Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 21, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'FIRST NATIONAL COMMUNITY BANCORP INC | ' | ' |
Entity Central Index Key | '0001035976 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Trading Symbol | 'FNCB | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 16,517,319 | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $53,375,272 |
CONSOLIDATED_STATEMENTS_OF_FIN
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents: | ' | ' |
Cash and due from banks | $19,295 | $21,710 |
Interest-bearing deposits in other banks | 84,261 | 93,561 |
Total cash and cash equivalents | 103,556 | 115,271 |
Securities available for sale at fair value | 203,867 | 185,361 |
Securities held to maturity at amortized cost (fair value $2,424 and $2,483) | 2,308 | 2,198 |
Stock in Federal Home Loan Bank of Pittsburgh, at cost | 2,146 | 5,957 |
Loans held for sale | 820 | 1,615 |
Loans, net of allowance for loan and lease losses of $14,017 and $18,536 | 629,880 | 579,396 |
Bank premises and equipment, net | 15,363 | 18,937 |
Accrued interest receivable | 2,191 | 2,199 |
Refundable federal income taxes | 45 | 11,637 |
Intangible assets | 467 | 632 |
Bank-owned life insurance | 28,167 | 27,461 |
Other real estate owned | 4,246 | 3,983 |
Other assets | 10,752 | 13,627 |
Total Assets | 1,003,808 | 968,274 |
Deposits: | ' | ' |
Demand (non-interest-bearing) | 157,550 | 131,476 |
Interest-bearing | 727,148 | 723,137 |
Total deposits | 884,698 | 854,613 |
Borrowed funds | ' | ' |
Federal Home Loan Bank of Pittsburgh advances | 27,123 | 18,593 |
Subordinated debentures | 25,000 | 25,000 |
Junior subordinated debentures | 10,310 | 10,310 |
Total | 62,433 | 53,903 |
Accrued interest payable | 8,732 | 6,427 |
Other liabilities | 14,367 | 16,406 |
Total liabilities | 970,230 | 931,349 |
Shareholders' Equity | ' | ' |
Preferred Shares ($1.25 par) Authorized: 20,000,000 shares at December 31, 2013 and 2012 Issued and outstanding: 0 shares at December 31, 2013 and 2012 | 0 | 0 |
Common Shares ($1.25 par) Authorized: 50,000,000 shares at December 31, 2013 and 2012 Issued and outstanding: 16,471,569 at December 31, 2013 and 16,457,169 shares at December 31, 2012 | 20,589 | 20,571 |
Additional paid-in capital | 61,627 | 61,584 |
Accumulated deficit | -45,546 | -51,928 |
Accumulated other comprehensive (loss) income | -3,092 | 6,698 |
Total shareholders' equity | 33,578 | 36,925 |
Total Liabilities and Shareholders’ Equity | $1,003,808 | $968,274 |
CONSOLIDATED_STATEMENTS_OF_FIN1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION [Parenthetical] (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Held-to-maturity Securities, Fair Value | $2,424 | $2,483 |
Loans and Leases Receivable, Allowance | $14,017 | $18,536 |
Preferred Stock, Par or Stated Value Per Share | $1.25 | $1.25 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $1.25 | $1.25 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 16,471,569 | 16,457,169 |
Common Stock, Shares, Outstanding | 16,471,569 | 16,457,169 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest income | ' | ' | ' |
Interest and fees on loans | $27,097 | $29,588 | $34,467 |
Interest and dividends on securities | ' | ' | ' |
U.S. government agencies | 1,859 | 1,352 | 2,852 |
State and political subdivisions, tax-free | 3,277 | 3,931 | 5,093 |
State and political subdivisions, taxable | 463 | 482 | 112 |
Other securities | 154 | 1,484 | 234 |
Total interest and dividends on securities | 5,753 | 7,249 | 8,291 |
Interest on interest-bearing deposits and federal funds sold | 103 | 190 | 178 |
Total interest income | 32,953 | 37,027 | 42,936 |
Interest expense | ' | ' | ' |
Interest on deposits | 4,164 | 5,384 | 8,759 |
Interest on borrowed funds | ' | ' | ' |
Interest on Federal Home Loan Bank of Pittsburgh advances | 527 | 1,322 | 2,621 |
Interest on subordinated debentures | 2,281 | 2,288 | 2,281 |
Interest on junior subordinated debentures | 204 | 224 | 206 |
Total interest on borrowed funds | 3,012 | 3,834 | 5,108 |
Total interest expense | 7,176 | 9,218 | 13,867 |
Net interest income before (credit) provision for loan and lease losses | 25,777 | 27,809 | 29,069 |
(Credit) provision for loan and lease losses | -6,270 | 4,065 | 523 |
Net interest income after (credit) provision for loan and lease losses | 32,047 | 23,744 | 28,546 |
Non-interest income | ' | ' | ' |
Deposit service charges | 2,945 | 2,985 | 3,105 |
Net gain (loss) on the sale of securities | 2,887 | -1,712 | 5,114 |
Gross other-than-temporary-impairment (losses) gains | 0 | -96 | 751 |
Portion of gain recognized in OCI before taxes | 0 | 0 | -1,549 |
Other-than-temporary-impairment losses recognized in earnings | 0 | -96 | -798 |
Net gain on the sale of loans held for sale | 362 | 859 | 755 |
Net loss on the sale of classified loans | -223 | 0 | 0 |
Net gain on the sale of other real estate owned | 135 | 305 | 2,528 |
Gain on the sale of bank premises and equipment and other assets | 579 | 0 | 20 |
Loan-related fees | 423 | 514 | 673 |
Income from bank-owned life insurance | 706 | 692 | 787 |
Other | 1,469 | 736 | 765 |
Total non-interest income | 9,283 | 4,283 | 12,949 |
Non-interest expense | ' | ' | ' |
Salaries and employee benefits | 13,218 | 14,702 | 14,117 |
Occupancy expense | 2,215 | 2,225 | 2,508 |
Equipment expense | 1,468 | 1,723 | 1,654 |
Advertising expense | 523 | 614 | 629 |
Data processing expense | 2,066 | 2,141 | 2,036 |
Regulatory assessments | 2,515 | 2,721 | 3,159 |
Bank shares tax | 800 | 882 | 1,103 |
Expense of other real estate owned | 719 | 2,027 | 3,720 |
(Credit) provision for off-balance sheet commitments | -246 | 358 | -423 |
Legal expense | 2,488 | 4,233 | 2,716 |
Professional fees | 1,674 | 4,385 | 5,413 |
Insurance expenses | 1,179 | 896 | 685 |
Loan collection expenses | 482 | 765 | 780 |
Legal settlements | 2,500 | 446 | 0 |
Other operating expenses | 3,347 | 3,620 | 3,733 |
Total non-interest expense | 34,948 | 41,738 | 41,830 |
Income (loss) before income taxes | 6,382 | -13,711 | -335 |
Provision for income taxes | 0 | 0 | 0 |
Net income (loss) | $6,382 | ($13,711) | ($335) |
Earnings (loss) per share | ' | ' | ' |
Basic (in dollars per share) | $0.39 | ($0.83) | ($0.02) |
Diluted (in dollars per share) | $0.39 | ($0.83) | ($0.02) |
Cash Dividends Declared Per Common Share | $0 | $0 | $0 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ' | ' | ' |
Basic (in shares) | 16,458,353 | 16,442,160 | 16,439,508 |
Diluted (in shares) | 16,458,353 | 16,442,160 | 16,439,508 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income (loss) | $6,382 | ($13,711) | ($335) |
Other comprehensive (loss) income: | ' | ' | ' |
Unrealized (losses) gains on securities available for sale | -11,946 | 14,351 | 15,050 |
Taxes | 4,061 | -4,880 | -5,117 |
Net of tax amount | -7,885 | 9,471 | 9,933 |
Noncredit-related gains on OTTI securities not expected to be sold | 0 | 0 | 1,655 |
Taxes | 0 | 0 | -563 |
Net of tax amount | 0 | 0 | 1,092 |
Reclassification adjustment for (gains) losses included in net income (loss) | -2,887 | 1,808 | -4,316 |
Taxes | 982 | -614 | 1,467 |
Net of tax amount | -1,905 | 1,194 | -2,849 |
Total other comprehensive (loss) income | -9,790 | 10,665 | 8,176 |
Comprehensive (loss) income | ($3,408) | ($3,046) | $7,841 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income |
In Thousands, except Share data | |||||
Balances at Dec. 31, 2010 | $32,055 | $20,541 | $61,539 | ($37,882) | ($12,143) |
Balances (in shares) at Dec. 31, 2010 | ' | 16,433,020 | ' | ' | ' |
Net (loss) income for the year | -335 | ' | ' | -335 | ' |
Other comprehensive income (loss), net of tax | 8,176 | ' | ' | ' | 8,176 |
Proceeds from issuance of common shares through dividend reinvestment plan | 29 | 11 | 18 | ' | ' |
Proceeds from issuance of common shares through dividend reinvestment plan (in shares) | ' | 9,099 | ' | ' | ' |
Balances at Dec. 31, 2011 | 39,925 | 20,552 | 61,557 | -38,217 | -3,967 |
Balances (in shares) at Dec. 31, 2011 | ' | 16,442,119 | ' | ' | ' |
Net (loss) income for the year | -13,711 | ' | ' | -13,711 | ' |
Other comprehensive income (loss), net of tax | 10,665 | ' | ' | ' | 10,665 |
Stock-based compensation | 46 | 19 | 27 | ' | ' |
Stock-based compensation (in shares) | ' | 15,050 | ' | ' | ' |
Balances at Dec. 31, 2012 | 36,925 | 20,571 | 61,584 | -51,928 | 6,698 |
Balances (in shares) at Dec. 31, 2012 | 16,457,169 | 16,457,169 | ' | ' | ' |
Net (loss) income for the year | 6,382 | ' | ' | 6,382 | ' |
Other comprehensive income (loss), net of tax | -9,790 | ' | ' | ' | -9,790 |
Stock-based compensation | 61 | 18 | 43 | ' | ' |
Stock-based compensation (in shares) | ' | 14,400 | ' | ' | ' |
Balances at Dec. 31, 2013 | $33,578 | $20,589 | $61,627 | ($45,546) | ($3,092) |
Balances (in shares) at Dec. 31, 2013 | 16,471,569 | 16,471,569 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY [Parenthetical] (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ' | ' | ' |
Other comprehensive income, tax | ($5,043) | $5,494 | $4,213 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' |
Net income (loss) | $6,382 | ($13,711) | ($335) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Investment securities amortization (accretion), net | 487 | -1,628 | -1,293 |
Equity in trust | -6 | -7 | -4 |
Depreciation and amortization | 1,265 | 1,249 | 1,338 |
(Credit) provision for loan and lease losses | -6,270 | 4,065 | 523 |
Valuation adjustment for off-balance sheet commitments | -246 | 358 | -423 |
Stock-based compensation expense | 61 | 46 | 0 |
(Gain) loss on the sale of securities | -2,887 | 1,712 | -5,114 |
Other-than-temporary-impairment loss | 0 | 96 | 798 |
Gain on the sale of loans held for sale | -362 | -859 | -755 |
Loss on the sale of classified loans | 223 | 0 | 0 |
Gain on the sale of bank premises and equipment and other assets | -579 | 0 | -20 |
Loss on the disposition of bank premises and equipment and other assets | 0 | 142 | 0 |
Net gain on the sale of other real estate owned | -135 | -305 | -2,528 |
Valuation adjustment for other real estate owned | 223 | 1,206 | 2,318 |
Income from bank-owned life insurance | -706 | -692 | -787 |
Proceeds from the sale of loans held for sale | 12,944 | 27,017 | 28,573 |
Funds used to originate loans held for sale | -11,787 | -27,679 | -26,638 |
Decrease in interest receivable | 8 | 353 | 567 |
Decrease (increase) in refundable federal income taxes | 11,592 | -25 | 797 |
Decrease (increase) in prepaid expenses and other assets | 4,209 | -4,520 | 4,170 |
Increase in interest payable | 2,305 | 2,126 | 1,538 |
Increase in accrued expenses and other liabilities | 1,713 | 12 | 569 |
Total adjustments | 12,052 | 2,667 | 3,629 |
Net cash provided by (used in) operating activities | 18,434 | -11,044 | 3,294 |
Cash flows from investing activities: | ' | ' | ' |
Maturities, calls and principal payments of investment securities available-for-sale | 14,596 | 33,170 | 29,449 |
Proceeds from the sale of securities available for sale | 53,787 | 46,099 | 122,640 |
Purchases of securities available for sale | -99,432 | -63,279 | -63,409 |
Purchase of Federal Reserve Bank Stock | 0 | -90 | 0 |
Payment of liability for securities purchased not settled | 0 | -5,120 | 0 |
Redemption of the stock of the Federal Home Loan Bank of Pittsburgh | 3,811 | 2,442 | 1,912 |
Net (increase) decrease in loans to customers | -47,490 | 67,743 | 73,540 |
Proceeds from the sale of classified loans | 3,275 | 6,836 | 0 |
Proceeds from the sale of other real estate owned | 1,668 | 3,660 | 6,880 |
Purchases of bank premises and equipment | -810 | -1,601 | -893 |
Proceeds from the sale of bank premises and equipment | 1,831 | 0 | 32 |
Net cash (used in) provided by investing activities | -68,764 | 89,860 | 170,151 |
Cash flows from financing activities: | ' | ' | ' |
Net increase (decrease) in deposits | 30,085 | -102,523 | -25,300 |
Proceeds from Federal Home Loan Bank of Pittsburgh advances | 32,250 | 0 | 60,000 |
Repayment of Federal Home Loan Bank of Pittsburgh advances | -23,720 | -29,668 | -113,626 |
Repayment of other borrowed funds | 0 | 0 | -407 |
Proceeds from issuance of common shares, net of share issuance costs | 0 | 0 | 29 |
Net cash provided by (used in) financing activities | 38,615 | -132,191 | -79,304 |
Net (decrease) increase in cash and cash equivalents | -11,715 | -53,375 | 94,141 |
Cash & cash equivalents at beginning of year | 115,271 | 168,646 | 74,505 |
Cash & cash equivalents at end of year | 103,556 | 115,271 | 168,646 |
Cash paid (received) during the period for: | ' | ' | ' |
Interest | 4,871 | 7,092 | 12,329 |
Income taxes | -11,592 | 0 | -800 |
Other transactions: | ' | ' | ' |
Securities purchased, not settled | 0 | 0 | 5,120 |
Principal balance of loans transferred to other real estate owned | 255 | 1,586 | 3,995 |
Transfer of loans held for sale to loans | 0 | 0 | -1,289 |
Transfer from loans held for sale to other assets | 0 | 0 | 698 |
Transfer of bank premises and equipment to other real estate owned | 1,819 | 0 | 0 |
Deferred gain on sale of other real estate owned | $55 | $0 | $0 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2013 | |
Organization | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Note 1. Organization | |
First National Community Bancorp, Inc., is a registered bank holding company under the Bank Holding Company Act of 1956. It was incorporated under the laws of the Commonwealth of Pennsylvania in 1997. It is the parent company of First National Community Bank (the “Bank”) and the Bank’s wholly owned subsidiaries FNCB Realty Company, Inc., FNCB Realty Company I, LLC, and FNCB Realty Company II, LLC. Unless the context otherwise requires, the term “Company” is used to refer to First National Community Bancorp, Inc., and its subsidiaries. In certain circumstances, however, the term “Company” refers to First National Community Bancorp, Inc., itself. | |
The Bank provides customary retail services to individuals and businesses through its twenty-one banking locations located in northeastern Pennsylvania. | |
FNCB Realty Company, Inc., FNCB Realty Company I, LLC, and FNCB Realty Company II, LLC were formed to hold real estate and/or operate businesses acquired in exchange for debt settlement or foreclosure. | |
During December 2006 the Bank created First National Community Statutory Trust I (“Issuing Trust”) which is wholly owned by the Company. The Issuing Trust was formed to provide an additional funding source for the Company through the issuance of pooled trust preferred securities. The Company has adopted Accounting Standards Codification 810-10, Consolidation, for the issuing trust. Accordingly, this trust has not been consolidated with the accounts of the Company, because the Company is not the primary beneficiary of the trust. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Summary of Significant Accounting Policies | ' | ||
Significant Accounting Policies [Text Block] | ' | ||
Note 2. Summary of Significant Accounting Policies | |||
Basis of Presentation | |||
The consolidated financial statements of the Company include the accounts of First National Community Bancorp, Inc., the Bank, and the Bank’s wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated. The accounting and reporting policies of the Company conform to accounting principles general accepted in the United States of America (“GAAP”) and general practices within the financial services industry. | |||
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 significantly from these estimates. Material estimates that are particularly susceptible to change are the allowance for loan and lease losses, investment security valuations, the evaluation of investment securities and other real estate owned for impairment, and the evaluation of deferred income taxes. | |||
Cash Equivalents | |||
For purposes of reporting cash flows, cash equivalents include cash on hand, amounts due from banks and federal funds sold. Generally, federal funds are purchased and sold for one day periods. | |||
Securities | |||
The Company classifies investment securities as either held-to-maturity or available-for-sale at the time of purchase. Investment securities that are classified as held-to-maturity are carried at amortized cost when management has the positive intent and ability to hold them to maturity. Investment securities that are classified as available-for-sale are carried at fair value with unrealized gains and losses recognized as a component of shareholders’ equity in accumulated other comprehensive income. Gains and losses on sales of investment securities are recognized using the specific identification method on a trade date basis. Interest income on investments includes amortization of premiums and accretion of discounts. Realized gains and losses are derived based on the amortized cost of the security sold. | |||
Quarterly, the Company evaluates its investment securities classified as held-to-maturity or available-for-sale for other-than-temporary impairment (“OTTI”). Unrealized losses on securities are considered to be other-than-temporarily impaired when the Company believes the security’s impairment is due to factors that could include the issuer’s inability to pay interest or dividends, the issuer’s potential for default, and/or other factors. Based on current authoritative guidance, when a held-to-maturity or available-for-sale debt security is assessed for OTTI, the Company must first consider (a) whether management intends to sell the security and (b) whether it is more likely than not that the Company will be required to sell the security prior to recovery of its amortized cost basis. If one of these circumstances applies to a security, an OTTI loss is recognized in the statement of operations equal to the full amount of the decline in fair value below amortized cost. If neither of these circumstances applies to a security, but the Company does not expect to recover the entire amortized cost basis, an OTTI loss has occurred that must be separated into two categories: (a) the amount related to credit loss and (b) the amount related to other factors (such as market risk). In assessing the level of OTTI attributable to credit loss, the Company compares the present value of cash flows expected to be collected with the amortized cost basis of the security. The portion of the total OTTI related to credit loss is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as estimated based on cash flow projections discounted at the applicable original yield of the security, and is recognized in earnings, while the amount related to other factors is recognized in other comprehensive income. The total OTTI loss is presented in the statement of operations less the portion recognized in other comprehensive income. When a debt security becomes other-than-temporarily impaired, its amortized cost basis is reduced to reflect the portion of the total impairment related to credit loss. | |||
For equity securities, the entire decline in the value that is considered other-than-temporary is recognized in earnings. | |||
Investments in the Federal Reserve Bank and Federal Home Loan Bank stock have limited marketability, are carried at cost and are evaluated for impairment based on the Company’s determination of the ultimate recoverability of the par value of the stock. The investment in the Federal Reserve Bank stock is included in other assets. | |||
Loans and Loan Fees | |||
Loans receivable, other than loans held for sale, are stated at the principal outstanding, net of unamortized loan fees and costs, partial charge-offs and the allowance for loan and lease losses. Interest income on all loans is recognized using the effective interest method. Loan origination and commitment fees, as well as certain direct loan origination costs, are deferred and the net amount is amortized as an adjustment of the related loan’s yield. The Bank is generally amortizing these amounts over the life of the related loans except for residential mortgage loans, where the timing and amount of prepayments can be reasonably estimated. For these mortgage loans, the net deferred fees or costs are amortized over an estimated average life of five years. Amortization of deferred loan fees or costs is discontinued when a loan is placed on non-accrual status. | |||
Loans are placed on non-accrual status when a loan is specifically determined to be impaired or when management believes that the collection of interest or principal is doubtful. This is generally when a default of interest or principal has existed for 90 days or more, unless the loan is fully secured and in the process of collection, or when management becomes aware of facts or circumstances that the loan would default before 90 days. The Company determines delinquency status based on the number of days since the date of the borrower’s last required contractual loan payment. When the interest accrual is discontinued, the balance of any previously accrued but unpaid interest is reversed and charged against interest income. Any cash payments subsequently received are applied, first to the outstanding loan amounts, then to the recovery of any charged-off loan amounts. Any excess amount is treated as a recovery of lost interest. A non-accrual loan is returned to accrual status when the loan is current as to principal and interest payments, is performing according to contractual terms for six consecutive months and future payments are reasonably assured. | |||
In underwriting a loan secured by real property (unless exempt based on legal requirements), the Company requires an appraisal of the property by an independent licensed appraiser approved by the Bank’s Board of Directors. The appraisal is either reviewed internally or by an independent third party hired by the Bank. Generally, management obtains updated appraisals when a loan is deemed impaired. These appraisals may be more limited than those prepared for the underwriting of a new loan. | |||
Troubled Debt Restructurings | |||
A troubled debt restructuring (“TDR”) is a loan for which the Company, for legal or economic reasons related to a debtor’s financial difficulties, has granted a concession to the debtor that it otherwise would not have considered. Such concessions granted generally involve a reduction of the stated interest rate, an extension of a loan’s maturity date, or payment modifications. A non-accrual TDR is returned to accrual status if principal and interest payments under the modified terms are brought current, is performing under the modified terms for six consecutive months and future payments are reasonably assured. | |||
Loan Impairment | |||
A loan is considered impaired when it is probable that the Bank will be unable to collect all amounts due (including principal and interest) according to the contractual terms of the note and loan agreement. For purposes of the Company’s analysis, TDRs, loans rated substandard and on non-accrual status, and loans that are identified as doubtful or loss, are considered impaired. Impaired loans are analyzed individually for impairment. The Company generally utilizes the fair value of collateral method for collateral dependent loans. A loan is considered to be collateral dependent when repayment of the loan is expected to be provided through the liquidation of the collateral held. For impaired loans that are secured by real estate, external appraisals are obtained annually, or more frequently as warranted, to ascertain a fair value so that the impairment analysis can be updated. Should a current appraisal not be available at the time of impairment analysis, other sources of valuation such as current letters of intent, broker price opinions or executed agreements of sale may be used. For non-collateral dependent impaired loans and TDRs, the Company measures impairment based on the present value of expected future cash flows, discounted at the loan’s original effective interest rate. | |||
Generally all loans with balances of $100 thousand or less are considered within homogeneous pools and are not individually evaluated for impairment. However, individual loans with balances of $100 thousand or less are individually evaluated for impairment if that loan is part of a larger impaired loan relationship or the loan is considered a TDR. | |||
Impaired loans or portions thereof are charged-off upon determination that all or a portion of the loan balance is uncollectible and exceeds the fair value of the collateral. A loan is considered uncollectible when the borrower is delinquent with respect to principal or interest repayment and it is unlikely that the borrower will have the ability to pay the debt in a timely manner, collateral value is insufficient to cover the outstanding indebtedness and the guarantors (if applicable) do not provide adequate support for the loan. | |||
Allowance for Loan and Lease Losses | |||
Management continually evaluates the credit quality of the Company’s loan portfolio, and performs a formal review of the adequacy of the allowance for loan and lease losses (“ALLL”) on a quarterly basis. Management establishes the ALLL through provisions for loan losses charged to earnings and maintains the ALLL at a level it considers adequate to absorb probable losses inherent in the loan portfolio as of the evaluation date. Loans, or portions of loans, determined by management to be uncollectable are charged off against the ALLL, while recoveries of amounts previously charged off are credited to the ALLL. | |||
Determining the amount of the ALLL is considered a critical accounting estimate because it requires significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience and qualitative factors, and consideration of current economic trends and conditions, all of which may be susceptible to significant change. Various banking regulators, as an integral part of their examinations of the Company, also review the ALLL. Such regulators may require, based on their judgments about information available to them at the time of their examination, that certain loan balances be charged off or require that adjustments be made to the ALLL. Additionally, the ALLL is determined, in part, by the composition and size of the loan portfolio. | |||
The ALLL consists of two components, a specific component and a general component. The specific component relates to loans that are classified as impaired. For such loans an allowance is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers all other loans and is based on historical loss experience adjusted by qualitative factors. The general reserve component of the ALLL is based on pools of unimpaired loans segregated by loan segment and risk rating categories of “Pass”, “Special Mention” or “Substandard and Accruing.” Historical loss factors and various qualitative factors are applied based on the risk profile in each risk rating category to determine the appropriate reserve related to those loans. As previously mentioned, substandard loans on nonaccrual status are included in impaired loans. | |||
When establishing the ALLL, management categorizes loans into segments generally based on the nature of the collateral and basis of repayment. These risk characteristics of the Company’s loan segments are as follows: | |||
Construction, Land Acquisition and Development loans - These loans consist of loans secured by real estate, with the purpose of constructing one- to four-family homes, residential developments and various commercial properties including, shopping centers, office complexes and single-purpose, owner-occupied structures. Additionally, loans in this category include loans for land acquisition, secured by raw land. The Bank’s construction program offers either short-term, interest-only loans that require the borrower to pay interest only during the construction phase with a balloon payment of the principal outstanding at the end of the construction period or interest only during construction with a conversion to amortizing principal and interest when the construction is complete. Loans for undeveloped real estate are subject to a loan-to-value ratio not to exceed 65%. Construction loans are treated similarly to the developed real estate loans and are generally subject to an 80% loan to value ratio based upon an “as-completed” appraised value. Construction loans generally yield a higher interest rate than other mortgage loans but also carry more risk. | |||
Commercial Real Estate Loans - These loans represent the largest portion of the Bank’s total loan portfolio and loans in this portfolio generally carry larger loan balances. The commercial real estate mortgage loan portfolio is secured by a broad range of real estate, including but not limited to, office complexes, shopping centers, hotels, warehouses, gas stations/ convenience markets, residential care facilities, nursing care facilities, restaurants and multifamily housing. The Bank’s commercial real estate portfolio consists of owner-occupied properties and non-owner-occupied properties and includes the personal guarantees of the principals when deemed necessary. The Bank offers various rates and terms for commercial mortgage loans secured by real estate. The interest rates associated with these types of loans are primarily priced as adjustable-rate loans with re-pricing dates extending three through seven years or floating-rate loans that adjust to a spread over the National Prime Rate (“NPR”) index. Loan pricing for most floating-rate commercial mortgage loans generally has a minimum interest rate. The terms for commercial real estate loans typically do not exceed 20 years. Commercial real estate mortgage loans are originated under a comprehensive lending policy. In particular, these types of loans are subject to specific loan-to-value guidelines prior to the time of closing. The policy limits for developed real estate loans are subject to a maximum loan-to-value ratio of 80%. Commercial mortgage loans must also meet specific criteria that include the capacity, capital, credit worthiness and cash flow of the borrower and the project being financed. Potential borrower(s) and guarantor(s) are required to provide the Bank with historical and current financial data. As part of the underwriting process for commercial real estate loans, the Bank performs a review of the cash flow analysis of the borrower(s), guarantor(s) and the project. The Bank also considers the borrower’s expertise, credit history, net worth and the value of the underlying property. The Bank generally requires that borrowers for loans secured by real estate maintain a debt service coverage ratio of at least 1.20 times. | |||
Commercial and Industrial Loans - The Bank offers commercial loans to individuals and businesses located in its primary market area. The commercial loan portfolio includes lines of credit, dealer floor plan lines, equipment loans, vehicle loans, improvement loans and term loans. These loans are primarily secured by vehicles, machinery and equipment, inventory, accounts receivable, marketable securities, deposit accounts and real estate as secondary collateral . The Bank offers various rates and terms for commercial loans. These loans also normally require the personal guarantee of the principals where deemed necessary. Most lines of credit are primarily issued for one year time periods and are renewable annually thereafter at the discretion of the Bank. Most other commercial loans range in terms from one to seven years. The interest rates associated with these types of loans are primarily underwritten as fixed-rate loans based upon the term of the loan or floating-rate loans that adjust to a spread over the NPR index. Loan pricing for most floating-rate commercial loans generally have a minimum interest rate floor. The interest rate for most lines of credit is issued on a floating-rate basis. Finally, loans secured by deposit accounts are primarily underwritten at a spread over the interest rate of the deposit instrument used as collateral for the loan. | |||
State and Political Subdivision Loans - The Bank originates general obligation notes and tax anticipation loans to state and political subdivisions, which are primarily municipalities in the Bank’s market area. | |||
Residential Real Estate Loans - The Bank offers fixed- and variable-rate one- to four-family residential loans. Residential first lien mortgages are generally subject to an 80% loan to value ratio based on the appraised value of the property. The Bank will generally require the mortgagee to purchase Private Mortgage Insurance (“PMI”) if the amount of the loan exceeds the 80% loan to value ratio. The interest rates for the variable rate loans are adjusted to a percentage above the one year treasury rate. The Bank may sell loans and retain servicing when warranted by market conditions. The Bank also offers a rate lock to customers that allow the borrowers to lock in their interest rates at the time of application as well as at time of commitment. Residential mortgage loans are generally smaller in size and are considered homogeneous as they exhibit similar characteristics. | |||
Consumer Loans - Include both secured and unsecured installment loans, personal lines of credit and overdraft protection loans. The Bank is also in the business of underwriting indirect auto loans which are originated through various auto dealers in northeastern Pennsylvania and dealer floor plan loans. The Bank offers home equity loans and home equity lines of credit (“HELOCs”) with a maximum combined loan-to-value ratio of 90% based on the appraised value of the property. Home equity loans have fixed rates of interest and carry terms up to 15 years. HELOCs have adjustable interest rates and are based upon the prime interest rate. Consumer loans are generally smaller in size and exhibit homogeneous characteristics. | |||
Liability for Off-Balance-Sheet Credit-Related Financial Instruments | |||
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing need of its customers. These financial instruments include commitments to extend credit, unused portions of lines of credit, including revolving HELOCs, and letters of credit. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument is represented by the contractual notional amount of these instruments. The Company uses the same credit policies in making these commitments as it does for on-balance sheet instruments. In order to provide for probable losses inherent in these instruments, the Company records a reserve for unfunded commitments, included in other liabilities on the consolidated balance sheet, with the offsetting expense recorded in other operating expenses in the consolidated statements of operations. | |||
Mortgage Banking Activities | |||
Mortgage loans originated by the Bank and intended for sale are carried at the lower of aggregate cost or fair value determined on an individual loan basis. Net unrealized losses are recorded as a valuation allowance and charged to earnings. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold and include the value assigned to the rights to service the loan. Net gains on the sale of residential mortgage loans for the years ended December 31, 2013, 2012 and 2011 were $362 thousand, $859 thousand and $755 thousand, respectively. Loans held for sale are generally sold with loan servicing rights retained by the Company. At December 31, 2013 and 2012, loans held for sale amounted to $820 thousand and $1.6 million, respectively. | |||
Servicing | |||
Servicing assets are reported in other assets and amortized in proportion to and over the period during which estimated servicing income will be received. Servicing loans for others consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors, and processing foreclosures. Loan servicing income is recorded when earned and represents servicing fees from investors and certain charges collected from borrowers, such as late payment fees. The Company has fiduciary responsibility for related escrow and custodial funds. | |||
Servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For sales of mortgage loans originated by the Bank, a portion of the cost of originating the loan is allocated to the servicing retained right based on fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternately, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are amortized into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. | |||
Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Bank later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. | |||
Transfers of Financial Assets | |||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company ( put presumptively beyond the reach of the transferor and its creditors) even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. | |||
Other Real Estate Owned | |||
Other real estate owned (“OREO”) consists of property acquired by foreclosure, abandonment or conveyance of deed in-lieu of foreclosure of a loan, and bank premises that are no longer used for operations or for future expansion. OREO is held for sale and is initially recorded at fair value less costs to sell at the date of acquisition or transfer, which establishes a new cost basis. Upon acquisition of a property through foreclosure or deed in-lieu of foreclosure, any write-down to fair value less estimated selling costs is charged to the ALLL. The determination is made on an individual asset basis. Bank premises no longer used for operations or future expansion is transferred to OREO at fair value less estimated selling costs with any related write-down included in non-interest expense. Subsequent to acquisition or transfer, valuations of properties are periodically performed by management and the assets are carried at the lower of cost basis or fair value less estimated cost to sell. Fair value is determined through external appraisals, current letters of intent, broker price opinions or executed agreements of sale. Costs relating to the development and improvement of the OREO properties may be capitalized, while holding period costs are charged to expense as incurred. | |||
Bank Premises and Equipment | |||
Land is stated at cost. Bank premises, equipment and leasehold improvements are stated at cost less accumulated depreciation. Costs for routine maintenance and repair are expensed as incurred, while significant expenditures for improvements are capitalized. Depreciation expense is computed generally using the straight-line method over the following ranges of estimated useful lives, or in the case of leasehold improvements, to the expected terms of the leases, if shorter. | |||
Buildings and improvements | 10 to 40 years | ||
Furniture, fixtures and equipment | 3 to 15 years | ||
Leasehold improvements | 2 to 39 years | ||
Intangible Assets | |||
Intangible assets consist entirely of a core deposit intangible which arose in connection with the acquisition of the Bank’s Honesdale branch. The core deposit intangible is amortized over an estimated useful life of 10 years. | |||
Long-lived Assets | |||
Intangible assets and bank premises and equipment are reviewed by management at least annually for potential impairment and whenever events or circumstances indicate that carrying amounts may not be recoverable. | |||
Income Taxes | |||
The Bank recognizes income taxes under the asset and liability method. Under this method, 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 income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that all or some portion of the deferred tax assets will not be realized. | |||
The Company files a consolidated Federal income tax return. Under tax sharing agreements, each subsidiary provides for and settles income taxes with the Company as if it would have filed on a separate return basis. | |||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than-not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company determined that it had no liabilities for uncertain tax positions at December 31, 2013 and 2012. | |||
Interest and penalties related to income taxes, if any, are presented within non-interest expense. | |||
Earnings per Share | |||
Earnings per share is calculated on the basis of the weighted-average number of common shares outstanding during the year. Basic earnings per share excludes dilution and is computed by dividing net income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if outstanding stock options were exercised and converted into common stock. The dilutive effect of stock options is calculated using the treasury stock method. | |||
Stock-Based Compensation | |||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. All options are charged against income at their fair value. The entire expense of the award is recognized over the vesting period. Shares of stock granted are recorded at the fair value of the shares at the grant date, over the vesting period. | |||
Bank-Owned Life Insurance | |||
Bank-owned life insurance (“BOLI”) represents the cash surrender value of life insurance policies on certain current and former directors and officers of the Company. The Company purchased the insurance as a future source of funding for the Company’s liabilities, including the payment of employee benefits such as health care. BOLI is carried in the consolidated statements of financial condition at its cash surrender value. Increases in the cash value of the policies, as well as proceeds received, are recorded in non-interest income, and are not subject to income taxes. Under some of these policies, the beneficiaries receive a portion of the death benefit. The net present value of the future death benefits scheduled to be paid to the beneficiaries was $94 thousand and $99 thousand at December 31, 2013 and 2012, respectively, and is reflected in “Other Liabilities” on the consolidated statements of financial condition. | |||
Fair Value Measurement | |||
The Company uses fair value measurements to record fair value adjustments to certain financial assets and liabilities and to determine fair value disclosures. Available-for-sale securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to recognize adjustments to other assets at fair value on a nonrecurring basis, such as impaired loans, other securities, and OREO. | |||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities: it is not a forced transaction. | |||
Accounting standards define fair value, establish a framework for measuring fair value, establish a three-level hierarchy for disclosure of fair value measurement and provide disclosure requirements about fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. | |||
The three levels of the fair value hierarchy are: | |||
· | Level 1 valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. | ||
· | Level 2 valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data. | ||
· | Level 3 valuation is derived from other valuation methodologies including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. | ||
Comprehensive Income | |||
Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income (loss). Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the shareholders’ equity section of the statement of financial condition, such items, along with a net income (loss), are components of comprehensive income (loss). | |||
New Authoritative Accounting Guidance | |||
Accounting Standards Update (“ASU”) No. 2011-11, Balance Sheet (Topic 210): “Disclosures about Offsetting Assets and Liabilities” requires enhanced disclosures that will enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. This includes the effect or potential effect of rights of setoff associated with an entity’s recognized assets and recognized liabilities within the scope of this update. The amendments require enhanced disclosures by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either ASC 210-20-45 or ASC 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either ASC 210-20-45 or ASC 815-10-45. The Company adopted ASU No. 2011-11 on January 1, 2013. The adoption of this new guidance did not have an effect on the operating results or financial position of the Company. | |||
ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350): “Testing Indefinite-Lived Intangible Assets for Impairment” simplifies the guidance for testing the decline in realizable value (impairment) of indefinite-lived intangible assets other than goodwill. ASU No. 2012-02 allows an entity the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. An organization electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the organization determines, based on a qualitative assessment, that it is “more likely than not” that the asset is impaired. The Company adopted ASU 2012-02 on January 1, 2013. The adoption of this new guidance did not have an effect on the operating results or financial position of the Company. | |||
ASU No. 2013-01, Balance Sheet (Topic 210): “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” clarifies the scope of transactions that are subject to the disclosures about offsetting, specifically that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11. This update applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are offset in accordance with specific criteria contained in FASB Accounting Standards Codification or subject to a master netting arrangement or similar agreement. The Company adopted ASU 2013-01 on January 1, 2013. The adoption of this new guidance did not have an effect on the operating results or financial position of the Company. | |||
ASU No. 2013-02, Comprehensive Income (Topic 220): “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” improves the transparency of reporting these reclassifications. The new amendments require an organization to: present either on the face of the statement where income is presented or in the notes to the financial statements the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income; or cross reference to other disclosures currently required under GAAP for other reclassification items to be reclassified directly to income in their entirety in the same reporting period. The amendments apply to all public and private companies that report other comprehensive income. The Company adopted ASU 2013-02 on January 1, 2013. The adoption of this new guidance did not have an effect on the operating results or financial position of the Company; however, see Note 20 to the consolidated financial statements for additional disclosures related to the adoption of ASU No. 2013-02. | |||
Accounting Guidance to be Adopted in Future Periods | |||
ASU 2013-11, Income Taxes (Topic 740): “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and not combined with deferred tax assets. This guidance is effective prospectively for fiscal years, and interim periods within those years beginning after December 15, 2014, with early adoption permitted. The Company is evaluating the effect the adoption of ASU 2013-11 on January 1, 2015 may have on the operating results or financial position of the Company. | |||
ASU 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to residential real estate property upon completion of a foreclosure or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014, with early adoption permitted. The adoption of this guidance on January 1, 2015 is not expected to have a material effect on the operating results or financial position of the Company. | |||
Reclassification of Prior Year Financial Statements | |||
Certain reclassifications have been made to the prior year’s consolidated financial statements to conform to the current year’s presentation. Such reclassifications had no impact on the Company’s results of operations. | |||
RESTRICTED_CASH_BALANCES
RESTRICTED CASH BALANCES | 12 Months Ended |
Dec. 31, 2013 | |
RESTRICTED CASH BALANCES | ' |
RESTRICTED CASH BALANCES | ' |
Note 3. RESTRICTED CASH BALANCES | |
The Bank is required to maintain certain average reserve balances as established by the Federal Reserve Bank. The amount of those reserve balances for the reserve computation period which included December 31, 2013 and 2012 was $1.4 million for both years, which was satisfied through the restriction of vault cash and deposits maintained at the Federal Reserve Bank. | |
In addition, the Bank maintains compensating balances at correspondent banks, most of which are not required, but are used to offset specific charges for services. At December 31, 2013 and 2012, the amount of these balances was $379 thousand and $378 thousand, respectively. | |
SECURITIES
SECURITIES | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | |||||||||||||||||||
Note 4. SECURITIES | ||||||||||||||||||||
Securities have been classified as available-for-sale or held-to-maturity in the consolidated financial statements according to management’s intent. The following tables present the amortized cost, gross unrealized gains and losses, and the fair value of the Company’s available-for-sale and held-to-maturity securities at and December 31, 2013 and 2012: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||
Amortized | Holding | Holding | Fair | |||||||||||||||||
(in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
Available-for-sale: | ||||||||||||||||||||
Obligations of state and political subdivisions | $ | 79,488 | $ | 1,422 | $ | 2,856 | $ | 78,054 | ||||||||||||
Government-sponsored agency: | ||||||||||||||||||||
Collateralized mortgage obligations | 35,906 | 46 | 1,153 | 34,799 | ||||||||||||||||
Residential mortgage-backed securities | 91,648 | 98 | 2,090 | 89,656 | ||||||||||||||||
Corporate debt securities | 500 | - | 93 | 407 | ||||||||||||||||
Equity securities | 1,010 | - | 59 | 951 | ||||||||||||||||
Total available-for-sale securities | $ | 208,552 | $ | 1,566 | $ | 6,251 | $ | 203,867 | ||||||||||||
Held-to-maturity: | ||||||||||||||||||||
Obligations of state and political subdivisions | $ | 2,308 | $ | 116 | $ | - | $ | 2,424 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||
Amortized | Holding | Holding | Fair | |||||||||||||||||
(in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
Available-for-sale: | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 1,821 | $ | 70 | $ | - | $ | 1,891 | ||||||||||||
Obligations of state and political subdivisions | 95,312 | 8,922 | 733 | 103,501 | ||||||||||||||||
Government-sponsored agency: | ||||||||||||||||||||
Collateralized mortgage obligations | 8,805 | 311 | 13 | 9,103 | ||||||||||||||||
Residential mortgage-backed securities | 67,765 | 1,920 | 229 | 69,456 | ||||||||||||||||
Corporate debt securities | 500 | - | 90 | 410 | ||||||||||||||||
Equity securities | 1,010 | - | 10 | 1,000 | ||||||||||||||||
Total available-for-sale securities | $ | 175,213 | $ | 11,223 | $ | 1,075 | $ | 185,361 | ||||||||||||
Held-to-maturity: | ||||||||||||||||||||
Obligations of state and political subdivisions | $ | 2,198 | $ | 285 | $ | - | $ | 2,483 | ||||||||||||
At December 31, 2013 and 2012, securities with a carrying amount of $204.2 million and $185.0 million, respectively, were pledged as collateral to secure public deposits and for other purposes. | ||||||||||||||||||||
The following table shows the approximate fair value of the Company’s debt securities at December 31, 2013 using contractual maturities. Expected maturities will differ from contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Because collateralized mortgage obligations and mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary. | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Available-for-Sale | Held-to-Maturity | |||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||
(in thousands) | Cost | Value | Cost | Value | ||||||||||||||||
Amounts maturing in: | ||||||||||||||||||||
One year or less | $ | 595 | $ | 571 | $ | - | $ | - | ||||||||||||
One year through five years | - | - | - | - | ||||||||||||||||
After five years through ten years | 21,195 | 21,274 | 2,308 | 2,424 | ||||||||||||||||
After ten years | 58,198 | 56,616 | - | - | ||||||||||||||||
Collateralized mortgage obligations | 35,906 | 34,799 | - | - | ||||||||||||||||
Residential mortgage-backed securities | 91,648 | 89,656 | - | - | ||||||||||||||||
Total | $ | 207,542 | $ | 202,916 | $ | 2,308 | $ | 2,424 | ||||||||||||
Gross proceeds from the sale of securities for the years ended December 31, 2013, 2012, and 2011 were $53.8 million, $46.1 million, and $122.6 million, respectively, with the gross realized gains being $3.3 million, $1.4 million, $5.1 million, respectively, and gross realized losses being $408 thousand, $3.1 million, and $2 thousand, respectively. | ||||||||||||||||||||
The following tables indicate the length of time that individual securities held-to-maturity and available-for-sale have been in a continuous unrealized loss position at December 31, 2013 and 2012: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
(in thousands) | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Obligations of state and political subdivisions | $ | 33,835 | $ | 1,837 | $ | 4,756 | $ | 1,019 | $ | 38,591 | $ | 2,856 | ||||||||
Government-sponsored agency: | ||||||||||||||||||||
Collateralized mortgage obligations | 31,683 | 1,139 | 833 | 14 | 32,516 | 1,153 | ||||||||||||||
Residential mortgage-backed securities | 79,046 | 1,961 | 7,506 | 129 | 86,552 | 2,090 | ||||||||||||||
Corporate debt securities | - | - | 407 | 93 | 407 | 93 | ||||||||||||||
Equity securities | - | - | 941 | 59 | 941 | 59 | ||||||||||||||
Total | $ | 144,564 | $ | 4,937 | $ | 14,443 | $ | 1,314 | $ | 159,007 | $ | 6,251 | ||||||||
December 31, 2012 | ||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
(in thousands) | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Obligations of state and political subdivisions | $ | 8,649 | $ | 398 | $ | 4,139 | $ | 335 | $ | 12,788 | $ | 733 | ||||||||
Government-sponsored agency: | ||||||||||||||||||||
Collateralized mortgage obligations | 1,485 | 13 | 2 | - | 1,487 | 13 | ||||||||||||||
Residential mortgage-backed securities | 12,899 | 229 | - | - | 12,899 | 229 | ||||||||||||||
Corporate debt securities | - | - | 410 | 90 | 410 | 90 | ||||||||||||||
Equity securities | 990 | 10 | - | - | 990 | 10 | ||||||||||||||
Total | $ | 24,023 | $ | 650 | $ | 4,551 | $ | 425 | $ | 28,574 | $ | 1,075 | ||||||||
The majority of the Company’s securities portfolio is comprised of obligations of states and political subdivisions, residential mortgage-backed securities, including home equity conversion mortgages, and collateralized mortgage obligations. The Company held 105 securities that were in an unrealized loss position at December 31, 2013, with 23 of those securities in an unrealized loss position for more than 12 months. Substantially all of the unrealized losses relate to debt securities. | ||||||||||||||||||||
In determining whether unrealized losses are other-than-temporary, management considers the following factors: | ||||||||||||||||||||
· | The causes of the decline in fair value, such as credit deterioration, interest rate fluctuations, or market volatility; | |||||||||||||||||||
· | The severity and duration of the decline; | |||||||||||||||||||
· | Whether or not the Company expects to receive all contractual cash flows; | |||||||||||||||||||
· | The Company’s ability and intent to hold the security to allow for recovery in fair value, as well as the likelihood of such a recovery in the near term; | |||||||||||||||||||
· | The Company’s intent to sell the security, or if it is more likely than not that the Company will be required to sell the security, before recovery of its amortized cost basis, less any current-period credit loss. | |||||||||||||||||||
Management performed a review of the fair values of all securities as of December 31, 2013 and determined that movements in the fair values of the securities were consistent with the change in market interest rates. As a result of its review and considering the attributes of these debt securities, the Company concluded that the decreases in estimated fair value were temporary and OTTI did not exist at December 31, 2013. To date, the Company has received all scheduled principal and interest payments and expects to fully collect all future contractual principal and interest payments. The Company does not intend to sell the securities nor is it more likely than not that the Company will be required to sell the securities. | ||||||||||||||||||||
Management does not believe that any individual unrealized loss at December 31, 2013 represents OTTI. The unrealized losses reported for residential mortgage-backed securities and collateralized mortgage obligations relate entirely to securities issued by GNMA, FHLMC and FNMA that are currently rated AAA by Moody’s Investor Services or Aaa by Standard & Poor’s and are guaranteed by the U.S. government. The obligations of states and political subdivisions are comprised primarily of general-purpose debt obligations. The majority of these obligations have a credit quality rating of A or better and are secured by the unlimited taxing power of the issuers. In addition, the Company utilized a third party to perform an independent credit analysis of its state and political subdivision bonds that were either non-rated or had a rating below A. There was one obligation of a state and political subdivision that had a rating below A. According to the independent credit analysis, this bond was considered investment grade. | ||||||||||||||||||||
OTTI of Pooled Trust Preferred Collateralized Debt Obligations (“PreTSLs”): | ||||||||||||||||||||
At December 31, 2011, the Company held PreTSLs that were comprised of four securities collateralized by debt issued by bank holding companies and insurance companies. The Company divested its holdings of PreTSLs during 2012 and held no such securities at December 31, 2013 and 2012. | ||||||||||||||||||||
The table below provides a cumulative roll forward of OTTI credit losses recognized: | ||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2011 | |||||||||||||||||
Beginning Balance, January 1 | $ | - | $ | 8,619 | $ | 22,598 | ||||||||||||||
Credit losses on debt securities for which OTTI was not previously recognized | - | - | - | |||||||||||||||||
Additional credit losses on debt securities for which OTTI was previously recognized | - | 96 | 798 | |||||||||||||||||
Less: Sale of Private Label CMOs for which OTTI was previously recognized | - | - | - | |||||||||||||||||
Less: Sale of PreTSLs for which OTTI was previously recognized | - | -8,715 | -14,777 | |||||||||||||||||
Ending Balance, December 31 | $ | - | $ | - | $ | 8,619 | ||||||||||||||
Investments in FHLB of Pittsburgh and FRB stock, which have limited marketability, are carried at cost and totaled $3.5 million and $7.3 million at December 31, 2013 and 2012, respectively. Management noted no indicators of impairment for the FHLB of Pittsburgh and the FRB of Philadelphia during 2013. | ||||||||||||||||||||
LOANS
LOANS | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||
Note 5. LOANS | |||||||||||||||||||||||||||||
Loans receivable, net, consists of the following at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||
Residential real estate | $ | 114,925 | $ | 90,228 | |||||||||||||||||||||||||
Commercial real estate | 218,524 | 221,591 | |||||||||||||||||||||||||||
Construction, land acquisition and development | 24,382 | 32,502 | |||||||||||||||||||||||||||
Commercial and industrial | 127,021 | 109,693 | |||||||||||||||||||||||||||
Consumer | 118,645 | 109,783 | |||||||||||||||||||||||||||
State and political subdivisions | 39,875 | 33,978 | |||||||||||||||||||||||||||
Total loans, gross | 643,372 | 597,775 | |||||||||||||||||||||||||||
Unearned income | -143 | -103 | |||||||||||||||||||||||||||
Net deferred loan fees and costs | 668 | 260 | |||||||||||||||||||||||||||
Allowance for loan and lease losses | -14,017 | -18,536 | |||||||||||||||||||||||||||
Loans, net | $ | 629,880 | $ | 579,396 | |||||||||||||||||||||||||
The Company has granted loans, letters of credit and lines of credit to certain executive officers and directors of the Company as well as to certain related parties of executive officers and directors. These loans, letters of credit and lines of credit were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and, when made, did not involve more than normal risk of collectability. Refer to Note 14 to these consolidated financial statements for more information about related party transactions. | |||||||||||||||||||||||||||||
For information about credit concentrations within the Company’s loan portfolio, refer to Note 15 to these consolidated statements. | |||||||||||||||||||||||||||||
The Company originates one- to four-family mortgage loans for sale in the secondary market. During the years ended December 31, 2013, 2012 and 2011, the Company sold $12.6 million, $26.2 million and $28.1 million of one- to four-family mortgages, respectively. The Company retains servicing rights on these mortgages. | |||||||||||||||||||||||||||||
The Company had $820 thousand and $1.6 million in loans held-for-sale at December 31, 2013 and 2012, respectively. All loans held for sale are one- to four-family residential mortgage loans. | |||||||||||||||||||||||||||||
The Company sold one performing classified commercial real estate loan and five non-performing classified one- to four-family residential mortgage loans during the year ended December 31, 2013. The loans had an aggregate recorded investment of $3.5 million at the time of sale, after charge-offs recorded. There was a loss of $223 thousand recognized upon the sale of these loans which was included in non-interest income in 2013. The Company sold three non-performing commercial real estate loans during the year ended December 31, 2012. The three loans had an aggregate recorded investment of $6.8 million at the time of sale, after charge-offs recorded. No gain or loss was recognized upon the sale of these loans in 2012. | |||||||||||||||||||||||||||||
The Company does not have any lending programs commonly referred to as subprime lending. Subprime lending generally targets borrowers with weakened credit histories typically characterized by payment delinquencies, previous charge-offs, judgments, and bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burden ratios. | |||||||||||||||||||||||||||||
The Company provides for loan losses based on the consistent application of its documented ALLL methodology. Loan losses are charged to the ALLL and recoveries are credited to it. Additions to the ALLL are provided by charges against income based on various factors which, in management’s judgment, deserve current recognition of estimated probable losses. Loan losses are charged-off in the period the loans, or portion thereof, are deemed uncollectible. Generally, the Company will record a loan charge-off (including a partial charge-off) to reduce a loan to the estimated recoverable amount based on the methodology detailed below. The Company regularly reviews the loan portfolio and makes adjustments for loan losses in order to maintain the ALLL in accordance with GAAP. The ALLL consists primarily of the following two components: | |||||||||||||||||||||||||||||
-1 | Specific allowances are established for impaired loans, which are defined by the Company as all loan relationships with an aggregate outstanding balance greater than $100 thousand that are rated substandard and on non-accrual status, rated doubtful or loss, and all TDRs. The amount of impairment provided for as an allowance is represented by the deficiency, if any, between the carrying value of the loan and either (a) the present value of expected future cash flows discounted at the loan’s effective interest rate, (b) the loan’s observable market price, or (c) the fair value of the underlying collateral, less estimated costs to sell, for collateral dependent loans. Impaired loans that have no impairment losses are not considered for general valuation allowances described below. If the Company determines that collection of the impairment amount is remote, the Company will record a charge-off. | ||||||||||||||||||||||||||||
-2 | General allowances are established for loan losses on a portfolio basis for loans that do not meet the definition of impaired. The Company divides its portfolio into loan segments, with loans exhibiting similar characteristics. Loans rated special mention or substandard and accruing which are embedded in these loan segments are then separated from these loan segments. These loans are then subject to an analysis placing increased emphasis on the credit risk associated with these types of loans. The Company applies an estimated loss rate to each loan group. The loss rates applied are based on the Company’s own historical loss experience based on the loss rate for each segment of loans with similar risk characteristics in its portfolio. In addition management evaluates and applies certain qualitative or environmental factors that are likely to cause estimated credit losses associated with the Company’s existing portfolio that may differ from historical experience, which are discussed below. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be significantly more than the ALLL that is established, which could have a material negative effect on the Company’s operating results or financial condition. | ||||||||||||||||||||||||||||
Management makes adjustments for loan losses based on its evaluation of several qualitative and environmental factors, including but not limited to: | |||||||||||||||||||||||||||||
· | Changes in national, local, and business economic conditions and developments, including the condition of various market segments; | ||||||||||||||||||||||||||||
· | Changes in the nature and volume of the Company’s loan portfolio; | ||||||||||||||||||||||||||||
· | Changes in the Company’s lending policies and procedures, including underwriting standards, collection, charge-off and recovery practices and results; | ||||||||||||||||||||||||||||
· | Changes in the experience, ability and depth of the Company’s lending management and staff; | ||||||||||||||||||||||||||||
· | Changes in the quality of the Company's loan review system and the degree of oversight by the Company’s Board of Directors; | ||||||||||||||||||||||||||||
· | Changes in the trend of the volume and severity of past due and classified loans, including trends in the volume of non-accrual loans, TDRs and other loan modifications; | ||||||||||||||||||||||||||||
· | The existence and effect of any concentrations of credit and changes in the level of such concentrations; | ||||||||||||||||||||||||||||
· | The effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company's current loan portfolio; and | ||||||||||||||||||||||||||||
· | Analysis of our customers’ credit quality, including knowledge of their operating environment and financial condition. | ||||||||||||||||||||||||||||
Management evaluates the ALLL based on the combined total of the specific and general components. Generally, when the loan portfolio increases, absent other factors, the ALLL methodology results in a higher dollar amount of estimated probable losses. Conversely, when the loan portfolio decreases, absent other factors, the ALLL methodology results in a lower dollar amount of estimated probable losses. | |||||||||||||||||||||||||||||
Each quarter, management evaluates the ALLL and adjusts the ALLL as appropriate through a provision for loan losses. While the Company uses the best information available to make evaluations, future adjustments to the ALLL may be necessary if conditions differ substantially from the information used in making the evaluations. In addition, as an integral part of its examination process, the Office of the Comptroller of the Currency (“OCC”) periodically reviews the Company’s ALLL. The OCC may require the Company to adjust the ALLL based on its analysis of information available to it at the time of its examination. | |||||||||||||||||||||||||||||
In the fourth quarter of 2012, the Company changed its loan segment structure to combine the indirect auto loans and installment/HELOC loans, which were previously considered separate classes of consumer loans. Management determined that both loan classes exhibited similar risk characteristics and therefore did not need to be separately evaluated in the ALLL calculation. In addition, the Company no longer segregates solid waste landfill loans from other commercial and industrial loans. During 2012, a significant amount of the solid waste landfill loans were paid off. The remaining balance of these loans was not material to warrant evaluation as a separate class at December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
The following tables present activity in the ALLL, by loan category, the amount of gross loans receivable that are evaluated individually and collectively for impairment, and the related portion of the ALLL that is allocated to each loan portfolio segment for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses by Loan Category | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
(in thousands) | Residential | Commercial | Construction, | Commercial | Consumer | State and | Total | ||||||||||||||||||||||
Real Estate | Real Estate | Land | and Industrial | Political | |||||||||||||||||||||||||
Acquisition and | Subdivisions | ||||||||||||||||||||||||||||
Development | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | 1,764 | $ | 8,062 | $ | 2,162 | $ | 4,167 | $ | 1,708 | $ | 673 | $ | 18,536 | |||||||||||||||
Charge-offs | -664 | -65 | -179 | -341 | -655 | - | -1,904 | ||||||||||||||||||||||
Recoveries | 343 | 879 | 130 | 1,853 | 450 | - | 3,655 | ||||||||||||||||||||||
Provisions (credits) | 844 | -2,859 | -1,189 | -3,358 | 286 | 6 | -6,270 | ||||||||||||||||||||||
Ending balance, December 31, 2013 | $ | 2,287 | $ | 6,017 | $ | 924 | $ | 2,321 | $ | 1,789 | $ | 679 | $ | 14,017 | |||||||||||||||
Ending balance, December 31, 2013: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 12 | $ | 296 | $ | 1 | $ | - | $ | 1 | $ | - | $ | 310 | |||||||||||||||
Ending balance, December 31, 2013: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 2,275 | $ | 5,721 | $ | 923 | $ | 2,321 | $ | 1,788 | $ | 679 | $ | 13,707 | |||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance, December 31, 2013 | $ | 114,925 | $ | 218,524 | $ | 24,382 | $ | 127,021 | $ | 118,645 | $ | 39,875 | $ | 643,372 | |||||||||||||||
Ending balance, December 31, 2013: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,985 | $ | 6,626 | $ | 306 | $ | - | $ | 316 | $ | - | $ | 9,233 | |||||||||||||||
Ending balance, December 31, 2013: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 112,940 | $ | 211,898 | $ | 24,076 | $ | 127,021 | $ | 118,329 | $ | 39,875 | $ | 634,139 | |||||||||||||||
Allowance for Loan and Lease Losses by Loan Category | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
(in thousands) | Residential Real | Commercial | Construction, | Commercial | Consumer | State and | Total | ||||||||||||||||||||||
Estate | Real Estate | Land | and Industrial | Political | |||||||||||||||||||||||||
Acquisition and | Subdivisions | ||||||||||||||||||||||||||||
Development | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance, January 1, 2012 | $ | 1,823 | $ | 11,151 | $ | 2,590 | $ | 3,292 | $ | 1,526 | $ | 452 | $ | 20,834 | |||||||||||||||
Charge-offs | -683 | -3,298 | -258 | -3,389 | -673 | - | -8,301 | ||||||||||||||||||||||
Recoveries | 35 | 1,035 | 265 | 265 | 338 | - | 1,938 | ||||||||||||||||||||||
Provisions (credits) | 589 | -826 | -435 | 3,999 | 517 | 221 | 4,065 | ||||||||||||||||||||||
Ending balance, December 31, 2012 | $ | 1,764 | $ | 8,062 | $ | 2,162 | $ | 4,167 | $ | 1,708 | $ | 673 | $ | 18,536 | |||||||||||||||
Ending balance, December 31, 2012: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 40 | $ | 268 | $ | 2 | $ | - | $ | - | $ | - | $ | 310 | |||||||||||||||
Ending balance, December 31, 2012: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 1,724 | $ | 7,794 | $ | 2,160 | $ | 4,167 | $ | 1,708 | $ | 673 | $ | 18,226 | |||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance, December 31, 2012 | $ | 90,228 | $ | 221,591 | $ | 32,502 | $ | 109,693 | $ | 109,783 | $ | 33,978 | $ | 597,775 | |||||||||||||||
Ending balance, December 31, 2012: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,773 | $ | 11,459 | $ | 993 | $ | - | $ | - | $ | - | $ | 15,225 | |||||||||||||||
Ending balance, December 31, 2012: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 87,455 | $ | 210,132 | $ | 31,509 | $ | 109,693 | $ | 109,783 | $ | 33,978 | $ | 582,550 | |||||||||||||||
Allowance for Loan and Lease Losses by Loan Category | |||||||||||||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||
Real Estate | Commercial and Industrial | Consumer | |||||||||||||||||||||||||||
(in thousands) | Residential | Commercial | Construction, | Solid Waste | Commercial | Indirect | Installment/ | State and | Total | ||||||||||||||||||||
Real Estate | Real Estate | Land | Landfills | and | Auto | HELOC | Political | ||||||||||||||||||||||
Acquisition and | Industrial | Subdivisions | |||||||||||||||||||||||||||
Development | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance, January 1, 2011 | $ | 2,176 | $ | 9,640 | $ | 4,170 | $ | 11 | $ | 4,839 | $ | 597 | $ | 576 | $ | 566 | $ | 22,575 | |||||||||||
Charge-offs | -1,273 | -2,395 | -1,857 | - | -416 | -530 | -209 | - | -6,680 | ||||||||||||||||||||
Recoveries | 57 | 93 | 2,188 | - | 1,852 | 219 | 7 | - | 4,416 | ||||||||||||||||||||
Provisions (credits) | 863 | 3,813 | -1,911 | 5 | -2,999 | 516 | 350 | -114 | 523 | ||||||||||||||||||||
Ending balance, December 31, 2011 | $ | 1,823 | $ | 11,151 | $ | 2,590 | $ | 16 | $ | 3,276 | $ | 802 | $ | 724 | $ | 452 | $ | 20,834 | |||||||||||
Ending balance, December 31, 2011: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 65 | $ | 545 | $ | 91 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 701 | |||||||||||
Ending balance, December 31, 2011: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 1,758 | $ | 10,606 | $ | 2,499 | $ | 16 | $ | 3,276 | $ | 802 | $ | 724 | $ | 452 | $ | 20,133 | |||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
- | |||||||||||||||||||||||||||||
Ending balance, December 31, 2011 | $ | 80,056 | $ | 256,508 | $ | 33,450 | $ | 42,270 | $ | 131,963 | $ | 63,722 | $ | 48,056 | $ | 23,496 | $ | 679,521 | |||||||||||
Ending balance, December 31, 2011: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,615 | $ | 13,012 | $ | 2,979 | $ | - | $ | 4,066 | $ | - | $ | 31 | $ | - | $ | 23,703 | |||||||||||
Ending balance, December 31, 2011: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 76,441 | $ | 243,496 | $ | 30,471 | $ | 42,270 | $ | 127,897 | $ | 63,722 | $ | 48,025 | $ | 23,496 | $ | 655,818 | |||||||||||
Credit Quality Indicators – Commercial Loans | |||||||||||||||||||||||||||||
The Company continuously monitors the credit quality of its commercial loans. Credit quality is monitored by reviewing certain credit quality indicators. Management has determined that its credit risk ratings are the key credit quality indicator that best assist management in monitoring the credit quality of the Company’s loan receivables. | |||||||||||||||||||||||||||||
The Bank’s commercial loan classification and credit grading processes are part of the lending, underwriting, and credit administration functions to ensure an ongoing assessment of credit quality. Accurate and timely loan classification and credit grading is a critical component of loan portfolio management. Loan officers are required to review their loan portfolio risk ratings regularly for accuracy. The loan review function uses the same risk rating system in the loan review process. This allows an independent third party to assess the quality of the portfolio and compare the accuracy of ratings with the loan officer’s and management’s assessment. | |||||||||||||||||||||||||||||
A formal loan classification and credit grading system reflects the risk of default and credit losses. A written description of the risk ratings is maintained that includes a discussion of the factors used to assign appropriate classifications of credit grades to loans. The process identifies groups of loans that warrant the special attention of management. The risk grade groupings provide a mechanism to identify risk within the loan portfolio and provide management and the Board with periodic reports by risk category. The credit risk ratings play an important role in the establishment and evaluation of the provision for loan and lease losses and the ALLL. After determining the historical loss factor which is adjusted for qualitative and environmental factors for each portfolio segment, the portfolio segment balances that have been collectively evaluated for impairment are multiplied by the general reserve loss factor for the respective portfolio segments in order to determine the general reserve. Loans that have an internal credit rating of special mention or substandard follow the same process; however, the qualitative and environmental factors are further adjusted for the increased risk. | |||||||||||||||||||||||||||||
The Company utilizes a loan rating system that assigns a degree of risk to commercial loans based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Management analyzes these non-homogeneous loans individually by grading the loans as to credit risk and probability of collection for each type of loan. Commercial loans include commercial indirect auto loans which are not individually risk rated, and Construction, Land Acquisition and Development Loans include residential construction loans which are also not individually risk rated. These loans are monitored on a pool basis due to their homogeneous nature as described in “Credit Quality Indicators – Other Loans” below. The Company risk rates certain residential real estate loans and consumer loans that are part of a larger commercial relationship using its credit grading system. These loans are described in “Commercial Credit Quality Indicators.” The grading system contains the following basic risk categories: | |||||||||||||||||||||||||||||
1. Minimal Risk | |||||||||||||||||||||||||||||
2. Above Average Credit Quality | |||||||||||||||||||||||||||||
3. Average Risk | |||||||||||||||||||||||||||||
4. Acceptable Risk | |||||||||||||||||||||||||||||
5. Pass - Watch | |||||||||||||||||||||||||||||
6. Special Mention | |||||||||||||||||||||||||||||
7. Substandard - Accruing | |||||||||||||||||||||||||||||
8. Substandard - Non-Accrual | |||||||||||||||||||||||||||||
9. Doubtful | |||||||||||||||||||||||||||||
10. Loss | |||||||||||||||||||||||||||||
This analysis is performed on a quarterly basis using the following definitions for risk ratings: | |||||||||||||||||||||||||||||
Pass - Assets rated 1 through 5 are considered pass ratings. These assets show no current or potential problems and are considered fully collectible. All such loans are considered collectively for ALLL calculation purposes. However, accruing TDRs that have been performing for an extended period of time, do not represent a higher risk of loss, and have been upgraded to a pass rating are evaluated individually for impairment. | |||||||||||||||||||||||||||||
Special Mention – Assets classified as special mention assets do not currently expose the Company to a sufficient degree of risk to warrant an adverse classification but do possess credit deficiencies or potential weaknesses deserving close attention. Special Mention assets have a potential weakness or pose an unwarranted financial risk which, if not corrected, could weaken the asset and increase risk in the future. | |||||||||||||||||||||||||||||
Substandard - Assets classified as substandard have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||||||
Doubtful - Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable based on current circumstances. | |||||||||||||||||||||||||||||
Loss - Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not warranted. | |||||||||||||||||||||||||||||
The following tables present the recorded investment in loans receivable by the aforementioned class of loan and credit quality indicator at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Commercial Credit Quality Indicators | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
Construction, | State and | ||||||||||||||||||||||||||||
Residential Real | Commercial Real | Land Acquisition | Commercial and | Political | |||||||||||||||||||||||||
(in thousands) | Estate | Estate | and Development | Industrial | Consumer | Subdivisions | Total | ||||||||||||||||||||||
Internal risk rating | |||||||||||||||||||||||||||||
Pass | $ | 19,050 | $ | 191,601 | $ | 13,781 | $ | 113,048 | $ | 2,546 | $ | 39,151 | $ | 379,177 | |||||||||||||||
Special mention | 869 | 12,568 | 1,361 | 3,777 | - | - | 18,575 | ||||||||||||||||||||||
Substandard | 1,347 | 14,355 | 6,168 | 4,525 | 157 | 724 | 27,276 | ||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | ||||||||||||||||||||||
Loss | - | - | - | - | - | - | - | ||||||||||||||||||||||
Total | $ | 21,266 | $ | 218,524 | $ | 21,310 | $ | 121,350 | $ | 2,703 | $ | 39,875 | $ | 425,028 | |||||||||||||||
Commercial Credit Quality Indicators | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
Construction, | State and | ||||||||||||||||||||||||||||
Residential Real | Commercial Real | Land Acquisition | Commercial and | Political | |||||||||||||||||||||||||
(in thousands) | Estate | Estate | and Development | Industrial | Consumer | Subdivisions | Total | ||||||||||||||||||||||
Internal risk rating | |||||||||||||||||||||||||||||
Pass | $ | 17,138 | $ | 189,903 | $ | 23,052 | $ | 93,484 | $ | 3,324 | $ | 28,204 | $ | 355,105 | |||||||||||||||
Special mention | 564 | 8,587 | 57 | 7,437 | - | 849 | 17,494 | ||||||||||||||||||||||
Substandard | 2,309 | 23,101 | 7,395 | 3,395 | 143 | 4,925 | 41,268 | ||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | ||||||||||||||||||||||
Loss | - | - | - | - | - | - | - | ||||||||||||||||||||||
Total | $ | 20,011 | $ | 221,591 | $ | 30,504 | $ | 104,316 | $ | 3,467 | $ | 33,978 | $ | 413,867 | |||||||||||||||
Credit Quality Indicators – Other Loans | |||||||||||||||||||||||||||||
Certain residential real estate loans, consumer loans, and commercial indirect auto loans are monitored on a pool basis due to their homogeneous nature. Loans that are delinquent 90 days or more are placed on non-accrual status. The Company utilizes accruing versus non-accruing status as the credit quality indicator for these loan pools. The following tables present the recorded investment in residential real estate loans, consumer loans and commercial indirect auto loans based on payment activity at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Other Loans Credit Quality Indicators | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Accruing | Non-accruing | ||||||||||||||||||||||||||||
(in thousands) | Loans | Loans | Total | ||||||||||||||||||||||||||
Residential real estate | $ | 92,181 | $ | 1,478 | $ | 93,659 | |||||||||||||||||||||||
Construction, land acquisition and development - residential | 3,072 | - | 3,072 | ||||||||||||||||||||||||||
Commercial - indirect auto | 5,671 | - | 5,671 | ||||||||||||||||||||||||||
Consumer | 115,809 | 133 | 115,942 | ||||||||||||||||||||||||||
Total | $ | 216,733 | $ | 1,611 | $ | 218,344 | |||||||||||||||||||||||
Other Loans Credit Quality Indicators | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Accruing | Non-accruing | ||||||||||||||||||||||||||||
(in thousands) | Loans | Loans | Total | ||||||||||||||||||||||||||
Residential real estate | $ | 68,446 | $ | 1,771 | $ | 70,217 | |||||||||||||||||||||||
Construction, land acquisition and development - residential | 1,998 | - | 1,998 | ||||||||||||||||||||||||||
Commercial - indirect auto | 5,377 | - | 5,377 | ||||||||||||||||||||||||||
Consumer | 106,272 | 44 | 106,316 | ||||||||||||||||||||||||||
Total | $ | 182,093 | $ | 1,815 | $ | 183,908 | |||||||||||||||||||||||
Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The recorded investment of these non-accrual loans was $6.4 million and $9.7 million at December 31, 2013 and 2012, respectively. Generally, loans are placed on non-accruing status when they become 90 days or more delinquent, and remain on non-accrual status until they are brought current, have six months of performance under the loan terms, and factors indicating reasonable doubt about the timely collection of payments no longer exists. Therefore, loans may be current in accordance with their loan terms, or may be less than 90 days delinquent and still be on a non-accruing status. Loans past due 90 days or more and still accruing interest were $19 thousand and $57 thousand at December 31, 2013 and 2012, respectively, and consisted of loans that are well secured and in the process of renewal. | |||||||||||||||||||||||||||||
The following tables set forth the detail, and delinquency status, of past due and non-accrual loans at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Performing and Non-Performing Loan Delinquency Status | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Delinquency Status | |||||||||||||||||||||||||||||
0-29 Days | 30-59 Days | 60-89 Days | >/=160;90 Days | ||||||||||||||||||||||||||
(in thousands) | Past Due | Past Due | Past Due | Past Due | Total | ||||||||||||||||||||||||
Performing (accruing) loans: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | $ | 112,519 | $ | 571 | $ | 116 | $ | - | $ | 113,206 | |||||||||||||||||||
Commercial real estate | 213,660 | 629 | - | - | 214,289 | ||||||||||||||||||||||||
Construction, land acquisition and development | 24,259 | 78 | - | - | 24,337 | ||||||||||||||||||||||||
Total real estate | 350,438 | 1,278 | 116 | - | 351,832 | ||||||||||||||||||||||||
Commercial and industrial | 126,441 | 232 | 125 | 19 | 126,817 | ||||||||||||||||||||||||
Consumer | 116,710 | 1,420 | 362 | - | 118,492 | ||||||||||||||||||||||||
State and political subdivisions | 39,875 | - | - | - | 39,875 | ||||||||||||||||||||||||
Total peforming (accruing) loans | 633,464 | 2,930 | 603 | 19 | 637,016 | ||||||||||||||||||||||||
Non-accrual loans: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | 570 | 73 | 51 | 1,025 | 1,719 | ||||||||||||||||||||||||
Commercial real estate | 4,183 | 52 | - | - | 4,235 | ||||||||||||||||||||||||
Construction, land acquisition and development | - | - | 45 | - | 45 | ||||||||||||||||||||||||
Total real estate | 4,753 | 125 | 96 | 1,025 | 5,999 | ||||||||||||||||||||||||
Commercial and industrial | 181 | - | 23 | - | 204 | ||||||||||||||||||||||||
Consumer | 14 | 31 | 16 | 92 | 153 | ||||||||||||||||||||||||
State and political subdivisions | - | - | - | - | - | ||||||||||||||||||||||||
Total non-accrual loans | 4,948 | 156 | 135 | 1,117 | 6,356 | ||||||||||||||||||||||||
Total loans receivable | $ | 638,412 | $ | 3,086 | $ | 738 | $ | 1,136 | $ | 643,372 | |||||||||||||||||||
Performing and Non-Performing Loan Delinquency Status | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Delinquency Status | |||||||||||||||||||||||||||||
0-29 Days | 30-59 Days | 60-89 Days | >/=160;90 Days | ||||||||||||||||||||||||||
(in thousands) | Past Due | Past Due | Past Due | Past Due | Total | ||||||||||||||||||||||||
Performing (accruing) loans: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | $ | 86,301 | $ | 422 | $ | 31 | $ | 30 | $ | 86,784 | |||||||||||||||||||
Commercial real estate | 216,100 | 194 | - | - | 216,294 | ||||||||||||||||||||||||
Construction, land acquisition and development | 31,899 | 29 | - | - | 31,928 | ||||||||||||||||||||||||
Total real estate | 334,300 | 645 | 31 | 30 | 335,006 | ||||||||||||||||||||||||
Commercial and industrial | 108,932 | 517 | 20 | 27 | 109,496 | ||||||||||||||||||||||||
Consumer | 107,821 | 1,489 | 333 | - | 109,643 | ||||||||||||||||||||||||
State and political subdivisions | 33,978 | - | - | - | 33,978 | ||||||||||||||||||||||||
Total peforming (accruing) loans | 585,031 | 2,651 | 384 | 57 | 588,123 | ||||||||||||||||||||||||
Non-accrual loans: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | 953 | 105 | 230 | 2,156 | 3,444 | ||||||||||||||||||||||||
Commercial real estate | 250 | 121 | 4,352 | 574 | 5,297 | ||||||||||||||||||||||||
Construction, land acquisition and development | 446 | - | - | 128 | 574 | ||||||||||||||||||||||||
Total real estate | 1,649 | 226 | 4,582 | 2,858 | 9,315 | ||||||||||||||||||||||||
Commercial and industrial | 61 | 30 | 11 | 95 | 197 | ||||||||||||||||||||||||
Consumer | 2 | - | 2 | 136 | 140 | ||||||||||||||||||||||||
State and political subdivisions | - | - | - | - | - | ||||||||||||||||||||||||
Total non-accrual loans | 1,712 | 256 | 4,595 | 3,089 | 9,652 | ||||||||||||||||||||||||
Total loans receivable | $ | 586,743 | $ | 2,907 | $ | 4,979 | $ | 3,146 | $ | 597,775 | |||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||
The following tables present a distribution of the recorded investment, unpaid principal balance and related allowance for the Company’s impaired loans, which have been analyzed for impairment under ASC 310, at December 31, 2013 and 2012. Non-accrual loans other than TDRs, with balances less than the $100 thousand loan relationship threshold are not evaluated individually for impairment and are accordingly not included in the following tables. However, these loans are evaluated collectively for impairment as homogenous pools in the general allowance under ASC Topic 450. Total non-accrual loans, other than TDRs, with balances less than the $100 thousand loan relationship threshold that were evaluated under ASC Topic 450 amounted to $1.1 million and $1.9 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid Principal | Related | ||||||||||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | $ | 1,043 | $ | 1,125 | $ | - | |||||||||||||||||||||||
Commercial real estate | 4,060 | 4,435 | - | ||||||||||||||||||||||||||
Construction, land acquisition and development | - | - | - | ||||||||||||||||||||||||||
Total real estate loans | 5,103 | 5,560 | - | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||||||
Total impaired loans with no related allowance recorded | 5,103 | 5,560 | - | ||||||||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | 942 | 946 | 12 | ||||||||||||||||||||||||||
Commercial real estate | 2,566 | 2,566 | 296 | ||||||||||||||||||||||||||
Construction, land acquisition and development | 306 | 306 | 1 | ||||||||||||||||||||||||||
Total real estate loans | 3,814 | 3,818 | 309 | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | ||||||||||||||||||||||||||
Consumer | 316 | 316 | 1 | ||||||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||||||
Total impaired loans with a related allowance recorded | 4,130 | 4,134 | 310 | ||||||||||||||||||||||||||
Total of impaired loans | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | 1,985 | 2,071 | 12 | ||||||||||||||||||||||||||
Commercial real estate | 6,626 | 7,001 | 296 | ||||||||||||||||||||||||||
Construction, land acquisition and development | 306 | 306 | 1 | ||||||||||||||||||||||||||
Total real estate loans | 8,917 | 9,378 | 309 | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | ||||||||||||||||||||||||||
Consumer | 316 | 316 | 1 | ||||||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||||||
Total impaired loans | $ | 9,233 | $ | 9,694 | $ | 310 | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid Principal | Related | ||||||||||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | $ | 1,275 | $ | 1,378 | $ | - | |||||||||||||||||||||||
Commercial real estate | 389 | 665 | - | ||||||||||||||||||||||||||
Construction, land acquisition and development | 709 | 804 | - | ||||||||||||||||||||||||||
Total real estate loans | 2,373 | 2,847 | - | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||||||
Total impaired loans with no related allowance recorded | 2,373 | 2,847 | - | ||||||||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | 1,498 | 1,512 | 40 | ||||||||||||||||||||||||||
Commercial real estate | 11,070 | 11,070 | 268 | ||||||||||||||||||||||||||
Construction, land acquisition and development | 284 | 284 | 2 | ||||||||||||||||||||||||||
Total real estate loans | 12,852 | 12,866 | 310 | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||||||
Total impaired loans with a related allowance recorded | 12,852 | 12,866 | 310 | ||||||||||||||||||||||||||
Total of impaired loans | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | 2,773 | 2,890 | 40 | ||||||||||||||||||||||||||
Commercial real estate | 11,459 | 11,735 | 268 | ||||||||||||||||||||||||||
Construction, land acquisition and development | 993 | 1,089 | 2 | ||||||||||||||||||||||||||
Total real estate loans | 15,225 | 15,714 | 310 | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||||||
Total impaired loans | $ | 15,225 | $ | 15,714 | $ | 310 | |||||||||||||||||||||||
The total recorded investment in impaired loans, which consists of non-accrual loans with an aggregate loan relationship greater than $100,000 and TDRs, amounted to $9.2 million and $15.2 million at December 31, 2013 and 2012, respectively. The related allowance on impaired loans was $0.3 million as of both December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
The following table presents the average balance and the interest income recognized on impaired loans for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(in thousands) | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||||||
Balance | Income (1) | Balance | Income (1) | Balance | Income (1) | ||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | $ | 2,301 | $ | 22 | $ | 3,882 | $ | 11 | $ | 2,834 | $ | 7 | |||||||||||||||||
Commercial real estate | 10,004 | 313 | 14,196 | 328 | 12,827 | 184 | |||||||||||||||||||||||
Construction, land acquisition and development | 761 | 28 | 2,340 | 37 | 6,445 | 38 | |||||||||||||||||||||||
Total real estate | 13,066 | 363 | 20,418 | 376 | 22,106 | 229 | |||||||||||||||||||||||
Commercial and industrial | - | - | 2,521 | - | 4,971 | 9 | |||||||||||||||||||||||
Consumer | 79 | 3 | 232 | - | 58 | - | |||||||||||||||||||||||
State and political subdivisions | - | - | 157 | - | - | - | |||||||||||||||||||||||
Total impaired loans | $ | 13,145 | $ | 366 | $ | 23,328 | $ | 376 | $ | 27,135 | $ | 238 | |||||||||||||||||
(1) Interest income represents income recognized on performing TDRs. | |||||||||||||||||||||||||||||
Included in total impaired loans are performing TDRs of $4.0 million and $7.5 million as of December 31, 2013 and 2012, respectively. The Bank was not committed to lend additional funds to loans classified as a TDR as of December 31, 2013. | |||||||||||||||||||||||||||||
The additional interest income that would have been earned on non-accrual and restructured loans for the years ended December 31, 2013, 2012, and 2011 had these loans performed in accordance with their original terms approximated $572 thousand, $1.4 million, and $2.2 million, respectively. | |||||||||||||||||||||||||||||
Troubled Debt Restructured Loans | |||||||||||||||||||||||||||||
TDRs at December 31, 2013 and 2012 were $8.1 million and $8.9 million, respectively. Accruing and non-accruing TDRs were $4.0 million and $4.1 million, respectively at December 31, 2013 and $7.5 million and $1.4 million, respectively at December 31, 2012. Approximately $301 thousand and $257 thousand in specific reserves have been established for these loans as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan, an extension of the maturity date, or a permanent reduction of the recorded investment in the loan. | |||||||||||||||||||||||||||||
The following tables show the pre- and post- modification recorded investment in loans modified as TDRs during the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | ||||||||||||||||||||||||||
Modification | Modification | Modification | Modification | ||||||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | ||||||||||||||||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | ||||||||||||||||||||||||
(dollars in thousands) | Contracts | Investments | Investments | Contracts | Investments | Investments | |||||||||||||||||||||||
Troubled debt restructuring: | |||||||||||||||||||||||||||||
Residential real estate | 16 | $ | 827 | $ | 947 | 1 | $ | 624 | $ | 624 | |||||||||||||||||||
Commercial real estate | 2 | 4,561 | 4,561 | 3 | 2,428 | 2,428 | |||||||||||||||||||||||
Construction, land acquisition and development | - | - | - | 1 | 39 | 39 | |||||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | - | |||||||||||||||||||||||
Consumer | 2 | 318 | 318 | - | - | - | |||||||||||||||||||||||
Total new troubled debt restructuring | 20 | 5,706 | 5,826 | 5 | 3,091 | 3,091 | |||||||||||||||||||||||
One of the loans modified as a TDR during the year ended December 31, 2013 is supported by a 90.0% guarantee by the Small Business Administration. The unguaranteed portion of this loan was $395 thousand and the restructuring had no effect on the ALLL at December 31, 2013. The remaining TDRs described above increased the allowance for loan losses by $6 thousand and $224 thousand through allocation of a specific reserve for the years ended December 31, 2013 and 2012, respectively. There were no charge-offs that resulted from the TDRs described above during the year ended December 31, 2013 or 2012. | |||||||||||||||||||||||||||||
The following table shows the types of modifications made during the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Construction, | |||||||||||||||||||||||||||||
Land Acquisition | Commercial | ||||||||||||||||||||||||||||
Residential | Commercial | and | and | ||||||||||||||||||||||||||
(in thousands) | Real Estate | Real Estate | Development | Industrial | Consumer | Total | |||||||||||||||||||||||
Type of modification: | |||||||||||||||||||||||||||||
Extension of term | $ | 41 | $ | - | $ | - | $ | - | $ | 318 | $ | 359 | |||||||||||||||||
Extension of term and capitalization of taxes | 860 | - | - | - | - | 860 | |||||||||||||||||||||||
Principal forebearance | - | 4,561 | - | - | - | 4,561 | |||||||||||||||||||||||
Capitalization of taxes | 46 | - | - | - | - | 46 | |||||||||||||||||||||||
Total modifications | $ | 947 | $ | 4,561 | $ | - | $ | - | $ | 318 | $ | 5,826 | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||
Construction, | |||||||||||||||||||||||||||||
Land Acquisition | Commercial | ||||||||||||||||||||||||||||
Residential | Commercial | and | and | ||||||||||||||||||||||||||
(in thousands) | Real Estate | Real Estate | Development | Industrial | Consumer | Total | |||||||||||||||||||||||
Type of modification: | |||||||||||||||||||||||||||||
Extension of term | $ | 624 | $ | 432 | $ | 39 | $ | - | $ | - | $ | 1,095 | |||||||||||||||||
Extension of term and rate concession | - | 1,996 | - | - | - | 1,996 | |||||||||||||||||||||||
Total modifications | $ | 624 | $ | 2,428 | $ | 39 | $ | - | $ | - | $ | 3,091 | |||||||||||||||||
The following table summarizes TDRs which have re-defaulted (defined as past due 90 days) during the years ended December 31, 2013 and 2012 that were restructured within the twelve months prior to such re-default: | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||
(dollars in thousands) | Contracts | Investment | Contracts | Investment | |||||||||||||||||||||||||
Residential real estate | 1 | $ | 27 | 2 | $ | 196 | |||||||||||||||||||||||
Commercial real estate | - | - | - | - | |||||||||||||||||||||||||
Construction, land acquisition and development | - | - | 1 | 408 | |||||||||||||||||||||||||
Commercial and industrial | - | - | - | - | |||||||||||||||||||||||||
Total | 1 | $ | 27 | 3 | $ | 604 | |||||||||||||||||||||||
OTHER_REAL_ESTATE_OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||
Real Estate Owned [Text Block] | ' | ||||||||||
Note 6. OTHER REAL ESTATE OWNED | |||||||||||
The following schedule presents the composition of OREO at December 31, 2013 and 2012: | |||||||||||
December 31, | |||||||||||
(in thousands) | 2013 | 2012 | |||||||||
Land / lots | $ | 3,549 | $ | 2,711 | |||||||
Commercial real estate | 647 | 1,245 | |||||||||
Residential real estate | 50 | 27 | |||||||||
Total other real estate owned | $ | 4,246 | $ | 3,983 | |||||||
The following table presents the activity in OREO for the years ended December 31, 2013, 2012 and 2011: | |||||||||||
For the Years Ended December 31, | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Balance, beginning of year | $ | 3,983 | $ | 6,958 | $ | 9,633 | |||||
Loans transferred to OREO | 255 | 1,586 | 3,995 | ||||||||
Bank premises transferred to OREO | 1,819 | - | - | ||||||||
Valuation adjustments | -223 | -1,206 | -2,318 | ||||||||
Carrying value of OREO sold | -1,588 | -3,355 | -4,352 | ||||||||
Balance, end of year | $ | 4,246 | $ | 3,983 | $ | 6,958 | |||||
During 2013, the Company transferred three vacant lots with an aggregate carrying value of $1.8 million to OREO from bank premises and equipment that were previously held for future expansion and are now being held for sale. The three lots were written down to fair value less cost to sell of $1.7 million. The Company recognized a valuation adjustment of $69 thousand at the time of transfer, which is included in non-interest expense. | |||||||||||
The following table presents the components of net expense of OREO for the years ended December 31, 2013, 2012 and 2011: | |||||||||||
For the Years Ended December 31, | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Insurance | $ | 147 | $ | 65 | $ | 58 | |||||
Legal fees | 131 | 66 | 235 | ||||||||
Maintenance | 82 | 147 | 63 | ||||||||
(Income) losses from the operation of foreclosed properties | -27 | 24 | 22 | ||||||||
Professional Fees | 35 | 211 | 250 | ||||||||
Real estate taxes | 122 | 287 | 724 | ||||||||
Utilities | 6 | 21 | 48 | ||||||||
Impairment charges | 223 | 1,206 | 2,318 | ||||||||
Other | - | - | 2 | ||||||||
Total | $ | 719 | $ | 2,027 | $ | 3,720 | |||||
BANK_PREMISES_AND_EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
BANK PREMISES AND EQUIPMENT | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
Note 7. BANK PREMISES AND EQUIPMENT | ||||||||
The following table summarizes bank premises and equipment at December 31, 2013 and 2012: | ||||||||
December 31, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
Land | $ | 4,191 | $ | 6,779 | ||||
Buildings and improvements | 10,126 | 10,612 | ||||||
Furniture, fixtures and equipment | 12,575 | 12,106 | ||||||
Leasehold improvements | 4,953 | 4,689 | ||||||
Total | 31,845 | 34,186 | ||||||
Accumulated depreciation | -16,482 | -15,249 | ||||||
Net | $ | 15,363 | $ | 18,937 | ||||
Depreciation and amortization expense amounted to $1.3 million, $1.4 million and $1.3 million for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||
On December 31, 2013, the Company sold one of its administrative facilities located in Luzerne County, PA, with a carrying value of $1.2 million for $1.8 million. The Company recognized a gain of $579 thousand on the sale which is included in non-interest income. | ||||||||
SERVICING
SERVICING | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Servicing Loans [Abstract] | ' | |||||||
SERVICING | ' | |||||||
Note 8. SERVICING | ||||||||
The Company originates one-to-four-family residential loans that it sells in the secondary market. Servicing of these loans is retained by the Company. The Company also performs servicing for a pool of automobile loans sold in 2010. Loans serviced for others are not included in the accompanying consolidated statements of financial condition, but the related servicing income and expenses are recognized in the consolidated statements of operations. The unpaid balances of mortgage and other loans serviced for others were $130.5 million, $154.5 million and $180.0 million at December 31, 2013, 2012, and 2011, respectively. | ||||||||
The one- to four-family residential mortgage real estate loans were underwritten to Freddie Mac guidelines and were subsequently assigned and delivered to Freddie Mac. At December 31, 2013, substantially all of the loans serviced for others were performing in accordance with their contractual terms. | ||||||||
The following table summarizes the activity pertaining to mortgage servicing rights for the years ended December 31, 2013 and 2012: | ||||||||
For the Year Ended December 31, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
Balance, beginning of year | $ | 675 | $ | 777 | ||||
Mortgage servicing rights capitalized | 119 | 220 | ||||||
Amortization | -265 | -322 | ||||||
Balance, end of year | $ | 529 | $ | 675 | ||||
The fair value of all servicing assets was $990 thousand and $884 thousand at December 31, 2013 and 2012, respectively. Fair value has been determined using discount rates ranging from 2.75% to 8.31% and prepayment speeds ranging from 108% to 550% PSA, depending upon the stratification of the specific right. Based upon this fair value, management has determined that no valuation allowance associated with these mortgage servicing rights is necessary at December 31, 2013 and 2012. | ||||||||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
INTANGIBLE ASSETS | ' | |||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | |||||||
Note 9. INTANGIBLE ASSETS | ||||||||
Intangible assets consist entirely of a core deposit premium acquired in connection with the purchase of the Honesdale branch in 2006. The core deposit intangible is being amortized, using the straight-line method over the useful life of 10 years. Management reviews the core deposit intangible at least annually for potential impairment. Management’s evaluation at December 31, 2013 and 2012 indicated that there was no impairment to the core deposit intangible. | ||||||||
The following table summarizes core deposit intangible assets at December 31, 2013 and 2012: | ||||||||
December 31, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
Gross carrying amount | $ | 1,650 | $ | 1,650 | ||||
Accumulated amortization | -1,183 | -1,018 | ||||||
Net carrying amount | $ | 467 | $ | 632 | ||||
Amortization expense on core deposit intangible assets totaled $165 thousand in 2013, $165 thousand in 2012 and $166 thousand in 2011. Amortization expense on core deposit intangible assets with finite useful lives is expected to total $165 thousand for each of the years 2014 and 2015, and $137 thousand for 2016. | ||||||||
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Deposits [Abstract] | ' | ||||||||||
Deposit Liabilities Disclosures [Text Block] | ' | ||||||||||
Note 10. DEPOSITS | |||||||||||
The following table summarizes deposits at December 31, 2013 and 2012: | |||||||||||
December 31, | |||||||||||
(in thousands) | 2013 | 2012 | |||||||||
Demand (non-interest bearing) | $ | 157,550 | $ | 131,476 | |||||||
Interest-bearing: | |||||||||||
Interest-bearing demand | 334,742 | 321,863 | |||||||||
Savings | 87,806 | 83,101 | |||||||||
Time ($100,000 and over) | 161,959 | 144,844 | |||||||||
Other time | 142,641 | 173,329 | |||||||||
Total interest-bearing | 727,148 | 723,137 | |||||||||
Total deposits | $ | 884,698 | $ | 854,613 | |||||||
The Company had brokered deposits, which are classified as other time deposits in the above table, of $5.0 million and $15.7 million, at December 31, 2013 and 2012, respectively. | |||||||||||
The following table summarizes scheduled maturities of time deposits, including certificates of deposit and individual retirement accounts, at December 31, 2013: | |||||||||||
Time Deposits | |||||||||||
$100,000 | Other | ||||||||||
(in thousands) | and Over | Time Deposits | Total | ||||||||
2014 | $ | 99,990 | $ | 76,997 | $ | 176,987 | |||||
2015 | 48,950 | 36,483 | 85,433 | ||||||||
2016 | 9,970 | 16,491 | 26,461 | ||||||||
2017 | 1,123 | 5,923 | 7,046 | ||||||||
2018 | 1,760 | 6,211 | 7,971 | ||||||||
2019 and thereafter | 166 | 536 | 702 | ||||||||
Total | $ | 161,959 | $ | 142,641 | $ | 304,600 | |||||
Investment securities with a carrying value of $204.2 million and $185.0 million at December 31, 2013 and 2012, respectively, were pledged to collateralize certain municipal deposits. | |||||||||||
BORROWED_FUNDS
BORROWED FUNDS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
BORROWED FUNDS | ' | |||||||
Debt Disclosure [Text Block] | ' | |||||||
Note 11. BORROWED FUNDS | ||||||||
The following table summarizes the components of borrowed funds at December 31, 2013 and 2012: | ||||||||
December 31, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
FHLB advances | $ | 27,123 | $ | 18,593 | ||||
Subordinated debentures | 25,000 | 25,000 | ||||||
Junior subordinated debentures | 10,310 | 10,310 | ||||||
Total | $ | 62,433 | $ | 53,903 | ||||
The Company also utilizes short-term Federal funds purchased which represent overnight borrowings providing for the short-term funding requirements of the Bank and generally mature within one business day of the transaction. The Company did not purchase any short-term Federal funds during the years ended December 31, 2013. Federal Reserve Discount Window borrowings also represent overnight funding to meet the short-term liquidity requirements of the Bank and are fully collateralized with investment securities. Other than testing its availability for contingency funding planning purposes, the Company did not borrow from the Federal Reserve Discount Window during the year ended December 31, 2013. | ||||||||
The following table presents borrowed funds by their maturity dates at December 31, 2013: | ||||||||
December 31, 2013 | ||||||||
(in thousands) | Amount | Weighted | ||||||
Average | ||||||||
Interest Rate | ||||||||
Within one year | $ | 10,000 | 1.92 | % | ||||
After one year but within two years | 10,000 | 4.76 | % | |||||
After two years but within three years | 5,000 | 9 | % | |||||
After three years but within four years | 10,000 | 4.92 | % | |||||
After four years but within five years | 10,000 | 5.02 | % | |||||
After five years | 17,433 | 4.19 | % | |||||
Total | $ | 62,433 | 4.55 | % | ||||
The FHLB of Pittsburgh borrowings of $27.1 million are all fixed-rate advances having maturities of 90 days or more, and are collateralized either under a blanket pledge agreement for commercial real estate loans, one- to four-family mortgage loans, or mortgage-backed securities. In addition, the Company is required to purchase FHLB stock based upon the amount of advances outstanding. The Company was in compliance with this requirement, having a stock investment in FHLB of Pittsburgh of $2.1 million at December 31, 2013. Loans of $160.5 million and $118.9 million, at December 31, 2013 and 2012, respectively, were pledged to collateralize FHLB advances. | ||||||||
The maximum amount of borrowings outstanding at any month end during the years ended December 31, 2013 and 2012 was $79.8 million and $82.3 million, respectively. | ||||||||
On December 14, 2006, First National Community Statutory Trust I (the “Trust”), a trust formed under Delaware law that is an unconsolidated subsidiary of the Company, issued $10.0 million of trust preferred securities (the “Trust Securities”) at a variable interest rate of 7.02%, with a scheduled maturity of December 15, 2036. The Company owns all of the ownership interest in the Trust. The proceeds from the issue were invested in $10.3 million, 7.02% Junior Subordinated Debentures (the “Debentures”) issued by the Company. The interest rate on the Trust Securities and the Debentures resets quarterly at a spread of 1.67% above the current 3-month Libor rate. The average interest rate paid on the Debentures was 1.97% in 2013, 2.18% in 2012, and 2.00% in 2011. The Debentures are unsecured and rank subordinate and junior in right to all indebtedness, liabilities and obligations of the Company. The Debentures represent the sole assets of the Trust. Interest on the Trust Securities is deferrable until a period of twenty consecutive quarters has elapsed. The Company had the option, subject to required regulatory approval of the Federal Reserve, to prepay the trust securities beginning December 15, 2011. The Company has, under the terms of the Debentures and the related Indenture, as well as the other operative corporate documents, agreed to irrevocably and unconditionally guarantee the Trust’s obligations under the Debentures. At December 31, 2013 and 2012, accrued and unpaid interest associated with the Debentures amounted to $695 thousand and $491 thousand, respectively. | ||||||||
The Company has reflected this investment on a deconsolidated basis. As a result, the Debentures totaling $10.3 million, have been reflected in Borrowed Funds in the consolidated statements of financial condition at December 31, 2013 and 2012 under the caption “Junior Subordinated Debentures”. The Company records interest expense on the Debentures in its consolidated statement of operations. The Company also records its common stock investment issued by First National Community Statutory Trust I in “Other Assets” in its consolidated statements of financial condition at December 31, 2013 and 2012. | ||||||||
On September 1, 2009, the Company offered only to accredited investors up to $25.0 million principal amount of unsecured Subordinated Notes Due September 1, 2019 at a fixed interest rate of 9% per annum (the “Notes”) in denominations of $100 thousand and integral multiples of $100 thousand in excess thereof. The Notes mature on September 1, 2019. For the first five years from issuance, the Company will pay interest only on the Notes. Commencing September 1, 2015, the Company is required to pay both interest and a portion of the principal calculated to return the entire principal amount of the Notes at maturity subject to deferral. Payments of interest are payable to registered holders of the Notes (the “Noteholders”) quarterly on the first of every third month, subject to deferral. Payments of principal will be payable to the Noteholders annually beginning on September 1, 2015. The principal balance outstanding for these notes was $25.0 million at both December 31, 2013 and 2012. At December 31, 2013 and 2012, accrued and unpaid interest associated with the Notes amounted to $7.6 million and $5.3 million, respectively. | ||||||||
Pursuant to the November 24, 2010 Written Agreement (the “Agreement”) with the Federal Reserve Bank of Philadelphia (the “Reserve Bank”), the Company and its nonbank subsidiary may not make any payment of interest, principal or other amounts on the Company’s subordinated debentures or trust preferred securities without the prior written approval of the Reserve Bank and the Director. For more information refer to Note 17, “Regulatory Matters” to these consolidated financial statements. | ||||||||
The Company is currently deferring interest payments on the Company’s Debentures and Notes. The last payment made on the Debentures was the payment due on September 14, 2010 and the last payment made on the Notes was the payment due on September 1, 2010. | ||||||||
BENEFIT_PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
BENEFIT PLANS | ' |
Compensation and Employee Benefit Plans [Text Block] | ' |
Note 12. BENEFIT PLANS | |
The Bank has a defined contribution profit sharing plan which covers all eligible employees. The Bank’s contribution to the plan is determined at management’s discretion at the end of each year and funded. On April 25, 2012, the Board of Directors ratified an amendment to the defined contribution profit sharing plan to include the provisions under section 401(k) of the Internal Revenue Code (“401(k) ”). The 401(k) feature of the plan, which became effective on September 1, 2012, permits employees to make voluntary salary deferrals, either pre-tax or Roth, up to the dollar limit prescribed by law. The Company may make discretionary matching contributions equal to a uniform percentage of employee salary deferrals. Company discretionary matching contributions are determined each year by management. Since September 1, 2012, the Company has been matching 50.0% of employee salary deferrals up to 4.0% for each employee. Company matching contributions to the 401(k) Plan are funded bi-weekly and are included in salaries and employee benefits expense. Employee salary deferrals vest immediately, while Company discretionary contributions begin vesting 20.0% each year after two years of credited service. Employee participants are 100.0% vested after six years of credited service. | |
There were no discretionary annual contributions made to the profit sharing plan in 2013, 2012 and 2011. Discretionary matching contributions under the 401(k) feature of the plan totaled $129 thousand and $41 thousand in 2013 and 2012, respectively. There were no discretionary matching contributions made under the 401(k) feature of the plan in 2011. | |
The Bank has an unfunded non-qualified deferred compensation plan covering all eligible Bank officers and directors as defined by the plan. This plan permits eligible participants to elect to defer a portion of their compensation. Elective deferred compensation and accrued earnings, included in other liabilities in the accompanying statements of financial condition, aggregated $7.3 million at both December 31, 2013 and 2012. The Bank had not funded the deferred compensation plan as of December 31, 2013 or 2012. | |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||
Note 13. INCOME TAXES | |||||||||||
The following table presents a reconciliation between the effective income tax expense (benefit) and the income tax expense (benefit) that would have been provided at the federal statutory tax rate of 34.0% for each of the years ended December 31, 2013, 2012 and 2011: | |||||||||||
Year Ended December 31, | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Provision (benefit) at statutory tax rates | $ | 2,170 | $ | -4,662 | $ | -114 | |||||
Add (deduct): | |||||||||||
Tax effects of non-taxable income | -1,574 | -1,824 | -2,288 | ||||||||
Non-deductible interest expense | 37 | 65 | 98 | ||||||||
Bank-owned life insurance | -240 | -235 | -268 | ||||||||
Change in valuation allowance | -347 | 6,637 | 2,568 | ||||||||
Other items, net | -46 | 19 | 4 | ||||||||
Provision for income taxes | $ | - | $ | - | $ | - | |||||
The following table summarizes the components of the net deferred tax asset included in other assets at December 31, 2013, and the net deferred tax liability included in other liabilities at December 31, 2012: | |||||||||||
December 31, | |||||||||||
(in thousands) | 2013 | 2012 | |||||||||
Allowance for loan and lease losses | $ | 4,954 | $ | 6,603 | |||||||
Deferred compensation | 2,468 | 2,517 | |||||||||
Unrealized holding losses on securities available-for-sale | 1,592 | - | |||||||||
Other real estate owned valuation | 513 | 932 | |||||||||
Deferred intangible assets | 1,504 | 1,602 | |||||||||
Employee benefits | 91 | 41 | |||||||||
Accrued interest | 2,824 | 1,441 | |||||||||
AMT tax credits | 2,278 | 2,215 | |||||||||
Fixed asset valuation | - | 407 | |||||||||
Charitable contribution carryover | 399 | 312 | |||||||||
Accrued rent expense | 204 | 213 | |||||||||
Accrued vacation | 56 | 51 | |||||||||
Accrued real estate taxes | - | 14 | |||||||||
Accrued legal settlement costs | 850 | - | |||||||||
Deferred income | 33 | - | |||||||||
Net operating loss carryover | 18,616 | 18,422 | |||||||||
Gross deferred tax assets | 36,382 | 34,770 | |||||||||
Deferred loan origination fees | -338 | -34 | |||||||||
Unrealized holding gains on securities available-for-sale | - | -3,451 | |||||||||
Prepaid expenses | -56 | - | |||||||||
Depreciation | -261 | -254 | |||||||||
Gross deferred tax liabilities | -655 | -3,739 | |||||||||
Net deferred asset before valuation allowance | 35,727 | 31,031 | |||||||||
Valuation allowance | -34,135 | -34,482 | |||||||||
Net deferred tax assets (liabilities) | $ | 1,592 | $ | -3,451 | |||||||
As of December 31, 2013 and 2012, the Company has established a valuation allowance of $34.1 million and $34.5 million, respectively, related to net deferred tax assets that would be realizable based only on future taxable income. At December 31, 2013, no valuation allowance was recorded for the deferred tax asset related to the unrealized holding losses on securities available-for-sale because the Company had the intent and ability to hold these securities until recovery of the unrealized losses, which may be at maturity. The Company will continue to monitor its deferred tax position and may make changes to the valuation allowance recorded as circumstances change. | |||||||||||
As of December 31, 2013, the Company had $54.8 million of net operating loss carryovers resulting in deferred tax assets of $18.6 million. Beginning in 2031, these net operating loss carryovers will expire if not utilized. As of December 31, 2013, the Company also had $1.2 million of charitable contribution carryovers resulting in gross deferred tax assets of $399 thousand. These charitable contribution carryovers will expire after December 31, 2015 if not utilized. In addition, the Company had alternative minimum tax credit carryovers of $2.3 million as of December 31, 2013 that have an indefinite life. | |||||||||||
The Company records interest and penalties on potential income tax deficiencies as part of non-interest expense. In May 2012, the Company was contacted by the Internal Revenue Service (IRS) for examination of its 2010 and 2009 income tax returns. At December 31, 2012 and 2011, the Company had recognized $11.6 million of refundable federal income taxes associated with its net operating losses incurred in 2010 and 2009. The IRS concluded its examination of the 2010 and 2009 income tax returns in 2013 and the Company received the entire $11.6 million of refundable federal income taxes. | |||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
RELATED PARTY TRANSACTIONS | ' | |||||||
Related Party Transactions Disclosure [Text Block] | ' | |||||||
Note 14. RELATED PARTY TRANSACTIONS | ||||||||
The Company and the Bank have engaged in and intend to continue to engage in banking and financial transactions in the conduct of its business with directors and the executive officers of the Company and the Bank and their related parties. | ||||||||
The Bank has granted loans, letters of credit and lines of credit to directors, executive officers and their related parties. The following table summarizes the changes in the total amounts of such outstanding loans, advances under lines of credit as well as repayments during the years ended December 31, 2013 and 2012: | ||||||||
Year Ended December 31, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
Balance January 1, | $ | 33,296 | $ | 87,442 | ||||
New loans and advances | 50,260 | 64,509 | ||||||
Repayments | -50,794 | -118,655 | ||||||
Other (1) | -256 | - | ||||||
Balance December 31, | $ | 32,506 | $ | 33,296 | ||||
(1) Other represents loans to related parties that ceased being related parties during the year | ||||||||
At December 31, 2013, loans in the amount of $90 thousand made to directors, executive officers and their related parties were not performing in accordance with the terms of the loan agreements. | ||||||||
Included in related party loans is a commercial line of credit with a company owned by a director with a total aggregate balance outstanding of $8.5 million at December 31, 2013. The Company also sold a participation interest in this line to the same director in the amount of $5.2 million, of which $3.4 million is outstanding. The Bank receives a 25 basis point annual servicing fee from this director on the participation balance. At December 31, 2012, the aggregate amount outstanding under the line was $8.0 million and the participation interest sold under this line was $3.2 million. | ||||||||
Deposits from directors, executive officers and their related parties held by the Bank at December 31, 2013 and 2012 amounted to $115.5 million and $66.7 million, respectively. Interest paid on the deposits amounted to $80 thousand, $139 thousand, and $446 thousand for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||
In the course of its operations, the Company acquires goods and services from and transacts business with various companies of related parties. The Company believes these transactions were made on the same terms as those for comparable transactions with unrelated parties. The Company recorded payments for these services of $2.6 million, $1.6 million, and $1.8 million in 2013, 2012, and 2011, respectively. | ||||||||
Subordinated notes held by officers and directors and/or their related parties totaled $10.0 million at December 31, 2013 and 2012. There were no interest payments made to directors and/or their related parties in 2013, 2012 and 2011. Interest accrued and unpaid on the notes totaled $3.0 million and $2.1 million at December 31, 2013 and 2012, respectively. | ||||||||
During the year ended December 31, 2012, the Company sold an OREO property to a related party for $202 thousand, with a gain of $41 thousand recognized on the sale. | ||||||||
COMMITMENTS_CONTINGENCIES_AND_
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | ' | ||||||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||||||||||
Note 15. COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | |||||||||||||
Leases | |||||||||||||
At December 31, 2013, the Company was obligated under certain non-cancelable leases with initial or remaining terms of one year or more. Minimum future obligations under non-cancelable leases in effect at December 31, 2013 are as follows: | |||||||||||||
Minimum Future Lease Payments | |||||||||||||
December 31, 2013 | |||||||||||||
(in thousands) | Facilities | Equipment | Total | ||||||||||
2014 | $ | 604 | $ | 54 | $ | 658 | |||||||
2015 | 316 | 21 | 337 | ||||||||||
2016 | 281 | - | 281 | ||||||||||
2017 | 243 | - | 243 | ||||||||||
2018 | 172 | - | 172 | ||||||||||
2019 and thereafter | 449 | - | 449 | ||||||||||
Total | $ | 2,065 | $ | 75 | $ | 2,140 | |||||||
Total rental expense under leases amounted to $692 thousand, $734 thousand and $725 thousand in 2013, 2012 and 2011, respectively. | |||||||||||||
Financial Instruments with off-balance sheet commitments | |||||||||||||
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit that involve varying degrees of credit, interest rate or liquidity risk in excess of the amount recognized in the balance sheet. The Company’s exposure to credit loss from nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. | |||||||||||||
Financial instruments whose contract amounts represent credit risk at December 31 are as follows: | |||||||||||||
December 31, | |||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||
Commitments to extend credit | $ | 155,701 | $ | 166,722 | |||||||||
Standby letters of credit | 25,321 | 35,277 | |||||||||||
Commitments to extend credit are agreements to lend to customers in accordance with contractual provisions. These commitments usually are for specific periods or contain termination clauses and may require the payment of a fee. The total amounts of unused commitments do not necessarily represent future cash requirements, in that commitments often expire without being drawn upon. | |||||||||||||
Letters of credit and financial guarantees are agreements whereby the Company guarantees the performance of a customer to a third party. Collateral may be required to support letters of credit in accordance with management’s evaluation of the creditworthiness of each customer. The credit exposure assumed in issuing letters of credit is essentially equal to that in other lending activities. | |||||||||||||
Federal Home Loan Bank — Mortgage Partnership Finance Program | |||||||||||||
Under a secondary market loan servicing program with the FHLB, the Company, in exchange for a monthly fee, provides a credit enhancement guarantee to the FHLB for foreclosure losses in excess of 1% of original loan principal sold to the FHLB. At December 31, 2013, the Company serviced payments on $10.6 million of first lien residential loan principal under these terms for the FHLB. At December 31, 2013, the maximum obligation for such guarantees by the Company would be approximately $1.5 million if total foreclosure losses on the entire pool of loans exceed approximately $77 thousand. Management believes the likelihood of a reimbursement for loss payable to the FHLB beyond the monthly credit enhancement fee is remote. | |||||||||||||
Concentrations of Credit Risk | |||||||||||||
Cash Concentrations: The Bank maintains cash balances at several correspondent banks. Except for the account with the FHLB, there were no due from bank accounts in excess of the $250 thousand limit covered by the Federal Deposit Insurance Corporation as of December 31, 2013 and 2012. The balance in the Bank’s account at the FHLB was $298 thousand and $304 thousand at December 31, 2013 and 2012, respectively. | |||||||||||||
Loan Concentrations: The Company attempts to limit its exposure to concentrations of credit risk by diversifying its loan portfolio and closely monitoring any concentrations of credit risk. The commercial real estate and construction, land acquisition and development portfolios comprise $242.9 million, or 37.8% of gross loans at December 31, 2013. Geographic concentrations exist because the Company provides its services in its primary market area of Northeastern Pennsylvania and conducts limited activities outside of that area. At December 31, 2013, the Company had commercial real estate and construction, land acquisition and development loans and loan commitments totaling $38.9 million, or 6.1%, of gross loans to customers outside of it primary market area. | |||||||||||||
At December 31, 2013 and 2012, the Bank’s loan portfolio was concentrated in loans in the following industries. | |||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||
(dollars in thousands) | Amount | % of gross | Amount | % of gross | |||||||||
loans | loans | ||||||||||||
Automobile dealers | $ | 18,467 | 2.87 | % | $ | 10,607 | 1.77 | % | |||||
Land subdivision | 15,974 | 2.48 | % | 17,658 | 2.95 | % | |||||||
Physicians | 13,932 | 2.17 | % | 9,269 | 1.55 | % | |||||||
Colleges and universities | 12,671 | 1.97 | % | 4,879 | 0.82 | % | |||||||
Solid waste landfills | 12,254 | 1.9 | % | 13,233 | 2.21 | % | |||||||
Hotels | 9,847 | 1.53 | % | 13,596 | 2.27 | % | |||||||
Office complexes/units | 9,636 | 1.5 | % | 9,801 | 1.64 | % | |||||||
Shopping centers/complexes | 8,083 | 1.26 | % | 21,068 | 3.52 | % | |||||||
Litigation | |||||||||||||
On May 24, 2012, a putative shareholder by the name of Lori Gray filed a complaint in the Court of Common Pleas in Lackawanna County against certain present and former directors of the Company (including all of the current directors except Steven R. Tokach and Thomas J. Melone) and Demetrius & Company, LLC (“Demetrius”) alleging, inter alia, breach of fiduciary duty, abuse of control, corporate waste, unjust enrichment and, in the case of Demetrius, professional negligence, negligent misrepresentation, breach of contract and aiding and abetting breach of fiduciary duty. The Company was named as a nominal defendant. The Board had appointed a special committee in January 2012 to investigate the matters raised in the Gray complaint. The special committee retained independent counsel to assist with its investigation. Following the investigation, the special committee found that the Board had not breached its fiduciary duty to shareholders. Subsequently, the parties commenced settlement discussions and on December 18, 2013, the Court entered an Order Granting Preliminary Approval of Proposed Settlement subject to notice to shareholders. On February 4, 2014, the Court issued a Final Order and Judgment for the matter granting approval of a Stipulation of Settlement (the “Settlement”) and dismissing all claims against the Company and its directors. As part of the Settlement, there was no admission of liability by the Board. Pursuant to the Settlement, the Board, without admitting any fault, wrongdoing or liability, agreed to settle the derivative litigation for $5 million, which is expected to be paid to the Company by the individual defendants in the first half of 2014. The directors have reserved their rights to indemnification under the Company’s Articles of Incorporation and By-laws, resolutions adopted by the Board, the Pennsylvania Business Corporation Law and any and all rights they have against the Company’s and the Bank’s insurance carriers. The Company expects to indemnify the directors upon their request for indemnification. In addition, in conjunction with the Settlement, the Company accrued $2.5 million related to fees and costs of the plaintiff’s attorneys, which has been included in non-interest expense for the year ended December 31, 2013. | |||||||||||||
On September 5, 2012, Fidelity and Deposit Company of Maryland (“F&D”) filed an action against the Company and its subsidiary, First National Community Bank, as well as several current and former officers and directors of the Company, in the United States District Court for the Middle District of Pennsylvania. F&D has asserted a claim for the rescission of a directors’ and officers’ insurance policy and a bond that it had issued to the Company. On November 9, 2012, the Company and the Bank answered the claim and asserted counterclaims. The Company and the other defendants are defending the claims. At this time, the matter is in a preliminary stage and the Company cannot reasonably determine the outcome or potential range of loss in connection with this matter. | |||||||||||||
On August 13, 2013, Steven Antonik, individually, as Administrator of the Estate of Linda Kluska, William R. Howells, and Louise A. Howells, on behalf of themselves and others similarly situated, filed a consumer protection class action against the Company and Bank in the Lackawanna County Court of Common Pleas, seeking equitable, injunction and monetary relief to address an alleged pattern and practice of wrong doing by the Bank relating to the repossession and sale of the Plaintiffs’ and class members’ financed motor vehicles. This matter is in its early discovery stage. At this time the Company cannot reasonably determine the outcome or potential range of loss. | |||||||||||||
On September 17, 2013, Charles Saxe, III individually and on behalf of all others similarity situated filed a consumer class action against the Bank in the Lackawanna County Court of Common Pleas alleging violations of the Pennsylvania Uniform Commercial Code in connection with the repossession and resale of financed vehicles. This matter is in its early discovery stage. At this time the Company cannot reasonably determine the outcome or potential range of loss. | |||||||||||||
The Company has been subject to tax audits and is also a party to routine litigation involving various aspects of its business, such as claims to enforce liens, condemnation proceedings on properties in which the Company holds security interests, claims involving the making and servicing of real property loans and other issues incident to its business, none of which is expected to have a material adverse impact on the consolidated financial condition, results of operations or liquidity of the Company. | |||||||||||||
STOCK_COMPENSATION_PLANS
STOCK COMPENSATION PLANS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
STOCK COMPENSATION PLANS | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
Note 16. STOCK COMPENSATION PLANS | |||||||||||||||||
On August 30, 2000, the Company’s Board adopted an Employee Stock Incentive Plan (the “Stock Incentive Plan”) in which options may be granted to key officers and other employees of the Company. The aggregate number of shares which may be issued upon exercise of the options under the plan cannot exceed 1,100,000 shares. Options and rights granted under the Stock Incentive Plan become exercisable six months after the date the options are awarded and expire ten years after the award date. Upon exercise, the shares are issued from the Company’s authorized but unissued stock. The Stock Incentive Plan expired on August 30, 2010 and therefore no further grants will be made under this plan. | |||||||||||||||||
The Board also adopted on August 30, 2000, the 2000 Independent Directors Stock Option Plan (the “Directors’ Stock Plan”) for directors who are not officers or employees of the Company. The aggregate number of shares issuable under the Directors’ Stock Plan cannot exceed 550,000 shares and are exercisable six months from the date the awards are granted and expire three years after the award date. Upon exercise, the shares are issued from the Company’s authorized but unissued shares. The Directors’ Stock Plan expired on August 30, 2010 and therefore no further grants will be made under this plan. | |||||||||||||||||
No compensation expense related to options under either the Stock Incentive Plan or the Directors’ Stock Plan was required to be recorded in each of the years ended December 31, 2013, 2012, and 2011. | |||||||||||||||||
A summary of the status of the Company’s stock option plans is presented below: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||
Average | Average | Average | |||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||
Shares | Price | Shares | Price | Shares | Price | ||||||||||||
Outstanding at the beginning of the year | 129,170 | $ | 14.26 | 188,193 | 12.62 | 222,616 | 12.58 | ||||||||||
Granted | - | - | - | - | - | - | |||||||||||
Exercised | - | - | - | - | - | - | |||||||||||
Forfeited | -46,572 | 11.22 | -59,023 | 9.03 | -34,423 | 12.37 | |||||||||||
Outstanding at the end of the year | 82,598 | $ | 15.98 | 129,170 | $ | 14.26 | 188,193 | $ | 12.62 | ||||||||
Options exercisable at year end | 82,598 | $ | 15.98 | 129,170 | $ | 14.26 | 188,193 | $ | 12.62 | ||||||||
Weighted average fair value of options granted during the year | $ | - | $ | - | $ | - | |||||||||||
Stock-based compensation expense | $ | - | $ | - | $ | - | |||||||||||
At December 31, 2013, 2012 and 2011 the exercisable options had no total intrinsic value and there was no unrecognized compensation expense. | |||||||||||||||||
Information pertaining to options outstanding at December 31, 2013 is as follows: | |||||||||||||||||
Options Outstanding | Options Excercisable | ||||||||||||||||
Weighted | |||||||||||||||||
Average | Weighted | Weighted | |||||||||||||||
Remaining | Average | Average | |||||||||||||||
Number | Contractual | Exercise | Number | Exercise | |||||||||||||
Range of Exercise Price | Outstanding | Life | Price | Exercisable | Price | ||||||||||||
$10.81 - $23.13 | 82,598 | 3.5 | $ | 15.98 | 82,598 | $ | 15.98 | ||||||||||
On November 28, 2012, the Board of Directors adopted the 2012 Employee Stock Grant Plan (the “2012 Stock Grant Plan”) under which shares of common stock not to exceed 16,000 were authorized to be granted to employees. On December 17, 2012, the Company granted 50 shares of the Company’s common stock to each active full and part time employee. There were 15,050 shares granted under the 2012 Stock Grant Plan at a cost of $3.05 per share. | |||||||||||||||||
On November 27, 2013, the Board of Directors adopted the 2013 Employee Stock Grant Plan (the “2013 Stock Grant Plan”) under which shares of common stock not to exceed 15,000 were authorized to be granted to employees. On December 2, 2013, the Company granted 50 shares of the Company’s common stock to each active full and part time employee. There were 14,400 shares granted under the 2013 Stock Grant Plan at a cost of $4.26 per share. The total cost of these grants, which was included in salary expense in the Consolidated Statements of Operations, amounted to $61 thousand and $46 thousand for the years ended December 31, 2013 and 2012, respectively. No additional shares were granted under either plan. | |||||||||||||||||
On January 24, 2013, the Board of Directors initially approved the design of a new Long-Term Incentive Compensation Plan (“LTIP”). Upon the recommendation of the Compensation Committee, the final LTIP was formally adopted by the Board of Directors on October 23, 2013 and was ratified at the 2013 Annual Shareholders Meeting on December 23, 2013. The LTIP is designed to reward executives and key employees for their contributions to the long-term success of the Company, primarily as measured by the increase in the Company’s stock price. The LTIP provides the Board with the authority to offer several different types of long-term incentives, including Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units and Performance Shares. No awards were granted under the LTIP as of December 31, 2013. The Board made initial awards in 2014 under the terms of the LTIP. | |||||||||||||||||
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
REGULATORY MATTERS | ' | ||||||||||||||||||
Regulatory Capital Requirements under Banking Regulations [Text Block] | ' | ||||||||||||||||||
Note 17. REGULATORY MATTERS | |||||||||||||||||||
The Bank is under a Consent Order (the “Order”) from the Office of the Comptroller of the Currency (“OCC”) dated September 1, 2010. The Company is also subject to a Written Agreement (the “Agreement”) with the Federal Reserve Bank of Philadelphia (the “Reserve Bank”) dated November 24, 2010. | |||||||||||||||||||
OCC Consent Order. The Bank, pursuant to a Stipulation and Consent to the Issuance of a Consent Order dated September 1, 2010, without admitting or denying any wrongdoing, consented and agreed to the issuance of the Order by the OCC, the Bank’s primary regulator. The Order requires the Bank to undertake certain actions within designated timeframes, and to operate in compliance with the provisions thereof during its term. The Order is based on the results of an examination of the Bank as of March 31, 2009. Since the examination, management has engaged in ongoing discussions with the OCC and has taken steps to improve the condition, policies and procedures of the Bank. Compliance with the Order is monitored by a committee (the “Committee”) of at least three directors, none of whom is an employee or controlling shareholder of the Bank or its affiliates or a family member of any such person. The Committee is required to submit written progress reports to the OCC on a monthly basis. The Committee has submitted each of the required monthly progress reports with the OCC. The members of the Committee are John P. Moses, Joseph Coccia, Joseph J. Gentile and Thomas J. Melone. The material provisions of the Order are set forth below with a description of the status of the Bank’s effort to comply with such provisions: | |||||||||||||||||||
(i) By October 31, 2010, the Board of Directors of the Bank (the “Board”) was required to adopt and implement a three-year strategic plan (a “Strategic Plan”) which must be submitted to the OCC for review and prior determination of no supervisory objection; the Strategic Plan must establish objectives for the Bank’s overall risk profile, earnings performance, growth, balance sheet mix, off-balance sheet activities, liability structure, capital adequacy, reduction in the volume of nonperforming assets, product line development, and market segments that the Bank intends to promote or develop, and is to include strategies to achieve those objectives; if the Strategic Plan involves the sale or merger of the Bank, it must address the timeline and steps to be followed to provide for a definitive agreement within 90 days after the receipt of a determination of no supervisory objection; | |||||||||||||||||||
The Bank has developed a Strategic Plan that it believes complies with the Order requirements. A three-year Strategic Plan for the period January 1, 2011 to December 31, 2013 was prepared and submitted to the OCC for review. On an annual basis, the Bank prepares an updated and revised Strategic Plan. Strategic Plans for the periods January 1, 2012 to December 31, 2014 and January 1, 2013 to December 31, 2015 were submitted to the OCC for review. The Strategic Plan for the periods January 1, 2014 to December 31, 2016 is in process, and the Bank expects to submit it to the OCC for review in the near term. | |||||||||||||||||||
(ii) by October 31, 2010, the Board was required to adopt and implement a three year capital plan (a “Capital Plan”), which must be submitted to the OCC for review and prior determination of no supervisory objection; | |||||||||||||||||||
The Bank has developed a Capital Plan that it believes complies with the Order requirements to ensure that the Bank’s leverage ratio equals or exceeds 9% and the Bank’s total risk-based capital ratio equals or exceeds 13%. This Capital Plan for the period January 1, 2011 through December 31, 2013 and its annual update and revisions for 2012 and 2013 were submitted to the OCC for review. The annual update and revision to the Capital Plan is in process in conjunction with the annual budget and strategic planning initiatives. Management expects to forward the 2014-2016 Capital Plan to the OCC for review in the near term. | |||||||||||||||||||
(iii) by November 30, 2010, the Bank was required to achieve and thereafter maintain a total risk-based capital equal to at least 13% of risk-weighted assets and a Tier 1 capital equal to at least 9% of adjusted total assets; | |||||||||||||||||||
The Bank’s total risk-based capital ratio was 13.43% at December 31, 2013, which was above the 13% required by the Order. The Bank’s leverage capital ratio was 8.32% at December 31, 2013, which was below the 9% required by the Order. The Bank’s total risk-based capital increased 164 basis points, while the Bank’s leverage ratio increased 112 basis points at December 31, 2013 compared to December 31, 2012. The Bank continues to execute its Capital Plan and has engaged an outside financial advisory firm to assist the Bank in taking appropriate actions to achieve and maintain compliance with the capital requirements of the Order. Appropriate actions or combinations of actions may include capital accretion through current earnings, raising additional capital, reducing the Bank’s assets through sales of branch offices, loans or other real estate owned, or pursuing other strategic transactions. | |||||||||||||||||||
(iv) the Bank may not pay any dividend or capital distribution unless it is in compliance with the higher capital requirements required by the Order, the Capital Plan, applicable legal requirements and, then only after receiving a determination of no supervisory objection from the OCC; | |||||||||||||||||||
The Board has acknowledged the prohibition on payment of dividends or any other capital distributions without the prior written consent of the OCC. The Bank has not paid any dividends or capital distributions since the effective date of the Order. | |||||||||||||||||||
(v) by November 15, 2010, the Committee must have reviewed the Board and the Board’s committee structure; by November 30, 2010, the Board was required to prepare or cause to be prepared an assessment of the capabilities of the Bank’s executive officers to perform their past and current duties, including those required to respond to the most recent examination report, and to perform annual performance appraisals of each officer; | |||||||||||||||||||
The Committee completed its review of the Board and the Board committee structure on November 10, 2010 by reviewing the Board Structure Study report completed by an independent consultant engaged by the Committee. The report was forwarded to the OCC on November 24, 2010. The Company is in the process of implementing those recommendations. | |||||||||||||||||||
The Board completed its assessment of the capabilities of the Bank’s executive officers upon receipt of a Management Study, completed by an independent consultant (“Management Study”), on October 13, 2010. The Management Study was forwarded to the OCC on October 29, 2010. The Board of Directors completed a successful search for President and Chief Executive Officer in December 2011. Since the effective date of the Order, other changes have been made to the executive management team related to the size and complexity of the organization. | |||||||||||||||||||
Annual performance appraisals are prepared for each officer based on established and timely management goals to confirm that each officer is performing the duties outlined in his or her job description. | |||||||||||||||||||
(vi) by October 31, 2010, the Board was required to adopt, implement and thereafter ensure compliance with a comprehensive Conflict of Interest Policy applicable to the Bank’s and the Company’s directors, executive officers, principal shareholders and their affiliates and such person’s immediate family members and their related interests, employees, and by November 30, 2010, was required to review existing relationships with such persons to identify those, if any, not in compliance with the policy; and review all subsequent proposed transactions with such persons or modifications of transactions; | |||||||||||||||||||
The Bank’s Conflict of Interest Policy has been revised to provide comprehensive guidance and a review was conducted of existing relationships to ensure compliance with the Conflict of Interest Policy. The revised policy was approved by the Board on September 29, 2010 and forwarded to the OCC on October 7, 2010. Additional revisions were approved by the Board on April 29, 2011, October 24, 2012, May 22, 2013 and November 14, 2013. | |||||||||||||||||||
(vii) by October 31, 2010, the Board was required to develop, implement and ensure adherence to policies and procedures for Bank Secrecy Act (“BSA”) compliance; and account opening and monitoring procedures compliance; | |||||||||||||||||||
The Board believes it has developed and implemented a written program of policies and procedures to provide for compliance with the requirements of the BSA as well as compliance with account opening and monitoring procedures. | |||||||||||||||||||
(viii) by October 31, 2010, the Board was required to ensure the BSA audit function is supported by an adequately staffed department or third party firm; to adopt, implement and ensure compliance with an independent BSA audit; and to assess the capabilities of the BSA officer and supporting staff to perform present and anticipated duties; | |||||||||||||||||||
The Board believes that the Bank’s BSA audit function is adequately staffed; and the BSA Officer and staff have been assessed to determine their ability to implement and maintain compliance with the BSA policies and programs detailed above. | |||||||||||||||||||
(ix) by October 31, 2010, the Board was required to adopt, implement and ensure adherence to a written credit policy (the “Loan Policy”), including specified features, to improve the Bank’s loan portfolio management; | |||||||||||||||||||
The Bank’s written Loan Policy has been revised to improve guidance and control over the Bank’s lending functions. The revised policy was approved by the Board on October 27, 2010. Additional revisions were approved by the Board on November 24, 2010, July 27, 2011, October 27, 2011, March 28, 2012, June 27, 2012, October 11, 2012 and July 24, 2013. | |||||||||||||||||||
(x) the Board was required to take certain actions to resolve certain credit and collateral exceptions; | |||||||||||||||||||
The Board believes that it has taken action to appropriately address the credit and collateral exceptions concerns detailed in the Order. | |||||||||||||||||||
(xi) by October 31, 2010, the Board was required to establish an effective, independent and ongoing loan review system to review, at least quarterly, the Bank’s loan and lease portfolios to assure the timely identification and categorization of problem credits; by October 31, 2010, to adopt and adhere to a program for the maintenance of an adequate ALLL, and to review the adequacy of the Bank’s ALLL at least quarterly; | |||||||||||||||||||
The Board has established an independent and ongoing loan review program on a quarterly basis that it believes provides for the timely identification and categorization of problem credits. | |||||||||||||||||||
The ALLL policy and methodologies have been reviewed and revised to determine the appropriate level of the ALLL, including documenting the analysis in accordance with GAAP and other applicable regulatory guidelines. The revised policy was approved by the Board on October 27, 2010 and is updated on an annual basis. The Board reviews the ALLL methodology analysis on a quarterly basis as part of the financial reporting process. | |||||||||||||||||||
(xii) by October 31, 2010, the Board was required to adopt and the Bank implement and adhere to a program to protect the Bank’s interest in criticized assets; and the Bank may only extend additional credit (including renewals) to a borrower whose loans are criticized under specified circumstances; | |||||||||||||||||||
The Board committed to a program to reduce the Bank’s risk exposure to criticized assets by implementing a detailed monthly reporting and monitoring process. The Board believes that this program has resulted in a reduction in criticized assets. | |||||||||||||||||||
In accordance with the requirements of the Order, the Bank has not extended any additional credit to, or for the benefit of, any borrower who has a loan or other extension of credit that either has been charged off or criticized without the prior approval of the Bank’s Board, or loan committee under specified circumstances, since the date of the Order. | |||||||||||||||||||
(xiii) by October 31, 2010, the Board was required to adopt and ensure adherence to action plans for each piece of other real estate owned; | |||||||||||||||||||
The Board committed to action plans for each piece of other real estate owned centered around a robust reporting and monitoring process. The Board believes that this program has resulted in a substantial reduction in other real estate owned balances. | |||||||||||||||||||
(xiv) by November 30, 2010, the Board was required to develop, implement and ensure adherence to a policy for effective monitoring and management of concentrations of credit; | |||||||||||||||||||
The Board believes it developed and implemented a written concentration management program consistent with OCC Bulletin 2006-46 on November 24, 2010. This program was forwarded to the OCC on November 30, 2010. Loan concentration analysis reports are prepared and reviewed quarterly by the Board as part of the Bank’s loan portfolio management practices. | |||||||||||||||||||
(xv) by October 31, 2010, the Board was required to revise and implement the Bank’s Other than Temporary Impairment Policy; | |||||||||||||||||||
The Board believes that the Other Than Temporary Impairment Policy has been reviewed and revised so that the quarterly OTTI analysis process identifies and measures OTTI in accordance with GAAP and supervisory guidance, including Financial Accounting Standards Board Accounting Standards Codification 320-10-35 (Recognition and Presentation of Other-than-Temporary Impairments), OCC Bulletin 2009-11 dated April 17, 2009, "Other-than-Temporary Impairment Accounting" and OCC Call Report Instructions. | |||||||||||||||||||
(xvi) by October 31, 2010, the Board was required to take action to maintain adequate sources of stable funding and liquidity and a contingency funding plan; by October 31, 2010, the Board was required to adopt, implement and ensure compliance with an independent, internal audit program; | |||||||||||||||||||
The Board believes that it has taken action to maintain adequate sources of stable funding and liquidity and developed an appropriate contingency funding plan for the Bank. A Liquidity Funding policy that addresses liquidity needs, funding sources and contingency funding was approved by the Board on November 24, 2010 and has been implemented and is reviewed and updated annually. Additional policies related to liquidity, funding and contingency funding have since been created and are updated annually since the Order was executed. | |||||||||||||||||||
The Board believes that it has taken appropriate steps to adopt, implement and comply with an independent adequately staffed internal audit program. | |||||||||||||||||||
(xvii) take actions to correct cited violations of law; and adopt procedures to prevent future violations and address compliance management. | |||||||||||||||||||
The Board and management believe that they have taken appropriate action to correct cited violations and adopted procedures designed to prevent future violations and address compliance management. | |||||||||||||||||||
Federal Reserve Agreement. On November 24, 2010, the Company entered into the Agreement with the Reserve Bank. The Agreement requires the Company to undertake certain actions within designated timeframes, and to operate in compliance with the provisions thereof during its term. The material provisions of the Agreement are set forth below with a description of the status of the Company’s efforts to comply with such provision: | |||||||||||||||||||
(i) the Company’s Board was required to take appropriate steps to fully utilize the Company’s financial and managerial resources to serve as a source of strength to the Bank, including taking steps to ensure that the Bank complies with its Consent Order entered into with the OCC; | |||||||||||||||||||
The Company has taken, and continues to take, steps the Board believes are appropriate to use the Company’s financial and managerial resources to serve as a source of strength to the Bank. The steps the Bank has taken to comply with the Order are discussed above. | |||||||||||||||||||
(ii) the Company may not declare or pay any dividends without the prior written approval of the Reserve Bank and the Director of the Division of Banking Supervision and Regulation (the “Director”) of the Federal Reserve Board; | |||||||||||||||||||
The Company has acknowledged the prohibition on payment of dividends without the prior written consent of the Reserve Bank and Director of the Division of Banking Supervision and Regulation. The Company has not paid any dividends since the effective date of the Agreement. | |||||||||||||||||||
(iii) the Company may not take dividends or other payments representing a reduction of the Bank’s capital without the prior written approval of the Reserve Bank; | |||||||||||||||||||
The Company has acknowledged the prohibition on taking dividends or any other capital distributions from the Bank without the prior written consent of the Reserve Bank. The Bank has not paid and the Company has not received any dividends or capital distributions from the Bank since the effective date of the Agreement. | |||||||||||||||||||
(iv) the Company and its nonbank subsidiary may not make any payment of interest, principal or other amounts on the Company’s subordinated debentures or trust preferred securities without the prior written approval of the Reserve Bank and the Director; | |||||||||||||||||||
The Company has acknowledged the prohibition on any payment related to the Company’s subordinated debentures and trust preferred securities without the written approval of the Reserve Bank and Director. The Company has not made any payments of interest, principal or other amounts on the Company’s subordinated debentures or trust preferred securities since the effective date of the Agreement. | |||||||||||||||||||
(v) the Company may not make any payment of interest, principal or other amounts on debt owed to insiders of the Company without the prior written approval of the Reserve Bank and Director; | |||||||||||||||||||
The Company has acknowledged the prohibition on any payment related to the debt owed to insiders of the Company without the written approval of the Reserve Bank and Director. The Company has not made any payments related to debt owed to insiders since the effective date of the Agreement. | |||||||||||||||||||
(vi) the Company and its nonbank subsidiary may not incur, increase or guarantee any debt without the prior written approval of the Reserve Bank; | |||||||||||||||||||
The Company has acknowledged the prohibition on incurring, increasing or guaranteeing any debt without the written approval of the Reserve Bank other than permitted borrowings from the FHLB. The Company has not incurred, increased or guaranteed any debt since the effective date of the Agreement. | |||||||||||||||||||
(vii) the Company may not purchase or redeem any shares of its stock without the prior written approval of the Reserve Bank; | |||||||||||||||||||
The Company has acknowledged the prohibition on purchasing or redeeming any shares of its stock without the written approval of the Reserve Bank, other than permitted borrowings from the FHLB. The Company has not purchased or redeemed any shares of its stock since the effective date of the Agreement. | |||||||||||||||||||
(viii) the Company was required to submit to the Reserve Bank, by January 23, 2011, an acceptable written plan to maintain sufficient capital at the Company on a consolidated basis. Thereafter, the Company must notify the Reserve Bank within 45 days of the end of any quarter in which the Company’s capital ratios fall below the approved capital plan’s minimum ratios, and submit an acceptable written plan to increase the Company’s capital ratios above the capital plan’s minimums; | |||||||||||||||||||
The Company has developed a Capital Plan that it believes is acceptable and maintains sufficient capital at the Company on a consolidated basis. The Capital Plan was submitted to the Reserve Bank on January 11, 2011. The Capital Plan has since been updated at least annually and forwarded to the Reserve Bank. The annual update and revision to the Capital Plan is in process in conjunction with the annual budget and strategic planning initiatives. | |||||||||||||||||||
The Bank’s total risk-based capital ratio was 13.43% at December 31, 2013, which was above the 13% minimum required by the Order. Given the inability to achieve the minimum leverage ratio as stated in the capital requirements of the Order at the Bank level, the Company continues to update the Reserve Bank on a quarterly basis of its plans to increase its capital ratios above the Capital Plan minimums. | |||||||||||||||||||
(ix) the Company was required to immediately take all actions necessary to ensure that: (1) each regulatory report accurately reflects the Company’s condition on the date for which it is filed and all material transactions between the Company and its subsidiaries; (2) each such report is prepared in accordance with its instructions; and (3) all records indicating how the report was prepared are maintained for supervisory review; | |||||||||||||||||||
The Company believes that it has taken actions to ensure that all required regulatory reports are filed to accurately reflect its financial condition on the date filed, are prepared in accordance with instructions and that records detailing how the reports were filed are maintained and available for supervisory review. | |||||||||||||||||||
(x) the Company was required to submit to the Reserve Bank, by January 23, 2011, acceptable written procedures to strengthen and maintain internal controls to ensure all required regulatory reports and notices filed with the Board of Governors are accurate and filed in accordance with the instructions for preparation; | |||||||||||||||||||
The Company believes that it has designed effective written procedures and strengthened internal controls so that all required Board of Governors reports and notices filed are accurate and in accordance with instructions. The written procedures were provided to the Reserve Bank on January 21, 2011. | |||||||||||||||||||
(xi) the Company was required to submit to the Reserve Bank, by January 8, 2011, a cash flow projection for 2011, reflecting the Company’s planned sources and uses of cash, and submit a cash flow projection for each subsequent calendar year at least one month prior to the beginning of such year; | |||||||||||||||||||
The Company created a cash flow projection for 2011 and submitted it to the Reserve Bank on January 7, 2011 in accordance with requirements of the Agreement. Similar projections for 2012, 2013, and 2014 were provided to the Reserve Bank within the time requirements prescribed in the Agreement. | |||||||||||||||||||
(xii) the Company must comply with: (1) the notice provisions of Section 32 of the FDI Act and Subpart H of Regulation Y in appointing any new director or senior executive officer or changing the duties of any senior executive officer; and (2) the restrictions on indemnification and severance payments of Section 18(k) of the FDI Act and Part 359 of the FDIC’s regulations; | |||||||||||||||||||
The Company has acknowledged the notice requirements on the appointment of any new director or senior executive officer. The Company has filed the appropriate notice for each new director or senior executive officer since the date of the Agreement. | |||||||||||||||||||
The Company acknowledges the restriction on indemnification and severance payments. The Company has not made any such indemnification or severance payments since the effective date of the Agreement without obtaining prior regulatory non-objections from the OCC and regulatory concurrence from the FDIC as required by Part 359. | |||||||||||||||||||
(xiii) the Board must submit written progress reports within 30 days of the end of each calendar quarter. | |||||||||||||||||||
The Company’s Board has filed each of the required written progress reports with the Reserve Bank since the Agreement was executed. | |||||||||||||||||||
Banking regulations also limit the amount of dividends that may be paid without prior approval of the Bank’s regulatory agency. At December 31, 2013, the Company and the Bank are restricted from paying any dividends, without regulatory approval. | |||||||||||||||||||
The Company is 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 adverse effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices must be met. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. | |||||||||||||||||||
In July 2013, the Federal Reserve, the OCC and the FDIC approved the final Basel III capital framework for U.S. banking organizations (the “Regulatory Capital Rules”) implementing regulatory capital reforms and changes required by the Dodd-Frank Act. | |||||||||||||||||||
The Regulatory Capital Rules are effective on January 1, 2014; however, the mandatory compliance date for the Company and the Bank as “standardized approach” banking organizations begins on January 1, 2015 and is subject to transitional provisions extending to January 1, 2019. The Regulatory Capital Rules include new risk-based capital and leverage ratios and refine the definition of what constitutes “capital” for purposes of calculating those ratios. The new minimum capital level requirements applicable to the Company and the Bank under the Regulatory Capital Rules will be: | |||||||||||||||||||
· | a new common equity Tier 1 capital ratio of 4.5%; | ||||||||||||||||||
· | a Tier 1 capital ratio of 6% (increased from 4%); | ||||||||||||||||||
· | a total capital ratio of 8% (unchanged from current rules); and | ||||||||||||||||||
· | a Tier 1 leverage ratio of 4% for all institutions. | ||||||||||||||||||
The Regulatory Capital Rules also establish a “capital conservation buffer” of 2.5% above the new regulatory minimum capital requirements, which must consist entirely of common equity Tier 1 capital and result in the following minimum ratios: | |||||||||||||||||||
· | a common equity Tier 1 capital ratio of 7.0%; | ||||||||||||||||||
· | a Tier 1 capital ratio of 8.5%; and | ||||||||||||||||||
· | a total capital ratio of 10.5%. | ||||||||||||||||||
The new capital conservation buffer requirement will be phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase by that amount each year until fully implemented in January 2019. An institution will be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations will establish a maximum percentage of eligible retained income that could be utilized for such actions. | |||||||||||||||||||
The Regulatory Capital Rules also implement revisions and clarifications consistent with Basel III regarding the various components of Tier 1 capital, including common equity, unrealized gains and losses, as well as certain instruments that will no longer qualify as Tier 1 capital, some of which will be phased out over time. | |||||||||||||||||||
The Regulatory Capital Rules also revise the prompt corrective action framework, which is designed to place restrictions on insured depository institutions, including the Bank, if their capital levels begin to show signs of weakness. These revisions will take effect January 1, 2015. Under the prompt corrective action requirements, which are designed to complement the capital conservation buffer, insured depository institutions will be required to meet the following increased capital level requirements in order to qualify as “well capitalized:” | |||||||||||||||||||
· | a new common equity Tier 1 risk-based capital ratio of 6.5%; | ||||||||||||||||||
· | a Tier 1 risk-based capital ratio of 8% (increased from 6%); | ||||||||||||||||||
· | a total risk-based capital ratio of 10% (unchanged from current rules); and | ||||||||||||||||||
· | a Tier 1 leverage ratio of 5% (increased from 4%). | ||||||||||||||||||
The Regulatory Capital Rules set forth certain changes for the calculation of risk-weighted assets, which we will be required to utilize beginning January 1, 2015. The provisions applicable to banking organizations under the “standardized approach” include changes with respect to risk weights for commercial real estate loans, past due exposures and conversion factors for commitments with an original maturity of one year or less. | |||||||||||||||||||
Current quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). | |||||||||||||||||||
In accordance with the Order, the Bank is required to achieve and thereafter maintain a total risk-based capital equal to at least 13% of risk-weighted assets and a Tier 1 capital equal to at least 9% of adjusted total assets. As of December 31, 2013, the Bank met the 13.0% minimum requirement for the total-risk based capital ratio but did not meet the 9.0% minimum requirement for the Tier 1 leverage ratio. The minimum capital requirements under the Order take precedence over the standard regulatory capital adequacy definitions described in the tables below. | |||||||||||||||||||
The Company’s and the Bank’s actual capital positions and ratios as of December 31, 2013, 2012 and 2011 are presented in the following table: | |||||||||||||||||||
December 31, | |||||||||||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||
Company | |||||||||||||||||||
Tier I capital: | |||||||||||||||||||
Total tier I capital | $ | 46,165 | $ | 39,587 | $ | 53,059 | |||||||||||||
Tier II capital: | |||||||||||||||||||
Subordinated notes | 23,085 | 19,796 | 25,000 | ||||||||||||||||
Allowable portion of allowance for loan losses | 8,462 | 8,452 | 9,823 | ||||||||||||||||
Total tier II capital | 31,547 | 28,248 | 34,823 | ||||||||||||||||
Total risk-based capital | 77,712 | 67,835 | 87,882 | ||||||||||||||||
Total risk-weighted assets | $ | 670,894 | $ | 665,323 | $ | 774,452 | |||||||||||||
Bank | |||||||||||||||||||
Tier I capital: | |||||||||||||||||||
Total tier I capital | $ | 81,581 | $ | 69,963 | $ | 80,976 | |||||||||||||
Tier II capital: | |||||||||||||||||||
Allowable portion of allowance for loan losses | 8,456 | 8,447 | 9,819 | ||||||||||||||||
Total tier II capital | 8,456 | 8,447 | 9,819 | ||||||||||||||||
Total risk-based capital | 90,037 | 78,410 | 90,795 | ||||||||||||||||
Total risk-weighted assets | $ | 670,416 | $ | 664,914 | $ | 774,097 | |||||||||||||
The following schedules present information regarding the Company’s risk-based capital at December 31, 2013 and 2012, and selected other capital ratios: | |||||||||||||||||||
To Be Well | |||||||||||||||||||
Capitalized | |||||||||||||||||||
Under Prompt | |||||||||||||||||||
For Capital | Corrective | ||||||||||||||||||
Actual | Adequacy Purposes | Action Provision | |||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||
31-Dec-13 | |||||||||||||||||||
Total capital | |||||||||||||||||||
(to risk-weighted assets) | |||||||||||||||||||
Company | $ | 77,712 | 11.58 | % | $ | >53,672 | >8.00 | % | N/A | N/A | |||||||||
Bank | $ | 90,037 | 13.43 | % | $ | >53,633 | >8.00 | % | $ | >67,042 | >10.00 | % | |||||||
Tier I capital | |||||||||||||||||||
(to risk-weighted assets) | |||||||||||||||||||
Company | $ | 46,165 | 6.88 | % | $ | >26,836 | >4.00 | % | N/A | N/A | |||||||||
Bank | $ | 81,581 | 12.17 | % | $ | >26,817 | >4.00 | % | $ | >40,225 | >6.00 | % | |||||||
Tier I capital | |||||||||||||||||||
(to average assets) | |||||||||||||||||||
Company | $ | 46,165 | 4.71 | % | $ | >39,230 | >4.00 | % | N/A | N/A | |||||||||
Bank | $ | 81,581 | 8.32 | % | $ | >39,230 | >4.00 | % | $ | >49,038 | >5.00 | % | |||||||
To Be Well | |||||||||||||||||||
Capitalized | |||||||||||||||||||
Under Prompt | |||||||||||||||||||
For Capital | Corrective | ||||||||||||||||||
Actual | Adequacy Purposes | Action Provision | |||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||
31-Dec-12 | |||||||||||||||||||
Total capital | |||||||||||||||||||
(to risk-weighted assets) | |||||||||||||||||||
Company | $ | 67,835 | 10.2 | % | $ | >53,226 | >8.00 | % | N/A | N/A | |||||||||
Bank | $ | 78,410 | 11.79 | % | $ | >53,193 | >8.00 | % | $ | >66,491 | >10.00 | % | |||||||
Tier I capital | |||||||||||||||||||
(to risk-weighted assets) | |||||||||||||||||||
Company | $ | 39,587 | 5.95 | % | $ | >26,613 | >4.00 | % | N/A | N/A | |||||||||
Bank | $ | 69,963 | 10.52 | % | $ | >26,597 | >4.00 | % | $ | >39,895 | >6.00 | % | |||||||
Tier I capital | |||||||||||||||||||
(to average assets) | |||||||||||||||||||
Company | $ | 39,587 | 4.07 | % | $ | >38,879 | >4.00 | % | N/A | N/A | |||||||||
Bank | $ | 69,963 | 7.2 | % | $ | >38,865 | >4.00 | % | $ | >48,581 | >5.00 | % | |||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
Fair Value Disclosures [Text Block] | ' | |||||||||||||||
Note 18. FAIR VALUE MEASUREMENTS | ||||||||||||||||
In determining fair value, the Company uses various valuation approaches, including market, income and cost approaches. Accounting standards established a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability, which are developed based on market data obtained from sources independent of the Company. Unobservable inputs reflects the Company’s assumptions about the assumptions the market participants would use in pricing an asset or liability, which are developed based on the best information available in the circumstances. | ||||||||||||||||
The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). A financial asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: | ||||||||||||||||
· Level 1 valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets; | ||||||||||||||||
· Level 2 valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data; and | ||||||||||||||||
· Level 3 valuation is derived from other valuation methodologies including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. | ||||||||||||||||
A description of the valuation methodologies used for assets recorded at fair value, and for estimating fair value for financial instruments not recorded at fair value, is set forth below. | ||||||||||||||||
Cash, Short-term Investments, Accrued Interest Receivable and Accrued Interest Payable | ||||||||||||||||
For these short-term instruments, the carrying amount is a reasonable estimate of fair value. | ||||||||||||||||
Securities | ||||||||||||||||
The estimated fair values of available-for-sale equity securities are determined by obtaining quoted prices on nationally recognized exchanges (Level 1 inputs). The estimated fair values for the Company’s investments in obligations of U.S. government agencies, obligations of state and political subdivisions, government sponsored agency collateralized mortgage obligations, government sponsored agency residential mortgage-backed securities, and corporate debt securities are obtained by the Company from a nationally-recognized pricing service. This pricing service develops estimated fair values by analyzing like securities and applying available market information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing (Level 2 inputs), to prepare valuations. Matrix pricing is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things and are based on market data obtained from sources independent from the Company. The Level 2 investments in the Company’s portfolio are priced using those inputs that, based on the analysis prepared by the pricing service, reflect the assumptions that market participants would use to price the assets. The Company has determined that the Level 2 designation is appropriate for these securities because, as with most fixed-income securities, those in the Company’s portfolio are not exchange-traded, and such non-exchange-traded fixed income securities are typically priced by correlation to observed market data. The Company has reviewed the pricing service’s methodology to confirm its understanding that such methodology results in a valuation based on quoted market prices for similar instruments traded in active markets, quoted markets for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which the significant assumptions can be corroborated by market data as appropriate to a Level 2 designation. | ||||||||||||||||
For those securities for which the inputs used by an independent pricing service were derived from unobservable market information, the Company evaluated the appropriateness and quality of each price. The Company reviewed the volume and level of activity for all classes of securities and attempted to identify transactions which may not be orderly or reflective of a significant level of activity and volume. For securities meeting these criteria, the quoted prices received from either market participants or an independent pricing service may be adjusted, as necessary, to estimate fair value (fair values based on Level 3 inputs). If applicable, the adjustment to fair value was derived based on present value cash flow model projections prepared by the Company or obtained from third party providers utilizing assumptions similar to those incorporated by market participants. The estimated fair value of the PreTSLs and Private Label Collateralized Mortgage Obligations in the Company’s securities portfolio during 2012 and 2011, prior to being sold in 2012, were obtained from third-party service providers that prepared the valuation using a discounted cash flow approach with inputs derived from unobservable market information (Level 3 inputs). | ||||||||||||||||
The Company owned one security issued by a state and political subdivision having an amortized cost of $595 thousand that was valued using Level 3 inputs at December 31, 2013 and two such securities having an amortized cost of $1.8 million at December 31, 2012. These securities had credit ratings that were either withdrawn or downgraded by nationally recognized credit rating agencies, and as a result the market for these securities was inactive at December 31, 2013 and 2012. These securities were historically priced using Level 2 inputs. The credit ratings withdrawal and downgrade have resulted in a decline in the level of significant other observable inputs for these investment securities at the measurement dates. Broker pricing and bid/ask spreads are very limited for these securities. At December 31, 2013 and 2012, the Company valued one security based on similar nonrated Pennsylvania Sewer bonds adjusted for coupon and maturity. For the other security at December 31, 2012, the Company obtained a bid indication from a third-party municipal trading desk to determine the fair value of this security. | ||||||||||||||||
Loans | ||||||||||||||||
Except for collateral dependent impaired loans, fair values of loans are estimated by discounting the projected future cash flows using market discount rates that reflect the credit, liquidity, and interest rate risk inherent in the loan. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. The estimated fair value of collateral dependent impaired loans is based on the appraised loan value or other reasonable offers less estimated costs to sell. The Company does not record loans at fair value on a recurring basis. However from time to time, a loan is considered impaired and an allowance for credit losses is established. The specific reserves for collateral dependent impaired loans are based on the fair value of the collateral less estimated costs to sell. The fair value of the collateral is generally based on appraisals. In some cases, adjustments are made to the appraised values due to various factors including age of the appraisal, age of comparables included in the appraisal, and known changes in the market and in the collateral. When significant adjustments are based on unobservable inputs, the resulting fair value measurement is categorized as a Level 3 measurement. See also, Note 2 “Summary of Significant Accounting Policies-Loan Impairment” and Note 5-“Loans.” | ||||||||||||||||
Loans Held For Sale | ||||||||||||||||
Fair values of mortgage loans held for sale are based on commitments on hand from investors or prevailing market prices. | ||||||||||||||||
Mortgage Servicing Rights | ||||||||||||||||
The fair value of mortgage servicing rights is estimated using a discounted cash flow model that applies current estimated prepayments derived from the mortgage-backed securities market and utilizes a current market discount rate for observable credit spreads. The Bank does not record mortgage servicing rights at fair value on a recurring basis. | ||||||||||||||||
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) Stock | ||||||||||||||||
Ownership in equity securities of FHLB of Pittsburgh and the FRB is restricted and there is no established market for their resale. The carrying amount is a reasonable estimate of fair value. | ||||||||||||||||
Deposits | ||||||||||||||||
The fair value of demand deposits, savings deposits, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated based on discounted cash flows using the rates currently offered for deposits of similar remaining maturities. | ||||||||||||||||
Borrowed funds | ||||||||||||||||
The Bank uses discounted cash flows using rates currently available for debt with similar terms and remaining maturities are used to estimate fair value. | ||||||||||||||||
Commitments to extend credit and standby letters of credit | ||||||||||||||||
The fair value of commitments to extend credit and standby letters of credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of off-balance sheet commitments is insignificant and therefore not included in the table for non-recurring assets and liabilities. | ||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | ||||||||||||||||
The following tables detail the financial asset amounts that are carried at fair value and measured at fair value on a recurring basis at December 31, 2013 and 2012, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: | ||||||||||||||||
Fair value measurements at December 31, 2013 | ||||||||||||||||
Significant | ||||||||||||||||
Quoted prices | other | Significant | ||||||||||||||
in active markets | observable | unobservable | ||||||||||||||
for identical | inputs | inputs | ||||||||||||||
(in thousands) | Fair value | assets (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 78,054 | $ | - | $ | 77,483 | $ | 571 | ||||||||
Government-sponsored agency: | ||||||||||||||||
Collateralized mortgage obligations | 34,799 | - | 34,799 | - | ||||||||||||
Residential mortgage-backed securities | 89,656 | - | 89,656 | - | ||||||||||||
Corporate debt securities | 407 | - | 407 | - | ||||||||||||
Equity securities | 951 | 951 | - | - | ||||||||||||
Total securities available-for-sale | $ | 203,867 | $ | 951 | $ | 202,345 | $ | 571 | ||||||||
Fair value measurements at December 31, 2012 | ||||||||||||||||
Significant | ||||||||||||||||
Quoted prices | other | Significant | ||||||||||||||
in active markets | observable | unobservable | ||||||||||||||
for identical | inputs | inputs | ||||||||||||||
(in thousands) | Fair value | assets (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Obligations of U.S. government agencies | $ | 1,891 | $ | - | $ | 1,891 | $ | - | ||||||||
Obligations of state and political subdivisions | 103,501 | - | 101,762 | 1,739 | ||||||||||||
Government-sponsored agency: | ||||||||||||||||
Collateralized mortgage obligations | 9,103 | - | 9,103 | - | ||||||||||||
Residential mortgage-backed securities | 69,456 | - | 69,456 | - | ||||||||||||
Corporate debt securities | 410 | - | 410 | - | ||||||||||||
Equity securities | 1,000 | 1,000 | - | - | ||||||||||||
Total securities available-for-sale | $ | 185,361 | $ | 1,000 | $ | 182,622 | $ | 1,739 | ||||||||
The table below presents reconciliation and statement of operations classifications of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012: | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||
(in thousands) | PreTSLs | State and | Private Label | Total | ||||||||||||
Political | CMOs | |||||||||||||||
Subdivisions | ||||||||||||||||
Balance at December 31, 2011 | $ | 3,801 | $ | 2,811 | $ | 36,256 | $ | 42,868 | ||||||||
Amortization | - | - | -395 | -395 | ||||||||||||
Accretion | - | - | 101 | 101 | ||||||||||||
Purchases | - | - | 14,691 | 14,691 | ||||||||||||
Paydowns | -172 | -550 | -13,478 | -14,200 | ||||||||||||
Sales and calls | -3,629 | -585 | -37,175 | -41,389 | ||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||
Included in earnings | - | - | - | - | ||||||||||||
Included in other comprehensive income | - | 63 | - | 63 | ||||||||||||
Balance at December 31, 2012 | $ | - | $ | 1,739 | $ | - | $ | 1,739 | ||||||||
Amortization | - | - | - | - | ||||||||||||
Accretion | - | - | - | - | ||||||||||||
Purchases | - | - | - | - | ||||||||||||
Paydowns | - | -570 | - | -570 | ||||||||||||
Sales and calls | - | -622 | - | -622 | ||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||
Included in earnings | - | 2 | - | 2 | ||||||||||||
Included in other comprehensive income | - | 22 | - | 22 | ||||||||||||
Balance at December 30, 2013 | $ | - | $ | 571 | $ | - | $ | 571 | ||||||||
Assets Measured at Fair Value on a Non-Recurring Basis | ||||||||||||||||
Assets measured at fair value on a non-recurring basis are summarized below: | ||||||||||||||||
Fair value measurements at December 31, 2013 | ||||||||||||||||
Significant | Significant | |||||||||||||||
Quoted prices | other | other | ||||||||||||||
in active markets | observable | unobservable | ||||||||||||||
for identical | inputs | inputs | ||||||||||||||
(in thousands) | Fair value (1) | assets (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Collateral-dependent impaired loans | $ | 5,229 | $ | - | $ | - | $ | 5,229 | ||||||||
Other real estate owned | $ | 3,931 | $ | - | $ | - | $ | 3,931 | ||||||||
Fair value measurements at December 31, 2012 | ||||||||||||||||
Significant | Significant | |||||||||||||||
Quoted prices | other | other | ||||||||||||||
in active markets | observable | unobservable | ||||||||||||||
for identical | inputs | inputs | ||||||||||||||
(in thousands) | Fair value (1) | assets (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Collateral-dependent impaired loans | $ | 7,816 | $ | - | $ | - | $ | 7,816 | ||||||||
Other real estate owned | $ | 2,455 | $ | - | $ | - | $ | 2,455 | ||||||||
1) | Represents carrying value and related write-downs for which adjustments are based on appraised value. Management makes adjustments to the appraised values as necessary to consider declines in real estate values since the time of the appraisal. Such adjustments are based on management’s knowledge of the local real estate markets. | |||||||||||||||
Collateral-dependent impaired loans are classified as Level 3 assets and the estimated fair value of the collateral is based on the appraised loan value or other reasonable offers less estimated costs to sell. When the measure of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through a valuation allowance or is charged off. The amount shown is the balance of impaired loans, net of any charge-offs and the related allowance for loan losses. | ||||||||||||||||
OREO properties are recorded at fair value less the estimated cost to sell at the date of acquisition. Subsequent to acquisition, the balance might be written down further. It is the Company’s policy to obtain certified external appraisals of real estate collateral underlying impaired loans, including OREO, and it estimates fair value using those appraisals. Other valuation sources may be used, including broker price opinions, letters of intent and executed sale agreements. | ||||||||||||||||
The Company discloses fair value information about financial instruments, whether or not recognized in the Statement of Financial Condition, for which it is practicable to estimate that value. The following estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, management judgment is required to interpret data and develop fair value estimates. Accordingly, the estimates below are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. | ||||||||||||||||
The following table summarizes the estimated fair values of the Company’s financial instruments at December 31, 2013 and 2012: | ||||||||||||||||
Fair Value | December 31, 2013 | December 31, 2012 | ||||||||||||||
(in thousands) | Measurement | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Financial assets | ||||||||||||||||
Cash and short term investments | Level 1 | $ | 103,556 | $ | 103,556 | $ | 115,271 | $ | 115,271 | |||||||
Securities available for sale | See previous table | 203,867 | 203,867 | 185,361 | 185,361 | |||||||||||
Securities held to maturity | Level 2 | 2,308 | 2,424 | 2,198 | 2,483 | |||||||||||
FHLB and FRB Stock | Level 2 | 3,496 | 3,496 | 7,308 | 7,308 | |||||||||||
Loans held for sale | Level 2 | 820 | 820 | 1,615 | 1,615 | |||||||||||
Loans, net | Level 3 | 629,880 | 632,536 | 579,396 | 592,504 | |||||||||||
Accrued interest receivable | Level 2 | 2,191 | 2,191 | 2,199 | 2,199 | |||||||||||
Mortgage servicing rights | Level 3 | 529 | 990 | 675 | 884 | |||||||||||
Financial liabilities | ||||||||||||||||
Deposits | Level 2 | 884,698 | 887,056 | 854,613 | 858,970 | |||||||||||
Borrowed funds | Level 2 | 62,433 | 65,642 | 53,903 | 59,021 | |||||||||||
Accrued interest payable | Level 2 | 8,732 | 8,732 | 6,427 | 6,427 | |||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||
Note 19. EARNINGS PER SHARE | |||||||||||
The following table shows the calculation of both basic and diluted earnings per common share for the years ended December 31, 2013, 2012 and 2011: | |||||||||||
Year Ended December 31, | |||||||||||
(in thousands, except share data) | 2013 | 2012 | 2011 | ||||||||
Net income (loss) | $ | 6,382 | $ | -13,711 | $ | -335 | |||||
Basic weighted-average number of common shares outstanding | 16,458,353 | 16,442,160 | 16,439,508 | ||||||||
Plus: common share equivalents | - | - | - | ||||||||
Diluted weighted-average number of common shares outstanding | 16,458,353 | 16,442,160 | 16,439,508 | ||||||||
Loss per common share: | |||||||||||
Basic | $ | 0.39 | $ | -0.83 | $ | -0.02 | |||||
Diluted | $ | 0.39 | $ | -0.83 | $ | -0.02 | |||||
Common share equivalents, in the table above, exclude stock options with exercise prices that exceed the average market price of the Company’s common shares during the periods presented. Inclusion of these stock options would be anti-dilutive to the diluted earnings per common share calculation. Antidilutive stock options equaled 82,598 shares, 129,170 shares, and 188,193 shares for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||
OTHER_COMPREHENSIVE_INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Equity [Abstract] | ' | ||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||||||||
Note 20. OTHER COMPREHENSIVE INCOME | |||||||||||
The following tables summarize the reclassifications out of accumulated other comprehensive income (loss), which is comprised entirely of unrealized gains and losses on available-for-sale securities, for each of the years ended December 31, 2013 and 2012: | |||||||||||
2013 | |||||||||||
Amount Reclassified | |||||||||||
from Accumulated | Affected Line Item | ||||||||||
Other Comprehensive | in the Consolidated | ||||||||||
(in thousands) | Income | Statements of Operations | |||||||||
Available-for-sale securities: | |||||||||||
Reclassification adjustment for net (gains) losses reclassified into net income | $ | -2,887 | Net gain on sale of securities | ||||||||
Taxes | 982 | Income taxes | |||||||||
Net of tax amount | $ | -1,905 | |||||||||
2012 | |||||||||||
Amount Reclassified | |||||||||||
from Accumulated | Affected Line Item | ||||||||||
Other Comprehensive | in the Consolidated | ||||||||||
(in thousands) | Income | Statements of Operations | |||||||||
Available-for-sale securities: | |||||||||||
Reclassification adjustment for net (gains) losses reclassified into net income | $ | 1,808 | Net loss on sale of securities | ||||||||
Taxes | -614 | Income taxes | |||||||||
Net of tax amount | $ | 1,194 | |||||||||
2011 | |||||||||||
Amount Reclassified | |||||||||||
from Accumulated | Affected Line Item | ||||||||||
Other Comprehensive | in the Consolidated | ||||||||||
(in thousands) | Income | Statements of Operations | |||||||||
Available-for-sale securities: | |||||||||||
Reclassification adjustment for net (gains) losses reclassified into net income | $ | -4,316 | Net gain on sale of securities | ||||||||
Taxes | 1,467 | Income taxes | |||||||||
Net of tax amount | $ | -2,849 | |||||||||
The following table summarizes the changes in accumulated other comprehensive (loss) income, net of tax: | |||||||||||
Year Ended | |||||||||||
December 31, | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Beginning balance | $ | 6,698 | $ | -3,967 | $ | -12,143 | |||||
Other comprehensive (loss) income before reclassifications | -7,885 | 9,471 | 9,933 | ||||||||
Noncredit-related gains on OTTI securities not expected to be sold | - | - | 1,092 | ||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | -1,905 | 1,194 | -2,849 | ||||||||
Net other comprehensive (loss) income during the period | -9,790 | 10,665 | 8,176 | ||||||||
Ending balance | $ | -3,092 | $ | 6,698 | $ | -3,967 | |||||
CONDENSED_FINANCIAL_INFORMATIO
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY | ' | ||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ' | ||||||||||
Note 21. CONDENSED FINANCIAL INFORMATION — PARENT COMPANY ONLY | |||||||||||
Condensed parent company only financial information is as follows: | |||||||||||
Condensed Statements of Condition | |||||||||||
December 31, | |||||||||||
(in thousands) | 2013 | 2012 | |||||||||
Assets | |||||||||||
Cash | $ | 254 | $ | 355 | |||||||
Investment in statutory trust | 364 | 358 | |||||||||
Investment in subsidiary (equity method) | 78,995 | 77,301 | |||||||||
Other assets | 107 | 46 | |||||||||
Total assets | $ | 79,720 | $ | 78,060 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Junior subordinated debentures | $ | 10,310 | $ | 10,310 | |||||||
Subordinated debentures | 25,000 | 25,000 | |||||||||
Accrued interest payable | 8,307 | 5,822 | |||||||||
Other liabilities | 2,525 | 3 | |||||||||
Shareholders’ equity | 33,578 | 36,925 | |||||||||
Total liabilities and shareholders’ equity | $ | 79,720 | $ | 78,060 | |||||||
Condensed Statements of Operations | |||||||||||
Year Ended December 31, | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Income | |||||||||||
Equity in undistributed income (loss) of subsidiary | $ | 11,484 | $ | -11,206 | $ | 2,248 | |||||
Equity in trust | 6 | 7 | 4 | ||||||||
Total income (loss) | 11,490 | -11,199 | 2,252 | ||||||||
Expense | 5,108 | 2,512 | 2,587 | ||||||||
Net income (loss) | $ | 6,382 | $ | -13,711 | $ | -335 | |||||
Condensed Statements of Cash Flows | |||||||||||
For the Year Ended | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 6,382 | $ | -13,711 | $ | -335 | |||||
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | |||||||||||
Equity in undistributed (income) loss of subsidiary | -11,484 | 11,206 | -2,248 | ||||||||
Equity in trust | -6 | -7 | -4 | ||||||||
Increase in accrued interest payable | 2,485 | 2,512 | 2,486 | ||||||||
Increase in other liabilities | 2,522 | 2 | - | ||||||||
Net cash (used in) provided by operating activities | -101 | 2 | -101 | ||||||||
Cash flows from investing activities: | |||||||||||
Investment in capital of subsidiary | - | - | -3,000 | ||||||||
Net cash used in investing activities | - | - | -3,000 | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common stock, net of stock issuance costs | - | - | 29 | ||||||||
Net cash provided by financing activities | - | - | 29 | ||||||||
(Decrease) increase in cash | -101 | 2 | -3,072 | ||||||||
Cash at beginning of year | 355 | 353 | 3,425 | ||||||||
Cash at end of year | $ | 254 | $ | 355 | $ | 353 | |||||
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | |||||||||||||
Quarterly Financial Information [Text Block] | ' | |||||||||||||
Note 22. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||
Quarter Ending | ||||||||||||||
2013 | ||||||||||||||
(in thousands, except share data) | March 31, | June 30, | September 30, | December 31, | ||||||||||
Interest income | $ | 8,210 | $ | 8,167 | $ | 8,189 | $ | 8,387 | ||||||
Interest expense | 1,857 | 1,818 | 1,812 | 1,689 | ||||||||||
Net interest income | 6,353 | 6,349 | 6,377 | 6,698 | ||||||||||
Credit for loan and lease losses | -1,224 | -2 | -1,159 | -3,885 | ||||||||||
Net interest income after credit for loan and lease losses | 7,577 | 6,351 | 7,536 | 10,583 | ||||||||||
Non-interest income | 2,459 | 2,281 | 2,415 | 2,128 | ||||||||||
Non-interest expense | 8,305 | 7,912 | 8,064 | 10,667 | ||||||||||
Income before taxes | 1,731 | 720 | 1,887 | 2,044 | ||||||||||
Provision for income taxes | - | - | - | - | ||||||||||
Net income | $ | 1,731 | $ | 720 | $ | 1,887 | $ | 2,044 | ||||||
Income per share: | ||||||||||||||
Basic | $ | 0.11 | $ | 0.04 | $ | 0.11 | $ | 0.13 | ||||||
Diluted | $ | 0.11 | $ | 0.04 | $ | 0.11 | $ | 0.13 | ||||||
Quarter Ending | ||||||||||||||
2012 | ||||||||||||||
(in thousands, except share data) | March 31, | June 30, | September 30, | December 31, | ||||||||||
Interest income | $ | 9,744 | $ | 9,424 | $ | 8,985 | $ | 8,874 | ||||||
Interest expense | 2,573 | 2,343 | 2,206 | 2,096 | ||||||||||
Net interest income | 7,171 | 7,081 | 6,779 | 6,778 | ||||||||||
Provision (credit) for loan and lease losses | -136 | -280 | 3,792 | 689 | ||||||||||
Net interest income after provision (credit) for loan and lease losses | 7,307 | 7,361 | 2,987 | 6,089 | ||||||||||
Non-interest income | 1,450 | 1,544 | 1,659 | -370 | ||||||||||
Non-interest expense | 9,922 | 9,872 | 11,167 | 10,777 | ||||||||||
Loss before taxes | -1,165 | -967 | -6,521 | -5,058 | ||||||||||
Provision for income taxes | - | - | - | - | ||||||||||
Net loss | $ | -1,165 | $ | -967 | $ | -6,521 | $ | -5,058 | ||||||
Loss per share: | ||||||||||||||
Basic | $ | -0.07 | $ | -0.06 | $ | -0.4 | $ | -0.3 | ||||||
Diluted | $ | -0.07 | $ | -0.06 | $ | -0.4 | $ | -0.3 | ||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Summary of Significant Accounting Policies | ' | ||
Basis of Presentation | ' | ||
Basis of Presentation | |||
The consolidated financial statements of the Company include the accounts of First National Community Bancorp, Inc., the Bank, and the Bank’s wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated. The accounting and reporting policies of the Company conform to accounting principles general accepted in the United States of America (“GAAP”) and general practices within the financial services industry. | |||
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 significantly from these estimates. Material estimates that are particularly susceptible to change are the allowance for loan and lease losses, investment security valuations, the evaluation of investment securities and other real estate owned for impairment, and the evaluation of deferred income taxes. | |||
Cash Equivalents | ' | ||
Cash Equivalents | |||
For purposes of reporting cash flows, cash equivalents include cash on hand, amounts due from banks and federal funds sold. Generally, federal funds are purchased and sold for one day periods. | |||
Securities | ' | ||
Securities | |||
The Company classifies investment securities as either held-to-maturity or available-for-sale at the time of purchase. Investment securities that are classified as held-to-maturity are carried at amortized cost when management has the positive intent and ability to hold them to maturity. Investment securities that are classified as available-for-sale are carried at fair value with unrealized gains and losses recognized as a component of shareholders’ equity in accumulated other comprehensive income. Gains and losses on sales of investment securities are recognized using the specific identification method on a trade date basis. Interest income on investments includes amortization of premiums and accretion of discounts. Realized gains and losses are derived based on the amortized cost of the security sold. | |||
Quarterly, the Company evaluates its investment securities classified as held-to-maturity or available-for-sale for other-than-temporary impairment (“OTTI”). Unrealized losses on securities are considered to be other-than-temporarily impaired when the Company believes the security’s impairment is due to factors that could include the issuer’s inability to pay interest or dividends, the issuer’s potential for default, and/or other factors. Based on current authoritative guidance, when a held-to-maturity or available-for-sale debt security is assessed for OTTI, the Company must first consider (a) whether management intends to sell the security and (b) whether it is more likely than not that the Company will be required to sell the security prior to recovery of its amortized cost basis. If one of these circumstances applies to a security, an OTTI loss is recognized in the statement of operations equal to the full amount of the decline in fair value below amortized cost. If neither of these circumstances applies to a security, but the Company does not expect to recover the entire amortized cost basis, an OTTI loss has occurred that must be separated into two categories: (a) the amount related to credit loss and (b) the amount related to other factors (such as market risk). In assessing the level of OTTI attributable to credit loss, the Company compares the present value of cash flows expected to be collected with the amortized cost basis of the security. The portion of the total OTTI related to credit loss is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as estimated based on cash flow projections discounted at the applicable original yield of the security, and is recognized in earnings, while the amount related to other factors is recognized in other comprehensive income. The total OTTI loss is presented in the statement of operations less the portion recognized in other comprehensive income. When a debt security becomes other-than-temporarily impaired, its amortized cost basis is reduced to reflect the portion of the total impairment related to credit loss. | |||
For equity securities, the entire decline in the value that is considered other-than-temporary is recognized in earnings. | |||
Investments in the Federal Reserve Bank and Federal Home Loan Bank stock have limited marketability, are carried at cost and are evaluated for impairment based on the Company’s determination of the ultimate recoverability of the par value of the stock. The investment in the Federal Reserve Bank stock is included in other assets. | |||
Loans and Loan Fees | ' | ||
Loans and Loan Fees | |||
Loans receivable, other than loans held for sale, are stated at the principal outstanding, net of unamortized loan fees and costs, partial charge-offs and the allowance for loan and lease losses. Interest income on all loans is recognized using the effective interest method. Loan origination and commitment fees, as well as certain direct loan origination costs, are deferred and the net amount is amortized as an adjustment of the related loan’s yield. The Bank is generally amortizing these amounts over the life of the related loans except for residential mortgage loans, where the timing and amount of prepayments can be reasonably estimated. For these mortgage loans, the net deferred fees or costs are amortized over an estimated average life of five years. Amortization of deferred loan fees or costs is discontinued when a loan is placed on non-accrual status. | |||
Loans are placed on non-accrual status when a loan is specifically determined to be impaired or when management believes that the collection of interest or principal is doubtful. This is generally when a default of interest or principal has existed for 90 days or more, unless the loan is fully secured and in the process of collection, or when management becomes aware of facts or circumstances that the loan would default before 90 days. The Company determines delinquency status based on the number of days since the date of the borrower’s last required contractual loan payment. When the interest accrual is discontinued, the balance of any previously accrued but unpaid interest is reversed and charged against interest income. Any cash payments subsequently received are applied, first to the outstanding loan amounts, then to the recovery of any charged-off loan amounts. Any excess amount is treated as a recovery of lost interest. A non-accrual loan is returned to accrual status when the loan is current as to principal and interest payments, is performing according to contractual terms for six consecutive months and future payments are reasonably assured. | |||
In underwriting a loan secured by real property (unless exempt based on legal requirements), the Company requires an appraisal of the property by an independent licensed appraiser approved by the Bank’s Board of Directors. The appraisal is either reviewed internally or by an independent third party hired by the Bank. Generally, management obtains updated appraisals when a loan is deemed impaired. These appraisals may be more limited than those prepared for the underwriting of a new loan. | |||
Allowance for Loan and Lease Losses | ' | ||
Allowance for Loan and Lease Losses | |||
Management continually evaluates the credit quality of the Company’s loan portfolio, and performs a formal review of the adequacy of the allowance for loan and lease losses (“ALLL”) on a quarterly basis. Management establishes the ALLL through provisions for loan losses charged to earnings and maintains the ALLL at a level it considers adequate to absorb probable losses inherent in the loan portfolio as of the evaluation date. Loans, or portions of loans, determined by management to be uncollectable are charged off against the ALLL, while recoveries of amounts previously charged off are credited to the ALLL. | |||
Determining the amount of the ALLL is considered a critical accounting estimate because it requires significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience and qualitative factors, and consideration of current economic trends and conditions, all of which may be susceptible to significant change. Various banking regulators, as an integral part of their examinations of the Company, also review the ALLL. Such regulators may require, based on their judgments about information available to them at the time of their examination, that certain loan balances be charged off or require that adjustments be made to the ALLL. Additionally, the ALLL is determined, in part, by the composition and size of the loan portfolio. | |||
The ALLL consists of two components, a specific component and a general component. The specific component relates to loans that are classified as impaired. For such loans an allowance is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers all other loans and is based on historical loss experience adjusted by qualitative factors. The general reserve component of the ALLL is based on pools of unimpaired loans segregated by loan segment and risk rating categories of “Pass”, “Special Mention” or “Substandard and Accruing.” Historical loss factors and various qualitative factors are applied based on the risk profile in each risk rating category to determine the appropriate reserve related to those loans. As previously mentioned, substandard loans on nonaccrual status are included in impaired loans. | |||
When establishing the ALLL, management categorizes loans into segments generally based on the nature of the collateral and basis of repayment. These risk characteristics of the Company’s loan segments are as follows: | |||
Construction, Land Acquisition and Development loans - These loans consist of loans secured by real estate, with the purpose of constructing one- to four-family homes, residential developments and various commercial properties including, shopping centers, office complexes and single-purpose, owner-occupied structures. Additionally, loans in this category include loans for land acquisition, secured by raw land. The Bank’s construction program offers either short-term, interest-only loans that require the borrower to pay interest only during the construction phase with a balloon payment of the principal outstanding at the end of the construction period or interest only during construction with a conversion to amortizing principal and interest when the construction is complete. Loans for undeveloped real estate are subject to a loan-to-value ratio not to exceed 65%. Construction loans are treated similarly to the developed real estate loans and are generally subject to an 80% loan to value ratio based upon an “as-completed” appraised value. Construction loans generally yield a higher interest rate than other mortgage loans but also carry more risk. | |||
Commercial Real Estate Loans - These loans represent the largest portion of the Bank’s total loan portfolio and loans in this portfolio generally carry larger loan balances. The commercial real estate mortgage loan portfolio is secured by a broad range of real estate, including but not limited to, office complexes, shopping centers, hotels, warehouses, gas stations/ convenience markets, residential care facilities, nursing care facilities, restaurants and multifamily housing. The Bank’s commercial real estate portfolio consists of owner-occupied properties and non-owner-occupied properties and includes the personal guarantees of the principals when deemed necessary. The Bank offers various rates and terms for commercial mortgage loans secured by real estate. The interest rates associated with these types of loans are primarily priced as adjustable-rate loans with re-pricing dates extending three through seven years or floating-rate loans that adjust to a spread over the National Prime Rate (“NPR”) index. Loan pricing for most floating-rate commercial mortgage loans generally has a minimum interest rate. The terms for commercial real estate loans typically do not exceed 20 years. Commercial real estate mortgage loans are originated under a comprehensive lending policy. In particular, these types of loans are subject to specific loan-to-value guidelines prior to the time of closing. The policy limits for developed real estate loans are subject to a maximum loan-to-value ratio of 80%. Commercial mortgage loans must also meet specific criteria that include the capacity, capital, credit worthiness and cash flow of the borrower and the project being financed. Potential borrower(s) and guarantor(s) are required to provide the Bank with historical and current financial data. As part of the underwriting process for commercial real estate loans, the Bank performs a review of the cash flow analysis of the borrower(s), guarantor(s) and the project. The Bank also considers the borrower’s expertise, credit history, net worth and the value of the underlying property. The Bank generally requires that borrowers for loans secured by real estate maintain a debt service coverage ratio of at least 1.20 times. | |||
Commercial and Industrial Loans - The Bank offers commercial loans to individuals and businesses located in its primary market area. The commercial loan portfolio includes lines of credit, dealer floor plan lines, equipment loans, vehicle loans, improvement loans and term loans. These loans are primarily secured by vehicles, machinery and equipment, inventory, accounts receivable, marketable securities, deposit accounts and real estate as secondary collateral . The Bank offers various rates and terms for commercial loans. These loans also normally require the personal guarantee of the principals where deemed necessary. Most lines of credit are primarily issued for one year time periods and are renewable annually thereafter at the discretion of the Bank. Most other commercial loans range in terms from one to seven years. The interest rates associated with these types of loans are primarily underwritten as fixed-rate loans based upon the term of the loan or floating-rate loans that adjust to a spread over the NPR index. Loan pricing for most floating-rate commercial loans generally have a minimum interest rate floor. The interest rate for most lines of credit is issued on a floating-rate basis. Finally, loans secured by deposit accounts are primarily underwritten at a spread over the interest rate of the deposit instrument used as collateral for the loan. | |||
State and Political Subdivision Loans - The Bank originates general obligation notes and tax anticipation loans to state and political subdivisions, which are primarily municipalities in the Bank’s market area. | |||
Residential Real Estate Loans - The Bank offers fixed- and variable-rate one- to four-family residential loans. Residential first lien mortgages are generally subject to an 80% loan to value ratio based on the appraised value of the property. The Bank will generally require the mortgagee to purchase Private Mortgage Insurance (“PMI”) if the amount of the loan exceeds the 80% loan to value ratio. The interest rates for the variable rate loans are adjusted to a percentage above the one year treasury rate. The Bank may sell loans and retain servicing when warranted by market conditions. The Bank also offers a rate lock to customers that allow the borrowers to lock in their interest rates at the time of application as well as at time of commitment. Residential mortgage loans are generally smaller in size and are considered homogeneous as they exhibit similar characteristics. | |||
Consumer Loans - Include both secured and unsecured installment loans, personal lines of credit and overdraft protection loans. The Bank is also in the business of underwriting indirect auto loans which are originated through various auto dealers in northeastern Pennsylvania and dealer floor plan loans. The Bank offers home equity loans and home equity lines of credit (“HELOCs”) with a maximum combined loan-to-value ratio of 90% based on the appraised value of the property. Home equity loans have fixed rates of interest and carry terms up to 15 years. HELOCs have adjustable interest rates and are based upon the prime interest rate. Consumer loans are generally smaller in size and exhibit homogeneous characteristics. | |||
Mortgage Banking Activities | ' | ||
Mortgage Banking Activities | |||
Mortgage loans originated by the Bank and intended for sale are carried at the lower of aggregate cost or fair value determined on an individual loan basis. Net unrealized losses are recorded as a valuation allowance and charged to earnings. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold and include the value assigned to the rights to service the loan. Net gains on the sale of residential mortgage loans for the years ended December 31, 2013, 2012 and 2011 were $362 thousand, $859 thousand and $755 thousand, respectively. Loans held for sale are generally sold with loan servicing rights retained by the Company. At December 31, 2013 and 2012, loans held for sale amounted to $820 thousand and $1.6 million, respectively. | |||
Servicing | ' | ||
Servicing | |||
Servicing assets are reported in other assets and amortized in proportion to and over the period during which estimated servicing income will be received. Servicing loans for others consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors, and processing foreclosures. Loan servicing income is recorded when earned and represents servicing fees from investors and certain charges collected from borrowers, such as late payment fees. The Company has fiduciary responsibility for related escrow and custodial funds. | |||
Servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For sales of mortgage loans originated by the Bank, a portion of the cost of originating the loan is allocated to the servicing retained right based on fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternately, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are amortized into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. | |||
Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Bank later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. | |||
Transfers of Financial Assets | ' | ||
Transfers of Financial Assets | |||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company ( put presumptively beyond the reach of the transferor and its creditors) even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. | |||
Other Real Estate Owned [Policy Text Block] | ' | ||
Other Real Estate Owned | |||
Other real estate owned (“OREO”) consists of property acquired by foreclosure, abandonment or conveyance of deed in-lieu of foreclosure of a loan, and bank premises that are no longer used for operations or for future expansion. OREO is held for sale and is initially recorded at fair value less costs to sell at the date of acquisition or transfer, which establishes a new cost basis. Upon acquisition of a property through foreclosure or deed in-lieu of foreclosure, any write-down to fair value less estimated selling costs is charged to the ALLL. The determination is made on an individual asset basis. Bank premises no longer used for operations or future expansion is transferred to OREO at fair value less estimated selling costs with any related write-down included in non-interest expense. Subsequent to acquisition or transfer, valuations of properties are periodically performed by management and the assets are carried at the lower of cost basis or fair value less estimated cost to sell. Fair value is determined through external appraisals, current letters of intent, broker price opinions or executed agreements of sale. Costs relating to the development and improvement of the OREO properties may be capitalized, while holding period costs are charged to expense as incurred. | |||
Bank Premises and Equipment | ' | ||
Bank Premises and Equipment | |||
Land is stated at cost. Bank premises, equipment and leasehold improvements are stated at cost less accumulated depreciation. Costs for routine maintenance and repair are expensed as incurred, while significant expenditures for improvements are capitalized. Depreciation expense is computed generally using the straight-line method over the following ranges of estimated useful lives, or in the case of leasehold improvements, to the expected terms of the leases, if shorter. | |||
Buildings and improvements | 10 to 40 years | ||
Furniture, fixtures and equipment | 3 to 15 years | ||
Leasehold improvements | 2 to 39 years | ||
Intangible Assets | ' | ||
Intangible Assets | |||
Intangible assets consist entirely of a core deposit intangible which arose in connection with the acquisition of the Bank’s Honesdale branch. The core deposit intangible is amortized over an estimated useful life of 10 years. | |||
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | ' | ||
Long-lived Assets | |||
Intangible assets and bank premises and equipment are reviewed by management at least annually for potential impairment and whenever events or circumstances indicate that carrying amounts may not be recoverable. | |||
Income Taxes | ' | ||
Income Taxes | |||
The Bank recognizes income taxes under the asset and liability method. Under this method, 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 income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that all or some portion of the deferred tax assets will not be realized. | |||
The Company files a consolidated Federal income tax return. Under tax sharing agreements, each subsidiary provides for and settles income taxes with the Company as if it would have filed on a separate return basis. | |||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than-not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company determined that it had no liabilities for uncertain tax positions at December 31, 2013 and 2012. | |||
Interest and penalties related to income taxes, if any, are presented within non-interest expense. | |||
Earnings per Share | ' | ||
Earnings per Share | |||
Earnings per share is calculated on the basis of the weighted-average number of common shares outstanding during the year. Basic earnings per share excludes dilution and is computed by dividing net income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if outstanding stock options were exercised and converted into common stock. The dilutive effect of stock options is calculated using the treasury stock method. | |||
Stock-Based Compensation | ' | ||
Stock-Based Compensation | |||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. All options are charged against income at their fair value. The entire expense of the award is recognized over the vesting period. Shares of stock granted are recorded at the fair value of the shares at the grant date, over the vesting period. | |||
Bank-Owned Life Insurance | ' | ||
Bank-Owned Life Insurance | |||
Bank-owned life insurance (“BOLI”) represents the cash surrender value of life insurance policies on certain current and former directors and officers of the Company. The Company purchased the insurance as a future source of funding for the Company’s liabilities, including the payment of employee benefits such as health care. BOLI is carried in the consolidated statements of financial condition at its cash surrender value. Increases in the cash value of the policies, as well as proceeds received, are recorded in non-interest income, and are not subject to income taxes. Under some of these policies, the beneficiaries receive a portion of the death benefit. The net present value of the future death benefits scheduled to be paid to the beneficiaries was $94 thousand and $99 thousand at December 31, 2013 and 2012, respectively, and is reflected in “Other Liabilities” on the consolidated statements of financial condition. | |||
Fair Value Measurement | ' | ||
Fair Value Measurement | |||
The Company uses fair value measurements to record fair value adjustments to certain financial assets and liabilities and to determine fair value disclosures. Available-for-sale securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to recognize adjustments to other assets at fair value on a nonrecurring basis, such as impaired loans, other securities, and OREO. | |||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities: it is not a forced transaction. | |||
Accounting standards define fair value, establish a framework for measuring fair value, establish a three-level hierarchy for disclosure of fair value measurement and provide disclosure requirements about fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. | |||
The three levels of the fair value hierarchy are: | |||
· | Level 1 valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. | ||
· | Level 2 valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data. | ||
· | Level 3 valuation is derived from other valuation methodologies including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. | ||
Comprehensive Income | ' | ||
Comprehensive Income | |||
Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income (loss). Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the shareholders’ equity section of the statement of financial condition, such items, along with a net income (loss), are components of comprehensive income (loss). | |||
New Authoritative Accounting Guidance | ' | ||
New Authoritative Accounting Guidance | |||
Accounting Standards Update (“ASU”) No. 2011-11, Balance Sheet (Topic 210): “Disclosures about Offsetting Assets and Liabilities” requires enhanced disclosures that will enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. This includes the effect or potential effect of rights of setoff associated with an entity’s recognized assets and recognized liabilities within the scope of this update. The amendments require enhanced disclosures by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either ASC 210-20-45 or ASC 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either ASC 210-20-45 or ASC 815-10-45. The Company adopted ASU No. 2011-11 on January 1, 2013. The adoption of this new guidance did not have an effect on the operating results or financial position of the Company. | |||
ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350): “Testing Indefinite-Lived Intangible Assets for Impairment” simplifies the guidance for testing the decline in realizable value (impairment) of indefinite-lived intangible assets other than goodwill. ASU No. 2012-02 allows an entity the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. An organization electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the organization determines, based on a qualitative assessment, that it is “more likely than not” that the asset is impaired. The Company adopted ASU 2012-02 on January 1, 2013. The adoption of this new guidance did not have an effect on the operating results or financial position of the Company. | |||
ASU No. 2013-01, Balance Sheet (Topic 210): “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” clarifies the scope of transactions that are subject to the disclosures about offsetting, specifically that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11. This update applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are offset in accordance with specific criteria contained in FASB Accounting Standards Codification or subject to a master netting arrangement or similar agreement. The Company adopted ASU 2013-01 on January 1, 2013. The adoption of this new guidance did not have an effect on the operating results or financial position of the Company. | |||
ASU No. 2013-02, Comprehensive Income (Topic 220): “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” improves the transparency of reporting these reclassifications. The new amendments require an organization to: present either on the face of the statement where income is presented or in the notes to the financial statements the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income; or cross reference to other disclosures currently required under GAAP for other reclassification items to be reclassified directly to income in their entirety in the same reporting period. The amendments apply to all public and private companies that report other comprehensive income. The Company adopted ASU 2013-02 on January 1, 2013. The adoption of this new guidance did not have an effect on the operating results or financial position of the Company; however, see Note 20 to the consolidated financial statements for additional disclosures related to the adoption of ASU No. 2013-02. | |||
Accounting Guidance to be Adopted in Future Periods [Policy Text Block] | ' | ||
Accounting Guidance to be Adopted in Future Periods | |||
ASU 2013-11, Income Taxes (Topic 740): “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and not combined with deferred tax assets. This guidance is effective prospectively for fiscal years, and interim periods within those years beginning after December 15, 2014, with early adoption permitted. The Company is evaluating the effect the adoption of ASU 2013-11 on January 1, 2015 may have on the operating results or financial position of the Company. | |||
ASU 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to residential real estate property upon completion of a foreclosure or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014, with early adoption permitted. The adoption of this guidance on January 1, 2015 is not expected to have a material effect on the operating results or financial position of the Company. | |||
Reclassification of Prior Year Financial Statements | ' | ||
Reclassification of Prior Year Financial Statements | |||
Certain reclassifications have been made to the prior year’s consolidated financial statements to conform to the current year’s presentation. Such reclassifications had no impact on the Company’s results of operations. | |||
Impaired Financing Receivable, Policy [Policy Text Block] | ' | ||
Loan Impairment | |||
A loan is considered impaired when it is probable that the Bank will be unable to collect all amounts due (including principal and interest) according to the contractual terms of the note and loan agreement. For purposes of the Company’s analysis, TDRs, loans rated substandard and on non-accrual status, and loans that are identified as doubtful or loss, are considered impaired. Impaired loans are analyzed individually for impairment. The Company generally utilizes the fair value of collateral method for collateral dependent loans. A loan is considered to be collateral dependent when repayment of the loan is expected to be provided through the liquidation of the collateral held. For impaired loans that are secured by real estate, external appraisals are obtained annually, or more frequently as warranted, to ascertain a fair value so that the impairment analysis can be updated. Should a current appraisal not be available at the time of impairment analysis, other sources of valuation such as current letters of intent, broker price opinions or executed agreements of sale may be used. For non-collateral dependent impaired loans and TDRs, the Company measures impairment based on the present value of expected future cash flows, discounted at the loan’s original effective interest rate. | |||
Generally all loans with balances of $100 thousand or less are considered within homogeneous pools and are not individually evaluated for impairment. However, individual loans with balances of $100 thousand or less are individually evaluated for impairment if that loan is part of a larger impaired loan relationship or the loan is considered a TDR. | |||
Impaired loans or portions thereof are charged-off upon determination that all or a portion of the loan balance is uncollectible and exceeds the fair value of the collateral. A loan is considered uncollectible when the borrower is delinquent with respect to principal or interest repayment and it is unlikely that the borrower will have the ability to pay the debt in a timely manner, collateral value is insufficient to cover the outstanding indebtedness and the guarantors (if applicable) do not provide adequate support for the loan. | |||
SECURITIES_Tables
SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | |||||||||||||||||||
The following tables present the amortized cost, gross unrealized gains and losses, and the fair value of the Company’s available-for-sale and held-to-maturity securities at and December 31, 2013 and 2012: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||
Amortized | Holding | Holding | Fair | |||||||||||||||||
(in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
Available-for-sale: | ||||||||||||||||||||
Obligations of state and political subdivisions | $ | 79,488 | $ | 1,422 | $ | 2,856 | $ | 78,054 | ||||||||||||
Government-sponsored agency: | ||||||||||||||||||||
Collateralized mortgage obligations | 35,906 | 46 | 1,153 | 34,799 | ||||||||||||||||
Residential mortgage-backed securities | 91,648 | 98 | 2,090 | 89,656 | ||||||||||||||||
Corporate debt securities | 500 | - | 93 | 407 | ||||||||||||||||
Equity securities | 1,010 | - | 59 | 951 | ||||||||||||||||
Total available-for-sale securities | $ | 208,552 | $ | 1,566 | $ | 6,251 | $ | 203,867 | ||||||||||||
Held-to-maturity: | ||||||||||||||||||||
Obligations of state and political subdivisions | $ | 2,308 | $ | 116 | $ | - | $ | 2,424 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||
Amortized | Holding | Holding | Fair | |||||||||||||||||
(in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
Available-for-sale: | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 1,821 | $ | 70 | $ | - | $ | 1,891 | ||||||||||||
Obligations of state and political subdivisions | 95,312 | 8,922 | 733 | 103,501 | ||||||||||||||||
Government-sponsored agency: | ||||||||||||||||||||
Collateralized mortgage obligations | 8,805 | 311 | 13 | 9,103 | ||||||||||||||||
Residential mortgage-backed securities | 67,765 | 1,920 | 229 | 69,456 | ||||||||||||||||
Corporate debt securities | 500 | - | 90 | 410 | ||||||||||||||||
Equity securities | 1,010 | - | 10 | 1,000 | ||||||||||||||||
Total available-for-sale securities | $ | 175,213 | $ | 11,223 | $ | 1,075 | $ | 185,361 | ||||||||||||
Held-to-maturity: | ||||||||||||||||||||
Obligations of state and political subdivisions | $ | 2,198 | $ | 285 | $ | - | $ | 2,483 | ||||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | ' | |||||||||||||||||||
The following table shows the approximate fair value of the Company’s debt securities at December 31, 2013 using contractual maturities. Expected maturities will differ from contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Because collateralized mortgage obligations and mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary. | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Available-for-Sale | Held-to-Maturity | |||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||
(in thousands) | Cost | Value | Cost | Value | ||||||||||||||||
Amounts maturing in: | ||||||||||||||||||||
One year or less | $ | 595 | $ | 571 | $ | - | $ | - | ||||||||||||
One year through five years | - | - | - | - | ||||||||||||||||
After five years through ten years | 21,195 | 21,274 | 2,308 | 2,424 | ||||||||||||||||
After ten years | 58,198 | 56,616 | - | - | ||||||||||||||||
Collateralized mortgage obligations | 35,906 | 34,799 | - | - | ||||||||||||||||
Residential mortgage-backed securities | 91,648 | 89,656 | - | - | ||||||||||||||||
Total | $ | 207,542 | $ | 202,916 | $ | 2,308 | $ | 2,424 | ||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] | ' | |||||||||||||||||||
The following tables indicate the length of time that individual securities held-to-maturity and available-for-sale have been in a continuous unrealized loss position at December 31, 2013 and 2012: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
(in thousands) | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Obligations of state and political subdivisions | $ | 33,835 | $ | 1,837 | $ | 4,756 | $ | 1,019 | $ | 38,591 | $ | 2,856 | ||||||||
Government-sponsored agency: | ||||||||||||||||||||
Collateralized mortgage obligations | 31,683 | 1,139 | 833 | 14 | 32,516 | 1,153 | ||||||||||||||
Residential mortgage-backed securities | 79,046 | 1,961 | 7,506 | 129 | 86,552 | 2,090 | ||||||||||||||
Corporate debt securities | - | - | 407 | 93 | 407 | 93 | ||||||||||||||
Equity securities | - | - | 941 | 59 | 941 | 59 | ||||||||||||||
Total | $ | 144,564 | $ | 4,937 | $ | 14,443 | $ | 1,314 | $ | 159,007 | $ | 6,251 | ||||||||
December 31, 2012 | ||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
(in thousands) | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Obligations of state and political subdivisions | $ | 8,649 | $ | 398 | $ | 4,139 | $ | 335 | $ | 12,788 | $ | 733 | ||||||||
Government-sponsored agency: | ||||||||||||||||||||
Collateralized mortgage obligations | 1,485 | 13 | 2 | - | 1,487 | 13 | ||||||||||||||
Residential mortgage-backed securities | 12,899 | 229 | - | - | 12,899 | 229 | ||||||||||||||
Corporate debt securities | - | - | 410 | 90 | 410 | 90 | ||||||||||||||
Equity securities | 990 | 10 | - | - | 990 | 10 | ||||||||||||||
Total | $ | 24,023 | $ | 650 | $ | 4,551 | $ | 425 | $ | 28,574 | $ | 1,075 | ||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block] | ' | |||||||||||||||||||
The table below provides a cumulative roll forward of OTTI credit losses recognized: | ||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2011 | |||||||||||||||||
Beginning Balance, January 1 | $ | - | $ | 8,619 | $ | 22,598 | ||||||||||||||
Credit losses on debt securities for which OTTI was not previously recognized | - | - | - | |||||||||||||||||
Additional credit losses on debt securities for which OTTI was previously recognized | - | 96 | 798 | |||||||||||||||||
Less: Sale of Private Label CMOs for which OTTI was previously recognized | - | - | - | |||||||||||||||||
Less: Sale of PreTSLs for which OTTI was previously recognized | - | -8,715 | -14,777 | |||||||||||||||||
Ending Balance, December 31 | $ | - | $ | - | $ | 8,619 | ||||||||||||||
LOANS_Tables
LOANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||||||||||||||||||||||
Loans receivable, net, consists of the following at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||
Residential real estate | $ | 114,925 | $ | 90,228 | |||||||||||||||||||||||||
Commercial real estate | 218,524 | 221,591 | |||||||||||||||||||||||||||
Construction, land acquisition and development | 24,382 | 32,502 | |||||||||||||||||||||||||||
Commercial and industrial | 127,021 | 109,693 | |||||||||||||||||||||||||||
Consumer | 118,645 | 109,783 | |||||||||||||||||||||||||||
State and political subdivisions | 39,875 | 33,978 | |||||||||||||||||||||||||||
Total loans, gross | 643,372 | 597,775 | |||||||||||||||||||||||||||
Unearned income | -143 | -103 | |||||||||||||||||||||||||||
Net deferred loan fees and costs | 668 | 260 | |||||||||||||||||||||||||||
Allowance for loan and lease losses | -14,017 | -18,536 | |||||||||||||||||||||||||||
Loans, net | $ | 629,880 | $ | 579,396 | |||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following tables present activity in the ALLL, by loan category, the amount of gross loans receivable that are evaluated individually and collectively for impairment, and the related portion of the ALLL that is allocated to each loan portfolio segment for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses by Loan Category | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
(in thousands) | Residential | Commercial | Construction, | Commercial | Consumer | State and | Total | ||||||||||||||||||||||
Real Estate | Real Estate | Land | and Industrial | Political | |||||||||||||||||||||||||
Acquisition and | Subdivisions | ||||||||||||||||||||||||||||
Development | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | 1,764 | $ | 8,062 | $ | 2,162 | $ | 4,167 | $ | 1,708 | $ | 673 | $ | 18,536 | |||||||||||||||
Charge-offs | -664 | -65 | -179 | -341 | -655 | - | -1,904 | ||||||||||||||||||||||
Recoveries | 343 | 879 | 130 | 1,853 | 450 | - | 3,655 | ||||||||||||||||||||||
Provisions (credits) | 844 | -2,859 | -1,189 | -3,358 | 286 | 6 | -6,270 | ||||||||||||||||||||||
Ending balance, December 31, 2013 | $ | 2,287 | $ | 6,017 | $ | 924 | $ | 2,321 | $ | 1,789 | $ | 679 | $ | 14,017 | |||||||||||||||
Ending balance, December 31, 2013: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 12 | $ | 296 | $ | 1 | $ | - | $ | 1 | $ | - | $ | 310 | |||||||||||||||
Ending balance, December 31, 2013: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 2,275 | $ | 5,721 | $ | 923 | $ | 2,321 | $ | 1,788 | $ | 679 | $ | 13,707 | |||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance, December 31, 2013 | $ | 114,925 | $ | 218,524 | $ | 24,382 | $ | 127,021 | $ | 118,645 | $ | 39,875 | $ | 643,372 | |||||||||||||||
Ending balance, December 31, 2013: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,985 | $ | 6,626 | $ | 306 | $ | - | $ | 316 | $ | - | $ | 9,233 | |||||||||||||||
Ending balance, December 31, 2013: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 112,940 | $ | 211,898 | $ | 24,076 | $ | 127,021 | $ | 118,329 | $ | 39,875 | $ | 634,139 | |||||||||||||||
Allowance for Loan and Lease Losses by Loan Category | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
(in thousands) | Residential Real | Commercial | Construction, | Commercial | Consumer | State and | Total | ||||||||||||||||||||||
Estate | Real Estate | Land | and Industrial | Political | |||||||||||||||||||||||||
Acquisition and | Subdivisions | ||||||||||||||||||||||||||||
Development | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance, January 1, 2012 | $ | 1,823 | $ | 11,151 | $ | 2,590 | $ | 3,292 | $ | 1,526 | $ | 452 | $ | 20,834 | |||||||||||||||
Charge-offs | -683 | -3,298 | -258 | -3,389 | -673 | - | -8,301 | ||||||||||||||||||||||
Recoveries | 35 | 1,035 | 265 | 265 | 338 | - | 1,938 | ||||||||||||||||||||||
Provisions (credits) | 589 | -826 | -435 | 3,999 | 517 | 221 | 4,065 | ||||||||||||||||||||||
Ending balance, December 31, 2012 | $ | 1,764 | $ | 8,062 | $ | 2,162 | $ | 4,167 | $ | 1,708 | $ | 673 | $ | 18,536 | |||||||||||||||
Ending balance, December 31, 2012: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 40 | $ | 268 | $ | 2 | $ | - | $ | - | $ | - | $ | 310 | |||||||||||||||
Ending balance, December 31, 2012: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 1,724 | $ | 7,794 | $ | 2,160 | $ | 4,167 | $ | 1,708 | $ | 673 | $ | 18,226 | |||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance, December 31, 2012 | $ | 90,228 | $ | 221,591 | $ | 32,502 | $ | 109,693 | $ | 109,783 | $ | 33,978 | $ | 597,775 | |||||||||||||||
Ending balance, December 31, 2012: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,773 | $ | 11,459 | $ | 993 | $ | - | $ | - | $ | - | $ | 15,225 | |||||||||||||||
Ending balance, December 31, 2012: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 87,455 | $ | 210,132 | $ | 31,509 | $ | 109,693 | $ | 109,783 | $ | 33,978 | $ | 582,550 | |||||||||||||||
Allowance for Loan and Lease Losses by Loan Category | |||||||||||||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||
Real Estate | Commercial and Industrial | Consumer | |||||||||||||||||||||||||||
(in thousands) | Residential | Commercial | Construction, | Solid Waste | Commercial | Indirect | Installment/ | State and | Total | ||||||||||||||||||||
Real Estate | Real Estate | Land | Landfills | and | Auto | HELOC | Political | ||||||||||||||||||||||
Acquisition and | Industrial | Subdivisions | |||||||||||||||||||||||||||
Development | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance, January 1, 2011 | $ | 2,176 | $ | 9,640 | $ | 4,170 | $ | 11 | $ | 4,839 | $ | 597 | $ | 576 | $ | 566 | $ | 22,575 | |||||||||||
Charge-offs | -1,273 | -2,395 | -1,857 | - | -416 | -530 | -209 | - | -6,680 | ||||||||||||||||||||
Recoveries | 57 | 93 | 2,188 | - | 1,852 | 219 | 7 | - | 4,416 | ||||||||||||||||||||
Provisions (credits) | 863 | 3,813 | -1,911 | 5 | -2,999 | 516 | 350 | -114 | 523 | ||||||||||||||||||||
Ending balance, December 31, 2011 | $ | 1,823 | $ | 11,151 | $ | 2,590 | $ | 16 | $ | 3,276 | $ | 802 | $ | 724 | $ | 452 | $ | 20,834 | |||||||||||
Ending balance, December 31, 2011: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 65 | $ | 545 | $ | 91 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 701 | |||||||||||
Ending balance, December 31, 2011: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 1,758 | $ | 10,606 | $ | 2,499 | $ | 16 | $ | 3,276 | $ | 802 | $ | 724 | $ | 452 | $ | 20,133 | |||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
- | |||||||||||||||||||||||||||||
Ending balance, December 31, 2011 | $ | 80,056 | $ | 256,508 | $ | 33,450 | $ | 42,270 | $ | 131,963 | $ | 63,722 | $ | 48,056 | $ | 23,496 | $ | 679,521 | |||||||||||
Ending balance, December 31, 2011: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,615 | $ | 13,012 | $ | 2,979 | $ | - | $ | 4,066 | $ | - | $ | 31 | $ | - | $ | 23,703 | |||||||||||
Ending balance, December 31, 2011: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 76,441 | $ | 243,496 | $ | 30,471 | $ | 42,270 | $ | 127,897 | $ | 63,722 | $ | 48,025 | $ | 23,496 | $ | 655,818 | |||||||||||
Financing Receivable Credit Quality Indicators [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following tables present the recorded investment in loans receivable by the aforementioned class of loan and credit quality indicator at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Commercial Credit Quality Indicators | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
Construction, | State and | ||||||||||||||||||||||||||||
Residential Real | Commercial Real | Land Acquisition | Commercial and | Political | |||||||||||||||||||||||||
(in thousands) | Estate | Estate | and Development | Industrial | Consumer | Subdivisions | Total | ||||||||||||||||||||||
Internal risk rating | |||||||||||||||||||||||||||||
Pass | $ | 19,050 | $ | 191,601 | $ | 13,781 | $ | 113,048 | $ | 2,546 | $ | 39,151 | $ | 379,177 | |||||||||||||||
Special mention | 869 | 12,568 | 1,361 | 3,777 | - | - | 18,575 | ||||||||||||||||||||||
Substandard | 1,347 | 14,355 | 6,168 | 4,525 | 157 | 724 | 27,276 | ||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | ||||||||||||||||||||||
Loss | - | - | - | - | - | - | - | ||||||||||||||||||||||
Total | $ | 21,266 | $ | 218,524 | $ | 21,310 | $ | 121,350 | $ | 2,703 | $ | 39,875 | $ | 425,028 | |||||||||||||||
Commercial Credit Quality Indicators | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
Construction, | State and | ||||||||||||||||||||||||||||
Residential Real | Commercial Real | Land Acquisition | Commercial and | Political | |||||||||||||||||||||||||
(in thousands) | Estate | Estate | and Development | Industrial | Consumer | Subdivisions | Total | ||||||||||||||||||||||
Internal risk rating | |||||||||||||||||||||||||||||
Pass | $ | 17,138 | $ | 189,903 | $ | 23,052 | $ | 93,484 | $ | 3,324 | $ | 28,204 | $ | 355,105 | |||||||||||||||
Special mention | 564 | 8,587 | 57 | 7,437 | - | 849 | 17,494 | ||||||||||||||||||||||
Substandard | 2,309 | 23,101 | 7,395 | 3,395 | 143 | 4,925 | 41,268 | ||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | ||||||||||||||||||||||
Loss | - | - | - | - | - | - | - | ||||||||||||||||||||||
Total | $ | 20,011 | $ | 221,591 | $ | 30,504 | $ | 104,316 | $ | 3,467 | $ | 33,978 | $ | 413,867 | |||||||||||||||
The following tables present the recorded investment in residential real estate loans, consumer loans and commercial indirect auto loans based on payment activity at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Other Loans Credit Quality Indicators | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Accruing | Non-accruing | ||||||||||||||||||||||||||||
(in thousands) | Loans | Loans | Total | ||||||||||||||||||||||||||
Residential real estate | $ | 92,181 | $ | 1,478 | $ | 93,659 | |||||||||||||||||||||||
Construction, land acquisition and development - residential | 3,072 | - | 3,072 | ||||||||||||||||||||||||||
Commercial - indirect auto | 5,671 | - | 5,671 | ||||||||||||||||||||||||||
Consumer | 115,809 | 133 | 115,942 | ||||||||||||||||||||||||||
Total | $ | 216,733 | $ | 1,611 | $ | 218,344 | |||||||||||||||||||||||
Other Loans Credit Quality Indicators | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Accruing | Non-accruing | ||||||||||||||||||||||||||||
(in thousands) | Loans | Loans | Total | ||||||||||||||||||||||||||
Residential real estate | $ | 68,446 | $ | 1,771 | $ | 70,217 | |||||||||||||||||||||||
Construction, land acquisition and development - residential | 1,998 | - | 1,998 | ||||||||||||||||||||||||||
Commercial - indirect auto | 5,377 | - | 5,377 | ||||||||||||||||||||||||||
Consumer | 106,272 | 44 | 106,316 | ||||||||||||||||||||||||||
Total | $ | 182,093 | $ | 1,815 | $ | 183,908 | |||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following tables set forth the detail, and delinquency status, of past due and non-accrual loans at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Performing and Non-Performing Loan Delinquency Status | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Delinquency Status | |||||||||||||||||||||||||||||
0-29 Days | 30-59 Days | 60-89 Days | >/=160;90 Days | ||||||||||||||||||||||||||
(in thousands) | Past Due | Past Due | Past Due | Past Due | Total | ||||||||||||||||||||||||
Performing (accruing) loans: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | $ | 112,519 | $ | 571 | $ | 116 | $ | - | $ | 113,206 | |||||||||||||||||||
Commercial real estate | 213,660 | 629 | - | - | 214,289 | ||||||||||||||||||||||||
Construction, land acquisition and development | 24,259 | 78 | - | - | 24,337 | ||||||||||||||||||||||||
Total real estate | 350,438 | 1,278 | 116 | - | 351,832 | ||||||||||||||||||||||||
Commercial and industrial | 126,441 | 232 | 125 | 19 | 126,817 | ||||||||||||||||||||||||
Consumer | 116,710 | 1,420 | 362 | - | 118,492 | ||||||||||||||||||||||||
State and political subdivisions | 39,875 | - | - | - | 39,875 | ||||||||||||||||||||||||
Total peforming (accruing) loans | 633,464 | 2,930 | 603 | 19 | 637,016 | ||||||||||||||||||||||||
Non-accrual loans: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | 570 | 73 | 51 | 1,025 | 1,719 | ||||||||||||||||||||||||
Commercial real estate | 4,183 | 52 | - | - | 4,235 | ||||||||||||||||||||||||
Construction, land acquisition and development | - | - | 45 | - | 45 | ||||||||||||||||||||||||
Total real estate | 4,753 | 125 | 96 | 1,025 | 5,999 | ||||||||||||||||||||||||
Commercial and industrial | 181 | - | 23 | - | 204 | ||||||||||||||||||||||||
Consumer | 14 | 31 | 16 | 92 | 153 | ||||||||||||||||||||||||
State and political subdivisions | - | - | - | - | - | ||||||||||||||||||||||||
Total non-accrual loans | 4,948 | 156 | 135 | 1,117 | 6,356 | ||||||||||||||||||||||||
Total loans receivable | $ | 638,412 | $ | 3,086 | $ | 738 | $ | 1,136 | $ | 643,372 | |||||||||||||||||||
Performing and Non-Performing Loan Delinquency Status | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Delinquency Status | |||||||||||||||||||||||||||||
0-29 Days | 30-59 Days | 60-89 Days | >/=160;90 Days | ||||||||||||||||||||||||||
(in thousands) | Past Due | Past Due | Past Due | Past Due | Total | ||||||||||||||||||||||||
Performing (accruing) loans: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | $ | 86,301 | $ | 422 | $ | 31 | $ | 30 | $ | 86,784 | |||||||||||||||||||
Commercial real estate | 216,100 | 194 | - | - | 216,294 | ||||||||||||||||||||||||
Construction, land acquisition and development | 31,899 | 29 | - | - | 31,928 | ||||||||||||||||||||||||
Total real estate | 334,300 | 645 | 31 | 30 | 335,006 | ||||||||||||||||||||||||
Commercial and industrial | 108,932 | 517 | 20 | 27 | 109,496 | ||||||||||||||||||||||||
Consumer | 107,821 | 1,489 | 333 | - | 109,643 | ||||||||||||||||||||||||
State and political subdivisions | 33,978 | - | - | - | 33,978 | ||||||||||||||||||||||||
Total peforming (accruing) loans | 585,031 | 2,651 | 384 | 57 | 588,123 | ||||||||||||||||||||||||
Non-accrual loans: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | 953 | 105 | 230 | 2,156 | 3,444 | ||||||||||||||||||||||||
Commercial real estate | 250 | 121 | 4,352 | 574 | 5,297 | ||||||||||||||||||||||||
Construction, land acquisition and development | 446 | - | - | 128 | 574 | ||||||||||||||||||||||||
Total real estate | 1,649 | 226 | 4,582 | 2,858 | 9,315 | ||||||||||||||||||||||||
Commercial and industrial | 61 | 30 | 11 | 95 | 197 | ||||||||||||||||||||||||
Consumer | 2 | - | 2 | 136 | 140 | ||||||||||||||||||||||||
State and political subdivisions | - | - | - | - | - | ||||||||||||||||||||||||
Total non-accrual loans | 1,712 | 256 | 4,595 | 3,089 | 9,652 | ||||||||||||||||||||||||
Total loans receivable | $ | 586,743 | $ | 2,907 | $ | 4,979 | $ | 3,146 | $ | 597,775 | |||||||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following tables present a distribution of the recorded investment, unpaid principal balance and related allowance for the Company’s impaired loans, which have been analyzed for impairment under ASC 310, at December 31, 2013 and 2012. Non-accrual loans other than TDRs, with balances less than the $100 thousand loan relationship threshold are not evaluated individually for impairment and are accordingly not included in the following tables. However, these loans are evaluated collectively for impairment as homogenous pools in the general allowance under ASC Topic 450. Total non-accrual loans, other than TDRs, with balances less than the $100 thousand loan relationship threshold that were evaluated under ASC Topic 450 amounted to $1.1 million and $1.9 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid Principal | Related | ||||||||||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | $ | 1,043 | $ | 1,125 | $ | - | |||||||||||||||||||||||
Commercial real estate | 4,060 | 4,435 | - | ||||||||||||||||||||||||||
Construction, land acquisition and development | - | - | - | ||||||||||||||||||||||||||
Total real estate loans | 5,103 | 5,560 | - | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||||||
Total impaired loans with no related allowance recorded | 5,103 | 5,560 | - | ||||||||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | 942 | 946 | 12 | ||||||||||||||||||||||||||
Commercial real estate | 2,566 | 2,566 | 296 | ||||||||||||||||||||||||||
Construction, land acquisition and development | 306 | 306 | 1 | ||||||||||||||||||||||||||
Total real estate loans | 3,814 | 3,818 | 309 | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | ||||||||||||||||||||||||||
Consumer | 316 | 316 | 1 | ||||||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||||||
Total impaired loans with a related allowance recorded | 4,130 | 4,134 | 310 | ||||||||||||||||||||||||||
Total of impaired loans | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | 1,985 | 2,071 | 12 | ||||||||||||||||||||||||||
Commercial real estate | 6,626 | 7,001 | 296 | ||||||||||||||||||||||||||
Construction, land acquisition and development | 306 | 306 | 1 | ||||||||||||||||||||||||||
Total real estate loans | 8,917 | 9,378 | 309 | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | ||||||||||||||||||||||||||
Consumer | 316 | 316 | 1 | ||||||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||||||
Total impaired loans | $ | 9,233 | $ | 9,694 | $ | 310 | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid Principal | Related | ||||||||||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | $ | 1,275 | $ | 1,378 | $ | - | |||||||||||||||||||||||
Commercial real estate | 389 | 665 | - | ||||||||||||||||||||||||||
Construction, land acquisition and development | 709 | 804 | - | ||||||||||||||||||||||||||
Total real estate loans | 2,373 | 2,847 | - | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||||||
Total impaired loans with no related allowance recorded | 2,373 | 2,847 | - | ||||||||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | 1,498 | 1,512 | 40 | ||||||||||||||||||||||||||
Commercial real estate | 11,070 | 11,070 | 268 | ||||||||||||||||||||||||||
Construction, land acquisition and development | 284 | 284 | 2 | ||||||||||||||||||||||||||
Total real estate loans | 12,852 | 12,866 | 310 | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||||||
Total impaired loans with a related allowance recorded | 12,852 | 12,866 | 310 | ||||||||||||||||||||||||||
Total of impaired loans | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | 2,773 | 2,890 | 40 | ||||||||||||||||||||||||||
Commercial real estate | 11,459 | 11,735 | 268 | ||||||||||||||||||||||||||
Construction, land acquisition and development | 993 | 1,089 | 2 | ||||||||||||||||||||||||||
Total real estate loans | 15,225 | 15,714 | 310 | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | ||||||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||||||
Total impaired loans | $ | 15,225 | $ | 15,714 | $ | 310 | |||||||||||||||||||||||
Schedule of average balance and interest income recognized on impaired loans | ' | ||||||||||||||||||||||||||||
The following table presents the average balance and the interest income recognized on impaired loans for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(in thousands) | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||||||
Balance | Income (1) | Balance | Income (1) | Balance | Income (1) | ||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential real estate | $ | 2,301 | $ | 22 | $ | 3,882 | $ | 11 | $ | 2,834 | $ | 7 | |||||||||||||||||
Commercial real estate | 10,004 | 313 | 14,196 | 328 | 12,827 | 184 | |||||||||||||||||||||||
Construction, land acquisition and development | 761 | 28 | 2,340 | 37 | 6,445 | 38 | |||||||||||||||||||||||
Total real estate | 13,066 | 363 | 20,418 | 376 | 22,106 | 229 | |||||||||||||||||||||||
Commercial and industrial | - | - | 2,521 | - | 4,971 | 9 | |||||||||||||||||||||||
Consumer | 79 | 3 | 232 | - | 58 | - | |||||||||||||||||||||||
State and political subdivisions | - | - | 157 | - | - | - | |||||||||||||||||||||||
Total impaired loans | $ | 13,145 | $ | 366 | $ | 23,328 | $ | 376 | $ | 27,135 | $ | 238 | |||||||||||||||||
(1) Interest income represents income recognized on performing TDRs. | |||||||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following tables show the pre- and post- modification recorded investment in loans modified as TDRs during the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | ||||||||||||||||||||||||||
Modification | Modification | Modification | Modification | ||||||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | ||||||||||||||||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | ||||||||||||||||||||||||
(dollars in thousands) | Contracts | Investments | Investments | Contracts | Investments | Investments | |||||||||||||||||||||||
Troubled debt restructuring: | |||||||||||||||||||||||||||||
Residential real estate | 16 | $ | 827 | $ | 947 | 1 | $ | 624 | $ | 624 | |||||||||||||||||||
Commercial real estate | 2 | 4,561 | 4,561 | 3 | 2,428 | 2,428 | |||||||||||||||||||||||
Construction, land acquisition and development | - | - | - | 1 | 39 | 39 | |||||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | - | |||||||||||||||||||||||
Consumer | 2 | 318 | 318 | - | - | - | |||||||||||||||||||||||
Total new troubled debt restructuring | 20 | 5,706 | 5,826 | 5 | 3,091 | 3,091 | |||||||||||||||||||||||
Schedule of Types of Modifications of Troubled Debt Restructurings on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||
The following table shows the types of modifications made during the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Construction, | |||||||||||||||||||||||||||||
Land Acquisition | Commercial | ||||||||||||||||||||||||||||
Residential | Commercial | and | and | ||||||||||||||||||||||||||
(in thousands) | Real Estate | Real Estate | Development | Industrial | Consumer | Total | |||||||||||||||||||||||
Type of modification: | |||||||||||||||||||||||||||||
Extension of term | $ | 41 | $ | - | $ | - | $ | - | $ | 318 | $ | 359 | |||||||||||||||||
Extension of term and capitalization of taxes | 860 | - | - | - | - | 860 | |||||||||||||||||||||||
Principal forebearance | - | 4,561 | - | - | - | 4,561 | |||||||||||||||||||||||
Capitalization of taxes | 46 | - | - | - | - | 46 | |||||||||||||||||||||||
Total modifications | $ | 947 | $ | 4,561 | $ | - | $ | - | $ | 318 | $ | 5,826 | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||
Construction, | |||||||||||||||||||||||||||||
Land Acquisition | Commercial | ||||||||||||||||||||||||||||
Residential | Commercial | and | and | ||||||||||||||||||||||||||
(in thousands) | Real Estate | Real Estate | Development | Industrial | Consumer | Total | |||||||||||||||||||||||
Type of modification: | |||||||||||||||||||||||||||||
Extension of term | $ | 624 | $ | 432 | $ | 39 | $ | - | $ | - | $ | 1,095 | |||||||||||||||||
Extension of term and rate concession | - | 1,996 | - | - | - | 1,996 | |||||||||||||||||||||||
Total modifications | $ | 624 | $ | 2,428 | $ | 39 | $ | - | $ | - | $ | 3,091 | |||||||||||||||||
Summary of TDRs which have re-defaulted | ' | ||||||||||||||||||||||||||||
The following table summarizes TDRs which have re-defaulted (defined as past due 90 days) during the years ended December 31, 2013 and 2012 that were restructured within the twelve months prior to such re-default: | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||
(dollars in thousands) | Contracts | Investment | Contracts | Investment | |||||||||||||||||||||||||
Residential real estate | 1 | $ | 27 | 2 | $ | 196 | |||||||||||||||||||||||
Commercial real estate | - | - | - | - | |||||||||||||||||||||||||
Construction, land acquisition and development | - | - | 1 | 408 | |||||||||||||||||||||||||
Commercial and industrial | - | - | - | - | |||||||||||||||||||||||||
Total | 1 | $ | 27 | 3 | $ | 604 | |||||||||||||||||||||||
OTHER_REAL_ESTATE_OWNED_Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||
Schedule reflecting the components of OREO | ' | ||||||||||
The following schedule presents the composition of OREO at December 31, 2013 and 2012: | |||||||||||
December 31, | |||||||||||
(in thousands) | 2013 | 2012 | |||||||||
Land / lots | $ | 3,549 | $ | 2,711 | |||||||
Commercial real estate | 647 | 1,245 | |||||||||
Residential real estate | 50 | 27 | |||||||||
Total other real estate owned | $ | 4,246 | $ | 3,983 | |||||||
Other Real Estate Owned Roll Forward [Table Text Block] | ' | ||||||||||
The following table presents the activity in OREO for the years ended December 31, 2013, 2012 and 2011: | |||||||||||
For the Years Ended December 31, | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Balance, beginning of year | $ | 3,983 | $ | 6,958 | $ | 9,633 | |||||
Loans transferred to OREO | 255 | 1,586 | 3,995 | ||||||||
Bank premises transferred to OREO | 1,819 | - | - | ||||||||
Valuation adjustments | -223 | -1,206 | -2,318 | ||||||||
Carrying value of OREO sold | -1,588 | -3,355 | -4,352 | ||||||||
Balance, end of year | $ | 4,246 | $ | 3,983 | $ | 6,958 | |||||
Schedule of Components of Net Expense of Other Real Estate [Table Text Block] | ' | ||||||||||
The following table presents the components of net expense of OREO for the years ended December 31, 2013, 2012 and 2011: | |||||||||||
For the Years Ended December 31, | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Insurance | $ | 147 | $ | 65 | $ | 58 | |||||
Legal fees | 131 | 66 | 235 | ||||||||
Maintenance | 82 | 147 | 63 | ||||||||
(Income) losses from the operation of foreclosed properties | -27 | 24 | 22 | ||||||||
Professional Fees | 35 | 211 | 250 | ||||||||
Real estate taxes | 122 | 287 | 724 | ||||||||
Utilities | 6 | 21 | 48 | ||||||||
Impairment charges | 223 | 1,206 | 2,318 | ||||||||
Other | - | - | 2 | ||||||||
Total | $ | 719 | $ | 2,027 | $ | 3,720 | |||||
BANK_PREMISES_AND_EQUIPMENT_Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
BANK PREMISES AND EQUIPMENT | ' | |||||||
Schedule of Property, Plant and Equipment Components [Table Text Block] | ' | |||||||
The following table summarizes bank premises and equipment at December 31, 2013 and 2012: | ||||||||
December 31, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
Land | $ | 4,191 | $ | 6,779 | ||||
Buildings and improvements | 10,126 | 10,612 | ||||||
Furniture, fixtures and equipment | 12,575 | 12,106 | ||||||
Leasehold improvements | 4,953 | 4,689 | ||||||
Total | 31,845 | 34,186 | ||||||
Accumulated depreciation | -16,482 | -15,249 | ||||||
Net | $ | 15,363 | $ | 18,937 | ||||
SERVICING_Tables
SERVICING (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Servicing Loans [Abstract] | ' | |||||||
Schedule of Servicing Assets at Amortized Value [Table Text Block] | ' | |||||||
The following table summarizes the activity pertaining to mortgage servicing rights for the years ended December 31, 2013 and 2012: | ||||||||
For the Year Ended December 31, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
Balance, beginning of year | $ | 675 | $ | 777 | ||||
Mortgage servicing rights capitalized | 119 | 220 | ||||||
Amortization | -265 | -322 | ||||||
Balance, end of year | $ | 529 | $ | 675 | ||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
INTANGIBLE ASSETS | ' | |||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | ' | |||||||
The following table summarizes core deposit intangible assets at December 31, 2013 and 2012: | ||||||||
December 31, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
Gross carrying amount | $ | 1,650 | $ | 1,650 | ||||
Accumulated amortization | -1,183 | -1,018 | ||||||
Net carrying amount | $ | 467 | $ | 632 | ||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Deposits [Abstract] | ' | ||||||||||
Schedule of Deposits [Table Text Block] | ' | ||||||||||
The following table summarizes deposits at December 31, 2013 and 2012: | |||||||||||
December 31, | |||||||||||
(in thousands) | 2013 | 2012 | |||||||||
Demand (non-interest bearing) | $ | 157,550 | $ | 131,476 | |||||||
Interest-bearing: | |||||||||||
Interest-bearing demand | 334,742 | 321,863 | |||||||||
Savings | 87,806 | 83,101 | |||||||||
Time ($100,000 and over) | 161,959 | 144,844 | |||||||||
Other time | 142,641 | 173,329 | |||||||||
Total interest-bearing | 727,148 | 723,137 | |||||||||
Total deposits | $ | 884,698 | $ | 854,613 | |||||||
Schedule of maturities of time deposits including certificates of deposit and Individual Retirement Accounts | ' | ||||||||||
The following table summarizes scheduled maturities of time deposits, including certificates of deposit and individual retirement accounts, at December 31, 2013: | |||||||||||
Time Deposits | |||||||||||
$100,000 | Other | ||||||||||
(in thousands) | and Over | Time Deposits | Total | ||||||||
2014 | $ | 99,990 | $ | 76,997 | $ | 176,987 | |||||
2015 | 48,950 | 36,483 | 85,433 | ||||||||
2016 | 9,970 | 16,491 | 26,461 | ||||||||
2017 | 1,123 | 5,923 | 7,046 | ||||||||
2018 | 1,760 | 6,211 | 7,971 | ||||||||
2019 and thereafter | 166 | 536 | 702 | ||||||||
Total | $ | 161,959 | $ | 142,641 | $ | 304,600 | |||||
BORROWED_FUNDS_Tables
BORROWED FUNDS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
BORROWED FUNDS | ' | |||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
The following table summarizes the components of borrowed funds at December 31, 2013 and 2012: | ||||||||
December 31, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
FHLB advances | $ | 27,123 | $ | 18,593 | ||||
Subordinated debentures | 25,000 | 25,000 | ||||||
Junior subordinated debentures | 10,310 | 10,310 | ||||||
Total | $ | 62,433 | $ | 53,903 | ||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||||
The following table presents borrowed funds by their maturity dates at December 31, 2013: | ||||||||
December 31, 2013 | ||||||||
(in thousands) | Amount | Weighted | ||||||
Average | ||||||||
Interest Rate | ||||||||
Within one year | $ | 10,000 | 1.92 | % | ||||
After one year but within two years | 10,000 | 4.76 | % | |||||
After two years but within three years | 5,000 | 9 | % | |||||
After three years but within four years | 10,000 | 4.92 | % | |||||
After four years but within five years | 10,000 | 5.02 | % | |||||
After five years | 17,433 | 4.19 | % | |||||
Total | $ | 62,433 | 4.55 | % | ||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of reconciliation of provision (benefit) for income taxes from statutory tax rates to domestic federal statutory tax rates | ' | ||||||||||
The following table presents a reconciliation between the effective income tax expense (benefit) and the income tax expense (benefit) that would have been provided at the federal statutory tax rate of 34.0% for each of the years ended December 31, 2013, 2012 and 2011: | |||||||||||
Year Ended December 31, | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Provision (benefit) at statutory tax rates | $ | 2,170 | $ | -4,662 | $ | -114 | |||||
Add (deduct): | |||||||||||
Tax effects of non-taxable income | -1,574 | -1,824 | -2,288 | ||||||||
Non-deductible interest expense | 37 | 65 | 98 | ||||||||
Bank-owned life insurance | -240 | -235 | -268 | ||||||||
Change in valuation allowance | -347 | 6,637 | 2,568 | ||||||||
Other items, net | -46 | 19 | 4 | ||||||||
Provision for income taxes | $ | - | $ | - | $ | - | |||||
Schedule of components of net deferred tax assets (liabilities) included in other assets (liabilities) | ' | ||||||||||
The following table summarizes the components of the net deferred tax asset included in other assets at December 31, 2013, and the net deferred tax liability included in other liabilities at December 31, 2012: | |||||||||||
December 31, | |||||||||||
(in thousands) | 2013 | 2012 | |||||||||
Allowance for loan and lease losses | $ | 4,954 | $ | 6,603 | |||||||
Deferred compensation | 2,468 | 2,517 | |||||||||
Unrealized holding losses on securities available-for-sale | 1,592 | - | |||||||||
Other real estate owned valuation | 513 | 932 | |||||||||
Deferred intangible assets | 1,504 | 1,602 | |||||||||
Employee benefits | 91 | 41 | |||||||||
Accrued interest | 2,824 | 1,441 | |||||||||
AMT tax credits | 2,278 | 2,215 | |||||||||
Fixed asset valuation | - | 407 | |||||||||
Charitable contribution carryover | 399 | 312 | |||||||||
Accrued rent expense | 204 | 213 | |||||||||
Accrued vacation | 56 | 51 | |||||||||
Accrued real estate taxes | - | 14 | |||||||||
Accrued legal settlement costs | 850 | - | |||||||||
Deferred income | 33 | - | |||||||||
Net operating loss carryover | 18,616 | 18,422 | |||||||||
Gross deferred tax assets | 36,382 | 34,770 | |||||||||
Deferred loan origination fees | -338 | -34 | |||||||||
Unrealized holding gains on securities available-for-sale | - | -3,451 | |||||||||
Prepaid expenses | -56 | - | |||||||||
Depreciation | -261 | -254 | |||||||||
Gross deferred tax liabilities | -655 | -3,739 | |||||||||
Net deferred asset before valuation allowance | 35,727 | 31,031 | |||||||||
Valuation allowance | -34,135 | -34,482 | |||||||||
Net deferred tax assets (liabilities) | $ | 1,592 | $ | -3,451 | |||||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
RELATED PARTY TRANSACTIONS | ' | |||||||
Summary of changes in the total amounts of outstanding loans, advances under lines of credit as well as repayments granted to directors, executive officers and their related parties | ' | |||||||
The following table summarizes the changes in the total amounts of such outstanding loans, advances under lines of credit as well as repayments during the years ended December 31, 2013 and 2012: | ||||||||
Year Ended December 31, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
Balance January 1, | $ | 33,296 | $ | 87,442 | ||||
New loans and advances | 50,260 | 64,509 | ||||||
Repayments | -50,794 | -118,655 | ||||||
Other (1) | -256 | - | ||||||
Balance December 31, | $ | 32,506 | $ | 33,296 | ||||
(1) Other represents loans to related parties that ceased being related parties during the year | ||||||||
COMMITMENTS_CONTINGENCIES_AND_1
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS | ' | ||||||||||||
Schedule of minimum future obligations under non-cancelable leases | ' | ||||||||||||
At December 31, 2013, the Company was obligated under certain non-cancelable leases with initial or remaining terms of one year or more. Minimum future obligations under non-cancelable leases in effect at December 31, 2013 are as follows: | |||||||||||||
Minimum Future Lease Payments | |||||||||||||
December 31, 2013 | |||||||||||||
(in thousands) | Facilities | Equipment | Total | ||||||||||
2014 | $ | 604 | $ | 54 | $ | 658 | |||||||
2015 | 316 | 21 | 337 | ||||||||||
2016 | 281 | - | 281 | ||||||||||
2017 | 243 | - | 243 | ||||||||||
2018 | 172 | - | 172 | ||||||||||
2019 and thereafter | 449 | - | 449 | ||||||||||
Total | $ | 2,065 | $ | 75 | $ | 2,140 | |||||||
Schedule of Fair Value, Off-balance Sheet Risks | ' | ||||||||||||
December 31, | |||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||
Commitments to extend credit | $ | 155,701 | $ | 166,722 | |||||||||
Standby letters of credit | 25,321 | 35,277 | |||||||||||
Schedule of bank's loan portfolio concentrations | ' | ||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||
(dollars in thousands) | Amount | % of gross | Amount | % of gross | |||||||||
loans | loans | ||||||||||||
Automobile dealers | $ | 18,467 | 2.87 | % | $ | 10,607 | 1.77 | % | |||||
Land subdivision | 15,974 | 2.48 | % | 17,658 | 2.95 | % | |||||||
Physicians | 13,932 | 2.17 | % | 9,269 | 1.55 | % | |||||||
Colleges and universities | 12,671 | 1.97 | % | 4,879 | 0.82 | % | |||||||
Solid waste landfills | 12,254 | 1.9 | % | 13,233 | 2.21 | % | |||||||
Hotels | 9,847 | 1.53 | % | 13,596 | 2.27 | % | |||||||
Office complexes/units | 9,636 | 1.5 | % | 9,801 | 1.64 | % | |||||||
Shopping centers/complexes | 8,083 | 1.26 | % | 21,068 | 3.52 | % | |||||||
STOCK_COMPENSATION_PLANS_Table
STOCK COMPENSATION PLANS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
STOCK COMPENSATION PLANS | ' | ||||||||||||||||
Schedule of the status of stock option plans | ' | ||||||||||||||||
A summary of the status of the Company’s stock option plans is presented below: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||
Average | Average | Average | |||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||
Shares | Price | Shares | Price | Shares | Price | ||||||||||||
Outstanding at the beginning of the year | 129,170 | $ | 14.26 | 188,193 | 12.62 | 222,616 | 12.58 | ||||||||||
Granted | - | - | - | - | - | - | |||||||||||
Exercised | - | - | - | - | - | - | |||||||||||
Forfeited | -46,572 | 11.22 | -59,023 | 9.03 | -34,423 | 12.37 | |||||||||||
Outstanding at the end of the year | 82,598 | $ | 15.98 | 129,170 | $ | 14.26 | 188,193 | $ | 12.62 | ||||||||
Options exercisable at year end | 82,598 | $ | 15.98 | 129,170 | $ | 14.26 | 188,193 | $ | 12.62 | ||||||||
Weighted average fair value of options granted during the year | $ | - | $ | - | $ | - | |||||||||||
Stock-based compensation expense | $ | - | $ | - | $ | - | |||||||||||
Schedule of information pertaining to options outstanding | ' | ||||||||||||||||
Information pertaining to options outstanding at December 31, 2013 is as follows: | |||||||||||||||||
Options Outstanding | Options Excercisable | ||||||||||||||||
Weighted | |||||||||||||||||
Average | Weighted | Weighted | |||||||||||||||
Remaining | Average | Average | |||||||||||||||
Number | Contractual | Exercise | Number | Exercise | |||||||||||||
Range of Exercise Price | Outstanding | Life | Price | Exercisable | Price | ||||||||||||
$10.81 - $23.13 | 82,598 | 3.5 | $ | 15.98 | 82,598 | $ | 15.98 | ||||||||||
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
REGULATORY MATTERS | ' | ||||||||||||||||||
Schedule of Risk Based Capital and Risk Weighted Assets under Banking Regulations [Table Text Block] | ' | ||||||||||||||||||
The Company’s and the Bank’s actual capital positions and ratios as of December 31, 2013, 2012 and 2011 are presented in the following table: | |||||||||||||||||||
December 31, | |||||||||||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||
Company | |||||||||||||||||||
Tier I capital: | |||||||||||||||||||
Total tier I capital | $ | 46,165 | $ | 39,587 | $ | 53,059 | |||||||||||||
Tier II capital: | |||||||||||||||||||
Subordinated notes | 23,085 | 19,796 | 25,000 | ||||||||||||||||
Allowable portion of allowance for loan losses | 8,462 | 8,452 | 9,823 | ||||||||||||||||
Total tier II capital | 31,547 | 28,248 | 34,823 | ||||||||||||||||
Total risk-based capital | 77,712 | 67,835 | 87,882 | ||||||||||||||||
Total risk-weighted assets | $ | 670,894 | $ | 665,323 | $ | 774,452 | |||||||||||||
Bank | |||||||||||||||||||
Tier I capital: | |||||||||||||||||||
Total tier I capital | $ | 81,581 | $ | 69,963 | $ | 80,976 | |||||||||||||
Tier II capital: | |||||||||||||||||||
Allowable portion of allowance for loan losses | 8,456 | 8,447 | 9,819 | ||||||||||||||||
Total tier II capital | 8,456 | 8,447 | 9,819 | ||||||||||||||||
Total risk-based capital | 90,037 | 78,410 | 90,795 | ||||||||||||||||
Total risk-weighted assets | $ | 670,416 | $ | 664,914 | $ | 774,097 | |||||||||||||
Schedule of risk-based capital and select other capital ratios | ' | ||||||||||||||||||
The following schedules present information regarding the Company’s risk-based capital at December 31, 2013 and 2012, and selected other capital ratios: | |||||||||||||||||||
To Be Well | |||||||||||||||||||
Capitalized | |||||||||||||||||||
Under Prompt | |||||||||||||||||||
For Capital | Corrective | ||||||||||||||||||
Actual | Adequacy Purposes | Action Provision | |||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||
31-Dec-13 | |||||||||||||||||||
Total capital | |||||||||||||||||||
(to risk-weighted assets) | |||||||||||||||||||
Company | $ | 77,712 | 11.58 | % | $ | >53,672 | >8.00 | % | N/A | N/A | |||||||||
Bank | $ | 90,037 | 13.43 | % | $ | >53,633 | >8.00 | % | $ | >67,042 | >10.00 | % | |||||||
Tier I capital | |||||||||||||||||||
(to risk-weighted assets) | |||||||||||||||||||
Company | $ | 46,165 | 6.88 | % | $ | >26,836 | >4.00 | % | N/A | N/A | |||||||||
Bank | $ | 81,581 | 12.17 | % | $ | >26,817 | >4.00 | % | $ | >40,225 | >6.00 | % | |||||||
Tier I capital | |||||||||||||||||||
(to average assets) | |||||||||||||||||||
Company | $ | 46,165 | 4.71 | % | $ | >39,230 | >4.00 | % | N/A | N/A | |||||||||
Bank | $ | 81,581 | 8.32 | % | $ | >39,230 | >4.00 | % | $ | >49,038 | >5.00 | % | |||||||
To Be Well | |||||||||||||||||||
Capitalized | |||||||||||||||||||
Under Prompt | |||||||||||||||||||
For Capital | Corrective | ||||||||||||||||||
Actual | Adequacy Purposes | Action Provision | |||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||
31-Dec-12 | |||||||||||||||||||
Total capital | |||||||||||||||||||
(to risk-weighted assets) | |||||||||||||||||||
Company | $ | 67,835 | 10.2 | % | $ | >53,226 | >8.00 | % | N/A | N/A | |||||||||
Bank | $ | 78,410 | 11.79 | % | $ | >53,193 | >8.00 | % | $ | >66,491 | >10.00 | % | |||||||
Tier I capital | |||||||||||||||||||
(to risk-weighted assets) | |||||||||||||||||||
Company | $ | 39,587 | 5.95 | % | $ | >26,613 | >4.00 | % | N/A | N/A | |||||||||
Bank | $ | 69,963 | 10.52 | % | $ | >26,597 | >4.00 | % | $ | >39,895 | >6.00 | % | |||||||
Tier I capital | |||||||||||||||||||
(to average assets) | |||||||||||||||||||
Company | $ | 39,587 | 4.07 | % | $ | >38,879 | >4.00 | % | N/A | N/A | |||||||||
Bank | $ | 69,963 | 7.2 | % | $ | >38,865 | >4.00 | % | $ | >48,581 | >5.00 | % | |||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
Schedule of financial asset amounts that are carried at fair value and measured at fair value on a recurring basis and the fair value hierarchy of the valuation techniques utilized by the entity to determine the fair value | ' | |||||||||||||||
The following tables detail the financial asset amounts that are carried at fair value and measured at fair value on a recurring basis at December 31, 2013 and 2012, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: | ||||||||||||||||
Fair value measurements at December 31, 2013 | ||||||||||||||||
Significant | ||||||||||||||||
Quoted prices | other | Significant | ||||||||||||||
in active markets | observable | unobservable | ||||||||||||||
for identical | inputs | inputs | ||||||||||||||
(in thousands) | Fair value | assets (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 78,054 | $ | - | $ | 77,483 | $ | 571 | ||||||||
Government-sponsored agency: | ||||||||||||||||
Collateralized mortgage obligations | 34,799 | - | 34,799 | - | ||||||||||||
Residential mortgage-backed securities | 89,656 | - | 89,656 | - | ||||||||||||
Corporate debt securities | 407 | - | 407 | - | ||||||||||||
Equity securities | 951 | 951 | - | - | ||||||||||||
Total securities available-for-sale | $ | 203,867 | $ | 951 | $ | 202,345 | $ | 571 | ||||||||
Fair value measurements at December 31, 2012 | ||||||||||||||||
Significant | ||||||||||||||||
Quoted prices | other | Significant | ||||||||||||||
in active markets | observable | unobservable | ||||||||||||||
for identical | inputs | inputs | ||||||||||||||
(in thousands) | Fair value | assets (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Obligations of U.S. government agencies | $ | 1,891 | $ | - | $ | 1,891 | $ | - | ||||||||
Obligations of state and political subdivisions | 103,501 | - | 101,762 | 1,739 | ||||||||||||
Government-sponsored agency: | ||||||||||||||||
Collateralized mortgage obligations | 9,103 | - | 9,103 | - | ||||||||||||
Residential mortgage-backed securities | 69,456 | - | 69,456 | - | ||||||||||||
Corporate debt securities | 410 | - | 410 | - | ||||||||||||
Equity securities | 1,000 | 1,000 | - | - | ||||||||||||
Total securities available-for-sale | $ | 185,361 | $ | 1,000 | $ | 182,622 | $ | 1,739 | ||||||||
Schedule of reconciliation and statement of operations classifications of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ' | |||||||||||||||
The table below presents reconciliation and statement of operations classifications of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012: | ||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||
(in thousands) | PreTSLs | State and | Private Label | Total | ||||||||||||
Political | CMOs | |||||||||||||||
Subdivisions | ||||||||||||||||
Balance at December 31, 2011 | $ | 3,801 | $ | 2,811 | $ | 36,256 | $ | 42,868 | ||||||||
Amortization | - | - | -395 | -395 | ||||||||||||
Accretion | - | - | 101 | 101 | ||||||||||||
Purchases | - | - | 14,691 | 14,691 | ||||||||||||
Paydowns | -172 | -550 | -13,478 | -14,200 | ||||||||||||
Sales and calls | -3,629 | -585 | -37,175 | -41,389 | ||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||
Included in earnings | - | - | - | - | ||||||||||||
Included in other comprehensive income | - | 63 | - | 63 | ||||||||||||
Balance at December 31, 2012 | $ | - | $ | 1,739 | $ | - | $ | 1,739 | ||||||||
Amortization | - | - | - | - | ||||||||||||
Accretion | - | - | - | - | ||||||||||||
Purchases | - | - | - | - | ||||||||||||
Paydowns | - | -570 | - | -570 | ||||||||||||
Sales and calls | - | -622 | - | -622 | ||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||
Included in earnings | - | 2 | - | 2 | ||||||||||||
Included in other comprehensive income | - | 22 | - | 22 | ||||||||||||
Balance at December 30, 2013 | $ | - | $ | 571 | $ | - | $ | 571 | ||||||||
Schedule of assets measured at fair value on a non-recurring basis | ' | |||||||||||||||
Assets measured at fair value on a non-recurring basis are summarized below: | ||||||||||||||||
Fair value measurements at December 31, 2013 | ||||||||||||||||
Significant | Significant | |||||||||||||||
Quoted prices | other | other | ||||||||||||||
in active markets | observable | unobservable | ||||||||||||||
for identical | inputs | inputs | ||||||||||||||
(in thousands) | Fair value (1) | assets (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Collateral-dependent impaired loans | $ | 5,229 | $ | - | $ | - | $ | 5,229 | ||||||||
Other real estate owned | $ | 3,931 | $ | - | $ | - | $ | 3,931 | ||||||||
Fair value measurements at December 31, 2012 | ||||||||||||||||
Significant | Significant | |||||||||||||||
Quoted prices | other | other | ||||||||||||||
in active markets | observable | unobservable | ||||||||||||||
for identical | inputs | inputs | ||||||||||||||
(in thousands) | Fair value (1) | assets (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Collateral-dependent impaired loans | $ | 7,816 | $ | - | $ | - | $ | 7,816 | ||||||||
Other real estate owned | $ | 2,455 | $ | - | $ | - | $ | 2,455 | ||||||||
1) | Represents carrying value and related write-downs for which adjustments are based on appraised value. Management makes adjustments to the appraised values as necessary to consider declines in real estate values since the time of the appraisal. Such adjustments are based on management’s knowledge of the local real estate markets. | |||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | |||||||||||||||
The following table summarizes the estimated fair values of the Company’s financial instruments at December 31, 2013 and 2012: | ||||||||||||||||
Fair Value | December 31, 2013 | December 31, 2012 | ||||||||||||||
(in thousands) | Measurement | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Financial assets | ||||||||||||||||
Cash and short term investments | Level 1 | $ | 103,556 | $ | 103,556 | $ | 115,271 | $ | 115,271 | |||||||
Securities available for sale | See previous table | 203,867 | 203,867 | 185,361 | 185,361 | |||||||||||
Securities held to maturity | Level 2 | 2,308 | 2,424 | 2,198 | 2,483 | |||||||||||
FHLB and FRB Stock | Level 2 | 3,496 | 3,496 | 7,308 | 7,308 | |||||||||||
Loans held for sale | Level 2 | 820 | 820 | 1,615 | 1,615 | |||||||||||
Loans, net | Level 3 | 629,880 | 632,536 | 579,396 | 592,504 | |||||||||||
Accrued interest receivable | Level 2 | 2,191 | 2,191 | 2,199 | 2,199 | |||||||||||
Mortgage servicing rights | Level 3 | 529 | 990 | 675 | 884 | |||||||||||
Financial liabilities | ||||||||||||||||
Deposits | Level 2 | 884,698 | 887,056 | 854,613 | 858,970 | |||||||||||
Borrowed funds | Level 2 | 62,433 | 65,642 | 53,903 | 59,021 | |||||||||||
Accrued interest payable | Level 2 | 8,732 | 8,732 | 6,427 | 6,427 | |||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
Tabular disclosure of calculation of both basic and diluted earnings per common share | ' | ||||||||||
The following table shows the calculation of both basic and diluted earnings per common share for the years ended December 31, 2013, 2012 and 2011: | |||||||||||
Year Ended December 31, | |||||||||||
(in thousands, except share data) | 2013 | 2012 | 2011 | ||||||||
Net income (loss) | $ | 6,382 | $ | -13,711 | $ | -335 | |||||
Basic weighted-average number of common shares outstanding | 16,458,353 | 16,442,160 | 16,439,508 | ||||||||
Plus: common share equivalents | - | - | - | ||||||||
Diluted weighted-average number of common shares outstanding | 16,458,353 | 16,442,160 | 16,439,508 | ||||||||
Loss per common share: | |||||||||||
Basic | $ | 0.39 | $ | -0.83 | $ | -0.02 | |||||
Diluted | $ | 0.39 | $ | -0.83 | $ | -0.02 | |||||
OTHER_COMPREHENSIVE_INCOME_Tab
OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Equity [Abstract] | ' | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | ||||||||||
The following tables summarize the reclassifications out of accumulated other comprehensive income (loss), which is comprised entirely of unrealized gains and losses on available-for-sale securities, for each of the years ended December 31, 2013 and 2012: | |||||||||||
2013 | |||||||||||
Amount Reclassified | |||||||||||
from Accumulated | Affected Line Item | ||||||||||
Other Comprehensive | in the Consolidated | ||||||||||
(in thousands) | Income | Statements of Operations | |||||||||
Available-for-sale securities: | |||||||||||
Reclassification adjustment for net (gains) losses reclassified into net income | $ | -2,887 | Net gain on sale of securities | ||||||||
Taxes | 982 | Income taxes | |||||||||
Net of tax amount | $ | -1,905 | |||||||||
2012 | |||||||||||
Amount Reclassified | |||||||||||
from Accumulated | Affected Line Item | ||||||||||
Other Comprehensive | in the Consolidated | ||||||||||
(in thousands) | Income | Statements of Operations | |||||||||
Available-for-sale securities: | |||||||||||
Reclassification adjustment for net (gains) losses reclassified into net income | $ | 1,808 | Net loss on sale of securities | ||||||||
Taxes | -614 | Income taxes | |||||||||
Net of tax amount | $ | 1,194 | |||||||||
2011 | |||||||||||
Amount Reclassified | |||||||||||
from Accumulated | Affected Line Item | ||||||||||
Other Comprehensive | in the Consolidated | ||||||||||
(in thousands) | Income | Statements of Operations | |||||||||
Available-for-sale securities: | |||||||||||
Reclassification adjustment for net (gains) losses reclassified into net income | $ | -4,316 | Net gain on sale of securities | ||||||||
Taxes | 1,467 | Income taxes | |||||||||
Net of tax amount | $ | -2,849 | |||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||
The following table summarizes the changes in accumulated other comprehensive (loss) income, net of tax: | |||||||||||
Year Ended | |||||||||||
December 31, | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Beginning balance | $ | 6,698 | $ | -3,967 | $ | -12,143 | |||||
Other comprehensive (loss) income before reclassifications | -7,885 | 9,471 | 9,933 | ||||||||
Noncredit-related gains on OTTI securities not expected to be sold | - | - | 1,092 | ||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | -1,905 | 1,194 | -2,849 | ||||||||
Net other comprehensive (loss) income during the period | -9,790 | 10,665 | 8,176 | ||||||||
Ending balance | $ | -3,092 | $ | 6,698 | $ | -3,967 | |||||
CONDENSED_FINANCIAL_INFORMATIO1
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY (Tables) (Parent company) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Parent company | ' | ||||||||||
Condensed financial statements | ' | ||||||||||
Schedule of Condensed Statements of Condition | ' | ||||||||||
Condensed Statements of Condition | |||||||||||
December 31, | |||||||||||
(in thousands) | 2013 | 2012 | |||||||||
Assets | |||||||||||
Cash | $ | 254 | $ | 355 | |||||||
Investment in statutory trust | 364 | 358 | |||||||||
Investment in subsidiary (equity method) | 78,995 | 77,301 | |||||||||
Other assets | 107 | 46 | |||||||||
Total assets | $ | 79,720 | $ | 78,060 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Junior subordinated debentures | $ | 10,310 | $ | 10,310 | |||||||
Subordinated debentures | 25,000 | 25,000 | |||||||||
Accrued interest payable | 8,307 | 5,822 | |||||||||
Other liabilities | 2,525 | 3 | |||||||||
Shareholders’ equity | 33,578 | 36,925 | |||||||||
Total liabilities and shareholders’ equity | $ | 79,720 | $ | 78,060 | |||||||
Schedule of Condensed Statements of Operations | ' | ||||||||||
Condensed Statements of Operations | |||||||||||
Year Ended December 31, | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Income | |||||||||||
Equity in undistributed income (loss) of subsidiary | $ | 11,484 | $ | -11,206 | $ | 2,248 | |||||
Equity in trust | 6 | 7 | 4 | ||||||||
Total income (loss) | 11,490 | -11,199 | 2,252 | ||||||||
Expense | 5,108 | 2,512 | 2,587 | ||||||||
Net income (loss) | $ | 6,382 | $ | -13,711 | $ | -335 | |||||
Schedule of Condensed Statements of Cash Flows | ' | ||||||||||
Condensed Statements of Cash Flows | |||||||||||
For the Year Ended | |||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 6,382 | $ | -13,711 | $ | -335 | |||||
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | |||||||||||
Equity in undistributed (income) loss of subsidiary | -11,484 | 11,206 | -2,248 | ||||||||
Equity in trust | -6 | -7 | -4 | ||||||||
Increase in accrued interest payable | 2,485 | 2,512 | 2,486 | ||||||||
Increase in other liabilities | 2,522 | 2 | - | ||||||||
Net cash (used in) provided by operating activities | -101 | 2 | -101 | ||||||||
Cash flows from investing activities: | |||||||||||
Investment in capital of subsidiary | - | - | -3,000 | ||||||||
Net cash used in investing activities | - | - | -3,000 | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common stock, net of stock issuance costs | - | - | 29 | ||||||||
Net cash provided by financing activities | - | - | 29 | ||||||||
(Decrease) increase in cash | -101 | 2 | -3,072 | ||||||||
Cash at beginning of year | 355 | 353 | 3,425 | ||||||||
Cash at end of year | $ | 254 | $ | 355 | $ | 353 | |||||
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | |||||||||||||
Schedule of quarterly financial data | ' | |||||||||||||
Quarter Ending | ||||||||||||||
2013 | ||||||||||||||
(in thousands, except share data) | March 31, | June 30, | September 30, | December 31, | ||||||||||
Interest income | $ | 8,210 | $ | 8,167 | $ | 8,189 | $ | 8,387 | ||||||
Interest expense | 1,857 | 1,818 | 1,812 | 1,689 | ||||||||||
Net interest income | 6,353 | 6,349 | 6,377 | 6,698 | ||||||||||
Credit for loan and lease losses | -1,224 | -2 | -1,159 | -3,885 | ||||||||||
Net interest income after credit for loan and lease losses | 7,577 | 6,351 | 7,536 | 10,583 | ||||||||||
Non-interest income | 2,459 | 2,281 | 2,415 | 2,128 | ||||||||||
Non-interest expense | 8,305 | 7,912 | 8,064 | 10,667 | ||||||||||
Income before taxes | 1,731 | 720 | 1,887 | 2,044 | ||||||||||
Provision for income taxes | - | - | - | - | ||||||||||
Net income | $ | 1,731 | $ | 720 | $ | 1,887 | $ | 2,044 | ||||||
Income per share: | ||||||||||||||
Basic | $ | 0.11 | $ | 0.04 | $ | 0.11 | $ | 0.13 | ||||||
Diluted | $ | 0.11 | $ | 0.04 | $ | 0.11 | $ | 0.13 | ||||||
Quarter Ending | ||||||||||||||
2012 | ||||||||||||||
(in thousands, except share data) | March 31, | June 30, | September 30, | December 31, | ||||||||||
Interest income | $ | 9,744 | $ | 9,424 | $ | 8,985 | $ | 8,874 | ||||||
Interest expense | 2,573 | 2,343 | 2,206 | 2,096 | ||||||||||
Net interest income | 7,171 | 7,081 | 6,779 | 6,778 | ||||||||||
Provision (credit) for loan and lease losses | -136 | -280 | 3,792 | 689 | ||||||||||
Net interest income after provision (credit) for loan and lease losses | 7,307 | 7,361 | 2,987 | 6,089 | ||||||||||
Non-interest income | 1,450 | 1,544 | 1,659 | -370 | ||||||||||
Non-interest expense | 9,922 | 9,872 | 11,167 | 10,777 | ||||||||||
Loss before taxes | -1,165 | -967 | -6,521 | -5,058 | ||||||||||
Provision for income taxes | - | - | - | - | ||||||||||
Net loss | $ | -1,165 | $ | -967 | $ | -6,521 | $ | -5,058 | ||||||
Loss per share: | ||||||||||||||
Basic | $ | -0.07 | $ | -0.06 | $ | -0.4 | $ | -0.3 | ||||||
Diluted | $ | -0.07 | $ | -0.06 | $ | -0.4 | $ | -0.3 | ||||||
Organization_Details
Organization (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Number | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' |
Number of Banking Locations | 21 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
RESTRICTED CASH BALANCES | ' | ' | ' |
Period in which Federal Funds are Purchased and Sold | '1 day | ' | ' |
Loans and Loan Fees | ' | ' | ' |
Financing Receivable Deferred Fees Estimated Amortization Term | '5 years | ' | ' |
Period Past Due for Classification of Loans to Non Accrual Status | '90 days | ' | ' |
Delinquency period under non-accrual status | '90 days | '90 days | ' |
Troubled Debt Restructurings | ' | ' | ' |
Financing Receivable Performance Period Under Loan Terms for Reclassification from Non Accrual Status | '6 months | ' | ' |
Loan Impairment | ' | ' | ' |
Outstanding Loans Balances that are Considered to be Within Homogeneous Pools and not Individually Evaluated for Impairment, Maximum | $100 | ' | ' |
Outstanding Loans Balances That Are Individually Evaluated For Impairment If That Loan Is Part Of Larger Impaired Loan Relationship | 100 | ' | ' |
Mortgage Banking Activities | ' | ' | ' |
Gain (Loss) on Sales of Loans, Net | 362 | 859 | 755 |
Loans Receivable Held-for-sale, Net | $820 | $1,615 | ' |
Building Improvements [Member] | Minimum [Member] | ' | ' | ' |
Bank Premises and Equipment | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | '10 | ' | ' |
Building Improvements [Member] | Maximum [Member] | ' | ' | ' |
Bank Premises and Equipment | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | '40 | ' | ' |
Furniture and Fixtures [Member] | Minimum [Member] | ' | ' | ' |
Bank Premises and Equipment | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | '3 | ' | ' |
Furniture and Fixtures [Member] | Maximum [Member] | ' | ' | ' |
Bank Premises and Equipment | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | '15 | ' | ' |
Leasehold Improvements [Member] | Minimum [Member] | ' | ' | ' |
Bank Premises and Equipment | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | '2 | ' | ' |
Leasehold Improvements [Member] | Maximum [Member] | ' | ' | ' |
Bank Premises and Equipment | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | '39 | ' | ' |
RESTRICTED_CASH_BALANCES_Detai
RESTRICTED CASH BALANCES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Cash Minimum Average Reserve Balance Requirement [Line Items] | ' | ' |
Average Reserves Maintained with Federal Reserve Bank | $1,400,000 | $1,400,000 |
Compensating Balances Maintained At Correspondent Banks | $379,000 | $378,000 |
SECURITIES_Details
SECURITIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-sale Securities | ' | ' |
Amortized cost | $208,552 | $175,213 |
Gross unrealized holding gains | 1,566 | 11,223 |
Gross unrealized holding losses | 6,251 | 1,075 |
Securities available for sale at fair value | 203,867 | 185,361 |
Held-to-maturity securities: | ' | ' |
Fair value | 2,424 | 2,483 |
Obligations of U.S. government agencies | ' | ' |
Available-for-sale Securities | ' | ' |
Amortized cost | ' | 1,821 |
Gross unrealized holding gains | ' | 70 |
Gross unrealized holding losses | ' | 0 |
Securities available for sale at fair value | ' | 1,891 |
State and Political Subdivisions [Member] | ' | ' |
Available-for-sale Securities | ' | ' |
Amortized cost | 79,488 | 95,312 |
Gross unrealized holding gains | 1,422 | 8,922 |
Gross unrealized holding losses | 2,856 | 733 |
Securities available for sale at fair value | 78,054 | 103,501 |
Held-to-maturity securities: | ' | ' |
Amortized Cost | 2,308 | 2,198 |
Gross unrealized holding gains | 116 | 285 |
Gross unrealized holding losses | 0 | 0 |
Fair value | 2,424 | 2,483 |
Collateralized mortgage obligations, Government sponsored agency | ' | ' |
Available-for-sale Securities | ' | ' |
Amortized cost | 35,906 | 8,805 |
Gross unrealized holding gains | 46 | 311 |
Gross unrealized holding losses | 1,153 | 13 |
Securities available for sale at fair value | 34,799 | 9,103 |
Residential mortgage-backed securities, Government sponsored agency | ' | ' |
Available-for-sale Securities | ' | ' |
Amortized cost | 91,648 | 67,765 |
Gross unrealized holding gains | 98 | 1,920 |
Gross unrealized holding losses | 2,090 | 229 |
Securities available for sale at fair value | 89,656 | 69,456 |
Corporate debt securities | ' | ' |
Available-for-sale Securities | ' | ' |
Amortized cost | 500 | 500 |
Gross unrealized holding gains | 0 | 0 |
Gross unrealized holding losses | 93 | 90 |
Securities available for sale at fair value | 407 | 410 |
Equity securities | ' | ' |
Available-for-sale Securities | ' | ' |
Amortized cost | 1,010 | 1,010 |
Gross unrealized holding gains | 0 | 0 |
Gross unrealized holding losses | 59 | 10 |
Securities available for sale at fair value | $951 | $1,000 |
SECURITIES_Details_1
SECURITIES (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amortized Cost, Available-for-sale | ' | ' |
One year or less | $595 | ' |
One year through five years | 0 | ' |
After five years through ten years | 21,195 | ' |
After ten years | 58,198 | ' |
Total | 207,542 | ' |
Fair Value, Available-for-sale | ' | ' |
One year or less | 571 | ' |
One year through five years | 0 | ' |
After five years through ten years | 21,274 | ' |
After ten years | 56,616 | ' |
Total | 202,916 | ' |
Amortized Cost, Held-to-maturity | ' | ' |
One year or less | 0 | ' |
One year through five years | 0 | ' |
After five years through ten years | 2,308 | ' |
After ten years | 0 | ' |
Total | 2,308 | 2,198 |
Fair Value, Held-to-maturity | ' | ' |
One year or less | 0 | ' |
One year through five years | 0 | ' |
After five years through ten years | 2,424 | ' |
After ten years | 0 | ' |
Total | 2,424 | 2,483 |
Collateralized mortgage obligations | ' | ' |
Amortized Cost, Available-for-sale | ' | ' |
Single Maturity | 35,906 | ' |
Fair Value, Available-for-sale | ' | ' |
Single maturity | 34,799 | ' |
Amortized Cost, Held-to-maturity | ' | ' |
Single Maturity | 0 | ' |
Fair Value, Held-to-maturity | ' | ' |
Single Maturity | 0 | ' |
Mortgage-backed securities | ' | ' |
Amortized Cost, Available-for-sale | ' | ' |
Single Maturity | 91,648 | ' |
Fair Value, Available-for-sale | ' | ' |
Single maturity | 89,656 | ' |
Amortized Cost, Held-to-maturity | ' | ' |
Single Maturity | 0 | ' |
Fair Value, Held-to-maturity | ' | ' |
Single Maturity | $0 | ' |
SECURITIES_Details_2
SECURITIES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investment Holdings [Line Items] | ' | ' |
Less than 12 Months, Fair Value | $144,564 | $24,023 |
Less than 12 Months, Unrealized Losses | 4,937 | 650 |
12 Months or Greater, Fair Value | 14,443 | 4,551 |
12 Months or Greater, Unrealized Losses | 1,314 | 425 |
Total, Fair Value | 159,007 | 28,574 |
Total, Gross Unrealized Losses | 6,251 | 1,075 |
State and Political Subdivisions [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 33,835 | 8,649 |
Less than 12 Months, Unrealized Losses | 1,837 | 398 |
12 Months or Greater, Fair Value | 4,756 | 4,139 |
12 Months or Greater, Unrealized Losses | 1,019 | 335 |
Total, Fair Value | 38,591 | 12,788 |
Total, Gross Unrealized Losses | 2,856 | 733 |
Collateralized mortgage obligations, Government sponsored agency | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 31,683 | 1,485 |
Less than 12 Months, Unrealized Losses | 1,139 | 13 |
12 Months or Greater, Fair Value | 833 | 2 |
12 Months or Greater, Unrealized Losses | 14 | 0 |
Total, Fair Value | 32,516 | 1,487 |
Total, Gross Unrealized Losses | 1,153 | 13 |
Residential mortgage-backed securities, Government sponsored agency | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 79,046 | 12,899 |
Less than 12 Months, Unrealized Losses | 1,961 | 229 |
12 Months or Greater, Fair Value | 7,506 | 0 |
12 Months or Greater, Unrealized Losses | 129 | 0 |
Total, Fair Value | 86,552 | 12,899 |
Total, Gross Unrealized Losses | 2,090 | 229 |
Corporate debt securities | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or Greater, Fair Value | 407 | 410 |
12 Months or Greater, Unrealized Losses | 93 | 90 |
Total, Fair Value | 407 | 410 |
Total, Gross Unrealized Losses | 93 | 90 |
Equity securities | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 0 | 990 |
Less than 12 Months, Unrealized Losses | 0 | 10 |
12 Months or Greater, Fair Value | 941 | 0 |
12 Months or Greater, Unrealized Losses | 59 | 0 |
Total, Fair Value | 941 | 990 |
Total, Gross Unrealized Losses | $59 | $10 |
SECURITIES_Details_3
SECURITIES (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Rollforward of Cumulative Credit Loss | ' | ' | ' |
Balance at the beginning of the period | $0 | $8,619 | $22,598 |
Additional credit losses on debt securities for which OTTI was previously recognized | 0 | 96 | 798 |
Balance at the end of the period | 0 | 0 | 8,619 |
Private Label CMOs | ' | ' | ' |
Rollforward of Cumulative Credit Loss | ' | ' | ' |
Less: Sale of securities for which OTTI was previously recognized | 0 | 0 | 0 |
PreTSLs | ' | ' | ' |
Rollforward of Cumulative Credit Loss | ' | ' | ' |
Less: Sale of securities for which OTTI was previously recognized | $0 | ($8,715) | ($14,777) |
SECURITIES_Details_Textual
SECURITIES (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Investment Holdings [Line Items] | ' | ' | ' |
Available-for-sale Securities Pledged as Collateral | $204,200,000 | $185,000,000 | ' |
Proceeds from Sale of Available-for-sale Securities | 53,787,000 | 46,099,000 | 122,640,000 |
Available-for-sale Securities, Gross Realized Gains | 3,300,000 | 1,400,000 | 5,100,000 |
Available-for-sale Securities, Gross Realized Losses | 408,000 | 3,100,000 | 2,000 |
Investments In Federal Home Loan Bank And Federal Reserve Bank Stock | $3,500,000 | $7,300,000 | ' |
LOANS_Details
LOANS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Loans | ' | ' | ' | ' |
Total loans, gross | $643,372 | $597,775 | $679,521 | ' |
Unearned income | -143 | -103 | ' | ' |
Net deferred loan fees and costs | 668 | 260 | ' | ' |
Allowance for loan and lease losses | -14,017 | -18,536 | -20,834 | -22,575 |
Loans, net | 629,880 | 579,396 | ' | ' |
State and Political Subdivisions [Member] | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans, gross | 39,875 | 33,978 | ' | ' |
Consumer [Member] | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans, gross | 118,645 | 109,783 | ' | ' |
Residential Real Estate [Member] | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans, gross | 114,925 | 90,228 | ' | ' |
Commercial Real Estate [Member] | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans, gross | 218,524 | 221,591 | ' | ' |
Construction Land Acquisition and Development [Member] | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans, gross | 24,382 | 32,502 | ' | ' |
Commercial and Industrial [Member] | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total loans, gross | $127,021 | $109,693 | ' | ' |
LOANS_Details_1
LOANS (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | $18,536 | ' | ' | ' | $20,834 | $18,536 | $20,834 | $22,575 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -1,904 | -8,301 | -6,680 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 3,655 | 1,938 | 4,416 |
(Credit) provision for loan and lease losses | -3,885 | -1,159 | -2 | -1,224 | 689 | 3,792 | -280 | -136 | -6,270 | 4,065 | 523 |
Ending balance | 14,017 | ' | ' | ' | 18,536 | ' | ' | ' | 14,017 | 18,536 | 20,834 |
Ending balance, individually evaluated for impairment | 310 | ' | ' | ' | 310 | ' | ' | ' | 310 | 310 | 701 |
Ending balance, collectively evaluated for impairment | 13,707 | ' | ' | ' | 18,226 | ' | ' | ' | 13,707 | 18,226 | 20,133 |
Loans receivable : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, individually evaluated for impairment | 9,233 | ' | ' | ' | 15,225 | ' | ' | ' | 9,233 | 15,225 | 23,703 |
Ending balance, collectively evaluated for impairment | 634,139 | ' | ' | ' | 582,550 | ' | ' | ' | 634,139 | 582,550 | 655,818 |
Ending balance | 643,372 | ' | ' | ' | 597,775 | ' | ' | ' | 643,372 | 597,775 | 679,521 |
Consumer Loan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 1,708 | ' | ' | ' | 1,526 | 1,708 | 1,526 | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -655 | -673 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 450 | 338 | ' |
(Credit) provision for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | 286 | 517 | ' |
Ending balance | 1,789 | ' | ' | ' | 1,708 | ' | ' | ' | 1,789 | 1,708 | ' |
Ending balance, individually evaluated for impairment | 1 | ' | ' | ' | 0 | ' | ' | ' | 1 | 0 | ' |
Ending balance, collectively evaluated for impairment | 1,788 | ' | ' | ' | 1,708 | ' | ' | ' | 1,788 | 1,708 | ' |
Loans receivable : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, individually evaluated for impairment | 316 | ' | ' | ' | 0 | ' | ' | ' | 316 | 0 | ' |
Ending balance, collectively evaluated for impairment | 118,329 | ' | ' | ' | 109,783 | ' | ' | ' | 118,329 | 109,783 | ' |
Ending balance | 118,645 | ' | ' | ' | 109,783 | ' | ' | ' | 118,645 | 109,783 | ' |
Consumer Indirect Auto Loan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 597 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -530 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 219 |
(Credit) provision for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 516 |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 802 |
Ending balance, individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Ending balance, collectively evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 802 |
Loans receivable : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Ending balance, collectively evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63,722 |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63,722 |
Consumer Installment HELOC Loan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 576 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -209 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 |
(Credit) provision for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350 |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 724 |
Ending balance, individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Ending balance, collectively evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 724 |
Loans receivable : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31 |
Ending balance, collectively evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48,025 |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48,056 |
Residential Real Estate [Member] | Real Estate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 1,764 | ' | ' | ' | 1,823 | 1,764 | 1,823 | 2,176 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -664 | -683 | -1,273 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 343 | 35 | 57 |
(Credit) provision for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | 844 | 589 | 863 |
Ending balance | 2,287 | ' | ' | ' | 1,764 | ' | ' | ' | 2,287 | 1,764 | 1,823 |
Ending balance, individually evaluated for impairment | 12 | ' | ' | ' | 40 | ' | ' | ' | 12 | 40 | 65 |
Ending balance, collectively evaluated for impairment | 2,275 | ' | ' | ' | 1,724 | ' | ' | ' | 2,275 | 1,724 | 1,758 |
Loans receivable : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, individually evaluated for impairment | 1,985 | ' | ' | ' | 2,773 | ' | ' | ' | 1,985 | 2,773 | 3,615 |
Ending balance, collectively evaluated for impairment | 112,940 | ' | ' | ' | 87,455 | ' | ' | ' | 112,940 | 87,455 | 76,441 |
Ending balance | 114,925 | ' | ' | ' | 90,228 | ' | ' | ' | 114,925 | 90,228 | 80,056 |
Commercial Real Estate [Member] | Real Estate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 8,062 | ' | ' | ' | 11,151 | 8,062 | 11,151 | 9,640 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -65 | -3,298 | -2,395 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 879 | 1,035 | 93 |
(Credit) provision for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | -2,859 | -826 | 3,813 |
Ending balance | 6,017 | ' | ' | ' | 8,062 | ' | ' | ' | 6,017 | 8,062 | 11,151 |
Ending balance, individually evaluated for impairment | 296 | ' | ' | ' | 268 | ' | ' | ' | 296 | 268 | 545 |
Ending balance, collectively evaluated for impairment | 5,721 | ' | ' | ' | 7,794 | ' | ' | ' | 5,721 | 7,794 | 10,606 |
Loans receivable : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, individually evaluated for impairment | 6,626 | ' | ' | ' | 11,459 | ' | ' | ' | 6,626 | 11,459 | 13,012 |
Ending balance, collectively evaluated for impairment | 211,898 | ' | ' | ' | 210,132 | ' | ' | ' | 211,898 | 210,132 | 243,496 |
Ending balance | 218,524 | ' | ' | ' | 221,591 | ' | ' | ' | 218,524 | 221,591 | 256,508 |
Construction Land Acquisition and Development [Member] | Real Estate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 2,162 | ' | ' | ' | 2,590 | 2,162 | 2,590 | 4,170 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -179 | -258 | -1,857 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 130 | 265 | 2,188 |
(Credit) provision for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | -1,189 | -435 | -1,911 |
Ending balance | 924 | ' | ' | ' | 2,162 | ' | ' | ' | 924 | 2,162 | 2,590 |
Ending balance, individually evaluated for impairment | 1 | ' | ' | ' | 2 | ' | ' | ' | 1 | 2 | 91 |
Ending balance, collectively evaluated for impairment | 923 | ' | ' | ' | 2,160 | ' | ' | ' | 923 | 2,160 | 2,499 |
Loans receivable : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, individually evaluated for impairment | 306 | ' | ' | ' | 993 | ' | ' | ' | 306 | 993 | 2,979 |
Ending balance, collectively evaluated for impairment | 24,076 | ' | ' | ' | 31,509 | ' | ' | ' | 24,076 | 31,509 | 30,471 |
Ending balance | 24,382 | ' | ' | ' | 32,502 | ' | ' | ' | 24,382 | 32,502 | 33,450 |
Commercial and Industrial Loan Solid Waste Landfills [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
(Credit) provision for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 |
Ending balance, individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Ending balance, collectively evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 |
Loans receivable : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Ending balance, collectively evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,270 |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,270 |
Commercial and Industrial Loan Commercial and Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,839 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -416 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,852 |
(Credit) provision for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,999 |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,276 |
Ending balance, individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Ending balance, collectively evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,276 |
Loans receivable : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, individually evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,066 |
Ending balance, collectively evaluated for impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 127,897 |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 131,963 |
Commercial and Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 4,167 | ' | ' | ' | 3,292 | 4,167 | 3,292 | ' |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | -341 | -3,389 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 1,853 | 265 | ' |
(Credit) provision for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | -3,358 | 3,999 | ' |
Ending balance | 2,321 | ' | ' | ' | 4,167 | ' | ' | ' | 2,321 | 4,167 | ' |
Ending balance, individually evaluated for impairment | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' |
Ending balance, collectively evaluated for impairment | 2,321 | ' | ' | ' | 4,167 | ' | ' | ' | 2,321 | 4,167 | ' |
Loans receivable : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, individually evaluated for impairment | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' |
Ending balance, collectively evaluated for impairment | 127,021 | ' | ' | ' | 109,693 | ' | ' | ' | 127,021 | 109,693 | ' |
Ending balance | 127,021 | ' | ' | ' | 109,693 | ' | ' | ' | 127,021 | 109,693 | ' |
State and Political Subdivisions [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 673 | ' | ' | ' | 452 | 673 | 452 | 566 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
(Credit) provision for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 221 | -114 |
Ending balance | 679 | ' | ' | ' | 673 | ' | ' | ' | 679 | 673 | 452 |
Ending balance, individually evaluated for impairment | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 |
Ending balance, collectively evaluated for impairment | 679 | ' | ' | ' | 673 | ' | ' | ' | 679 | 673 | 452 |
Loans receivable : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, individually evaluated for impairment | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 |
Ending balance, collectively evaluated for impairment | 39,875 | ' | ' | ' | 33,978 | ' | ' | ' | 39,875 | 33,978 | 23,496 |
Ending balance | $39,875 | ' | ' | ' | $33,978 | ' | ' | ' | $39,875 | $33,978 | $23,496 |
LOANS_Details_2
LOANS (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | $425,028 | $413,867 |
Consumer Loan [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 2,703 | 3,467 |
Pass [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 379,177 | 355,105 |
Pass [Member] | Consumer Loan [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 2,546 | 3,324 |
Special Mention [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 18,575 | 17,494 |
Special Mention [Member] | Consumer Loan [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Substandard [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 27,276 | 41,268 |
Substandard [Member] | Consumer Loan [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 157 | 143 |
Doubtful [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Doubtful [Member] | Consumer Loan [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Loss [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Loss [Member] | Consumer Loan [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Other Loans [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 218,344 | 183,908 |
Other Loans [Member] | Consumer Loan [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 115,942 | 106,316 |
Residential Real Estate [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 21,266 | 20,011 |
Residential Real Estate [Member] | Pass [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 19,050 | 17,138 |
Residential Real Estate [Member] | Special Mention [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 869 | 564 |
Residential Real Estate [Member] | Substandard [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 1,347 | 2,309 |
Residential Real Estate [Member] | Doubtful [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Residential Real Estate [Member] | Loss [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Residential Real Estate [Member] | Other Loans [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 93,659 | 70,217 |
Commercial Real Estate [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 218,524 | 221,591 |
Commercial Real Estate [Member] | Pass [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 191,601 | 189,903 |
Commercial Real Estate [Member] | Special Mention [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 12,568 | 8,587 |
Commercial Real Estate [Member] | Substandard [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 14,355 | 23,101 |
Commercial Real Estate [Member] | Doubtful [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Commercial Real Estate [Member] | Loss [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Construction Land Acquisition and Development [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 21,310 | 30,504 |
Construction Land Acquisition and Development [Member] | Pass [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 13,781 | 23,052 |
Construction Land Acquisition and Development [Member] | Special Mention [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 1,361 | 57 |
Construction Land Acquisition and Development [Member] | Substandard [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 6,168 | 7,395 |
Construction Land Acquisition and Development [Member] | Doubtful [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Construction Land Acquisition and Development [Member] | Loss [Member] | Real Estate [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Construction Land Acquisition and Development [Member] | Other Loans [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 3,072 | 1,998 |
Commercial and Industrial [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 121,350 | 104,316 |
Commercial and Industrial [Member] | Pass [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 113,048 | 93,484 |
Commercial and Industrial [Member] | Special Mention [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 3,777 | 7,437 |
Commercial and Industrial [Member] | Substandard [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 4,525 | 3,395 |
Commercial and Industrial [Member] | Doubtful [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Commercial and Industrial [Member] | Loss [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
State and Political Subdivisions [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 39,875 | 33,978 |
State and Political Subdivisions [Member] | Pass [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 39,151 | 28,204 |
State and Political Subdivisions [Member] | Special Mention [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 849 |
State and Political Subdivisions [Member] | Substandard [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 724 | 4,925 |
State and Political Subdivisions [Member] | Doubtful [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
State and Political Subdivisions [Member] | Loss [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Commercial Indirect Auto Loan [Member] | Other Loans [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 5,671 | 5,377 |
Accruing Loans [Member] | Other Loans [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 216,733 | 182,093 |
Accruing Loans [Member] | Other Loans [Member] | Consumer Loan [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 115,809 | 106,272 |
Accruing Loans [Member] | Residential Real Estate [Member] | Other Loans [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 92,181 | 68,446 |
Accruing Loans [Member] | Construction Land Acquisition and Development [Member] | Other Loans [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 3,072 | 1,998 |
Accruing Loans [Member] | Commercial Indirect Auto Loan [Member] | Other Loans [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 5,671 | 5,377 |
Non Accruing Loans [Member] | Other Loans [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 1,611 | 1,815 |
Non Accruing Loans [Member] | Other Loans [Member] | Consumer Loan [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 133 | 44 |
Non Accruing Loans [Member] | Residential Real Estate [Member] | Other Loans [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 1,478 | 1,771 |
Non Accruing Loans [Member] | Construction Land Acquisition and Development [Member] | Other Loans [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | 0 | 0 |
Non Accruing Loans [Member] | Commercial Indirect Auto Loan [Member] | Other Loans [Member] | ' | ' |
Internal Risk Rating System [Abstract] | ' | ' |
Total Gross Loans Receivables | $0 | $0 |
LOANS_Details_3
LOANS (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | $638,412 | $586,743 |
30-59 Days Past Due | 3,086 | 2,907 |
60-89 Days Past Due | 738 | 4,979 |
>/=0 Days Past Due | 1,136 | 3,146 |
Total | 643,372 | 597,775 |
Performing (accruing) loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 633,464 | 585,031 |
30-59 Days Past Due | 2,930 | 2,651 |
60-89 Days Past Due | 603 | 384 |
>/=0 Days Past Due | 19 | 57 |
Total | 637,016 | 588,123 |
Performing (accruing) loans [Member] | Consumer [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 116,710 | 107,821 |
30-59 Days Past Due | 1,420 | 1,489 |
60-89 Days Past Due | 362 | 333 |
>/=0 Days Past Due | 0 | 0 |
Total | 118,492 | 109,643 |
Non-accrual loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 4,948 | 1,712 |
30-59 Days Past Due | 156 | 256 |
60-89 Days Past Due | 135 | 4,595 |
>/=0 Days Past Due | 1,117 | 3,089 |
Total | 6,356 | 9,652 |
Non-accrual loans [Member] | Consumer [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 14 | 2 |
30-59 Days Past Due | 31 | 0 |
60-89 Days Past Due | 16 | 2 |
>/=0 Days Past Due | 92 | 136 |
Total | 153 | 140 |
Real estate [Member] | Performing (accruing) loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 350,438 | 334,300 |
30-59 Days Past Due | 1,278 | 645 |
60-89 Days Past Due | 116 | 31 |
>/=0 Days Past Due | 0 | 30 |
Total | 351,832 | 335,006 |
Real estate [Member] | Non-accrual loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 4,753 | 1,649 |
30-59 Days Past Due | 125 | 226 |
60-89 Days Past Due | 96 | 4,582 |
>/=0 Days Past Due | 1,025 | 2,858 |
Total | 5,999 | 9,315 |
Residential real estate [Member] | Real estate [Member] | Performing (accruing) loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 112,519 | 86,301 |
30-59 Days Past Due | 571 | 422 |
60-89 Days Past Due | 116 | 31 |
>/=0 Days Past Due | 0 | 30 |
Total | 113,206 | 86,784 |
Residential real estate [Member] | Real estate [Member] | Non-accrual loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 570 | 953 |
30-59 Days Past Due | 73 | 105 |
60-89 Days Past Due | 51 | 230 |
>/=0 Days Past Due | 1,025 | 2,156 |
Total | 1,719 | 3,444 |
Commercial real estate [Member] | Real estate [Member] | Performing (accruing) loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 213,660 | 216,100 |
30-59 Days Past Due | 629 | 194 |
60-89 Days Past Due | 0 | 0 |
>/=0 Days Past Due | 0 | 0 |
Total | 214,289 | 216,294 |
Commercial real estate [Member] | Real estate [Member] | Non-accrual loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 4,183 | 250 |
30-59 Days Past Due | 52 | 121 |
60-89 Days Past Due | 0 | 4,352 |
>/=0 Days Past Due | 0 | 574 |
Total | 4,235 | 5,297 |
Construction, land acquisition and development [Member] | Real estate [Member] | Performing (accruing) loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 24,259 | 31,899 |
30-59 Days Past Due | 78 | 29 |
60-89 Days Past Due | 0 | 0 |
>/=0 Days Past Due | 0 | 0 |
Total | 24,337 | 31,928 |
Construction, land acquisition and development [Member] | Real estate [Member] | Non-accrual loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 0 | 446 |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 45 | 0 |
>/=0 Days Past Due | 0 | 128 |
Total | 45 | 574 |
Commercial and industrial [Member] | Performing (accruing) loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 126,441 | 108,932 |
30-59 Days Past Due | 232 | 517 |
60-89 Days Past Due | 125 | 20 |
>/=0 Days Past Due | 19 | 27 |
Total | 126,817 | 109,496 |
Commercial and industrial [Member] | Non-accrual loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 181 | 61 |
30-59 Days Past Due | 0 | 30 |
60-89 Days Past Due | 23 | 11 |
>/=0 Days Past Due | 0 | 95 |
Total | 204 | 197 |
State and political subdivisions [Member] | Performing (accruing) loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 39,875 | 33,978 |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
>/=0 Days Past Due | 0 | 0 |
Total | 39,875 | 33,978 |
State and political subdivisions [Member] | Non-accrual loans [Member] | ' | ' |
Performing and non-accrual loans | ' | ' |
0-29 Days Past Due | 0 | 0 |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
>/=0 Days Past Due | 0 | 0 |
Total | $0 | $0 |
LOANS_Details_4
LOANS (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Recorded Investment | ' | ' |
With no allowance recorded | $5,103 | $2,373 |
With a related allowance recorded | 4,130 | 12,852 |
Total of impaired loans | 9,233 | 15,225 |
Unpaid Principal Balance | ' | ' |
With no allowance recorded | 5,560 | 2,847 |
With a related allowance recorded | 4,134 | 12,866 |
Total of impaired loans | 9,694 | 15,714 |
Related Allowance | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 310 | 310 |
Total of impaired loans | 310 | 310 |
Consumer [Member] | ' | ' |
Recorded Investment | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 316 | 0 |
Total of impaired loans | 316 | 0 |
Unpaid Principal Balance | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 316 | 0 |
Total of impaired loans | 316 | 0 |
Related Allowance | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 1 | 0 |
Total of impaired loans | 1 | 0 |
Real estate [Member] | ' | ' |
Recorded Investment | ' | ' |
With no allowance recorded | 5,103 | 2,373 |
With a related allowance recorded | 3,814 | 12,852 |
Total of impaired loans | 8,917 | 15,225 |
Unpaid Principal Balance | ' | ' |
With no allowance recorded | 5,560 | 2,847 |
With a related allowance recorded | 3,818 | 12,866 |
Total of impaired loans | 9,378 | 15,714 |
Related Allowance | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 309 | 310 |
Total of impaired loans | 309 | 310 |
Residential real estate [Member] | Real estate [Member] | ' | ' |
Recorded Investment | ' | ' |
With no allowance recorded | 1,043 | 1,275 |
With a related allowance recorded | 942 | 1,498 |
Total of impaired loans | 1,985 | 2,773 |
Unpaid Principal Balance | ' | ' |
With no allowance recorded | 1,125 | 1,378 |
With a related allowance recorded | 946 | 1,512 |
Total of impaired loans | 2,071 | 2,890 |
Related Allowance | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 12 | 40 |
Total of impaired loans | 12 | 40 |
Commercial real estate [Member] | Real estate [Member] | ' | ' |
Recorded Investment | ' | ' |
With no allowance recorded | 4,060 | 389 |
With a related allowance recorded | 2,566 | 11,070 |
Total of impaired loans | 6,626 | 11,459 |
Unpaid Principal Balance | ' | ' |
With no allowance recorded | 4,435 | 665 |
With a related allowance recorded | 2,566 | 11,070 |
Total of impaired loans | 7,001 | 11,735 |
Related Allowance | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 296 | 268 |
Total of impaired loans | 296 | 268 |
Construction, land acquisition and development [Member] | Real estate [Member] | ' | ' |
Recorded Investment | ' | ' |
With no allowance recorded | 0 | 709 |
With a related allowance recorded | 306 | 284 |
Total of impaired loans | 306 | 993 |
Unpaid Principal Balance | ' | ' |
With no allowance recorded | 0 | 804 |
With a related allowance recorded | 306 | 284 |
Total of impaired loans | 306 | 1,089 |
Related Allowance | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 1 | 2 |
Total of impaired loans | 1 | 2 |
Commercial and Industrial [Member] | ' | ' |
Recorded Investment | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 0 | 0 |
Total of impaired loans | 0 | 0 |
Unpaid Principal Balance | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 0 | 0 |
Total of impaired loans | 0 | 0 |
Related Allowance | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 0 | 0 |
Total of impaired loans | 0 | 0 |
State and political subdivisions [Member] | ' | ' |
Recorded Investment | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 0 | 0 |
Total of impaired loans | 0 | 0 |
Unpaid Principal Balance | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 0 | 0 |
Total of impaired loans | 0 | 0 |
Related Allowance | ' | ' |
With no allowance recorded | 0 | 0 |
With a related allowance recorded | 0 | 0 |
Total of impaired loans | $0 | $0 |
LOANS_Details_5
LOANS (Details 5) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Average Balance | $13,145 | $23,328 | $27,135 | |||
Interest Income | 366 | [1] | 376 | [1] | 238 | [1] |
Real estate [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Average Balance | 13,066 | 20,418 | 22,106 | |||
Interest Income | 363 | [1] | 376 | [1] | 229 | [1] |
Residential real estate [Member] | Real estate [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Average Balance | 2,301 | 3,882 | 2,834 | |||
Interest Income | 22 | [1] | 11 | [1] | 7 | [1] |
Commercial real estate [Member] | Real estate [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Average Balance | 10,004 | 14,196 | 12,827 | |||
Interest Income | 313 | [1] | 328 | [1] | 184 | [1] |
Construction, land acquisition and development [Member] | Real estate [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Average Balance | 761 | 2,340 | 6,445 | |||
Interest Income | 28 | [1] | 37 | [1] | 38 | [1] |
Commercial and Industrial [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Average Balance | 0 | 2,521 | 4,971 | |||
Interest Income | 0 | [1] | 0 | [1] | 9 | [1] |
Consumer [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Average Balance | 79 | 232 | 58 | |||
Interest Income | 3 | [1] | 0 | [1] | 0 | [1] |
State and Political Subdivisions [Member] | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Average Balance | 0 | 157 | 0 | |||
Interest Income | $0 | [1] | $0 | [1] | $0 | [1] |
[1] | Interest income represents income recognized on performing TDRs. |
LOANS_Details_6
LOANS (Details 6) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Contracts | Contracts | |
Troubled Debt Restructured Loans | ' | ' |
Number of Contracts | 20 | 5 |
Pre-Modification Outstanding Recorded Investments | $5,706 | $3,091 |
Post-Modification Outstanding Recorded Investments | 5,826 | 3,091 |
Residential real estate [Member] | ' | ' |
Troubled Debt Restructured Loans | ' | ' |
Number of Contracts | 16 | 1 |
Pre-Modification Outstanding Recorded Investments | 827 | 624 |
Post-Modification Outstanding Recorded Investments | 947 | 624 |
Commercial real estate [Member] | ' | ' |
Troubled Debt Restructured Loans | ' | ' |
Number of Contracts | 2 | 3 |
Pre-Modification Outstanding Recorded Investments | 4,561 | 2,428 |
Post-Modification Outstanding Recorded Investments | 4,561 | 2,428 |
Construction, land acquisition and development [Member] | ' | ' |
Troubled Debt Restructured Loans | ' | ' |
Number of Contracts | 0 | 1 |
Pre-Modification Outstanding Recorded Investments | 0 | 39 |
Post-Modification Outstanding Recorded Investments | 0 | 39 |
Commercial and Industrial Loan Portfolio Segment [Member] | ' | ' |
Troubled Debt Restructured Loans | ' | ' |
Number of Contracts | 0 | 0 |
Pre-Modification Outstanding Recorded Investments | 0 | 0 |
Post-Modification Outstanding Recorded Investments | 0 | 0 |
Consumer Loan [Member] | ' | ' |
Troubled Debt Restructured Loans | ' | ' |
Number of Contracts | 2 | 0 |
Pre-Modification Outstanding Recorded Investments | 318 | 0 |
Post-Modification Outstanding Recorded Investments | $318 | $0 |
LOANS_Details_7
LOANS (Details 7) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Modifications [Line Items] | ' | ' |
Financing Receivable Type Of Modification Extension Of Term Amount | $359 | $1,095 |
Financing Receivable Types Of Modifications Principal Forebearance | 4,561 | ' |
Financing Receivable Type Of Modifications Extension Of Term And Capitilization Of Taxes | 860 | ' |
Financing Receivable Type Of Modifications Captilization Of Taxes | 46 | ' |
Financing Receivable Type Of Modifications Extension Of Term And Rate Of Concession Amount | ' | 1,996 |
Financing Receivable Type of Modifications Amount | 5,826 | 3,091 |
Residential Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Financing Receivable Type Of Modification Extension Of Term Amount | 41 | 624 |
Financing Receivable Types Of Modifications Principal Forebearance | 0 | ' |
Financing Receivable Type Of Modifications Extension Of Term And Capitilization Of Taxes | 860 | ' |
Financing Receivable Type Of Modifications Captilization Of Taxes | 46 | ' |
Financing Receivable Type Of Modifications Extension Of Term And Rate Of Concession Amount | ' | 0 |
Financing Receivable Type of Modifications Amount | 947 | 624 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Financing Receivable Type Of Modification Extension Of Term Amount | 0 | 432 |
Financing Receivable Types Of Modifications Principal Forebearance | 4,561 | ' |
Financing Receivable Type Of Modifications Extension Of Term And Capitilization Of Taxes | 0 | ' |
Financing Receivable Type Of Modifications Captilization Of Taxes | 0 | ' |
Financing Receivable Type Of Modifications Extension Of Term And Rate Of Concession Amount | ' | 1,996 |
Financing Receivable Type of Modifications Amount | 4,561 | 2,428 |
Construction Land Acquisition and Development [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Financing Receivable Type Of Modification Extension Of Term Amount | 0 | 39 |
Financing Receivable Types Of Modifications Principal Forebearance | 0 | ' |
Financing Receivable Type Of Modifications Extension Of Term And Capitilization Of Taxes | 0 | ' |
Financing Receivable Type Of Modifications Captilization Of Taxes | 0 | ' |
Financing Receivable Type Of Modifications Extension Of Term And Rate Of Concession Amount | ' | 0 |
Financing Receivable Type of Modifications Amount | 0 | 39 |
Commercial and Industrial Loan [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Financing Receivable Type Of Modification Extension Of Term Amount | 0 | 0 |
Financing Receivable Types Of Modifications Principal Forebearance | 0 | ' |
Financing Receivable Type Of Modifications Extension Of Term And Capitilization Of Taxes | 0 | ' |
Financing Receivable Type Of Modifications Captilization Of Taxes | 0 | ' |
Financing Receivable Type Of Modifications Extension Of Term And Rate Of Concession Amount | ' | 0 |
Financing Receivable Type of Modifications Amount | 0 | 0 |
Consumer Loan [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Financing Receivable Type Of Modification Extension Of Term Amount | 318 | 0 |
Financing Receivable Types Of Modifications Principal Forebearance | 0 | ' |
Financing Receivable Type Of Modifications Extension Of Term And Capitilization Of Taxes | 0 | ' |
Financing Receivable Type Of Modifications Captilization Of Taxes | 0 | ' |
Financing Receivable Type Of Modifications Extension Of Term And Rate Of Concession Amount | ' | 0 |
Financing Receivable Type of Modifications Amount | $318 | $0 |
LOANS_Details_8
LOANS (Details 8) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Contracts | Contracts | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number Of Contracts | 1 | 3 |
Recorded Investment | $27 | $604 |
Residential Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number Of Contracts | 1 | 2 |
Recorded Investment | 27 | 196 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number Of Contracts | 0 | 0 |
Recorded Investment | 0 | 0 |
Construction Land Acquisition and Development [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number Of Contracts | 0 | 1 |
Recorded Investment | 0 | 408 |
Commercial and Industrial Loan [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number Of Contracts | 0 | 0 |
Recorded Investment | $0 | $0 |
LOANS_Details_Textual
LOANS (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Troubled Debt Restructuring Debtor Subsequent Periods Contingent Payment Percentage Guarantee | 90.00% | ' | ' |
Troubled Debt Restructuring Debtor Subsequent Periods Payment Unguaranteed Amount | $395,000 | ' | ' |
Period Past Due For Classification Of Loans To Non Accrual Status | '90 days | '90 days | ' |
Financing Receivable Amount Of Loans With Amount Outstanding Balance | 8,100,000 | 8,900,000 | ' |
Impaired Financing Receivable, Related Allowance | 310,000 | 310,000 | ' |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 19,000 | 57,000 | ' |
Financing Receivable, Recorded Investment, Nonaccrual Status | 6,400,000 | 9,700,000 | ' |
Loans Receivable Held-for-sale, Net | 820,000 | 1,615,000 | ' |
Financing Receivable Specified Amount of Outstanding Nonaccrual Troubled Debt Restructuring Loans Rated as Doubtful or Substandard to be Categorized as Impaired Loans | 100,000 | ' | ' |
Financing Receivable Specific Reserve for Troubled Debt Restructurings | 301,000 | 257,000 | ' |
Troubled Debt Restructuring Increase In Allowances For Loan Losses | 6,000 | 224,000 | ' |
Investment in Impaired Loans | 9,200,000 | 15,200,000 | ' |
Principal Balance of Loans Sold | 12,600,000 | 26,200,000 | 28,100,000 |
Interest Income Recognized On Non Accrual Loan And Restructured Loans | 572,000 | 1,400,000 | 2,200,000 |
Financing Receivable Amount of Nonaccrual Loans with Specified Minimum Amount of Outstanding Balance Evaluated Individually | 1,100,000 | 1,900,000 | ' |
Net Loss On Sale Of Classified Loans | 223,000 | 0 | 0 |
Non Accruing Loans [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Impaired Financing Receivable, Related Allowance | 100,000,000 | ' | ' |
Total Non-Accruing Troubled Debt Restructurings | 4,100,000 | 1,400,000 | ' |
Indirect Auto Loan [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Net Loss On Sale Of Classified Loans | $223,000 | ' | ' |
OTHER_REAL_ESTATE_OWNED_Detail
OTHER REAL ESTATE OWNED (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Other Real Estate Owned Properties [Line Items] | ' | ' | ' | ' |
OtherRealEstateAndForeclosedAssets | $4,246 | $3,983 | $6,958 | $9,633 |
Land [Member] | ' | ' | ' | ' |
Other Real Estate Owned Properties [Line Items] | ' | ' | ' | ' |
OtherRealEstateAndForeclosedAssets | 3,549 | 2,711 | ' | ' |
Commercial Real Estate [Member] | ' | ' | ' | ' |
Other Real Estate Owned Properties [Line Items] | ' | ' | ' | ' |
OtherRealEstateAndForeclosedAssets | 647 | 1,245 | ' | ' |
Residential Real Estate [Member] | ' | ' | ' | ' |
Other Real Estate Owned Properties [Line Items] | ' | ' | ' | ' |
OtherRealEstateAndForeclosedAssets | $50 | $27 | ' | ' |
OTHER_REAL_ESTATE_OWNED_Detail1
OTHER REAL ESTATE OWNED (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Real Estate [Roll Forward] | ' | ' | ' |
Balance, beginning of year | $3,983 | $6,958 | $9,633 |
Loans transferred to OREO | 255 | 1,586 | 3,995 |
Bank premises transferred to OREO | 1,819 | 0 | 0 |
Valuation adjustments | -223 | -1,206 | -2,318 |
Carrying value of OREO sold | -1,588 | -3,355 | -4,352 |
Balance, end of year | $4,246 | $3,983 | $6,958 |
OTHER_REAL_ESTATE_OWNED_Detail2
OTHER REAL ESTATE OWNED (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Component Of Other Income Nonoperating [LineItems] | ' | ' | ' |
Foreclosed Real Estate Expense | $719 | $2,027 | $3,720 |
Real Estates Insurance [Member] | ' | ' | ' |
Component Of Other Income Nonoperating [LineItems] | ' | ' | ' |
Foreclosed Real Estate Expense | 147 | 65 | 58 |
Real Estates Legal Fees [Member] | ' | ' | ' |
Component Of Other Income Nonoperating [LineItems] | ' | ' | ' |
Foreclosed Real Estate Expense | 131 | 66 | 235 |
Real Estates Maintenance [Member] | ' | ' | ' |
Component Of Other Income Nonoperating [LineItems] | ' | ' | ' |
Foreclosed Real Estate Expense | 82 | 147 | 63 |
Real Estates Income Loss from Operation of Foreclosed Properties [Member] | ' | ' | ' |
Component Of Other Income Nonoperating [LineItems] | ' | ' | ' |
Foreclosed Real Estate Expense | -27 | 24 | 22 |
Professional Fee [Member] | ' | ' | ' |
Component Of Other Income Nonoperating [LineItems] | ' | ' | ' |
Foreclosed Real Estate Expense | 35 | 211 | 250 |
Real Estates Taxes [Member] | ' | ' | ' |
Component Of Other Income Nonoperating [LineItems] | ' | ' | ' |
Foreclosed Real Estate Expense | 122 | 287 | 724 |
Real Estates Utilities [Member] | ' | ' | ' |
Component Of Other Income Nonoperating [LineItems] | ' | ' | ' |
Foreclosed Real Estate Expense | 6 | 21 | 48 |
Real Estates Impairment Charges [Member] | ' | ' | ' |
Component Of Other Income Nonoperating [LineItems] | ' | ' | ' |
Foreclosed Real Estate Expense | 223 | 1,206 | 2,318 |
Real Estates Other [Member] | ' | ' | ' |
Component Of Other Income Nonoperating [LineItems] | ' | ' | ' |
Foreclosed Real Estate Expense | $0 | $0 | $2 |
OTHER_REAL_ESTATE_OWNED_Detail3
OTHER REAL ESTATE OWNED (Details Textual) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Other Real Estate, Foreclosed Assets, and Repossessed Assets, Total | $4,246 | $3,983 | $6,958 | $9,633 |
Other Real Estate, Disposals | 1,588 | 3,355 | 4,352 | ' |
Other Real Estate, Valuation Adjustments | $223 | $1,206 | $2,318 | ' |
BANK_PREMISES_AND_EQUIPMENT_De
BANK PREMISES AND EQUIPMENT (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Bank Premises and Equipment | ' | ' |
Total | $31,845 | $34,186 |
Accumulated depreciation | -16,482 | -15,249 |
Net | 15,363 | 18,937 |
Land [Member] | ' | ' |
Bank Premises and Equipment | ' | ' |
Total | 4,191 | 6,779 |
Buildings and improvements | ' | ' |
Bank Premises and Equipment | ' | ' |
Total | 10,126 | 10,612 |
Furniture, Fixtures and Equipment [Member] | ' | ' |
Bank Premises and Equipment | ' | ' |
Total | 12,575 | 12,106 |
Leasehold improvements | ' | ' |
Bank Premises and Equipment | ' | ' |
Total | $4,953 | $4,689 |
BANK_PREMISES_AND_EQUIPMENT_De1
BANK PREMISES AND EQUIPMENT (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Depreciation and amortization expense | $1,300,000 | $1,400,000 | $1,300,000 |
Administrative Facilities Carrying Value | 1,200,000 | ' | ' |
Administrative Facilities Sale Proceeds | 1,800,000 | ' | ' |
Gain On Sale Of Administrative Facilities | $579,000 | ' | ' |
SERVICING_Details
SERVICING (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Servicing Assets at Amortized Value [Line Items] | ' | ' |
Balance, beginning of year | $675 | $777 |
Mortgage servicing rights capitalized | 119 | 220 |
Amortization | -265 | -322 |
Balance, end of year | $529 | $675 |
SERVICING_Details_Textual
SERVICING (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ' | ' | ' |
Mortgage and Other Loans Serviced for Others Unpaid Balances | $130,500,000 | $154,500,000 | $180,000,000 |
Servicing Asset at Fair Value, Amount | 990,000 | 884,000 | ' |
Mortgage Servicing Rights [Member] | One to Four Family Residential Mortgage Loan [Member] | ' | ' | ' |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ' | ' | ' |
Servicing Asset at Amortized Value, Valuation Allowance | $0 | $0 | ' |
Mortgage Servicing Rights [Member] | Minimum | ' | ' | ' |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ' | ' | ' |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate | 2.75% | ' | ' |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed | 108.00% | ' | ' |
Mortgage Servicing Rights [Member] | Maximum | ' | ' | ' |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ' | ' | ' |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate | 8.31% | ' | ' |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed | 550.00% | ' | ' |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Research and Development Assets Acquired Other than Through Business Combination [Line Items] | ' | ' |
Gross carrying amount | $1,650 | $1,650 |
Accumulated amortization | -1,183 | -1,018 |
Net carrying amount | $467 | $632 |
INTANGIBLE_ASSETS_Details_Text
INTANGIBLE ASSETS (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | $165 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 165 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 137 | ' | ' |
Core Deposits [Member] | ' | ' | ' |
Amortization of Intangible Assets | $165 | $165 | $166 |
Honesdale Branch [Member] | Core Deposits [Member] | ' | ' | ' |
Useful life | '10 years | ' | ' |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Time Deposits by Maturity [Line Items] | ' | ' |
Demand (non-interest bearing) | $157,550 | $131,476 |
Interest-bearing: | ' | ' |
Interest-bearing demand | 334,742 | 321,863 |
Savings | 87,806 | 83,101 |
Time ($100,000 and over) | 161,959 | 144,844 |
Other time | 142,641 | 173,329 |
Total interest-bearing | 727,148 | 723,137 |
Total deposits | $884,698 | $854,613 |
DEPOSITS_Details_1
DEPOSITS (Details 1) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Time Deposits by Maturity [Line Items] | ' |
2014 | $176,987 |
2015 | 85,433 |
2016 | 26,461 |
2017 | 7,046 |
2018 | 7,971 |
2019 and thereafter | 702 |
Time Deposits, Total | 304,600 |
Time Deposit 100000 Or More [Member] | ' |
Time Deposits by Maturity [Line Items] | ' |
2014 | 99,990 |
2015 | 48,950 |
2016 | 9,970 |
2017 | 1,123 |
2018 | 1,760 |
2019 and thereafter | 166 |
Time Deposits, Total | 161,959 |
Time Deposit Less Than 100000 [Member] | ' |
Time Deposits by Maturity [Line Items] | ' |
2014 | 76,997 |
2015 | 36,483 |
2016 | 16,491 |
2017 | 5,923 |
2018 | 6,211 |
2019 and thereafter | 536 |
Time Deposits, Total | $142,641 |
DEPOSITS_Details_Textual
DEPOSITS (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Time Deposits by Maturity [Line Items] | ' | ' |
Deposits Brokered | $5 | $15.70 |
Investment Securities Pledged as Collateral for Municipal Deposits | $204.20 | $185 |
BORROWED_FUNDS_Details
BORROWED FUNDS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
FHLB advances | $27,123 | $18,593 |
Subordinated debentures | 25,000 | 25,000 |
Junior subordinated debentures | 10,310 | 10,310 |
Total | $62,433 | $53,903 |
BORROWED_FUNDS_Details_1
BORROWED FUNDS (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Within one year | $10,000 | ' |
After one year but within two years | 10,000 | ' |
After two years but within three years | 5,000 | ' |
After three years but within four years | 10,000 | ' |
After four years but within five years | 10,000 | ' |
After five years | 17,433 | ' |
Total | $62,433 | $53,903 |
Long Term Debt Weighted Average Interest Rate Maturities Year One | 1.92% | ' |
Long Term Debt Weighted Average Interest Rate Maturities Year Two | 4.76% | ' |
Long Term Debt Weighted Average Interest Rate Maturities Year Three | 9.00% | ' |
Long Term Debt Weighted Average Interest Rate Maturities Year Four | 4.92% | ' |
Long Term Debt Weighted Average Interest Rate Maturities Year Five | 5.02% | ' |
Long Term Debt Weighted Average Interest Rate Maturities Greater than Five Years | 4.19% | ' |
Total (as a percent) | 4.55% | ' |
BORROWED_FUNDS_Details_Textual
BORROWED FUNDS (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 14, 2006 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 14, 2006 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 01, 2009 | Sep. 01, 2009 |
Trust preferred securities | Junior subordinated debentures | Junior subordinated debentures | Junior subordinated debentures | Junior subordinated debentures | Junior subordinated debentures | Junior subordinated debentures | Notes | Notes | Notes | Notes | |||
First National Community Statutory Trust 1 [Member] | First National Community Statutory Trust 1 [Member] | First National Community Statutory Trust 1 [Member] | First National Community Statutory Trust 1 [Member] | First National Community Statutory Trust 1 [Member] | Maximum | ||||||||
Borrowed funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issued amount | ' | ' | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate (as a percent) | ' | ' | 7.02% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Junior subordinated debentures | 10,310,000 | 10,310,000 | ' | ' | ' | ' | ' | ' | 10,300,000 | ' | ' | ' | ' |
Stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 7.02% | ' | ' | ' | ' |
Variable rate basis at which instrument resets quarterly | ' | ' | ' | '3-month Libor rate | ' | '1.67 | ' | ' | ' | ' | ' | ' | ' |
Average interest paid (as a percent) | ' | ' | ' | ' | ' | 1.97% | 2.18% | 2.00% | ' | ' | ' | ' | ' |
Accrued and unpaid interest | ' | ' | ' | 695,000 | 491,000 | ' | ' | ' | ' | 7,600,000 | 5,300,000 | ' | ' |
Principal amount | ' | ' | ' | 10,300,000 | 10,300,000 | ' | ' | ' | ' | ' | ' | ' | 25,000,000 |
Fixed interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | ' |
Debt Instrument Denominations in which Debt to be Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' |
Debt Instrument Integral Multiples in which Debt to be issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' |
Debt Instrument Period During which Only Interest to be Paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
SubordinatedDebt | $25,000,000 | $25,000,000 | ' | ' | ' | ' | ' | ' | ' | $25,000,000 | $25,000,000 | ' | ' |
BENEFIT_PLANS_Details_Textual
BENEFIT PLANS (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||
Sep. 01, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Defined Contribution Plan Disclosures [Line Items] | ' | ' | ' | ' |
Deferred Compensation Liability, Current and Noncurrent | ' | $7,300,000 | $7,300,000 | ' |
Defined Contribution Profit Sharing Plan [Member] | ' | ' | ' | ' |
Schedule of Defined Contribution Plan Disclosures [Line Items] | ' | ' | ' | ' |
Matching contribution by employer as a percentage of employee salary deferrals | 50.00% | ' | ' | ' |
Annual vesting percentage of employer discretionary contributions | 20.00% | ' | ' | ' |
Defined Contribution Plan Employee Participants Vesting Percentage | 100.00% | ' | ' | ' |
Amount of discretionary contribution | ' | 0 | 0 | 0 |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4.00% | ' | ' | ' |
Defined Contribution Pension [Member] | ' | ' | ' | ' |
Schedule of Defined Contribution Plan Disclosures [Line Items] | ' | ' | ' | ' |
Amount of discretionary contribution | ' | $129,000 | $41,000 | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of the provision (benefit) for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision (benefit) at statutory tax rates | ' | ' | ' | ' | ' | ' | ' | ' | $2,170 | ($4,662) | ($114) |
Add (deduct): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax effects of non-taxable income | ' | ' | ' | ' | ' | ' | ' | ' | -1,574 | -1,824 | -2,288 |
Non-deductible interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 37 | 65 | 98 |
Bank-owned life insurance | ' | ' | ' | ' | ' | ' | ' | ' | -240 | -235 | -268 |
Change in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | -347 | 6,637 | 2,568 |
Other items, net | ' | ' | ' | ' | ' | ' | ' | ' | -46 | 19 | 4 |
Provision for income taxes | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Components of Deferred Tax Assets [Abstract] | ' | ' |
Allowance for loan and lease losses | $4,954 | $6,603 |
Deferred compensation | 2,468 | 2,517 |
Unrealized holding losses on securities available-for-sale | 1,592 | 0 |
Other real estate owned valuation | 513 | 932 |
Deferred intangible assets | 1,504 | 1,602 |
Employee benefits | 91 | 41 |
Accrued interest | 2,824 | 1,441 |
AMT tax credits | 2,278 | 2,215 |
Fixed asset valuation | 0 | 407 |
Charitable contribution carryover | 399 | 312 |
Accrued rent expense | 204 | 213 |
Accrued vacation | 56 | 51 |
Accrued real estate taxes | 0 | 14 |
Accrued legal settlement costs | 850 | 0 |
Deferred income | 33 | 0 |
Net operating loss carryover | 18,616 | 18,422 |
Gross deferred tax assets | 36,382 | 34,770 |
Deferred loan origination fees | -338 | -34 |
Unrealized holding gains on securities available-for-sale | 0 | -3,451 |
Prepaid expenses | -56 | 0 |
Depreciation | -261 | -254 |
Gross deferred tax liabilities | -655 | -3,739 |
Net deferred asset before valuation allowance | 35,727 | 31,031 |
Valuation allowance | -34,135 | -34,482 |
Net deferred tax assets (liabilities) | $1,592 | ($3,451) |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | 34.00% |
Operating Loss Carryforwards | $54,800,000 | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards | 18,616,000 | 18,422,000 | ' |
Charitable Contribution Carry Overs | 1,200,000 | ' | ' |
Deferred Tax Assets, Charitable Contribution Carryforwards | 399,000 | 312,000 | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $2,278,000 | $2,215,000 | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Changes in the total amounts of outstanding loans, advances under lines of credit as well as repayments | ' | ' | ||
Balance December 31, | $8,500 | $8,000 | ||
Directors, executive officers and their related parties | Bank | ' | ' | ||
Changes in the total amounts of outstanding loans, advances under lines of credit as well as repayments | ' | ' | ||
Balance January 1, | 33,296 | 87,442 | ||
New loans and advances | 50,260 | 64,509 | ||
Repayments | -50,794 | -118,655 | ||
Other | -256 | [1] | 0 | [1] |
Balance December 31, | $32,506 | $33,296 | ||
[1] | Other represents loans to related parties that ceased being related parties during the year |
RELATED_PARTY_TRANSACTIONS_Det1
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Related Party Transaction [Line Items] | ' | ' | ' |
Loans and Leases Receivable Related Parties Not Performing in Accordance with Term of Agreement | $90,000 | ' | ' |
Loans and Leases Receivable, Related Parties, Ending Balance | 8,500,000 | 8,000,000 | ' |
Related Party Transaction, Amount of Participation Interest | 5,200,000 | ' | ' |
Related Party Transaction Amount Of Participation Interest Outstanding | 3,400,000 | 3,200,000 | ' |
Related Party Deposit Liabilities | 115,500,000 | 66,700,000 | ' |
Related Party Transactions, Interest Paid on Deposits | 80,000 | 139,000 | 446,000 |
Other real estate property sold | ' | 202,000 | ' |
Gain recognized on sale of other real estate property | ' | 41,000 | ' |
Directors, executive officers and their related parties | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related Party Transactions, Subordinated Debt | 10,000,000 | 10,000,000 | ' |
Related Party Transactions, Interest Paid on Subordinated Debt | 0 | 0 | 0 |
Related Party Transactions, Interest Accrued and Unpaid | 3,000,000 | 2,100,000 | ' |
Various companies of related parties | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | $2,600,000 | $1,600,000 | $1,800,000 |
COMMITMENTS_CONTINGENCIES_AND_2
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Minimum future obligations under non-cancelable leases | ' |
2014 | $658 |
2015 | 337 |
2016 | 281 |
2017 | 243 |
2018 | 172 |
2019 and thereafter | 449 |
Total | 2,140 |
Facilities | ' |
Minimum future obligations under non-cancelable leases | ' |
2014 | 604 |
2015 | 316 |
2016 | 281 |
2017 | 243 |
2018 | 172 |
2019 and thereafter | 449 |
Total | 2,065 |
Equipment | ' |
Minimum future obligations under non-cancelable leases | ' |
2014 | 54 |
2015 | 21 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
2019 and thereafter | 0 |
Total | $75 |
COMMITMENTS_CONTINGENCIES_AND_3
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments to extend credit | ' | ' |
Financial Instruments with off-balance sheet commitments | ' | ' |
Financial instruments, contract amount | $155,701 | $166,722 |
Standby letters of credit | ' | ' |
Financial Instruments with off-balance sheet commitments | ' | ' |
Financial instruments, contract amount | $25,321 | $35,277 |
COMMITMENTS_CONTINGENCIES_AND_4
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Concentrations of credit risk | Customers outside Pennsylvania | |||
Automobile dealers | Automobile dealers | Land subdivision | Land subdivision | Physicians | Physicians | Colleges and universities | Colleges and universities | Solid waste landfills | Solid waste landfills | Hotels | Hotels | Office complexes/units | Office complexes/units | Shopping centers/complexes | Shopping centers/complexes | Commercial real estate and construction, land acquisition and development loans | Commercial real estate and construction, land acquisition and development loans | ||||
Loans | Loans | ||||||||||||||||||||
Concentrations of Credit Risk | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans And Leases Receivable Gross Carrying Amount | $643,372 | $597,775 | $679,521 | $18,467 | $10,607 | $15,974 | $17,658 | $13,932 | $9,269 | $12,671 | $4,879 | $12,254 | $13,233 | $9,847 | $13,596 | $9,636 | $9,801 | $8,083 | $21,068 | $242,900 | $38,900 |
Loans and Leases Receivable as Percentage of Aggregate Gross Loans and Leases Receivable | ' | ' | ' | 2.87% | 1.77% | 2.48% | 2.95% | 2.17% | 1.55% | 1.97% | 0.82% | 1.90% | 2.21% | 1.53% | 2.27% | 1.50% | 1.64% | 1.26% | 3.52% | 37.80% | 6.10% |
COMMITMENTS_CONTINGENCIES_AND_5
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 04, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net, Total | $692,000 | $734,000 | $725,000 | ' |
Minimum Percentage of Credit Enhancement Guarantee to FHLB for Foreclosure Losses of Original Loan Principal Sold | 1.00% | ' | ' | ' |
Payments Serviced for Federal Home Loan Bank | 10,600,000 | ' | ' | ' |
Maximum Obligation for Guarantees to Federal Home Loan Bank if Aggregate Foreclosure Losses on Pool of Loans Exceeds Specified Amount | 1,500,000 | ' | ' | ' |
Maximum Amount of Aggregate Foreclosure Losses on Entire Pool of Loans | 77,000 | ' | ' | ' |
Loans and Leases Receivable, Gross, Total | 643,372,000 | 597,775,000 | 679,521,000 | ' |
Derivative Liability | ' | ' | ' | 5,000,000 |
Noninterest Expense Distribution and Servicing Fees | 2,500,000 | ' | ' | ' |
Concentrations of Credit Risk | Commercial real estate and construction, land acquisition and development loans | Loans | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Loans and Leases Receivable, Gross, Total | 242,900,000 | ' | ' | ' |
Loans and Leases Receivable as Percentage of Aggregate Gross Loans and Leases Receivable | 37.80% | ' | ' | ' |
Customers outside Pennsylvania | Commercial real estate and construction, land acquisition and development loans | Loans | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Loans and Leases Receivable, Gross, Total | 38,900,000 | ' | ' | ' |
Loans and Leases Receivable as Percentage of Aggregate Gross Loans and Leases Receivable | 6.10% | ' | ' | ' |
Bank | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
FDIC Insurance Limit on Deposit Accounts | 250,000 | 250,000 | ' | ' |
Federal Home Loan Bank, Balance | $298,000 | $304,000 | ' | ' |
STOCK_COMPENSATION_PLANS_Detai
STOCK COMPENSATION PLANS (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
Dec. 02, 2013 | Dec. 17, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Option Plans | ' | ' | ' | ' | ' |
Shares, Outstanding at the beginning of the period (in shares) | ' | ' | 129,170 | 188,193 | 222,616 |
Shares, Granted (in shares) | 50 | 50 | 0 | 0 | 0 |
Shares, Exercised (in shares) | ' | ' | 0 | 0 | 0 |
Shares, Forfeited (in shares) | ' | ' | -46,572 | -59,023 | -34,423 |
Shares, Outstanding at the end of the year (in shares) | ' | ' | 82,598 | 129,170 | 188,193 |
Shares, Options exercisable at period end (in shares) | ' | ' | 82,598 | 129,170 | 188,193 |
Weighted Average Exercise Price, Outstanding at the beginning of the period (in dollars per share) | ' | ' | $14.26 | $12.62 | $12.58 |
Weighted Average Exercise Price, Forfeited (in dollars per share) | ' | ' | $11.22 | $9.03 | $12.37 |
Weighted Average Exercise Price, Outstanding at period end (in dollars per share) | ' | ' | $15.98 | $14.26 | $12.62 |
Weighted Average Exercise Price, Options exercisable at period end (in dollars per share) | ' | ' | $15.98 | $14.26 | $12.62 |
Weighted Average Exercise Price, Granted (in dollars per share) | ' | ' | $0 | $0 | $0 |
Weighted Average Exercise Price, Exercised (in dollars per share) | ' | ' | $0 | $0 | $0 |
Weighted average fair value of options granted during the period (in dollars per share) | ' | ' | $0 | $0 | $0 |
Weighted Average Exercise Price, Stock-based compensation expense | ' | ' | $0 | $0 | $0 |
STOCK_COMPENSATION_PLANS_Detai1
STOCK COMPENSATION PLANS (Details 1) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Pertaining to options outstanding | ' |
Options Outstanding, Number Outstanding (in shares) | 82,598 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | '3 years 6 months |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $15.98 |
Options Excercisable, Number Exercisable (in shares) | 82,598 |
Options Excercisable, Weighted Average Exercise Price (in dollars per share) | $15.98 |
Range of Exercise Price Dollars 10.81 to Dollars 23.13 Per Share [Member] | ' |
Pertaining to options outstanding | ' |
Exercise price, low end of the range (in dollars per share) | $10.81 |
Exercise price, high end of the range (in dollars per share) | $23.13 |
STOCK_COMPENSATION_PLANS_Detai2
STOCK COMPENSATION PLANS (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Dec. 02, 2013 | Dec. 17, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 28, 2012 | Nov. 27, 2013 | Aug. 30, 2000 | Aug. 30, 2000 |
Employee Stock Grant Plan 2012 [Member] | Employee Stock Option Plan 2013 [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | ||||||
Employee Stock Incentive Plan [Member] | Directors Stock Option Plans [Member] | ||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | 16,000 | 15,000 | 1,100,000 | 550,000 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | ' | ' | $0 | $0 | $0 | $3.05 | $4.26 | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Total Cost | ' | ' | $61 | $46 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50 | 50 | 0 | 0 | 0 | 15,050 | 14,400 | ' | ' |
REGULATORY_MATTERS_Details
REGULATORY MATTERS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Tier I Capital: | ' | ' | ' |
Total Tier I Capital | $46,165 | $39,587 | $53,059 |
Tier II Capital: | ' | ' | ' |
Subordinated notes | 23,085 | 19,796 | 25,000 |
Allowable portion of allowance for loan losses | 8,462 | 8,452 | 9,823 |
Total Tier II Capital | 31,547 | 28,248 | 34,823 |
Total Risk-Based Capital | 77,712 | 67,835 | 87,882 |
Total Risk Weighted Assets | 670,894 | 665,323 | 774,452 |
Bank | ' | ' | ' |
Tier I Capital: | ' | ' | ' |
Total Tier I Capital | 81,581 | 69,963 | 80,976 |
Tier II Capital: | ' | ' | ' |
Allowable portion of allowance for loan losses | 8,456 | 8,447 | 9,819 |
Total Tier II Capital | 8,456 | 8,447 | 9,819 |
Total Risk-Based Capital | 90,037 | 78,410 | 90,795 |
Total Risk Weighted Assets | $670,416 | $664,914 | $774,097 |
REGULATORY_MATTERS_Details_1
REGULATORY MATTERS (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2010 |
In Thousands, unless otherwise specified | Minimum | Minimum | Bank | Bank | Bank | Bank | Bank | Bank | |||
Minimum | Minimum | Minimum | |||||||||
Total Capital (to Risk Weighted Assets) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Amount | $77,712 | $67,835 | $87,882 | ' | ' | $90,037 | $78,410 | $90,795 | ' | ' | ' |
For Capital Adequacy Purposes, Amount | ' | ' | ' | 53,672 | 53,226 | ' | ' | ' | 53,633 | 53,193 | ' |
To Be Well Capitalized Under Prompt Corrective Action Provision, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 67,042 | 66,491 | ' |
Total capital (to Risk Weighted Assets), Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Ratio (as a percent) | 11.58% | 10.20% | ' | ' | ' | 13.43% | 11.79% | ' | ' | ' | ' |
For Capital Adequacy Purposes, Ratio (as a percent) | 13.43% | ' | ' | 8.00% | 8.00% | ' | ' | ' | 8.00% | 8.00% | ' |
To be Well Capitalized Under Prompt Corrective Action Provision, Ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | ' |
Tier I Capital (to Risk Weighted Assets) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Amount | 46,165 | 39,587 | 53,059 | ' | ' | 81,581 | 69,963 | 80,976 | ' | ' | ' |
For Capital Adequacy Purposes, Amount | ' | ' | ' | 26,836 | 26,613 | ' | ' | ' | 26,817 | 26,597 | ' |
To Be Well Capitalized Under Prompt Corrective Action Provision, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 40,225 | 39,895 | ' |
Tier I Capital (to Risk Weighted Assets), Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Ratio (as a percent) | 6.88% | 5.95% | ' | ' | ' | 12.17% | 10.52% | ' | ' | ' | ' |
For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | ' | ' | 4.00% | 4.00% | 8.00% | ' | ' | 4.00% | 4.00% | ' |
To be Well Capitalized Under Prompt Corrective Action Provision, Ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% | ' |
Tier I Capital (to Average Assets) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Amount | 46,165 | 39,587 | ' | ' | ' | 81,581 | 69,963 | ' | ' | ' | ' |
For Capital Adequacy Purposes, Amount | ' | ' | ' | 39,230 | 38,879 | ' | ' | ' | 39,230 | 38,865 | ' |
To Be Well Capitalized Under Prompt Corrective Action Provision, Amount | ' | ' | ' | ' | ' | ' | ' | ' | $49,038 | $48,581 | ' |
Tier I Capital (to Average Assets), Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual Ratio (as a percent) | 4.71% | 4.07% | ' | ' | ' | 8.32% | 7.20% | ' | 9.00% | ' | 9.00% |
For Capital Adequacy Purposes, Ratio (as a percent) | ' | ' | ' | 4.00% | 4.00% | ' | ' | ' | 4.00% | 4.00% | ' |
To be Well Capitalized Under Prompt Corrective Action Provision, Ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' |
REGULATORY_MATTERS_Details_Tex
REGULATORY MATTERS (Details Textual) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2010 | Oct. 31, 2010 | Dec. 31, 2013 | Nov. 30, 2010 |
Subsequent Event [Member] | Minimum Capital Level Requirements [Member] | Minimum Capital Level Requirements [Member] | Minimum | Minimum | Minimum | Subsidiaries [Member] | Subsidiaries [Member] | Subsidiaries [Member] | Subsidiaries [Member] | Subsidiaries [Member] | OCC Consent Order | OCC Consent Order | OCC Consent Order | |||
Subsequent Event [Member] | Subsequent Event [Member] | Minimum | Minimum | Minimum | Subsidiaries [Member] | Subsidiaries [Member] | ||||||||||
Regulatory Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period from Receipt of Determination of No Supervisory Objection for Definitive Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' |
Risk based capital (as a percent) | 11.58% | 10.20% | 10.00% | 7.00% | 4.00% | ' | ' | ' | 13.43% | 11.79% | ' | ' | ' | 9.00% | 13.00% | 13.00% |
Tier 1 Capital (as a percent) | 4.71% | 4.07% | 4.00% | ' | ' | ' | ' | 9.00% | 8.32% | 7.20% | 9.00% | ' | 9.00% | 13.00% | ' | ' |
Increased Risk-based Capital Points | ' | ' | ' | ' | ' | ' | ' | ' | 164 | ' | ' | ' | ' | ' | ' | ' |
Increased In Leverage Ratio Points | ' | ' | ' | ' | ' | ' | ' | ' | 112 | ' | ' | ' | ' | ' | ' | ' |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | ' | 8.50% | 4.00% | 4.50% | 4.00% | 4.00% | ' | 8.00% | ' | 4.00% | 4.00% | ' | ' | ' | ' |
Tier One Risk Based Capital to Risk Weighted Assets | 6.88% | 5.95% | 8.00% | ' | ' | ' | ' | ' | 12.17% | 10.52% | ' | ' | ' | ' | ' | ' |
Capital Conservation Buffer | ' | ' | ' | 0.63% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Required for Capital Adequacy to Risk Weighted Assets | 13.43% | ' | ' | ' | ' | 8.00% | 8.00% | ' | ' | ' | 8.00% | 8.00% | ' | ' | ' | ' |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | ' | ' | 5.00% | ' | ' | 4.00% | 4.00% | ' | ' | ' | 4.00% | 4.00% | ' | ' | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | $203,867 | $185,361 |
Obligations of U.S. Government Agencies | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | ' | 1,891 |
US States And Political Subdivisions [Member] | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 78,054 | 103,501 |
Government sponsored agency CMOs | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 34,799 | 9,103 |
Corporate debt securities | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 407 | 410 |
Equity securities | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 951 | 1,000 |
Fair value [Member] | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 203,867 | 185,361 |
Fair value [Member] | Obligations of U.S. Government Agencies | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 78,054 | 1,891 |
Fair value [Member] | US States And Political Subdivisions [Member] | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | ' | 103,501 |
Fair value [Member] | Government sponsored agency CMOs | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 34,799 | 9,103 |
Fair value [Member] | Residential mortgage backed securities, Government sponsored agency | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 89,656 | 69,456 |
Fair value [Member] | Corporate debt securities | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 407 | 410 |
Fair value [Member] | Equity securities | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 951 | 1,000 |
Quoted prices in active markets for identical assets (Level 1) | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 951 | 1,000 |
Quoted prices in active markets for identical assets (Level 1) | Obligations of U.S. Government Agencies | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | US States And Political Subdivisions [Member] | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | ' | 0 |
Quoted prices in active markets for identical assets (Level 1) | Government sponsored agency CMOs | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Residential mortgage backed securities, Government sponsored agency | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Corporate debt securities | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Equity securities | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 951 | 1,000 |
Fair value Level 2 [Member] | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 202,345 | 182,622 |
Fair value Level 2 [Member] | Obligations of U.S. Government Agencies | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 77,483 | 1,891 |
Fair value Level 2 [Member] | US States And Political Subdivisions [Member] | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | ' | 101,762 |
Fair value Level 2 [Member] | Government sponsored agency CMOs | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 34,799 | 9,103 |
Fair value Level 2 [Member] | Residential mortgage backed securities, Government sponsored agency | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 89,656 | 69,456 |
Fair value Level 2 [Member] | Corporate debt securities | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 407 | 410 |
Fair value Level 2 [Member] | Equity securities | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 0 | 0 |
FairValueInputsLevel3Member | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 571 | 1,739 |
FairValueInputsLevel3Member | Obligations of U.S. Government Agencies | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 571 | 0 |
FairValueInputsLevel3Member | US States And Political Subdivisions [Member] | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | ' | 1,739 |
FairValueInputsLevel3Member | Government sponsored agency CMOs | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 0 | 0 |
FairValueInputsLevel3Member | Residential mortgage backed securities, Government sponsored agency | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 0 | 0 |
FairValueInputsLevel3Member | Corporate debt securities | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | 0 | 0 |
FairValueInputsLevel3Member | Equity securities | ' | ' |
Assets Measured at Fair Value on a Recurring Basis | ' | ' |
Available-for-sale Securities, Total | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Rollforward of assets | ' | ' |
Balance at the beginning of the period | $1,739 | $42,868 |
Amortization | 0 | -395 |
Accretion | 0 | 101 |
Purchases | 0 | 14,691 |
Paydowns | -570 | -14,200 |
Sales and calls | -622 | -41,389 |
Included in earnings | 2 | 0 |
Included in other comprehensive income | 22 | 63 |
Balance at the end of the period | 571 | 1,739 |
PreTSLs | ' | ' |
Rollforward of assets | ' | ' |
Balance at the beginning of the period | 0 | 3,801 |
Amortization | 0 | 0 |
Accretion | 0 | 0 |
Purchases | 0 | 0 |
Paydowns | 0 | -172 |
Sales and calls | 0 | -3,629 |
Total gains or losses (realized/unrealized): | ' | ' |
Included in earnings | 0 | 0 |
Included in other comprehensive income | 0 | 0 |
Balance at the end of the period | 0 | 0 |
State and Political Subdivisions [Member] | ' | ' |
Rollforward of assets | ' | ' |
Balance at the beginning of the period | 1,739 | 2,811 |
Amortization | 0 | 0 |
Accretion | 0 | 0 |
Purchases | 0 | 0 |
Paydowns | -570 | -550 |
Sales and calls | -622 | -585 |
Included in earnings | 2 | 0 |
Included in other comprehensive income | 22 | 63 |
Balance at the end of the period | 571 | 1,739 |
Private Label CMOs | ' | ' |
Rollforward of assets | ' | ' |
Balance at the beginning of the period | 0 | 36,256 |
Amortization | 0 | -395 |
Accretion | 0 | 101 |
Purchases | 0 | 14,691 |
Paydowns | 0 | -13,478 |
Sales and calls | 0 | -37,175 |
Included in earnings | 0 | 0 |
Included in other comprehensive income | 0 | 0 |
Balance at the end of the period | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair value [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired Financing Receivable, Fair Value Disclosure | $5,229 | [1] | $7,816 | [1] |
Other Real Estate, Fair Value Disclosure | 3,931 | [1] | 2,455 | [1] |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired Financing Receivable, Fair Value Disclosure | 0 | 0 | ||
Other Real Estate, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired Financing Receivable, Fair Value Disclosure | 0 | 0 | ||
Other Real Estate, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Impaired Financing Receivable, Fair Value Disclosure | 5,229 | 7,816 | ||
Other Real Estate, Fair Value Disclosure | $3,931 | $2,455 | ||
[1] | Represents carrying value and related write-downs for which adjustments are based on appraised value. Management makes adjustments to the appraised values as necessary to consider declines in real estate values since the time of the appraisal. Such adjustments are based on management’s knowledge of the local real estate markets. |
FAIR_VALUE_MEASUREMENTS_Detail3
FAIR VALUE MEASUREMENTS (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets | ' | ' |
Loans Receivable Held-for-sale, Net | $820 | $1,615 |
Interest Receivable | 2,191 | 2,199 |
Financial liabilities | ' | ' |
Deposits | 304,600 | ' |
Interest Payable | 8,732 | 6,427 |
Carrying Value | ' | ' |
Financial assets | ' | ' |
Securities available for sale | 203,867 | 185,361 |
Carrying Value | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial assets | ' | ' |
Cash and short term investments | 103,556 | 115,271 |
Carrying Value | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial assets | ' | ' |
Held-to-maturity Securities, Sold Security, at Carrying Value | 2,308 | 2,198 |
FHLB and FRB Stock | 3,496 | 7,308 |
Loans Receivable Held-for-sale, Net | 820 | 1,615 |
Interest Receivable | 2,191 | 2,199 |
Financial liabilities | ' | ' |
Deposits | 884,698 | 854,613 |
Borrowed funds | 62,433 | 53,903 |
Interest Payable | 8,732 | 6,427 |
Carrying Value | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Financial assets | ' | ' |
Loans, net | 629,880 | 579,396 |
Mortgage Servicing Rights | 529 | 675 |
Fair value [Member] | ' | ' |
Financial assets | ' | ' |
Securities available for sale | 203,867 | 185,361 |
Fair value [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Financial assets | ' | ' |
Cash and short term investments | 103,556 | 115,271 |
Fair value [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Financial assets | ' | ' |
Held-to-maturity Securities, Sold Security, at Carrying Value | 2,424 | 2,483 |
FHLB and FRB Stock | 3,496 | 7,308 |
Loans Receivable Held-for-sale, Net | 820 | 1,615 |
Interest Receivable | 2,191 | 2,199 |
Financial liabilities | ' | ' |
Deposits | 887,056 | 858,970 |
Borrowed funds | 65,642 | 59,021 |
Interest Payable | 8,732 | 6,427 |
Fair value [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Financial assets | ' | ' |
Loans, net | 632,536 | 592,504 |
Mortgage Servicing Rights | $990 | $884 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
EARNINGS PER SHARE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $2,044 | $1,887 | $720 | $1,731 | ($5,058) | ($6,521) | ($967) | ($1,165) | $6,382 | ($13,711) | ($335) |
Basic weighted-average number of common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 16,458,353 | 16,442,160 | 16,439,508 |
Plus: Common share equivalents (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Diluted weighted-average number of common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 16,458,353 | 16,442,160 | 16,439,508 |
Loss per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.13 | $0.11 | $0.04 | $0.11 | ($0.30) | ($0.40) | ($0.06) | ($0.07) | $0.39 | ($0.83) | ($0.02) |
Diluted (in dollars per share) | $0.13 | $0.11 | $0.04 | $0.11 | ($0.30) | ($0.40) | ($0.06) | ($0.07) | $0.39 | ($0.83) | ($0.02) |
EARNINGS_PER_SHARE_Details_Tex
EARNINGS PER SHARE (Details Textual) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 82,598 | 129,170 | 188,193 |
OTHER_COMPREHENSIVE_INCOME_Det
OTHER COMPREHENSIVE INCOME (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Taxes | $982 | ($614) | $1,467 |
Net of tax amount | -1,905 | 1,194 | -2,849 |
Gain On Sale Of Securities [Member] | ' | ' | ' |
Reclassification adjustment for net (gains) losses reclassified into net income | -2,887 | 1,808 | -4,316 |
Tax Expense [Member] | ' | ' | ' |
Taxes | 982 | -614 | 1,467 |
Net Of Tax [Member] | ' | ' | ' |
Net of tax amount | ($1,905) | $1,194 | ($2,849) |
OTHER_COMPREHENSIVE_INCOME_Det1
OTHER COMPREHENSIVE INCOME (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Beginning balance | $6,698 | ($3,967) | ($12,143) |
Other comprehensive (loss) income before reclassifications | -7,885 | 9,471 | 9,933 |
Noncredit-related gains on OTTI securities not expected to be sold | 0 | 0 | 1,092 |
Amounts reclassified from accumulated other comprehensive (loss) income | -1,905 | 1,194 | -2,849 |
Net other comprehensive (loss) income during the period | -9,790 | 10,665 | 8,176 |
Ending balance | ($3,092) | $6,698 | ($3,967) |
CONDENSED_FINANCIAL_INFORMATIO2
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Other assets | $10,752 | $13,627 | ' | ' |
Total assets | 1,003,808 | 968,274 | ' | ' |
Liabilities and Shareholders' Equity | ' | ' | ' | ' |
Junior subordinated debentures | 10,310 | 10,310 | ' | ' |
Subordinated debentures | 25,000 | 25,000 | ' | ' |
Accrued interest payable | 8,732 | 6,427 | ' | ' |
Other liabilities | 14,367 | 16,406 | ' | ' |
Shareholders' equity | 33,578 | 36,925 | 39,925 | 32,055 |
Total liabilities and shareholders’ equity | 1,003,808 | 968,274 | ' | ' |
Parent company | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash | 254 | 355 | ' | ' |
Investment in statutory trust | 364 | 358 | ' | ' |
Investments in subsidiaries (equity method) | 78,995 | 77,301 | ' | ' |
Other assets | 107 | 46 | ' | ' |
Total assets | 79,720 | 78,060 | ' | ' |
Liabilities and Shareholders' Equity | ' | ' | ' | ' |
Junior subordinated debentures | 10,310 | 10,310 | ' | ' |
Subordinated debentures | 25,000 | 25,000 | ' | ' |
Accrued interest payable | 8,307 | 5,822 | ' | ' |
Other liabilities | 2,525 | 3 | ' | ' |
Shareholders' equity | 33,578 | 36,925 | ' | ' |
Total liabilities and shareholders’ equity | $79,720 | $78,060 | ' | ' |
CONDENSED_FINANCIAL_INFORMATIO3
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in trust | ' | ' | ' | ' | ' | ' | ' | ' | $6 | $7 | $4 |
Expense | 1,689 | 1,812 | 1,818 | 1,857 | 2,096 | 2,206 | 2,343 | 2,573 | ' | ' | ' |
Net income (loss) | 2,044 | 1,887 | 720 | 1,731 | -5,058 | -6,521 | -967 | -1,165 | 6,382 | -13,711 | -335 |
Parent company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in Undistributed (loss) income of Subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 11,484 | -11,206 | 2,248 |
Equity in trust | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 7 | 4 |
Total income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 11,490 | -11,199 | 2,252 |
Expense | ' | ' | ' | ' | ' | ' | ' | ' | 5,108 | 2,512 | 2,587 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $6,382 | ($13,711) | ($335) |
CONDENSED_FINANCIAL_INFORMATIO4
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $2,044 | $1,887 | $720 | $1,731 | ($5,058) | ($6,521) | ($967) | ($1,165) | $6,382 | ($13,711) | ($335) |
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in trust | ' | ' | ' | ' | ' | ' | ' | ' | -6 | -7 | -4 |
Increase in accrued interest payable | ' | ' | ' | ' | ' | ' | ' | ' | 2,305 | 2,126 | 1,538 |
Increase in other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 1,713 | 12 | 569 |
Net cash (used in) provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 18,434 | -11,044 | 3,294 |
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash used in investing activities | ' | ' | ' | ' | ' | ' | ' | ' | -68,764 | 89,860 | 170,151 |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock, net of stock issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 29 |
Net cash provided by financing activities | ' | ' | ' | ' | ' | ' | ' | ' | 38,615 | -132,191 | -79,304 |
(Decrease) increase in cash | ' | ' | ' | ' | ' | ' | ' | ' | -11,715 | -53,375 | 94,141 |
Cash & cash equivalents at beginning of year | ' | ' | ' | 115,271 | ' | ' | ' | 168,646 | 115,271 | 168,646 | 74,505 |
Cash & cash equivalents at end of year | 103,556 | ' | ' | ' | 115,271 | ' | ' | ' | 103,556 | 115,271 | 168,646 |
Parent company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 6,382 | -13,711 | -335 |
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in undistributed (income) loss of subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | -11,484 | 11,206 | -2,248 |
Equity in trust | ' | ' | ' | ' | ' | ' | ' | ' | -6 | -7 | -4 |
Increase in accrued interest payable | ' | ' | ' | ' | ' | ' | ' | ' | 2,485 | 2,512 | 2,486 |
Increase in other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 2,522 | 2 | 0 |
Net cash (used in) provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | -101 | 2 | -101 |
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in capital of subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -3,000 |
Net cash used in investing activities | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -3,000 |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock, net of stock issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 29 |
Net cash provided by financing activities | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 29 |
(Decrease) increase in cash | ' | ' | ' | ' | ' | ' | ' | ' | -101 | 2 | -3,072 |
Cash & cash equivalents at beginning of year | ' | ' | ' | 355 | ' | ' | ' | 353 | 355 | 353 | 3,425 |
Cash & cash equivalents at end of year | $254 | ' | ' | ' | $355 | ' | ' | ' | $254 | $355 | $353 |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | $8,387 | $8,189 | $8,167 | $8,210 | $8,874 | $8,985 | $9,424 | $9,744 | $32,953 | $37,027 | $42,936 |
Interest expense | 1,689 | 1,812 | 1,818 | 1,857 | 2,096 | 2,206 | 2,343 | 2,573 | ' | ' | ' |
Net interest income | 6,698 | 6,377 | 6,349 | 6,353 | 6,778 | 6,779 | 7,081 | 7,171 | 25,777 | 27,809 | 29,069 |
Provision (credit) for loan and lease losses | -3,885 | -1,159 | -2 | -1,224 | 689 | 3,792 | -280 | -136 | -6,270 | 4,065 | 523 |
Net interest income after (credit) provision for loan and lease losses | 10,583 | 7,536 | 6,351 | 7,577 | 6,089 | 2,987 | 7,361 | 7,307 | 32,047 | 23,744 | 28,546 |
Non-interest income | 2,128 | 2,415 | 2,281 | 2,459 | -370 | 1,659 | 1,544 | 1,450 | 9,283 | 4,283 | 12,949 |
Non-interest expense | 10,667 | 8,064 | 7,912 | 8,305 | 10,777 | 11,167 | 9,872 | 9,922 | 34,948 | 41,738 | 41,830 |
Income (loss) before income taxes | 2,044 | 1,887 | 720 | 1,731 | -5,058 | -6,521 | -967 | -1,165 | 6,382 | -13,711 | -335 |
Provision for income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net income (loss) | $2,044 | $1,887 | $720 | $1,731 | ($5,058) | ($6,521) | ($967) | ($1,165) | $6,382 | ($13,711) | ($335) |
Income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.13 | $0.11 | $0.04 | $0.11 | ($0.30) | ($0.40) | ($0.06) | ($0.07) | $0.39 | ($0.83) | ($0.02) |
Diluted (in dollars per share) | $0.13 | $0.11 | $0.04 | $0.11 | ($0.30) | ($0.40) | ($0.06) | ($0.07) | $0.39 | ($0.83) | ($0.02) |