Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 13-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'FOUR OAKS FINCORP INC | ' |
Entity Central Index Key | '0001040799 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 8,867,653 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | |
Cash and due from banks | $8,350 | $11,890 | [1] |
Interest-earning deposits | 142,610 | 116,739 | [1] |
Cash and cash equivalents | 150,960 | 128,629 | [1] |
CDs held for investment | 28,665 | 31,850 | [1] |
Investment securities available for sale, at fair value | 23,224 | 32,566 | [1] |
Investment securities held to maturity, at amortized cost | 94,228 | 98,013 | [1] |
Total investment securities | 117,452 | 130,579 | [1] |
Loans | 482,822 | 492,712 | [1] |
Allowance for loan losses | -11,516 | -11,590 | [1] |
Net loans | 471,306 | 481,122 | [1] |
Mortgage loans held for sale | 363 | 0 | |
Accrued interest receivable | 1,509 | 1,576 | [1] |
Bank premises and equipment, net | 12,381 | 12,571 | [1] |
FHLB stock | 5,778 | 6,076 | [1] |
Investment in life insurance | 14,434 | 14,380 | [1] |
Foreclosed assets | 7,404 | 8,502 | [1] |
Other assets | 5,971 | 6,261 | [1] |
Total assets | 816,223 | 821,546 | [1] |
Deposits: | ' | ' | |
Noninterest-bearing demand | 233,523 | 228,203 | [1] |
Money market, NOW accounts and savings accounts | 161,253 | 166,102 | [1] |
Time deposits, $100,000 and over | 157,156 | 162,403 | [1] |
Other time deposits | 97,300 | 100,912 | [1] |
Total deposits | 649,232 | 657,620 | [1] |
Borrowings | 112,000 | 112,000 | [1] |
Subordinated debentures | 12,372 | 12,372 | [1] |
Subordinated promissory notes | 12,000 | 12,000 | [1] |
Accrued interest payable | 1,680 | 1,642 | [1] |
Other liabilities | 4,534 | 4,289 | [1] |
Total liabilities | 791,818 | 799,923 | [1] |
Commitments (Note B) | ' | ' | [1] |
Common stock, $1.00 par value, 80,000,000 shares authorized; 8,867,653 and 7,977,657 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively. | 8,868 | 7,978 | [1] |
Additional paid-in capital | 34,308 | 34,269 | [1] |
Accumulated deficit | -19,033 | -20,390 | [1] |
Accumulated other comprehensive income (loss) | 262 | -234 | [1] |
Total shareholders' equity | 24,405 | 21,623 | [1] |
Total liabilities and shareholders' equity | $816,223 | $821,546 | [1] |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 8,867,653 | 7,977,657 |
Common stock, shares outstanding | 8,867,653 | 7,977,657 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest and dividend income: | ' | ' |
Loans, including fees | $6,561 | $6,996 |
Taxable investments | 655 | 249 |
Dividends | 82 | 99 |
Interest-earning deposits | 158 | 168 |
Total interest and dividend income | 7,456 | 7,512 |
Interest expense: | ' | ' |
Deposits | 735 | 950 |
Borrowings | 1,002 | 1,002 |
Subordinated debentures | 49 | 51 |
Subordinated promissory notes | 252 | 252 |
Total interest expense | 2,038 | 2,255 |
Net interest income | 5,418 | 5,257 |
Provision for loan losses | 0 | 35 |
Net interest income after provision for loan losses | 5,418 | 5,222 |
Non-interest income: | ' | ' |
Service charges on deposit accounts | 400 | 465 |
Other service charges, commissions and fees | 704 | 730 |
Gains on sale of investment securities available for sale, net | 124 | 49 |
Recovery of impairment loss and gain on redemption of preferred shares | 89 | 0 |
Total other-than-temporary impairment loss | 0 | -64 |
Portion of loss recognized in other comprehensive income | 0 | 64 |
Net impairment loss recognized in earnings | 0 | 0 |
Income from investment in life insurance | 54 | 69 |
Other | 731 | 796 |
Total non-interest income | 2,102 | 2,109 |
Non-interest expenses: | ' | ' |
Salaries | 2,411 | 2,783 |
Employee benefits | 486 | 536 |
Occupancy expenses | 290 | 347 |
Equipment expenses | 299 | 363 |
Professional and consulting fees | 567 | 703 |
FDIC assessments | 454 | 441 |
Foreclosed asset-related costs, net | 364 | 454 |
Collection expenses | 182 | 357 |
Other | 1,110 | 1,270 |
Total non-interest expenses | 6,163 | 7,254 |
Income before income taxes | 1,357 | 77 |
Income tax | 0 | 0 |
Net income | $1,357 | $77 |
Basic net income per common share (in usd per share) | $0.17 | $0.01 |
Diluted net income per common share (in usd per share) | $0.17 | $0.01 |
Weighted Average Shares Outstanding, Basic | 8,036,990 | 7,821,582 |
Weighted Average Shares Outstanding, Diluted | 8,049,359 | 7,821,582 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $1,357 | $77 |
Securities available for sale: | ' | ' |
Unrealized gains on securities available for sale | 648 | 17 |
Tax effect | 0 | -8 |
Reclassification of gains recognized in net income | -124 | -49 |
Tax effect | 0 | 20 |
Amortization of unrealized gains on investment securities transferred from available-for-sale to held-to-maturity | -28 | 0 |
Portion of other-than-temporary loss recognized in other comprehensive income | 0 | -64 |
Tax effect | 0 | 26 |
Total other comprehensive income (loss) | 496 | -58 |
Comprehensive income | $1,853 | $19 |
CONSOLIDATED_STATEMENT_OF_SHAR
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED) (USD $) | Total | Common stock [Member] | Additional paid-in capital [Member] | Accumulated deficit [Member] | Accumulated other comprehensive income [Member] | |
In Thousands, except Share data, unless otherwise specified | ||||||
BEGINNING BALANCE at Dec. 31, 2012 | $22,676 | $7,815 | $34,192 | ($20,040) | $709 | |
BEGINNING BALANCE (in shares) at Dec. 31, 2012 | ' | 7,815,385 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | |
Net income | 77 | ' | ' | 77 | ' | |
Other comprehensive loss | -58 | ' | ' | ' | -58 | |
Issuance of common stock (in shares) | ' | 27,887 | ' | ' | ' | |
Issuance of common stock | 33 | 28 | 5 | ' | ' | |
Stock based compensation | 15 | ' | 15 | ' | ' | |
ENDING BALANCE at Mar. 31, 2013 | 22,743 | 7,843 | 34,212 | -19,963 | 651 | |
ENDING BALANCE (in shares) at Mar. 31, 2013 | ' | 7,843,272 | ' | ' | ' | |
BEGINNING BALANCE at Dec. 31, 2013 | 21,623 | [1] | 7,978 | 34,269 | -20,390 | -234 |
BEGINNING BALANCE (in shares) at Dec. 31, 2013 | ' | 7,977,657 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | |
Net income | 1,357 | ' | ' | 1,357 | ' | |
Other comprehensive loss | 496 | ' | ' | ' | 496 | |
Issuance of common stock (in shares) | ' | 889,996 | ' | ' | ' | |
Issuance of common stock | 929 | 890 | 39 | ' | ' | |
Stock based compensation | 0 | ' | ' | ' | ' | |
ENDING BALANCE at Mar. 31, 2014 | $24,405 | $8,868 | $34,308 | ($19,033) | $262 | |
ENDING BALANCE (in shares) at Mar. 31, 2014 | ' | 8,867,653 | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' | |
Net income | $1,357 | $77 | |
Adjustments to reconcile net income to net cash provided by operations: | ' | ' | |
Provision for loan losses | 0 | 35 | |
Provision for depreciation and amortization | 220 | 264 | |
Net amortization of bond premiums and discounts | 325 | 469 | |
Stock based compensation | 0 | 15 | |
Gain on sale of investment securities | -124 | -49 | |
Gain on sale of branches | 0 | -586 | |
Loss on sale of foreclosed assets, net | 20 | 39 | |
Valuation adjustment on foreclosed assets | 212 | 415 | |
Earnings on bank-owned life insurance | -54 | -69 | |
Gain on sale of mortgage loans held for sale | -110 | -165 | |
Originations of mortgage loans held for sale | -4,723 | -6,513 | |
Proceeds from sale of mortgage loans held for sale | 4,470 | 6,985 | |
Recovery of impairment loss and gain on redemption of preferred shares | -89 | 0 | |
Changes in assets and liabilities: | ' | ' | |
Other assets | 124 | 3,190 | |
Accrued interest receivable | 67 | 301 | |
Other liabilities | 245 | -1,190 | |
Accrued interest payable | 38 | -197 | |
Net cash provided by operating activities | 1,978 | 3,021 | |
Cash flows from investing activities: | ' | ' | |
Proceeds from sales and calls of investment securities available for sale | 13,406 | 2,197 | |
Proceeds from paydowns of investment securities available for sale | 261 | 3,124 | |
Proceeds from paydowns of investment securities held to maturity | 3,472 | 1,420 | |
Purchases of investment securities available for sale | -3,462 | -10,007 | |
Purchases of investment securities held to maturity | 0 | -5,250 | |
Net cash from sale of branches | 0 | -39,622 | |
Redemption (purchase) of CDs held for investment | 3,185 | -1,960 | |
Redemption of FHLB stock | 298 | 339 | |
Net decrease in loans outstanding | 9,563 | 12,598 | |
Purchases of bank premises and equipment | -30 | -58 | |
Proceeds from sales of foreclosed assets | 1,119 | 1,376 | |
Net recoveries on foreclosed assets | 0 | 4 | |
Net cash provided by (used in) investing activities | 27,812 | -35,839 | |
Cash flows from financing activities: | ' | ' | |
Net decrease in deposit accounts | -8,388 | -3,376 | |
Proceeds from issuance of common stock | 929 | 33 | |
Net cash used in financing activities | -7,459 | -3,343 | |
Change in cash and cash equivalents | 22,331 | -36,161 | |
Cash and cash equivalents at beginning of period | 128,629 | [1] | 183,150 |
Cash and cash equivalents at end of period | 150,960 | 146,989 | |
Supplemental disclosures of cash flow information: | ' | ' | |
Interest paid on deposits and borrowings | -2,000 | -2,452 | |
Supplemental disclosure for sale of branches: | ' | ' | |
Proceeds from sale of fixed assets | 0 | 1,867 | |
Proceeds from sale of loans | 0 | 15,061 | |
Assumption of customer deposits | 0 | -57,361 | |
Gain on sale of branches | 0 | 586 | |
Proceeds from sale of other assets | 0 | 225 | |
Total proceeds paid to First Bank | 0 | -39,622 | |
Supplemental disclosures of noncash investing and financing activities: | ' | ' | |
Unrealized gains (losses) on investment securities available for sale, net of taxes | 496 | -58 | |
Transfers of loans to foreclosed assets | 253 | 918 | |
Loans transferred from held for sale to held for investment | $0 | $1,469 | |
[1] | Derived from audited consolidated financial statements. |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
In management’s opinion, the financial information contained in the accompanying unaudited consolidated financial statements reflects all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial information as of and for the three months ended March 31, 2014 and 2013, in conformity with accounting principles generally accepted in the United States of America. The consolidated financial statements include the accounts and transactions of Four Oaks Fincorp, Inc., a bank holding company incorporated under the laws of the State of North Carolina (the “Company”), and its wholly-owned subsidiary, Four Oaks Bank & Trust Company (the “Bank”). Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014. | |
The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to the consolidated financial statements filed as part of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. This Quarterly Report should be read in conjunction with such Annual Report. | |
Certain amounts previously presented in our Consolidated Financial Statements for the prior periods have been reclassified to conform to current classifications. All such reclassifications had no impact on the prior periods' Statements of Operations, Comprehensive Income (Loss), or Shareholders' Equity as previously reported. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
COMMITMENTS AND CONTINGENCIES | ' | |||
COMMITMENTS AND CONTIGENCIES | ||||
The following table presents loan commitments at March 31, 2014. | ||||
March 31, 2014 | ||||
(amounts in thousands) | ||||
Commitments to extend credit | $ | 21,477 | ||
Undisbursed lines of credit | 51,601 | |||
Financial stand-by letters of credit | 228 | |||
Performance stand-by letters of credit | 467 | |||
Legally binding commitments | 73,773 | |||
Unused credit card lines | 14,507 | |||
Total | $ | 88,280 | ||
On May 20, 2013, the U.S. Department of Justice ("DOJ") issued a subpoena to the Bank requiring the production of documents in connection with an investigation of consumer fraud related to third party payment processing. In connection with this investigation, the Bank negotiated a civil settlement with the DOJ (the "Consent Order"), which was filed with the United States District Court for the Eastern District of North Carolina on January 8, 2014. The Consent Order was filed contemporaneously with the filing of a complaint by the DOJ alleging violation of a variety of laws, including money laundering laws. As part of the terms of the Consent Order, the Bank agreed to pay a civil monetary penalty in the amount of $1.0 million, plus a civil forfeiture in the amount of $200,000. The Consent Order was approved by the United States District Court for the Eastern District of North Carolina on April 25, 2014 and payment of the civil monetary penalty and civil forfeiture occurred on May 1, 2014. | ||||
In October 2013, multiple putative class action lawsuits were filed in United States district courts across the country against a number of different banks based on the banks' alleged role in "payday lending". Four of these lawsuits, pending in the Northern District of Georgia, the Middle District of North Carolina, the District of Maryland, and the Southern District of Florida, name the Bank as one of the defendants. The lawsuits allege that, by processing Automated Clearing House transactions indirectly on behalf of "payday lenders," the Bank is illegally participating in an enterprise to collect unlawful debts and is therefore liable to plaintiffs for damages under the federal Racketeer Influenced and Corrupt Organizations Act. | ||||
The lawsuits also allege a variety of state law claims. The Bank moved to dismiss each of these lawsuits. The Middle District of North Carolina granted the motion in part and denied it in part. The motions to dismiss in the three other cases are awaiting decision. | ||||
The Company is a party to certain other legal actions in the ordinary course of our business. The Company believes these actions are routine in nature and incidental to the operation of our business. While the outcome of these actions cannot be predicted with certainty, management’s present judgment is that the ultimate resolution of these matters will not have a material adverse impact on our business, financial condition, results of operations, cash flows or prospects. If, however, the Company's assessment of these actions is inaccurate, or there are any significant adverse developments in these actions, our business, financial condition, results of operations, cash flows and prospects could be adversely affected. |
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Earnings Per Share [Abstract] | ' | ||||||
NET INCOME PER SHARE | ' | ||||||
NET INCOME PER SHARE | |||||||
Basic net income per share represents earnings credited to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options. | |||||||
Basic and diluted net income per common share have been computed based upon net income as presented in the accompanying consolidated statements of operations divided by the weighted average number of common shares outstanding or assumed to be outstanding as summarized below: | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Weighted average number of common shares used in computing basic net income per common share | 8,036,990 | 7,821,582 | |||||
Effect of dilutive stock options | 12,369 | — | |||||
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per common share | 8,049,359 | 7,821,582 | |||||
For the three month period ended March 31, 2014, there were 12,369 dilutive shares as the average market price for the shares than the exercise price. For the three month period ended March 31, 2013 all stock options were considered anti-dilutive because the average market price for the shares during the period was less than the assumed proceeds that would be received by the Company upon exercise of the options. | |||||||
For the periods ended March 31, 2014 and 2013, there were 192,930 and 308,880 anti-dilutive stock options outstanding, respectively, which represented all of the options outstanding for both periods. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||||||
INVESTMENT SECURITIES | ||||||||||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of securities available for sale and securities held to maturity as of March 31, 2014 and December 31, 2013 are as follows: | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Available for Sale: | (amounts in thousands) | |||||||||||||||||||||||
Taxable municipal securities | $ | 9,638 | $ | 146 | $ | 19 | $ | 9,765 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 13,000 | 11 | 57 | 12,954 | ||||||||||||||||||||
Trust preferred securities | 500 | — | 90 | 410 | ||||||||||||||||||||
Equity securities | 53 | 42 | — | 95 | ||||||||||||||||||||
Total | $ | 23,191 | $ | 199 | $ | 166 | $ | 23,224 | ||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Held to Maturity: | (amounts in thousands) | |||||||||||||||||||||||
Taxable municipal securities | $ | 3,622 | $ | — | $ | 93 | $ | 3,529 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 86,352 | 322 | 1,136 | 85,538 | ||||||||||||||||||||
FNMA | 4,254 | 1 | 1 | 4,254 | ||||||||||||||||||||
Total | $ | 94,228 | $ | 323 | $ | 1,230 | $ | 93,321 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Available for Sale: | (amounts in thousands) | |||||||||||||||||||||||
Taxable municipal securities | $ | 6,176 | $ | — | $ | 243 | $ | 5,933 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 25,773 | — | 296 | 25,477 | ||||||||||||||||||||
FNMA | — | — | — | — | ||||||||||||||||||||
Trust preferred securities | 1,175 | — | 150 | 1,025 | ||||||||||||||||||||
Equity securities | 98 | 33 | — | 131 | ||||||||||||||||||||
Total | $ | 33,222 | $ | 33 | $ | 689 | $ | 32,566 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Held to Maturity: | (amounts in thousands) | |||||||||||||||||||||||
Taxable Municipals | $ | 3,635 | $ | 3 | $ | 157 | $ | 3,481 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 89,892 | 162 | 2,171 | 87,883 | ||||||||||||||||||||
FNMA | 4,486 | 19 | 4,467 | |||||||||||||||||||||
Total | $ | 98,013 | $ | 165 | $ | 2,347 | $ | 95,831 | ||||||||||||||||
During the second quarter of 2013, the Company transferred $76.5 million of available-for-sale state and municipal debt and mortgage-backed securities to the held-to-maturity category, reflecting the Company's intent to hold those securities to maturity. Transfers of investment securities into the held-to-maturity category from the available-for-sale category are made at fair value at the date of transfer. The related $228,000 of unrealized holding gains that were included in the transfer is retained in the carrying value of the held-to-maturity securities and is included in accumulated other comprehensive income. This amount will be amortized as an adjustment to interest income over the remaining life of the securities. This will offset the impact of amortization of the net premium created in the transfer. There were no gains or losses recognized as a result of this transfer. | ||||||||||||||||||||||||
The following tables show gross unrealized losses and fair values of investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at March 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||
Taxable municipal securities | $ | 1,479 | $ | 19 | $ | — | $ | — | $ | 1,479 | $ | 19 | ||||||||||||
Mortgage-backed securities - GNMA | 9,858 | 57 | — | — | 9,858 | 57 | ||||||||||||||||||
Trust preferred securities | — | — | 410 | 90 | 410 | 90 | ||||||||||||||||||
Total temporarily impaired securities | $ | 11,337 | $ | 76 | $ | 410 | $ | 90 | $ | 11,747 | $ | 166 | ||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities held to maturity: | ||||||||||||||||||||||||
Taxable municipal securities | $ | 3,529 | $ | 93 | $ | — | $ | — | $ | 3,529 | $ | 93 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||
GNMA | 54,630 | 1,055 | 2,179 | 81 | 56,809 | 1,136 | ||||||||||||||||||
FNMA | 2,911 | 1 | — | — | 2,911 | 1 | ||||||||||||||||||
Total temporarily impaired securities | $ | 61,070 | $ | 1,149 | $ | 2,179 | $ | 81 | $ | 63,249 | $ | 1,230 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||
Taxable municipal securities | $ | 5,933 | $ | 243 | $ | — | $ | — | $ | 5,933 | $ | 243 | ||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 25,477 | 296 | — | — | 25,477 | 296 | ||||||||||||||||||
FNMA | — | — | — | — | — | — | ||||||||||||||||||
Trust preferred securities | — | — | 410 | 90 | 410 | 90 | ||||||||||||||||||
Total temporarily impaired securities | $ | 31,410 | $ | 539 | $ | 410 | $ | 90 | $ | 31,820 | $ | 629 | ||||||||||||
Other than temporary impairment | ||||||||||||||||||||||||
Trust preferred securities | $ | — | $ | — | $ | 615 | $ | 60 | $ | 615 | $ | 60 | ||||||||||||
Total other than temporarily impaired securities | $ | — | $ | — | $ | 615 | $ | 60 | $ | 615 | $ | 60 | ||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities held to maturity: | ||||||||||||||||||||||||
Taxable municipal securities | $ | 2,776 | $ | 157 | $ | — | $ | — | $ | 2,776 | $ | 157 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||
GNMA | 74,830 | 2,073 | 2,223 | 98 | 77,053 | 2,171 | ||||||||||||||||||
FNMA | 4,467 | 19 | — | — | 4,467 | 19 | ||||||||||||||||||
Total temporarily impaired securities | $ | 82,073 | $ | 2,249 | $ | 2,223 | $ | 98 | $ | 84,296 | $ | 2,347 | ||||||||||||
Management evaluates each quarter whether unrealized losses on securities represent impairment that is other than temporary. For debt securities, the Company considers its intent to sell the securities or if it is more likely than not that the Company will be required to sell the securities. If such impairment is identified, based upon the intent to sell or the more likely than not threshold, the carrying amount of the security is reduced to fair value with a charge to earnings. Upon the result of the aforementioned review, management then reviews for potential other than temporary impairment based upon other qualitative factors. In making this evaluation, management considers changes in market rates relative to those available when the security was acquired, changes in market expectations about the timing of cash flows from securities that can be prepaid, performance of the debt security, and changes in the market's perception of the issuer's financial health and the security's credit quality. If determined that a debt security has incurred other than temporary impairment, then the amount of the credit related impairment is determined. If a credit loss is evident, the amount of the credit loss is charged to earnings and the non-credit related impairment is recognized through other comprehensive income. | ||||||||||||||||||||||||
The unrealized gains and losses on debt securities at March 31, 2014 resulted from changing market interest rates compared to the yields available at the time the underlying securities were purchased. The unrealized gains and losses on trust preferred securities at March 31, 2014 resulted from changes in market values and available third party valuations. As of March 31, 2014 there were 32 of 54 Government National Mortgage Association ("GNMA") mortgage backed securities ("MBS"), 2 of 3 Federal National Mortgage Association ("FNMA") MBS securities, 12 of 20 taxable municipal securities, and one trust preferred security that contained net unrealized losses. Management identified no impairment related to credit quality. At March 31, 2014 management had the intent and ability to hold impaired securities and no impairment was evaluated as other than temporary. As a result, no other than temporary impairment losses were recognized during the three months ended March 31, 2014. | ||||||||||||||||||||||||
The amortized cost and fair value of available for sale and held to maturity securities at March 31, 2014 by contractual maturities are shown on the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
Available for Sale | ||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||
Due after one year through five years | $ | — | $ | — | ||||||||||||||||||||
Due after five years through ten years | — | — | ||||||||||||||||||||||
Due after ten years | 9,638 | 9,765 | ||||||||||||||||||||||
Total taxable municipal securities | 9,638 | 9,765 | ||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||
Due within one year | — | — | ||||||||||||||||||||||
Due after one year through five years | — | — | ||||||||||||||||||||||
Due after five years through ten years | 13,000 | 12,954 | ||||||||||||||||||||||
Due after ten years | — | — | ||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 13,000 | 12,954 | ||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||
Trust preferred securities | 500 | 410 | ||||||||||||||||||||||
Equity securities | 53 | 95 | ||||||||||||||||||||||
Total other securities | 553 | 505 | ||||||||||||||||||||||
Total available for sale securities | $ | 23,191 | $ | 23,224 | ||||||||||||||||||||
Held to Maturity | ||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||
Due within one year | — | — | ||||||||||||||||||||||
Due after one year through five years | 989 | 980 | ||||||||||||||||||||||
Due after five years through ten years | 2,633 | 2,549 | ||||||||||||||||||||||
Due after ten years | — | — | ||||||||||||||||||||||
Total taxable municipal securities | 3,622 | 3,529 | ||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||
Due within one year | — | — | ||||||||||||||||||||||
Due after one year through five years | 54,621 | 54,656 | ||||||||||||||||||||||
Due after five years through ten years | 29,033 | 28,473 | ||||||||||||||||||||||
Due after ten years | 6,952 | 6,663 | ||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 90,606 | 89,792 | ||||||||||||||||||||||
Total Munis, GNMA, FNMA securities | $ | 94,228 | $ | 93,321 | ||||||||||||||||||||
Securities with a carrying value of approximately $83.0 million and $92.8 million at March 31, 2014 and December 31, 2013, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. Sales and calls of securities available for sale for the three months ended March 31, 2014 and 2013 of $13.4 million and $2.2 million generated gross realized gains of $124,000 and $49,000, respectively, and no gross realized losses for either period. There was an additional $89,000 recovery of a prior period impairment loss and an additional gain on the redemption of one trust preferred security as of March 31, 2014. |
LOANS
LOANS | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
LOANS | ' | |||||||||||||||||||||||||||||||
LOANS | ||||||||||||||||||||||||||||||||
The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures, which are reviewed on a regular basis. Each class of loans detailed below is subject to risks that could have an adverse impact on the credit quality of the loan portfolio. Loans are primarily made in the Company's market area in North Carolina, principally Johnston County, and parts of Wake, Harnett, Duplin, Sampson, and Moore counties. | ||||||||||||||||||||||||||||||||
Commercial and industrial loans | ||||||||||||||||||||||||||||||||
Each commercial loan or lease is underwritten based primarily upon the customer's ability to generate the required cash flow to service the debt in accordance with the contractual terms and conditions of the loan agreement. A complete understanding of the borrower's businesses, including the experience and background of the principals, is obtained prior to approval. To the extent that the loan or lease is secured by collateral, the likely value of the collateral and what level of strength the collateral brings to the transaction is evaluated. This collateral is generally comprised of personal property or business assets, such as inventory or accounts receivable. To the extent that the principals or other parties provide personal guarantees, the relative financial strength and liquidity of each guarantor is assessed. Common risks include general economic conditions within the markets the Bank serves, as well as risks that are specific to each transaction, including operational performance of the business, collectability of receivables, demand for products and services, personal events such as disability or change in marital status, and reductions in the value of collateral. | ||||||||||||||||||||||||||||||||
Commercial construction and land development loans | ||||||||||||||||||||||||||||||||
Commercial construction and land development loans are fully underwritten based on the borrower's repayment capacity and experience, as well as the project's structure, market, and financial feasibility. All debts and sources of income are analyzed prior to commitment. These loans are highly dependent on the supply and demand for commercial real estate and developed lots in the markets served by the Bank. Deterioration in demand could result in significant decreases in the underlying collateral values and make repayment of the outstanding loans more difficult for customers. | ||||||||||||||||||||||||||||||||
Commercial real estate loans | ||||||||||||||||||||||||||||||||
Commercial real estate loans consist primarily of loans secured by nonresidential owner or non-owner occupied real estate, multifamily housing, and agricultural loans. Owner-occupied commercial properties are real estate properties whose loan repayment capacities are based on the credit strength and cash flow of the business occupying and operating the property. Non-owner occupied and multifamily commercial real estate are primarily dependent on successful operation or management of the property. The primary risk associated with these loans is the ability of the income-producing property to collateralize the loan to produce adequate cash flow to service the debt. High unemployment or generally weak economic conditions may result in customers having to provide rental rate concessions to achieve adequate occupancy rates. While commercial real estate loans are normally secured by commercial buildings for office, storage and warehouse space, it is possible that the liquidation of the collateral will not fully satisfy the obligation. | ||||||||||||||||||||||||||||||||
Residential construction loans | ||||||||||||||||||||||||||||||||
Residential construction loans are made to both individuals and builders/contractors and are typically secured by 1-4 family residential property. The Bank has stringent underwriting and initial investment requirements for new residential construction loans. The primary source of repayment on these loans comes from funds due to the sale of the underlying property or from permanent financing obtained by the individual building the residence. Significant and rapid declines in real estate values or demand can result in increased difficulty in selling these properties and/or converting these construction loans to permanent loans. Such a decline in values has led to unprecedented levels of foreclosures and losses within the banking industry. | ||||||||||||||||||||||||||||||||
Residential mortgage loans | ||||||||||||||||||||||||||||||||
Each residential mortgage loan is underwritten by performing an analysis of the borrower's cash flow, as well as reviewing credit reports for items such as payment history, credit utilization, length of credit history, types of credit currently in use, and recent credit inquiries. Since these loans are secured by collateral, the likely value of that collateral is evaluated. Common risks to these loans that are not specific to individual transactions include general economic conditions within the markets the Bank serves, particularly unemployment and potential declines in real estate values. Personal events such as disability or change in marital status also add risk to residential mortgage loans. Revolving mortgage loans are often secured by second liens on residential real estate, thereby making such loans particularly susceptible to declining collateral values. | ||||||||||||||||||||||||||||||||
A substantial decline in collateral value could render a second lien position to be effectively unsecured. Additional risks include lien perfection inaccuracies and disputes with first lien holders that may further weaken the collateral position. Further, the open-end structure of these loans creates the risk that customers may draw on the lines in excess of the collateral value if there have been significant declines since origination. | ||||||||||||||||||||||||||||||||
Consumer and other loans | ||||||||||||||||||||||||||||||||
Consumer and other loans include loans secured by personal property such as automobiles, marketable securities, other titled recreational vehicles, including boats and motorcycles, as well as unsecured consumer debt. The value of underlying collateral within this class is especially volatile due to potential rapid depreciation in values since date of loan origination in excess of principal repayment. Consumer loan collections are sensitive to job loss, illness and other personal factors. | ||||||||||||||||||||||||||||||||
The classification of loans as of March 31, 2014 and December 31, 2013 are summarized as follows: | ||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 25,626 | $ | 25,858 | ||||||||||||||||||||||||||||
Commercial construction and land development | 62,599 | 66,253 | ||||||||||||||||||||||||||||||
Commercial real estate | 208,783 | 214,159 | ||||||||||||||||||||||||||||||
Residential construction | 28,626 | 28,697 | ||||||||||||||||||||||||||||||
Residential mortgage | 146,841 | 147,300 | ||||||||||||||||||||||||||||||
Consumer | 7,041 | 6,750 | ||||||||||||||||||||||||||||||
Consumer credit cards | 2,189 | 2,339 | ||||||||||||||||||||||||||||||
Business credit cards | 1,175 | 1,124 | ||||||||||||||||||||||||||||||
Other | 446 | 738 | ||||||||||||||||||||||||||||||
Gross loans | 483,326 | 493,218 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Net deferred loan fees | (504 | ) | (506 | ) | ||||||||||||||||||||||||||||
Net loans before allowance | 482,822 | 492,712 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (11,516 | ) | (11,590 | ) | ||||||||||||||||||||||||||||
Total net loans | $ | 471,306 | $ | 481,122 | ||||||||||||||||||||||||||||
Nonperforming assets at March 31, 2014 and December 31, 2013 consist of the following: | ||||||||||||||||||||||||||||||||
March 31, 2014 | 31-Dec-13 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Loans past due ninety days or more and still accruing | $ | 9 | $ | 23 | ||||||||||||||||||||||||||||
Nonaccrual loans | 28,250 | 27,227 | ||||||||||||||||||||||||||||||
Foreclosed assets | 7,404 | 8,502 | ||||||||||||||||||||||||||||||
Total | $ | 35,663 | $ | 35,752 | ||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||||||
The allowance for loan losses represents management’s estimate of an amount adequate to provide for known and inherent losses in the loan portfolio in the normal course of business. Management evaluates the adequacy of this allowance at least quarterly during which time those loans that are identified as impaired are evaluated individually. | ||||||||||||||||||||||||||||||||
The following tables are an analysis of the allowance for loan losses by loan class, as of and for the three months ended March 31, 2014 and 2013 and as of and for the twelve months ended December 31, 2013. | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | (amounts in thousands) | |||||||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 1,290 | $ | 4,083 | $ | 2,262 | $ | 287 | $ | 3,522 | $ | 72 | $ | 74 | $ | 11,590 | ||||||||||||||||
Provision for loan losses | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Loans charged-off | (23 | ) | (153 | ) | (207 | ) | — | (67 | ) | (42 | ) | — | (492 | ) | ||||||||||||||||||
Recoveries | 39 | 42 | 159 | — | 142 | 15 | 21 | 418 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | 16 | (111 | ) | (48 | ) | — | 75 | (27 | ) | 21 | (74 | ) | ||||||||||||||||||||
Balance, March 31, 2014 | $ | 1,306 | $ | 3,972 | $ | 2,214 | $ | 287 | $ | 3,597 | $ | 45 | $ | 95 | $ | 11,516 | ||||||||||||||||
Ending Balance: individually | $ | 265 | $ | 509 | $ | 874 | $ | 137 | $ | 470 | $ | — | $ | — | $ | 2,255 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | $ | 1,041 | $ | 3,463 | $ | 1,340 | $ | 150 | $ | 3,127 | $ | 45 | $ | 95 | $ | 9,261 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending Balance | $ | 26,801 | $ | 62,599 | $ | 208,783 | $ | 28,626 | $ | 146,841 | $ | 9,230 | $ | 446 | $ | 483,326 | ||||||||||||||||
Less Ending Balance: individually evaluated for impairment | $ | 796 | $ | 11,180 | $ | 12,429 | $ | 695 | $ | 9,714 | $ | 553 | $ | — | $ | 35,367 | ||||||||||||||||
Ending balance: collectively | $ | 26,005 | $ | 51,419 | $ | 196,354 | $ | 27,931 | $ | 137,127 | $ | 8,677 | $ | 446 | $ | 447,959 | ||||||||||||||||
evaluated for impairment (1) | ||||||||||||||||||||||||||||||||
(1) In 2013, the the Bank began evaluating small dollar homogeneous impaired loans collectively for impairment and these impaired loans are included in this total. At March 31, 2014 there were $1.8 million in impaired loans collectively evaluated for impairment with $233,000 in reserves established. | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | (amounts in thousands) | |||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Provision for loan losses | (12 | ) | 941 | (252 | ) | 39 | (702 | ) | 30 | (9 | ) | 35 | ||||||||||||||||||||
Loans charged-off | (18 | ) | (660 | ) | (238 | ) | — | (610 | ) | (91 | ) | — | (1,617 | ) | ||||||||||||||||||
Recoveries | 23 | 87 | 1 | — | 123 | 46 | — | 280 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | 5 | (573 | ) | (237 | ) | — | (487 | ) | (45 | ) | — | (1,337 | ) | |||||||||||||||||||
Balance, March 31, 2013 | $ | 1,178 | $ | 7,619 | $ | 2,472 | $ | 462 | $ | 3,282 | $ | 173 | $ | 61 | $ | 15,247 | ||||||||||||||||
Ending Balance: individually | $ | 500 | $ | 1,496 | $ | 270 | $ | 60 | $ | 721 | $ | 5 | $ | — | $ | 3,052 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | $ | 678 | $ | 6,123 | $ | 2,202 | $ | 402 | $ | 2,561 | $ | 168 | $ | 61 | $ | 12,195 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending Balance | $ | 29,202 | $ | 84,843 | $ | 200,939 | $ | 20,895 | $ | 140,820 | $ | 9,281 | $ | 960 | $ | 486,940 | ||||||||||||||||
Less Ending Balance: individually evaluated for impairment | $ | 1,287 | $ | 19,339 | $ | 17,268 | $ | 833 | $ | 15,237 | $ | 10 | $ | — | $ | 53,974 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 27,915 | $ | 65,504 | $ | 183,671 | $ | 20,062 | $ | 125,583 | $ | 9,271 | $ | 960 | $ | 432,966 | ||||||||||||||||
Twelve Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | (amounts in thousands) | |||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Provision for loan losses | 2 | 4 | 15 | 2 | 11 | 1 | — | 35 | ||||||||||||||||||||||||
Loans charged-off | (411 | ) | (3,759 | ) | (2,220 | ) | (138 | ) | (1,559 | ) | (271 | ) | — | (8,358 | ) | |||||||||||||||||
Recoveries | 514 | 587 | 1,506 | — | 599 | 154 | 4 | 3,364 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | 103 | (3,172 | ) | (714 | ) | (138 | ) | (960 | ) | (117 | ) | 4 | (4,994 | ) | ||||||||||||||||||
Balance, December 31, 2013 | $ | 1,290 | $ | 4,083 | $ | 2,262 | $ | 287 | $ | 3,522 | $ | 72 | $ | 74 | $ | 11,590 | ||||||||||||||||
Ending Balance: individually | $ | 80 | $ | 264 | $ | 887 | $ | 137 | $ | 457 | $ | — | $ | — | $ | 1,825 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | $ | 1,210 | $ | 3,819 | $ | 1,375 | $ | 150 | $ | 3,065 | $ | 72 | $ | 74 | $ | 9,765 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending Balance | $ | 26,982 | $ | 66,253 | $ | 214,159 | $ | 28,697 | $ | 147,300 | $ | 9,089 | $ | 738 | $ | 493,218 | ||||||||||||||||
Less Ending Balance: individually evaluated for impairment | 652 | 12,234 | 12,345 | 1,181 | 11,043 | — | — | 37,455 | ||||||||||||||||||||||||
Ending balance: collectively | $ | 26,330 | $ | 54,019 | $ | 201,814 | $ | 27,516 | $ | 136,257 | $ | 9,089 | $ | 738 | $ | 455,763 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
(1) In mid 2013, theBank began evaluating small dollar homogeneous impaired loans collectively for impairment and these impaired loans are included in this total. At March 31, 2014 there were $1.7 million in impaired loans collectively evaluated for impairment with $226,000 in reserves established. | ||||||||||||||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||||||||||||||
The Company uses an internal grading system to assign the degree of inherent risk on each individual loan. The grade is initially assigned by the lending officer and reviewed by the loan administration function throughout the life of the loan. The credit grades have been defined as follows: | ||||||||||||||||||||||||||||||||
• | Grade 1 - Lowest Risk | |||||||||||||||||||||||||||||||
Loans secured by properly margined liquid collateral such as certificates of deposit, government securities, cash value of life insurance, stock actively traded on one of the major stock exchanges, etc. Repayment is definite and being handled as agreed. Maintains a strong, liquid financial condition as evidenced by a current financial statement in the Bank. Repayment agreement is definite, realistic, and being handled as agreed. | ||||||||||||||||||||||||||||||||
•Grade 2 - Satisfactory Quality | ||||||||||||||||||||||||||||||||
Loans secured by properly margined collateral with a definite repayment agreement in effect. Unsecured loans with repayment agreements that are definite, realistic, and are being handled as agreed. Repayment source well defined by proven income, cash flow, trade asset turn, etc. Multiple repayment sources exist. Individual and businesses will typically have a sound financial condition. | ||||||||||||||||||||||||||||||||
•Grade 3 – Satisfactory - Merits Attention | ||||||||||||||||||||||||||||||||
Loans being repaid as agreed that require close following because of complexity, information or underwriting deficiencies, emerging signs of weakness or non-standard terms. Secured loans repaying as agreed where collateral value or marketability are questionable but do not materially affect risk. Repayment sources well defined by proven income, cash flow, trade asset turn, etc., but may be weaker than Grade 2. Loans to weak individuals or business borrowers with a strong endorser or guarantor. Fully collectible, unsecured loans or loans secured by other than approved collateral for which an acceptable repayment agreement has not been established. | ||||||||||||||||||||||||||||||||
•Grade 4 - Low Satisfactory | ||||||||||||||||||||||||||||||||
New Loans - Applicants with excessive minor exceptions as defined by the Risk Grade forms. Applicants with major credit history or Beacon score issues as defined by the Risk Grade forms. Applicants with two or more major exceptions with mitigating factors identified on the Fair Lending form. | ||||||||||||||||||||||||||||||||
Existing Loans - Borrower’s ability to repay from primary (intended) repayment sources is not clearly sufficient to ensure performance as contracted; but the loan is performing as contracted, and secondary repayment sources are clearly sufficient to protect against the risk of principal or income loss; and it is reasonable to expect that the circumstances causing repayment capacity to be uncertain will be resolved within six months. Access to alternative financing sources exists but may be limited to institutions specializing in higher risk financing. | ||||||||||||||||||||||||||||||||
•Grade 5 - Special Mention | ||||||||||||||||||||||||||||||||
Special risk loans include the following characteristics: Loans currently performing satisfactorily but with potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank’s position at some future date. Potential weaknesses exist, generally the result of deviations from prudent lending practices, such as over advances on collateral or unproven primary repayment sources. Loans where adverse economic conditions develop subsequent to the loan origination, that do not jeopardize liquidation of the debt but do increase the level of risk, may also warrant this rating. Such trends may be in the borrower’s options, credit quality or financial strength. New loans with exceptions, where no mitigating factors are justified, however, loans are not typically made if the grade is Special Mention at inception without management approval. | ||||||||||||||||||||||||||||||||
• | Grade 6 -8 - Substandard (Grade 6), Doubtful (Grade 7) and Loss (Grade 8) | |||||||||||||||||||||||||||||||
Substandard, Doubtful, and Loss are additional risk grades not available on the Grading Form. Loans are not typically made if graded Substandard or worse at inception, without management's approval. A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as Substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans classified as Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be affected in the future. Loans are not typically made if graded Substandard or worse at inception without management's approval. | ||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Class and Credit Card Portfolio Exposure | ||||||||||||||||||||||||||||||||
The following tables are an analysis of the creditworthiness class by loan class and credit card portfolio exposure as of | ||||||||||||||||||||||||||||||||
March 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
1 - Lowest Risk | $ | 2,061 | $ | — | $ | — | $ | — | $ | — | $ | 1,591 | $ | 8 | $ | 3,660 | ||||||||||||||||
2 - Satisfactory Quality | 759 | 522 | 2,408 | 181 | 13,649 | 367 | 14 | 17,900 | ||||||||||||||||||||||||
3 - Satisfactory | ||||||||||||||||||||||||||||||||
- Merits Attention | 9,322 | 12,244 | 73,494 | 2,470 | 53,886 | 3,398 | 191 | 155,005 | ||||||||||||||||||||||||
4 - Low Satisfactory | 12,363 | 35,954 | 118,786 | 24,877 | 56,758 | 1,023 | 109 | 249,870 | ||||||||||||||||||||||||
5 - Special mention | 198 | 1,849 | 2,460 | 288 | 8,377 | 63 | 124 | 13,359 | ||||||||||||||||||||||||
6-8 - Substandard | 923 | 12,030 | 11,635 | 810 | 14,171 | 599 | — | 40,168 | ||||||||||||||||||||||||
$ | 25,626 | $ | 62,599 | $ | 208,783 | $ | 28,626 | $ | 146,841 | $ | 7,041 | $ | 446 | $ | 479,962 | |||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||
Consumer - | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Performing | $ | 2,105 | $ | 1,131 | ||||||||||||||||||||||||||||
Non Performing | 84 | 44 | ||||||||||||||||||||||||||||||
Total | $ | 2,189 | $ | 1,175 | ||||||||||||||||||||||||||||
Total Loans | $ | 483,326 | ||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
1 - Lowest Risk | $ | 2,014 | $ | — | $ | — | $ | — | $ | — | $ | 1,365 | $ | 8 | $ | 3,387 | ||||||||||||||||
2 - Satisfactory Quality | 646 | 374 | 2,696 | 2 | 12,811 | 412 | 15 | 16,956 | ||||||||||||||||||||||||
3 - Satisfactory | ||||||||||||||||||||||||||||||||
- Merits Attention | 9,639 | 14,296 | 75,898 | 3,473 | 53,144 | 3,628 | 482 | 160,560 | ||||||||||||||||||||||||
4 - Low Satisfactory | 12,616 | 36,723 | 121,522 | 23,779 | 57,460 | 1,235 | 107 | 253,442 | ||||||||||||||||||||||||
5 - Special mention | 137 | 1,922 | 2,558 | 262 | 8,450 | 63 | 126 | 13,518 | ||||||||||||||||||||||||
6-8 - Substandard | 806 | 12,938 | 11,485 | 1,181 | 15,435 | 47 | — | 41,892 | ||||||||||||||||||||||||
$ | 25,858 | $ | 66,253 | $ | 214,159 | $ | 28,697 | $ | 147,300 | $ | 6,750 | $ | 738 | $ | 489,755 | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Consumer- | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Performing | $ | 2,316 | $ | 1,124 | ||||||||||||||||||||||||||||
Non Performing | 23 | — | ||||||||||||||||||||||||||||||
Total | $ | 2,339 | $ | 1,124 | ||||||||||||||||||||||||||||
Total Loans | $ | 493,218 | ||||||||||||||||||||||||||||||
Age Analysis of Past Due Loans | ||||||||||||||||||||||||||||||||
The following tables are an age analysis of past due loans by loan class, as of March 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual | Total Past | Current | Total | ||||||||||||||||||||||||||||
Past Due | and Greater | Due | Loans | |||||||||||||||||||||||||||||
than 90 | ||||||||||||||||||||||||||||||||
Days Past | ||||||||||||||||||||||||||||||||
Due (1) | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial & industrial | $ | — | $ | 811 | — | $ | 811 | $ | 24,815 | $ | 25,626 | |||||||||||||||||||||
Commercial construction and land development | 271 | 11,178 | 11,449 | 51,150 | 62,599 | |||||||||||||||||||||||||||
Commercial real estate | 5 | 6,099 | 6,104 | 202,679 | 208,783 | |||||||||||||||||||||||||||
Residential construction | — | 695 | 695 | 27,931 | 28,626 | |||||||||||||||||||||||||||
Residential mortgage | 753 | 8,906 | 9,659 | 137,182 | 146,841 | |||||||||||||||||||||||||||
Consumer | 56 | 561 | 617 | 6,424 | 7,041 | |||||||||||||||||||||||||||
Consumer credit cards | 78 | 6 | 84 | 2,105 | 2,189 | |||||||||||||||||||||||||||
Business credit cards | 41 | 3 | 44 | 1,131 | 1,175 | |||||||||||||||||||||||||||
Other loans | — | — | — | 446 | 446 | |||||||||||||||||||||||||||
Total | $ | 1,204 | $ | 28,259 | $ | 29,463 | $ | 453,863 | $ | 483,326 | ||||||||||||||||||||||
(1) Nonaccruals and Greater than 90 Days Past Due is comprised of $9,000 in credit card loans that were past due more than 90 days and still accruing interest, as well as $28.3 million of loans in nonaccrual status. | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual | Total Past | Current | Total | ||||||||||||||||||||||||||||
Past Due | and Greater | Due | Loans | |||||||||||||||||||||||||||||
than 90 | ||||||||||||||||||||||||||||||||
Days Past | ||||||||||||||||||||||||||||||||
Due (1) | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial & industrial | $ | 34 | $ | 651 | $ | 685 | $ | 25,173 | $ | 25,858 | ||||||||||||||||||||||
Commercial construction and land development | 252 | 9,536 | 9,788 | 56,465 | 66,253 | |||||||||||||||||||||||||||
Commercial real estate | 749 | 6,391 | 7,140 | 207,019 | 214,159 | |||||||||||||||||||||||||||
Residential construction | — | 695 | 695 | 28,002 | 28,697 | |||||||||||||||||||||||||||
Residential mortgage | 421 | 9,943 | 10,364 | 136,936 | 147,300 | |||||||||||||||||||||||||||
Consumer | 11 | 11 | 22 | 6,728 | 6,750 | |||||||||||||||||||||||||||
Consumer credit cards | 76 | 23 | 99 | 2,240 | 2,339 | |||||||||||||||||||||||||||
Business credit cards | 52 | — | 52 | 1,072 | 1,124 | |||||||||||||||||||||||||||
Other loans | — | — | — | 738 | 738 | |||||||||||||||||||||||||||
Total | $ | 1,595 | $ | 27,250 | $ | 28,845 | $ | 464,373 | $ | 493,218 | ||||||||||||||||||||||
(1) Nonaccruals and Greater than 90 Days Past Due is comprised of $23,000 in credit card loans that were past due more than 90 days and still accruing interest, as well as $27.2 million of loans in nonaccrual status. | ||||||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||||||
Impaired loans are those loans for which the Bank does not expect full repayment of all principal and accrued interest when due either under the terms of the original loan agreement or within reasonably modified contractual terms. If the loan has been restructured, such as in the case of a troubled debt restructuring ("TDR"), the loan continues to be considered impaired for the duration of the restructured loan term. Whereas loans which are classified as Substandard (Risk Grade 6) are not necessarily impaired, all loans which are classified as Doubtful (Risk Grade 7) are considered impaired. | ||||||||||||||||||||||||||||||||
Once a loan has been determined to meet the definition of impairment, the amount of that impairment is measured through one of a number of available methods; a calculation of the net present value of the expected future cash flows of the loan discounted by the effective interest rate of the loan, through the observable market value of the loan or should the loan be collateral dependent, upon the fair market value of the underlying assets securing the loan. If a deficit is calculated, the amount of the measured impairment results in the establishment of a specific valuation allowance or reserve or charge-off, and is incorporated into the Bank's allowance for loan and lease losses. | ||||||||||||||||||||||||||||||||
When a loan has been designated as impaired and full collection of principal and interest under the contractual terms is not assured, the impaired loan will be placed into nonaccrual status and interest income will not be recognized. Payments received against such loans are initially applied fully to the principal balance of the note until the principal balance is satisfied. Subsequent payments are thereupon applied to the accrued interest balance which only then results in the recognition of interest income. Payments received against accruing impaired loans are applied in the same manner as that of accruing loans which have not been deemed impaired. The recorded investment in impaired notes does not include deferred fees or accrued interest and management deems this amount to be immaterial. | ||||||||||||||||||||||||||||||||
The following table illustrates the impaired loans by loan class as of March 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||
Year to Date | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 388 | $ | 425 | $ | — | $ | 390 | $ | — | ||||||||||||||||||||||
Commercial construction and land development | 9,347 | 13,478 | — | 9,604 | 5 | |||||||||||||||||||||||||||
Commercial real estate other | 8,467 | 10,323 | — | 8,747 | 44 | |||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | |||||||||||||||||||||||||||
Residential mortgage | 8,883 | 10,530 | — | 9,000 | 25 | |||||||||||||||||||||||||||
Consumer | 561 | 775 | — | 578 | — | |||||||||||||||||||||||||||
Subtotal: | 27,646 | 35,531 | — | 28,319 | 74 | |||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 460 | $ | 539 | $ | 265 | $ | 463 | $ | — | ||||||||||||||||||||||
Commercial construction and land development | 2,057 | 3,313 | 509 | 2,086 | 3 | |||||||||||||||||||||||||||
Commercial real estate other | 4,166 | 4,458 | 874 | 4,179 | 40 | |||||||||||||||||||||||||||
Residential construction | 695 | 1,134 | 137 | 695 | — | |||||||||||||||||||||||||||
Residential mortgage | 2,113 | 2,308 | 470 | 2,119 | 5 | |||||||||||||||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal: | 9,491 | 11,752 | 2,255 | 9,542 | 48 | |||||||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||||||||
Commercial | 24,885 | 32,536 | 1,648 | 25,469 | 92 | |||||||||||||||||||||||||||
Consumer | 561 | 775 | — | 578 | — | |||||||||||||||||||||||||||
Residential | 11,691 | 13,972 | 607 | 11,814 | 30 | |||||||||||||||||||||||||||
Grand Total | $ | 37,137 | $ | 47,283 | $ | 2,255 | $ | 37,861 | $ | 122 | ||||||||||||||||||||||
At March 31, 2014, the recorded investment in loans considered impaired totaled $37.1 million. Of the total investment in loans considered impaired, $9.5 million were found to show specific impairment for which a $2.3 million valuation allowance was recorded; the remaining $27.6 million in impaired loans required no specific valuation allowance because either previously established valuation allowances had been absorbed by partial charge-offs or loan evaluations had no indication of impairment which would require a valuation allowance. At March 31, 2014, the average recorded investment in impaired loans was approximately $37.9 million. The amount of interest recognized on impaired loans during the portion of the year that they were considered impaired was approximately $122,000. | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Year to Date | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 380 | $ | 517 | $ | — | $ | 491 | $ | 2 | ||||||||||||||||||||||
Commercial construction and land development | 11,142 | 15,809 | — | 13,259 | 168 | |||||||||||||||||||||||||||
Commercial real estate other | 8,437 | 10,131 | — | 9,190 | 132 | |||||||||||||||||||||||||||
Residential construction | 486 | 486 | — | 474 | 26 | |||||||||||||||||||||||||||
Residential mortgage | 10,948 | 12,731 | — | 11,624 | 121 | |||||||||||||||||||||||||||
Consumer | 11 | 22 | — | 17 | — | |||||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal: | 31,404 | 39,696 | — | 35,055 | 449 | |||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 309 | $ | 322 | $ | 80 | $ | 321 | $ | — | ||||||||||||||||||||||
Commercial construction and land development | 1,315 | 2,033 | 264 | 1,348 | — | |||||||||||||||||||||||||||
Commercial real estate other | 4,026 | 4,096 | 888 | 4,104 | 136 | |||||||||||||||||||||||||||
Residential construction | 695 | 1,134 | 137 | 749 | — | |||||||||||||||||||||||||||
Residential mortgage | 1,427 | 1,593 | 456 | 1,499 | 8 | |||||||||||||||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal: | 7,772 | 9,178 | 1,825 | 8,021 | 144 | |||||||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||||||||
Commercial | 25,609 | 32,908 | 1,232 | 28,713 | 438 | |||||||||||||||||||||||||||
Consumer | 11 | 22 | — | 17 | — | |||||||||||||||||||||||||||
Residential | 13,556 | 15,944 | 593 | 14,346 | 155 | |||||||||||||||||||||||||||
Grand Total | $ | 39,176 | $ | 48,874 | $ | 1,825 | $ | 43,076 | $ | 593 | ||||||||||||||||||||||
At December 31, 2013, the recorded investment in loans considered impaired totaled $39.2 million. Of the total investment in loans considered impaired, $7.8 million were found to show specific impairment for which a $1.8 million valuation allowance was recorded; the remaining $31.4 million in impaired loans required no specific valuation allowance because either previously established valuation allowances had been absorbed by partial charge-offs or loan evaluations had no indication of impairment which would require a valuation allowance. For the year ended December 31, 2013, the average recorded investment in impaired loans was approximately $43.1 million. The amount of interest recognized on impaired loans during the portion of the year that they were considered impaired was approximately $593,000. | ||||||||||||||||||||||||||||||||
Loans on Nonaccrual Status | ||||||||||||||||||||||||||||||||
The following table illustrates nonaccrual loans by loan class as of March 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial & industrial | $ | 811 | $ | 651 | ||||||||||||||||||||||||||||
Commercial construction and land development | 11,178 | 9,536 | ||||||||||||||||||||||||||||||
Commercial real estate | 6,099 | 6,391 | ||||||||||||||||||||||||||||||
Residential construction | 695 | 695 | ||||||||||||||||||||||||||||||
Residential mortgage | 8,906 | 9,943 | ||||||||||||||||||||||||||||||
Consumer | 561 | 11 | ||||||||||||||||||||||||||||||
Total | $ | 28,250 | $ | 27,227 | ||||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Loans are classified as a TDR when, for economic or legal reasons which result in a debtor experiencing financial difficulties, the Bank grants a concession through a modification of the original loan agreement that would not otherwise be considered. Generally concessions are granted as a result of a borrower's inability to meet the contractual repayment obligations of the initial loan terms and in the interest of improving the likelihood of recovery of the loan. The Bank may grant these concessions by a number of means such as (1) forgiving principal or interest, (2) reducing the stated interest rate to a below market rate, (3) deferring principal payments, (4) changing repayment terms from amortizing to interest only, (5) extending the repayment period, or (6) accepting a change in terms based upon a bankruptcy plan. However, the Bank only restructures loans for borrowers that demonstrate the willingness and capacity to repay the loan under reasonable terms and where the Bank has sufficient protection provided by the cash flow of the underlying collateral or business. | ||||||||||||||||||||||||||||||||
Loans in the process of renewal or modification are reviewed by the Bank to determine if the risk grade assigned is accurate based on updated information. All loans identified by the Bank's internal loan grading system to pose a heightened level of risk at or prior to renewal or modification are additionally reviewed to determine if the loan should be classified as a TDR. The Bank's knowledge of the borrower's situation and any updated financial information obtained is first used to determine whether the borrower is experiencing financial difficulty. Once this is determined, the Bank reviews the modification terms to determine whether a concession has been granted. If the Bank determines that both conditions have been met, the loan will be classified as a TDR. If the Bank determines that both conditions have not been met, the loan is not classified as a TDR, but would typically then be monitored for any additional deterioration. Documentation to support this determination of TDR classification is maintained within the credit file. | ||||||||||||||||||||||||||||||||
The Bank's policy with respect to accrual of interest on loans restructured as part of a TDR follows relevant supervisory guidance. If a borrower has demonstrated performance under the previous loan terms and shows capacity to perform under the restructured loan terms, continued accrual of interest at the restructured interest rate is likely. If the borrower was materially delinquent on payments prior to the restructuring, but shows the capacity to meet the restructured loan terms, the loan will likely continue as nonaccrual until such time as continued performance has been demonstrated, which is typically a period of at least six consecutive monthly payments. If the borrower does not perform under the restructured terms, the loan would remain on or be placed on nonaccrual status. The Company closely monitors these loans and will cease accruing interest on them if management believes that the borrowers may not continue performing based on the restructured terms. However, all TDRs are considered to be impaired and are evaluated as such in the quarterly allowance calculation. | ||||||||||||||||||||||||||||||||
The following table provides a summary of loans modified as TDRs at March 31, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
March 31, 2014: | Accrual | Nonaccrual | Total TDRs | Allowance for Loan Losses Allocated | ||||||||||||||||||||||||||||
Commercial & industrial | $ | 37 | $ | 458 | $ | 495 | $ | 158 | ||||||||||||||||||||||||
Commercial construction and land development | 225 | 5,312 | 5,537 | 76 | ||||||||||||||||||||||||||||
Commercial real estate | 4,417 | 4,002 | 8,419 | 185 | ||||||||||||||||||||||||||||
Residential mortgage | 1,979 | 553 | 2,532 | 234 | ||||||||||||||||||||||||||||
Consumer | — | 2,350 | 2,350 | — | ||||||||||||||||||||||||||||
Total modifications | $ | 6,658 | $ | 12,675 | $ | 19,333 | $ | 653 | ||||||||||||||||||||||||
December 31, 2013: | Accrual | Nonaccrual | Total TDRs | Allowance for Loan Losses Allocated | ||||||||||||||||||||||||||||
Commercial & industrial | $ | 37 | $ | 301 | $ | 338 | $ | — | ||||||||||||||||||||||||
Commercial construction and land development | 227 | 6,699 | 6,926 | 34 | ||||||||||||||||||||||||||||
Commercial real estate | 4,447 | 4,204 | 8,651 | 223 | ||||||||||||||||||||||||||||
Residential mortgage | 2,319 | 3,055 | 5,374 | 229 | ||||||||||||||||||||||||||||
Other | — | 1 | 1 | — | ||||||||||||||||||||||||||||
Total modifications | $ | 7,030 | $ | 14,260 | $ | 21,290 | $ | 486 | ||||||||||||||||||||||||
For the three months ended March 31, 2014 there were no new TDRs identified. Additionally, there were no TDR loans modified during the previous 12 months that had a payment default for the three months ended March 31, 2014. | ||||||||||||||||||||||||||||||||
The table below details TDRs that the Bank has entered into during the twelve months ended March 31, 2014. The one TDR executed during the previous 12 months has been converted to nonaccrual. | ||||||||||||||||||||||||||||||||
For the 12 month period ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Paid in full | Paying as restructured | Converted to non-accrual | Foreclosure/Default | |||||||||||||||||||||||||||||
Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | |||||||||||||||||||||||||
(amounts in thousands, except number of loans) | ||||||||||||||||||||||||||||||||
Below market interest rate | — | $ | — | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||||||
Extended payment terms | — | — | — | — | 1 | 55 | — | — | ||||||||||||||||||||||||
Forgiveness of principal | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total | — | $ | — | — | $ | — | 1 | $ | 55 | — | $ | — | ||||||||||||||||||||
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENT | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENT | ||||||||||||||||||||
The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820, "Fair Value Measurements and Disclosures" ("ASC 820") defines fair value, establishes a framework for measuring fair value under U.S. GAAP and expands disclosures about fair value measurements. ASC 820 applies whenever other accounting pronouncements require or permit assets or liabilities to be measured at fair value. Accordingly, ASC 820 does not expand the use of fair value in any new circumstances. ASC 825, "Financial Instruments" ("ASC 825") provides companies with an option to report selected financial assets and liabilities at fair value. | ||||||||||||||||||||
As of March 31, 2014, the Company had not elected to measure any financial assets or liabilities using the fair value option under ASC 825; therefore the adoption of ASC 825 had no effect on the Company’s financial condition or results of operations. | ||||||||||||||||||||
The Company records securities available for sale at fair value on a recurring basis. Fair value is a market-based measurement and is defined as 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. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the assets or owes the liability. In general, the transaction price will equal the exit price and, therefore, represent the fair value of the asset or liability at initial recognition. In determining whether a transaction price represents the fair value of the asset or liability at initial recognition, each reporting entity is required to consider factors specific to the transaction and the asset or liability, the principal or most advantageous market for the asset or liability, and market participants with whom the entity would transact in the market. | ||||||||||||||||||||
ASC 820 establishes a fair value hierarchy to prioritize the inputs of valuation techniques used to measure fair value. The inputs are evaluated and an overall level for the fair value measurement is determined. This overall level is an indication of how market-observable the fair value measurement is and defines the level of disclosure. ASC 820 clarifies fair value in terms of the price in an orderly transaction between market participants to sell an asset or transfer a liability in the principal (or most advantageous) market for the asset or liability at the measurement date (an exit price). In order to determine the fair value or the exit price, entities must determine the unit of account, highest and best use, principal market, and market participants. These determinations allow the reporting entity to define the inputs for fair value and level of hierarchy. | ||||||||||||||||||||
Outlined below is the application of the fair value hierarchy established by ASC 820 to the Company’s financial assets that are carried at fair value. | ||||||||||||||||||||
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. An active market for the asset or liability is a market in which the transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||||||||||||||||
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||||||||||||||||||
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are supported by little or no market activity or by the entity’s own assumptions. | ||||||||||||||||||||
Fair Value on a Recurring Basis. The Company measures certain assets at fair value on a recurring basis, as described below. | ||||||||||||||||||||
Investment Securities Available for Sale | ||||||||||||||||||||
Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include equity securities traded on an active exchange, such as the New York Stock Exchange. Level 2 securities include taxable municipalities, and mortgage-backed securities issued by government sponsored entities, and certain equity securities. The Company’s mortgage-backed securities were primarily issued by the GNMA, with additional mortgage-backed securities issued by the FNMA. As of March 31, 2014, all of the Company’s mortgage-backed securities were agency issued and designated as Level 2 securities. Securities classified as Level 3 include trust preferred securities in less liquid markets. | ||||||||||||||||||||
The following table presents information about assets measured at fair value on a recurring basis at March 31, 2014 and December 31, 2013. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
March 31, 2014, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant | ||||||||||||||||
Amount in the | Measured | in Active | Other | Unobservable | ||||||||||||||||
Consolidated | at Fair Value | Markets | Observable | Inputs | ||||||||||||||||
Balance Sheet | for Identical | Inputs | ||||||||||||||||||
Assets | ||||||||||||||||||||
Description | 3/31/14 | 3/31/14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Taxable municipal securities | $ | 9,765 | $ | 9,765 | $ | — | $ | 9,765 | $ | — | ||||||||||
Mortgage-backed securities | ||||||||||||||||||||
GNMA | 12,954 | 12,954 | — | 12,954 | — | |||||||||||||||
FNMA | — | — | — | — | — | |||||||||||||||
Trust preferred securities | 410 | 410 | — | — | 410 | |||||||||||||||
Equity securities | 95 | 95 | 84 | 11 | — | |||||||||||||||
Total available for sale | $ | 23,224 | $ | 23,224 | $ | 84 | $ | 22,730 | $ | 410 | ||||||||||
securities | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
December 31, 2013, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant | ||||||||||||||||
Amount in the Consolidated | Measured | in Active | Other | Unobservable | ||||||||||||||||
Balance Sheet | at Fair Value | Markets | Observable | Inputs | ||||||||||||||||
for Identical | Inputs | |||||||||||||||||||
Assets | ||||||||||||||||||||
Description | 12/31/13 | 12/31/13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Taxable municipal securities | $ | 5,933 | $ | 5,933 | $ | — | $ | 5,933 | $ | — | ||||||||||
Mortgage-backed securities | ||||||||||||||||||||
GNMA | 25,477 | 25,477 | — | 25,477 | — | |||||||||||||||
FNMA | — | — | — | — | — | |||||||||||||||
Trust preferred securities | 1,025 | 1,025 | — | — | 1,025 | |||||||||||||||
Equity securities | 131 | 131 | 70 | 61 | — | |||||||||||||||
Total available for sale | $ | 32,566 | $ | 32,566 | $ | 70 | $ | 31,471 | $ | 1,025 | ||||||||||
securities | ||||||||||||||||||||
The following table presents the reconciliation for the three months ended March 31, 2014 and 2013 for all Level 3 assets that are measured at fair value on a recurring basis. | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Beginning Balance | $ | 1,025 | $ | 1,006 | ||||||||||||||||
Total realized and unrealized gains or (losses): | ||||||||||||||||||||
Included in earnings | — | — | ||||||||||||||||||
Included in other comprehensive income (loss) | — | 19 | ||||||||||||||||||
Purchases, issuances and settlements | (615 | ) | — | |||||||||||||||||
Transfers in (out) of Level 3 | — | — | ||||||||||||||||||
Ending Balance | $ | 410 | $ | 1,025 | ||||||||||||||||
Fair Value Measured on a Nonrecurring Basis. The Company measures certain assets at fair value on a nonrecurring basis, as described below. | ||||||||||||||||||||
Impaired Loans. The Company does not record loans at fair value on a recurring basis. However, when a loan is considered impaired, it is evaluated for impairment and written down to its estimated fair value or an allowance for loan losses is established. The fair value of impaired loans is estimated using one of the following available methods: a calculation of the net present value of the expected future cash flows of the loan discounted by the effective interest rate or by determining the fair market value of the underlying collateral securing the loan using appraised values discounted for other market adjustments. Those impaired loans not requiring a write down or valuation allowance represent loans for which the estimated fair value exceeds the recorded investment in such loans. When the fair value of an impaired loan is based on an observable market price or a current appraised value with no adjustments, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is not available, or the Company determines the fair value of the collateral is further impaired below the appraised value, and there is no observable market price, the impaired loan is classified as nonrecurring Level 3. | ||||||||||||||||||||
As of March 31, 2014, the Bank identified $22.7 million in impaired loans that were carried at fair value which included $9.5 million in loans that required a specific valuation allowance of $2.3 million and an additional $13.2 million in loans without a specific valuation allowance that have previously been written down to fair value. As of December 31, 2013, the Bank identified $20.0 million in impaired loans that were carried at fair value which included $7.8 million in loans that required a specific valuation allowance of $1.8 million and an additional $12.3 million in loans without a specific valuation allowance that have previously been written down to fair value. | ||||||||||||||||||||
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring and nonrecurring basis at March 31, 2014 (amounts in thousands, except percentages): | ||||||||||||||||||||
Total Carrying Amount | ||||||||||||||||||||
Nonrecurring measurements: | ||||||||||||||||||||
Impaired loans | $ | 20,419 | Collateral discounts | 9-50% | ||||||||||||||||
Foreclosed assets | $ | 7,404 | Discounted appraisals | 10-30% | ||||||||||||||||
Recurring measurements: | ||||||||||||||||||||
Trust preferred securities | $ | 410 | Probability of default | 10-20% | ||||||||||||||||
Loss given default | 100% | |||||||||||||||||||
Foreclosed Assets | ||||||||||||||||||||
Foreclosed assets are adjusted to fair value less estimated selling costs upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. | ||||||||||||||||||||
Given the lack of observable market prices for identical properties, the Company records foreclosed assets as non-recurring Level 3. Through the three month period ended March 31, 2014, the Company recognized approximately $212,000 in valuation reductions on foreclosed assets and the carrying value of foreclosed assets was $7.4 million at March 31, 2014. As of and for the year ended December 31, 2013, there was $1.6 million recognized in valuation adjustments on foreclosed assets and the carrying value of foreclosed assets was $8.5 million at December 31, 2013. | ||||||||||||||||||||
The following table presents information about individually identified impaired loans and foreclosed assets measured on a non-recurring basis at fair value at March 31, 2014 and December 31, 2013. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
March 31, 2014, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant | ||||||||||||||||
Amount in the | Measured | in Active | Other | Unobservable | ||||||||||||||||
Consolidated | at Fair Value | Markets | Observable | Inputs | ||||||||||||||||
Balance Sheet | for Identical | Inputs | ||||||||||||||||||
Assets | ||||||||||||||||||||
3/31/14 | 3/31/14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Impaired loans | $ | 20,419 | $ | 20,419 | $ | — | $ | — | $ | 20,419 | ||||||||||
Foreclosed assets | $ | 7,404 | $ | 7,404 | $ | — | $ | — | $ | 7,404 | ||||||||||
Fair Value Measurements at | ||||||||||||||||||||
December 31, 2013, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant Unobservable Inputs | ||||||||||||||||
Amount in the | Measured | in Active | Other | |||||||||||||||||
Consolidated | at Fair Value | Markets | Observable Inputs | |||||||||||||||||
Balance Sheet | for Identical | |||||||||||||||||||
Assets | ||||||||||||||||||||
12/31/13 | 12/31/13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Impaired loans | $ | 18,215 | $ | 18,215 | $ | — | $ | — | $ | 18,215 | ||||||||||
Foreclosed assets | $ | 8,502 | $ | 8,502 | $ | — | $ | — | $ | 8,502 | ||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||
ASC 825 requires the disclosure of estimated fair values for financial instruments. Quoted market prices, if available, are utilized as an estimate of the fair value of financial instruments. Because no quoted market prices exist for a significant part of the Company’s financial instruments, the fair value of such instruments has been derived based on management’s assumptions with respect to future economic conditions, the amount and timing of future cash flows and estimated discount rates. Different assumptions could significantly affect these estimates. Accordingly, the net realizable value could be materially different from the estimates presented below. In addition, the estimates are only indicative of individual financial instruments’ values and should not be considered an indication of the fair value of the Company taken as a whole. The following methods and assumptions were used to estimate the fair value of each class of financial instrument. | ||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||
The carrying amounts of cash and cash equivalents are equal to the fair value due to the liquid nature of the financial instruments. | ||||||||||||||||||
CDs Held for Investment | ||||||||||||||||||
These investments are valued at carrying amounts for fair value purposes. | ||||||||||||||||||
Securities Available for Sale, and Securities Held to Maturity | ||||||||||||||||||
Fair values of investment securities are based on quoted market prices. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. | ||||||||||||||||||
Loans Held For Sale | ||||||||||||||||||
The fair value of mortgage loans held for sale is based on commitments on hand from investors within the secondary market for loans with similar characteristics. | ||||||||||||||||||
Loans | ||||||||||||||||||
The fair value of loans has been estimated utilizing the net present value of future cash flows based upon contractual balances, prepayment assumptions, and applicable weighted average interest rates, adjusted for a 5% current liquidity and market discount assumption. The Company has assigned no fair value to off-balance sheet financial instruments since they are either short term in nature or subject to immediate repricing. | ||||||||||||||||||
FHLB Stock | ||||||||||||||||||
The carrying amount of FHLB stock approximates fair value. | ||||||||||||||||||
Premises and Equipment, Held for Sale | ||||||||||||||||||
The carrying amount of Premises and equipment held for sale approximates fair value. | ||||||||||||||||||
Deposits | ||||||||||||||||||
The fair value of non-maturing deposits such as noninterest-bearing demand, money market, NOW, and savings accounts, are by definition, equal to the amount payable on demand. Fair value for maturing deposits such as CDs and IRAs are estimated using a discounted cash flow approach that applies current interest rates to expected maturities. | ||||||||||||||||||
Borrowings, Subordinated Debentures, and Subordinated Promissory Notes | ||||||||||||||||||
The fair value of borrowings, subordinated debentures, and subordinated promissory notes, is based on discounting expected cash flows at the interest rate from debt with the same or similar remaining maturities and collection requirements. | ||||||||||||||||||
Accrued Interest Receivable and Payable | ||||||||||||||||||
The carrying amounts of accrued interest approximates fair value. | ||||||||||||||||||
The following table presents information for financial assets and liabilities as of March 31, 2014 and December 31, 2013. | ||||||||||||||||||
March 31, 2014 | ||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||
Value | Fair Value | |||||||||||||||||
Financial assets: | (amounts in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 150,960 | $ | 150,960 | $ | 150,960 | $ | — | $ | — | ||||||||
CDs held for investment | 28,665 | 28,665 | — | 28,665 | — | |||||||||||||
Securities available for sale | 23,224 | 23,224 | 84 | 22,730 | 410 | |||||||||||||
Securities held to maturity | 94,228 | 93,321 | — | 93,321 | — | |||||||||||||
Loans held for sale | 363 | 363 | — | — | 363 | |||||||||||||
Loans, net | 471,306 | 449,165 | — | — | 449,165 | |||||||||||||
FHLB stock | 5,778 | 5,778 | — | 5,778 | — | |||||||||||||
Accrued interest receivable | 1,509 | 1,509 | — | 1,509 | — | |||||||||||||
Financial liabilities: | ||||||||||||||||||
Deposits | $ | 649,232 | $ | 651,148 | $ | — | $ | 651,148 | $ | — | ||||||||
Subordinated debentures and subordinated promissory notes | 24,372 | 24,372 | — | — | 24,372 | |||||||||||||
Borrowings | 112,000 | 120,898 | — | 120,898 | — | |||||||||||||
Accrued interest payable | 1,680 | 1,680 | — | 1,680 | — | |||||||||||||
December 31, 2013 | ||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||
Value | Fair Value | |||||||||||||||||
Financial assets: | (amounts in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 128,629 | $ | 128,629 | $ | 128,629 | $ | — | $ | — | ||||||||
CDs held for investment | 31,850 | 31,850 | — | 31,850 | — | |||||||||||||
Securities available for sale | 32,566 | 32,566 | 50 | 31,491 | 1,025 | |||||||||||||
Securities held to maturity | 98,013 | 95,831 | — | 95,831 | — | |||||||||||||
Loans held for sale | — | — | — | — | — | |||||||||||||
Loans, net | 481,122 | 458,254 | — | — | 458,254 | |||||||||||||
FHLB stock | 6,076 | 6,076 | — | 6,076 | — | |||||||||||||
Premises and equipment, held for sale | — | — | — | — | — | |||||||||||||
Accrued interest receivable | 1,576 | 1,576 | — | 1,576 | — | |||||||||||||
Financial liabilities: | ||||||||||||||||||
Deposits | $ | 657,620 | $ | 659,733 | $ | — | $ | 659,733 | $ | — | ||||||||
Subordinated debentures and subordinated promissory notes | 24,372 | 24,369 | — | — | 24,369 | |||||||||||||
Borrowings | 112,000 | 121,519 | — | 121,519 | — | |||||||||||||
Accrued interest payable | 1,642 | 1,642 | — | 1,642 | — | |||||||||||||
OTHER_RECENT_ACCOUNTING_PRONOU
OTHER RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
OTHER RECENT ACCOUNTING PRONOUNCEMENTS | ' |
OTHER RECENT ACCOUNTING PRONOUNCEMENTS | |
New Accounting Standards | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update seeks to eliminate the diversity in practice in the presentation of unrecognized tax benefits by providing explicit guidance on the financial statement presentation of an unrecognized tax benefit with a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This amendment is effective for annual and interim periods beginning after December 15, 2013. The adoption of the new guidance did not have a material impact on the Company's consolidated financial statements. | |
In January 2014, the FASB issued ASU No. 2014-04, Receivables–Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. This update clarifies that an in substance repossession or foreclosure occurs upon either the creditor obtaining legal title to the residential real estate property or the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This amendment is effective for annual and interim periods beginning after December 15, 2014. Management does not expect the adoption of this guidance to have a material impact on the Company's financial statements. | |
Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations and cash flows. | |
From time to time the FASB issues exposure drafts for proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts. |
SUBORDINATED_DEBT
SUBORDINATED DEBT | 3 Months Ended |
Mar. 31, 2014 | |
Subordinated Debt [Abstract] | ' |
SUBORDINATED DEBT | ' |
SUBORDINATED DEBT | |
The Company is currently prohibited by the Written Agreement, described in Note J of these Notes to Consolidated Financial Statements, from paying interest on its subordinated promissory notes and on its subordinated debentures in connection with its trust preferred securities (TPS) without prior approval of the supervisory authorities. The Company and the Bank are prohibited from declaring or paying dividends without prior approval of the supervisory authorities. The Company obtained approval to pay the interest on its subordinated promissory notes for the first quarter of 2014. The Company exercised its right to defer regularly scheduled interest payments on its outstanding TPS and as of March 31, 2014, $750,000 of interest payments have been accrued for and deferred pursuant to the terms of the indenture governing the TPS. The Company may not pay any cash dividends on its common stock, $1.00 par value per share (the "Common Stock") until it is current on interest payments on such TPS. The Company has not paid any cash dividends on its Common Stock since it suspended dividends in the fourth quarter of 2010. As a bank holding company, the Company’s ability to declare and pay dividends also depends on certain federal regulatory considerations, including the guidelines of the Federal Reserve regarding capital adequacy and dividends. |
REGULATORY_RESTRICTIONS
REGULATORY RESTRICTIONS | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | ||||||||||||||||||||
REGULATORY RESTRICTIONS | ' | ||||||||||||||||||||
REGULATORY RESTRICTIONS | |||||||||||||||||||||
North Carolina banking law requires that the Bank may not pay a dividend that would reduce its capital below the applicable required capital. In addition, regulatory authorities may limit payment of dividends by any bank when it is determined that such a limitation is in the public interest and is necessary to ensure the financial soundness of the Bank. No dividends were paid to the Company by the Bank during the three months ended March 31, 2014. | |||||||||||||||||||||
Current federal regulations require that the Bank maintain a minimum ratio of total capital to risk weighted assets of 8%, with at least 4% being in the form of Tier 1 capital, as defined in the regulations. In addition, the Bank must maintain a leverage ratio of 4%. To be categorized as well capitalized, the Bank must maintain minimum amounts and ratios as set forth in the table below. The Bank’s actual capital amounts and ratios are also presented in the table below. At March 31, 2014 the Bank was classified as well capitalized for regulatory capital purposes. | |||||||||||||||||||||
Actual | Minimum For Capital | Minimum To be Well | |||||||||||||||||||
Adequacy Purposes | Capitalized under | ||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||
Action Provisions | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
As of March 31, 2014: | (amounts in thousands, except ratios) | ||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 52,062 | 11.5 | % | $ | 36,259 | 8 | % | $ | 45,324 | 10 | % | |||||||||
Tier I Capital (to Risk Weighted Assets) | 46,325 | 10.2 | % | 18,129 | 4 | % | 27,194 | 6 | % | ||||||||||||
Tier I Capital (to Average Assets) | 46,325 | 5.7 | % | 32,606 | 4 | % | 40,758 | 5 | % | ||||||||||||
As of December 31, 2013: | |||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 50,601 | 10.9 | % | $ | 37,057 | 8 | % | $ | 46,322 | 10 | % | |||||||||
Tier I Capital (to Risk Weighted Assets) | 44,739 | 9.7 | % | 18,529 | 4 | % | 27,793 | 6 | % | ||||||||||||
Tier I Capital (to Average Assets) | 44,739 | 5.5 | % | 32,529 | 4 | % | 40,661 | 5 | % | ||||||||||||
The Company is also subject to capital requirements. At March 31, 2014 and December 31, 2013, the Company’s total capital to risk weighted assets, Tier 1 capital to risk weighted assets, and Tier 1 capital to average assets were 11.0%, 7.1%, and 3.9%, and 10.7%, 6.3%, and 3.6%, respectively. | |||||||||||||||||||||
In late May 2011, the Company and the Bank entered into a formal written agreement (the "Written Agreement") with the Federal Reserve Bank of Richmond (the "FRB") and the North Carolina Office of the Commissioner of Banks (the "NCCOB"). Under the terms of the Written Agreement, the Bank developed and submitted for approval, within the time periods specified, plans to: | |||||||||||||||||||||
• | revise lending and credit administration policies and procedures at the Bank and provide relevant training; | ||||||||||||||||||||
• | enhance the Bank's real estate appraisal policies and procedures; | ||||||||||||||||||||
• | enhance the Bank's loan grading and independent loan review programs; | ||||||||||||||||||||
• | improve the Bank's position with respect to loans, relationships, or other assets in excess of $750,000, which are now or in the future become past due more than 90 days, are on the Bank's problem loan list, or adversely classified in any report of examination of the Bank; and | ||||||||||||||||||||
• | review and revise the Bank's policy regarding the Bank's allowance for loan and lease losses and maintain a program for the maintenance of an adequate allowance. | ||||||||||||||||||||
In addition, the Bank has agreed that it will: | |||||||||||||||||||||
• | refrain from extending, renewing, or restructuring any credit to or for the benefit of any borrower, or related interest, whose loans or other extensions of credit have been criticized in any report of examination of the Bank absent prior approval by the Bank's board of directors or a designated committee of the board in accordance with the restrictions in the Written Agreement; | ||||||||||||||||||||
• | eliminate from its books, by charge-off or collection, all assets or portions of assets classified as “loss” in any report of examination of the Bank, unless otherwise approved by the FRB and the NCCOB; and | ||||||||||||||||||||
• | take all necessary steps to correct all violations of law or regulation cited by the FRB and the NCCOB. | ||||||||||||||||||||
In addition, the Company has agreed that it will: | |||||||||||||||||||||
• | refrain from taking any form of payment representing a reduction in capital from the Bank or make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities absent prior regulatory approval; | ||||||||||||||||||||
• | refrain from incurring, increasing, or guaranteeing any debt without the prior written approval of the FRB; and | ||||||||||||||||||||
• | refrain from purchasing or redeeming any shares of its stock without the prior written consent of the FRB. | ||||||||||||||||||||
Under the terms of the Written Agreement, both the Company and the Bank have agreed to: | |||||||||||||||||||||
• | submit for approval a joint plan to maintain sufficient capital at the Company on a consolidated basis and at the Bank on a stand-alone basis; | ||||||||||||||||||||
• | notify the FRB and the NCCOB if the Company's or the Bank's capital ratios fall below the approved capital plan's minimum ratios; | ||||||||||||||||||||
• | refrain from declaring or paying any dividends absent prior regulatory approval; | ||||||||||||||||||||
• | comply with applicable notice provisions with respect to the appointment of new directors and senior executive officers of the Company and the Bank and legal and regulatory limitations on indemnification and severance payments; and | ||||||||||||||||||||
• | submit annual business plans and budgets and quarterly joint written progress reports regarding compliance with the Written Agreement. | ||||||||||||||||||||
The Company and the Bank continue to be committed to addressing and resolving the issues raised in the Written Agreement. Upon initial receipt of the Written Agreement, the Board of Directors established an Enforcement Action Committee that meets regularly to monitor the Bank's progress on compliance with the Written Agreement. The Bank has made progress on multiple provisions included in the Written Agreement and continues to address outstanding items that are not in full compliance. In the initial efforts to comply, several control changes were implemented to address the identification and valuation of impaired loans, the support and validation of the allowance for loan losses, and the valuation of foreclosed assets. Additionally, the Bank implemented additional controls around obtaining updated collateral valuations as required by regulation and established new policies to further reduce Commercial Real Estate concentrations, ensure current financial information is evaluated, and control interest only loans. The Bank also created a separate Special Assets department and in 2012 added additional resources to provide adequate attention and expertise to problem loan management. Other areas also addressed include the adequacy of credit resources, portfolio risk management and reporting, and consistency and compliance when dealing with loan workouts. A material failure to comply with the terms of the Written Agreement could subject the Company to additional regulatory actions and further restrictions on its business. These regulatory actions and resulting restrictions on the Company's business may have a material adverse effect on its future results of operations and financial condition. | |||||||||||||||||||||
Since the Company and the Bank entered the Written Agreement, management has had frequent and regular communication with the FRB and NCCOB. This communication has involved: | |||||||||||||||||||||
• | updates on the progress involving each of the actions outlined in the Written Agreement | ||||||||||||||||||||
• | specific steps taken by the Company to remain in compliance with the Written Agreement, and | ||||||||||||||||||||
• | communications, verbally and via interim internal reports, regarding the financial status of the Company including, but not limited to, the Company's key capital ratios | ||||||||||||||||||||
To date, the Company has not received any disagreement from the regulatory authorities regarding actions taken or contemplated. At this time, the Company is in partial compliance with the provisions of the Written Agreement. |
SECURITIES_PURCHASE_AGREEMENT
SECURITIES PURCHASE AGREEMENT | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
SECURITIES PURCHASE AGREEMENT | ' |
SECURITIES PURCHASE AGREEMENT | |
On March 24, 2014, the Company entered into a securities purchase agreement (the "Securities Purchase Agreement") with Kenneth R. Lehman, a private investor (the “Standby Investor”). Pursuant to the Securities Purchase Agreement, the Standby Investor has agreed to purchase from the Company (the “Standby Offering”), for $1.00 per share, the lesser of (i) 10,000,000 shares of Common Stock, (ii) if the Rights Offering (as defined below) is completed, all shares of Common Stock not purchased by shareholders exercising their basic subscription privilege, and (iii) the maximum number of shares that he may purchase without causing an “ownership change” under Section 382(g) of the Internal Revenue Code of 1986, as amended (based on all shares of Common Stock outstanding at the completion of the Rights Offering and the Standby Offering). In addition, the Securities Purchase Agreement provides the Standby Investor a right of first refusal to purchase an additional 6,000,000 shares subject to the limitations outlined in clauses (ii) and (iii) above. | |
Pursuant to the Securities Purchase Agreement, on March 27, 2014, the Company closed the initial sale of 875,000 shares of Common Stock to the Standby Investor. The Securities Purchase Agreement contemplates a subsequent closing of the remaining number of shares based on the formula above and the Standby Investor’s decision on whether to exercise his right of first refusal. The Company has agreed that if for any reason it does not complete the Rights Offering, the Standby Investor will still be permitted to purchase shares of Common Stock as set forth above. | |
The Securities Purchase Agreement contains customary representations, warranties, and various covenants, including, among others, covenants by the Company to (i) adopt a restricted stock plan for the benefit of the Company’s officers, (ii) adopt an asset resolution plan, and (iii) establish a rights plan to protect the Company’s deferred tax asset. Consummation of the Standby Offering is subject to (a) receipt of required regulatory approvals and non-objections, (b) receipt by the Company of a letter from an independent accounting firm related to the Company’s deferred tax asset, and (c) other customary closing conditions set forth in the Securities Purchase Agreement. The Company has also agreed to enter into a registration rights agreement with the Standby Investor (the “Registration Rights Agreement”), which will provide the Standby Investor demand registration and piggyback registration rights with respect to the Standby Investor’s resale of shares purchased under the Securities Purchase Agreement, subject to customary limitations. The Company has agreed to pay the expenses associated with any registration statements filed with the Securities and Exchange Commission (the “Commission”) pursuant to the Registration Rights Agreement. Between the closing of the Standby Offering and the third anniversary of the closing date, for as long as the Standby Investor owns at least 25% of the Company’s outstanding shares of Common Stock, if the Company makes any public or non-public offering of any equity or any securities, options, or debt that are convertible or exchangeable into equity or that include an equity component, the Standby Investor will be afforded the opportunity to acquire from the Company for the same price and on the same terms as such securities are proposed to be offered to others, up to the amount in the aggregate required to enable him to maintain his proportionate common stock-equivalent interest in the Company. | |
In addition, on March 26, 2014, the Company announced that it intends to conduct a rights offering of up to approximately $26.6 million (the “Rights Offering”). In the Rights Offering, the Company will distribute, at no charge, non-transferable subscription rights to its shareholders as of a future record date. For each share of Common Stock held as of the record date, a shareholder will receive a non-transferable right to purchase three shares of Common Stock at a subscription price of $1.00 per share (the “Basic Subscription Privilege”). Shareholders who exercise their Basic Subscription Privilege in full will have the opportunity to subscribe for additional shares for pro rata allocation in the event that not all available shares are purchased pursuant to the Basic Subscription Privilege or by the Standby Investor pursuant to the Securities Purchase Agreement, subject to certain limitations. | |
The Company intends to commence the Rights Offering during the second or third quarter of 2014. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
New Accounting Standards | ' |
New Accounting Standards | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update seeks to eliminate the diversity in practice in the presentation of unrecognized tax benefits by providing explicit guidance on the financial statement presentation of an unrecognized tax benefit with a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This amendment is effective for annual and interim periods beginning after December 15, 2013. The adoption of the new guidance did not have a material impact on the Company's consolidated financial statements. | |
In January 2014, the FASB issued ASU No. 2014-04, Receivables–Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. This update clarifies that an in substance repossession or foreclosure occurs upon either the creditor obtaining legal title to the residential real estate property or the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This amendment is effective for annual and interim periods beginning after December 15, 2014. Management does not expect the adoption of this guidance to have a material impact on the Company's financial statements. | |
Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations and cash flows. | |
From time to time the FASB issues exposure drafts for proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Loan Commitments | ' | |||
The following table presents loan commitments at March 31, 2014. | ||||
March 31, 2014 | ||||
(amounts in thousands) | ||||
Commitments to extend credit | $ | 21,477 | ||
Undisbursed lines of credit | 51,601 | |||
Financial stand-by letters of credit | 228 | |||
Performance stand-by letters of credit | 467 | |||
Legally binding commitments | 73,773 | |||
Unused credit card lines | 14,507 | |||
Total | $ | 88,280 | ||
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Earnings Per Share [Abstract] | ' | ||||||
Schedule of Weighted Average Number of Shares | ' | ||||||
Basic and diluted net income per common share have been computed based upon net income as presented in the accompanying consolidated statements of operations divided by the weighted average number of common shares outstanding or assumed to be outstanding as summarized below: | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Weighted average number of common shares used in computing basic net income per common share | 8,036,990 | 7,821,582 | |||||
Effect of dilutive stock options | 12,369 | — | |||||
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per common share | 8,049,359 | 7,821,582 | |||||
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities Available for Sale | ' | |||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Available for Sale: | (amounts in thousands) | |||||||||||||||||||||||
Taxable municipal securities | $ | 9,638 | $ | 146 | $ | 19 | $ | 9,765 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 13,000 | 11 | 57 | 12,954 | ||||||||||||||||||||
Trust preferred securities | 500 | — | 90 | 410 | ||||||||||||||||||||
Equity securities | 53 | 42 | — | 95 | ||||||||||||||||||||
Total | $ | 23,191 | $ | 199 | $ | 166 | $ | 23,224 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Available for Sale: | (amounts in thousands) | |||||||||||||||||||||||
Taxable municipal securities | $ | 6,176 | $ | — | $ | 243 | $ | 5,933 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 25,773 | — | 296 | 25,477 | ||||||||||||||||||||
FNMA | — | — | — | — | ||||||||||||||||||||
Trust preferred securities | 1,175 | — | 150 | 1,025 | ||||||||||||||||||||
Equity securities | 98 | 33 | — | 131 | ||||||||||||||||||||
Total | $ | 33,222 | $ | 33 | $ | 689 | $ | 32,566 | ||||||||||||||||
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities Held to Maturity | ' | |||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Held to Maturity: | (amounts in thousands) | |||||||||||||||||||||||
Taxable Municipals | $ | 3,635 | $ | 3 | $ | 157 | $ | 3,481 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 89,892 | 162 | 2,171 | 87,883 | ||||||||||||||||||||
FNMA | 4,486 | 19 | 4,467 | |||||||||||||||||||||
Total | $ | 98,013 | $ | 165 | $ | 2,347 | $ | 95,831 | ||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Securities Held to Maturity: | (amounts in thousands) | |||||||||||||||||||||||
Taxable municipal securities | $ | 3,622 | $ | — | $ | 93 | $ | 3,529 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 86,352 | 322 | 1,136 | 85,538 | ||||||||||||||||||||
FNMA | 4,254 | 1 | 1 | 4,254 | ||||||||||||||||||||
Total | $ | 94,228 | $ | 323 | $ | 1,230 | $ | 93,321 | ||||||||||||||||
Schedule of Unrealized Losses and Fair Values of Investment Securities | ' | |||||||||||||||||||||||
The following tables show gross unrealized losses and fair values of investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at March 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||
Taxable municipal securities | $ | 1,479 | $ | 19 | $ | — | $ | — | $ | 1,479 | $ | 19 | ||||||||||||
Mortgage-backed securities - GNMA | 9,858 | 57 | — | — | 9,858 | 57 | ||||||||||||||||||
Trust preferred securities | — | — | 410 | 90 | 410 | 90 | ||||||||||||||||||
Total temporarily impaired securities | $ | 11,337 | $ | 76 | $ | 410 | $ | 90 | $ | 11,747 | $ | 166 | ||||||||||||
March 31, 2014 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities held to maturity: | ||||||||||||||||||||||||
Taxable municipal securities | $ | 3,529 | $ | 93 | $ | — | $ | — | $ | 3,529 | $ | 93 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||
GNMA | 54,630 | 1,055 | 2,179 | 81 | 56,809 | 1,136 | ||||||||||||||||||
FNMA | 2,911 | 1 | — | — | 2,911 | 1 | ||||||||||||||||||
Total temporarily impaired securities | $ | 61,070 | $ | 1,149 | $ | 2,179 | $ | 81 | $ | 63,249 | $ | 1,230 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||
Taxable municipal securities | $ | 5,933 | $ | 243 | $ | — | $ | — | $ | 5,933 | $ | 243 | ||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||
GNMA | 25,477 | 296 | — | — | 25,477 | 296 | ||||||||||||||||||
FNMA | — | — | — | — | — | — | ||||||||||||||||||
Trust preferred securities | — | — | 410 | 90 | 410 | 90 | ||||||||||||||||||
Total temporarily impaired securities | $ | 31,410 | $ | 539 | $ | 410 | $ | 90 | $ | 31,820 | $ | 629 | ||||||||||||
Other than temporary impairment | ||||||||||||||||||||||||
Trust preferred securities | $ | — | $ | — | $ | 615 | $ | 60 | $ | 615 | $ | 60 | ||||||||||||
Total other than temporarily impaired securities | $ | — | $ | — | $ | 615 | $ | 60 | $ | 615 | $ | 60 | ||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Securities held to maturity: | ||||||||||||||||||||||||
Taxable municipal securities | $ | 2,776 | $ | 157 | $ | — | $ | — | $ | 2,776 | $ | 157 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||
GNMA | 74,830 | 2,073 | 2,223 | 98 | 77,053 | 2,171 | ||||||||||||||||||
FNMA | 4,467 | 19 | — | — | 4,467 | 19 | ||||||||||||||||||
Total temporarily impaired securities | $ | 82,073 | $ | 2,249 | $ | 2,223 | $ | 98 | $ | 84,296 | $ | 2,347 | ||||||||||||
Investment Securities Classified by Contractual Maturities | ' | |||||||||||||||||||||||
The amortized cost and fair value of available for sale and held to maturity securities at March 31, 2014 by contractual maturities are shown on the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
Available for Sale | ||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||
Due after one year through five years | $ | — | $ | — | ||||||||||||||||||||
Due after five years through ten years | — | — | ||||||||||||||||||||||
Due after ten years | 9,638 | 9,765 | ||||||||||||||||||||||
Total taxable municipal securities | 9,638 | 9,765 | ||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||
Due within one year | — | — | ||||||||||||||||||||||
Due after one year through five years | — | — | ||||||||||||||||||||||
Due after five years through ten years | 13,000 | 12,954 | ||||||||||||||||||||||
Due after ten years | — | — | ||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 13,000 | 12,954 | ||||||||||||||||||||||
Other securities: | ||||||||||||||||||||||||
Trust preferred securities | 500 | 410 | ||||||||||||||||||||||
Equity securities | 53 | 95 | ||||||||||||||||||||||
Total other securities | 553 | 505 | ||||||||||||||||||||||
Total available for sale securities | $ | 23,191 | $ | 23,224 | ||||||||||||||||||||
Held to Maturity | ||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Taxable municipal securities: | ||||||||||||||||||||||||
Due within one year | — | — | ||||||||||||||||||||||
Due after one year through five years | 989 | 980 | ||||||||||||||||||||||
Due after five years through ten years | 2,633 | 2,549 | ||||||||||||||||||||||
Due after ten years | — | — | ||||||||||||||||||||||
Total taxable municipal securities | 3,622 | 3,529 | ||||||||||||||||||||||
Mortgage-backed securities - GNMA/FNMA: | ||||||||||||||||||||||||
Due within one year | — | — | ||||||||||||||||||||||
Due after one year through five years | 54,621 | 54,656 | ||||||||||||||||||||||
Due after five years through ten years | 29,033 | 28,473 | ||||||||||||||||||||||
Due after ten years | 6,952 | 6,663 | ||||||||||||||||||||||
Total mortgage-backed securities - GNMA/FNMA | 90,606 | 89,792 | ||||||||||||||||||||||
Total Munis, GNMA, FNMA securities | $ | 94,228 | $ | 93,321 | ||||||||||||||||||||
LOANS_Tables
LOANS (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Summary of Loans Outstanding | ' | |||||||||||||||||||||||||||||||
The classification of loans as of March 31, 2014 and December 31, 2013 are summarized as follows: | ||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 25,626 | $ | 25,858 | ||||||||||||||||||||||||||||
Commercial construction and land development | 62,599 | 66,253 | ||||||||||||||||||||||||||||||
Commercial real estate | 208,783 | 214,159 | ||||||||||||||||||||||||||||||
Residential construction | 28,626 | 28,697 | ||||||||||||||||||||||||||||||
Residential mortgage | 146,841 | 147,300 | ||||||||||||||||||||||||||||||
Consumer | 7,041 | 6,750 | ||||||||||||||||||||||||||||||
Consumer credit cards | 2,189 | 2,339 | ||||||||||||||||||||||||||||||
Business credit cards | 1,175 | 1,124 | ||||||||||||||||||||||||||||||
Other | 446 | 738 | ||||||||||||||||||||||||||||||
Gross loans | 483,326 | 493,218 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Net deferred loan fees | (504 | ) | (506 | ) | ||||||||||||||||||||||||||||
Net loans before allowance | 482,822 | 492,712 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (11,516 | ) | (11,590 | ) | ||||||||||||||||||||||||||||
Total net loans | $ | 471,306 | $ | 481,122 | ||||||||||||||||||||||||||||
Summary of Nonperforming Assets | ' | |||||||||||||||||||||||||||||||
Nonperforming assets at March 31, 2014 and December 31, 2013 consist of the following: | ||||||||||||||||||||||||||||||||
March 31, 2014 | 31-Dec-13 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Loans past due ninety days or more and still accruing | $ | 9 | $ | 23 | ||||||||||||||||||||||||||||
Nonaccrual loans | 28,250 | 27,227 | ||||||||||||||||||||||||||||||
Foreclosed assets | 7,404 | 8,502 | ||||||||||||||||||||||||||||||
Total | $ | 35,663 | $ | 35,752 | ||||||||||||||||||||||||||||
Analysis of the Allowance for Loan Losses by Loan Class | ' | |||||||||||||||||||||||||||||||
The following tables are an analysis of the allowance for loan losses by loan class, as of and for the three months ended March 31, 2014 and 2013 and as of and for the twelve months ended December 31, 2013. | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | (amounts in thousands) | |||||||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 1,290 | $ | 4,083 | $ | 2,262 | $ | 287 | $ | 3,522 | $ | 72 | $ | 74 | $ | 11,590 | ||||||||||||||||
Provision for loan losses | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Loans charged-off | (23 | ) | (153 | ) | (207 | ) | — | (67 | ) | (42 | ) | — | (492 | ) | ||||||||||||||||||
Recoveries | 39 | 42 | 159 | — | 142 | 15 | 21 | 418 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | 16 | (111 | ) | (48 | ) | — | 75 | (27 | ) | 21 | (74 | ) | ||||||||||||||||||||
Balance, March 31, 2014 | $ | 1,306 | $ | 3,972 | $ | 2,214 | $ | 287 | $ | 3,597 | $ | 45 | $ | 95 | $ | 11,516 | ||||||||||||||||
Ending Balance: individually | $ | 265 | $ | 509 | $ | 874 | $ | 137 | $ | 470 | $ | — | $ | — | $ | 2,255 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | $ | 1,041 | $ | 3,463 | $ | 1,340 | $ | 150 | $ | 3,127 | $ | 45 | $ | 95 | $ | 9,261 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending Balance | $ | 26,801 | $ | 62,599 | $ | 208,783 | $ | 28,626 | $ | 146,841 | $ | 9,230 | $ | 446 | $ | 483,326 | ||||||||||||||||
Less Ending Balance: individually evaluated for impairment | $ | 796 | $ | 11,180 | $ | 12,429 | $ | 695 | $ | 9,714 | $ | 553 | $ | — | $ | 35,367 | ||||||||||||||||
Ending balance: collectively | $ | 26,005 | $ | 51,419 | $ | 196,354 | $ | 27,931 | $ | 137,127 | $ | 8,677 | $ | 446 | $ | 447,959 | ||||||||||||||||
evaluated for impairment (1) | ||||||||||||||||||||||||||||||||
(1) In 2013, the the Bank began evaluating small dollar homogeneous impaired loans collectively for impairment and these impaired loans are included in this total. At March 31, 2014 there were $1.8 million in impaired loans collectively evaluated for impairment with $233,000 in reserves established. | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | (amounts in thousands) | |||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Provision for loan losses | (12 | ) | 941 | (252 | ) | 39 | (702 | ) | 30 | (9 | ) | 35 | ||||||||||||||||||||
Loans charged-off | (18 | ) | (660 | ) | (238 | ) | — | (610 | ) | (91 | ) | — | (1,617 | ) | ||||||||||||||||||
Recoveries | 23 | 87 | 1 | — | 123 | 46 | — | 280 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | 5 | (573 | ) | (237 | ) | — | (487 | ) | (45 | ) | — | (1,337 | ) | |||||||||||||||||||
Balance, March 31, 2013 | $ | 1,178 | $ | 7,619 | $ | 2,472 | $ | 462 | $ | 3,282 | $ | 173 | $ | 61 | $ | 15,247 | ||||||||||||||||
Ending Balance: individually | $ | 500 | $ | 1,496 | $ | 270 | $ | 60 | $ | 721 | $ | 5 | $ | — | $ | 3,052 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | $ | 678 | $ | 6,123 | $ | 2,202 | $ | 402 | $ | 2,561 | $ | 168 | $ | 61 | $ | 12,195 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending Balance | $ | 29,202 | $ | 84,843 | $ | 200,939 | $ | 20,895 | $ | 140,820 | $ | 9,281 | $ | 960 | $ | 486,940 | ||||||||||||||||
Less Ending Balance: individually evaluated for impairment | $ | 1,287 | $ | 19,339 | $ | 17,268 | $ | 833 | $ | 15,237 | $ | 10 | $ | — | $ | 53,974 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 27,915 | $ | 65,504 | $ | 183,671 | $ | 20,062 | $ | 125,583 | $ | 9,271 | $ | 960 | $ | 432,966 | ||||||||||||||||
Twelve Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
Allowances for loan losses: | (amounts in thousands) | |||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,185 | $ | 7,251 | $ | 2,961 | $ | 423 | $ | 4,471 | $ | 188 | $ | 70 | $ | 16,549 | ||||||||||||||||
Provision for loan losses | 2 | 4 | 15 | 2 | 11 | 1 | — | 35 | ||||||||||||||||||||||||
Loans charged-off | (411 | ) | (3,759 | ) | (2,220 | ) | (138 | ) | (1,559 | ) | (271 | ) | — | (8,358 | ) | |||||||||||||||||
Recoveries | 514 | 587 | 1,506 | — | 599 | 154 | 4 | 3,364 | ||||||||||||||||||||||||
Net (charge-offs) recoveries | 103 | (3,172 | ) | (714 | ) | (138 | ) | (960 | ) | (117 | ) | 4 | (4,994 | ) | ||||||||||||||||||
Balance, December 31, 2013 | $ | 1,290 | $ | 4,083 | $ | 2,262 | $ | 287 | $ | 3,522 | $ | 72 | $ | 74 | $ | 11,590 | ||||||||||||||||
Ending Balance: individually | $ | 80 | $ | 264 | $ | 887 | $ | 137 | $ | 457 | $ | — | $ | — | $ | 1,825 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Ending balance: collectively | $ | 1,210 | $ | 3,819 | $ | 1,375 | $ | 150 | $ | 3,065 | $ | 72 | $ | 74 | $ | 9,765 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending Balance | $ | 26,982 | $ | 66,253 | $ | 214,159 | $ | 28,697 | $ | 147,300 | $ | 9,089 | $ | 738 | $ | 493,218 | ||||||||||||||||
Less Ending Balance: individually evaluated for impairment | 652 | 12,234 | 12,345 | 1,181 | 11,043 | — | — | 37,455 | ||||||||||||||||||||||||
Ending balance: collectively | $ | 26,330 | $ | 54,019 | $ | 201,814 | $ | 27,516 | $ | 136,257 | $ | 9,089 | $ | 738 | $ | 455,763 | ||||||||||||||||
evaluated for impairment | ||||||||||||||||||||||||||||||||
Summary of Segments of Loans by Grade | ' | |||||||||||||||||||||||||||||||
The following tables are an analysis of the creditworthiness class by loan class and credit card portfolio exposure as of | ||||||||||||||||||||||||||||||||
March 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
1 - Lowest Risk | $ | 2,061 | $ | — | $ | — | $ | — | $ | — | $ | 1,591 | $ | 8 | $ | 3,660 | ||||||||||||||||
2 - Satisfactory Quality | 759 | 522 | 2,408 | 181 | 13,649 | 367 | 14 | 17,900 | ||||||||||||||||||||||||
3 - Satisfactory | ||||||||||||||||||||||||||||||||
- Merits Attention | 9,322 | 12,244 | 73,494 | 2,470 | 53,886 | 3,398 | 191 | 155,005 | ||||||||||||||||||||||||
4 - Low Satisfactory | 12,363 | 35,954 | 118,786 | 24,877 | 56,758 | 1,023 | 109 | 249,870 | ||||||||||||||||||||||||
5 - Special mention | 198 | 1,849 | 2,460 | 288 | 8,377 | 63 | 124 | 13,359 | ||||||||||||||||||||||||
6-8 - Substandard | 923 | 12,030 | 11,635 | 810 | 14,171 | 599 | — | 40,168 | ||||||||||||||||||||||||
$ | 25,626 | $ | 62,599 | $ | 208,783 | $ | 28,626 | $ | 146,841 | $ | 7,041 | $ | 446 | $ | 479,962 | |||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||
Consumer - | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Performing | $ | 2,105 | $ | 1,131 | ||||||||||||||||||||||||||||
Non Performing | 84 | 44 | ||||||||||||||||||||||||||||||
Total | $ | 2,189 | $ | 1,175 | ||||||||||||||||||||||||||||
Total Loans | $ | 483,326 | ||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial | Residential | Residential | Consumer | Other | Totals | |||||||||||||||||||||||||
and | Construction | Real | Construction | Mortgage | ||||||||||||||||||||||||||||
Industrial | and Land | Estate | ||||||||||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
1 - Lowest Risk | $ | 2,014 | $ | — | $ | — | $ | — | $ | — | $ | 1,365 | $ | 8 | $ | 3,387 | ||||||||||||||||
2 - Satisfactory Quality | 646 | 374 | 2,696 | 2 | 12,811 | 412 | 15 | 16,956 | ||||||||||||||||||||||||
3 - Satisfactory | ||||||||||||||||||||||||||||||||
- Merits Attention | 9,639 | 14,296 | 75,898 | 3,473 | 53,144 | 3,628 | 482 | 160,560 | ||||||||||||||||||||||||
4 - Low Satisfactory | 12,616 | 36,723 | 121,522 | 23,779 | 57,460 | 1,235 | 107 | 253,442 | ||||||||||||||||||||||||
5 - Special mention | 137 | 1,922 | 2,558 | 262 | 8,450 | 63 | 126 | 13,518 | ||||||||||||||||||||||||
6-8 - Substandard | 806 | 12,938 | 11,485 | 1,181 | 15,435 | 47 | — | 41,892 | ||||||||||||||||||||||||
$ | 25,858 | $ | 66,253 | $ | 214,159 | $ | 28,697 | $ | 147,300 | $ | 6,750 | $ | 738 | $ | 489,755 | |||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Consumer- | Business- | |||||||||||||||||||||||||||||||
Credit Card | Credit Card | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Performing | $ | 2,316 | $ | 1,124 | ||||||||||||||||||||||||||||
Non Performing | 23 | — | ||||||||||||||||||||||||||||||
Total | $ | 2,339 | $ | 1,124 | ||||||||||||||||||||||||||||
Total Loans | $ | 493,218 | ||||||||||||||||||||||||||||||
Age Analysis of Past Due Loans | ' | |||||||||||||||||||||||||||||||
The following tables are an age analysis of past due loans by loan class, as of March 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual | Total Past | Current | Total | ||||||||||||||||||||||||||||
Past Due | and Greater | Due | Loans | |||||||||||||||||||||||||||||
than 90 | ||||||||||||||||||||||||||||||||
Days Past | ||||||||||||||||||||||||||||||||
Due (1) | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial & industrial | $ | — | $ | 811 | — | $ | 811 | $ | 24,815 | $ | 25,626 | |||||||||||||||||||||
Commercial construction and land development | 271 | 11,178 | 11,449 | 51,150 | 62,599 | |||||||||||||||||||||||||||
Commercial real estate | 5 | 6,099 | 6,104 | 202,679 | 208,783 | |||||||||||||||||||||||||||
Residential construction | — | 695 | 695 | 27,931 | 28,626 | |||||||||||||||||||||||||||
Residential mortgage | 753 | 8,906 | 9,659 | 137,182 | 146,841 | |||||||||||||||||||||||||||
Consumer | 56 | 561 | 617 | 6,424 | 7,041 | |||||||||||||||||||||||||||
Consumer credit cards | 78 | 6 | 84 | 2,105 | 2,189 | |||||||||||||||||||||||||||
Business credit cards | 41 | 3 | 44 | 1,131 | 1,175 | |||||||||||||||||||||||||||
Other loans | — | — | — | 446 | 446 | |||||||||||||||||||||||||||
Total | $ | 1,204 | $ | 28,259 | $ | 29,463 | $ | 453,863 | $ | 483,326 | ||||||||||||||||||||||
(1) Nonaccruals and Greater than 90 Days Past Due is comprised of $9,000 in credit card loans that were past due more than 90 days and still accruing interest, as well as $28.3 million of loans in nonaccrual status. | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
30-89 Days | Nonaccrual | Total Past | Current | Total | ||||||||||||||||||||||||||||
Past Due | and Greater | Due | Loans | |||||||||||||||||||||||||||||
than 90 | ||||||||||||||||||||||||||||||||
Days Past | ||||||||||||||||||||||||||||||||
Due (1) | ||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial & industrial | $ | 34 | $ | 651 | $ | 685 | $ | 25,173 | $ | 25,858 | ||||||||||||||||||||||
Commercial construction and land development | 252 | 9,536 | 9,788 | 56,465 | 66,253 | |||||||||||||||||||||||||||
Commercial real estate | 749 | 6,391 | 7,140 | 207,019 | 214,159 | |||||||||||||||||||||||||||
Residential construction | — | 695 | 695 | 28,002 | 28,697 | |||||||||||||||||||||||||||
Residential mortgage | 421 | 9,943 | 10,364 | 136,936 | 147,300 | |||||||||||||||||||||||||||
Consumer | 11 | 11 | 22 | 6,728 | 6,750 | |||||||||||||||||||||||||||
Consumer credit cards | 76 | 23 | 99 | 2,240 | 2,339 | |||||||||||||||||||||||||||
Business credit cards | 52 | — | 52 | 1,072 | 1,124 | |||||||||||||||||||||||||||
Other loans | — | — | — | 738 | 738 | |||||||||||||||||||||||||||
Total | $ | 1,595 | $ | 27,250 | $ | 28,845 | $ | 464,373 | $ | 493,218 | ||||||||||||||||||||||
(1) Nonaccruals and Greater than 90 Days Past Due is comprised of $23,000 in credit card loans that were past due more than 90 days and still accruing interest, as well as $27.2 million of loans in nonaccrual status. | ||||||||||||||||||||||||||||||||
Summary of Impaired Loans | ' | |||||||||||||||||||||||||||||||
The following table illustrates the impaired loans by loan class as of March 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||||||||
Year to Date | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 388 | $ | 425 | $ | — | $ | 390 | $ | — | ||||||||||||||||||||||
Commercial construction and land development | 9,347 | 13,478 | — | 9,604 | 5 | |||||||||||||||||||||||||||
Commercial real estate other | 8,467 | 10,323 | — | 8,747 | 44 | |||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | |||||||||||||||||||||||||||
Residential mortgage | 8,883 | 10,530 | — | 9,000 | 25 | |||||||||||||||||||||||||||
Consumer | 561 | 775 | — | 578 | — | |||||||||||||||||||||||||||
Subtotal: | 27,646 | 35,531 | — | 28,319 | 74 | |||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 460 | $ | 539 | $ | 265 | $ | 463 | $ | — | ||||||||||||||||||||||
Commercial construction and land development | 2,057 | 3,313 | 509 | 2,086 | 3 | |||||||||||||||||||||||||||
Commercial real estate other | 4,166 | 4,458 | 874 | 4,179 | 40 | |||||||||||||||||||||||||||
Residential construction | 695 | 1,134 | 137 | 695 | — | |||||||||||||||||||||||||||
Residential mortgage | 2,113 | 2,308 | 470 | 2,119 | 5 | |||||||||||||||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal: | 9,491 | 11,752 | 2,255 | 9,542 | 48 | |||||||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||||||||
Commercial | 24,885 | 32,536 | 1,648 | 25,469 | 92 | |||||||||||||||||||||||||||
Consumer | 561 | 775 | — | 578 | — | |||||||||||||||||||||||||||
Residential | 11,691 | 13,972 | 607 | 11,814 | 30 | |||||||||||||||||||||||||||
Grand Total | $ | 37,137 | $ | 47,283 | $ | 2,255 | $ | 37,861 | $ | 122 | ||||||||||||||||||||||
At March 31, 2014, the recorded investment in loans considered impaired totaled $37.1 million. Of the total investment in loans considered impaired, $9.5 million were found to show specific impairment for which a $2.3 million valuation allowance was recorded; the remaining $27.6 million in impaired loans required no specific valuation allowance because either previously established valuation allowances had been absorbed by partial charge-offs or loan evaluations had no indication of impairment which would require a valuation allowance. At March 31, 2014, the average recorded investment in impaired loans was approximately $37.9 million. The amount of interest recognized on impaired loans during the portion of the year that they were considered impaired was approximately $122,000. | ||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Year to Date | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 380 | $ | 517 | $ | — | $ | 491 | $ | 2 | ||||||||||||||||||||||
Commercial construction and land development | 11,142 | 15,809 | — | 13,259 | 168 | |||||||||||||||||||||||||||
Commercial real estate other | 8,437 | 10,131 | — | 9,190 | 132 | |||||||||||||||||||||||||||
Residential construction | 486 | 486 | — | 474 | 26 | |||||||||||||||||||||||||||
Residential mortgage | 10,948 | 12,731 | — | 11,624 | 121 | |||||||||||||||||||||||||||
Consumer | 11 | 22 | — | 17 | — | |||||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal: | 31,404 | 39,696 | — | 35,055 | 449 | |||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 309 | $ | 322 | $ | 80 | $ | 321 | $ | — | ||||||||||||||||||||||
Commercial construction and land development | 1,315 | 2,033 | 264 | 1,348 | — | |||||||||||||||||||||||||||
Commercial real estate other | 4,026 | 4,096 | 888 | 4,104 | 136 | |||||||||||||||||||||||||||
Residential construction | 695 | 1,134 | 137 | 749 | — | |||||||||||||||||||||||||||
Residential mortgage | 1,427 | 1,593 | 456 | 1,499 | 8 | |||||||||||||||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||||||||||||||
Other | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal: | 7,772 | 9,178 | 1,825 | 8,021 | 144 | |||||||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||||||||
Commercial | 25,609 | 32,908 | 1,232 | 28,713 | 438 | |||||||||||||||||||||||||||
Consumer | 11 | 22 | — | 17 | — | |||||||||||||||||||||||||||
Residential | 13,556 | 15,944 | 593 | 14,346 | 155 | |||||||||||||||||||||||||||
Grand Total | $ | 39,176 | $ | 48,874 | $ | 1,825 | $ | 43,076 | $ | 593 | ||||||||||||||||||||||
Schedule of Loans, Non Accrual Status | ' | |||||||||||||||||||||||||||||||
The following table illustrates nonaccrual loans by loan class as of March 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||
Commercial & industrial | $ | 811 | $ | 651 | ||||||||||||||||||||||||||||
Commercial construction and land development | 11,178 | 9,536 | ||||||||||||||||||||||||||||||
Commercial real estate | 6,099 | 6,391 | ||||||||||||||||||||||||||||||
Residential construction | 695 | 695 | ||||||||||||||||||||||||||||||
Residential mortgage | 8,906 | 9,943 | ||||||||||||||||||||||||||||||
Consumer | 561 | 11 | ||||||||||||||||||||||||||||||
Total | $ | 28,250 | $ | 27,227 | ||||||||||||||||||||||||||||
Schedule of Loans Modified as Troubled Debt Restructurings | ' | |||||||||||||||||||||||||||||||
The following table provides a summary of loans modified as TDRs at March 31, 2014 and December 31, 2013 (amounts in thousands). | ||||||||||||||||||||||||||||||||
March 31, 2014: | Accrual | Nonaccrual | Total TDRs | Allowance for Loan Losses Allocated | ||||||||||||||||||||||||||||
Commercial & industrial | $ | 37 | $ | 458 | $ | 495 | $ | 158 | ||||||||||||||||||||||||
Commercial construction and land development | 225 | 5,312 | 5,537 | 76 | ||||||||||||||||||||||||||||
Commercial real estate | 4,417 | 4,002 | 8,419 | 185 | ||||||||||||||||||||||||||||
Residential mortgage | 1,979 | 553 | 2,532 | 234 | ||||||||||||||||||||||||||||
Consumer | — | 2,350 | 2,350 | — | ||||||||||||||||||||||||||||
Total modifications | $ | 6,658 | $ | 12,675 | $ | 19,333 | $ | 653 | ||||||||||||||||||||||||
December 31, 2013: | Accrual | Nonaccrual | Total TDRs | Allowance for Loan Losses Allocated | ||||||||||||||||||||||||||||
Commercial & industrial | $ | 37 | $ | 301 | $ | 338 | $ | — | ||||||||||||||||||||||||
Commercial construction and land development | 227 | 6,699 | 6,926 | 34 | ||||||||||||||||||||||||||||
Commercial real estate | 4,447 | 4,204 | 8,651 | 223 | ||||||||||||||||||||||||||||
Residential mortgage | 2,319 | 3,055 | 5,374 | 229 | ||||||||||||||||||||||||||||
Other | — | 1 | 1 | — | ||||||||||||||||||||||||||||
Total modifications | $ | 7,030 | $ | 14,260 | $ | 21,290 | $ | 486 | ||||||||||||||||||||||||
Summary of Successes and Failures of Troubled Debt Restructurings | ' | |||||||||||||||||||||||||||||||
The table below details TDRs that the Bank has entered into during the twelve months ended March 31, 2014. The one TDR executed during the previous 12 months has been converted to nonaccrual. | ||||||||||||||||||||||||||||||||
For the 12 month period ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Paid in full | Paying as restructured | Converted to non-accrual | Foreclosure/Default | |||||||||||||||||||||||||||||
Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | Number of loans | Recorded Investment | |||||||||||||||||||||||||
(amounts in thousands, except number of loans) | ||||||||||||||||||||||||||||||||
Below market interest rate | — | $ | — | — | $ | — | — | $ | — | — | $ | — | ||||||||||||||||||||
Extended payment terms | — | — | — | — | 1 | 55 | — | — | ||||||||||||||||||||||||
Forgiveness of principal | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total | — | $ | — | — | $ | — | 1 | $ | 55 | — | $ | — | ||||||||||||||||||||
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||
The following table presents information about assets measured at fair value on a recurring basis at March 31, 2014 and December 31, 2013. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
March 31, 2014, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant | ||||||||||||||||
Amount in the | Measured | in Active | Other | Unobservable | ||||||||||||||||
Consolidated | at Fair Value | Markets | Observable | Inputs | ||||||||||||||||
Balance Sheet | for Identical | Inputs | ||||||||||||||||||
Assets | ||||||||||||||||||||
Description | 3/31/14 | 3/31/14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Taxable municipal securities | $ | 9,765 | $ | 9,765 | $ | — | $ | 9,765 | $ | — | ||||||||||
Mortgage-backed securities | ||||||||||||||||||||
GNMA | 12,954 | 12,954 | — | 12,954 | — | |||||||||||||||
FNMA | — | — | — | — | — | |||||||||||||||
Trust preferred securities | 410 | 410 | — | — | 410 | |||||||||||||||
Equity securities | 95 | 95 | 84 | 11 | — | |||||||||||||||
Total available for sale | $ | 23,224 | $ | 23,224 | $ | 84 | $ | 22,730 | $ | 410 | ||||||||||
securities | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
December 31, 2013, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant | ||||||||||||||||
Amount in the Consolidated | Measured | in Active | Other | Unobservable | ||||||||||||||||
Balance Sheet | at Fair Value | Markets | Observable | Inputs | ||||||||||||||||
for Identical | Inputs | |||||||||||||||||||
Assets | ||||||||||||||||||||
Description | 12/31/13 | 12/31/13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Taxable municipal securities | $ | 5,933 | $ | 5,933 | $ | — | $ | 5,933 | $ | — | ||||||||||
Mortgage-backed securities | ||||||||||||||||||||
GNMA | 25,477 | 25,477 | — | 25,477 | — | |||||||||||||||
FNMA | — | — | — | — | — | |||||||||||||||
Trust preferred securities | 1,025 | 1,025 | — | — | 1,025 | |||||||||||||||
Equity securities | 131 | 131 | 70 | 61 | — | |||||||||||||||
Total available for sale | $ | 32,566 | $ | 32,566 | $ | 70 | $ | 31,471 | $ | 1,025 | ||||||||||
securities | ||||||||||||||||||||
Level 3 Assets Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||
The following table presents the reconciliation for the three months ended March 31, 2014 and 2013 for all Level 3 assets that are measured at fair value on a recurring basis. | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Beginning Balance | $ | 1,025 | $ | 1,006 | ||||||||||||||||
Total realized and unrealized gains or (losses): | ||||||||||||||||||||
Included in earnings | — | — | ||||||||||||||||||
Included in other comprehensive income (loss) | — | 19 | ||||||||||||||||||
Purchases, issuances and settlements | (615 | ) | — | |||||||||||||||||
Transfers in (out) of Level 3 | — | — | ||||||||||||||||||
Ending Balance | $ | 410 | $ | 1,025 | ||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | ' | |||||||||||||||||||
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring and nonrecurring basis at March 31, 2014 (amounts in thousands, except percentages): | ||||||||||||||||||||
Total Carrying Amount | ||||||||||||||||||||
Nonrecurring measurements: | ||||||||||||||||||||
Impaired loans | $ | 20,419 | Collateral discounts | 9-50% | ||||||||||||||||
Foreclosed assets | $ | 7,404 | Discounted appraisals | 10-30% | ||||||||||||||||
Recurring measurements: | ||||||||||||||||||||
Trust preferred securities | $ | 410 | Probability of default | 10-20% | ||||||||||||||||
Loss given default | 100% | |||||||||||||||||||
Impaired Loans and Foreclosed Assets Measured at Fair Value on a Nonrecurring Basis | ' | |||||||||||||||||||
The following table presents information about individually identified impaired loans and foreclosed assets measured on a non-recurring basis at fair value at March 31, 2014 and December 31, 2013. | ||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||
March 31, 2014, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant | ||||||||||||||||
Amount in the | Measured | in Active | Other | Unobservable | ||||||||||||||||
Consolidated | at Fair Value | Markets | Observable | Inputs | ||||||||||||||||
Balance Sheet | for Identical | Inputs | ||||||||||||||||||
Assets | ||||||||||||||||||||
3/31/14 | 3/31/14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Impaired loans | $ | 20,419 | $ | 20,419 | $ | — | $ | — | $ | 20,419 | ||||||||||
Foreclosed assets | $ | 7,404 | $ | 7,404 | $ | — | $ | — | $ | 7,404 | ||||||||||
Fair Value Measurements at | ||||||||||||||||||||
December 31, 2013, Using | ||||||||||||||||||||
Total Carrying | Assets | Quoted Prices | Significant | Significant Unobservable Inputs | ||||||||||||||||
Amount in the | Measured | in Active | Other | |||||||||||||||||
Consolidated | at Fair Value | Markets | Observable Inputs | |||||||||||||||||
Balance Sheet | for Identical | |||||||||||||||||||
Assets | ||||||||||||||||||||
12/31/13 | 12/31/13 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||
Impaired loans | $ | 18,215 | $ | 18,215 | $ | — | $ | — | $ | 18,215 | ||||||||||
Foreclosed assets | $ | 8,502 | $ | 8,502 | $ | — | $ | — | $ | 8,502 | ||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Information for Financial Assets and Liabilities | ' | |||||||||||||||||
The following table presents information for financial assets and liabilities as of March 31, 2014 and December 31, 2013. | ||||||||||||||||||
March 31, 2014 | ||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||
Value | Fair Value | |||||||||||||||||
Financial assets: | (amounts in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 150,960 | $ | 150,960 | $ | 150,960 | $ | — | $ | — | ||||||||
CDs held for investment | 28,665 | 28,665 | — | 28,665 | — | |||||||||||||
Securities available for sale | 23,224 | 23,224 | 84 | 22,730 | 410 | |||||||||||||
Securities held to maturity | 94,228 | 93,321 | — | 93,321 | — | |||||||||||||
Loans held for sale | 363 | 363 | — | — | 363 | |||||||||||||
Loans, net | 471,306 | 449,165 | — | — | 449,165 | |||||||||||||
FHLB stock | 5,778 | 5,778 | — | 5,778 | — | |||||||||||||
Accrued interest receivable | 1,509 | 1,509 | — | 1,509 | — | |||||||||||||
Financial liabilities: | ||||||||||||||||||
Deposits | $ | 649,232 | $ | 651,148 | $ | — | $ | 651,148 | $ | — | ||||||||
Subordinated debentures and subordinated promissory notes | 24,372 | 24,372 | — | — | 24,372 | |||||||||||||
Borrowings | 112,000 | 120,898 | — | 120,898 | — | |||||||||||||
Accrued interest payable | 1,680 | 1,680 | — | 1,680 | — | |||||||||||||
December 31, 2013 | ||||||||||||||||||
Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||
Value | Fair Value | |||||||||||||||||
Financial assets: | (amounts in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 128,629 | $ | 128,629 | $ | 128,629 | $ | — | $ | — | ||||||||
CDs held for investment | 31,850 | 31,850 | — | 31,850 | — | |||||||||||||
Securities available for sale | 32,566 | 32,566 | 50 | 31,491 | 1,025 | |||||||||||||
Securities held to maturity | 98,013 | 95,831 | — | 95,831 | — | |||||||||||||
Loans held for sale | — | — | — | — | — | |||||||||||||
Loans, net | 481,122 | 458,254 | — | — | 458,254 | |||||||||||||
FHLB stock | 6,076 | 6,076 | — | 6,076 | — | |||||||||||||
Premises and equipment, held for sale | — | — | — | — | — | |||||||||||||
Accrued interest receivable | 1,576 | 1,576 | — | 1,576 | — | |||||||||||||
Financial liabilities: | ||||||||||||||||||
Deposits | $ | 657,620 | $ | 659,733 | $ | — | $ | 659,733 | $ | — | ||||||||
Subordinated debentures and subordinated promissory notes | 24,372 | 24,369 | — | — | 24,369 | |||||||||||||
Borrowings | 112,000 | 121,519 | — | 121,519 | — | |||||||||||||
Accrued interest payable | 1,642 | 1,642 | — | 1,642 | — | |||||||||||||
REGULATORY_RESTRICTIONS_Tables
REGULATORY RESTRICTIONS (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | ||||||||||||||||||||
Schedule of Capital Amounts and Ratios | ' | ||||||||||||||||||||
The Bank’s actual capital amounts and ratios are also presented in the table below. At March 31, 2014 the Bank was classified as well capitalized for regulatory capital purposes. | |||||||||||||||||||||
Actual | Minimum For Capital | Minimum To be Well | |||||||||||||||||||
Adequacy Purposes | Capitalized under | ||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||
Action Provisions | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
As of March 31, 2014: | (amounts in thousands, except ratios) | ||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 52,062 | 11.5 | % | $ | 36,259 | 8 | % | $ | 45,324 | 10 | % | |||||||||
Tier I Capital (to Risk Weighted Assets) | 46,325 | 10.2 | % | 18,129 | 4 | % | 27,194 | 6 | % | ||||||||||||
Tier I Capital (to Average Assets) | 46,325 | 5.7 | % | 32,606 | 4 | % | 40,758 | 5 | % | ||||||||||||
As of December 31, 2013: | |||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | $ | 50,601 | 10.9 | % | $ | 37,057 | 8 | % | $ | 46,322 | 10 | % | |||||||||
Tier I Capital (to Risk Weighted Assets) | 44,739 | 9.7 | % | 18,529 | 4 | % | 27,793 | 6 | % | ||||||||||||
Tier I Capital (to Average Assets) | 44,739 | 5.5 | % | 32,529 | 4 | % | 40,661 | 5 | % | ||||||||||||
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Mar. 31, 2014 | Oct. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 08, 2014 |
lawsuit | lawsuit | Legally Binding Commitment [Member] | Commitments to Extend Credit [Member] | Undisbursed Lines of Credit [Member] | Financial Stand-by Letters of Credit [Member] | Performance Stand-by Letters of Credit [Member] | Unused Credit Card Lines [Member] | Consumer Fraud [Member] | |
Loan Commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan commitments | $88,280,000 | ' | $73,773,000 | $21,477,000 | $51,601,000 | $228,000 | $467,000 | $14,507,000 | ' |
Civil monetary penalty | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 |
Civil forfeiture | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 |
Number of pending lawsuits | 3 | 4 | ' | ' | ' | ' | ' | ' | ' |
NET_INCOME_PER_SHARE_Details
NET INCOME PER SHARE (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Weighted average number of common shares outstanding: | ' | ' |
Weighted average number of common shares used in computing basic net income per common share | 8,036,990 | 7,821,582 |
Effect of dilutive stock options (in shares) | 12,369 | 0 |
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per common share | 8,049,359 | 7,821,582 |
Stock Options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities (in shares) | 192,930 | 308,880 |
INVESTMENT_SECURITIES_Securiti
INVESTMENT SECURITIES (Securities Available for Sale) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | $23,191 | $33,222 | |
Gross unrealized gains | 199 | 33 | |
Gross unrealized losses | 166 | 689 | |
Available for sale securities, fair value | 23,224 | 32,566 | [1] |
Temporarily Impaired Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | 11,337 | 31,410 | |
Less than 12 Months, Unrealized losses | 76 | 539 | |
12 Months or More, Fair value | 410 | 410 | |
12 Months or More, Unrealized losses | 90 | 90 | |
Total, Fair value | 11,747 | 31,820 | |
Total, Unrealized losses | 166 | 629 | |
Other than Temporarily Impaired Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | ' | 0 | |
Less than 12 Months, Unrealized losses | ' | 0 | |
12 Months or More, Fair value | ' | 615 | |
12 Months or More, Unrealized losses | ' | 60 | |
Total, Fair value | ' | 615 | |
Total, Unrealized losses | ' | 60 | |
Taxable Municipal Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | 9,638 | 6,176 | |
Gross unrealized gains | 146 | 0 | |
Gross unrealized losses | 19 | 243 | |
Available for sale securities, fair value | 9,765 | 5,933 | |
Taxable Municipal Securities [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | 1,479 | 5,933 | |
Less than 12 Months, Unrealized losses | 19 | 243 | |
12 Months or More, Fair value | 0 | 0 | |
12 Months or More, Unrealized losses | 0 | 0 | |
Total, Fair value | 1,479 | 5,933 | |
Total, Unrealized losses | 19 | 243 | |
Mortgage-backed Securities GNMA [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | 13,000 | 25,773 | |
Gross unrealized gains | 11 | 0 | |
Gross unrealized losses | 57 | 296 | |
Available for sale securities, fair value | 12,954 | 25,477 | |
Mortgage-backed Securities GNMA [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | 9,858 | 25,477 | |
Less than 12 Months, Unrealized losses | 57 | 296 | |
12 Months or More, Fair value | 0 | 0 | |
12 Months or More, Unrealized losses | 0 | 0 | |
Total, Fair value | 9,858 | 25,477 | |
Total, Unrealized losses | 57 | 296 | |
Mortgage-backed securities FNMA [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | ' | 0 | |
Gross unrealized gains | ' | 0 | |
Gross unrealized losses | ' | 0 | |
Available for sale securities, fair value | ' | 0 | |
Mortgage-backed securities FNMA [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | ' | 0 | |
Less than 12 Months, Unrealized losses | ' | 0 | |
12 Months or More, Fair value | ' | 0 | |
12 Months or More, Unrealized losses | ' | 0 | |
Total, Fair value | ' | 0 | |
Total, Unrealized losses | ' | 0 | |
Equity Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | 53 | 98 | |
Gross unrealized gains | 42 | 33 | |
Gross unrealized losses | 0 | 0 | |
Available for sale securities, fair value | 95 | 131 | |
Trust Preferred Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Amortized cost | 500 | 1,175 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 90 | 150 | |
Available for sale securities, fair value | 410 | 1,025 | |
Trust Preferred Securities [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | 0 | ' | |
Less than 12 Months, Unrealized losses | 0 | 0 | |
12 Months or More, Fair value | 410 | 410 | |
12 Months or More, Unrealized losses | 90 | 90 | |
Total, Fair value | 410 | 410 | |
Total, Unrealized losses | 90 | 90 | |
Trust Preferred Securities [Member] | Equity Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | ' | 0 | |
Trust Preferred Securities [Member] | Other than Temporarily Impaired Securities [Member] | ' | ' | |
Securities available for sale in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | ' | 0 | |
Less than 12 Months, Unrealized losses | ' | 0 | |
12 Months or More, Fair value | ' | 615 | |
12 Months or More, Unrealized losses | ' | 60 | |
Total, Fair value | ' | 615 | |
Total, Unrealized losses | ' | $60 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Securiti1
INVESTMENT SECURITIES (Securities Held to Maturity) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | $94,228 | $98,013 | [1] |
Gross unrealized gains | 323 | 165 | |
Gross unrealized losses | 1,230 | 2,347 | |
Held to maturity securities, fair value | 93,321 | 95,831 | |
Temporarily Impaired Securities [Member] | ' | ' | |
Securities held to maturity in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | 61,070 | 82,073 | |
Less than 12 Months, Unrealized losses | 1,149 | 2,249 | |
12 Months or Morer, Fair value | 2,179 | 2,223 | |
12 Months or More, Unrealized losses | 81 | 98 | |
Total, Fair value | 63,249 | 84,296 | |
Total, Unrealized losses | 1,230 | 2,347 | |
Taxable Municipal Securities [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | 3,622 | 3,635 | |
Gross unrealized gains | 0 | 3 | |
Gross unrealized losses | 93 | 157 | |
Held to maturity securities, fair value | 3,529 | 3,481 | |
Taxable Municipal Securities [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities held to maturity in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | 3,529 | 2,776 | |
Less than 12 Months, Unrealized losses | 93 | 157 | |
12 Months or Morer, Fair value | 0 | 0 | |
12 Months or More, Unrealized losses | 0 | 0 | |
Total, Fair value | 3,529 | 2,776 | |
Total, Unrealized losses | 93 | 157 | |
Mortgage-backed Securities GNMA [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | 86,352 | 89,892 | |
Gross unrealized gains | 322 | 162 | |
Gross unrealized losses | 1,136 | 2,171 | |
Held to maturity securities, fair value | 85,538 | 87,883 | |
Mortgage-backed Securities GNMA [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities held to maturity in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | 54,630 | 74,830 | |
Less than 12 Months, Unrealized losses | 1,055 | 2,073 | |
12 Months or Morer, Fair value | 2,179 | 2,223 | |
12 Months or More, Unrealized losses | 81 | 98 | |
Total, Fair value | 56,809 | 77,053 | |
Total, Unrealized losses | 1,136 | 2,171 | |
Mortgage-backed securities FNMA [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Amortized cost | 4,254 | 4,486 | |
Gross unrealized gains | 1 | ' | |
Gross unrealized losses | 1 | 19 | |
Held to maturity securities, fair value | 4,254 | 4,467 | |
Mortgage-backed securities FNMA [Member] | Temporarily Impaired Securities [Member] | ' | ' | |
Securities held to maturity in continuous unrealized loss position: | ' | ' | |
Less than 12 Months, Fair value | 2,911 | 4,467 | |
Less than 12 Months, Unrealized losses | 1 | 19 | |
12 Months or Morer, Fair value | 0 | 0 | |
12 Months or More, Unrealized losses | 0 | 0 | |
Total, Fair value | 2,911 | 4,467 | |
Total, Unrealized losses | $1 | $19 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Securiti2
INVESTMENT SECURITIES (Securities Containing Unrealized Losses) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Gain (Loss) on Investments [Line Items] | ' |
Transfer of AFS securities to HTM securities | $76,487,000 |
Unrealized holding gains included in the transfer | 228,000 |
Credit loss on other than temporarily impaired security | $0 |
Mortgage-backed Securities GNMA [Member] | ' |
Gain (Loss) on Investments [Line Items] | ' |
Number of securities containing unrealized losses | 32 |
Number of securities held | 54 |
Mortgage-backed securities FNMA [Member] | ' |
Gain (Loss) on Investments [Line Items] | ' |
Number of securities containing unrealized losses | 2 |
Number of securities held | 3 |
Taxable Municipal Securities [Member] | ' |
Gain (Loss) on Investments [Line Items] | ' |
Number of securities containing unrealized losses | 12 |
Number of securities held | 20 |
Trust Preferred Securities [Member] | ' |
Gain (Loss) on Investments [Line Items] | ' |
Number of securities containing unrealized losses | 1 |
Number of securities held | 1 |
INVESTMENT_SECURITIES_Investme
INVESTMENT SECURITIES (Investment Securities by Contractual Maturities) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Available for sale securities, amortized cost | $23,191 | $33,222 | |
Available for sale securities, fair value | 23,224 | 32,566 | [1] |
Held-to-maturity Securities, Debt Maturities: | ' | ' | |
Held to maturity securities, amortized cost | 94,228 | ' | |
Held to maturity securities, fair value | 93,321 | 95,831 | |
Taxable Municipal Securities [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Due after one year through five years, Amortized Cost | 0 | ' | |
Due after five years through ten years, Amortized Cost | 0 | ' | |
Due after ten years, Amortized Cost | 9,638 | ' | |
Available for sale securities, amortized cost | 9,638 | 6,176 | |
Due after one year through five years, Fair Value | 0 | ' | |
Due after five years through ten years, Fair Value | 0 | ' | |
Due after ten years, Fair Value | 9,765 | ' | |
Available for sale securities, fair value | 9,765 | 5,933 | |
Held-to-maturity Securities, Debt Maturities: | ' | ' | |
Due within one year, Amortized Cost | 0 | ' | |
Due after one year through five years. Amortized Cost | 989 | ' | |
Due after five years through ten years, Amortized Cost | 2,633 | ' | |
Due after ten years, Amortized Cost | 0 | ' | |
Held to maturity securities, amortized cost | 3,622 | ' | |
Due within one year, Fair Value | 0 | ' | |
Due after one year through five years, Fair Value | 980 | ' | |
Due after five years through ten years, Fair Value | 2,549 | ' | |
Due after ten years, Fair Value | 0 | ' | |
Held to maturity securities, fair value | 3,529 | 3,481 | |
Mortgage-backed Securities GNMA and FNMA [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Due within one year, Amortized Cost | 0 | ' | |
Due after one year through five years, Amortized Cost | 0 | ' | |
Due after five years through ten years, Amortized Cost | 13,000 | ' | |
Due after ten years, Amortized Cost | 0 | ' | |
Available for sale securities, amortized cost | 13,000 | ' | |
Due within one year, Fair Value | 0 | ' | |
Due after one year through five years, Fair Value | 0 | ' | |
Due after five years through ten years, Fair Value | 12,954 | ' | |
Due after ten years, Fair Value | 0 | ' | |
Available for sale securities, fair value | 12,954 | ' | |
Held-to-maturity Securities, Debt Maturities: | ' | ' | |
Due within one year, Amortized Cost | 0 | ' | |
Due after one year through five years. Amortized Cost | 54,621 | ' | |
Due after five years through ten years, Amortized Cost | 29,033 | ' | |
Due after ten years, Amortized Cost | 6,952 | ' | |
Held to maturity securities, amortized cost | 90,606 | ' | |
Due within one year, Fair Value | 0 | ' | |
Due after one year through five years, Fair Value | 54,656 | ' | |
Due after five years through ten years, Fair Value | 28,473 | ' | |
Due after ten years, Fair Value | 6,663 | ' | |
Held to maturity securities, fair value | 89,792 | ' | |
Trusted Preferred Securities and Equity Securities [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Available for sale securities, amortized cost | 553 | ' | |
Available for sale securities, fair value | 505 | ' | |
Trust Preferred Securities [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Available for sale securities, amortized cost | 500 | 1,175 | |
Available for sale securities, fair value | 410 | 1,025 | |
Equity Securities [Member] | ' | ' | |
Available-for-sale Securities, Debt Maturities: | ' | ' | |
Available for sale securities, amortized cost | 53 | 98 | |
Available for sale securities, fair value | $95 | $131 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Securiti3
INVESTMENT SECURITIES (Securities Pledged and Sold) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' |
Securities pledged, carrying amount | $83,000,000 | ' | $92,800,000 |
Proceeds from sales and calls of investment securities available for sale | 13,406,000 | 2,197,000 | ' |
Gross realized gains | 124,000 | 49,000 | ' |
Gross realized losses | 0 | 0 | ' |
Recovery of impairment loss and gain on redemption of preferred shares | $89,000 | $0 | ' |
LOANS_Loans_Outstanding_Detail
LOANS (Loans Outstanding) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Loans and Leases Receivable Disclosure [Abstract] | ' | ' | |
Commercial and industrial loans | $25,626 | $25,858 | |
Commercial construction and land development | 62,599 | 66,253 | |
Commercial real estate | 208,783 | 214,159 | |
Residential construction | 28,626 | 28,697 | |
Residential mortgage | 146,841 | 147,300 | |
Consumer | 7,041 | 6,750 | |
Consumer credit cards | 2,189 | 2,339 | |
Business credit cards | 1,175 | 1,124 | |
Other | 446 | 738 | |
Total loans | 483,326 | 493,218 | |
Net deferred loan fees | -504 | -506 | |
Net loans before allowance | 482,822 | 492,712 | [1] |
Allowance for loan losses | -11,516 | -11,590 | [1] |
Net loans | $471,306 | $481,122 | [1] |
[1] | Derived from audited consolidated financial statements. |
LOANS_Nonperforming_Assets_Det
LOANS (Nonperforming Assets) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Loans and Leases Receivable Disclosure [Abstract] | ' | ' | |
Loans past due ninety days or more and still accruing | $9 | $23 | |
Nonaccrual loans | 28,250 | 27,227 | |
Foreclosed assets | 7,404 | 8,502 | [1] |
Total | $35,663 | $35,752 | |
[1] | Derived from audited consolidated financial statements. |
LOANS_Allowance_for_Loan_Losse
LOANS (Allowance for Loan Losses by Loan Class) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Allowance for loan losses: | ' | ' | ' | ||
Balance, beginning of period | $11,590 | [1] | ' | ' | |
Provision for loan losses | 0 | 35 | ' | ||
Balance, end of period | 11,516 | ' | ' | ||
Ending Balance, collectively evaluated for impairment | 226 | ' | 233 | ||
Financing Receivables: | ' | ' | ' | ||
Total loans | 483,326 | ' | 493,218 | ||
Ending Balance, collectively evaluated for impairment | 1,700 | [2] | ' | 1,800 | [2] |
Commercial and Industrial [Member] | ' | ' | ' | ||
Allowance for loan losses: | ' | ' | ' | ||
Balance, beginning of period | 1,290 | 1,185 | 1,185 | ||
Provision for loan losses | 0 | -12 | 2 | ||
Loans charged-off | -23 | -18 | -411 | ||
Recoveries | 39 | 23 | 514 | ||
Net (charge-offs) recoveries | 16 | 5 | 103 | ||
Balance, end of period | 1,306 | 1,178 | 1,290 | ||
Ending Balance, individually evaluated for impairment | 265 | 500 | 80 | ||
Ending Balance, collectively evaluated for impairment | 1,041 | 678 | 1,210 | ||
Financing Receivables: | ' | ' | ' | ||
Total loans | 26,801 | 29,202 | 26,982 | ||
Less: ending Balance: individually evaluated for impairment | 796 | 1,287 | 652 | ||
Ending Balance, collectively evaluated for impairment | 26,005 | [2] | 27,915 | 26,330 | |
Commercial Construction and Land Development [Member] | ' | ' | ' | ||
Allowance for loan losses: | ' | ' | ' | ||
Balance, beginning of period | 4,083 | 7,251 | 7,251 | ||
Provision for loan losses | 0 | 941 | 4 | ||
Loans charged-off | -153 | -660 | -3,759 | ||
Recoveries | 42 | 87 | 587 | ||
Net (charge-offs) recoveries | -111 | -573 | -3,172 | ||
Balance, end of period | 3,972 | 7,619 | 4,083 | ||
Ending Balance, individually evaluated for impairment | 509 | 1,496 | 264 | ||
Ending Balance, collectively evaluated for impairment | 3,463 | 6,123 | 3,819 | ||
Financing Receivables: | ' | ' | ' | ||
Total loans | 62,599 | 84,843 | 66,253 | ||
Less: ending Balance: individually evaluated for impairment | 11,180 | 19,339 | 12,234 | ||
Ending Balance, collectively evaluated for impairment | 51,419 | [2] | 65,504 | 54,019 | |
Commercial Real Estate [Member] | ' | ' | ' | ||
Allowance for loan losses: | ' | ' | ' | ||
Balance, beginning of period | 2,262 | 2,961 | 2,961 | ||
Provision for loan losses | 0 | -252 | 15 | ||
Loans charged-off | -207 | -238 | -2,220 | ||
Recoveries | 159 | 1 | 1,506 | ||
Net (charge-offs) recoveries | -48 | -237 | -714 | ||
Balance, end of period | 2,214 | 2,472 | 2,262 | ||
Ending Balance, individually evaluated for impairment | 874 | 270 | 887 | ||
Ending Balance, collectively evaluated for impairment | 1,340 | 2,202 | 1,375 | ||
Financing Receivables: | ' | ' | ' | ||
Total loans | 208,783 | 200,939 | 214,159 | ||
Less: ending Balance: individually evaluated for impairment | 12,429 | 17,268 | 12,345 | ||
Ending Balance, collectively evaluated for impairment | 196,354 | [2] | 183,671 | 201,814 | |
Residential Construction [Member] | ' | ' | ' | ||
Allowance for loan losses: | ' | ' | ' | ||
Balance, beginning of period | 287 | 423 | 423 | ||
Provision for loan losses | 0 | 39 | 2 | ||
Loans charged-off | 0 | 0 | -138 | ||
Recoveries | 0 | 0 | 0 | ||
Net (charge-offs) recoveries | 0 | 0 | -138 | ||
Balance, end of period | 287 | 462 | 287 | ||
Ending Balance, individually evaluated for impairment | 137 | 60 | 137 | ||
Ending Balance, collectively evaluated for impairment | 150 | 402 | 150 | ||
Financing Receivables: | ' | ' | ' | ||
Total loans | 28,626 | 20,895 | 28,697 | ||
Less: ending Balance: individually evaluated for impairment | 695 | 833 | 1,181 | ||
Ending Balance, collectively evaluated for impairment | 27,931 | [2] | 20,062 | 27,516 | |
Residential Mortgage [Member] | ' | ' | ' | ||
Allowance for loan losses: | ' | ' | ' | ||
Balance, beginning of period | 3,522 | 4,471 | 4,471 | ||
Provision for loan losses | 0 | -702 | 11 | ||
Loans charged-off | -67 | -610 | -1,559 | ||
Recoveries | 142 | 123 | 599 | ||
Net (charge-offs) recoveries | 75 | -487 | -960 | ||
Balance, end of period | 3,597 | 3,282 | 3,522 | ||
Ending Balance, individually evaluated for impairment | 470 | 721 | 457 | ||
Ending Balance, collectively evaluated for impairment | 3,127 | 2,561 | 3,065 | ||
Financing Receivables: | ' | ' | ' | ||
Total loans | 146,841 | 140,820 | 147,300 | ||
Less: ending Balance: individually evaluated for impairment | 9,714 | 15,237 | 11,043 | ||
Ending Balance, collectively evaluated for impairment | 137,127 | [2] | 125,583 | 136,257 | |
Consumer [Member] | ' | ' | ' | ||
Allowance for loan losses: | ' | ' | ' | ||
Balance, beginning of period | 72 | 188 | 188 | ||
Provision for loan losses | 0 | 30 | 1 | ||
Loans charged-off | -42 | -91 | -271 | ||
Recoveries | 15 | 46 | 154 | ||
Net (charge-offs) recoveries | -27 | -45 | -117 | ||
Balance, end of period | 45 | 173 | 72 | ||
Ending Balance, individually evaluated for impairment | 0 | 5 | 0 | ||
Ending Balance, collectively evaluated for impairment | 45 | 168 | 72 | ||
Financing Receivables: | ' | ' | ' | ||
Total loans | 9,230 | 9,281 | 9,089 | ||
Less: ending Balance: individually evaluated for impairment | 553 | 10 | 0 | ||
Ending Balance, collectively evaluated for impairment | 8,677 | [2] | 9,271 | 9,089 | |
Other [Member] | ' | ' | ' | ||
Allowance for loan losses: | ' | ' | ' | ||
Balance, beginning of period | 74 | 70 | 70 | ||
Provision for loan losses | 0 | -9 | 0 | ||
Loans charged-off | 0 | 0 | 0 | ||
Recoveries | 21 | 0 | 4 | ||
Net (charge-offs) recoveries | 21 | 0 | 4 | ||
Balance, end of period | 95 | 61 | 74 | ||
Ending Balance, individually evaluated for impairment | 0 | 0 | 0 | ||
Ending Balance, collectively evaluated for impairment | 95 | 61 | 74 | ||
Financing Receivables: | ' | ' | ' | ||
Total loans | 446 | 960 | 738 | ||
Less: ending Balance: individually evaluated for impairment | 0 | 0 | 0 | ||
Ending Balance, collectively evaluated for impairment | 446 | [2] | 960 | 738 | |
Totals [Member] | ' | ' | ' | ||
Allowance for loan losses: | ' | ' | ' | ||
Balance, beginning of period | 11,590 | 16,549 | 16,549 | ||
Provision for loan losses | 0 | 35 | 35 | ||
Loans charged-off | -492 | -1,617 | -8,358 | ||
Recoveries | 418 | 280 | 3,364 | ||
Net (charge-offs) recoveries | -74 | -1,337 | -4,994 | ||
Balance, end of period | 11,516 | 15,247 | 11,590 | ||
Ending Balance, individually evaluated for impairment | 2,255 | 3,052 | 1,825 | ||
Ending Balance, collectively evaluated for impairment | 9,261 | 12,195 | 9,765 | ||
Financing Receivables: | ' | ' | ' | ||
Total loans | 483,326 | 486,940 | 493,218 | ||
Less: ending Balance: individually evaluated for impairment | 35,367 | 53,974 | 37,455 | ||
Ending Balance, collectively evaluated for impairment | $447,959 | [2] | $432,966 | $455,763 | |
[1] | Derived from audited consolidated financial statements. | ||||
[2] | In 2013, the the Bank began evaluating small dollar homogeneous impaired loans collectively for impairment and these impaired loans are included in this total. At MarchB 31, 2014 there were $1.8 million in impaired loans collectively evaluated for impairment with $233,000 in reserves established. |
LOANS_Credit_Quality_Details
LOANS (Credit Quality) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | $25,626 | $25,858 |
Commercial construction and land development | 62,599 | 66,253 |
Commercial real estate | 208,783 | 214,159 |
Residential construction | 28,626 | 28,697 |
Residential mortgage | 146,841 | 147,300 |
Consumer | 7,041 | 6,750 |
Other | 446 | 738 |
Totals | 479,962 | 489,755 |
Consumer credit cards | 2,189 | 2,339 |
Business credit cards | 1,175 | 1,124 |
Total loans | 483,326 | 493,218 |
Credit Card Portfolio Exposure [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Consumer credit cards | 2,189 | 2,339 |
Business credit cards | 1,175 | 1,124 |
1 - Lowest Risk [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 2,061 | 2,014 |
Commercial construction and land development | 0 | 0 |
Commercial real estate | 0 | 0 |
Residential construction | 0 | 0 |
Residential mortgage | 0 | 0 |
Consumer | 1,591 | 1,365 |
Other | 8 | 8 |
Totals | 3,660 | 3,387 |
2 - Satisfactory Quality [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 759 | 646 |
Commercial construction and land development | 522 | 374 |
Commercial real estate | 2,408 | 2,696 |
Residential construction | 181 | 2 |
Residential mortgage | 13,649 | 12,811 |
Consumer | 367 | 412 |
Other | 14 | 15 |
Totals | 17,900 | 16,956 |
3 - Satisfactory - Merits Attention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 9,322 | 9,639 |
Commercial construction and land development | 12,244 | 14,296 |
Commercial real estate | 73,494 | 75,898 |
Residential construction | 2,470 | 3,473 |
Residential mortgage | 53,886 | 53,144 |
Consumer | 3,398 | 3,628 |
Other | 191 | 482 |
Totals | 155,005 | 160,560 |
4 - Low Satisfactory [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 12,363 | 12,616 |
Commercial construction and land development | 35,954 | 36,723 |
Commercial real estate | 118,786 | 121,522 |
Residential construction | 24,877 | 23,779 |
Residential mortgage | 56,758 | 57,460 |
Consumer | 1,023 | 1,235 |
Other | 109 | 107 |
Totals | 249,870 | 253,442 |
5 - Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 198 | 137 |
Commercial construction and land development | 1,849 | 1,922 |
Commercial real estate | 2,460 | 2,558 |
Residential construction | 288 | 262 |
Residential mortgage | 8,377 | 8,450 |
Consumer | 63 | 63 |
Other | 124 | 126 |
Totals | 13,359 | 13,518 |
6 - Substandard or Worse [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial and industrial loans | 923 | 806 |
Commercial construction and land development | 12,030 | 12,938 |
Commercial real estate | 11,635 | 11,485 |
Residential construction | 810 | 1,181 |
Residential mortgage | 14,171 | 15,435 |
Consumer | 599 | 47 |
Other | 0 | 0 |
Totals | 40,168 | 41,892 |
Performing [Member] | Credit Card Portfolio Exposure [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Consumer credit cards | 2,105 | 2,316 |
Business credit cards | 1,131 | 1,124 |
Non Performing [Member] | Credit Card Portfolio Exposure [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Consumer credit cards | 84 | 23 |
Business credit cards | $44 | $0 |
LOANS_Age_Analysis_of_Past_Due
LOANS (Age Analysis of Past Due Loans) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-89 Days past due | $1,204 | $1,595 | ||
Nonaccruals and greater than 90 days past due | 28,259 | [1] | 27,250 | [2] |
Total past due | 29,463 | 28,845 | ||
Current | 453,863 | 464,373 | ||
Total loans | 483,326 | 493,218 | ||
Recorded investment greater than 90 days and accruing | 9 | 23 | ||
Nonaccrual loans | 28,250 | 27,227 | ||
Commercial and Industrial [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-89 Days past due | 0 | 34 | ||
Nonaccruals and greater than 90 days past due | 811 | [1] | 651 | [2] |
Total past due | 811 | 685 | ||
Current | 24,815 | 25,173 | ||
Total loans | 25,626 | 25,858 | ||
Commercial Construction and Land Development [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-89 Days past due | 271 | 252 | ||
Nonaccruals and greater than 90 days past due | 11,178 | [1] | 9,536 | [2] |
Total past due | 11,449 | 9,788 | ||
Current | 51,150 | 56,465 | ||
Total loans | 62,599 | 66,253 | ||
Commercial Real Estate [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-89 Days past due | 5 | 749 | ||
Nonaccruals and greater than 90 days past due | 6,099 | [1] | 6,391 | [2] |
Total past due | 6,104 | 7,140 | ||
Current | 202,679 | 207,019 | ||
Total loans | 208,783 | 214,159 | ||
Residential Construction [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-89 Days past due | 0 | 0 | ||
Nonaccruals and greater than 90 days past due | 695 | [1] | 695 | [2] |
Total past due | 695 | 695 | ||
Current | 27,931 | 28,002 | ||
Total loans | 28,626 | 28,697 | ||
Residential Mortgage [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-89 Days past due | 753 | 421 | ||
Nonaccruals and greater than 90 days past due | 8,906 | [1] | 9,943 | [2] |
Total past due | 9,659 | 10,364 | ||
Current | 137,182 | 136,936 | ||
Total loans | 146,841 | 147,300 | ||
Consumer [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-89 Days past due | 56 | 11 | ||
Nonaccruals and greater than 90 days past due | 561 | [1] | 11 | [2] |
Total past due | 617 | 22 | ||
Current | 6,424 | 6,728 | ||
Total loans | 7,041 | 6,750 | ||
Consumer Credit Cards [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-89 Days past due | 78 | 76 | ||
Nonaccruals and greater than 90 days past due | 6 | [1] | 23 | [2] |
Total past due | 84 | 99 | ||
Current | 2,105 | 2,240 | ||
Total loans | 2,189 | 2,339 | ||
Business Credit Cards [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-89 Days past due | 41 | 52 | ||
Nonaccruals and greater than 90 days past due | 3 | [1] | 0 | [2] |
Total past due | 44 | 52 | ||
Current | 1,131 | 1,072 | ||
Total loans | 1,175 | 1,124 | ||
Other Loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30-89 Days past due | 0 | 0 | ||
Nonaccruals and greater than 90 days past due | 0 | [1] | 0 | [2] |
Total past due | 0 | 0 | ||
Current | 446 | 738 | ||
Total loans | $446 | $738 | ||
[1] | Nonaccruals and Greater than 90 Days Past Due is comprised of $9,000 in credit card loans that were past due more than 90 days and still accruing interest, as well as $28.3 million of loans in nonaccrual status. | |||
[2] | Nonaccruals and Greater than 90 Days Past Due is comprised of $23,000 in credit card loans that were past due more than 90 days and still accruing interest, as well as $27.2 million of loans in nonaccrual status. |
LOANS_Impaired_Loans_Details
LOANS (Impaired Loans) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Impaired Loans, Recorded Investment | ' | ' | ' |
With no related allowance recorded | $27,646 | ' | $31,404 |
With an allowance recorded | 9,491 | ' | 7,772 |
Total | 37,137 | ' | 39,176 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 35,531 | ' | 39,696 |
With an allowance recorded | 11,752 | ' | 9,178 |
Total | 47,283 | ' | 48,874 |
Impaired loans, allowance | 2,255 | ' | 1,825 |
Impaired Loans, Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 28,319 | ' | 35,055 |
With an allowance recorded | 9,542 | ' | 8,021 |
Total | 37,861 | ' | 43,076 |
Impaired Loans, Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 74 | ' | 449 |
With an allowance recorded | 48 | ' | 144 |
Total | 122 | ' | 593 |
Commercial [Member] | ' | ' | ' |
Impaired Loans, Recorded Investment | ' | ' | ' |
Total | 24,885 | ' | 25,609 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' |
Total | 32,536 | ' | 32,908 |
Impaired loans, allowance | 1,648 | ' | 1,232 |
Impaired Loans, Average Recorded Investment | ' | ' | ' |
Total | 25,469 | ' | 28,713 |
Impaired Loans, Interest Income Recognized | ' | ' | ' |
Total | 92 | ' | 438 |
Commercial and Industrial [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Loans charged-off | -23 | -18 | -411 |
Impaired Loans, Recorded Investment | ' | ' | ' |
With no related allowance recorded | 388 | ' | 380 |
With an allowance recorded | 460 | ' | 309 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 425 | ' | 517 |
With an allowance recorded | 539 | ' | 322 |
Impaired loans, allowance | 265 | ' | 80 |
Impaired Loans, Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 390 | ' | 491 |
With an allowance recorded | 463 | ' | 321 |
Impaired Loans, Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 0 | ' | 2 |
With an allowance recorded | 0 | ' | 0 |
Commercial Construction and Land Development [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Loans charged-off | -153 | -660 | -3,759 |
Impaired Loans, Recorded Investment | ' | ' | ' |
With no related allowance recorded | 9,347 | ' | 11,142 |
With an allowance recorded | 2,057 | ' | 1,315 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 13,478 | ' | 15,809 |
With an allowance recorded | 3,313 | ' | 2,033 |
Impaired loans, allowance | 509 | ' | 264 |
Impaired Loans, Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 9,604 | ' | 13,259 |
With an allowance recorded | 2,086 | ' | 1,348 |
Impaired Loans, Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 5 | ' | 168 |
With an allowance recorded | 3 | ' | 0 |
Commercial Real Estate [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Loans charged-off | -207 | -238 | -2,220 |
Impaired Loans, Recorded Investment | ' | ' | ' |
With no related allowance recorded | 8,467 | ' | 8,437 |
With an allowance recorded | 4,166 | ' | 4,026 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 10,323 | ' | 10,131 |
With an allowance recorded | 4,458 | ' | 4,096 |
Impaired loans, allowance | 874 | ' | 888 |
Impaired Loans, Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 8,747 | ' | 9,190 |
With an allowance recorded | 4,179 | ' | 4,104 |
Impaired Loans, Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 44 | ' | 132 |
With an allowance recorded | 40 | ' | 136 |
Residential [Member] | ' | ' | ' |
Impaired Loans, Recorded Investment | ' | ' | ' |
Total | 11,691 | ' | 13,556 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' |
Total | 13,972 | ' | 15,944 |
Impaired loans, allowance | 607 | ' | 593 |
Impaired Loans, Average Recorded Investment | ' | ' | ' |
Total | 11,814 | ' | 14,346 |
Impaired Loans, Interest Income Recognized | ' | ' | ' |
Total | 30 | ' | 155 |
Residential Construction [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Loans charged-off | 0 | 0 | -138 |
Impaired Loans, Recorded Investment | ' | ' | ' |
With no related allowance recorded | 0 | ' | 486 |
With an allowance recorded | 695 | ' | 695 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 0 | ' | 486 |
With an allowance recorded | 1,134 | ' | 1,134 |
Impaired loans, allowance | 137 | ' | 137 |
Impaired Loans, Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 0 | ' | 474 |
With an allowance recorded | 695 | ' | 749 |
Impaired Loans, Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 0 | ' | 26 |
With an allowance recorded | 0 | ' | 0 |
Residential Mortgage [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Loans charged-off | -67 | -610 | -1,559 |
Impaired Loans, Recorded Investment | ' | ' | ' |
With no related allowance recorded | 8,883 | ' | 10,948 |
With an allowance recorded | 2,113 | ' | 1,427 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 10,530 | ' | 12,731 |
With an allowance recorded | 2,308 | ' | 1,593 |
Impaired loans, allowance | 470 | ' | 456 |
Impaired Loans, Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 9,000 | ' | 11,624 |
With an allowance recorded | 2,119 | ' | 1,499 |
Impaired Loans, Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 25 | ' | 121 |
With an allowance recorded | 5 | ' | 8 |
Consumer [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Loans charged-off | -42 | -91 | -271 |
Impaired Loans, Recorded Investment | ' | ' | ' |
With no related allowance recorded | 561 | ' | 11 |
With an allowance recorded | 0 | ' | 0 |
Total | 561 | ' | 11 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 775 | ' | 22 |
With an allowance recorded | 0 | ' | 0 |
Total | 775 | ' | 22 |
Impaired loans, allowance | 0 | ' | 0 |
Impaired Loans, Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 578 | ' | 17 |
With an allowance recorded | 0 | ' | 0 |
Total | 578 | ' | 17 |
Impaired Loans, Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 0 | ' | 0 |
With an allowance recorded | 0 | ' | 0 |
Total | 0 | ' | 0 |
Other [Member] | ' | ' | ' |
Impaired Loans, Recorded Investment | ' | ' | ' |
With no related allowance recorded | ' | ' | 0 |
With an allowance recorded | ' | ' | 0 |
Impaired Loans, Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | ' | ' | 0 |
With an allowance recorded | ' | ' | 0 |
Impaired loans, allowance | ' | ' | 0 |
Impaired Loans, Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | ' | ' | 0 |
With an allowance recorded | ' | ' | 0 |
Impaired Loans, Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | ' | ' | 0 |
With an allowance recorded | ' | ' | $0 |
LOANS_Loans_on_Nonaccrual_Stat
LOANS (Loans on Nonaccrual Status) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | $28,250 | $27,227 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 811 | 651 |
Commercial Construction and Land Development [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 11,178 | 9,536 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 6,099 | 6,391 |
Residential Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 695 | 695 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 8,906 | 9,943 |
Consumer [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | $561 | $11 |
LOANS_Summary_of_Loans_Modifie
LOANS (Summary of Loans Modified as TDRs) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | $6,658 | $7,030 |
Nonaccrual | 12,675 | 14,260 |
Total TDRs | 19,333 | 21,290 |
Allowance for Loan Losses Allocated | 653 | 486 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 37 | 37 |
Nonaccrual | 458 | 301 |
Total TDRs | 495 | 338 |
Allowance for Loan Losses Allocated | 158 | 0 |
Commercial Construction and Land Development [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 225 | 227 |
Nonaccrual | 5,312 | 6,699 |
Total TDRs | 5,537 | 6,926 |
Allowance for Loan Losses Allocated | 76 | 34 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 4,417 | 4,447 |
Nonaccrual | 4,002 | 4,204 |
Total TDRs | 8,419 | 8,651 |
Allowance for Loan Losses Allocated | 185 | 223 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 1,979 | 2,319 |
Nonaccrual | 553 | 3,055 |
Total TDRs | 2,532 | 5,374 |
Allowance for Loan Losses Allocated | 234 | 229 |
Consumer [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | 0 | ' |
Nonaccrual | 2,350 | ' |
Total TDRs | 2,350 | ' |
Allowance for Loan Losses Allocated | 0 | ' |
Other [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Accrual | ' | 0 |
Nonaccrual | ' | 1 |
Total TDRs | ' | 1 |
Allowance for Loan Losses Allocated | ' | $0 |
LOANS_Status_of_Troubled_Debt_
LOANS (Status of Troubled Debt Restructurings) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
loans | ||
Financing Receivable, Modifications [Line Items] | ' | ' |
Total TDRs | $19,333 | $21,290 |
Number of loans foreclosed | 1 | ' |
Paid in Full [member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Paying as Restructured [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Converted to Non-accrual [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 1 | ' |
Total TDRs | 55 | ' |
Foreclosure/Default [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans foreclosed | 0 | ' |
Recorded investment foreclosed | 0 | ' |
Below Market Interest Rate [Member] | Paid in Full [member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Below Market Interest Rate [Member] | Paying as Restructured [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Below Market Interest Rate [Member] | Converted to Non-accrual [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Below Market Interest Rate [Member] | Foreclosure/Default [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans foreclosed | 0 | ' |
Recorded investment foreclosed | 0 | ' |
Extended Payment Terms [Member] | Paid in Full [member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Extended Payment Terms [Member] | Paying as Restructured [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Extended Payment Terms [Member] | Converted to Non-accrual [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 1 | ' |
Total TDRs | 55 | ' |
Extended Payment Terms [Member] | Foreclosure/Default [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans foreclosed | 0 | ' |
Recorded investment foreclosed | 0 | ' |
Forgiveness of Principal [Member] | Paid in Full [member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Forgiveness of Principal [Member] | Paying as Restructured [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Forgiveness of Principal [Member] | Converted to Non-accrual [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Forgiveness of Principal [Member] | Foreclosure/Default [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans foreclosed | 0 | ' |
Recorded investment foreclosed | 0 | ' |
Other [Member] | Paid in Full [member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Other [Member] | Paying as Restructured [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Other [Member] | Converted to Non-accrual [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 0 | ' |
Total TDRs | 0 | ' |
Other [Member] | Foreclosure/Default [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans foreclosed | 0 | ' |
Recorded investment foreclosed | $0 | ' |
FAIR_VALUE_MEASUREMENT_Assets_
FAIR VALUE MEASUREMENT (Assets Measured at Fair Value on Recurring Basis) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | $23,224 | $32,566 | [1] |
Taxable Municipal Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 9,765 | 5,933 | |
Mortgage-backed Securities GNMA [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 12,954 | 25,477 | |
Mortgage-backed securities FNMA [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | ' | 0 | |
Equity Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 95 | 131 | |
Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 84 | 50 | |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 22,730 | 31,491 | |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 410 | 1,025 | |
Total Carrying Amount in the Consolidated Balance Sheet [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 23,224 | 32,566 | |
Assets Measured at Fair Value [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 23,224 | 32,566 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 84 | 70 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Taxable Municipal Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 0 | 0 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Mortgage-backed Securities GNMA [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 0 | 0 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Mortgage-backed securities FNMA [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 0 | 0 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Trust Preferred Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 0 | 0 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Equity Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 84 | 70 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 22,730 | 31,471 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Taxable Municipal Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 9,765 | 5,933 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed Securities GNMA [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 12,954 | 25,477 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed securities FNMA [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 0 | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Trust Preferred Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 0 | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 11 | 61 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 410 | 1,025 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Taxable Municipal Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage-backed Securities GNMA [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage-backed securities FNMA [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Trust Preferred Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 410 | 1,025 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 0 | 0 | |
Recurring Basis [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 23,224 | 32,566 | |
Recurring Basis [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Taxable Municipal Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 9,765 | 5,933 | |
Recurring Basis [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Mortgage-backed Securities GNMA [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 12,954 | 25,477 | |
Recurring Basis [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Mortgage-backed securities FNMA [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 0 | 0 | |
Recurring Basis [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Trust Preferred Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 410 | 1,025 | |
Recurring Basis [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Equity Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 95 | 131 | |
Recurring Basis [Member] | Assets Measured at Fair Value [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 23,224 | 32,566 | |
Recurring Basis [Member] | Assets Measured at Fair Value [Member] | Taxable Municipal Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 9,765 | 5,933 | |
Recurring Basis [Member] | Assets Measured at Fair Value [Member] | Mortgage-backed Securities GNMA [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 12,954 | 25,477 | |
Recurring Basis [Member] | Assets Measured at Fair Value [Member] | Mortgage-backed securities FNMA [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 0 | 0 | |
Recurring Basis [Member] | Assets Measured at Fair Value [Member] | Trust Preferred Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | 410 | 1,025 | |
Recurring Basis [Member] | Assets Measured at Fair Value [Member] | Equity Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Investment securities available for sale, at fair value | $95 | $131 | |
[1] | Derived from audited consolidated financial statements. |
FAIR_VALUE_MEASUREMENT_Level_3
FAIR VALUE MEASUREMENT (Level 3 Assets Measured at Fair Value on Recurring Basis) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Level 3 assets measured at fair value on a recurring basis [Roll Forward] | ' | ' |
Beginning Balance | $1,025 | $1,006 |
Total realized and unrealized gains or (losses) included in earnings | 0 | 0 |
Total realized and unrealized gains or (losses) included in other comprehensive income (loss) | 0 | 19 |
Purchases, issuances and settlements | -615 | 0 |
Transfers in (out) of Level 3 | 0 | 0 |
Ending Balance | $410 | $1,025 |
FAIR_VALUE_MEASUREMENT_Assets_1
FAIR VALUE MEASUREMENT (Assets Measured at Fair Value on Nonrecurring Basis) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | |
Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Assets Measured at Fair Value [Member] | Assets Measured at Fair Value [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Recurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | Nonrecurring Basis [Member] | |||||
Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Assets Measured at Fair Value [Member] | Assets Measured at Fair Value [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Assets Measured at Fair Value [Member] | Assets Measured at Fair Value [Member] | |||||||||||||||
Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Total Carrying Amount in the Consolidated Balance Sheet [Member] | Assets Measured at Fair Value [Member] | Assets Measured at Fair Value [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||
Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Impaired loans, amount | $37,137 | ' | $39,176 | ' | ' | ' | ' | ' | ' | ' | ' | $22,700 | $20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,419 | ' | ' | ' | ' | ' | ' | ' | ' | |
Impaired loans, amount with allowance | 9,491 | ' | 7,772 | ' | ' | ' | ' | ' | ' | ' | ' | 9,500 | 7,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Impaired loans, allowance | 2,255 | ' | 1,825 | ' | ' | ' | ' | ' | ' | ' | ' | 2,300 | 1,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Impaired loans, with no related allowance recorded | 27,646 | ' | 31,404 | ' | ' | ' | ' | ' | ' | ' | ' | 13,200 | 12,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Foreclosed assets | 7,404 | ' | 8,502 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,404 | ' | ' | ' | ' | ' | ' | ' | ' |
Investment securities available for sale, at fair value | 23,224 | ' | 32,566 | [1] | 84 | 50 | 22,730 | 31,491 | 410 | 1,025 | 23,224 | 32,566 | 23,224 | 32,566 | 84 | 70 | 22,730 | 31,471 | 410 | 1,025 | 23,224 | 32,566 | 23,224 | 32,566 | 0 | 0 | 0 | 0 | 410 | 1,025 | ' | ' | 410 | 1,025 | 410 | 1,025 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral discounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | 50.00% | ' | ' | ' | ' | ' | |
Discounted appraisals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 30.00% | ' | ' | ' | ' | ' | |
Probability of default | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Loss given default | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Valuation adjustment on foreclosed assets | 212 | 415 | 1,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Assets measured at fair value: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Impaired loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 20,419 | 18,215 | ' | ' | 20,419 | ' | 18,215 | 20,419 | 18,215 | |
Foreclosed assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0 | $7,404 | $8,502 | ' | ' | $7,404 | $8,502 | ' | $7,404 | $8,502 | |
[1] | Derived from audited consolidated financial statements. |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Financial assets: | ' | ' | |
CDs held for investment | $28,665 | $31,850 | [1] |
Securities available for sale | 23,224 | 32,566 | [1] |
Securities held to maturity | 93,321 | 95,831 | |
Level 1 [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 150,960 | 128,629 | |
CDs held for investment | 0 | 0 | |
Securities available for sale | 84 | 50 | |
Securities held to maturity | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
FHLB stock | 0 | 0 | |
Premises and equipment, held for sale | ' | 0 | |
Accrued interest receivable | 0 | 0 | |
Financial liabilities: | ' | ' | |
Deposits | 0 | 0 | |
Subordinated debentures and promissory notes | 0 | 0 | |
Borrowings | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Level 2 [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 0 | 0 | |
CDs held for investment | 28,665 | 31,850 | |
Securities available for sale | 22,730 | 31,491 | |
Securities held to maturity | 93,321 | 95,831 | |
Loans held for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
FHLB stock | 5,778 | 6,076 | |
Premises and equipment, held for sale | ' | 0 | |
Accrued interest receivable | 1,509 | 1,576 | |
Financial liabilities: | ' | ' | |
Deposits | 651,148 | 659,733 | |
Subordinated debentures and promissory notes | 0 | 0 | |
Borrowings | 120,898 | 121,519 | |
Accrued interest payable | 1,680 | 1,642 | |
Level 3 [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 0 | 0 | |
CDs held for investment | 0 | 0 | |
Securities available for sale | 410 | 1,025 | |
Securities held to maturity | 0 | 0 | |
Loans held for sale | 363 | 0 | |
Loans, net | 449,165 | 458,254 | |
FHLB stock | 0 | 0 | |
Premises and equipment, held for sale | ' | 0 | |
Accrued interest receivable | 0 | 0 | |
Financial liabilities: | ' | ' | |
Deposits | 0 | 0 | |
Subordinated debentures and promissory notes | 24,372 | 24,369 | |
Borrowings | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Carrying Value [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 150,960 | 128,629 | |
CDs held for investment | 28,665 | 31,850 | |
Securities available for sale | 23,224 | 32,566 | |
Securities held to maturity | 94,228 | 98,013 | |
Loans held for sale | 363 | 0 | |
Loans, net | 471,306 | 481,122 | |
FHLB stock | 5,778 | 6,076 | |
Premises and equipment, held for sale | ' | 0 | |
Accrued interest receivable | 1,509 | 1,576 | |
Financial liabilities: | ' | ' | |
Deposits | 649,232 | 657,620 | |
Subordinated debentures and promissory notes | 24,372 | 24,372 | |
Borrowings | 112,000 | 112,000 | |
Accrued interest payable | 1,680 | 1,642 | |
Estimated Fair Value [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and cash equivalents | 150,960 | 128,629 | |
CDs held for investment | 28,665 | 31,850 | |
Securities available for sale | 23,224 | 32,566 | |
Securities held to maturity | 93,321 | 95,831 | |
Loans held for sale | 363 | 0 | |
Loans, net | 449,165 | 458,254 | |
FHLB stock | 5,778 | 6,076 | |
Premises and equipment, held for sale | ' | 0 | |
Accrued interest receivable | 1,509 | 1,576 | |
Financial liabilities: | ' | ' | |
Deposits | 651,148 | 659,733 | |
Subordinated debentures and promissory notes | 24,372 | 24,369 | |
Borrowings | 120,898 | 121,519 | |
Accrued interest payable | $1,680 | $1,642 | |
[1] | Derived from audited consolidated financial statements. |
SUBORDINATED_DEBT_Details
SUBORDINATED DEBT (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, except Per Share data, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | |
Interest payable accrued and deferred | $1,680 | $1,642 | [1] |
Common stock, par value (in dollars per share) | $1 | $1 | |
Subordinated Notes [Member] | Trust Preferred Securities [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Interest payable accrued and deferred | $750 | ' | |
[1] | Derived from audited consolidated financial statements. |
REGULATORY_RESTRICTIONS_Detail
REGULATORY RESTRICTIONS (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | 31-May-11 | |
Four Oaks Bank & Trust Company (the bBankb) [Member] | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Dividends paid to the Company by the Bank | $0 | ' | ' |
Total Capital (to Risk Weighted Assets), Amount | ' | ' | ' |
Total Capital (to Risk Weighted Assets), Amount, Actual | 52,062,000 | 50,601,000 | ' |
Total Capital (to Risk Weighted Assets), Amount, Minimum for Capital Adequacy Purposes | 36,259,000 | 37,057,000 | ' |
Total Capital (to Risk Weighted Assets), Amount, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 45,324,000 | 46,322,000 | ' |
Tier I Capital (to Risk Weighted Assets), Amount | ' | ' | ' |
Tier I Capital (to Risk Weighted Assets), Amount, Actual | 46,325,000 | 44,739,000 | ' |
Tier I Capital (to Risk Weighted Assets), Amount, Minimum for Capital Adequacy Purposes | 18,129,000 | 18,529,000 | ' |
Tier I Capital (to Risk Weighted Assets), Amount, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 27,194,000 | 27,793,000 | ' |
Tier I Capital (to Average Assets), Amount | ' | ' | ' |
Tier I Capital (to Average Assets), Amount, Actual | 46,325,000 | 44,739,000 | ' |
Tier I Capital (to Average Assets), Amount, Minimum for Capital Adequacy Purposes | 32,606,000 | 32,529,000 | ' |
Tier I Capital (to Average Assets), Amount, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 40,758,000 | 40,661,000 | ' |
Total Capital and Tier I Capital (to Risk Weighted Assets), Ratio | ' | ' | ' |
Total Capital (to Risk Weighted Assets), Ratio, Actual | 11.50% | 10.90% | ' |
Total Capital (to Risk Weighted Assets), Ratio, Minimum for Capital Adequacy Purposes | 8.00% | 8.00% | ' |
Total Capital (to Risk Weighted Assets), Ratio, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 10.00% | 10.00% | ' |
Tier I Capital (to Risk Weighted Assets), Ratio, Actual | 10.20% | 9.70% | ' |
Tier I Capital (to Risk Weighted Assets), Ratio, Minimum for Capital Adequacy Purposes | 4.00% | 4.00% | ' |
Tier I Capital (to Risk Weighted Assets), Ratio, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 6.00% | 6.00% | ' |
Tier I Capital (to Average Assets), Ratio | ' | ' | ' |
Tier I Capital (to Average Assets), Ratio, Actual | 5.70% | 5.50% | ' |
Tier I Capital (to Average Assets), Ratio, Minimum for Capital Adequacy Purposes | 4.00% | 4.00% | ' |
Tier I Capital (to Average Assets), Ratio, Minimum to be Well Capitalized under Prompt Corrective Action Provisions | 5.00% | 5.00% | ' |
Minimum individual amount of over 90 days past due loans, relationships, or other assets position to be improved | ' | ' | $750,000 |
Parent Company [Member] | ' | ' | ' |
Total Capital and Tier I Capital (to Risk Weighted Assets), Ratio | ' | ' | ' |
Total Capital (to Risk Weighted Assets), Ratio, Actual | 11.00% | 10.70% | ' |
Tier I Capital (to Risk Weighted Assets), Ratio, Actual | 7.10% | 6.30% | ' |
Tier I Capital (to Average Assets), Ratio | ' | ' | ' |
Tier I Capital (to Average Assets), Ratio, Actual | 3.90% | 3.60% | ' |
SECURITIES_PURCHASE_AGREEMENT_
SECURITIES PURCHASE AGREEMENT (Details) (USD $) | Mar. 26, 2014 | Mar. 27, 2014 | Mar. 24, 2014 |
In Millions, except Share data, unless otherwise specified | Standby Investor [Member] | Standby Investor [Member] | |
Standby Offering [Member] | |||
Class of Stock [Line Items] | ' | ' | ' |
Sales price (in dollars per share) | ' | ' | $1 |
Number of common stock shares | ' | ' | 10,000,000 |
Number of additional common stock shares for purchase | ' | ' | 6,000,000 |
Number of shares sold at the initial sale | ' | 875,000 | ' |
Percentage of ownership owned by investor | ' | 25.00% | ' |
Rights of offering, maximum amount | $26.60 | ' | ' |
Rights of offering, number of shares called by each non-transferable right | 3 | ' | ' |
Rights of offering, subscription price per share (in dollars per share) | $1 | ' | ' |