108 | 2,021 | 1,843 | (18,808) | 504 | 326 | 11,516 | 8,112 | (16,135) |
Net income (loss) | $ 2,163 | $ 1,909 | $ 1,627 | $ 1,409 | $ 1,226 | $ 1,262 | $ 1,305 | $ 1,258 | $ 1,175 | $ (11,392) | $ 361 | $ 222 | $ 7,108 | $ 5,051 | $ (9,634) |
Basic earnings (loss) per common share | $ 0.17 | $ 0.15 | $ 0.13 | $ 0.11 | $ 0.10 | $ 0.10 | $ 0.13 | $ 0.15 | $ 0.14 | $ (1.35) | $ 0.04 | $ 0.03 | $ 0.56 | $ 0.46 | $ (1.14) |
Diluted earnings (loss) per common share | $ 0.17 | $ 0.15 | $ 0.13 | $ 0.11 | $ 0.10 | $ 0.10 | $ 0.13 | $ 0.15 | $ 0.14 | $ (1.35) | $ 0.04 | $ 0.03 | $ 0.56 | $ 0.46 | $ (1.14) |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | 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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | $ 10,047 | $ 9,837 | $ 9,542 | $ 9,445 | $ 9,625 | $ 9,686 | $ 9,523 | $ 9,455 | $ 9,807 | $ 10,182 | $ 10,755 | $ 10,607 | $ 38,871 | $ 38,289 | $ 41,351 |
Interest expense | (3,346) | (4,247) | (6,475) | ||||||||||||
Provision for credit losses | (475) | (410) | (540) | (650) | (650) | (775) | (950) | (975) | (474) | (22,460) | (2,700) | (2,150) | (2,075) | (3,350) | (27,784) |
Noninterest income | 15,416 | 16,781 | 17,459 | ||||||||||||
Noninterest expense | (37,350) | (39,361) | (40,686) | ||||||||||||
Net intersegment (expense) income | 0 | 0 | 0 | ||||||||||||
(Loss) income before income taxes | 3,506 | 3,109 | 2,631 | 2,270 | 1,947 | 2,036 | 2,108 | 2,021 | 1,843 | (18,808) | 504 | 326 | 11,516 | 8,112 | (16,135) |
Income tax benefit (expense) | (4,408) | (3,061) | 6,501 | ||||||||||||
Net (loss) income | 2,163 | $ 1,909 | $ 1,627 | $ 1,409 | 1,226 | $ 1,262 | $ 1,305 | $ 1,258 | 1,175 | $ (11,392) | $ 361 | $ 222 | 7,108 | 5,051 | (9,634) |
Total assets | 1,135,143 | 1,100,402 | 1,054,124 | 1,135,143 | 1,100,402 | 1,054,124 | |||||||||
Community Banking [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | 38,652 | 38,202 | 41,310 | ||||||||||||
Interest expense | (3,346) | (4,247) | (6,475) | ||||||||||||
Provision for credit losses | (2,075) | (3,350) | (27,784) | ||||||||||||
Noninterest income | 7,135 | 6,482 | 5,716 | ||||||||||||
Noninterest expense | (21,480) | (22,776) | (23,676) | ||||||||||||
Net intersegment (expense) income | (7,718) | (7,010) | (5,359) | ||||||||||||
(Loss) income before income taxes | 11,168 | 7,301 | (16,268) | ||||||||||||
Income tax benefit (expense) | (4,274) | (2,755) | 6,556 | ||||||||||||
Net (loss) income | 6,894 | 4,546 | (9,712) | ||||||||||||
Total assets | 1,107,367 | 1,074,638 | 1,036,098 | 1,107,367 | 1,074,638 | 1,036,098 | |||||||||
Insurance Products and Services [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | 0 | 0 | 41 | ||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||||||
Noninterest income | 8,297 | 10,305 | 11,737 | ||||||||||||
Noninterest expense | (6,984) | (8,527) | (10,350) | ||||||||||||
Net intersegment (expense) income | (781) | (680) | (655) | ||||||||||||
(Loss) income before income taxes | 532 | 1,098 | 773 | ||||||||||||
Income tax benefit (expense) | (204) | (414) | (313) | ||||||||||||
Net (loss) income | 328 | 684 | 460 | ||||||||||||
Total assets | 9,984 | 10,824 | 15,759 | 9,984 | 10,824 | 15,759 | |||||||||
Parent Company [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | 219 | 87 | 0 | ||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||||||
Noninterest income | (16) | (6) | 6 | ||||||||||||
Noninterest expense | (8,886) | (8,058) | (6,660) | ||||||||||||
Net intersegment (expense) income | 8,499 | 7,690 | 6,014 | ||||||||||||
(Loss) income before income taxes | (184) | (287) | (640) | ||||||||||||
Income tax benefit (expense) | 70 | 108 | 258 | ||||||||||||
Net (loss) income | (114) | (179) | (382) | ||||||||||||
Total assets | $ 17,792 | $ 14,940 | $ 2,267 | $ 17,792 | $ 14,940 | $ 2,267 |