Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'WAYNE SAVINGS BANCSHARES INC /DE/ | ' |
Entity Central Index Key | '0001036030 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Par Value Per Share | $0.10 | ' |
Entity Common Stock, Shares Outstanding | ' | 2,885,999 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $3,183 | $7,303 |
Interest-bearing deposits | 4,819 | 4,752 |
Cash and cash equivalents | 8,002 | 12,055 |
Available-for-sale securities | 100,884 | 111,518 |
Held-to-maturity securities | 6,646 | 3,748 |
Loans, net of allowance for loan losses of $3,042 and $3,328 at September 30, 2013 and December 31, 2012, respectively | 257,979 | 247,849 |
Premises and equipment | 6,788 | 7,088 |
Federal Home Loan Bank stock | 5,025 | 5,025 |
Foreclosed assets held for sale, net | 38 | 318 |
Accrued interest receivable | 1,371 | 1,228 |
Bank-owned life insurance | 8,934 | 8,723 |
Goodwill | 1,719 | 1,719 |
Other intangible assets | 60 | 128 |
Prepaid Federal Deposit Insurance Corporation premiums | ' | 596 |
Other assets | 2,113 | 1,944 |
Prepaid federal income taxes | 131 | 178 |
Total assets | 399,690 | 402,117 |
Deposits | ' | ' |
Demand | 79,777 | 80,668 |
Savings and money market | 119,424 | 112,229 |
Time | 127,414 | 134,840 |
Total deposits | 326,615 | 327,737 |
Other short-term borrowings | 6,516 | 7,077 |
Federal Home Loan Bank advances | 22,957 | 21,217 |
Interest payable and other liabilities | 4,639 | 5,173 |
Deferred federal income taxes | 496 | 1,128 |
Total liabilities | 361,223 | 362,332 |
Commitments and Contingencies | ' | ' |
Stockholders' Equity | ' | ' |
Preferred stock, 500,000 shares of $.10 par value authorized; no shares issued | ' | ' |
Common stock, $.10 par value; authorized 9,000,000 shares; 3,978,731 shares issued | 398 | 398 |
Additional paid-in capital | 35,976 | 35,975 |
Retained earnings | 18,488 | 17,567 |
Shares acquired by ESOP | -511 | -572 |
Accumulated other comprehensive income | -187 | 1,340 |
Treasury stock, at cost - 1,092,732 and 1,017,385 shares at September 30, 2013 and December 31, 2012, respectively | -15,697 | -14,923 |
Total stockholders' equity | 38,467 | 39,785 |
Total liabilities and stockholders' equity | $399,690 | $402,117 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for loan losses | $3,042 | $3,328 |
Preferred stock, par value | $0.10 | $0.10 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.10 | $0.10 |
Common stock, shares authorized | 9,000,000 | 9,000,000 |
Common stock, shares issued | 3,978,731 | 3,978,731 |
Treasury stock, shares | 1,092,732 | 1,017,385 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest and Dividend Income | ' | ' | ' | ' |
Loans | $2,874 | $2,964 | $8,608 | $8,895 |
Securities | 633 | 788 | 1,921 | 2,592 |
Dividends on Federal Home Loan Bank stock and other | 54 | 55 | 165 | 171 |
Total interest and dividend income | 3,561 | 3,807 | 10,694 | 11,658 |
Interest Expense | ' | ' | ' | ' |
Deposits | 417 | 500 | 1,283 | 1,654 |
Other short term borrowings | 3 | 3 | 8 | 8 |
Federal Home Loan Bank advances | 155 | 165 | 460 | 515 |
Total interest expense | 575 | 668 | 1,751 | 2,177 |
Net Interest Income | 2,986 | 3,139 | 8,943 | 9,481 |
Provision (Credit) for Loan Losses | 76 | 225 | -55 | 618 |
Net Interest Income After Provision (Credit) for Loan Losses | 2,910 | 2,914 | 8,998 | 8,863 |
Noninterest Income | ' | ' | ' | ' |
Gain on loan sales | 7 | 108 | 80 | 203 |
Gain (Loss) on sale of foreclosed assets held for sale | -11 | ' | 6 | -13 |
Trust income | ' | 62 | ' | 227 |
Earnings on bank-owned life insurance | 74 | 75 | 221 | 223 |
Service fees, charges and other operating | 324 | 271 | 872 | 824 |
Total noninterest income | 394 | 516 | 1,179 | 1,464 |
Noninterest Expense | ' | ' | ' | ' |
Salaries and employee benefits | 1,484 | 1,532 | 4,516 | 5,061 |
Net occupancy and equipment expense | 508 | 468 | 1,462 | 1,421 |
Federal deposit insurance premiums | 66 | 72 | 206 | 225 |
Franchise taxes | 100 | 100 | 300 | 301 |
Provision for impairment on foreclosed assets held for sale | 26 | 11 | 26 | 46 |
Amortization of intangible assets | 23 | 23 | 68 | 68 |
Other | 438 | 634 | 1,460 | 1,705 |
Total noninterest expense | 2,645 | 2,840 | 8,038 | 8,827 |
Income Before Federal Income Taxes | 659 | 590 | 2,139 | 1,500 |
Provision for Federal Income Taxes | 151 | 125 | 562 | 259 |
Net Income | 508 | 465 | 1,577 | 1,241 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Unrealized gains (losses) on available-for-sale securities | -262 | 170 | -2,314 | 166 |
Tax benefit (expense) | 89 | -58 | 787 | -58 |
Other comprehensive income (loss) | -173 | 112 | -1,527 | 108 |
Total comprehensive income | $335 | $577 | $50 | $1,349 |
Basic Earnings Per Share | $0.18 | $0.16 | $0.55 | $0.42 |
Diluted Earnings Per Share | $0.18 | $0.16 | $0.55 | $0.42 |
Dividends Per Share | $0.08 | $0.07 | $0.23 | $0.20 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities | ' | ' |
Net income | $1,577 | $1,241 |
Items not requiring (providing) cash | ' | ' |
Depreciation and amortization | 442 | 411 |
Provision (credit) for loan losses | -55 | 618 |
Amortization of premiums and discounts on securities | 1,405 | 1,565 |
Amortization of mortgage servicing rights | 37 | 38 |
Amortization of deferred loan origination fees | -77 | -92 |
Amortization of intangible assets | 68 | 68 |
Increase in value of bank owned life insurance | -211 | -215 |
Amortization expense of stock benefit plan | 61 | 53 |
Provision for impairment on foreclosed assets held for sale | 26 | 46 |
Loss (gain) on sale of foreclosed assets held for sale | -6 | 13 |
Net gains on sale of loans | -80 | -203 |
Proceeds from sale of loans in secondary market | 6,581 | 4,530 |
Origination of loans for sale in the secondary market | -6,501 | -4,327 |
Deferred income taxes | 155 | 291 |
Changes in | ' | ' |
Accrued interest receivable | -143 | -223 |
Prepaid federal deposit insurance premiums | 529 | 207 |
Other assets | -153 | -466 |
Interest payable and other liabilities | -65 | 125 |
Net cash provided by operating activities | 3,590 | 3,680 |
Investing Activities | ' | ' |
Purchase of available-for-sale securities | -24,131 | -32,049 |
Purchase of held-to-maturity securities | -2,988 | -867 |
Proceeds from maturities and paydowns of available-for-sale securities | 31,058 | 38,042 |
Proceeds from maturities and paydowns of held-to-maturity securities | 78 | 58 |
Net change in loans | -10,048 | -8,217 |
Purchase of bank-owned life insurance | ' | -1,243 |
Purchase of premises and equipment | -142 | -400 |
Proceeds from the sale of foreclosed assets | 311 | 1,165 |
Net cash used in investing activities | -5,862 | -3,511 |
Financing Activities | ' | ' |
Net change in deposits | -1,122 | -6,475 |
Net change in other short-term borrowings | -561 | 1,942 |
Proceeds from Federal Home Loan Bank and Federal Reserve advances | 16,490 | 14,710 |
Repayments of Federal Home Loan Bank and Federal Reserve advances | -14,750 | -20,120 |
Advances by borrowers for taxes and insurance | -408 | -305 |
Dividends on common stock | -656 | -557 |
Treasury stock purchases | -774 | -92 |
Net cash used in financing activities | -1,781 | -10,897 |
Decrease in Cash and Cash Equivalents | -4,053 | -10,728 |
Cash and Cash Equivalents, Beginning of Period | 12,055 | 19,816 |
Cash and Cash Equivalents, End of Period | 8,002 | 9,088 |
Supplemental Cash Flows Information: | ' | ' |
Interest paid on deposits and borrowings | 1,749 | 2,189 |
Federal income taxes paid | 325 | ' |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | ' | ' |
Transfers from loans to foreclosed assets held for sale | 50 | ' |
Recognition of mortgage servicing rights | 65 | ' |
Dividends payable | $231 | $209 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |
Sep. 30, 2013 | ||
Basis Of Presentation | ' | |
Basis of Presentation | ' | |
Note 1: | Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012, were prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Wayne Savings Bancshares, Inc. (the “Company”) included in the Annual Report on Form 10-K for the year ended December 31, 2012. Reference is made to the accounting policies of the Company described in the Notes to the Consolidated Financial Statements contained in its Annual Report on Form 10-K. | ||
In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the unaudited financial statements have been included. The results of operations for the three and nine months ended September 30, 2013, are not necessarily indicative of the results which may be expected for the full year. The condensed consolidated balance sheet of the Company as of December 31, 2012, has been derived from the consolidated balance sheet of the Company as of that date. | ||
Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Principles_of_Consolidation
Principles of Consolidation | 9 Months Ended | |
Sep. 30, 2013 | ||
Principles Of Consolidation | ' | |
Principles of Consolidation | ' | |
Note 2: | Principles of Consolidation | |
The accompanying condensed consolidated financial statements include Wayne Savings Bancshares, Inc. and the Company’s wholly-owned subsidiary, Wayne Savings Community Bank (“Wayne Savings” or the “Bank”). | ||
Wayne Savings has eleven full-service offices in Wayne, Holmes, Ashland, Medina and Stark counties. All significant intercompany transactions and balances have been eliminated in the consolidation. |
Securities
Securities | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
SecuritiesAbstract | ' | ||||||||||||||||||||||||
Securities | ' | ||||||||||||||||||||||||
Note 3: | Securities | ||||||||||||||||||||||||
The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows: | |||||||||||||||||||||||||
Amortized | Gross | Gross | Approximate | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||
September 30, 2013: | |||||||||||||||||||||||||
U.S. government agencies | $ | 139 | $ | 1 | $ | — | $ | 140 | |||||||||||||||||
Mortgage-backed securities of | 76,693 | 1,317 | 573 | 77,437 | |||||||||||||||||||||
government sponsored entities | |||||||||||||||||||||||||
Private-label collateralized | 757 | 35 | 792 | ||||||||||||||||||||||
mortgage obligations | |||||||||||||||||||||||||
State and political subdivisions | 22,110 | 587 | 182 | 22,515 | |||||||||||||||||||||
Totals | $ | 99,699 | $ | 1,940 | $ | 755 | $ | 100,884 | |||||||||||||||||
Amortized | Gross | Gross | Approximate | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
U.S. government agencies | $ | 155 | $ | 1 | $ | 1 | $ | 155 | |||||||||||||||||
Mortgage-backed securities of | 83,956 | 1,979 | 105 | 85,830 | |||||||||||||||||||||
government sponsored entities | |||||||||||||||||||||||||
Private-label collateralized | 1,067 | 39 | — | 1,106 | |||||||||||||||||||||
mortgage obligations | |||||||||||||||||||||||||
State and political subdivisions | 22,842 | 1,587 | 2 | 24,427 | |||||||||||||||||||||
Totals | $ | 108,020 | $ | 3,606 | $ | 108 | $ | 111,518 | |||||||||||||||||
Amortized | Gross | Gross | Approximate | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Held-to-maturity Securities: | |||||||||||||||||||||||||
September 30, 2013: | |||||||||||||||||||||||||
U.S. government agencies | $ | 111 | $ | — | $ | — | $ | 111 | |||||||||||||||||
Mortgage-backed securities of | 1,407 | 11 | 2 | 1,416 | |||||||||||||||||||||
government sponsored entities | |||||||||||||||||||||||||
State and political subdivisions | 5,128 | — | 441 | 4,687 | |||||||||||||||||||||
Totals | $ | 6,646 | $ | 11 | $ | 443 | $ | 6,214 | |||||||||||||||||
Amortized | Gross | Gross | Approximate | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Held-to-maturity Securities: | |||||||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
U.S. government agencies | $ | 130 | $ | 1 | $ | — | $ | 131 | |||||||||||||||||
Mortgage-backed securities of | 1,469 | 45 | — | 1,514 | |||||||||||||||||||||
government sponsored entities | |||||||||||||||||||||||||
State and political subdivisions | 2,149 | — | 54 | 2,095 | |||||||||||||||||||||
Totals | $ | 3,748 | $ | 46 | $ | 54 | $ | 3,740 | |||||||||||||||||
Amortized cost and fair value of available-for-sale securities and held-to-maturity securities at September 30, 2013 by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
Available-for-sale | Held-to-maturity | ||||||||||||||||||||||||
Amortized | Fair Value | Amortized | Fair Value | ||||||||||||||||||||||
cost | cost | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
One to five years | $ | 3,183 | $ | 3,346 | $ | — | $ | — | |||||||||||||||||
Five to ten years | 4,055 | 4,109 | 2,637 | 2,490 | |||||||||||||||||||||
After ten years | 15,011 | 15,200 | 2,602 | 2,308 | |||||||||||||||||||||
22,249 | 22,655 | 5,239 | 4,798 | ||||||||||||||||||||||
Mortgage-backed securities of government sponsored entities | 76,693 | 77,437 | 1,407 | 1,416 | |||||||||||||||||||||
Private-label collateralized mortgage obligations | 757 | 792 | — | — | |||||||||||||||||||||
Totals | $ | 99,699 | $ | 100,884 | $ | 6,646 | $ | 6,214 | |||||||||||||||||
The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $57.5 million and $60.4 million at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||
Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at September 30, 2013 and December 31, 2012, was $44.6 million and $19.0 million, which represented approximately 42% and 17%, respectively, of the Company’s total aggregate amortized cost of the available-for-sale and held-to-maturity investment portfolios. These decreases resulted primarily from changes in market interest rates. | |||||||||||||||||||||||||
Based on an evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the decreases in fair value for these securities are temporary at September 30, 2013. | |||||||||||||||||||||||||
Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. | |||||||||||||||||||||||||
The following table shows the gross unrealized losses and fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Mortgage-backed securities of government sponsored entities | $ | 34,283 | $ | 575 | $ | — | $ | — | $ | 34,283 | $ | 575 | |||||||||||||
State and political subdivisions | 9,847 | 565 | 424 | 58 | 10,271 | 623 | |||||||||||||||||||
Total temporarily impaired securities | $ | 44,130 | $ | 1,140 | $ | 424 | $ | 58 | $ | 44,554 | $ | 1,198 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
U.S. government agencies | $ | — | $ | — | $ | 66 | $ | 1 | $ | 66 | $ | 1 | |||||||||||||
Mortgage-backed securities of government sponsored entities | 13,636 | 83 | 2,107 | 22 | 15,743 | 105 | |||||||||||||||||||
State and political subdivisions | 3,162 | 56 | — | — | 3,162 | 56 | |||||||||||||||||||
Total temporarily impaired securities | $ | 16,798 | $ | 139 | $ | 2,173 | $ | 23 | $ | 18,971 | $ | 162 | |||||||||||||
Credit_Quality_of_Loans_and_Al
Credit Quality of Loans and Allowance for Loan Losses | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Credit Quality Of Loans And Allowance For Loan Losses | ' | ||||||||||||||||||||||||||||
Credit Quality of Loans and Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||
Note 4: | Credit Quality of Loans and the Allowance for Loan Losses | ||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, chargeoffs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. | |||||||||||||||||||||||||||||
For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. | |||||||||||||||||||||||||||||
The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. Past due status is determined based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. | |||||||||||||||||||||||||||||
All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current for a period of six months and future payments are reasonably assured. | |||||||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||||
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | |||||||||||||||||||||||||||||
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | |||||||||||||||||||||||||||||
The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical chargeoff experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. | |||||||||||||||||||||||||||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogenous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. | |||||||||||||||||||||||||||||
The risk characteristics of each portfolio segment are as follows: | |||||||||||||||||||||||||||||
Residential Real Estate Loans | |||||||||||||||||||||||||||||
For residential mortgage loans that are secured by one-to-four family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in one-to-four family residences. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. | |||||||||||||||||||||||||||||
All Other Mortgage Loans | |||||||||||||||||||||||||||||
All other mortgage loans consist of residential construction loans, nonresidential real estate loans, land loans and multi-family real estate loans. | |||||||||||||||||||||||||||||
Residential construction loan proceeds are disbursed in increments as construction progresses and as inspections warrant. Construction loans are typically structured as permanent one-to-four family loans originated by the Company with a 12-month construction phase. Accordingly, upon completion of the construction phase, there is no change in interest rate or term to maturity of the original construction loan, nor is a new permanent loan originated. These loans are generally owner occupied and the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. | |||||||||||||||||||||||||||||
Nonresidential real estate loans are negotiated on a case by case basis. Loans secured by nonresidential real estate generally involve a greater degree of risk than one-to-four family residential mortgage loans and carry larger loan balances. This increased credit risk is a result of several factors, including the concentration of principal in a limited number of loans and borrowers, the effects of general economic conditions on income-producing properties, and the increased difficulty of evaluating and monitoring these types of loans. Furthermore, the repayment of loans secured by nonresidential real estate is typically dependent upon the successful operation of the related real estate project. If the cash flow from the project is reduced, the borrower’s ability to repay the loan may be impaired. | |||||||||||||||||||||||||||||
The Company also originates a limited number of land loans secured by individual improved and unimproved lots for future residential construction. In addition, the Company originates loans to commercial customers with land held as the collateral. | |||||||||||||||||||||||||||||
Multi-family real estate loans generally involve a greater degree of credit risk than one-to-four family residential mortgage loans and carry larger loan balances. This increased credit risk is a result of several factors, including the concentration of principal in a limited number of loans and borrowers, the effects of general economic conditions on income-producing properties, and the increased difficulty of evaluating and monitoring these types of loans. Furthermore, the repayment of loans secured by multi-family real estate is typically dependent upon the successful operation of the related real estate property. If the cash flow from the project is reduced, the borrower’s ability to repay the loan may be impaired. | |||||||||||||||||||||||||||||
Commercial Business Loans | |||||||||||||||||||||||||||||
Commercial business loans carry a higher degree of risk than one-to-four family residential loans. Such lending typically involves large loan balances concentrated in a single borrower or groups of related borrowers for rental or business properties. In addition, the payment experience on loans secured by income-producing properties is typically dependent on the success of the operation of the related project and thus is typically affected by adverse conditions in the real estate market and in the economy. The Company originates commercial loans generally in the $50,000 to $1,000,000 range with the majority of these loans being under $500,000. Commercial loans are generally underwritten based on the borrower’s ability to pay and assets such as buildings, land and equipment are taken as additional loan collateral. Each loan is evaluated for a level of risk and assigned a rating from “1” (the highest quality rating) to “7” (the lowest quality rating). | |||||||||||||||||||||||||||||
Consumer Loans | |||||||||||||||||||||||||||||
Consumer loans entail greater credit risk than residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by assets that depreciate rapidly, such as automobiles, mobile homes, boats, and recreational vehicles. In such cases, repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and the remaining deficiency often does not warrant further substantial collection efforts against the borrower. In particular, amounts realizable on the sale of repossessed automobiles may be significantly reduced based upon the condition of the automobiles and the lack of demand for used automobiles. | |||||||||||||||||||||||||||||
The following presents by portfolio segment, the activity in the allowance for loan losses for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||
Three months ended September 30, 2013 | One-to-four | All other | Commercial | Consumer loans | Total | ||||||||||||||||||||||||
family | mortgage loans | business loans | |||||||||||||||||||||||||||
residential | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,239 | $ | 1,557 | $ | 185 | $ | 6 | $ | 2,987 | |||||||||||||||||||
Provision charged to expense | (84 | ) | 150 | 16 | (6 | ) | 76 | ||||||||||||||||||||||
Losses charged off | (30 | ) | — | — | — | (30 | ) | ||||||||||||||||||||||
Recoveries | 8 | — | — | 1 | 9 | ||||||||||||||||||||||||
Ending balance | $ | 1,133 | $ | 1,707 | $ | 201 | $ | 1 | $ | 3,042 | |||||||||||||||||||
Three months ended September 30, 2012 | One-to-four | All other | Commercial | Consumer loans | Total | ||||||||||||||||||||||||
family | mortgage loans | business loans | |||||||||||||||||||||||||||
residential | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,082 | $ | 2,362 | $ | 143 | $ | 5 | $ | 3,592 | |||||||||||||||||||
Provision charged to expense | 92 | 117 | 14 | 2 | 225 | ||||||||||||||||||||||||
Losses charged off | (21 | ) | (1 | ) | — | — | (22 | ) | |||||||||||||||||||||
Recoveries | 2 | 1 | 14 | — | 17 | ||||||||||||||||||||||||
Ending balance | $ | 1,155 | $ | 2,479 | $ | 171 | $ | 7 | $ | 3,812 | |||||||||||||||||||
Nine months ended September 30, 2013 | One-to-four | All other | Commercial | Consumer loans | Total | ||||||||||||||||||||||||
family | mortgage loans | business loans | |||||||||||||||||||||||||||
residential | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,122 | $ | 1,925 | $ | 275 | $ | 6 | $ | 3,328 | |||||||||||||||||||
Provision (credit) charged to expense | 71 | (42 | ) | (76 | ) | (8 | ) | (55 | ) | ||||||||||||||||||||
Losses charged off | (68 | ) | (176 | ) | — | (2 | ) | (246 | ) | ||||||||||||||||||||
Recoveries | 8 | — | 2 | 5 | 15 | ||||||||||||||||||||||||
Ending balance | $ | 1,133 | $ | 1,707 | $ | 201 | $ | 1 | $ | 3,042 | |||||||||||||||||||
Nine months ended September 30, 2012 | One-to-four | All other | Commercial | Consumer loans | Total | ||||||||||||||||||||||||
family | mortgage loans | business loans | |||||||||||||||||||||||||||
residential | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,128 | $ | 2,547 | $ | 169 | $ | 10 | $ | 3,854 | |||||||||||||||||||
Provision charged to expense | 95 | 534 | (12 | ) | 1 | 618 | |||||||||||||||||||||||
Losses charged off | (109 | ) | (603 | ) | — | (4 | ) | (716 | ) | ||||||||||||||||||||
Recoveries | 41 | 1 | 14 | — | 56 | ||||||||||||||||||||||||
Ending balance | $ | 1,155 | $ | 2,479 | $ | 171 | $ | 7 | $ | 3,812 | |||||||||||||||||||
The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on the portfolio segment and impairment method as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||
30-Sep-13 | One-to-four | All other | Commercial | Consumer loans | Total | ||||||||||||||||||||||||
family | mortgage loans | business loans | |||||||||||||||||||||||||||
residential | |||||||||||||||||||||||||||||
Allowance Balances: | (In thousands) | ||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 355 | $ | 869 | $ | 69 | $ | — | $ | 1,293 | |||||||||||||||||||
Collectively evaluated for impairment | 778 | 838 | 132 | 1 | 1,749 | ||||||||||||||||||||||||
Total allowance for loan losses | $ | 1,133 | $ | 1,707 | $ | 201 | $ | 1 | $ | 3,042 | |||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,913 | $ | 4,727 | $ | 149 | $ | — | $ | 11,789 | |||||||||||||||||||
Collectively evaluated for impairment | 160,359 | 82,394 | 10,825 | 1,221 | 254,799 | ||||||||||||||||||||||||
Total balance | $ | 167,272 | $ | 87,121 | $ | 10,974 | $ | 1,221 | $ | 266,588 | |||||||||||||||||||
31-Dec-12 | One-to-four | All other | Commercial | Consumer | Total | ||||||||||||||||||||||||
family | mortgage loans | business loans | loans | ||||||||||||||||||||||||||
residential | |||||||||||||||||||||||||||||
Allowance Balances: | (In thousands) | ||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 248 | $ | 1,074 | $ | 100 | $ | — | $ | 1,422 | |||||||||||||||||||
Collectively evaluated for impairment | 874 | 851 | 175 | 6 | 1,906 | ||||||||||||||||||||||||
Total allowance for loan losses | $ | 1,122 | $ | 1,925 | $ | 275 | $ | 6 | $ | 3,328 | |||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,878 | $ | 5,837 | $ | 185 | $ | — | $ | 12,900 | |||||||||||||||||||
Collectively evaluated for impairment | 154,032 | 71,884 | 14,060 | 1,517 | 241,493 | ||||||||||||||||||||||||
Total balance | $ | 160,910 | $ | 77,721 | $ | 14,245 | $ | 1,517 | $ | 254,393 | |||||||||||||||||||
Total loans in the above tables do not include deferred loan origination fees of $687 and $569 or loans in process of $4.9 million and $2.6 million, respectively, for September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||
The following tables present the credit risk profile of the Bank’s loan portfolio based on rating category and payment activity as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||
30-Sep-13 | One-to-four | All other | Commercial | Consumer loans | |||||||||||||||||||||||||
family | mortgage | business loans | |||||||||||||||||||||||||||
residential | loans | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Rating * | |||||||||||||||||||||||||||||
Pass (Risk 1-4) | $ | 158,497 | $ | 80,341 | $ | 10,419 | $ | 1,219 | |||||||||||||||||||||
Special Mention (Risk 5) | 569 | 2,053 | 406 | — | |||||||||||||||||||||||||
Substandard (Risk 6) | 8,206 | 4,727 | 149 | 2 | |||||||||||||||||||||||||
Total | $ | 167,272 | $ | 87,121 | $ | 10,974 | $ | 1,221 | |||||||||||||||||||||
31-Dec-12 | One-to-four | All other | Commercial | Consumer loans | |||||||||||||||||||||||||
family | mortgage | business loans | |||||||||||||||||||||||||||
residential | loans | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Rating * | |||||||||||||||||||||||||||||
Pass (Risk 1-4) | $ | 151,749 | $ | 68,949 | $ | 14,034 | $ | 1,513 | |||||||||||||||||||||
Special Mention (Risk 5) | 708 | 2,934 | 26 | — | |||||||||||||||||||||||||
Substandard (Risk 6) | 8,453 | 5,838 | 185 | 4 | |||||||||||||||||||||||||
Total | $ | 160,910 | $ | 77,721 | $ | 14,245 | $ | 1,517 | |||||||||||||||||||||
* Ratings are generally assigned to consumer and residential mortgage loans on a “pass” or “fail” basis, where “fail” results in a substandard classification. Commercial loans, both secured by real estate or other assets or unsecured, are analyzed in accordance with an analytical matrix codified in the Bank’s loan policy that produces a risk rating as described below. | |||||||||||||||||||||||||||||
Risk 1 is unquestioned credit quality for any credit product. Loans are secured by cash and near cash collateral with immediate access to proceeds. | |||||||||||||||||||||||||||||
Risk 2 is very low risk with strong credit and repayment sources. Borrower is well capitalized in a stable industry, financial ratios exceed peers and financial trends are positive. | |||||||||||||||||||||||||||||
Risk 3 is very favorable risk with highly adequate credit strength and repayment sources. Borrower has good overall financial condition and adequate capitalization. | |||||||||||||||||||||||||||||
Risk 4 is acceptable, average risk with adequate credit strength and repayment sources. Collateral positions must be within Bank policies. | |||||||||||||||||||||||||||||
Risk 5 or “Special Mention,” also known as “watch,” has potential weakness that deserves Management’s close attention. This risk includes loans where the borrower has developed financial uncertainties or the borrower is resolving the financial uncertainties. Bank credits have been secured or negotiations will be ongoing to secure further collateral. | |||||||||||||||||||||||||||||
Risk 6 or “Substandard” loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that exhibit a weakening of the borrower’s credit strength with limited credit access and all nonperforming loans. | |||||||||||||||||||||||||||||
Risk 7 or “Doubtful” loans are significantly under protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that are likely to experience a loss of some magnitude, but where the amount of the expected loss is not known with enough certainty to allow for an accurate calculation of a loss amount for charge off. This category is considered to be temporary until a chargeoff amount can be reasonably determined. | |||||||||||||||||||||||||||||
The following tables present the Bank’s loan portfolio aging analysis for September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||
30-Sep-13 | 30-59 | 60-89 Days | Greater | Total Past | Current | Total Loans | Total Loans | ||||||||||||||||||||||
Days Past | Past Due | Than 90 | Due | Receivable | > 90 Days | ||||||||||||||||||||||||
Due | Days | and | |||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 102 | $ | 229 | $ | 869 | $ | 1,200 | $ | 166,072 | $ | 167,272 | $ | — | |||||||||||||||
All other mortgage loans | — | — | 815 | 815 | 86,306 | 87,121 | — | ||||||||||||||||||||||
Commercial business loans | 70 | — | — | 70 | 10,904 | 10,974 | — | ||||||||||||||||||||||
Consumer loans | — | — | — | — | 1,221 | 1,221 | — | ||||||||||||||||||||||
Total | $ | 172 | $ | 229 | $ | 1,684 | $ | 2,085 | $ | 264,503 | $ | 266,588 | $ | — | |||||||||||||||
31-Dec-12 | 30-59 | 60-89 Days | Greater | Total Past | Current | Total Loans | Total Loans | ||||||||||||||||||||||
Days Past | Past Due | Than 90 | Due | Receivable | > 90 Days | ||||||||||||||||||||||||
Due | Days | and | |||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 1,049 | $ | 339 | $ | 1,190 | $ | 2,578 | $ | 158,332 | $ | 160,910 | $ | — | |||||||||||||||
All other mortgage loans | 1,544 | — | 1,309 | 2,853 | 74,868 | 77,721 | — | ||||||||||||||||||||||
Commercial business loans | — | — | — | — | 14,245 | 14,245 | — | ||||||||||||||||||||||
Consumer loans | 1 | 2 | 2 | 5 | 1,512 | 1,517 | — | ||||||||||||||||||||||
Total | $ | 2,594 | $ | 341 | $ | 2,501 | $ | 5,436 | $ | 248,957 | $ | 254,393 | $ | — | |||||||||||||||
Nonaccrual loans were comprised of the following at: | |||||||||||||||||||||||||||||
Nonaccrual loans | 30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 2,238 | $ | 2,097 | |||||||||||||||||||||||||
Nonresidential real estate loans | 1,881 | 3,123 | |||||||||||||||||||||||||||
All other mortgage loans | — | — | |||||||||||||||||||||||||||
Commercial business loans | — | 32 | |||||||||||||||||||||||||||
Consumer loans | 2 | 4 | |||||||||||||||||||||||||||
Total | $ | 4,121 | $ | 5,256 | |||||||||||||||||||||||||
A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Bank will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Information with respect to the Company’s impaired loans at September 30, 2013 and December 31, 2012 in combination with activity for the three and nine months ended September 30, 2013 and 2012 is presented below: | |||||||||||||||||||||||||||||
As of September 30, 2013 | Three months ended | Nine months ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||||||||||
Recorded | Unpaid | Specific | Average | Interest | Average | Interest | |||||||||||||||||||||||
Balance | Principal | Allowance | Investment | Income | Investment | Income | |||||||||||||||||||||||
Balance | in Impaired | Recognized | in Impaired | Recognized | |||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 5,602 | $ | 5,602 | $ | — | $ | 5,785 | $ | 84 | $ | 5,702 | $ | 222 | |||||||||||||||
All other mortgage loans | 2,225 | 2,225 | — | 2,276 | 23 | 2,427 | 72 | ||||||||||||||||||||||
Commercial business loans | 80 | 80 | — | 81 | 1 | 83 | 2 | ||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||
One-to-four family residential loans | 1,311 | 1,311 | 355 | 1,208 | 7 | 1,266 | 22 | ||||||||||||||||||||||
All other mortgage loans | 2,502 | 3,097 | 869 | 2,504 | 20 | 2,730 | 56 | ||||||||||||||||||||||
Commercial business loans | 69 | 69 | 69 | 73 | — | 83 | 2 | ||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 6,913 | $ | 6,913 | $ | 355 | $ | 6,993 | $ | 91 | $ | 6,968 | $ | 244 | |||||||||||||||
All other mortgage loans | 4,727 | 5,322 | 869 | 4,780 | 43 | 5,157 | 128 | ||||||||||||||||||||||
Commercial business loans | 149 | 149 | 69 | 154 | 1 | 166 | 4 | ||||||||||||||||||||||
$ | 11,789 | $ | 12,384 | $ | 1,293 | $ | 11,927 | $ | 135 | $ | 12,291 | $ | 376 | ||||||||||||||||
As of December 31, 2012 | Three months ended | Nine months ended | |||||||||||||||||||||||||||
30-Sep-12 | 30-Sep-12 | ||||||||||||||||||||||||||||
Recorded | Unpaid | Specific | Average | Interest | Average | Interest | |||||||||||||||||||||||
Balance | Principal | Allowance | Investment | Income | Investment | Income | |||||||||||||||||||||||
Balance | in impaired | Recognized | in Impaired | Recognized | |||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 5,587 | $ | 5,587 | $ | — | $ | 3,024 | $ | 21 | $ | 3,144 | $ | 90 | |||||||||||||||
All other mortgage loans | 2,781 | 2,781 | — | 2,324 | 3 | 2,179 | 58 | ||||||||||||||||||||||
Commercial business loans | 85 | 85 | — | — | — | — | — | ||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||
One-to-four family residential loans | 1,291 | 1,291 | 248 | 1,210 | 2 | 889 | 35 | ||||||||||||||||||||||
All other mortgage loans | 3,056 | 3,652 | 1,074 | 4,723 | 25 | 4,998 | 64 | ||||||||||||||||||||||
Commercial business loans | 100 | 100 | 100 | 43 | 1 | 66 | 1 | ||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 6,878 | $ | 6,878 | $ | 248 | $ | 4,234 | $ | 23 | $ | 4,033 | $ | 125 | |||||||||||||||
All other mortgage loans | 5,837 | 6,433 | 1,074 | 7,047 | 28 | 7,177 | 122 | ||||||||||||||||||||||
Commercial business loans | 185 | 185 | 100 | 43 | 1 | 66 | 1 | ||||||||||||||||||||||
$ | 12,900 | $ | 13,496 | $ | 1,422 | $ | 11,324 | $ | 52 | $ | 11,276 | $ | 248 | ||||||||||||||||
The interest income recognized in the above tables reflects interest income recognized and is not materially different from the cash basis method. | |||||||||||||||||||||||||||||
All the TDR classifications listed below occurred as concessions were granted to borrowers experiencing financial difficulties. In the September 30, 2013 quarter, concessions made to borrowers included exceptions to loan policy including high loan to value ratios, no private mortgage insurance (“PMI”) and high debt to income ratios. The TDR classifications that occurred in the 2013 year-to-date period, included those concessions listed above for the current period quarter and an effective interest rate below the market interest rate of similar debt, and an extension of the maturity date. The TDR classifications which occurred in the September 30, 2012 year-to-date period were both due to an effective interest rate below the market interest rate of similar debt. Each TDR has been individually evaluated for impairment with the appropriate specific valuation allowance included in the allowance for loan losses calculation. There were no TDR classifications which defaulted during the three or nine month periods ended September 30, 2013 and 2012. The Company considers TDRs that become 90 days or more past due under modified terms as subsequently defaulted. | |||||||||||||||||||||||||||||
Quarter-to-Date | Year-to-Date | ||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number of | Pre- | Post- | Number of | Pre- | Post- | |||||||||||||||||||||||
loans | modification | modification | loans | modification | modification | ||||||||||||||||||||||||
Unpaid | Unpaid | Unpaid | Unpaid | ||||||||||||||||||||||||||
Principal | Principal | Principal | Principal | ||||||||||||||||||||||||||
Balance | Balance | Balance | Balance | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||
One-to-four family residential loans | 4 | $ | 493 | $ | 517 | 6 | $ | 909 | $ | 933 | |||||||||||||||||||
All other mortgage loans | — | — | — | 1 | 576 | 576 | |||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||
One-to-four family residential loans | — | $ | — | $ | — | 2 | $ | 538 | $ | 538 | |||||||||||||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Goodwill And Intangible Assets | ' | ||||||||
Goodwill and Intangible Assets | ' | ||||||||
Note 5: | Goodwill and Intangible Assets | ||||||||
The composition of goodwill and other intangible assets, all of which is core deposit intangible, at September 30, 2013 and December 31, 2012: | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
(In thousands) | |||||||||
Goodwill | $ | 1,719 | $ | 1,719 | |||||
Other intangible assets – gross | 974 | 974 | |||||||
Other intangible assets – amortization | (914 | ) | (846 | ) | |||||
Total | $ | 1,779 | $ | 1,847 | |||||
The Company recorded amortization relative to intangible assets totaling $23,000 and $68,000 for both of the three and nine month periods ended September 30, 2013, and 2012 respectively. The Company anticipates $90,000 of amortization for 2013 and $38,000 for 2014. Such amortization is derived using the straight line method for the core deposit asset over ten years. The Company is required to annually test goodwill and other intangible assets for impairment. The Company’s testing of goodwill and other intangible assets at November 30, 2012 indicated there was no impairment in the carrying value of these assets. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Note 6: | Earnings Per Share | ||||||||||||||||
Basic earnings per common share is computed based upon the weighted-average number of common shares outstanding during the period, less shares in the Company’s Employee Stock Ownership Plan (“ESOP”) that are unallocated and not committed to be released. Diluted earnings per common share include the dilutive effect of all additional potential common shares issuable under the Company’s stock option plan. The computations are as follows: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted-average common shares outstanding (basic) | 2,841,213 | 2,935,469 | 2,871,754 | 2,937,589 | |||||||||||||
Dilutive effect of assumed exercise of stock options | — | — | — | — | |||||||||||||
Weighted-average common shares outstanding (diluted) | 2,841,213 | 2,935,469 | 2,871,754 | 2,937,589 | |||||||||||||
None of the outstanding options were included in the diluted earnings per share calculation for the three and nine months ended September 30, 2013 and 2012, as the average fair value of the shares was less than the option exercise prices. |
Stock_Option_Plan
Stock Option Plan | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stock Option Plan | ' | ||||||||||||||||
Stock Option Plan | ' | ||||||||||||||||
Note 7: | Stock Option Plan | ||||||||||||||||
In fiscal 2004, the Company adopted a Stock Option Plan that provided for the issuance of 142,857 incentive options and 61,224 non-incentive options with respect to authorized common stock. At September 30, 2013, all options under the 2004 Plan were expired. The Company recognized compensation expense related to stock option awards based on the fair value of the option award at the grant date. Compensation cost was recognized over the vesting period. There were no options granted during the three and nine months ended September 30, 2013 and 2012. There was no compensation expense recognized for the stock option plan during the three and nine months ended September 30, 2013 and 2012, as all options were fully vested prior to these periods. | |||||||||||||||||
A summary of the status of the Company’s stock option plan as of and for the nine months ended September 30, 2013, and for the year ended December 31, 2012 is presented below: | |||||||||||||||||
Nine months ended | Year ended | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||
average | average | ||||||||||||||||
exercise price | exercise price | ||||||||||||||||
Outstanding at beginning of period | 58,908 | $ | 13.95 | 63,408 | $ | 13.95 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited | 17,704 | $ | 13.95 | 4,500 | $ | 13.95 | |||||||||||
Expired | 41,204 | $ | 13.95 | — | — | ||||||||||||
Outstanding at end of period | — | $ | — | 58,908 | $ | 13.95 | |||||||||||
Options exercisable at period-end | — | $ | — | 58,908 | $ | 13.95 | |||||||||||
Regulatory_Matters
Regulatory Matters | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Regulatory Matters | ' | ||||||||||||||||||||||||
Regulatory Matters | ' | ||||||||||||||||||||||||
Note 8: | Regulatory Matters | ||||||||||||||||||||||||
The Bank 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 effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. | |||||||||||||||||||||||||
The Bank must give notice to the Federal Reserve Bank of Cleveland prior to declaring a dividend to the Company and is subject to existing regulatory guidance where, in general, a dividend is permissible without regulatory approval if the institution is considered to be “well capitalized” and the dividend does not exceed current year-to-date net income plus the change in retained earnings for the previous two calendar years. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Tier I capital to average assets, of Tier 1 capital to risk-weighted assets, and of Total Risk-based capital to risk-weighted assets, all as defined in the regulations. Management believes, as of September 30, 2013, that the Bank met all capital adequacy requirements to which it is subject. | |||||||||||||||||||||||||
As of September 30, 2013, based on the computations for the call report the Bank is classified as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain capital ratios as set forth in the table below. There are no conditions or events since September 30, 2013 that management believes have changed the Bank’s capital classification. | |||||||||||||||||||||||||
The Bank’s actual capital amounts and ratios as of September 30, 2013 and December 31, 2012 are presented in the following table. | |||||||||||||||||||||||||
Actual | For Capital Adequacy | To Be well Capitalized | |||||||||||||||||||||||
Purposes | Under Prompt | ||||||||||||||||||||||||
Corrective Action | |||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||
Tier I Capital to average assets | $ | 34,768 | 8.7 | % | $ | 15,970 | 4 | % | $ | 19,962 | 5 | % | |||||||||||||
Tier I Capital to risk- weighted assets | 34,768 | 14.2 | % | 9,773 | 4 | % | 14,660 | 6 | % | ||||||||||||||||
Total Risk-based capital to risk-weighted assets | 37,810 | 15.5 | % | 19,546 | 8 | % | 24,433 | 10 | % | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Tier I Capital to average assets | $ | 34,774 | 8.7 | % | $ | 16,069 | 4 | % | $ | 20,086 | 5 | % | |||||||||||||
Tier I Capital to risk- weighted assets | 34,774 | 14.7 | % | 9,458 | 4 | % | 14,187 | 6 | % | ||||||||||||||||
Total Risk-based capital to risk-weighted assets | 37,734 | 16 | % | 18,916 | 8 | % | 23,644 | 10 | % | ||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
Note 9: | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows: | |||||||||||||||||||||
Gross Unrealized | Net Unrealized | Gross Unrealized | Tax Effect | Total | |||||||||||||||||
Gains on | Loss for | Loss for | Accumulated | ||||||||||||||||||
Available-for-sale | Unfunded | Unfunded | Other | ||||||||||||||||||
Securities | Status of | Status of | Comprehensive | ||||||||||||||||||
Split-dollar | Defined | Income (Loss) | |||||||||||||||||||
Life Insurance | Benefit Plan | ||||||||||||||||||||
Plan Liability | |||||||||||||||||||||
(tax-free) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
30-Sep-13 | $ | 1,186 | $ | (246 | ) | $ | (1,096 | ) | $ | (31 | ) | $ | (187 | ) | |||||||
31-Dec-12 | $ | 3,498 | $ | (246 | ) | $ | (1,096 | ) | $ | (816 | ) | $ | 1,340 | ||||||||
There were no amounts reclassified out of accumulated other comprehensive (loss) income during the three | |||||||||||||||||||||
and nine months ended September 30, 2013 or 2012. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 10: | Fair Value Measurements | ||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: | |||||||||||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities | ||||||||||||||||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities | ||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities | ||||||||||||||||
Recurring Measurements | |||||||||||||||||
Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the Company’s consolidated balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. | |||||||||||||||||
Available-for-sale Securities | |||||||||||||||||
Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. | |||||||||||||||||
The following table presents the fair value measurements of assets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2013 and December 31, 2012: | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Fair Value | Quoted Prices | Significant other | Significant | ||||||||||||||
in Active | Observable | Unobservable | |||||||||||||||
Markets for | Inputs | Inputs | |||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(In thousands) | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
U.S. government agencies | $ | 140 | $ | — | $ | 140 | $ | — | |||||||||
Mortgage-backed securities of government sponsored entities | 77,437 | — | 77,437 | — | |||||||||||||
Private-label collateralized mortgage obligations | 792 | — | 792 | — | |||||||||||||
State and political subdivisions | 22,515 | — | 22,515 | — | |||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Fair Value | Quoted Prices | Significant other | Significant | ||||||||||||||
in Active | Observable | Unobservable | |||||||||||||||
Markets for | Inputs | Inputs | |||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
U.S. government agencies | $ | 155 | $ | — | $ | 155 | $ | — | |||||||||
Mortgage-backed securities of government sponsored entities | 85,830 | — | 85,830 | — | |||||||||||||
Private-label collateralized mortgage obligations | 1,106 | — | 1,106 | — | |||||||||||||
State and political subdivisions | 24,427 | — | 24,427 | — | |||||||||||||
Nonrecurring Measurements | |||||||||||||||||
Certain assets may be required to be measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. These assets are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. | |||||||||||||||||
Collateral-dependent Impaired Loans, Net of ALLL | |||||||||||||||||
The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. | |||||||||||||||||
The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the office of the Chief Financial Officer. Appraisals are reviewed for accuracy and consistency by the office of the Chief Financial Officer. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the office of the Chief Financial Officer by comparison to historical results. | |||||||||||||||||
Foreclosed Assets Held for Sale | |||||||||||||||||
Foreclosed assets held for sale are carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired. Estimated fair value of real estate is based on appraisals or evaluations. Foreclosed assets held for sale are classified within Level 3 of the fair value hierarchy. | |||||||||||||||||
Appraisals of real estate are obtained when the real estate is acquired and subsequently as deemed necessary by the office of the Chief Financial Officer. Appraisals are reviewed for accuracy and consistency by the office of the Chief Financial Officer. Appraisers are selected from the list of approved appraisers maintained by management. | |||||||||||||||||
The following table presents the fair value measurements of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2013 and December 31, 2012. | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Fair Value | Quoted Prices | Significant | Significant | ||||||||||||||
in Active | other | Unobservable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(In thousands) | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Foreclosed assets | $ | 38 | — | — | $ | 38 | |||||||||||
December 31, 2012 | |||||||||||||||||
Collateral-dependent impaired loans | $ | 2,437 | $ | — | $ | — | $ | 2,437 | |||||||||
Foreclosed assets | 16 | — | — | 16 | |||||||||||||
Unobservable (Level 3) Inputs | |||||||||||||||||
The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements in thousands. | |||||||||||||||||
Fair Value | Valuation | Unobservable | Range (Weighted | ||||||||||||||
Technique | Inputs | Average) | |||||||||||||||
30-Sep-13 | |||||||||||||||||
Foreclosed assets | $ | 38 | Contract sales price | Selling Costs | 10 | % | |||||||||||
31-Dec-12 | |||||||||||||||||
Collateral-dependent impaired loans | $ | 2,437 | Market comparable properties | Selling Costs | 10 | % | |||||||||||
Foreclosed assets | 16 | Market comparable properties | Selling Costs | 10 | % | ||||||||||||
There were no changes in the inputs or methodologies used to determine fair value at September 30, 2013 as compared to December 31, 2012. | |||||||||||||||||
The following table presents estimated fair values of the Company’s financial instruments. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Carrying | Quoted Prices | Significant | Significant | ||||||||||||||
Amount | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable Inputs | Inputs | |||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(In thousands) | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 8,002 | $ | 8,002 | $ | — | $ | — | |||||||||
Held-to-maturity securities | 6,646 | — | 6,214 | — | |||||||||||||
Loans, net of allowance for loan losses | 257,979 | — | — | 264,539 | |||||||||||||
Federal Home Loan Bank stock | 5,025 | — | 5,025 | — | |||||||||||||
Interest receivable | 1,371 | — | 1,371 | — | |||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | 326,615 | — | 298,337 | — | |||||||||||||
Other short-term borrowings | 6,516 | — | 6,516 | — | |||||||||||||
Federal Home Loan Bank advances | 22,957 | — | 23,513 | — | |||||||||||||
Advances from borrowers for taxes and insurance | 662 | — | 662 | — | |||||||||||||
Interest payable | 53 | — | 53 | — | |||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Carrying | Quoted Prices | Significant | Significant | ||||||||||||||
Amount | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(In thousands) | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 12,055 | $ | 12,055 | $ | — | $ | — | |||||||||
Held-to-maturity securities | 3,748 | — | 3,740 | ||||||||||||||
Loans, net of allowance for loan losses | 247,849 | — | — | 259,986 | |||||||||||||
Federal Home Loan Bank stock | 5,025 | — | 5,025 | — | |||||||||||||
Interest receivable | 1,228 | — | 1,228 | — | |||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | 327,737 | — | 317,312 | — | |||||||||||||
Other short-term borrowings | 7,077 | — | 7,077 | — | |||||||||||||
Federal Home Loan Bank advances | 21,217 | — | 22,048 | — | |||||||||||||
Advances from borrowers for taxes and insurance | 1,069 | — | 1,069 | — | |||||||||||||
Interest payable | 51 | — | 51 | — | |||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments. | |||||||||||||||||
Cash and Cash Equivalents, Interest Receivable and Federal Home Loan Bank Stock | |||||||||||||||||
The carrying amount approximates fair value. | |||||||||||||||||
Held-to-maturity securities | |||||||||||||||||
The fair value of held-to-maturity securities was estimated by using pricing models that contain market pricing and information, quoted prices of securities with similar characteristics or discounted cash flows that use credit adjusted discount rates. | |||||||||||||||||
Loans | |||||||||||||||||
The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. | |||||||||||||||||
Deposits | |||||||||||||||||
Deposits include savings accounts, checking accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||
Interest Payable, Other Short-Term Borrowings and Advances From Borrowers for Taxes and Insurance | |||||||||||||||||
The carrying amount approximates fair value. | |||||||||||||||||
Federal Home Loan Bank Advances | |||||||||||||||||
Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. | |||||||||||||||||
Commitments to Originate Loans, Letters of Credit and Lines of Credit | |||||||||||||||||
The fair value of commitments to originate loans is 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 values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. Fair values of commitments were not material at September 30, 2013 and December 31, 2012. |
Recent_Accounting_Developments
Recent Accounting Developments | 9 Months Ended | |
Sep. 30, 2013 | ||
Recent Accounting Developments | ' | |
Recent Accounting Developments | ' | |
Note 11: | Recent Accounting Developments | |
FASB ASU 2013-02, Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2013-02, issued in February 2013 requires the Company to provide information about the amounts reclassified out of accumulated other comprehensive income by component. These amendments are effective prospectively for reporting periods beginning after December 15, 2012, and early adoption is permitted. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. | ||
FASB ASU 2013-04, Liabilities (Topic 405), Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date in Accounting Standards Update No. 2013-04, issued in February 2013 requires the Company to measure and report on obligations resulting from joint and several liability. This includes the amount the Company has agreed to pay on the basis of its arrangement among its co-obligors, and any additional amount the Company expects to pay on behalf of its co-obligors. The amendments in this update, should be applied retrospectively, and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and early adoption is permitted. This standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Transfer_and_Assumption_Agreem
Transfer and Assumption Agreement | 9 Months Ended | |
Sep. 30, 2013 | ||
Transfer And Assumption Agreement | ' | |
Transfer and Assumption Agreement | ' | |
Note 12: | Transfer and Assumption Agreement | |
On November 15, 2012, the Bank completed a Transfer and Assumption Agreement with Thomasville National Bank (“TNB”), the national bank subsidiary of Thomasville Bancshares, Inc. headquartered in Thomasville, Georgia. The agreement provided for the transfer of the Bank’s trust business to TNB. | ||
Under terms of the agreement, TNB maintains a trust office at a Wayne Savings office in Wooster, Ohio. The Bank and TNB entered into an office support and referral agreement under which the Bank will be compensated for, among other services, the use of facilities and equipment required for the operation of the TNB trust office. The costs of exiting the trust business included a one-time expense of approximately $354,000 that was mainly recognized during the quarter ended June 30, 2012. Closing of the transaction occurred during the fourth quarter of 2012 and the Bank surrendered its trust license to the Ohio Division of Financial Institutions (“ODFI”) in January 2013 after the ODFI confirmed that the Bank had met the conditions for ceasing to conduct trust business. The Bank received no consideration and there was no gain or loss on the transfer other than the one-time expense noted above. | ||
The strategic rationale for this transaction was to partner with a stronger provider of trust services, who will absorb the operating expense overhead and assume the fiduciary risk associated with post-closing management of the trust accounts. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Use of Estimates | ' |
Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Securities_Tables
Securities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Securities Tables | ' | ||||||||||||||||||||||||
Schedule of Available for Sale Securities | ' | ||||||||||||||||||||||||
Amortized | Gross | Gross | Approximate | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||
September 30, 2013: | |||||||||||||||||||||||||
U.S. government agencies | $ | 139 | $ | 1 | $ | — | $ | 140 | |||||||||||||||||
Mortgage-backed securities of | 76,693 | 1,317 | 573 | 77,437 | |||||||||||||||||||||
government sponsored entities | |||||||||||||||||||||||||
Private-label collateralized | 757 | 35 | 792 | ||||||||||||||||||||||
mortgage obligations | |||||||||||||||||||||||||
State and political subdivisions | 22,110 | 587 | 182 | 22,515 | |||||||||||||||||||||
Totals | $ | 99,699 | $ | 1,940 | $ | 755 | $ | 100,884 | |||||||||||||||||
Amortized | Gross | Gross | Approximate | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
U.S. government agencies | $ | 155 | $ | 1 | $ | 1 | $ | 155 | |||||||||||||||||
Mortgage-backed securities of | 83,956 | 1,979 | 105 | 85,830 | |||||||||||||||||||||
government sponsored entities | |||||||||||||||||||||||||
Private-label collateralized | 1,067 | 39 | — | 1,106 | |||||||||||||||||||||
mortgage obligations | |||||||||||||||||||||||||
State and political subdivisions | 22,842 | 1,587 | 2 | 24,427 | |||||||||||||||||||||
Totals | $ | 108,020 | $ | 3,606 | $ | 108 | $ | 111,518 | |||||||||||||||||
Schedule of Held To Maturity Securities | ' | ||||||||||||||||||||||||
Amortized | Gross | Gross | Approximate | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Held-to-maturity Securities: | |||||||||||||||||||||||||
September 30, 2013: | |||||||||||||||||||||||||
U.S. government agencies | $ | 111 | $ | — | $ | — | $ | 111 | |||||||||||||||||
Mortgage-backed securities of | 1,407 | 11 | 2 | 1,416 | |||||||||||||||||||||
government sponsored entities | |||||||||||||||||||||||||
State and political subdivisions | 5,128 | — | 441 | 4,687 | |||||||||||||||||||||
Totals | $ | 6,646 | $ | 11 | $ | 443 | $ | 6,214 | |||||||||||||||||
Amortized | Gross | Gross | Approximate | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Held-to-maturity Securities: | |||||||||||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
U.S. government agencies | $ | 130 | $ | 1 | $ | — | $ | 131 | |||||||||||||||||
Mortgage-backed securities of | 1,469 | 45 | — | 1,514 | |||||||||||||||||||||
government sponsored entities | |||||||||||||||||||||||||
State and political subdivisions | 2,149 | — | 54 | 2,095 | |||||||||||||||||||||
Totals | $ | 3,748 | $ | 46 | $ | 54 | $ | 3,740 | |||||||||||||||||
Schedule of Expected Maturities of Available for Sale and Held To Maturity Securities | ' | ||||||||||||||||||||||||
Available-for-sale | Held-to-maturity | ||||||||||||||||||||||||
Amortized | Fair Value | Amortized | Fair Value | ||||||||||||||||||||||
cost | cost | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
One to five years | $ | 3,183 | $ | 3,346 | $ | — | $ | — | |||||||||||||||||
Five to ten years | 4,055 | 4,109 | 2,637 | 2,490 | |||||||||||||||||||||
After ten years | 15,011 | 15,200 | 2,602 | 2,308 | |||||||||||||||||||||
22,249 | 22,655 | 5,239 | 4,798 | ||||||||||||||||||||||
Mortgage-backed securities of government sponsored entities | 76,693 | 77,437 | 1,407 | 1,416 | |||||||||||||||||||||
Private-label collateralized mortgage obligations | 757 | 792 | — | — | |||||||||||||||||||||
Totals | $ | 99,699 | $ | 100,884 | $ | 6,646 | $ | 6,214 | |||||||||||||||||
Schedule of Securities in a Gross Unrealized Loss Position | ' | ||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Mortgage-backed securities of government sponsored entities | $ | 34,283 | $ | 575 | $ | — | $ | — | $ | 34,283 | $ | 575 | |||||||||||||
State and political subdivisions | 9,847 | 565 | 424 | 58 | 10,271 | 623 | |||||||||||||||||||
Total temporarily impaired securities | $ | 44,130 | $ | 1,140 | $ | 424 | $ | 58 | $ | 44,554 | $ | 1,198 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
U.S. government agencies | $ | — | $ | — | $ | 66 | $ | 1 | $ | 66 | $ | 1 | |||||||||||||
Mortgage-backed securities of government sponsored entities | 13,636 | 83 | 2,107 | 22 | 15,743 | 105 | |||||||||||||||||||
State and political subdivisions | 3,162 | 56 | — | — | 3,162 | 56 | |||||||||||||||||||
Total temporarily impaired securities | $ | 16,798 | $ | 139 | $ | 2,173 | $ | 23 | $ | 18,971 | $ | 162 | |||||||||||||
Credit_Quality_of_Loans_and_Al1
Credit Quality of Loans and Allowance for Loan Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Credit Quality Of Loans And Allowance For Loan Losses Tables | ' | ||||||||||||||||||||||||||||
Schedule of Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||
The following presents by portfolio segment, the activity in the allowance for loan losses for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||
Three months ended September 30, 2013 | One-to-four | All other | Commercial | Consumer loans | Total | ||||||||||||||||||||||||
family | mortgage loans | business loans | |||||||||||||||||||||||||||
residential | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,239 | $ | 1,557 | $ | 185 | $ | 6 | $ | 2,987 | |||||||||||||||||||
Provision charged to expense | (84 | ) | 150 | 16 | (6 | ) | 76 | ||||||||||||||||||||||
Losses charged off | (30 | ) | — | — | — | (30 | ) | ||||||||||||||||||||||
Recoveries | 8 | — | — | 1 | 9 | ||||||||||||||||||||||||
Ending balance | $ | 1,133 | $ | 1,707 | $ | 201 | $ | 1 | $ | 3,042 | |||||||||||||||||||
Three months ended September 30, 2012 | One-to-four | All other | Commercial | Consumer loans | Total | ||||||||||||||||||||||||
family | mortgage loans | business loans | |||||||||||||||||||||||||||
residential | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,082 | $ | 2,362 | $ | 143 | $ | 5 | $ | 3,592 | |||||||||||||||||||
Provision charged to expense | 92 | 117 | 14 | 2 | 225 | ||||||||||||||||||||||||
Losses charged off | (21 | ) | (1 | ) | — | — | (22 | ) | |||||||||||||||||||||
Recoveries | 2 | 1 | 14 | — | 17 | ||||||||||||||||||||||||
Ending balance | $ | 1,155 | $ | 2,479 | $ | 171 | $ | 7 | $ | 3,812 | |||||||||||||||||||
Nine months ended September 30, 2013 | One-to-four | All other | Commercial | Consumer loans | Total | ||||||||||||||||||||||||
family | mortgage loans | business loans | |||||||||||||||||||||||||||
residential | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,122 | $ | 1,925 | $ | 275 | $ | 6 | $ | 3,328 | |||||||||||||||||||
Provision (credit) charged to expense | 71 | (42 | ) | (76 | ) | (8 | ) | (55 | ) | ||||||||||||||||||||
Losses charged off | (68 | ) | (176 | ) | — | (2 | ) | (246 | ) | ||||||||||||||||||||
Recoveries | 8 | — | 2 | 5 | 15 | ||||||||||||||||||||||||
Ending balance | $ | 1,133 | $ | 1,707 | $ | 201 | $ | 1 | $ | 3,042 | |||||||||||||||||||
Nine months ended September 30, 2012 | One-to-four | All other | Commercial | Consumer loans | Total | ||||||||||||||||||||||||
family | mortgage loans | business loans | |||||||||||||||||||||||||||
residential | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,128 | $ | 2,547 | $ | 169 | $ | 10 | $ | 3,854 | |||||||||||||||||||
Provision charged to expense | 95 | 534 | (12 | ) | 1 | 618 | |||||||||||||||||||||||
Losses charged off | (109 | ) | (603 | ) | — | (4 | ) | (716 | ) | ||||||||||||||||||||
Recoveries | 41 | 1 | 14 | — | 56 | ||||||||||||||||||||||||
Ending balance | $ | 1,155 | $ | 2,479 | $ | 171 | $ | 7 | $ | 3,812 | |||||||||||||||||||
The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on the portfolio segment and impairment method as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||
30-Sep-13 | One-to-four | All other | Commercial | Consumer loans | Total | ||||||||||||||||||||||||
family | mortgage loans | business loans | |||||||||||||||||||||||||||
residential | |||||||||||||||||||||||||||||
Allowance Balances: | (In thousands) | ||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 355 | $ | 869 | $ | 69 | $ | — | $ | 1,293 | |||||||||||||||||||
Collectively evaluated for impairment | 778 | 838 | 132 | 1 | 1,749 | ||||||||||||||||||||||||
Total allowance for loan losses | $ | 1,133 | $ | 1,707 | $ | 201 | $ | 1 | $ | 3,042 | |||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,913 | $ | 4,727 | $ | 149 | $ | — | $ | 11,789 | |||||||||||||||||||
Collectively evaluated for impairment | 160,359 | 82,394 | 10,825 | 1,221 | 254,799 | ||||||||||||||||||||||||
Total balance | $ | 167,272 | $ | 87,121 | $ | 10,974 | $ | 1,221 | $ | 266,588 | |||||||||||||||||||
31-Dec-12 | One-to-four | All other | Commercial | Consumer | Total | ||||||||||||||||||||||||
family | mortgage loans | business loans | loans | ||||||||||||||||||||||||||
residential | |||||||||||||||||||||||||||||
Allowance Balances: | (In thousands) | ||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 248 | $ | 1,074 | $ | 100 | $ | — | $ | 1,422 | |||||||||||||||||||
Collectively evaluated for impairment | 874 | 851 | 175 | 6 | 1,906 | ||||||||||||||||||||||||
Total allowance for loan losses | $ | 1,122 | $ | 1,925 | $ | 275 | $ | 6 | $ | 3,328 | |||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,878 | $ | 5,837 | $ | 185 | $ | — | $ | 12,900 | |||||||||||||||||||
Collectively evaluated for impairment | 154,032 | 71,884 | 14,060 | 1,517 | 241,493 | ||||||||||||||||||||||||
Total balance | $ | 160,910 | $ | 77,721 | $ | 14,245 | $ | 1,517 | $ | 254,393 | |||||||||||||||||||
Schedule of Loans Receivable Quality Indicators | ' | ||||||||||||||||||||||||||||
The following tables present the credit risk profile of the Bank’s loan portfolio based on rating category and payment activity as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||
30-Sep-13 | One-to-four | All other | Commercial | Consumer loans | |||||||||||||||||||||||||
family | mortgage | business loans | |||||||||||||||||||||||||||
residential | loans | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Rating * | |||||||||||||||||||||||||||||
Pass (Risk 1-4) | $ | 158,497 | $ | 80,341 | $ | 10,419 | $ | 1,219 | |||||||||||||||||||||
Special Mention (Risk 5) | 569 | 2,053 | 406 | — | |||||||||||||||||||||||||
Substandard (Risk 6) | 8,206 | 4,727 | 149 | 2 | |||||||||||||||||||||||||
Total | $ | 167,272 | $ | 87,121 | $ | 10,974 | $ | 1,221 | |||||||||||||||||||||
31-Dec-12 | One-to-four | All other | Commercial | Consumer loans | |||||||||||||||||||||||||
family | mortgage | business loans | |||||||||||||||||||||||||||
residential | loans | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Rating * | |||||||||||||||||||||||||||||
Pass (Risk 1-4) | $ | 151,749 | $ | 68,949 | $ | 14,034 | $ | 1,513 | |||||||||||||||||||||
Special Mention (Risk 5) | 708 | 2,934 | 26 | — | |||||||||||||||||||||||||
Substandard (Risk 6) | 8,453 | 5,838 | 185 | 4 | |||||||||||||||||||||||||
Total | $ | 160,910 | $ | 77,721 | $ | 14,245 | $ | 1,517 | |||||||||||||||||||||
* Ratings are generally assigned to consumer and residential mortgage loans on a “pass” or “fail” basis, where “fail” results in a substandard classification. Commercial loans, both secured by real estate or other assets or unsecured, are analyzed in accordance with an analytical matrix codified in the Bank’s loan policy that produces a risk rating as described below. | |||||||||||||||||||||||||||||
Aging Analysis of Loans Receivable | ' | ||||||||||||||||||||||||||||
The following tables present the Bank’s loan portfolio aging analysis for September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||
30-Sep-13 | 30-59 | 60-89 Days | Greater | Total Past | Current | Total Loans | Total Loans | ||||||||||||||||||||||
Days Past | Past Due | Than 90 | Due | Receivable | > 90 Days | ||||||||||||||||||||||||
Due | Days | and | |||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 102 | $ | 229 | $ | 869 | $ | 1,200 | $ | 166,072 | $ | 167,272 | $ | — | |||||||||||||||
All other mortgage loans | — | — | 815 | 815 | 86,306 | 87,121 | — | ||||||||||||||||||||||
Commercial business loans | 70 | — | — | 70 | 10,904 | 10,974 | — | ||||||||||||||||||||||
Consumer loans | — | — | — | — | 1,221 | 1,221 | — | ||||||||||||||||||||||
Total | $ | 172 | $ | 229 | $ | 1,684 | $ | 2,085 | $ | 264,503 | $ | 266,588 | $ | — | |||||||||||||||
31-Dec-12 | 30-59 | 60-89 Days | Greater | Total Past | Current | Total Loans | Total Loans | ||||||||||||||||||||||
Days Past | Past Due | Than 90 | Due | Receivable | > 90 Days | ||||||||||||||||||||||||
Due | Days | and | |||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 1,049 | $ | 339 | $ | 1,190 | $ | 2,578 | $ | 158,332 | $ | 160,910 | $ | — | |||||||||||||||
All other mortgage loans | 1,544 | — | 1,309 | 2,853 | 74,868 | 77,721 | — | ||||||||||||||||||||||
Commercial business loans | — | — | — | — | 14,245 | 14,245 | — | ||||||||||||||||||||||
Consumer loans | 1 | 2 | 2 | 5 | 1,512 | 1,517 | — | ||||||||||||||||||||||
Total | $ | 2,594 | $ | 341 | $ | 2,501 | $ | 5,436 | $ | 248,957 | $ | 254,393 | $ | — | |||||||||||||||
Schedule of Non-accrual Loans | ' | ||||||||||||||||||||||||||||
Nonaccrual loans were comprised of the following at: | |||||||||||||||||||||||||||||
Nonaccrual loans | 30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 2,238 | $ | 2,097 | |||||||||||||||||||||||||
Nonresidential real estate loans | 1,881 | 3,123 | |||||||||||||||||||||||||||
All other mortgage loans | — | — | |||||||||||||||||||||||||||
Commercial business loans | — | 32 | |||||||||||||||||||||||||||
Consumer loans | 2 | 4 | |||||||||||||||||||||||||||
Total | $ | 4,121 | $ | 5,256 | |||||||||||||||||||||||||
Schedule of Impaired Loans | ' | ||||||||||||||||||||||||||||
Information with respect to the Company’s impaired loans at September 30, 2013 and December 31, 2012 in combination with activity for the three and nine months ended September 30, 2013 and 2012 is presented below: | |||||||||||||||||||||||||||||
As of September 30, 2013 | Three months ended | Nine months ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||||||||||
Recorded | Unpaid | Specific | Average | Interest | Average | Interest | |||||||||||||||||||||||
Balance | Principal | Allowance | Investment | Income | Investment | Income | |||||||||||||||||||||||
Balance | in Impaired | Recognized | in Impaired | Recognized | |||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 5,602 | $ | 5,602 | $ | — | $ | 5,785 | $ | 84 | $ | 5,702 | $ | 222 | |||||||||||||||
All other mortgage loans | 2,225 | 2,225 | — | 2,276 | 23 | 2,427 | 72 | ||||||||||||||||||||||
Commercial business loans | 80 | 80 | — | 81 | 1 | 83 | 2 | ||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||
One-to-four family residential loans | 1,311 | 1,311 | 355 | 1,208 | 7 | 1,266 | 22 | ||||||||||||||||||||||
All other mortgage loans | 2,502 | 3,097 | 869 | 2,504 | 20 | 2,730 | 56 | ||||||||||||||||||||||
Commercial business loans | 69 | 69 | 69 | 73 | — | 83 | 2 | ||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 6,913 | $ | 6,913 | $ | 355 | $ | 6,993 | $ | 91 | $ | 6,968 | $ | 244 | |||||||||||||||
All other mortgage loans | 4,727 | 5,322 | 869 | 4,780 | 43 | 5,157 | 128 | ||||||||||||||||||||||
Commercial business loans | 149 | 149 | 69 | 154 | 1 | 166 | 4 | ||||||||||||||||||||||
$ | 11,789 | $ | 12,384 | $ | 1,293 | $ | 11,927 | $ | 135 | $ | 12,291 | $ | 376 | ||||||||||||||||
As of December 31, 2012 | Three months ended | Nine months ended | |||||||||||||||||||||||||||
30-Sep-12 | 30-Sep-12 | ||||||||||||||||||||||||||||
Recorded | Unpaid | Specific | Average | Interest | Average | Interest | |||||||||||||||||||||||
Balance | Principal | Allowance | Investment | Income | Investment | Income | |||||||||||||||||||||||
Balance | in impaired | Recognized | in Impaired | Recognized | |||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 5,587 | $ | 5,587 | $ | — | $ | 3,024 | $ | 21 | $ | 3,144 | $ | 90 | |||||||||||||||
All other mortgage loans | 2,781 | 2,781 | — | 2,324 | 3 | 2,179 | 58 | ||||||||||||||||||||||
Commercial business loans | 85 | 85 | — | — | — | — | — | ||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||
One-to-four family residential loans | 1,291 | 1,291 | 248 | 1,210 | 2 | 889 | 35 | ||||||||||||||||||||||
All other mortgage loans | 3,056 | 3,652 | 1,074 | 4,723 | 25 | 4,998 | 64 | ||||||||||||||||||||||
Commercial business loans | 100 | 100 | 100 | 43 | 1 | 66 | 1 | ||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
One-to-four family residential loans | $ | 6,878 | $ | 6,878 | $ | 248 | $ | 4,234 | $ | 23 | $ | 4,033 | $ | 125 | |||||||||||||||
All other mortgage loans | 5,837 | 6,433 | 1,074 | 7,047 | 28 | 7,177 | 122 | ||||||||||||||||||||||
Commercial business loans | 185 | 185 | 100 | 43 | 1 | 66 | 1 | ||||||||||||||||||||||
$ | 12,900 | $ | 13,496 | $ | 1,422 | $ | 11,324 | $ | 52 | $ | 11,276 | $ | 248 | ||||||||||||||||
Schedule of Troubled Debt Restructurings | ' | ||||||||||||||||||||||||||||
Quarter-to-Date | Year-to-Date | ||||||||||||||||||||||||||||
Troubled Debt Restructurings | Number of | Pre- | Post- | Number of | Pre- | Post- | |||||||||||||||||||||||
loans | modification | modification | loans | modification | modification | ||||||||||||||||||||||||
Unpaid | Unpaid | Unpaid | Unpaid | ||||||||||||||||||||||||||
Principal | Principal | Principal | Principal | ||||||||||||||||||||||||||
Balance | Balance | Balance | Balance | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||
One-to-four family residential loans | 4 | $ | 493 | $ | 517 | 6 | $ | 909 | $ | 933 | |||||||||||||||||||
All other mortgage loans | — | — | — | 1 | 576 | 576 | |||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||
One-to-four family residential loans | — | $ | — | $ | — | 2 | $ | 538 | $ | 538 | |||||||||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Goodwill And Intangible Assets Tables | ' | ||||||||
Schedule of goodwill and other intangible assets | ' | ||||||||
The composition of goodwill and other intangible assets, all of which is core deposit intangible, at September 30, 2013 and December 31, 2012: | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
(In thousands) | |||||||||
Goodwill | $ | 1,719 | $ | 1,719 | |||||
Other intangible assets – gross | 974 | 974 | |||||||
Other intangible assets – amortization | (914 | ) | (846 | ) | |||||
Total | $ | 1,779 | $ | 1,847 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share Tables | ' | ||||||||||||||||
Schedule of weighted average number of common shares outstanding reconciliation | ' | ||||||||||||||||
The computations are as follows: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted-average common shares outstanding (basic) | 2,841,213 | 2,935,469 | 2,871,754 | 2,937,589 | |||||||||||||
Dilutive effect of assumed exercise of stock options | — | — | — | — | |||||||||||||
Weighted-average common shares outstanding (diluted) | 2,841,213 | 2,935,469 | 2,871,754 | 2,937,589 | |||||||||||||
Stock_Option_Plan_Tables
Stock Option Plan (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stock Option Plan Tables | ' | ||||||||||||||||
Schedule of Stock Option Rollforward | ' | ||||||||||||||||
A summary of the status of the Company’s stock option plan as of and for the nine months ended September 30, 2013, and for the year ended December 31, 2012 is presented below: | |||||||||||||||||
Nine months ended | Year ended | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||
average | average | ||||||||||||||||
exercise price | exercise price | ||||||||||||||||
Outstanding at beginning of period | 58,908 | $ | 13.95 | 63,408 | $ | 13.95 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited | 17,704 | $ | 13.95 | 4,500 | $ | 13.95 | |||||||||||
Expired | 41,204 | $ | 13.95 | — | — | ||||||||||||
Outstanding at end of period | — | $ | — | 58,908 | $ | 13.95 | |||||||||||
Options exercisable at period-end | — | $ | — | 58,908 | $ | 13.95 | |||||||||||
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Regulatory Matters Tables | ' | ||||||||||||||||||||||||
Schedule of Regulatory Capital Requirements | ' | ||||||||||||||||||||||||
The Bank’s actual capital amounts and ratios as of September 30, 2013 and December 31, 2012 are presented in the following table. | |||||||||||||||||||||||||
Actual | For Capital Adequacy | To Be well Capitalized | |||||||||||||||||||||||
Purposes | Under Prompt | ||||||||||||||||||||||||
Corrective Action | |||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||
Tier I Capital to average assets | $ | 34,768 | 8.7 | % | $ | 15,970 | 4 | % | $ | 19,962 | 5 | % | |||||||||||||
Tier I Capital to risk- weighted assets | 34,768 | 14.2 | % | 9,773 | 4 | % | 14,660 | 6 | % | ||||||||||||||||
Total Risk-based capital to risk-weighted assets | 37,810 | 15.5 | % | 19,546 | 8 | % | 24,433 | 10 | % | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Tier I Capital to average assets | $ | 34,774 | 8.7 | % | $ | 16,069 | 4 | % | $ | 20,086 | 5 | % | |||||||||||||
Tier I Capital to risk- weighted assets | 34,774 | 14.7 | % | 9,458 | 4 | % | 14,187 | 6 | % | ||||||||||||||||
Total Risk-based capital to risk-weighted assets | 37,734 | 16 | % | 18,916 | 8 | % | 23,644 | 10 | % |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Accumulated Other Comprehensive Income Tables | ' | ||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows: | |||||||||||||||||||||
Gross Unrealized | Net Unrealized | Gross Unrealized | Tax Effect | Total | |||||||||||||||||
Gains on | Loss for | Loss for | Accumulated | ||||||||||||||||||
Available-for-sale | Unfunded | Unfunded | Other | ||||||||||||||||||
Securities | Status of | Status of | Comprehensive | ||||||||||||||||||
Split-dollar | Defined | Income (Loss) | |||||||||||||||||||
Life Insurance | Benefit Plan | ||||||||||||||||||||
Plan Liability | |||||||||||||||||||||
(tax-free) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
30-Sep-13 | $ | 1,186 | $ | (246 | ) | $ | (1,096 | ) | $ | (31 | ) | $ | (187 | ) | |||||||
31-Dec-12 | $ | 3,498 | $ | (246 | ) | $ | (1,096 | ) | $ | (816 | ) | $ | 1,340 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Measurements Tables | ' | ||||||||||||||||
Schedule of Fair Value Measured on a Recurring Basis | ' | ||||||||||||||||
The following table presents the fair value measurements of assets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2013 and December 31, 2012: | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Fair Value | Quoted Prices | Significant other | Significant | ||||||||||||||
in Active | Observable | Unobservable | |||||||||||||||
Markets for | Inputs | Inputs | |||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(In thousands) | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
U.S. government agencies | $ | 140 | $ | — | $ | 140 | $ | — | |||||||||
Mortgage-backed securities of government sponsored entities | 77,437 | — | 77,437 | — | |||||||||||||
Private-label collateralized mortgage obligations | 792 | — | 792 | — | |||||||||||||
State and political subdivisions | 22,515 | — | 22,515 | — | |||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Fair Value | Quoted Prices | Significant other | Significant | ||||||||||||||
in Active | Observable | Unobservable | |||||||||||||||
Markets for | Inputs | Inputs | |||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2012 | |||||||||||||||||
U.S. government agencies | $ | 155 | $ | — | $ | 155 | $ | — | |||||||||
Mortgage-backed securities of government sponsored entities | 85,830 | — | 85,830 | — | |||||||||||||
Private-label collateralized mortgage obligations | 1,106 | — | 1,106 | — | |||||||||||||
State and political subdivisions | 24,427 | — | 24,427 | — | |||||||||||||
Schedule of Fair Value Measured on a Nonrecurring Basis | ' | ||||||||||||||||
The following table presents the fair value measurements of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2013 and December 31, 2012. | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Fair Value | Quoted Prices | Significant | Significant | ||||||||||||||
in Active | other | Unobservable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(In thousands) | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Foreclosed assets | $ | 38 | — | — | $ | 38 | |||||||||||
December 31, 2012 | |||||||||||||||||
Collateral-dependent impaired loans | $ | 2,437 | $ | — | $ | — | $ | 2,437 | |||||||||
Foreclosed assets | 16 | — | — | 16 | |||||||||||||
Schedule of Level 3 Fair Value Measurements | ' | ||||||||||||||||
The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements in thousands. | |||||||||||||||||
Fair Value | Valuation | Unobservable | Range (Weighted | ||||||||||||||
Technique | Inputs | Average) | |||||||||||||||
30-Sep-13 | |||||||||||||||||
Foreclosed assets | $ | 38 | Contract sales price | Selling Costs | 10 | % | |||||||||||
31-Dec-12 | |||||||||||||||||
Collateral-dependent impaired loans | $ | 2,437 | Market comparable properties | Selling Costs | 10 | % | |||||||||||
Foreclosed assets | 16 | Market comparable properties | Selling Costs | 10 | % | ||||||||||||
Schedule of Fair Value of Financial Instruments | ' | ||||||||||||||||
The following table presents estimated fair values of the Company’s financial instruments. | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Carrying | Quoted Prices | Significant | Significant | ||||||||||||||
Amount | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable Inputs | Inputs | |||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(In thousands) | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 8,002 | $ | 8,002 | $ | — | $ | — | |||||||||
Held-to-maturity securities | 6,646 | — | 6,214 | — | |||||||||||||
Loans, net of allowance for loan losses | 257,979 | — | — | 264,539 | |||||||||||||
Federal Home Loan Bank stock | 5,025 | — | 5,025 | — | |||||||||||||
Interest receivable | 1,371 | — | 1,371 | — | |||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | 326,615 | — | 298,337 | — | |||||||||||||
Other short-term borrowings | 6,516 | — | 6,516 | — | |||||||||||||
Federal Home Loan Bank advances | 22,957 | — | 23,513 | — | |||||||||||||
Advances from borrowers for taxes and insurance | 662 | — | 662 | — | |||||||||||||
Interest payable | 53 | — | 53 | — | |||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Carrying | Quoted Prices | Significant | Significant | ||||||||||||||
Amount | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(In thousands) | |||||||||||||||||
31-Dec-12 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 12,055 | $ | 12,055 | $ | — | $ | — | |||||||||
Held-to-maturity securities | 3,748 | — | 3,740 | ||||||||||||||
Loans, net of allowance for loan losses | 247,849 | — | — | 259,986 | |||||||||||||
Federal Home Loan Bank stock | 5,025 | — | 5,025 | — | |||||||||||||
Interest receivable | 1,228 | — | 1,228 | — | |||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | 327,737 | — | 317,312 | — | |||||||||||||
Other short-term borrowings | 7,077 | — | 7,077 | — | |||||||||||||
Federal Home Loan Bank advances | 21,217 | — | 22,048 | — | |||||||||||||
Advances from borrowers for taxes and insurance | 1,069 | — | 1,069 | — | |||||||||||||
Interest payable | 51 | — | 51 | — | |||||||||||||
Securities_Details_Narrative
Securities (Details Narrative) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Securities Details Narrative | ' | ' |
Carrying value of securities pledged as collateral to secure public deposits | $57,500 | $60,400 |
Fair value of investments, carried at less than historical costs | $44,600 | $19,000 |
Percentage available for sale Securities in unrealized loss positions out of total available for sale securities | 42.00% | 17.00% |
Securities_Details
Securities (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Available for sale | ' | ' |
Amortized Cost | $99,699 | $108,020 |
Gross Unrealized Gains | 1,940 | 3,606 |
Gross Unrealized Losses | 755 | 108 |
Approximate Fair Value | 100,884 | 111,518 |
Held to maturity | ' | ' |
Amortized Cost | 6,646 | 3,748 |
Gross Unrealized Gains | 11 | 46 |
Gross Unrealized Losses | 443 | 54 |
Approximate Fair Value | 6,214 | 3,740 |
U.S. government agencies | ' | ' |
Available for sale | ' | ' |
Amortized Cost | 139 | 155 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | ' | 1 |
Approximate Fair Value | 140 | 155 |
Held to maturity | ' | ' |
Amortized Cost | 111 | 130 |
Gross Unrealized Gains | ' | 1 |
Gross Unrealized Losses | ' | ' |
Approximate Fair Value | 111 | 131 |
Mortgage-backed securities of government sponsored entities | ' | ' |
Available for sale | ' | ' |
Amortized Cost | 76,693 | 83,956 |
Gross Unrealized Gains | 1,317 | 1,979 |
Gross Unrealized Losses | 573 | 105 |
Approximate Fair Value | 77,437 | 85,830 |
Held to maturity | ' | ' |
Amortized Cost | 1,407 | 1,469 |
Gross Unrealized Gains | 11 | 45 |
Gross Unrealized Losses | 2 | ' |
Approximate Fair Value | 1,416 | 1,514 |
Private-label collateralized mortgage obligations | ' | ' |
Available for sale | ' | ' |
Amortized Cost | 757 | 1,067 |
Gross Unrealized Gains | 35 | 39 |
Gross Unrealized Losses | ' | ' |
Approximate Fair Value | 792 | 1,106 |
State and political subdivisions | ' | ' |
Available for sale | ' | ' |
Amortized Cost | 22,110 | 22,842 |
Gross Unrealized Gains | 587 | 1,587 |
Gross Unrealized Losses | 182 | 2 |
Approximate Fair Value | 22,515 | 24,427 |
Held to maturity | ' | ' |
Amortized Cost | 5,128 | 2,149 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | 441 | 54 |
Approximate Fair Value | $4,687 | $2,095 |
Securities_Details_1
Securities (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available-for-sale- Debt maturities, Amortized Cost | ' | ' |
One to five years | $3,183 | ' |
Five to ten years | 4,055 | ' |
After ten Years | 15,011 | ' |
Subtotal | 22,249 | ' |
Totals | 99,699 | ' |
Available for Sale Securities, Fair Values | ' | ' |
One to five years | 3,346 | ' |
Five to ten years | 4,109 | ' |
After ten Years | 15,200 | ' |
Subtotal | 22,655 | ' |
Totals | 100,884 | ' |
Held to Maturity securities, Amortized Cost | ' | ' |
One to five years | ' | ' |
Five to ten years | 2,637 | ' |
After ten Years | 2,602 | ' |
Subtotal | 5,239 | ' |
Totals | 6,646 | 3,748 |
Held to Maturity securities, Fair Values | ' | ' |
One to five years | ' | ' |
Five to ten years | 2,490 | ' |
After ten Years | 2,308 | ' |
Subtotal | 4,798 | ' |
Total | 6,214 | 3,740 |
Mortgage-backed securities of government sponsored entities | ' | ' |
Available-for-sale- Debt maturities, Amortized Cost | ' | ' |
Maturities without single maturity date | 76,693 | ' |
Available for Sale Securities, Fair Values | ' | ' |
Maturities without single maturity date | 77,437 | ' |
Held to Maturity securities, Amortized Cost | ' | ' |
Maturities without single maturity date | 1,407 | ' |
Totals | 1,407 | 1,469 |
Held to Maturity securities, Fair Values | ' | ' |
Maturities without single maturity date | 1,416 | ' |
Total | 1,416 | 1,514 |
Private-label collateralized mortgage obligations | ' | ' |
Available-for-sale- Debt maturities, Amortized Cost | ' | ' |
Maturities without single maturity date | 757 | ' |
Available for Sale Securities, Fair Values | ' | ' |
Maturities without single maturity date | 792 | ' |
Held to Maturity securities, Amortized Cost | ' | ' |
Maturities without single maturity date | ' | ' |
Held to Maturity securities, Fair Values | ' | ' |
Maturities without single maturity date | ' | ' |
Securities_Details_2
Securities (Details 2) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Securities with unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | $44,130 | $16,798 |
Less than 12 Months, Unrealized Losses | 1,140 | 139 |
More than 12 Months, Fair Value | 424 | 2,173 |
More than 12 Months, Unrealized Losses | 58 | 23 |
Total, Fair Value | 44,554 | 18,971 |
Total, Unrealized Losses | 1,198 | 162 |
Mortgage-backed securities of government sponsored entities | ' | ' |
Securities with unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | 34,283 | 13,636 |
Less than 12 Months, Unrealized Losses | 575 | 83 |
More than 12 Months, Fair Value | ' | 2,107 |
More than 12 Months, Unrealized Losses | ' | 22 |
Total, Fair Value | 34,283 | 15,743 |
Total, Unrealized Losses | 575 | 105 |
State and political subdivisions | ' | ' |
Securities with unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | 9,847 | 3,162 |
Less than 12 Months, Unrealized Losses | 565 | 56 |
More than 12 Months, Fair Value | 424 | ' |
More than 12 Months, Unrealized Losses | 58 | ' |
Total, Fair Value | 10,271 | 3,162 |
Total, Unrealized Losses | 623 | 56 |
U.S. government agencies | ' | ' |
Securities with unrealized loss position | ' | ' |
Less than 12 Months, Fair Value | ' | ' |
Less than 12 Months, Unrealized Losses | ' | ' |
More than 12 Months, Fair Value | ' | 66 |
More than 12 Months, Unrealized Losses | ' | 1 |
Total, Fair Value | ' | 66 |
Total, Unrealized Losses | ' | $1 |
Credit_Quality_of_Loans_and_Al2
Credit Quality of Loans and Allowance for Loan Losses (Details Narrative) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Credit Quality Of Loans And Allowance For Loan Losses Details Narrative | ' | ' |
Deferred loan origination fees | $687 | $569 |
Loans in process | $4,900 | $2,600 |
Credit_Quality_of_Loans_and_Al3
Credit Quality of Loans and Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' | |||
Beginning balance | $2,987 | $3,592 | $3,328 | $3,854 | ' | |||
Provision (credit) charged to expense | 76 | 225 | -55 | 618 | ' | |||
Losses Charged Off | -30 | -22 | -246 | -716 | ' | |||
Recoveries | 9 | 17 | 15 | 56 | ' | |||
Ending balance | 3,042 | 3,592 | 3,042 | 3,592 | ' | |||
Ending balances: Allowance for loan losses | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 1,293 | ' | 1,293 | ' | 1,422 | |||
Collectively evaluated for impairment | 1,749 | ' | 1,749 | ' | 1,906 | |||
Ending balances: Loans | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 11,789 | ' | 11,789 | ' | 12,900 | |||
Collectively evaluated for impairment | 254,799 | ' | 254,799 | ' | 241,493 | |||
Loans Receivable, gross | 266,588 | ' | 266,588 | ' | 254,393 | |||
One-to-four family residential | ' | ' | ' | ' | ' | |||
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' | |||
Beginning balance | 1,239 | 1,082 | 1,122 | 1,128 | ' | |||
Provision (credit) charged to expense | -84 | 92 | 71 | 95 | ' | |||
Losses Charged Off | -30 | -21 | -68 | -109 | ' | |||
Recoveries | 8 | 2 | 8 | 41 | ' | |||
Ending balance | 1,133 | 1,155 | 1,133 | 1,155 | ' | |||
Ending balances: Allowance for loan losses | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 355 | ' | 355 | ' | 248 | |||
Collectively evaluated for impairment | 778 | ' | 778 | ' | 874 | |||
Ending balances: Loans | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 6,913 | ' | 6,913 | ' | 6,878 | |||
Collectively evaluated for impairment | 160,359 | ' | 160,359 | ' | 154,032 | |||
Loans Receivable, gross | 167,272 | [1] | ' | 167,272 | [1] | ' | 160,910 | [1] |
All other mortgage loans | ' | ' | ' | ' | ' | |||
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' | |||
Beginning balance | 1,557 | 2,362 | 1,925 | 2,547 | ' | |||
Provision (credit) charged to expense | 150 | 117 | -42 | 534 | ' | |||
Losses Charged Off | ' | -1 | -176 | -603 | ' | |||
Recoveries | ' | 1 | ' | 1 | ' | |||
Ending balance | 1,707 | 2,479 | 1,707 | 2,479 | ' | |||
Ending balances: Allowance for loan losses | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 869 | ' | 869 | ' | 1,074 | |||
Collectively evaluated for impairment | 838 | ' | 838 | ' | 851 | |||
Ending balances: Loans | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 4,727 | ' | 4,727 | ' | 5,837 | |||
Collectively evaluated for impairment | 82,394 | ' | 82,394 | ' | 71,884 | |||
Loans Receivable, gross | 87,121 | [1] | ' | 87,121 | [1] | ' | 77,721 | [1] |
Commercial business loans | ' | ' | ' | ' | ' | |||
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' | |||
Beginning balance | 185 | 143 | 275 | 169 | ' | |||
Provision (credit) charged to expense | 16 | 14 | -76 | -12 | ' | |||
Losses Charged Off | ' | ' | ' | ' | ' | |||
Recoveries | ' | 14 | 2 | 14 | ' | |||
Ending balance | 201 | 171 | 201 | 171 | ' | |||
Ending balances: Allowance for loan losses | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 69 | ' | 69 | ' | 100 | |||
Collectively evaluated for impairment | 132 | ' | 132 | ' | 175 | |||
Ending balances: Loans | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | 149 | ' | 149 | ' | 185 | |||
Collectively evaluated for impairment | 10,825 | ' | 10,825 | ' | 14,060 | |||
Loans Receivable, gross | 10,974 | [1] | ' | 10,974 | [1] | ' | 14,245 | [1] |
Consumer loans | ' | ' | ' | ' | ' | |||
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' | |||
Beginning balance | 6 | 5 | 6 | 10 | ' | |||
Provision (credit) charged to expense | -6 | 2 | -8 | 1 | ' | |||
Losses Charged Off | ' | ' | -2 | -4 | ' | |||
Recoveries | 1 | ' | 5 | ' | ' | |||
Ending balance | 1 | 7 | 1 | 7 | ' | |||
Ending balances: Allowance for loan losses | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | ' | ' | ' | ' | ' | |||
Collectively evaluated for impairment | 1 | ' | 1 | ' | 6 | |||
Ending balances: Loans | ' | ' | ' | ' | ' | |||
Individually evaluated for impairment | ' | ' | ' | ' | ' | |||
Collectively evaluated for impairment | 1,221 | ' | 1,221 | ' | 1,517 | |||
Loans Receivable, gross | $1,221 | [1] | ' | $1,221 | [1] | ' | $1,517 | [1] |
[1] | * Ratings are generally assigned to consumer and residential mortgage loans on a "pass" or "fail" basis, where "fail" results in a substandard classification. Commercial loans, both secured by real estate or other assets or unsecured, are analyzed in accordance with an analytical matrix codified in the Bank's loan policy that produces a risk rating as described below. Risk 1 is unquestioned credit quality for any credit product. Loans are secured by cash and near cash collateral with immediate access to proceeds. Risk 2 is very low risk with strong credit and repayment sources. Borrower is well capitalized in a stable industry, financial ratios exceed peers and financial trends are positive. Risk 3 is very favorable risk with highly adequate credit strength and repayment sources. Borrower has good overall financial condition and adequate capitalization. Risk 4 is acceptable, average risk with adequate credit strength and repayment sources. Collateral positions must be within Bank policies. Risk 5 or "Special Mention," also known as "watch," has potential weakness that deserves Management's close attention. This risk includes loans where the borrower has developed financial uncertainties or the borrower is resolving the financial uncertainties. Bank credits have been secured or negotiations will be ongoing to secure further collateral. Risk 6 or "Substandard" loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that exhibit a weakening of the borrower's credit strength with limited credit access and all non-performing loans. Risk 7 or "Doubtful" loans are significantly under protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that are likely to experience a loss of some magnitude, but where the amount of the expected loss is not known with enough certainty to allow for an accurate calculation of a loss amount for charge-off. This category is considered to be temporary until a charge-off amount can be reasonably determined. |
Credit_Quality_of_Loans_and_Al4
Credit Quality of Loans and Allowance for Loan Losses (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Loans Receivable, gross | $266,588 | $254,393 | ||
One-to-four family residential | ' | ' | ||
Loans Receivable, gross | 167,272 | [1] | 160,910 | [1] |
One-to-four family residential | Pass (Risk 1-4) | ' | ' | ||
Loans Receivable, gross | 158,497 | [1] | 151,749 | [1] |
One-to-four family residential | Special Mention (Risk 5) | ' | ' | ||
Loans Receivable, gross | 569 | [1] | 708 | [1] |
One-to-four family residential | Substandard (Risk 6) | ' | ' | ||
Loans Receivable, gross | 8,206 | [1] | 8,453 | [1] |
All other mortgage loans | ' | ' | ||
Loans Receivable, gross | 87,121 | [1] | 77,721 | [1] |
All other mortgage loans | Pass (Risk 1-4) | ' | ' | ||
Loans Receivable, gross | 80,341 | [1] | 68,949 | [1] |
All other mortgage loans | Special Mention (Risk 5) | ' | ' | ||
Loans Receivable, gross | 2,053 | [1] | 2,934 | [1] |
All other mortgage loans | Substandard (Risk 6) | ' | ' | ||
Loans Receivable, gross | 4,727 | [1] | 5,838 | [1] |
Commercial business loans | ' | ' | ||
Loans Receivable, gross | 10,974 | [1] | 14,245 | [1] |
Commercial business loans | Pass (Risk 1-4) | ' | ' | ||
Loans Receivable, gross | 10,419 | [1] | 14,034 | [1] |
Commercial business loans | Special Mention (Risk 5) | ' | ' | ||
Loans Receivable, gross | 406 | [1] | 26 | [1] |
Commercial business loans | Substandard (Risk 6) | ' | ' | ||
Loans Receivable, gross | 149 | [1] | 185 | [1] |
Consumer loans | ' | ' | ||
Loans Receivable, gross | 1,221 | [1] | 1,517 | [1] |
Consumer loans | Pass (Risk 1-4) | ' | ' | ||
Loans Receivable, gross | 1,219 | [1] | 1,513 | [1] |
Consumer loans | Special Mention (Risk 5) | ' | ' | ||
Loans Receivable, gross | ' | [1] | ' | [1] |
Consumer loans | Substandard (Risk 6) | ' | ' | ||
Loans Receivable, gross | $2 | [1] | $4 | [1] |
[1] | * Ratings are generally assigned to consumer and residential mortgage loans on a "pass" or "fail" basis, where "fail" results in a substandard classification. Commercial loans, both secured by real estate or other assets or unsecured, are analyzed in accordance with an analytical matrix codified in the Bank's loan policy that produces a risk rating as described below. Risk 1 is unquestioned credit quality for any credit product. Loans are secured by cash and near cash collateral with immediate access to proceeds. Risk 2 is very low risk with strong credit and repayment sources. Borrower is well capitalized in a stable industry, financial ratios exceed peers and financial trends are positive. Risk 3 is very favorable risk with highly adequate credit strength and repayment sources. Borrower has good overall financial condition and adequate capitalization. Risk 4 is acceptable, average risk with adequate credit strength and repayment sources. Collateral positions must be within Bank policies. Risk 5 or "Special Mention," also known as "watch," has potential weakness that deserves Management's close attention. This risk includes loans where the borrower has developed financial uncertainties or the borrower is resolving the financial uncertainties. Bank credits have been secured or negotiations will be ongoing to secure further collateral. Risk 6 or "Substandard" loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that exhibit a weakening of the borrower's credit strength with limited credit access and all non-performing loans. Risk 7 or "Doubtful" loans are significantly under protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that are likely to experience a loss of some magnitude, but where the amount of the expected loss is not known with enough certainty to allow for an accurate calculation of a loss amount for charge-off. This category is considered to be temporary until a charge-off amount can be reasonably determined. |
Credit_Quality_of_Loans_and_Al5
Credit Quality of Loans and Allowance for Loan Losses (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Aging analysis of past due loans | ' | ' | ||
30-59 Days Past Due | $172 | $2,594 | ||
60-89 Days Past Due | 229 | 341 | ||
Greater Than 90 Days Past Due | 1,684 | 2,501 | ||
Total Past Due | 2,085 | 5,436 | ||
Current | 264,503 | 248,957 | ||
Total loans receivable | 266,588 | 254,393 | ||
Total Loans >90 Days & Accruing | ' | ' | ||
One-to-four family residential | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
30-59 Days Past Due | 102 | 1,049 | ||
60-89 Days Past Due | 229 | 339 | ||
Greater Than 90 Days Past Due | 869 | 1,190 | ||
Total Past Due | 1,200 | 2,578 | ||
Current | 166,072 | 158,332 | ||
Total loans receivable | 167,272 | [1] | 160,910 | [1] |
Total Loans >90 Days & Accruing | ' | ' | ||
All other mortgage loans | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
30-59 Days Past Due | ' | 1,544 | ||
60-89 Days Past Due | ' | ' | ||
Greater Than 90 Days Past Due | 815 | 1,309 | ||
Total Past Due | 815 | 2,853 | ||
Current | 86,306 | 74,868 | ||
Total loans receivable | 87,121 | [1] | 77,721 | [1] |
Total Loans >90 Days & Accruing | ' | ' | ||
Commercial business loans | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
30-59 Days Past Due | 70 | ' | ||
60-89 Days Past Due | ' | ' | ||
Greater Than 90 Days Past Due | ' | ' | ||
Total Past Due | 70 | ' | ||
Current | 10,904 | 14,245 | ||
Total loans receivable | 10,974 | [1] | 14,245 | [1] |
Total Loans >90 Days & Accruing | ' | ' | ||
Consumer loans | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
30-59 Days Past Due | ' | 1 | ||
60-89 Days Past Due | ' | 2 | ||
Greater Than 90 Days Past Due | ' | 2 | ||
Total Past Due | ' | 5 | ||
Current | 1,221 | 1,512 | ||
Total loans receivable | 1,221 | [1] | 1,517 | [1] |
Total Loans >90 Days & Accruing | ' | ' | ||
[1] | * Ratings are generally assigned to consumer and residential mortgage loans on a "pass" or "fail" basis, where "fail" results in a substandard classification. Commercial loans, both secured by real estate or other assets or unsecured, are analyzed in accordance with an analytical matrix codified in the Bank's loan policy that produces a risk rating as described below. Risk 1 is unquestioned credit quality for any credit product. Loans are secured by cash and near cash collateral with immediate access to proceeds. Risk 2 is very low risk with strong credit and repayment sources. Borrower is well capitalized in a stable industry, financial ratios exceed peers and financial trends are positive. Risk 3 is very favorable risk with highly adequate credit strength and repayment sources. Borrower has good overall financial condition and adequate capitalization. Risk 4 is acceptable, average risk with adequate credit strength and repayment sources. Collateral positions must be within Bank policies. Risk 5 or "Special Mention," also known as "watch," has potential weakness that deserves Management's close attention. This risk includes loans where the borrower has developed financial uncertainties or the borrower is resolving the financial uncertainties. Bank credits have been secured or negotiations will be ongoing to secure further collateral. Risk 6 or "Substandard" loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that exhibit a weakening of the borrower's credit strength with limited credit access and all non-performing loans. Risk 7 or "Doubtful" loans are significantly under protected by the current net worth and paying capacity of the borrower or of the collateral pledged. This risk category contains loans that are likely to experience a loss of some magnitude, but where the amount of the expected loss is not known with enough certainty to allow for an accurate calculation of a loss amount for charge-off. This category is considered to be temporary until a charge-off amount can be reasonably determined. |
Credit_Quality_of_Loans_and_Al6
Credit Quality of Loans and Allowance for Loan Losses (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Non-accrual loans | $4,121 | $5,256 |
One-to-four family residential | ' | ' |
Non-accrual loans | 2,238 | 2,097 |
Nonresidential real estate and land | ' | ' |
Non-accrual loans | 1,881 | 3,123 |
All other mortgage loans | ' | ' |
Non-accrual loans | ' | ' |
Commercial business loans | ' | ' |
Non-accrual loans | ' | 32 |
Consumer loans | ' | ' |
Non-accrual loans | $2 | $4 |
Credit_Quality_of_Loans_and_Al7
Credit Quality of Loans and Allowance for Loan Losses (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Specific Allowance | $1,293 | ' | $1,293 | ' | $1,422 |
Recorded Balance | 11,789 | ' | 11,789 | ' | 12,900 |
Unpaid Principal Balance | 12,384 | ' | 12,384 | ' | 13,496 |
Average Investment in Impaired Loans | 11,927 | 11,324 | 12,291 | 11,276 | ' |
Interest Income Recognized | 135 | 52 | 376 | 248 | ' |
One-to-four family residential | ' | ' | ' | ' | ' |
Loans without a specific valuation allowance, Recorded Balance | 5,602 | ' | 5,602 | ' | 5,587 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 5,602 | ' | 5,602 | ' | 5,587 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 5,785 | 3,024 | 5,702 | 3,144 | ' |
Loans without a specific valuation allowance, Interest Income Recognized | 84 | 21 | 222 | 90 | ' |
Loans with a specific valuation allowance, Recorded Balance | 1,311 | ' | 1,311 | ' | 1,291 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 1,311 | ' | 1,311 | ' | 1,291 |
Specific Allowance | 355 | ' | 355 | ' | 248 |
Loans with a specific valuation allowance, Average Investment in Impaired Loans | 1,208 | 1,210 | 1,266 | 889 | ' |
Loans with a specific valuation allowance, Interest Income Recognized | 7 | 2 | 22 | 35 | ' |
Recorded Balance | 6,913 | ' | 6,913 | ' | 6,878 |
Unpaid Principal Balance | 6,913 | ' | 6,913 | ' | 6,878 |
Average Investment in Impaired Loans | 6,993 | 4,234 | 6,968 | 4,033 | ' |
Interest Income Recognized | 91 | 23 | 244 | 125 | ' |
All other mortgage loans | ' | ' | ' | ' | ' |
Loans without a specific valuation allowance, Recorded Balance | 2,225 | ' | 2,225 | ' | 2,781 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 2,225 | ' | 2,225 | ' | 2,781 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 2,276 | 2,324 | 2,427 | 2,179 | ' |
Loans without a specific valuation allowance, Interest Income Recognized | 23 | 3 | 72 | 58 | ' |
Loans with a specific valuation allowance, Recorded Balance | 2,502 | ' | 2,502 | ' | 3,056 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 3,097 | ' | 3,097 | ' | 3,652 |
Specific Allowance | 869 | ' | 869 | ' | 1,074 |
Loans with a specific valuation allowance, Average Investment in Impaired Loans | 2,504 | 4,723 | 2,730 | 4,998 | ' |
Loans with a specific valuation allowance, Interest Income Recognized | 20 | 25 | 56 | 64 | ' |
Recorded Balance | 4,727 | ' | 4,727 | ' | 5,837 |
Unpaid Principal Balance | 5,322 | ' | 5,322 | ' | 6,433 |
Average Investment in Impaired Loans | 4,780 | 7,047 | 5,157 | 7,177 | ' |
Interest Income Recognized | 43 | 28 | 128 | 122 | ' |
Commercial business loans | ' | ' | ' | ' | ' |
Loans without a specific valuation allowance, Recorded Balance | 80 | ' | 80 | ' | 85 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 80 | ' | 80 | ' | 85 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 81 | ' | 83 | ' | ' |
Loans without a specific valuation allowance, Interest Income Recognized | 1 | ' | 2 | ' | ' |
Loans with a specific valuation allowance, Recorded Balance | 69 | ' | 69 | ' | 100 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 69 | ' | 69 | ' | 100 |
Specific Allowance | 69 | ' | 69 | ' | 100 |
Loans with a specific valuation allowance, Average Investment in Impaired Loans | 73 | 43 | 83 | 66 | ' |
Loans with a specific valuation allowance, Interest Income Recognized | ' | 1 | 2 | 1 | ' |
Recorded Balance | 149 | ' | 149 | ' | 185 |
Unpaid Principal Balance | 149 | ' | 149 | ' | 185 |
Average Investment in Impaired Loans | 154 | 43 | 166 | 66 | ' |
Interest Income Recognized | $1 | $1 | $4 | $1 | ' |
Credit_Quality_of_Loans_and_Al8
Credit Quality of Loans and Allowance for Loan Losses (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
N | N | N | N | |
One-to-four family residential | ' | ' | ' | ' |
Number of Loans | 4 | ' | 6 | 2 |
Pre-modification Unpaid Principal Balance | $493 | ' | $909 | $538 |
Post- modification Unpaid Principal Balance | 517 | ' | 933 | 538 |
All other mortgage loans | ' | ' | ' | ' |
Number of Loans | ' | ' | 1 | ' |
Pre-modification Unpaid Principal Balance | ' | ' | 576 | ' |
Post- modification Unpaid Principal Balance | ' | ' | $576 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill And Intangible Assets Details Narrative | ' | ' | ' | ' |
Amortization of Intangible Assets | $23 | $23 | $68 | $68 |
Useful life of core deposit asset | ' | ' | '10 years | ' |
Future amortization expenses of intangible asset | ' | ' | ' | ' |
2013 | 90 | ' | 90 | ' |
2014 | $38 | ' | $38 | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill And Intangible Assets Details | ' | ' |
Goodwill | $1,719 | $1,719 |
Other intangible assets - gross | 974 | 974 |
Other intangible assets - amortization | -914 | -846 |
Total | $1,779 | $1,847 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share Details | ' | ' | ' | ' |
Weighted-average common shares outstanding (basic) | 2,841,213 | 2,935,469 | 2,871,754 | 2,937,589 |
Dilutive effect of assumed exercise of stock options | ' | ' | ' | ' |
Weighted-average common shares outstanding (diluted) | 2,841,213 | 2,935,469 | 2,871,754 | 2,937,589 |
Stock_Option_Plan_Details_Narr
Stock Option Plan (Details Narrative) | Sep. 30, 2013 |
Incentive Options | ' |
Maximum Options Authorized | 142,857 |
Non-Incentive Options | ' |
Maximum Options Authorized | 61,224 |
Stock_Option_Plan_Details
Stock Option Plan (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Number of options: | ' | ' |
Number of Options outstanding, beginning | 58,908 | 63,408 |
Number of Options granted | ' | ' |
Number of Options exercised | ' | ' |
Number of Options forfeited | 17,704 | 4,500 |
Number of Options expired | 41,204 | ' |
Number of Options outstanding, ending | ' | 58,908 |
Number of Options exercisable | ' | 58,908 |
Weighted Average Exercise Price: | ' | ' |
Weighted Average Exercise Price of Options outstanding, beginning | $13.95 | $13.95 |
Weighted Average Exercise Price of Options granted | ' | ' |
Weighted Average Exercise Price of Options exercised | ' | ' |
Weighted Average Exercise Price of Options forfeited | $13.95 | $13.95 |
Weighted Average Exercise Price of Options expired | $13.95 | ' |
Weighted Average Exercise Price of Options outstanding, ending | ' | $13.95 |
Weighted Average Exercise Price of Options exercisable | ' | $13.95 |
Regulatory_Matters_Details
Regulatory Matters (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Tier 1 Leverage Capital (to average assets) | ' | ' |
Tier 1 Capital | $34,768 | $34,774 |
Tier 1 Capital (to average assets) ratio | 8.70% | 8.70% |
Minimum amount of Tier 1 Capital for adequacy purposes | 15,970 | 16,069 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized | 19,962 | 20,086 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 5.00% | 5.00% |
Tier 1 Capital (to risk-weighted assets) | ' | ' |
Tier 1 Capital | 34,768 | 34,774 |
Tier 1 Capital (to risk-weighted assets) ratio | 14.20% | 14.70% |
Minimum amount of Tier 1 Capital for adequacy purposes | 9,773 | 9,458 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized | 14,660 | 14,187 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 6.00% | 6.00% |
Total Capital | ' | ' |
Total Capital | 37,810 | 37,734 |
Total Capital (to risk-weighted assets) ratio | 15.50% | 16.00% |
Minimum amount of capital for adequacy purposes | 19,546 | 18,916 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Minimum Capital required to be well-capitalized | $24,433 | $23,644 |
Minimum Capital required to be well-capitalized, ratio | 10.00% | 10.00% |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income Details | ' | ' |
Gross unrealized gain on securities available-for-sale | $1,186 | $3,498 |
Net unrealized loss for unfunded status of split-dollar life insurance plan liability (tax free) | -246 | -246 |
Gross unrealized loss for unfunded status of defined benefit plan liability | -1,096 | -1,096 |
Tax effect | -31 | -816 |
Net-of-tax amount | ($187) | $1,340 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | $100,884 | $111,518 |
U.S. government agencies | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | 140 | 155 |
Mortgage-backed securities of government sponsored entities | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | 77,437 | 85,830 |
Private-label collateralized mortgage obligations | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | 792 | 1,106 |
State and political subdivisions | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | 22,515 | 24,427 |
Fair Value measured on a Recurring Basis | Fair value | U.S. government agencies | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | 140 | 155 |
Fair Value measured on a Recurring Basis | Fair value | Mortgage-backed securities of government sponsored entities | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | 77,437 | 85,830 |
Fair Value measured on a Recurring Basis | Fair value | Private-label collateralized mortgage obligations | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | 792 | 1,106 |
Fair Value measured on a Recurring Basis | Fair value | State and political subdivisions | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | 22,515 | 24,427 |
Fair Value measured on a Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government agencies | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | ' | ' |
Fair Value measured on a Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities of government sponsored entities | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | ' | ' |
Fair Value measured on a Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Private-label collateralized mortgage obligations | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | ' | ' |
Fair Value measured on a Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and political subdivisions | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | ' | ' |
Fair Value measured on a Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. government agencies | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | 140 | 155 |
Fair Value measured on a Recurring Basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities of government sponsored entities | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | 77,437 | 85,830 |
Fair Value measured on a Recurring Basis | Significant Other Observable Inputs (Level 2) | Private-label collateralized mortgage obligations | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | 792 | 1,106 |
Fair Value measured on a Recurring Basis | Significant Other Observable Inputs (Level 2) | State and political subdivisions | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | 22,515 | 24,427 |
Fair Value measured on a Recurring Basis | Significant Unobservable Inputs (Level 3) | U.S. government agencies | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | ' | ' |
Fair Value measured on a Recurring Basis | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities of government sponsored entities | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | ' | ' |
Fair Value measured on a Recurring Basis | Significant Unobservable Inputs (Level 3) | Private-label collateralized mortgage obligations | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | ' | ' |
Fair Value measured on a Recurring Basis | Significant Unobservable Inputs (Level 3) | State and political subdivisions | ' | ' |
Recurring Fair Value Measurements | ' | ' |
Available-for-sale securities | ' | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Collateral-dependent impaired loans | ' | $2,437 |
Foreclosed assets | 38 | 16 |
Fair Value measured on a Non-Recurring Basis | Fair value | ' | ' |
Collateral-dependent impaired loans | ' | 2,437 |
Foreclosed assets | 38 | 16 |
Fair Value measured on a Non-Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Collateral-dependent impaired loans | ' | ' |
Foreclosed assets | ' | ' |
Fair Value measured on a Non-Recurring Basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Collateral-dependent impaired loans | ' | ' |
Foreclosed assets | ' | ' |
Fair Value measured on a Non-Recurring Basis | Significant Unobservable Inputs (Level 3) | ' | ' |
Collateral-dependent impaired loans | ' | 2,437 |
Foreclosed assets | $38 | $16 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 2) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value Measurements Details 2 | ' | ' |
Collateral-dependent impaired loans | ' | $2,437 |
Foreclosed assets | $38 | $16 |
Valuation Technique | ' | 'Market comparable properties |
Unobservable Input | 'Selling Costs | 'Selling Costs |
Range (Weighted Average) | 'Selling COsts: 10% | 'Selling Costs: 10% |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Held-to-maturity securities | $6,214 | $3,740 |
Carrying Amount | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 8,002 | 12,055 |
Held-to-maturity securities | 6,646 | 3,748 |
Loans, net of allowance for loan losses | 257,979 | 247,849 |
Federal Home Loan Bank stock | 5,025 | 5,025 |
Interest receivable | 1,371 | 1,228 |
Financial liabilities: | ' | ' |
Deposits | 326,615 | 327,737 |
Other Short Term Borrowings | 6,516 | 7,077 |
Federal Home Loan Bank Allowances | 22,957 | 21,217 |
Advance Payments by Borrowers for Taxes and Insurance | 662 | 1,069 |
Interest Payable | 53 | 51 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 8,002 | 12,055 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Financial assets: | ' | ' |
Held-to-maturity securities | 6,214 | 3,740 |
Federal Home Loan Bank stock | 5,025 | 5,025 |
Interest receivable | 1,371 | 1,228 |
Financial liabilities: | ' | ' |
Deposits | 298,337 | 317,312 |
Other Short Term Borrowings | 6,516 | 7,077 |
Federal Home Loan Bank Allowances | 23,513 | 22,048 |
Advance Payments by Borrowers for Taxes and Insurance | 662 | 1,069 |
Interest Payable | 53 | 51 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Financial assets: | ' | ' |
Loans, net of allowance for loan losses | $264,539 | $259,986 |
Transfer_and_Assumption_Agreem1
Transfer and Assumption Agreement (Details Narrative) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Transfer And Assumption Agreement Details Narrative | ' |
Expenses incurred in exiting trust business | $354 |